<PAGE>
PB SERIES TRUST
SEMI-ANNUAL
REPORT
JUNE 30, 1998
<PAGE>
PB Series Trust
Semi-Annual Report
For the Period Ending June 30, 1998
Table of Contents
<TABLE>
<S> <C>
Contract Owners Letter.................................. 1
PB Series Trust Financial Statements
Schedule of Investments........................... 2
Statements of Assets and Liabilities.............. 12
Statements of Operations.......................... 14
Statements of Changes in Net Assets............... 16
Financial Highlights.............................. 20
Notes to Financial Statements..................... 25
Trustees and Executive Officers................... Inside
Back
Cover
</TABLE>
<PAGE>
CONTRACT OWNERS LETTER
Dear Contract Owners:
As President of the PB Series Trust, I am pleased to bring you performance,
market and portfolio activity information on the portfolios of the PB Series
Trust ("Portfolios") for the six months ended June 30, 1998.
The PGA Retirement Annuity represents a variety of Investment Managers and a
diverse choice of investment disciplines with distinctly different management
styles. Under the direction of the PB Series Trust Board of Trustees and the
Investment Managers, the Portfolios continue to deliver competitive returns
while providing its shareholders with a quality portfolio of investments.
On the following pages are the schedule of investments, financial statements and
footnotes for the PB Series Trust as of June 30, 1998.
My sincere thanks for your continued support of the PGA Retirement Annuity and
the PB Series Trust. If you should have any comments, please do not hesitate to
contact us.
Sincerely,
[LOGO]
Thomas J. Hartlage
President
July 31, 1998
1
<PAGE>
PB SERIES TRUST
CAPITAL PRESERVATION PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ---------------------------------------------- --------- ----------
<S> <C> <C>
INVESTMENT COMPANIES - 100.0%
PB Series Trust
Money Market Fund......................... 261,749 $ 261,749
PB Series Trust
Fixed Income Fund......................... 24,747 261,823
----------
TOTAL INVESTMENT COMPANIES
- (Cost $517,796) 523,572
----------
TOTAL INVESTMENTS - (Cost $517,796) - 100.0% 523,572
OTHER ASSETS LESS LIABILITIES - 0.0% 3
----------
NET ASSETS - 100.0% $ 523,575
----------
----------
</TABLE>
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Portfolio.
PB SERIES TRUST
INCOME ORIENTED PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ----------- ----------
<S> <C> <C>
INVESTMENT COMPANIES - 100.0%
PB Series Trust
Money Market Fund.......................... 2,058 $ 2,058
PB Series Trust
High Quality Stock Fund.................... 319 4,102
PB Series Trust
Fixed Income Fund.......................... 652 6,898
PB Series Trust
International Active Fund.................. 94 1,110
----------
TOTAL INVESTMENT COMPANIES
- (Cost $13,706) 14,168
----------
TOTAL INVESTMENTS - (Cost $13,706) - 100.0% 14,168
OTHER ASSETS LESS LIABILITIES - 0.0% 0
----------
NET ASSETS - 100.0% $ 14,168
----------
----------
</TABLE>
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Portfolio.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
2
<PAGE>
PB SERIES TRUST
GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ----------- ----------
<S> <C> <C>
INVESTMENT COMPANIES - 100.0%
PB Series Trust
Money Market Fund.......................... 31,253 $ 31,253
PB Series Trust
High Quality Stock Fund.................... 10,531 135,429
PB Series Trust
Fixed Income Fund.......................... 11,919 126,103
PB Series Trust
International Active Fund.................. 3,000 35,430
----------
TOTAL INVESTMENT COMPANIES
- (Cost $310,481) 328,215
----------
TOTAL INVESTMENTS - (Cost $310,481) - 100.0% 328,215
OTHER ASSETS LESS LIABILITIES - 0.0% 1
----------
NET ASSETS - 100.0% $ 328,216
----------
----------
</TABLE>
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Portfolio.
PB SERIES TRUST
CAPITAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ----------- ----------
<S> <C> <C>
INVESTMENT COMPANIES - 100.0%
PB Series Trust
High Quality Stock Fund.................... 32,540 $ 418,464
PB Series Trust
Fixed Income Fund.......................... 15,691 166,011
PB Series Trust
International Active Fund.................. 9,279 109,585
----------
TOTAL INVESTMENT COMPANIES
- (Cost $654,249) 694,060
----------
TOTAL INVESTMENTS - (Cost $654,249) - 100.0% 694,060
OTHER ASSETS LESS LIABILITIES - 0.0% 5
----------
NET ASSETS - 100.0% $ 694,065
----------
----------
</TABLE>
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Portfolio.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
3
<PAGE>
PB SERIES TRUST
MAXIMUM APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ----------- ----------
<S> <C> <C>
INVESTMENT COMPANIES - 100.0%
PB Series Trust
High Quality Stock Fund.................... 30,360 $ 390,430
PB Series Trust
International Active Fund.................. 8,650 102,157
----------
TOTAL INVESTMENT COMPANIES
- (Cost $454,986) 492,587
----------
TOTAL INVESTMENTS - (Cost $454,986) - 100.0% 492,587
OTHER ASSETS LESS LIABILITIES - 0.0% (1)
----------
NET ASSETS - 100.0% $ 492,586
----------
----------
</TABLE>
The percentage shown for each investment category is the total value of that
category as a percentage of the net assets of the Portfolio.
PB SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ---------------------------------------------- --------- ----------
<S> <C> <C>
COMMON STOCK - 99.1%
AEROSPACE - 1.1%
Allied Signal Incorporated................ 3,300 $ 146,437
----------
APPAREL & TEXTILES - 0.9%
Guilford Mills Incorporated............... 1,600 32,000
Nautica Enterprises Incorporated (a)...... 1,600 42,900
Unifi Incorporated........................ 1,100 37,675
----------
112,575
----------
AUTO PARTS - 1.3%
Eaton Corporation......................... 1,300 101,075
Modine Manufacturing Company.............. 1,100 38,087
Superior Industries International
Incorporated............................ 1,300 36,644
----------
175,806
----------
BANKS - 7.7%
Amcore Financial Incorporated............. 1,700 40,800
Banc One Corporation...................... 2,420 135,066
BancorpSouth Incorporated................. 2,200 46,200
Carolina First Corporation................ 1,800 45,675
Citizens Banking Corporation.............. 1,350 45,394
Colonial Bancgroup Incorporated........... 1,100 35,475
First Source Corporation.................. 1,400 50,050
First Union Corporation................... 2,916 169,856
First Virginia Banks Incorporated......... 700 35,787
F & M National Corporation................ 1,300 37,700
Union Planters Corporation................ 2,300 135,269
U.S. Trust Corporation.................... 700 53,375
Wachovia Corporation...................... 1,800 152,100
Wilmington Trust Corporation.............. 600 36,525
----------
1,019,272
----------
BROADCASTING - 0.4%
TCA Cable TV Incorporated................. 900 54,000
----------
BUILDING CONSTRUCTION - 0.6%
Harsco Corporation........................ 900 41,231
Lawson Products Incorporated.............. 1,700 43,775
----------
85,006
----------
BUSINESS SERVICES - 2.3%
ABM Industries Incorporated............... 1,300 36,237
American Management Systems Incorporated
(a)..................................... 1,500 44,906
Automatic Data Processing Incorporated.... 2,100 153,038
G & K Services Incorporated............... 1,000 43,625
Olsten Corporation........................ 2,400 26,850
----------
304,656
----------
CHEMICALS - 3.3%
Avery Dennison Corporation................ 2,800 150,500
Brady W. H. Company....................... 1,400 38,937
Fuller H.B. Company....................... 800 44,350
MacDermid Incorporated.................... 1,400 39,550
Nalco Chemical Company.................... 900 31,612
Sigma-Aldrich Corporation................. 3,600 126,450
----------
431,399
----------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
4
<PAGE>
PB SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ---------------------------------------------- --------- ----------
COMMON STOCK (CONTINUED)
<S> <C> <C>
COMMUNICATIONS SERVICES - 1.5%
Interpublic Group of Companies
Incorporated........................... 2,400 $ 145,650
True North Communications Incorporated... 1,700 49,725
----------
195,375
----------
COMPUTERS & BUSINESS EQUIPMENT - 4.8%
Cisco Systems Incorporated (a)........... 2,200 202,538
Electronic Data Systems Corporation...... 2,900 116,000
General Binding Corporation.............. 1,400 51,538
Hewlett-Packard Company.................. 2,200 131,725
Paxar Corporation........................ 3,300 37,950
Sci Systems Incorporated................. 1,000 37,625
SunGard Data Systems Incorporated (a).... 1,400 53,725
----------
631,101
----------
CONGLOMERATES - 1.7%
Mark IV Industries Incorporated.......... 1,800 38,925
National Service Industries.............. 800 40,700
Textron Incorporated..................... 2,000 143,375
----------
223,000
----------
CONSTRUCTION & MINING EQUIPMENT - 0.2%
Foster Wheeler Corporation............... 1,300 27,869
----------
CONSTRUCTION MATERIALS - 0.6%
Valspar Corporation...................... 1,000 39,625
Vulcan Materials Company................. 400 42,675
----------
82,300
----------
CONTAINERS & GLASS - 0.2%
Bemis Company Incorporated............... 800 32,700
----------
DRUGS & HEALTH CARE - 10.1%
Abbott Laboratories...................... 3,400 138,975
Bard C.R. Incorporated................... 1,000 38,063
Biomet Incorporated...................... 1,400 46,288
Block Drug Company Incorporated.......... 927 35,226
Diagnostic Products Corporation.......... 1,300 37,456
Invacare Corporation..................... 1,600 41,000
Johnson & Johnson........................ 1,800 132,750
Life Technologies Incorporated........... 1,500 47,063
Longs Drug Stores Corporation............ 1,400 40,425
Manor Care Incorporated.................. 1,100 42,281
Mylan Laboratories Incorporated.......... 1,700 51,106
Patterson Dental Company (a)............. 1,500 54,937
Pfizer Incorporated...................... 1,700 184,769
Respironic Incorpated (a)................ 1,700 26,456
Schering Plough Corporation.............. 2,000 183,250
Thermedics Incorporated (a).............. 2,500 30,938
Warner-Lambert Company................... 3,000 208,125
----------
1,339,108
----------
ELECTRIC UTILITIES - 2.2%
Central & South West Corporation......... 4,900 131,688
Duke Power Company....................... 2,600 154,050
----------
285,738
----------
</TABLE>
PB SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------- --------- ----------
COMMON STOCK (CONTINUED)
<S> <C> <C>
ELECTRICAL EQUIPMENT - 2.9%
Baldor Electric Company.................. 1,866 $ 45,484
Dentsply International Incorporated...... 1,200 30,000
Federal Signal Corporation............... 1,800 43,762
General Electric Company................. 1,700 154,700
Hubbell Incorporated..................... 800 33,300
Technitrol Incorporated.................. 1,400 55,913
Thomas & Betts Corporation............... 600 29,550
----------
392,709
----------
ELECTRONICS - 4.9%
AMP Incorporated......................... 2,900 99,688
Avnet Incorporated....................... 700 38,281
Benchmark Electronics Incorporated (a)... 1,700 34,000
Cohu Incorporated........................ 900 21,881
Dionex Corporation....................... 1,600 42,200
Harris Corporation....................... 800 35,750
Intel Corporation........................ 1,600 118,600
Kronos Incorporated...................... 1,300 47,125
Methode Electronics...................... 3,200 49,600
MTS Systems Corporation.................. 2,900 46,581
Nichols Research Corporation............. 1,900 51,894
Varian Associates Incorporated........... 600 23,400
X-Rite Incorporated...................... 2,500 34,219
----------
643,219
----------
FINANCIAL SERVICES - 2.4%
A.G. Edwards Incorporated................ 950 40,553
Legg Mason Incorporated.................. 766 44,093
Morgan Keegan Incorporated............... 2,000 51,750
Merrill Lynch & Company.................. 2,000 184,500
----------
320,896
----------
FOOD & BEVERAGES - 2.9%
Bestfoods................................ 2,400 139,350
Dean Foods Company....................... 900 49,444
Richfood Holdings Incorporated........... 1,500 31,031
PepsiCo Incorporated..................... 4,000 164,750
----------
384,575
----------
FOOD SERVICE - 1.2%
Sysco Corporation........................ 6,200 158,875
----------
FUNERAL SERVICES - 0.3%
Stewart Enterprises Incorporated......... 1,600 42,600
----------
GAS DISTRIBUTION - 3.4%
Energen Corporation...................... 3,500 70,438
K N Energy Incorporated.................. 700 37,931
Northwest Natural Gas Company............ 1,600 44,750
Oneok Incorporated....................... 1,400 55,825
Piedmont Natural Gas Company
Incorporated........................... 1,600 53,800
Utilicorp United Incorporated............ 1,100 41,456
Williams Companies Incorporated.......... 4,300 145,125
----------
449,325
----------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
5
<PAGE>
PB SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------- --------- ----------
COMMON STOCK (CONTINUED)
<S> <C> <C>
GAS EXPLORATION - 2.8%
Apache Corporation....................... 1,100 $ 34,650
Eastern Enterprises...................... 1,100 47,162
Equitable Resources Incorporated......... 1,200 36,600
National Fuel Gas Company................ 800 34,850
Questar Corporation...................... 1,800 35,325
Southwestern Energy Company.............. 4,100 37,669
Unocal Corporation....................... 3,900 139,425
----------
365,681
----------
HOME BUILDERS - 0.6%
Lennar Corporation....................... 1,100 32,450
Thor Industries Incorporated............. 1,650 45,684
----------
78,134
----------
HOUSEHOLD APPLIANCES - 0.7%
Interface Incorporated................... 2,200 44,412
La-Z-Boy Incorporated.................... 900 50,850
----------
95,262
----------
HOUSEHOLD PRODUCTS - 3.6%
Alberto Culver Company................... 1,300 37,700
Colgate-Palmolive Company................ 1,800 158,400
Kimberly-Clark Corporation............... 2,600 119,275
Newell Company........................... 3,200 159,400
----------
474,775
----------
HOTELS & RESTAURANTS - 0.8%
Cracker Barrel Old Country Store
Incorporated........................... 1,000 31,750
Bob Evans Farms Incorporated............. 1,500 31,781
Marcus Corporation....................... 2,500 44,688
----------
108,219
----------
INDUSTRIAL MACHINERY - 3.1%
Clacor Incorporated...................... 2,250 47,250
Crane Company............................ 800 38,850
Cordant Technologies Incorprated......... 900 41,513
Deere & Company.......................... 2,500 132,187
Graco Incorporated....................... 1,500 52,312
Pentair Incorporated..................... 1,000 42,500
Tennant Company.......................... 1,200 53,100
----------
407,712
----------
INSURANCE - 7.6%
American Heritage Life Investment
Corporation............................ 3,700 85,563
American International Group
Incorporated........................... 1,250 182,500
Berkley (WR) Corporation................. 1,050 42,066
Chubb Corporation........................ 1,800 144,675
Fidelity National Financial
Incorprated............................ 1,500 59,719
Fremont General Corporation.............. 700 37,931
Frontier Insurance Group Incorporated.... 1,980 44,674
General Re Corporation................... 700 177,450
NAC Re Corporation....................... 900 48,037
Liberty Corporation...................... 900 45,281
Orion Capital Corporation................ 900 50,287
Protective Life Corporation.............. 1,200 44,025
Presidential Life Insurance Company
(a).................................... 2,100 44,887
----------
1,007,095
----------
</TABLE>
PB SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------- --------- ----------
COMMON STOCK (CONTINUED)
<S> <C> <C>
INTERNATIONAL OIL - 1.2%
Mobil Corporation........................ 2,000 $ 153,250
----------
INVESTMENT ADVISORY FIRMS - 1.3%
Eaton Vance Corporation.................. 1,100 50,944
SEI Investment Company................... 700 43,400
T. Rowe Price Associates Incorporated.... 1,200 45,075
United Asset Management Corporation...... 1,400 36,487
----------
175,906
----------
NEWSPAPERS - 1.4%
Lee Enterprises Incorporated............. 1,300 39,812
Tribune Company.......................... 2,100 144,506
----------
184,318
----------
PAPER - 1.5%
Lydall Incorporated (a).................. 2,600 37,862
Sonoco Products Company.................. 3,740 113,135
Wausau-Mosinee Paper Corporation......... 2,100 48,037
----------
199,034
----------
PETROLEUM SERVICES - 1.0%
Dresser Industries Incorporated.......... 2,900 127,781
----------
PUBLISHING - 1.1%
Banta Corporation........................ 1,500 46,313
Bowne & Company Incorporated............. 1,100 49,500
Houghton Mifflin Company................. 1,400 44,450
----------
140,263
----------
RAILROADS & EQUIPMENT - 1.3%
GATX Corporation......................... 1,200 52,650
Norfolk Southern Corporation............. 3,900 116,269
----------
168,919
----------
RETAIL GROCERY - 0.4%
Casey's General Stores Incorporated...... 3,100 51,344
----------
RETAIL TRADE - 4.3%
Home Depot Incorporated.................. 2,250 186,891
Office Depot Incorporated................ 1,400 44,188
Ross Stores Incorporated................. 1,000 43,000
Ruddick Corporation...................... 2,400 43,500
Stride Rite Corporation.................. 3,600 54,225
Wal-Mart Stores Incorporated............. 3,200 194,400
----------
566,204
----------
SOFTWARE - 2.1%
Adobe Systems Incorporated............... 900 38,194
Analysts International Corporation....... 1,300 36,888
Autodesk Incorporated.................... 900 34,763
Computer Associates International
Incorporated........................... 3,000 166,688
----------
276,533
----------
STEEL - 1.5%
Carpenter Technology Corporation......... 900 45,225
Nucor Corporation........................ 2,500 115,000
Worthington Industries Incorporated...... 2,300 34,644
----------
194,869
----------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
6
<PAGE>
PB SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------- --------- ----------
COMMON STOCK (CONTINUED)
<S> <C> <C>
TELEPHONE - 3.9%
Aliant Communications Incorporated....... 1,700 $ 46,644
Alltel Corporation....................... 3,100 144,150
Bell Atlantic Corporation................ 2,800 127,750
Century Telephone Enterprises
Incorporated........................... 1,050 48,169
SBC Communications Incorporated.......... 3,800 152,000
----------
518,713
----------
TIRES & RUBBER - 0.3%
Carlisle Companies Incorporated.......... 1,000 43,063
----------
TOBACCO - 1.0%
Philip Morris Companies Incorporated..... 3,400 133,875
----------
TRUCKING & FREIGHT FORWARDING - 0.7%
Air Express International Corporation.... 1,800 48,150
Rollins Truck Leasing Corporation........ 3,450 42,694
----------
90,844
----------
TOTAL COMMON STOCK (Cost $10,890,675) 13,100,335
----------
SHORT-TERM INVESTMENTS - 0.9%
INVESTMENT COMPANY - 0.9%
SSgA U.S. Government Money Market Fund... 116,176 116,176
----------
TOTAL SHORT-TERM INVESTMENTS (Cost $116,176) 116,176
----------
TOTAL INVESTMENTS - (Cost $11,006,851) - 100.0% 13,216,511
OTHER ASSETS LESS LIABILITIES - 0.0% 1,156
----------
NET ASSETS - 100.0% $13,217,667
----------
----------
</TABLE>
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.
PB SERIES TRUST
FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- --------------------------------------------- --------- ----------
<S> <C> <C>
MORTGAGE BACKED SECURITIES - 1.6%
GE Capital Mortgage 6.500%, 01/25/18..... $ 89,622 $ 89,538
----------
TOTAL MORTGAGE BACKED SECURITIES
- (Cost $89,180) 89,538
----------
U.S. GOVERNMENT AND AGENCY SECURITIES - 73.5%
GOVERNMENT AGENCY - 31.4%
Federal Home Loan Mortgage Corporation
5.950%, 01/19/06....................... 750,000 755,857
Federal National Mortgage Association
6.375%, 01/16/02....................... 500,000 510,310
5.875%, 02/02/06....................... 275,000 275,817
5.750%, 06/25/10....................... 100,000 99,625
5.500%, 02/25/17....................... 100,000 99,125
----------
1,740,734
----------
U.S. GOVERNMENT - 42.1%
U.S. Treasury Notes
5.875%, 08/31/99....................... 750,000 752,933
6.125%, 12/31/01....................... 250,000 254,530
6.500%, 08/15/05....................... 1,250,000 1,319,138
----------
2,326,601
----------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
- (Cost $3,908,775) 4,067,335
----------
<CAPTION>
SHARES
---------
<S> <C> <C>
SHORT TERM INVESTMENTS - 23.5%
INVESTMENT COMPANY - 4.1%
SSgA U.S. Government Money Market Fund... 225,000 225,000
----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
REPURCHASE AGREEMENT - 1.6%
Agreement with State Street Bank and
Trust Company, dated 6/30/1998, 4.250%,
to be repurchased at $87,254 on
07/01/1998 (collateralized by $85,000
par value U.S. Treasury Notes, 7.875%,
due 11/15/07, with a value of
$93,394)............................... $ 87,243 87,243
----------
GOVERNMENT AGENCY - 17.8%
Federal Farm Credit Bank Discount Note
5.310%, 02/08/99....................... 500,000 483,040
Federal Home Loan Bank Discount Note
5.430%, 07/15/98....................... 500,000 498,944
----------
981,984
----------
TOTAL SHORT TERM INVESTMENTS
- (Cost $1,294,815) 1,294,227
----------
TOTAL INVESTMENTS - (Cost $5,292,770) - 98.6% 5,451,100
OTHER ASSETS LESS LIABILITIES - 1.4% 80,173
----------
NET ASSETS - 100.0% $5,531,273
----------
----------
</TABLE>
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 NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
7
<PAGE>
PB SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------- --------- ----------
<S> <C> <C>
COMMON STOCK AND OTHER
EQUITY INTERESTS - 96.7%
ARGENTINA - 0.5%
Astra CIA................................ 4,340 $ 6,988
BCO De Galicia........................... 1,769 7,784
BCO Frances RI........................... 518 3,807
Molions Rio PL........................... 1,172 2,567
Perez Companc SA Sponsored ADR........... 1,500 14,836
Siderca SA............................... 4,880 8,297
Telfonica de Argentina Sponsored ADR..... 637 20,663
----------
64,942
----------
AUSTRALIA - 0.8%
Amcor Limited............................ 1,485 6,498
Broken Hill Proprietary Company
Limited................................ 1,213 10,249
Comalco Limited.......................... 1,946 6,805
Leighton Holdings Limited................ 1,117 3,910
Lend Lease Corporation................... 500 10,105
News Corporation Limited................. 640 5,221
National Australia Bank.................. 1,200 15,821
Pasminco Limited......................... 5,883 4,479
TABCORP Holdings Limited................. 1,044 5,331
Telstra Corporation...................... 3,600 9,225
Westpac Banking Corporation Limited...... 3,463 21,114
----------
98,758
----------
CHILE - 0.9%
Banco Santander Chile ADR................ 1,020 13,133
Compania Cervecerias Unidas SA Sponsored
ADR.................................... 339 7,161
Compania de Telecom De Chile Sponsored
ADR.................................... 1,079 21,917
Gener SA Sponsored ADR................... 687 12,538
Empresa Nacional Electricidad Sponsored
ADR.................................... 1,169 16,658
Enersis Sponsored ADR.................... 945 23,093
Madeco SA Sponsored ADR.................. 312 2,750
Maderas ADR.............................. 432 3,601
Quimica Y Minera Chile SA Sponsored
ADR.................................... 190 6,365
----------
107,216
----------
FINLAND - 5.3%
Hartwall Ab Oy........................... 1,265 40,513
Metsa Serla Oy........................... 3,231 31,161
Neste Oy................................. 1,256 38,854
Nokia Ab Oy.............................. 4,420 324,538
Okobank Osuuspankk....................... 1,652 29,911
Rautaruukki Oy........................... 2,273 17,371
UPM Kymmene Corporation Oy............... 1,536 42,205
Viking Line AB........................... 200 10,590
WSOY "B"................................. 1,112 72,846
YIT-Yhtymaoy Oy.......................... 1,399 22,402
----------
630,391
----------
FRANCE - 15.9%
Alcatel Alsthom.......................... 632 128,362
Alstom (a)............................... 800 26,266
AXA UAP.................................. 685 76,853
Banque Nationale de Paris................ 1,040 84,766
Compagnie De St. Gobain.................. 570 105,424
</TABLE>
PB SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- --------------------------------------------- --------- ----------
COMMON STOCK AND OTHER
EQUITY INTERESTS (CONTINUED)
<S> <C> <C>
FRANCE - (CONTINUED)
Credit Commer France....................... 490 $ 41,150
Elf Aquitaine SA........................... 1,066 149,499
France Telecom (a)......................... 850 58,481
Groupe Danone.............................. 411 113,042
Group GTM.................................. 800 82,891
L'Oreal.................................... 220 122,070
Lafarge SA................................. 990 102,088
LVMH Moet Hennessy......................... 540 107,805
Peugeot.................................... 680 145,852
Pinault-Printemps.......................... 130 108,531
Schneider SA............................... 504 40,089
Societe Generale........................... 547 113,445
Total "B" FRF 50........................... 810 105,043
Valeo...................................... 685 69,846
Vivendi.................................... 521 110,975
----------
1,892,478
----------
GERMANY - 13.6%
Allianz AG................................. 405 133,282
Allianz rights (a)......................... 11 3,589
BASF AG.................................... 1,300 61,476
Bayer AG................................... 2,943 151,544
Bayerische Vereinsba....................... 1,200 101,880
Commerzbank AG............................. 1,190 45,414
Daimler-Benz AG............................ 757 74,108
Daimler-Benz AG rights (a)................. 757 837
Deutsche Bank.............................. 950 80,313
Dresdner Bank AG........................... 661 35,572
Mannesmann AG.............................. 1,480 149,882
Metro AG................................... 1,000 60,564
Muenchener Rueckver........................ 125 61,877
RWE AG..................................... 1,400 82,853
SAP AG-Vorzug.............................. 310 210,381
Siemens AG................................. 985 59,819
VEBA AG.................................... 1,210 82,317
Viag AG.................................... 155 104,590
Volkswagon AG.............................. 130 124,751
----------
1,625,049
----------
IRELAND - 2.3%
Allied Irish Bank.......................... 8,100 116,815
CRH PLC.................................... 5,100 72,271
Irish Life PLC............................. 2,700 24,830
Kerry Group PLC ADR........................ 2,100 28,968
Smurfit (Jefferson) Group.................. 12,600 37,396
----------
280,280
----------
ISRAEL - 1.5%
Bank Hapoalim Limited...................... 7,900 23,874
Bank Leumi Le-Israel....................... 6,000 11,957
Bezeq Israeli Telecommunication Corporation
Limited.................................. 4,500 14,371
Blue Square-Israel Limited (a)............. 700 8,614
ECI Telecommunications Equipment........... 580 21,968
Elite Industries Limited................... 300 9,801
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
8
<PAGE>
PB SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ----------- ----------
COMMON STOCK AND OTHER
EQUITY INTERESTS (CONTINUED)
<S> <C> <C>
ISRAEL - (CONTINUED)
Formula Systems Limited (a)................ 410 $ 14,332
Industrial Buildings Corporation........... 7,800 13,060
Israel Chemicals Limited................... 7,800 9,959
Koor Industries Limited.................... 160 18,470
Teva Pharmaceutical Industries Limited..... 480 17,224
Super-Sol Limited.......................... 4,100 13,495
----------
177,125
----------
ITALY - 7.8%
Alleanza Assicurazioni..................... 3,521 47,750
Assic Generali............................. 2,780 90,234
Banca Commerciale Italiana................. 19,767 117,997
Benetton Group SPA......................... 20,800 43,100
Danieli & Company.......................... 5,001 41,985
Edison SPA................................. 8,000 64,085
Eni SPA.................................... 22,403 146,564
Fiat SPA................................... 15,301 66,849
Instituto Nazionale delle Assicurazioni
Istituto................................. 13,846 39,265
Istituto Mobiliare Italiano SPA............ 4,018 63,177
Telecom Italia SPA......................... 14,080 103,460
Telecom Italia Mobile SPA.................. 18,000 109,875
----------
934,341
----------
JAPAN - 13.7%
Aoyama Trading Company Limited............. 3,300 81,103
Bridgestone Company........................ 2,000 47,141
Canon Incorporated......................... 2,000 45,273
Fanuc...................................... 3,200 110,380
Fuji Photo Film Company.................... 3,000 104,128
Fujisawa Pharmaceutical Company............ 6,000 55,966
Hitachi Limited............................ 6,000 39,021
Ito-Yokado................................. 1,000 46,926
Kirin Brewery Company...................... 7,000 65,897
Matsushita Electric Works.................. 3,000 48,075
Mitsubishi Heavy Industries................ 11,000 41,421
Mitsui O.S.K. Lines Limited (a)............ 31,000 52,574
Murata Manufacturing Company Limited....... 2,000 64,676
NEC Corporation............................ 11,000 102,209
Nippon Telephone & Telegraph Corporation... 32 132,226
Sumitomo Bank Limited...................... 10,000 97,014
Sumitomo Trust & Banking................... 10,000 44,554
Tokio Marine & Fire Insurance.............. 5,000 51,237
Tokyo Electric............................. 2,100 41,047
Toyota Motor............................... 2,000 51,597
Webs Japan Index Series.................... 32,000 314,000
----------
1,636,465
----------
NETHERLANDS - 5.0%
ABN AMRO Holdings NV....................... 1,532 35,777
Akzo Nobel................................. 203 45,036
Elsevier................................... 1,500 22,592
Fortis Amev NV............................. 600 35,059
ING Groep NV............................... 1,269 82,929
Koninklijke PTT Nederland NV............... 755 29,003
Philips Electronics NV..................... 524 43,961
</TABLE>
PB SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ----------- ----------
COMMON STOCK AND OTHER
EQUITY INTERESTS (CONTINUED)
<S> <C> <C>
NETHERLANDS - (CONTINUED)
Royal Dutch Petroleum Company.............. 2,848 $ 157,612
TNT Post Group NV (a)...................... 755 19,124
Unilever NV, PLC........................... 936 74,117
VNU-Verenigde Nederlandse
Uitgeversbedrijven Verenigd Bezit........ 1,610 58,373
----------
603,583
----------
PORTUGAL - 4.5%
Banco Comercia Portugues................... 2,515 71,268
Banco Espirito............................. 700 20,978
BCO Esprto Snt............................. 2,000 12,426
Banco Port De Inv BP....................... 800 25,764
Brisa...................................... 400 17,072
Cimpor Cimento............................. 1,700 59,608
Elec De Portugal (a)....................... 3,100 71,918
Jeronimo Martins........................... 1,250 59,930
Mundial Confianca (a)...................... 800 21,222
Portugal Telecom SA........................ 2,500 132,232
Sonae Investimentos........................ 800 43,606
----------
536,024
----------
SPAIN - 5.6%
Argentaria Corporation SA.................. 3,000 67,240
Autopistas Concesion....................... 2,600 40,233
Autopistas rights (a)...................... 2,600 1,965
Banco Bilbao Vizcaya....................... 2,000 102,554
Banco Central Hispanic..................... 937 29,426
Banco Santande SA.......................... 1,700 43,474
Endesa SA.................................. 3,000 65,578
Gas Natural SDG............................ 580 41,871
Gas Y Electricidads........................ 400 30,414
Iberdrola SA............................... 4,000 64,894
Repsol SA.................................. 700 38,539
Telefonica De Espana....................... 3,000 138,584
----------
664,772
----------
SWITZERLAND - 7.8%
ABB AG..................................... 30 44,225
Clariant AG................................ 122 80,209
Credit Suisse Group........................ 368 81,737
Holderbank Financiere Glarus AG............ 51 64,777
Kuoni Reisen Holding AG.................... 14 69,378
Nestle SA.................................. 67 143,127
Novartis AG................................ 106 176,073
Roche Holding AG........................... 12 117,630
Tag Heuer International SA................. 349 33,016
Union Bank of Switzerland.................. 310 115,064
----------
925,236
----------
UNITED KINGDOM - 10.9%
Abbey National PLC......................... 3,375 60,101
Boots Company PLC.......................... 4,826 80,227
British Petroleum.......................... 2,920 42,480
British Telecommunications PLC............. 4,874 59,935
Cadbury Schwep PLC......................... 2,700 41,778
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
9
<PAGE>
PB SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------------------------- ----------- ----------
COMMON STOCK AND OTHER
EQUITY INTERESTS (CONTINUED)
<S> <C> <C>
UNITED KINGDOM - (CONTINUED)
CGU PLC.................................... 3,367 $ 62,822
Glaxo Wellcome............................. 2,140 64,370
HSBC Holdings.............................. 2,330 59,091
IMI PLC.................................... 5,477 33,926
Lasmo PLC.................................. 8,200 32,882
Lloyds TSB Group PLC....................... 8,396 117,175
National Power PLC......................... 4,100 38,556
Prudential Corporation PLC................. 4,685 61,712
Scottish & Newcastle PLC................... 5,271 74,134
Scottish Power PLC......................... 5,784 51,018
Shell Transport & Trading Company PLC...... 5,107 35,849
Smithkline Beecham PLC..................... 6,788 82,567
Tesco PLC.................................. 5,700 55,551
TI Group PLC............................... 4,400 33,784
Unilever PLC............................... 7,452 79,957
Wolseley PLC............................... 5,909 35,001
Zeneca Group PLC........................... 2,246 96,433
----------
1,299,349
----------
VENEZUELA - 0.6%
Ceramica Carabobo ADR...................... 1,391 3,130
Cia Anonima Telef De Ven ADR............... 2,000 50,000
Mavesa SA Sponsored ADR.................... 1,750 5,578
Siderurgica Venez SIV ADR.................. 775 5,086
Sudamtex De Venezuela ADR.................. 1,314 3,285
----------
67,079
----------
TOTAL COMMON STOCK AND OTHER EQUITY INTERESTS (Cost
$9,462,891) 11,543,088
----------
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
SHORT TERM INVESTMENTS - 2.6%
TIME DEPOSIT - 2.6%
State Street Bank and Trust Company Time
Deposit, 7/01/98......................... $ 318,000 318,000
----------
TOTAL SHORT TERM INVESTMENTS
- (Cost $318,000) 318,000
----------
TOTAL INVESTMENTS - (Cost $9,780,891) - 99.3% 11,861,088
OTHER ASSETS LESS LIABILITIES - 0.7% 77,744
----------
NET ASSETS - 100.0% $11,938,832
----------
----------
</TABLE>
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.
PB SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<S> <C>
INDUSTRY HOLDINGS AT JUNE 30, 1998
Banking......................................... 15.63 %
Telecommunications.............................. 10.44 %
Energy Sources.................................. 7.34 %
Insurance....................................... 5.76 %
Health & Personal Care.......................... 5.45 %
Utilities-Electrical & Gas...................... 4.90 %
Food & Household Products....................... 4.34 %
Automobiles..................................... 3.88 %
Building Materials & Components................. 3.73 %
Chemicals....................................... 3.66 %
Merchandising................................... 3.29 %
Electrical and Electronics...................... 3.13 %
Multi-Industry.................................. 3.07 %
Investment Companies............................ 2.62 %
Beverages & Tobacco............................. 2.42 %
Electronic Components, Instruments.............. 2.17 %
Machinery and Engineering....................... 2.16 %
Financial Services.............................. 1.61 %
Recreation, Other Consumer Goods................ 1.53 %
Business & Public Services...................... 1.43 %
Broadcasting and Publishing..................... 1.33 %
Construction & Housing.......................... 1.25 %
Forest Products & Paper......................... 1.01 %
Miscellaneous Materials......................... 0.88 %
Appliances & Household Durables................. 0.77 %
Leisure & Tourism............................... 0.63 %
Transportation-Shipping......................... 0.53 %
Industrial Components........................... 0.41 %
Textiles & Apparel.............................. 0.39 %
Metals-Non Ferrous.............................. 0.38 %
Metals-Steel.................................... 0.26 %
Real Estate..................................... 0.19 %
Energy Equipment & Services..................... 0.06 %
----------
Total Investments by Industry................. 96.65 %
Time Deposit.................................... 2.64 %
----------
Total Investments............................. 99.29 %
Other Assets Less Liabilities................... 0.71 %
----------
Net Assets...................................... 100.00 %
----------
----------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
10
<PAGE>
PB SERIES TRUST
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ---------------------------------------------- ----------- ---------
<S> <C> <C>
VARIABLE RATE NOTES - 35.1%
Edgefield County, SC County School
District, Series, 1997 5.687%, 12/01/04
+....................................... $ 100,000 $ 100,000
Grand Aire Express, Inc., Series 1997
5.690%, 07/01/12 +...................... 100,000 100,000
International Processing Corporation
5.710%, 01/02/08 +...................... 10,000 10,000
IT Spring Wire, LLC, Series 1997
5.690%, 07/01/07 +...................... 100,000 100,000
JFK Family Borrowing, LLP, Series 1997
5.640%, 10/01/22 +...................... 50,000 50,000
La-Man Corporation
5.740%, 09/01/12 +...................... 100,000 100,000
Scranton Times, LP., Series 1997
5.652%, 05/31/07 +...................... 100,000 100,000
Triangle Funding, Series 1997
5.687%, 11/16/98 +...................... 100,000 100,000
Westcourt
5.710%, 06/01/16 +...................... 60,000 60,000
---------
TOTAL VARIABLE RATE NOTES
- (Cost $720,000) 720,000
---------
SHORT TERM INVESTMENTS - 64.8%
JOINT REPURCHASE AGREEMENTS - 64.8%
Joint agreement with Fuji Government
Securities Incorporated, dated
06/30/1998, bearing 5.880%, to be
repurchased at $41,007 on 07/01/1998
(collateral: U.S Treasury Notes/
Bonds/Bills, 5.375% - 12.375%, 07/02/98
- 11/15/21, value equal to 102% of the
repurchase agreement)................... 41,000 41,000
Joint agreement with Goldman Sachs &
Company, dated 06/30/1998, bearing
6.250%, to be repurchased at $500,087 on
07/01/1998 (collateral: Government
National Mortgage Association 6.000% -
13.500%, 10/15/98 - 06/30/28 value equal
to 102% of the repurchase agreement).... 500,000 500,000
Joint agreement with Morgan Stanley &
Company, dated 06/30/1998, bearing
6.250%, to be repurchased at $100,017 on
07/01/1998, (collateral: Federal Home
Loan Mortgage, Federal National Mortgage
Association, 5.500% - 8.500%, 01/15/02 -
07/30/28, value equal to 102% of the
repurchase agreement)................... 100,000 100,000
</TABLE>
PB SERIES TRUST
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ---------------------------------------------- ----------- ---------
SHORT TERM INVESTMENTS (CONTINUED)
<S> <C> <C>
Joint agreement with Salomon Brothers
Inc., dated 06/30/1998, bearing 6.250%,
to be repurchased at $500,087 on
07/01/1998 (collateral: Federal Home
Loan Mortgage, Federal National Mortgage
Association, 7.000% - 8.000%, 09/15/12 -
11/30/27, value equal to 102% of the
repurchase agreement)................... $ 500,000 $ 500,000
Joint agreement with Societe General
Securities, dated 06/30/1998, bearing
6.000%, to be repurchased at $90,015 on
07/01/98 (collateral: U.S Treasury
Notes/Bonds 5.625% - 8.000%, 04/30/99 -
02/15/23, value equal to 102% of the
repurchase agreement)................... 90,000 90,000
Joint agreement with UBS Securities dated
06/30/1998, bearing 6.050%, to be
repurchased at $100,017 on 07/01/1998
(collateral: U.S Treasury Bonds, 8.125%
- 9.250%, 02/15/16 - 08/15/21, value
equal to 102% of the repurchase
agreement).............................. 100,000 100,000
---------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,331,000) 1,331,000
---------
TOTAL INVESTMENTS AT AMORTIZED COST AND VALUE - 99.9%
2,051,000
OTHER ASSETS LESS LIABILITIES - 0.1% 1,555
---------
NET ASSETS - 100.0% $2,052,555
---------
---------
</TABLE>
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.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
11
<PAGE>
PB SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL INCOME GROWTH &
PRESERVATION ORIENTED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
------------ -------- ---------
<S> <C> <C> <C>
ASSETS
Investments in
securities, at value
(a).................. $523,572 $ 14,168 $328,215
Repurchase agreements,
at value (a)......... -- -- --
Cash, including foreign
currency, at value... -- -- --
Interest receivable.... -- -- --
Dividends receivable... -- -- --
Prepaid insurance...... 233 233 233
Receivable from
Investment Advisor
(Note 3)............. 4,146 4,150 4,226
Receivable for
securities sold...... -- -- --
------------ -------- ---------
TOTAL ASSETS......... 527,951 18,551 332,674
LIABILITIES
Payable for securities
purchased............ -- -- --
Payable for forward
currency contract
(Note 6)............. -- -- --
Payable to Custodian... 1,263 1,268 1,165
Payable to Investment
Advisor.............. -- -- --
Accounts payable and
accrued expenses..... 3,113 3,115 3,293
------------ -------- ---------
TOTAL LIABILITIES.... 4,376 4,383 4,458
------------ -------- ---------
NET ASSETS........... $523,575 $ 14,168 $328,216
------------ -------- ---------
------------ -------- ---------
NET ASSETS CONSIST OF:
Paid-in capital........ $507,755 $ 13,608 $309,362
Undistributed net
investment income
(Note 2)............. 8,033 41 644
Accumulated net
realized gain (loss)
on investments and
foreign currency
transactions......... 2,011 57 476
Net unrealized
appreciation
(depreciation) of:
Investments.......... 5,776 462 17,734
Translations of
assets and
liabilities in
foreign
currencies......... -- -- --
------------ -------- ---------
NET ASSETS........... $523,575 $ 14,168 $328,216
------------ -------- ---------
------------ -------- ---------
NET ASSET VALUE PER SHARE
Offering and redemption
price per share
(based on shares of
beneficial interest
outstanding)......... $ 10.51 $ 11.30 $ 11.53
Total shares
outstanding at end of
period............... 49,797 1,254 28,458
Capital shares
authorized........... Indefinite Indefinite Indefinite
(a) Investments in
securities, including
repurchase agreements,
at cost................ $517,796 $ 13,706 $310,481
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
12
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MAXIMUM HIGH FIXED MONEY
GROWTH APPRECIATION QUALITY INCOME INTERNATIONAL MARKET
PORTFOLIO PORTFOLIO STOCK FUND FUND ACTIVE FUND FUND
--------- ------------ ----------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in
securities, at value
(a).................. $ 694,060 $492,587 $13,216,511 $5,363,857 $11,861,088 $ 720,000
Repurchase agreements,
at value (a)......... -- -- -- 87,243 -- 1,331,000
Cash, including foreign
currency, at value... -- -- -- -- 1,374 --
Interest receivable.... -- -- 17 88,138 42 4,334
Dividends receivable... -- -- 14,299 -- 36,957 --
Prepaid insurance...... 233 233 233 233 233 233
Receivable from
Investment Advisor
(Note 3)............. 4,143 4,136 9,668 10,927 18,996 12,152
Receivable for
securities sold...... -- -- -- -- 62,729 --
--------- ------------ ----------- ---------- ------------- ---------
TOTAL ASSETS......... 698,436 496,956 13,240,728 5,550,398 11,981,419 2,067,719
LIABILITIES
Payable for securities
purchased............ -- -- -- -- 4,314 --
Payable for forward
currency contract
(Note 6)............. -- -- -- -- 1,791 --
Payable to Custodian... 1,253 1,214 1,441 625 -- 828
Payable to Investment
Advisor.............. -- -- 6,956 2,947 8,711 674
Accounts payable and
accrued expenses..... 3,118 3,156 14,664 15,553 27,771 13,662
--------- ------------ ----------- ---------- ------------- ---------
TOTAL LIABILITIES.... 4,371 4,370 23,061 19,125 42,587 15,164
--------- ------------ ----------- ---------- ------------- ---------
NET ASSETS........... $ 694,065 $492,586 $13,217,667 $5,531,273 $11,938,832 $2,052,555
--------- ------------ ----------- ---------- ------------- ---------
--------- ------------ ----------- ---------- ------------- ---------
NET ASSETS CONSIST OF:
Paid-in capital........ $ 648,682 $449,689 $10,316,718 $5,234,822 $10,107,015 $2,052,555
Undistributed net
investment income
(Note 2)............. -- 32 47,118 138,121 66,708 --
Accumulated net
realized gain (loss)
on investments and
foreign currency
transactions......... 5,572 5,264 644,171 -- (312,359) --
Net unrealized
appreciation
(depreciation) of:
Investments.......... 39,811 37,601 2,209,660 158,330 2,080,197 --
Translations of
assets and
liabilities in
foreign
currencies......... -- -- -- -- (2,729) --
--------- ------------ ----------- ---------- ------------- ---------
NET ASSETS........... $ 694,065 $492,586 $13,217,667 $5,531,273 $11,938,832 $2,052,555
--------- ------------ ----------- ---------- ------------- ---------
--------- ------------ ----------- ---------- ------------- ---------
NET ASSET VALUE PER SHARE
Offering and redemption
price per share
(based on shares of
beneficial interest
outstanding)......... $ 12.13 $ 12.65 $ 12.86 $ 10.58 $ 11.81 $ 1.00
Total shares
outstanding at end of
period............... 57,205 38,936 1,027,871 522,786 1,010,521 2,052,555
Capital shares
authorized........... Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite
(a) Investments in
securities, including
repurchase agreements,
at cost................ $ 654,249 $454,986 $11,006,851 $5,292,770 $ 9,780,891 $2,051,000
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
13
<PAGE>
PB SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL INCOME GROWTH &
PRESERVATION ORIENTED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income........ $ -- $ -- $ --
Dividend income........ 8,031 41 625
Less foreign taxes
withheld............ -- -- --
------------ --------- ---------
TOTAL INVESTMENT
INCOME............... 8,031 41 625
EXPENSES
Investment advisor fee
(Note 3)............. -- -- --
Administrative fee..... 4,492 4,492 4,492
Accounting fee......... 4,420 4,420 4,420
Audit fee.............. 829 829 829
Custodian fees and
expenses............. -- -- --
Trustee's fees (Note
3)................... 1,346 1,346 1,346
Printing expense....... 2,524 2,524 2,524
Legal fee.............. 427 427 427
Insurance expense...... 1,310 1,310 1,310
Miscellaneous
expense.............. 10 10 10
------------ --------- ---------
Total operating
expenses before
reimbursement....... 15,358 15,358 15,358
Expenses reimbursed by
the Investment
Advisor (Note 3)..... (15,358) (15,358) (15,358)
------------ --------- ---------
NET EXPENSES......... -- -- --
------------ --------- ---------
NET INVESTMENT
INCOME.............. 8,031 41 625
NET REALIZED AND
UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND
FOREIGN CURRENCY
Net realized gain from:
Investments.......... 2,011 57 549
Foreign currency
transactions........ -- -- --
------------ --------- ---------
2,011 57 549
Change in unrealized
appreciation
(depreciation)
during the period on:
Investments.......... 5,967 537 16,822
Translations of
assets and
liabilities in
foreign
currencies......... -- -- --
------------ --------- ---------
5,967 537 16,822
------------ --------- ---------
NET REALIZED AND
UNREALIZED GAIN...... 7,978 594 17,371
------------ --------- ---------
NET INCREASE IN NET
ASSETS
RESULTING FROM
OPERATIONS............. $ 16,009 $ 635 $ 17,996
------------ --------- ---------
------------ --------- ---------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
14
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MAXIMUM HIGH FIXED MONEY
GROWTH APPRECIATION QUALITY INCOME INTERNATIONAL MARKET
PORTFOLIO PORTFOLIO STOCK FUND FUND ACTIVE FUND FUND
--------- ------------ ---------- -------- --------------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income........ $ -- $ -- $ 3,932 $162,514 $ 11,543 $ 59,542
Dividend income........ -- -- 100,744 -- 146,899 --
Less foreign taxes
withheld............ -- -- -- -- (16,477) --
--------- ------------ ---------- -------- --------------- --------
TOTAL INVESTMENT
INCOME............... -- -- 104,676 162,514 141,965 59,542
EXPENSES
Investment advisor fee
(Note 3)............. -- -- 41,580 17,616 49,476 4,199
Administrative fee..... 4,492 4,492 29,860 29,858 29,858 29,853
Accounting fee......... 4,420 4,420 21,211 21,211 26,113 21,371
Audit fee.............. 829 829 4,455 4,369 4,369 4,369
Custodian fees and
expenses............. -- -- 3,711 2,314 43,753 2,713
Trustee's fees (Note
3)................... 1,346 1,346 1,351 1,346 1,346 1,346
Printing expense....... 2,524 2,524 2,658 2,658 2,658 2,658
Legal fee.............. 427 427 948 474 948 237
Insurance expense...... 1,310 1,310 1,310 1,310 1,310 1,310
Miscellaneous
expense.............. 10 10 906 480 590 252
--------- ------------ ---------- -------- --------------- --------
Total operating
expenses before
reimbursement....... 15,358 15,358 107,990 81,636 160,421 68,308
Expenses reimbursed by
the Investment
Advisor (Note 3)..... (15,358) (15,358) (50,417 ) (57,243) (97,203) (61,486)
--------- ------------ ---------- -------- --------------- --------
NET EXPENSES......... -- -- 57,573 24,393 63,218 6,822
--------- ------------ ---------- -------- --------------- --------
NET INVESTMENT
INCOME.............. -- -- 47,103 138,121 78,747 52,720
NET REALIZED AND
UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND
FOREIGN CURRENCY
Net realized gain from:
Investments.......... 5,605 5,311 556,692 -- 337,745 --
Foreign currency
transactions........ -- -- -- -- 23,624 --
--------- ------------ ---------- -------- --------------- --------
5,605 5,311 556,692 -- 361,369 --
Change in unrealized
appreciation
(depreciation)
during the period on:
Investments.......... 35,549 31,942 539,681 30,305 1,795,730 --
Translations of
assets and
liabilities in
foreign
currencies......... -- -- -- -- (4,613) --
--------- ------------ ---------- -------- --------------- --------
35,549 31,942 539,681 30,305 1,791,117 --
--------- ------------ ---------- -------- --------------- --------
NET REALIZED AND
UNREALIZED GAIN...... 41,154 37,253 1,096,373 30,305 2,152,486 --
--------- ------------ ---------- -------- --------------- --------
NET INCREASE IN NET
ASSETS
RESULTING FROM
OPERATIONS............. $ 41,154 $ 37,253 $1,143,476 $168,426 $ 2,231,233 $ 52,720
--------- ------------ ---------- -------- --------------- --------
--------- ------------ ---------- -------- --------------- --------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
15
<PAGE>
PB SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL INCOME GROWTH &
PRESERVATION ORIENTED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
------------- --------- ---------
<S> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS FOR THE
PERIOD ENDED JUNE 30,
1998
Net investment
income............... $ 8,031 $ 41 $ 625
Net realized gain...... 2,011 57 549
Change in unrealized
appreciation during
the period........... 5,967 537 16,822
------------- --------- ---------
Net increase in net
assets resulting from
operations........... 16,009 635 17,996
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... -- -- --
FUND SHARE TRANSACTIONS
(NOTE 5)............. 480,792 5,277 129,390
------------- --------- ---------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS............... 496,801 5,912 147,386
NET ASSETS:
Beginning of period.... 26,774 8,256 180,830
------------- --------- ---------
End of period (a)...... $523,575 $14,168 $328,216
------------- --------- ---------
------------- --------- ---------
(a) Including
undistributed net
investment income...... $ 8,033 $ 41 $ 644
------------- --------- ---------
------------- --------- ---------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
16
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MAXIMUM HIGH FIXED MONEY
GROWTH APPRECIATION QUALITY INCOME INTERNATIONAL MARKET
PORTFOLIO PORTFOLIO STOCK FUND FUND ACTIVE FUND FUND
--------- ------------ ----------- ---------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS FOR THE
PERIOD ENDED JUNE 30,
1998
Net investment
income............... $ -- $ -- $ 47,103 $ 138,121 $ 78,747 $ 52,720
Net realized gain...... 5,605 5,311 556,692 -- 361,369 --
Change in unrealized
appreciation during
the period........... 35,549 31,942 539,681 30,305 1,791,117 --
--------- ------------ ----------- ---------- -------------- ----------
Net increase in net
assets resulting from
operations........... 41,154 37,253 1,143,476 168,426 2,231,233 52,720
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... -- -- -- -- -- (52,720)
FUND SHARE TRANSACTIONS
(NOTE 5)............. (163,438) 210,595 (440,873 ) (243,840) (96,666) (308,786)
--------- ------------ ----------- ---------- -------------- ----------
TOTAL INCREASE
(DECREASE) IN NET
ASSETS............... (122,284) 247,848 702,603 (75,414) 2,134,567 (308,786)
NET ASSETS:
Beginning of period.... 816,349 244,738 12,515,064 5,606,687 9,804,265 2,361,341
--------- ------------ ----------- ---------- -------------- ----------
End of period (a)...... $ 694,065 $492,586 $13,217,667 $5,531,273 $11,938,832 $2,052,555
--------- ------------ ----------- ---------- -------------- ----------
--------- ------------ ----------- ---------- -------------- ----------
(a) Including
undistributed net
investment income...... $ -- $ 32 $ 47,118 $ 138,121 $ 66,708 $ --
--------- ------------ ----------- ---------- -------------- ----------
--------- ------------ ----------- ---------- -------------- ----------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
17
<PAGE>
PB SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD MAY 9, 1997* THROUGH DECEMBER 31, 1997
<TABLE>
<CAPTION>
CAPITAL INCOME GROWTH &
PRESERVATION ORIENTED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
------------ -------- ---------
<S> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS FOR THE
PERIOD ENDED DECEMBER
31, 1997
Net investment
income............... $ 605 $ 152 $ 2,992
Net realized gain
(loss)............... 73 40 1,968
Change in unrealized
appreciation
(depreciation) during
the period........... (191) (75) 912
------------ -------- ---------
Net increase (decrease)
in net assets
resulting from
operations........... 487 117 5,872
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... (603) (152) (2,989)
Net realized gain...... (73) (40) (2,026)
FUND SHARE TRANSACTIONS
(NOTE 5)............. 26,963 8,331 179,973
------------ -------- ---------
TOTAL INCREASE IN NET
ASSETS............... 26,774 8,256 180,830
NET ASSETS:
Beginning of period.... -- -- --
------------ -------- ---------
End of period (a)...... $26,774 $8,256 $180,830
------------ -------- ---------
------------ -------- ---------
(a) Including
undistributed
(distribution in excess
of) net investment
income................. $ 2 $ -- $ 19
------------ -------- ---------
------------ -------- ---------
</TABLE>
* Commencement of investment operations.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
18
<PAGE>
<TABLE>
<CAPTION>
CAPITAL MAXIMUM HIGH FIXED MONEY
GROWTH APPRECIATION QUALITY INCOME INTERNATIONAL MARKET
PORTFOLIO PORTFOLIO STOCK FUND FUND ACTIVE FUND FUND
--------- ------------ ----------- ---------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS FOR THE
PERIOD ENDED DECEMBER
31, 1997
Net investment
income............... $ 3,441 $ 1,462 $ 85,262 $ 173,609 $ 68,081 $ 66,964
Net realized gain
(loss)............... 2,459 2,634 229,655 16,311 (736,159) --
Change in unrealized
appreciation
(depreciation) during
the period........... 4,262 5,659 1,669,979 128,025 286,351 --
--------- ------------ ----------- ---------- -------------- ----------
Net increase (decrease)
in net assets
resulting from
operations........... 10,162 9,755 1,984,896 317,945 (381,727) 66,964
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment
income............... (3,441) (1,462) (85,247 ) (173,971) (17,693) (66,964)
Net realized gain...... (2,492) (2,649) (142,176 ) (16,311) -- --
FUND SHARE TRANSACTIONS
(NOTE 5)............. 812,120 239,094 10,757,591 5,479,024 10,203,685 2,356,341
--------- ------------ ----------- ---------- -------------- ----------
TOTAL INCREASE IN NET
ASSETS............... 816,349 244,738 12,515,064 5,606,687 9,804,265 2,356,341
NET ASSETS:
Beginning of period.... -- -- -- -- -- 5,000
--------- ------------ ----------- ---------- -------------- ----------
End of period (a)...... $ 816,349 $244,738 $12,515,064 $5,606,687 $ 9,804,265 $2,361,341
--------- ------------ ----------- ---------- -------------- ----------
--------- ------------ ----------- ---------- -------------- ----------
(a) Including
undistributed
(distribution in excess
of) net investment
income.................. $ -- $ 32 $ 15 $ -- $ (12,039) $ --
--------- ------------ ----------- ---------- -------------- ----------
--------- ------------ ----------- ---------- -------------- ----------
</TABLE>
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
19
<PAGE>
PB SERIES TRUST
FINANCIAL HIGHLIGHTS
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
CAPITAL PRESERVATION INCOME ORIENTED
PORTFOLIO PORTFOLIO
---------------------- -----------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
6/30/98 12/31/97* 6/30/98 12/31/97*
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period........................................ $ 10.23 $ 10.00 $ 10.63 $ 10.00
---------- --------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................................................... 0.16 0.24 0.03 0.20
Net realized and unrealized gain on investments............................. 0.12 0.26 0.64 0.68
---------- --------- ---------- ----------
Total from investment operations............................................ 0.28 0.50 0.67 0.88
---------- --------- ---------- ----------
LESS DISTRIBUTIONS FROM:
Net investment income....................................................... -- (0.24) -- (0.20 )
Net realized gains.......................................................... -- (0.03) -- (0.05 )
---------- --------- ---------- ----------
Total distributions......................................................... -- (0.27) -- (0.25 )
---------- --------- ---------- ----------
Net asset value, end of period.............................................. $ 10.51 $ 10.23 $ 11.30 $ 10.63
---------- --------- ---------- ----------
---------- --------- ---------- ----------
Total return (2)............................................................ 2.78% 4.92% 6.20% 8.84%
---------- --------- ---------- ----------
---------- --------- ---------- ----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period................................................... $523,575 $ 26,774 $ 14,168 $ 8,256
Ratio of operating expenses to average
net assets (1)(3).......................................................... -- -- -- --
Ratio of operating expenses to average net assets before voluntary expense
reimbursement (3).......................................................... 4.87% 161.07% 274.15% 1,978.36%
Ratio of net investment income to average net assets (1)(3)................. 2.55% 8.69% 0.73% 26.94%
Ratio of net investment loss to average net assets before voluntary expense
reimbursement (3).......................................................... (2.32)% (152.38)% (273.42)% (1,951.42 )%
Portfolio turnover rate (4)................................................. 57% 32% 10% 0%
</TABLE>
- ------------------------
(1) Net investment income and operating expenses are after reimbursement of
certain fees and expenses by PB Investment Advisors, Inc. (See Note 3 to the
financial statements). Had PB Investment Advisors, Inc. not undertaken to
reimburse expenses related to the Portfolios and Funds, the ratios of net
investment income and operating expenses to average net assets would have
been as noted above.
(2) Total return figures are not annualized. Total returns do 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 periods shown.
(3) Annualized for periods less than one year.
(4) Portfolio turnover rates are not annualized.
* Investment operations commenced on May 9, 1997.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
20
<PAGE>
PB SERIES TRUST
FINANCIAL HIGHLIGHTS
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
GROWTH & INCOME CAPITAL GROWTH
PORTFOLIO PORTFOLIO
---------------------- ----------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
6/30/98 12/31/97* 6/30/98 12/31/97*
---------- --------- ---------- ---------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period........................................ $ 10.72 $ 10.00 $ 11.04 $ 10.00
---------- --------- ---------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................................................... 0.02 0.18 -- 0.13
Net realized and unrealized gain on investments............................. 0.79 0.84 1.09 1.13
---------- --------- ---------- ---------
Total from investment operations............................................ 0.81 1.02 1.09 1.26
---------- --------- ---------- ---------
LESS DISTRIBUTIONS FROM:
Net investment income....................................................... -- (0.18) -- (0.13)
Net realized gains.......................................................... -- (0.12) -- (0.09)
---------- --------- ---------- ---------
Total distributions......................................................... -- (0.30) -- (0.22)
---------- --------- ---------- ---------
Net asset value, end of period.............................................. $ 11.53 $ 10.72 $ 12.13 $ 11.04
---------- --------- ---------- ---------
---------- --------- ---------- ---------
Total return (2)............................................................ 7.56% 10.25% 9.84% 12.67%
---------- --------- ---------- ---------
---------- --------- ---------- ---------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period................................................... $328,216 $180,830 $694,065 $816,349
Ratio of operating expenses to average
net assets (1)(3).......................................................... -- -- -- --
Ratio of operating expenses to average net assets before voluntary expense
reimbursement (3).......................................................... 11.82% 30.27% 6.14% 20.00%
Ratio of net investment income to average net assets (1)(3)................. 0.48% 7.93% -- 6.13%
Ratio of net investment loss to average net assets before voluntary expense
reimbursement (3).......................................................... (11.34)% (22.34)% (6.14)% (13.87)%
Portfolio turnover rate (4)................................................. 2% 24% 84% 2%
</TABLE>
- ------------------------
(1) Net investment income and operating expenses are after reimbursement of
certain fees and expenses by PB Investment Advisors, Inc. (See Note 3 to the
financial statements). Had PB Investment Advisors, Inc. not undertaken to
reimburse expenses related to the Portfolios and Funds, the ratios of net
investment income and operating expenses to average net assets would have
been as noted above.
(2) Total return figures are not annualized. Total returns do 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 periods shown.
(3) Annualized for periods less than one year.
(4) Portfolio turnover rates are not annualized.
* Investment operations commenced on May 9, 1997.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
21
<PAGE>
PB SERIES TRUST
FINANCIAL HIGHLIGHTS
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
MAXIMUM HIGH QUALITY
APPRECIATION PORTFOLIO STOCK FUND
---------------------- ------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
6/30/98 12/31/97* 6/30/98 12/31/97*
---------- --------- ----------- -----------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period.................................... $ 11.29 $ 10.00 $ 11.74 $ 10.00
---------- --------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................................................... -- 0.07 0.05 0.08
Net realized and unrealized gain on investments......................... 1.36 1.41 1.07 1.88
---------- --------- ----------- -----------
Total from investment operations 1.36 1.48 1.12 1.96
---------- --------- ----------- -----------
LESS DISTRIBUTIONS FROM:
Net investment income................................................... -- (0.07) -- (0.08)
Net realized gains...................................................... -- (0.12) -- (0.14)
---------- --------- ----------- -----------
Total distributions..................................................... -- (0.19) -- (0.22)
---------- --------- ----------- -----------
Net asset value, end of period.......................................... $ 12.65 $ 11.29 $ 12.86 $ 11.74
---------- --------- ----------- -----------
---------- --------- ----------- -----------
Total return (2)........................................................ 12.06% 14.82% 9.50% 19.72%
---------- --------- ----------- -----------
---------- --------- ----------- -----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period............................................... $492,586 $244,738 $13,217,667 $12,515,064
Ratio of operating expenses to average
net assets (1)(3)...................................................... -- -- 0.90% 0.90%
Ratio of operating expenses to average net assets before voluntary
expense reimbursement (3).............................................. 8.56% 24.59% 1.69% 1.08%
Ratio of net investment income to average net assets (1)(3)............. -- 3.19% 0.74% 1.18%
Ratio of net investment gain/loss to average net assets before voluntary
expense reimbursement (3).............................................. (8.56)% (21.40)% (0.05 )% 1.00%
Portfolio turnover rate (4)............................................. 10% 6% 17% 14%
</TABLE>
- ------------------------
(1) Net investment income and operating expenses are after reimbursement of
certain fees and expenses by PB Investment Advisors, Inc. (See Note 3 to the
financial statements). Had PB Investment Advisors, Inc. not undertaken to
reimburse expenses related to the Portfolios and Funds, the ratios of net
investment income and operating expenses to average net assets would have
been as noted above.
(2) Total return figures are not annualized. Total returns do 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 periods shown.
(3) Annualized for periods less than one year.
(4) Portfolio turnover rates are not annualized.
* Investment operations commenced on May 9, 1997.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
22
<PAGE>
PB SERIES TRUST
FINANCIAL HIGHLIGHTS
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
FIXED INTERNATIONAL
INCOME FUND ACTIVE FUND
---------------------- -----------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
6/30/98 12/31/97* 6/30/98 12/31/97*
---------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period.................................... $ 10.26 $ 10.00 $ 9.60 $ 10.00
---------- ---------- ----------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................................................... 0.26 0.34 0.08 0.07
Net realized and unrealized gain on investments......................... 0.06 0.29 2.13 (0.45)
---------- ---------- ----------- ----------
Total from investment operations........................................ 0.32 0.63 2.21 (0.38)
---------- ---------- ----------- ----------
LESS DISTRIBUTIONS FROM:
Net investment income................................................... -- (0.34) -- (0.02)
Net realized gains...................................................... -- (0.03) -- --
---------- ---------- ----------- ----------
Total distributions..................................................... -- (0.37) -- (0.02)
---------- ---------- ----------- ----------
Net asset value, end of period.......................................... $ 10.58 $ 10.26 $ 11.81 $ 9.60
---------- ---------- ----------- ----------
---------- ---------- ----------- ----------
Total return (2)........................................................ 3.12% 6.30% 22.99% (3.80)%
---------- ---------- ----------- ----------
---------- ---------- ----------- ----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period............................................... $5,531,273 $5,606,687 $11,938,832 $9,804,265
Ratio of operating expenses to average net assets (1)(3)................ 0.90% 0.90% 1.15% 1.15%
Ratio of operating expenses to average net assets before voluntary
expense reimbursement (3).............................................. 3.01% 1.57% 2.92% 1.68%
Ratio of net investment income to average net assets (1)(3)............. 5.10% 5.13% 1.43% 1.04%
Ratio of net investment gain/loss to average net assets before voluntary
expense reimbursement (3).............................................. 2.99% 4.46% (0.34 )% 0.51%
Portfolio turnover rate (4)............................................. 0% 157% 18% 61%
</TABLE>
- ------------------------
(1) Net investment income and operating expenses are after reimbursement of
certain fees and expenses by PB Investment Advisors, Inc. (See Note 3 to the
financial statements). Had PB Investment Advisors, Inc. not undertaken to
reimburse expenses related to the Portfolios and Funds, the ratios of net
investment income and operating expenses to average net assets would have
been as noted above.
(2) Total return figures are not annualized. Total returns do 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 periods shown.
(3) Annualized for periods less than one year.
(4) Portfolio turnover rates are not annualized.
* Investment operations commenced on May 9, 1997.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
23
<PAGE>
PB SERIES TRUST
FINANCIAL HIGHLIGHTS
(For a share of beneficial interest outstanding throughout each period)
<TABLE>
<CAPTION>
MONEY
MARKET FUND
----------------------
SIX MONTHS PERIOD
ENDED ENDED
6/30/98 12/31/97*
---------- ----------
<S> <C> <C>
(UNAUDITED)
Net asset value, beginning of period...................................................... $ 1.00 $ 1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income..................................................................... 0.02 0.03
Net realized and unrealized gain on investments........................................... -- --
---------- ----------
Total from investment operations.......................................................... 0.02 0.03
---------- ----------
LESS DISTRIBUTIONS FROM:
Net investment income..................................................................... (0.02 ) (0.03)
Net realized gains........................................................................ -- --
---------- ----------
Total distributions....................................................................... (0.02 ) (0.03)
---------- ----------
Net asset value, end of period............................................................ $ 1.00 $ 1.00
---------- ----------
---------- ----------
Total return (2).......................................................................... 2.51% 3.31%
---------- ----------
---------- ----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period................................................................. $2,052,555 $2,361,341
Ratio of operating expenses to average net assets (1)(3).................................. 0.65% 0.65%
Ratio of operating expenses to average net assets before voluntary
expense reimbursement (3)................................................................ 6.50% 2.67%
Ratio of net investment income to average net assets (1)(3)............................... 5.01% 5.03%
Ratio of net investment gain/loss to average net assets before voluntary expense
reimbursement (3)........................................................................ (0.84 )% 3.01%
Portfolio turnover rate (4)............................................................... N/A N/A
</TABLE>
- ------------------------
(1) Net investment income and operating expenses are after reimbursement of
certain fees and expenses by PB Investment Advisors, Inc. (See Note 3 to the
financial statements). Had PB Investment Advisors, Inc. not undertaken to
reimburse expenses related to the Portfolios and Funds, the ratios of net
investment income and operating expenses to average net assets would have
been as noted above.
(2) Total return figures are not annualized. Total returns do 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 periods shown.
(3) Annualized for periods less than one year.
(4) Portfolio turnover rates are not annualized.
* Investment operations commenced on May 9, 1997.
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
24
<PAGE>
PB SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
NOTE 1 -- ORGANIZATION
PB Series Trust (the "Trust"), formerly Providian Series 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 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 "Portfolios") and four underlying funds (High
Quality Stock Fund, Fixed Income Fund, International Active Fund, and Money
Market Fund-collectively the "Funds").
The Portfolios seek to achieve their investment objectives by investing within
specific ranges among the Funds. Each Fund has differing investment objectives
and policies. Shares of the Portfolios are offered to separate accounts of
insurance companies to fund variable annuity contracts. The shares of the Funds
are purchased by the Portfolios. The Portfolios are offered to qualified plans
and separate accounts of insurance companies to fund variable annuity contracts.
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, and
purchased 1,000,000 shares of the High Quality Stock Fund and International
Active Fund, and 500,000 shares of the Fixed Income Fund. The Separate Account
is a separate account of Providian Life and Health Insurance Company, an
indirect, wholly owned subsidiary of Providian Corporation which, on June 10,
1997, became a direct, wholly owned subsidiary of AEGON International N.V., a
direct, wholly owned subsidiary of AEGON N.V., an international insurance
organization headquartered in The Hague, The Netherlands. Effective October 15,
1997, Providian Corporation's name was changed to Commonwealth General
Corporation ("CGC"). Effective December 31, 1997, ownership of CGC was
transferred to AEGON USA, Inc., an indirect, wholly owned subsidiary of AEGON
N.V.
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.
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 asset value is determined. Foreign
prices are furnished by quotation services expressed in the local currency's
value and translated into U.S. dollars at the current rate of exchange.
25
<PAGE>
NOTE 2 (CONTINUED)
REPURCHASE AGREEMENTS -- The Trust may enter into repurchase agreements with
institutions that the Trust's investment advisor, PB Investment Advisors, Inc.,
(formerly 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
102 percent of the principal amount, including interest, of the repurchase
agreement. 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.
The Trust may enter into a Joint Repurchase Agreement whereby its uninvested
cash balance is deposited into a joint cash account to be used to invest in one
or more repurchase agreements with government securities dealers recognized by
the Federal Reserve Board and/or member banks of the Federal Reserve System. The
value and face amount of the Joint Repurchase Agreement are allocated to the
Funds based on their pro-rata interest.
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, which is also
used for tax purposes.
INVESTMENT INCOME -- Dividend income is recorded on the ex-dividend date, except
that certain dividends from foreign securities are recorded as soon as the Fund
is informed of the ex-dividend date. Interest income is accrued as earned.
Premiums and discounts (including original issue discounts) on debt securities
are amortized. Investment income is recorded net of foreign taxes withheld if
recovery of such taxes is uncertain.
FOREIGN CURRENCY TRANSLATIONS -- The accounting 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 effects 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 currency exchange gains
and losses arise from changes in the value of receivables and payables due to
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 (such risk is limited to the unrealized
gain, if any) or if the value of the currency changes unfavorably. The
International Active Fund may enter into these contracts 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 the 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 Portfolio or 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 based on relative net
assets of each Portfolio and Fund. Costs related to the organization and
registration of the
26
<PAGE>
NOTE 2 (CONTINUED)
Trust have been funded by CGC and its subsidiaries. The Trust will not reimburse
CGC for these organizational costs.
ESTIMATES -- The preparation of the financial statements in conformity with
generally accepted accounting principles requires 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.
DISTRIBUTIONS TO SHAREHOLDERS -- Each of the Portfolios and 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 reinvested in the 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 and "post October 31 losses." Distributions are recorded on the
ex-dividend date.
FEDERAL INCOME TAXES -- Each Portfolio and Fund is treated as a separate entity
for federal tax purposes. Each Portfolio and 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 Portfolio and 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 Portfolios and Funds will
not be subject to a federal excise tax.
NOTE 3 -- AGREEMENTS AND FEES
PB Investment Advisors, Inc. (the "Advisor"), a wholly owned subsidiary of CGC,
which is a wholly owned indirect subsidiary of AEGON N.V., has been retained
under an Investment Advisory Agreement (the "Agreement") with the Trust, to
supervise the management and investment program of the Trust. The Advisor
manages the affairs of the Trust subject to the supervision of the Board of
Trustees. The Advisor does not receive an investment management fee for the
advisory and asset allocation services it provides to the Portfolios.
As full compensation for its services under the Agreement, each Fund will pay
the Advisor a monthly fee at the following annual rates based on the average
daily net assets of each Fund:
<TABLE>
<S> <C>
High Quality Stock Fund 0.65%
Fixed Income Fund 0.65%
International Active Fund 0.90%
Money Market Fund 0.40%
</TABLE>
Under the Agreement, the Advisor has agreed to waive and absorb all operating
expenses of each Portfolio and to limit the operating expenses of each Fund so
that the ratio of expenses (excluding advisory fees) to net assets on an annual
basis does not exceed 0.25%. Expenses in excess of such amount will be assumed
by the Advisor until the earlier of the end of three years after commencement of
operations or the termination by the Trustees but not the Advisor of the
Agreement. For the six months ended June 30, 1998, the Advisor agreed to
reimburse the Trust $343,139 for expenses in excess of the voluntary expense
limitations. As of June 30, 1998, $72,544 was owed to the Trust by the Advisor.
The Advisor has entered into a Sub-Advisory Agreement with Atlanta Capital
Management Company, L.L.C. ("Atlanta Capital"), wherein Atlanta Capital will
serve as sub-advisor to the Portfolios. Subject to the supervision and direction
of the Board of Trustees, Atlanta Capital will determine how each Portfolio's
assets will be invested in the Funds. Atlanta Capital also serves as sub-advisor
of the High Quality Stock Fund and
27
<PAGE>
NOTE 3 (CONTINUED)
the Fixed Income Fund. As compensation for its services, with respect to the
High Quality Stock Fund and the Fixed Income Fund, the Advisor pays Atlanta
Capital 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.
The Advisor has entered into a Sub-Advisory Agreement with Blairlogie Capital
Management ("Blairlogie"), wherein Blairlogie will serve as sub-advisor to the
International Active Fund. As compensation for its services, the Advisor pays
Blairlogie a fee equal to 0.65% annually on assets up to $50 million, and 0.50%
annually on assets above $50 million.
The Advisor has entered into a Sub-Advisory Agreement with Federated Investment
Counseling ("Federated"), wherein Federated will serve as sub-advisor to the
Money Market Fund. As compensation for its services, the Advisor pays Federated
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, Advisor
or Sub-Advisors receives $1,500 for each Trustees' meeting in which he
participates.
NOTE 4 -- INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities, for the period ended June 30, 1998 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...................... $ 401,412 $ -- $ 159,910 $ --
Income Oriented Portfolio....... 5,459 -- 944 --
Growth & Income Portfolio....... 121,510 -- 4,466 --
Capital Growth Portfolio........ 477,685 -- 547,268 --
Maximum Appreciation
Portfolio...................... 247,943 -- 36,322 --
High Quality Stock Fund......... 2,286,068 -- 2,224,811 --
Fixed Income Fund............... -- -- -- --
International Active Fund....... 2,250,977 -- 1,848,730 --
Money Market Fund............... -- -- -- --
</TABLE>
Gross unrealized appreciation and depreciation at June 30, 1998, based on the
identified cost for income tax purposes, is as follows:
<TABLE>
<CAPTION>
Net
Gross Gross Unrealized
Identified Unrealized Unrealized Appreciation
Cost Appreciation (Depreciation) (Depreciation)
<S> <C> <C> <C> <C>
----------------------------------------------------
Capital Preservation
Portfolio.................. $ 517,796 $ 5,776 $ -- $ 5,776
Income Oriented Portfolio... 13,706 462 -- 462
Growth & Income Portfolio... 310,481 17,734 -- 17,734
Capital Growth Portfolio.... 654,249 39,811 -- 39,811
Maximum Appreciation
Portfolio.................. 454,986 37,601 -- 37,601
High Quality Stock Fund..... 11,006,851 2,613,906 (404,246) 2,209,660
Fixed Income Fund........... 5,292,770 158,918 (588) 158,330
International Active Fund... 9,780,891 2,649,844 (569,647) 2,080,197
Money Market Fund........... 2,051,000 -- -- --
</TABLE>
28
<PAGE>
NOTE 5 -- SHAREHOLDER TRANSACTIONS
Transactions in shares and dollars were as follows for the six months ended June
30, 1998:
<TABLE>
<CAPTION>
CAPITAL PRESERVATION INCOME ORIENTED
PORTFOLIO PORTFOLIO
SHARES DOLLARS SHARES DOLLARS
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Shares sold............................... 78,209 $ 802,733 580 $ 6,422
Shares issued to shareholders in
reinvestment of dividends................ -- -- -- --
Shares redeemed........................... (31,030) (321,941) (103) (1,145)
--------- --------- --------- ---------
Net increase.............................. 47,179 $ 480,792 477 $ 5,277
--------- --------- --------- ---------
--------- --------- --------- ---------
<CAPTION>
GROWTH & INCOME CAPITAL GROWTH
PORTFOLIO PORTFOLIO
SHARES DOLLARS SHARES DOLLARS
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Shares sold............................... 12,081 $ 135,011 32,822 $ 385,237
Shares issued to shareholders in
reinvestment of dividends................ -- -- -- --
Shares redeemed........................... (492) (5,621) (49,537) (548,675)
--------- --------- --------- ---------
Net increase.............................. 11,589 $ 129,390 (16,715) $(163,438)
--------- --------- --------- ---------
--------- --------- --------- ---------
<CAPTION>
MAXIMUM APPRECIATION HIGH QUALITY STOCK
PORTFOLIO FUND
SHARES DOLLARS SHARES DOLLARS
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Shares sold............................... 20,277 $ 247,943 38,828 $ 485,299
Shares issued to shareholders in
reinvestment of dividends................ -- -- -- --
Shares redeemed........................... (3,020) (37,348) (76,579) (926,172)
--------- --------- --------- ---------
Net increase.............................. 17,257 $ 210,595 (37,751) $(440,873)
--------- --------- --------- ---------
--------- --------- --------- ---------
<CAPTION>
INTERNATIONAL ACTIVE
FIXED INCOME FUND FUND
SHARES DOLLARS SHARES DOLLARS
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Shares sold............................... 53,586 $ 554,892 11,090 $ 121,325
Shares issued to shareholders in
reinvestment of dividends................ -- -- -- --
Shares redeemed........................... (77,267) (798,732) (21,579) (217,991)
--------- --------- --------- ---------
Net increase.............................. (23,681) $(243,840) (10,489) $ (96,666)
--------- --------- --------- ---------
--------- --------- --------- ---------
<CAPTION>
MONEY MARKET FUND
SHARES DOLLARS
--------- ---------
<S> <C> <C> <C> <C>
Shares sold............................... 540,125 $ 540,125
Shares issued to shareholders in
reinvestment of dividends................ 52,720 52,720
Shares redeemed........................... (901,631) (901,631)
--------- ---------
Net increase.............................. (308,786) $(308,786)
--------- ---------
--------- ---------
</TABLE>
29
<PAGE>
NOTE 6 -- FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 1998, the outstanding forward exchange currency contracts, which
contractually obligate the Trust to deliver currencies at a specified date, were
as follows:
INTERNATIONAL ACTIVE FUND
<TABLE>
<CAPTION>
U.S. DOLLAR
COST ON U.S. DOLLAR UNREALIZED
CURRENCY CURRENCY SETTLEMENT ORIGINATION CURRENT APPRECIATION
PURCHASED SOLD DATE DATE VALUE (DEPRECIATION)
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GBP USD 7/02/1998 $ 4,301 $ 4,314 $ 13
GBP USD 7/16/1998 $ 833,425 $ 833,250 $ (175)
USD DEM 7/16/1998 $1,548,244 $1,549,873 $ (1,629)
</TABLE>
GBP - Great British Pound
DEM - Deutsche Mark
USD - United States Dollar
30
<PAGE>
PB 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 W. Buese, TRUSTEE *
Michael G. Ayers, CHIEF FINANCIAL OFFICER
R. Michael Slaven, SECRETARY
Stephen L. Zeitz, TREASURER
Michael G. Herp, VICE PRESIDENT
* INTERESTED TRUSTEE
------------------------
Ernst & Young LLP, INDEPENDENT AUDITORS
Jorden Burt Boros Cicchetti Berenson & Johnson LLP, LEGAL COUNSEL
PB 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.
