As filed with the Securities and Exchange Commission on December 10, 1996.
1933 Act Registration No. 33-12
1940 Act File No. 811-4401
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. -----
Post-Effective Amendment No. 34 x
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 36 x
(Check appropriate box or boxes)
---------------------
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
(Exact name of registrant as specified in charter)
215 NORTH MAIN STREET
WEST BEND, WISCONSIN 53095
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (414) 334-5521
ROBERT J. TUSZYNSKI
President and Director
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
215 NORTH MAIN STREET
WEST BEND, WISCONSIN 53095
(Name and Address of Agent for Service)
Copy to:
CONRAD G. GOODKIND, ESQ.
Quarles & Brady
411 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
It is proposed that this filing will become effective
X immediately upon filing pursuant to paragraph (b)
on (date) pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)(1)
on (date) pursuant to paragraph (a)(1)
75 days after filing pursuant to paragraph (a)(2) of rule
485.
If appropriate, check the following:
this post-effective amendment designates a new
effective date for a previously filed post-effective
amendment
Registrant has elected to register an indefinite number of shares of Common
Stock, $0.001 par value, pursuant to Rule 24f-2 under The Investment Company Act
of 1940. The Registrant's Rule 24f-2 Notice for the year ended December 31,
1995 was filed on February 27, 1996.
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
FORM N-1A
CROSS-REFERENCE SHEET
PSE TECH 100 INDEX PORTFOLIO
Form N-1A
Item No. Prospectus Heading
- --------- ------------------
PART A
1. Cover Page......................... Cover Page
2. Synopsis........................... Questions and Answers; Expenses
3. Condensed Financial Information.... Financial Highlights
4. General Description of
Registrant........................ Questions and
................................... Answers; Investment Objectives and
Policies; Description of Shares
5. Management of the Fund............. Management;
................................... Determination of Net Asset Value
Per Share; Other Information
5A. Management's Discussion of Fund
Performance....................... NA
6. Capital Stock and Other
Securities........................ Redemptions; Dividends, Capital
Gains Distributions and Reinvest-
ments; Tax Status; Description of
Shares
7. Purchase of Securities Being
Offered........................... Purchase of Shares; Determination
of Net Asset Value Per Share;
Distribution Expenses
8. Redemption or Repurchase........... Redemptions
9. Pending Legal Proceedings.......... None
PART B
10. Cover Page......................... Cover Page
11. Table of Contents.................. Table of Contents
12. General Information and History.... N/A
13. Investment Objectives and Policies. Investment Program; Investment
Restrictions
14. Management of the Fund............. Management ofPrincipal
................................... Preservation
15. Control Persons and Principal
Holders of Securities............ Control Persons and Principal
Holders of Securities
16. Investment Advisory and
Other Services................... Management of Principal
Preservation
17. Brokerage Allocation and
Brokerage........................ Portfolio Transactions and
Brokerage
18. Capital Stock and Other
Securities....................... Determination of Net Asset Value
Per Share; Tax Status
19. Purchase, Redemption and Pricing
of Securities Being Offered...... Determination of Net Asset Value
Per Share; Purchase of Shares;
Distribution Expenses
20. Tax Status......................... Tax Status
21. Underwriters....................... Purchase of Shares; Distribution
Expenses; Management of Principal
Preservation
22. Calculation of Performance Data.... Performance Information; Portfolio
Ratings
23. Financial Statements............... Financial Statements
PART A - INFORMATION REQUIRED IN A PROSPECTUS
In partial response to Part A of Form N-1A, the Registrant hereby
incorporates its current Prospectus, dated June 10, 1996, which is included in
Post-Effective Amendment No. 33 to its Registration Statement on Form N-1A
(Registration No. 33-12), as filed with the Securities and Exchange Commission
on March 27, 1996. In further response to Item 3 of Form N-1A, the Registrant
states as follows:
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
PSE TECH 100 INDEX PORTFOLIO
SUPPLEMENT DATED DECEMBER 10, 1996 TO THE PROSPECTUS DATED JUNE 10, 1996 OF THE
PSE TECH 100 INDEX PORTFOLIO (THE "PORTFOLIO"), A SERIES OF PRINCIPAL
PRESERVATION PORTFOLIOS, INC. ("PRINCIPAL PRESERVATION").
Page 5 of the Portfolio's Prospectus, immediately prior to the section
captioned "Investment Objectives and Policies," is supplemented by adding the
following:
FINANCIAL HIGHLIGHTS
This table presents certain information relating to a share of the
Portfolio outstanding from the period beginning June 10, 1996 (commencement of
operations) and ending November 30, 1996. The Financial Highlights, which have
not been audited, should be read in conjunction with the Portfolio's unaudited
financial statements, and notes thereto, which are contained in the Statement of
Additional Information, dated June 10, 1996, as supplemented on December 10,
1996. The Statement of Additional Information, as supplemented, may be obtained
without charge, as indicated on the cover page of this Prospectus. Additional
information about the performance of the Portfolio will be included in Principal
Preservation's annual report to shareholders, which also will be made available
upon request without charge. The performance of the Portfolio reflected in the
Financial Highlights is not necessarily indicative of future results.
PSE TECH 100 INDEX PORTFOLIO
----------------------------
For the period from
June 10, 1996
(commencement
of operations) to
November 30, 1996
(Unaudited)
------------------
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03
Net realized and unrealized gains (losses)
on investments 1.32
------
TOTAL FROM INVESTMENT OPERATIONS 1.35
------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.02)
------
TOTAL DISTRIBUTIONS (0.02)
------
NET ASSET VALUE, END OF PERIOD $11.33
------
------
TOTAL RETURN**<F20> 13.5%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (to nearest thousand) $5,802
Ratio of net expenses to average net assets 0.0%*<F19>+<F21>
Ratio of net investment income to average
net assets 0.7%*<F19>
Portfolio turnover rate 11.7%
Average commission rate paid $0.052
*<F19>Annualized.
**<F20>The Fund's sales charge is not reflected in total return as set forth in
the table.
+<F21>Reflects a voluntary reimbursement of fund expenses of 4.7% in 1996.
NOTE: THIS SUPPLEMENT MUST ACCOMPANY THE DELIVERY OF ALL PROSPECTUSES ON OR
AFTER DECEMBER 10, 1996.
PART B - INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
In partial response to Part B of Form N-1A (Item 10 through Item 23), the
Registrant incorporates by reference its current Statement of Additional
Information dated June 10, 1996, which is included in Post-Effective Amendment
No. 33 to its Registration Statement on Form N-1A (Registration No. 33-12), as
filed with the Securities and Exchange Commission on March 27, 1996. In further
response to Item 23 of Form N-1A, the Registrant states as follows:
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
PSE TECH 100 INDEX PORTFOLIO
SUPPLEMENT DATED DECEMBER 10, 1996 TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED JUNE 10, 1996 OF THE PSE TECH 100 INDEX PORTFOLIO (THE "PORTFOLIO"), A
SERIES OF PRINCIPAL PRESERVATION PORTFOLIOS, INC. ("PRINCIPAL PRESERVATION").
Page 24 of the Portfolio's Statement of Additional Information,
immediately prior to the section captioned "Description of Ratings of Certain
Securities," is supplemented by adding the following:
FINANCIAL STATEMENTS
The following pages present unaudited financial statements of the
Portfolio as of November 30, 1996 and for the period from June 10, 1996
(commencement of operations) through November 30, 1996. In the opinion of
management of the Portfolio, all adjustments consisting only of normal recurring
adjustments which are necessary for a fair presentation of the results of
operations for the interim period ended November 30, 1996, are reflected.
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
BALANCE SHEET
NOVEMBER 30, 1996 (UNAUDITED)
PSE TECH 100
INDEX
------------
ASSETS:
Investments:
Long-term investments
in securities, (See
Schedule of Investments) $5,855,932
Short-term investments 460,132
-----------
Total investments 6,316,064
Cash 815
Receivables:
Capital shares sold 44,538
Dividends and interest 2,838
Investments sold 102,105
Due from Adviser 17,720
Margin variation 1,000
-----------
Total receivables 168,201
Deferred Organization Expense 15,290
Other assets 292
-----------
Total assets $6,500,662
-----------
-----------
LIABILITIES:
Payables:
Expenses 70,400
Investments purchased 379,948
Payable for Futures 248,600
Other liabilities --
-----------
Total liabilities 698,948
-----------
NET ASSETS:
Capital stock 4,955,997
Undistributed (overdistributed)
net investment income 7,080
Undistributed net realized gains
(losses) on investments 35,336
Net unrealized appreciation
on investments 803,301
-----------
Total net assets 5,801,714
-----------
Total liabilities
and net assets $6,500,662
-----------
-----------
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE $11.33
-----------
-----------
MAXIMUM OFFERING PRICE
PER SHARE $11.86
-----------
-----------
The accompanying notes to financial statements are an integral part of this
statement.
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
STATEMENT OF OPERATIONS
FOR THE
PERIOD FROM
JUNE 10, 1996
(COMMENCEMENT
OF OPERATIONS) TO
NOVEMBER 30, 1996
(UNAUDITED)
PSE TECH 100
INDEX
--------------
INVESTMENT INCOME:
Dividends $6,797
Interest 6,751
----------
Total investment
income 13,548
----------
EXPENSES:
Investment advisory fees 8,663
Custodian fees 6,960
Transfer agent fees 8,700
Broker service fees 4,229
Professional fees 25,230
Registration 13,050
Communication 13,572
Director fees 2,169
Pricing of investments 3,480
Deferred organization expense 1,611
Other 1,740
----------
Total expenses 89,404
Less expenses absorbed
by advisor (89,404)
----------
Net expenses 0
----------
NET INVESTMENT INCOME 13,548
----------
NET REALIZED GAINS
ON INVESTMENTS 35,336
NET UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS 803,301
----------
Net gains
on investments 838,637
----------
NET INCREASE
IN NET ASSETS RESULTING
FROM OPERATIONS $852,185
----------
----------
The accompanying notes to financial statements are an integral part of this
statement.
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE
PERIOD FROM
JUNE 10, 1996
(COMMENCEMENT
OF OPERATIONS) TO
NOVEMBER 30, 1996
(UNAUDITED)
PSE TECH 100
INDEX
--------------
OPERATIONS:
Net investment income $13,548
Net realized gains
on investments 35,336
Change in unrealized
appreciation (depreciation) on
investments for the year 803,301
------------
Net increase
in net assets resulting
from operations 852,185
------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
($0.0152 share) (6,468)
------------
Total distributions (6,468)
------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 4,987,634
Net asset value of shares
issued in distributions 6,194
Cost of shares redeemed (37,831)
------------
Net increase (decrease)
in net assets from
capital share
transactions 4,955,997
------------
Total increase
(decrease) 5,801,714
NET ASSETS:
Balance at beginning of year --
------------
Balance at end of year $5,801,714
------------
------------
The accompanying notes to financial statements are an integral part of this
statement.
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
PSE TECH 100 INDEX PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1996 (UNAUDITED)
1.SIGNIFICANT ACCOUNTING POLICIES --
Principal Preservation Portfolios, Inc. (the "Fund"), registered under the
Investment Company Act of 1940 as an open-end management investment company, is
a series company with eight portfolios: Tax-Exempt Portfolio, Government
Portfolio, S&P 100 Plus Portfolio, Dividend Achievers Portfolio, Select Value
Portfolio, PSE Tech 100 Index Portfolio, Wisconsin Tax-Exempt Portfolio and the
Cash Reserve Portfolio. This interim report contains the information of
the PSE Tech 100 Index Portfolio only. The assets and liabilities of each
portfolio are segregated and a shareholder's interest is limited to the
portfolio in which the shareholder owns shares.
The following is a summary of the significant accounting policies of the Fund.
(a)Long-Term Securities and Short-Term Investments
Long-term taxable fixed income securities are valued at market using
quotations provided by an independent pricing service.
Common and preferred stocks are valued at the last sales price reported by
the New York Stock Exchange, other appropriate exchanges, or NASDAQ, on the date
of valuation. Common and preferred stocks not traded on that date are valued at
the last bid price.
Short-term investments are valued at amortized cost, which approximates
market value.
Investment transactions are recorded on the trade date.
(b)Option Transactions
For hedging purposes, the PSE Tech 100 Index Portfolio may buy and
sell put and call options, write covered call options on portfolio securities,
write cash-secured puts, and write call options that are not covered for
cross-hedging purposes. The risk in writing a call option is that a
fund gives up the opportunity for profit if the market price of the security
increases. The risk in writing a put option is that a fund may incur a loss
if the market price of the security decreases and the option is exercised.
The risk in buying an option is that a fund pays a premium whether or not the
option is exercised. A fund also has the additional risk of not being able to
enter into a closing transaction if a liquid secondary market does not exist.
Option contracts are valued daily, and unrealized appreciation or
depreciation is recorded. A fund will realize a gain or loss upon expiration or
closing of the option transaction. When an option is exercised, the proceeds on
sales for a written call option, the purchase cost for a written put option, or
the cost of a security for a purchased put or call option is adjusted by the
amount of premium received or paid.
(c)Futures Contracts
The PSE Tech 100 Index Portfolio may utilize futures contracts to a limited
extent. The primary risks associated with the use of futures contracts include
an imperfect correlation between the change in market value of the securities
held by the Fund and the prices of futures contracts and the possibility of an
illiquid market. Futures contracts are based upon their quoted daily settlement
prices. Changes in initial settlement value are accounted for as unrealized
appreciation (depreciation) until the contracts are terminated at which time
realized gains and losses are recognized.
(d)Net Realized Gains and Losses and Investment Income
Net realized gains and losses on securities sales (including options) are
computed on the identified cost basis. Dividend income is recorded on the ex-
dividend date. Interest income is recorded on an accrual basis. Total net
realized gains (losses) on investments for the period ended November 30, 1996,
were comprised of the following:
PSE TECH 100
INDEX
------------
Net realized gains
on investments $61,075
Net realized (losses) on Futures (25,739)
----------
Total net realized gains
on investments $35,336
----------
----------
(e)Federal Income Taxes
Provision has not been made for Federal income taxes since each portfolio
has elected to be taxed as a "regulated investment company" and intends to
distribute substantially all income to its shareholders and otherwise comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies.
(f)Expenses
Fund expenses associated with a specific portfolio are charged to that
portfolio as they are incurred. Common expenses incurred by the Fund are
allocated, as incurred, between the portfolios based upon the ratio of the net
assets of each portfolio to the combined net assets of the Fund.
(g)Distributions to Shareholders
Dividends to shareholders are recorded on the ex-dividend date.
(h)Deferred Organization Costs
Costs incurred with the organization, initial registration and public
offering of shares aggregating $16,902 for the PSE Tech 100 Index have been
paid by the Fund and are being amortized over a five year period.
2.INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH RELATED PARTIES --
On January 31, 1996, the Fund assigned its Investment Advisory Agreements (the
"Agreements") with B.C. Ziegler and Company ("Ziegler"), (with whom certain
officers and directors of the Fund are affiliated) to Ziegler Asset Management,
Inc., ("ZAMI") to serve as Investment Advisor (the "Advisor"). Both Ziegler and
ZAMI are wholly owned subsidiaries of The Ziegler Companies, Inc. and therefore
the Assignment did not constitute a change in control. Pursuant to the
Agreement, ZAMI manages the PSE Tech 100 Index Portfolio.
Under its Agreement, the PSE Tech 100 Index Portfolio pays ZAMI a monthly fee
based upon the PSE Tech 100 average daily net assets at the rate of 0.50% of the
first $50,000,000 of average daily net assets, 0.30% of the next $200,000,000 of
average daily net assets and 0.25% of the next $250,000,000 of average daily net
assets and 0.20% of average daily net assets in excess of $500 million.
The Agreements provide that the Advisor's fee will be reduced or the Advisor
will reimburse each Portfolio, by an amount necessary to prevent the total
expenses of each Portfolio from exceeding limits applicable to each Portfolio in
any state in which its shares are qualified for sale.
For the period ended November 30, 1996, the Portfolio exceeded the statutory
expense limitation. However, the Advisor voluntarily reimbursed the PSE Tech
100 Index Portfolio $87,793. The Advisor is not obligated to continue the
voluntary reimbursement in the future.
On May 17, 1991, the Fund's shareholders approved a Distribution Agreement
under Rule 12b-1. According to this agreement the Fund pays a distribution fee
of up to 0.25% to the distributor which is passed through to the broker/dealer
as a service fee.
Ziegler has an Accounting and Pricing Agreement with the Fund to perform
accounting and pricing services, a Depository Agreement with the Fund to be the
depository for all investment securities and cash, and a Transfer and Dividend
Disbursing and Shareholder Services Agency Agreement with the Fund to provide
Transfer Agent Services. In addition, each Portfolio pays Ziegler commissions on
sales of Portfolio shares. The transfer agent fees, commissions, accounting and
pricing fees and depository fees paid to Ziegler for the period ended November
30, 1996, were as follows for the Portfolio:
<TABLE>
<CAPTION>
ACCOUNTING
TRANSFER COMMISSIONS AND PRICING DEPOSITORY
AGENT FEES ON PORTFOLIO SHARES FEES FEES
----------- ------------------- ------------ ----------
<S> <C> <C> <C> <C>
PSE Tech 100 Index Portfolio $8,700 100 9,048 6,960
</TABLE>
3. INVESTMENT TRANSACTIONS --
Purchases and proceeds from sales of securities, excluding short-term
investments, for the period ended November 30, 1996 aggregated:
PURCHASES PROCEEDS FROM SALES
----------- -------------------
PSE Tech 100 Index Portfolio 5,269,788 423,329
Net unrealized appreciation on investments as of November 30, 1996, included:
PSE TECH 100
INDEX
------------
Gross unrealized appreciation $897,078
Gross unrealized (depreciation) (93,777)
------------
Net unrealized appreciation $803,301
------------
------------
4. LINE OF CREDIT --
The Fund has an available line of credit of $3,000,000. However, each
Portfolio's borrowings, by investment restriction, cannot exceed 10% of the
total net assets not including the borrowings. Interest expense incurred in
connection with such borrowings was not material during the year. Borrowings
under this arrangement bear interest approximating the then current Prime Rate.
All borrowings under this line of credit are guaranteed by Ziegler. Each
Portfolio's policies allow borrowings for temporary or emergency purposes.
5. CAPITAL SHARE TRANSACTIONS --
(a) The Fund has authorized capital of 1,000,000,000 shares at $.001 par
value per share. The Fund's shares are divided into the separate portfolios.
Fifty million of the Fund's authorized shares are allocated to the
PSE Tech 100 Index Portfolio.
The Cash Reserve Portfolio has been allotted 400,000,000 shares 200 million
shares of which are designated as Class X Common Stock (the Retail Class) and
200 million shares of which are designated Class Y Common Stock (the
Institutional Class). The Tax-Exempt, Government, S&P 100 Plus, Dividend
Achievers, Wisconsin Tax-Exempt and Select Value Portfolios have each been
allocated 50,000,000 shares. The remaining 250,000,000 Fund shares may be
allocated to any of the above portfolios, the Cash Reserve Portfolio, the
Wisconsin Tax-Exempt Portfolio or to new portfolios as determined by the Board
of Directors. The shares of each Portfolio have equal rights and privileges
with all other shares of that Portfolio.
(b)Capital share activity during the period ended November 30, 1996,
were as follows:
PSE TECH 100
INDEX*<F22>
------------
SHARES OUTSTANDING
AT DECEMBER 31, 1995 ---
Shares issued 515,349
Shares issued in distributions 611
Shares redeemed (3,807)
---------
SHARES OUTSTANDING
AT NOVEMBER 30, 1996 512,153
---------
---------
*<F22>Amounts shown for the PSE Tech 100 Index Portfolio are the result of the
Fund's operations from its commencement of operations on June 10, 1996.
(c) The PSE Tech 100 Index Portfolio's maximum offering price per share is
computed based on a maximum sales charge of 4.5% of the offering price or 4.71%
of the net asset value. For the purpose of this computation, the price per
share is derived from multiplying the net asset value and redemption price
per share by 100 and then dividing the product by 95.5.
6.FUTURES CONTRACTS WRITTEN --
An analysis of the futures contracts written for the period from
June 10, 1996 (commencement of operations) through November 30, 1996
for the PSE Tech 100 Index Portfolio was as follows:
AGGREGATE FACE
NUMBER OF CONTRACTS VALUE OF CONTRACTS
------------------- ------------------
PSE TECH 100 INDEX PORTFOLIO:
Outstanding at June 10, 1996
(commencement of operations) 0 $0
Contracts opened 6 639
Contracts closed (4) (433)
---- -------
Outstanding at November 30, 1996 2 $206
---- -------
---- -------
The number of financial futures contracts and the gross unrealized appreciation,
in thousands, as of November 30, 1996, for the Portfolio was as
follows:
UNREALIZED
NUMBER OF CONTRACTS APPRECIATION
------------------- ------------
PSE TECH 100 INDEX PORTFOLIO:
PSE Technology 100 Index Futures
Contract expiration date 12/96 2 $42
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
PSE TECH 100 INDEX PORTFOLIO
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1996 (UNAUDITED)
NUMBER MARKET
OF SHARES VALUE
OR PAR VALUE
------------ --------
COMMON STOCKS -- 97.1%
BIOTECHNOLOGY -- 5.4%
*<F26>+<F27>Amgen, Inc. 1,450 $88,269
*<F26>+<F27>Biogen, Inc. 1,450 55,462
*<F26> Centocor, Inc. 1,450 40,056
*<F26>+<F27>Chiron Corporation 1,450 28,094
*<F26> Genentech, Inc. 1,450 78,481
*<F26> Immunex Corporation 1,450 19,575
*<F26> Xoma Corporation 1,450 5,709
----------
315,646
----------
CAD/CAM -- 2.0%
+<F27> Autodesk, Inc. 1,450 40,600
*<F26> Evans & Sutherland Computer
Corporation 1,450 37,337
*<F26> Intergraph Corporation 1,450 13,231
*<F26> Mentor Graphics Corporation 1,450 14,137
*<F26> QMS, Inc. 1,450 8,519
----------
113,824
----------
DATA COMMUNICATIONS -- 13.7%
*<F26> 3Com Corporation 1,450 108,931
*<F26>+<F27>Adaptec, Inc. 1,450 54,012
*<F26>+<F27>ADC Telecommunications, Inc. 1,450 52,562
*<F26> Bay Networks, Inc. 1,450 38,787
*<F26> Cabletron Systems, Inc. 1,450 58,544
*<F26> Cisco Systems, Inc. 1,450 98,419
*<F26> DSCCommunications Corporation 1,450 26,100
Harris Corporation 1,450 99,325
*<F26> Novellus Systems, Inc. 1,450 83,375
*<F26> Octel Communications Corporation 1,450 26,100
Scientific - Atlanta, Inc. 1,450 22,475
*<F26> Symbol Technologies, Inc. 1,450 67,606
*<F26> Tellabs, Inc. 1,450 57,637
----------
793,873
----------
DATA STORAGE AND PROCESSING -- 4.9%
*<F26>+<F27>Applied Magnetics Corporation 1,450 39,694
*<F26> AST Research, Inc. 1,450 6,434
*<F26>+<F27>Exabyte Corporation 1,450 21,025
*<F26> Komag, Incorporated 1,450 46,762
*<F26> Quantum Corporation 1,450 38,787
*<F26> Seagate Technology, Inc. 1,450 57,275
*<F26> Storage Technology Corporation 1,450 72,319
----------
282,296
----------
ELECTRONIC EQUIPMENT -- 1.5%
AMP Incorporated 1,450 55,462
Sensormatic Electronics Corporation 1,450 29,000
----------
84,462
----------
INFORMATION PROCESSING -- 5.8%
*<F26>+<F27>America Online, Inc. 1,450 51,294
Automatic Data Processing, Inc. 1,450 62,169
*<F26> Ceridian Corporation 1,450 69,781
*<F26>+<F27>Computer Sciences Corporation 1,450 114,006
Comsat Corporation 1,450 38,063
----------
335,313
----------
LARGE DIVERSIFIED COMPUTER
MANUFACTURING -- 6.8%
*<F26> Digital Equipment Corporation 1,450 53,287
Honeywell Inc. 1,450 99,506
International Business
Machines Corporation 1,450 231,094
*<F26> Unisys Corporation 1,450 11,056
----------
394,943
----------
MEDICAL TECHNOLOGY -- 8.0%
*<F26>+<F27>Acuson Corporation 1,450 33,169
*<F26> Biomet, Inc. 1,450 23,925
*<F26> Boston Scientific Corporation 1,450 84,644
*<F26> Coherent, Inc. 1,450 62,894
*<F26>+<F27>Genzyme Corporation 1,450 32,988
Medtronic, Inc. 1,450 95,881
Shared Medical Systems Corporation 1,450 72,137
*<F26> St. Jude Medical, Inc. 1,450 60,537
----------
466,175
----------
MICRO COMPUTER MANUFACTURERS -- 6.5%
+<F27> Apple Computer, Inc. 1,450 34,981
*<F26> Compaq Computer Corporation 1,450 114,913
*<F26> Dell Computer Corporation 1,450 147,356
*<F26> Gateway 2000, Inc. 1,450 77,756
----------
375,006
----------
MINI AND MAINFRAME COMPUTER
MANUFACTURERS -- 5.0%
*<F26>+<F27>Amdahl Corporation 1,450 17,219
*<F26> Data General Corporation 1,450 21,206
*<F26> EMC Corporation 1,450 46,762
*<F26> Informix Corporation 1,450 34,437
*<F26> Silicon Graphics, Inc. 1,450 28,819
*<F26> Stratus Computer, Inc. 1,450 37,338
*<F26> Sun Microsystems, Inc. 1,450 84,463
*<F26> Tandem Computers, Inc. 1,450 19,756
----------
290,000
----------
OFFICE AUTOMATION EQUIPMENT -- 2.6%
*<F26> CUC International, Inc. 1,450 38,244
*<F26> Newbrige Networks Corporation 1,450 43,138
Xerox Corporation 1,450 71,231
----------
152,613
----------
SEMICONDUCTOR CAPITAL EQUIPMENT
MANUFACTURERS -- 3.3%
*<F26>+<F27>Applied Materials, Inc. 1,450 55,281
*<F26> Cadence Design Systems, Inc. 1,450 57,819
*<F26> KLA Instruments Corporation 1,450 51,475
*<F26> Kulicke & Soffa Industries, Inc. 1,450 29,363
----------
193,938
----------
SEMICONDUCTOR MANUFACTURERS -- 10.4%
*<F26>+<F27>Advanced Micro Devices, Inc. 1,450 35,163
*<F26> Chips & Technologies, Inc. 1,450 30,541
*<F26> Cypress Semiconductor Corporation 1,450 17,763
Intel Corporation 1,450 183,969
Micron Technology, Inc. 1,450 48,031
Motorola, Inc. 1,450 80,294
*<F26> National Semiconductor Corporation 1,450 35,525
*<F26> Standard Microsystems Corporation 1,450 15,950
Texas Instruments Inc. 1,450 92,438
*<F26> Xilinx, Inc. 1,450 63,619
----------
603,293
----------
SOFTWARE PRODUCTS -- 10.5%
+<F27> Adobe Systems, Inc. 1,450 57,275
*<F26>+<F27>BMC Software, Inc. 1,450 63,075
*<F26> Borland International, Inc. 1,450 11,691
+<F27> Computer Associates
International, Inc. 1,450 95,338
*<F26> Microsoft Corporation 1,450 227,469
*<F26> Novell, Inc. 1,450 15,950
*<F26> Oracle Corporation 1,450 71,050
*<F26> Sybase, Inc. 1,450 25,556
*<F26> Symantec Corporation 1,450 21,569
System Software Associates, Inc. 1,450 20,119
----------
609,092
----------
TEST, ANALYSIS, AND INSTRUMENTATION
EQUIPMENT -- 10.3%
*<F26>+<F27>Analog Devices, Inc. 1,450 46,581
General Signal Corporation 1,450 62,531
Hewlett-Packard Company 1,450 78,119
Measurex Corporation 1,450 35,706
Millipore Corporation 1,450 59,269
Perkin-Elmer Corporation 1,450 89,356
Tektronix, Inc. 1,450 70,688
*<F26> Teradyne, Inc. 1,450 34,256
*<F26> Thermo Instrument Systems, Inc. 1,450 48,938
Varian Associates, Inc. 1,450 71,413
----------
596,857
----------
Total Common Stocks
(Cost $4,846,458) 5,607,331
----------
FUTURES -- 4.3%
PSE Technology 100 Index,
December 1996 3 248,600
----------
Total Futures
(Cost $206,516) 248,600
----------
SHORT-TERM INVESTMENTS -- 8.0%
MONEY MARKET -- 5.4%
Dreyfus Cash Management Plus $284,939 284,939
Federated Master Trust 29,375 29,375
----------
Total Money Market 314,314
----------
GOVERNMENT SECURITIES -- 2.5%
+<F27> U.S. Treasury Bills
5.3%, due 02-06-1997 $50,000 $49,521
5.52%, due 08-21-1997 100,000 96,297
----------
Total Government Securities
(Cost $145,474) 145,818
----------
Total Short-Term Investments 460,132
----------
Total Investments $6,316,063
----------
----------
*<F26>Non-income producing
+<F27>Segregated as collateral against futures
Percentages shown are a percent of net assets.
The accompanying notes to financial statements are an integral part of this
schedule.
PART C - OTHER INFORMATION
In response to Part C of Form N-1A, the Registrant hereby incorporates by
reference the Part C-Other Information included in Post-Effective Amendment No.
33 to its Registration Statement on Form N-1A (Registration No. 33-12), as filed
with the Securities and Exchange Commission on March 27, 1996, except that the
following undertaking made in Item 32 is deleted:
Registrant undertakes to file a Post-Effective Amendment, using Financial
Statements which need not be certified, within 4-6 months from the effective
date of Registrant's 1933 Act Registration Statement.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the 1933 Act, and has duly caused this Registration Statement
to be signed on its behalf by the undersigned, thereto duly authorized, in the
City of West Bend and State of Wisconsin, on the 6th day of December, 1996.
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
By: /s/ Robert J. Tuszynski
--------------------------------------
Robert J. Tuszynski President
Pursuant to the requirements of the Securities Act of 1933, this Amended
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.
/s/ Robert J. Tuszynski
- ------------------------- Director and President December 6, 1996
Robert J. Tuszynski (Chief Executive Officer)
/s/ Franklin P. Ciano
- ------------------------- Treasurer December 6, 1996
Franklin P. Ciano (Chief Financial Officer)
All of the Board of Directors:
Richard H. Aster
Ralph J. Eckert
Augustine J. English
R.D. Ziegler
Robert J. Tuszynski, by signing his name hereto, does hereby sign this
document on behalf of himself and each of the other above-named Directors of
Principal Preservation Portfolios, Inc. pursuant to a power of attorney duly
executed by such persons as of January 19, 1996.
/s/ Robert J. Tuszynski December 6, 1996
- -----------------------------------
Robert J. Tuszynski
Attorney-in-Fact
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