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COVA SERIES TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 98.3%
AEROSPACE & DEFENSE - 1.0%
DeCrane Aircraft Holdings, Inc. * 3,100 $ 46,113
Orbital Sciences Corp. * 10,700 169,863
Rohr, Inc. * 5,500 120,656
---------------------
336,632
---------------------
AIRLINES - 0.4%
ASA Holdings, Inc 4,600 131,531
---------------------
AUTOMOTIVE - 2.9%
Excel Industries, Inc 4,500 87,750
Intermet Corp 14,200 228,088
Lithia Motors, Inc. Class A * 4,900 53,900
Modine Manufacturing Co 3,400 101,150
Simpson Industries, Inc 7,900 83,938
Wabash National Corp 12,900 359,588
---------------------
914,414
---------------------
BANKING - 6.6%
Bank North Group, Inc 5,600 259,000
Bank United Corp 10,000 381,875
Colonial Bancgroup, Inc 9,200 223,100
Commercial Federal Corp 3,300 122,513
Community First Bankshares, Inc 3,000 114,750
Eagle Bancshares, Inc 1,500 26,344
First Hawaiian, Inc 2,400 81,900
First Republic Bancorp, Inc. * 3,300 76,725
Flagstar Bancorp, Inc. * 3,800 61,750
GBC Bancorp California 3,700 151,238
Hamilton Bancorp, Inc. * 1,100 29,425
Interwest Bancorp, Inc 1,800 71,100
Irwin Financial Corp 2,000 59,000
National Commerce Bancorp 8,100 178,200
Trustco Bank Corp. N.Y 6,700 143,213
Trustmark Corp 1,100 30,800
Westamerica Bancorp 1,700 129,200
---------------------
2,140,133
---------------------
BEVERAGES, FOOD & TOBACCO - 4.2%
Dekalb Genetics Corp. Class B 12,200 972,971
Eskimo Pie Corp 100 1,213
Kensey Nash Corp. * 13,900 149,425
Morningstar Group, Inc. * 4,500 132,328
Savannah Foods & Industries, Inc 5,400 94,838
---------------------
1,350,775
---------------------
See notes to financial statements
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 1.9%
Bush Boake Allen, Inc. * 6,100 $ 189,863
General Chemical Group, Inc 2,600 69,550
Minerals Technologies, Inc 2,900 108,750
Mycogen Corp. * 1,700 33,150
OM Group, Inc 1,600 53,000
Tetra Technologies, Inc. * 6,000 148,500
---------------------
602,813
---------------------
COMMERCIAL SERVICES - 2.3%
Comfort Systems USA, Inc. * 1,000 15,625
DeVry, Inc. * 8,800 237,600
Equity Corporation International * 2,100 50,794
Pinkertons, Inc. * 4,100 126,075
Robert Half International, Inc. * 2,400 112,950
Service Experts, Inc. * 2,200 53,900
Steiner Leisure Ltd. * 3,800 105,925
Youth Services International, Inc. * 3,600 43,650
---------------------
746,519
---------------------
COMMUNICATIONS - 3.2%
Aspect Telecommunications Corp. * 4,300 95,138
Digital Microwave Corp. * 3,300 99,000
Glenayre Technologies, Inc. * 6,700 109,922
ICG Communications, Inc. * 5,500 105,875
Natural Microsystems Corp. * 3,800 136,681
Omnipoint Corp. * 8,500 141,313
Premiere Technologies, Inc. * 8,900 231,400
Proxim, Inc. * 4,900 118,519
---------------------
1,037,848
---------------------
COMPUTER SOFTWARE & PROCESSING - 4.5%
Adept Technology, Inc. * 6,100 53,375
Avid Technology, Inc. * 5,800 152,975
Aware, Inc. * 1,000 14,750
Ciber, Inc. * 300 10,256
Computer Horizons Corp. * 700 23,975
Edify Corp. * 8,400 123,900
International Network Services * 7,300 189,572
Mathsoft, Inc. * 6,100 19,063
Metromail Corp. * 4,600 113,850
Network General Corp. * 4,800 71,400
Oak Technology, Inc. * 7,500 73,125
Pinnacle Systems, Inc. * 5,300 90,431
See notes to financial statements
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & PROCESSING - CONTINUED
Pure Atria Corp. * 800 $ 11,300
Remedy Corp. * 1,100 44,000
Sapient Corp. * 1,800 89,100
Security First Network Bank * 3,100 21,313
Transaction Systems Architects, Inc. Class A * 6,700 231,150
Viasoft, Inc. * 700 35,525
Visigenic Software, Inc. * 8,300 72,625
---------------------
1,441,685
---------------------
COMPUTERS & INFORMATION - 0.2%
Raster Graphics, Inc. * 6,100 43,463
Red Brick Systems, Inc. * 1,800 13,078
---------------------
56,541
---------------------
CONSUMER SERVICES - 0.3%
Education Management * 3,100 80,600
---------------------
ELECTRIC UTILITIES - 2.9%
Calpine Corporation * 5,300 100,700
Central Hudson Gas & Electric 10,500 361,594
Central Louisiana Electric, Inc 12,300 345,938
Otter Tail Power Co 1,700 55,463
Saint Joseph Light & Power 4,700 76,963
---------------------
940,658
---------------------
ELECTRICAL EQUIPMENT - 3.6%
Advanced Technology Material * 7,000 205,625
American Residential Services * 6,400 148,800
Applied Power Inc. Class A 6,000 309,750
Bolder Electrical Equipment * 3,800 53,200
Encore Wire Corp. * 5,000 152,500
MagneTek, Inc. * 14,200 236,075
Silicon Valley Group, Inc. * 2,000 52,625
---------------------
1,158,575
---------------------
ELECTRONICS - 3.4%
Flextronics International Ltd. * 1,800 48,263
Input / Output, Inc. * 6,700 121,438
Integrated Device Technology, Inc. * 12,400 130,200
Itron, Inc. * 5,100 131,963
OnTrak Systems, Inc. * 400 12,000
Perceptron, Inc. * 3,500 93,844
Quickturn Design Systems, Inc. * 6,000 70,875
Rambus, Inc. * 200 9,300
See notes to financial statements
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - CONTINUED
SDL Inc. * 10,100 $ 193,163
Sipex Corp. * 400 14,500
Uniphase Corp. * 1,600 92,800
Vitesse Semiconductor Corp. * 1,800 58,781
WH Brady Co. Class A 3,800 110,200
---------------------
1,087,327
---------------------
ENTERTAINMENT & LEISURE - 1.7%
Imax Corp. * 15,700 388,575
WMS Industries, Inc. * 6,700 167,893
---------------------
556,468
---------------------
ENVIRONMENTAL CONTROLS - 1.1%
American Disposal Services * 8,100 182,250
Dames & Moore, Inc 6,700 82,913
Sevenson Environmental Services 4,300 83,850
---------------------
349,013
---------------------
FINANCIAL SERVICES - 3.0%
First Federal Financial Corp * 6,700 208,119
Hambrecht & Quist Group * 4,600 150,650
Litchfield Financial Corp 6,830 111,841
New Century Financial Corp. * 1,100 15,950
Ocwen Financial Corp. * 2,000 64,625
Pinnacle Financial Services 5,800 168,200
Southwest Securities Group, Inc 6,600 128,700
WFS Financial, Inc. * 6,700 112,225
---------------------
960,310
---------------------
FOREST PRODUCTS & PAPER - 1.9%
American Pad & Paper Co. * 16,100 271,688
Caraustar Industries, Inc 7,500 259,688
Universal Forest Products, Inc 6,400 93,600
---------------------
624,976
---------------------
HEALTH CARE PROVIDERS - 2.2%
Apple Orthodontix, Inc. * 1,600 14,500
Arbor Health Care Co. * 1,600 49,600
Kapson Senior Quarters * 7,300 86,688
Paracelsus Healthcare Corp. * 6,700 33,919
Safety First, Inc. * 11,200 65,800
Sierra Health Services, Inc. * 10,500 328,125
Sterling House Corp. * 5,300 86,788
Summit Care Corp. * 2,300 31,050
---------------------
696,470
---------------------
See notes to financial statements
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
HEAVY MACHINERY - 2.4%
Credence Systems Corp. * 3,600 $ 107,775
Dreco Energy Services Ltd. Class A * 1,600 84,200
Greenfield Industries, Inc 6,900 188,025
IDEXX Corp 7,250 239,250
Infocus Systems, Inc. * 4,900 126,481
JLK Direct Distribution, Inc. * 400 10,250
---------------------
755,981
---------------------
HOME CONSTRUCTION, FURNISHINGS & APPLIANCES - 3.4%
Aaron Rents Inc. Class B 10,000 133,750
Bush Industries Class A 10,500 249,375
D.R. Horton, Inc 48,100 499,038
Ladd Furniture, Inc. * 2,100 28,875
Landec Corp. * 1,600 9,600
Micrel, Inc. * 1,800 91,800
Royal Appliance Manufacturing Co. * 3,000 25,688
Stanley Furniture Co., Inc. * 1,800 41,625
---------------------
1,079,751
---------------------
INDUSTRIAL - DIVERSIFIED - 0.6%
ABC Rail Products Corp. * 3,000 51,375
Hexcel Corp. * 3,700 63,825
Shaw Group, Inc. * 3,900 63,375
---------------------
178,575
---------------------
INSURANCE - 4.6%
Capital RE Corp 17,600 941,600
Chartwell RE Corp 5,500 165,000
Hartford Life, Inc. Class A * 1,000 37,500
Renaissancere Holdings Ltd 8,300 316,438
---------------------
1,460,538
---------------------
LODGING - 0.7%
Candlewood Hotel Co., Inc. * 9,900 82,913
Extended Stay America, Inc. * 8,200 129,150
---------------------
212,063
---------------------
MEDIA - BROADCASTING & PUBLISHING - 1.3%
Banta Corp 5,300 143,763
Ditgital Generation Systems * 2,300 10,350
Heritage Media Corp. Class A * 5,200 98,150
K-III Communications Corp. * 7,500 90,000
SJW Corp 1,200 63,000
---------------------
405,263
---------------------
See notes to financial statements
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
MEDICAL SUPPLIES - 4.5%
Arterial Vascular Engineering, Inc. * 2,000 $ 64,375
Aspen Technologies, Inc. * 5,300 199,413
Cellpro, Inc. * 5,700 34,200
Closure Medical Corp. * 2,600 50,050
CONMED Corp. * 4,100 69,700
Eclipse Surgical Tech, Inc. * 4,800 38,400
Heartstream, Inc. * 7,300 63,875
Keravision, Inc. * 14,200 129,575
Lifeline Systems, Inc. * 3,800 72,200
Mariner Health Group, Inc. * 28,400 438,425
Physio-Control International Corp. * 3,500 52,500
Sangstat Medical Corp. * 5,100 117,938
Sola International * 3,100 103,850
---------------------
1,434,501
---------------------
MEDICAL & BIO-TECHNOLOGY - 1.0%
Arqule, Inc. * 3,000 51,750
IDEXX Laboratories, Inc. * 8,000 99,500
Sequana Therapeutics, Inc. * 5,600 60,900
Transkaryotic Therapies, Inc. * 1,500 46,219
Tripos, Inc. * 4,700 73,438
---------------------
331,807
---------------------
METALS - 5.0%
Amcast Industrial Corp 7,300 182,500
Commercial Metals Co 19,600 632,100
Mueller Industries * 5,600 245,000
Oregon Steel Mills 2,700 53,831
Schnitzer Steel Industries, Inc. Class A 10,400 305,500
Steel Technologies, Inc 17,300 184,894
---------------------
1,603,825
---------------------
OFFICE EQUIPMENT - 1.3%
Actel Corp. * 6,800 116,025
Checkfree Corp. * 7,800 137,475
P-Com, Inc. * 4,600 151,800
---------------------
405,300
---------------------
OIL & GAS - 4.4%
Devon Energy Corp 3,300 121,275
Energen Corp 1,500 50,531
KN Energy, Inc 2,200 92,675
Monterey Resources, Inc 6,900 102,638
See notes to financial statements
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
OIL & GAS - CONTINUED
Newfield Exploration Co. * 8,400 $ 168,000
Ocean Energy, Inc. * 1,900 87,875
Patterson Energy, Inc. * 1,900 86,213
Plains Resource, Inc. * 7,400 109,150
Seacor Holdings, Inc. * 3,600 188,325
Snyder Oil Corp 6,700 123,113
United Cities Gas Co 3,400 79,900
Wicor, Inc 4,900 190,794
---------------------
1,400,489
---------------------
PHARMACEUTICALS - 4.1%
Applied Analytical Industries, Inc. * 5,500 111,375
First Alliance Corp * 1,900 55,575
Hubco, Inc 10,187 295,423
Human Genome Sciences, Inc. * 7,300 242,725
IDEC Pharmaceuticals Corp. * 1,300 31,525
Incyte Pharmaceuticals, Inc. * 3,200 214,400
Kos Pharmaceuticals, Inc. * 1,700 46,113
Medi-Ject Corp. * 10,300 30,900
Twinlab Corp. * 1,600 38,400
Ventana Medical Systems * 15,900 196,763
Vertex Pharmaceuticals Inc. * 700 26,775
Vical, Inc. * 2,200 28,050
---------------------
1,318,024
---------------------
REAL ESTATE - 8.1%
American General Hospitality Corp. (REIT) 5,300 131,175
Amresco, Inc. * 7,300 156,950
Arden Realty Group, Inc. (REIT) 3,700 96,200
Boston Properties, Inc. (REIT) * 2,600 71,500
Brandywine Realty Trust (REIT) 3,500 70,875
Burnham Pacific Properties, Inc. (REIT) 5,700 78,375
Chelsea GCA Realty, Inc. (REIT) 1,100 41,800
Colonial Properties Trust (REIT) 1,900 55,813
Columbus Realty Trust (REIT) 7,200 163,800
Developers Diversified Realty Corp. (REIT) 6,800 272,000
Evans Withycombe Residential, Inc. (REIT) 3,200 66,400
Excel Realty Trust, Inc. (REIT) 3,800 100,225
Gables Residential Trust (REIT) 10,300 260,075
Healthcare Realty Trust, Inc. (REIT) 5,300 147,738
Liberty Property Trust (REIT) 5,300 131,838
Oasis Residential, Inc. (REIT) 10,800 253,800
See notes to financial statements
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - CONTINUED
Post Properties, Inc. (REIT) 3,300 $ 133,856
Price REIT, Inc. (REIT) 4,900 178,238
TriNet Corporate Realty Trust, Inc. (REIT) 3,500 115,719
Weeks Corp. (REIT) 1,800 56,250
Westfield America, Inc. (REIT) 2,800 47,250
---------------------
2,629,877
---------------------
RESTAURANTS - 0.9%
Nimbus CD International, Inc. * 6,400 70,400
Papa John's International, Inc. * 6,100 224,175
---------------------
294,575
---------------------
RETAILERS - 4.3%
Best Buy Co., Inc. * 2,700 40,163
Catherines Stores Corp. * 2,200 8,250
Charming Shoppes, Inc. * 14,500 75,671
Delia's, Inc. * 2,300 42,550
Duckwall-Alco Stores, Inc. * 4,700 59,925
French Fragrances, Inc. * 1,300 12,025
Garden Ridge Corp. * 25,900 323,750
Gymboree Corp. * 4,700 112,800
Lazare Kaplan International * 4,500 75,375
Linens 'N Things, Inc. * 1,900 56,288
One Price Clothing Stores * 13,000 50,375
Pacific Sunwear of California * 2,000 65,000
Party City Corp * 7,000 115,063
Penn Traffic Co. * 8,800 69,300
ShopKo Stores, Inc 1,400 35,700
Urban Outfitters, Inc. * 16,100 225,400
---------------------
1,367,635
---------------------
TELEPHONE SYSTEMS - 0.2%
Iridium World Communications Ltd. * 2,000 36,250
Qwest Communications International, Inc. * 1,100 29,975
---------------------
66,225
---------------------
TEXTILES, CLOTHING & FABRICS - 0.7%
Ashworth, Inc. * 8,200 83,281
Collins & Aikman Corp. * 12,900 129,000
Worldtex, Inc. * 2,900 23,200
---------------------
235,481
---------------------
See notes to financial statements
COVA SERIES TRUST
SMALL CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.5%
Allied Holdings, Inc. * 3,100 $ 33,906
American Freightways Corp. * 6,700 104,688
Genesee & Wyoming Inc. Class A * 6,800 178,500
Rollins Truck Leasing Corp 15,000 223,125
Werner Enterprises, Inc 9,800 189,875
Willis Lease Finance Corp. * 5,700 70,894
---------------------
800,988
---------------------
WATER COMPANIES - 1.0%
E-Town Corporation 6,700 206,025
Southern California Water Co 5,100 124,950
---------------------
330,975
---------------------
TOTAL Common Stocks (Cost $28,797,187) 31,525,161
---------------------
TOTAL INVESTMENTS - 98.3%
(Cost $28,797,187) 31,525,161
Other Assets and Liabilities (net) - 1.7% 546,050
---------------------
TOTAL NET ASSETS - 100.0% $ 32,071,211
=====================
</TABLE>
PORTFOLIO FOOTNOTES:
* Non-income producing security as this stock did not declare
or pay dividends in the last 12 month period.
REIT - Real Estate Investment Trust
See notes to financial statements
COVA SERIES TRUST
QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
PAR SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DOMESTIC BONDS AND DEBT SECURITIES - 86.5%
ASSET BACKED SECURITIES - 12.9%
$150,000 Caterpillar Asset Financial Trust 6.300% 05/25/02 $ 149,726
100,000 First Omni Credit Card Master Trust 6.650% 09/15/03 100,655
300,000 Money Store Home Equity Trust 6.520% 04/15/12 299,719
144,255 Nationsbank Auto Owner Trust 6.125% 07/15/99 144,843
175,000 Premier Auto Trust 6.150% 03/06/00 175,455
100,000 Sears Credit Account Master Trust 6.500% 10/15/03 100,662
97,042 World Omni Automobile Securitization Trust 6.300% 06/25/02 97,592
100,000 World Omni Lease Trust 5.950% 11/15/02 100,371
---------------------
1,169,023
---------------------
CORPORATE BONDS - 8.9%
100,000 ABN Amro Bank NV 7.550% 06/28/06 102,904
60,000 Banc One Corp 7.625% 10/15/26 59,630
100,000 Columbia Gas System 7.620% 11/28/25 96,901
100,000 Eastman Chemical Co 7.250% 01/15/24 95,443
60,000 Nationsbank Corp 7.250% 10/15/25 57,446
100,000 NGC Corp 7.625% 10/15/26 99,653
40,000 Tele-Communications, Inc 7.875% 02/15/26 38,233
100,000 Trans Financial Bank N.A 6.320% 10/17/97 99,870
50,000 U.S. West Capital Funding, Inc 7.900% 02/01/27 50,304
100,000 Worldcom, Inc 7.750% 04/01/27 103,595
---------------------
803,979
---------------------
MEDIUM TERM SECURITIES - 6.1%
200,000 Ford Motor Credit Co 7.470% 07/29/99 203,969
200,000 General Motors Acceptance Corp 6.700% 06/24/99 201,211
150,000 Nationsbank Corp 5.750% 01/25/01 145,448
---------------------
550,628
---------------------
MORTGAGED BACKED SECURITIES - 24.7%
150,000 Federal Home Loan Mortgage Corp 6.500% 09/15/23 146,235
78,324 Federal Home Loan Mortgage Corp 8.500% 08/01/26 81,457
150,000 Federal National Mortgage Association 6.500% 11/25/07 147,737
70,402 Federal National Mortgage Association 7.500% 09/01/25 70,644
192,271 Federal National Mortgage Association 6.500% 02/01/26 184,160
148,780 Federal National Mortgage Association 6.000% 02/01/26 138,598
225,389 Federal National Mortgage Association 7.000% 07/01/26 221,163
79,200 Federal National Mortgage Association 8.000% 03/01/27 81,007
108,900 Federal National Mortgage Association 7.500% 06/01/27 109,275
80,000 Federal National Mortgage Association 7.500% 08/01/27 80,150
99,405 Government National Mortgage Association 9.000% 09/15/16 105,090
98,579 Government National Mortgage Association 9.000% 06/15/17 104,216
215,708 Government National Mortgage Association 7.500% 03/15/26 216,518
199,280 Government National Mortgage Association 7.000% 04/15/26 195,855
96,129 Government National Mortgage Association 8.000% 08/15/26 98,322
149,504 Government National Mortgage Association 8.000% 01/15/27 152,915
99,458 Government National Mortgage Association 7.500% 02/15/27 99,831
---------------------
2,233,173
---------------------
U.S. TREASURY SECURITIES - 33.9%
100,000 U.S. Treasury Note 6.625% 07/31/01 101,031
615,000 U.S. Treasury Note 6.375% 09/30/01 615,384
965,000 U.S. Treasury Note 5.750% 08/15/03 932,129
See notes to financial statements
COVA SERIES TRUST
QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -----------------------------------------------------------------------------------------------------------------------------
PAR SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES - CONTINUED
$225,000 U.S. Treasury Note 6.500% 05/15/05 $ 224,719
150,000 U.S. Treasury Note 5.875% 11/15/05 143,578
430,000 U.S. Treasury Note 6.875% 05/15/06 439,003
150,000 U.S. Treasury Note 6.250% 03/31/99 150,563
465,000 U.S. Treasury Bond 6.750% 08/15/26 460,204
---------------------
3,066,611
---------------------
TOTAL Domestic Bonds and Debt Securities (Cost $7,772,034) 7,823,414
---------------------
FOREIGN BONDS AND DEBT SECURITIES - 3.6%
CANADA - 1.9%
50,000 Gulf Canada Resources, Ltd. (Yankee Dollar) 8.250% 03/15/17 50,603
100,000 Hydro - Quebec (Yankee Dollar) 9.500% 11/15/30 121,447
---------------------
172,050
---------------------
GREAT BRITAIN - 1.2%
100,000 Midland Bank PLC (Yankee Dollar) 7.625% 06/15/06 103,384
---------------------
ITALY - 0.5%
50,000 Republic of Italy (Global) 6.875% 09/27/23 47,414
---------------------
TOTAL Foreign Bonds and Debt Securities (Cost $311,359) 322,848
---------------------
TOTAL INVESTMENTS - 90.1%
(Cost $8,083,393) 8,146,262
Other Assets and Liabilities (net) - 9.9% 902,607
---------------------
TOTAL NET ASSETS - 100.0% $ 9,048,869
=====================
</TABLE>
PORTFOLIO FOOTNOTES:
Yankee-Dollar - U.S. Dollar denominated bonds issued by non
-U.S. companies in the U.S.
See notes to financial statements
COVA SERIES TRUST
SELECT EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS - 98.1%
AEROSPACE & DEFENSE - 7.0%
AlliedSignal, Inc 15,800 $ 1,327,200
Coltec Industries * 35,100 684,450
General Motors Corp. Class H (Hughes Electronics) 10,500 606,375
McDonnell Douglas Corp 9,100 623,350
Rohr, Inc. * 42,500 932,334
---------------------
4,173,709
---------------------
AUTOMOTIVE - 0.2%
Lear Corporation * 2,500 110,938
---------------------
BANKING - 4.7%
Citicorp 4,000 482,250
Crestar Financial Corp 11,300 439,288
First Chicago NBD Corp 9,700 586,850
Great Western Financial 2,600 139,750
Nationsbank Corp 6,401 412,865
Providian Financial Corp 3,100 99,588
Washington Mutual, Inc 11,300 675,175
---------------------
2,835,766
---------------------
BEVERAGES, FOOD & TOBACCO - 7.6%
General Mills Co 13,900 905,238
Pepsico, Inc 39,300 1,476,206
Philip Morris Companies, Inc 9,500 421,563
Ralston Purina Group 11,400 936,938
Unilever 3,400 741,200
---------------------
4,481,145
---------------------
CHEMICALS - 5.3%
Albemarle Corp 54,500 1,147,906
Du Pont (E.I.) De Nemours 18,900 1,188,338
Union Carbide Corp 17,800 837,713
---------------------
3,173,957
---------------------
COMMERCIAL SERVICES - 1.9%
ADT Ltd. * 13,800 455,400
Waste Management, Inc 21,200 681,050
---------------------
1,136,450
---------------------
COMMUNICATIONS - 3.0%
MCI Communications Corp 13,900 532,109
Tele-Communications, Inc. (Series A) * 85,200 1,267,350
---------------------
1,799,459
---------------------
See notes to financial statements
COVA SERIES TRUST
SELECT EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & PROCESSING - 2.1%
Autodesk Inc 7,000 $ 268,188
First Data Corp 22,900 1,006,169
---------------------
1,274,357
---------------------
COMPUTERS & INFORMATION - 4.8%
Cabletron Systems, Inc. * 17,400 492,638
International Business Machines Corp 18,600 1,677,488
Sun Microsystems, Inc. * 18,500 688,546
---------------------
2,858,672
---------------------
ELECTRIC UTILITIES - 3.7%
Dominion Resources, Inc 12,100 443,163
Duke Power Co 11,470 549,849
New England Electric System 17,600 651,200
Northern States Power Co 11,100 574,425
---------------------
2,218,637
---------------------
ELECTRICAL EQUIPMENT - 0.6%
Symbol Technologies, Inc 10,400 349,700
---------------------
ELECTRONICS - 5.1%
Anixter International, Inc. * 12,300 211,406
General Instrument Corp. * 42,900 1,072,500
Input / Output, Inc. * 41,300 748,563
Intel Corporation 3,700 524,706
Perkin-Elmer Corp 6,300 501,244
---------------------
3,058,419
---------------------
ENTERTAINMENT & LEISURE - 2.2%
Circus Circus Enterprises, Inc. * 23,200 571,300
International Game Technology 42,200 749,050
---------------------
1,320,350
---------------------
FINANCIAL SERVICES - 6.6%
Advanta Corp 100 3,569
A.G. Edwards, Inc 5,320 227,430
Federal National Mortgage Association 10,300 449,338
Financial Security Assurance Holdings, Ltd 15,700 611,319
First USA Inc 26,200 1,531,063
Morgan Stanley, Dean Witter, Discover & Co 13,200 568,425
Salomon, Inc 9,200 511,750
---------------------
3,902,894
---------------------
HEALTH CARE PROVIDERS - 2.2%
Columbia / HCA Healthcare Corp 3,200 125,800
United Healthcare Corp 23,400 1,216,800
---------------------
1,342,600
---------------------
See notes to financial statements
COVA SERIES TRUST
SELECT EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
HEAVY MACHINERY - 2.4%
Cooper Industries, Inc 29,200 $ 1,452,700
---------------------
HOUSEHOLD PRODUCTS - 2.9%
Procter & Gamble Co 12,400 1,751,500
---------------------
INDUSTRIAL - Diversified - 1.0%
Temple Inland, Inc 11,500 621,000
---------------------
INSURANCE - 2.0%
Aegon, N.V 1,316 92,228
Marsh & McLennan Cos., Inc 15,400 1,099,175
---------------------
1,191,403
---------------------
METALS - 0.8%
Allegheny Teledyne, Inc 18,000 486,000
---------------------
OFFICE EQUIPMENT - 2.2%
Bay Networks * 26,100 693,281
EMC Corp. * 15,300 596,700
---------------------
1,289,981
---------------------
OIL & GAS - 7.6%
Anadarko Petroleum Corp 7,000 420,000
British Petroleum Co. PLC (ADR) 4,200 314,475
Enron Corp 6,700 273,444
Exxon Corp 26,900 1,654,350
Tosco Corp 42,200 1,263,363
Valero Energy Corp 17,400 630,750
---------------------
4,556,382
---------------------
PHARMACEUTICALS - 6.8%
Alza Corp. * 18,500 536,500
American Home Products Corp 15,700 1,201,050
Schering - Plough Corp 10,200 488,325
Warner Lambert Co 14,900 1,851,325
---------------------
4,077,200
---------------------
RETAILERS - 5.0%
Circuit City Stores-Carmax * 1,500 21,469
Circuit City Stores, Inc 17,400 618,788
Federated Department Stores, Inc. * 15,300 531,675
Toys "R" Us, Inc. Holding Co. * 51,700 1,809,500
---------------------
2,981,432
---------------------
See notes to financial statements
COVA SERIES TRUST
SELECT EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
TELEPHONE SYSTEMS - 5.3%
Bell Atlantic Corp 6,600 $ 500,775
GTE Corporation 13,000 570,375
Sprint Corp 12,400 652,550
Worldcom, Inc. * 44,700 1,430,400
---------------------
3,154,100
---------------------
TEXTILES, CLOTHING & FABRICS - 1.7%
Collins & Aikman Corp. * 75,530 755,300
Fruit of The Loom, Inc. * 8,300 257,300
---------------------
1,012,600
---------------------
TRANSPORTATION - 3.4%
CNF Transportation, Inc 5,800 187,050
CSX Corp 18,400 1,021,200
Union Pacific Corp 11,300 796,650
---------------------
2,004,900
---------------------
TOTAL Common and Preferred Stocks (Cost $52,841,051) 58,616,251
---------------------
TOTAL INVESTMENTS - 98.1%
(Cost $52,841,051) 58,616,251
Other Assets and Liabilities (net) - 1.9% 1,143,222
---------------------
TOTAL NET ASSETS - 100.0% $ 59,759,473
=====================
</TABLE>
PORTFOLIO FOOTNOTES:
* Non-income producing security as this stock did not declare
or pay dividends in the last 12 month period.
ADR - American Depositary Receipt
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS - 99.7%
AEROSPACE & DEFENSE - 3.9%
AlliedSignal, Inc 2,800 $ 235,200
Boeing Co 5,100 270,619
Coltec Industries * 600 11,700
Cummins Engine Co., Inc 200 14,113
General Motors Corp. Class H (Hughes Electronics) 2,200 127,050
McDonnell Douglas Corp 900 61,650
Raytheon Co 600 30,600
---------------------
750,932
---------------------
AIRLINES - 0.3%
AMR Corp. * 300 27,750
Comair Holdings, Inc 100 2,772
Southwest Airlines, Inc 700 18,113
---------------------
48,635
---------------------
AUTOMOTIVE - 2.4%
AutoZone, Inc. * 900 21,206
Chrysler Corp 2,500 82,031
Cooper Tire & Rubber Co 400 8,800
Eaton Corp 600 52,388
Ford Motor Co 5,800 218,950
General Motors Corp 200 11,138
Goodyear Tire & Rubber Co 800 50,650
Lear Corporation * 300 13,313
---------------------
458,476
---------------------
BANKING - 7.1%
Banc One Corp 2,700 130,781
BankBoston Corp 800 57,650
Bankers Trust New York Corp 300 26,100
Beneficial Corp 300 21,319
Chase Manhattan Corp 400 38,825
Commerce Bancshares, Inc 100 4,525
Corestates Financial Corp 1,200 64,500
Crestar Financial Corp 600 23,325
Dime Bancorp, Inc 600 10,500
First Chicago NBD Corp 1,700 102,850
First Commerce Corp 200 8,800
First Hawaiian, Inc 100 3,413
First Tennessee National Corp 300 14,400
First Union Corp. (New England) 1,500 138,750
Firstar Corp 800 24,400
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
BANKING - CONTINUED
Fleet Financial Group, Inc 700 $ 44,275
Golden West Financial Corp 300 21,000
Great Western Financial 700 37,625
H.F. Ahmanson & Co 500 21,500
Hibernia Corp. Class A 500 6,969
Mercantile Bancorporation 401 24,336
Nationsbank Corp 4,601 296,765
North Fork Bancorporation, Inc 400 8,550
Old Kent Financial Corp 210 11,340
Pacific Century Financial Corp 200 9,250
Providian Financial Corp 900 28,913
Republic New York Corp 300 32,250
Signet Banking Corp 300 10,800
TCF Financial Corp 200 9,875
Union Planters Corp 300 15,563
Valley National Bancorp 200 5,425
Washington Federal, Inc 200 5,131
Washington Mutual, Inc 700 41,825
Wells Fargo & Co 200 53,900
---------------------
1,355,430
---------------------
BEVERAGES, FOOD & TOBACCO - 8.9%
Anheuser Busch 2,400 100,650
Coca-Cola Co 4,200 283,500
CPC International, Inc 700 64,619
General Mills Co 800 52,100
Heinz (H.J.), Co 1,700 78,413
Kellogg Co 1,200 102,750
Nabisco Holdings Corp. Class A 300 11,963
Pepsico, Inc 8,700 326,794
Philip Morris Companies, Inc 7,700 341,688
Pioneer Hi-Bred International 300 24,000
Ralston Purina Group 600 49,313
Sara Lee Corp 300 12,488
Seagrams Co. Ltd 1,600 64,400
Unilever 900 196,200
---------------------
1,708,878
---------------------
BUILDING MATERIALS - 0.2%
Owens Corning 600 25,875
USG Corp. * 400 14,600
---------------------
40,475
---------------------
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 2.9%
Albemarle Corp 300 $ 6,319
Crompton & Knowles Corp 400 8,900
Cytec Industries, Inc. * 300 11,213
Dow Chemical Co 1,300 113,263
Du Pont (E.I.) De Nemours 5,400 339,525
Georgia Gulf Corp 200 5,813
International Flavors & Fragrances 100 5,050
Lyondell Petro Chemical 300 6,544
Rohm & Haas Co 300 27,019
Union Carbide Corp 700 32,944
---------------------
556,590
---------------------
COMMERCIAL SERVICES - 1.0%
ADT Ltd. * 100 3,300
Service Corp. International 1,800 59,175
Waste Management, Inc 3,900 125,288
---------------------
187,763
---------------------
COMMUNICATIONS - 2.6%
360 Communications Co. * 900 15,413
Cox Communications Class A * 300 7,200
Frontier Corp 800 15,950
MCI Communications Corp 3,200 122,500
Paging Network, Inc. * 700 6,147
SBC Communications, Inc 4,200 259,875
Tele-Communications, Inc. (Series A) * 4,700 69,913
---------------------
496,998
---------------------
COMPUTER SOFTWARE & PROCESSING - 4.6%
Cisco Systems, Inc. * 3,800 255,075
Computer Associates International, Inc 1,800 100,238
First Data Corp 2,600 114,238
Microsoft Corp. * 1,800 227,475
Oracle Corp. * 3,500 176,313
---------------------
873,339
---------------------
COMPUTERS & INFORMATION - 4.5%
Cabletron Systems, Inc. * 1,000 28,313
Compaq Computer * 1,300 129,025
Dell Computer Corp. * 200 23,488
Electronic Data Systems Corp 1,600 65,600
Gateway 2000, Inc. * 800 25,950
International Business Machines Corp 5,200 468,975
Quantum Corp. * 800 16,250
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & INFORMATION - CONTINUED
Read-Rite Corp. * 300 $ 6,263
Silicon Graphics * 1,000 15,000
Sun Microsystems, Inc. * 2,100 78,159
---------------------
857,023
---------------------
COSMETICS & PERSONAL CARE - 0.3%
Gillette Co 700 66,325
---------------------
ELECTRIC UTILITIES - 2.4%
Allegheny Power System, Inc 400 10,675
American Electric Power Co 500 21,000
Baltimore Gas and Electric Co 600 16,013
Central & South West Corp 900 19,125
CMS Energy Corp 100 3,525
Consolidated Edison of N.Y 1,000 29,438
Dominion Resources, Inc 800 29,300
DTE Energy Co 600 16,575
Duke Power Co 1,671 80,105
Entergy Corp 1,000 27,375
Houston Industries, Inc 100 2,144
Illinova Corp 300 6,600
Kansas City Power & Light Co 100 2,856
New England Electric System 300 11,100
Northeast Utilities 600 5,738
Northern States Power Co 600 31,050
Pinnacle West Capital Corp 400 12,025
Potomac Electric Power 500 11,563
Southern Company 2,900 63,438
Texas Utilities Co 400 13,775
Unicom Corp 900 20,025
Union Electric Co 400 15,075
Wisconsin Energy Corp 500 12,438
---------------------
460,958
---------------------
ELECTRICAL EQUIPMENT - 2.9%
Emerson Electric 1,700 93,606
General Electric Co 6,100 398,788
Grainger (W.W.), Inc 400 31,275
Raychem Corp 300 22,313
Symbol Technologies, Inc 300 10,088
---------------------
556,070
---------------------
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 3.6%
Anixter International, Inc. * 300 $ 5,156
General Instrument Corp. * 700 17,500
Input / Output, Inc. * 200 3,625
Intel Corporation 3,400 482,163
Johnson Controls 1,000 41,063
National Semiconductor Corp. * 800 24,500
Perkin-Elmer Corp 600 47,738
Sensormatic Electronics Corp 400 5,150
Texas Instruments 800 67,250
---------------------
694,145
---------------------
ENTERTAINMENT & LEISURE - 1.4%
Circus Circus Enterprises, Inc. * 800 19,700
Grand Casinos, Inc. * 200 2,950
Harrah's Entertainment, Inc. * 800 14,400
International Game Technology 1,000 17,750
Mattel, Inc 2,300 77,913
MGM Grand, Inc. * 400 14,800
Mirage Resorts, Inc. * 1,400 35,350
Viacom Inc. Class B * 2,700 81,000
---------------------
263,863
---------------------
ENVIRONMENTAL CONTROLS - 0.1%
Wheelabrator Technologies, Inc 700 10,806
---------------------
FINANCIAL SERVICES - 4.1%
Advanta Corp 200 7,138
Alex. Brown, Inc 100 7,063
American General Corp 1,900 90,725
Associates First Capital Corp. Class A 200 11,100
A.G. Edwards, Inc 300 12,825
Bear Stearns Companies,Inc 600 20,513
Charter One Financial, Inc 200 10,775
Contifinancial Corp. * 200 7,300
Federal Home Loan Mortgage Corp 3,400 116,875
Federal National Mortgage Association 5,600 244,300
Finova Group, Inc 100 7,650
First USA Inc 100 5,844
Household International, Inc 500 58,719
Morgan Stanley, Dean Witter, Discover & Co 3,000 129,188
Regions Financial Corp 600 18,975
Salomon, Inc 600 33,375
The Money Store, Inc 300 8,578
---------------------
790,943
---------------------
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER - 0.8%
Boise Cascade Corp 400 $ 14,125
Bowater, Inc 400 18,500
Champion International 900 49,725
Mead Corp 500 31,125
Weyerhauser Co 800 41,600
---------------------
155,075
---------------------
HEALTH CARE PROVIDERS - 2.8%
Apria Healthcare Group * 700 12,425
Columbia / HCA Healthcare Corp 6,700 263,394
Health Care & Retirement Corp. * 500 16,688
Health Management Associates * 600 17,100
Tenet Healthcare Corp. * 3,300 97,556
United Healthcare Corp 2,300 119,600
---------------------
526,763
---------------------
HEAVY CONSTRUCTION - 0.0%
Foster Wheeler Corp 200 8,100
---------------------
HEAVY MACHINERY - 0.6%
Caterpiller Tractor, Inc 700 75,163
Cooper Industries, Inc 800 39,800
Harnischfeger Industries, Inc 200 8,300
---------------------
123,263
---------------------
HOME CONSTRUCTION, FURNISHINGS & APPLIANCES - 0.1%
Leggett & Platt, Inc 400 17,200
---------------------
HOUSEHOLD PRODUCTS - 3.0%
Black & Decker Corp 900 33,469
Procter & Gamble Co 3,300 466,125
Rubbermaid, Inc 1,200 35,700
Whirlpool Corp 800 43,650
---------------------
578,944
---------------------
INDUSTRIAL - DIVERSIFIED - 2.0%
Aeroquip-Vickers, Inc 200 9,450
Baker Hughes, Inc 500 19,344
Eastman Kodak Co 1,000 76,750
Fluor Corp 400 22,075
ITT Corp. * 900 54,956
ITT Industries, Inc 900 23,175
Temple Inland, Inc 500 27,000
Tenneco, Inc 1,100 49,706
Tyco Lab 1,400 97,388
---------------------
379,844
---------------------
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 3.7%
Aegon, N.V 91 $ 6,374
American International Group 2,100 313,688
Chubb Corp 400 26,750
General RE Corp 200 36,400
Hartford Financial Services Group, Inc 500 41,375
Marsh & McLennan Cos., Inc 800 57,100
MBIA, Inc 400 45,125
Ohio Casualty Corp 200 8,800
Progressive Corp 300 26,100
Safeco Corp 500 23,344
St. Paul Cos 300 22,875
The PMI Group, Inc 300 18,713
Transamerica Corp 600 56,138
Travelers, Inc 300 18,919
---------------------
701,701
---------------------
LODGING - 0.3%
Extended Stay America, Inc. * 500 7,875
Hilton Hotels Corp 2,200 58,438
---------------------
66,313
---------------------
MEDIA - BROADCASTING & PUBLISHING - 2.0%
Comcast Corp 1,500 32,063
R.R. Donnelley & Sons 1,200 43,950
TCI Satellite Entertainment Inc. Class A * 400 3,162
Time Warner, Inc 4,400 212,300
U.S. West Media Group * 4,800 97,200
---------------------
388,675
---------------------
MEDICAL SUPPLIES - 1.1%
Bausch & Lomb, Inc 500 23,563
Biomet, Inc 900 16,763
Boston Scientific Corp. * 1,600 98,300
Forest Laboratories Inc. * 400 16,575
Humana, Inc. * 2,100 48,563
---------------------
203,764
---------------------
METALS - 1.3%
Alcan Aluminum Ltd 200 6,938
Allegheny Teledyne, Inc 1,300 35,100
Aluminum Company of America 1,300 97,988
Bethlehem Steel Corp. * 900 9,394
Freeport McMoran Copper & Gold 1,200 35,100
Inland Steel Industries, Inc 400 10,450
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
METALS - CONTINUED
Nucor Corp 600 $ 33,900
Reynolds Metals Co 100 7,125
Worthington Industries, Inc 600 10,988
---------------------
246,983
---------------------
OFFICE EQUIPMENT - 1.7%
Bay Networks * 1,200 31,875
EMC Corp. * 1,400 54,600
Harris Corp., Inc 200 16,800
Hewlett-Packard Co 200 11,200
Ryder System 300 9,900
Xerox Corp 2,500 197,188
---------------------
321,563
---------------------
OIL & GAS - 9.5%
Amerada Hess Corp 700 38,894
Anadarko Petroleum Corp 500 30,000
Ashland, Inc 600 27,825
Chevron Corp 1,100 81,331
Cooper Cameron Corp. * 200 9,350
Diamond Offshore Drilling, Inc. * 300 23,438
Enron Corp 2,400 97,950
Exxon Corp 10,100 621,150
Mobil Corp 4,800 335,400
Pogo Producing Co 300 11,606
Royal Dutch Petroleum Co 1,800 391,500
Tosco Corp 1,100 32,931
Ultramar Diamond Shamrock Corp 300 9,788
Unocal Corp 1,500 58,219
Valero Energy Corp 400 14,500
Western Atlas, Inc. * 200 14,650
---------------------
1,798,532
---------------------
PHARMACEUTICALS - 7.7%
Alza Corp. * 800 23,200
American Home Products Corp 3,800 290,700
Bristol-Myers Squibb Co 300 24,300
Johnson & Johnson 700 45,063
Merck & Co., Inc 1,400 144,900
Pfizer, Inc 3,300 394,350
Schering - Plough Corp 4,000 191,500
Southtrust Corp 500 20,688
Warner Lambert Co 2,500 310,625
Watson Pharmaceutical, Inc. * 500 21,125
---------------------
1,466,451
---------------------
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
RETAILERS - 4.9%
Albertson's, Inc 1,200 $ 43,800
Circuit City Stores, Inc 600 21,338
Federated Department Stores, Inc. * 1,200 41,700
Gap Stores 1,400 54,425
General Nutrition Co., Inc. * 500 13,969
J.C. Penney Co., Inc 1,200 62,625
Kimberly-Clark Corp 1,500 74,625
Lowes Companies, Inc 600 22,275
May Department Stores 100 4,725
Nine West Group, Inc. * 200 7,638
Sears Roebuck 2,300 123,625
Toys "R" Us, Inc. Holding Co. * 1,600 56,000
Wal-Mart Stores, Inc 12,300 415,894
---------------------
942,639
---------------------
TELEPHONE SYSTEMS - 3.9%
AT&T Corporation 1,400 49,088
Bell Atlantic Corp 2,200 166,891
GTE Corporation 4,200 184,275
NYNEX Corp 1,200 69,150
Sprint Corp 2,400 126,300
Worldcom, Inc. * 4,900 156,800
---------------------
752,504
---------------------
TEXTILES, CLOTHING & FABRICS - 0.1%
Fruit of The Loom, Inc. * 600 18,600
---------------------
TRANSPORTATION - 1.0%
Burlington Northern Santa Fe 600 53,925
CNF Transportation, Inc 200 6,450
Consolidated Freightways Corp. * 100 1,638
CSX Corp 900 49,950
Norfolk Southern Corp 200 20,150
Union Pacific Corp 900 63,450
---------------------
195,563
---------------------
TOTAL Common and Preferred Stocks (Cost $15,090,300) 19,070,126
---------------------
TOTAL INVESTMENTS - 99.7%
(Cost $15,090,300) 19,070,126
Other Assets and Liabilities (net) - 0.3% 66,550
---------------------
TOTAL NET ASSETS - 100.0% $ 19,136,676
=====================
</TABLE>
See notes to financial statements
COVA SERIES TRUST
LARGE CAP STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO FOOTNOTES:
* Non-income producing security as this stock did not declare
or pay dividends in the last 12 month period.
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS - 92.9%
AUSTRALIA - 6.3%
Alcan Australia Ltd 17,600 $ 63,713
Amcor Ltd 14,600 96,296
Broken Hill Proprietary Co., Ltd 16,800 245,322
CRA Ltd 11,300 191,238
CSR Ltd 58,600 225,313
Email Ltd 27,100 96,276
Foster's Brewing Group Ltd 62,000 114,314
Leighton Holdings Ltd 13,400 64,789
Mayne Nickless Ltd 25,200 145,811
National Australia Bank Ltd 7,500 106,635
News Corporation Ltd 68,600 268,390
North Limited 32,500 123,012
Santos Ltd 30,300 126,494
Southcorp Holdings Ltd 37,100 137,920
Western Mining Corp. Holdings Ltd 60,200 376,751
Westpac Banking Corp 39,400 235,356
---------------------
2,617,630
---------------------
AUSTRIA - 0.2%
Creditanstalt-Bankverein 1,900 76,509
---------------------
BELGIUM - 2.4%
Arbed 375 43,307
Banque Bruxelles Lambert Ord 210 53,179
Credit Communal Holding/Dexia 1,260 135,520
Delhaize Le-Lion, SA 779 40,971
Electrabel 1,108 237,726
Fortis AG 740 153,004
Groupe Bruxelles Lambert SA 636 106,723
Petrofina SA NPV 445 168,725
Solvay Et Cie 'A' NPV 100 58,995
---------------------
998,150
---------------------
FINLAND - 0.5%
Outokumpo Oy 4,000 79,357
UPM-Kymmeme 4,700 110,446
---------------------
189,803
---------------------
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
FRANCE - 8.0%
Air Liquide French 662 $ 105,221
AXA Company 1,272 79,202
Canal Plus 420 81,853
Carrefour Supermarche 115 83,615
Christian Dior SA 926 153,019
Cie Generale Des Eaux 1,965 252,069
Compagnie De Saint Goban 1,284 187,460
Credit Commercial De France 2,543 107,872
Elf Sanofi 1,486 145,815
Eridania Beghin Say 610 91,448
Lagardere Groupe 3,270 95,092
Montupet 210 22,896
Pathe SA 290 57,605
Peugeot SA 1,005 97,247
Printemps AU 100 48,109
Promodes 440 171,578
Rhone Polenc 1,950 79,727
Salomon SA 1,000 76,337
Schneider SA 1,600 85,261
Seita 3,460 109,635
SGS-Thomson Microelectronics * 1,310 103,550
Sidel SA 800 62,010
Societe Generale French 1,370 153,104
Societe National Elf-Aquitaine 2,250 243,015
Synthelabo 1,469 191,445
Thomson CSF 2,384 61,489
Total Cie Francaise Petroles 2,092 211,695
Union Assurancesfederale SA 650 76,516
Usinor Sacilor 4,130 74,579
---------------------
3,308,464
---------------------
GERMANY - 12.9%
Allianz AG Holdings 800 167,595
Ava Allg Handels Der Verbrau * 620 177,926
BASF AG 2,430 89,889
Bayer AG 6,510 250,416
Bayer Hypoth-Und Wechsel Bank 8,080 243,703
Bilfinger and Berger Bau AG 2,140 87,207
Colonia Lebensversicherung AG 1,450 122,338
Continental 8,890 221,446
Deutsche Bank AG 2,950 172,533
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
GERMANY - CONTINUED
Deutsche Pfandbrief & Hypobk 1,350 $ 77,716
Deutsche Telekom AG 11,950 288,067
Dresdner Bank 3,940 136,361
GEA Preferred Shares 310 120,278
Henkel KGAA 2,400 136,371
Krupp Fried AG Hoesch 1,419 277,724
Lufthansa 8,200 157,430
Muenchener Rueckversicherungs (Warrants) * 100 35,298
Muenchener Rueckversicherungs * 122 342,409
M.A.N. AG 100 30,821
M.A.N. AG Preferred 274 69,668
PWA Corp 600 102,623
RWE AG 10,530 366,861
SAP AG Vorzug 850 176,606
SAP AG 300 60,265
Schering AG 870 93,052
Siemens AG 6,390 379,776
SKW Trostberg AG 3,270 109,795
Veba AG 8,230 462,917
Volkswagen AG 300 168,398
Volkswagen AG (Warrants) * 500 209,780
---------------------
5,335,269
---------------------
GREAT BRITAIN - 21.3%
Allied Colloids Group Plc 69,257 145,268
Allied Domecq Plc 13,850 99,487
Amersham International Plc 5,570 147,894
Bass Plc 13,100 159,849
British Airways Plc 15,800 180,039
British Petroleum Co. Plc 24,242 301,255
British Telecommunications Plc 44,400 329,651
BTR Limited 15,000 51,314
Burmah Castrol Plc 7,900 133,813
B.A.T. Industries 23,100 206,693
Cadbury Schweppes Plc 28,800 256,737
Compass Group Plc 11,800 132,299
Flextech Plc * 5,300 56,731
General Cable Plc * 18,600 50,625
General Electric Plc 17,800 106,378
Glaxo Wellcome Plc 28,400 586,241
Glynwed International Plc 48,100 186,968
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
GREAT BRITAIN - CONTINUED
Great Universal Stores Plc 23,300 $ 235,828
Guardian Royal Exchange 50,600 227,431
Guinness Plc 15,300 149,763
Hillsdown Holdings Plc 43,800 123,224
HSBC Holdings Plc (75P) 17,250 530,817
HSBC Holdings Plc 4,400 130,379
Kingfisher Plc 10,200 115,803
Lloyds Tdb Group Plc 34,000 348,655
Lucas Variety 40,500 140,234
MEPC Plc 21,900 179,733
National Westminster 2,600 34,950
Norwich Union Plc * 19,437 103,380
Pilkington Plc 50,600 115,400
Racal Electronics 19,900 80,169
Rank Group 20,150 127,634
Reed International Ltd 14,600 141,453
RMC Group Plc 8,350 135,597
Rolls Royce Plc 18,100 69,151
Royal Bank of Scotland 43,300 403,296
Safeway Plc 22,100 127,845
Sainsbury (J.) Plc 21,140 128,274
Scottish Power Plc 33,800 220,003
Sears Plc 82,300 91,793
Shell Transport & Trading 22,800 155,426
SmithKline Beecham Plc 4,051 74,552
Standard Chartered Plc 7,100 108,265
Tomkins Plc 28,900 125,086
United News & Media Plc 11,900 137,976
Vickers Plc 36,000 123,155
Vodafone Group Plc 76,200 371,037
Wessex Water Plc 32,600 218,976
Willis Corroon Group Plc 31,000 66,829
Zeneca Group Plc 10,550 348,793
---------------------
8,822,149
---------------------
HONG KONG - 2.8%
Bank of East Asia Hong Kong 80 334
Cheung Kong 26,000 256,751
Dickson Concepts International, Ltd 47,000 171,090
Henderson Land Development 11,000 97,621
Hong Kong Electric 35,000 140,961
HSBC Holdings Plc 4,000 120,308
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
HONG KONG - CONTINUED
Hutchison Whampoa 12,000 $ 103,785
New World Infrastructure Ltd. * 22,000 62,193
Sun Hung Kai Properties Ltd 6,000 72,223
Swire Pacific Ltd, Class A 16,500 148,561
---------------------
1,173,827
---------------------
IRELAND - 1.5%
Allied Irish Banks Plc 25,900 198,958
CRH Plc 7,575 79,383
Greencore Plc 5,000 22,565
Irish Life Plc 15,400 79,294
Smurfit (Jefferson) Group 47,800 138,986
Waterford Wedgewood (Units) 91,900 120,385
---------------------
639,571
---------------------
ITALY - 3.9%
ENI SPA 69,300 391,858
Fiat SPA 38,000 136,629
Istituto Mobiliare Italiano 19,000 170,082
Istituto Nazionale delle Assicurazioni 108,000 163,587
Mediaset SPA 21,000 88,728
Mediolanum Spa 7,000 78,957
Montedison SPA 176,600 116,912
Parmalat Finanziaria SPA 80,000 113,926
Stet D Risp Non CV 33,800 117,072
Telicom Italia SPA 81,200 260,656
---------------------
1,638,407
---------------------
JAPAN - 17.6%
Alpine Electronics, Inc 3,000 45,621
Aoyama Trading Co., Ltd 2,000 64,324
Asahi Bank Ltd 17,000 144,861
Asatsu Inc 3,200 118,581
Ashikaga Bank Ltd 22,000 80,755
Bridgestone Corp 1,000 23,248
Canon Sales Co., Inc 4,000 93,340
Central Glass Co., Ltd 17,000 49,624
Chuo Trust & Banking Co., Ltd 6,000 39,853
Cosmo Oil Co., Ltd 6,000 28,736
Dai-Ichi Kangyo Bank 3,000 40,902
Daiwa Bank 25,000 118,642
Daiwa Danchi Co., Ltd. * 5,000 20,626
DDI Corp 21 155,270
Ebaba Corp 9,000 135,291
Familymart 40 1,965
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
JAPAN - CONTINUED
Fanuc Co 1,000 $ 38,455
Fuji Electric Co 8,000 36,357
Fuji Photo Film 3,000 120,870
Fujitsu Ltd 8,000 111,169
Furukawa Co., Ltd 8,000 28,736
Hino Motors Ltd 4,000 25,520
Hitachi Cable Ltd 6,000 49,659
Hitachi Ltd 19,000 212,550
Ishihara Sangyo Kaisha * 20,000 59,255
Ito-Yokado Co., Ltd 1,000 58,119
Iyo Bank Ltd 10,000 71,841
Izumiya Co 6,000 96,487
Izumi 4,000 58,731
Japan Synthetic Rubber Co., Ltd 9,000 77,084
Japan Tobacco, Inc 25 197,736
Kawasaki Kisen 17,000 34,321
Kyocera Corp 3,000 238,595
Kyodo Printing Co 9,000 86,523
Long Term Credit Bank of Japan 14,000 60,566
Marubeni Corp 33,000 149,974
Matsushita Electric Industry 10,000 201,888
Mitsubishi Electric 27,000 151,259
Mitsubishi Heavy 25,000 192,056
Mitsui Fudosan Co., Ltd 7,000 96,661
Mitsui Trust & Banking 10,000 75,599
Murata Mfg. Co. Ltd 1,000 39,504
Nippon Express Co., Ltd 12,000 95,962
Nippon Oil Co., Ltd 6,000 32,879
Nippon Steel Corp 55,000 175,931
Nippon Telegraph and Telephone Corp 16 153,819
Nishimatsu Construction Co 7,000 48,942
Nissan Fire & Marine Insurance 15,000 82,590
Nissan Motors 36,000 279,706
Nomura Securities Co., Ltd 10,000 138,088
NSK Ltd 11,000 70,853
Oji Paper Co., Ltd 6,000 37,179
Ono Pharmaceutical 500 17,523
Promise Co., Ltd 1,400 80,266
Ricoh Corp., Ltd 2,000 26,219
Rohm Co 1,000 101,381
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
JAPAN - CONTINUED
Sakura Bank Ltd 28,000 $ 214,858
Sanki Engineering 2,000 20,276
Seiren Co., Ltd 23,000 105,532
Sekisui Chemical 5,000 50,690
Shin- Etsu Chemical Co. (Warrants) * 14 19,425
Shohkoh Fund & Co., Ltd 100 30,327
Sony Corp 1,600 139,696
Sumitomo Forestry 7,000 77,084
Sumitomo Trust & Banking 5,000 53,749
Tadano Ltd 7,000 49,799
Taisei Corp 19,000 88,175
The Bank of Tokyo Mitsubishi 4,000 80,406
Toda Construction Co 7,000 49,065
Tokai Bank 7,000 72,190
Tokio Marine & Fire Insurance 5,000 65,548
Tokyo Electric Power Co., Inc 5,700 120,058
Tokyo Steel, Mfg 2,000 22,374
Toppan Printing Co., Ltd 4,000 62,926
Topy Industries Co 5,000 18,353
Tostem Corp 4,000 110,820
Toyota Motor Co 12,000 354,483
West Japan Railway Co 53 207,979
Yamaha Motor Co., Ltd 2,000 19,927
Yamanouchi Pharmaceutical 4,000 107,673
Yokogawa Bridge Corp 300 2,124
Yokohyama Rubber Co., Ltd 20,000 85,649
---------------------
7,301,678
---------------------
MALAYSIA - 0.2%
Commerce Asset Holdings (Rights) * 3,380 872
Commerce Asset Holdings Berhad 8,900 23,455
Commerce Asset Holdings Berhad (Rights) * 2,112 2,109
IOI Corporation - Berhad 35,000 39,948
---------------------
66,384
---------------------
NETHERLANDS - 3.4%
Aegon, NV 1,650 115,273
Heineken NV 250 42,708
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS - CONTINUED
ING Groep NV 5,895 $ 272,054
Koninklijke Hoogovens 1,200 66,945
Philips Electronics NV 2,608 186,989
Royal Dutch Petroleum Co 9,860 513,364
Royal PTT Nederland NV 80 3,141
Unilever NV 650 136,961
Wolters Kluwer NV 670 81,657
---------------------
1,419,092
---------------------
NEW ZEALAND - 2.0%
Brierley Investments Ltd 92,500 90,310
Carter Holt Harvey Ltd 35,000 90,411
Fletcher Challenge Building 20,000 60,071
Fletcher Challenge Forestry 2,340 7,386
Fletcher Challenge Paper 38,500 93,188
Lion Nathan 47,200 119,366
Telecom New Zealand 75,000 381,375
---------------------
842,107
---------------------
NORWAY - 1.4%
Kvaerner B Free 2,500 139,997
Norsk Hydro 2,900 158,039
Nycomed ASA Class B 9,000 128,456
Orkla A/S-B-Aksjer 500 33,941
Uni-Storebrand AS Class A * 21,500 128,326
---------------------
588,759
---------------------
SINGAPORE - 1.5%
City Developments Ltd 8,000 78,360
Hotel Properties Ltd 38,000 64,605
Sembawang Maritime Ltd 12,000 37,613
Singapore Airlines Ltd 14,500 129,854
Singapore Press Holdings Ltd 3,000 60,449
Singapore Telecommunications, Ltd 32,000 59,106
United Overseas Bank 18,000 185,126
---------------------
615,113
---------------------
SPAIN - 1.8%
Acerinox, SA 200 37,501
Banco Bilbao Vizcaya 2,000 162,581
Banco Popular Espanola 380 93,161
Hidroelectrica Del Cantabrico 2,200 89,345
Iberdrola I.S.A 18,500 233,684
Repsol S.A 2,800 118,465
---------------------
734,737
---------------------
See notes to financial statements
COVA SERIES TRUST
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
SWEDEN - 0.7%
Autoliv, Inc. * 2,800 $ 107,761
Avesta-Sheffield AB 7,000 81,047
Scania AB Class B 3,000 91,590
---------------------
280,398
---------------------
Switzerland - 4.5%
Alusuis-Lonza Holdings 86 89,216
BIL GT AG - Part Schein 190 116,672
Fischer 75 104,460
Holderbank Finan Glaris Class B 75 70,961
Nestle 190 251,074
Novartis AG 331 536,885
Roche Holding AG 24 217,441
Schw Rueckversicherungs 70 99,177
UBS (Schw. Bank Gesellschaft) 200 229,160
Zurich Versicherungs-Gesellschaft 380 151,479
---------------------
1,866,525
---------------------
TOTAL Common and Preferred Stocks (Cost $35,160,587) 38,514,572
---------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PAR AMOUNT FOREIGN BONDS AND DEBT SECURITIES - 0.8% COUPON MATURITY
JAPAN - 0.8%
Y10,000,000 BOT Cayman Finance Ltd 4.25% 03/31/03 117,112
Y10,000,000 STB Cayman Capital Ltd 0.50% 10/01/07 86,490
Y10,000,000 Yamanouchi Pharmaceutical 1.25% 03/31/14 136,121
---------------------
339,723
---------------------
TOTAL Foreign Bonds and Debt Securities (Cost $298,079) 339,723
---------------------
TOTAL INVESTMENTS - 93.7%
(Cost $35,458,666) 38,854,295
Other Assets and Liabilities (net) - 6.3% 2,631,248
---------------------
TOTAL NET ASSETS - 100.0% $ 41,485,543
=====================
</TABLE>
PORTFOLIO FOOTNOTES:
* Non-income producing security as this stock did not declare
or pay dividends in the 12 month period.
Y - Japanese Yen
See notes to financial statements
COVA SERIES TRUST
BOND DEBENTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON AND PREFERRED STOCKS - 6.0%
CONTAINERS & PACKAGING - 0.6%
2,500 Crown Cork & Seal, Inc. Conv. Pref $ 126,250
---------------------
ELECTRIC UTILITIES - 0.4%
1,000 Cal Energy Capital Trust Conv. Pref 74,815
---------------------
ELECTRONICS - 0.0%
20 Exide Electronics Group (Warrants) * 103
---------------------
FINANCIAL SERVICES - 2.2%
1,000 American Bankers Insurance Conv. Pref. (Series B) 72,500
2,500 Frontier Financial Conv. Pref. (144A) ^ 187,893
70 Fuji International Finance Trust (144A) ^ 190,582
---------------------
450,975
---------------------
INDUSTRIAL - DIVERSIFIED - 0.6%
1,500 Corning Delaware Conv. Pref 130,500
---------------------
MEDIA - BROADCASTING & PUBLISHING - 1.6%
6,000 Evergreen Media Corp. Pref. (144A) *^ 327,162
---------------------
RESTAURANTS - 0.6%
2,200 Wendy's Financing Conv. Pref 128,975
---------------------
TOTAL Common and Preferred Stocks (Cost $1,123,236) 1,238,780
---------------------
DOMESTIC BONDS AND DEBT SECURITIES - 70.4%
ADVERTISING - 1.4%
$100,000 Lamar Advertising 9.625% 12/01/06 103,250
150,000 Omnicom Group, Inc. (144A) ^ 4.250% 01/03/07 182,178
---------------------
285,428
---------------------
AEROSPACE & DEFENSE - 0.7%
70,000 BE Aerospace 9.875% 02/01/06 74,200
60,000 UNC, Inc. (144A) ^ 11.000% 06/01/06 69,600
---------------------
143,800
---------------------
BANKING - 1.5%
300,000 Swiss Bank Corp. (Novartis) 2.500% 07/03/02 300,750
---------------------
BEVERAGES, FOOD & TOBACCO - 1.3%
100,000 Delta Beverage Group, Inc 9.750% 12/15/03 104,500
50,000 Doane Products Co 10.625% 03/01/06 53,000
100,000 MBW Foods, Inc. (144A) ^ 9.875% 02/15/07 101,750
---------------------
259,250
---------------------
CHEMICALS - 1.3%
50,000 Acetex Corp 9.750% 10/01/03 51,125
100,000 Agricultural Mining & Chemical 10.750% 09/30/03 108,500
100,000 Texas Petrochemical 11.125% 07/01/06 107,500
---------------------
267,125
---------------------
COMMERCIAL SERVICES - 3.7%
200,000 Dyncorp, Inc. (144A) ^ 9.500% 03/01/07 204,000
100,000 Iron Mountain 10.125% 10/01/06 107,000
100,000 Outsourcing Solutions, Inc 11.000% 11/01/06 109,500
300,000 Personnel Group of America, Inc 5.750% 07/01/04 321,000
---------------------
741,500
---------------------
See notes to financial statements
COVA SERIES TRUST
BOND DEBENTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -----------------------------------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS - 3.8%
$100,000 Cablevision Systems, Corp 9.250% 11/01/05 $ 103,250
250,000 Comcast Cellular 9.500% 05/01/07 251,868
100,000 Frontiervision 11.000% 10/15/06 105,250
75,000 MFS Communications Corp + 01/15/06 59,625
250,000 Synoptics Communications 5.250% 05/15/03 238,750
---------------------
758,743
---------------------
COMPUTER SOFTWARE & PROCESSING - 0.3%
100,000 Automatic Data Processing, Inc + 02/20/12 60,250
---------------------
COMPUTERS & INFORMATION - 3.7%
125,000 Data General Corp 6.000% 05/15/04 152,321
200,000 EMC Corp. (144A) ^ 3.250% 03/15/02 220,264
50,000 HMT Technology Corp 5.750% 01/15/04 42,879
150,000 National Data Corp 5.000% 11/01/03 159,188
150,000 Photronics, Inc 6.000% 06/01/04 163,688
---------------------
738,340
---------------------
CONTAINERS & PACKAGING - 2.7%
75,000 Four M Corp 12.000% 06/01/06 77,813
100,000 Owens-Illinois, Inc 10.000% 08/01/02 105,000
50,000 Printpack, Inc 9.875% 08/15/04 52,500
150,000 U.S. Can Corp. (Series B) 10.125% 10/15/06 160,875
150,000 Vicap SA 11.375% 05/15/07 157,875
---------------------
554,063
---------------------
COSMETICS & PERSONAL CARE - 1.0%
200,000 French Fragrances, Inc 10.375% 05/15/07 207,000
---------------------
ELECTRIC UTILITIES - 2.1%
125,000 Cal Energy 9.500% 09/15/06 134,375
300,000 Companhia Energetica Sao Paul (144A) ^ 9.125% 06/26/07 296,438
---------------------
430,813
---------------------
ELECTRONICS - 1.5
100,000 Atmel SA (144A) ^ 3.250% 06/01/02 107,063
20,000 Exide Electronics Group 11.500% 03/15/06 21,300
50,000 General Instrument Corp. Conv. Bond 5.000% 06/15/00 57,313
125,000 Tracor, Inc 8.500% 03/01/07 127,188
---------------------
312,864
---------------------
ENTERTAINMENT & LEISURE - 4.1%
145,000 Aztar Corp 11.000% 10/01/02 150,438
50,000 Majestic Star 12.750% 05/15/03 55,250
250,000 Riddell Sports, Inc 10.500% 07/15/07 256,875
50,000 Showboat Marina Casino 13.500% 03/15/03 57,250
100,000 TV Azteca SA (144A) ^ 10.500% 02/15/07 103,000
100,000 Trump Atlantic City 11.250% 05/01/06 98,000
100,000 Viacom International 8.000% 07/07/06 96,750
---------------------
817,563
---------------------
ENVIRONMENTAL CONTROLS - 0.7%
50,000 USA Waste Services, Inc 4.000% 02/01/02 54,063
100,000 WMX Technologies, Inc 2.000% 01/24/05 93,125
---------------------
147,188
---------------------
FINANCIAL SERVICES - 3.1%
300,000 Navistar Financial Corp 9.000% 06/01/02 309,000
150,000 Ocwen Financial Corp 11.875% 10/01/03 164,250
150,000 Pioneer America Corp 9.250% 06/15/07 148,500
---------------------
621,750
---------------------
See notes to financial statements
COVA SERIES TRUST
BOND DEBENTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -----------------------------------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER - 3.4%
$100,000 Pacific Lumber Co 10.500% 03/01/03 103,500
100,000 SD Warren Co 12.000% 12/15/04 111,750
120,000 Sweetheart Cup 10.500% 09/01/03 120,000
350,000 Voto-Votorantim O/S Trad (144A) ^ 8.500% 06/27/05 348,688
---------------------
683,938
---------------------
HEALTH CARE PROVIDERS - 2.0%
100,000 Integrated Health (144A) ^ 10.250% 04/30/06 107,000
125,000 Integrated Health 9.500% 09/15/07 128,750
175,000 Leiner Health Products Group 9.625% 07/10/07 177,844
---------------------
413,594
---------------------
HEAVY CONSTRUCTION - 1.0%
200,000 American Builders & Contractors 10.625% 05/15/07 207,000
---------------------
HEAVY MACHINERY - 0.5%
100,000 Tokheim Corp. (Series B) 11.500% 08/01/06 110,500
---------------------
HOME CONSTRUCTION, FURNISHINGS & APPLIANCES - 3.3%
500,000 Falcon Building Products (144A) ^ 0%,10.500%++ 06/15/07 302,500
335,000 Interface, Inc 9.500% 11/15/05 351,750
---------------------
654,250
---------------------
HOUSEHOLD PRODUCTS - 0.8%
150,000 Rayovac Corp 10.250% 11/01/06 157,500
---------------------
INDUSTRIAL - 0.7%
150,000 Fonda Group, Inc 9.500% 03/01/07 144,750
---------------------
INDUSTRIAL - DIVERSIFIED - 2.6%
100,000 Baker Hughes, Inc + 05/05/08 79,250
20,000 Essex Group 10.000% 05/01/03 21,200
100,000 Euramax International PLC 11.250% 10/01/06 108,000
50,000 Safelite Glass (144A) ^ 9.875% 12/15/06 53,125
250,000 Viasystems, Inc 9.750% 06/01/07 255,000
---------------------
516,575
---------------------
MEDIA - BROADCASTING & PUBLISHING - 3.6%
100,000 Chancellor Radio 9.375% 10/01/04 104,250
100,000 Heritage Media Corp 8.750% 02/15/06 103,500
200,000 L-3 Communications Corp. (144A) ^ 10.375% 05/01/07 213,000
200,000 Sinclair Broadcast Group, Inc. (144A) ^ 9.000% 07/15/07 195,000
250,000 Times Mirror Co. (144A) ^ + 04/15/17 100,313
---------------------
716,063
---------------------
MEDICAL & BIO-TECHNOLOGY - 1.2%
100,000 LDM Technologies, Inc 10.750% 01/15/07 106,250
135,000 Packard Bioscience Co. (144A) ^ 9.375% 03/01/07 138,038
---------------------
244,288
---------------------
METALS - 1.1%
200,000 Westmin Resources Ltd 11.000% 03/15/07 209,750
---------------------
MISCELLANEOUS - 0.5%
100,000 Prime Succession Acquisition Co 10.750% 08/15/04 109,500
---------------------
OIL & GAS - 8.5%
100,000 Amerigas Partners 10.125% 04/15/07 105,500
100,000 Comp Nav Perez Companc (144A) ^ 9.000% 01/30/04 104,125
200,000 Cross Timbers Oil Co 9.250% 04/01/07 206,500
See notes to financial statements
COVA SERIES TRUST
BOND DEBENTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -----------------------------------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
OIL & GAS - CONTINUED
$150,000 Dawson Production Services, Inc 9.375% 02/01/07 $ 153,000
100,000 Diamond Offshore Drilling, Inc 3.750% 02/15/07 115,563
125,000 Flores & Rucks, Inc 9.750% 10/01/06 132,500
100,000 H.S. Resources, Inc 9.250% 11/15/06 101,500
150,000 Lomak Petroleum, Inc 8.750% 01/15/07 148,500
70,000 Mesa Operating Co 10.625% 07/01/06 79,888
50,000 Pennzoil Co. Convertible 4.750% 10/01/03 63,875
250,000 Pogo Producing Co 8.750% 05/15/07 252,500
50,000 Pogo Producing Co. Convertible 5.500% 06/15/06 55,875
100,000 Swift Energy Co 6.250% 11/15/06 100,875
100,000 Vintage Petroleum, Inc 8.625% 02/01/09 99,500
---------------------
1,719,701
---------------------
PHARMACEUTICALS - 2.7%
200,000 Alza Corp 5.000% 05/01/06 202,750
500,000 Roche Holdings, Inc. (144A) ^ + 04/20/10 253,750
100,000 Synetic, Inc 5.000% 02/15/07 87,918
---------------------
544,418
---------------------
RESTAURANTS - 0.5%
100,000 Ameriking, Inc. (144A) ^ 10.750% 12/01/06 104,750
---------------------
RETAILERS - 2.3%
100,000 Home Depot, Inc 3.250% 10/01/01 113,500
100,000 Pep Boys 4.000% 09/01/99 102,750
250,000 Specialty Retailers, Inc 9.000% 07/15/07 252,500
---------------------
468,750
---------------------
TEXTILES, CLOTHING & FABRICS - 1.2%
135,000 Guess ?, Inc 9.500% 08/15/03 138,375
100,000 William Carter 10.375% 12/01/06 106,000
---------------------
244,375
---------------------
TRANSPORTATION - 1.6%
150,000 Atlantic Express, Inc 10.750% 02/01/04 157,500
150,000 Ryder TRS, Inc 10.000% 12/01/06 155,250
---------------------
312,750
---------------------
TOTAL Domestic Bonds and Debt Securities (Cost $13,567,286) 14,208,879
---------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 17.7%
1,500,000 Federal National Mortgage Association 8.500% 02/01/05 1,562,579
1,998,298 Federal National Mortgage Association 7.500% 05/01/27 2,003,913
---------------------
TOTAL U.S. Government Agency Obligations (Cost $3,552,372) 3,566,492
---------------------
TOTAL INVESTMENTS - 94.1%
(Cost $18,242,894) 19,014,151
Other Assets and Liabilities (net) - 5.9% 1,181,280
---------------------
TOTAL NET ASSETS - 100.0% $ 20,195,431
=====================
</TABLE>
See notes to financial statements
COVA SERIES TRUST
BOND DEBENTURE PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO FOOTNOTES:
* Non-income producing security as this stock did not declare
or pay dividends in the last 12 month period.
^ Securities that may be resold to "qualified institutional buyers"
under Rule 144A or securities offered pursuant to Section 4(2) of
the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by
the Board of Trustees.
+ Zero coupon bond
++ Security is a "step-up" bond where the coupon increases or
steps up at a predetermined date.
See notes to financial statements
COVA SERIES TRUST
BOND DEBENTURE PORTFOLIO
PORTFOLIO COMPOSITION BY CREDIT QUALITY
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
The following table summarizes the portfolio composition at June 30, 1997,
based upon quality ratings issued by Standard & Poor's. For securities not rated
by Standard & Poor's, the Moody rating is used.
PORTFOLIO COMPOSITION BY CREDIT QUALITY
- --------------------------------------------------------------------------------
RATINGS % OF PORFOLIO
U.S. Gov't and Agency Obligations 18.%
AAA 1.3
AA 1.9
A 3.7
BBB 7.4
BB 10.0
B 55.3
NR 1.6
---------
100.%
---------
Note: NR = Not Rated
See notes to financial statements
COVA SERIES TRUST
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PAR SECURITY VALUE
AMOUNT DESCRIPTION RATE MATURITY (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS - 100.7%
BANKERS ACCEPTANCE - 13.7%
$2,000,000 Bank of Tokyo Ltd., N.Y 5.630% 08/05/97 $1,989,053
1,000,000 Chase Manhattan Corp 5.560% 07/07/97 999,073
2,000,000 Northern Trust Co 5.550% 07/18/97 1,994,758
2,000,000 Sanwa Bank Ltd. N.Y 5.580% 08/01/97 1,990,390
1,500,000 Union Bank of California 5.540% 09/15/97 1,482,457
----------------------
8,455,731
----------------------
COMMERCIAL PAPER - 37.9%
1,500,000 American Express Credit Corp 5.540% 03/10/98 1,441,830
2,000,000 Associates Corp. of North America 5.540% 08/25/97 1,983,072
2,500,000 Chevron UK Invt 5.570% 07/15/97 2,494,585
1,500,000 CIT Group Holdings, Inc 5.560% 08/11/97 1,490,502
2,500,000 Commercial Credit Co 5.560% 07/11/97 2,496,139
2,000,000 Ford Motor Credit Co 5.530% 07/14/97 1,996,006
2,000,000 General Electric Capital Corp 5.630% 07/07/97 1,998,123
2,500,000 Heller Financial 5.670% 08/01/97 2,487,794
2,500,000 IBM Credit Corp 5.560% 07/30/97 2,488,803
2,000,000 John Deere Capital Corp 5.520% 07/14/97 1,996,013
2,500,000 Norwest Financial, Inc 5.550% 09/22/97 2,468,010
----------------------
23,340,877
----------------------
MUNICIPAL OBLIGATIONS - 4.1%
530,000 Chicago Ill. Public Building Commission Special Obligation 5.820% 07/01/97 530,000
2,000,000 New York, New York (Municipal) Taxable 5.550%# 09/03/97 2,000,000
----------------------
2,530,000
----------------------
U.S. GOVERNMENT AGENCIES - 28.3%
3,000,000 Federal Farm Credit Bank 5.450% 07/08/97 2,996,821
2,000,000 Federal Home Loan Bank 6.110% 06/12/98 2,000,000
1,500,000 Federal Home Loan Bank 5.750% 02/27/98 1,500,000
2,500,000 Federal Home Loan Mortgage Corp 5.480% 07/23/97 2,491,628
2,000,000 Federal Home Loan Mortgage Corp 5.460% 07/18/97 1,994,843
2,000,000 Federal Home Loan Mortgage Corp 5.500% 07/02/97 1,999,695
2,000,000 Federal National Mortgage Association 5.450% 07/10/97 1,997,275
2,500,000 Federal National Mortgage Association 5.830% 09/15/97 2,500,000
----------------------
17,480,262
----------------------
VARIABLE RATE DEMAND OBLIGATIONS - 10.4%
1,200,000 Baptist Health System of South Florida 5.600%# 05/15/25 1,200,000
2,500,000 Dade Cnty Fla Expwy Authority 5.600%# 07/01/19 2,500,000
1,000,000 Health Insurance Plan Gr New York 5.600%# 07/01/20 1,000,000
1,500,000 Mississippi Business Financial Corp 5.750%# 02/01/19 1,500,000
220,000 Student Loan Marketing Association (Floater) 5.420%# 11/20/97 219,259
----------------------
6,419,259
----------------------
REPURCHASE AGREEMENT - 6.3%
J.P Morgan Repurchase Agreement at 5.90% due 7/01/97,
collaterized by U.S. Treasury Note, $3,913,000 par, 5.50% coupon,
due 09/30/97, repurchase proceeds of $3,889,637 (Cost $3,889,000). 3,889,000
----------------------
TOTAL Short-Term Investments (Cost $62,115,129) 62,115,129
----------------------
See notes to financial statements
COVA SERIES TRUST
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------------
VALUE
(NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.7%
(Cost $62,115,129) $ 62,115,129
Other Assets and Liabilities (net) - (0.7)% (434,058)
----------------------
TOTAL NET ASSETS - 100.0% $ 61,681,071
======================
PORTFOLIO FOOTNOTES:
# Variable rate security. Interest rates reset either daily or weekly.
The rate shown represents the rate in effect at June 30, 1997.
</TABLE>
See notes to financial statements
COVA SERIES TRUST
QUALITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PAR SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DOMESTIC BONDS AND DEBT SECURITIES - 81.2%
ASSET BACKED SECURITIES - 4.9%
$1,000,000 American Express Master Trust 5.375% 07/15/01 $ 968,470
1,000,000 MBNA Master Credit Card Trust 6.600% 11/15/04 999,413
500,000 Signet Credit Card Master Trust 1994-4 A 6.800% 12/15/00 501,560
----------------------
2,469,443
----------------------
CORPORATE BONDS - 69.4%
1,000,000 Advanta Bank Corp 6.520% 04/30/98 996,780
1,000,000 American Annuity Group, Inc 7.250% 09/28/01 1,006,520
1,000,000 AT&T Capital Corp 6.390% 01/22/99 1,001,197
2,000,000 Bank of New York 8.500% 12/15/04 2,165,238
2,000,000 Chase Manhattan Corp - New 9.750% 11/01/01 2,223,724
2,000,000 Chrysler Corp 7.450% 03/01/27 1,990,170
2,000,000 Columbia / HCA Healthcare Corp 6.630% 07/15/45 1,990,764
1,000,000 Delta Air Lines, Inc 10.500% 04/30/16 1,259,290
1,000,000 Federated Department Stores, Inc 8.125% 10/15/02 1,046,120
1,000,000 General Electric Capital Corp 5.800% 04/01/08 1,074,711
1,000,000 Hilton Hotels Corp 7.375% 06/01/02 1,008,270
3,000,000 LCI International, Inc 7.250% 06/15/07 2,976,990
2,000,000 Lehman Brothers, Inc 6.840% 10/07/99 2,008,314
2,000,000 NGC Corp. Capital Trust 8.316% 06/01/27 2,075,820
1,000,000 Norfolk Southern Corp 7.800% 05/15/27 1,030,580
1,000,000 Orion Capital Trust I 8.730% 01/01/37 1,019,124
2,000,000 Paine Webber Group 7.875% 02/15/03 2,068,900
2,000,000 Panenergy Corp 7.000% 10/15/06 1,997,150
1,000,000 Polaroid Corp 6.750% 01/15/02 990,770
1,000,000 Tosco Corp 7.625% 05/15/06 1,032,282
1,000,000 Weatherford Enterra, Inc 7.250% 05/15/06 1,007,258
1,000,000 Worldcom, Inc 7.750% 04/01/27 1,051,650
2,200,000 Yale University 7.375% 04/15/26 2,198,148
----------------------
35,219,770
----------------------
MORTGAGED BACK SECURITIES - 5.6%
417,823 Citicorp Mortgage Securities 6.250% 08/25/24 417,176
2,000,000 Federal Home Loan Mortgage Corp.- Global Bond 7.256% 09/17/01 2,020,276
51,722 Federal Home Loan Mortgage Corp 8.000% 09/01/08 52,966
53,242 Federal National Mortgage Association 8.000% 09/01/03 54,790
54,975 Federal National Mortgage Association 8.500% 07/01/19 57,071
100,000 Federal National Mortgage Association 7.500% 12/25/19 101,183
115,057 Government National Mortgage Association 9.000% 01/15/20 121,636
----------------------
2,825,098
----------------------
GOVERNMENT AND AGENCY OBLIGATIONS - 1.3%
158,191 Federal Home Loan Bank 4.140% 06/04/98 156,101
500,000 U.S. Treasury Note (a) 6.500% 05/31/02 502,031
----------------------
658,132
----------------------
TOTAL Domestic Bonds and Debt Securities (Cost $40,728,686) 41,172,443
----------------------
FOREIGN BONDS AND DEBT SECURITIES - 18.1%
AUSTRALIA - 4.0%
$2,000,000 Commonwealth Bank of Australia 7.125% 07/10/06 2,030,000
----------------------
BELGIUM - 2.0%
$1,000,000 Soc National Belges 8.250% 02/02/00 1,039,174
----------------------
See notes to financial statements
COVA SERIES TRUST
QUALITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------------------------------------------------------
PAR SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -------------------------------------------------------------------------------------------------------------------------------
CANADA - 1.3%
$600,000 Hydro - Quebec 13.250% 12/15/13 $ 682,926
----------------------
CHANNEL ISLANDS - 1.9%
$1,000,000 Enersis, SA 6.900% 12/01/06 973,680
----------------------
GREAT BRITAIN - 3.9%
$1,000,000 Rolls-Royce Capital, Inc 7.125% 07/29/03 998,475
$1,000,000 SmithKline Beecham Cap 6.750% 10/30/01 1,001,875
----------------------
2,000,350
----------------------
MALAYSIA - 2.0%
$1,000,000 Petroliam Nasional Berhd (144A) ^ 7.625% 10/15/26 1,003,916
----------------------
NORWAY - 3.0%
$1,500,000 Petroleum Geo-Services 7.500% 03/31/07 1,520,405
----------------------
TOTAL Foreign Bonds and Debt Securities (Cost $9,207,650) 9,250,451
----------------------
TOTAL INVESTMENTS - 99.3%
(Cost $49,936,336) 50,422,894
Other Assets and Liabilities (net) - 0.7% 340,099
----------------------
TOTAL NET ASSETS - 100.0% $ 50,762,993
======================
</TABLE>
PORTFOLIO FOOTNOTES:
^ Securities that may be resold to "qualified institutional buyers"
under Rule 144A or securities offered pursuant to Section 4(2) of
the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by
the Board of Trustees.
(a) Assets segregated for open futures
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS - 94.0%
AEROSPACE & DEFENSE - 2.0%
AlliedSignal, Inc 2,800 $ 235,200
Boeing Co 7,000 371,438
General Dynamics 900 67,500
Lockheed Martin Corp 2,000 207,125
McDonnell Douglas Corp 2,100 143,850
Northrop Grumman Corp 800 70,250
Raytheon Co 2,700 137,700
United Technologies 2,400 199,200
---------------------
1,432,263
---------------------
AIRLINES - 0.3%
AMR Corp. * 1,100 101,750
Delta Air Lines, Inc 1,000 82,000
---------------------
183,750
---------------------
AUTOMOTIVE - 2.2%
Autoliv, Inc 613 23,984
Chrysler Corp 7,200 236,250
Dana Corp 1,800 68,400
Ford Motor Co 11,700 441,675
General Motors Corp 7,500 417,656
Genuine Parts 2,800 94,850
Goodyear Tire & Rubber Co 1,800 113,963
Paccar, Inc 1,200 55,725
TRW, Inc 1,500 85,219
---------------------
1,537,722
---------------------
BANKING - 7.1%
Banc One Corp 4,300 208,281
Bank of New York 3,900 169,650
Bankamerica Corp 6,800 439,025
BankBoston Corp 1,600 115,300
Bankers Trust New York Corp 1,000 87,000
Barnett Banks, Inc 2,200 115,500
Chase Manhattan Corp 4,100 397,956
Citicorp 4,400 530,475
Comerica, Inc 1,300 88,400
Corestates Financial Corp 2,400 129,000
Fifth Third Bancorp 1,200 98,475
First Bank System, Inc 1,500 128,063
First Chicago NBD Corp 3,200 193,600
First Union Corp. (New England) 2,800 259,000
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTNUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
BANKING - CONTINUED
Fleet Financial Group, Inc 2,600 $ 164,450
Great Western Financial 1,500 80,625
H F Ahmanson & Co 1,700 73,100
KeyCorp 2,400 134,100
Mellon Bank Corp 2,800 126,350
National City Corp 2,400 126,000
Nationsbank Corp 7,400 477,300
Norwest Corp 3,700 208,125
PNC Bank Corp 3,400 141,525
Suntrust Banks, Inc 2,400 132,150
U.S. Bancorp 1,600 102,600
Wachovia Corp 1,800 104,963
Wells Fargo & Co 900 242,550
---------------------
5,073,563
---------------------
BEVERAGES, FOOD & TOBACCO - 7.7%
Anheuser Busch 4,900 205,494
Archer Daniels Midland 5,600 131,600
Campbell Soup Co 4,500 225,000
Coca-Cola Co 24,400 1,647,000
Conagra, Inc 2,300 147,488
CPC International, Inc 1,400 129,238
Gallaher Group PLC (ADR) * 2,000 36,875
General Mills Co 1,700 110,713
Heinz (H.J.), Co 3,600 166,050
Hershey Foods Corp 1,600 88,500
Kellogg Co 2,100 179,813
Pepsico, Inc 15,200 570,950
Philip Morris Companies, Inc 23,800 1,056,125
Pioneer Hi-Bred International 900 72,000
Quaker Oats Co 1,700 76,288
Ralston Purina Group 1,200 98,625
Sara Lee Corp 4,700 195,638
Seagrams Co. Ltd 3,800 152,950
Sysco Corp 2,300 83,950
UST, Inc 2,700 74,925
Wrigley William Jr. Co 1,300 87,100
---------------------
5,536,322
---------------------
BUILDING MATERIALS - 0.1%
Masco Corp 2,000 83,500
---------------------
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 2.8%
Air Products & Chemicals 1,300 $ 105,625
Dow Chemical Co 2,500 217,813
Du Pont (E.I.) De Nemours 11,000 691,625
Eastman Chemical Co 1,200 76,200
Grace W.R. & Co 1,100 60,638
Hercules, Inc 1,400 67,025
International Flavors & Fragrances 1,500 75,750
Monsanto Co 5,800 249,763
Morton International, Inc 1,800 54,338
PPG Industries 2,100 122,063
Praxair, Inc 1,800 100,800
Rohm & Haas Co 800 72,050
Union Carbide Corp 1,500 70,594
---------------------
1,964,284
---------------------
COMMERCIAL SERVICES - 0.6%
CUC International, Inc. * 4,400 113,575
HFS, Inc. * 1,500 87,000
Interpublic Group, Inc 1,100 67,444
Laidlaw Inc. Class B 4,100 56,631
Service Corp. International 2,700 88,763
---------------------
413,413
---------------------
COMMUNICATIONS - 1.5%
DSC Communications * 1,400 31,150
General Instrument Corp. * 1,700 42,500
Lucent Technologies 6,400 461,200
Motorola, Inc 5,900 448,400
Tellabs, Inc. * 1,900 106,163
---------------------
1,089,413
---------------------
COMPUTER SOFTWARE & PROCESSING - 4.6%
3 Com Corporation * 1,900 85,500
Automatic Data Processing, Inc 3,200 150,400
Bay Networks * 2,400 63,750
Cabletron Systems, Inc. * 1,900 53,794
Cisco Systems, Inc. * 6,600 443,025
Cognizant Corp 2,100 85,050
Computer Associates International, Inc 3,700 206,044
Computer Sciences Corp. * 1,000 72,125
First Data Corp 4,800 210,900
Microsoft Corp. * 11,800 1,491,225
Novell Inc. * 4,600 31,913
Oracle Corp. * 6,700 337,513
Parametric Technology Co. * 1,500 63,797
---------------------
3,295,036
---------------------
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & INFORMATION - 3.2%
Apple Computer, Inc. * 1,800 $ 25,650
Compaq Computer * 2,700 267,975
Dell Computer Corp. * 1,700 199,644
Digital Equipment Corp. * 1,900 67,331
Hewlett-Packard Co 10,000 560,000
International Business Machines Corp 10,200 919,913
Seagate Technology, Inc * 2,500 87,969
Silicon Graphics * 2,400 36,000
Sun Microsystems, Inc. * 3,800 141,431
---------------------
2,305,913
---------------------
CONTAINERS & PACKAGING - 0.1%
Crown Cork & Seal, Inc 1,500 80,156
---------------------
COSMETICS & PERSONAL CARE - 0.9%
Avon Products, Inc 1,600 112,900
Gillette Co 5,400 511,650
---------------------
624,550
---------------------
ELECTRIC UTILITIES - 2.3%
American Electric Power Co 2,300 96,600
Consolidated Edison of N.Y 3,400 100,088
Dominion Resources, Inc 2,600 95,225
Duke Power Co 4,175 200,162
Edison International 4,800 119,400
Entergy Corp 3,700 101,288
FPL Group,Inc 2,200 101,338
Houston Industries, Inc 4,100 87,894
Pacificorp 4,100 90,200
Peco Energy Co 4,500 94,500
Public Service Enterprise Group, Inc 3,600 90,000
P.G. & E. Corp 4,800 116,400
Southern Company 7,200 157,500
Texas Utilities Co 3,000 103,279
Unicom Corp 3,900 86,775
---------------------
1,640,649
---------------------
ELECTRICAL EQUIPMENT - 4.4%
AMP Inc 2,600 108,550
Applied Materials, Inc. * 1,900 134,544
Emerson Electric 4,600 253,288
General Electric Co 31,800 2,078,925
Grainger (W.W.), Inc 800 62,550
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - CONTINUED
Northern Telecom Ltd 2,700 $ 245,700
Rockwell International Corp 2,300 135,700
Westinghouse Electric 6,400 148,000
---------------------
3,167,257
---------------------
ELECTRONICS - 2.3%
Advanced Micro Devices * 1,400 50,400
Honeywell, Inc 1,400 106,225
Intel Corporation 8,100 1,148,681
LSI Logic Corp. * 1,500 48,000
Micron Technology, Inc 2,200 87,863
National Semiconductor Corp. * 1,600 49,000
Texas Instruments 1,900 159,719
---------------------
1,649,888
---------------------
ENTERTAINMENT & LEISURE - 1.5%
Brunswick Corp., Inc 1,600 50,000
Mattel, Inc 3,300 111,788
Time Warner, Inc 5,600 270,200
Viacom Inc. Class B * 3,800 114,000
Walt Disney Company 6,500 521,625
---------------------
1,067,613
---------------------
ENVIRONMENTAL CONTROLS - 0.3%
Browning-Ferris Industries, Inc 2,500 83,125
Waste Management, Inc 4,700 150,988
---------------------
234,113
---------------------
FINANCIAL SERVICES - 3.2%
American Express Co 5,100 379,950
American General Corp 2,700 128,925
Block, (H.& R.), Inc 1,500 48,375
Federal Home Loan Mortgage Corp 8,000 275,000
Federal National Mortgage Association 11,800 514,775
Green Tree Financial Corp 1,900 67,688
Household International, Inc 1,000 117,438
J P Morgan & Co., Inc 1,800 187,875
MBNA Corp 3,500 128,188
Merrill Lynch & Co., Inc 3,200 190,800
MGIC Investment Corp 1,800 86,288
Providian Financial Corp 1,300 41,763
Salomon, Inc 1,600 89,000
---------------------
2,256,065
---------------------
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER - 0.8%
Champion International 1,300 $ 71,825
Georgia-Pacific Corp 1,100 93,913
International Paper Co 3,300 160,256
Mead Corp 1,100 68,475
Weyerhauser Co 2,200 114,400
Willamette Industries, Inc 800 56,000
---------------------
564,869
---------------------
HEALTH CARE PROVIDERS - 0.9%
Columbia / HCA Healthcare Corp 6,800 267,325
Healthsouth Corp. * 3,600 89,775
Humana, Inc. * 2,100 48,563
Tenet Healthcare Corp. * 3,300 97,556
United Healthcare Corp 2,000 104,000
---------------------
607,219
---------------------
HEAVY MACHINERY - 1.0%
Case Corp 1,100 75,763
Caterpiller Tractor, Inc 2,000 214,750
Cooper Industries, Inc 1,600 79,600
Deere & Co 2,800 153,650
Dover Corp 1,400 86,100
Ingersoll Rand Co 1,500 92,625
---------------------
702,488
---------------------
HOUSEHOLD PRODUCTS - 3.0%
Black & Decker Corp 1,400 52,063
Clorox Co 600 79,200
Colgate-Palmolive Co 2,800 182,700
Fortune Brands, Inc 2,000 74,625
Kimberly-Clark Corp 5,700 283,575
Newell Co 1,900 75,288
Procter & Gamble Co 6,500 918,125
Rubbermaid, Inc 2,200 65,450
Stanley Works 1,200 48,000
Unilever (ADR) 1,500 327,000
Whirlpool Corp 1,200 65,475
---------------------
2,171,501
---------------------
INDUSTRIAL - DIVERSIFIED - 1.8%
Avery-Dennison Corp 1,500 60,188
Corning, Inc 2,400 133,500
Eastman Kodak Co 3,400 260,950
Eaton Corp 1,100 96,044
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - DIVERSIFIED - CONTINUED
Fluor Corp 1,000 $ 55,188
Illinois Tool Works, Inc 2,800 139,825
Pall Corp 1,900 44,175
Parker-Hannifin Corp 1,100 66,756
Tenneco, Inc 2,200 99,413
Textron, Inc 1,800 119,475
Thermo Electron Corp. * 1,900 65,313
Tyco International Ltd 1,800 125,213
---------------------
1,266,040
---------------------
INSURANCE - 4.1%
Aegon, N.V 565 39,567
Aetna, Inc 1,600 163,800
Allstate Corp 4,400 321,200
American International Group 4,400 657,250
Aon Corp 1,950 100,913
Chubb Corp 1,800 120,375
Cigna Corp 800 142,000
Conseco, Inc 1,800 66,600
General RE Corp 800 145,600
Hartford Financial Services Group, Inc 1,400 115,850
Lincoln National Corp 1,200 77,250
Loews Corp 1,200 120,150
Marsh & McLennan Cos., Inc 1,800 128,475
Safeco Corp 1,700 79,369
St. Paul Cos 1,000 76,250
Transamerica Corp 900 84,206
Travelers, Inc 6,200 390,988
Unum Corp 1,800 75,600
---------------------
2,905,443
---------------------
LODGING - 0.4%
Hilton Hotels Corp 2,900 77,031
ITT Corp. * 1,300 79,381
Marriott International, Inc 1,700 104,338
---------------------
260,750
---------------------
MEDIA - BROADCASTING & PUBLISHING - 1.3%
Comcast Corp 3,700 79,088
Dow Jones & Co., Inc 1,400 56,263
Gannett Co., Inc 1,500 148,125
McGraw-Hill Companies, Inc 1,400 82,338
New York Times Co 1,300 64,350
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
MEDIA - BROADCASTING & PUBLISHING - CONTINUED
R.R. Donnelley & Sons 2,000 $ 73,250
Tele-Communications, Inc. (Series A) * 7,300 108,588
Times Mirror Co. Class A 1,300 71,825
Tribune Co 1,600 76,900
U.S. West Media Group * 6,800 137,700
---------------------
898,427
---------------------
MEDICAL SUPPLIES - 1.0%
Baxter International, Inc 3,000 156,750
Becton Dickinson & Co 1,600 81,000
Boston Scientific Corp. * 2,200 135,163
Guidant Corp 900 76,500
Medtronic, Inc 2,500 202,500
United States Surgical Corp 1,000 37,250
---------------------
689,163
---------------------
METALS - 1.1%
Alcan Aluminum Ltd 2,400 83,250
Allegheny Teledyne, Inc 2,200 59,400
Aluminum Company of America 1,700 128,138
Barrick Gold Corp 4,200 92,400
Freeport-McMoran 2,800 87,150
Nucor Corp 1,100 62,150
Phelps Dodge Corp 800 68,150
Placer Dome, Inc 3,400 55,675
Reynolds Metals Co 1,000 71,250
USX - U.S. Steel Group Inc 1,500 52,594
---------------------
760,157
---------------------
MINING - 0.8%
Cyprus Amax Minerals Co 1,800 44,100
Inco, Ltd 2,100 63,131
Minnesota Mining & Manufacturing 4,100 418,200
Newmont Mining 1,600 62,400
---------------------
587,831
---------------------
OFFICE EQUIPMENT - 0.7%
EMC Corp. / Mass. * 2,600 101,400
IKON Office Solutions, Inc 1,800 44,888
Pitney Bowes, Inc 1,800 125,100
Xerox Corp 3,300 260,288
---------------------
531,676
---------------------
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
OIL & GAS - 8.9%
Amerada Hess Corp 1,400 $ 77,788
Amoco Corp 4,800 417,300
Ashland, Inc 1,200 55,650
Atlantic Richfield Co 3,200 225,600
Baker Hughes, Inc 1,500 58,031
Burlington Resources, Inc 1,600 70,600
Chevron Corp 6,600 487,988
Coastal Corp 1,300 69,144
Columbia Gas System 800 52,200
Consolidated Natural Gas 1,300 69,956
Dresser Industries, Inc 2,200 81,950
Enron Corp 2,600 106,113
Exxon Corp 24,300 1,494,450
Halliburton Co 1,300 103,025
Mobil Corp 7,800 545,025
Occidental Petroleum 4,100 102,756
Oryx Energy Co. * 2,000 42,250
Phillips Petroleum Co 2,900 126,875
Royal Dutch Petroleum Co. (ADR) 5,200 1,131,000
Schlumberger Ltd 2,300 287,500
Sonat, Inc 1,000 51,250
Texaco, Inc 2,800 304,500
Union Pacific Resources Group 3,000 74,625
Unocal Corp 3,000 116,438
USX - Marathon Group 3,300 95,288
Western Atlas, Inc. * 800 58,600
Williams Companies, Inc 1,800 78,750
---------------------
6,384,652
---------------------
PHARMACEUTICALS - 8.7%
Abbott Laboratories 7,600 507,300
American Home Products Corp 6,300 481,950
Amgen, Inc. * 2,700 156,938
Bristol-Myers Squibb Co 9,800 793,800
Eli Lilly & Co 5,500 601,219
Johnson & Johnson 13,000 836,875
Merck & Co., Inc 11,800 1,221,300
Pfizer, Inc 6,400 764,800
Pharmacia & Upjohn, Inc 5,300 184,175
Schering - Plough Corp 7,400 354,275
Warner Lambert Co 2,700 335,475
---------------------
6,238,107
---------------------
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
RESTAURANTS - 0.6%
McDonald's Corp 6,900 $ 333,356
Wendy's International, Inc 2,400 62,250
---------------------
395,606
---------------------
RETAILERS - 4.5%
Albertson's, Inc 3,000 109,500
American Stores Co 1,700 83,938
AutoZone, Inc. * 1,800 42,413
Circuit City Stores, Inc 1,200 42,675
Costco Companies, Inc. * 2,300 75,613
CVS Corp 1,300 66,625
Dayton-Hudson Corp 2,200 117,013
Dillard's, Inc. Class A 1,600 55,400
Federated Department Stores, Inc. * 2,400 83,400
Gap Stores 2,900 112,738
Home Depot, Inc 4,800 330,900
J C Penney Co., Inc 2,700 140,906
K-Mart Corp. * 5,500 67,375
Kroger Co. * 2,700 78,300
Limited, Inc. (The) 3,400 68,850
Lowes Companies, Inc 1,900 70,538
May Department Stores 2,600 122,850
Rite Aid Corp 1,500 74,813
Sears Roebuck 4,000 215,000
Sherwin Williams Co 2,400 74,100
TJX Companies, Inc 1,800 47,475
Toys "R" Us, Inc. * 3,100 108,500
Walgreen Co 2,600 139,425
Wal-Mart Stores, Inc 22,400 757,400
Winn Dixie Stores, Inc 2,100 78,225
Woolworth Corp. * 1,900 45,600
---------------------
3,209,572
---------------------
TELEPHONE SYSTEMS - 5.9%
Airtouch Communications, Inc. * 5,600 153,300
Alltel Corp 2,500 83,594
Ameritech Corp 5,500 373,656
AT&T Corporation 15,800 553,988
Bell Atlantic Corp 4,400 333,850
Bellsouth Corp 9,800 454,475
GTE Corporation 9,400 412,425
MCI Communications Corp 6,900 264,140
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------------------------------------------------------
SECURITY VALUE
DESCRIPTION SHARES (NOTE 1)
- --------------------------------------------------------------------------------------------------------------------------------
TELEPHONE SYSTEMS - CONTINUED
NYNEX Corp 4,600 $ 265,075
SBC Communications, Inc 9,101 563,100
Sprint Corp 4,400 231,550
U.S. West Communications Group 5,200 195,975
Worldcom, Inc. * 9,100 291,200
---------------------
4,176,328
---------------------
TEXTILES, CLOTHING & FABRICS - 0.5%
Fruit of The Loom, Inc. * 1,100 34,100
Liz Claiborne, Inc 1,000 46,625
Nike, Inc 2,900 169,288
VF Corp 1,000 84,750
---------------------
334,763
---------------------
TRANSPORTATION - 0.9%
Burlington Northern Santa Fe 1,600 143,800
CSX Corp 2,300 127,650
Federal Express Corp. * 1,400 80,850
Norfolk Southern Corp 1,300 130,975
Union Pacific Corp 2,400 169,200
---------------------
652,475
---------------------
TOTAL Common and Preferred Stocks (Cost $42,078,841) 66,972,537
---------------------
SHORT-TERM INVESTMENTS - 5.9%
REPURCHASE AGREEMENT - 5.2%
J.P. Morgan Repurchase Agreement at 5.90% due 7/01/97, $ 3,694,000
---------------------
collaterized by U.S. Treasury Bond, $2,997,000 par, 8.875% coupon,
due 2/15/19, repurchase proceeds of $3,694,605. (Cost $3,694,000)
PAR AMOUNT
U.S. GOVERNMENT - 0.7%
Federal Home Loan Bank (a) $500,000 493,313
---------------------
TOTAL Short-Term Investments (Cost $4,187,313) 4,187,313
---------------------
TOTAL INVESTMENTS - 99.9%
(Cost $46,266,154) 71,159,850
Other Assets and Liabilities (net) - 0.1% 64,745
---------------------
TOTAL NET ASSETS - 100.0% $ 71,224,595
=====================
</TABLE>
See notes to financial statements
COVA SERIES TRUST
STOCK INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO FOOTNOTES:
* Non-income producing security as this stock did not declare
or pay dividends in the 12 month period.
(a) Assets segregated for open futures
ADR - American Depositary Receipt
See notes to financial statements
COVA SERIES TRUST
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 1)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS - 91.5%
AEROSPACE & DEFENSE - 1.4%
5,400 AlliedSignal, Inc $ 453,600
2,600 Boeing Co 137,950
---------------------
591,550
---------------------
AUTOMOTIVE - 0.7%
11,600 Stewart & Stevenson Services 301,600
---------------------
BANKING - 7.1%
13,600 Bankamerica Corp 878,050
4,700 BankBoston Corp 338,694
2,600 Chase Manhattan Corp 252,363
3,900 First Union Corp. 360,750
2,600 Great Western Financial 139,750
3,100 Nationsbank Corp 199,950
14,000 PNC Bank Corp 582,750
3,900 Washington Mutual, Inc 233,025
---------------------
2,985,332
---------------------
BEVERAGES, FOOD & TOBACCO - 4.4%
3,800 Campbell Soup Co 190,000
11,500 Nabisco Holdings Corp. Class A 458,563
21,400 Philip Morris Companies, Inc 949,625
1,400 Quaker Oats Co 62,825
2,400 Ralston Purina Group 197,250
---------------------
1,858,263
---------------------
BUILDING MATERIALS - 1.4%
8,800 Keystone International, Inc 305,250
6,500 Masco Corp 271,375
---------------------
576,625
---------------------
CHEMICALS - 2.4%
4,800 Betz Labs 316,800
3,900 Du Pont (E.I.) De Nemours 245,213
1,900 Morton International, Inc 57,356
6,600 Praxair, Inc 369,600
---------------------
988,969
---------------------
COMMERCIAL SERVICES - 1.6%
6,900 Florida Progress Corp 216,056
600 Hertz Corp. Class A * 21,600
13,900 Waste Management, Inc (a) 446,538
---------------------
684,194
---------------------
COMMUNICATIONS - 6.5%
6,300 Airtouch Communications, Inc. * 172,463
9,100 Alcatel Alsthom (ADR) 229,775
1,500 Ascend Communications, Inc. * 59,063
11,200 Cable & Wireless PLC (ADR) 312,900
8,300 Ericsson L M Telephone (ADR) 326,813
400 Loral Space & Communications * 6,000
5,200 Lucent Technologies 374,725
8,300 Newbridge Network Corp. * 361,050
5,000 Nokia Corp. (ADR) 368,750
3,300 SBC Communications, Inc 204,188
5,400 Tellabs, Inc. * 301,725
---------------------
2,717,452
---------------------
See notes to financial statements
COVA SERIES TRUST
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 1)
- -------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & PROCESSING - 4.9%
1,000 3 Com Corp. * $ 45,000
3,000 America Online, Inc. * 166,875
8,000 BMC Software, Inc. * 443,000
11,900 Cognizant Corp 481,950
5,750 Computer Associates International, Inc 320,203
1,700 Intuit, Inc. * 38,994
2,000 Microsoft Corp. Convertible Preferred 173,875
3,100 Microsoft Corp. * 391,763
---------------------
2,061,660
---------------------
COMPUTERS & INFORMATION - 1.5%
4,250 Bell & Howell Co. * 130,953
6,000 Cabletron Systems, Inc. * 169,875
3,700 International Business Machines Corp 333,694
---------------------
634,522
---------------------
CONTAINERS & PACKAGING - 1.3%
9,900 Crown Cork & Seal, Inc 529,031
---------------------
ELECTRIC UTILITIES - 3.5%
7,000 Boston Edison Co 184,625
6,800 CMS Energy Corp 239,700
8,300 Edison International 206,463
4,200 FPL Group, Inc 193,463
12,000 Houston Industries, Inc 257,250
2,500 Ohio Edison Co 54,531
12,500 Scana Corp 310,156
---------------------
1,446,188
---------------------
ELECTRONICS - 5.8%
14,800 General Instrument Corp. * 370,000
5,000 General Signal 218,125
4,900 Honeywell, Inc 371,788
8,600 Johnson Controls 353,138
8,800 LSI Logic Corp. * 281,600
5,600 Motorola, Inc 425,600
5,800 Philips Electronics N.V. (ADR) 416,875
---------------------
2,437,126
---------------------
ENTERTAINMENT & LEISURE - 0.5%
2,700 Walt Disney Company 216,675
---------------------
FINANCIAL SERVICES - 1.9%
9,000 American General Corp 429,750
11,800 Block, (H.& R.), Inc 380,550
---------------------
810,300
---------------------
FOOD RETAILERS - 0.0%
1 Safeway, Inc. * 23
---------------------
FOREST PRODUCTS & PAPER - 0.7%
7,900 James River Corp 292,300
---------------------
HEALTH CARE PROVIDERS - 1.3%
400 Fresenius Medical Care * 23
8,800 Pacificare Health Systems, Inc. * 561,825
---------------------
561,848
---------------------
See notes to financial statements
COVA SERIES TRUST
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION (NOTE 1)
- -------------------------------------------------------------------------------------------------------
HEAVY MACHINERY - 2.3%
7,400 Ingersoll Rand Co $ 456,950
17,800 McDermott International, Inc 519,538
---------------------
976,488
---------------------
HOUSEHOLD PRODUCTS - 2.1%
1,900 Black & Decker Corp 70,656
4,400 Colgate-Palmolive Co 287,100
6,400 Newell Co 253,600
1,800 Procter & Gamble Co 254,250
---------------------
865,606
---------------------
INDUSTRIAL - DIVERSIFIED - 1.0%
3,200 Eastman Kodak Co 245,600
3,300 Fluor Corp 182,119
---------------------
427,719
---------------------
INSURANCE - 8.1%
5,700 Aetna, Inc 583,538
6,500 Allstate Corp 474,500
2,700 Cigna Corp 479,250
8,900 Conseco, Inc 329,300
9,100 Everest RE Holdings 360,588
1,000 Hartford Life, Inc. Class A * 37,500
5,500 Provident Companies, Inc 294,250
4,395 The PMI Group, Inc 274,138
3,300 Transamerica Corp 308,756
4,000 Travelers, Inc 252,250
---------------------
3,394,070
---------------------
MEDICAL SUPPLIES - 0.8%
18,600 Nellcor Puritan Bennett, Inc. * 338,288
---------------------
OFFICE EQUIPMENT - 0.7%
3,900 Xerox Corp 307,613
---------------------
OIL & GAS - 8.2%
5,600 Coastal Corp 297,850
5,600 El Paso Natural Gas Co 308,000
10,900 Exxon Corp 670,350
13,200 Royal Dutch Petroleum Co. (ADR) 717,750
8,100 Texaco, Inc 880,875
10,900 USX - Marathon Group 314,738
2,200 Williams Companies, Inc 224,455
---------------------
3,414,018
---------------------
PHARMACEUTICALS - 12.1%
6,500 Abbott Laboratories 433,875
9,100 Alza Corp. * 263,900
1,500 Amgen, Inc. * 87,188
5,900 Bristol-Myers Squibb Co 477,900
11,300 Glaxo Wellcome PLC (ADR) 472,481
4,300 Grace W.R. & Co 237,038
4,800 Merck & Co., Inc 496,800
6,200 Mylan Laboratories, Inc 91,450
6,300 Novartis AG (ADR) 504,311
5,900 Pharmacia & Upjohn, Inc 205,025
7,800 SmithKline Beecham PLC (ADR) 714,675
See notes to financial statements
COVA SERIES TRUST
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -------------------------------------------------------------------------------------------------------
PHARMACEUTICALS -- CONTINUED
3,600 Teva Pharmaceutical (ADR) $ 233,100
4,300 Warner Lambert Co 534,275
6,370 Watson Pharmaceutical, Inc. * 269,133
---------------------
5,021,151
---------------------
REAL ESTATE - 0.2%
2,208 Simon Debartolo Group, Inc. (REIT) 70,656
---------------------
RESTAURANTS - 0.7%
11,200 Lone Star Steakhouse & Saloon * 291,900
---------------------
RETAILERS - 3.8%
3,713 CVS Corp 190,291
12,200 Federated Department Stores, Inc. * 423,950
13,200 Gap Stores 513,150
14,190 Gymboree Corp. * 340,560
2,100 K-Mart Financing Preferred 115,238
---------------------
1,583,189
---------------------
TELEPHONE SYSTEMS - 2.1%
9,400 AT&T Corp 329,588
6,600 Bellsouth Corp 306,075
7,600 Cincinnati Bell, Inc 239,400
---------------------
875,063
---------------------
TEXTILES, CLOTHING & FABRICS - 1.8%
4,400 Adidas AG (ADR) 243,668
17,700 Canadian Pacific 503,344
---------------------
747,012
---------------------
TRANSPORTATION - 0.7%
6,950 Canadian National Railway Co 304,063
---------------------
TOTAL Common and Preferred Stocks (Cost $31,072,607) 38,310,494
---------------------
BONDS AND DEBT SECURITIES - 3.4%
BEVERAGES, FOOD & TOBACCO - 0.5%
$150,000 Grand Metropolitan 6.500% 01/31/00 210,737
---------------------
FINANCIAL SERVICES - 1.1%
1,000,000 Deutsche Bank Finance BV (144A) ^ + 02/12/17 460,210
---------------------
INDUSTRIAL - DIVERSIFIED - 0.8%
350,000 ADT Operations, Inc + 07/06/10 331,625
---------------------
PHARMACEUTICALS - 1.0%
700,000 Roche Holdings, Inc + 04/20/10 355,250
50,000 Sandoz Capital BVI Ltd. (144A) ^ 2.000% 10/06/02 76,750
---------------------
432,000
---------------------
TOTAL Bonds and Debt Securities (Cost $1,110,744) 1,434,572
---------------------
See notes to financial statements
COVA SERIES TRUST
GROWTH & INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- -------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.7%
U.S. GOVERNMENT - 4.7%
$1,975,000 Federal Home Loan Bank + 07/01/97 1,974,671
---------------------
TOTAL Short-Term Investments (Cost $1,974,671) 1,974,671
---------------------
TOTAL INVESTMENTS - 99.6%
(Cost $34,158,022) 41,719,737
Other Assets and Liabilities (net) - 0.4% 168,205
---------------------
TOTAL NET ASSETS - 100.0% $ 41,887,942
=====================
</TABLE>
PORTFOLIO FOOTNOTES:
* Non-income producing security as this stock did not declare
or pay dividends in the last 12 month period.
^ Securities that may be resold to "qualified institutional buyers"
under Rule 144A or securities offered pursuant to Section 4(2) of
the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by
the Board of Trustees.
+ Zero coupon bond
(a) Assets segregated for open futures
REIT - Real Estate Investment Trust
ADR - American Depositary Receipt
See notes to financial statements
<TABLE>
<CAPTION>
COVA SERIES TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DOMESTIC BONDS AND DEBT SECURITIES - 70.5%
Advertising - 0.4%
$200,000 Katz Media Corp 10.500% 01/15/07 $ 197,000
-----------------
AEROSPACE & DEFENSE - 3.2%
200,000 Dyncorp, Inc. (144A) ^ 9.500% 03/01/07 202,000
250,000 Sequa Corp 9.375% 12/15/03 256,250
300,000 Sequa Corp 9.625% 10/15/99 308,250
600,000 Talley Manufacturing & Technical Corp 10.750% 10/15/03 627,000
-----------------
1,393,500
-----------------
AUTOMOTIVE - 0.7%
100,000 Collins & Aikman Corp 11.500% 04/15/06 113,750
200,000 Exide Corp 10.750% 12/15/02 211,500
-----------------
325,250
-----------------
BUILDING MATERIALS - 1.7%
550,000 American Standard, Inc 10.875% 05/15/99 589,875
150,000 Clark Materials 10.750% 11/15/06 159,375
-----------------
749,250
-----------------
CHEMICALS - 1.7%
534,000 ISP Holdings, Inc 9.750% 02/15/02 568,710
200,000 Pioneer America Corp 9.250% 06/15/07 198,000
-----------------
766,710
-----------------
COMMUNICATIONS - 11.6%
500,000 Cablevision Systems, Corp 10.500% 05/15/16 552,500
100,000 Cablevision Systems, Corp 9.875% 05/15/06 107,250
150,000 Centennial Cellular 8.875% 11/01/01 149,625
200,000 Centennial Cellular 10.125% 05/15/05 208,500
200,000 Century Communications Corp 8.875% 01/15/07 196,500
400,000 Echostar Communications 0%,12.875%++ 06/01/04 338,000
600,000 Fonorola, Inc 12.500% 08/15/02 669,000
150,000 Gray Communications Systems, Inc 10.625% 10/01/06 159,000
150,000 Intermedia Communications of Florida, Inc 13.500% 06/01/05 183,750
300,000 Intermedia Communications of Florida, Inc 0%,12.500%++ 05/15/06 207,750
650,000 IXC Communications, Inc 12.500% 10/01/05 741,000
300,000 Panamsat L.P 9.750% 08/01/00 315,750
400,000 Pricellular Wireless Corp 0%,12.250%++ 10/01/03 378,000
150,000 Pricellular Wireless Corp 10.750% 11/01/04 158,250
500,000 Teleport Communications 0%,11.125%++ 07/01/07 361,875
600,000 Viatel, Inc 0%,15.000%++ 01/15/05 411,000
-----------------
5,137,750
-----------------
COMPUTERS & INFORMATION - 0.8%
450,000 Bell & Howell Holdings Co 0%,11.500%++ 03/01/05 364,500
-----------------
CONTAINERS & PACKAGING - 0.4%
157,000 Owens-Illinois, Inc 9.750% 08/15/04 165,439
-----------------
COSMETICS & PERSONAL CARE - 0.9%
300,000 Revlon Consumer Products Corp 9.375% 04/01/01 309,750
100,000 Revlon Consumer Products Corp 10.875% 07/15/10 102,000
-----------------
411,750
-----------------
ELECTRIC UTILITIES - 1.3%
200,000 El Paso Electric Co 8.250% 02/01/03 208,500
300,000 Midland Funding Corp. II 11.750% 07/23/05 350,250
-----------------
558,750
See notes to financial statements
COVA SERIES TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 3.7%
$550,000 Advanced Micro Devices 11.000% 08/01/03 $ 617,375
500,000 Communications & Power Corp 12.000% 08/01/05 545,000
430,000 Exide Electronics Group 11.500% 03/15/06 457,950
-----------------
1,620,325
-----------------
ENTERTAINMENT & LEISURE - 6.9%
550,000 Agrosy Gaming 13.250% 06/01/04 532,125
300,000 Coast Hotels & Casino 13.000% 12/15/02 336,750
280,000 Cobblestone Golf 11.500% 06/01/03 295,400
400,000 Grand Casinos, Inc 10.125% 12/01/03 419,000
650,000 Selmer Co., Inc 11.000% 05/15/05 719,875
500,000 Trump Atlantic City 11.250% 05/01/06 490,000
200,000 Waterford Gaming 12.750% 11/15/03 224,500
-----------------
3,017,650
-----------------
ENVIRONMENTAL CONTROLS - 0.6%
230,000 Envirosource, Inc 9.750% 06/15/03 227,700
50,000 Norcal Waste Systems, Inc 13.250% 11/15/05 56,250
-----------------
283,950
-----------------
FINANCIAL SERVICES - 1.6%
150,000 AmeriCredit Corp 9.250% 02/01/04 147,750
300,000 Contifinancial Corp 8.375% 08/15/03 309,375
200,000 Trizec Finance, Ltd 10.875% 10/15/05 226,000
-----------------
683,125
-----------------
FOOD RETAILERS - 2.0%
500,000 Pantry, Inc 12.000% 11/15/00 505,000
400,000 Pathmark Stores, Inc 9.625% 05/01/03 388,000
-----------------
893,000
-----------------
FOREST PRODUCTS & PAPER - 1.0%
200,000 SD Warren Co 12.000% 12/15/04 223,500
200,000 Sweetheart Cup 9.625% 09/01/00 201,000
-----------------
424,500
-----------------
HEALTH CARE PROVIDERS - 2.3%
250,000 Merit Behavioral Care 11.500% 11/15/05 276,250
250,000 Tenet Healthcare Corp 8.625% 12/01/03 258,750
300,000 Tenet Healthcare Corp 10.125% 03/01/05 330,000
150,000 Urohealth Systems, Inc 12.500% 04/01/04 147,000
-----------------
1,012,000
-----------------
HEAVY MACHINERY - 0.3%
100,000 Terex Corp 13.250% 05/15/02 112,750
-----------------
INDUSTRIAL - DIVERSIFIED - 1.2%
500,000 Aetna Industries, Inc 11.875% 10/01/06 545,000
-----------------
INSURANCE - 2.3%
500,000 American Annuity Group, Inc 11.125% 02/01/03 530,000
475,000 Americo Life, Inc 9.250% 06/01/05 486,875
-----------------
1,016,875
-----------------
MEDIA - BROADCASTING & PUBLISHING - 6.5%
350,000 Capstar Broadcasting Corp. (144A) ^ 9.250% 07/01/07 340,375
150,000 Comcast Corp 9.375% 05/15/05 158,438
100,000 Comcast Corp 9.125% 10/15/06 104,875
350,000 EZ Communications 9.750% 12/01/05 371,875
450,000 International Cabletel, Inc 0%,11.500%++ 04/15/05 348,750
100,000 International Cabletel, Inc 0%,12.750%++ 02/01/06 69,750
425,000 K-III Communications Corp 10.250% 06/01/04 459,000
500,000 SCI Television 11.000% 06/30/05 535,000
See notes to financial statements
COVA SERIES TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA - BROADCASTING & PUBLISHING - CONTINUED
$350,000 Young Broadcasting Corp 11.750% 11/15/04 385,875
100,000 Young Broadcasting Corp 10.125% 02/15/05 105,500
-----------------
2,879,438
-----------------
METALS - 2.7%
600,000 Armco, Inc 11.375% 10/15/99 621,000
250,000 Carbide/Graphite Group, Inc 11.500% 09/01/03 273,750
300,000 WCI Steel, Inc. (Series B) 10.000% 12/01/04 312,000
-----------------
1,206,750
-----------------
OIL & GAS - 10.6%
500,000 AES Corp 10.250% 07/15/06 548,750
275,000 Clark R&M Holdings 0.000%+ 02/15/20 209,686
300,000 Dawson Production Services, Inc 9.375% 02/01/07 306,000
150,000 Falcon Drilling Co., Inc. (Series B) 9.750% 01/15/01 156,000
495,000 Giant Industries 9.750% 11/15/03 509,850
550,000 Global Marine, Inc 12.750% 12/15/99 578,188
500,000 KCS Energy, Inc 11.000% 01/15/03 542,500
400,000 National Energy Group 10.750% 11/01/06 414,000
500,000 Newflo Corp. (Series B) 13.250% 11/15/02 540,000
100,000 Parker Drilling Corp 9.750% 11/15/06 105,750
550,000 Petroleum Heat & Power 12.250% 02/01/05 580,250
150,000 Pride Petroleum Services, Inc 9.375% 05/01/07 156,750
-----------------
4,647,724
-----------------
RETAILERS - 4.5%
318,000 Cole National Group 11.250% 10/01/01 349,800
350,000 Cole National Group 9.875% 12/31/06 368,375
500,000 Samsonite Corp 11.125% 07/15/05 567,500
600,000 Waban, Inc 11.000% 05/15/04 673,500
-----------------
1,959,175
-----------------
TEXTILES, CLOTHING & FABRICS - 1.6%
450,000 Anvil Knitwear, Inc. (144A) ^ 10.875% 03/15/07 456,750
220,000 Dan River, Inc 10.125% 12/15/03 232,100
-----------------
688,850
-----------------
TOTAL Domestic Bonds and Debt Securities (Cost $30,141,838) 31,061,011
-----------------
FOREIGN BONDS AND DEBT SECURITIES - 6.5%
CANADA - 3.5%
$366,000 Algoma Steel, Inc 12.375% 07/15/05 407,175
$600,000 Doman Industries Ltd 8.750% 03/15/04 583,500
$500,000 Fundy Cable Ltd 11.000% 11/15/05 542,500
-----------------
1,533,175
-----------------
COMMUNICATIONS - 0.7%
$300,000 Rogers Communications, Inc 10.875% 04/15/04 315,750
-----------------
GREAT BRITAIN - 0.1%
$100,000 Diamond Cable Co. (144A) ^ 0%,10.750%++ 02/15/07 58,000
-----------------
LUXEMBOURG - 1.0%
$600,000 Millicom International Cellular 0%,13.500%++ 06/01/06 435,000
-----------------
NETHERLANDS - 1.2%
$500,000 Fresh Del Monte 10.000% 05/01/03 515,000
-----------------
TOTAL Foreign Bonds and Debt Securities (Cost $2,720,798) 2,856,925
-----------------
See notes to financial statements
COVA SERIES TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS - CONTINUED
JUNE 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------------------------------------------------------------------
PAR/SHARE SECURITY VALUE
AMOUNT DESCRIPTION COUPON MATURITY (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
EQUITIES - 3.7%
COMMUNICATIONS - 0.8%
104 Cablevision Systems, Corp. Preferred * $ 10,842
350 Intermedia Communications of Florida, Inc. (Warrants) * 8,750
255 Panamsat Corp. Preferred * 312,375
-----------------
331,967
-----------------
ELECTRIC UTILITIES - 0.3%
1,145 El Paso Electric Co. Preferred 129,385
-----------------
ELECTRONICS - 0.0%
250 Exide Electronics Group (Warrants) * 1,282
-----------------
FOOD RETAILERS - 0.2%
3,177 Super Markets General Holding Preferred * 77,042
-----------------
HEALTH CARE PROVIDERS - 1.1%
500,000 Fresenius Med Care Preferred 512,500
150 Urohealth Systems, Inc. (Warrants) * 2,250
-----------------
514,750
-----------------
MEDIA - BROADCASTING & PUBLISHING - 1.3%
930 American Telecasting, Inc. (Warrants) * 5,115
513 Time Warner, Inc. Preferred (Series M) * 570,501
-----------------
575,616
-----------------
TOTAL Equities (Cost $1,492,412) 1,630,042
-----------------
REPURCHASE AGREEMENT - 19.0%
J.P Morgan Repurchase Agreement at 5.90% due 7/01/97, 8,341,000
-----------------
collaterized by U.S. Treasury Bond, $8,341,000 par, 8.875% coupon,
due 2/15/19, repurchase proceeds of $8,342,367. (Cost $8,341,000)
TOTAL INVESTMENTS - 99.7%
(Cost $42,696,048) 43,888,978
Other Assets and Liabilities (net) - 0.3% 121,117
-----------------
TOTAL NET ASSETS - 100.0% $ 44,010,095
=================
PORTFOLIO FOOTNOTES:
* Non-income producing security as this stock did not declare
or pay dividends in the 12 month period.
^ Securities that may be resold to "qualified institutional buyers"
under Rule 144A or securities offered pursuant to Section 4(2) of
the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by
the Board of Trustees.
+ Zero coupon bond
++ Security is a "step-up" bond where the coupon increases or
steps up at a predetermined date.
</TABLE>
See notes to financial statements
COVA SERIES TRUST
HIGH YIELD PORTFOLIO
PORTFOLIO COMPOSITION BY CREDIT QUALITY
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
The following table summarizes the portfolio composition at June 30,
1997, based upon quality ratings issued by Standard & Poor's. For
securities not rated by Standard & Poor's, the Moody rating is used.
PORTFOLIO COMPOSITION BY CREDIT QUALITY
-----------------------------------------------------------
RATINGS % OF PORFOLIO
AAA 19.0 %
BBB 1.2
BB 23.3
B 54.0
CCC 2.0
NR 0.5
-----
100.0 %
-----
Note: NR = Not Rated
See notes to financial statements
================================================================================
THIS PAGE INTENTIONALLY BLANK
================================================================================
COVA SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SMALL CAP STOCK QUALITY BOND SELECT EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ----------------- ----------------
<S> <C> <C> <C>
ASSETS
Investments, at value (Note 1)* $ 31,525,161 $ 8,146,262 $ 58,616,251
Cash 1,007,205 871,911 2,669,475
Cash denominated in foreign currencies ** ----- ----- -----
Receivable for investments sold 28,228 ----- 850,899
Receivable for Trust shares sold 42,087 4,911 195,875
Dividends receivable 36,555 ----- 60,665
Interest receivable 7,690 107,384 6,506
Net variation margin on financial futures contracts (Note 4) ----- ----- -----
Receivable from investment adviser (Note 2) 45,330 22,441 3,602
--------------- ----------------- ----------------
Total assets 32,692,256 9,152,909 62,403,273
--------------- ----------------- ----------------
LIABILITIES
PAYABLES FOR:
Payable for investments purchased 585,100 80,263 2,612,509
Payable for Trust shares redeemed ----- ----- -----
Net variation margin on financial futures contracts (Note 4) ----- ----- -----
Net open forward currency contracts (Note 5) ----- ----- -----
Investment advisory fee payable (Note 2) ----- ----- -----
Accrued expenses 35,945 23,777 31,291
--------------- ----------------- ----------------
Total liabilities 621,045 104,040 2,643,800
--------------- ----------------- ----------------
NET ASSETS $ 32,071,211 $ 9,048,869 $ 59,759,473
=============== ================= ================
- -----------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS REPRESENTED BY:
Paid in surplus $ 29,388,493 $ 9,018,115 $ 51,431,536
Accumulated net realized gain (loss) (44,219) (38,675) 2,556,585
Unrealized appreciation of investments, futures contracts
and foreign currency 2,727,974 64,185 5,775,200
Undistributed (distributions in excess of) net investment income (1,037) 5,244 (3,848)
--------------- ----------------- ----------------
Total $ 32,071,211 $ 9,048,869 $ 59,759,473
=============== ================= ================
CAPITAL SHARES OUTSTANDING 2,761,059 899,812 4,696,210
=============== ================= ================
Net Asset Value and Offering Price Per Share $11.616 $10.056 $12.725
=============== ================= ================
See Notes to Financial Statements
- -----------------------------------------------------------------------------------------------------------------------------------
* Investments in securities, at cost $ 28,797,187 $ 8,083,393 $ 52,841,051
** Cost of cash denominated in foreign currencies ---- ---- -----
</TABLE>
<TABLE>
<CAPTION>
VKAC
LARGE CAP STOCK INTERNATIONAL EQUITY BOND DEBENTURE MONEY MARKET QUALITY INCOME STOCK INDEX GROWTH AND INCOME HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------- --------------- ---------------- ------------- -------------- --------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 19,070,126 $ 38,854,295 $ 19,014,151 $ 62,115,129 $ 50,422,894 $ 71,159,850 $ 41,719,737 $ 43,888,978
38,687 2,172,832 1,163,369 842 38,250 65 2,759 -----
----- 1,848,114 ----- ----- ----- ----- ----- -----
----- 400,514 102,000 ----- 1,528,297 ----- 206,774 -----
10,313 184,670 222,722 3,978 ----- 50,454 ----- 67,351
23,832 135,076 2,096 ----- ----- 90,803 52,940 -----
152 11,948 293,979 141,022 982,946 1,432 4,627 734,816
----- ----- ----- ----- 30,938 ----- ----- -----
30,715 94,253 17,510 ----- ----- ----- 1,570 -----
- ---------------- -------------- ------------- ------------- ------------ ----------- ------------- -------------
19,173,825 43,701,702 20,815,827 62,260,971 53,003,325 71,302,604 41,988,407 44,691,145
- ---------------- -------------- ------------- ------------- ------------ ----------- ------------- -------------
----- 2,068,670 594,860 ----- 2,180,616 ----- 59,485 662,532
10,313 ----- ----- 555,321 26,680 ----- 19,508 -----
----- ----- ----- ----- ----- 29,861 6,650 -----
----- 106,114 ----- ----- ----- ----- ----- -----
----- ----- ----- 69 17,003 20,408 ----- 3,943
26,836 41,375 25,536 24,510 16,033 27,740 14,822 14,575
- ---------------- -------------- ------------- ------------- ------------ ----------- ------------- -------------
37,149 2,216,159 620,396 579,900 2,240,332 78,009 100,465 681,050
- ---------------- -------------- ------------- ------------- ------------ ----------- ------------- -------------
$ 19,136,676 $ 41,485,543 $ 20,195,431 $ 61,681,071 $ 50,762,993 $ 71,224,595 $ 41,887,942 $ 44,010,095
================ ============== ============= ============= ============ =========== ============= =============
- ----------------------------------------------------- ----------------------------------------------------------------------------
$ 14,202,252 $ 37,450,911 $ 19,267,290 $ 61,756,255 $ 51,034,387 $ 30,692,823 $ 32,456,304 $ 43,593,922
954,672 713,154 135,819 (75,184) (725,521) 15,621,309 1,860,809 (798,206)
3,979,826 3,326,365 771,257 ----- 452,183 24,868,874 7,567,915 1,192,930
(74) (4,887) 21,065 ----- 1,944 41,589 2,914 21,449
- ---------------- -------------- ------------- ------------- ------------ ----------- ------------- -------------
$ 19,136,676 $ 41,485,543 $ 20,195,431 $ 61,681,071 $ 50,762,993 $ 71,224,595 $ 41,887,942 $ 44,010,095
================ ============== ============= ============= ============ =========== ============= =============
1,434,252 3,452,054 1,748,144 61,756,255 4,872,457 3,707,329 2,622,052 4,106,008
================ ============== ============= ============= ============ =========== ============= =============
$13.343 $12.018 $11.552 $1.00 $10.418 $19.212 $15.975 $10.718
================ ============== ============= ============= ============ =========== ============= =============
- ----------------------------------------------------- ----------------------------------------------------------------------------
$ 15,090,300 $ 35,458,666 $ 18,242,894 $ 62,115,129 $ 49,936,336 $ 46,266,154 $ 34,158,022 $ 42,696,048
----- 1,814,522 ----- ----- ----- ----- ----- -----
</TABLE>
See notes to financial statements
COVA SERIES TRUST
STATEMENTS OF OPERATIONS
- ------------------------
PERIOD ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SMALL CAP STOCK QUALITY BOND SELECT EQUITY LARGE CAP STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends (1) $ 145,596 $ -- $ 275,502 $ 153,747
Interest 44,599 245,124 33,753 893
----------- ----------- ----------- -----------
Total investment income 190,195 245,124 309,255 154,640
----------- ----------- ----------- -----------
EXPENSES
Investment advisory fee (Note 2) 91,769 19,905 145,228 56,630
Custody, fund accounting, and transfer agent fees 79,857 14,724 61,309 30,680
Audit 14,728 14,728 14,728 14,728
Trustee fees and expenses 3,873 3,873 3,873 3,885
Legal 1,149 1,149 1,149 1,149
Shareholder reporting 77 77 77 77
----------- ----------- ----------- -----------
Total expenses 191,453 54,456 226,364 107,149
Less fees waived and expenses reimbursed by the adviser 88,887 30,932 61,772 41,807
----------- ----------- ----------- -----------
Net expenses 102,566 23,524 164,592 65,342
----------- ----------- ----------- -----------
Net investment income 87,629 221,600 144,663 89,298
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS,
FUTURES CONTRACTS AND FOREIGN CURRENCY RELATED
TRANSACTIONS
Net realized gain (loss) on investments (3,224) (4,648) 2,653,676 955,142
Net realized gain from futures contracts -- -- -- --
Net realized gain from foreign currency related transactions -- -- -- --
Net realized gain (loss) on investments, futures contracts
----------- ----------- ----------- -----------
and foreign currency related transactions (3,224) (4,648) 2,653,676 955,142
----------- ----------- ----------- -----------
Unrealized appreciation of investments, futures contracts
and foreign currency
Beginning of period 498,352 63,737 1,054,575 1,582,389
End of period 2,727,974 64,186 5,775,200 3,979,826
----------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments futures contracts and foreign currency 2,229,622 449 4,720,625 2,397,437
----------- ----------- ----------- -----------
Net realized and unrealized gain/(loss) on investments, futureS
contracts and foreign currency related transactions 2,226,398 (4,199) 7,374,301 3,352,579
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,314,027 $ 217,401 $ 7,518,964 $ 3,441,877
=========== =========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Dividend income is net of withhholding taxes of: $ ----- $ ----- $ 159 $ 791
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
VKAC
INTERNATIONAL EQUITY BOND DEBENTURE MONEY MARKET QUALITY INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------- ----------------------- ----------------------- ----------------------
<S> <C> <C> <C>
$ 384,242 $ 16,087 $ ----- $ -----
49,237 477,361 1,238,044 1,949,391
-------------------------- ----------------------- ----------------------- ----------------------
433,479 493,448 1,238,044 1,949,391
-------------------------- ----------------------- ----------------------- ----------------------
112,801 47,813 110,977 139,144
134,849 21,873 22,205 47,851
14,728 14,728 2,100 2,100
3,873 3,868 1,377 1,384
1,149 1,149 711 711
77 77 ----- -----
-------------------------- ----------------------- ----------------------- ----------------------
267,477 89,508 137,370 191,190
141,405 35,320 115,176 24,217
-------------------------- ----------------------- ----------------------- ----------------------
126,072 54,188 22,194 166,973
-------------------------- ----------------------- ----------------------- ----------------------
307,407 439,260 1,215,850 1,782,418
-------------------------- ----------------------- ----------------------- ----------------------
648,657 136,006 ----- (192,181)
----- ----- ----- (33,114)
80,056 ----- ----- -----
-------------------------- ----------------------- ----------------------- ----------------------
728,713 136,006 ----- (225,295)
-------------------------- ----------------------- ----------------------- ----------------------
883,114 283,061 ----- 683,818
3,326,366 771,257 ----- 452,183
-------------------------- ----------------------- ----------------------- ----------------------
2,443,252 488,196 ----- (231,635)
-------------------------- ----------------------- ----------------------- ----------------------
3,171,965 624,202 ----- (456,930)
-------------------------- ----------------------- ----------------------- ----------------------
$ 3,479,372 $ 1,063,462 $ 1,215,850 $ 1,325,488
========================== ======================= ======================= ======================
- ---------------------------------------------------------------------------------------------------------------
$ 60,385 $ ----- $ ----- $ -----
STOCK INDEX GROWTH AND INCOME HIGH YIELD
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------- ------------------------- ----------------------
$ 671,927 $ 320,479 $ 7,760
61,198 91,691 1,858,951
--------------------- ------------------------- ----------------------
733,125 412,170 1,866,711
--------------------- ------------------------- ----------------------
189,597 109,047 153,509
85,186 42,702 41,830
2,100 2,100 2,100
1,440 1,361 1,726
711 696 711
----- ----- -----
--------------------- ------------------------- ----------------------
279,034 155,906 199,876
51,517 28,685 25,899
--------------------- ------------------------- ----------------------
227,517 127,221 173,977
--------------------- ------------------------- ----------------------
505,608 284,949 1,692,734
--------------------- ------------------------- ----------------------
15,198,105 1,707,565 195,675
619,225 187,622 -----
----- ----- -----
--------------------- ------------------------- ----------------------
15,817,330 1,895,187 195,675
--------------------- ------------------------- ----------------------
27,209,404 4,042,130 1,037,177
24,868,873 7,567,915 1,192,930
--------------------- ------------------------- ----------------------
(2,340,531) 3,525,785 155,753
--------------------- ------------------------- ----------------------
13,476,799 5,420,972 351,428
--------------------- ------------------------- ----------------------
$ 13,982,407 $ 5,705,921 $ 2,044,162
===================== ========================= ======================
- ------------------------------------------------------------------------------
$ 2,527 $ 1,749 $ -----
</TABLE>
COVA SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
SMALL CAP STOCK
PORTFOLIO
-----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 *
-----------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 87,629 $ 55,635
Net realized gain (loss) on investments, futures contracts,
option contracts and foreign currency related transactions (3,224) 640,056
Net change in unrealized appreciation (depreciation)
on investments, futures contracts, option contracts and
foreign currency 2,229,622 498,352
----------------------- ---------------------
Net increase in net assets resulting from operations 2,314,027 1,194,043
----------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (84,711) (53,613)
Net realized gains (98,893) (582,244)
In excess of net investment income ----- -----
----------------------- ---------------------
Total distributions (183,604) (635,857)
----------------------- ---------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3):
Proceeds from shares sold 14,685,562 10,623,372
Net asset value of shares issued through dividend reinvestment 805,199 14,261
Cost of shares repurchased (200,652) (1,545,140)
----------------------- ---------------------
Net increase (decrease) in net assets derived from
capital share transactions 15,290,109 9,092,493
----------------------- ---------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 17,420,532 9,650,679
NET ASSETS:
Beginning of period 14,650,679 5,000,000
----------------------- ---------------------
End of period $ 32,071,211 $ 14,650,679
======================= =====================
Undistributed (distributions in excess of) net investment income $ (1,037) $ (3,955)
======================= =====================
CAPITAL SHARE TRANSACTIONS:
Beginning shares 1,341,383 500,000
----------------------- ---------------------
Shares sold 1,364,394 986,571
Shares issued through dividend reinvestment 73,770 1,363
Shares repurchased (18,488) (146,551)
----------------------- ---------------------
Net increase / (decrease) in shares outstanding 1,419,676 841,383
----------------------- ---------------------
Ending shares 2,761,059 1,341,383
======================= =====================
* Fund commenced operations on April 2, 1996
</TABLE>
<TABLE>
<CAPTION>
QUALITY BOND Select Equity
PORTFOLIO Portfolio
- -------------------------------------------- -----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED Six Months Ended Period ended
JUNE 30, 1997 DECEMBER 31, June 30, 1997 December 31,
(UNAUDITED) 1996 * (Unaudited) 1996 *
- -------------------------------------------- -----------------------------------------------
<S> <C> <C> <C>
$ 221,600 $ 259,046 $ 144,663 $ 109,126
(4,648) (35,063) 2,653,676 483,583
449 63,737 4,720,625 1,054,575
--------------- --------------------- ----------------------- ---------------------
217,401 287,720 7,518,964 1,647,284
--------------- --------------------- ----------------------- ---------------------
(263,172) (211,194) (148,268) (109,126)
----- ----- (330,961) (249,713)
----- ----- ----- (243)
--------------- --------------------- ----------------------- ---------------------
(263,172) (211,194) (479,229) (359,082)
--------------- --------------------- ----------------------- ---------------------
5,451,034 3,657,629 28,348,306 19,036,561
406,195 68,171 814,539 23,772
(2,564,637) (3,000,278) (277,026) (1,514,616)
--------------- --------------------- ----------------------- ---------------------
3,292,592 725,522 28,885,819 17,545,717
--------------- --------------------- ----------------------- ---------------------
3,246,821 802,048 35,925,554 18,833,919
5,802,048 5,000,000 23,833,919 5,000,000
--------------- --------------------- ----------------------- ---------------------
$ 9,048,869 $ 5,802,048 $ 59,759,473 $ 23,833,919
=============== ===================== ======================= =====================
$ 5,244 $ 46,816 $ (3,848) $ (243)
=============== ===================== ======================= =====================
575,476 500,000 2,218,737 500,000
--------------- --------------------- ----------------------- ---------------------
536,991 364,502 2,433,214 1,868,411
40,367 6,904 68,782 2,403
(253,022) (295,930) (24,523) (152,077)
--------------- --------------------- ----------------------- ---------------------
324,336 75,476 2,477,473 1,718,737
--------------- --------------------- ----------------------- ---------------------
899,812 575,476 4,696,210 2,218,737
=============== ===================== ======================= =====================
Large Cap Stock International Equity
Portfolio Portfolio
--------------------------------------------------------------------------------------------------
Six Months Ended Period ended Six Months Ended Period ended
June 30, 1997 December 31, June 30, 1997 December 31,
(Unaudited) 1996 * (Unaudited) 1996 *
----------------------------------------------- -----------------------------------------------
$ 89,298 $ 185,870 $ 307,407 $ 97,324
955,142 387,045 728,713 65,848
2,397,437 1,582,389 2,443,252 883,114
----------------------- --------------------- ----------------------- ---------------------
3,441,877 2,155,304 3,479,372 1,046,286
----------------------- --------------------- ----------------------- ---------------------
(92,337) (182,905) (339,450) (81,947)
(90,320) (297,195) (39,953) (29,676)
----- ----- ----- -----
----------------------- --------------------- ----------------------- ---------------------
(182,657) (480,100) (379,403) (111,623)
----------------------- --------------------- ----------------------- ---------------------
2,695,160 1,106,964 22,446,730 14,218,522
593,055 69,702 453,095 37,930
(4,182,354) (1,080,275) (133,506) (4,571,860)
----------------------- --------------------- ----------------------- ---------------------
(894,139) 96,391 22,766,319 9,684,592
----------------------- --------------------- ----------------------- ---------------------
2,365,081 1,771,595 25,866,288 10,619,255
16,771,595 15,000,000 15,619,255 5,000,000
----------------------- --------------------- ----------------------- ---------------------
$ 19,136,676 $ 16,771,595 $ 41,485,543 $ 15,619,255
======================= ===================== ======================= =====================
$ (74) $ 2,965 $ (4,887) $ 27,156
======================= ===================== ======================= =====================
1,509,371 1,500,000 1,425,198 500,000
----------------------- --------------------- ----------------------- ---------------------
219,004 101,577 2,000,584 1,367,780
50,783 6,843 38,229 3,673
(344,906) (99,049) (11,957) (446,255)
----------------------- --------------------- ----------------------- ---------------------
(75,119) 9,371 2,026,856 925,198
----------------------- --------------------- ----------------------- ---------------------
1,434,252 1,509,371 3,452,054 1,425,198
======================= ===================== ======================= =====================
</TABLE>
COVA SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
Bond Debenture
Portfolio
-----------------------------------------------
Six Months Ended Period ended
June 30, 1997 December 31,
(Unaudited) 1996 *
-----------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
OPERATIONS: $ 439,260 $ 196,556
Net investment income
Net realized gain (loss) on investments, futures contracts, 136,006 64,118
option contracts and foreign currency related transactions
Net change in unrealized appreciation (depreciation)
on investments, futures contracts, option contracts and 488,196 283,061
foreign currency
----------------------- ---------------------
1,063,462 543,735
Net increase in net assets resulting from operations
----------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (420,203) (194,548)
Net investment income (9,130) (55,174)
Net realized gains ----- -----
In excess of net investment income
----------------------- ---------------------
(429,333) (249,722)
Total distributions
----------------------- ---------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3): 11,831,799 7,553,231
Proceeds from shares sold 663,579 15,475
Net asset value of shares issued through dividend reinvestment (597,338) (699,457)
Cost of shares repurchased
----------------------- ---------------------
Net increase (decrease) in net assets derived from 11,898,040 6,869,249
capital share transactions
----------------------- ---------------------
12,532,169 7,163,262
TOTAL INCREASE (DECREASE) IN NET ASSETS
NET ASSETS: 7,663,262 500,000
Beginning of period ----------------------- ---------------------
$ 20,195,431 $ 7,663,262
End of period ======================= =====================
$ 21,065 $ 2,008
Undistributed (distributions in excess of) net investment income ======================= =====================
CAPITAL SHARE TRANSACTIONS: 698,547 50,000
Beginning shares ----------------------- ---------------------
1,044,770 714,357
Shares sold 58,606 1,514
Shares issued through dividend reinvestment (53,779) (67,324)
Shares repurchased ----------------------- ---------------------
1,049,597 648,547
Net increase / (decrease) in shares outstanding ----------------------- ---------------------
1,748,144 698,547
Ending shares ======================= =====================
* Fund commenced operations on April 2, 1996
Money Market
Portfolio
- ---------------------------------------------------
Six Months Ended Year ended
June 30, 1997 December 31,
(Unaudited) 1996
-----------------------------------------------
$ 1,215,850 $ 1,778,758
----- 374
----- -----
----------------------- ---------------------
1,215,850 1,779,132
----------------------- ---------------------
(1,215,850) (1,778,758)
----- -----
----- -----
----------------------- ---------------------
(1,215,850) (1,778,758)
----------------------- ---------------------
43,769,588 34,135,639
1,215,850 1,778,758
(14,259,255) (39,342,379)
----------------------- ---------------------
30,726,183 (3,427,982)
----------------------- ---------------------
30,726,183 (3,427,608)
30,954,888 34,382,496
----------------------- ---------------------
$ 61,681,071 $ 30,954,888
======================= =====================
$ ------ $ ------
======================= =====================
31,030,072 34,458,054
----------------------- ---------------------
43,769,588 34,135,639
1,215,850 1,778,758
(14,259,255) (39,342,379)
----------------------- ---------------------
30,726,183 (3,427,982)
----------------------- ---------------------
61,756,255 31,030,072
======================= =====================
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Quality Income Stock Index
Portfolio Portfolio
---------------------------------------------------------------------------------------------------
Six Months Ended Year ended Six Months Ended Year ended
June 30, 1997 December 31, June 30, 1997 December 31,
(Unaudited) 1996 (Unaudited) 1996
----------------------------------------------- -----------------------------------------------
<C> <C> <C> <C>
$ 1,782,418 $ 3,033,706 $ 505,608 $ 1,540,280
(225,295) (661,414) 15,817,330 2,883,097
(231,635) (688,059) (2,340,531) 13,156,063
----------------------- --------------------- ----------------------- ---------------------
1,325,488 1,684,233 13,982,407 17,579,440
----------------------- --------------------- ----------------------- ---------------------
(2,664,748) (2,168,653) (519,440) (1,532,148)
----- (8,168) (288,033) (2,778,218)
----- ----- ----- -----
----------------------- --------------------- ----------------------- ---------------------
(2,664,748) (2,176,821) (807,473) (4,310,366)
----------------------- --------------------- ----------------------- ---------------------
14,739,332 22,903,638 3,285,322 7,574,621
3,465,736 1,375,833 4,316,491 801,349
(17,426,963) (13,853,598) (36,112,336) (21,068,260)
----------------------- --------------------- ----------------------- ---------------------
778,105 10,425,873 (28,510,523) (12,692,290)
----------------------- --------------------- ----------------------- ---------------------
(561,155) 9,933,285 (15,335,589) 576,784
51,324,148 41,390,863 86,560,184 85,983,400
----------------------- --------------------- ----------------------- ---------------------
$ 50,762,993 $ 51,324,148 $ 71,224,595 $ 86,560,184
======================= ===================== ======================= =====================
$ 1,944 $ 884,274 $ 41,589 $ 55,421
======================= ===================== ======================= =====================
4,801,097 3,807,302 5,367,589 6,210,939
----------------------- --------------------- ----------------------- ---------------------
1,369,924 2,174,582 184,688 513,644
330,760 130,798 260,584 53,172
(1,629,324) (1,311,585) (2,105,532) (1,410,166)
----------------------- --------------------- ----------------------- ---------------------
71,360 993,795 (1,660,260) (843,350)
----------------------- --------------------- ----------------------- ---------------------
4,872,457 4,801,097 3,707,329 5,367,589
======================= ===================== ======================= =====================
VKAC Growth and Income
Portfolio
- --------------------------------------------------
Six Months Ended Year ended
June 30, 1997 December 31,
(Unaudited) 1996
-----------------------------------------------
$ 284,949 $ 517,014
1,895,187 1,680,286
3,525,785 2,293,883
----------------------- ---------------------
5,705,921 4,491,183
----------------------- ---------------------
(287,600) (511,450)
(513,390) (1,207,683)
----- -----
----------------------- ---------------------
(800,990) (1,719,133)
----------------------- ---------------------
4,312,760 10,401,256
2,309,071 211,053
(1,231,986) (1,515,500)
----------------------- ---------------------
5,389,845 9,096,809
----------------------- ---------------------
10,294,776 11,868,859
31,593,166 19,724,307
----------------------- ---------------------
$ 41,887,942 $ 31,593,166
======================= =====================
$ 2,914 $ 5,564
======================= =====================
2,258,899 1,576,436
----------------------- ---------------------
288,193 780,898
158,969 15,904
(84,009) (114,339)
----------------------- ---------------------
363,153 682,463
----------------------- ---------------------
2,622,052 2,258,899
======================= =====================
</TABLE>
See notes to financial statements
COVA SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------
<TABLE>
<CAPTION>
High Yield
Portfolio
----------------------------------------------------
Six Months Ended Year ended
June 30, 1997 December 31,
INCREASE (DECREASE) IN NET ASSETS: (Unaudited) 1996
----------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,692,734 $ 3,456,028
Net realized gain (loss) on investments, futures contracts,
option contracts and foreign currency related transactions 195,675 513,675
Net change in unrealized appreciation (depreciation)
on investments, futures contracts, option contracts and
foreign currency 155,753 293,614
----------------------- ---------------------
Net increase in net assets resulting from operations 2,044,162 4,263,317
----------------------- ---------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (1,652,114) (3,453,570)
Net realized gains ----- -----
In excess of net investment income ----- (19,171)
----------------------- ---------------------
Total distributions (1,652,114) (3,472,741)
----------------------- ---------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3):
Proceeds from shares sold 12,296,689 25,000,540
Net asset value of shares issued through dividend reinvestment 3,457,756 1,667,100
Cost of shares repurchased (13,201,036) (22,908,998)
----------------------- ---------------------
Net increase (decrease) in net assets derived from
capital share transactions 2,553,409 3,758,642
----------------------- ---------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,945,457 4,549,218
NET ASSETS:
Beginning of period 41,064,638 36,515,420
----------------------- ---------------------
End of period $ 44,010,095 $ 41,064,638
======================= =====================
Undistributed (distributions in excess of) net investment income $ 21,449 $ (19,171)
======================= =====================
CAPITAL SHARE TRANSACTIONS:
Beginning shares 3,864,501 3,495,538
----------------------- ---------------------
Shares sold 1,138,215 2,395,207
Shares issued through dividend reinvestment 324,185 159,825
Shares repurchased (1,220,893) (2,186,069)
----------------------- ---------------------
Net increase / (decrease) in shares outstanding 241,507 368,963
----------------------- ---------------------
Ending shares 4,106,008 3,864,501
======================= =====================
* Fund commenced operations on April 2, 1996
</TABLE>
See notes to financial statements
================================================================================
THIS PAGE INTENTIONALLY BLANK
================================================================================
COVA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE HELD THROUGHOUT THE PERIODS INDICATED
<TABLE>
<CAPTION>
Small Cap Stock
Portfolio
-----------------------------------------------
For the period
from May 1, 1996
Six Months Ended (date of initial
June 30, 1997 public offering) to
(Unaudited) December 31, 1996
-----------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.922 10.512$
--------------------- ---------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.034 0.057
Net realized and unrealized gains (losses) 0.727 0.843
--------------------- ---------------------
Total from investment operations 0.761 0.900
--------------------- ---------------------
DISTRIBUTIONS
Dividends from net investment income (0.031) (0.055)
Distributions from net realized gains (0.036) (0.435)
Distributions in excess of net investment income ---- ----
Return of capital distributions ---- ----
--------------------- ---------------------
Total distributions (0.067) (0.490)
--------------------- ---------------------
NET ASSET VALUE, END OF PERIOD $ 11.616 $ 10.922
--------------------- ---------------------
TOTAL RETURN 7.04%* 8.65%*
--------------------- ---------------------
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (In millions) $ 32.1 $ 14.7
RATIOS TO AVERAGE NET ASSETS (1):
Expenses 0.95%** 0.95%**
Net investment income 0.81%** 0.87%**
PORTFOLIO TURNOVER RATE 57.2% 102.4%
AVERAGE COMMISSION RATE PAID (2) $0.0394 $0.0371
(1) If certain expenses had not been reimbursed by the
Adviser, total return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets: 1.77%** 2.68%**
Ratio of Net Investment Income to Average Net Assets: (0.01%)** (0.86%)**
(2) Average commission rate paid is computed by dividing
the total dollar amount of commissions paid during the
period by the total number of shares purchased and sold
during the period for which commissions were charged.
+ Amount is less than .0005
* Non-annualized
** Annualized
N/A Not Applicable
Quality Bond
Portfolio
---------------------------------------------------
For the period
from May 1, 1996
Six Months Ended (date of initial
June 30, 1997 public offering) to
(Unaudited) December 31, 1996
---------------------------------------------------
<C> <C>
10.082 $ 9.897
---------------------- ------------------------
0.226 0.459
0.050 0.102
---------------------- ------------------------
0.276 0.561
---------------------- ------------------------
(0.302) (0.376)
---- ----
---- ----
---- ----
---------------------- ------------------------
(0.302) (0.376)
---------------------- ------------------------
$ 10.056 $ 10.082
---------------------- ------------------------
2.79%* 5.68%*
---------------------- ------------------------
$ 9.0 $ 5.8
0.65%** 0.65%**
6.12%** 5.94%**
45.3% 181.3%
N/A N/A
1.50%** 1.52%**
5.27%** 5.07%**
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Select Equity Large Cap Stock
Portfolio Portfolio
------------------------------------------------------ -------------------------------------------------------
For the period For the period
from May 1, 1996 from May 1, 1996
Six Months Ended (date of initial Six Months Ended (date of initial
June 30, 1997 public offering) to June 30, 1997 public offering) to
(Unaudited) December 31, 1996 (Unaudited) December 31, 1996
------------------------------------------------------ -------------------------------------------------------
<S> <C> <C> <C> <C>
$ 10.742 $ 10.084 $ 11.112 $ 10.003
------------------------ ------------------------ ------------------------- -------------------------
0.031 0.081 0.063 0.124
2.055 0.771 2.297 1.304
------------------------ ------------------------ ------------------------- -------------------------
2.086 0.852 2.360 1.428
------------------------ ------------------------ ------------------------- -------------------------
(0.032) (0.081) (0.065) (0.122)
(0.071) (0.113) (0.064) (0.197)
---- + ---- ----
---- ---- ---- ----
------------------------ ------------------------ ------------------------- -------------------------
(0.103) (0.194) (0.129) (0.319)
------------------------ ------------------------ ------------------------- -------------------------
$ 12.725 $ 10.742 $ 13.343 $ 11.112
------------------------ ------------------------ ------------------------- -------------------------
19.49%* 8.52%* 21.23%* 14.35%*
------------------------ ------------------------ ------------------------- -------------------------
$ 59.8 $ 23.8 $ 19.1 $ 16.8
0.85%** 0.85%** 0.75%** 0.75%**
0.75%** 1.35%** 1.02%** 1.56%**
72.5% 123.9% 29.7% 35.5%
$0.0422 $0.0406 $0.0325 $0.0323
1.17%** 1.70%** 1.23%** 1.23%**
0.43%** 0.50%** 0.54%** 1.08%**
International Equity
Portfolio
-------------------------------------------------------
For the period
from May 1, 1996
Six Months Ended (date of initial
June 30, 1997 public offering) to
(Unaudited) December 31, 1996
-------------------------------------------------------
$ 10.959 $ 10.215
------------------------- -------------------------
0.080 0.096
1.091 0.755
------------------------- -------------------------
1.171 0.851
------------------------- -------------------------
(0.100) (0.086)
(0.012) (0.021)
---- ----
---- ----
------------------------- -------------------------
(0.112) (0.107)
------------------------- -------------------------
$ 12.018 $ 10.959
------------------------- -------------------------
10.69%* 8.44%*
------------------------- -------------------------
$ 41.5 $ 15.6
0.95%** 0.95%**
2.32%** 1.43%**
36.9% 48.2%
$0.0297 $0.0107
2.01%** 3.80%**
1.26%** (1.42%)**
</TABLE>
See notes to financial statements
COVA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE HELD THROUGHOUT THE PERIODS INDICATED
<TABLE>
<CAPTION>
Bond Debenture
Portfolio
------------------------------------------------------
For the period
from May 1, 1996
Six Months Ended (date of initial
June 30, 1997 public offering) to
(Unaudited) December 31, 1996
------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.970 $ 10.098
------------------------ ------------------------
INCOME FROM INVESTMENT OPERATIONS
0.258 0.345
Net investment income 0.578 0.949
Net realized and unrealized gains (losses) ------------------------ ------------------------
0.836 1.294
Total from investment operations ------------------------ ------------------------
DISTRIBUTIONS (0.249) (0.342)
Dividends from net investment income (0.005) (0.080)
Distributions from net realized gains ---- ----
Distributions in excess of net investment income ---- ----
Return of capital distributions ------------------------ ------------------------
(0.254) (0.422)
Total distributions
------------------------ ------------------------
NET ASSET VALUE, END OF PERIOD $ 11.552 $ 10.970
------------------------ ------------------------
TOTAL RETURN 7.61% 12.89%*
------------------------ ------------------------
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (In millions) $ 20.2 $ 7.7
RATIOS TO AVERAGE NET ASSETS (1):
Expenses 0.85%** 0.85%
Net investment income 6.89%** 7.26%
PORTFOLIO TURNOVER RATE 45.7% 58.1%
AVERAGE COMMISSION RATE PAID (2) $0.0700 $0.0677
(1) If certain expenses had not been reimbursed by the
Adviser, total return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets: 1.40%** 2.05%**
Ratio of Net Investment Income to Average Net Assets: 6.34%** 6.06%**
(2) Average commission rate paid is computed by dividing
the total dollar amount of commissions paid during the
period by the total number of shares purchased and sold
during the period for which commissions were charged.
+ Amount is less than .0005
* Non-annualized
** Annualized
N/A Not Applicable
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Money Market
Portfolio
---------------------------------------------------------------------------------------------------------------------------
July 1, 1991
(Commencement of
Six Months Ended Years Ended December 31, Investment
June 30, 1997 Operations) to
(Unaudited) 1996 1995 1994 1993 1992 December 31, 1991
--------------------- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.0 $ 1.0 $ 1.0 $ 1.0 $ 1.00 $ 1.00
--------------------- ----------- ----------- ----------- ----------- ----------- ----------------
0.027 0.053 0.059 0.041 0.032 0.038 0.027
0.000 ---- ---- ---- ---- ---- ----
--------------------- ----------- ----------- ----------- ----------- ----------- ----------------
0.027 0.053 0.059 0.041 0.032 0.038 0.027
--------------------- ----------- ----------- ----------- ----------- ----------- ----------------
(0.027) (0.053) (0.059) (0.041) (0.032) (0.038) (0.027)
---- ---- ---- ---- ---- ---- ----
---- ---- ---- ---- ---- ---- ----
---- ---- ---- ---- ---- ---- ----
--------------------- ----------- ----------- ----------- ----------- ----------- ----------------
(0.027) (0.053) (0.059) (0.041) (0.032) (0.038) (0.027)
--------------------- ----------- ----------- ----------- ----------- ----------- ----------------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------- ----------- ----------- ----------- ----------- ----------- ----------------
2.69% 5.42% 6.01% 4.23% 3.24% 3.88% 2.75%
--------------------- ----------- ----------- ----------- ----------- ----------- ----------------
$ 61.7 $ 31.0 $ 34.4 $ 75.9 $ 6.6 $ 4.0 $ 5.4
0.10%** 0.11% 0.11% 0.10% 0.10% 0.10% 0.09%**
5.48%** 5.31% 5.68% 4.37% 3.23% 3.63% 5.11%**
N/A N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A N/A
0.62%** 0.74% 0.64% 0.68% 0.86% 1.30% 1.11%**
4.96%** 4.68% 5.25% 3.79% 2.47% 2.43% 4.10%**
</TABLE>
See notes to financial statements
COVA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE HELD THROUGHOUT THE PERIODS INDICATED
<TABLE>
<CAPTION>
Quality Income
Portfolio
-----------------------------------------------------------------------------
Six Months Ended Years Ended December 31,
June 30, 1997
(Unaudited) 1996 1995 1994 1993 1992 1991
------------ --------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.690 $ 10.871 $ 9.815 $ 10.886 $ 10.699 $ 10.618 $ 9.969
---------- ---------- --------- ---------- --------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
0.393 0.651 0.667 0.603 0.641 0.696 0.753
Net investment income (0.088) (0.359) 1.056 (1.071) 0.518 0.081 0.649
Net realized and unrealized gains (losses) --------- ---------- --------- ---------- --------- ---------- -----------
0.305 0.292 1.723 (0.468) 1.159 0.777 1.402
Total from investment operations --------- ---------- --------- ---------- --------- ---------- -----------
DISTRIBUTIONS (0.577) (0.471) (0.667) (0.603) (0.641) (0.696) (0.753)
Dividends from net investment income -- (0.002) -- -- (0.331) -- --
Distributions from net realized gains -- -- -- -- -- -- --
Distributions in excess of net investment income -- -- -- -- -- -- --
Return of capital distributions --------- ---------- --------- ---------- --------- ---------- -----------
(0.577) (0.473) (0.667) (0.603) (0.972) (0.696) (0.753)
Total distributions
---------- ---------- --------- ---------- --------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 10.418 $ 10.690 $ 10.871 $ 9.815 $ 10.886 $ 10.699 $ 10.618
---------- ---------- --------- ---------- --------- ---------- ----------
TOTAL RETURN 2.87% 2.82% 17.99% (4.33%) 11.04% 7.61% 14.71%
---------- ---------- --------- ---------- --------- ---------- ----------
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (In millions) $ 50.8 $ 51.3 $ 41.4 $ 33.9 $ 51.1 $ 24.1 $ 6.8
RATIOS TO AVERAGE NET ASSETS (1):
Expenses 0.60%** 0.60% 0.60% 0.59% 0.60% 0.60% 0.60%
Net investment income 6.40%** 6.06% 6.42% 5.69% 5.82% 6.87% 7.45%
PORTFOLIO TURNOVER RATE 201.6% 320.3% 219.5% 177.6% 318.4% 231.9% 12.9%
AVERAGE COMMISSION RATE PAID (2) N/A N/A N/A N/A N/A N/A N/A
(1) If certain expenses had not been reimbursed by the
Adviser, total return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets: 0.75%** 0.71% 0.75% 0.68% 0.70% 0.88% 1.10%
Ratio of Net Investment Income to Average
Net Assets: 6.25%** 5.95% 6.27% 5.60% 5.73% 6.59% 6.96%
(2) Average commission rate paid is computed by dividing
the total dollar amount of commissions paid during the
period by the total number of shares purchased and sold
during the period for which commissions were charged.
+ Amount is less than .0005
* Non-annualized
** Annualized
N/A Not Applicable
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Stock Index
Portfolio
--------------------------------------------------------------------------------------------------------------------------
December 11, 1989 November 1, 1991
(Commencement of (Commencement of
Investment Six Months Ended Years Ended December 31, Investment
Operations) to June 30, 1997 Operations) to
1990 December 31, 1989 (Unaudited) 1996 1995 1994 1993 1992 December 31, 1991
- ------------------------------- ------------- -----------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.930 $ 10.000 $ 16.126 $ 13.844 $ 10.587 $ 11.115 $ 10.552 $ 10.572 $ 10.000
- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
0.713 0.043 0.143 0.286 0.260 0.311 0.205 0.172 0.038
0.039 (0.070) 3.164 2.797 3.637 (0.337) 0.726 0.477 0.534
- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
0.752 (0.027) 3.307 3.083 3.897 (0.026) 0.931 0.649 0.572
- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
(0.713) (0.043) (0.142) (0.284) (0.260) (0.311) (0.205) (0.210) --
-- -- (0.079) (0.517) (0.380) (0.185) (0.163) (0.459) --
- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
-- -- -- -- -- (0.006) -- -- --
- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
(0.713) (0.043) (0.221) (0.801) (0.640) (0.502) (0.368) (0.669) --
- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
$ 9.969 $ 9.930 $ 19.212 $ 16.126 $ 13.844 $ 10.587 $ 11.115 $ 10.552 $ 10.572
- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
7.99% (0.27%)* 20.46% 22.48% 36.87% (0.11%) 8.84% 6.22% 5.70%*
- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ----------- -----------
$ 6.1 $ 2.5 $ 71.2 $ 86.6 $ 86.0 $ 36.8 $ 91.3 $ 35.0 $ 6.8
0.74% 0.70%** 0.60%** 0.60% 0.61% 0.58% 0.60% 0.59% 0.40%**
7.64% 7.83%** 1.33%** 1.77% 2.41% 2.23% 2.29% 2.54% 3.02%**
59.3% 0.0% 9.1% 1.3% 3.9% 47.1% 44.1% 85.7% --
N/A N/A $ 0.0307 $ 0.0333 N/A N/A N/A N/A N/A
1.53% 9.15%** 0.74%** 0.67% 0.78% 0.80% 0.74% 1.21% 1.84%**
6.85% (0.62%)** 1.19%** 1.70% 2.24% 2.01% 2.15% 1.92% 1.58%**
</TABLE>
See notes to financial statements
COVA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE HELD THROUGHOUT THE PERIODS INDICATED
<TABLE>
<CAPTION>
VKAC Growth and Income
Portfolio
--------------------------------------------------------------------------
May 1, 1992
(Commencement of
Six Months Ended Years Ended December 31, Investment
June 30, 1997 Operations) to
(Unaudited) 1996 1995 1994 1993 December 31, 1992
------------ -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.986 $ 12.512 $ 10.306 $ 11.170 $ 10.282 $ 10.000
---------- ---------- ---------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
0.111 0.243 0.224 0.331 0.182 0.125
Net investment income 2.190 2.007 3.089 (0.864) 1.371 0.444
Net realized and unrealized gains (losses) ---------- ---------- ---------- -------- -------- --------
2.301 2.250 3.313 (0.533) 1.553 0.569
Total from investment operations ---------- ---------- ---------- -------- -------- --------
DISTRIBUTIONS (0.112) (0.241) (0.232) (0.323) (0.182) (0.125)
Dividends from net investment income (0.200) (0.535) (0.875) (0.008) (0.483) (0.162)
Distributions from net realized gains -- -- -- -- -- --
Distributions in excess of net investment
income -- -- -- -- -- --
Return of capital distributions ---------- ---------- ---------- -------- -------- --------
(0.312) (0.776) (1.107) (0.331) (0.665) (0.287)
Total distributions
---------- ---------- ---------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 15.975 $ 13.986 $ 12.512 $ 10.306 $ 11.170 $ 10.282
---------- ---------- ---------- -------- -------- --------
TOTAL RETURN 16.45% 18.18% 32.24% (4.54%) 15.01% 5.67%*
---------- ---------- ---------- -------- -------- --------
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (In millions) $ 41.9 $ 31.6 $ 19.7 $ 10.9 $ 6.5 $ 2.6
RATIOS TO AVERAGE NET ASSETS (1):
Expenses 0.70%** 0.70% 0.69% 0.70% 0.69% 0.70%**
Net investment income 1.56%** 1.99% 2.05% 3.47% 1.84% 2.27%**
PORTFOLIO TURNOVER RATE 45.6% 113.0% 180.1% 326.0% 135.9% 99.9%
AVERAGE COMMISSION RATE PAID (2) $0.0562 $0.0566 N/A N/A N/A N/A
(1) If certain expenses had not been reimbursed by the
Adviser, total return would have been lower and the
ratios would have been as follows:
Ratio of Expenses to Average Net Assets: 0.86%** 1.02% 1.19% 1.49% 2.05% 3.69%**
Ratio of Net Investment Income to Average Net Assets: 1.40%** 1.67% 1.55% 2.68% 0.47% (0.73%**)
(2) Average commission rate paid is computed by dividing
the total dollar amount of commissions paid during the
period by the total number of shares purchased and sold
during the period for which commissions were charged.
+ Amount is less than .0005
* Non-annualized
** Annualized
N/A Not Applicable
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
High Yield
Portfolio
---------------------------------------------------------------------------------------------------------------------------
December 11, 1989
(Commencement of
Six Months Ended Years Ended December 31, Investment
June 30, 1997 Operations) to
(Unaudited) 1996 1995 1994 1993 1992 1991 1990 December 31, 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10.626 $ 10.446 $ 9.823 $ 11.287 $ 10.445 $ 10.410 $ 9.073 $ 9.974 $ 10.000
----------- ------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
0.429 0.952 0.949 0.978 1.028 1.250 1.124 1.085 0.053
0.082 0.187 0.621 (1.464) 1.170 0.658 1.337 (0.901) (0.026)
----------- ------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
0.511 1.139 1.570 (0.486) 2.198 1.908 2.461 0.184 0.027
----------- ------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
(0.419) (0.954) (0.947) (0.978) (1.028) (1.250) (1.124) (1.085) (0.053)
-- -- -- -- (0.328) (0.623) -- -- --
-- (0.005) -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- --
----------- ------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
(0.419) (0.959) (0.947) (0.978) (1.356) (1.873) (1.124) (1.085) (0.053)
----------- ------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
$ 10.718 $ 10.626 $ 10.446 $ 9.823 $ 11.287 $ 10.445 $ 10.410 $ 9.073 $ 9.974
----------- ------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
4.79% 11.29% 16.69% (4.52%) 21.98% 19.12% 28.31% 1.86% 0.23%*
$ 44.0 $ 41.1 $ 36.5 $ 19.7 $ 18.8 $ 5.4 $ 3.8 $ 2.9 $ 2.5
0.85%** 0.85% 0.86% 0.86% 0.84% 0.87% 0.86% 1.01% 0.95%**
8.27%** 8.89% 9.50% 9.48% 8.97% 11.67% 11.31% 11.43% 9.67%**
64.1% 117.3% 118.9% 200.1% 213.1% 157.4% 147.6% 28.3% 0.0%
N/A N/A N/A N/A N/A N/A N/A N/A N/A
0.98%** 1.04% 1.09% 1.16% 1.38% 1.79% 1.91% 2.42% 9.42%**
8.14%** 8.70% 9.27% 9.18% 8.43% 10.75% 10.25% 10.01% 1.19%**
</TABLE>
See notes to financial statements
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Cova Series Trust (the "Trust") is registered as a diversified open-end
management investment company under the Investment Company Act of 1940, as
amended. The Trust offers eleven portfolios to its policyholders for investment,
each of which operates as a distinct investment vehicle of the Trust. J.P.
Morgan Investment Management Inc. manages the Small Cap Stock Portfolio, Quality
Bond Portfolio, Select Equity Portfolio, Large Cap Stock Portfolio, and
International Equity Portfolio. Lord Abbett & Co. manages the Bond Debenture
Portfolio. Van Kampen American Capital Investment Advisory Corporation manages
the Money Market Portfolio, Quality Income Portfolio, Stock Index Portfolio,
VKAC Growth and Income Portfolio, and the High Yield Portfolio. Depending on the
policyholder's contract, not all portfolios are available to all policyholders.
The Trust commenced operations on December 11, 1989 with the Quality Income
Portfolio and High Yield Portfolio. The Money Market Portfolio commenced
operations on July 1, 1991. The Stock Index Portfolio commenced operations on
November 1, 1991. The VKAC Growth and Income Portfolio commenced operations on
May 1, 1992. The Small Cap Stock Portfolio, Quality Bond Portfolio, Select
Equity Portfolio, Large Cap Stock Portfolio, International Equity Portfolio and
Bond Debenture Portfolio commenced operations on April 2, 1996.
The preparation of financial statements in conformity with generally accepted
accounting principles may require management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during the
reporting period. Although actual results could differ from these estimates, any
such differences are expected to be immaterial to the net assets of the Funds.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements.
A. SECURITY VALUATION - Investments in securities listed on a securities
exchange are valued at their sale price as of the close of such securities
exchange. If there was no sale on such day, the securities are valued at the
mean between the most recently quoted bid and asked prices. Investments in
securities not listed on a securities exchange are valued based on their last
quoted bid price or, if not available, their fair value as determined in good
faith by the Board of Trustees. Domestic fixed income investments are stated at
values using the mean between the most recently quoted bid and asked prices.
Foreign fixed income securities are valued at their sale price as of the close
of such securities exchange. If such valuations are not available, estimates
obtained from yield data relating to instruments or securities with similar
characteristics in accordance with procedures established in good faith by the
Board of Trustees are used. Short-term securities with remaining maturities of
less than 60 days are valued at amortized cost. For the Money Market Portfolio,
investments are valued at amortized cost, which approximates market value. Under
this valuation method, a portfolio instrument is valued at cost and any discount
or premium is amortized on a straight line basis to the maturity of the
investment. Futures contracts and options are valued based upon their daily
settlement prices.
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
B. SECURITY TRANSACTIONS - Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Funds may purchase and sell securities on a "when issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Funds will
maintain in a segregated account with their custodian assets having an aggregate
value at least equal to the amount of the when issued or delayed delivery
purchase commitments until payment is made.
C. INVESTMENT INCOME AND EXPENSES - Dividend income is recorded on the
ex-dividend date and interest income and expenses are recorded when earned or
incurred, respectively.
D. FEDERAL INCOME TAXES - It is the Trust's policy to comply with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
taxable income, including net realized gains, if any, to its shareholders.
Accordingly, the Funds have not recorded a provision for federal income taxes.
Distributions from net investment income and capital gains are determined in
accordance with federal income tax regulations which may differ from generally
accepted accounting principles. As a result, distributions may differ from net
investment income and net realized capital gains due to timing differences.
E. DISTRIBUTION OF INCOME AND GAINS - The Funds, except the Money Market
Portfolio, declare, pay and automatically reinvest dividends semi-annually from
net investment income. The Money Market Portfolio declares dividends from net
investment income daily and automatically reinvests such dividends daily.
Net realized gains, if any, are distributed annually. Distributions are
automatically reinvested in the Funds as additional shares. Distributions from
net realized gains for book purposes may include short-term capital gains and
gains from futures transactions which may be characterized as ordinary income
for tax purposes.
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
F. DERIVATIVES - A derivative financial instrument, in general terms, is a
security whose value is "derived" from the value of an underlying asset,
reference rate or index. The Funds have various reasons to use derivative
instruments, such as to attempt to protect the Portfolios against possible
changes in the market value of its investments or to generate potential gains.
All of the Funds' holdings, including derivative instruments, are marked to
market each day with the change in value reflected in the unrealized
appreciation/depreciation of investments. Upon disposition, a realized gain or
loss is recognized accordingly.
The primary risks associated with the use of these financial instruments for
hedging purposes are (a) an imperfect correlation between the change in market
value of the other securities held by the Funds and the change in market value
of these financial instruments, and (b) the possibility of an illiquid market.
As a result, the use of these financial instruments may involve, to a varying
degree, elements of market risk in excess of the amount recognized in the
Statement of Assets and Liabilities. The following are brief descriptions of
derivative instruments held by the Funds.
a. FUTURES CONTRACTS - A futures contract is an agreement involving the
delivery of a particular asset on a specified future date at an agreed upon
price. The Funds generally invest in stock index futures. These contracts are
generally used to provide the return of an index without purchasing all of the
securities underlying the index or as a substitute for purchasing or selling
specific securities.
Initial margin deposits made upon entering into futures contracts are recognized
as assets due from the broker. During the period the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking to market" on a daily basis to reflect the value of the
contract at the end of each day's trading. Variation margin payments are made or
received and recognized as assets due from or liabilities to the broker
depending upon whether unrealized gains or losses are incurred. When the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
its basis in the contract.
b. OPTIONS CONTRACTS - An option contract gives the buyer the right,
but not the obligation, to buy (call) or sell (put) an underlying item at a
fixed exercise price during a specified period. These contracts are generally
used by the Funds to provide the return of an index without purchasing all of
the securities underlying the index or as a substitute for purchasing or selling
specific securities.
Purchases of put and call options are recorded as an investment, the value of
which is marked-to-market daily. When a purchased option expires, the Fund will
realize a loss equal to the premium paid. When the Fund enters into a closing
sale transaction, the Fund will realize a gain or loss depending on whether the
sales proceeds from the closing sale transaction are greater or less than the
cost of the option. When the Fund exercises a put option, it will realize a gain
or loss from the sale of the underlying security and the proceeds from such sale
will be decreased by the premium originally paid. When the Fund exercises a call
option, the cost of the security which the Fund purchases upon exercise will be
increased by the premium originally paid.
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
F. DERIVATIVES - CONTINUED
The premium received for a written option is recorded as a liability. The
liability is marked-to-market based on the option's quoted daily settlement
price. When an option expires or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss if the cost of the closing
purchase transaction exceeds the premium received when the option was sold)
without regard to any unrealized gain or loss on the underlying security and the
liability related to such option is eliminated. When a written call option is
exercised, the Fund realizes a gain or loss from the sale of the underlying
security and the proceeds from such sale are increased by the premium originally
received. If a written put option is exercised, the amount of the premium
originally received will reduce the cost of the underlying security which the
Fund purchased.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity for profit if the market price of the underlying security increases
and the option is exercised. The risk in writing a put option is that the Fund
may incur a loss if the market price of the underlying security decreases and
the option is exercised. In addition, the Fund could be exposed to risks if the
counterparties to the transactions are unable to meet the terms of the
contracts.
c. FORWARD FOREIGN CURRENCY CONTRACTS - The International Equity
Portfolio may enter into forward foreign currency contracts to hedge its
portfolio holdings against future movements in certain foreign currency exchange
rates. A forward currency contract is a commitment to purchase or sell a foreign
currency at a future date at a set price. The forward currency contracts are
valued at the forward rate and are marked-to-market daily. The change in market
value is recorded by the Fund as an unrealized gain or loss. When the contract
is closed, the Fund recognizes a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed.
The use of forward foreign currency contracts does not eliminate fluctuations in
the underlying prices of the securities of the Fund, but it does establish a
rate of exchange that can be achieved in the future. Although forward foreign
currency contracts limit the risk of loss due to a decline in the value of the
currency holdings, they also limit any potential gain that might result should
the value of the currency increase. In addition, the Fund could be exposed to
risks if the counterparties to the contracts are unable to meet the terms of the
contracts.
G. FOREIGN CURRENCY TRANSLATION - Assets and liabilities denominated in foreign
currencies are translated into U.S. dollars at the rate of exchange at the end
of the period. Purchases and sales of securities are translated at the rates of
exchange prevailing when such securities were acquired or sold. Income is
translated at rates of exchange prevailing when interest is accrued or dividends
are recorded.
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
G. FOREIGN CURRENCY TRANSLATION - CONTINUED
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency gains
or losses realized between the trade and settlement dates on securities
transactions, the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the Fund's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at fiscal year end, resulting
from changes in the exchange rate.
H. REPURCHASE AGREEMENTS - The Funds may enter into repurchase agreements with
selected commercial banks and broker-dealers, under which the Fund acquires
securities and agrees to resell the securities at an agreed upon time and at an
agreed upon price. The Fund accrues as interest the difference between the
amount it pays for the securities and the amount it receives upon resale. At the
time the Fund enters into a repurchase agreement, the value of the underlying
security including accrued interest will be equal to or exceed the value of the
repurchase agreement and, for repurchase agreements that mature in more than one
day, the seller will agree that the value of the underlying security including
accrued interest will continue to be at least equal to the value of the
repurchase agreement.
I. REVERSE REPURCHASE AGREEMENTS - The Funds may enter into reverse repurchase
agreements with selected commercial banks or broker-dealers. In a reverse
repurchase agreement, the Fund sells securities and agrees to repurchase them at
a mutually agreed upon date and price. During the reverse repurchase agreement
period, the Fund continues to receive principal and interest payments on these
securities but pays interest to the counter-party based upon competitive market
rates at the time of issuance. At the time the Fund enters into a reverse
repurchase agreement, it will establish and maintain a segregated account with
the custodian containing liquid assets having a value not less than the
repurchase price (including accrued interest). If the counterparty to the
transaction is rendered insolvent, the ultimate realization of the securities to
be repurchased by the Fund may be delayed or limited.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has entered into an investment advisory agreement with Cova Investment
Advisory Corporation (the "Adviser") (formerly Oakbrook Investment Advisory
Corporation), pursuant to which the Adviser manages the investment operations of
the Trust's affairs. The Adviser has entered into sub-advisory agreements with
J.P. Morgan Investment Management Inc., Lord Abbett & Co. and Van Kampen
American Capital Investment Advisory Corporation ( the "Sub-advisers") for
investment advisory services in connection with the investment or management of
the portfolios of the Funds. The Adviser supervises the Sub-advisers'
performance of advisory services and will make recommendations
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
to the Board of Trustees with respect to the retention or renewal of the
sub-advisory agreements. The Adviser pays the Sub-advisers and bears the cost of
compensating officers of the Trust.
Under the terms of the Funds' investment advisory agreement, the Funds pay the
Adviser a monthly fee based on the average daily net assets as follows:
Fund Average Daily Net Assets % Per Annum
- ---- ------------------------ -----------
Small Cap Stock .85 of 1%
------------------------
Quality Bond First $75 Million .55 of 1%
Over $75 Million .50 of 1%
Select Equity First $50 Million .75 of 1%
Over $50 Million .65 of 1%
Large Cap Stock .65 of 1%
-------------------------
International Equity First $50 Million .85 of 1%
Over $50 Million .75 of 1%
Bond Debenture .75 of 1%
------------------------
Money Market Over $500 Million .40 of 1%
Quality Income First $500 Million .50 of 1%
Over $500 Million .45 of 1%
Stock Index .50 of 1%
-------------------------
VKAC Growth and Income First $500 Million .60 of 1%
Over $500 Million .50 of 1%
High Yield First $500 Million .75 of 1%
Over $500 Million .65 of 1%
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
The Adviser has voluntarily waived its monthly advisory fee for the Money Market
Portfolio. In addition, the Adviser has voluntarily waived or otherwise
reimbursed the Funds for their operating expenses, exclusive of brokerage or
other portfolio transaction expenses or expenses of litigation, indemnification,
taxes, or other extraordinary expenses, to the extent that they exceed .10% of
the average daily net assets of each Fund.
Cova Variable Annuity Accounts One and Five are separate investment accounts
offered by Cova Financial Services Life Insurance Co. and Cova Financial Life
Insurance Co. (collectively "Cova Life"), respectively. At June 30, 1997, Cova
Variable Annuity Accounts One and Five owned all shares of beneficial interest
of the Funds.
3. INVESTMENT TRANSACTIONS
Aggregate cost of purchases and proceeds of sales of investment securities,
excluding short-term notes, for the period ended June 30, 1997 were as follows:
Purchases
----------------------------------------------
Portfolio: Government Non-Government Total
- ---------- ---------- -------------- -----
Small Cap Stock $ 0 $ 27,703,212 $ 27,703,212
Quality Bond 5,194,532 749,301 5,943,833
Select Equity 0 55,853,315 55,853,315
Large Cap Stock 0 5,217,864 5,217,864
International Equity 0 30,086,951 30,086,951
Bond Debenture 3,133,563 12,791,838 15,925,401
Quality Income 34,323,535 73,786,303 108,109,838
Stock Index 0 6,765,479 6,765,479
VKAC Growth and Income 0 19,935,482 19,935,482
High Yield 0 22,990,889 22,990,889
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
3. INVESTMENT TRANSACTIONS - CONTINUED
Sales
----------------------------------------------
Portfolio: Government Non-Government Total
- ---------- ---------- -------------- -----
Small Cap Stock $ 0 $ 11,824,764 $ 11,824,764
Quality Bond 2,337,077 635,555 2,972,632
Select Equity 0 28,042,398 28,042,398
Large Cap Stock 0 6,653,512 6,653,512
International Equity 0 9,473,766 9,473,766
Bond Debenture 750,879 4,652,937 5,403,816
Quality Income 27,440,234 78,742,119 106,182,353
Stock Index 0 40,713,295 40,713,295
VKAC Growth and Income 0 15,593,538 15,593,538
High Yield 515,156 26,767,448 27,282,604
At June 30, 1997, the cost of securities for federal income tax purposes and the
unrealized appreciation (depreciation) of investments for federal income tax
purposes for each Portfolio was as follows:
Federal Gross Gross
Income Unrealized Unrealized
Portfolio: Tax Cost Appreciation (Depreciation)
- ---------- -------- ------------ --------------
Small Cap Stock $28,797,187 $ 3,544,037 $ (816,063)
Quality Bond 8,083,393 71,966 (9,097)
Select Equity 52,841,051 6,126,837 (351,637)
Large Cap Stock 15,090,300 4,185,401 (205,575)
International Equity 35,458,666 3,852,585 (456,956)
Bond Debenture 18,242,894 810,326 (39,069)
Money Market 62,115,129 -- --
Quality Income 49,936,336 581,214 (94,656)
Stock Index 46,266,154 25,616,110 (722,414)
VKAC Growth and Income 34,158,022 7,959,208 (397,493)
High Yield 42,696,048 1,268,594 (75,664)
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
3. INVESTMENT TRANSACTIONS - CONTINUED
The Quality Income Portfolio invests in reverse repurchase agreements for cash
management purposes. The average daily balance of reverse repurchase agreements
outstanding during the period was $1,758,700 at a weighted average interest rate
of 4.81%. The maximum amount of borrowing during the six months ended June 30,
1997 was $4,096,250 (including accrued interest).
4. FUTURES CONTRACTS
Transactions in futures contracts for the year ended June 30, 1997, were as
follows:
VKAC
Quality Income Stock Index Growth and Income
Portfolio Portfolio Portfolio
--------- --------- ---------
Futures Contracts Outstanding at
December 31, 1996 25 5 4
Contracts Opened 378 61 6
Contracts Closed (348) (57) (8)
---- ---- ----
Futures Contracts Outstanding a
June 30, 1997 55 9 2
==== ==== ====
The futures contracts outstanding as of June 30, 1997 and the description and
unrealized appreciation (depreciation) were as follows:
Unrealized
Appreciation /
Contracts Value (Depreciation)
--------- ----- ------------
Quality Income Portfolio:
U.S. Long Bond
September 1997 - Sales to Close 55 $6,108,438 $ (34,375)
Stock Index Portfolio:
S&P 500 Index Futures
September 1997 - Buys to Open 9 $4,006,125 $ (24,822)
VKAC Growth & Income Portfolio:
S&P 500 Index Futures
September 1997 - Buys to Open 2 $ 890,250 $ 6,200
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
5. FORWARD FOREIGN CURRENCY CONTRACTS
Open foreign forward currency contracts for the International Equity Portfolio
at June 30, 1997 were as follows:
Forward Foreign Currency Contracts to Buy:
<TABLE>
<CAPTION>
Settlement Value at In Unrealized
June 30, Exchange Appreciation/
Date Contracts to Receive 1997 for U.S. $ (Depreciation)
---- -------------------- ---- --------- --------------
<S> <C> <C> <C> <C>
7/08/97 304,947 Deutsche Mark $ 175,135 $ 180,000 $(4,865)
7/08/97 292,802,090 Japanese Yen 2,562,074 2,517,274 44,800
</TABLE>
Forward Foreign Currency Contracts to Sell:
<TABLE>
<CAPTION>
Settlement Value at In Unrealized
June 30, Exchange Appreciation/
Date Contracts to Receive 1997 for U.S. $ (Depreciation)
---- -------------------- ---- --------- --------------
<S> <C> <C> <C> <C>
7/08/97 553,926 Deutsche Mark $ 318,127 $ 331,236 $ 13,109
7/08/97 1,104,686 French Franc 188,302 197,441 9,139
7/08/97 344,432,812 Japanese Yen 3,014,057 2,845,760 (168,297)
</TABLE>
COVA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
6. MORTGAGE AND ASSET BACKED SECURITIES
The Quality Income and Quality Bond Portfolios invest in Mortgage and Asset
Backed Securities. A Mortgage Backed Security (MBS) is a pass-through security
created by pooling and selling participations in the principal and interest
payments received from borrowers. Most of these securities are guaranteed by
federally sponsored agencies -- Government National Mortgage Association (GNMA),
Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage
Corporation (FHLMC) or Federal Home Loan Bank (FHLB).
A Collateralized Mortgage Obligation (CMO) is a bond which is collateralized by
a pool of MBSs. The Quality Income and Quality Bond Portfolios also invest in
REMICs (Real Estate Mortgage Investment Conduits) which are simply another form
of CMO. These MBS pools are divided into classes or tranches with each class
having its own characteristics. For instance, a PAC (Planned Amortization Class)
is a specific class of mortgages with the most stable cash flow and the lowest
prepayment risk.
Asset Backed Securities are similar to MBSs but made up of pools of other
assets, such as credit card receivables, which are grouped together for
investment purposes. Payments of principal and interest on the securities are
made from the cash flows of the group of assets.
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