<PAGE>
- ------------------------------------------------------------------
- --------------
SHAREHOLDER LETTER
- ------------------------------------------------------------------
- --------------
Dear Shareholders:
As President of Endeavor Series Trust, I am pleased to bring you
performance,
market and portfolio activity information on the portfolios of
Endeavor Series
Trust ("Portfolios") for the fiscal year ended December 31, 1995.
As you know,
the Endeavor Variable Annuity represents a variety of Managers and
a diverse
choice of investment disciplines with distinctly different
management styles.
Under the direction of the Endeavor Management Team, the
Portfolios of
Endeavor Series Trust have delivered strong, competitive returns,
while
providing shareholders with a quality portfolio of investments.
The following pages include a section authored by members of the
Endeavor
Management Team. Their discussions review general stock market
trends and
developments, discuss portfolio management strategies and
performance for the
period and include a few comments on how they see the future.
I would like to express my sincere appreciation for your continued
support of
the Endeavor Variable Annuity and Endeavor Series Trust. If you
should have
any thoughts or comments, please do not hesitate to contact us.
Sincerely,
James A. Shepherdson
President
February 15, 1996
1
<PAGE>
- ------------------------------------------------------------------
- --------------
MONEY MARKET PORTFOLIO
- ------------------------------------------------------------------
- --------------
The Money Market Portfolio emphasizes principal protection and
diversification
by investing in high quality money market instruments. The
Portfolio was
specifically designed to meet the needs of shareholders seeking a
competitive
return with a high degree of safety.
PORTFOLIO PERFORMANCE DURING 1995
This year was a volatile period for short-term interest rates. The
federal
funds rate started the year at 5.50%, rose 0.50% to 6.00% by the
end of January
and subsequently fell 0.25% in both July and December to end the
year where it
began at 5.50%. This volatile pattern reflects the Federal
Reserve's policy of
tightening, and then gradually easing, credit conditions as
inflation and real
economic growth moderated during the year.
Anticipating the Federal Reserve Board (the "Federal Reserve")
policy, we
extended the Portfolio from a dollar-weighted average maturity of
30 days to 40
days during the second quarter, to 50 days in the third quarter,
and finally,
to 60 days in the fourth quarter. In comparison, the IBC/Donahue's
All Taxable
Money Market Fund Index average maturity ended the year at 54
days. Our
strategy is to be positioned with a moderately longer target
maturity than the
average money market fund to take advantage of the falling
interest rate
environment. This strategy resulted in a return of 5.54%, net of
fees and
expenses, for 1995.
OUTLOOK FOR 1996
In 1995, the U.S. economy attained a 2.5% rate of real growth in
conjunction
with a similar rate of inflation. Although the Federal Reserve has
begun
lowering interest rates, the Federal Reserve insists that the
fight against
inflation must persist due to the fear that stronger growth could
reappear.
Given the government's commitment to fiscal discipline and a
cautious consumer,
we are concerned that the Federal Reserve's passion to control
inflation may
have the undesired effect of extinguishing the present modest
level of growth.
Our interest rate forecast, which incorporates our view that the
federal funds
interest rate should decline to 4.50%, reflects our optimism that
the Federal
Reserve will lower short-term interest rates thereby avoiding a
recession.
We believe that the Portfolio's conservative investment philosophy
continues to
offer an excellent means of addressing our shareholders' short-
term investment
requirements. Although we seek competitive yields, our stringent
credit
standards are never compromised in the process. TCW Funds
Management, Inc. does
not hold derivative products in the Portfolio and has consistently
maintained a
conservative investment strategy towards new investment vehicles.
We are
pleased with the Portfolio's results and look forward to an
equally successful
1996.
2
<PAGE>
- ------------------------------------------------------------------
- --------------
MANAGED ASSET ALLOCATION PORTFOLIO
-----------------------------------------------------------------
- --------------
As often occurs, the financial markets confounded the consensus of
experts
last year. Contrary to expectations, economic growth moderated,
thereby
reducing inflationary pressures and allowing the Federal Reserve
Board (the
"Fed") to discontinue its restrictive policy. The resulting
roughly 200 basis
points plunge in bond yields to 6%--in part due to hopes for a
budget deal--
coupled with continued strong corporate profit growth, enabled the
stock
market to enjoy one of its best years in history. As is usually
the case when
interest rates are declining sharply, the expansion of
Price/Earnings ("P/E")
ratios made the Standard & Poor's Composite Index of 500 Stocks
("S&P 500") a
formidable competitor for active managers.
As 1996 opens, some observers question whether this bull trend in
stocks can
continue, particularly since optimism is so high, and it is
unlikely the same
degree of profit gains and interest rate reductions will repeat in
1996.
Although we reject out-of-hand any notion of a "new era," we
believe the
current outlook is still conducive to achieving worthwhile returns
from large
capitalization domestic equities. Dividend yields are at record
lows, but
stock buybacks, debt reduction, and strategic mergers have become
important
forces. P/E ratios are still reasonable relative to bond yields,
provided
profits continue to increase. Cash flows into contributory
retirement plans
are an increasingly important source of demand, a firmer dollar
should attract
offshore investors, and money market yields are not especially
inviting.
We recognize the economy is losing forward momentum, however, and
believe a
new round of Fed easing will be required to maintain moderate
growth and
enable higher corporate profits, strong excess cash flow and
stable to
slightly higher P/E ratios. This process appears to have begun,
and we expect
a recession to be avoided as an easier monetary policy takes hold.
Corporate
profits continue to benefit from: (a) ongoing productivity gains
resulting
from years of refocusing, restructuring and downsizing, (b) rapid
advances in
electronic information and communications technology, and (c)
burgeoning
export demand from a broadening array of trade partners for both
capital goods
and consumer products. These conditions have combined to produce
the highest
returns on equity in the nation's history. Admittedly, earlier
write-offs of
nonperforming assets have played some part in raising returns.
Even under
conditions of slow growth, those companies with strong new product
cycles and
broad exposure to markets abroad should continue to achieve solid
earnings
progress in the year ahead.
There are, however, several concerns which bear monitoring, as
these have the
potential to interrupt the favorable economic outlook. Consumer
debt levels
have increased substantially during this expansion, and consumers
may need
time to catch their breath. Business inventories still seem
excessive, and any
retrenching of consumers and the paring of excess inventories
could have an
impact on job and income growth and consumer confidence. Continued
cost
cutting in the service and retail trade industries could lead to
another large
round of layoffs. Also, fiscal drag will continue at the Federal,
state and
local levels even if some tax cuts are enacted. All of this must
be apparent
to the Fed, however, as it appears to have embarked on a new round
of monetary
easing.
At the same time, inflationary pressures continue to be held in
check, which
also restrains credit demands and interest rates, thereby aiding
financial
asset prices. Competition from abroad, as well as ongoing
productivity gains
and a more price conscious consumer intent on increasing savings
for
retirement, are all restraining both cost push and demand pull
inflation.
There is, however, a growing risk of worker backlash, which could
begin to
reverse at the margin the flow of economic rewards away from
capital and back
toward labor whose real wages have been stagnant for years. As
employment
levels rise further, fears over job security may abate and
encourage a new
aggressiveness in wage negotiations.
The past year, 1995, was a year of solid, positive returns for the
Managed
Asset Allocation Portfolio. For the full year, the Portfolio had
an aggregate
total return of 22.91%, consistent with the average returns of
asset
allocation and balanced portfolios within the Lipper and
Morningstar indices.
Since inception in April, 1991, the portfolio has delivered a
cumulative
return in excess of 68.52% (net of expenses). Fourth quarter
results were
affected by a sharp correction in many technology holdings as
fears of
overcapacity rose in response to the slowing economy. We believe
strongly that
technology stocks should not be abandoned at this juncture because
they
represent investment exposure to several powerful trends that
appear to have
staying power well into the future. Moreover, the past quarter has
brought
many high quality issues back to statistically compelling
valuations relative
to their prospects for strong profit growth in 1996. The world is
in the early
stages of an enormous economic boom, supported by the spread of
free
enterprise as well as by American capital, technology and know-
how. The
implications for these companies extend far beyond what any of us
can see at
present.
In the aftermath of the Cold War numerous formerly state-
controlled economies,
not only in the U.S.S.R. but in many other less-developed
countries as well,
have begun to embrace free market economics. Vital to the success
of their
efforts is the gradual privatization of huge, inefficient state-
run
enterprises whose subsidies have been a drain on each government's
taxpayers.
As this occurs, every country, and this includes the more mature
Organization
for Economic Cooperation and Development economies as well, is
faced with
greatly intensified competition. Each must strive to become
globally
competitive in order to defend local production from foreign
competition and
to exploit global market opportunities. In order to do so, all
companies are
shedding excess plants, workers and redundant layers of management
and
adopting state-of-the-art methods and machinery.
3
<PAGE>
- ------------------------------------------------------------------
- --------------
MANAGED ASSET ALLOCATION PORTFOLIO
- ------------------------------------------------------------------
- --------------
During the 1980s U.S. leadership in the electronic, communications
and
information technology industries was eroding relative to
competitors abroad,
particularly in Japan and Asia. Our research spending and capital
outlays had
declined relative to the competition, and the results had begun to
show.
Within the last half decade or so, however, a huge emphasis on
research
spending has restored America's leadership across a broad spectrum
of
technologies ranging from microprocessors to software and
networked computing.
In addition, the competition unleashed by the breakup of AT&T
eleven years ago
has sparked an enormous drive for productivity and service
enhancement in the
communications industry which is spreading from American telephone
companies
to phone companies around the globe. In brief, American technology
has become
vitally important not only for the competitive enhancement of
mature economies
but is equally important for emerging economies, which can no
longer
substitute printing press money and state subsidies for the
reality of open
competition.
The intensity of competition domestically and from abroad is
preventing most
companies from enjoying any pricing power. Virtually all suppliers
to the
automobile industry and the "power retailers," for example, are
forced to
reduce prices each year, sharing their productivity gains with
their customers
while gaining in return the volume increases that accrue to the
strongest
competitors. This phenomenon benefits technology company profits
and
ultimately their stock prices in two ways. First, the ever-
increasing power
and performance of computers, servers, PCs, telecommunications
devices,
software, and computer aided design and manufacturing equipment
and their
widespread deployment in factories, offices and retail
establishments enhance
the productivity of their users enormously and help to offset
these pricing
pressures. Secondly, in a deflationary economic expansion, such as
the world
is now experiencing, the technology companies stand out because
their costs
typically decline each year enabling them to reduce prices, more
or less
maintain margins (subject to product mix), and continue to expand
demand for
their products as well as operating profits.
Therefore, in line with our long-term orientation, we elected to
ride out the
fourth quarter correction in selected issues in the belief that
their dynamic
product cycles will permit strong revenue and profit gains this
year and
beyond. Since an economic slowdown and a major decline in interest
rates have
already occurred in 1995 and resulted in the expansion of P/E
valuations for
many defensive, moderate growth equities that dominate the S&P
500, we now
expect a series of easing moves by the Fed and other central banks
abroad will
revitalize the global economy and, correspondingly, the outlook
for those
industrial and technology issues which dominate our portfolios.
This should
enable TCW Funds Management, Inc. to achieve much better relative
investment
performance in 1996. As we see it, the principal risk to our
outlook stems not
so much from the possibility of recession as it does from the
potential that
interest rates could reverse course and begin to rise later this
year either
because of failure to enact a credible Federal deficit reduction
package or
because economic growth reaccelerates above a noninflationary pace
in response
to Fed stimulus and a tax cut. Of course, continued high real
interest rates
acting as a drag on both the economy and the profits of industrial
companies
would prolong the leadership of defensive issues. All in all,
however, we
enter 1996 with conviction that our portfolios are well positioned
for good
performance. The projected gain in profits of our portfolio
companies is
double the consensus profit growth forecast for the S&P 500, while
our
valuations are not much different.
Once again, we thank you for your confidence and trust, and we
welcome your
comments.
4
<PAGE>
-----------------------------------------------------------------
- --------------
MANAGED ASSET ALLOCATION PORTFOLIO
- ------------------------------------------------------------------
- --------------
PORTFOLIO HIGHLIGHTS
DECEMBER 31, 1995
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN MANAGED ASSET
ALLOCATION
PORTFOLIO
VS.
S & P 500 STOCK INDEX AND LEHMAN GOVERNMENT/CORPORATE BOND
INDEX+
APRIL 8, 1991 THROUGH DECEMBER 31, 1995
[PORTFOLIO'S PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Managed Asset Lehman
Gov't/
Allocation S & P 500 Corporate
Date Portfolio* Stock Index* Bond
Index*
---- --------- ----------- ----------
<S> <C> <C> <C>
4/8/91 10,000.00 10,000.00 10,000.00
12/91 11,370.00 11,388.46 11,308.00
12/92 12,395.00 12,254.92 12,165.00
12/93 14,476.00 13,487.38 13,507.00
12/94 13,711.00 13,664.54 13,033.00
12/95 16,852.00 18,793.34 15,541.00
</TABLE>
NOTE: THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT
A GUARANTEE
OF FUTURE RESULTS. THE PORTFOLIO'S SHARE PRICE AND INVESTMENT
RETURN WILL VARY
WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN
REDEEMED, MAY
BE MORE OR LESS THAN ORIGINAL COST. THE GRAPH ABOVE DOES NOT
REFLECT SEPARATE
ACCOUNT EXPENSES FOR THE ENDEAVOR VARIABLE ANNUITY.
+ The S & P 500 Stock Index is an index composed of 500 widely
held common
stocks listed on the New York Stock Exchange, American Stock
Exchange and over-
the-counter market.
The Lehman Government/Corporate Bond Index is an index composed of
U.S.
government, treasury and agency securities, corporate and Yankee
bonds.
Index information is available at month-end only; therefore, the
closest month-
end to inception date of the Portfolio has been used.
- ------------------------------------------------------------------
- --------------
AVERAGE ANNUAL TOTAL RETURN*
<TABLE>
<CAPTION>
MANAGED ASSET ALLOCATION PORTFOLIO ACTUAL WITHOUT WAIVERS
---------------------------------- ------ ---------------
<S> <C> <C>
Year ended 12/31/95 22.91% N/A
Inception (04/08/91) through 12/31/95 11.65% 11.28%
- ------------------------------------------------------------------
- --------------
</TABLE>
* Assumes the reinvestment of all dividends and
distributions.
5
<PAGE>
- ------------------------------------------------------------------
- --------------
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
- ------------------------------------------------------------------
- --------------
The Portfolio (formerly known as Global Growth Portfolio) had a
total return
of 10.37% for 1995, compared to a total return of 11.21% (net of
withholding
taxes) for the unmanaged Morgan Stanley Capital International
(MSCI) EAFE
Index.
Performance in the international markets was reasonable except
when compared
with the remarkable U.S. stock market, which returned 37.6% as
measured by the
Standard & Poor's 500 Stock Index. Only Switzerland surpassed U.S.
stocks in
dollar terms. Established markets outperformed emerging markets
worldwide.
During the year, Japan, Germany, and France rose, while Brazil,
Mexico, China,
Korea, and many other markets fell in value.
We believe there are persuasive reasons to pursue a policy of
international
diversification over the long term, despite the superior
performance of
domestic equities last year. Foreign markets account for nearly
two-thirds of
world capitalization, and many of them offer the potential for
stronger
economic growth than the U.S.
We see earnings growth slowing in the U.S. during 1996, while
remaining strong
internationally. Inflation is under control in Europe, monetary
policy is
easing, and earnings growth is approximately two years behind the
U.S. cycle.
Japan shows signs of economic recovery after a policy of
aggressive relation.
Asian earnings growth may look pedestrian measured against
historical
standards, but it is still projected around 20%. Asian stock
markets currently
look cheaper than they did after both the 1987 crash and the last
recession.
Similarly, much of the bad news in Latin America is already
reflected in
regional stock prices. Therefore, we expect international stocks
to perform
reasonably well in 1996, and we will remain focused on buying
shares at
appealing prices.
On March 24, 1995, A Special Meeting of Shareholders of the
Portfolio was
held, at which time shareholders approved a new investment
advisory agreement
between Endeavor Investment Advisers and Rowe Price-Fleming
International,
Inc. In addition, shareholders also approved a change to the
Portfolio's
investment objective from global growth to international growth.
6
<PAGE>
- ------------------------------------------------------------------
- --------------
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
- ------------------------------------------------------------------
- --------------
PORTFOLIO HIGHLIGHTS
DECEMBER 31, 1995
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN T. ROWE PRICE
INTERNATIONAL
STOCK PORTFOLIO
VS.
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX+
JANUARY 1, 1995 THROUGH DECEMBER 31, 1995
[PORTFOLIO'S PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
MORGAN STANLEY CAPITAL T. ROWE
PRICE
YEAR INTERNATIONAL EAFE INDEX* INTERNATIONAL STOCK
PORTFOLIO*
- ---- ------------------------- --------------------
- ----------
<S> <C> <C>
DEC. 1994 10,000 10,000
MAR. 1995 10,186.28 10,000
JUN. 1995 10,260.24 10,276
SEP. 1995 10,687.98 10,729
DEC. 1995 11,120.78 11,037
</TABLE>
NOTE: PREVIOUS PERIODS DURING WHICH THE PORTFOLIO WAS ADVISED BY
ANOTHER
INVESTMENT ADVISER ARE NOT SHOWN. THE PERFORMANCE SHOWN REPRESENTS
PAST
PERFORMANCE AND IS NOT A GUARANTEE OF FUTURE RESULTS. THE
PORTFOLIO'S SHARE
PRICE AND INVESTMENT RETURN WILL VARY WITH MARKET CONDITIONS, AND
THE PRINCIPAL
VALUE OF SHARES, WHEN REDEEMED, MAY BE MORE OR LESS THAN ORIGINAL
COST. THE
GRAPH ABOVE DOES NOT REFLECT SEPARATE ACCOUNT EXPENSES FOR THE
ENDEAVOR
VARIABLE ANNUITY.
+ The Morgan Stanley Capital International EAFE Index is a
composite portfolio
consisting of equity total returns for the countries of Europe,
Australia, New
Zealand and countries in the Far East, weighted based on each
country's gross
domestic product. The Morgan Stanley Capital International EAFE
Index, like the
T. Rowe Price International Stock Portfolio, is concentrated only
in
international investing.
- ------------------------------------------------------------------
- --------------
CUMULATIVE TOTAL RETURN*
<TABLE>
<CAPTION>
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
ACTUAL
-------------------------------------------
- ------
<S>
<C>
Year ended 12/31/95
10.37%
- ------------------------------------------------------------------
- --------------
</TABLE>
* Assumes the reinvestment of all distributions.
7
<PAGE>
- ------------------------------------------------------------------
- --------------
QUEST FOR VALUE EQUITY PORTFOLIO
- ------------------------------------------------------------------
- --------------
A year ago, we were cautious on the overall stock market outlook
but found many
individual stocks were inexpensively priced. We did outline a
bullish case for
the market. However, we concluded that positive factors for
equities might be
offset by Federal Reserve Board ("Federal Reserve") actions to
curtail
inflationary pressures as well as by the high level of short-term
interest
rates and the uncertain prospects for a soft economic landing. Our
caution was
misplaced. In fact, the Federal Reserve's prior tightening moves
worked: the
economy slowed, inflation was below expectations and long-term
rates fell by
200 basis points. The reduction in long-term rates helped propel
impressive
flows into equity mutual funds, which provided the fire power,
along with
record merger and acquisition activity, to drive the stock market
to new highs.
The market's total return of 37.6%, as measured by the S&P 500
Index, was the
best in 20 years.
Today, as we view the market outlook, four factors emerge: 1)
inflation trends;
2) actions of the Federal Reserve; 3) the treatment of capital;
and 4)
valuations. While the first three remain favorable, valuations are
at the high
end of historic norms.
Inflation appears to be well contained for several reasons,
including
responsible monetary policies, the impact of global competition
and benefits
from the information revolution. The second key influence on
financial assets,
Federal Reserve policy, is also positive with the Federal Reserve
lowering
rates in response to moderating growth and subdued inflation. The
environment
for capital is favorable. Individuals have responded to this
environment by
shifting a larger portion of their assets into stocks and other
financial
instruments.
The big incremental demand for stocks, however, actually came from
corporations, with merger and acquisition activity soaring to $450
billion in
1995. The need for global partnering, good profitability and the
availability
of money at attractive nominal rates are additional reasons to
believe merger
and acquisition activity will continue to reduce the supply of
stock and,
therefore, be a positive for the market.
Our valuation concerns are easy to enumerate, namely: 1) the
lowest yield ever
on the S&P 500; 2) a high ratio of equity capitalization to gross
domestic
product; 3) the longest period in this century without as much as
a 10% stock
market correction; 4) a well-above-normal ten-year average annual
return of
about 15%; and 5) the widely accepted view that stocks are now the
asset of
choice. At the very least, one has to acknowledge that risks have
risen.
We think the probabilities favor modest if subdued market gains in
1996.
However, we do not foresee the ingredients for a major bear
market, especially
if inflation and short-term rates move lower, as now appears
likely. In fact, a
sharp drop in short-term rates could unlock the large amounts of
assets in
money market mutual funds, time deposits and CDs and actually
accelerate
inflows into mutual funds.
In 1995 the Quest for Value Equity Portfolio achieved a return of
34.59%
despite its conservative investment posture, including a sizable
cash position,
and without making significant investments in technology stocks,
one of the
year's strongest market sectors. The Portfolio benefited from good
stock
selection, as a number of its major positions outperformed the S&P
500. The
five stocks which contributed most to the Porftolio's performance
in 1995 were
EXEL, Ltd., Intel Corporation, McDonnell Douglas Corporation,
Federal Home Loan
Mortgage Corporation and Travelers Group, Inc. Positions which
detracted most
from performance included Coltec Industries, Inc., Reebok
International Ltd.,
Champion International Corporation, Temple-Inland, Inc., and Shaw
Industries,
Inc.
The Portfolio's strong performance was driven also by its
substantial holdings
of insurance, financial services and bank stocks, which were among
the market
leaders for the year. Such securities, representing more than 30%
of the
Portfolio's net assets as of December 31, 1995, include an
eclectic group of
specialty insurers and other financial service companies. Most
have been
investments of long standing that appeared undervalued to us
regardless of the
interest rate environment, although the decline in rates in 1995
did help fuel
their market performance.
As of December 31, 1995, the Portfolio's assets were allocated 80%
to equities
and 23% to cash and cash equivalents with other liabilities 3%
greater than
other assets. Major portfolio changes during the year included new
or increased
positions in the common stocks of ACE Ltd., Tenet Healthcare
Corporation, First
Interstate Bancorp and Prudential Reinsurance Holdings, Inc.
Positions that
were eliminated during the year included Sara Lee Corp., UNUM
Corporation,
Martin Marietta Corporation and Pepsico Inc.
The five largest Portfolio positions were (1) EXEL, Ltd., a
strongly
capitalized specialty insurance company, 5.8% of net assets; (2)
Federal Home
Loan Mortgage Corporation), the second largest insurer of home
mortgages in the
United States, representing 4.6% of the Portfolio's net assets;
(3) May
Department Stores Company, a leading retailer, 3.8% of net assets;
(4) Becton,
Dickinson & Company, a worldwide producer of medical products and
diagnostic
test systems, 3.1% of net assets; and ACE Ltd., a specialty
insurance company,
2.9% of net assets. Major industry positions as of December 31,
1995 were in
the (1) insurance sector, 16.7% of the Portfolio's net assets; (2)
financial
services, 8.5% of net asests; (3) aerospace and defense, 5.6% of
net assets;
(4) banking, 5.3% of net assets; and (5) healthcare, 5.2% of net
assets.
8
<PAGE>
- ------------------------------------------------------------------
- --------------
QUEST FOR VALUE EQUITY PORTFOLIO
- ------------------------------------------------------------------
- --------------
PORTFOLIO HIGHLIGHTS
DECEMBER 31, 1995
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN QUEST FOR
VALUE EQUITY
PORTFOLIO
VS.
S & P 500 STOCK INDEX+
MAY 27, 1993 THROUGH DECEMBER 31, 1995
[PORTFOLIO'S PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
S&P 500 QUEST FOR
VALUE
YEAR STOCK INDEX* EQUITY
PORTFOLIO*
- ---- ------------ -------------
- ----
<S> <C> <C>
5/27/93 10,000.00 10,000
12/93 10,525.80 10,280
12/94 10,664.07 10,700
12/95 14,666.69 14,401
</TABLE>
NOTE: THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT
A GUARANTEE
OF FUTURE RESULTS. THE PORTFOLIO'S SHARE PRICE AND INVESTMENT
RETURN WILL VARY
WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN
REDEEMED, MAY
BE MORE OR LESS THAN ORIGINAL COST. THE GRAPH ABOVE DOES NOT
REFLECT SEPARATE
ACCOUNT EXPENSES FOR THE ENDEAVOR VARIABLE ANNUITY.
+ The S & P 500 Stock Index is an index composed of 500 widely
held common
stocks listed on the New York Stock Exchange, American Stock
Exchange and over-
the-counter market. Index information is available at month-end
only;
therefore, the closest month-end to inception date of the
Portfolio has been
used.
- ------------------------------------------------------------------
- --------------
AVERAGE ANNUAL TOTAL RETURN*
<TABLE>
<CAPTION>
QUEST FOR VALUE EQUITY PORTFOLIO ACTUAL WITHOUT
WAIVERS
-------------------------------- ------ ----------
- -----
<S> <C> <C>
Year ended 12/31/95 34.59% N/A
Inception (05/27/93) through 12/31/95 15.08% 14.86%
- ------------------------------------------------------------------
- --------------
</TABLE>
* Assumes the reinvestment of all dividends and
distributions.
9
<PAGE>
- ------------------------------------------------------------------
- --------------
QUEST FOR VALUE SMALL CAP PORTFOLIO
- ------------------------------------------------------------------
- --------------
The small capitalization company sector, as measured by the
Russell 2000 Index,
appreciated 28.5% in 1995. Though small cap stocks had strong
absolute
performance, they lagged larger cap stocks in both the quarter and
the year.
Financial service and technology companies dominated in 1995,
accounting for
approximately half of the appreciation of the Russell 2000 for the
year. We
were significantly underweighted in both sectors and consequently
our return of
14.05% underperformed the Russell 2000. The year-end portfolio
weightings,
which are representative of the weightings throughout the year,
were
approximately 5% in both financial services and technology versus
the Russell
2000 weightings of 17.7% and 13.4%, respectively.
This underweighting is based on company specific, bottom-up stock
selection and
our conservative approach to preservation of capital, not on
sector or market
analysis. We seek to control volatility and generate superior
returns by
purchasing quality businesses that are mispriced by the market. We
own an
eclectic group of companies distinguished by their excellent
business and
financial characteristics, including high cash flow and strong
competitive
position. Unfortunately, in a momentum-driven small cap market
where
performance was so completely dominated by two sectors our
holdings are often
overlooked, but we are confident our discipline serves our
investors the best
risk-adjusted, long term result.
In addition, our relatively high cash levels depressed performance
throughout
the year. With valuations at high levels and without a meaningful
correction
all year, we did not wish to stretch either our purchase or sale
valuation
discipline. This resulted in portfolio sales proceeds and new fund
contributions being deployed more slowly.
Our investment philosophy is best illustrated by two of our
portfolio
additions. Magellan Health Services Inc. ("Magellan") (formerly
known as
Charter Medical) is the leading provider of behavioral health
services in the
U.S. Magellan is utilizing its significant free cash flow to
transform its
business from that of a low capital return provider of in-patient
mental health
care to that of a fully integrated manager of mental health
benefits for
corporations and the public sector. We believe there exists great
unsatisfied
demand for Magellan's services and that the company's strategy for
increasing
its returns and profits is not yet well known or understood by the
investment
community. A second addition was Oak Industries Inc. ("Oak"). Oak
is the
dominant supplier of coaxial cable connectors and will benefit
from cable
television industry upgrades driven by increased competition for
the delivery
of telecommunications services to the home. Oak should also be
able to
capitalize on the rapid growth of cable television overseas. Oak
is an example
of how we attempt to participate in strong growth markets, in this
case the
"information superhighway," through investment in underfollowed
and undervalued
high-return businesses as opposed to expensive, and in many cases
unprofitable,
emerging growth securities.
At December 31, 1995, the Portfolio's net assets were allocated
68% to common
stocks, 1% to preferred stocks, 30% to cash and cash equivalents
and 1% in
other assets net of other liabilities. The Portfolio owned the
common stocks of
59 companies. Its five largest holdings were (1) BancTec, Inc., a
leading
provider of computerized systems for the high-volume processing of
checks and
other financial transaction documents, representing 3.0% of the
Portfolio's net
assets; SpaceLabs Medical, Inc., a healthcare clinical information
systems
company, 3.0% of net assets; Westpoint Stevens, Inc., a leading
textile
manufacturer, 2.5% of net assets; Magellan Health Services, Inc.,
the dominant
provider of behavioral health services, 2.3% of net assets; and
DENTSPLY
International, Inc., which manufactures dental consumables and
equipment, 2.2%
of net assets. Major industry positions were in the healthcare
sector, 10.8% of
the Portfolio's net assets; oil and gas, 7.3% of net assets;
building and
construction, 5.6% of net assets; real estate, 5.0% of net assets;
and computer
services and software, 4.5% of net assets.
10
<PAGE>
- ------------------------------------------------------------------
- --------------
QUEST FOR VALUE SMALL CAP PORTFOLIO
- ------------------------------------------------------------------
- --------------
PORTFOLIO HIGHLIGHTS
DECEMBER 31, 1995
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN QUEST FOR
VALUE SMALL CAP
PORTFOLIO
VS.
RUSSELL 2000 INDEX+
MAY 4, 1993 THROUGH DECEMBER 31, 1995
[PORTFOLIO'S PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
RUSSELL QUEST FOR VALUE
YEAR 2000 INDEX* SMALL CAP PORTFOLIO*
- ---- ----------- --------------------
<S> <C> <C>
5/4/93 10,000.00 10,000
12/93 11,722.42 11,180
12/94 11,508.62 10,980
12/95 14,782.91 12,523
</TABLE>
NOTE: THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT
A GUARANTEE
OF FUTURE RESULTS. THE PORTFOLIO'S SHARE PRICE AND INVESTMENT
RETURN WILL VARY
WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN
REDEEMED, MAY
BE MORE OR LESS THAN ORIGINAL COST. THE GRAPH ABOVE DOES NOT
REFLECT SEPARATE
ACCOUNT EXPENSES FOR THE ENDEAVOR VARIABLE ANNUITY.
+ The Russell 2000 Index is a capitalization weighted total return
index which
is comprised of 2,000 of the smallest capitalized U.S. domiciled
companies
whose common stock is traded in the United States on the New York
Stock
Exchange, American Stock Exchange and NASDAQ. Index information is
available at
month-end only; therefore, the closest month-end to inception date
of the
Portfolio has been used.
- ------------------------------------------------------------------
- --------------
AVERAGE ANNUAL TOTAL RETURN*
<TABLE>
<CAPTION>
QUEST FOR VALUE SMALL CAP PORTFOLIO ACTUAL WITHOUT WAIVERS
----------------------------------- ------ ---------------
<S> <C> <C>
Year ended 12/31/95 14.05% N/A
Inception (05/04/93) through 12/31/95 8.82% 8.67%
- ------------------------------------------------------------------
- --------------
</TABLE>
* Assumes the reinvestment of all dividends and
distributions.
11
<PAGE>
- ------------------------------------------------------------------
- --------------
U.S. GOVERNMENT SECURITIES PORTFOLIO
- ------------------------------------------------------------------
- --------------
BOND MARKET PERFORMANCE FOR 1995
In a reversal of 1994's dismal performance, the U.S. fixed income
markets
posted their best annual returns in ten years in 1995. Yields fell
sharply
across the maturity spectrum, with the largest decline occurring
in shorter
maturities. For the year, the Lehman Intermediate Government Index
returned
14.4%. In addition, the Lehman Aggregate Bond Index, representing
securities
with longer-term maturities, posted a total return of 18.5%.
The catalysts for sharply rising bond prices were sluggish
economic growth,
benign inflation and rising optimism for balanced budget
legislation. The U.S.
economy turned in a subdued performance, as Gross Domestic Product
rose at an
average annualized rate of 2.7% in the first three quarters of
1995, compared
to the 4.1% increase in 1994. Foreign economies also languished,
causing
interest rates abroad to fall. Moderate price increases at both
the producer
and consumer levels also provided strong support for the bond
market. The
Federal Reserve Board (the "Federal Reserve") cooperated by
lowering the
federal funds rate twice for a total decline of one half
percentage point.
Finally, as it appeared that an agreement would eventually be
reached to
balance the Federal budget, the bond market shrugged off two
shutdowns of the
Federal government and the near default of the U.S. Treasury with
the
expectation that a balanced budget would lower long term interest
rates.
U.S. Treasury securities performed extremely well during the year
as investors
embraced the non-callability of most issues to take advantage of a
falling
interest rate environment. Corporate bonds produced the highest
total returns
during the year due to the continued demand for stable maturity
issues
providing incremental yield. In particular, some of the best
returns were
earned by below investment-grade issues whose credit quality
improved
measurably during the period. Mortgage-backed securities did not
fare as well
as their corporate counterparts, suffering from a combination of
rising
prepayments and regulatory changes which made this sector less
attractive to
certain types of financial institutions. Finally, asset-backed
securities
enjoyed strong relative performance as increased supply was
enthusiastically
absorbed by the marketplace.
PORTFOLIO PERFORMANCE DURING 1995
The Portfolio enjoyed a strong year as it posted a total return of
15.64%,
comparing well to the Lehman Intermediate Government Index return
of 14.4% and
less favorably to the Lehman Aggregate Bond Index, which is
characterized by
securities of longer-term maturities. Contributing to relative
investment
performance were a maturity structure which was slightly longer
than the market
averages (beneficial in a declining rate environment) and
inclusion of some
corporate issues which performed well during the year. Mortgage
securities
lagged the overall market during the year and marginally detracted
from
relative performance in the Portfolio. In general, the Portfolio
benefited from
advantageous maturity management, excellent credit quality and
strong
liquidity.
1996 EXPECTATIONS
As we look forward, the fundamental factors to support low
interest rates
remain in place. The economy shows few signs of strength,
inflation remains
low, and the Federal Reserve appears ready to lower rates further.
The
Portfolio currently is positioned close to its benchmark maturity,
signaling a
comfort with the general level of interest rates but caution about
the
likelihood of meaningful future declines. Mortgage securities are
expected to
perform well during the next year as attractive valuations and
potential
declines in market volatility provide a strong underpinning to the
sector.
Finally, select corporate issuers that exhibit improving credit
fundamentals
are also anticipated to add incremental investment returns to the
Portfolio.
12
<PAGE>
- ------------------------------------------------------------------
- --------------
U.S. GOVERNMENT SECURITIES PORTFOLIO
- ------------------------------------------------------------------
- --------------
PORTFOLIO HIGHLIGHTS
DECEMBER 31, 1995
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN U.S. GOVERNMENT
SECURITIES
PORTFOLIO
VS.
LEHMAN AGGREGATE BOND INDEX+
MAY 13, 1994 THROUGH DECEMBER 31, 1995
[PORTFOLIO'S PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
U.S. Government Lehman
Securities Aggregate
Portfolio* Bond Index*
--------------- -----------
<S> <C> <C>
5/13/94 10,000.00 10,000.00
6/94 9,950.00 9,976.50
12/94 9,960.00 10,075.25
6/95 10,911.00 11,228.30
12/95 11,518.00 11,936.62
</TABLE>
NOTE: THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT
A GUARANTEE
OF FUTURE RESULTS. THE PORTFOLIO'S SHARE PRICE AND INVESTMENT
RETURN WILL VARY
WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN
REDEEMED, MAY
BE MORE OR LESS THAN ORIGINAL COST. THE GRAPH ABOVE DOES NOT
REFLECT SEPARATE
ACCOUNT EXPENSES FOR THE ENDEAVOR VARIABLE ANNUITY.
+ The Lehman Aggregate Bond Index is an index composed of treasury
issues,
agency issues, corporate bond issues and mortgage-backed
securities. Index
information is available at month-end only; therefore, the closest
month-end to
inception date of the Portfolio has been used.
- ------------------------------------------------------------------
- --------------
AVERAGE ANNUAL TOTAL RETURN*
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES PORTFOLIO ACTUAL WITHOUT
WAIVERS
------------------------------------ ------ ----------
- -----
<S> <C> <C>
Year ended 12/31/95 15.64% N/A
Inception (05/13/94) through 12/31/95 9.01% 8.76%
- ------------------------------------------------------------------
- --------------
</TABLE>
* Assumes the reinvestment of all dividends and
distributions.
13
<PAGE>
- ------------------------------------------------------------------
- --------------
T. ROWE PRICE EQUITY INCOME PORTFOLIO
- ------------------------------------------------------------------
- --------------
The equity market performed extremely well in 1995 reflecting
strong corporate
earnings, low inflation, a benign interest rate environment, and
strong
investor demand. The unmanaged Standard & Poor's 500 Stock Index,
which was up
37.6%, concluded its best year since 1958 and posted one of the
strongest 12-
month returns in history.
The T. Rowe Price Equity Income Portfolio did particularly well
with a 30.50%
for 1995. Since our conservative investment approach sometimes
lags the broad
index in unusually robust markets, we were pleased with the year's
results.
Keep in mind that the generally conservative nature of your
series' investments
is also tailored to minimize loss in a declining market. Of course
investors
should also remember that this is an equity investment.
PORTFOLIO REVIEW
The strong performance of many financial stocks, the positive
contribution of
our holdings in the health care sector, and gains generated by
large-
capitalization consumer products stocks were among the most
important
influences on 1995 fund results. Our investments in companies such
as J.P.
Morgan & Company Inc., First Interstate Bank Corporation, Student
Loan
Marketing Association, and Travelers Group, Inc. were particularly
profitable.
Pharmaceutical stocks also performed extremely well. Some of the
successful
investments we made in this sector were trimmed later in the year.
After stocks
such as Lilly (Eli) & Company and Schering-Plough Corporation
appreciated in
value, our valuations discipline encouraged us to reinvest some of
the assets
into more undervalued stocks with attractive dividend yields. We
also
eliminated Halliburton Company, an oil well services and
engineering firm,
following a runup in its share price.
Over the past six months, the prices of many cyclical stocks fell
as investors
worried about the durability of corporate earnings in 1996. The
decline in the
value of such stocks as Union Camp Corporation, Betz Laboratories,
Inc.,
International Paper Company, and DuPont (E.I.) de Nemours &
Company rendered
them exceedingly attractive, in our view.
SUMMARY AND OUTLOOK
We anticipate positive but slowing economic growth along with a
more
challenging stock market environment in 1996. Instead of making
more detailed
economic and market forecasts, we would like to reiterate our
primary emphasis
which is on sound, conservatively based investments. This has been
the hallmark
of our approach and in almost any market environment, we believe
there will be
intriguing opportunities on which to capitalize profitably. As
always, we
appreciate your continued confidence and support.
14
<PAGE>
- ------------------------------------------------------------------
- --------------
T. ROWE PRICE EQUITY INCOME PORTFOLIO
- ------------------------------------------------------------------
- --------------
PORTFOLIO HIGHLIGHTS
DECEMBER 31, 1995
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN T. ROWE PRICE
EQUITY INCOME
PORTFOLIO
VS.
S & P 500 STOCK INDEX AND LIPPER EQUITY INCOME INDEX+
JANUARY 3, 1995 THROUGH DECEMBER 31, 1995
[PORTFOLIO'S PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
T. Rowe
Price Equity Lipper Equity
S & P 500
Income Portfolio Income Index*
Stock Index*
---------------- ------------- -
- -----------
<S> <C> <C>
<C>
1/3/95 10,000.00 10,000.00
10,000.00
3/95 10,560.00 10,752.75
10,978.00
6/95 11,230.00 11,497.70
12,019.00
9/95 12,060.00 12,329.61
12,973.00
12/95 13,050.00 12,972.56
13,753.00
</TABLE>
NOTE: THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT
A GUARANTEE
OF FUTURE RESULTS. THE PORTFOLIO'S SHARE PRICE AND INVESTMENT
RETURN WILL VARY
WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN
REDEEMED, MAY
BE MORE OR LESS THAN ORIGINAL COST. THE GRAPH ABOVE DOES NOT
REFLECT SEPARATE
ACCOUNT EXPENSES FOR THE ENDEAVOR VARIABLE ANNUITY.
+ The S & P 500 Stock Index is an index composed of 500 widely
held common
stocks listed on the New York Stock Exchange, American Stock
Exchange and over-
the-counter market.
The Lipper Equity Income Index is a net asset value weighted index
of the 30
largest equity income mutual funds.
Index information is available at month-end only; therefore, the
closest month-
end to inception date of the Portfolio has been used.
- ------------------------------------------------------------------
- --------------
CUMULATIVE TOTAL RETURN*
<TABLE>
<CAPTION>
T. ROWE PRICE EQUITY INCOME PORTFOLIO
ACTUAL
-------------------------------------
- ------
<S>
<C>
Inception (01/03/95) through 12/31/95
30.50%
- ------------------------------------------------------------------
- --------------
</TABLE>
* Assumes the reinvestment of all dividends and
distributions.
15
<PAGE>
- ------------------------------------------------------------------
- --------------
T. ROWE PRICE GROWTH STOCK PORTFOLIO
- ------------------------------------------------------------------
- --------------
The Portfolio's return for the 12-month period ended December 31,
1995,
surpassed the peer group benchmark shown on the next page but
trailed the
unmanaged Standard & Poor's 500 Stock Index. For the second
consecutive year,
domestic stocks representing roughly two-thirds of fund assets
provided better
returns than foreign holdings, which were about one-quarter of
total fund
assets (cash reserves accounted for the rest).
PERFORMANCE COMPARISON
<TABLE>
<CAPTION>
PERIODS ENDED 12/31/95
12 MONTHS
----------------------
<S> <C>
T. Rowe Price Growth Stock Portfolio 37.2%
S&P 500 37.6%
Lipper Growth and Income Fund Average 31.0%
</TABLE>
MARKET ENVIRONMENT
For the U.S. stock market, 1995 will go down as one of the best
years ever. The
U.S. economy grew at a modest pace during the year. Alan
Greenspan, Chairman of
the Federal Reserve Board (the "Federal Reserve"), appears to have
successfully
engineered a soft landing for the economy through a series of
moves designed to
combat inflation without choking off growth. The resulting slow-
growth, low-
inflation environment triggered a massive rally in bonds that made
up for the
losses suffered in 1994.
The surprise element fueling the rally in U.S. equities was
corporate profits
soaring on solid sales growth. Much of this was due to
productivity gains,
which stand at an all-time high. Companies have become more
productive through
better management, restructuring, and the use of technology to
lower costs.
Areas of particular strength in the domestic market included
financial stocks,
which benefited from falling interest rates; technology stocks,
whose earnings
growth consistently surprised on the upside; and health care
stocks, which
rallied from the depressed levels of early 1994 when concerns
about health care
began to fade.
Pockets of weakness included cyclical commodity companies whose
earnings growth
potential slowed with the economy. The substitution of technology
for labor has
been a boon for corporate profits but has had a negative effect on
wages and
consumer spending. As a result, consumer stocks such as retailers
and
restaurants underperformed.
INVESTMENT OUTLOOK
U.S. stocks benefited enormously in 1995 from low inflation,
positive economic
growth, and higher than expected corporate earnings growth. The
first two
conditions are likely to remain intact in 1996. However, above-
expectation
profit growth will be harder to maintain. Slower economic growth
increasingly
puts pressure on sales, and companies may find it difficult to
produce strong
bottom-line results from lackluster top-line revenues.
The Federal Reserve reversed its previously tight monetary policy
by easing
twice last year to ensure continued growth. While this had
beneficial
implications for U.S. stocks, some domestic equities are expensive
by many
historical valuation measures: price/earnings; price/cash flow;
dividend yield;
and price/book value. Nevertheless, we remain positive overall in
our outlook
for domestic stocks.
Foreign stocks, which lagged U.S. stocks by a wide margin over the
past two
years, appear poised for a period of out performance. Interest
rates seem to be
headed lower in Europe as central banks try to stimulate economies
that never
rebounded vigorously from the 1991 global recession. The major
productivity
gains that fueled U.S. earnings growth have yet to be achieved by
European
firms.
16
<PAGE>
- ------------------------------------------------------------------
- --------------
T. ROWE PRICE GROWTH STOCK PORTFOLIO
- ------------------------------------------------------------------
- --------------
PORTFOLIO HIGHLIGHTS
DECEMBER 31, 1995
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN T. ROWE PRICE
GROWTH STOCK
PORTFOLIO
VS.
S & P 500 STOCK INDEX AND LIPPER GROWTH AND INCOME FUND
AVERAGE+
JANUARY 3, 1995 THROUGH DECEMBER 31, 1995
[PORTFOLIO'S PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
S&P 500 LIPPER GROWTH AND T. ROWE
PRICE GROWTH
YEAR STOCK INDEX* INCOME FUND AVERAGE* STOCK
PORTFOLIO*
- ------ ------------- ---------------------- -------
- -------------
<S> <C> <C> <C>
1/3/95 10,000 10,000 10,000
MAR. 1995 10,978 10,560.51 11,380
JUN. 1995 12,019 11,569.40 12,210
SEP. 1995 12,973 12,575.38 13,080
DEC. 1995 13,753 12,862.46 13,720
</TABLE>
NOTE: THE PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT
A GUARANTEE
OF FUTURE RESULTS. THE PORTFOLIO'S SHARE PRICE AND INVESTMENT
RETURN WILL VARY
WITH MARKET CONDITIONS, AND THE PRINCIPAL VALUE OF SHARES, WHEN
REDEEMED, MAY
BE MORE OR LESS THAN ORIGINAL COST. THE GRAPH ABOVE DOES NOT
REFLECT SEPARATE
ACCOUNT EXPENSES FOR THE ENDEAVOR VARIABLE ANNUITY.
+ The S & P 500 Stock Index is an index composed of 500 widely
held common
stocks listed on the New York Stock Exchange, American Stock
Exchange and over-
the-counter market.
The Lipper Growth and Income Fund Average is composed of the
Portfolio's peer
group of mutual funds investing in growth and income oriented
securities.
Index information is available at month-end only; therefore, the
closest month-
end to inception date of the Portfolio has been used.
- ------------------------------------------------------------------
- --------------
CUMULATIVE TOTAL RETURN*
<TABLE>
<CAPTION>
T. ROWE PRICE GROWTH STOCK PORTFOLIO
ACTUAL
------------------------------------
- ------
<S>
<C>
Inception (01/03/95) through 12/31/95
37.20%
- ------------------------------------------------------------------
- --------------
</TABLE>
* Assumes the reinvestment of all dividends and
distributions.
17
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
MONEY MARKET PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
COMMERCIAL PAPER -- 60.9%
$1,200,000 Allegheny Generating Company,
5.550%# due 01/31/1996..............................
$ 1,194,450
940,000 American Express Credit Corporation,
5.680%# due 01/09/1996..............................
938,813
1,000,000 American General Finance Corporation,
5.830%# due 01/10/1996..............................
998,542
840,000 Beneficial Corporation,
5.760%# due 01/02/1996..............................
839,866
1,000,000 Ciesco L.P.,
5.700%# due 01/22/1996..............................
996,675
1,000,000 Deere (John) Capital Corporation,
5.750%# due 01/12/1996..............................
998,243
1,200,000 Ford Motor Credit Company,
5.650%# due 01/04/1996..............................
1,199,435
1,000,000 General Electric Capital Corporation,
5.830%# due 01/11/1996..............................
998,381
942,000 MetLife Funding, Inc,
5.750%# due 01/12/1996..............................
940,345
1,092,000 Nordstrom Credit, Inc.,
5.800%# due 01/16/1996..............................
1,089,361
1,000,000 Pitney-Bowes Credit Corporation,
5.800%# due 01/08/1996..............................
998,872
1,200,000 Prudential Funding Corporation,
5.720%# due 01/05/1996..............................
1,199,237
1,000,000 SAFECO Credit Company, Inc.,
5.700% due 01/29/1996...............................
995,567
1,000,000 Southern California Gas Company,
5.620% due 02/09/1996...............................
993,912
900,000 Student Loan Corporation,
5.760%# due 01/09/1996..............................
898,848
1,000,000 Transamerica Corporation,
5.700%# due 01/30/1996..............................
995,408
500,000 USAA Capital Corporation,
5.760%# due 01/03/1996..............................
499,840
- -----------
Total Commercial Paper
(Cost $16,775,795)..................................
16,775,795
- -----------
CORPORATE FIXED INCOME SECURITIES -- 13.7%
1,354,000 Associates Corporation of North America, Note,
4.500% due 02/15/1996...............................
1,351,661
500,000 CIT Group Holdings, Inc., Medium Term Note,
7.125% due 11/15/1996...............................
506,176
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
$1,000,000 SmithKline Beecham Corporation, Medium Term Note,
5.250% due 01/26/1996...............................
$ 999,484
900,000 Toyota Motor Credit Corporation, Medium Term Note,
6.875% due 10/15/1996...............................
908,364
- -----------
Total Corporate Fixed Income Securities
(Cost $3,765,685)...................................
3,765,685
- -----------
U.S. GOVERNMENT AGENCY DISCOUNT NOTES -- 17.8%
Federal Home Loan Bank (FHLB):
1,000,000 5.490%# due 03/25/1996...............................
987,190
1,000,000 5.470%# due 04/11/1996...............................
984,654
500,000 5.350%# due 10/21/1996...............................
478,154
1,470,000 Federal Home Loan Mortgage Corporation (FHLMC),
5.750%# due 01/02/1996...............................
1,469,765
1,000,000 Federal National Mortgage Association (FNMA),
5.490%# due 02/20/1996...............................
992,375
- -----------
Total U.S. Government Agency Discount Notes (Cost
$4,912,138).........................................
4,912,138
- -----------
U.S. GOVERNMENT AGENCY NOTES -- 7.6%
Federal National Mortgage Association (FNMA) Medium
Term Note:
500,000 5.680% due 10/07/1996................................
500,418
500,000 5.470% due 11/14/1996................................
499,724
1,100,000 5.500% due 06/12/1996................................
1,099,210
- -----------
Total U.S. Government Agency Notes
(Cost $2,099,352)...................................
2,099,352
- -----------
</TABLE>
<TABLE>
<S> <C>
<C>
TOTAL INVESTMENTS (COST $27,552,970*).......................
100.0% 27,552,970
OTHER ASSETS AND LIABILITIES (NET).......................... 0.0
(1,803)
-----
- -----------
NET ASSETS..................................................
100.0% $27,551,167
=====
===========
</TABLE>
- ------------
* Aggregate cost for federal tax purposes.
# Rate represents annualized yield at date of purchase.
See Notes to Financial Statements.
18
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
MANAGED ASSET ALLOCATION PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- 72.8%
TECHNOLOGY -- 25.2%
46,100 Cisco Systems Inc.+..................................
$ 3,457,500
119,300 Computer Sciences Corporation+.......................
8,380,825
101,500 General Motors Corporation, Class E..................
5,316,063
18,700 Hewlett-Packard Company..............................
1,566,125
106,300 Intel Corporation ...................................
6,085,675
56,300 Microsoft Corporation+...............................
4,898,100
120,600 Motorola, Inc .......................................
6,874,200
134,400 National Semiconductor Corporation+..................
3,024,000
33,000 Texas Instruments Inc. ..............................
1,695,375
64,900 Xerox Corporation ...................................
8,883,187
- ------------
50,181,050
- ------------
FINANCIAL SERVICES -- 9.0%
77,500 Citicorp.............................................
5,182,812
41,900 First Data Corporation...............................
2,807,300
139,200 Green Tree Financial Corporation.....................
3,654,000
121,800 Merrill Lynch & Company, Inc.........................
6,211,800
- ------------
17,855,912
- ------------
TRANSPORTATION -- 8.0%
52,800 AMR Corporation+.....................................
3,894,000
61,727 Burlington Northern Santa Fe Corporation.............
4,760,695
63,200 Delta Air Lines Inc..................................
4,621,500
15,100 UAL Corporation......................................
2,661,375
- ------------
15,937,570
- ------------
CONSUMER DURABLES -- 8.0%
89,800 American Standard Companies Inc.+....................
2,503,175
85,900 Chrysler Corporation ................................
4,756,712
132,226 Ford Motor Company...................................
3,834,554
113,600 Lear Seating Corporation+............................
3,308,600
32,900 Magna International Inc., Class A....................
1,418,812
- ------------
15,821,853
- ------------
HEALTH CARE -- 6.5%
147,000 Amgen, Inc.+.........................................
8,728,125
81,200 Columbia/HCA Healthcare Corporation..................
4,161,500
- ------------
12,889,625
- ------------
CONSUMER NON-DURABLES -- 4.9%
45,800 America Online Inc.+.................................
1,694,600
35,900 Procter & Gamble Company.............................
2,975,213
108,864 Viacom Inc., Class B+ ...............................
5,143,824
- ------------
9,813,637
- ------------
CAPITAL GOODS -- 3.7%
55,000 Boeing Company ......................................
4,324,375
50,700 Caterpillar Inc .....................................
2,972,287
- ------------
7,296,662
- ------------
BASIC INDUSTRIES -- 3.4%
47,300 Champion International Corporation...................
2,010,250
50,600 United Technologies Corporation......................
4,813,325
- ------------
6,823,575
- ------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
ENERGY -- 1.7%
29,400 Amerada Hess Corporation ............................
$ 1,550,850
59,600 Unocal Corporation...................................
1,735,850
- ------------
3,286,700
- ------------
RETAIL -- 1.6%
67,866 Home Depot Inc.......................................
3,223,635
- ------------
PRINTING AND PUBLISHING -- 0.6%
58,800 News Corporation Ltd., ADR...........................
1,256,850
- ------------
TELECOMMUNICATIONS -- 0.2%
10,900 Northern Telecom Ltd., ADR...........................
464,613
- ------------
Total Common Stock
(Cost $110,610,363).................................
144,851,682
- ------------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S>
<C>
U.S. TREASURY OBLIGATIONS -- 11.9%
U.S. TREASURY NOTES -- 9.5%
U.S. Treasury Notes:
$3,110,000 6.125% due 05/15/1998................................
3,172,200
1,625,000 5.500% due 11/15/1998................................
1,636,927
300,000 7.125% due 09/30/1999................................
318,093
730,000 5.875% due 06/30/2000................................
744,826
2,985,000 6.250% due 08/31/2000................................
3,088,072
1,930,000 7.875% due 11/15/2004................................
2,233,975
2,425,000 7.500% due 02/15/2005................................
2,748,592
4,905,000 5.875% due 11/15/2005................................
5,015,362
- ------------
18,958,047
- ------------
U.S. TREASURY BONDS -- 2.4%
U.S. Treasury Bonds:
2,275,000 8.000% due 11/15/2021................................
2,846,594
1,565,000 7.500% due 11/15/2024................................
1,881,177
- ------------
4,727,771
- ------------
Total U.S. Treasury Obligations
(Cost $22,614,738)..................................
23,685,818
- ------------
MORTGAGE-BACKED SECURITIES -- 9.1%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) -- 6.4%
FHLMC:
3,175,000 5.750% due 01/02/1996................................
3,172,972
2,425,000 7.000% due 12/01/2010................................
2,471,227
4,116,258 6.500% due 08/01/2025................................
4,071,226
2,882,955 7.000% due 08/01/2025................................
2,909,075
- ------------
12,624,500
- ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) -- 2.7%
GNMA:
27 8.500% due 12/15/2024................................
29
2,685,436 7.500% due 08/15/2025................................
2,751,713
2,611,660 6.000% due 08/20/2025................................
2,637,777
- ------------
5,389,519
- ------------
Total Mortgage-Backed Securities
(Cost $17,787,327)..................................
18,014,019
- ------------
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
MANAGED ASSET ALLOCATION PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
CORPORATE BONDS -- 3.9%
$ 75,000 Chugach Electric Association, First Reference
Mortgage Bond, Series B, 9.140% due 03/15/2022.....
$ 85,500
200,000 Dayton Hudson Corporation, Note,
7.875% due 06/15/2023..............................
208,336
180,000 First Chicago Corporation, Note,
7.625% due 01/15/2003..............................
195,579
175,000 First Interstate Bancorp, Subordinate Capital Note,
8.625% due 04/01/1999..............................
189,709
500,000 Florida Power & Light Company, First Mortgage Bond,
7.050% due 12/01/2026..............................
509,630
600,000 GTE Corporation, Debenture,
7.830% due 05/01/2023..............................
626,436
1,000,000 International Paper Company, Debenture,
8.125% due 06/15/2024..............................
1,075,290
May Department Stores Company, Debentures:
15,000 9.750% due 02/15/2021...............................
18,525
1,000,000 8.375% due 08/01/2024 ..............................
1,124,530
900,000 Mead Corporation, Debenture,
7.125% due 08/01/2025..............................
891,945
1,400,000 Praxair Inc., Debenture,
8.700% due 07/15/2022..............................
1,583,708
1,200,000 Texas Utilities Electric Company, First Mortgage
Bond,
7.875% due 03/01/2023..............................
1,288,308
- ------------
Total Corporate Bonds
(Cost $7,158,899)..................................
7,797,496
- ------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
ASSET-BACKED SECURITIES -- 1.8%
AFC Home Equity Loan, Class A:
$ 91,254 Tranche 92-4,
6.200% due 11/15/2007...............................
$ 90,854
153,162 Tranche 93-2,
6.000% due 08/20/2013 ..............................
150,720
285,197 EQCC Home Equity Loan Trust,
Class A-1, Tranche 93-3,
5.150% due 09/15/2008..............................
279,048
First Alliance Mortgages, Class A-1:
363,877 Tranche 94-1,
5.850% due 04/25/2025...............................
352,649
800,225 Tranche 94-2,
7.625% due 08/25/2025...............................
818,668
717,346 General Electric Capital Corporation,
Series 1995-HE1,
7.500% due 09/25/2011..............................
728,106
1,025,012 TMS Home Equity Loan, Class A-1, Tranche 93-D,
5.675% due 02/15/2009..............................
996,824
141,022 UCFC Home Equity Loan, Class A-1, Tranche 93-B1,
6.075% due 07/25/2014..............................
139,435
- ------------
Total Asset-Backed Securities
(Cost $3,563,141)..................................
3,556,304
- ------------
</TABLE>
<TABLE>
<S> <C>
<C>
TOTAL INVESTMENTS (COST $161,734,468*)..................... 99.5%
197,905,319
OTHER ASSETS AND LIABILITIES (NET)......................... 0.5
970,371
-----
- ------------
NET ASSETS................................................. 100.0%
$198,875,690
=====
============
</TABLE>
- ------------
* Aggregate cost for federal tax purposes was $161,738,626.
+ Non-income producing security.
Abbreviation: ADR -- American Depositary Receipt
See Notes to Financial Statements.
20
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- 89.9%
JAPAN -- 22.5%
2,000
Advantest................................................. $
102,663
16,000 Alps Electric
Company..................................... 184,407
33,000 Amada Company
Ltd......................................... 326,005
33,000 Canon
Inc................................................. 597,676
17,000 Citizen Watch
Company..................................... 130,073
25,000 Dai Nippon Screen
Manufacturing........................... 219,370
29,000 Daichi Pharmaceutical
Company............................. 412,881
6,000 Daifuku Company
Ltd....................................... 84,843
30,000 Daiwa House Industry
Company.............................. 493,947
93 East Japan Railway
Company................................ 452,165
7,000 Fanuc Company
Ltd......................................... 303,051
51,000 Hitachi
Ltd............................................... 513,705
48,000 Hitachi Zosen
Corporation................................. 248,717
12,000 Honda Motor Company
Ltd................................... 247,554
16,000
Inax......................................................
151,864
15,000 Ishihara Sangyo
Kaisha.................................... 48,668
10,000 Ito-Yokado
Company........................................ 615,981
13,000 Kokuyo Company
Ltd........................................ 302,179
40,000 Komatsu
Ltd............................................... 329,298
12,000 Komori
Corporation........................................ 302,179
31,000 Kumagai
Gumi.............................................. 124,600
32,000 Kuraray
Company........................................... 350,218
11,000 Kyocera
Corporation....................................... 817,143
21,000 Makita
Corporation........................................ 335,593
24,000 Marui Company
Ltd......................................... 499,758
33,000 Matsushita Electric Industrial
Company.................... 536,949
19,000 Mitsubishi
Corporation.................................... 233,705
87,000 Mitsubishi Heavy Industries
Ltd........................... 693,472
22,000 Mitsubishi Paper Mills
Ltd................................ 132,320
48,000 Mitsui Fudosan
Company.................................... 590,412
15,000 Mitsui Petrochemical
Industries........................... 122,760
9,000 Murata Manufacturing
Company.............................. 331,235
9,000 National House Industrial
Company......................... 164,746
49,000 NEC
Corporation...........................................
597,966
9,000 Nippon
Hodo............................................... 152,542
171,000 Nippon Steel
Corporation.................................. 586,286
41 Nippon Telegraph & Telephone
Corporation.................. 331,574
33,000 Nippondenso Company
Ltd................................... 616,852
33,000 Nomura Securities Company
Ltd............................. 719,128
18,000 Pioneer Electronics
Corporation........................... 329,491
4,000 Sangetso Company
Ltd...................................... 100,726
20,000 Sankyo
Company............................................ 449,395
3,000 Sega
Enterprises.......................................... 165,617
38,000 Sekisui Chemical Company
Ltd.............................. 559,419
27,000 Sekisui
House............................................. 345,182
4,200 Seven-Eleven Japan Company
Ltd............................ 296,136
36,000 Sharp
Corporation......................................... 575,303
12,000 Shinetsu Chemicals Company
Ltd............................ 248,717
9,000 Sony
Corporation.......................................... 539,564
55,000 Sumitomo
Corporation...................................... 559,322
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
47,000 Sumitomo Electric Industries Ltd.........................
$ 564,455
17,000 Sumitomo Forestry Company Ltd............................
260,145
9,000 TDK Corporation..........................................
459,370
54,000 Teijin...................................................
276,145
17,000 Tokio Marine & Fire Insurance Company....................
222,276
6,000 Tokyo Electron...........................................
232,446
14,000 Tokyo Steel Manufacturing................................
257,627
11,000 Toppan Printing Company Ltd..............................
144,891
6,000 Total Access Communications+.............................
39,000
7,350 Yurtec Corporation.......................................
128,847
- -----------
20,758,559
- -----------
UNITED KINGDOM -- 15.1%
71,000 Abbey National Ord.......................................
701,273
41,000 Argos Ord................................................
379,173
58,000 Argyll Group Ord.........................................
306,252
172,000 ASDA Group Plc...........................................
295,163
12,000 British Airport Authority Ord............................
90,385
44,000 British Gas Ord..........................................
173,563
26,000 British Petroleum Company Ord............................
217,435
71,000 Cable & Wireless.........................................
507,210
58,768 Cadbury Schweppes Ord....................................
485,083
36,000 Coats Viyella Ord........................................
97,559
29,000 Compass Group Ord........................................
220,231
28,000 East Midlands Electricity Ord............................
289,821
18,000 Electrocomponents Ord....................................
100,495
7,000 GKN Ord..................................................
84,685
44,000 Glaxo Wellcome Ord.......................................
625,238
78,000 Grand Metropolitan Ord...................................
561,456
64,000 Guinness Ord.............................................
470,621
11,000 Heywood Williams Group Corporation Ord...................
42,195
33,000 Hillsdown Holdings Ord...................................
87,123
53,000 Kingfisher Ord...........................................
446,115
52,000 Ladbroke Group Ord.......................................
118,308
28,000 Laing (John), Class A, Non-Voting Ord....................
119,581
33,000 London Electricity Ord.+.................................
293,913
94,000 MB Caradon Plc...........................................
285,395
48,106 National Grid Group Plc..................................
149,045
114,000 National Westminster Bank Ord............................
1,148,117
58,000 Rank Organization Ord....................................
419,745
69,000 Reed International Ord...................................
1,051,746
22,518 Rolls Royce Ord..........................................
66,094
30,000 RTZ Corporation Ord......................................
436,082
26,000 Sears Holdings Ord.......................................
41,993
56,000 Shell Transport & Trading Ord............................
740,533
50,000 Smith (David S.) Holdings Ord............................
219,750
112,000 SmithKline Beecham Equity Units..........................
1,221,031
68,000 T&N Plc Ord..............................................
171,079
49,000 Tesco Ord................................................
226,008
145,000 Tomkins Ord..............................................
633,896
47,000 United Newspapers & Media Ord............................
404,683
- -----------
13,928,075
- -----------
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- (CONTINUED)
NETHERLANDS -- 9.2%
6,115 ABN Amro Holdings N.V. ..................................
$ 278,561
4,780 Ahold (Kon) N.V. ........................................
195,108
994 Akzo Nobel N.V. .........................................
114,966
9,876 CSM CVA .................................................
430,809
119,490 Elsevier N.V. ...........................................
1,593,498
4,040 Fortis Amev N.V. ........................................
270,642
2,040 Hagemeyer................................................
106,532
9,490 International Nederlanden Groep .........................
633,968
6,222 Koninklijke PTT Nederland ...............................
226,050
1,530 Nutricia (Veringde Bedrijven) ...........................
123,758
9,405 Polygram N.V. ...........................................
499,349
9,620 Royal Dutch Petroleum Company............................
1,344,054
3,660 Unilever N.V. ...........................................
514,320
22,895 Wolters Kluwer ..........................................
2,165,801
- -----------
8,497,416
- -----------
FRANCE -- 7.4%
1,945 Accor ...................................................
251,608
3,199 Assurances Generales de France ..........................
107,047
1,040 Carrefour ...............................................
630,451
1,051 Castorama Dubois ........................................
171,986
1,227 Chargeurs ...............................................
245,851
4,220 Compagnie de St. Gobain .................................
459,800
1,023 Credit Local de France ..................................
81,823
8,230 Eaux (Cie Generale des) +++..............................
820,985
2,100 Ecco ....................................................
317,507
1,250 GTM--Entrepose ..........................................
87,610
756 Guilbert SA .............................................
88,696
3,388 Lafarge SA...............................................
218,101
2,820 Lapeyre .................................................
140,396
1,100 Legrand .................................................
169,680
420 L'Oreal .................................................
112,349
2,260 LVHM Moet Hennessey .....................................
470,353
1,850 Pinault Printemps Redoute+...............................
368,792
2,700 Poliet ..................................................
219,151
874 Primagaz ................................................
69,371
685 Rexel ...................................................
115,588
1,530 Sanofi SA ...............................................
97,994
750 Societe Generale Ord. ...................................
92,583
4,160 Societe Nationale Elf Aquitaine .........................
306,249
530 Sodexho .................................................
155,723
5,240 Television Francaise ....................................
561,314
4,550 Total 'B' Shares ........................................
306,830
3,638 Valeo ...................................................
168,353
- -----------
6,836,191
- -----------
HONG KONG -- 4.5%
60,000 Dao Heng Bank Group .....................................
215,713
331,793 First Pacific Company Ltd. ..............................
369,016
306,000 Guangdong Investments Ltd.+ .............................
184,015
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
940,000 Guangzhou Investments Company Ltd. ......................
$ 179,916
67,000 Guoco Group+.............................................
323,194
298,475 Hong Kong Land Holdings Ord. ............................
552,179
133,000 Hutchison Whampoa, Ltd. .................................
810,126
410,000 Maashan Iron & Steel ....................................
57,265
91,000 New World Development Company ...........................
396,599
47,000 Swire Pacific Company, Class A...........................
364,694
185,000 Wharf Holdings ..........................................
616,068
420,000 Yizheng Chemical Fibre ..................................
94,510
- -----------
4,163,295
- -----------
SWITZERLAND -- 3.9%
531 Brown Boveri & Cie AG, Class A...........................
617,121
250 Ciba Geigy AG............................................
220,078
1,950 CS Holdings..............................................
199,989
606 Nestle SA................................................
670,647
110 Roche Holdings AG Genuscheine ...........................
870,555
510 Sandoz AG ...............................................
467,094
170 Schweizerische Bankgesellschaft..........................
184,302
800 Schweizerischer Bankverein...............................
326,800
- -----------
3,556,586
- -----------
GERMANY -- 3.5%
248 Allianz AG...............................................
483,548
192 Altana ..................................................
111,799
1,130 Bayer AG ................................................
298,260
360 Bilfinger & Berger Bau AG ...............................
136,318
232 Buderus AG ..............................................
90,276
4,900 Deutsche Bank AG ........................................
232,255
776 Fielmann AG+.............................................
40,045
815 Gehe AG .................................................
414,888
240 Gehe AG (New) ...........................................
118,912
369 Hoechst AG ..............................................
100,098
700 Hornbach Baumarkt AG ....................................
30,119
893 Mannesmann AG ...........................................
284,402
1,294 Praktiker Bau und Heimwerker+ ...........................
39,614
2,880 Rhoen Klinikum AG +++....................................
285,188
3,308 Schering AG .............................................
219,218
161 Siemens AG ..............................................
88,135
2,900 Veba AG .................................................
123,159
529 Volkswagen AG ...........................................
176,924
- -----------
3,273,158
- -----------
MALAYSIA -- 2.8%
228,000 Affin Holdings Berhad ...................................
439,894
80,000 Berjaya Sports Toto Berhad ..............................
185,849
130,000 MBF Capital Berhad ......................................
131,551
197,000 Multi Purpose Holdings ..................................
288,554
170,000 Renong Berhad ...........................................
251,683
196,000 Technology Resources Industries Ltd.+....................
578,808
111,000 United Engineers (Malaysia) Berhad.......................
708,036
- -----------
2,584,375
- -----------
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- (CONTINUED)
SINGAPORE -- 2.5%
52,000 D.B.S. Land Ord. .........................................
$ 175,723
14,000 Development Bank of Singapore (F).........................
174,196
18,000 Far East-Levingston Shipbuilding .........................
84,624
7,000 Fraser & Neave Ord. ......................................
89,077
17,000 Jurong Shipyard Ord. .....................................
131,000
11,000 Keppel Corporation Ord. ..................................
97,985
51,000 Neptune Orient Lines .....................................
57,328
41,000 Overseas Union Bank (F) ..................................
282,609
13,000 Overseas Union Enterprises ...............................
65,712
24,000 Sembawang Corporation Ltd.................................
133,192
14,000 Singapore International Airlines (F) .....................
130,647
34,000 Singapore Land............................................
219,936
12,000 Singapore Press Holdings (F) .............................
212,089
91,000 United Industrial Corporation ............................
89,424
39,600 United Overseas Bank (F) .................................
380,742
- -----------
2,324,284
- -----------
SPAIN -- 2.2%
5,942 Banco de Santander Ord. ..................................
298,325
860 Banco Popular de Espanol..................................
158,600
9,756 Centros Comerciales Pryca ................................
204,691
8,610 Empresa Nacional de Electricidad (Endesa) ................
487,640
1,400 Fomento de Construcciones Y Contratas S.A.................
107,337
1,578 Gas Natural S.D.G. S.A. ..................................
245,871
22,206 Iberdrola S.A. ...........................................
203,204
510 Repsol, ADR ..............................................
16,766
7,199 Repsol S.A. ..............................................
235,911
13,742 Sevillana de Electricidad ................................
106,719
- -----------
2,065,064
- -----------
SWEDEN -- 2.0%
1,940 Asea AB Free, Series A....................................
188,435
18,790 Astra AB, Series B........................................
744,186
11,090 Atlas Copco AS, Series B .................................
167,006
6,140 Electrolux Company AB, Series B...........................
251,961
1,900 Esselte AB, Series B......................................
28,469
2,490 Hennes & Mauritz AB, Series 5 ............................
138,740
2,480 Sandvik AB, Series A .....................................
43,509
11,790 Sandvik AB, Series B .....................................
206,842
8,000 Stora Kopparbergs AB, Series B............................
95,776
- -----------
1,864,924
- -----------
ITALY -- 1.8%
7,001 Arnoldo Mondadori Editore S.p.A. Ord. ....................
60,740
15,000 Assicurazioni Generali S.p.A..............................
363,651
73,340 Banca Fideuram............................................
84,854
7,000 Danieli & Company di Risp+++..............................
18,979
25,000 Ente Nazionale Idrocarburi ...............................
87,484
4,000 IMI S.p.A. Ord. ..........................................
25,221
28,000 Istituto Nazionale delle Assicurazion+++..................
37,163
24,740 Italgas S.p.A.............................................
75,343
2,000 Ras.......................................................
22,755
8,000 Rinascente Ord. ..........................................
48,474
22,000 Sasib di Risp Ord. .......................................
53,821
8,477 Sasib Ord. ...............................................
37,414
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
11,114 SME (Meridionale di Finanziaria) ........................
$ 22,740
80,000 S.T.E.T. ................................................
226,482
25,000 S.T.E.T. di Risp.........................................
51,072
54,362 Telecom Italia di Risp S.p.A. ...........................
66,564
101,467 Telecom Italia Mobile S.p.A. ............................
178,815
131,055 Telecom Italia S.p.A. ...................................
204,102
4,560 Unichem (Union-Cem-March Emil) S.p.A. ...................
24,583
- -----------
1,690,257
- -----------
AUSTRALIA -- 1.7%
11,000 Amcor Ltd. Ord. .........................................
77,669
53,266 Australian Gas Light Company.............................
199,929
13,597 Broken Hill Property Company Ord. .......................
192,013
39,645 Burns Philip & Company Ltd...............................
88,693
9,355 Coca Cola Amatil Ltd. ...................................
74,607
10,265 Lend Lease Corporation Ord. .............................
148,775
23,000 Publishing & Broadcasting Ltd. ..........................
80,174
49,000 Sydney Harbour Casino+ ..................................
61,913
35,000 Tabcorp Holdings Ltd. ...................................
98,852
22,156 The News Corporation Ord.................................
118,236
17,000 Western Mining Corporation Holdings Ltd..................
109,169
35,000 Westpac Banking Corporation .............................
155,042
25,000 Woodside Petroleum Ltd. .................................
127,839
- -----------
1,532,911
- -----------
MEXICO -- 1.6%
16,590 Cementos Mexicanos S.A., Series B .......................
60,210
49,109 Cemex S.A. ..............................................
161,681
3,930 Cesp, ADR++..............................................
32,423
208,030 Cifra S.A. de CV, Class E, ADR...........................
222,592
18,790 Cifra S.A. de CV, NPV, Class C ..........................
18,997
34,789 Fomento Economico Mexicana, Series B ....................
78,461
12,028 Gruma S.A. de CV, Series B ..............................
33,831
56,050 Grupo Embotellador de Mexico.............................
89,360
47,166 Grupo Financiero Banamex, Series B ......................
78,987
512 Grupo Financiero Banamex, Series L ......................
760
84,790 Grupo Industrial Maseca S.A., Class B....................
51,874
7,416 Grupo Modelo S.A. de CV, Series C........................
34,897
5,000 Grupo Sidek, ADR ........................................
11,250
26,180 Grupo Sidek S.A. de CV, Class B .........................
11,266
6,390 Grupo Telivisa S.A., GDR.................................
143,775
6,403 Kimberly-Clark de Mexico, Class A........................
96,605
10,434 Telefonos de Mexico S.A., ADR ...........................
332,584
- -----------
1,459,553
- -----------
NORWAY -- 1.4%
2,170 Bergesen DY AS, Class A .................................
43,204
3,090 Kvaerner Industrier, Class A ............................
109,371
14,010 Norsk Hydro AS...........................................
588,865
9,390 Orkla Booregaard AS......................................
466,640
2,390 Saga Petroleum, Series B ................................
29,835
- -----------
1,237,915
- -----------
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- (CONTINUED)
ARGENTINA -- 1.3%
4,189 Banco de Galicia--Buenos Aires ........................
$ 86,398
1,633 Banco Frances, ADR.....................................
43,887
943 Buenos Aires Embotelladora S.A., ADR ..................
19,449
11,480 Comercial del Plata S.A.+ .............................
30,417
1,080 Comercial del Plata S.A., ADR+ ........................
28,620
13,275 Perez Companc (Naviera) ...............................
70,347
6,950 Telecom Argentina+.....................................
32,799
24,000 Telefonica de Argentina S.A., ADR .....................
654,000
2,630 Transportadora de Gas, ADR ............................
33,861
7,140 Y.P.F Sociedad Anonima ................................
154,403
- -----------
1,154,181
- -----------
BELGIUM -- 1.1%
530 Generale de Banque Ord. ...............................
187,742
1,730 Kredietbank International NPV..........................
472,620
248 U.B.C. ................................................
330,119
- -----------
990,481
- -----------
BRAZIL -- 1.0%
3,410 Brazil Fund, Inc.......................................
72,036
1,896 Cemig Companhia, ADR...................................
41,712
3,719,511 Companhia Energetica de Minas Gerais...................
82,277
2,280,000 Companhia Siderugica Nacional..........................
46,916
12,100 Telebras, ADR .........................................
573,237
2,000,000 Telec Brasileiras-Telebras ............................
77,370
1,432 Uniao de Bancos Brasileiras ...........................
64,384
- -----------
957,932
- -----------
THAILAND -- 1.0%
9,300 Advanced Information Services (F) .....................
164,661
17,100 Bangkok Bank Public Company Ltd. (F) ..................
207,725
15,600 Bank of Ayudhya (F) ...................................
87,320
3,000 Land & House Public Company Ltd. (F) ..................
49,305
1,500 Siam Cement Public Company Ltd. (F) ...................
83,128
11,600 Siam Commercial Bank Public Company
Ord. (F) .............................................
152,886
13,600 Thai Farmers Bank Public Company (F) ..................
137,134
- -----------
882,159
- -----------
CHILE -- 0.7%
718 AFP Provida, ADR+......................................
19,835
1,910 Chilectra S.A. ........................................
92,390
2,515 Chilgener S.A., ADS....................................
62,875
2,241 Compania Cervecerias, ADR..............................
52,103
1,055 Compania de Telefonos de Chile ........................
87,433
6,066 Empresa Nacional Electricidad Chile, ADR ..............
138,002
2,831 Enersis S.A., ADR......................................
80,683
5,460 The Chile Fund.........................................
141,960
- -----------
675,281
- -----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
NEW ZEALAND -- 0.6%
29,000 Air New Zealand Ltd., Class B, Ord. .....................
$ 98,586
45,000 Carter Holt Harvey Ord. .................................
97,082
20,000 Fernz Corporation Ord. ..................................
52,823
63,973 Fletcher Challenge (Forest Division) ....................
91,172
28,000 Fletcher Challenge Ord. .................................
64,617
39,000 Telecom Corporation of New Zealand ......................
168,275
- -----------
572,555
- -----------
CHINA -- 0.4%
18,100 Huaneng Power International, ADS+ .......................
260,187
412,000 Shanghai Petrochemical, Class H .........................
118,552
- -----------
378,739
- -----------
CANADA -- 0.3%
6,740 Alcan Aluminum ..........................................
209,198
3,420 Macmillan Bloedel .......................................
42,273
3,040 Royal Bank Of Canada ....................................
69,306
- -----------
320,777
- -----------
KOREA -- 0.3%
58 Samsung Company, GDR+ ...................................
3,480
791 Samsung Electronics Company, Non-Voting, GDR+ ...........
47,460
3,200 Samsung Electronics Company, Non-Voting, GDR+ ++.........
192,000
- -----------
242,940
- -----------
DENMARK -- 0.3%
1,570 Den Danske Bank..........................................
108,286
650 Tele Danmark AS, Series B................................
35,467
1,950 UniDanmark AS, Series A .................................
96,569
- -----------
240,322
- -----------
PORTUGAL -- 0.3%
4,230 Estabelec Jeronimo Martins & Filho ......................
235,016
- -----------
INDONESIA -- 0.2%
9,000 PT Telekomunikas Indonesia, ADR .........................
227,250
- -----------
FINLAND -- 0.1%
3,580 Nokia AB, Class A .......................................
138,256
- -----------
AUSTRIA -- 0.1%
630 Flughafen Wein AG........................................
42,506
660 Oesterreichische Elektrizitats Wirtsch, Class A .........
39,685
- -----------
82,191
- -----------
PANAMA -- 0.1%
3,500 Panamerican Beverages Inc., Class A .....................
112,000
- -----------
UNITED STATES -- 0.0%#
1,140 Enron Global Power & Pipelines ..........................
28,357
- -----------
Total Common Stock (Cost $74,816,079)....................
83,011,000
- -----------
</TABLE>
See Notes to Financial Statements.
24
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
PREFERRED STOCK -- 1.4%
BRAZIL -- 1.0%
20,259,354 Banco Bradesco .....................................
$ 177,174
280,000 Brahma-Companhia Cervejaria ........................
115,235
270,000 Brasmotor S.A. .....................................
53,614
240,000 Companhia Cimento Portland Itau.....................
57,287
149,000 Coteminas PN........................................
49,823
500,000 Electrobras B ......................................
135,295
150,000 Itaubanco PN .......................................
41,823
2,620,000 Lojas Americanas NPV ...............................
61,460
530,000 Petroleo Brasil ....................................
45,254
670,000 Telesp .............................................
98,575
141,370,000 Usiminas PN.........................................
114,905
- -----------
950,445
- -----------
GERMANY -- 0.3%
1,410 Hornbach AG ........................................
120,941
279 Krones AG+ .........................................
110,705
- -----------
231,646
- -----------
AUSTRALIA -- 0.1%
38,000 TNT Ltd. (Cumulative Convertible Shares) ...........
53,945
- -----------
AUSTRIA -- 0.0%#
480 Creditanstalt Bankverein ...........................
24,670
- -----------
Total Preferred Stock
(Cost $1,397,373)..................................
1,260,706
- -----------
WARRANTS -- 0.2%
38,600 Affin Holdings, Warrants, Expire 11/15/1999+ .......
25,382
20,000 Commerce Asset Holdings Berhad, Warrants, Expire
06/27/1998+ .......................................
51,581
79 Primagaz, Warrants, Expire 06/30/1998+ .............
677
10,800 United Overseas Bank, Warrants, Expire 06/17/1997+
...................................................
43,521
780 Veba AG, Warrants, Expire 04/06/1998+ ..............
122,385
- -----------
Total Warrants (Cost $189,227)......................
243,546
- -----------
RIGHTS -- 0.0%# (Cost $0)
473,704 Banco Bradesco, Pfd.+...............................
780
- -----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S>
<C>
CORPORATE BOND -- 0.0%# (Cost $18,166)
$7,000 Kredietbank International NPV, Convertible Bond,
5.750% due 11/30/2003..............................
21,026
- -----------
</TABLE>
<TABLE>
<S> <C>
<C>
TOTAL INVESTMENTS (COST $76,420,845*)........................
91.5% 84,537,058
OTHER ASSETS AND LIABILITIES (NET)...........................
8.5 7,814,796
----
- - -----------
NET ASSETS...................................................
100.0% $92,351,854
===== ===========
</TABLE>
- ------------
* Aggregate cost for federal tax purposes was $76,572,224.
+ Non-income producing security.
++ Security exempt from registration under Rule 144A of the
Securities Act of
1933. These securities may be resold in transactions exempt
from
registration, normally to qualified institutional buyers.
+++The Adviser has deemed these securities to be illiquid.
#Amount represents less than 0.1%.
Abbreviations: ADR -- American Depositary Receipt
ADS -- American Depositary Shares
(F) -- Foreign or Alien Shares
GDR -- Global Depositary Receipt
Ord. -- Ordinary
At December 31, 1995, sector diversification of the Portfolio was
follows:
<TABLE>
<CAPTION>
% OF
VALUE
SECTOR DIVERSIFICATION NET
ASSETS (NOTE 1)
- ---------------------- ---------
- - --------
<S> <C>
<C>
COMMON STOCK:
Banking................................................. 8.2%
$ 7,572,182
Utilities............................................... 7.6
7,022,197
Media................................................... 7.1
6,565,416
Health and Personal Care................................ 6.5
5,971,555
Retail Trade............................................ 5.7
5,291,731
Construction and Building Materials..................... 4.8
4,402,110
Electronics and Instruments............................. 4.6
4,270,507
Petroleum............................................... 4.4
4,062,417
Machinery and Engineering Services...................... 3.5
3,251,552
Chemicals............................................... 3.2
2,956,755
Household Products...................................... 3.1
2,841,117
Food and Grocery Products............................... 3.0
2,803,680
Real Estate............................................. 2.9
2,689,070
Metals and Mining....................................... 2.8
2,557,863
Diversified Industrial Manufacturing.................... 2.6
2,402,271
Financial Institutions.................................. 2.4
2,167,967
Beverage and Tobacco.................................... 2.1
1,973,923
Transport and Storage................................... 2.0
1,855,708
Entertainment and Leisure............................... 1.7
1,571,154
Insurance............................................... 1.6
1,507,082
Electrical Equipment.................................... 1.4
1,304,290
Diversified Holding Companies........................... 1.3
1,208,651
Heavy Engineering....................................... 1.1
1,026,813
Wholesale Trade......................................... 1.1
988,252
Business Services....................................... 1.1
985,011
Energy.................................................. 1.0
877,409
Automotive.............................................. 0.9
848,595
Computers and Communications............................ 0.9
837,414
Forestry and Paper Products............................. 0.7
600,909
Textiles................................................ 0.3
317,309
Investment Trusts....................................... 0.2
213,996
Aerospace and Defense................................... 0.1
66,094
-----
- -----------
TOTAL COMMON STOCK...................................... 89.9
83,011,000
PREFERRED STOCK......................................... 1.4
1,260,706
WARRANTS................................................ 0.2
243,546
RIGHTS.................................................. 0.0#
780
CORPORATE BOND.......................................... 0.0#
21,026
-----
- -----------
TOTAL INVESTMENTS....................................... 91.5
84,537,058
OTHER ASSETS AND LIABILITIES (NET)...................... 8.5
7,814,796
-----
- -----------
NET ASSETS.............................................. 100.0%
$92,351,854
=====
===========
</TABLE>
- ------------
# Amount represents less than 0.1%.
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
FORWARD FOREIGN EXCHANGE CONTRACTS TO SELL:
<TABLE>
<CAPTION>
CONTRACT MARKET
VALUE VALUE
DATE (NOTE 1)
-----
- --- --------
<C> <S> <C>
<C>
132,794 Australian Dollar.............................
01/02/1996 $ 98,699
17,447 British Pound Sterling........................
01/02/1996 27,095
18,429,624 Spanish Peseta................................
01/02/1996 151,934
267,046 Swiss Francs..................................
01/03/1996 231,646
5,126,638 Japanese Yen..................................
01/04/1996 49,669
- --------
Total Forward Foreign Exchange Contracts to Sell
(Contract Amount $559,465)...............................
$559,043
========
</TABLE>
See Notes to Financial Statements.
25
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
QUEST FOR VALUE EQUITY PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- 80.2%
INSURANCE -- 16.7%
50,000 ACE Ltd. .............................................
$ 1,987,500
16,200 American International Group, Inc ....................
1,498,500
65,300 EXEL Ltd. Ord. .......................................
3,983,300
20,000 Markel Corporation+...................................
1,510,000
22,000 Mid Ocean Ltd. .......................................
816,750
70,000 Prudential Reinsurance Holdings, Inc. ................
1,636,250
- -----------
11,432,300
- -----------
FINANCIAL SERVICES -- 8.5%
21,700 American Express Company .............................
897,837
37,500 Federal Home Loan Mortgage Corporation ...............
3,131,250
8,000 Morgan Stanley Group, Inc. ...........................
645,000
18,000 Travelers Group, Inc..................................
1,131,750
- -----------
5,805,837
- -----------
AEROSPACE AND DEFENSE -- 5.6%
25,000 AlliedSignal, Inc. ...................................
1,187,500
73,000 Coltec Industries, Inc.+..............................
848,625
19,500 McDonnell Douglas Corporation.........................
1,794,000
- -----------
3,830,125
- -----------
BANKING -- 5.3%
28,000 Citicorp..............................................
1,883,000
13,000 First Interstate Bancorp..............................
1,774,500
- -----------
3,657,500
- -----------
HEALTH CARE -- 5.2%
32,000 Columbia/ HCA Healthcare Corporation .................
1,624,000
94,000 Tenet Healthcare Corporation+.........................
1,950,500
- -----------
3,574,500
- -----------
TRANSPORTATION -- 5.0%
12,000 AMR Corporation+......................................
891,000
68,000 Canadian Pacific Ord. ................................
1,232,500
28,000 CSX Corporation.......................................
1,277,500
- -----------
3,401,000
- -----------
RETAIL -- 4.9%
62,500 May Department Stores Company.........................
2,640,625
15,000 Penney (J.C.) Inc. ...................................
714,375
- -----------
3,355,000
- -----------
DRUGS AND MEDICAL PRODUCTS -- 3.9%
28,000 Becton, Dickinson & Company...........................
2,100,000
6,000 Warner-Lambert Company................................
582,750
- -----------
2,682,750
- -----------
ENERGY -- 3.5%
22,000 Tenneco Inc. .........................................
1,091,750
22,500 Triton Energy Corporation.............................
1,290,938
- -----------
2,382,688
- -----------
TEXTILES AND APPAREL -- 3.5%
100,000 Shaw Industries Inc...................................
1,475,000
36,200 Warnaco Group, Inc., Class A..........................
905,000
- -----------
2,380,000
- -----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
TOYS, GAMES AND HOBBIES -- 3.4%
28,400 Hasbro Inc............................................
$ 880,400
47,500 Mattel, Inc...........................................
1,460,625
- -----------
2,341,025
- -----------
PAPER AND PAPER PRODUCTS -- 2.8%
20,000 Champion International Corporation....................
840,000
25,000 Temple-Inland Inc.....................................
1,103,125
- -----------
1,943,125
- -----------
ELECTRONICS -- 2.5%
32,000 Arrow Electronics Inc.+...............................
1,380,000
10,000 Loral Corporation.....................................
353,750
- -----------
1,733,750
- -----------
TELECOMMUNICATIONS -- 2.3%
40,000 Sprint Corporation....................................
1,595,000
- -----------
TECHNOLOGY -- 1.9%
23,000 Intel Corporation.....................................
1,305,250
- -----------
FOOD AND BEVERAGE -- 1.6%
30,000 Varity Corporation+...................................
1,113,750
- -----------
DIVERSIFIED CHEMICALS -- 1.5%
15,000 Du Pont (E.I.) de Nemours & Company...................
1,048,125
- -----------
COSMETICS AND TOILETRIES -- 1.3%
12,100 Avon Products Inc.....................................
912,037
- -----------
METALS AND MINING -- 0.8%
18,315 Freeport McMoran Copper & Gold Inc., Class B..........
515,109
- -----------
Total Common Stock
(Cost $42,959,534)...................................
55,008,871
- -----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S>
<C>
U.S. GOVERNMENT AGENCY DISCOUNT NOTE -- 1.3%
(Cost $899,864)
$ 900,000 Federal Home Loan Bank (FHLB),
5.450%# due 01/02/1996...............................
899,864
- -----------
COMMERICAL PAPER -- 21.5%
2,700,000 Deere (John) Capital Corporation,
5.550%# due 01/17/1996...............................
2,693,180
3,300,000 Ford Motor Credit Corporation,
5.600%# due 01/17/1996...............................
3,291,787
3,000,000 Household Finance Corporation,
5.770%# due 01/10/1996...............................
2,995,685
3,000,000 Merrill Lynch & Company, Inc.,
5.760%# due 01/03/1996...............................
2,999,040
2,800,000 Prudential Funding Corporation,
5.740%# due 01/10/1996...............................
2,795,973
- -----------
Total Commercial Paper
(Cost $14,775,665)...................................
14,775,665
- -----------
</TABLE>
<TABLE>
<S> <C>
<C>
TOTAL INVESTMENTS (COST $58,635,063*).......................
103.0% 70,684,400
OTHER ASSETS AND LIABILITIES (NET)..........................
(3.0) (2,053,966)
-----
- -----------
NET ASSETS..................................................
100.0% $68,630,434
=====
===========
</TABLE>
- ------------
* Aggregate cost for federal tax purposes.
+ Non-income producing security.
# Rate represents annualized yield at date of purchase.
Abbreviation:
Ord. -- Ordinary
See Notes to Financial Statements.
26
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
QUEST FOR VALUE SMALL CAP PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- 68.4%
HEALTH CARE -- 10.8%
10,000 AmeriSource Health Corporation, Class A+..............
$ 330,000
15,200 Community Health Systems Inc.+........................
541,500
29,000 DENTSPLY International, Inc. .........................
1,160,000
51,300 Magellan Health Services Inc.+........................
1,231,200
28,800 Summit Care Corporation+..............................
658,800
10,000 Sunrise Medical Inc.+.................................
185,000
54,600 SpaceLabs Medical Inc.+...............................
1,569,750
- -----------
5,676,250
- -----------
OIL AND GAS -- 7.3%
42,600 Aquila Gas Pipeline Corporation.......................
548,475
24,000 Belden & Blake Corporation+...........................
420,000
72,500 Global Natural Resources, Inc.+.......................
761,250
76,250 Noble Drilling Corporation+...........................
686,250
48,000 Petroleum Heat & Power Inc., Class A..................
390,000
52,500 St. Mary Land & Exploration Company...................
735,000
35,000 Tesoro Petroleum Corporation+.........................
301,875
- -----------
3,842,850
- -----------
BUILDING AND CONSTRUCTION -- 5.6%
58,589 D.R. Horton Inc.......................................
688,421
70,100 Falcon Building Products Inc., Class A+...............
674,712
28,000 Insituform Technologies Inc., Class A+................
325,500
26,000 Martin Marietta Materials Inc.........................
536,250
37,800 McGrath Rentcorp......................................
718,200
- -----------
2,943,083
- -----------
REAL ESTATE -- 5.0%
48,400 Cousins Properties, Inc...............................
980,100
19,700 Post Properties Inc...................................
627,937
21,936 Security Capital Pacific Trust........................
433,236
58,900 Taubman Centers, Inc..................................
589,000
- -----------
2,630,273
- -----------
COMPUTER SERVICES AND SOFTWARE -- 4.5%
85,500 BancTec, Inc.+........................................
1,581,750
54,400 Exabyte Corporation+..................................
795,600
- -----------
2,377,350
- -----------
TEXTILES AND APPAREL -- 4.2%
88,000 Dyersburg Corporation.................................
440,000
29,600 Mohawk Industries Inc.+...............................
462,500
65,700 Westpoint Stevens Inc.+...............................
1,318,106
- -----------
2,220,606
- -----------
INSURANCE -- 3.7%
30,000 Capsure Holdings Corporation+.........................
528,750
37,500 E.W. Blanch Holdings, Inc.............................
876,562
37,500 Penn-America Group, Inc...............................
534,375
- -----------
1,939,687
- -----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
MANUFACTURING -- 3.3%
80,000 Easco Inc. ...........................................
$ 690,000
23,300 North American Watch Corporation......................
448,525
35,000 Nu-Kote Holdings, Inc., Class A+......................
595,000
- -----------
1,733,525
- -----------
CHEMICALS -- 2.7%
24,700 OM Group, Inc.........................................
818,188
55,000 Sybron Chemical Inc.+.................................
591,250
- -----------
1,409,438
- -----------
ADVERTISING -- 2.6%
39,600 Katz Media Group Inc.+................................
697,950
36,600 True North Communications Inc.........................
677,100
- -----------
1,375,050
- -----------
TRANSPORTATION -- 2.5%
45,000 Harmon Industries Inc.................................
708,750
43,600 MTL, Inc.+............................................
610,400
- -----------
1,319,150
- -----------
PRINTING AND PUBLISHING -- 2.1%
160,000 Baldwin Technology Inc., Class A+.....................
810,000
17,000 Merrill Corporation...................................
272,000
- -----------
1,082,000
- -----------
RETAIL -- 2.0%
16,900 Blair Corporation.....................................
534,462
37,500 Maxim Group Inc.+.....................................
506,250
- -----------
1,040,712
- -----------
FINANCIAL SERVICES -- 1.9%
24,400 First Financial Caribbean Corporation.................
457,500
36,700 Guaranty National Corporation.........................
564,263
- -----------
1,021,763
- -----------
CONTAINERS -- 1.8%
68,000 Shorewood Packaging Corporation+......................
969,000
- -----------
ELECTRONICS -- 1.7%
17,500 Exide Corporation.....................................
258,125
35,000 Oak Industries Inc.+..................................
656,250
- -----------
914,375
- -----------
UTILITIES -- 1.7%
81,200 Sithe Energies, Inc.+.................................
487,200
18,500 UGI Corporation.......................................
383,875
- -----------
871,075
- -----------
TOBACCO, FOOD AND BEVERAGES -- 1.0%
20,000 Morningstar Group Inc.+...............................
160,000
500 Ralcorp Holdings Inc.+................................
12,125
31,800 Sylvan Inc.+..........................................
377,625
- -----------
549,750
- -----------
PAPER AND PAPER PRODUCTS -- 0.9%
110,000 Repap Enterprises Inc.+...............................
488,125
- -----------
</TABLE>
See Notes to Financial Statements.
27
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
QUEST FOR VALUE SMALL CAP PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- (CONTINUED)
MEDICAL LAB SUPPLIES -- 0.9%
19,800 Sybron International Corporation+.....................
$ 470,250
- -----------
LEASING -- 0.9%
25,000 Interpool, Inc. ......................................
446,875
- -----------
AUTOMOTIVES -- 0.8%
28,200 Masland Corporation...................................
394,800
- -----------
CONSUMER SERVICES -- 0.5%
15,000 Armor All Products Corporation........................
271,875
34,200 SpectraVision, Inc., Class B+.........................
534
- -----------
272,409
- -----------
Total Common Stock
(Cost $33,859,173)...................................
35,988,396
- -----------
PREFERRED STOCK -- 0.8% (Cost $450,000)
4,500 Interpool, Inc., Pfd. Conv. ..........................
418,500
- -----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
COMMERCIAL PAPER -- 28.7%
$2,400,000 Beneficial Corporation,
5.760%# due 01/08/1996...............................
$ 2,397,312
700,000 Deere (John) Capital Corporation,
5.550%# due 01/17/1996...............................
698,273
2,400,000 Ford Motor Credit Corporation,
5.600%# due 01/17/1996...............................
2,394,027
2,300,000 General Electric Capital Corporation,
5.650%# due 01/24/1996...............................
2,291,698
2,400,000 Household Financial Corporation,
5.750%# due 01/10/1996...............................
2,396,550
2,000,000 IBM Credit Corporation,
5.730%# due 01/03/1996...............................
1,999,363
2,000,000 Merrill Lynch & Company, Inc.,
5.760%# due 01/03/1996...............................
1,999,360
900,000 Prudential Funding Corporation,
5.770%# due 01/10/1996...............................
898,702
- -----------
Total Commercial Paper
(Cost $15,075,285)...................................
15,075,285
- -----------
U.S. GOVERNMENT AGENCY DISCOUNT NOTE -- 1.1%
(Cost $599,910)
600,000 Federal Home Loan Bank (FHLB),
5.450#% due 01/02/1996...............................
599,910
- -----------
</TABLE>
<TABLE>
<S> <C>
<C>
TOTAL INVESTMENTS (COST $49,984,368*)........................
99.0% 52,082,091
OTHER ASSETS AND LIABILITIES (NET)...........................
1.0 514,739
----
- - -----------
NET ASSETS...................................................
100.0% $52,596,830
===== ===========
</TABLE>
- ------------
* Aggregate cost for federal tax purposes was $50,003,404.
+ Non-income producing security.
# Rate represents annualized yield at date of purchase.
See Notes to Financial Statements.
28
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
U.S. GOVERNMENT SECURITIES PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
U.S. TREASURY OBLIGATIONS -- 44.4%
U.S. TREASURY NOTES -- 30.0%
U.S. Treasury Notes:
$ 14,000 6.875% due 10/31/1996................................
$ 14,179
60,000 6.375% due 01/15/2000 ...............................
62,297
424,000 7.875% due 08/15/2001 ...............................
473,553
1,420,000 6.375% due 08/15/2002 ...............................
1,488,998
967,000 7.250% due 08/15/2004................................
1,075,333
685,000 5.875% due 11/15/2005................................
700,413
- -----------
3,814,773
- -----------
U.S. TREASURY BOND -- 14.4%
1,606,000 U.S. Treasury Bond,
7.125% due 02/15/2023...............................
1,836,365
- -----------
Total U.S. Treasury Obligations
(Cost $5,466,823)...................................
5,651,138
- -----------
MORTGAGE-BACKED SECURITIES -- 26.2%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) -- 13.5%
GNMA:
418,427 7.500% due 12/15/2008................................
432,679
232,791 8.500% due 12/15/2024................................
244,430
42,742 8.000% due 01/15/2025................................
44,531
794,008 8.000% due 09/15/2025................................
827,253
160,468 8.500% due 10/15/2025................................
168,491
- -----------
1,717,384
- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) -- 12.7%
FNMA:
280,528 7.500% due 06/01/2009................................
288,503
292,451 8.000% due 10/01/2010................................
303,234
177,432 7.500% due 04/01/2025................................
181,811
259,647 7.000% due 08/01/2025................................
261,755
321,313 8.500% due 09/01/2025................................
335,371
241,993 7.500% due 10/01/2025................................
247,965
- -----------
1,618,639
- -----------
Total Mortgage-Backed Securities
(Cost $3,250,447)...................................
3,336,023
- -----------
CORPORATE FIXED INCOME SECURITIES -- 21.6%
FINANCIAL SERVICES -- 14.8%
40,000 Ahmanson (H.F.) & Company,
Medium Term Note,
7.650% due 04/15/2000...............................
42,195
120,000 AT&T Universal Card Company,
Series 95-2, Note,
5.950% due 12/17/2002...............................
121,237
475,000 Chase Manhattan Credit Card Company, Series 92-1,
Note,
7.400% due 05/15/2000...............................
484,201
104,000 Donaldson Lufkin Jenrette, Senior Note,
6.875% due 11/01/2005...............................
106,601
Ford Motor Credit Company:
300,000 Global Bond,
6.250% due 02/26/1998................................
304,473
450,000 Series 92-2, Note,
7.375% due 04/15/1999................................
460,265
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
$ 109,000 Malayan Banking Berhad, NY,
Subordinate Note,
7.125% due 09/15/2005...............................
$ 114,500
50,000 MBNA Corporation, Series 95-C, Note,
6.450% due 02/15/2008...............................
51,406
110,000 Paine Webber Group Inc.,
Medium Term Note,
7.310% due 08/09/2000...............................
115,580
50,000 Schwab (Charles) Corporation,
Medium Term Note,
6.300% due 09/30/2003...............................
48,777
25,000 Smith Barney Holdings Inc., Note,
7.875% due 10/01/1999...............................
26,628
- -----------
1,875,863
- -----------
HEALTH CARE -- 1.9%
150,000 American Home Products Corporation, Note,
7.900% due 02/15/2005...............................
168,711
70,000 Tenet Healthcare Corporation, Senior Note,
9.625% due 09/01/2002...............................
77,000
- -----------
245,711
- -----------
RETAIL -- 0.7%
80,000 Federated Department Stores Inc.,
Senior Note,
10.000% due 02/15/2001..............................
86,400
- -----------
MEDIA AND COMMUNICATIONS -- 0.7%
80,000 Jones Intercable Inc., Senior Note,
9.625% due 03/15/2002...............................
86,000
- -----------
AEROSPACE AND DEFENSE -- 0.6%
75,000 Lockheed Corporation, Medium Term Note,
4.875% due 02/15/1996...............................
74,915
- -----------
LEASING -- 0.4%
50,000 Hertz Corporation, Junior Subordinate Note,
7.000% due 07/15/2003...............................
51,546
- -----------
CONSUMER NON-DURABLES -- 0.4%
50,000 Valassis Communications Inc., Senior Note,
9.550% due 12/01/2003...............................
50,981
- -----------
WASTE DISPOSAL -- 0.4%
50,000 Waste Management Inc., Debenture,
7.870% due 08/15/1996...............................
50,665
- -----------
OTHER -- 1.7%
100,000 ADT Operations, Inc., Guaranteed Senior Note,
8.250% due 08/01/2000...............................
105,500
36,000 Carter Holt Harvey, Ltd., Senior Note,
8.875% due 12/01/2004...............................
41,779
30,000 Lincoln National Corporation, Note,
7.250% due 05/15/2005...............................
31,936
38,000 Mass Transit Railway Corporation, Note,
7.250% due 10/01/2005...............................
39,460
- -----------
218,675
- -----------
Total Corporate Fixed Income Securities
(Cost $2,692,311)...................................
2,740,756
- -----------
</TABLE>
See Notes to Financial Statements.
29
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
U.S. GOVERNMENT SECURITIES PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
U.S. GOVERNMENT AGENCY DISCOUNT NOTE -- 3.9%
(Cost $491,797)
$ 500,000 Federal Home Loan Bank (FHLB),
4.170%# due 09/09/1996...............................
$ 496,015
- -----------
</TABLE>
<TABLE>
<S> <C>
<C>
TOTAL INVESTMENTS (COST $11,901,378*)........................
96.1% 12,223,932
OTHER ASSETS & LIABILITIES (NET).............................
3.9 494,236
----
- - -----------
NET ASSETS...................................................
100.0% $12,718,168
===== ===========
</TABLE>
- ------------
* Aggregate cost for federal tax purposes was $11,901,440.
# Rate represents annualized yield at date of purchase.
See Notes to Financial Statements.
30
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- 79.1%
PHARMACEUTICALS -- 7.9%
3,000 American Home Products Corporation......................
$ 291,000
5,000 Lilly (Eli) & Company...................................
281,250
8,990 Pharmacia & Upjohn Inc. ................................
348,362
2,100 Schering-Plough Corporation.............................
114,975
7,300 SmithKline Beecham Plc, ADR.............................
405,150
2,900 Warner-Lambert Company..................................
281,663
- -----------
1,722,400
- -----------
BANKING AND FINANCE -- 7.3%
3,200 Banc One Corporation....................................
120,800
1,800 Bankers Trust New York Corporation......................
119,700
900 Brooklyn Bancorp Inc....................................
36,675
3,300 Chase Manhattan Corporation.............................
200,063
3,300 Chemical Banking Corporation............................
193,875
2,100 First Interstate Bancorp................................
286,650
3,100 Morgan (J.P.) & Company Inc.............................
248,775
4,000 National City Corporation...............................
132,500
3,500 PNC Bank Corporation....................................
112,875
6,000 Skandinaviska Enskil....................................
49,695
2,600 U.S. Bancorp............................................
87,425
- -----------
1,589,033
- -----------
CONSUMER PRODUCTS -- 7.0%
6,100 American Brands Inc.....................................
272,213
600 Clorox Company..........................................
42,975
4,500 Corning Inc. ...........................................
144,000
150 Dixie Yarns Inc.........................................
581
2,600 Eastman Kodak Company...................................
174,200
3,600 Hanson Plc, ADR.........................................
54,900
200 Helene Curtis Industries................................
6,325
4,100 Philip Morris Companies Inc.............................
371,050
2,100 RJR Nabisco Holdings Corporation........................
64,837
3,800 Tambrands Inc...........................................
181,450
500 Unilever NV, ADR........................................
70,375
4,300 UST Inc.................................................
143,513
- -----------
1,526,419
- -----------
PETROLEUM -- INTERNATIONAL -- 6.6%
2,000 Chevron Corporation.....................................
105,000
2,050 British Petroleum Company Plc, ADR......................
209,356
4,600 Exxon Corporation.......................................
368,575
1,500 Mobil Corporation.......................................
168,000
1,900 Royal Dutch Petroleum Company, ADR......................
268,137
4,100 Texaco Inc..............................................
321,850
- -----------
1,440,918
- -----------
UTILITIES -- ELECTRIC -- 5.5%
3,500 Baltimore Gas & Electric Company........................
99,750
7,900 Centerior Energy Corporation............................
70,112
1,800 Dominion Resources Inc..................................
74,250
1,600 DQE Inc.................................................
49,200
6,400 Entergy Corporation.....................................
187,200
2,800 Florida Progress Corporation............................
99,050
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
1,200 General Public Utilities Corporation....................
$ 40,800
4,600 Pacific Gas & Electric Company..........................
130,525
8,250 PacifiCorp..............................................
175,313
400 Public Service Company of New Mexico....................
7,050
4,600 SCECorp.................................................
81,650
3,900 Southern Company........................................
96,038
3,000 Unicom Corporation......................................
98,250
- -----------
1,209,188
- -----------
TELECOMMUNICATIONS -- 4.9%
5,200 ALLTEL Corporation......................................
153,400
3,400 BCE Inc.................................................
117,300
2,100 Bell Atlantic Corporation...............................
140,437
2,400 BellSouth Corporation...................................
104,400
300 Communications Satellite Corporation....................
5,587
5,700 GTE Corporation.........................................
250,800
600 Pacific Telesis Group...................................
20,175
2,800 Southern New England Telecommunications Corporation.....
111,300
4,400 US West Inc.............................................
157,300
- -----------
1,060,699
- -----------
FINANCIAL SERVICES -- 4.8%
5,700 American Express Company................................
235,838
1,700 American General Corporation............................
59,287
2,500 Block (H&R) Inc.........................................
101,250
1,650 Federal National Mortgage Association...................
204,806
3,200 Student Loan Marketing Association......................
210,800
3,700 Travelers Group, Inc....................................
232,638
- -----------
1,044,619
- -----------
FOOD AND BEVERAGE -- 4.4%
3,000 Anheuser-Busch Companies Inc............................
200,625
2,100 Brown-Forman Corporation, Class B.......................
76,650
1,550 CPC International Inc...................................
106,369
3,300 General Mills Inc.......................................
190,575
1,100 Grand Metropolitan Plc, ADR.............................
31,625
4,400 Heinz (H.J.) Company....................................
145,750
2,600 Quaker Oats Company.....................................
89,700
3,900 Sara Lee Corporation....................................
124,312
- -----------
965,606
- -----------
PETROLEUM -- DOMESTIC -- 3.3%
3,650 Atlantic Richfield Company..............................
404,238
5,100 McDermott Interational Inc. ............................
112,200
900 Pennzoil Company........................................
38,025
1,187 Sun Company Inc.........................................
32,494
6,900 USX-Marathon Group (New)................................
134,550
- -----------
721,507
- -----------
PAPER AND PAPER PRODUCTS -- 3.1%
1,300 Georgia-Pacific Company.................................
89,213
4,400 International Paper Company.............................
166,650
2,600 Kimberly-Clark Corporation..............................
215,150
4,200 Union Camp Corporation..................................
200,025
- -----------
671,038
- -----------
</TABLE>
See Notes to Financial Statements.
31
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- (CONTINUED)
ELECTRICAL EQUIPMENT -- 2.9%
3,307 Cooper Industries Inc. .................................
$ 121,532
4,600 General Electric Company................................
331,200
1,700 Hubbell Inc., Class B...................................
111,775
1,000 TRW Inc.................................................
77,500
- -----------
642,007
- -----------
SPECIALTY CHEMICALS -- 2.7%
5,000 Betz Laboratories Inc. .................................
205,000
4,100 Crompton & Knowles Corporation..........................
54,325
3,100 Lubrizol Corporation....................................
86,412
3,700 Minnesota Mining & Manufacturing Company................
245,125
- -----------
590,862
- -----------
MEDIA AND COMMUNICATIONS -- 2.6%
3,200 Dun & Bradstreet Corporation............................
207,200
2,400 Gannet Company Ltd......................................
147,300
1,600 McGraw-Hill Companies Inc...............................
139,400
500 Readers Digest Association Inc., Class A................
25,625
100 Readers Digest Association Inc., Class B................
4,725
2,900 US West Media Group+....................................
55,825
- -----------
580,075
- -----------
INSURANCE -- 2.5%
10,000 Allmerica Financial Corporation.........................
270,000
1,400 Hilb, Rogal and Hamilton Company........................
18,725
1,800 Loews Corporation.......................................
141,075
2,500 Provident Life & Accident Company, Class B..............
84,687
600 UNUM Corporation........................................
33,000
800 Willis Corroon Group Plc, ADR...........................
9,300
- -----------
556,787
- -----------
REAL ESTATE -- 2.2%
6,800 DeBartolo Realty Corporation............................
88,400
3,900 General Growth Properties Inc...........................
80,925
200 Rouse Company...........................................
4,075
7,300 Simon Property Group Inc................................
177,938
400 Taubman Centers Inc.....................................
4,000
3,300 Weingarten Realty Inc...................................
125,400
- -----------
480,738
- -----------
DIVERSIFIED CHEMICALS -- 2.2%
4,300 Du Pont (E.I.) de Nemours & Company.....................
300,463
1,400 Monsanto Company........................................
171,500
- -----------
471,963
- -----------
RETAIL -- 2.1%
800 Dayton Hudson Corporation...............................
60,000
1,350 Fleming Companies Inc...................................
27,844
200 Hancock Fabrics Inc.....................................
1,800
2,400 May Department Stores Company...........................
101,400
3,700 Penney (J.C.) Company, Inc..............................
176,213
2,600 Sears, Roebuck & Company................................
101,400
- -----------
468,657
- -----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
ELECTRONIC SYSTEMS -- 1.9%
2,100 Eaton Corporation......................................
$ 112,612
2,300 EG&G Inc...............................................
55,775
4,900 Honeywell, Inc.........................................
238,262
- -----------
406,649
- -----------
RAILROADS -- 1.0%
900 Conrail Inc............................................
63,000
2,500 Union Pacific Corporation..............................
165,000
- -----------
228,000
- -----------
MEDICAL SUPPLIES -- 1.0%
1,000 Bausch & Lomb Inc......................................
39,625
4,100 Baxter International Inc...............................
171,687
- -----------
211,312
- -----------
BUSINESS SERVICES -- 0.8%
1,000 Deluxe Corporation.....................................
29,000
1,700 GATX Corporation.......................................
82,663
1,400 Pitney Bowes Inc.......................................
65,800
- -----------
177,463
- -----------
METALS AND MINING -- 0.8%
3,836 Newmont Mining Corporation.............................
173,579
- -----------
TRANSPORTATION SERVICES -- 0.6%
1,500 Alexander & Baldwin Inc................................
34,500
2,200 PHH Corporation........................................
102,850
- -----------
137,350
- -----------
CONGLOMERATES -- 0.5%
43,500 Lonhro Ord.............................................
118,898
- -----------
ENERGY SERVICES -- 0.2%
1,200 Witco Corporation......................................
35,100
- -----------
MACHINERY -- 0.1%
884 Cooper Cameron Corporation+............................
31,382
- -----------
AUTOMOTIVES -- 0.1%
700 Genuine Parts Company..................................
28,700
- -----------
GAS TRANSMISSION -- 0.1%
2,000 TransCanada Pipeline Ltd...............................
27,500
- -----------
EXPLORATION AND PRODUCTION -- 0.0%#
200 Eastern Enterprises....................................
7,050
- -----------
Total Common Stock
(Cost $15,162,717)....................................
17,325,499
- -----------
PREFERRED STOCK -- 0.0%# (Cost $4,489)
200 James River Corporation of Virginia,
Conv. Pfd. ...........................................
4,675
- -----------
</TABLE>
See Notes to Financial Statements.
32
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
U.S. TREASURY OBLIGATIONS -- 2.1%
U.S. TREASURY NOTES -- 2.1%
U.S. Treasury Notes:
$200,000 6.625% due 03/31/1997.................................
$ 203,312
100,000 7.250% due 02/15/1998.................................
103,984
100,000 7.125% due 02/29/2000.................................
106,453
50,000 7.500% due 02/15/2005.................................
56,672
- -----------
Total U.S. Treasury Obligations
(Cost $451,817)......................................
470,421
- -----------
CORPORATE BONDS -- 1.5%
150,000 B.F. Saul Real Estate Investment Trust,
Senior Note,
11.625% due 04/01/2002...............................
153,000
1,160 Carson Pirie Scott & Company, Sub. Note, 13.000% due
03/28/2005...........................................
1,164
3,000 Delta Air Line Inc., Sub. Note,
3.230% due 06/15/2003................................
2,850
160,000 Liberty Property, L.P., Sub. Note,
8.000% due 07/01/2001................................
164,400
3,300 Time Warner Inc., Senior Note,
8.750% due 01/10/2015................................
3,424
- -----------
Total Corporate Bonds
(Cost $320,092)......................................
324,838
- -----------
FOREIGN GOVERNMENT
DISCOUNT NOTE -- 0.5% (Cost $99,618)
100,000 Treasury of New South Wales, Australia, 5.730% due
01/25/1996...........................................
99,618
- -----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
COMMERCIAL PAPER -- 19.8%
$355,000 Abbott Laboratories,
5.800%## due 01/11/1996..............................
$ 354,428
145,000 AT&T Corporation,
5.700%## due 01/30/1996..............................
144,334
535,000 Ciesco, L.P.,
5.730%## due 01/15/1996..............................
534,659
800,000 Corporate Asset Funding Company, Inc., 5.540%## due
02/27/1996...........................................
792,983
687,000 Dun & Bradstreet Corporation,
5.800%## due 01/02/1996..............................
686,889
290,000 Falcon Asset Securitization Corporation, 5.800%## due
01/23/1996...........................................
288,972
300,000 Norfolk Southern Corporation,
5.800%## due 01/11/1996..............................
299,517
420,000 Preferred Receivables Funding Corporation, 5.770%##
due 01/11/1996.......................................
419,327
550,000 Southwestern Bell Telephone Company, 5.800%## due
01/16/1996...........................................
548,671
279,000 United Parcel Service of America, Inc., 5.850%## due
01/04/1996...........................................
278,864
- -----------
Total Commercial Paper
(Cost $4,348,644)....................................
4,348,644
- -----------
</TABLE>
<TABLE>
<S> <C>
<C>
TOTAL INVESTMENTS (COST $20,387,377*).......................
103.0% 22,573,695
OTHER ASSETS AND LIABILITIES (NET)..........................
(3.0) (663,201)
-----
- -----------
NET ASSETS..................................................
100.0% $21,910,494
=====
===========
</TABLE>
- ------------
* Aggregate cost for federal tax purposes.
+ Non-income producing security.
# Amount represents less than 0.1%.
## Rate represents annualized yield at date of purchase.
Abbreviations:
ADR -- American Depositary Receipt
Ord. -- Ordinary
See Notes to Financial Statements.
33
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE GROWTH STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- 93.1%
FINANCIAL SERVICES -- 9.9%
2,200 AMBAC Inc................................................
$ 103,125
250 Block (H&R) Inc..........................................
10,125
4,900 Countrywide Credit Industries, Inc.......................
106,575
1,400 Fairfax Financial Holdings, Ltd..........................
100,561
10,900 Federal Home Loan Mortgage Corporation...................
910,150
2,400 Federal National Mortgage Association....................
297,900
5,940 First Data Corporation...................................
397,238
1,600 Fund American Enterprises Holdings.......................
119,200
100 PartnerRe Ltd............................................
2,750
800 PMI Group Inc............................................
36,200
2,400 Quick & Reilly Group Inc.................................
49,200
- -----------
2,133,024
- -----------
COMPUTER SERVICE AND SOFTWARE -- 7.6%
2,800 Adobe Systems Inc........................................
173,600
2,300 Automatic Data Processing Inc............................
170,775
2,500 BMC Software, Inc.+......................................
106,875
400 BroadBand Technologies Inc.+.............................
6,500
4,400 Ceridian Corporation+....................................
181,500
4,500 Cirrus Logic Inc.+.......................................
88,875
800 DST Systems Inc.+........................................
22,800
2,500 Electronic Arts Inc.+....................................
65,313
3,000 Getronics Geveke.........................................
140,213
4,300 Intuit Inc.+.............................................
335,400
2,400 Microsoft Corporation+...................................
210,600
3,200 Oracle Corporation+......................................
135,600
- -----------
1,638,051
- -----------
MEDIA AND COMMUNICATIONS -- 7.5%
1,400 Capital Cities/ABC Inc...................................
172,725
3,300 Gaylord Entertainment Company, Class A...................
91,575
1,500 General Instrument Corporation+..........................
35,062
3,100 Readers Digest Association Inc., Class A.................
158,875
1,100 Readers Digest Association Inc., Class B.................
51,975
4,600 Time Warner Inc..........................................
174,225
200 Turner Broadcasting Systems Inc., Class B................
5,200
3,400 United International Holdings Inc., Class A+.............
50,150
1,400 Viacom Inc., Class A+....................................
64,225
2,900 Viacom Inc., Class B, Non-Voting+........................
137,388
1,500 Ver Ned Uitgevers........................................
205,926
61,000 Vodafone Group Ord.......................................
218,833
7,300 Vodafone Group Plc, ADR..................................
257,325
- -----------
1,623,484
- -----------
PHARMACEUTICALS -- 6.4%
8,000 Astra AB, Class B........................................
316,844
14,000 Medeva Plc, ADR..........................................
238,000
3,300 Merck & Company..........................................
216,975
7,100 Mylan Labs Inc...........................................
166,850
4,300 Pfizer Inc...............................................
270,900
3,200 SmithKline Beecham Plc, ADR..............................
177,600
- -----------
1,387,169
- -----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
INSURANCE -- 4.5%
6,400 ACE Ltd.................................................
$ 254,400
500 Citizens Corporation....................................
9,312
900 Foremost Corporation of America.........................
45,675
1,200 Horace Mann Educator....................................
37,500
1,200 Leucadia National Corporation...........................
30,000
1,000 Prudential Reinsurance Holdings.........................
23,375
6,900 UNUM Corporation........................................
379,500
6,200 Zurich Reinsurance Centre Holdings Inc.+................
188,325
- -----------
968,087
- -----------
CONSUMER PRODUCTS -- 4.3%
4,000 American Greetings, Class A.............................
110,500
2,500 Corning Inc.............................................
80,000
2,050 CUC International Inc.+.................................
69,956
4,100 Department 56, Inc.+....................................
157,337
1,800 Eastman Kodak Company...................................
120,600
2,000 First Brands Corporation................................
95,250
1,000 Franklin Quest Company+.................................
19,500
700 Gucci Group NV+.........................................
27,212
3,000 Newell Company..........................................
77,625
800 Philip Morris Companies Inc.............................
72,400
700 Unilever NV, ADR........................................
98,525
- -----------
928,905
- -----------
CONGLOMERATES -- 4.1%
16 Berkshire Hathaway Inc.+................................
513,600
12,000 Kinnevik Investment AB, Class B.........................
374,972
- -----------
888,572
- -----------
BANKING AND FINANCE -- 4.0%
200,000 Banca Fideuram..........................................
231,400
3,000 Deutsche Bank AG Ord....................................
142,197
2,100 NationsBank Corporation.................................
146,212
3,100 Northern Trust Corporation..............................
173,600
5,300 Norwest Corporation.....................................
174,900
- -----------
868,309
- -----------
BUSINESS SERVICES -- 3.6%
15,000 Elsevier NV.............................................
200,037
2,500 Interpublic Group of Companies Inc......................
108,438
1,400 Mutual Risk Management Ltd..............................
64,050
2,100 Olsten Corporation......................................
82,950
1,000 Paychex, Inc............................................
49,875
5,100 Reuters Holdings Plc, Class B, ADR......................
281,138
- -----------
786,488
- -----------
TELECOMMUNICATIONS -- 3.5%
1,000 DSC Communications Corporation+.........................
36,875
7,200 Ericsson (LM) Telephone, Class B, ADR...................
140,400
27,000 Grupo Iusacell S.A. de CV, Series D, ADR+...............
216,000
2,100 Mobile Telecommunications Technologies Corporation+.....
44,888
300 Northern Telecom Ltd....................................
12,900
1,000 Pacific Telesis Group...................................
33,625
2,100 Sprint Corporation......................................
83,738
</TABLE>
See Notes to Financial Statements.
34
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE GROWTH STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- (CONTINUED)
TELECOMMUNICATIONS -- (CONTINUED)
34,500 Telecom Italia Risp....................................
$ 42,244
25,000 Telecom Italia SpA.....................................
38,934
70,000 Telecom Italia Mobile Risp+............................
73,707
25,000 Telecom Italia Mobile SpA+.............................
44,057
- ------------
767,368
- ------------
ELECTRICAL EQUIPMENT -- 3.5%
700 AVX Corporation........................................
18,550
400 Emerson Electric Company...............................
32,700
2,800 Exide Corporation......................................
128,450
8,100 General Electric Company...............................
583,200
- ------------
762,900
- ------------
ENERGY SERVICES -- 3.3%
2,200 BJ Services Company+...................................
63,800
1,500 Camco International Inc................................
42,000
3,500 Halliburton Company....................................
177,188
700 Kirby Corporation+.....................................
11,375
6,000 Schlumberger Ltd.......................................
415,500
- ------------
709,863
- ------------
ELECTRONIC COMPONENTS -- 3.0%
2,000 Altera Corporation+....................................
99,500
1,500 Cisco Systems+.........................................
111,938
1,200 Hewlett-Packard Company................................
100,500
2,000 Linear Technology Corporation..........................
78,500
4,400 Maxim Integrated Products Inc.+........................
169,400
3,100 Xilinx Inc.+...........................................
94,550
- ------------
654,388
- ------------
MEDICAL SUPPLIES -- 3.0%
4,400 Abbott Laboratories....................................
183,700
5,700 Boston Scientific Corporation+.........................
279,300
400 Chiron Corporation+....................................
44,200
3,150 St. Jude Medical Inc.+.................................
135,450
- ------------
642,650
- ------------
MACHINERY -- 2.9%
7,700 Danaher Corporation....................................
244,475
2,500 Hagermeyer+............................................
130,554
2,000 Teleflex Inc...........................................
82,000
3,700 TriMas Corporation.....................................
69,837
2,700 Varity Corporation+....................................
100,237
- ------------
627,103
- ------------
RETAIL -- 2.6%
1,000 AutoZone Inc.+.........................................
28,875
2,150 Baker (J.) Inc.........................................
12,363
3,800 Circuit City Stores Inc................................
104,975
1,000 Corporate Express Inc.+................................
30,125
1,300 Hennes & Mauritz, Series B.............................
72,434
700 Kohl's Corporation+....................................
36,750
5,500 Toys R Us Inc..........................................
119,625
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
1,100 Home Depot Inc.........................................
$ 52,663
1,100 Dayton Hudson Corporation..............................
82,500
1,000 Revco D.S. Inc.+.......................................
28,250
- ------------
568,560
- ------------
ENTERTAINMENT AND LEISURE -- 2.5%
3,200 Boston Chicken Inc.+...................................
102,800
4,600 Disney (Walt) Company..................................
271,400
2,700 McDonald's Corporation.................................
121,838
1,000 Oakley Inc.+...........................................
34,000
- ------------
530,038
- ------------
FOOD AND BEVERAGE -- 2.2%
1,000 LVMH Moet Hennessey Louis Vitton Ord...................
208,121
700 McCormick & Company....................................
16,888
2,500 PepsiCo Inc............................................
139,687
3,500 Sara Lee Corporation...................................
111,562
- ------------
476,258
- ------------
SPECIALTY CHEMICALS -- 2.1%
5,600 Great Lakes Chemical Corporation.......................
403,200
1,200 Sigma-Aldrich Corporation..............................
59,400
- ------------
462,600
- ------------
PETROLEUM -- INTERNATIONAL -- 1.7%
2,600 Royal Dutch Petroleum Company, ADR.....................
366,925
- ------------
AEROSPACE AND DEFENCE -- 1.6%
3,900 AlliedSignal Corporation...............................
185,250
2,000 Boeing Company.........................................
156,750
- ------------
342,000
- ------------
PAPER AND PAPER PRODUCTS -- 1.3%
2,400 Albany International Corporation, Class A..............
43,500
2,964 Kimberly-Clark Corporation.............................
245,271
- ------------
288,771
- ------------
ENGINEERING AND CONSTRUCTION -- 1.0%
32,000 United Engineers (Malaysia) Berhad.....................
204,119
- ------------
METALS AND MINING -- 0.9%
400 Ashanti Goldfields, ADR................................
8,100
2,650 Nucor Corporation......................................
151,381
1,700 Pohang Iron & Steel, ADR...............................
37,187
- ------------
196,668
- ------------
TRANSPORTATION -- 0.8%
30,000 Hutchison Whampoa, Ltd.................................
182,735
- ------------
REAL ESTATE -- 0.8%
1,500 DeBartolo Realty Corporation...........................
19,500
5,200 Starwood Lodging Trust.................................
154,700
- ------------
174,200
- ------------
BIOTECHNOLOGY -- 0.6%
2,500 Genentech Inc.+........................................
132,500
- ------------
COSMETICS -- 0.5%
2,250 International Flavors & Fragrances Inc.................
108,000
- ------------
</TABLE>
See Notes to Financial Statements.
35
<PAGE>
- ------------------------------------------------------------------
- --------------
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE GROWTH STOCK PORTFOLIO
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES
(NOTE 1)
------
- --------
<C> <S>
<C>
COMMON STOCK -- (CONTINUED)
DIVERSIFIED CHEMICALS -- 0.4%
1,600 Hercules, Inc..........................................
$ 90,200
- -----------
HEALTH CARE SERVICES -- 0.4%
3,000 Apria Healthcare Group+................................
84,750
- -----------
TOYS, GAMES AND HOBBIES -- 0.4%
2,500 Hasbro Inc.............................................
77,500
- -----------
SPECIALIZED COMPUTER -- 0.3%
2,600 Silicon Graphics Inc.+.................................
71,500
- -----------
PETROLEUM -- DOMESTIC -- 0.0%#
250 Union Texas Petroleum Holdings Inc.....................
4,844
- -----------
OTHER -- 1.9%
50 Sig Schweiz Ag.........................................
104,510
70,000 Tomkins Plc, ADR.......................................
306,019
- -----------
410,529
- -----------
Total Common Stock
($18,312,440).........................................
20,159,058
- -----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S>
<C>
U.S. GOVERNMENT AGENCY NOTE -- 0.7%
(Cost $149,788)
$150,000 Federal Home Loan Bank (FHLB),
5.650% due 01/10/1996.................................
149,788
- -----------
CORPORATE BOND -- 0.5%
(Cost $135,600)
120,000 Reliance Industries Ltd.,
3.500% due 11/03/1999.................................
121,200
- -----------
COMMERCIAL PAPER -- 8.2%
155,000 Abbott Laboratories,
5.800%## due 01/11/1996...............................
154,750
355,000 Ciesco LP,
5.650%## due 02/09/1996...............................
352,827
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
VALUE
AMOUNT
(NOTE 1)
---------
- --------
<C> <S>
<C>
$515,000 Corporate Asset Funding Company, Inc.,
5.800%## due 01/02/1996...............................
$ 514,917
115,000 Delaware Funding Corporation,
5.750%## due 01/12/1996...............................
114,798
200,000 Hewlett-Packard Corporation,
5.720%## due 01/05/1996...............................
199,873
100,000 Home Depot, Inc.,
5.900%## due 01/05/1996...............................
99,934
335,000 Preferred Receivables Funding Corporation,
5.770%## due 01/11/1996...............................
334,463
- -----------
Total Commercial Paper
(Cost $1,771,562).....................................
1,771,562
- -----------
</TABLE>
<TABLE>
<S> <C>
<C>
TOTAL INVESTMENTS
(COST $20,369,390*).........................................
102.5% 22,201,608
OTHER ASSETS AND LIABILITIES (NET)...........................
(2.5) (550,323)
----
- - -----------
NET ASSETS...................................................
100.0% $21,651,285
===== ===========
</TABLE>
- ------------
* Aggregate cost for federal tax purposes was $20,374,323.
+ Non-income producing security.
# Amount represents less than 0.1%.
## Rate represents annualized yield at date of purchase.
Abbreviations:
ADR -- American Depositary Receipt
Ord. -- Ordinary
See Notes to Financial Statements.
36
<PAGE>
- ------------------------------------------------------------------
- --------------
STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
<TABLE>
<CAPTION>
MANAGED T. ROWE PRICE
QUEST FOR QUEST FOR U.S. T. ROWE PRICE T. ROWE PRICE
MONEY ASSET INTERNATIONAL
VALUE VALUE GOVERNMENT EQUITY GROWTH
MARKET ALLOCATION STOCK
EQUITY SMALL CAP SECURITIES INCOME STOCK
PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ------------- -----
- ------ ----------- ----------- ------------- -------------
<S> <C> <C> <C> <C>
<C> <C> <C> <C>
ASSETS:
Investments, at
value (Note 1)
See accompanying
schedule......... $27,552,970 $197,905,319 $84,537,058
$70,684,400 $52,082,091 $12,223,932 $22,573,695 $22,201,608
Cash.............. 3,300 -- 6,690,340
100,181 217,617 52,036 -- 34,938
Foreign currency
(Cost $947,734,
$53,307 and
$58,410,
respectively).... -- -- 952,157 -
- - -- -- 53,636 58,413
Receivable for
investment
securities sold.. -- 2,020,354 --
431,486 354,122 630,189 -- --
Receivable for
Portfolio shares
sold............. -- 102,619 75,681
90,732 38,106 244,822 152,110 47,285
Unrealized
appreciation on
forward foreign
exchange
contracts........ -- -- 422 -
- - -- -- -- --
Unamortized
organization
costs (Note 5)... 3,438 3,438 3,438
7,311 7,311 14,664 9,710 9,710
Dividends and/or
interest
receivable....... 79,584 731,333 206,362
28,015 48,204 197,833 68,292 25,624
Prepaid expenses.. 7,013 10,153 9,036
766 748 86 263 54
----------- ------------ ----------- -----
- ------ ----------- ----------- ----------- -----------
Total Assets...... 27,646,305 200,773,216 92,474,494
71,342,891 52,748,199 13,363,562 22,857,706 22,377,632
----------- ------------ ----------- -----
- ------ ----------- ----------- ----------- -----------
LIABILITIES:
Payable for
investment
securities
purchased........ -- 1,648,632 --
2,640,870 95,000 625,509 718,752 692,836
Payable for
Portfolio shares
redeemed......... 54,348 4,993 799
4,846 4,123 4,114 513 285
Transfer agent
fees payable..... 94 94 94
94 94 94 94 94
Investment
management fee
payable (Note
2)............... 11,520 126,231 68,630
45,210 34,498 6,595 18,901 22,940
Custodian fees
payable
(Note 2)......... 2,660 8,393 18,990
3,718 4,212 4,718 2,624 3,060
Due to Custodian.. -- 56,464 -- -
- - -- -- 199,182 --
Accrued dividends
payable.......... 87 -- -- -
- - -- -- -- --
Accrued expenses
and other
payables......... 26,429 52,719 34,127
17,719 13,442 4,364 7,146 7,132
----------- ------------ ----------- -----
- ------ ----------- ----------- ----------- -----------
Total
Liabilities...... 95,138 1,897,526 122,640
2,712,457 151,369 645,394 947,212 726,347
----------- ------------ ----------- -----
- ------ ----------- ----------- ----------- -----------
NET ASSETS........ $27,551,167 $198,875,690 $92,351,854
$68,630,434 $52,596,830 $12,718,168 $21,910,494 $21,651,285
=========== ============ ===========
=========== =========== =========== =========== ===========
Investments, at
Identified Cost.. $27,552,970 $161,734,468 $76,420,845
$58,635,063 $49,984,368 $11,901,378 $20,387,377 $20,369,390
=========== ============ ===========
=========== =========== =========== =========== ===========
NET ASSETS CONSIST
OF:
Undistributed net
investment
income........... $ -- $ 3,944,143 $ 685,010 $
773,265 $ 669,355 $ 365,879 $ 286,763 $ 34,311
Accumulated net
realized
gain/(loss) on
investments sold,
forward foreign
exchange
contracts and
foreign currency
transactions..... (215) (9,011,239) (4,439,914)
1,416,509 2,237,657 202,063 123,163 584,849
Net unrealized
appreciation of
investments,
forward foreign
exchange
contracts,
foreign
currencies and
net other
assets........... -- 36,170,851 8,121,655
12,049,327 2,097,723 322,554 2,186,189 1,831,195
Paid-in capital... 27,551,382 167,771,935 87,985,103
54,391,333 47,592,095 11,827,672 19,314,379 19,200,930
----------- ------------ ----------- -----
- ------ ----------- ----------- ----------- -----------
Total Net
Assets......... $27,551,167 $198,875,690 $92,351,854
$68,630,434 $52,596,830 $12,718,168 $21,910,494 $21,651,285
=========== ============ ===========
=========== =========== =========== =========== ===========
NET ASSET VALUE,
offering price
and redemption
price per share
of beneficial
interest
outstanding...... $ 1.00 $ 16.28 $ 12.19 $
14.23 $ 12.22 $ 11.39 $ 13.05 $ 13.72
=========== ============ ===========
=========== =========== =========== =========== ===========
Number of
Portfolio shares
outstanding...... 27,551,382 12,218,921 7,579,140
4,822,570 4,303,847 1,116,377 1,678,722 1,577,707
=========== ============ ===========
=========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
- ------------------------------------------------------------------
- --------------
STATEMENT OF OPERATIONS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
FOR THE YEAR ENDED DECEMBER 31, 1995*
<TABLE>
<CAPTION>
MANAGED T. ROWE PRICE
QUEST FOR
MONEY ASSET INTERNATIONAL
VALUE
MARKET ALLOCATION STOCK
EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO
---------- ----------- -------------
- -----------
<S> <C> <C> <C>
<C>
INVESTMENT INCOME:
Dividends (Net of
foreign witholding
taxes of $0, $0,
$237,234, $1,925,
$0, $0, $2,552, and
$5,442
respectively)....... $ -- $ 1,543,065 $1,601,906
$ 636,939
Interest............. 1,401,697 3,938,183 56,559
562,355
---------- ----------- ----------
- -----------
Total Investment
Income............ 1,401,697 5,481,248 1,658,465
1,199,294
---------- ----------- ----------
- -----------
EXPENSES:
Investment management
fee (Note 2)........ 117,465 1,388,652 759,830
395,205
Custodian fees (Note
2).................. 8,574 50,856 156,560
12,361
Transfer agent fees.. 1,125 1,125 1,125
1,125
Legal and audit
fees................ -- 79,335 30,341
12,448
Amortization of
organization costs
(Note 5)............ 11,421 11,421 11,421
3,134
Trustees' fees and
expenses (Note 2)... 1,303 10,506 4,857
2,854
Other................ -- 17,481 6,470
- --
---------- ----------- ----------
- -----------
Total Expenses..... 139,888 1,559,376 970,604
427,127
---------- ----------- ----------
- -----------
NET INVESTMENT
INCOME.............. 1,261,809 3,921,872 687,861
772,167
---------- ----------- ----------
- -----------
REALIZED AND
UNREALIZED GAIN/
(LOSS) ON
INVESTMENTS (NOTES 1
AND 3):
Net realized
gain/(loss) on:
Securities.......... 18 (4,595,305) (4,333,998)
1,415,732
Forward foreign
exchange
contracts.......... -- -- (330,069)
- --
Foreign currencies.. -- -- 479,096
(39)
---------- ----------- ----------
- -----------
Net realized
gain/(loss) on
investments during
the year............ 18 (4,595,305) (4,184,971)
1,415,693
---------- ----------- ----------
- -----------
Net change in
unrealized
appreciation/(depreciation)
of:
Securities.......... -- 38,153,355 11,935,606
11,560,782
Forward foreign
exchange
contracts.......... -- -- 422
- --
Foreign currencies
and net other
assets............. -- -- (5,843)
(10)
---------- ----------- ----------
- -----------
Net unrealized
appreciation of
investments during
the year............ -- 38,153,355 11,930,185
11,560,772
---------- ----------- ----------
- -----------
Net realized and
unrealized gain on
investments during
the year............ 18 33,558,050 7,745,214
12,976,465
---------- ----------- ----------
- -----------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS..... $1,261,827 $37,479,922 $8,433,075
$13,748,632
========== =========== ==========
===========
<CAPTION>
QUEST FOR U.S. T. ROWE PRICE
T. ROWE PRICE
VALUE GOVERNMENT EQUITY
GROWTH
SMALL CAP SECURITIES INCOME
STOCK
PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO
---------- ---------- -------------
- -------------
<S> <C> <C> <C>
<C>
INVESTMENT INCOME:
Dividends (Net of
foreign witholding
taxes of $0, $0,
$237,234, $1,925,
$0, $0, $2,552, and
$5,442
respectively)....... $ 443,342 $ -- $ 259,644
$ 117,803
Interest............. 589,645 420,332 128,184
66,915
---------- -------- ----------
- ----------
Total Investment
Income............ 1,032,987 420,332 387,828
184,718
---------- -------- ----------
- ----------
EXPENSES:
Investment management
fee (Note 2)........ 339,672 42,531 70,664
75,681
Custodian fees (Note
2).................. 13,979 1,910 17,179
29,762
Transfer agent fees.. 1,125 1,125 1,125
1,125
Legal and audit
fees................ 10,383 1,222 5,193
5,357
Amortization of
organization costs
(Note 5)............ 3,134 4,297 2,404
2,404
Trustees' fees and
expenses (Note 2)... 2,428 429 548
591
Other................ -- 3,454 4,543
4,391
---------- -------- ----------
- ----------
Total Expenses..... 370,721 54,968 101,656
119,311
---------- -------- ----------
- ----------
NET INVESTMENT
INCOME.............. 662,266 365,364 286,172
65,407
---------- -------- ----------
- ----------
REALIZED AND
UNREALIZED GAIN/
(LOSS) ON
INVESTMENTS (NOTES 1
AND 3):
Net realized
gain/(loss) on:
Securities.......... 2,255,743 210,680 123,163
584,849
Forward foreign
exchange
contracts.......... -- -- (1,353)
- --
Foreign currencies.. -- -- (377)
(33,417)
---------- -------- ----------
- ----------
Net realized
gain/(loss) on
investments during
the year............ 2,255,743 210,680 121,433
551,432
---------- -------- ----------
- ----------
Net change in
unrealized
appreciation/(depreciation)
of:
Securities.......... 2,796,456 374,777 2,186,318
1,832,218
Forward foreign
exchange
contracts.......... -- -- --
- --
Foreign currencies
and net other
assets............. -- -- (129)
(1,023)
---------- -------- ----------
- ----------
Net unrealized
appreciation of
investments during
the year............ 2,796,456 374,777 2,186,189
1,831,195
---------- -------- ----------
- ----------
Net realized and
unrealized gain on
investments during
the year............ 5,052,199 585,457 2,307,622
2,382,627
---------- -------- ----------
- ----------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS..... $5,714,465 $950,821 $2,593,794
$2,448,034
========== ======== ==========
==========
</TABLE>
- ------------
* The T. Rowe Price Equity Income Portfolio and the T. Rowe Price
Growth Stock
Portfolio commenced operations on January 3, 1995.
See Notes to Financial Statements.
38
<PAGE>
- ------------------------------------------------------------------
- --------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
YEAR ENDED DECEMBER 31, 1995*
<TABLE>
<CAPTION>
MANAGED T. ROWE PRICE
QUEST FOR
MONEY ASSET INTERNATIONAL
VALUE
MARKET ALLOCATION STOCK
EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO#
PORTFOLIO
----------- ------------ ------------- ---
- --------
<S> <C> <C> <C> <C>
Net investment
income.......... $ 1,261,809 $ 3,921,872 $ 687,861 $
772,167
Net realized
gain/(loss) on
securities,
forward foreign
exchange
contracts and
foreign currency
transactions
during the
year............ 18 (4,595,305) (4,184,971)
1,415,693
Net unrealized
appreciation of
securities,
forward foreign
exchange
contracts,
foreign
currencies and
net other assets
during the
year............ -- 38,153,355 11,930,185
11,560,772
----------- ------------ ----------- ---
- --------
Net increase in
net assets
resulting from
operations...... 1,261,827 37,479,922 8,433,075
13,748,632
Distributions to
shareholders
from net
investment
income.......... (1,263,251) (3,105,304) --
(311,416)
Distributions
from net
realized gains.. -- -- (1,955,766)
(141,867)
Net
increase/(decrease)
in net assets
from Portfolio
share
transactions
(Note 4)........ 6,787,031 (7,948,127) 1,772,335
22,558,607
----------- ------------ ----------- ---
- --------
Net increase in
net assets...... 6,785,607 26,426,491 8,249,644
35,853,956
NET ASSETS:
Beginning of
year............ 20,765,560 172,449,199 84,102,210
32,776,478
----------- ------------ ----------- ---
- --------
End of year...... $27,551,167 $198,875,690 $92,351,854
$68,630,434
=========== ============ ===========
===========
Undistributed net
investment
income.......... $ -- $ 3,944,143 $ 685,010 $
773,265
=========== ============ ===========
===========
<CAPTION>
QUEST FOR U.S. T. ROWE PRICE T.
ROWE PRICE
VALUE GOVERNMENT EQUITY
GROWTH
SMALL CAP SECURITIES INCOME
STOCK
PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO
----------- ----------- ------------- ----
- ---------
<S> <C> <C> <C> <C>
Net investment
income.......... $ 662,266 $ 365,364 $ 286,172 $
65,407
Net realized
gain/(loss) on
securities,
forward foreign
exchange
contracts and
foreign currency
transactions
during the
year............ 2,255,743 210,680 121,433
551,432
Net unrealized
appreciation of
securities,
forward foreign
exchange
contracts,
foreign
currencies and
net other assets
during the
year............ 2,796,456 374,777 2,186,189
1,831,195
----------- ----------- ----------- ---
- --------
Net increase in
net assets
resulting from
operations...... 5,714,465 950,821 2,593,794
2,448,034
Distributions to
shareholders
from net
investment
income.......... (330,888) (51,383) --
- --
Distributions
from net
realized gains.. (596,287) -- --
- --
Net
increase/(decrease)
in net assets
from Portfolio
share
transactions
(Note 4)........ 11,843,218 8,313,442 19,316,700
19,203,251
----------- ----------- ----------- ---
- --------
Net increase in
net assets...... 16,630,508 9,212,880 21,910,494
21,651,285
NET ASSETS:
Beginning of
year............ 35,966,322 3,505,288 --
- --
----------- ----------- ----------- ---
- --------
End of year...... $52,596,830 $12,718,168 $21,910,494
$21,651,285
=========== =========== ===========
===========
Undistributed net
investment
income.......... $ 669,355 $ 365,879 $ 286,763 $
34,311
=========== =========== ===========
===========
</TABLE>
- ------------
* The T. Rowe Price Equity Income Portfolio and the T. Rowe Price
Growth Stock
Portfolio commenced operations on January 3, 1995.
# In 1995, the Portfolio's investment objective changed to one of
an
international basis from one of a global basis. Effective March
24, 1995, the
Portfolio's name changed from Global Growth Portfolio to T. Rowe
Price
International Stock Portfolio.
See Notes to Financial Statements.
39
<PAGE>
- ------------------------------------------------------------------
- --------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
YEAR ENDED DECEMBER 31, 1994*
<TABLE>
<CAPTION>
MANAGED T. ROWE
PRICE
MONEY ASSET
INTERNATIONAL
MARKET ALLOCATION STOCK
PORTFOLIO PORTFOLIO
PORTFOLIO
----------- ------------ ---------
- ----
<S> <C> <C> <C>
Net investment
income/(loss).............. $ 795,081 $ 3,124,705 $
(122,578)
Net realized gain/(loss) on
securities, written
options, futures contracts,
forward foreign exchange
contracts, and foreign
currency transactions
during the year............ (233) (4,159,641)
2,790,348
Net unrealized
appreciation/(depreciation)
of securities, futures
contracts, foreign
currencies and net other
assets during the year..... -- (8,136,219)
(7,874,657)
----------- ------------ --------
- ---
Net increase/(decrease) in
net assets resulting from
operations................. 794,848 (9,171,155)
(5,206,887)
Distributions to
shareholders from net
investment income.......... (793,639) (700,494) --
Distributions from net
realized gain on
investments................ (1,442) -- --
Net increase in net assets
from Portfolio share
transactions (Note 4)...... 7,929,897 85,664,204
36,531,968
----------- ------------ --------
- ---
Net increase in net assets.. 7,929,664 75,792,555
31,325,081
NET ASSETS:
Beginning of year........... 12,835,896 96,656,644
52,777,129
----------- ------------ --------
- ---
End of year................. $20,765,560 $172,449,199
$84,102,210
=========== ============
===========
Undistributed net investment
income..................... $ 1,442 $ 3,115,924 $ --
=========== ============
===========
<CAPTION>
QUEST FOR QUEST FOR U.S.
VALUE VALUE GOVERNMENT
EQUITY SMALL CAP SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------
<S> <C> <C> <C>
Net investment
income/(loss).............. $ 313,618 $ 239,436 $ 51,517
Net realized gain/(loss) on
securities, written
options, futures contracts,
forward foreign exchange
contracts, and foreign
currency transactions
during the year............ 148,025 538,280
(8,236)
Net unrealized
appreciation/(depreciation)
of securities, futures
contracts, foreign
currencies and net other
assets during the year..... 384,020 (1,022,910)
(52,223)
----------- ----------- ----------
Net increase/(decrease) in
net assets resulting from
operations................. 845,663 (245,194)
(8,942)
Distributions to
shareholders from net
investment income.......... (20,569) -- --
Distributions from net
realized gain on
investments................ -- -- --
Net increase in net assets
from Portfolio share
transactions (Note 4)...... 20,773,622 23,512,950 3,514,230
----------- ----------- ----------
Net increase in net assets.. 21,598,716 23,267,756 3,505,288
NET ASSETS:
Beginning of year........... 11,177,762 12,698,566 --
----------- ----------- ----------
End of year................. $32,776,478 $35,966,322 $3,505,288
=========== =========== ==========
Undistributed net investment
income..................... $ 312,553 $ 333,146 $ 51,561
=========== =========== ==========
</TABLE>
- ------------
* The U.S. Government Securities Portfolio commenced operations on
May 13,
1994.
See Notes to Financial Statements.
40
<PAGE>
- ------------------------------------------------------------------
- --------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
MONEY MARKET PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH
YEAR
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
PERIOD
ENDED ENDED ENDED ENDED
ENDED
12/31/95 12/31/94 12/31/93
12/31/92 12/31/91*
-------- -------- -------- -------
- - ---------
<S> <C> <C> <C> <C>
<C>
OPERATING PERFORMANCE:
Net asset value, beginning
of year................... $ 1.00 $ 1.00 $ 1.00 $
1.00 $ 1.00
-------- -------- -------- -------
- - --------
Net investment income#..... 0.0540 0.0337 0.0218
0.0287 0.0377
-------- -------- -------- -------
- - --------
Distributions:
Dividends from net
investment income......... (0.0540) (0.0336) (0.0218)
(0.0287) (0.0377)
Distributions from net
realized gains............ -- (0.0001) -- --
- --
-------- -------- -------- -------
- - --------
Total distributions........ (0.0540) (0.0337) (0.0218)
(0.0287) (0.0377)
-------- -------- -------- -------
- - --------
Net asset value, end of
year...................... $ 1.00 $ 1.00 $ 1.00 $
1.00 $ 1.00
======== ======== ========
======== ========
Total return++............. 5.54% 3.41% 2.19%
2.90% 3.84%
======== ======== ========
======== ========
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in
000's).................... $ 27,551 $ 20,766 $ 12,836 $
4,527 $ 1,907
Ratio of net investment
income to average net
assets.................... 5.37% 3.58% 2.19%
2.84% 5.02%+
Ratio of operating expenses
to average net assets**... 0.60% 0.85% 0.99%
0.91% 0.00%+
</TABLE>
- ------------
* The Portfolio commenced operations on April 8, 1991.
** Annualized operating expense ratios before waiver of fees
and/or
reimbursement of expenses by investment manager for the years
ended December
31, 1993 and December 31, 1992, and the period ended December
31, 1991 were
1.23%, 2.37% and 8.48%, respectively.
+ Annualized.
++ Total return represents aggregate total return for the periods
indicated.
# Net investment income/(loss) before waiver of fees and/or
reimbursement of
expenses by investment manager for the years ended December 31,
1993,
December 31, 1992 and the period ended December 31, 1991 was
$0.0195, $0.0140
and $(0.0259), respectively.
See Notes to Financial Statements.
41
<PAGE>
- ------------------------------------------------------------------
- --------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
MANAGED ASSET ALLOCATION PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH
YEAR
<TABLE>
<CAPTION>
YEAR YEAR YEAR
YEAR
ENDED ENDED ENDED
ENDED
12/31/95 12/31/94+++ 12/31/93+++
12/31/92+++
-------- ----------- ----------- ------
- -----
<S> <C> <C> <C> <C>
Operating performance:
Net asset value,
beginning of year...... $ 13.48 $ 14.30 $ 12.31 $
11.37
-------- -------- ------- ----
- ---
Net investment income#.. 0.33 0.28 0.23
0.24
Net realized and
unrealized gain/ (loss)
on investments......... 2.72 (1.03) 1.84
0.77
-------- -------- ------- ----
- ---
Net increase/ (decrease)
in net assets resulting
from investment
operations............. 3.05 (0.75) 2.07
1.01
Dividends from net
investment income...... (0.25) (0.07) (0.08)
(0.07)
-------- -------- ------- ----
- ---
Net asset value, end of
year................... $ 16.28 $ 13.48 $ 14.30 $
12.31
======== ======== =======
=======
Total return++.......... 22.91% (5.28)% 16.79%
9.01%
======== ======== =======
=======
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL
DATA:
Net assets, end of year
(in 000's)............. $198,876 $172,449 $96,657
$14,055
Ratio of net investment
income to average net
assets................. 2.12% 2.03% 1.71%
2.11%
Ratio of operating
expenses to average net
assets**............... 0.84% 0.90% 1.12%
1.18%
Portfolio turnover
rate................... 93% 67% 67%
50%
<CAPTION>
PERIOD
ENDED
12/31/91*
---------
<S> <C>
Operating performance:
Net asset value,
beginning of year...... $10.00
------
Net investment income#.. 0.10
Net realized and
unrealized gain/ (loss)
on investments......... 1.27
------
Net increase/ (decrease)
in net assets resulting
from investment
operations............. 1.37
Dividends from net
investment income...... --
------
Net asset value, end of
year................... $11.37
======
Total return++.......... 13.70%
======
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL
DATA:
Net assets, end of year
(in 000's)............. $4,247
Ratio of net investment
income to average net
assets................. 4.54%+
Ratio of operating
expenses to average net
assets**............... 0.00%+
Portfolio turnover
rate................... 61%
</TABLE>
- ------------
* The Portfolio commenced operations on April 8, 1991.
** Annualized operating expense ratios before waiver of fees
and/or
reimbursement of expenses by investment manager for the year
ended December
31, 1992 and the period ended December 31, 1991 were 1.73% and
5.18%,
respectively.
+ Annualized.
++ Total return represents aggregate total return for the periods
indicated.
+++ Per share amounts have been calculated using the monthly
average share
method which more appropriately presents the per share data
for the period
since use of the undistributed method did not accord with
results of
operations.
# Net investment income/(loss) before waiver of fees and/or
reimbursement of
expenses by investment manager for the year ended December 31,
1992 and the
period ended December 31, 1991 was $0.18 and $(0.01),
respectively.
See Notes to Financial Statements.
42
<PAGE>
- ------------------------------------------------------------------
- --------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH
YEAR
<TABLE>
<CAPTION>
YEAR YEAR YEAR
YEAR
ENDED ENDED ENDED
ENDED
12/31/95## 12/31/94 12/31/93+++
12/31/92+++
---------- -------- ----------- ------
- -----
<S> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value,
beginning of year...... $ 11.31 $ 11.99 $ 10.12
$10.52
------- ------- ------- ----
- --
Net investment
income/(loss)#......... 0.09 (0.02) (0.04)
0.00***
Net realized and
unrealized gain/(loss)
on investments......... 1.06 (0.66) 1.91
(0.38)
------- ------- ------- ----
- --
Net increase/(decrease)
in net assets resulting
from investment
operations............. 1.15 (0.68) 1.87
(0.38)
------- ------- ------- ----
- --
Distributions:
Dividends from net
investment income...... -- -- --
(0.02)
Distributions from net
realized gains......... (0.27) -- -- --
------- ------- ------- ----
- --
Total distributions..... (0.27) -- --
(0.02)
------- ------- ------- ----
- --
Net asset value, end of
year................... $ 12.19 $ 11.31 $ 11.99
$10.12
======= ======= =======
======
Total return++.......... 10.37% (5.67)% 18.48%
(3.61)%
======= ======= =======
======
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL
DATA:
Net assets, end of year
(in 000's)............. $92,352 $84,102 $52,777
$6,305
Ratio of net investment
income/(loss) to
average net assets..... 0.81% (0.16)% (0.31)%
0.01%
Ratio of operating
expenses to average net
assets**............... 1.15% 1.16% 1.52%
1.43%
Portfolio turnover
rate................... 111% 88% 37%
34%
<CAPTION>
PERIOD
ENDED
12/31/91*
---------
<S> <C>
OPERATING PERFORMANCE:
Net asset value,
beginning of year...... $10.00
------
Net investment
income/(loss)#......... 0.06
Net realized and
unrealized gain/(loss)
on investments......... 0.46
------
Net increase/(decrease)
in net assets resulting
from investment
operations............. 0.52
------
Distributions:
Dividends from net
investment income...... --
Distributions from net
realized gains......... --
------
Total distributions..... --
------
Net asset value, end of
year................... $10.52
======
Total return++.......... 5.20%
======
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL
DATA:
Net assets, end of year
(in 000's)............. $3,200
Ratio of net investment
income/(loss) to
average net assets..... 3.18%+
Ratio of operating
expenses to average net
assets**............... 0.00%+
Portfolio turnover
rate................... 0%
</TABLE>
- ------------
* Effective March 24, 1995, the name of the Global Growth
Portfolio was changed
to T. Rowe Price International Stock Portfolio, and the
investment objective
was changed from investment on a global basis to investment on
an
international basis (i.e., in non-U.S. companies). The Portfolio
commenced
operations on April 8, 1991.
** Annualized operating expense ratios before waiver of fees
and/or
reimbursement of expenses by investment manager for the year
ended December
31, 1992 and the period ended December 31, 1991 were 2.10% and
6.83%,
respectively.
*** Amount represents less than $0.01 per share.
+ Annualized.
++ Total return represents aggregate total return for the periods
indicated.
+++ Per share amounts have been calculated using the monthly
average share
method which more appropriately presents the per share data
for the period
since use of the undistributed method did not accord with
results of
operations.
# Net investment loss before waiver of fees and/or reimbursement
of expenses by
investment manager for the year ended December 31, 1992 and the
period ended
December 31, 1991 was $(0.07) and $(0.07), respectively.
## Rowe Price-Fleming International, Inc. became the Portfolio's
Adviser
effective January 3, 1995.
See Notes to Financial Statements.
43
<PAGE>
- ------------------------------------------------------------------
- --------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
QUEST FOR VALUE EQUITY PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH
YEAR
<TABLE>
<CAPTION>
YEAR YEAR
PERIOD
ENDED ENDED
ENDED
12/31/95 12/31/94
12/31/93*+++
-------- --------
- ------------
<S> <C> <C>
<C>
OPERATING PERFORMANCE:
Net asset value, beginning of year........... $ 10.69 $ 10.28
$ 10.00
------- -------
- -------
Net investment income#....................... 0.15 0.09
0.05
Net realized and unrealized gain on
investments................................. 3.52 0.33
0.23
------- -------
- -------
Net increase in net assets resulting from
investment operations....................... 3.67 0.42
0.28
------- -------
- -------
Distributions:
Dividends from net investment income......... (0.09) (0.01)
- --
Distributions from net realized gains........ (0.04) --
- --
------- -------
- -------
Total distributions.......................... (0.13) (0.01)
- --
------- -------
- -------
Net asset value, end of year................. $ 14.23 $ 10.69
$ 10.28
======= =======
=======
Total return++............................... 34.59% 4.09%
2.80%
======= =======
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA:
Net assets, end of year (in 000's)........... $68,630 $32,776
$11,178
Ratio of net investment income to average net
assets...................................... 1.56% 1.31%
0.84%+
Ratio of operating expenses to average net
assets**.................................... 0.86% 1.02%
1.30%+
Portfolio turnover rate...................... 28% 56%
1%
</TABLE>
- ------------
* The Portfolio commenced operations on May 27, 1993.
** Annualized operating expense ratio before waiver of fees by
investment
manager for the period ended December 31, 1993 was 2.10%.
+ Annualized.
++ Total return represents aggregate total return for the periods
indicated.
+++ Per share amounts have been calculated using the monthly
average share
method which more appropriately presents the per share data
for the period
since use of the undistributed method did not accord with
results of
operations.
# Net investment income before waiver of fees by investment
manager for the
period ended December 31, 1993 was $0.00.
See Notes to Financial Statements.
44
<PAGE>
- ------------------------------------------------------------------
- --------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
QUEST FOR VALUE SMALL CAP PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH
YEAR
<TABLE>
<CAPTION>
YEAR YEAR
PERIOD
ENDED ENDED
ENDED
12/31/95 12/31/94+++
12/31/93*+++
-------- -----------
- ------------
<S> <C> <C>
<C>
OPERATING PERFORMANCE:
Net asset value, beginning of year......... $ 10.98 $ 11.18
$ 10.00
------- -------
- -------
Net investment income#..................... 0.15 0.10
0.22
Net realized and unrealized gain/(loss) on
investments............................... 1.36 (0.30)
0.96
------- -------
- -------
Net increase/(decrease) in net assets
resulting from investment operations...... 1.51 (0.20)
1.18
------- -------
- -------
Distributions:
Dividends from net investment income....... (0.10) --
- --
Distributions from net realized gains...... (0.17) --
- --
------- -------
- -------
Total distributions........................ (0.27) --
- --
------- -------
- -------
Net asset value, end of year............... $ 12.22 $ 10.98
$ 11.18
======= =======
=======
Total return++............................. 14.05% (1.79)%
11.80%
======= =======
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA:
Net assets, end of year (in 000's)......... $52,597 $35,966
$12,699
Ratio of net investment income to average
net assets................................ 1.56% 0.89%
3.98%+
Ratio of operating expenses to average net
assets**.................................. 0.87% 1.03%
1.30%+
Portfolio turnover rate.................... 75% 77%
41%
</TABLE>
- ------------
* The Portfolio commenced operations on May 4, 1993.
** Annualized operating expense ratio before waiver of fees by
investment
manager for the period ended December 31, 1993 was 2.10%.
+ Annualized.
++ Total return represents aggregate total return for the periods
indicated.
+++ Per share amounts have been calculated using the monthly
average share
method which more appropriately presents the per share data
for the period
since use of the undistributed method did not accord with
results of
operations.
# Net investment income before waiver of fees by investment
manager for the
period ended December 31, 1993 was $0.18.
See Notes to Financial Statements.
45
<PAGE>
- ------------------------------------------------------------------
- --------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
U.S. GOVERNMENT SECURITIES PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH
YEAR
<TABLE>
<CAPTION>
YEAR
PERIOD
ENDED
ENDED
12/31/95
12/31/94*+++
--------
- ------------
<S> <C>
<C>
OPERATING PERFORMANCE:
Net asset value, beginning of year..................... $ 9.96
$10.00
-------
- ------
Net investment income#................................. 0.30
0.24
Net realized and unrealized gain/(loss) on
investments........................................... 1.25
(0.28)
-------
- ------
Net increase/(decrease) in net assets resulting from
investment operations................................. 1.55
(0.04)
-------
- ------
Dividends from net investment income................... (0.12)
- --
-------
- ------
Net asset value, end of year........................... $ 11.39
$ 9.96
=======
======
Total return++......................................... 15.64%
(0.40)%
=======
======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000's)..................... $12,718
$3,505
Ratio of net investment income to average net assets... 5.58%
4.14%+
Ratio of operating expenses to average net assets**.... 0.84%
0.78%+
Portfolio turnover rate................................ 161%
100%
</TABLE>
- ------------
* The Portfolio commenced operations on May 13, 1994.
** Annualized operating expense ratio before waiver of fees and
reimbursement
of expenses by investment manager for the period ended December
31, 1994 was
1.83%.
+ Annualized.
++ Total return represents aggregate total return for the periods
indicated.
+++ Per share amounts have been calculated using the monthly
average share
method which more appropriately presents the per share data
for the period
since use of the undistributed method did not accord with
results of
operations.
# Net investment income before fees waived and reimbursement of
expenses by
investment manager for the period ended December 31, 1994 was
$0.18.
See Notes to Financial Statements.
46
<PAGE>
- ------------------------------------------------------------------
- --------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE EQUITY INCOME PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT THE YEAR
<TABLE>
<CAPTION>
YEAR
ENDED
12/31/95*+++
- ------------
<S>
<C>
OPERATING PERFORMANCE:
Net asset value, beginning of year................................
$ 10.00
- -------
Net investment income.............................................
0.34
Net realized and unrealized gain on investments...................
2.71
- -------
Net increase in net assets resulting from investment operations...
3.05
- -------
Net asset value, end of year......................................
$ 13.05
=======
Total return++....................................................
30.50%
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000's)................................
$21,910
Ratio of net investment income to average net assets..............
3.24%+
Ratio of operating expenses to average net assets.................
1.15%+
Portfolio turnover rate...........................................
16%
</TABLE>
- ------------
* The Portfolio commenced operations on January 3, 1995.
+ Annualized
++ Total return represents aggregate total return for the period
indicated.
+++ Per share amounts have been calculated using the monthly
average share
method which more appropriately presents the per share data
for the period
since use of the undistributed method did not accord with
results of
operations.
See Notes to Financial Statements.
47
<PAGE>
- ------------------------------------------------------------------
- --------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
T. ROWE PRICE GROWTH STOCK PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT THE YEAR
<TABLE>
<CAPTION>
YEAR
ENDED
12/31/95*+++
- ------------
<S>
<C>
OPERATING PERFORMANCE:
Net asset value, beginning of year................................
$ 10.00
- -------
Net investment income.............................................
0.08
Net realized and unrealized gain on investments...................
3.64
- -------
Net increase in net assets resulting from investment operations...
3.72
- -------
Net asset value, end of year......................................
$ 13.72
=======
Total return++....................................................
37.20%
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000's)................................
$21,651
Ratio of net investment income to average net assets..............
0.69%+
Ratio of operating expenses to average net assets.................
1.26%+
Portfolio turnover rate...........................................
64%
</TABLE>
- ------------
* The Portfolio commenced operations on January 3, 1995.
+ Annualized.
++ Total return represents aggregate total return for the period
indicated.
+++ Per share amounts have been calculated using the monthly
average share
method which more appropriately presents the per share data
for the period
since use of the undistributed method did not accord with
results of
operations.
See Notes to Financial Statements.
48
<PAGE>
- ------------------------------------------------------------------
- --------------
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES
Endeavor Series Trust (the "Fund") was organized as a
"Massachusetts business
trust" on November 19, 1988 under the laws of the Commonwealth of
Massachusetts. The Fund is registered with the Securities and
Exchange
Commission under the Investment Company Act of 1940, as amended,
as a
diversified, open-end management investment company. The Fund
offers eight
managed investment portfolios: Money Market Portfolio, Managed
Asset Allocation
Portfolio, T. Rowe Price International Stock Portfolio (formerly
Global Growth
Portfolio), Quest for Value Equity Portfolio, Quest for Value
Small Cap
Portfolio, U.S. Government Securities Portfolio, T. Rowe Price
Equity Income
Portfolio and T. Rowe Price Growth Stock Portfolio (each a
"Portfolio" and
collectively the "Portfolios"). The following is a summary of
significant
accounting policies consistently followed by the Portfolios in the
preparation
of their financial statements. The preparation of financial
statements in
accordance with Generally Accepted Accounting Principles requires
management to
make estimates and assumptions that affect the reported amounts
and disclosures
in the financial statements. Actual results could differ from
those estimates.
PORTFOLIO VALUATION:
MONEY MARKET PORTFOLIO: The Money Market Portfolio's investments
are valued on
the basis of amortized cost under the guidance of the Board of
Trustees, based
on their determination that this constitutes fair value. Amortized
cost
involves valuing a portfolio instrument at its cost initially and,
thereafter,
assuming a constant amortization to maturity of any discount or
premium,
regardless of the impact of fluctuating interest rates on the
market value of
the instrument.
MANAGED ASSET ALLOCATION PORTFOLIO, T. ROWE PRICE INTERNATIONAL
STOCK
PORTFOLIO, QUEST FOR VALUE EQUITY PORTFOLIO, QUEST FOR VALUE SMALL
CAP
PORTFOLIO, U.S. GOVERNMENT SECURITIES PORTFOLIO, T. ROWE PRICE
EQUITY INCOME
PORTFOLIO AND T. ROWE PRICE GROWTH STOCK PORTFOLIO:
Generally, a Portfolio's investments are valued at market value
or, in the
absence of market value with respect to any portfolio securities,
at fair value
as determined by, or under the direction of, the Board of
Trustees. Portfolio
securities for which the primary market is on a domestic or
foreign exchange,
or which are traded over-the-counter and quoted on the NASDAQ
System, are
valued at the last sale price on the day of valuation or, if there
was no sale
that day, at the last reported bid price using prices as of the
close of
trading. Portfolio securities not quoted on the NASDAQ System that
are actively
traded in the over-the-counter market, including listed securities
for which
the primary market is believed to be over-the-counter, are valued
at the most
recently quoted bid price provided by the principal market makers.
In the case
of any securities which are not actively traded, these investments
are stated
at fair value as determined under the direction of the Board of
Trustees.
Short-term investments that mature in 60 days or less are valued
at amortized
cost which approximates market value.
Foreign securities traded outside the United States are generally
valued as of
the time their trading is complete, which is usually different
from the close
of the New York Stock Exchange. Occasionally, events affecting the
value of
such securities may occur between such times and the close of the
New York
Stock Exchange that will not be reflected in the computation of
the Portfolios'
net asset value. If events materially affecting the value of such
securities
occur during such period, these securities will be valued at their
fair value
according to procedures decided upon in good faith by the Fund's
Board of
Trustees. All securities and other assets of the Portfolios
initially expressed
in foreign currencies will be converted to U.S. dollar values at
the mean of
the bid and offer prices of such currencies against U.S. dollars
last quoted on
a valuation date by any recognized dealer.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are recorded as of the trade date.
Realized gains and
losses from securities transactions are recorded on the identified
cost basis.
Dividend income is recorded on the ex-dividend date except that
certain
dividends from foreign securities are recorded as soon as a
Portfolio is
informed of the ex-dividend date. Interest income is recorded on
the accrual
basis.
Securities purchased or sold on a when-issued or delayed-delivery
basis may be
settled a month or more after the trade date. Interest income is
not accrued
until settlement date.
FORWARD FOREIGN CURRENCY CONTRACTS:
The T. Rowe Price International Stock Portfolio, the U.S.
Government Securities
Portfolio, the T. Rowe Price Equity Income Portfolio and T. Rowe
Price Growth
Stock Portfolio may engage in forward foreign currency exchange
contracts. Each
Portfolio engages in foreign currency exchange transactions to
protect against
changes in future exchange rates. Forward foreign currency
49
<PAGE>
- ------------------------------------------------------------------
- --------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
exchange contracts are valued at the forward rate and are marked-
to-market
daily. The change in market value is recorded by each Portfolio as
an
unrealized gain or loss. When the contract is closed, each
Portfolio records 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 exchange contracts does not
eliminate
fluctuations in the underlying prices of a Portfolio's securities,
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 hedged currency, they also limit any potential
gain that might
result should the value of the currency increase. In addition,
each Portfolio
could be exposed to risks if the counterparties to the contracts
are unable to
meet the terms of their contracts.
FOREIGN CURRENCY:
The books and records of the Portfolios are maintained in U.S.
dollars. Foreign
currencies, investments and other assets and liabilities are
translated into
U.S. dollars at the exchange rates prevailing at the end of the
period.
Purchases and sales of investment securities, and items of income
and expense
are translated on the respective dates of such transactions.
Unrealized gains
and losses which result from changes in foreign currency exchange
rates have
been included in the unrealized appreciation/(depreciation) of
investments and
net other assets. Net realized foreign currency gains and losses
include the
effect of changes in exchange rates between trade date and
settlement date on
investment security transactions, foreign currency transactions
and interest
and dividends received. The portion of foreign currency gains and
losses
related to fluctuation in exchange rates between the initial
purchase trade
date and subsequent sale trade date is included in realized gains
and losses on
investment securities sold.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income of the Money Market Portfolio
are declared
daily and paid monthly. Dividends from net investment income of
the Managed
Asset Allocation Portfolio, T. Rowe Price International Stock
Portfolio, Quest
for Value Equity Portfolio, Quest for Value Small Cap Portfolio,
U.S.
Government Securities Portfolio, T. Rowe Price Equity Income
Portfolio and T.
Rowe Price Growth Stock Portfolio are declared and paid at least
annually. For
all Portfolios, all net realized long-term or short-term capital
gains, if any,
will be declared and distributed at least annually.
Income dividends and capital gain distributions are determined in
accordance
with income tax regulations which may differ from generally
accepted accounting
principles. These differences are primarily due to differing
treatments of
income, gains and losses on various investment securities held by
a Portfolio,
timing differences in the recognition of income, gains and losses
and differing
characterizations of distributions made by the Fund.
Permanent differences incurred during the year ended December 31,
1995
resulting from differences in book and tax accounting have been
reclassified at
year end to undistributed net investment income and paid-in
capital as follows:
<TABLE>
<CAPTION>
INCREASE/(DECREASE)
INCREASE/(DECREASE)
DECREASE UNDISTRIBUTED NET
ACCUMULATED
PAID-IN CAPITAL INVESTMENT INCOME
REALIZED GAIN/LOSS
--------------- ------------------- -----
- --------------
<S> <C> <C> <C>
Managed Asset Allocation
Portfolio.............. -- $ 11,651
$(11,651)
T. Rowe Price
International Stock
Portfolio.............. -- (2,851)
2,851
Quest for Value Equity
Portfolio.............. -- (39)
39
Quest for Value Small
Cap Portfolio.......... $(4,831) 4,831
- --
U.S. Government
Securities Portfolio... -- 337
(337)
T. Rowe Price Equity
Income Portfolio....... (2,321) 591
1,730
T. Rowe Price Growth
Stock Portfolio........ (2,321) (31,096)
33,417
</TABLE>
FEDERAL INCOME TAXES:
The Fund intends that each Portfolio separately qualify annually
as a regulated
investment company, if such qualification is in the best interest
of its
shareholders, by complying with the requirements of the Internal
Revenue Code
of 1986, as amended, applicable to regulated investment companies
and by
distributing substantially all of its taxable income to its
shareholders.
Therefore, no federal income tax provision is required.
2. INVESTMENT MANAGEMENT FEE, ADMINISTRATIVE FEE, INVESTMENT
ADVISORY FEE AND
OTHER RELATED PARTY TRANSACTIONS
The Fund is managed by Endeavor Investment Advisers (the
"Investment Manager")
pursuant to a management agreement. The Investment Manager is a
general
partnership of which Endeavor Management Co. is the managing
partner. The
50
<PAGE>
- ------------------------------------------------------------------
- --------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
Investment Manager is responsible for providing investment
management and
administrative services to the Fund, including selecting the
investment
advisers (the "Advisers") for the Fund's Portfolios. As
compensation for these
services, the Fund pays the Investment Manager a monthly fee based
on a
percentage of the average daily net assets of each Portfolio at
the following
annual rates: Money Market Portfolio--.50%; Managed Asset
Allocation
Portfolio--.75%; T. Rowe Price International Stock Portfolio--
.90%; Quest for
Value Equity Portfolio--.80%; Quest for Value Small Cap Portfolio-
- -.80%; U.S.
Government Securities Portfolio--.65%, T. Rowe Price Equity Income
Portfolio--
.80% and T. Rowe Price Growth Stock Portfolio--.80%.
From the investment management fees, the Investment Manager pays
the expenses
of providing investment advisory services to the Portfolios,
including the fees
of the Adviser of each Portfolio. The Investment Manager also pays
the fees and
expenses of First Data Investor Services Group, Inc. ("FDISG"),
formerly The
Shareholder Services Group, Inc., the Fund's Administrator. FDISG
assists the
Investment Manager in the performance of its administrative
responsibilities to
the Fund. As compensation for these services, the Investment
Manager pays FDISG
a fee computed and payable monthly at an annual rate of .15% of
each
Portfolio's average daily net assets, but not less than an
aggregate $320,000
per annum.
TCW Funds Management, Inc. ("TCW"), a wholly-owned subsidiary of
The TCW Group,
Inc., serves as the Adviser to the Money Market Portfolio and the
Managed Asset
Allocation Portfolio pursuant to separate investment advisory
agreements
between the Investment Manager and TCW. As compensation for its
services as
investment adviser, the Investment Manager pays TCW a monthly fee
based on a
percentage of the average daily net assets of each Portfolio at
the following
annual rates: Money Market Portfolio--.25% and Managed Asset
Allocation
Portfolio--.375%, subject to reduction in certain circumstances.
Rowe Price-Fleming International, Inc. ("Price-Fleming"), a joint
venture
wholly-owned by T. Rowe Price Associates, Inc. ("T. Rowe Price")
and Robert
Fleming Holdings Limited, serves as the Adviser to the T. Rowe
Price
International Stock Portfolio. As compensation for its services as
investment
adviser, the Investment Manager pays Price-Fleming a monthly fee
at the annual
rate of .75% of the average daily net assets of the Portfolio up
to $20
million, .60% of the average daily net assets of the Portfolio in
excess of $20
million up to $50 million and .50% of the average daily net assets
of the
Portfolio in excess of $50 million. At such time as the average
daily net
assets of the Portfolio exceed $200 million, the fee shall be .50%
of total
average daily net assets.
OpCap Advisers ("OpCap") (formerly, Quest for Value Advisors), a
subsidiary of
Oppenheimer Capital, serves as the Adviser to the Quest for Value
Equity
Portfolio and the Quest for Value Small Cap Portfolio pursuant to
separate
investment advisory agreements between the Investment Manager and
OpCap. As
compensation for its services as investment adviser, the
Investment Manager
pays OpCap a monthly fee at the annual rate of .40% of the average
daily net
assets of each Portfolio.
The Boston Company Asset Management, Inc. ("Boston Company"), a
wholly-owned
subsidiary of The Boston Company, Inc., which is an indirect
wholly-owned
subsidiary of Mellon Bank Corporation ("Mellon"), serves as the
Adviser to the
U.S. Government Securities Portfolio. As compensation for its
services as
investment adviser, the Investment Manager pays Boston Company a
monthly fee at
the annual rate of .15% of the average daily net assets of the
Portfolio.
T. Rowe Price serves as the Adviser to the T. Rowe Price Equity
Income
Portfolio and to the T. Rowe Price Growth Stock Portfolio. As
compensation for
its services as investment adviser, the Investment Manager pays T.
Rowe Price a
monthly fee at the annual rate of .40% of the average daily net
assets of each
Portfolio.
From time to time the Investment Manager may waive a portion or
all of the fees
otherwise payable to it and/or reimburse expenses. The Investment
Manager has
voluntarily undertaken to waive its fees and has agreed to bear
certain
expenses so that total expenses do not exceed the following
percentages of the
respective Portfolio's average daily net assets: Money Market
Portfolio--.99%,
Managed Asset Allocation Portfolio--1.25%, T. Rowe Price
International Stock
Portfolio--1.53%, Quest for Value Equity Portfolio--1.30%, Quest
for Value
Small Cap Portfolio--1.30%, U.S. Government Securities Portfolio--
1.00%, T.
Rowe Price Equity Income Portfolio--1.30% and T. Rowe Price Growth
Stock
Portfolio--1.30%. For the year ended December 31, 1995, the
Investment Manager
did not waive any fees.
Boston Safe Deposit and Trust Company, an indirect wholly-owned
subsidiary of
Mellon, serves as the Fund's custodian. FDISG serves as the Fund's
transfer
agent.
For the year ended December 31, 1995, the Fund incurred total
brokerage
commissions of $800,235, of which $68,807 was paid to Oppenheimer
& Company,
Inc., $28,875 was paid to Jardine Fleming Group Ltd., $15,101 was
paid to Ord
Minnett Securities, Ltd., Australia, $536 was paid to Boston Safe
Deposit and
Trust Company and $5,991 was paid to Robert Fleming Holdings Ltd.,
brokers
affiliated with certain of the Fund's Advisers.
No director, officer or employee of the Investment Manager,
Endeavor Management
Co., the Advisers or FDISG received any compensation from the Fund
for serving
as an officer or Trustee of the Fund. The Fund pays each Trustee
who is not a
51
<PAGE>
- ------------------------------------------------------------------
- --------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
director, officer or employee of the Investment Manager, Endeavor
Management
Co., the Advisers, FDISG or any of their affiliates $2,500 per
annum plus $500
per regularly scheduled meeting attended and reimburses them for
travel and
out-of-pocket expenses.
3. PURCHASES AND SALES OF SECURITIES
Purchases and proceeds from sales of securities, excluding short-
term
investments, for the year ended December 31, 1995 were as follows:
<TABLE>
<CAPTION>
PURCHASES
-------------------------
- --
U.S. GOVERNMENT OTHER
--------------- ---------
- --
<S> <C> <C>
Managed Asset Allocation Portfolio...... $103,934,758
$62,889,670
T. Rowe Price International Stock
Portfolio.............................. --
89,501,031
Quest for Value Equity Portfolio........ 1,230,732
26,399,536
Quest for Value Small Cap Portfolio..... --
25,811,548
U.S. Government Securities Portfolio.... 15,303,665
2,742,575
T. Rowe Price Equity Income Portfolio... 614,710
16,396,965
T. Rowe Price Growth Stock Portfolio... 1,215,253
22,205,962
<CAPTION>
SALES
-------------------------
- --
U.S. GOVERNMENT OTHER
--------------- ---------
- --
<S> <C> <C>
Managed Asset Allocation Portfolio...... $109,380,477
$60,940,640
T. Rowe Price International Stock
Portfolio.............................. --
86,396,139
Quest for Value Equity Portfolio........ --
11,365,697
Quest for Value Small Cap Portfolio..... --
24,389,746
U.S. Government Securities Portfolio.... 8,807,780
679,901
T. Rowe Price Equity Income Portfolio... --
1,195,805
T. Rowe Price Growth Stock Portfolio... 285,218
5,267,478
</TABLE>
At December 31, 1995, aggregate gross unrealized appreciation for
all
securities in which there was an excess of value over tax cost and
aggregate
gross unrealized depreciation for all securities in which there
was an excess
of tax cost over value were as follows:
<TABLE>
<CAPTION>
TAX BASIS
TAX BASIS
UNREALIZED
UNREALIZED
APPRECIATION
DEPRECIATION
------------ -
- -----------
<S> <C>
<C>
Managed Asset Allocation Portfolio................ $38,341,749
$2,175,056
T. Rowe Price International Stock Portfolio....... 10,578,591
2,613,757
Quest for Value Equity Portfolio.................. 12,798,173
748,836
Quest for Value Small Cap Portfolio............... 4,474,041
2,395,354
U.S. Government Securities Portfolio.............. 323,261
769
T. Rowe Price Equity Income Portfolio............. 2,233,342
47,024
T. Rowe Price Growth Stock Portfolio.............. 2,222,684
395,399
<CAPTION>
TAX BASIS
NET UNREALIZED
APPRECIATION
--------------
<S> <C>
Managed Asset Allocation Portfolio................ $36,166,693
T. Rowe Price International Stock Portfolio....... 7,964,834
Quest for Value Equity Portfolio.................. 12,049,337
Quest for Value Small Cap Portfolio............... 2,078,687
U.S. Government Securities Portfolio.............. 322,492
T. Rowe Price Equity Income Portfolio............. 2,186,318
T. Rowe Price Growth Stock Portfolio.............. 1,827,285
</TABLE>
4. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of shares of
beneficial interest
without par value of one or more series. Shares of the Fund are
presently
divided into eight series of shares, each series representing one
of the Fund's
eight Portfolios. Since the Money Market Portfolio has sold
shares, issued
shares as reinvestment of dividends and redeemed shares only at a
constant net
asset value of $1.00 per share, the number of shares represented
by such sales,
reinvestments and redemptions is the same as the amounts shown
below for such
transactions. Changes in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED
YEAR ENDED
12/31/95
12/31/94
------------
- ------------
SHARES
SHARES
AND
AND
AMOUNT
AMOUNT
------------
- ------------
<S> <C>
<C>
MONEY MARKET PORTFOLIO:
Sold.......................................... $ 30,419,863
$ 45,203,115
Issued as reinvestment of dividends........... 1,263,109
795,101
Redeemed...................................... (24,895,941)
(38,068,319)
------------
- ------------
Net increase.................................. $ 6,787,031
$ 7,929,897
============
============
</TABLE>
52
<PAGE>
- ------------------------------------------------------------------
- --------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
<TABLE>
<CAPTION>
YEAR
ENDED
12/31/95
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
MANAGED ASSET ALLOCATION PORTFOLIO:
Sold............................................ 1,296,208 $
19,290,512
Issued as reinvestment of dividends............. 217,458
3,105,304
Redeemed........................................ (2,086,757)
(30,343,943)
---------- -
- -----------
Net increase/(decrease)......................... (573,091) $
(7,948,127)
==========
============
<CAPTION>
YEAR
ENDED
12/31/94
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
MANAGED ASSET ALLOCATION PORTFOLIO:
Sold............................................ 7,481,433
$105,519,649
Issued as reinvestment of dividends............. 51,507
700,494
Redeemed........................................ (1,501,444)
(20,555,939)
---------- -
- -----------
Net increase/(decrease)......................... 6,031,496 $
85,664,204
==========
============
<CAPTION>
YEAR
ENDED
12/31/95
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO:
Sold............................................ 1,370,945 $
15,673,385
Issued as reinvestment of dividends............ 172,314
1,955,766
Redeemed........................................ (1,403,454)
(15,856,816)
---------- -
- -----------
Net increase.................................... 139,805 $
1,772,335
==========
============
<CAPTION>
YEAR
ENDED
12/31/94
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
T. ROWE PRICE INTERNATIONAL STOCK PORTFOLIO:
Sold............................................ 3,863,597 $
46,291,043
Issued as reinvestment of dividends............ --
- --
Redeemed........................................ (825,338)
(9,759,075)
---------- -
- -----------
Net increase.................................... 3,038,259 $
36,531,968
==========
============
<CAPTION>
YEAR
ENDED
12/31/94
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
QUEST FOR VALUE EQUITY PORTFOLIO:
Sold............................................ 2,222,471 $
28,332,580
Issued as reinvestment of dividends............. 38,284
453,284
Redeemed........................................ (504,238)
(6,227,257)
---------- -
- -----------
Net increase.................................... 1,756,517 $
22,558,607
==========
============
<CAPTION>
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
QUEST FOR VALUE EQUITY PORTFOLIO:
Sold............................................ 2,263,679 $
23,775,158
Issued as reinvestment of dividends............. 1,968
20,569
Redeemed........................................ (286,695)
(3,022,105)
---------- -
- -----------
Net increase.................................... 1,978,952 $
20,773,622
==========
============
<CAPTION>
YEAR
ENDED
12/31/95
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
QUEST FOR VALUE SMALL CAP PORTFOLIO:
Sold............................................ 1,595,481 $
18,222,669
Issued as reinvestment of dividends............. 85,375
927,175
Redeemed........................................ (653,036)
(7,306,626)
---------- -
- -----------
Net increase.................................... 1,027,820 $
11,843,218
==========
============
<CAPTION>
YEAR
ENDED
12/31/94
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
QUEST FOR VALUE SMALL CAP PORTFOLIO:
Sold............................................ 2,529,233 $
27,717,481
Issued as reinvestment of dividends............. --
- --
Redeemed........................................ (388,929)
(4,204,531)
---------- -
- -----------
Net increase.................................... 2,140,304 $
23,512,950
==========
============
<CAPTION>
YEAR
ENDED
12/31/95
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
U.S. GOVERNMENT SECURITIES PORTFOLIO:
Sold............................................ 1,060,461 $
11,485,921
Issued as reinvestment of dividends............ 4,969
51,383
Redeemed........................................ (301,075)
(3,223,862)
---------- -
- -----------
Net increase.................................... 764,355 $
8,313,442
==========
============
<CAPTION>
PERIOD
ENDED
12/31/94*
-------------
- -----------
SHARES
AMOUNT
---------- -
- -----------
<S> <C>
<C>
U.S. GOVERNMENT SECURITIES PORTFOLIO:
Sold............................................ 392,939 $
3,921,745
Issued as reinvestment of dividends............ --
- --
Redeemed........................................ (40,917)
(407,515)
---------- -
- -----------
Net increase.................................... 352,022 $
3,514,230
==========
============
</TABLE>
53
<PAGE>
- ------------------------------------------------------------------
- --------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
<TABLE>
<CAPTION>
YEAR
ENDED
12/31/95*
---------
- -------------
SHARES
AMOUNT
---------
- -----------
<S> <C>
<C>
T. ROWE PRICE EQUITY INCOME PORTFOLIO
Sold.............................................. 1,809,529
$20,726,649
Redeemed..........................................
(130,807) (1,409,949)
---------
- -----------
Net increase...................................... 1,678,722
$19,316,700
=========
===========
<CAPTION>
YEAR
ENDED
12/31/95*
---------
- -------------
SHARES
AMOUNT
---------
- -----------
<S> <C>
<C>
T. ROWE PRICE GROWTH STOCK PORTFOLIO:
Sold.............................................. 1,804,168
$21,881,004
Redeemed..........................................
(226,461) (2,677,753)
---------
- -----------
Net increase...................................... 1,577,707
$19,203,251
=========
===========
</TABLE>
------------
* The U.S. Government Securities Portfolio commenced
operations on May
13, 1994. The T. Rowe Price Equity Income Portfolio and the
T. Rowe
Price Growth Stock Portfolio commenced operations on
January 3, 1995.
5. ORGANIZATION COSTS
Organization costs are amortized on a straight-line basis over a
period of five
years from the commencement of operations of each Portfolio. In
the event that
any of the initial shares (Money Market Portfolio -- 100,000
shares, Managed
Asset Allocation Portfolio -- 10,000 shares, T. Rowe Price
International Stock
Portfolio -- 10,000 shares, Quest for Value Equity Portfolio -- 10
shares,
Quest for Value Small Cap Portfolio -- 10 shares, U.S. Government
Securities
Portfolio -- 10 shares, T. Rowe Price Equity Income Portfolio --
10 shares, and
T. Rowe Price Growth Stock Portfolio -- 10 shares) owned by a
separate account
of PFL Life Insurance Company are redeemed during such
amortization period, the
redemption proceeds will be reduced for any unamortized
organization costs in
the same proportion as the number of shares redeemed bears to the
number of
initial shares outstanding at the time of the redemption. The Fund
bears the
expense of registering and qualifying its shares of the various
Portfolios for
distribution under Federal and state securities regulations.
6. FOREIGN SECURITIES
The Portfolios may invest in foreign securities. Investing in
securities of
foreign companies and foreign governments involves special risks
and
considerations not typically associated with investing in the
securities of
U.S. companies and the U.S. government. These risks include re-
valuation of
currencies and future adverse political and economic developments.
Moreover,
securities of many foreign companies and foreign governments and
their markets
may be less liquid and their prices more volatile than those of
securities of
comparable U.S. companies and the U.S. government.
The T. Rowe Price International Stock Portfolio's investment
policies
prohibit it from investing more than 15% of the market or other
fair value of
its total assets in illiquid securities, including securities that
are not
readily marketable, securities that are restricted as to
disposition under
Federal securities laws or otherwise, repurchase agreements
maturing in more
than seven days, interest only and principal only mortgage-backed
securities,
certain options traded in the over-the-counter market and the
securities to
which such options relate. In purchasing securities which could
not be sold by
the T. Rowe Price International Stock Portfolio without
registration under the
Securities Act of 1933, as amended, the T. Rowe Price
International Stock
Portfolio will endeavor to obtain the right to registration at the
expense of
the issuer. There generally will be a lapse of time between the
decision by the
T. Rowe Price International Stock Portfolio to sell any such
security and the
registration of the security permitting the sale. During any such
period, the
security will be subject to market fluctuations.
7. CAPITAL LOSS CARRYFORWARD
As of December 31, 1995, the Portfolios had available for
federal tax
purposes unused capital loss carryforwards as follows:
<TABLE>
<CAPTION>
EXPIRING IN 2000 EXPIRING IN 2001
EXPIRING IN 2002
---------------- ---------------- ------
- ----------
<S> <C> <C> <C>
Money Market Portfolio.. -- -- $
215
Managed Asset Allocation
Portfolio.............. $ 54,786 $191,566
3,991,365
T. Rowe Price
International Stock
Portfolio.............. -- --
- --
<CAPTION>
EXPIRING IN 2003
----------------
<S> <C>
Money Market Portfolio.. --
Managed Asset Allocation
Portfolio.............. $4,769,364
T. Rowe Price
International Stock
Portfolio.............. 4,376,757
</TABLE>
54
<PAGE>
- ------------------------------------------------------------------
- --------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
To the Board of Trustees and Shareholders
Endeavor Series Trust
We have audited the accompanying statements of assets and
liabilities,
including the portfolios of investments, of Endeavor Series Trust
(the "Fund",
comprising, respectively, the Money Market, Managed Asset
Allocation, T. Rowe
Price International Stock (formerly Global Growth), Quest for
Value Equity,
Quest for Value Small Cap, T. Rowe Price Equity Income, T. Rowe
Price Growth
Stock, and U.S. Government Securities Portfolios) as of December
31, 1995, and
the related statements of operations for the year then ended, the
statements of
changes in net assets for each of the two years in the period then
ended, and
the financial highlights for each of the periods indicated
therein. These
financial statements and financial highlights are the
responsibility of the
Fund's management. Our responsibility is to express an opinion on
these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing
standards. Those standards require that we plan and perform the
audit to obtain
reasonable assurance about whether the financial statements and
financial
highlights are free of material misstatement. An audit includes
examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial
statements. Our procedures included confirmation of securities
owned as of
December 31, 1995, by correspondence with the custodian and
brokers or by other
appropriate auditing procedures where replies from brokers were
not received.
An audit also includes assessing the accounting principles used
and significant
estimates made by management, as well as evaluating the overall
financial
statement presentation. We believe that our audits provide a
reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to
above present fairly, in all material respects, the financial
position of each
of the respective Portfolios constituting Endeavor Series Trust at
December 31,
1995, the results of their operations for the year then ended, the
changes in
their net assets for each of the two years in the period then
ended and the
financial highlights for each of the periods indicated therein, in
conformity
with generally accepted accounting principles.
[ART]
Boston, Massachusetts
February 9, 1996
55
<PAGE>
- ------------------------------------------------------------------
- --------------
MEETING OF SHAREHOLDERS (UNAUDITED)
- ------------------------------------------------------------------
- --------------
ENDEAVOR SERIES TRUST
DECEMBER 31, 1995
A Special Meeting of Shareholders of the Global Growth Portfolio
(currently
known as T. Rowe Price International Stock Portfolio (the
"Portfolio")) was
held on March 24, 1995, at which time shareholders approved (i) a
new
investment advisory agreement between the Investment Advisers and
Price-
Fleming; (ii) a change to the Portfolio's investment objective;
(iii) an
amendment to the Portfolio's investment restriction regarding
illiquid
securities and a change of this restriction to non-fundamental;
and (iv) an
amendment to the Portfolio's investment restriction regarding
borrowing.
With regard to the approval of the new investment advisory
agreement, 6,667,781
votes were cast in favor of the proposal, 148,173 votes were cast
against the
proposal and 592,692 votes abstained. With regard to the approval
of the change
to the Portfolio's investment objective, 6,519,608 votes were cast
in favor of
the proposal, 296,346 votes were cast against the proposal and
592,692 votes
abstained. With regard to the approval of an amendment to the
Portfolio's
investment restriction regarding illiquid securities and to change
this
restriction to non-fundamental, 6,223,263 votes were cast in favor
of the
proposal, 444,519 votes were cast against the proposal and 740,865
votes
abstained. With regard to the approval of an amendment to the
Portfolio's
investment restriction regarding borrowing, 6,075,090 votes were
cast in favor
of the proposal, 666,778 votes were cast against the proposal and
666,778 votes
abstained.
56
