<PAGE> 1
P-I-C
GROWTH
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
PERCENT OF
EQUITY SECURITIES - 90.8% SHARES VALUE NET ASSETS
- ----------------------------------------------------------------------------------
AUTO PARTS - 1.5%
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Autozone, Inc.* 50,050 $ 1,826,825 1.5%
Autozone is a leading specialty retailer
of automotive parts and accessories,
focusing on Do-It-Yourself consumers.
- ----------------------------------------------------------------------------------
BANKS - 0.1%
- ----------------------------------------------------------------------------------
Synovus Financial Corporation 6,150 138,375 0.1%
Synovus Financial is a bank holding
company that controls 80% of Total System
Services, a credit card processing
company.
- ----------------------------------------------------------------------------------
BIOTECHNOLOGY - 1.8%
- ----------------------------------------------------------------------------------
Amgen, Inc.* 39,000 2,242,500 1.8%
Amgen develops, manufactures and markets
drugs based on advanced cellular and
molecular biology. The company's two
principal drugs are Epogen, which promotes
the production of white blood cells,
and Nuepogen, which stimulates the
production of certain white blood cells.
- ----------------------------------------------------------------------------------
BUILDING PRODUCTS - 0.5%
- ----------------------------------------------------------------------------------
Home Depot, Inc. 12,000 568,500 0.5%
Home Depot operates over 230 retail
Do-It-Yourself warehouse building supply
stores in 21 states.
- ----------------------------------------------------------------------------------
BUSINESS AND FINANCIAL SERVICES - 7.5%
- ----------------------------------------------------------------------------------
Accustaff, Inc.* 21,600 642,600 0.5%
Accustaff is a national provider of
temporary staffing personnel to
businesses, professional and service
organizations and government agencies
through three divisions: commercial,
professional services, and telecommunications.
Alco Standard Corporation 14,800 856,550 0.7%
Alco Standard is the largest independent
copier distribution network in North
America and the largest distributor of
printing paper.
Ceridian Corporation* 16,500 787,875 0.6%
Ceridian Corporation is an information
services company providing payroll and
human resource services to large
corporations. Their Arbitron division is
the dominant provider of radio rating
services and CDI provides electronic
solutions to defense markets.
Danka Business Systems PLC, ADR 40,950 1,965,600 1.6%
Danka Business Systems is an independent
retail and wholesale distributor of
photocopiers, fax equipment and related
service and parts, with 290 retail
branches in the United States, Canada, and
the United Kingdom.
First Data Corporation 65,498 4,977,848 4.1%
First Data Corporation is the world's
largest processor of credit cards, debit
cards, and merchant transactions.
- ----------------------------------------------------------------------------------
Total Business and Financial Services 9,230,473
- ----------------------------------------------------------------------------------
CHEMICALS - 0.8%
- ----------------------------------------------------------------------------------
Monsanto Company 6,600 999,900 0.8%
Monsanto manufactures and markets
agricultural products, chemicals, food
products and pharmaceuticals.
</TABLE>
9
<PAGE> 2
P-I-C
GROWTH
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
==================================================================================
PERCENT OF
EQUITY SECURITIES, CONTINUED SHARES VALUE NET ASSETS
- ----------------------------------------------------------------------------------
COMPUTER SERVICES - 5.0%
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Automatic Data Processing, Inc. 29,200 $ 1,135,150 1.0%
Automatic Data Processing provides
computerized transaction processing, data
communications, information recordkeeping
and payroll services.
Computer Sciences Corporation* 26,400 1,953,600 1.6%
Computer Sciences Corporation is a large
independent provider of information
technology consulting.
General Motor Corporation, Class E 26,800 1,510,850 1.2%
Electronic Data Systems is an information
technology services company. The company
designs, installs, and operates data
processing services for GM, federal
government, civilian agencies and
commercial firms.
Paychex, Inc. 16,150 1,094,163 0.9%
Provides computerized payroll-accounting
services, salary deposit services,
automatic-payroll-tax payments,
return-filing services, and human resource
products and services to more than 207,900
small and medium sized businesses
nationwide.
Shared Medical Systems Corporation 5,500 376,750 0.3%
Shared Medical Systems provides
computer-based information processing
systems to hospitals, clinics and
physician groups.
- ----------------------------------------------------------------------------------
Total Computer Services 6,070,513
- ----------------------------------------------------------------------------------
COMPUTER SOFTWARE - 10.1%
- ----------------------------------------------------------------------------------
Computer Associates International, Inc. 48,250 3,540,344 2.9%
Computer Associates manufactures software
that enables computers to run more
efficiently. The company develops, markets
and services over 300 products for a wide
range of mainframes, mini-computers and
micro-computers.
Microsoft Corporation* 47,988 5,440,640 4.4%
Microsoft develops and markets systems and
applications software for business and
home use.
Oracle Systems Corporation* 101,500 3,425,625 2.8%
Oracle Systems is the world's largest
maker of database management systems
(DBMS), software that allows users to
create, retrieve, and manipulate data in
computer-based files.
- ----------------------------------------------------------------------------------
Total Computer Software 12,406,609
- ----------------------------------------------------------------------------------
CONSUMER DURABLES - 0.4%
- ----------------------------------------------------------------------------------
American Standard Company, Inc., DE* 15,100 426,575 0.4%
American Standard Company is a global
manufacturer of brand name products such
as air conditioning, plumbing and braking
and control systems.
- ----------------------------------------------------------------------------------
COSMETICS - 1.8%
- ----------------------------------------------------------------------------------
Estee Lauder Companies, Class A 6,800 249,050 0.2%
Estee Lauder is a worldwide manufacturer
and marketer of prestige skin care, makeup
and fragrance products, under five current
names (Estee Lauder, Clinique, Aramis,
Prescriptives and Origins).
The Gillette Company 35,920 1,939,680 1.6%
Gillette produces and manufactures razors
and razor blades, cosmetics, stationery
products, small appliances and oral care
products.
- ----------------------------------------------------------------------------------
Total Cosmetics 2,188,730
</TABLE>
10
<PAGE> 3
P-I-C
GROWTH PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
==================================================================================
PERCENT OF
EQUITY SECURITIES - CONTINUED SHARES VALUE NET ASSETS
- ----------------------------------------------------------------------------------
CREDIT AND FINANCE - 4.0%
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
First USA Inc. 29,900 $ 1,681,875 1.4%
First USA is an issuer of credit cards and
a processor of credit card transactions
for merchants.
MBNA Corporation 99,590 2,825,866 2.3%
MBNA is the fourth largest credit card issuer
and processor in the United States.
Mercury Finance Company 34,200 393,300 0.3%
Mercury Finance, a consumer finance
company, provides short-term installment
loans directly to consumers, purchases
installment sales contracts from dealers
and sells credit insurance.
- ----------------------------------------------------------------------------------
Total Credit and Finance 4,901,041
- ----------------------------------------------------------------------------------
DIVERSIFIED - 2.0%
- ----------------------------------------------------------------------------------
Thermo Electron Corporation* 23,600 1,454,350 1.2%
Thermo Electron manufactures analytical
instruments, alternative-energy systems,
process equipment, biomedical items and
other devices.
Tyco International Ltd. 25,300 977,213 0.8%
Tyco International, a diversified
manufacturing company, produces fire
protection systems, pipes, fittings, and
other flow control equipment.
- ----------------------------------------------------------------------------------
Total Diversified 2,431,563
- ----------------------------------------------------------------------------------
DRUGS - 3.4%
- ----------------------------------------------------------------------------------
Elan Corporation, PLC, ADR* 15,100 998,487 0.8%
Elan Corporation is an Ireland-based
company engaged in developing drug
delivery systems for controlling the
absorption of drugs.
Eli Lilly & Company 18,600 1,097,400 0.9%
Eli Lilly develops and markets
pharmaceutical products to treat human and
animal diseases.
Merck & Company, Inc. 34,000 2,057,000 1.7%
Merck is the world's largest
pharmaceutical company and the largest
U.S. pharmacy benefits management company.
- ----------------------------------------------------------------------------------
Total Drugs 4,152,887
- ----------------------------------------------------------------------------------
ELECTRONIC COMPONENTS/SEMICONDUCTORS - 0.8%
- ----------------------------------------------------------------------------------
Analog Devices, Inc.* 37,200 957,900 0.8%
Analog Devices designs, manufactures and
sells high performance linear and mixed
signal integrated circuits used in analog
and digital signal processing
applications.
- ----------------------------------------------------------------------------------
ENTERTAINMENT - 6.1%
- ----------------------------------------------------------------------------------
British Sky Broadcasting Group 42,600 1,842,450 1.5%
British Sky Broadcasting is the leading
pay television broadcasting service in the
United Kingdom, with over 4.2 million
subscribers.
Walt Disney Company 33,943 2,104,466 1.7%
Walt Disney is a diversified international
entertainment company with operations in
three business segments: Theme Parks and
Resorts, Filmed Entertainment, and
Consumer Products.
</TABLE>
11
<PAGE> 4
P-I-C GROWTH PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
===========================================================================================
PERCENT OF
EQUITY SECURITIES, CONTINUED SHARES VALUE NET ASSETS
- -------------------------------------------------------------------------------------------
ENTERTAINMENT, CONTINUED
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hospitality Franchise System, Inc.* 56,500 $ 2,902,688 2.4%
HFS is the world's largest hotel franchiser
with six nationally recognized brand names,
including Days Inn Ramada, Howard Johnson,
Park Inn, Village Lodge, and Super 8.
ViaCom, Inc. 14,000 574,000 0.5%
ViaCom owns and operates businesses in the
entertainment industry, including feature
film and television production, home video
retail, publishing, cable, radio and
television broadcasting and theme park
operations.
- -------------------------------------------------------------------------------------------
Total Entertainment 7,423,604
===========================================================================================
FOOD & RESTAURANTS - 0.7%
- -------------------------------------------------------------------------------------------
McDonalds Corporation 17,150 821,056 0.7%
McDonalds is the largest global food service
retailer. McDonalds operates more than 15,000
restaurants and has over 20% of the fast-food
restaurant market in the United States.
===========================================================================================
FUNERAL SERVICES - 0.9%
- -------------------------------------------------------------------------------------------
Service Corporation International 21,450 1,139,531 0.9%
Service Corporation International is the
world's largest funeral home and cemetery
consolidator with principal operation in
North America, Australia, the United Kingdom,
and France. Service Corporation currently
owns 1,471 funeral homes and 220 cemeteries.
===========================================================================================
GAMING - 1.9%
- -------------------------------------------------------------------------------------------
Circus Circus Enterprises, Inc.* 13,500 496,125 0.4%
Circus Circus Enterprises is one of the
largest casino operators in the United
States.
Mirage Resorts, Inc.* 34,200 1,791,225 1.5%
Mirage Resorts owns and operates Mirage and
Treasure Island resorts and the Golden Nugget
Hotel on the Las Vegas strip and the Golden
Nugget in Laughlin, Nevada.
- -------------------------------------------------------------------------------------------
Total Gaming 2,287,350
===========================================================================================
HEALTH MAINTENANCE ORGANIZATIONS - 4.1%
- -------------------------------------------------------------------------------------------
Oxford Health Plan, Inc.* 50,900 2,570,450 2.1%
Oxford Health Plans provides managed
healthcare services in New Jersey, New York
and Connecticut.
United HealthCare Corporation 41,300 2,416,050 2.0%
United HealthCare is one of the largest and
most geographically diverse health
maintenance organizations in the United
States. United HealthCare offers services
from Alaska to Puerto Rico.
- -------------------------------------------------------------------------------------------
Total Health Maintenance Organizations 4,986,500
===========================================================================================
HOSPITALS - 0.6%
- -------------------------------------------------------------------------------------------
Columbia/HCA Healthcare 12,700 674,687 0.6%
Columbia Healthcare is a large healthcare
services provider, with 199 acute care and
specialty hospitals located in the United
States, Switzerland and the United Kingdom.
</TABLE>
12
<PAGE> 5
P-I-C GROWTH PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
==========================================================================================
PERCENT OF
EQUITY SECURITIES, CONTINUED SHARES VALUE NET ASSETS
- ------------------------------------------------------------------------------------------
INSURANCE - 2.8%
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
American International Group, Inc. 20,050 $ 1,832,069 1.5%
AIG is the leading United States-based
international insurance company and the
nation's largest underwriter of specialty
commercial and industrial coverages. American
International Group writes property,
casualty, marine, life and financial service
insurance.
MGIC Investment Corporation 25,750 1,396,938 1.1%
MGIC Investment provides private mortgage
insurance coverage to thrifts, mortgage
bankers and brokers, commercial bankers and
other lending institutions.
PMI Group, Inc. 5,900 250,750 0.2%
PMI Group provides private mortgage insurance
coverage to thrifts, mortgage bankers and
brokers, commercial banks, and lending
institutions.
- ------------------------------------------------------------------------------------------
Total Insurance 3,479,757
==========================================================================================
MAINFRAMES - 1.6%
- ------------------------------------------------------------------------------------------
Hewlett Packard Co. 18,450 1,953,394 1.6%
Hewlett-Packard manufactures computers,
calculators, electronic test and measurement
analysis instruments.
==========================================================================================
MEDICAL INSTRUMENTS - 4.2%
- ------------------------------------------------------------------------------------------
Boston Scientific Corporation* 20,200 871,125 0.7%
Boston Scientific is worldwide developer,
manufacturer, and marketer of medical devices
for less invasive procedures. The less
invasive procedures provide effective
alternatives to traditional surgery by
reducing procedural trauma, complexity, risk
to the patient, cost and recovery time.
Medtronic, Inc. 57,450 3,052,031 2.5%
Medtronic manufacturers pacemakers, heart
valves, neurological stimulation devices,
therapeutic catheters and blood oxygenators.
The company markets its products through
hospitals, doctors, and other medical
institutions throughout the world.
St. Jude Medical, Inc.* 34,150 1,246,475 1.0%
St. Jude Medical manufactures and markets
biomedical devices for cardiovascular and
vascular applications.
- ------------------------------------------------------------------------------------------
Total Medical Instruments 5,169,631
==========================================================================================
MEDICAL SERVICES - 0.9%
- ------------------------------------------------------------------------------------------
Cardinal Health, Inc. 16,800 1,054,200 0.9%
Cardinal Health is one of the largest
wholesale drug distributor in the United
States.
==========================================================================================
MORTGAGE AND RELATED SERVICES - 4.7%
- ------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Association 15,300 1,275,638 1.0%
Federal Home Loan Mortgage buys and holds
mortgages from lenders through the United
States and sells guaranteed mortgage-backed
securities.
Federal National Mortgage Association 142,760 4,372,025 3.6%
Federal National Mortgage provides
supplemental assistance to the secondary
market in guaranteed and insured home
mortgages.
Finova Group Inc. 2,800 155,400 0.1%
Finova Group provides collateralized
financing in focused niche markets.
- ------------------------------------------------------------------------------------------
Total Mortgage and Related Services 5,803,063
</TABLE>
13
<PAGE> 6
P-I-C GROWTH PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
====================================================================================
PERCENT OF
EQUITY SECURITIES, CONTINUED SHARES VALUE NET ASSETS
- ------------------------------------------------------------------------------------
NATURAL GAS PRODUCTS AND PIPELINES - 0.8%
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Enron Corporation 24,510 $ 986,527 0.8%
Enron is an integrated natural gas company
engaged in the gathering, transportation and
wholesale marketing of natural gas throughout
the United States and internationally.
====================================================================================
NETWORKING - 3.6%
- ------------------------------------------------------------------------------------
3Com Corporation* 30,450 1,404,506 1.2%
3Com Corporation is a leading networking
products vendor with 50% of sales in systems
(hubs, routers and switches) and 50% in
network adapter cards.
Cabletron Systems, Inc.* 6,350 478,631 0.4%
Cabletron manufactures local area network
products and provides design and support
services for local area network systems.
U.S. Robotics, Inc.* 15,950 2,496,175 2.0%
U.S. Robotics is the dominant provider of
communications access products including high
speed modems and LAN/WAN hubs for dial up
connectivity.
- ------------------------------------------------------------------------------------
Total Networking 4,379,312
====================================================================================
OFFICE EQUIPMENT/SUPPLIES - 1.0%
- ------------------------------------------------------------------------------------
Staples, Inc.* 61,800 1,174,200 1.0%
Staples operates 320 office supply stores in
the United States and Canada.
====================================================================================
OUTPATIENT - HOME CARE - 1.5%
- ------------------------------------------------------------------------------------
Healthsouth Corporation* 49,000 1,819,125 1.5%
Healthsouth is the nation's largest provider
of outpatient and rehabilitative health care
services. Healthsouth provides these services
through outpatient and inpatient
rehabilitation facilities, outpatient surgery
centers and medical centers.
====================================================================================
PHARMACEUTICALS - 3.6%
- ------------------------------------------------------------------------------------
Pfizer, Inc. 64,200 4,421,775 3.6%
Pfizer is a major producer of
pharmaceuticals, hospital products, animal
health lines, consumer products and specialty
chemicals and minerals.
====================================================================================
POLLUTION CONTROL - 0.8%
- ------------------------------------------------------------------------------------
Republic Industries, Inc.* 30,100 985,775 0.8%
Republic Industries is an integrated solid
waste company providing a wide range of
services to public and private sector
customers. These services include disposal,
collection, recycling, environmental
treatment, storage, resource recovery and
transportation services.
====================================================================================
SPECIALTY CHAINS - 1.8%
- ------------------------------------------------------------------------------------
CUC International, Inc.* 42,000 1,380,750 1.1%
CUC, a consumer services company, provides
over 34 million members with access to
discount prices, product comparison
information, and convenient purchasing for
home shopping, travel, insurance, auto, and
dining services.
Kohls Corporation 24,400 838,750 0.7%
Kohls operates 109 family-oriented, specialty
department stores in the Mid-West.
- ------------------------------------------------------------------------------------
Total Specialty Chains 2,219,500
</TABLE>
14
<PAGE> 7
P-I-C GROWTH PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
==================================================================================================
PERCENT OF
EQUITY SECURITIES, CONTINUED SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------------------------
TECHNOLOGY - 2.6%
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cisco Systems, Inc.* 53,300 $ 2,764,937 2.2%
Cisco Systems is the leading supplier of
multimedia and multinetworking products
including routers, bridges, terminal servers
and network management products.
Informix Corporation* 17,350 457,606 0.4%
Informix is a leading provider of relational
database management software, including
application development tools and graphical-
and character-based productivity software,
for use on most significant desktop
platforms.
- --------------------------------------------------------------------------------------------------
Total Technology 3,222,543
==================================================================================================
TELEPHONE COMMUNICATIONS - 6.1%
- --------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc.* 13,000 546,000 0.5%
ADC Telecommunications is a leading
telecommunications equipment supplier which
focuses on broadband connectivity, broadband
transmission and wide area networking
products.
Andrew Corporation* 23,625 1,134,000 0.9%
Andrew Corporation is an international
supplier of communications equipment and
services to commercial and government
markets.
L.M. Ericsson Telephone Company, ADR 122,750 2,501,031 2.0%
Ericsson is a Swedish producer of
telecommunications equipment suppliers and
the predominant supplier in the cellular
equipment market.
Frontier Corporation 57,100 1,805,788 1.5%
Frontier Corporation is a holding company
that provides executive, legal, and strategic
services to a variety of subsidiaries
involved in the local telephone and
telecommunications services industries.
Frontier merged with ALC Communications on
August 16, 1995.
Glenayre Technologies, Inc.* 11,200 520,800 0.4%
Glenayre Technologies is a leading worldwide
manufacturer of infrastructure equipment for
paging and other wireless telecommunications
markets.
Worldcom, Inc.* 19,700 925,900 0.8%
Worldcom is the fourth largest long distance
carrier in the United States, providing
service throughout the nation and to over 220
foreign countries.
- --------------------------------------------------------------------------------------------------
Total Telecommunications 7,433,519
==================================================================================================
TEXTILES & SHOES - 0.5%
- --------------------------------------------------------------------------------------------------
Tommy Hilfiger Corporation* 14,700 668,850 0.5%
Tommy Hilfiger designs, sources and markets
mid-priced designer sportswear for men and
boys.
==================================================================================================
TRANSPORTATION SERVICES - 0.3%
- --------------------------------------------------------------------------------------------------
Fritz Companies, Inc.* 10,300 378,525 0.3%
Fritz Companies provides global integrated
logistics information services and
outsourcing to companies involved in the
worldwide movement of goods.
- --------------------------------------------------------------------------------------------------
Total Equity Securities (Cost $85,414,825) 111,024,815 90.8%
</TABLE>
15
<PAGE> 8
P-I-C GROWTH PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
=====================================================================================================
PRINCIPAL PERCENT OF
SHORT-TERM INVESTMENTS - 7.8% AMOUNT VALUE NET ASSETS
- -----------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 5.7%
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
American Express Credit Corp., 5.31%, 6/13/96 $ 3,000,000 $ 3,000,000 2.4%
Ford Motor Credit Company, 5.32%, 6/6/96 4,000,000 4,000,000 3.3%
- -----------------------------------------------------------------------------------------------------
Total Commercial Paper (cost $7,000,000) 7,000,000
=====================================================================================================
REPURCHASE AGREEMENT - 2.1%
- -----------------------------------------------------------------------------------------------------
Lehman Brothers On-Line Repurchase Agreement, 4.99%,
dated 4/30/96, due 5/1/96 (Collateralized by $2,790,480
U.S. Treasury Bill, 7.5%, due 10/3/96) (Cost $2,607,200) 2,607,200 2,607,200 2.1%
- -----------------------------------------------------------------------------------------------------
Total Investments (Cost $95,022,025) 120,632,015 98.6%
=====================================================================================================
OTHER ASSETS - 2.0%
- -----------------------------------------------------------------------------------------------------
Cash $ 52
Dividends and interest receivable 59,058
Receivable for investment securities sold 2,390,808
Deferred organization costs 10,037
Other assets 20,267
- -----------------------------------------------------------------------------------------------------
Total Assets 2,480,222 2.0%
=====================================================================================================
LIABILITIES - (0.6%)
- -----------------------------------------------------------------------------------------------------
Payable for investment securities purchased 694,902
Accrued expenses 103,514
- -----------------------------------------------------------------------------------------------------
Total Liabilities 798,416 (0.6%)
=====================================================================================================
TOTAL NET ASSETS - 100.0% $122,313,821 100.0%
- -----------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
The above descriptions of portfolio companies
are furnished by management solely for the
general information of investors.
Unaudited. See Notes to Financial Statements.
16
<PAGE> 9
P-I-C GROWTH PORTFOLIO
STATEMENT OF OPERATIONS Six Months ended April 30, 1996
<TABLE>
<CAPTION>
===============================================================================
INVESTMENT INCOME
- -------------------------------------------------------------------------------
Income:
- -------------------------------------------------------------------------------
<S> <C>
Dividends $ 305,335
Interest 298,347
- -------------------------------------------------------------------------------
Total income 603,682
===============================================================================
Expenses:
- -------------------------------------------------------------------------------
Investment advisory fee (Note 3) 501,315
Administration fee (Note 3) 62,663
Accounting services fee 32,562
Custody fee 19,445
Auditing fees 10,532
Trustees' fees 7,504
Legal fees 2,194
Insurance 4,804
Amortization of organization costs 4,388
Miscellaneous 4,388
- -------------------------------------------------------------------------------
Total expenses 649,795
Less, reimbursement/waiver from Advisor (Note 3) (23,156)
- -------------------------------------------------------------------------------
Net expenses 626,639
===============================================================================
Net investment loss (22,957)
===============================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- -------------------------------------------------------------------------------
Net realized gain from security transactions 9,659,042
Change in net unrealized appreciation of investments (30,882,392)
- -------------------------------------------------------------------------------
Net loss on investments (21,223,350)
===============================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(21,246,307)
- -------------------------------------------------------------------------------
</TABLE>
Unaudited. See Notes to Financial Statements. 17
<PAGE> 10
P-I-C GROWTH PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
===============================================================================================================
(DECREASE) INCREASE IN NET ASSETS:
- ---------------------------------------------------------------------------------------------------------------
Six Months Year
ended ended
From operations: April 30, 1996 October 31, 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment (loss) income $ (22,957) $ 149,206
Net realized gain on investments 9,659,042 3,599,901
Change in unrealized appreciation of investments (30,882,392) 36,436,183
- ---------------------------------------------------------------------------------------------------------------
Net (decrease) increase in net assets resulting from operations (21,246,307) 40,185,290
===============================================================================================================
Transactions in Interests:
Contributions by Holders 8,463,562 37,495,575
Withdrawals by Holders (94,745,682) (25,350,557)
- ---------------------------------------------------------------------------------------------------------------
Net (decrease) increase in net assets from
transactions in interests (86,282,120) 12,145,018
===============================================================================================================
Total (decrease) increase in net assets (107,528,427) 52,330,308
===============================================================================================================
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 229,842,248 177,511,940
- ---------------------------------------------------------------------------------------------------------------
End of period $122,313,821 $229,842,248
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
Unaudited. See Notes to Financial Statements.
18
<PAGE> 11
P-I-C GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS April 30, 1996
================================================================================
1 -- ORGANIZATION
- --------------------------------------------------------------------------------
P-I-C Growth Portfolio (the "Portfolio") was organized on December 11, 1991
as a trust under the laws of the State of New York. The beneficial interests in
the Portfolio are divided into an unlimited number of non-transferable
Interests, par value $.01 each. The Portfolio is registered under the Investment
Company Act of 1940 as an open-end, diversified management investment company.
2 -- SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following is a summary of significant accounting policies consistently
followed by the Portfolio. These policies are in conformity with generally
accepted accounting principles.
A. Valuation of Securities. Equity securities listed on a national securities
exchange or traded on the NASDAQ system are valued at their last sale
price. Other equity securities and debt securities for which market
quotations are readily available are valued at the mean between their bid
and asked price, except that debt securities maturing within 60 days are
valued on an amortized cost basis. Securities for which market quotations
are not readily available are valued at fair value as determined in good
faith by the Board of Trustees.
B. Federal Income Taxes. The Portfolio intends to comply with the requirements
of the Internal Revenue Code applicable to it. Therefore, no federal income
tax provision is required.
C. Deferred Organization Expense. Organization costs of the Portfolio are
being amortized on a straight line basis over a period of sixty months.
During the amortization period the proceeds of any redemption of the
original Interests in the Portfolio by any Holder thereof will be reduced
by a pro rata portion of any then unamortized organization costs based on
the ratio of Interests redeemed to the total initial Interests outstanding
prior to the redemption.
D. Other. Securities transactions are recorded on the trade date basis.
Realized gains and losses from securities transactions are reported on an
identified cost basis. Interest is recorded as accrued, and dividend income
is recorded on the ex-dividend date.
3 -- TRANSACTIONS WITH AFFILIATES
The Portfolio has entered into an investment advisory agreement with
Provident Investment Counsel, Inc. ("PIC") and an administration agreement with
Investment Company Administration Corporation ("ICAC"), pursuant to which
agreements certain employees of these entities serve as officers and/or trustees
of the Portfolio. PIC and ICAC also provide management services necessary for
the operations of the Portfolio and furnish office facilities.
PIC receives a fee for its services to the Portfolio at the rate of 0.80%
of the average daily net assets of the Portfolio. PIC has voluntarily agreed to
limit the total expenses of the Portfolio to an annual rate of 1.00% of the
Portfolio's average net assets. During the period ended April 30, 1996, PIC
received $478,159 in fees from the Portfolio, after deducting the reimbursement
of $23,156. ICAC receives an annual fee for its services at the rate of 0.10% of
average daily net assets of the Portfolio. Fees paid to ICAC pursuant to the
agreement totalled $62,663 for the period ended April 30, 1996.
19
<PAGE> 12
P-I-C GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS, CONTINUED
================================================================================
4 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
During the period ended April 30, 1996, purchases and sales of investment
securities, other than short-term obligations, were $51,778,367 and
$169,047,756, respectively. The cost of securities for federal income tax
purposes was $95,022,025. The aggregate gross unrealized appreciation and
depreciation of portfolio securities, based on cost for federal income tax
purposes, were as follows:
<TABLE>
<CAPTION>
<S> <C>
Unrealized appreciation $ 26,505,818
Unrealized depreciation (895,827)
------------
Net unrealized appreciation $ 25,609,991
============
</TABLE>
- --------------------------------------------------------------------------------
5 - SELECTED RATIO DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Year Year
ended ended ended ended
April 30, 1996 October 31, 1995 October 31, 1994 October 31, 1993
-------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Ratios to average net assets:
Operating expenses* 1.00%++ 1.00% 1.00% 1.00%
Net investment (loss) income* (0.04%)++ 0.08% 0.10% 0.17%
Portfolio turnover rate 36.09% 54.89% 68.26% 43.20%
</TABLE>
++Annualized.
*Net of expense reimbursements equivalent to 0.04%, 0.01%, 0.01% and 0.09% of
average net assets, respectively.
20
