Annual Report
October 31, 1995
<PAGE>
<TABLE>
<CAPTION>
PIC ENDEAVOR GROWTH FUND
Statement of Assets and Liabilities as of October 31, 1995
ASSETS
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<S> <C>
Investment in PIC Growth Portfolio, at value $ 98,685,084
Receivable from Provident Investment Counsel, Inc. (Note 3) 10,715
Prepaid expenses 1,425
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Total Assets 98,697,224
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LIABILITIES
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Accrued expenses 25,230
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NET ASSETS
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Applicable to 6,972,036 shares of beneficial interest outstanding $ 98,671,994
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NET ASSET VALUE PER SHARE $ 14.15
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SOURCE OF NET ASSETS
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Paid-in capital $ 73,790,323
Accumulated net realized loss on investments (1,900,785)
Undistributed net investment deficit (36,463)
Net unrealized appreciation of investments 26,818,919
====================================================================================================================================
Net assets $ 98,671,994
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See Notes to Financial Statements.
<PAGE>
PIC ENDEAVOR GROWTH FUND
Statement of Operations Year ended October 31, 1995
INVESTMENT INCOME
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Net investment income from Portfolio $ 65,055
====================================================================================================================================
Expenses:
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Administration fees (Note 3) 174,966
Trustees' fees 9,501
Legal fees 10,052
Reports to shareholders 6,000
Auditing fee 10,001
Custody and accounting services fee 6,000
Transfer agent's fee 10,001
Insurance Fees 1,408
Miscellaneous 7,197
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Total expenses 235,126
Less, reimbursement/waiver by Provident Investment Counsel, Inc. (Note 3) (235,126)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses -0-
====================================================================================================================================
Net investment income 65,055
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NET REALIZED & UNREALIZED GAIN ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments 2,883,973
Change in net unrealized appreciation of investments 14,356,695
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Net gain on investments 17,240,668
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $17,305,723
</TABLE>
See Notes to
Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PIC ENDEAVOR GROWTH FUND
Statement of Changes in Net Assets
INCREASE IN NET ASSETS
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Year Year
ended ended
From operations: October 31, 1995 October 31, 1994
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<S> <C> <C>
Net investment income $ 65,055 $ 75,784
Net realized gain (loss) on investments 2,883,973 (1,226,237)
Change in unrealized appreciation of investments 14,356,695 2,243,435
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Net increase in net assets resulting from operations 17,305,723 1,092,982
====================================================================================================================================
Dividends:
From net investment income (164,875) (70,277)
====================================================================================================================================
Transactions in shares of beneficial interest:
Purchases of 946,858 and 720,005 shares, respectively 11,945,035 8,013,152
Value of 14,948 and 6,247 shares issued, respectively,
in payment of dividends 164,875 70,277
Redemptions of 461,311 and 537,557 shares, respectively (5,792,266) (6,103,422)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from share transactions 6,317,644 1,980,007
====================================================================================================================================
Total increase in net assets 23,458,492 3,002,712
====================================================================================================================================
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning of year 75,213,502 72,210,790
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End of year $ 98,671,994 $ 75,213,502
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</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PIC ENDEAVOR GROWTH FUND
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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Year Year Year July 7, 1992*
ended ended ended through
October 31, 1995 October 31,1994October 31, 1993October 31, 1992
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<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.62 $ 11.49 $ 10.70 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .01 .01 .02 .02
Net realized and unrealized gain
on investments 2.54 .13 .80 .68
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Total from investment operations 2.55 .14 .82 .70
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Less distributions:
Dividends from net investment income (.02) (.01) (.03) .00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.15 $ 11.62 $ 11.49 $ 10.70
====================================================================================================================================
Total return 22.04% 1.23% 7.67% 7.00%
====================================================================================================================================
Ratios/supplemental data:
Net assets, end of period (millions) $ 98.7 $ 75.2 $ 72.2 $ 37.2
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:+**
Expenses 1.00% 1.00% 1.00% 1.00%++
Net investment income .08% .10% .19% .72%++
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<FN>
*Commencement of operations.
+Net of expense reimbursements.
**Includes the Fund's shares of expenses, net of expense reimbursements and
waivers, allocated from PP. IP. C Growth Portfolio of 1.00%. If the expense
reimbursements and waivers, with respect to the Fund and PP. IP. C Growth
Portfolio, had not been made, the ratio of expenses to average net assets would
have been 1.30%, 1.32%, 1.40% and 1.75%, respectively.
++Annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
PIC ENDEAVOR GROWTH FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
1 -- ORGANIZATION
- --------------------------------------------------------------------------------
PIC Endeavor Growth Fund (the "Fund") is one of six series of PIC
Investment Trust (the "Trust"). The Trust was organized on December 11, 1991 as
a Delaware business trust, with an unlimited number of shares of beneficial
interest of $.01 par value, and is registered under the Investment Company Act
of 1940 as an open-end, diversified management investment company. The Fund
invests substantially all of its assets in the PIC Growth Portfolio (the
"Portfolio"), a separate registered management investment company having the
same investment objective as the Fund. At October 31, 1995, the Fund owned
42.94% of the total net assets of the Portfolio. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
- --------------------------------------------------------------------------------
2 -- SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. Investment Valuation. The Fund reflects its investment in the Portfolio
at its proportionate interest in the value of the Portfolio's net assets.
Valuation of securities by the Portfolio is discussed at Note 2A of the
Portfolio's Notes to Financial Statements.
B. Investment Income and Dividends to Shareholders. The Fund earns income,
net of the expenses of the Portfolio, daily on its investment in the Portfolio.
All net investment income and realized and unrealized gains or losses on
investments of the Portfolio are allocated pro rata among the Fund and the other
Holders of Interests in the Portfolio. Dividends, if any, are paid annually to
shareholders of the Fund and recorded on the ex-dividend date.
C. Federal Income Taxes. The Fund intends to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
- --------------------------------------------------------------------------------
3 -- TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
The Trust has entered into administration agreements with Provident
Investment Counsel, Inc. ("PIC") and Investment Company Administration
Corporation ("ICAC"), pursuant to which agreements certain employees of these
entities serve as officers and/or trustees of the Trust and the Portfolio. PIC
and ICAC also provide management services necessary for the operations of the
Trust and the Portfolio and furnish office facilities. PIC receives a fee for
its services to the Fund at the rate of 0.20% of the average daily net assets of
the Fund and ICAC receives an annual fee of $10,000 for its services. PIC has
voluntarily agreed to reimburse the Fund to the extent necessary so that the
expenses of the Fund, including those expenses allocated from the Portfolio, do
not exceed 1.00% of the Fund's average net assets. For the year ended
<PAGE>
Notes to Financial Statements, continued
October 31, 1995, PIC waived its fee amounting to $164,965 and reimbursed
expenses of the Fund amounting to $70,161.
First Fund Distributors, Inc. (an affiliate of ICAC), a registered
broker-dealer, acts as the principal underwriter for the Trust in connection
with the offering of its shares, but receives no compensation for its services.
- --------------------------------------------------------------------------------
4 -- INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
Additions and reductions in the Fund's investment in the Portfolio
aggregated $12,006,234 and $5,858,963, respectively.
- --------------------------------------------------------------------------------
5 -- SUBSEQUENT EVENT
- --------------------------------------------------------------------------------
Subsequent to year end, the Fund was advised that the trustees of the
Harris Corporation Trust 401K Plan, which represents ownership of all the shares
of the Fund, has elected to redeem its shares. Such redemption is expected to
occur no later than December 31, 1995. See Notes to Financial Statements.
<PAGE>
Independent Auditor's Report To the Board of Trustees of
PIC Investment Trust
and the Shareholders of
PIC Endeavor Growth Fund
We have audited the accompanying statement of assets and liabilities of
PIC Endeavor Growth Fund (a series of PIC Investment Trust) as of October
31, 1995, the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended and the financial highlights for each of the two years in the period then
ended and for the period July 7, 1992 (commencement of operations) to October
31, 1992. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
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. 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
PIC Endeavor Growth Fund as of October 31, 1995, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
McGladrey & Pullen, LLP
New York, New York
November 22, 1995
<PAGE>
<TABLE>
<CAPTION>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES - 97.6% Shares Value Net Assets
Aerospace - 1.7%
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Boeing Company 58,500 $ 3,839,062 1.7%
Boeing Company manufactures commercial and military aircraft.
- ------------------------------------------------------------------------------------------------------------------------------------
Auto Parts - 1.1%
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Autozone, Inc.* 103,100 2,551,725 1.1%
Autozone is a leading specialty retailer of automotive parts and
accessories, focusing on Do-It-Yourself consumers.
- ------------------------------------------------------------------------------------------------------------------------------------
Biotechnology - 0.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Amgen, Inc. 33,000 1,584,000 0.7%
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 - 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc. 466 17,359 0.0%
Home Depot operates over 230 retail Do-It-Yourself warehouse building supply
stores in 21 states.
Lowe's Companies, Inc. 500 13,500 0.0%
Lowe's is a specialty retailer of products and services for the home improvement
and home construction markets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Building Products 30,859
- ------------------------------------------------------------------------------------------------------------------------------------
Business and Financial Services - 6.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Alco Standard Corporation 25,900 2,292,150 1.0%
The largest independent copier
distribution network in North America and the largest distributor of
printing paper.
Ceridian Corporation* 25,100 1,091,850 0.5%
Ceridian Corporation is an information services company providing
payroll and humanb resource services to large corporations. Their
Arbitron division is the dominant provider of radio rating services
and CDI provides electronic solutions to defense markets.
First Data Corporation 168,848 11,165,090 4.9%
First Data Corporation provides high
quality, high volume information processing and related services.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Business and Financial Services 14,549,090
<PAGE>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES, continued Shares Value Net Assets
Chemicals - 0.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Air Products & Chemicals, Inc. 36,600 $ 1,889,475 0.8%
Air Products & Chemicals is an international supplier of industrial
gases and specialty chemicals.
- ------------------------------------------------------------------------------------------------------------------------------------
Computer Services - 2.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Automatic Data Processing, Inc. 17,200 1,229,800 0.5%
Automatic Data Processing provides computerized transaction processing,
data communications, information recordkeeping and payroll
services.
Computer Sciences Corp.* 36,100 2,414,187 1.1%
Computer Sciences Corp is a large independent provider of information
technology consulting.
Paychex, Inc. 32,550 1,411,856 0.6%
Provides computerized payroll-accounting services, salary deposit services,
automatic-payroll-tax payments, return-filing services,
and human resource products and services to more than 186,000 small and medium
sized businesses nationwide.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Computer Services 5,055,843
- ------------------------------------------------------------------------------------------------------------------------------------
Computer Software - 9.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 101,700 5,593,500 2.4%
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* 75,888 7,588,800 3.3%
Microsoft developes and markets systems and applications software for
business
and home use.
Oracle Systems Corp.* 176,900 7,717,263 3.4%
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. Main products support ORACLE,
a relational DBMS, which allows people to manipulate data by using an
industry standard language SQL.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Computer Software 20,899,563
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Durables - 0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
American Standard Company, Inc., DE 74,100 1,982,175 0.9%
American Standard Company is a global manufacturer of brand name products
such as air conditioning, plumbing and braking and control systems.
<PAGE>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES, continued Shares Value Net Assets
Cosmetics - 1.2%
- ------------------------------------------------------------------------------------------------------------------------------------
The Gillette Company 55,520 $ 2,685,780 1.2% Gillette produces and
manufactures razors and razor blades, cosmetics, stationery products,
small appliances and oral care products.
- ------------------------------------------------------------------------------------------------------------------------------------
Credit and Finance - 3.7%
- ------------------------------------------------------------------------------------------------------------------------------------
First USA Inc. 59,300 2,727,800 1.2%
First USA is one of the largest issuers of credit cards and processors of
credit card transactions for merchants with a total of
nearly $13 billion in loans outstanding.
MBNA Corporation 153,860 5,673,588 2.5%
MBNA is the fourth largest credit card issuer and processor in the
United States.
Mercury Finance Company 600 11,550 0.0%
A consumer finance company which provides short-term installment loans
directly to consumers, purchases installment sales contracts
from dealers and sells credit insurance.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Credit and Finance 8,412,938
- ------------------------------------------------------------------------------------------------------------------------------------
Discount Chains - 0.9%
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Wal-Mart Stores, Inc. 94,200 2,037,075 0.9%
Wal-Mart operates an expanding chain of modern retail discount stores and
warehouse membership-only clubs.
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Diversified - 1.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Tyco International Ltd. 45,500 2,764,125 1.2%
Tyco International is a diversified manufacturing company. TYC produces
fire protection systems, pipes, fittings, and other flow control equipment.
- ------------------------------------------------------------------------------------------------------------------------------------
Drugs - 1.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Merck & Company, Inc. 28,100 1,615,750 0.7%
Merck is the world's largest pharmaceutical company and the largest U.S.
pharmacy benefits management company.
R P Scherer Corp., DE 26,400 1,174,800 0.5%
R.P. Scherer develops drug delivery systems and manufactures soft gel capsules.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Drugs 2,790,550
<PAGE>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES, continued Shares Value Net Assets
Electronic Components/Semiconductors - 12.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Analog Devices, Inc.* 94,500 $ 3,413,812 1.5%
Analog Devices designs, manufactures and sells high performance linear and
mixed signal integrated circuits used in analog and
digital signal processing applications.
Applied Materials, Inc. 99,000 4,962,375 2.2%
Applied Materials develops, manufactures, sells and services semiconductor
wafer fabrication equipment to the semiconductor wafer
industry.
Cirrus Logic Corporation 47,700 2,009,362 0.9%
Cirrus Logic is a semiconductor company focused primarily on the markets
for graphics chips, wireless communications and mass storage.
Intel Corp. 135,500 9,468,063 4.1%
Intel is the world's leading manufacturer of microprocessors,
memory chips, controllers and peripherals.
LSI Logic Corporation 62,900 2,964,163 1.3%
LSI Logic Corporation manufactures application-specified integrated
circuits and provides related design and technology services.
SGS-Thomson Microelectronics N.V.* 48,700 2,203,675 1.0%
SGS Thomson Microelect designs, develops, manufactures and markets a
broad range of semiconductor integrated circuits and discrete
devices used in a wide variety of microelectronic applications.
Xilinx, Inc. 78,100 3,592,600 1.6%
Xilinx is the world's largest supplier of programmable logic devices.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Electronic Components/Semiconductors 28,614,050
- ------------------------------------------------------------------------------------------------------------------------------------
Electronics - 6.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Molex, Inc., Class A 36,718 1,129,079 0.5%
Molex manufactures electronic connectors and interconnection systems,
ribbon cable, switches and application tooling. Motorola, Inc. 103,100 6,765,938 2.9%
Motorola manufactures cellular telephone, paging and specialized
mobile radio equipment. Motorola is also a major supplier of
semiconductors, circuits, controls and related data communications equipment.
Texas Instruments, Inc. 98,100 6,695,325 2.9%
Texas Instruments manufactures semiconductor integrated circuits and
sub-assemblies, defense electronics and digital products.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Electronics 14,590,342
<PAGE>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES, continued Shares Value Net Assets
Entertainment - 4.8%
- ------------------------------------------------------------------------------------------------------------------------------------
British Sky Broadcasting Group, PLC Sponsored ADR 100,500 $ 3,592,875 1.6%
British Sky Broadcasting is the leading pay television broadcasting
service in the United Kingdom with over 4.2 million subscribers.
Capital Cities/ABC, Inc. 30,300 3,594,337 1.6%
Capital Cities conducts business through five operating groups:
ABC Television Network Group, Broadcast Group, Publishing Group,
Cable and International Broadcast Group, and Multimedia Group.
Hospitality Franchise System, Inc.* 61,600 3,773,000 1.6%
Hospitality Francise is the world's largest hotel franchiser
with four nationally recognized brand names including Days Inn,
Ramada, Howard Johnson andSuper 8.
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Total Entertainment 10,960,212
- ------------------------------------------------------------------------------------------------------------------------------------
Food & Restaurants - 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
McDonalds Corporation 500 20,500 0.0%
Mc Donalds Corporation operates 3,856
fast-food restaurants and franchises 9,237 restaurants in 65 countries.
- ------------------------------------------------------------------------------------------------------------------------------------
Funeral Services - 1.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Loewen Group, Inc. 92,100 3,688,317 1.6%
Loewen Group is the second largest funeral service corporation in
North America.
- ------------------------------------------------------------------------------------------------------------------------------------
Health Maintenance Organizations - 1.1%
- ------------------------------------------------------------------------------------------------------------------------------------
United HealthCare Corporation 47,200 2,507,500 1.1%
United HealthCare owns and manages health maintenance organizations in
23 states
and offers reinsurance coverage to HMO's and others.
- ------------------------------------------------------------------------------------------------------------------------------------
Insurance - 3.3%
- ------------------------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 31,500 2,657,812 1.2%
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 in 130 companies.
MGIC Investment Corp. 65,900 3,748,063 1.6%
MGIC provides private mortgage insurance coverage to thrifts,
mortgage bankers and brokers, commercial bankers and other
lending institutions.
<PAGE>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES, continued Shares Value Net Assets
Insurance, continued
- ------------------------------------------------------------------------------------------------------------------------------------
PMI Group, Inc. 24,900 $ 1,195,200 0.5%
PMI Group provides private mortgage insurance coverage to thrifts,
mortgage bankers and brokers, commercial banks, and lending institutions.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Insurance 7,601,075
- ------------------------------------------------------------------------------------------------------------------------------------
Mainframes - 2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Hewlett Packard Co. 53,100 4,918,388 2.1%
Hewlett-Packard manufactures computers, calculators, electronic test and
measurement analysis instruments.
- ------------------------------------------------------------------------------------------------------------------------------------
Medical Instruments - 3.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Medtronic, Inc. 112,200 6,479,550 2.8%
Medtronic manufacturers pacemakers, heart valves, neurological stimulation
devices, therapeutic catheters and blood oxygenators. MDT
markets its products through hospitals, doctors, and other medical
institutions throughout the world.
St. Jude Medical, Inc.* 37,000 1,970,250 0.9%
St. Jude Medical manufactures and markets biomedical devices for
cardiovascular and vascular applications.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Medical Instruments 8,449,800
- ------------------------------------------------------------------------------------------------------------------------------------
Medical Services - 1.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Cardinal Health, Inc. 55,900 2,871,862 1.2%
Cardinal Health Incorporated is a leading wholesale drug distributor in
the United States.
- ------------------------------------------------------------------------------------------------------------------------------------
Mortgage and Related Services - 3.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Association 13,600 941,800 0.4%
Federal Home Loan Mortgage buys and holds mortgages from lenders
through the United States and sells guaranteed mortgage-backed
securities.
Federal National Mortgage Association 45,340 4,755,032 2.1%
Federal National Mortgage provides supplemental assistance to the
secondary market in guaranteed and insured home mortgages.
Finova Group Inc. 62,400 2,823,600 1.2%
Finova Group provides collateralized financing in focused niche markets.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Mortgage and Related Services 8,520,432
<PAGE>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES, continued Shares Value Net Assets
Natural Gas Products and Pipelines - 1.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Enron Corp. 124,710 $ 4,286,906 1.9%
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 - 4.8%
- ------------------------------------------------------------------------------------------------------------------------------------
3Com Corporation 93,100 4,375,700 1.9%
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.* 44,050 3,463,431 1.5%
Cabletron manufactures local area network products and provides design and
support services for local area network systems.
U.S. Robotics, Inc. 34,600 3,200,500 1.4%
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 11,039,631
- ------------------------------------------------------------------------------------------------------------------------------------
Office Equipment/Supplies - 1.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Office Depot, Inc.* 152,347 4,360,933 1.9%
Office Depot operates the largest
chain of office product warehouse stores with locations throughout the United
States.
- ------------------------------------------------------------------------------------------------------------------------------------
Outpatient - Home Care - 1.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Healthsouth Corporation 84,500 2,207,563 1.0%
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 - 0.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Pfizer, Inc. 32,4001,858,950 0.8%
Pfizer is a major producer of pharmacuticals, hospital products,
animal health lines, consumer products and specialty chemicals and
minerals.
<PAGE>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES, continued Shares Value Net Assets
pecialty Chains - 0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
CUC International, Inc. 34,000 $ 1,177,250 0.5%
CUC, a consumer services company, provides over 29 million members
with access to discount prices, product comparison information,
and convenient purchasing
for home shopping, travel, insurance, auto, and dining services.
- ------------------------------------------------------------------------------------------------------------------------------------
Technology - 4.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc.* 82,800 6,417,000 2.8%
Cisco Systems is the leading supplier of multimedia and multinetworking
products including routers, bridges, terminal servers and
network management products.
Informix Corporation 118,600 3,454,225 1.5%
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 9,871,225
- ------------------------------------------------------------------------------------------------------------------------------------
Telephone Communications - 10.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Andrew Corporation 57,750 2,439,937 1.1%
Andrew Corporation is an international supplier of communications
equipment and services to commercial and government markets.
Ericsson, (L.M.) Telephone Company, ADR 414,800 8,859,869 3.9%
Ericsson is one of the world's leading telecommunications equipment
suppliers and the preeminent supplier in the cellular equipment
market.
Frontier Corporation 79,400 2,143,800 0.9%
Frontier Corporation is a telecommunications services provider with
70% of revenues in long distance (mostly small and mid sized
commerical accounts) and 30% in local and cellular in 22 markets
including Rochester. Frontier merged with ALC Communications on
August 16, 1995, creating the fifth largest long distance
carrier after AT%T,
MCI Communications, Sprint and Worldcom.
Glenayre Technologies, Inc. 33,300 2,139,525 0.9%
Glenayre Technologies is a leading worldwide manufacturer of
infrastructure equipment for paging and other wireless
telecommunications markets.
Nokia Corporation Sponsored ADR 160,600 8,953,450 3.9%
Nokia Corporation supplies advanced telecommunications
infrastructure systems and equipment for use in
mixed and mobile phone networks. Nokia is also a leading supplier
of color televisions, computer monitors and car speakers.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Telephone Communications 24,536,581
<PAGE>
PIC GROWTH PORTFOLIO
Statement of Net Assets as of October 31, 1995
Percent of
EQUITY SECURITIES, continued Shares Value Net Assets
Transportation Services - 0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Fritz Companies, Inc.* 35,400 $ 1,239,000 0.5%
Fritz Companies provides global integrated logistics information
services and outsourcing to companies involved in the worldwide
movement of goods.
- ------------------------------------------------------------------------------------------------------------------------------------
Total Equity Securities (Cost $167,900,394) 224,392,777 97.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements - 2.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Lehman Government Securities, Inc., 5.56%, due 11/1/95
(Collateralized by $5,654,065 U.S. Treasury Note, 7.5%,
due 1/31/97) (Cost $5,487,800) 5,487,800 5,487,800 2.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost $173,388,194) 229,880,577 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS - 0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Cash 70
Dividends and interest receivables 108,793
Deferred organization costs 15,009
Prepaid expenses 2,395
Other assets 23,317
- ------------------------------------------------------------------------------------------------------------------------------------
Total Other Assets 149,584 0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES - (0.1%)
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued expenses 187,913
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 187,913 (0.1%)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $229,842,248 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
*Non-income producing security.
</FN>
</TABLE>
The above descriptions of portfolio companies are furnished by management solely
for the general information of investors.
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PIC GROWTH PORTFOLIO
Statement of Operations Year ended October 31, 1995
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Income:
- --------------------------------------------------------------------------------
<S> <C>
Dividends $ 1,477,752
Interest 591,826
- ------------------------------------------------------------------------------------------------------------------------------------
Total income 2,069,578
====================================================================================================================================
Expenses:
- ------------------------------------------------------------------------------------------------------------------------------------
Investment advisory fee (Note 3) 1,536,297
Administration fee (Note 3) 192,037
Accounting services fee 83,208
Custody fee 45,736
Auditing fees 20,999
Trustees' fees 20,067
Legal fees 4,997
Insurance 8,262
Amortization of organization costs 9,997
Miscellaneous 20,600
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 1,942,200
Less, reimbursement/waiver from Advisor (Note 3) (21,828)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,920,372
====================================================================================================================================
Net investment income 149,206
====================================================================================================================================
NET REALIZED & UNREALIZED GAIN ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain from security transactions 3,599,901
Change in net unrealized appreciation of investments 36,436,183
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain on investments 40,036,084
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $40,185,290
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PIC GROWTH PORTFOLIO
Statement of Changes in Net Assets
INCREASE IN NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------------------
Year Year
ended ended
From operations: October 31, 1995 October 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment income $ 149,206 $ 161,976
Net realized gain (loss) on investments 3,599,901 (1,976,871)
Change in unrealized appreciation of investments 36,436,183 4,623,699
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 40,185,290 2,808,804
====================================================================================================================================
Transactions in Interests:
Contributions by Holders 37,495,575 40,261,285
Withdrawals by Holders (25,350,557) (26,569,240)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from transactions in interests 12,145,018 13,692,045
====================================================================================================================================
Total increase in net assets 52,330,308 16,500,849
====================================================================================================================================
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Beginning of year 177,511,940 161,011,091
- ------------------------------------------------------------------------------------------------------------------------------------
End of year $229,842,248 $177,511,940
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
PIC GROWTH PORTFOLIO
Notes to Financial Statements October 31, 1995
1 -- ORGANIZATION
- --------------------------------------------------------------------------------
PP. IP. 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 year ended October 31, 1995, PIC
received $1,514,469
<PAGE>
PIC GROWTH PORTFOLIO
Notes to Financial Statements, continued
in fees from the Portfolio, after deducting the reimbursement of $21,828.
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 $192,037 for the year ended October 31, 1995.
4 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
During the year ended October 31, 1995, purchases and sales of investment
securities, other than short-term obligations, were $123,203,935 and
$100,818,900, respectively. The cost of securities for federal income tax
purposes was $173,416,242. The aggregate gross unrealized appreciation and
depreciation of portfolio securities, based on cost for federal income tax
purposes, was as follows:
<TABLE>
<S> <C>
Unrealized appreciation $59,589,667
Unrealized depreciation (3,125,332)
- --------------------------------------------------------------------------------
Net unrealized appreciation $56,464,335
================================================================================
</TABLE>
5 - SELECTED RATIO DATA
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Year Year Year
ended ended ended
October 31, 1995 October 31, 1994 October 31, 1993
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
<S> <C> <C> <C>
Operating expenses* 1.00% 1.00% 1.00%
Net investment income* 0.08% 0.10% 0.17%
Portfolio turnover rate 54.89% 68.26% 43.20%
<FN>
++Annualized.
*Net of expense reimbursements equivalent to 0.01%, 0.01% and 0.09% of average
net assets, respectively.
</FN>
</TABLE>
<PAGE>
PIC GROWTH PORTFOLIO
Independent Auditor's Report
To the Board of Trustees of
and the Holders of Interest in,
PIC Growth Portfolio
We have audited the accompanying statement of assets and liabilities of
PIC Growth Portfolio as of October 31, 1995, the related statement of
operations for the year then ended and the statement of changes in net assets
for each of the two years in the period then ended. These financial statements
are the responsibility of the Portfolio's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
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 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 October 31, 1995 by correspondence with
the custodian. 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 referred to above present fairly,
in all material respects, the financial position of PIC Growth Portfolio as of
October 31, 1995, the results of its operations, the changes in its net assets
for the periods indicated, in conformity with generally accepted accounting
principles.
McGladrey & Pullen, LLP
New York, New York
November 22, 1995
<PAGE>
PIC ENDEAVOR GROWTH FUND
Trustees and Officers
RUSTEES AND OFFICERS - PP. IP. C INVESTMENT TRUST
- --------------------------------------------------------------------------------
Jeffrey J. Miller, Trustee and President
Jettie M. Edwards, Trustee
Bernard J. Johnson, Trustee
Jeffrey D. Lovell, Trustee
Wayne H. Smith, Trustee
Thad M. Brown, Vice President, Secretary and Treasurer
TRUSTEES AND OFFICERS - PP. IP. C GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
Jeffrey J. Miller, Trustee and President
Richard N. Frank, Trustee
James Clayburn LaForce, Trustee
Angelo R. Mozilo, Trustee
Bernard J. Johnson, Trustee Emeritus
Thad M. Brown, Vice President, Secretary and Treasurer
LEGAL COUNSEL - PP. IP. C INVESTMENT TRUST
- --------------------------------------------------------------------------------
Shereff, Friedman, Hoffman & Goodman
LEGAL COUNSEL - PP. IP. C GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
Heller, Ehrman, White & McAuliffe
INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
McGladrey & Pullen, LLP
This report is intended for the information of shareholders of PP. IP. C
Endeavor Growth Fund and should not be used as sales literature unless preceded
or accompanied by a current prospectus.
