PROVIDENT INVESTMENT COUNSEL
------
MUTUAL
FUNDS
------
GROWTH FUND I
SMALL COMPANY GROWTH FUND I
Semi-Annual Report April 30, 1999
Provident Investment Counsel
Investing in growth since 1951
<PAGE>
CONTENTS
3 President's Letter
4 Our Philosophy
5 Inverview with Provident Managers
THE FUND
9 Statements of Assets and Liabilities
10 Statements of Operations
12 Statements of Changes in Net Assets
14 Financial Highlights
16 Notes to Financial Statements
THE PORTFOLIO'S
20 Statements of Net Assets
36 Statements of Operations
38 Statements of Changes in Net Assets
40 Selected Ratio Data
42 Notes to Financial Statements
ITEMS OF INTEREST
THE GROWTH STYLE OF INVESTMENT MANAGEMENT ENJOYS A LEADERSHIP ROLE. Our
strong stock selection and sector allocation in the Funds were rewarded by
positive performance.
ELECTRONIC TECHNOLOGY, UTILITIES AND PRODUCER MANUFACTURING HOLDINGS have
been the significant contributors to Fund performance over the last few
months.
OUR WEBSITE ADDRESS IS:
www.provnet.com
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DEAR SHAREHOLDER,
All of the PIC Mutual Funds produced positive results for the six months
ending April 30, 1999 (more detailed information is available on the following
pages). The Growth Fund led the way due to its concentration in larger holdings.
The Small Company Fund made a strong recovery from the lows last September and
October only to lose ground again during the early part of this year.
The fundamentals of our small company holdings remained very compelling and
we were pleased to see some positive performance in May and June. Shares of the
Mid Cap Fund have enjoyed very positive returns thus far in 1999 as the market
has broadened from favoring only the largest issues.
Due to April's disappointing results, there was some media discussion about
a rotation by investors out of high quality growth shares into "cheaper"
cyclical company shares. We believe this move is only temporary, precipitated by
several factors, including surprising economic growth and better than expected
profit growth by many cyclical issues.
It is our view that the consumer-driven U.S. economy is enjoying robust
growth with pleasantly strong first quarter earnings. However, on closer review,
we find that many of the earnings growth expectations had been downgraded by
savvy corporate management teams of cyclical issues and that overly optimistic
future earnings may not be attainable. While cyclical stocks might fare well for
several months, it is ill-conceived to believe that a sea change has taken place
with value/cyclical stocks outperforming for a protracted period of time.
During May and in early June, we have been pleased to see growth shares
holding their own once again and Small Company shares in particular, performing
quite well. The market-broadening theme continues, allowing some lagging issues
to catch up, providing a firm and broad base for the market, which should
benefit all investors. We fully expect to see growth stocks once again
outperform as Y2K worries and continued slower
3
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SHAREHOLDER LETTER, CONTINUED
growth in most overseas markets impact investors' perceptions of the
sustainability of cyclical company earnings.
We appreciate your continued confidence in Provident Investment Counsel.
Sincerely,
/s/ Douglass B. Allen
Douglass B. Allen
President, PIC Investment Trust
June 17, 1999
OUR PHILOSOPHY
+ Focused, fundamental research, properly controlled, adds value.
+ Sustainable earnings growth is the most important contributor to
long-term stock appreciation.
+ Emphasis on strong financial characteristics ensures focus on growth
and quality.
+ Investment style consistency is critical to superior long-term
investment results.
4
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INTERVIEW WITH PROVIDENT MANAGERS
WHAT INDUSTRY SECTORS PERFORMED POSITIVELY FOR THE VARIOUS FUNDS' EQUITY
HOLDINGS?
Growth
+ Utilities
+ Electronic Technology
+ Producer Manufacturing
Small Company
+ Electronic Technology
+ Technology Services
+ Utilities
Q April proved to be a very cruel month to investors owning high-quality,
large cap growth stocks. Investors abandoned these companies in a mad rush
to buy "cheaper" cyclical stocks. To what do you attribute this shift?
A As stated in our letter to shareholders there are a few themes that have
driven what we believe is a temporary shift toward cyclical issues such as:
1) A strong consumer-driven economy with better than expected growth
domestically, coupled with surprising growth internationally. However, we
continue to see evidence of recession in many countries outside the U.S.,
including Japan and possibly Germany in the near future.
2) Better than expected profit growth domestically by many cyclical issues
driven by savvy management teams that successfully lowered Wall Street
expectations for their earnings. Many of these cyclical issues were coming
off a very disappointing 1998 that made year over year comparisons very
easy to beat.
3) During the fall of 1998, the "flight to quality" may have caused the
valuations of Provident Growth and Balanced Fund equity holdings to be
momentarily over-extended. In light of this, it is understandably a needed
step for our stocks to pause and catch their breath, acclimating to the
strong move they have made.
Q During the difficult month of April, one of the bright spots was the
apparent shift in leadership as Small Company stocks outperformed those of
larger issues. What factors caused this change?
A This performance leadership actually continued in May--the second month in
a row where small cap stocks outperformed large cap equities. We are also
pleased to report it was a month where your Fund also did well. One has to
go back several years to find a similar time when small stocks have
outperformed large
5
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INTERVIEW WITH PROVIDENT MANAGERS, CONTINUED
cap stocks in successive months. While mindful that "one Robin doesn't make
it Spring," it certainly is encouraging. We have made several adjustments
to the portfolio since the February/March period and have now seen the
beneficial impact on the returns.
The shift favoring small cap stocks is in keeping with our expectations. As
investors become more confident about a more rapid growth scenario for the
economy, they are willing to take on added risk. As the Year 2000
approaches, savvy investors focus on the new economy--defined as an era
when communications technology creates global competition and people work
with their brains instead of their hands. This trend towards technology
instead of industrial stocks is clearly showing up in the flow of funds
data, where mutual fund investors are starting to put new money into small
cap funds, which favor technology stocks.
Q To what do you attribute the recent positive performance by the Small
Company Fund?
A We believe there are several factors that caused this positive performance.
In the month of May, for example, the Fund's performance can be attributed
to both strong stock selection and sector allocation in the health services
area, electronic technology, and consumer services. Performance clearly
broadened out to include quality small companies that demonstrated positive
earnings, as opposed to the narrow "Internet only" performance in the first
quarter.
Q During the latter part of May, the markets in general have been rather
choppy, without clear direction. What caused this recent volatility?
A If one is looking for a reason for the recent market weakness, one needs to
look at the Federal Reserve's action on May 18, signaling to investors
their bias towards a tighter monetary
6
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policy in the future. This followed the release of a higher than expected
CPI number for the month of April. Long-term interest rates, which had
risen to close to 6% prior to the Fed's announcement, quickly rallied to
the 5.75% area, only to weaken again last week to a 5.86% level. This
upward bias has caused investor concern about valuations of the general
stock market, should interest rates continue to rise and cross the
psychologically important 6% level. Another exacerbating factor has been
that, for the first time this year, investors are starting to question the
high valuations afforded to Internet stocks. Many of these high-flying
stocks are off over 50% from their April highs. This uncertainty has
spilled over into the general technology sector. As in April,
Pharmaceutical stocks continued to be weak, although rallying sharply on
the last day of the trading month.
More recently, in the middle of June as we write this commentary, we have
seen positive news with regard to inflationary pressures. As an example,
recently released Consumer Price Index numbers were at lower than expected
levels, easing investors' worst fears of a larger increase in interest
rates by the Federal Reserve.
Q What is your outlook for the markets in general for the remainder of the
year?
A The shift favoring cyclical stocks has slowed in recent weeks. Our analysis
of reported earnings shows that the rates of change in revenue and earnings
growth of some now high-flying cyclical stocks are still quite weak over
several quarters. These factors question the sustainability of their recent
price appreciation. This was evident during the last week of May when
numerous cyclical stocks were quite weak. To illustrate, Alcoa was down
8.3%; Caterpillar was off 8.0%; International Paper was down 9.0%.
As mentioned earlier, we made a few recent changes to the portfolio, which
we believe will be rewarding in the near future, particularly if the
economy continues to stay stronger than we
7
<PAGE>
INTERVIEW WITH PROVIDENT MANAGERS, CONTINUED
had expected at the beginning of the year. We have added Waste Management
to the portfolio along with Schlumberger. We have continued to trim our
exposure to health technology and have reduced our exposure to the finance
sector by selling our holding of Fannie Mae. Should interest rates stay
firm or rise from these levels, then selected financial stocks will most
likely under-perform the general market.
While we cannot predict future results, if the first part of June is any
indicator, we may expect a continued improvement in performance, and as the
market broadens out, the Funds with their well balanced portfolios may do
very well from a relative performance perspective.
8
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- ----------------------------
PROVIDENT INVESTMENT COUNSEL STATEMENTS OF ASSETS AND LIABILITIES
MUTUAL FUNDS AS OF APRIL 30, 1999
- ----------------------------
GROWTH SMALL COMPANY
FUND I GROWTH FUND I
================================================================================
ASSETS
Investment in Portfolios, at value $165,406,735 $27,262,656
Receivables:
Fund shares sold 3,994 -
Prepaid expenses 84,270 13,609
- --------------------------------------------------------------------------------
Total Assets 165,494,999 27,276,265
================================================================================
LIABILITIES
Payables:
Investments in Portfolios purchased 3,994 -
Accrued expenses 21,236 29,130
Deferred trustees' compensation 11,875 9,402
- --------------------------------------------------------------------------------
Total Liabilities 37,105 38,532
================================================================================
NET ASSETS
Applicable to 8,066,031 and 2,873,326 shares
of beneficial interest outstanding $165,457,894 $27,237,733
================================================================================
NET ASSET VALUE PER SHARE $ 20.51 $ 9.48
================================================================================
SOURCE OF NET ASSETS
- --------------------------------------------------------------------------------
Paid-in capital $ 99,094,502 $24,927,026
Accumulated net investment loss (544,368) (183,853)
Accumulated net realized gain (loss) on investments 12,862,698 (4,647,642)
Net unrealized appreciation of investments 54,045,062 7,142,202
- --------------------------------------------------------------------------------
Net Assets $165,457,894 $27,237,733
================================================================================
Unaudited. See Notes to Financial Statements.
9
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- ----------------------------
PROVIDENT INVESTMENT COUNSEL STATEMENTS OF OPERATIONS
MUTUAL FUNDS SIX MONTHS ENDED APRIL 30, 1999
- ----------------------------
GROWTH SMALL COMPANY
FUND I GROWTH FUND I
================================================================================
INVESTMENT INCOME
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS FROM PORTFOLIOS $ (319,274) $ (108,674)
================================================================================
EXPENSES
- --------------------------------------------------------------------------------
Administration fees (Note 3) 161,581 35,726
Trustees' fees 3,456 3,455
Auditing fee 6,101 5,109
Legal fees 4,839 2,335
Transfer agent's fee 58,426 15,111
Custody and accounting services fees 2,977 2,977
Report to shareholders 6,303 6,303
Registration fees 13,754 8,263
Miscellaneous 4,863 4,717
- --------------------------------------------------------------------------------
Total expenses 262,300 83,996
Less waiver by Provident Investment
Counsel, Inc. (Note 3) (69,625) (20,354)
- --------------------------------------------------------------------------------
Net expenses 192,675 63,642
================================================================================
NET INVESTMENT LOSS (511,949) (172,316)
================================================================================
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
- --------------------------------------------------------------------------------
Net realized gain on investments
from Portfolios 12,890,776 31,705
Net unrealized appreciation of
investments from Portfolios 18,731,390 5,231,071
- --------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 31,622,166 5,262,776
================================================================================
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $31,110,217 $5,090,460
================================================================================
Unaudited. See Notes to Financial Statements.
10
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11
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PROVIDENT INVESTMENT COUNSEL STATEMENTS OF CHANGES IN NET ASSETS
MUTUAL FUNDS
- ----------------------------
=====================================================================
INCREASE (DECREASE) IN NET ASSETS
- ---------------------------------------------------------------------
FROM OPERATIONS:
- ---------------------------------------------------------------------
Net investment loss
Net realized gain (loss) on investments from Portfolios
Net unrealized appreciation (depreciation) of investments
from Portfolios
- ---------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations
=====================================================================
DISTRIBUTIONS TO SHAREHOLDERS:
From net realized gains
=====================================================================
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Purchases of 653,826; 4,057,730; 451,626 and 3,336,041 shares,
respectively
Reinvestment of 512,075; 916,270; 0 and 0 shares, respectively
Redemptions of 559,380; 1,924,166; 1,246,975 and 2,795,508
shares, respectively
- ---------------------------------------------------------------------
Net increase (decrease) in net assets resulting from share
transactions
=====================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS
=====================================================================
NET ASSETS
- ---------------------------------------------------------------------
Beginning of period
- ---------------------------------------------------------------------
End of period
- ---------------------------------------------------------------------
*Unaudited.
See Notes to Financial Statements.
12
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GROWTH SMALL COMPANY
FUND I GROWTH FUND I
===============================================================
- ---------------------------------------------------------------
Six Months Year Six Months Year
ended ended ended ended
April 30, 1999* Oct. 31, 1998 April 30, 1999* Oct. 31, 1998
- ---------------------------------------------------------------
$ (511,949) $ (725,961) $ (172,316) $ (396,341)
12,890,776 9,563,770 31,705 (2,219,078)
18,731,390 14,964,547 5,231,071 (4,097,915)
- ---------------------------------------------------------------
31,110,217 23,802,356 5,090,460 (6,713,334)
===============================================================
(9,515,184) (14,604,225) -- --
===============================================================
13,240,136 63,028,132 4,141,188 31,788,999
9,201,984 13,890,657 -- --
(10,986,928) (33,710,059) (11,731,465) (26,351,862)
- ---------------------------------------------------------------
11,455,192 43,208,730 (7,590,277) 5,437,137
===============================================================
33,050,225 52,406,861 (2,499,817) (1,276,197)
===============================================================
- ---------------------------------------------------------------
132,407,669 80,000,808 29,737,550 31,013,747
- ---------------------------------------------------------------
$165,457,894 $132,407,669 $27,237,733 $29,737,550
- ---------------------------------------------------------------
13
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- ----------------------------
PROVIDENT INVESTMENT COUNSEL FINANCIAL HIGHLIGHTS
MUTUAL FUNDS
- ----------------------------
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===============================================================================================
GROWTH FUND I
- -----------------------------------------------------------------------------------------------
Six Months Year ended October 31,
ended ---------------------------------------------
April 30, 1999* 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $17.75 $18.14 $16.25 $14.25 $11.70 $11.60
- -----------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment loss (0.06) (0.06) (0.15) (0.06) (0.02) --
Net realized and
unrealized gain
on investments 4.10 3.04 3.98 2.06 2.57 0.10
- -----------------------------------------------------------------------------------------------
Total from investment
operations 4.04 2.98 3.83 2.00 2.55 0.10
Less distributions:
From net realized gains (1.28) (3.37) (1.94) -- -- --
- -----------------------------------------------------------------------------------------------
Net asset value,
end of period $20.51 $17.75 $18.14 $16.25 $14.25 $11.70
===============================================================================================
Total return 23.78%+ 19.60% 26.44% 14.04% 21.79% 0.86%
===============================================================================================
Ratios/supplemental data:
Net assets, end of period
(millions) $165.5 $132.4 $ 80.0 $116.1 $131.1 $102.3
- -----------------------------------------------------------------------------------------------
Ratios to average net assets:++
Expenses 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%
Net investment loss (0.66%) (0.57%) (0.38%) (0.28%) (0.17%) N/A
- -----------------------------------------------------------------------------------------------
</TABLE>
* Unaudited.
+ Not annualized.
++ Annualized for periods of less than one year. Includes the Fund's share of
expenses, net of fee waivers and expense reimbursements, allocated from the
respective Portfolio. If the expense reimbursements and waivers, with respect to
the Fund and the Portfolio, had not been made, the ratio of expenses to average
net assets would have been 1.34%, 1.39%, 1.35%, 1.30%, 1.30% and 1.53%,
respectively.
See Notes to Financial Statements.
14
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PROVIDENT INVESTMENT COUNSEL FINANCIAL HIGHLIGHTS,
MUTUAL FUNDS CONTINUED
- ----------------------------
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
====================================================================================================
SMALL COMPANY
GROWTH FUND I
- ----------------------------------------------------------------------------------------------------
Six Months Year Year June 28, 1996**
ended ended ended through
April 30, 1999 Oct. 31, 1998 Oct. 31, 1997 Oct. 31, 1996
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $ 8.11 $ 9.91 $ 9.48 $10.00
- ----------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment loss (0.06) (0.10) (0.05) (0.03)
Net realized and
unrealized gain (loss)
on investments 1.43 (1.70) 0.48 (0.49)
- ----------------------------------------------------------------------------------------------------
Total from investment
operations 1.37 (1.80) 0.43 (0.52)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.48 $ 8.11 $ 9.91 $ 9.48
====================================================================================================
Total return 16.89%+ (18.16%) 4.54% (5.20%)+
====================================================================================================
Ratios/supplemental data:
Net assets, end of period
(millions) $ 27.2 $ 29.7 $ 31.0 $ 5.2
- ----------------------------------------------------------------------------------------------------
Ratios to average net assets:++
Expenses 1.45% 1.45% 1.45% 1.43%
Net investment loss (1.22%) (1.13%) (0.96%) (0.91%)
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Unaudited.
** Commencement of operations.
+ Not annualized.
++ Annualized for periods of less than one year. Includes the Fund's share of
expenses, net of fee waivers and expense reimbursements, allocated from the
respective Portfolio. If the expense reimbursements and waivers, with respect to
the Fund and the Portfolio, had not been made, the ratio of expenses to average
net assets would have been 1.59%, 1.49%, 1.61% and 4.03%, respectively.
See Notes to Financial Statements.
15
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- ----------------------------
PROVIDENT INVESTMENT COUNSEL NOTES TO FINANCIAL STATEMENTS
MUTUAL FUNDS
- ----------------------------
================================================================================
1 - ORGANIZATION
- --------------------------------------------------------------------------------
PIC Investment 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 Trust
currently offers eleven separate series: Provident Investment Counsel Balanced
Fund A (formerly known as Provident Investment Counsel Pinnacle Balanced Fund),
Provident Investment Counsel Balanced Fund B, Provident Investment Counsel
Growth Fund I (formerly known as Provident Investment Counsel Growth Fund),
Provident Investment Counsel Growth Fund A (formerly known as Provident
Investment Counsel Pinnacle Growth Fund), Provident Investment Counsel Growth
Fund B, Provident Investment Counsel Small Company Growth Fund I (formerly known
as Provident Investment Counsel Small Company Growth Fund), Provident Investment
Counsel Small Company Growth Fund A (formerly known as Provident Investment
Counsel Pinnacle Small Company Growth Fund), Provident Investment Counsel Small
Company Growth Fund B, Provident Investment Counsel Small Cap Growth Fund I
(formerly known as Provident Investment Counsel Small Cap Growth Fund),
Provident Investment Counsel Mid Cap Fund A (formerly known as Provident
Investment Counsel Pinnacle Mid Cap Fund), and Provident Investment Counsel Mid
Cap Fund B (each a "Fund") (prior to June 1998, the Provident Investment Counsel
Funds were known as the PIC Funds). Each Fund invests substantially all of its
assets in the respective Portfolio, a separate registered management investment
company having the same investment objective as the respective Fund. The
financial statements of the applicable Portfolios are included elsewhere in this
report and should be read in conjunction with these financial statements. The
financial statements of the Provident Investment Counsel Balanced Fund A and B,
Provident Investment Counsel Growth Fund A and B, Provident Investment Counsel
Mid Cap Fund A and B, Provident Investment Counsel Small Company Growth Fund A
and B, and the Provident Investment Counsel Small Cap Growth Fund I, are in
separate reports.
================================================================================
2 - SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following is a summary of significant accounting policies
consistently followed by the Provident Investment Counsel Growth Fund I and
16
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- ----------------------------
PROVIDENT INVESTMENT COUNSEL NOTES TO FINANCIAL STATEMENTS,
MUTUAL FUNDS CONTINUED
- ----------------------------
================================================================================
the Provident Investment Counsel Small Company Growth Fund I (collectively
the "Funds"). These policies are in conformity with generally accepted
accounting principles.
A. Investment Valuation. The Funds reflect their investments in the
respective Portfolios at their proportionate interest in the value of
the Portfolios' net assets. Valuation of securities by the Portfolios
is discussed at Note 2A of the Portfolios' Notes to Financial
Statements.
B. Investment Income and Dividends to Shareholders. The Funds earn
income, net of the expenses of the Portfolios, daily on their
investment in the Portfolios. All net investment income and realized
and unrealized gains or losses on investments of the Portfolios are
allocated pro rata among the Funds and the other Holders of Interests
in the Portfolios. Dividends, if any, are paid annually to
shareholders of the Funds and recorded on the ex-dividend date.
C. Federal Income Taxes. The Funds intend to comply with the requirements
of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to their
shareholders. Therefore, no federal income tax provision is required.
D. Accounting Estimates. In preparing financial statements in conformity
with generally accepted accounting principles, management makes
estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements, as well as
the reported amounts of revenues and expenses during the period.
Actual results could differ from those estimates.
================================================================================
3 - TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
The Trust has entered into administration agreements with Provident
Investment Counsel, Inc. ("PIC") and Investment Company Administration LLC
("ICA"), pursuant to which agreements certain employees of these entities serve
as officers and/or trustees of the Trust and the Portfolios. PIC and ICA also
provide management services necessary for the operations of the Trust and the
Portfolios and furnish office facilities. PIC receives a fee for its services to
the Funds at the rate of 0.20% of the average daily net assets of the Funds.
17
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- ----------------------------
PROVIDENT INVESTMENT COUNSEL NOTES TO FINANCIAL STATEMENTS,
MUTUAL FUNDS CONTINUED
- ----------------------------
================================================================================
PIC has voluntarily taken to limit the Funds' expenses, including those
expenses allocated from the Portfolios, to the following levels:
Growth Fund I 1.25%
Small Company Growth Fund I 1.45%
The percentages are based on the Funds' average daily net assets. Fees
waived and expenses reimbursed by PIC for the six months ended April 30, 1999,
were as follows:
Waived
Fees
------
Growth Fund I $69,625
Small Company Growth Fund I 20,354
ICA receives an annual fee for its services of $15,000 from each of the
Funds.
First Fund Distributors, Inc. (the "Distributor"), 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.
The Distributor is an affiliate of ICA.
On December 19, 1995, the Trust approved a Deferred Compensation Plan for
Trustees (the "Plan"). Trustees are entitled to receive $2,500 per quarter and
$500 per meeting attended, which is allocated among the Funds. Trustees can
elect to receive payment in cash or defer payments provided for in the Plan. If
a trustee elects to defer payment, the Plan provides for the creation of a
deferred payment account (phantom share account). This account accumulates the
deferred fees earned and the value of the account is adjusted at the end of each
quarter to reflect a value which would have been earned if the account had been
invested in designated investments. The Funds recognize as trustee expense
amounts accrued as meetings are attended plus the change in the value of the
phantom share account determined on a quarterly basis.
18
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- ----------------------------
PROVIDENT INVESTMENT COUNSEL NOTES TO FINANCIAL STATEMENTS,
MUTUAL FUNDS CONTINUED
- ----------------------------
================================================================================
4 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
Additions and reductions in the investments in the respective Portfolios
for the six months ended April 30, 1999, were as follows:
Additions Reductions
--------- ----------
Growth Fund I $13,270,136 $11,526,794
Small Company Growth Fund I 4,146,188 11,797,200
As of April 30, 1999 the Funds owned the following percentages of the
Portfolios listed below:
Growth Fund I 96.4% of PIC Growth Portfolio
Small Company
Growth Fund I 12.2% of PIC Small Cap Portfolio
19
<PAGE>
PIC
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES - 92.10% Shares Value Net Assets
================================================================================
BANKS - 2.11%
- --------------------------------------------------------------------------------
FIRSTAR CORPORATION 29,400 $ 883,837 0.52%
PROVIDIAN FINANCIAL CORPORATION 21,200 2,736,125 1.59
- --------------------------------------------------------------------------------
TOTAL BANKS 3,619,962 2.11
================================================================================
BUILDING PRODUCTS - 4.10%
- --------------------------------------------------------------------------------
THE HOME DEPOT, INC. 39,700 2,379,519 1.39
LOWE'S COMPANIES, INC. 88,300 4,657,825 2.71
- --------------------------------------------------------------------------------
TOTAL BUILDING PRODUCTS 7,037,344 4.10
================================================================================
BUSINESS INFORMATION SERVICES - 2.75%
- --------------------------------------------------------------------------------
AUTOMATIC DATA PROCESSING 21,000 934,500 0.54
PAYCHEX, INC. 74,226 3,790,165 2.21
- --------------------------------------------------------------------------------
TOTAL BUSINESS INFORMATION SERVICES 4,724,665 2.75
================================================================================
COMPUTER SOFTWARE - 7.78%
- --------------------------------------------------------------------------------
BMC SOFTWARE, INC.* 26,200 1,128,237 0.66
MICROSOFT CORPORATION* 150,324 12,223,220 7.12
- --------------------------------------------------------------------------------
TOTAL COMPUTER SOFTWARE 13,351,457 7.78
================================================================================
COMPUTER SERVICES - 1.06%
- --------------------------------------------------------------------------------
SUN MICROSYSTEMS, INC.* 30,500 1,824,281 1.06
================================================================================
COSMETICS AND SOAPS - 0.94%
- --------------------------------------------------------------------------------
THE CLOROX COMPANY 14,000 1,615,250 0.94
Unaudited. See Notes to Financial Statements.
20
<PAGE>
PIC
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
CREDIT AND FINANCE - 3.42%
- --------------------------------------------------------------------------------
ASSOCIATES FIRST CAPITAL CORPORATION 41,060 $ 1,819,471 1.06%
MBNA CORPORATION 143,816 4,053,813 2.36
- --------------------------------------------------------------------------------
TOTAL CREDIT AND FINANCE 5,873,284 3.42
================================================================================
DISCOUNT STORES - 2.19%
- --------------------------------------------------------------------------------
COSTCO COMPANIES, INC.* 46,500 3,763,594 2.19
================================================================================
DIVERSIFIED - 5.10%
- --------------------------------------------------------------------------------
TYCO INTERNATIONAL LTD. 107,780 8,757,125 5.10
================================================================================
DRUGS - 12.26%
- --------------------------------------------------------------------------------
ELAN CORPORATION, PLC ADR* 42,657 2,196,836 1.28
PFIZER, INC. 61,884 7,120,528 4.15
SCHERING-PLOUGH CORPORATION 108,200 5,227,412 3.05
WARNER-LAMBERT COMPANY 95,600 6,494,825 3.78
- --------------------------------------------------------------------------------
TOTAL DRUGS 21,039,601 12.26
================================================================================
ELECTRICAL EQUIPMENT/PERIPHERALS - 3.01%
- --------------------------------------------------------------------------------
DELL COMPUTER CORPORATION* 58,500 2,409,469 1.40
EMC CORPORATION 25,200 2,745,225 1.61
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL EQUIPMENT/PERIPHERALS 5,154,694 3.01
================================================================================
ELECTRONIC EQUIPMENT/SEMICONDUCTORS - 3.01%
- --------------------------------------------------------------------------------
LINEAR TECHNOLOGY CORPORATION 43,800 2,491,125 1.45
SOLECTRON CORPORATION* 55,200 2,677,200 1.56
- --------------------------------------------------------------------------------
TOTAL ELECTRONIC EQUIPMENT/SEMICONDUCTORS 5,168,325 3.01
================================================================================
ELECTRONICS - 1.08%
- --------------------------------------------------------------------------------
MOTOROLA, INC. 23,200 1,858,900 1.08
Unaudited. See Notes to Financial Statements.
21
<PAGE>
PIC
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
ENTERTAINMENT AND LEISURE - 1.89%
- --------------------------------------------------------------------------------
CLEAR CHANNEL COMMUNICATIONS, INC.* 22,600 $ 1,570,700 0.92%
INFINITY BROADCASTING CORPORATION* 60,000 1,661,250 0.97
- --------------------------------------------------------------------------------
TOTAL ENTERTAINMENT AND LEISURE 3,231,950 1.89
================================================================================
FINANCIAL - 1.04%
- --------------------------------------------------------------------------------
CITIGROUP INC. 23,600 1,775,900 1.04
================================================================================
INSURANCE - 2.43%
- --------------------------------------------------------------------------------
AMERICAN INTERNATIONAL GROUP, INC. 35,552 4,175,138 2.43
================================================================================
INTERNET SERVICES - 4.69%
- --------------------------------------------------------------------------------
AMERICA ONLINE, INC.* 56,400 8,051,100 4.69
================================================================================
MEDICAL INSTRUMENTS - 1.96%
- --------------------------------------------------------------------------------
MEDTRONIC, INC. 46,804 3,366,963 1.96
================================================================================
MEDICAL/DENTAL PRODUCTS - 0.47%
- --------------------------------------------------------------------------------
CARDINAL HEALTH, INC. 13,550 810,459 0.47
================================================================================
MORTGAGE AND RELATED SERVICES - 2.77%
- --------------------------------------------------------------------------------
FANNIE MAE 31,219 2,214,598 1.29
FREDDIE MAC 40,400 2,535,100 1.48
- --------------------------------------------------------------------------------
TOTAL MORTGAGE AND RELATED SERVICES 4,749,698 2.77
================================================================================
NATURAL GAS PRODUCTS AND PIPELINES - 0.98%
- --------------------------------------------------------------------------------
ENRON CORP. 22,400 1,685,600 0.98
Unaudited. See Notes to Financial Statements.
22
<PAGE>
PIC
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
NETWORKING - 1.52%
- --------------------------------------------------------------------------------
CISCO SYSTEMS, INC.* 22,800 $ 2,600,625 1.52%
================================================================================
OFFICE EQUIPMENT AND SUPPLIES - 0.45%
- --------------------------------------------------------------------------------
STAPLES, INC.* 25,700 771,000 0.45
================================================================================
SPECIALTY RETAIL - 6.60%
- --------------------------------------------------------------------------------
BED BATH & BEYOND INC.* 78,500 2,801,469 1.63
CVS CORPORATION 72,400 3,448,050 2.01
KOHL'S CORPORATION* 76,358 5,073,035 2.96
- --------------------------------------------------------------------------------
TOTAL SPECIALTY RETAIL 11,322,554 1.52
================================================================================
SUPERMARKETS - 4.46%
- --------------------------------------------------------------------------------
KROGER CO. 52,300 2,840,544 1.66
SAFEWAY INC.* 89,250 4,813,922 2.80
- --------------------------------------------------------------------------------
TOTAL SUPERMARKETS 7,654,466 4.46
================================================================================
TELECOMMUNICATIONS - 6.82%
- --------------------------------------------------------------------------------
LUCENT TECHNOLOGIES INC. 71,400 4,292,925 2.50
NOKIA CORPORATION, CLASS A, ADR 65,700 4,874,119 2.84
TELLABS, INC.* 23,200 2,541,850 1.48
- --------------------------------------------------------------------------------
TOTAL TELECOMMUNICATIONS 11,708,894 6.82
================================================================================
TELEPHONE - 5.94%
- --------------------------------------------------------------------------------
ALLTEL CORPORATION 43,000 2,899,812 1.69
MCI WORLDCOM INCORPORATED* 88,650 7,285,922 4.25
- --------------------------------------------------------------------------------
TOTAL TELEPHONE 10,185,734 5.94
Unaudited. See Notes to Financial Statements.
23
<PAGE>
PIC
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
WIRELESS SERVICES - 1.27%
- --------------------------------------------------------------------------------
AIRTOUCH COMMUNICATIONS, INC.* 23,300 $ 2,175,638 1.27%
- --------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES (COST $102,749,274) 158,054,201 92.10
================================================================================
MONEY MARKET FUNDS - 6.99%
- --------------------------------------------------------------------------------
TEMPORARY INVESTMENT
FUND, INC. - TEMPCASH 5,999,526 5,999,526
TEMPORARY INVESTMENT
FUND, INC. - TEMPFUND 5,999,526 5,999,526
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUNDS
(COST $11,999,052) 11,999,052 6.99
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $114,748,326) 170,053,253 99.09
================================================================================
OTHER ASSETS - 2.06%
- --------------------------------------------------------------------------------
RECEIVABLES:
DIVIDENDS AND INTEREST 72,194
INVESTMENT SECURITIES SOLD 3,415,111
SHARES OF BENEFICIAL INTEREST SOLD 16,509
OTHER ASSETS 26,813
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS 3,530,627 2.06%
================================================================================
TOTAL ASSETS 173,583,880 101.15
================================================================================
LIABILITIES - (1.15%)
- --------------------------------------------------------------------------------
PAYABLE FOR INVESTMENT SECURITIES PURCHASED 1,767,503
ACCRUED EXPENSES 197,838
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 1,965,341 (1.15)
================================================================================
NET ASSETS - 100.00% $171,618,539 100.00%
- --------------------------------------------------------------------------------
*NON-INCOME PRODUCING SECURITY.
Unaudited. See Notes to Financial Statements.
24
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES - 96.50% Shares Value Net Assets
================================================================================
AIRLINES - 0.54%
- --------------------------------------------------------------------------------
RYANAIR HOLDINGS PLC ADS* 26,970 $ 1,206,908 0.54%
================================================================================
APPAREL AND SHOE - 0.29%
- --------------------------------------------------------------------------------
THE BUCKLE, INC.* 27,600 645,150 0.29
================================================================================
AUTO PARTS - 2.07%
- --------------------------------------------------------------------------------
GENTEX CORPORATION* 118,800 3,571,425 1.60
O'REILLY AUTOMOTIVE, INC.* 22,900 1,047,675 0.47
- --------------------------------------------------------------------------------
TOTAL AUTO PARTS 4,619,100 2.07
================================================================================
BANKS - 1.07%
- --------------------------------------------------------------------------------
HAMILTON BANCORP INC.* 92,630 2,385,222 1.07
================================================================================
BEVERAGE/FOOD - 0.50%
- --------------------------------------------------------------------------------
BERINGER WINE ESTATES HOLDINGS, INC.* 28,200 1,110,375 0.50
================================================================================
BIOTECHNOLOGY - 0.62%
- --------------------------------------------------------------------------------
ALBANY MOLECULAR RESEARCH, INC.* 27,100 677,500 0.30
INVITROGEN CORPORATION* 40,000 717,500 0.32
- --------------------------------------------------------------------------------
TOTAL BIOTECHNOLOGY 1,395,000 0.62
================================================================================
BUILDER - 0.37%
- --------------------------------------------------------------------------------
PALM HARBOR HOMES, INC.* 41,348 832,128 0.37
================================================================================
BUILDING PRODUCTS - 0.24%
- --------------------------------------------------------------------------------
TREX COMPANY, INC.* 33,600 537,600 0.24
Unaudited. See Notes to Financial Statements.
25
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
BUSINESS SERVICES - 10.43%
- --------------------------------------------------------------------------------
THE CORPORATE EXECUTIVE BOARD COMPANY* 9,500 $ 267,188 0.12%
DENDRITE INTERNATIONAL, INC.* 39,700 1,027,238 0.46
FORRESTER RESEARCH, INC.* 13,020 442,680 0.20
IRON MOUNTAIN INCORPORATED* 36,450 1,013,766 0.45
LABOR READY, INC.* 38,200 1,499,350 0.67
LASON, INC.* 52,855 2,091,076 0.94
MEDQUIST INC.* 41,800 1,431,650 0.64
METRO NETWORKS, INC.* 22,575 1,015,875 0.46
NCO GROUP, INC.* 80,635 2,630,717 1.18
THE PROFIT RECOVERY GROUP
INTERNATIONAL, INC.* 100,300 3,660,950 1.64
TMP WORLDWIDE INC.* 87,420 5,878,995 2.64
UNITED RENTALS, INC.* 77,000 2,295,562 1.03
- --------------------------------------------------------------------------------
TOTAL BUSINESS SERVICES 23,255,047 10.43
================================================================================
COMPUTER SERVICES - 9.92%
- --------------------------------------------------------------------------------
THE BISYS GROUP, INC.* 23,800 1,207,850 0.54
CHECK POINT SOFTWARE TECHNOLOGIES, LTD.* 71,700 2,527,425 1.13
CHECKFREE HOLDINGS CORPORATION* 19,900 955,200 0.43
CLARIFY INC.* 21,900 514,650 0.23
CONCENTRIC NETWORK CORPORATION* 21,100 1,761,850 0.79
CSG SYSTEMS INTERNATIONAL, INC.* 60,776 2,347,473 1.05
ENTRUST TECHNOLOGIES INC* 13,100 322,588 0.14
GLOBIX CORPORATION* 15,600 731,250 0.33
HI/FN, INC.* 33,300 1,798,200 0.81
INTERNATIONAL NETWORK SERVICES* 23,025 874,950 0.39
ISS GROUP, INC.* 17,100 907,369 0.41
MENTOR GRAPHICS CORPORATION* 65,900 799,038 0.36
MIPS TECHNOLOGIES, INC.* 33,800 1,343,550 0.60
MODEM MEDIA . POPPE TYSON, INC., CLASS A* 19,300 680,325 0.31
NICE SYSTEMS LTD. ADR* 94,650 2,721,188 1.22
Unaudited. See Notes to Financial Statements.
26
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
COMPUTER SERVICES, CONTINUED
- --------------------------------------------------------------------------------
PEGASUS SYSTEMS, INC.* 43,225 $ 2,020,769 0.91%
RWD TECHNOLOGIES, INC.* 35,160 606,510 0.27
- --------------------------------------------------------------------------------
TOTAL COMPUTER SERVICES 22,120,185 9.92
================================================================================
COMPUTER SOFTWARE - 11.91%
- --------------------------------------------------------------------------------
AVANT! CORPORATION* 55,100 743,850 0.33
AVT CORPORATION* 43,600 1,185,375 0.53
BUSINESS OBJECTS S.A. ADS* 87,000 2,039,062 0.92
ELECTRONICS FOR IMAGING, INC.* 93,700 4,433,181 1.99
EXCHANGE APPLICATIONS, INC.* 27,800 820,100 0.37
GEMSTAR INTERNATIONAL GROUP LIMITED* 21,400 2,255,025 1.01
LEGATO SYSTEMS, INC.* 5,200 210,275 0.09
MACROMEDIA, INC.* 41,500 1,719,656 0.77
MEDICAL MANAGER CORPORATION* 75,800 2,160,300 0.97
MERCURY INTERACTIVE CORPORATION* 71,900 2,026,681 0.91
NATIONAL INSTRUMENTS CORPORATION* 11,200 380,800 0.17
NEON SYSTEMS, INC.* 15,800 663,600 0.30
PEREGRINE SYSTEMS, INC.* 67,100 1,509,750 0.68
PINNACLE SYSTEMS, INC.* 42,925 2,334,047 1.05
PLX TECHNOLOGY, INC.* 25,000 484,375 0.22
SIEBEL SYSTEMS, INC.* 27,340 1,050,881 0.47
SOFTWARE AG SYSTEMS, INC.* 12,970 107,002 0.05
TRANSACTION SYSTEMS ARCHITECTS,
INC., CLASS A* 22,710 736,656 0.33
VERISIGN, INC.* 4,900 563,500 0.25
VERITAS SOFTWARE CORPORATION* 15,750 1,118,250 0.50
- --------------------------------------------------------------------------------
TOTAL COMPUTER SOFTWARE 26,542,366 11.91
================================================================================
CONSTRUCTION - 0.48%
- --------------------------------------------------------------------------------
DYCOM INDUSTRIES, INC.* 23,475 1,072,514 0.48
Unaudited. See Notes to Financial Statements.
27
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
CREDIT AND FINANCE - 0.40%
- --------------------------------------------------------------------------------
AMERICREDIT CORP.* 53,900 $ 892,719 0.40%
================================================================================
DISCOUNT STORES - 3.99%
- --------------------------------------------------------------------------------
DOLLAR TREE STORES, INC.* 147,880 5,397,620 2.42
99 CENTS ONLY STORES* 73,950 3,484,894 1.57
- --------------------------------------------------------------------------------
TOTAL DISCOUNT STORES 8,882,514 3.99
================================================================================
DRUGS - 1.05%
- --------------------------------------------------------------------------------
ALPHARMA INC., CLASS A 29,000 855,500 0.38
K-V PHARMACEUTICAL COMPANY, CLASS A* 15,500 240,250 0.11
SHIRE PHARMACEUTICALS GROUP PLC* 57,550 1,244,519 0.56
- --------------------------------------------------------------------------------
TOTAL DRUGS 2,340,269 1.05
================================================================================
EDUCATIONAL PROGRAMS - 1.81%
- --------------------------------------------------------------------------------
CAREER EDUCATION CORPORATION* 12,700 425,450 0.19
CORINTHIAN COLLEGES, INC.* 41,400 677,925 0.30
EDUCATION MANAGEMENT CORPORATION* 58,200 1,160,362 0.52
SCHOOL SPECIALTY, INC.* 41,275 779,066 0.35
SYLVAN LEARNING SYSTEMS, INC.* 39,650 996,206 0.45
- --------------------------------------------------------------------------------
TOTAL EDUCATIONAL PROGRAMS 4,039,009 1.81
================================================================================
ELECTRIC POWER - 0.31%
- --------------------------------------------------------------------------------
CALPINE CORPORATION* 16,400 699,050 0.31
================================================================================
ELECTRICAL EQUIPMENT/PERIPHERALS - 2.52%
- --------------------------------------------------------------------------------
DIONEX CORPORATION* 12,000 492,000 0.22
PMC-SIERRA, INC.* 34,330 3,291,389 1.48
SANDISK CORPORATION* 20,000 405,000 0.18
TRANSWITCH CORPORATION* 32,300 1,421,200 0.64
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL EQUIPMENT/PERIPHERALS 5,609,589 2.52
Unaudited. See Notes to Financial Statements.
28
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
ELECTRONIC COMPONENTS/SEMICONDUCTORS - 10.49%
- --------------------------------------------------------------------------------
ALPHA INDUSTRIES, INC.* 25,200 $ 888,300 0.40%
BROOKS AUTOMATION, INC.* 30,000 645,000 0.29
CREE RESEARCH, INC.* 22,900 961,800 0.43
DUPONT PHOTOMASKS, INC.* 15,600 682,500 0.31
FLEXTRONICS INTERNATIONAL LTD.* 36,900 1,722,769 0.77
GENESIS MICROCHIP INCORPORATED* 42,900 890,175 0.40
LAM RESEARCH CORPORATION* 45,400 1,430,100 0.64
LATTICE SEMICONDUCTOR CORPORATION* 28,600 1,169,025 0.53
MICREL, INCORPORATED* 16,000 942,000 0.42
ORBOTECH LTD. 24,200 1,161,600 0.52
PLEXUS CORP.* 27,200 907,800 0.41
PRI AUTOMATION, INC.* 10,200 253,088 0.11
QLOGIC CORPORATION* 14,000 979,125 0.44
SANMINA CORPORATION* 48,900 3,245,738 1.46
SDL, INC.* 12,700 1,387,475 0.62
THE DII GROUP, INC.* 53,100 1,646,100 0.74
UNIPHASE CORPORATION* 10,900 1,322,988 0.59
VITESSE SEMICONDUCTOR CORPORATION* 67,880 3,143,692 1.41
- --------------------------------------------------------------------------------
TOTAL ELECTRONIC COMPONENTS/SEMICONDUCTORS 23,379,275 10.49
================================================================================
ELECTRONICS - 1.03%
- --------------------------------------------------------------------------------
ANTEC CORPORATION* 26,700 724,238 0.33
POWER INTEGRATIONS, INC.* 26,100 1,024,425 0.46
ZORAN CORPORATION* 50,000 540,625 0.24
- --------------------------------------------------------------------------------
TOTAL ELECTRONICS 2,289,288 1.03
================================================================================
ENTERTAINMENT AND LEISURE - 5.96%
- --------------------------------------------------------------------------------
AMERICAN CLASSIC VOYAGES CO. 40,900 731,088 0.33
CINAR CORPORATION* 29,000 605,375 0.27
CITADEL COMMUNICATIONS CORPORATION* 33,000 924,000 0.41
COX RADIO, INC., CLASS A* 21,800 1,062,750 0.48
ENTERCOM COMMUNICATIONS CORP., CLASS A* 8,200 304,425 0.14
Unaudited. See Notes to Financial Statements.
29
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
ENTERTAINMENT AND LEISURE, CONTINUED
- --------------------------------------------------------------------------------
FAIRFIELD COMMUNITIES, INC. 109,170 $ 1,405,564 0.63%
HEFTEL BROADCASTING CORPORATION, CLASS A* 31,800 1,729,125 0.77
INTERNATIONAL SPEEDWAY CORPORATION,
CLASS A 27,200 1,400,800 0.63
JONES INTERCABLE, INC., CLASS A* 52,375 2,428,891 1.09
STEINER LEISURE LIMITED* 32,500 1,031,875 0.46
UNITED INTERNATIONAL HOLDINGS, INC., CLASS A* 27,900 1,667,025 0.75
- --------------------------------------------------------------------------------
TOTAL ENTERTAINMENT AND LEISURE 13,290,918 5.96
================================================================================
FINANCIAL SERVICES - 1.11%
- --------------------------------------------------------------------------------
FINANCIAL FEDERAL CORPORATION* 19,500 407,062 0.18
METRIS COMPANIES INC. 6,200 378,975 0.17
NOVA CORPORATION* 39,936 1,038,336 0.47
SEI INVESTMENTS COMPANY 6,900 655,500 0.29
- --------------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 2,479,873 1.11
================================================================================
FOOD AND RESTAURANTS - 0.29%
- --------------------------------------------------------------------------------
BUCA, INC.* 2,800 50,750 0.02
PERFORMANCE FOOD GROUP COMPANY* 23,000 609,500 0.27
- --------------------------------------------------------------------------------
TOTAL FOOD AND RESTAURANTS 660,250 0.29
================================================================================
HOSPITALS - 0.10%
- --------------------------------------------------------------------------------
CAREMATRIX CORPORATION* 12,850 220,056 0.10
================================================================================
INSURANCE - 1.62%
- --------------------------------------------------------------------------------
ANNUITY AND LIFE RE (HOLDINGS), LTD. 6,500 128,375 0.06
CLARK/BARDES HOLDINGS, INC.* 51,500 669,500 0.30
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD. 17,100 976,838 0.44
MUTUAL RISK MANAGEMENT LTD. 47,100 1,831,012 0.82
- --------------------------------------------------------------------------------
TOTAL INSURANCE 3,605,725 1.62
Unaudited. See Notes to Financial Statements.
30
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
INTERNET SERVICES - 6.01%
- --------------------------------------------------------------------------------
DOUBLECLICK INC.* 14,000 $ 1,957,375 0.88%
EXODUS COMMUNICATIONS, INC.* 9,300 838,162 0.38
EXTREME NETWORKS, INC.* 10,600 587,638 0.26
INFOSEEK CORPORATION* 16,200 827,212 0.37
INTERVU INC.* 9,900 534,600 0.24
MINDSPRING ENTERPRISES, INC.* 8,200 794,888 0.36
NETOPIA, INC.* 20,200 453,238 0.20
PSINET INC.* 32,900 1,661,450 0.75
REALNETWORKS, INC.* 6,700 1,484,050 0.67
SOFTNET SYSTEMS, INC.* 23,125 754,453 0.34
TELEBANC FINANCIAL CORPORATION* 10,200 1,056,975 0.47
USINTERNETWORKING, INC.* 8,500 434,562 0.19
VERIO INC.* 28,200 2,002,200 0.90
- --------------------------------------------------------------------------------
TOTAL INTERNET SERVICES 13,386,803 6.01
================================================================================
INVESTMENT SERVICES - 0.18%
- --------------------------------------------------------------------------------
NATIONAL DISCOUNT BROKERS GROUP, INC.* 7,000 399,437 0.18
================================================================================
MEDICAL AND DENTAL PRODUCTS - 1.88%
- --------------------------------------------------------------------------------
MEDIMMUNE, INC.* 66,100 3,643,762 1.63
PATTERSON DENTAL COMPANY* 15,400 555,362 0.25
- --------------------------------------------------------------------------------
TOTAL MEDICAL AND DENTAL PRODUCTS 4,199,124 1.88
================================================================================
MEDICAL INSTRUMENTS - 2.18%
- --------------------------------------------------------------------------------
LASER VISION CENTERS, INC.* 46,100 1,941,962 0.87
NOVOSTE CORPORATION* 23,900 531,775 0.24
VISX, INCORPORATED* 11,200 1,442,000 0.65
XOMED SURGICAL PRODUCTS, INC.* 22,550 938,644 0.42
- --------------------------------------------------------------------------------
TOTAL MEDICAL INSTRUMENTS 4,854,381 2.18
Unaudited. See Notes to Financial Statements.
31
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
MEDICAL/DENTAL SERVICES - 1.52%
- --------------------------------------------------------------------------------
AMSURG CORP., CLASS A* 93,200 $ 640,750 0.29%
PHARMACEUTICAL PRODUCT DEVELOPMENT, INC.* 23,200 675,700 0.30
PROFESSIONAL DETAILING, INC.* 23,100 664,125 0.30
RENAL CARE GROUP, INC.* 67,245 1,403,739 0.63
- --------------------------------------------------------------------------------
TOTAL MEDICAL/DENTAL SERVICES 3,384,314 1.52
================================================================================
NETWORKING - 0.30%
- --------------------------------------------------------------------------------
RHYTHMS NETCONNECTIONS INC.* 8,100 668,250 0.30
================================================================================
OFFSHORE DRILLING - 0.63%
- --------------------------------------------------------------------------------
DRIL-QUIP, INC.* 5,200 126,750 0.05
ROWAN COMPANIES, INC.* 80,500 1,288,000 0.58
- --------------------------------------------------------------------------------
TOTAL OFFSHORE DRILLING 1,414,750 0.63
================================================================================
OIL FIELD SERVICES - 1.52%
- --------------------------------------------------------------------------------
ATWOOD OCEANICS, INC.* 14,100 491,737 0.22
GLOBAL INDUSTRIES, LTD.* 89,700 1,104,431 0.50
MARINE DRILLING COMPANIES, INC.* 26,000 446,875 0.20
PATTERSON ENERGY, INC.* 135,900 1,095,694 0.49
TRICO MARINE SERVICES, INC.* 30,100 238,919 0.11
- --------------------------------------------------------------------------------
TOTAL OIL FIELD SERVICES 3,377,656 1.52
================================================================================
POLLUTION CONTROL - 1.95%
- --------------------------------------------------------------------------------
NEWPARK RESOURCES, INC.* 143,300 1,316,569 0.59
U S LIQUIDS INC.* 76,400 1,547,100 0.69
WASTE CONNECTIONS, INC.* 56,600 1,492,825 0.67
- --------------------------------------------------------------------------------
TOTAL POLLUTION CONTROL 4,356,494 1.95
Unaudited. See Notes to Financial Statements.
32
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
PUBLISHING/ADVERTISING - 2.56%
- --------------------------------------------------------------------------------
CATALINA MARKETING CORPORATION* 28,600 $ 2,443,512 1.10%
CONSOLIDATED GRAPHICS, INC.* 25,800 1,099,725 0.49
LAMAR ADVERTISING COMPANY, CLASS A* 61,700 2,074,662 0.93
PLAYBOY ENTERPRISES, INC., CLASS B* 2,500 80,469 0.04
- --------------------------------------------------------------------------------
TOTAL PUBLISHING/ADVERTISING 5,698,368 2.56
================================================================================
SPECIALTY RETAIL - 0.39%
- --------------------------------------------------------------------------------
COST PLUS, INC.* 23,000 810,750 0.36
GUITAR CENTER, INC.* 3,855 60,234 0.03
- --------------------------------------------------------------------------------
TOTAL SPECIALTY RETAIL 870,984 0.39
================================================================================
TELECOMMUNICATIONS - 6.12%
- --------------------------------------------------------------------------------
APPLIED MICRO CIRCUITS CORPORATION* 39,700 2,116,506 0.95
CATAPULT COMMUNICATIONS CORPORATION* 15,425 240,052 0.11
DSP COMMUNICATIONS, INC.* 82,500 2,248,125 1.01
E-TEK DYNAMICS, INC.* 20,500 881,500 0.40
GILAT SATELLITE NETWORKS, LTD.* 28,500 1,482,000 0.66
INTERMEDIA COMMUNICATIONS INC.* 40,300 1,297,156 0.58
MGC COMMUNICATIONS, INC.* 13,000 442,000 0.20
QUANTA SERVICES, INC.* 37,500 1,080,469 0.49
RCN CORPORATION* 18,100 880,112 0.39
RESEARCH IN MOTION LIMITED* 118,600 1,445,437 0.65
VIATEL, INC.* 32,800 1,508,800 0.68
- --------------------------------------------------------------------------------
TOTAL TELECOMMUNICATIONS 13,622,157 6.12
================================================================================
TELEPHONE - 1.22%
- --------------------------------------------------------------------------------
MCLEODUSA INCORPORATED, CLASS A* 48,300 2,707,819 1.22
================================================================================
TEXTILES AND SHOES - 0.24%
- --------------------------------------------------------------------------------
NOVEL DENIM HOLDINGS LIMITED* 68,940 534,285 0.24
Unaudited. See Notes to Financial Statements.
33
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
TOYS - 0.29%
- --------------------------------------------------------------------------------
JAKKS PACIFIC, INC.* 30,000 $ 641,250 0.29%
================================================================================
TRUCKING - 0.39%
- --------------------------------------------------------------------------------
FORWARD AIR CORPORATION* 39,000 867,750 0.39
- --------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES (COST $170,878,501) 215,093,952 96.50
================================================================================
MONEY MARKET FUNDS - 4.08%
- --------------------------------------------------------------------------------
TEMPORARY INVESTMENT FUND, INC. -
TEMPCASH 4,540,560 4,540,560 2.04
TEMPORARY INVESTMENT FUND, INC. -
TEMPFUND 4,540,560 4,540,560 2.04
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUNDS (COST $9,081,120) 9,081,120 4.08
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $179,959,621) 224,175,072 100.58
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
34
<PAGE>
PIC
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- AS OF APRIL 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
================================================================================
OTHER ASSETS - 1.28%
- --------------------------------------------------------------------------------
RECEIVABLES:
INTEREST $ 42,866
INVESTMENT SECURITIES SOLD 2,788,118
SHARES OF BENEFICIAL INTEREST SOLD 452
OTHER ASSETS 21,253
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS 2,852,689 1.28%
- --------------------------------------------------------------------------------
TOTAL ASSETS 227,027,761 101.86
================================================================================
LIABILITIES - (1.86%)
- --------------------------------------------------------------------------------
PAYABLE FOR INVESTMENT SECURITIES PURCHASED 3,912,158
ACCRUED EXPENSES 228,393
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 4,140,551 (1.86)
================================================================================
NET ASSETS - 100.00% $222,887,210 100.00%
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
35
<PAGE>
PIC
- ----------
GROWTH STATEMENT OF OPERATIONS
- ---------- SIX MONTHS ENDED APRIL 30, 1999
SMALL CAP
- ----------
PORTFOLIOS
- ----------
GROWTH SMALL CAP
PORTFOLIO PORTFOLIO
================================================================================
INVESTMENT INCOME
- --------------------------------------------------------------------------------
INCOME:
- --------------------------------------------------------------------------------
Dividends $ 417,578 $ 15,485
Interest 14,726 191,181
Other 32,736 22,530
- --------------------------------------------------------------------------------
Total income 465,040 229,196
================================================================================
EXPENSES:
- --------------------------------------------------------------------------------
Investment advisory fee (Note 3) 635,793 815,316
Administration fee (Note 3) 79,474 101,915
Accounting services fee 38,377 42,865
Custodian fee 19,376 34,639
Audit fee 10,909 9,819
Trustees' fees 6,248 6,248
Insurance 1,836 2,976
Legal fees 3,967 3,968
Miscellaneous 2,677 4,463
- --------------------------------------------------------------------------------
Total expenses 798,657 1,022,209
Less, reimbursement/waiver
by Advisor (Note 3) (3,915) (3,064)
- --------------------------------------------------------------------------------
Net expenses 794,742 1,019,145
================================================================================
NET INVESTMENT LOSS (329,702) (789,949)
================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
- --------------------------------------------------------------------------------
Net realized gain (loss)
on investments 13,159,827 (3,500,072)
Net unrealized appreciation
(depreciation) of investments 19,361,965 34,387,239
- --------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS 32,521,792 30,887,167
================================================================================
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS $32,192,090 $30,097,218
================================================================================
Unaudited. See Notes to Financial Statements.
36
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37
<PAGE>
PIC
- ----------
GROWTH STATEMENTS OF CHANGES IN NET ASSETS
- ----------
SMALL CAP
- ----------
PORTFOLIOS
- ----------
======================================================
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------
FROM OPERATIONS:
- ------------------------------------------------------
Net investment loss
Net realized gain (loss) on investments
Net unrealized appreciation (depreciation) of
investments
- ------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations
======================================================
TRANSACTIONS IN INTERESTS:
Contributions by Holders
Withdrawals by Holders
- ------------------------------------------------------
Net increase (decrease) in net assets from
transactions in interests
======================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS
======================================================
NET ASSETS
- ------------------------------------------------------
Beginning of period
- ------------------------------------------------------
End of period
- ------------------------------------------------------
* Unaudited.
See Notes to Financial Statements.
38
<PAGE>
GROWTH PORTFOLIO SMALL CAP PORTFOLIO
====================================================================
- --------------------------------------------------------------------
Six Months Year Six Months Year
ended ended ended ended
April 30, 1999* Oct. 31, 1998 April 30, 1999* Oct. 31, 1998
- --------------------------------------------------------------------
$ (329,702) $ (417,693) $ (789,949) $ (1,197,741)
13,159,827 9,511,479 (3,500,072) (30,872,647)
19,361,965 15,517,462 34,387,239 (283,036)
- --------------------------------------------------------------------
32,192,090 24,611,248 30,097,218 (32,353,424)
====================================================================
15,284,742 64,364,321 49,308,168 123,809,971
(11,940,616) (35,037,926) (30,171,815) (57,458,705)
- --------------------------------------------------------------------
3,344,126 29,326,395 19,136,353 66,351,266
====================================================================
35,536,216 53,937,643 49,233,571 33,997,842
====================================================================
- --------------------------------------------------------------------
136,082,323 82,144,680 173,653,639 139,655,797
- --------------------------------------------------------------------
$171,618,539 $ 136,082,323 $222,887,210 $173,653,639
- --------------------------------------------------------------------
39
<PAGE>
PIC
- ----------
GROWTH SELECTED RATIO DATA
- ----------
SMALL CAP
- ----------
PORTFOLIOS
- ----------
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
==============================================================================================
Six Months Year ended October 31,
ended ---------------------------------------------
Apr. 30, 1999* 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average net assets:+
Expenses 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment
income (loss) (0.41%) (0.32%) (0.13%) (0.04%) 0.08% 0.10%
Portfolio turnover rate 31.79% 81.06% 67.54% 64.09% 54.89% 68.26%
</TABLE>
+Annualized for periods of less than one year. Net of expense reimbursements and
waivers of 0.00%, 0.02%, 0.05%, 0.04%, 0.01%, and 0.01%, respectively.
*Unaudited.
See Notes to Financial Statements.
40
<PAGE>
PIC
- ----------
GROWTH SELECTED RATIO DATA
- ----------
SMALL CAP
- ----------
PORTFOLIOS
- ----------
<TABLE>
<CAPTION>
SMALL CAP PORTFOLIO
================================================================================================
Six Months Year ended October 31,
ended -----------------------------------------------
Apr. 30, 1999* 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average net assets:+
Expenses 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment loss (0.78%) (0.68%) (0.49%) (0.59%) (0.51%) (0.49%)
Portfolio turnover rate 61.75% 81.75% 151.52% 53.11% 45.45% 63.89%
</TABLE>
+ Annualized for periods of less than one year. Net of expense reimbursements
and waivers of 0.00%, 0.01%, 0.01%, 0.01%, 0.07% and 0.10%, respectively.
*Unaudited.
See Notes to Financial Statements.
41
<PAGE>
PIC
- ----------
GROWTH NOTES TO FINANCIAL STATEMENTS
- ----------
SMALL CAP
- ----------
PORTFOLIOS
- ----------
================================================================================
1 - ORGANIZATION
- --------------------------------------------------------------------------------
PIC Growth Portfolio was organized on December 11, 1991 and PIC Small
Cap Portfolio was organized on March 22, 1993 as separate trusts under the laws
of the State of New York (each a "Portfolio" and collectively the "Portfolios").
The beneficial interests in each Portfolio are divided into an unlimited number
of non-transferable interests, par value $.01 each. The Portfolios are
registered under the Investment Company Act of 1940 as open-end, diversified
management investment companies.
================================================================================
2 - SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following is a summary of significant accounting policies
consistently followed by the Portfolios. 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. Each Portfolio intends to comply with the
requirements of the Internal Revenue Code applicable to it. Therefore,
no federal income tax provision is required.
C. 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.
D. Accounting Estimates. In preparing financial statements in conformity
with generally accepted accounting principles, management makes
estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements, as well as
the reported amounts of revenues and expenses during the period.
Actual results could differ from those estimates.
42
<PAGE>
PIC
- ----------
GROWTH NOTES TO FINANCIAL STATEMENTS,
- ---------- CONTINUED
SMALL CAP
- ----------
PORTFOLIOS
- ----------
================================================================================
3 - TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
Each Portfolio has entered into an investment advisory agreement with
Provident Investment Counsel, Inc. ("PIC") and an administration agreement with
Investment Company Administration LLC ("ICA"), pursuant to which agreements
certain employees of these entities serve as officers and/or trustees of the
Portfolios. PIC and ICA also provide management services necessary for the
operations of the Portfolios and furnish office facilities. PIC receives from
each of Growth and Small Cap Portfolios an investment advisory fee at the annual
rate of 0.80% of its average daily net assets. In addition, PIC has voluntarily
taken to limit the expenses of the Growth and Small Cap Portfolios to 1.00% of
its average net assets. Fees waived by PIC for the six months ended April 30,
1999 were as follows:
Waived Fees
-----------
Growth Portfolio $3,915
Small Cap Portfolio 3,064
ICA receives for its services a fee at the annual rate of 0.10% of the
average daily net assets of the Portfolios. Fees paid to ICA for the six months
ended April 30, 1999 are stated on the respective Portfolios' Statement of
Operations.
On December 19, 1995, each Portfolio approved a Deferred Compensation
Plan for Trustees (the "Plan"). Trustees are entitled to receive $2,500 per
quarter and $500 per meeting attended, which is allocated among the Portfolios.
Trustees can elect to receive payment in cash or defer payments provided for in
the Plan. If a trustee elects to defer payment, the Plan provides for the
creation of a deferred payment account (phantom share account). This account
accumulates the deferred fees earned and the value of the account is adjusted at
the end of each quarter to reflect a value which would have been earned if the
account had been invested in designated investments. The Portfolios recognize as
trustee expense amounts accrued as meetings are attended plus the change in the
value of the phantom share account determined on a quarterly basis.
43
<PAGE>
PIC
- ----------
GROWTH NOTES TO FINANCIAL STATEMENTS,
- ---------- CONTINUED
SMALL CAP
- ----------
PORTFOLIOS
- ----------
================================================================================
4 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
The aggregate cost of purchases and the proceeds from sales of
investment securities, other than short-term obligations, for the six months
ended April 30, 1999, were as follows:
Purchases Sales
--------- -----
Growth Portfolio $ 49,244,389 $ 48,993,774
Small Cap Portfolio 143,029,395 123,371,562
The aggregate unrealized appreciation and depreciation of investment
securities at April 30, 1999, based on costs for federal income tax purposes,
were as follows:
Tax Gross Gross
Costs of Unrealized Unrealized
Investments Appreciation Depreciation
----------- ------------ ------------
Growth Portfolio $114,748,326 $55,343,550 $ (38,623)
Small Cap Portfolio 179,959,621 50,897,014 (6,681,563)
44
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<PAGE>
- ----------------------------
PROVIDENT INVESTMENT COUNSEL TRUSTEES AND OFFICERS
MUTUAL FUNDS
- ----------------------------
================================================================================
TRUSTEES AND OFFICERS - PIC INVESTMENT TRUST
- --------------------------------------------------------------------------------
JEFFREY J. MILLER, Trustee
JETTIE M. EDWARDS, Trustee
BERNARD J. JOHNSON, Trustee Emeritus
JEFFREY D. LOVELL, Trustee
WAYNE H. SMITH, Trustee
DOUGLASS B. ALLEN, President
THAD M. BROWN, Vice President, Secretary and Treasurer
TRUSTEES AND OFFICERS - PIC PORTFOLIOS
- --------------------------------------------------------------------------------
JEFFREY J. MILLER, Trustee
RICHARD N. FRANK, Trustee
JAMES CLAYBURN LAFORCE, Trustee
ANGELO R. MOZILO, Trustee
BERNARD J. JOHNSON, Trustee Emeritus
DOUGLASS B. ALLEN, President
THAD M. BROWN, Vice President, Secretary and Treasurer
LEGAL COUNSEL - PIC INVESTMENT TRUST
- --------------------------------------------------------------------------------
SWIDLER, BERLIN, SHEREFF, FRIEDMAN, LLP
LEGAL COUNSEL - PIC PORTFOLIOS
- --------------------------------------------------------------------------------
PAUL, HASTINGS, JANOFSKY & WALKER, LLP
INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
MCGLADREY & PULLEN, LLP
This report is intended for shareholders of the Fund and may not be used as
sales literature unless preceded or accompanied by a current prospectus.
Past performance results shown in this report should not be considered a
representation of future performance. Share price and returns will fluctuate so
that shares, when redeemed, may be worth more or less than their original cost.
Statements and other information herein are dated and are subject to change.
48
