SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED APRIL 30, 2000
BALANCED FUND
GROWTH FUND
MID CAP FUND
SMALL COMPANY GROWTH FUND
PROVIDENT INVESTMENT COUNSEL
--------------------------------------------------------------------------------
Investing in Growth Since 1951
<PAGE>
Contents
2 Items of Interest
3 President's Letter
4 Our Philosophy
4 Performance Update/
Portfolio Review
7 Interview With Provident Managers
The Funds 10 Statements of Assets and Liabilities
13 Statements of Operations
16 Statements of Changes
in Net Assets
21 Financial Highlights
28 Notes to Financial Statements
The Portfolios Statement of Net Assets
35 Balanced Portfolio
38 Growth Portfolio
40 Mid Cap Portfolio
42 Small Cap Portfolio
47 Statements of Operations
48 Statements of Changes
in Net Assets
50 Selected Ratio Data
52 Notes to Financial Statements
1
<PAGE>
Items of Interest
* The Growth style of investment continues to enjoy a leadership role. Our
strong stock selection and sector allocation in the Funds were rewarded by
performance.
* The Electronic technology and health technology sectors have been the
significant contributors to the Funds' performance over the last few
months.
* Mid Cap Investing: The Best of Both Worlds. In our view, an investment in a
mid cap stock portfolio combines the liquidity characteristics of a large
cap portfolio with the high-growth rates of a smaller company.
* Our web site address is:
WWW.PROVNET.COM
2
<PAGE>
DEAR FELLOW SHAREHOLDERS,
We are once again pleased to report very positive results for the six-months
ended April 30, 2000 (more detailed information is available on the following
pages). For the period, the Mid and Small Cap Funds continued to lead the way,
closing the performance gap somewhat between the large and smaller
capitalization portfolios seen over the last few years. The Growth and Balanced
Funds also performed positively for the period.
The market volatility we discussed in earlier reports has continued in the last
several months. After starting out the year with a repeat of the positive
performance in 1999, investors became concerned about the threat of rising
interest rates. Since the middle of March, the psychology of the marketplace has
been oscillating between fears of rising interest rates and hope that the Fed
has tightened enough.
As with most difficult periods we have seen over the last few years, this period
also proved to be temporary. Pundits most recently have been calling this a bear
market. Certainly for the NASDAQ Index, off 37% from its high in March through
its worst level on Friday May 26th, and 21% for the year through the same May
26th date, this has been a severe correction. However, putting the decline in
perspective, it is worth noting that through June 7, the NASDAQ Index has
recovered 19.8% off its May low. In our view, what we have witnessed recently
may then be more appropriately seen as a long-overdue correction to allow
earnings to catch up with valuations. While inflation has been rising, the rate
is moderate and our outlook for GDP growth and corporate profitability in 2000
is for strong growth in 2000 with growth for 2001 only moderately slower than
this year. Thus this current decline, we believe, will prove to be a correction
in an otherwise bull market. Certainly our strategy in the Funds has reflected
and continues to reflect this view.
Looking ahead one thing seems clear, and that is investors for the foreseeable
future will be paying greater heed to valuation levels. This should translate
into a continued broadening out of the market and a more realistic appraisal of
"appropriate" valuations on a near- to intermediate-term basis. We look for a
more balanced market with value stocks and growth stocks, both small and large,
experiencing positive returns.
We appreciate your continued confidence in Provident Investment Counsel.
Sincerely,
/s/ Douglass B. Allen
Douglass B. Allen
President, PIC Investment Trust
June 26, 2000
3
<PAGE>
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.
PERFORMANCE UPDATE/PORTFOLIO REVIEW
BALANCED FUND
EQUITY SECTOR WEIGHTINGS Average annual total returns for the period
ended 4/30/00*:
Electronic Technology 43.56%
Health Technology 15.00 SINCE
Retail Trade 10.03 1 YEAR 3 YEAR 5 YEAR INCEPTION^
Consumer Services 8.72 ------ ------ ------ ----------
Technology Services 7.47 A: 12.78% 21.08% 20.00% 14.54%
Utilities 4.75 B: 13.84% n/a n/a 9.94%
Finance 3.39
Process Industries 3.20 % OF NET
Transportation 1.72 TOP 10 STOCK HOLDINGS: ASSETS
Consumer Non-Durables 1.35 ---------------------- ------
Consumer Durables 0.81 Cisco Systems, Inc. ................. 5.24%
Corning Glass, Inc. ................. 2.97%
Time Warner, Inc. ................... 2.54%
Texas Instruments, Inc. ............. 2.28%
Sun Microsystems, Inc. .............. 2.18%
Merck & Co.,Inc. .................... 2.14%
Microsoft Corp. ..................... 2.13%
Warner-Lambert Co. .................. 2.12%
General Electric Co. ................ 2.07%
Nokia Corp. ADR ..................... 1.93%
^ Fund A commenced operatons on June 11, 1992. Fund B commenced operations on
March 31, 1999.
4
<PAGE>
GROWTH FUND
EQUITY SECTOR WEIGHTINGS Average annual total returns for the period
ended 4/30/00*:
Electronic Technology 42.54%
Health Technology 15.29 SINCE
Retail Trade 9.92 1 YEAR 3 YEAR 5 YEAR INCEPTION^
Technology Services 8.57 ------ ------ ------ ----------
Consumer Services 8.43 A: 19.31% 26.69% n/a 24.30%
Utilities 4.57 B: 20.73% n/a n/a 15.40%
Process Industries 3.41
Finance 3.20 % OF NET
Consumer Non-Durables 1.74 TOP 10 STOCK HOLDINGS: ASSETS
Transportation 1.54 ---------------------- ------
Consumer Durables 0.79 Cisco Systems, Inc. ................. 7.16%
Sun Microsystems, Inc. .............. 4.12%
Time Warner, Inc. ................... 3.92%
Texas Instruments, Inc. ............. 3.91%
Corning Glass, Inc. ................. 3.59%
Warner-Lambert Co. .................. 3.41%
General Electric Co. ................ 3.27%
Nokia Corp. ADR ..................... 3.09%
Microsoft Corp. ..................... 2.94%
EMC Corp. ........................... 2.93%
^ Fund A commenced operations on February 3, 1997. Fund B commenced
operations on March 31, 1999.
MID CAP FUND
EQUITY SECTOR WEIGHTINGS Average annual total returns for the period
ended 4/30/00*:
Electronic Technology 39.07%
Technology Services 20.43 SINCE
Health Technology 12.54 1 YEAR 3 YEAR 5 YEAR INCEPTION^
Industrial Services 9.66 ------ ------ ------ ----------
Utilities 8.74 A: 79.78% n/a n/a 47.63%
Transportation 3.75 B: 84.21% n/a n/a 81.98%
Retail Trade 3.64
Consumer Services 1.47 % OF NET
Commercial Services 0.70 TOP 10 STOCK HOLDINGS: ASSETS
---------------------- ------
Ryanair Holdings plc ................ 3.50%
Teva Pharmaceutical Industries, Ltd. 2.95%
ADC Telecommunications, Inc. ........ 2.88%
Alza Corp. .......................... 2.87%
Amdocs Ltd. ......................... 2.85%
Altera Corp. ........................ 2.68%
Comverse Technology, Inc. ........... 2.61%
Mercury Interactive Corp. ........... 2.59%
SCI Systems, Inc. ................... 2.35%
Teradyne, Inc. ...................... 2.31%
^ Fund A commenced operations on December 31, 1997. Fund B commenced
operations on March 31, 1999.
5
<PAGE>
SMALL COMPANY GROWTH FUND
EQUITY SECTOR WEIGHTINGS Average annual total returns for the period
ended 4/30/00*:
Electronic Technology 42.34%
Technology Services 13.13 SINCE
Health Technology 12.75 1 YEAR 3 YEAR 5 YEAR INCEPTION^
Commercial Services 5.89 ------ ------ ------ ----------
Retail Trade 5.57 A: 95.52% 33.18% n/a 22.81%
Industrial Services 4.69 B: 97.03% n/a n/a 90.87%
Consumer Services 3.83
Utilities 2.74 % OF NET
Finance 2.58 TOP 10 STOCK HOLDINGS: ASSETS
Transportation 2.08 ---------------------- ------
Health Services 1.61 Credence Systems Corp. .............. 2.23%
Producer Manufacturing 1.27 Brooks Automation, Inc. ............. 1.98%
Consumer Non-Durables 0.78 BISYS Group, Inc. ................... 1.83%
Consumer Durables 0.62 ASM International, N.V. ............. 1.83%
Process Industries 0.12 Dollar Tree Stores, Inc. ............ 1.72%
Cree, Inc. .......................... 1.39%
TranSwitch Corp. .................... 1.38%
Varian Semiconductor Equipment
Associates, Inc..................... 1.36%
Burr-Brown Corp. .................... 1.24%
Powerwave Technologies, Inc. ........ 1.22%
+ The total returns stated above were achieved during favorable market
conditions. Investors should not expect that such favorable return can be
consistently achieved.
^ Fund A commenced operations on February 3, 1997. Fund B commenced
operations on March 31, 1999.
* THE PERFORMANCE RESULTS HAVE BEEN ADJUSTED FOR THE APPLICABLE MAXIMUM
SALESCHARGE AS IT RELATES TO EACH FUND.
6
<PAGE>
INTERVIEW WITH PROVIDENT MANAGERS
Q DURING THE PAST SIX-MONTH PERIOD CAN YOU EXPLAIN THE MARKET CONDITIONS, HOW
THE FUNDS PERFORMED AND YOUR OVERALL INVESTMENT APPROACH?
A The Funds' performance was very strong in the latter half of the year 1999.
Y2K YAWN, some might say, as the world moved through the milestone 1/1/2000
date with few computer glitches or other infrastructure disruptions. But
YAWN is hardly descriptive of the U.S. equity markets during this six-month
period. At the end of 1999, our stock selection in the Funds proved to be
"ON THE MARK." Our emphasis in technology issues, including medical
technology, electronic technology, and the Internet were very successful
moves. During October and November we increased our technology holdings,
but toward the latter part of 1999, we reduced some of the emphasis based
on significant price appreciation that was achieved over a very short
period of time.
As we moved into the New Year, we, like so many other investors, strongly
believed the technology revolution was a very significant development that
would transform the way in which business is conducted, not just here in
the United States but around the globe. Since year-end 1999, the stock
market has experienced historic volatility. Coming on the heels of what can
only be described as a spectacular 4th quarter 1999, we anticipated the
markets would be choppy. Investors grappled with interest rate hikes,
valuations, and implications of an "old economy" versus "new economy"
paradigm. Performance for the months of January and March was weak while
February was a very strong month. Companies focused on cellular phone
infrastructure and handsets did well as demand for the products, leading
technology, and market share gains drove stock prices higher.
While volatility of returns may remain high, we believe that the
fundamental outlook is bright. The recent earnings reports for the
companies in the Funds have rarely looked better; most have reported better
than expected earnings, or met expectations, and only a few holdings have
had earnings lower than expected. We believe these positive earnings trends
should continue and are the fundamental underpinning to strong returns
going forward. We will continue to be aggressive and flexible in trimming
or eliminating holdings where our confidence level for continued strong
revenue and/or earnings growth is in question.
7
<PAGE>
INTERVIEW WITH PROVIDENT MANAGERS (Continued)
Q THERE WAS EXTRAORDINARY STOCK MARKET VOLATILITY DURING THE MONTH OF APRIL.
WHAT CAUSED THIS RECENT VOLATILITY? DID THE VOLATILITY IMPACT GROWTH
EQUITIES?
A The catalyst for the stock market volatility in April was a combination of
higher than expected March PPI and CPI inflation numbers and a strong Cost
Employment Index report showing that inflation remained a potential problem
for the stock and bond markets. These reports were coupled with the 1st
quarter earnings reports of IBM and Microsoft, where in both cases, while
EPS growth was in line with analysts' expectations, the slowing of top line
growth for both companies surprised investors. The volatility did impact
growth equities, where valuations were the highest, more so than value
equities. Overnight, investors started to reevaluate the valuation levels
of the market as a whole, but more particularly, the valuations of
technology-related growth stocks.
The volatility affected all types of investment strategies, from small and
mid cap to large cap, and from growth to value strategies. From our point
of view there were several elements or conditions that drove this
extraordinary volatility. The first is that the supply/demand equation for
equities is very positive. So far in 2000, through March, there has been a
reduction of equity supply of $58 billion, accomplished through cash
buybacks. For the same time period, the new supply of equity offerings has
been $76 billion. So the flood of mutual fund inflows estimated at $100
billion has easily swallowed up the net equity supply of only $18 billion.
Not withstanding the potential supply of recent IPOs coming out of lockup,
we think this strong demand for equities is very likely to continue.
However, investors are increasingly focusing their investments in a narrow
group of technology sectors, where valuations are high, and where the
slightest problem, either economic or fundamental, real or imagined, causes
investors to become increasingly short-term oriented, causing an almost
"day trading mentality." This, hopefully temporary, paradigm shift has
dramatically increased the market's overall volatility.
We believe that maintaining a longer-term perspective based on very strong
growth in revenues and earnings of the companies in the Funds is essential.
Q WITH THE MARKET VALUATIONS AT RECORD LEVELS, WHAT SECTORS OF THE U.S.
ECONOMY LOOK PARTICULARLY ATTRACTIVE NOW? WHAT IS YOUR OUTLOOK FOR THE
FUTURE?
A We believe we are still in a bull market that will bolster equities in
general but will continue to favor small and large growth companies with
strong unit growth, such as technology and drug stocks. The stocks in the
Funds that have been under such severe pressure and dragged down absolute
8
<PAGE>
INTERVIEW WITH PROVIDENT MANAGERS (Continued)
and relative performance during April and May are the very stocks that are
making the strongest recoveries in June. We continue to believe the
positive economic backdrop, coupled with the strong and sustainable
earnings growth of the companies in the portfolio, will prevail for the
balance of this economic cycle. Further, we believe that the secular
opportunities in broadband infrastructure, web-enabling software, and rapid
shifts in global telecommunications, along with exciting opportunities in
the healthcare area, are the correct areas of concentration. We are
currently reducing some exposure to Electronic Technology. However, we
continue to feel the semi-conductor and capital equipment companies will
continue to show solid advances. Likewise, we have reduced our software
exposure where valuations look less attractive. As in April, we continue to
selectively add healthcare holdings.
In our view, we are experiencing protracted strong product cycles such as
broadband communications chips, fiberoptics equipment, health technology,
and web enabling software that promise to be the strong economic and stock
market drivers for the foreseeable future. In the United States alone the
penetration of usage of the personal computer, cell phone, and Internet has
only scratched the surface. We expect that over the next several years
dramatic increases in usage will be experienced. This coupled with the
advances in Health Technology, to include drug delivery systems, genomics,
and the biotechnology area argue that advances in technology -- only a few
years ago thought to be impossible -- are going to be realized.
In the months ahead, we will remain disciplined about cutting back or
selling stocks which have exceeded our price targets while re-circulating
capital into better risk/reward opportunities. While recent returns were
volatile, the Funds continue to make very solid progress. For many
investors, the recent stock market volatility is a good lesson that risk is
inherent in investing. Long-term investors must be willing to accept
fluctuations in their portfolio. While short periods of volatility are to
be expected, we believe maintaining a longer-term perspective is essential.
Given the narrowness of the market in the technology-related stocks, we
have added some non-technology companies for additional diversification. We
will continue to focus on finding attractive opportunities that we believe
will provide superior returns and add value to the Funds in the new
economy.
9
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES AT APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED GROWTH MID CAP SMALL COMPANY
FUND A FUND A FUND A GROWTH FUND A
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in Portfolios, at cost ... $ 32,088,603 $ 7,567,963 $ 19,607,594 $ 51,366,079
============ ============ ============ ============
Investments in Portfolios, at value .. $ 37,219,645 $ 9,076,802 $ 24,943,921 $ 63,202,964
Receivables:
Fund shares sold ................... 4,284 278 48,043 1,698
Investments in Portfolios sold ..... -- 16,335 -- 973
Due from advisor (Note 3) .......... 21,682 8,310 8,177 15,297
Prepaid expenses ..................... 1,493 5,499 11,211 11,812
------------ ------------ ------------ ------------
Total assets ..................... 37,247,104 9,107,224 25,011,352 63,232,744
------------ ------------ ------------ ------------
LIABILITIES
Payables:
Fund shares redeemed ............... -- 16,335 -- 973
Investments in Portfolios
purchased ........................ 4,284 278 48,043 1,698
Accrued expenses ..................... 26,444 21,065 34,847 54,189
Deferred trustees' compensation
(Note 3) ............................ 31,625 19,298 12,527 43,807
------------ ------------ ------------ ------------
Total liabilities ................. 62,353 56,976 95,417 100,667
------------ ------------ ------------ ------------
NET ASSETS
Applicable to shares of beneficial
interest outstanding ............... $ 37,184,751 $ 9,050,248 $ 24,915,935 $ 63,132,077
============ ============ ============ ============
Shares of beneficial interest
outstanding ........................ 2,244,388 453,116 995,037 3,064,668
------------ ------------ ------------ ------------
NET ASSET VALUE PER SHARE* ........... $ 16.57 $ 19.97 $ 25.04 $ 20.60
MAXIMUM OFFERING PRICE PER SHARE
(Net asset value divided by 94.25%) .. $ 17.58 $ 21.19 $ 26.57 $ 21.86
============ ============ ============ ============
COMPONENTS OF NET ASSETS
Paid-in capital ...................... $ 28,585,527 $ 6,428,104 $ 14,641,745 $ 51,213,204
Accumulated net investment loss ...... (196,194) (49,551) (129,512) (24,382)
Accumulated net realized gain on
investments ........................ 3,664,376 1,162,856 5,067,375 106,370
Net unrealized appreciation of
investments ........................ 5,131,042 1,508,839 5,336,327 11,836,885
------------ ------------ ------------ ------------
Net assets ....................... $ 37,184,751 $ 9,050,248 $ 24,915,935 $ 63,132,077
============ ============ ============ ============
</TABLE>
* Redemption price per share is equal to Net Asset Value less any applicable
sales charges.
See accompanying Notes to Financial Statements.
10
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES AT APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED GROWTH MID CAP SMALL COMPANY
FUND B FUND B FUND B GROWTH FUND B
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in Portfolios, at cost ................... $ 651,986 $ 1,704,907 $ 5,146,388 $ 1,379,216
=========== =========== =========== ===========
Investment in Portfolios, at value ................... $ 713,506 $ 1,871,558 $ 5,904,881 $ 1,596,874
Cash ................................................. 7,933 7,770 7,016 19,251
Receivables:
Fund shares sold ................................... -- 995 46,565 14,939
Due from advisor (Note 3) .......................... 20,696 8,724 7,777 8,125
Prepaid expenses ..................................... 6,419 10,874 13,653 11,536
----------- ----------- ----------- -----------
Total assets ...................................... 748,554 1,899,921 5,979,892 1,650,725
----------- ----------- ----------- -----------
LIABILITIES
Payables:
Investments in Portfolios purchased ................ -- 995 46,565 14,939
Accrued expenses ................................... 34,992 33,316 46,550 39,550
Deferred trustees' compensation (Note 3) ........... 4,546 4,546 4,546 4,546
----------- ----------- ----------- -----------
Total liabilities ............................... 39,538 38,857 97,661 59,035
----------- ----------- ----------- -----------
NET ASSETS
Applicable to shares of beneficial
interest outstanding ............................... $ 709,016 $ 1,861,064 $ 5,882,231 $ 1,591,690
=========== =========== =========== ===========
Shares of beneficial interest outstanding ........... 32,742 86,558 229,756 79,920
----------- ----------- ----------- -----------
NET ASSET VALUE AND OFFERING PRICE PER SHARE* ....... $ 21.65 $ 21.50 $ 25.60 $ 19.92
=========== =========== =========== ===========
COMPONENTS OF NET ASSETS
Paid-in capital ...................................... $ 623,528 $ 1,647,309 $ 5,165,487 $ 1,727,007
Accumulated net investment loss ...................... (2,836) (12,969) (33,790) (8,197)
Accumulated net realized gain (loss)
on investments ..................................... 26,804 60,073 (7,959) (344,778)
Net unrealized appreciation of investments ........... 61,520 166,651 758,493 217,658
----------- ----------- ----------- -----------
Net assets ......................................... $ 709,016 $ 1,861,064 $ 5,882,231 $ 1,591,690
=========== =========== =========== ===========
</TABLE>
* Redemption price per share is equal to Net Asset Value less any applicable
sales charges.
See accompanying Notes to Financial Statements.
11
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES at April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP SMALL COMPANY
FUND C GROWTH FUND C
--------- ---------
<S> <C> <C>
ASSETS
Investments in Portfolios, at cost ......................... $ 233,586 $ 52,041
========= =========
Investment in Portfolios, at value ......................... $ 268,190 $ 60,393
Cash ....................................................... 7,712 7,750
Receivables:
Due from advisor (Note 3) ................................ 7,312 7,504
Prepaid expenses ........................................... 13,199 13,198
--------- ---------
Total assets ............................................ 296,413 88,845
--------- ---------
LIABILITIES
Accrued expenses ........................................... 27,217 27,176
Deferred trustees' compensation (Note 3) ................... 1,337 1,337
--------- ---------
Total liabilities ....................................... 28,554 28,513
--------- ---------
NET ASSETS
Applicable to shares of beneficial interest outstanding .... $ 267,859 $ 60,332
========= =========
Shares of beneficial interest outstanding .................. 15,918 3,704
--------- ---------
NET ASSET VALUE AND OFFERING PRICE PER SHARE* .............. $ 16.83 $ 16.29
========= =========
COMPONENTS OF NET ASSETS
Paid-in capital ............................................ 311,566 67,531
Accumulated net investment loss ............................ (472) (93)
Accumulated net realized loss on investments ............... (77,839) (15,458)
Net unrealized appreciation on investments ................. 34,604 8,352
--------- ---------
Net assets .............................................. $ 267,859 $ 60,332
========= =========
</TABLE>
* Redemption price per share is equal to Net Asset Value less any applicable
sales charges.
See accompanying Notes to Financial Statements.
12
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED GROWTH MID CAP SMALL COMPANY
FUND A FUND A FUND A GROWTH FUND A
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Net investment income (loss) from
Portfolios ................................ $ 273,857 $ (20,469) $ (65,478) $ (6,738)
------------ ------------ ------------ ------------
Expenses
Administration fees (Note 3) .............. 44,194 16,876 28,521 9,123
Amortization of deferred
organization costs ..................... -- -- 869 --
Audit fees ................................ 6,537 4,871 4,740 5,046
Custody and accounting services fees ...... 2,988 2,984 2,988 2,987
Trustee fees .............................. 11,864 4,507 4,901 26,534
Distribution fees (Note 4) ................ 45,908 10,541 26,314 2,069
Legal fees ................................ 3,481 989 996 996
Miscellaneous ............................. 2,489 967 1,983 1,974
Registration expense ...................... 11,427 4,262 4,989 5,255
Reports to shareholders ................... 4,928 996 4,856 1,362
Shareholder servicing fees ................ 27,545 6,324 15,789 1,242
Transfer agent fees ....................... 11,437 11,795 15,481 10,055
------------ ------------ ------------ ------------
Total expenses ......................... 172,798 65,112 112,427 66,643
Less: fees waived and expenses
absorbed (Note 3) .................... (126,890) (50,353) (60,854) (62,090)
------------ ------------ ------------ ------------
Net expenses ........................... 45,908 14,759 51,573 4,553
------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) ......... 227,949 (35,228) (117,051) (11,291)
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments .......... 3,691,169 1,168,224 5,076,459 324,329
Net unrealized appreciation on
investments ............................... 1,433,484 157,801 2,993,219 11,475,643
------------ ------------ ------------ ------------
Net realized and unrealized gain on
investments ............................ 5,124,653 1,326,025 8,069,678 11,799,972
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............ $ 5,352,602 $ 1,290,797 $ 7,952,627 $ 11,788,681
============ ============ ============ ============
</TABLE>
See accompanying Notes to Financial Statements.
13
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED GROWTH MID CAP SMALL COMPANY
FUND B FUND B FUND B GROWTH FUND B
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Net investment income (loss) from
Portfolios ............................................. $ 4,093 $ (3,489) $ (10,858) $ (2,787)
--------- --------- --------- ---------
Expenses:
Administration fees (Note 3) ........................... 7,974 8,889 10,968 7,836
Audit fees ............................................. 4,741 5,212 5,313 4,979
Custody and accounting services fees ................... 2,975 2,972 2,976 2,988
Trustee fees ........................................... 17,829 5,020 5,136 5,034
Distribution fees (Note 4) ............................. 2,015 5,475 13,234 2,770
Legal fees ............................................. 1,504 1,448 1,039 1,295
Miscellaneous .......................................... 959 1,475 1,138 594
Registration expense ................................... 4,908 4,943 7,432 5,424
Reports to shareholders ................................ 985 1,052 1,138 972
Shareholder servicing fees ............................. 672 1,825 4,411 923
Transfer agent fee ..................................... 9,859 9,637 9,317 9,851
--------- --------- --------- ---------
Total expenses ...................................... 54,421 47,948 62,102 42,666
Less: fees waived and expenses
absorbed (Note 3) ................................. (51,466) (39,919) (40,222) (37,864)
--------- --------- --------- ---------
Net expenses ........................................ 2,955 8,029 21,880 4,802
--------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS) ...................... 1,138 (11,518) (32,738) (7,589)
--------- --------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments ................ 38,304 112,690 18,836 (342,231)
Net unrealized appreciation on
investments ............................................ 32,828 82,488 696,229 197,862
--------- --------- --------- ---------
Net realized and unrealized gain (loss)
on investments ...................................... 71,132 195,178 715,065 (144,369)
--------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ......................... $ 72,270 $ 183,660 $ 682,327 $(151,958)
========= ========= ========= =========
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP SMALL COMPANY
FUND C* GROWTH FUND C*
-------- --------
<S> <C> <C>
INVESTMENT INCOME
Net investment (loss) from Portfolios ..................... $ (141) $ (32)
-------- --------
Expenses:
Administration fees (Note 3) ............................ 2,553 2,509
Amortization of deferred organization costs ............. 3,750 3,750
Audit fees .............................................. 1,667 1,667
Custody and accounting services fees .................... 1,000 1,000
Trustee fees ............................................ 2,170 2,170
Distribution fees (Note 4) .............................. 200 57
Legal fees .............................................. 166 167
Miscellaneous ........................................... 66 257
Registration expense .................................... 2,483 2,483
Reports to shareholders ................................. 333 333
Shareholder servicing fees .............................. 67 19
Transfer agent fee ...................................... 3,333 3,333
-------- --------
Total expenses ........................................ 17,788 17,745
Less: fees waived and expenses absorbed (Note 3) ...... (17,457) (17,684)
-------- --------
Net expenses .......................................... 331 61
-------- --------
NET INVESTMENT LOSS ................................. (472) (93)
-------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments .......................... (77,839) (15,458)
Net unrealized appreciation on investments ................ 34,604 8,352
-------- --------
Net realized and unrealized loss on investments ........... (43,235) (7,106)
-------- --------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ... $(43,707) $ (7,199)
======== ========
</TABLE>
* Commenced operations on March 1, 2000.
See accompanying Notes to Financial Statements.
15
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED GROWTH
FUND A FUND A
---------------------------------- ----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000+ OCTOBER 31, 1999 APRIL 30, 2000+ OCTOBER 31, 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income (loss) ................ $ 227,949 $ 383,001 $ (35,228) $ (47,661)
Net realized gain on investments ............. 3,691,169 10,702,187 1,168,224 584,984
Net unrealized appreciation
(depreciation) on investments ............... 1,433,484 (4,275,882) 157,801 721,825
----------- ------------ ----------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................... 5,352,602 6,809,306 1,290,797 1,259,148
----------- ------------ ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................... (466,868) (386,588) -- --
From net realized gain ....................... (7,921,430) (2,848,190) (526,216) --
----------- ------------ ----------- ----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........ (8,388,298) (3,234,778) (526,216) --
----------- ------------ ----------- ----------
BENEFICIAL INTEREST SHARE TRANSACTIONS
Proceeds from shares sold .................... 3,233,540 21,785,746 1,970,871 2,928,492
Proceeds from reinvestment of
distributions .............................. 8,025,235 3,217,777 508,700 --
Costs of shares redeemed ..................... (3,379,236) (38,289,659) (1,001,547) (1,087,804)
----------- ------------ ----------- ----------
Net increase (decrease) in net assets
resulting from share transactions .......... 7,879,539 (13,286,136) 1,478,024 1,840,688
----------- ------------ ----------- ----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ................................. 4,843,843 (9,711,608) 2,242,605 3,099,836
NET ASSETS
Beginning of period .......................... 32,340,908 42,052,516 6,807,643 3,707,807
----------- ------------ ----------- ----------
END OF PERIOD ................................ $37,184,751 $ 32,340,908 $ 9,050,248 $6,807,643
=========== ============ =========== ==========
CHANGE IN SHARES
Shares sold .................................. 196,550 1,201,958 96,908 173,227
Shares issued on reinvestment of
distributions ............................... 512,600 190,209 27,015 --
Shares redeemed .............................. (199,157) (2,139,435) (50,759) (64,497)
----------- ------------ ----------- ----------
Net increase (decrease) ..................... 509,993 (747,268) 73,164 108,730
=========== ============ =========== ==========
</TABLE>
+ Unaudited.
See accompanying Notes to Financial Statements.
16
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP SMALL COMPANY
FUND A GROWTH FUND A
---------------------------------- ----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000+ OCTOBER 31, 1999 APRIL 30, 2000+ OCTOBER 31, 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss .................... $ (117,051) $ (85,123) $ (11,291) $ (15,262)
Net realized gain on investments ....... 5,076,459 1,080,502 324,329 531,825
Net unrealized appreciation
on investments ....................... 2,993,219 2,285,862 11,475,643 212,208
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ...................... 7,952,627 3,281,241 11,788,681 728,771
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gain ................. (746,987) -- -- --
------------ ------------ ------------ ------------
BENEFICIAL INTEREST SHARE TRANSACTIONS
Proceeds from shares sold .............. 7,591,145 3,519,247 1,817,944 759,140
Shares issued in exchange for Small
Company Growth Fund I ................ -- -- 60,938,915 --
Proceeds from reinvestment of
distributions ........................ 624,918 -- -- --
Costs of shares redeemed ............... (2,368,899) (653,348) (12,313,597) (3,274,841)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from share transactions .... 5,847,164 2,865,899 50,443,262 (2,515,701)
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ........................... 13,052,804 6,147,140 62,231,943 (1,786,930)
NET ASSETS
Beginning of period .................... 11,863,131 5,715,991 900,134 2,687,064
------------ ------------ ------------ ------------
END OF PERIOD .......................... $ 24,915,935 $ 11,863,131 $ 63,132,077 $ 900,134
============ ============ ============ ============
CHANGE IN SHARES
Shares sold ............................ 311,885 251,695 80,356 77,675
Shares issued in exchange for Small
Company Growth Fund I .................. -- -- 2,958,200 --
Shares issued on reinvestment of
distributions ........................ 32,047 -- -- --
Shares redeemed ........................ (96,321) (46,971) (40,323) (327,224)
------------ ------------ ------------ ------------
Net increase (decrease) ................ 247,611 204,724 2,998,233 (249,549)
============ ============ ============ ============
</TABLE>
+ Unaudited.
See accompanying Notes to Financial Statements.
17
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BALANCED GROWTH
FUND B FUND B
---------------------------- ----------------------------
MARCH 31,1999* MARCH 31,1999*
SIX MONTHS ENDED THROUGH SIX MONTHS ENDED THROUGH
APRIL 30, 2000+ OCTOBER 31, 1999 APRIL 30, 2000+ OCTOBER 31, 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income (loss) ............... $ 1,138 $ 924 $ (11,518) $ (3,888)
Net realized gain (loss) on investments ..... 38,304 (11,500) 112,690 (52,617)
Net unrealized appreciation on
investments ............................... 32,828 28,692 82,488 84,163
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............... 72,270 18,116 183,660 27,658
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income .................. (4,252) (646) -- --
----------- ----------- ----------- -----------
BENEFICIAL INTEREST SHARE TRANSACTIONS
Proceeds from shares sold ................... 266,074 480,452 725,598 956,124
Proceeds from reinvestment
of distributions .......................... 381 48 -- --
Costs of shares redeemed .................... (73,690) (49,737) (29,894) (2,082)
----------- ----------- ----------- -----------
Net increase in net assets resulting
from share transactions ................... 192,765 430,763 695,704 954,042
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS ................ 260,783 448,233 879,364 981,700
NET ASSETS
Beginning of period ......................... 448,233 -- 981,700 --
----------- ----------- ----------- -----------
END OF PERIOD ............................... $ 709,016 $ 448,233 $ 1,861,064 $ 981,700
=========== =========== =========== ===========
CHANGE IN SHARES
Shares sold ................................. 12,593 26,493 33,561 54,492
Shares issued on reinvestment
of distributions .......................... 18 3 -- --
Shares redeemed ............................. (3,682) (2,683) (1,380) (115)
----------- ----------- ----------- -----------
Net increase ................................ 8,929 23,813 32,181 54,377
=========== =========== =========== ===========
</TABLE>
+ Unaudited.
* Commencement of operations.
See accompanying Notes to Financial Statements.
18
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP SMALL COMPANY
FUND B GROWTH FUND B
--------------------------------- ----------------------------------
MARCH 31,1999* MARCH 31,1999*
SIX MONTHS ENDED THROUGH SIX MONTHS ENDED THROUGH
APRIL 30, 2000+ OCTOBER 31, 1999 APRIL 30, 2000+ OCTOBER 31, 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss .......................... $ (32,738) $ (1,052) $ (7,589) $ (608)
Net realized gain (loss) on investments ...... 18,836 (26,795) (342,231) (2,547)
Net unrealized appreciation on
investments ................................ 696,229 62,264 197,862 19,796
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................ 682,327 34,417 (151,958) 16,641
----------- ----------- ----------- -----------
BENEFICIAL INTEREST SHARE TRANSACTIONS
Proceeds from shares sold .................... 4,521,443 718,409 1,651,747 112,985
Costs of shares redeemed ..................... (53,283) (21,082) (37,725) --
----------- ----------- ----------- -----------
Net increase in net assets resulting
from share transactions .................... 4,468,160 697,327 1,614,022 112,985
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS ............... 5,150,487 731,744 1,462,064 129,626
NET ASSETS
Beginning of period .......................... 731,744 -- 129,626 --
----------- ----------- ----------- -----------
END OF PERIOD ................................ $ 5,882,231 $ 731,744 $ 1,591,690 $ 129,626
=========== =========== =========== ===========
CHANGE IN SHARES
Shares sold .................................. 185,045 48,396 72,005 9,767
Shares redeemed .............................. (2,206) (1,479) (1,852) --
----------- ----------- ----------- -----------
Net increase ................................. 182,839 46,917 70,153 9,767
=========== =========== =========== ===========
</TABLE>
+ Unaudited.
* Commencement of operations.
See accompanying Notes to Financial Statements.
19
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
MID CAP SMALL COMPANY
FUND C GROWTH FUND C
-------------- --------------
MARCH 1,2000* MARCH 1, 2000*
THROUGH THROUGH
APRIL 30,2000+ APRIL 30, 2000+
--------- ---------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss .......................... $ (472) $ (93)
Net realized loss on investments ............. (77,839) (15,458)
Net unrealized appreciation on investments ... 34,604 8,352
--------- ---------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS .............................. (43,707) (7,199)
--------- ---------
BENEFICIAL INTEREST SHARE TRANSACTIONS
Proceeds from shares sold .................... 311,649 67,531
Cost of shares redeemed ...................... (83) --
--------- ---------
Net increase in net assets resulting from
share transactions ......................... 311,566 67,531
--------- ---------
TOTAL INCREASE IN NET ASSETS ............... 267,859 60,332
========= =========
NET ASSETS
Beginning of period .......................... -- --
END OF PERIOD ................................ $ 267,859 $ 60,332
CHANGE IN SHARES
Shares sold .................................. 15,923 3,704
Shares redeemed .............................. (5) --
--------- ---------
Net increase ................................. 15,918 3,704
========= =========
+ Unaudited.
* Commencement of operations.
See accompanying Notes to Financial Statements.
20
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED
FUND A YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED --------------------------------------------------
APRIL 30, 2000+ 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $18.65 $16.95 $15.51 $13.91 $13.24 $11.24
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................... 0.15 0.22 0.16 0.16 0.14 0.15
Net realized and unrealized
gain on investments ................... 2.62 2.88 2.44 2.64 1.34 2.00
------ ------ ------ ------ ------ ------
Total from investment operations .......... 2.77 3.10 2.60 2.80 1.48 2.15
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income .............. (0.26) (0.22) (0.15) (0.16) (0.14) (0.15)
From net realized gain .................. (4.59) (1.18) (1.01) (1.04) (0.67) --
------ ------ ------ ------ ------ ------
Total distributions ....................... (4.85) (1.40) (1.16) (1.20) (0.81) (0.15)
------ ------ ------ ------ ------ ------
Net asset value, end of period ............ $16.57 $18.65 $16.95 $15.51 $13.91 $13.24
====== ====== ====== ====== ====== ======
Total return .............................. 16.44%^ 19.20% 17.85% 21.76% 11.96% 19.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) .... $ 37.2 $ 32.3 $ 42.0 $ 35.3 $ 12.9 $ 12.5
RATIOS TO AVERAGE NET ASSETS:#++
Expenses ................................ 1.05%+ 1.05% 1.05% 1.05% 1.05% 1.05%
Net investment income ................... 1.24%+ 1.21% 0.97% 1.10% 1.05% 1.32%
</TABLE>
+ Unaudited.
+ Annualized.
# Includes the Fund's share of expenses, net of fees waived and expenses
absorbed, allocated from the related Portfolio.
^ Not annualized
++ Net of fees waived and expenses absorbed. The combined fees waived and
expenses absorbed were 0.88%, 0.75%, 0.36%, 0.38%, 0.67% and 1.27%,
respectively.
See accompanying Notes to Financial Statements.
21
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH
FUND A
YEAR ENDED
OCTOBER 31, FEB. 3,1997*
SIX MONTHS ENDED ------------------- THROUGH
APRIL 30, 2000+ 1999 1998 OCTOBER 31, 1997
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........ $17.92 $13.67 $11.44 $10.00
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ....................... (0.07) (0.12) (0.07) (0.03)
Net realized and unrealized
gain on investments ..................... 3.49 4.37 2.30 1.47
------ ------ ------ ------
Total from investment operations ............ 3.42 4.25 2.23 1.44
------ ------ ------ ------
LESS DISTRIBUTIONS:
From net realized gain .................... (1.37) -- -- --
------ ------ ------ ------
Net asset value, end of period .............. $19.97 $17.92 $13.67 $11.44
====== ====== ====== ======
Total return ................................ 19.53%^ 31.09% 19.49% 14.40%^
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) ...... $ 9.1 $ 6.8 $ 3.7 $ 2.2
RATIOS TO AVERAGE NET ASSETS:#++
Expenses .................................. 1.35%+ 1.35% 1.35% 1.35%+
Net investment loss ....................... (0.84%)+ (0.85%) (0.68%) (0.62%)+
</TABLE>
+ Unaudited.
* Commencement of operations.
+ Annualized.
# Includes the Fund'sshare of expenses, net of fees waived and expenses
absorbed, allocated from the related Portfolio.
^ Not annualized
++ Net of fees waived and expenses absorbed. The combined fees waived and
expenses absorbed were 1.14%, 1.27%, 2.71% and 8.62%, respectively.
See accompanying Notes to Financial Statements.
22
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP
FUND A
------------------------------------------------------
DECEMBER 31, 1997*
SIX MONTHS ENDED YEAR ENDED THROUGH
APRIL 30, 2000+ OCTOBER 31, 1999 OCTOBER 31, 1998
------ ------ ------
<S> <C> <C> <C>
Net asset value, beginning of period .............. $15.87 $10.53 $10.00
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................. (0.11) (0.11) (0.03)
Net realized and unrealized gain
on investments ................................ 10.22 5.45 0.56
------ ------ ------
Total from investment operations .................. 10.11 5.34 0.53
------ ------ ------
LESS DISTRIBUTIONS:
From net realized gain .......................... (0.94) -- --
------ ------ ------
Net asset value, end of period .................... $25.04 $15.87 $10.53
====== ====== ======
Total return ...................................... 65.38%^ 50.71% 5.30%^
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) ............ $ 24.9 $ 11.9 $ 5.7
RATIOS TO AVERAGE NET ASSETS:#++
Expenses ........................................ 1.39%+ 1.39% 1.04%+
Net investment loss ............................. (1.11%)+ (1.03%) (0.43%)+
</TABLE>
+ Unaudited.
* Commencement of operations.
+ Annualized.
# Includes the Fund's share of expenses, net of fees waived and expenses
absorbed, allocated from the related Portfolio.
^ Not annualized
++ Net of fees waived and expenses absorbed. The combined fees waived and
expenses absorbed were 1.05%, 1.02% and 2.04%, respectively.
See accompanying Notes to Financial Statements.
23
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY
GROWTH FUND A
-----------------------------------------------------------
YEAR ENDED
OCTOBER 31, FEB. 3,1997*
SIX MONTHS ENDED ---------------------- THROUGH
APRIL 30, 2000+ 1999 1998 OCTOBER 31, 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ...... $ 13.55 $ 8.50 $ 10.42 $ 10.00
--------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..................... (0.11)++ (0.30) (0.12) (0.03)
Net realized and unrealized gain
(loss) on investments ................. 7.16 5.35 (1.80) 0.45
--------- --------- --------- ---------
Total from investment operations .......... 7.05 5.05 (1.92) 0.42
--------- --------- --------- ---------
Net asset value, end of period ............ $ 20.60 $ 13.55 $ 8.50 $ 10.42
========= ========= ========= =========
Total return .............................. 52.03%^ 59.41% (18.43%) 4.20%^
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions)..... $ 63.1 $ 0.9 $ 2.7 $ 3.1
RATIOS TO AVERAGE NET ASSETS:#++
Expenses ................................ 1.55%+ 1.55% 1.55% 1.55%+
Net investment loss ..................... (1.36%)+ (1.35%) (1.23%) (1.14%)+
</TABLE>
+ Unaudited.
* Commencement of operations.
+ Annualized.
# Includes the Fund'sshare of expenses, net of fees waived and expenses
absorbed, allocated from the Small Cap Portfolio.
^ Not annualized
++ Net of fees waived and expenses absorbed. The combined fees waived and
expenses absorbed were 4.61%, 5.85%, 2.77% and 10.00%, respectively.
++ Per share numbers have been calculated using the average shares method as a
result of the merger, which ocurred on April 28, 2000. (See Note 6)
See accompanying Notes to Financial Statements.
24
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED GROWTH
FUND B FUND B
---------------------------------- ---------------------------------
MARCH 31,1999* MARCH 31, 1999*
SIX MONTHS ENDED THROUGH SIX MONTHS ENDED THROUGH
APRIL 30, 2000+ OCTOBER 31, 1999 APRIL 30, 2000+ OCTOBER 31, 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ......... $18.82 $18.89 $18.05 $17.65
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .............. 0.08 0.04 (0.15) (0.07)
Net realized and unrealized gain
(loss) on investments .................... 2.93 (0.08) 3.60 0.47
------ ------ ------ ------
Total from investment operations ............. 3.01 (0.04) 3.45 0.40
------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income ................. (0.18) (0.03) -- --
------ ------ ------ ------
Net asset value, end of period ............... $21.65 $18.82 $21.50 $18.05
====== ====== ====== ======
Total return ................................. 19.22%^ (0.20%)^ 18.85%^ 2.27%^
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions)........ $ 0.7 $ 0.4 $ 1.9 $ 1.0
RATIOS TO AVERAGE NET ASSETS:#++
Expenses ................................... 1.90%+ 1.90%+ 2.10%+ 2.10%+
Net investment income (loss) ............... 0.42%+ 0.66%+ (1.57%)+ (1.70%)+
</TABLE>
+ Unaudited.
* Commencement of operations.
+ Annualized.
# Includes each Funds' share of expenses, net of fees waived and expenses
absorbed, allocated from the related Portfolio.
^ Not annualized.
++ Net of fees waived and expenses absorbed. The combined fees waived and
expenses absorbed were 13.76% and 44.33%, respectively, in the case of the
Balanced Fund B, 5.14% and 24.58%, respectively, in the case of the Growth
Fund B.
See accompanying Notes to Financial Statements.
25
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP SMALL COMPANY
FUND B GROWTH FUND B
---------------------------------- -----------------------------------
MARCH 31,1999* MARCH 31, 1999*
SIX MONTHS ENDED THROUGH SIX MONTHS ENDED THROUGH
APRIL 30, 2000+ OCTOBER 31, 1999 APRIL 30, 2000+ OCTOBER 31, 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ......... $15.60 $13.03 $13.27 $ 9.64
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ........................ (0.15) (0.02) (0.10) (0.06)
Net realized and unrealized gain
on investments ........................... 10.15 2.59 6.75 3.69
------ ------ ------ ------
Total from investment operations ............. 10.00 2.57 6.65 3.63
------ ------ ------ ------
Net asset value, end of period ............... $25.60 $15.60 $19.92 $13.27
====== ====== ====== ======
Total return ................................. 64.1%^ 19.72%^ 50.11%^ 37.66%^
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions)........ $ 5.9 $ 0.7 $ 1.6 $ 0.1
RATIOS TO AVERAGE NET ASSETS:# ++
Expenses ................................... 2.14%+ 2.14%+ 2.30%+ 2.30%+
Net investment loss ........................ (1.85%)+ (1.69%)+ (2.05%)+ (2.07%)+
</TABLE>
+ Unaudited.
* Commencement of operations.
+ Annualized.
# Includes the Fund's share of expenses, net of fees waived and expenses
absorbed, allocated from the Mid Cap and Small CapPortfolios.
^ Not annualized.
++ Net of fees waived and expenses absorbed. The combined fees waived and
expenses absorbed were 2.64% and 94.15%, respectively, in the case of the
Mid Cap Fund B and 9.60% and 204.11%, respectively, in the case of the
Small Company Growth Fund B.
See accompanying Notes to Financial Statements.
26
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
MID CAP SMALL COMPANY
FUND C GROWTH FUND C
-------------- -------------
MARCH 1, 2000* MARCH 1, 2000*
THROUGH THROUGH
APRIL 30, 2000+ APRIL 30, 2000+
Net asset value, beginning of period .......... $20.00 $20.00
------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ......................... (0.03) (0.03)
Net realized and unrealized loss
on investments ............................ (3.14) (3.68)
------ ------
Total from investment operations .............. (3.17) (3.71)
------ ------
Net asset value, end of period ................ $16.83 $16.29
====== ======
Total return .................................. (15.85%)^ (18.55%)^
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) ........ $ 0.3 $ 0.1
RATIOS TO AVERAGE NET ASSETS:#++
Expenses .................................... 2.14%+ 2.30%+
Net investment loss ......................... (0.59%)+ (0.67%)+
+ Unaudited.
* Commencement of operations.
+ Annualized.
# Includes each Funds' share of expenses, net of fees waived and expenses
absorbed, allocated from the Mid Cap and Small Cap Portfolios.
^ Not annualized.
++ Net of fees waived and expenses absorbed. The combined fees waived and
expenses absorbed were 60.79% and 349.14% for the Mid Cap Fund C and Small
Company Growth Fund C, respectively.
See accompanying Notes to Financial Statements.
27
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
NOTE 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 (the "1940 Act") as an open-end, diversified management investment
company. The Trust currently offers twelve 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 A
(formerly known as Provident Investment Counsel Pinnacle Small Company Growth
Fund), Provident Investment Counsel Small Company Growth Fund B, Provident
Investment Counsel Small Company Growth Fund C, 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), Provident Investment
Counsel Mid Cap Fund B, and Provident Investment Counsel Mid Cap Fund C (each a
"Fund" and collectively the "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 Fund. The financial
statements of the Portfolios are included elsewhere in this report and should be
read in conjunction with the Funds' financial statements. The financial
statements of the Provident Investment Counsel Growth Fund I and Provident
Investment Counsel Small Cap Growth Fund I are in separate reports.
28
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles.
A. INVESTMENT VALUATION. The Funds reflect their investments in the
respective Portfolio at their proportionate interest in the value of
the Portfolio's net assets. Valuation of securities by the Portfolios
is discussed in Note 2A of the Portfolio's 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
investments 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 provisions are
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. Actual
results could differ from those estimates.
NOTE 3 - TRANSACTIONS WITH AFFILIATES
The Trust has entered into administration agreements with Provident
Investment Counsel, Inc. ("PIC") and Investment Company Administration L.L.C.
("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.
29
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
PIC has voluntarily undertaken to limit the Funds' expenses, including
those expenses allocated from the Portfolios, to the following levels:
Provident Investment Counsel Balanced Fund A 1.05%
Provident Investment Counsel Growth Fund A 1.35%
Provident Investment Counsel Mid Cap Fund A 1.39%
Provident Investment Counsel Small Company Growth Fund A 1.55%
Provident Investment Counsel Balanced Fund B 1.90%
Provident Investment Counsel Growth Fund B 2.10%
Provident Investment Counsel Mid Cap Fund B 2.14%
Provident Investment Counsel Small Company Growth Fund B 2.30%
Provident Investment Counsel Mid Cap Fund C 2.14%
Provident Investment Counsel Small Company Growth Fund C 2.30%
The percentages are based on the Funds' average daily net assets.
Pursuant to a contract with the Funds, PIC has agreed to reimburse each
Fund and Portfolio for investment advisory fees and other expenses for ten years
ending March 1, 2010. PIC reserves the right to be reimbursed for any waiver of
its fees or expenses paid on behalf of the Funds and Portfolios if, within three
subsequent years, a Fund's or Portfolio's expenses are less than the limit
agreed to by PIC. Any reimbursements to PIC are subject to approval by the Board
of Trustees.
Fees waived and expenses absorbed by PIC for the period ended April 30,
2000 were as follows:
Fees Expenses
Waived Absorbed
------- --------
Provident Investment Counsel Balanced Fund A $36,726 $90,164
Provident Investment Counsel Growth Fund A 8,433 41,920
Provident Investment Counsel Mid Cap Fund A 21,051 39,803
Provident Investment Counsel Small Company
Growth Fund A 1,655 60,435
Provident Investment Counsel Balanced Fund B 537 50,929
Provident Investment Counsel Growth Fund B 1,460 38,459
Provident Investment Counsel Mid Cap Fund B 3,529 36,693
Provident Investment Counsel Small Company
Growth Fund B 739 37,126
Provident Investment Counsel Mid Cap Fund C 53 17,404
Provident Investment Counsel Small Company
Growth Fund C 9 17,675
30
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
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. The Distributor is an affiliate of ICA. The
distributor received no commissions from sales or redemptions of fund shares
during the period ended April 30, 2000.
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 the 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.
For the period ended April 30, 2000, the change in the value of the phantom
share account was as follows:
Unrealized
Appreciation
------------
Provident Investment Counsel Balanced Fund A $7,691
Provident Investment Counsel Growth Fund A 4,835
Provident Investment Counsel Mid Cap Fund A 3,364
Provident Investment Counsel Small Company
Growth Fund A 10,823
Provident Investment Counsel Balanced Fund B 1,567
Provident Investment Counsel Growth Fund B 1,567
Provident Investment Counsel Mid Cap Fund B 1,567
Provident Investment Counsel Small Company
Growth Fund B 1,567
Provident Investment Counsel Mid Cap Fund C 568
Provident Investment Counsel Small Company
Growth Fund C 568
31
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
NOTE 4 - DISTRIBUTION AND SHAREHOLDER SERVICES PLANS
The Trust, on behalf of the Balanced A, Growth A, Mid Cap A and Small
Company Growth A Funds, has approved a Distribution Plan (the "12b-1 Plan") in
accordance with Rule 12b-1 under the 1940 Act. The 12b-1 Plan provides that each
A Fund will pay a fee to PIC (as the distribution coordinator) at an annual rate
of up to 0.25% of each Fund's average daily net assets as reimbursement for
expenses incurred on distribution related activities. With respect to the
Balanced A and Mid Cap A Funds, reimbursable amounts in excess of the maximum
may be reimbursed in subsequent years, subject to the continuation of the Plan.
There were no unreimbursed expenses as of April 30, 2000.
Additionally, the Trust, on behalf of the Balanced B, Growth B, Mid Cap B,
Small Company Growth B, Mid Cap C and Small Company C Funds, has approved a
Distribution Plan (the "12b-1 Plan") in accordance with Rule 12b-1 under the
1940 Act. The 12b-1 Plan provides that each B Fund and C Fund will pay a fee to
PIC (as the distribution coordinator) at an annual rate of up to 0.75% of each
Fund's average daily net assets as reimbursement for expenses incurred on
distribution related activities.
Pursuant to a Shareholder Services Plan, effective June 30, 1998 (except
with respect to the Mid Cap Fund A for which the effective date was September
30, 1998), each A Fund pays the Advisor a monthly fee at an annual rate of 0.15%
of its average daily net assets as compensation for the provision of shareholder
services.
Additionally, pursuant to the Shareholder Services Plan effective March 31,
1999 (except with respect to Mid Cap Fund C and Small Company Fund C for which
the effective date was March 1, 2000), each B Fund and C Fund pays the Advisor a
monthly fee at an annual rate of 0.25% of its average daily net assets as
compensation for the provision of shareholder services.
32
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
NOTE 5 - INVESTMENT TRANSACTIONS
Additions and reductions in the investments in the respective Portfolios
for the period ended April 30, 2000 were as follows:
Additions Reductions
----------- -----------
Provident Investment Counsel Balanced Fund A $ 3,350,362 $ 3,955,277
Provident Investment Counsel Growth Fund A 2,004,157 1,118,098
Provident Investment Counsel Mid Cap Fund A 7,614,858 2,604,725
Provident Investment Counsel Small Company
Growth Fund A 78,042,017 69,980,546
Provident Investment Counsel Balanced Fund B 266,073 77,561
Provident Investment Counsel Growth Fund B 725,598 29,894
Provident Investment Counsel Mid Cap Fund B 4,521,442 53,283
Provident Investment Counsel Small Company
Growth Fund B 1,651,746 37,726
Provident Investment Counsel Mid Cap Fund C 311,649 83
Provident Investment Counsel Small Company
Growth Fund C 67,531 --
As of April 30, 2000 the Funds owned the following percentages of the
Portfolios listed below:
Provident Investment Counsel
Balanced Fund A 98.1% of PIC Balanced Portfolio
Provident Investment Counsel
Growth Fund A 4.3% of PIC Growth Portfolio
Provident Investment Counsel
Mid Cap Fund A 80.2% of PIC Mid Cap Portfolio
Provident Investment Counsel
Small Company Growth Fund A 18.6% of PIC Small Cap Portfolio
Provident Investment Counsel
Balanced Fund B 1.9% of PIC Balanced Portfolio
Provident Investment Counsel
Growth Fund B 0.9% of PIC Growth Portfolio
Provident Investment Counsel
Mid Cap Fund B 18.9% of PIC Mid Cap Portfolio
Provident Investment Counsel
Small Company Growth Fund B 0.5% of PIC Small Cap Portfolio
Provident Investment Counsel
Mid Cap Fund C 0.9% of PIC Mid Cap Portfolio
Provident Investment Counsel
Small Company Growth Fund C 0.1%* of PIC Small Cap Portfolio
* Less than 0.1%.
33
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)
--------------------------------------------------------------------------------
NOTE 6 - FUND MERGER
On April 28, 2000, the Provident Investment Counsel Small Company Growth
Fund A acquired all the net assets of the Provident Investment Counsel Small
Company Growth Fund I. This acquisition was accomplished by the tax-free
exchange of shares of equal value on the acquisition date, pursuant to a plan of
reorganization approved by the board of trustees. The net assets of the
Provident Investment Counsel Small Company Growth Fund I immediately prior to
the acquisition was as follows:
Net Unrealized
Appreciation
Net Assets Paid in Capital on Investments
---------- --------------- --------------
Provident Investment Counsel
Small Company
Growth Fund I $60,938,915 $49,432,804 $11,506,111
The net assets of Provident Investment Counsel Small Company Growth Fund A,
the accounting survivor of the reorganization, immediately before the
acquisition were $2,193,162.
34
<PAGE>
PIC BALANCED PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares EQUITY SECURITIES -- 64.44% Value
--------------------------------------------------------------------------------
APPAREL AND SHOE -- 0.69%
7,100 Gap, Inc. $ 260,925
------------
AUTOMOBILES -- 0.53%
5,000 Harley-Davidson, Inc. 199,062
------------
BIOTECHNOLOGY -- 0.52%
1,700 Genentech, Inc.* 198,900
------------
BUILDING PRODUCTS -- 1.99%
7,000 Home Depot, Inc. 392,437
7,300 Lowe's Companies, Inc. 361,350
------------
Total Building Products 753,787
------------
CHEMICALS -- 0.95%
7,200 Pharmacia Corp. 359,550
------------
COMPUTER SERVICES -- 2.18%
9,000 Sun Microsystems, Inc.* 827,437
------------
COMPUTER SOFTWARE -- 4.67%
5,000 Gemstar International Group, Ltd.* 231,250
11,572 Microsoft Corp.* 807,147
5,400 Oracle Corp.* 431,662
6,100 SAP AG-Sponsored ADR 299,662
------------
Total Computer Software 1,769,721
------------
COSMETICS -- 0.87%
7,500 Estee Lauder Co. - Class A 330,937
------------
CREDIT & FINANCE -- 1.13%
5,600 Morgan Stanley Dean Witter & Co. 429,800
------------
DISCOUNT -- 1.30%
9,100 Costco Companies, Inc.* 491,969
------------
DRUGS -- 6.41%
11,000 Bristol-Myers Squibb Co. 576,812
11,700 Merck & Co., Inc. 813,150
6,100 Schering-Plough Corp. 245,906
7,000 Warner-Lambert Co. 796,687
------------
Total Drugs 2,432,555
------------
ELECTRIC COMPONENTS/SEMICONDUCTORS -- 5.14%
9,100 Analog Devices, Inc.* 698,994
5,300 Texas Instruments, Inc. 863,237
5,700 Vitesse Semiconductor Corp.* 387,956
------------
Total Electric Components/Semiconductors 1,950,187
------------
ELECTRICAL EQUIPMENT/PERIPHERALS -- 5.71%
2,100 Apple Computer, Inc. 260,531
5,000 Applied Materials, Inc.* 509,062
5,000 EMC Corp.* 694,687
1,900 PMC-Sierra, Inc.* 364,562
3,700 SanDisk Corp.* 339,013
------------
Total Electrical Equipment/Peripherals 2,167,855
------------
ELECTRICAL PRODUCTS -- 2.07%
5,000 General Electric Co. 786,250
------------
ELECTRONICS -- 0.81%
1,200 Agilent Technologies, Inc.* 106,350
1,800 International Business Machines Corp. 200,925
------------
Total Electronics 307,275
------------
ENTERTAINMENT & LEISURE -- 5.64%
8,000 AT & T Corp./Liberty Media Corp.* 399,500
4,200 EchoStar Communications Corp.* 267,488
10,700 Time Warner, Inc. 962,331
9,400 Viacom, Inc.-Class B* 511,125
------------
Total Entertainment & Leisure 2,140,444
------------
FINANCIAL SERVICES -- 1.07%
2,700 American Express Co. 405,169
------------
INTERNET SERVICES -- 0.78%
1,100 Exodus Communications, Inc.* 97,281
700 VeriSign, Inc.* 97,563
2,100 Vignette Corp.* 101,194
------------
Total Internet Services 296,038
------------
35
<PAGE>
PIC BALANCED PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED) - (CONTINUED)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
MEDICAL & DENTAL PRODUCTS -- 1.32%
5,000 Allergan, Inc. $ 294,375
1,300 MedImmune Inc.* 207,919
------------
Total Medical & Dental Products 502,294
------------
MEDICAL INSTRUMENTS -- 0.47%
3,400 Medtronic, Inc. 176,588
------------
NETWORKING -- 6.04%
1,000 Brocade Communications Systems, Inc.* 124,000
28,700 Cisco Systems, Inc.* 1,989,717
2,400 Network Appliance, Inc.* 177,450
------------
Total Networking 2,291,167
------------
RAIL -- 0.87%
4,600 Kansas City Southern Industries, Inc. 330,625
------------
SPECIALTY RETAIL -- 1.27%
10,000 Kohl's Corp.* 480,000
------------
SUPERMARKET -- 1.24%
10,700 Safeway, Inc.* 472,138
------------
TELECOMMUNICATIONS -- 9.78%
14,500 AT & T Wireless Group* 461,281
2,700 CIENA Corp.* 333,788
5,700 Corning Glass, Inc. 1,125,750
5,000 Ericsson, (L.M.) Telephone Co. ADR 442,188
2,800 JDS Uniphase Corp.* 290,500
3,000 Nextel Communications, Inc.-Class A* 328,313
12,800 Nokia Corp. ADR 728,000
------------
Total Telecommunications 3,709,820
------------
TELEPHONE COMMUNICATIONS -- 0.99%
15,000 McLeodUSA, Inc.* 375,000
------------
TOTAL EQUITY SECURITIES (cost $19,221,173) 24,445,493
------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
FIXED INCOME SECURITIES -- 26.21%
CORPORATE BONDS -- 4.05%
$ 425,000 Associates Corp. of North America,
6.375%, 08/15/2000 $ 424,537
375,000 Hanson Overseas B.V.,
7.375%, 1/15/2003 372,656
100,000 Hertz Corp.,
6.000%, 1/15/2003 96,125
300,000 Household Bank FSB,
6.500%, 7/15/2003 285,750
350,000 Progressive Corp.,
10.125%, 12/15/2000 356,231
------------
Total Corporate Bonds 1,535,299
------------
FINANCE BONDS -- 1.67%
260,000 Goldman Sachs Group, Inc.,
7.500%, 1/28/2005 255,775
100,000 Household Finance Corp.,
5.875%, 9/25/2004 92,500
300,000 Paine Webber Group, Inc.,
6.450%, 12/1/2003 284,250
------------
Total Finance Bonds 632,525
------------
INDUSTRIAL BONDS -- 3.48%
700,000 PDVSA Finance Ltd.,
8.750%, 2/15/2004 683,375
250,000 Target Corp.,
7.500%, 2/15/2005 250,313
400,000 TRW Inc.,
6.500%, 6/1/2002 386,500
------------
Total Industrial Bonds 1,320,188
------------
TREASURY OBLIGATIONS -- 17.01%
520,000 U.S Treasury Bonds,
9.000%, 11/15/2018 672,260
2,650,000 U.S Treasury Bonds,
5.250%, 02/15/2029 2,332,965
780,000 U.S Treasury Notes,
6.500%, 02/28/2002 777,259
1,050,000 U.S Treasury Notes,
6.500%, 03/31/2002 1,046,390
300,000 U.S Treasury Notes,
5.500%, 03/31/2003 291,358
360,000 U.S Treasury Notes,
5.875%, 02/15/2004 351,799
36
<PAGE>
PIC BALANCED PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED) - (CONTINUED)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
$ 500,000 U.S Treasury Notes,
5.875%, 11/15/2004 $ 486,916
310,000 U.S Treasury Notes,
6.500%, 02/15/2010 316,256
170,000 U.S Treasury Notes,
6.250%, 05/15/2030 176,849
------------
Total Treasury Obligations 6,452,052
------------
TOTAL FIXED INCOME SECURITIES (cost $9,971,777) 9,940,064
------------
MONEY MARKET INVESTMENTS -- 9.18%
1,741,487 Temporary Investment Fund Inc. - Temp Fund 1,741,488
1,741,487 Temporary Investment Fund Inc. - Temp Cash 1,741,488
------------
TOTAL MONEY MARKET INVESTMENTS (cost $3,482,976) 3,482,976
------------
TOTAL INVESTMENTS (cost $32,675,926) 37,868,533
------------
VALUE
--------------------------------------------------------------------------------
OTHER ASSETS -- 2.05%
Receivables:
Securities sold $ 572,506
Interest sold 4,284
Dividends and interests 194,747
Other assets 1,207
------------
Total Other Assets 772,744
------------
TOTAL ASSETS 38,641,277
------------
LIABILITIES -- (1.88%)
Payables:
Interest redeemed 656,503
Due to advisor (Note 3) 363
Accrued Expenses 23,551
Deferred trustees' compensation (Note 3) 27,394
------------
Total Liabilities 707,811
------------
NET ASSETS - 100.00% $ 37,933,466
============
* Non-income producing security.
See accompanying Notes to Financial Statements.
37
<PAGE>
PIC GROWTH PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares EQUITY SECURITIES -- 95.23% Value
--------------------------------------------------------------------------------
APPAREL AND SHOE -- 0.98%
56,700 Gap,Inc. $ 2,083,725
------------
AUTOMOBILES -- 0.76%
40,400 Harley-Davidson, Inc. 1,608,425
------------
BIOTECHNOLOGY -- 0.73%
13,200 Genentech, Inc.* 1,544,400
------------
BUILDING PRODUCTS -- 3.05%
59,550 Home Depot, Inc. 3,338,522
63,300 Lowe's Companies, Inc. 3,133,350
------------
Total Building Products 6,471,872
------------
CHEMICALS -- 1.39%
59,200 Pharmacia Corp. 2,956,300
------------
COMPUTER SERVICES -- 4.12%
95,200 Sun Microsystems, Inc.* 8,752,450
------------
COMPUTER SOFTWARE -- 7.87%
27,700 Adobe Systems, Inc. 3,349,969
37,600 Gemstar International Group, Ltd.* 1,739,000
89,924 Microsoft Corp.* 6,272,199
39,600 Oracle Corp.* 3,165,525
44,400 SAP AG-Sponsored ADR 2,181,150
------------
Total Computer Software 16,707,843
------------
COSMETICS & SOAPS -- 1.67%
60,200 Estee Lauder Co.-Class A 2,656,325
14,800 Procter & Gamble Co. 882,450
------------
Total Cosmetics & Soaps 3,538,775
------------
DISCOUNT -- 1.84%
72,200 Costco Companies, Inc.* 3,903,312
------------
DRUGS -- 8.66%
97,500 Bristol-Myers Squibb Co. 5,112,656
60,500 Merck & Co., Inc. 4,204,750
45,200 Schering-Plough Corp. 1,822,125
63,600 Warner-Lambert Co. 7,238,475
------------
Total Drugs 18,378,006
------------
ELECTRONICS -- 0.88%
8,600 Agilent Technologies, Inc.* 762,175
10,000 International Business Machines Corp. 1,116,250
------------
Total Electronics 1,878,425
------------
ELECTRICAL EQUIPMENT/PERIPHERALS -- 8.91%
21,200 Apple Computer, Inc. 2,630,125
43,600 Applied Materials, Inc.* 4,439,025
44,900 EMC Corp.* 6,238,294
13,300 PMC-Sierra, Inc.* 2,551,937
33,400 SanDisk Corp.* 3,060,275
------------
Total Electrical Equipment/Peripherals 18,919,656
------------
ELECTRIC COMPONENTS/SEMICONDUCTORS -- 7.52%
64,900 Analog Devices, Inc.* 4,985,131
51,000 Texas Instruments, Inc. 8,306,625
39,100 Vitesse Semiconductor Corp.* 2,661,244
------------
Total Electric Components/Semiconductors 15,953,000
------------
ELECTRICAL PRODUCTS -- 3.27%
44,100 General Electric Co. 6,934,725
------------
ENTERTAINMENT & LEISURE -- 8.07%
63,400 AT&T Corp./Liberty Media Corp.-Class A* 3,166,037
30,000 CBS Corp. 1,762,500
35,200 EchoStar Communications Corp.* 2,241,800
92,500 Time Warner, Inc. 8,319,219
30,000 Viacom, Inc.-Class B* 1,631,250
------------
Total Entertainment & Leisure 17,120,806
------------
FINANCIAL SERVICES -- 3.07%
20,000 American Express Co. 3,001,250
45,800 Morgan Stanley Dean Witter & Co. 3,515,150
------------
Total Financial Services 6,516,400
------------
INTERNET SERVICES -- 1.10%
8,700 Exodus Communications, Inc.* 769,406
6,300 VeriSign, Inc.* 878,062
14,100 Vignette Corp.* 679,444
------------
Total Internet Services 2,326,912
------------
38
<PAGE>
PIC GROWTH PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED) - (CONTINUED)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
MEDICAL & DENTAL PRODUCTS -- 3.05%
41,500 Allergan, Inc. $ 2,443,312
29,100 Johnson & Johnson 2,400,750
10,200 MedImmune, Inc.* 1,631,363
------------
Total Medical & Dental Products 6,475,425
------------
MEDICAL INSTRUMENTS -- 0.77%
31,500 Medtronic, Inc. 1,636,031
------------
NETWORKING -- 7.90%
6,800 Brocade Communications Systems, Inc.* 843,200
219,100 Cisco Systems, Inc.* 15,189,792
9,800 Network Appliance, Inc.* 724,588
------------
Total Networking 16,757,580
------------
SPECIALTY RETAIL -- 1.82%
80,716 Kohl's Corp.* 3,874,368
------------
SUPERMARKETS -- 1.79%
86,000 Safeway, Inc.* 3,794,750
------------
TELECOMMUNICATIONS -- 13.76%
107,800 AT& T Wireless Group* 3,429,388
24,800 CIENA Corp.* 3,065,900
38,600 Corning Glass, Inc. 7,623,500
37,000 Ericsson, (L.M.) Telephone Co. ADR 3,272,188
18,600 JDS Uniphase Corp.* 1,929,750
30,400 Nextel Communications, Inc. - Class A* 3,326,900
115,200 Nokia Corp. ADR 6,552,000
------------
Total Telecommunications 29,199,626
------------
TELEPHONE -- 1.18%
100,800 McLeodUSA, Inc.* 2,520,000
------------
TRANSPORTATION-RAIL -- 1.07%
31,600 Kansas City Southern Industries, Inc. 2,271,250
------------
TOTAL EQUITY SECURITIES (cost $154,135,026) 202,124,062
------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------
MONEY MARKET INVESTMENTS -- 7.04%
$7,477,354 Temporary Investment Fund Inc. - Temp Fund $ 7,477,354
7,477,354 Temporary Investment Fund Inc. - Temp Cash 7,477,354
------------
TOTAL MONEY MARKET INVESTMENTS (cost $14,954,708) 14,954,708
------------
TOTAL INVESTMENTS (cost $169,089,734) 217,078,770
------------
OTHER ASSETS -- 1.01% Receivables:
Securities sold 1,950,530
Interest sold 34,900
Dividends and interest 124,759
Prepaid Insurance 4,243
Other assets 23,317
------------
Total Other Assets 2,137,749
------------
TOTAL ASSETS 219,216,519
------------
LIABILITIES -- (3.28%)
Payables:
Securities purchased 6,731,516
Interest redeemed 17,270
Due to advisor (Note 3) 121,143
Accrued expenses 29,649
Deferred trustees' compensation (Note 3) 64,398
------------
Total Liabilities 6,963,976
------------
NET ASSETS - 100.00% $212,252,543
============
* Non-income producing security.
See accompanying Notes to Financial Statements.
39
<PAGE>
PIC MID CAP PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares EQUITY SECURITIES -- 93.24% Value
--------------------------------------------------------------------------------
AIRLINES -- 3.50%
26,750 Ryanair Holdings plc* $ 1,090,062
------------
APPAREL AND SHOE -- 1.69%
13,700 Intimate Brands, Inc. - Class A 527,450
------------
BIOTECHNOLOGY -- 1.97%
13,000 Celgene Corp.* 611,812
------------
BUSINESS SERVICES -- 0.65%
11,500 Profit Recovery Group International, Inc. (The)* 201,969
------------
COMPUTER SERVICES -- 3.68%
5,600 CSG Systems International, Inc.* 258,300
13,100 Amdocs Ltd.* 886,706
------------
Total Computer Services 1,145,006
------------
COMPUTER SOFTWARE -- 10.06%
4,100 Adobe Systems, Inc. 495,844
3,200 Aspect Development, Inc.* 221,200
5,550 Business Objects S.A.* 543,206
3,450 Macromedia, Inc.* 300,150
8,950 Mercury Interactive Corp.* 805,500
1,300 Micromuse, Inc.* 127,562
7,500 Rational Software Corp.* 638,437
------------
Total Computer Software 3,131,899
------------
DISCOUNT -- 1.02%
5,500 Dollar Tree Stores, Inc.* 318,312
------------
DRUGS -- 5.82%
20,250 Alza Corp.* 892,266
20,850 Teva Pharmaceutical Industries, Ltd. 917,400
------------
Total Drugs 1,809,666
------------
ELECTRIC POWER -- 2.13%
15,050 Montana Power Co. 663,141
------------
ELECTRIC COMPONENTS/SEMICONDUCTORS -- 20.41%
8,150 Altera Corp.* 833,337
6,600 Conexant Systems, Inc.* 395,175
4,800 Credence Systems Corp.* 685,200
4,150 Cree, Inc.* 603,825
5,700 Cypress Semiconductor Corp.* 296,044
5,150 Globespan, Inc.* 489,250
8,900 Integrated Device Technology, Inc.* 427,756
13,500 Jabil Circuit, Inc.* 552,656
2,450 QLogic Corp.* 245,766
13,750 SCI Systems, Inc.* 732,187
6,525 Teradyne, Inc.* 717,750
6,000 Veeco Instruments, Inc.* 372,750
------------
Total Electric Components/ Semiconductors 6,351,696
------------
ELECTRICAL EQUIPMENT/PERIPHERALS -- 2.18%
2,600 SanDisk Corp.* 238,225
5,000 TranSwitch Corp.* 440,312
------------
Total Electrical Equipment / Peripherals 678,537
------------
ELECTRONICS -- 1.31%
6,300 Maxim Integrated Products, Inc.* 408,319
------------
ENTERTAINMENT & LEISURE -- 1.37%
8,050 UnitedGlobalCom, Inc.* 427,656
------------
INTERNET SERVICES -- 7.48%
6,000 Alteon Websystems, Inc.* 408,000
5,200 Ariba, Inc.* 385,775
4,250 Clarent Corp.* 289,000
11,025 Intuit, Inc.* 396,211
3,000 VeriSign, Inc.* 418,125
9,000 Vignette Corp.* 433,688
------------
Total Internet Services 2,330,799
------------
MEDICAL AND DENTAL PRODUCTS -- 2.10%
11,100 Allergan, Inc. 653,513
------------
40
<PAGE>
PIC MID CAP PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED) - (CONTINUED)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
MEDICAL INSTRUMENTS -- 1.81%
1,600 Affymetrix, Inc.* $ 216,100
5,800 PE Corp.-PE Biosystems Group 348,000
------------
Total Medical Instruments 564,100
------------
MISCELLANEOUS -- 1.89%
6,550 AES Corp. (The) 589,091
------------
NETWORKING -- 3.09%
6,900 Extreme Networks, Inc.* 397,613
7,600 Network Appliance, Inc.* 561,925
------------
Total Networking 959,538
------------
OIL & GAS U.S. EXPLORATION/PRODUCTION -- 2.24%
4,550 Cooper Cameron Corp.* 341,250
8,975 Nabors Industries, Inc.* 353,952
------------
Total Oil & Gas U.S. Exploration/Production 695,202
------------
OIL FIELD SERVICES -- 3.07%
3,350 BJ Services Co.* 235,338
21,625 ENSCO International, Inc. 717,680
------------
Total Oil Field Services 953,018
------------
SPECIALTY RETAIL -- 0.67%
2,850 Tiffany & Co., Inc. 207,159
------------
TELECOMMUNICATIONS -- 13.73%
14,700 ADC Telecommunications, Inc.* 893,025
15,750 Broadwing, Inc. 445,922
9,100 Comverse Technology, Inc.* 811,606
5,400 JDS Uniphase Corp.* 560,250
18,500 Metromedia Fiber Network, Inc.* 571,188
6,400 Netro Corp.* 276,000
13,000 Time Warner Telecom, Inc.* 711,750
------------
Total Telecommunications 4,269,741
------------
WIRELESS SERVICES -- 1.37%
19,500 Nextel Partners, Inc.- Class A* 427,781
------------
TOTAL EQUITY SECURITIES (cost $22,885,305) 29,015,467
------------
PRINCIPAL
AMOUNT
--------------------------------------------------------------------------------
MONEY MARKET INVESTMENTS -- 7.96%
$1,238,756 Temporary Investment Fund, Inc. - Temp Fund 1,238,756
1,238,756 Temporary Investment Fund, Inc. - Temp Cash 1,238,756
------------
TOTAL MONEY MARKET INVESTMENTS (cost $2,477,512) 2,477,512
------------
TOTAL INVESTMENTS (cost $25,362,817) 31,492,979
------------
OTHER ASSETS -- 1.30% Receivables:
Securities sold 297,334
Interest sold 94,608
Dividends and interest 11,495
Prepaid Insurance 219
------------
Total Other Assets 403,656
------------
TOTAL ASSETS 31,896,635
------------
LIABILITIES -- (2.50%)
Payables:
Securities purchased 735,247
Due to advisor (Note 3) 3,373
Accrued expenses 29,403
Deferred trustees' compensation (Note 3) 8,924
------------
Total Liabilities 776,947
------------
NET ASSETS - 100% $ 31,119,688
============
* Non-income producing security.
See accompanying Notes to Financial Statements.
41
<PAGE>
PIC SMALL CAP PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares EQUITY SECURITIES -- 91.80% Value
--------------------------------------------------------------------------------
AIRLINES -- 1.17%
55,440 Ryanair Holdings plc ADS* $ 2,259,180
40,000 Skywest, Inc. 1,685,000
------------
Total Airlines 3,944,180
------------
APPAREL AND SHOES -- 1.55%
47,700 Hot Topic, Inc.* 1,466,775
30,300 Pacific Sunwear Of California, Inc.* 1,032,094
91,150 Too, Inc.* 2,728,803
------------
Total Apparel and Shoes 5,227,672
------------
AUTO PARTS -- 1.16%
121,600 Gentex Corp.* 3,921,600
------------
BANKS -- 0.18%
15,200 Commerce Bancorp, Inc. 603,250
------------
BIOTECHNOLOGY -- 6.44%
21,800 Abgenix, Inc.* 1,952,462
28,600 Alkermes, Inc.* 1,522,950
21,000 Aurora Biosciences Corp.* 761,250
59,100 Celgene Corp.* 2,781,394
32,700 Digene Corp.* 1,393,837
22,500 Emisphere Technologies, Inc.* 923,555
8,200 Human Genome Sciences, Inc.* 627,812
23,100 Ilex Oncology, Inc.* 554,400
29,800 Invitrogen Corp.* 1,858,775
85,700 Isis Pharmaceuticals, Inc.* 953,412
11,600 Millennium Pharmaceuticals, Inc.* 920,750
38,300 Neose Technology, Inc.* 1,196,875
33,700 Pharmacopeia, Inc.* 1,385,912
55,400 QLT PhotoTherapeutics, Inc.* 3,078,162
33,600 Sangamo Biosciences, Inc.* 331,800
28,900 Vertex Pharmaceuticals, Inc.* 1,510,025
------------
Total Biotechnology 21,753,371
------------
BUSINESS SERVICES -- 2.86%
6,900 Corporate Executive Board Co.* 405,375
25,100 CoStar Group, Inc.* 602,008
12,800 Iron Mountain, Inc.* 448,000
196,700 Profit Recovery Group International, Inc. (The)* 3,454,544
85,900 Teletech Holdings, Inc.* 2,802,487
29,940 TMP Worldwide, Inc.* 1,957,327
------------
Total Business Services 9,669,741
------------
COMPUTER SERVICES -- 7.70%
98,900 BISYS Group, Inc.* 6,187,431
25,100 Digital Lightwave, Inc.* 1,719,350
55,400 DSP Group, Inc.* 3,940,325
32,300 Electro Scientific Industries, Inc.* 2,036,919
38,400 Globix Corp.* 864,000
62,400 Henry Jack & Associates, Inc. 2,464,800
8,700 MIPS Technologies, Inc.* 251,212
60,400 Modem Media Poppe Tyson, Inc.* 883,350
43,700 National Computer Systems, Inc. 2,247,819
56,450 NICE Systems, Ltd. ADR* 3,693,947
34,700 Optimal Robotics Corp.* 1,474,750
8,300 Versata, Inc.* 252,112
------------
Total Computer Services 26,016,015
------------
COMPUTER SOFTWARE -- 8.53%
34,800 Business Objects S.A. ADS* 3,406,050
24,600 Clarus Corp.* 988,612
56,100 Electronics For Imaging, Inc.* 2,931,225
133,700 Emachines, Inc.* 1,144,806
46,600 Exchange Applications, Inc.* 567,937
50,000 Informatica Corp.* 2,096,875
40,000 Macromedia, Inc.* 3,480,000
43,900 Manugistics Group, Inc.* 1,879,469
43,200 Mercator Software, Inc.* 1,590,300
29,700 Mercury Interactive Corp.* 2,673,000
42
<PAGE>
PIC SMALL CAP PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED) - (CONTINUED)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
31,100 Metasolv Software, Inc.* $ 1,061,287
5,800 Micromuse, Inc.* 569,125
36,900 Mission Critical Software, Inc.* 1,328,400
45,300 National Instruments Corp.* 2,208,375
17,000 OTG Software, Inc.* 374,000
52,400 Peregrine Systems, Inc.* 1,260,875
39,500 Verity, Inc.* 1,281,281
------------
Total Internet Services 28,841,617
------------
CREDIT & FINANCE -- 0.53%
96,600 Americredit Corp.* 1,805,212
------------
DISCOUNT -- 2.82%
99,133 99 CENTS Only Stores, Inc.* 3,729,879
100,680 Dollar Tree Stores, Inc.* 5,826,855
------------
Total Discount 9,556,734
------------
DRUGS -- 3.41%
55,400 Cephalon, Inc.* 3,116,250
67,600 Dusa Pharmaceuticals, Inc.* 1,115,400
35,950 Jones Pharmaceuticals, Inc. 1,035,809
36,300 K-V Pharmaceutical Co.- Class A* 916,575
61,000 Medicis Pharmaceutical Corp.-Class A* 2,668,750
25,971 Shire Pharmaceuticals Group, plc* 1,045,333
49,400 Supergen, Inc.* 1,636,375
------------
Total Drugs 11,534,492
------------
ELECTRONICS COMPONENTS/SEMICONDUCTORS -- 22.89%
42,200 Advanced Energy Industries, Inc.* 2,911,800
34,200 Alpha Industries, Inc. 1,778,400
179,300 ASM International, N.V.* 6,185,850
74,375 Brooks Automation, Inc.* 6,670,508
61,700 Burr-Brown Corp.* 4,203,312
52,700 Credence Systems Corp.* 7,522,925
32,400 Cree, Inc.* 4,714,200
13,500 Digitas, Inc.* 208,406
10,000 Elantec Semiconductor, Inc.* 405,000
29,800 Electroglas, Inc.* 1,154,750
38,300 Exar Corp.* 3,070,583
55,800 Gasonics International Corp.* 1,841,400
40,200 GlobeSpan, Inc.* 3,819,000
82,200 Integrated Device Technology, Inc.* 3,950,737
44,100 Lattice Semiconductor Corp.* 2,971,237
39,300 LTX Corp.* 1,797,975
23,800 Mattson Technology, Inc.* 1,169,175
34,100 Micrel, Inc.* 2,949,650
41,400 Nanometrics, Inc.* 1,588,725
63,700 Oak Technology, Inc.* 895,781
40,100 Orbotech, Ltd.* 3,418,525
40,900 Plexus Corp.* 3,133,962
41,400 Quicklogic Corp.* 1,216,125
28,900 Semtech Corp.* 1,970,619
10,500 Symyx Technologies, Inc.* 348,469
68,400 Varian Semiconductor Equipment Associates, Inc.* 4,599,900
45,875 Veeco Instruments, Inc.* 2,849,984
------------
Total Electronics Components/ Semiconductors 77,346,998
------------
ELECTRICAL EQUIPMENT/PERIPHERALS -- 3.31%
35,400 Asyst Technologies, Inc.* 1,893,900
19,900 Dionex Corp.* 723,863
42,500 SanDisk Corp.* 3,894,063
53,050 TranSwitch Corp.* 4,671,716
------------
Total Electrical Equipment/Peripherals 11,183,542
------------
ELECTRONICS -- 1.74%
23,500 Kemet Corp.* 1,750,750
19,925 Powerwave Technologies, Inc.* 4,145,645
------------
Total Electronics 5,896,395
------------
ENTERTAINMENT & LEISURE -- 1.99%
48,700 American Classic Voyages Co. 977,044
41,500 Citadel Communications Corp.* 1,621,094
26,100 Cox Radio, Inc.-Class A* 1,892,250
43
<PAGE>
PIC SMALL CAP PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED) - (CONTINUED)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
105,470 Fairfield Communities, Inc.* $ 955,822
67,900 Spanish Broadcasting
Systems, Inc.-Class A* 1,268,881
------------
Total Entertainment & Leisure 6,715,091
------------
FINANCIAL SERVICES -- 0.69%
61,900 Metris Companies, Inc. 2,321,250
------------
FOOD & RESTAURANTS -- 0.46%
31,500 Performance Food Group, Co.* 830,813
23,900 RARE Hospital International, Inc.* 739,406
------------
Total Food & Restaurants 1,570,219
------------
INSURANCE -- 0.12%
28,200 Clark/Bardes Holdings, Inc.* 398,325
------------
INTERNET SERVICES -- 3.34%
25,600 Agile Software Corp.* 948,800
20,800 Art Technology Group, Inc.* 1,263,600
8,000 C-Bridge Internet Solutions, Inc.* 212,000
17,300 CyberSource Corp.* 261,663
9,800 Cysive, Inc.* 533,487
29,500 Exactis.Com, Inc.* 339,250
11,600 Herme, Inc.* 84,644
14,000 Keynote Systems, Inc.* 628,250
21,400 Media Metrix, Inc.* 687,475
48,900 Primus Knowledge Solutions, Inc.* 1,818,469
10,900 S1 Corp.* 592,006
5,700 Selectica, Inc.* 216,600
38,200 Ticketmaster Online-City Search, Inc.* 764,000
16,000 Watchguard Technologies, Inc.* 771,000
27,300 WebTrends Corp.* 895,781
118,600 Wit Capital Group, Inc.* 1,252,713
------------
Total Internet Services 11,269,738
------------
MEDICAL & DENTAL PRODUCTS -- 1.35%
80,900 Cytyc Corp.* 3,620,275
21,500 Zoll Medical Corp.* 950,031
------------
Total Medical & Dental Products 4,570,306
------------
MEDICAL INSTRUMENTS -- 0.80%
9,625 Affymetrix, Inc.* 1,299,977
34,500 Novoste Corp.* 1,414,500
------------
Total Medical Instruments 2,714,477
------------
MEDICAL/DENTAL SERVICES -- 1.06%
30,100 Accredo Health, Inc.* 846,562
76,400 Amsurg Corp.-Class A* 446,463
102,745 Renal Care Group, Inc.* 2,292,498
------------
Total Medical/Dental Services 3,585,523
------------
MORTAGE & RELATED SERVICES-- 0.40%
27,700 PMI Group, Inc. 1,341,719
------------
NETWORKING -- 1.96%
60,400 C-Cor Electronics, Inc.* 2,363,150
15,600 Osicom Technologies, Inc.* 811,200
19,900 Performance Technologies, Inc.* 695,256
33,400 Visual Networks, Inc.* 1,302,600
36,800 Xircom, Inc.* 1,451,300
------------
Total Networking 6,623,506
------------
OIL & GAS PRODUCTION-- 0.96%
243,600 Grey Wolf, Inc.* 989,625
57,500 Precision Drilling Corp.* 1,840,000
12,000 UTI Energy Corp.* 417,000
------------
Total Oil & Gas Production 3,246,625
------------
OFFSHORE DRILLING -- 1.33%
12,700 Dril-Quip, Inc.* 515,938
88,800 Pride International, Inc.* 2,009,100
70,300 Rowan Companies, Inc. 1,964,006
------------
Total Offshore Drilling 4,489,044
------------
OIL FIELD SERVICES/EQUIPMENT -- 1.75%
20,100 Atwood Oceanics, Inc.* 1,218,563
90,500 Marine Drilling Companies, Inc.* 2,353,000
44
<PAGE>
PIC SMALL CAP PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED) - (CONTINUED)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
69,300 Patterson Energy, Inc.* $ 1,957,725
51,000 Trico Marine Services, Inc.* 385,688
------------
Total Oil Field Services/Equipment 5,914,976
------------
POLLUTION CONTROL -- 0.26%
88,900 Newpark Resources, Inc.* 733,425
11,525 Waste Connections, Inc.* 144,063
------------
Total Pollution Control 877,488
------------
PUBLISHING/ADVERTISING -- 2.33%
34,700 Catalina Marketing Corp.* 3,513,375
42,000 Getty Images, Inc.* 1,275,750
34,100 Lamar Advertising Co.* 1,502,531
98,400 Playboy Enterprises, Inc.- ClassB* 1,586,700
------------
Total Publishing/ Advertising 7,878,356
------------
SPECIALTY RETAIL -- 0.73%
54,250 Cost Plus, Inc.* 1,658,016
48,800 Electronics Boutique Holdings Corp.* 793,000
------------
Total Specialty Retail 2,451,016
------------
TECHNOLOGY -- 0.09%
31,600 Centra Software, Inc.* 292,300
------------
TELECOMMUNICATIONS -- 6.29%
51,500 Adaptive Broadband Corp.* 1,673,750
13,800 AirGate PCS, Inc.* 1,183,350
19,800 Audiocodes, Ltd.* 1,485,000
43,700 Caprock Communications Corp.* 1,463,950
22,900 Celeritek, Inc.* 1,362,550
29,500 Eloquent, Inc.* 261,812
13,500 Gilat Satellite Networks, Ltd.* 1,159,313
7,400 Ibasis, Inc.* 167,425
57,800 InterVoice-Brite, Inc.* 921,188
28,000 Netro Corp.* 1,207,500
22,400 Orckit Communications, Ltd.* 991,200
60,100 Pinnacle Holdings, Inc.* 3,376,869
23,700 SBA Communications Corp.* 962,813
75,700 Sirius Satellite Radio, Inc.* 3,004,344
35,925 Telaxis Communications Corp.* 940,786
39,000 Westell Technologies, Inc.* 1,109,063
------------
Total Telecommunications 21,270,913
------------
TEXTILES AND SHOES-- 0.21%
58,100 Cutter & Buck, Inc.* 708,094
------------
TOYS -- 0.28%
52,100 JAKKS Pacific, Inc.* 957,338
------------
TRUCKING -- 0.73%
72,250 Forward Air Corp.* 2,483,594
------------
UTILITIES -- 0.38%
33,300 Independent Energy Holding plc, ADR 1,298,701
------------
TOTAL EQUITY SECURITIES (cost $223,918,638) 310,279,418
------------
PRINCIPAL
AMOUNT
------
MONEY MARKET INVESTMENTS -- 8.74%
$14,758,985 Temporary Investment Fund Inc. - Temp Fund 14,758,985
14,758,985 Temporary Investment Fund Inc. - Temp Cash 14,758,985
------------
TOTAL MONEY MARKET INVESTMENTS (cost $29,517,970) 29,517,970
------------
TOTAL INVESTMENTS (cost $253,436,608) 339,797,388
------------
45
<PAGE>
PIC SMALL CAP PORTFOLIO
STATEMENT OF NET ASSETS AT APRIL 30, 2000 (UNAUDITED) - (CONTINUED)
--------------------------------------------------------------------------------
VALUE
--------------------------------------------------------------------------------
OTHER ASSETS -- 0.30% Receivables:
Securities sold $ 814,254
Interest sold 25,816
Interest 116,761
Prepaid Insurance 3,310
Other assets 16,332
------------
Total Other Assets 976,473
------------
TOTAL ASSETS 340,773,861
------------
LIABILITIES -- (0.84%)
Payables:
Securities purchased 1,459,203
Interest redeemed 1,036,951
Due to advisor (Note 3) 213,659
Accrued expenses 26,597
Deferred trustees' compensation (Note 3) 61,609
------------
Total Liabilities 2,798,019
------------
NET ASSETS - 100.00% $337,975,842
------------
* Non-income producing security.
See accompanying Notes to Financial Statements.
46
<PAGE>
PIC PORTFOLIOS
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED GROWTH MID CAP SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends ......................................... $ 36,267 $ 290,808 $ 7,496 $ 17,449
Interest .......................................... 391,376 245,057 27,193 328,483
------------- ------------- ------------- -------------
Total income .................................... 427,643 535,865 34,689 345,932
------------- ------------- ------------- -------------
Expenses
Investment advisory fees (Note 3) ................ 112,268 833,451 86,468 1,389,180
Accounting services fees .......................... 32,763 43,291 32,400 54,800
Administration fees (Note 3) ..................... 18,711 104,181 22,552 173,647
Trustee fees ...................................... 16,971 27,470 7,437 18,350
Custodian fees .................................... 12,827 20,634 19,952 44,303
Audit fees ........................................ 7,401 11,563 5,469 9,928
Legal fees ........................................ 1,076 5,382 782 8,961
Insurance expense ................................. 827 1,507 263 3,964
Miscellaneous ..................................... 3,897 3,209 1,989 4,890
------------- ------------- ------------- -------------
Total expenses .................................. 206,741 1,050,688 177,312 1,708,023
Less: fees waived and expenses
absorbed (Note 3) ............................ (57,050) (8,874) (66,139) --
Add: expenses recouped by advisor
(Note 3) ..................................... -- -- -- 28,452
------------- ------------- ------------- -------------
Net expenses .................................... 149,691 1,041,814 111,173 1,736,475
------------- ------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) .................. 277,952 (505,949) (76,484) (1,390,543)
------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments .................... 3,729,509 38,832,600 5,018,155 110,788,121
Net unrealized appreciation (depreciation)
on investments .................................... 1,466,318 (3,431,968) 3,724,420 20,014,866
------------- ------------- ------------- -------------
Net realized and unrealized gain on
investments ..................................... 5,195,827 35,400,632 8,742,575 130,802,987
------------- ------------- ------------- -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................... $ 5,473,779 $ 34,894,683 $ 8,666,091 $ 129,412,444
============= ============= ============= =============
</TABLE>
See accompanying Notes to Financial Statements.
47
<PAGE>
PIC PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED GROWTH
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000+ OCTOBER 31, 1999 APRIL 30, 2000+ OCTOBER 31, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income (loss) .......... $ 277,952 $ 464,708 $ (505,949) $ (811,454)
Net realized gain on investments ....... 3,729,509 10,690,739 38,832,600 27,950,275
Net unrealized appreciation
(depreciation) on investments ........ 1,466,318 (4,247,201) (3,431,968) 15,478,042
------------- ------------- ------------- -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .................... 5,473,779 6,908,246 34,894,683 42,616,863
------------- ------------- ------------- -------------
TRANSACTIONS IN INTERESTS
Contributions by Holders ............... 3,616,435 22,415,285 17,571,768 28,654,776
Withdrawals by Holders ................. (4,032,838) (38,590,582) (22,519,167) (25,048,703)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from transactions in Interests ....... (416,403) (16,175,297) (4,947,399) 3,606,073
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN
NET ASSETS ......................... 5,057,376 (9,267,051) 29,947,284 46,222,936
NET ASSETS
Beginning of period .................... 32,876,090 42,143,141 182,305,259 136,082,323
------------- ------------- ------------- -------------
END OF PERIOD .......................... $ 37,933,466 $ 32,876,090 $ 212,252,543 $ 182,305,259
============= ============= ============= =============
</TABLE>
+ Unaudited.
See accompanying Notes to Financial Statements.
48
<PAGE>
PIC PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS ASSETS AND LIABILITIES AT APRIL 30, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP SMALL CAP
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000+ OCTOBER 31, 1999 APRIL 30, 2000+ OCTOBER 31, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss ..................... $ (76,484) $ (44,436) $ (1,390,543) $ (1,771,238)
Net realized gain on investments ........ 5,018,155 1,053,933 110,788,121 48,594,775
Net unrealized appreciation
on investments ........................ 3,724,420 2,348,464 20,014,866 56,517,702
------------- ------------- ------------- -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................... 8,666,091 3,357,961 129,412,444 103,341,239
------------- ------------- ------------- -------------
TRANSACTIONS IN INTERESTS
Contributions by Holders ................ 12,447,949 4,331,368 115,086,242 68,296,971
Withdrawals by Holders .................. (2,658,091) (788,868) (161,285,745) (90,528,948)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from transactions in Interests ........ 9,789,858 3,542,500 (46,199,503) (22,231,977)
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS .............................. 18,455,949 6,900,461 83,212,941 81,109,262
NET ASSETS
Beginning of period ..................... 12,663,739 5,763,278 254,762,901 173,653,639
------------- ------------- ------------- -------------
END OF PERIOD ........................... $ 31,119,688 $ 12,663,739 $ 337,975,842 $ 254,762,901
============= ============= ============= =============
</TABLE>
+ Unaudited.
See accompanying Notes to Financial Statements.
49
<PAGE>
PIC PORTFOLIOS
SELECTED RATIO DATA
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED PORTFOLIO
----------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED ----------------------------------------------
APRIL 30,2000+ 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:*
Operating expenses .............. 0.80%+ 0.80% 0.80% 0.80% 0.80% 0.80%
Net investment income ........... 1.48%+ 1.45% 1.22% 1.35% 1.30% 1.57%
Portfolio turnover rate ......... 111.63%^ 174.19% 111.47% 104.50% 54.24% 106.50%
</TABLE>
* Net of fees waived and expenses absorbed of 0.30%, 0.28%, 0.18%, 0.36%,
0.90% and 0.78% of average net assets, respectively.
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
----------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED ----------------------------------------------
APRIL 30,2000+ 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:*
Operating expenses .............. 1.00%+ 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income (loss) .... (0.48%)+ (0.49%) (0.32%) (0.13%) (0.04%) 0.08%
Portfolio turnover rate ......... 84.78%^ 80.34% 81.06% 67.54% 64.09% 54.89%
</TABLE>
* Net of fees waived and expenses absorbed of 0.01%, 0.00%, 0.02%, 0.05%
0.04% and 0.01% of average net assets, respectively.
+ Annualized.
^ Not annualized.
+ Unaudited.
See accompanying Notes to Financial Statements.
50
<PAGE>
PIC PORTFOLIOS
SELECTED RATIO DATA
--------------------------------------------------------------------------------
MID CAP PORTFOLIO
------------------------------------------------
DEC. 31, 1997**
SIX MONTHS ENDED YEAR ENDED THROUGH
APRIL 30, 2000+ OCT. 31, 1999 OCT. 31, 1998
------ ------ ------
RATIOS TO AVERAGE NET ASSETS:*
Operating expenses ........... 0.90%+ 0.90% 0.90%+
Net investment loss .......... (0.62%)+ (0.53%) (0.29%)+
Portfolio turnover rate ...... 111.72%^ 144.64% 166.89%
* Net of fees waived and expenses absorbed of 0.53%, 1.58% and 2.07% of
average net assets, respectively.
<TABLE>
<CAPTION>
SMALL CAP PORTFOLIO
---------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED ---------------------------------------------------
APRIL 30, 2000+ 1999 1998 1997 1996 1995
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Operating expenses .............. 1.00%+ 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment loss ............. (0.80%)#+ (0.79%)* (0.68%)* (0.49%)* (0.59%)* (0.51%)*
Portfolio turnover rate ......... 63.10%^ 133.24% 81.75% 151.52% 53.11% 45.45%
</TABLE>
* Net of fees waived and expenses absorbed of 0.00%, 0.01%, 0.01%, 0.01% and
0.07% of average net assets, respectively.
# Includes expenses recouped of 0.02%.
+ Unaudited.
** Commencement of operations.
+ Annualized.
^ Not annualized.
See accompanying Notes to Financial Statements.
51
<PAGE>
PIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
PIC Balanced and Growth Portfolios were organized on December 11, 1991, PIC
Mid Cap Portfolio was organized on December 31, 1997, 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.
NOTE 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 traded on a national
securities exchange or Nasdaq are valued at the last reported sales
price at the close of regular trading on each day that the exchanges
are open for trading. Other equity securities and debt securities for
which market quotations are readily available are valued at the mean
between their bid and asked prices, 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 gen- erally accepted accounting principles, management makes
estimates and as- sumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements. Actual
results could differ from those estimates.
52
<PAGE>
PIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
NOTE 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 L.L.C. ("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 Balanced Portfolio an investment advisory fee at the
annual rate of 0.60% of its average daily net assets, 0.80% from the Growth
Portfolio, 0.70% from the Mid Cap Portfolio, and 0.80% from the Small Cap
Portfolio. In addition, PIC has voluntarily undertaken to limit the expenses of
the Balanced Portfolio to 0.80% of its average daily net assets, 1.00% for the
Growth Portfolio, 0.90% for the Mid Cap Portfolio, and 1.00% for the Small Cap
Portfolio.
Pursuant to a contract with the Funds, PIC has agreed to reimburse each
Fund and Portfolio for investment advisory fees and other expenses for ten years
ending March 1, 2010. PIC reserves the right to be reimbursed for any waiver of
its fees or expenses paid on behalf of the Funds and Portfolios if, within three
subsequent years, a Fund's or Portfolio's expenses are less than the limit
agreed to by PIC. Any reimbursements to PIC are subject to approval by the Board
of Trustees.
Fees waived, expenses absorbed and expenses recouped by PIC for the six
months ended April 30, 2000 were as follows:
FEES EXPENSES EXPENSES
WAIVED ABSORBED RECOUPED
------ -------- --------
Balanced Portfolio $ 57,050 $ -- $ --
Growth Portfolio 8,874 -- --
Mid Cap Portfolio 57,627 8,512 --
Small Cap Portfolio -- -- 28,452
53
<PAGE>
PIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
ICA receives for its services a fee at the annual rate of 0.10% of the
average daily net assets of each Portfolio subject to an annual minimum of
$45,000 (except for Balanced Portfolio, which has no minimum). Fees paid to ICA
for the six months ended April 30, 2000 are stated in 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.
For the six months ended April 30, 2000, the change in the value of the
phantom share account was as follows:
UNREALIZED
APPRECIATION
------------
Provident Investment Counsel Balanced Portfolio $10,100
Provident Investment Counsel Growth Portfolio 18,880
Provident Investment Counsel Mid Cap Portfolio 3,052
Provident Investment Counsel Small Cap Portfolio 16,090
NOTE 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, 2000 were as follows:
PURCHASES SALES
------------ ------------
Balanced Portfolio $ 37,337,956 $ 39,235,065
Growth Portfolio 172,767,016 168,592,319
Mid Cap Portfolio 35,030,357 26,148,283
Small Cap Portfolio 206,915,721 271,401,954
54
<PAGE>
PIC PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
--------------------------------------------------------------------------------
The Balanced Portfolio purchased $7,776,077 and sold $8,661,864 of U.S.
Government securities. There were no purchases or sales of U.S. Government
securities by the Growth, Mid Cap and Small Cap Portfolios.
The aggregate gross unrealized appreciation and depreciation of investment
securities at April 30, 2000, based on their cost for federal income tax
purposes, were as follows:
TAX GROSS GROSS
COST OF UNREALIZED UNREALIZED
INVESTMENTS APPRECIATION DEPRECIATION
------------ ------------ ------------
Balanced Portfolio $ 32,675,926 $ 6,182,519 $ (989,912)
Growth Portfolio 169,089,734 55,909,654 (7,920,618)
Mid Cap Portfolio 25,362,817 7,724,486 (1,594,324)
Small Cap Portfolio 253,436,608 113,775,120 (27,414,340)
55
<PAGE>
PROVIDENT INVESTMENT COUNSEL MUTUAL FUNDS
TRUSTEES AND OFFICERS
TRUSTEES AND OFFICERS -- P-I-C INVESTMENT TRUST
--------------------------------------------------------------------------------
Thomas J. Condon, Trustee
Jettie M. Edwards, Trustee
Richard N. Frank, Trustee
James Clayburn Laforce, Trustee
Angelo R. Mozilo, Trustee
Wayne H. Smith, Trustee
Douglass B. Allen, President and Trustee
Aaron W.L. Eubanks, Sr., Vice President and Secretary
William T. Warnick, Vice President and Treasurer
TRUSTEES AND OFFICERS -- P-I-C PORTFOLIOS
--------------------------------------------------------------------------------
Thomas J. Condon, Trustee
Jettie M. Edwards, Trustee
Richard N. Frank, Trustee
James Clayburn Laforce, Trustee
Angelo R. Mozilo, Trustee
Wayne H. Smith, Trustee
Douglass B. Allen, President and Trustee
Aaron W.L. Eubanks, Sr., Vice President and Secretary
William T. Warnick, Vice President and Treasurer
LEGAL COUNSEL
--------------------------------------------------------------------------------
Paul, Hastings, Janofsky & Walker, LLP
INDEPENDENT AUDITORS
--------------------------------------------------------------------------------
PricewaterhouseCoopers LLP
This report is intended for the 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.
