<PAGE> 1
[P-I-C LOGO] P-I-C
GROWTH FUND
SMALL COMPANY GROWTH FUND
Semi-Annual Report
April 30, 1997
<PAGE> 2
[P-I-C LOGO] P-I-C
GROWTH FUND MESSAGE TO SHAREHOLDERS
SMALL COMPANY GROWTH FUND
================================================================================
THE FOLLOWING ARE INTERVIEWS WITH THE MEMBERS OF THE INVESTMENT TEAM AT
PROVIDENT INVESTMENT COUNSEL.
GROWTH FUND
QUESTION: How did the Growth Fund perform for the six month's ended April 30,
1997?
ANSWER: The Fund returned 7.74% for the six months ended April 30 as compared to
the broad market's return as measured by the Standard and Poor's 500 index of
14.72%. The Lipper Growth Fund average, a group of several hundred, growth
mutual funds, returned 8.53% for the period. The broad market's return continued
to be driven by the largest, most liquid issues as the record flows of assets in
equity mutual funds drove managers into these types of names. The Fund's growth
investing style, which focuses our managers on finding companies with both
strong sales and earnings gains, precluded the managers from buying many of
these larger companies with relatively lower rates of growth. We believe that
many of the gains in earnings realized by some of these companies without large
rates of change in sales growth may not be sustainable.
QUESTION: What are some of the other factors that have driven the broad market's
strong, albeit volatile performance during the last six months?
ANSWER: The broad market ended 1996 with extremely positive returns as the
economy continued to grow very nicely with little signs of inflation. Investors
with record cash flows into mutual funds were driven to continue buying the
largest, most liquid issues. 1997 began with continued strong returns and then
quickly retreated as the Federal Reserve Board announced that it felt compelled
to raise interest rates in advance of perceived inflationary signals. The
volatility subsided in April as the general consensus in the markets led
investors to believe that inflation was in check and the Federal Reserve would
leave interest rates alone. This thinking has proven to be correct through the
Federal Reserve's most recent meeting in May.
QUESTION: How are the Fund's holdings valued in the market relative to the broad
market as of the end of April?
ANSWER: We believe the Fund portfolio represents a very compelling value at this
time relative to the broad market. At the end of April the S&P 500 was
2
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[P-I-C LOGO] P-I-C
GROWTH FUND MESSAGE TO SHAREHOLDERS
SMALL COMPANY GROWTH FUND
================================================================================
valued at premium to its average expected growth rate of 9.00% with a
price/earnings ratio of more than 17.00%. The Fund has a price/earnings ratio
currently of 21.20% along with anticipated earnings growth of 24.00% and is
currently trading a discount to its growth rate.
QUESTION: What is the outlook for the broad market and the Fund in the months
ahead?
ANSWER: We believe the challenge ahead for the broad market, and in particular
the larger "blue chip" companies that have performed so well during the past
year, will be continuing to generate earnings gains without above average gains
in sales. Many of the these issues have continued to show increases in earnings
by making gains in productivity with the help of technology and other means
without large increases in sales. Therefore we do not feel that these earnings
gains are sustainable. The Fund on the other hand is built with companies that
have demonstrated the ability to grow both sales and earnings and will be
recognized at some point for the visibility of their growth going forward.
QUESTION: Have there been any changes or are there any planned changes in the
sector allocation for the Fund?
ANSWER: The Fund is built one stock at a time and although we monitor our
exposure to certain sectors and the effect on performance, the Fund is managed
in a bottom up approach. The sector allocation has remained fairly constant over
the last year. Going forward we still expect stock selection to be a critical
factor in achieving above average returns. A number of issues that have driven
the broad market performance and are not currently Fund holdings, including
bellwether technology stocks Intel and Hewlett Packard, have reported slowdowns
and results below expectations. We feel this selective market environment is
advantageous to the Fund's growth style of investing, that is, investing in
those companies with sustainable earnings growth, and we are excited about the
Fund's prospects over the coming months.
3
<PAGE> 4
[P-I-C LOGO]
P-I-C
GROWTH FUND MESSAGE TO SHAREHOLDERS
SMALL COMPANY GROWTH FUND
================================================================================
SMALL COMPANY GROWTH FUND
QUESTION: How did the Small Company Growth Fund perform relative to the overall
market for the six months ended April 30?
ANSWER: The Fund returned -17.51% for the period as compared to the Russell 2000
Growth Index's return of -7.29%, a widely recognized index for Small Company
stocks. The past 6 months have been the most volatile period in the Fund's
history as investors moved away from smaller capitalization stocks to larger
more liquid issues during the period. As of the writing of this report we have
seen a return to favor of small company stocks during the month of May. The Fund
participated, returning 15.09% for the month as compared to the Russell 2000
Growth's return of more than 12.00%.
QUESTION: What caused the volatility in the Fund and the broad market during the
period?
ANSWER: As we have discussed in previous communications, the broad market began
to retreat from the highs reached early in 1997 as a result of concerns
surrounding interest rates, a strong dollar and the predictability of corporate
earnings going forward. Small stocks, particularly those of small growth
companies, bore the brunt of this negative sentiment. Several portfolio holdings
retreated in price without any negative fundamental news from the companies.
Fund holdings like Fastenal, a distributor of industrial supplies, and
Peoplesoft, a software manufacturer, are examples of stocks whose price
retreated without any negative news and have since rebounded.
QUESTION: What has caused the more recent turnaround in performance of small
stocks and the Fund in May?
ANSWER: We believe that the valuation levels of many of these small companies
had become extremely attractive. As expected, those companies whose fundamentals
continued throughout the correction were bought aggressively in May by investors
when the macro economic environment proved more certain and investor confidence
returned.
QUESTION: What is the outlook for the Fund and the broad market going forward?
ANSWER: We believe stock selection will be the critical factor in achieving
above average returns in the coming months. Recent evidence of select
4
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[P-I-C LOGO]
P-I-C
GROWTH FUND MESSAGE TO SHAREHOLDERS
SMALL COMPANY GROWTH FUND
================================================================================
companies in the market reporting slowdowns or disappointments substantiates our
belief in the importance of stock selection going forward. We feel this
selective environment is advantageous to our growth style of investing, that is,
investing in those companies with sustainable earnings growth, and we are
excited about our prospects over the coming months.
Performance results of P-I-C Small Company Growth Fund reflect the total return
of the P-I-C Small Cap Growth Fund (included in another report) managed by
Provident Investment Counsel prior to the effective date of the Fund's
registration statement, which was 6/28/96. Both Funds invest all of their assets
in shares of the P-I-C Small Cap. Portfolio. P-I-C Small Cap. Growth Fund
returns are restated to reflect all fees and expenses applicable to the P-I-C
Small Company Growth Fund.
5
<PAGE> 6
[P-I-C LOGO]
P-I-C
GROWTH FUND STATEMENTS OF ASSETS AND LIABILITIES
SMALL COMPANY GROWTH FUND as of April 30, 1997
<TABLE>
<CAPTION>
GROWTH SMALL COMPANY
FUND GROWTH FUND
<S> <C> <C>
================================================================================
ASSETS
- --------------------------------------------------------------------------------
Investment in P-I-C Growth Portfolio
and Small Cap. Portfolio, respectively,
at value $121,014,436 $20,976,283
Prepaid expenses 39,529 0
- --------------------------------------------------------------------------------
Total assets 121,053,965 20,976,283
================================================================================
LIABILITIES
- --------------------------------------------------------------------------------
Deferred Trustees' compensation (Note 3) 6,584 3,258
Accrued expenses 16,026 20,725
- --------------------------------------------------------------------------------
Total liabilities 22,610 23,983
================================================================================
NET ASSETS
- --------------------------------------------------------------------------------
Applicable to 7,829,510 and 2,679,789
shares of beneficial interest
outstanding, respectively $121,031,355 $20,952,300
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE $ 15.46 $ 7.82
- --------------------------------------------------------------------------------
================================================================================
SOURCE OF NET ASSETS
- --------------------------------------------------------------------------------
Paid-in capital $ 82,293,476 $24,194,312
Accumulated net investment loss (882,189) (64,764)
Undistributed net realized gain
(loss) on investments 8,713,709 (3,647,273)
Net unrealized appreciation on investments 30,906,359 470,025
- --------------------------------------------------------------------------------
NET ASSETS $121,031,355 $20,952,300
- --------------------------------------------------------------------------------
</TABLE>
Unaudited. See Notes to Financial Statements.
6
<PAGE> 7
[P-I-C LOGO] P-I-C
GROWTH FUND STATEMENTS OF OPERATIONS
SMALL COMPANY GROWTH FUND Six Months ended April 30, 1997
<TABLE>
<CAPTION>
GROWTH SMALL COMPANY
FUND GROWTH FUND
<S> <C> <C>
================================================================================
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Net investment loss from Portfolio $ (46,741) $ (22,840)
================================================================================
Expenses:
- --------------------------------------------------------------------------------
Administration fees (Note 3) 125,060 17,154
Transfer agent's fee 11,901 9,521
Trustees' fees 6,199 6,199
Audit fee 6,100 5,108
Legal fee 4,983 3,086
Amortization of organization costs 4,538 0
Custody and accounting services fee 3,000 3,000
Registration fees 2,480 2,480
Miscellaneous 2,480 2,480
Reports to shareholders 2,331 3,223
- --------------------------------------------------------------------------------
Total expenses 169,072 52,251
Less, reimbursement/waiver by Provident
Investment Counsel, Inc. (Note 3) (22,467) (24,811)
- --------------------------------------------------------------------------------
Net expenses 146,605 27,440
================================================================================
Net investment loss (193,346) (50,280)
================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
- --------------------------------------------------------------------------------
Net realized gain (loss) on investments 6,138,920 (3,147,259)
Change in net unrealized appreciation
on investments 2,833,412 52,586
- --------------------------------------------------------------------------------
Net gain (loss) on investments 8,972,332 (3,094,673)
================================================================================
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $8,778,986 $(3,144,953)
- --------------------------------------------------------------------------------
</TABLE>
Unaudited. See Notes to Financial Statements.
7
<PAGE> 8
[P-I-C LOGO] P-I-C
GROWTH FUND STATEMENTS OF CHANGES IN NET ASSETS
SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
GROWTH SMALL COMPANY
FUND GROWTH FUND
========================================================================================================================
INCREASE (DECREASE) IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months June 28, 1996*
ended ended ended through
From operations: April 30, 1997 Oct. 31, 1996 April 30, 1997 Oct. 31, 1996
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment loss $ (193,346) $ (330,789) $ (50,280) $ (14,484)
Net realized gain (loss) from
security transactions 6,138,920 17,650,636 (3,147,259) (500,014)
Change in net unrealized
appreciation (depreciation)
on investments 2,833,412 (1,600,474) 52,586 417,439
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
operations 8,778,986 15,719,373 (3,144,953) (97,059)
Distributions to shareholders:
- ------------------------------------------------------------------------------------------------------------------------
From net realized capital gains (13,397,246) -- -- --
========================================================================================================================
Transactions in shares of beneficial interest:
Purchases of 674,698, 1,170,731,
2,140,803 and 1,600,082
shares, respectively 10,551,210 17,592,972 18,985,430 15,762,982
Reinvestment of 911,709, 0, 0
and 0 shares, respectively 13,356,529 -- -- --
Redemptions of 900,570,
3,232,079, 7,788 and
1,053,308 shares,
respectively (14,343,004) (48,366,887) (71,754) (10,482,346)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from
share transactions 9,564,735 (30,773,915) 18,913,676 5,280,636
========================================================================================================================
Total increase (decrease) in net assets 4,946,475 (15,054,542) 15,768,723 5,183,577
========================================================================================================================
NET ASSETS:
- ------------------------------------------------------------------------------------------------------------------------
Beginning of period 116,084,880 131,139,422 5,183,577 0
- ------------------------------------------------------------------------------------------------------------------------
End of period $ 121,031,355 $ 116,084,880 $ 20,952,300 $ 5,183,577
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
Unaudited. See Notes to Financial Statements.
8
<PAGE> 9
[P-I-C LOGO] P-I-C
GROWTH FUND FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
========================================================================================================================
GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------
Six Months Year Year Year Year June 11, 1992*
ended ended ended ended ended through
April 30, 1997 Oct. 31, 1996 Oct. 31, 1995 Oct. 31,1994 Oct. 31, 1993 Oct. 31, 1992
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 16.25 $ 14.25 $ 11.70 $ 11.60 $ 10.81 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment (loss)
income (.02) (.06) (.02) .00 .00 .01
Net realized and unrealized
gain on investments 1.17 2.06 2.57 .10 .80 .80
- ------------------------------------------------------------------------------------------------------------------------
Total from investment
operations 1.15 2.00 2.55 .10 .80 .81
- ------------------------------------------------------------------------------------------------------------------------
Less distributions to
shareholders:
From net realized capital
gains (1.94) .00 .00 .00 .00 .00
Return of capital (.00) .00 .00 .00 (.01) .00
- ------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders (1.94) .00 .00 .00 (.01) .00
- ------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $ 15.46 $ 16.25 $ 14.25 $ 11.70 $ 11.60 $ 10.81
========================================================================================================================
Total return 7.74% 14.04% 21.79% 0.86% 7.40% 20.88%++
========================================================================================================================
Ratios/supplemental data:
Net assets, end
of period (millions) $ 121.0 $ 116.1 $ 131.1 $ 102.3 $ 88.9 $ 5.7
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:**+
Expenses 1.25%++ 1.25% 1.25% 1.25% 1.25% 1.25%++
Net investment
(loss) income (.33%)++ (.28%) (.17%) N/A N/A .25%++
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
**Includes the Fund's share of expenses, net of expense reimbursements,
allocated from P-I-C Growth Portfolio. If the fee waivers and expense
reimbursements, with respect to the Fund and P-I-C Growth Portfolio, had not
been made, the ratio of expenses to average net assets would have been 1.33%,
1.30%, 1.30%, 1.53%, 1.54% and 4.12%, respectively.
+Net of expense reimbursements.
++Annualized.
Unaudited. See Notes to Financial Statements.
9
<PAGE> 10
[P-I-C LOGO] P-I-C
GROWTH FUND FINANCIAL HIGHLIGHTS, CONTINUED
SMALL COMPANY GROWTH FUND
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
================================================================================
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------
Six Months June 28, 1996*
ended through
April 30, 1997 October 31, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.48 $10.00
Income from investment operations:
Net investment loss -- (.03)
Net realized and unrealized
loss on investments (1.66) (.49)
- --------------------------------------------------------------------------------
Total from investment operations (1.66) (.52)
- --------------------------------------------------------------------------------
Net asset value, end of period $ 7.82 $ 9.48
================================================================================
Total return (17.51%) (5.20%)
================================================================================
Ratios/supplemental data:
Net assets, end of period (millions) $ 21.0 $ 5.2
- --------------------------------------------------------------------------------
Ratios to average net assets:#+
Expenses 1.45%++ 1.43%++
Net investment loss (.82%)++ (0.91)%++
</TABLE>
*Commencement of operations.
#Includes the Fund's share of expenses, allocated from P-I-C Small Cap
Portfolio. If the fee waivers and expense reimbursements, with respect to the
Fund and P-I-C Small Cap Portfolio, had not been made, the ratio of expenses to
average net assets would have been 1.86% and 4.03%, respectively.
+Net of expense reimbursements.
++Annualized.
Unaudited. See Notes to Financial Statements.
10
<PAGE> 11
[P-I-C LOGO] P-I-C
GROWTH FUND NOTES TO FINANCIAL STATEMENTS
SMALL COMPANY GROWTH FUND
================================================================================
1 - ORGANIZATION
- --------------------------------------------------------------------------------
P-I-C Investment Trust (the "Trust") was organized on December 11, 1991 as
a Delaware business trust, with an unlimited number of shares of beneficial
interest of $.01 par value, and is registered under the Investment Company Act
of 1940 as an open-end, diversified management investment company. The Trust
currently offers six separate series: P-I-C Pinnacle Balanced Fund (formerly
P-I-C Institutional Balanced Fund), P-I-C Growth Fund (formerly P-I-C
Institutional Growth Fund), P-I-C Pinnacle Growth Fund, P-I-C Small Company
Growth Fund (formerly P-I-C Institutional Small Cap. Fund), P-I-C Pinnacle Small
Company Growth Fund, and P-I-C Small Cap. Growth Fund (each a "Fund" and
collectively the "Funds"). The Funds invest substantially all of their assets in
the respective Portfolios, a separate registered management investment company
having the same investment objective as the Funds. 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 P-I-C Pinnacle Balanced Fund, P-I-C Pinnacle Growth Fund, P-I-C Pinnacle
Small Company Growth Fund and P-I-C Small Cap. Growth Fund are in separate
reports.
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 Portfolio
at their proportionate interest in the value of the Portfolio's net assets.
Valuation of securities by the Portfolio is discussed at Note 2A of the
Portfolio's Notes to Financial Statements.
B. Investment Income and Dividends to Shareholders. The Funds earn income, net
of the expenses of the Portfolio, daily on their investment in the
Portfolio. All net investment income and realized and unrealized gains or
losses on investments of the Portfolio are allocated pro rata among the
Funds and the other Holders of Interests in the Portfolio. Dividends, if
any, are paid annually to shareholders of the Funds and recorded on the
ex-dividend date.
11
<PAGE> 12
[P-I-C LOGO] P-I-C
GROWTH FUND NOTES TO FINANCIAL STATEMENTS,
SMALL COMPANY GROWTH FUND CONTINUED
================================================================================
C. Federal Income Taxes. The Funds intend to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
to distribute all of their taxable income to their shareholders. Therefore,
no federal income tax provision is required.
D. Accounting Estimates. In preparing financial statements in conformity with
generally accepted accounting principles, management makes estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements, as well as the reported amounts of
revenues and expenses during the period. Actual results could differ from
those estimates.
3 - TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
The Trust has entered into administration agreements with Provident
Investment Counsel, Inc. ("PIC") and Investment Company Administration
Corporation ("ICAC"), pursuant to which agreements certain employees of these
entities serve as officers and/or trustees of the Trust and the Portfolio. PIC
and ICAC also provide management services necessary for the operations of the
Trust and the Portfolio and furnish office facilities. PIC receives a fee for
its services to the Funds at the rate of 0.20% of the average daily net assets
of the Funds.
P-I-C has voluntarily taken to limit the Funds' expenses, including those
expenses allocated from the Portfolios, to the following levels:
<TABLE>
<S> <C>
Growth Fund 1.25%
Small Company Growth Fund 1.45%
</TABLE>
The percentages are based on the Funds' average net assets. Fees waived and
expenses reimbursed by PIC for the six months ended April 30, 1997, were as
follows:
<TABLE>
<CAPTION>
Waived Reimbursed
Fees Expenses
<S> <C> <C>
Growth Fund 22,467 $ 0
Small Company Growth Fund 11,476 13,335
</TABLE>
ICAC receives an annual fee for its services of $15,000 from each of the
Funds.
12
<PAGE> 13
[P-I-C LOGO]
P-I-C
GROWTH FUND NOTES TO FINANCIAL STATEMENTS,
SMALL COMPANY GROWTH FUND CONTINUED
================================================================================
First Fund Distributors, Inc. (an affiliate of ICAC), a registered
broker-dealer, acts as the principal underwriter for the Trust in connection
with the offering of its shares, but receives no compensation for its services.
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.
4 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
Additions and reductions in the investments in the respective Portfolios
for the six months ended April 30, 1997, were as follows:
<TABLE>
<CAPTION>
Additions Reductions
<S> <C> <C>
Growth Fund $10,552,110 $14,562,634
Small Company Growth Fund 19,014,415 112,776
</TABLE>
13
<PAGE> 14
P-I-C
GROWTH STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
=====================================================================================
EQUITY SECURITIES - 91.3% Shares Value Percentage of
Net Assets
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------
BANKS - 1.1%
- -------------------------------------------------------------------------------------
Wells Fargo & Co. 5,200 $1,387,100 1.1%
=====================================================================================
BUSINESS SERVICES - 1.1%
- -------------------------------------------------------------------------------------
Danka Business Systems PLC, ADR 36,279 1,108,776 0.9%
Ikon Office Solutions, Inc. 9,208 247,465 0.2%
- -------------------------------------------------------------------------------------
Total Business Services 1,356,241 1.1%
=====================================================================================
CHEMICALS - 1.1%
- -------------------------------------------------------------------------------------
Monsanto Company 30,836 1,318,239 1.1%
=====================================================================================
COMPUTER SERVICES - 2.7%
- -------------------------------------------------------------------------------------
Computer Sciences Corp.* 18,033 1,127,062 0.9%
Paychex, Inc. 25,093 1,174,665 1.0%
Sungard Data Systems, Inc. 21,600 958,500 0.8%
- -------------------------------------------------------------------------------------
Total Computer Services 3,260,227 2.7%
=====================================================================================
COMPUTER SOFTWARE - 7.6%
- -------------------------------------------------------------------------------------
Microsoft Corp.* 76,156 9,252,953 7.6%
=====================================================================================
COSMETICS - 2.3%
- -------------------------------------------------------------------------------------
The Gillette Company 33,259 2,827,015 2.3%
=====================================================================================
CREDIT AND FINANCE - 3.4%
- -------------------------------------------------------------------------------------
MBNA Corporation 125,855 4,153,215 3.4%
=====================================================================================
DISCOUNT - 1.3%
- -------------------------------------------------------------------------------------
Costco Companies, Inc.* 53,600 1,547,700 1.3%
=====================================================================================
DIVERSIFIED - 1.9%
- -------------------------------------------------------------------------------------
Tyco International Ltd. 37,880 2,310,680 1.9%
</TABLE>
14
<PAGE> 15
P-I-C
GROWTH STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
==========================================================================================
EQUITY SECURITIES, CONTINUED Shares Value Percentage of
Net Assets
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------
ELECTRONICS - 2.7%
- ------------------------------------------------------------------------------------------
Texas Instruments, Inc. 36,000 $3,213,000 2.7%
==========================================================================================
ENERGY - 1.0%
- ------------------------------------------------------------------------------------------
AES Corp.* 17,625 1,150,031 1.0%
==========================================================================================
ENTERTAINMENT AND LEISURE - 6.3%
- ------------------------------------------------------------------------------------------
British Sky Broadcasting Group 36,424 2,030,638 1.7%
Hospitality Franchise System, Inc.* 55,973 3,316,341 2.8%
Walt Disney Company 27,240 2,233,680 1.8%
- ------------------------------------------------------------------------------------------
Total Entertainment and Leisure 7,580,659 6.3%
==========================================================================================
FINANCIAL SERVICES - 5.4%
- ------------------------------------------------------------------------------------------
Associates First Capital Corp. 32,830 1,682,538 1.4%
First Data Corp. 88,944 3,068,568 2.5%
State Street Corp. 19,600 1,543,500 1.3%
Synovus Financial Corp. 8,584 208,162 0.2%
- ------------------------------------------------------------------------------------------
Total Financial Services 6,502,768 5.4%
==========================================================================================
FUNERAL SERVICES - 1.3%
- ------------------------------------------------------------------------------------------
Service Corp. International 45,693 1,564,985 1.3%
==========================================================================================
GAMING - 0.6%
- ------------------------------------------------------------------------------------------
Mirage Resorts, Inc.* 37,849 761,711 0.6%
==========================================================================================
HEALTH INDUSTRY SERVICES - 1.5%
- ------------------------------------------------------------------------------------------
HealthSouth Corp.* 92,230 1,821,543 1.5%
==========================================================================================
HEALTH MAINTENANCE ORGANIZATIONS - 2.5%
- ------------------------------------------------------------------------------------------
Oxford Health Plans, Inc.* 46,442 3,059,366 2.5%
</TABLE>
15
<PAGE> 16
P-I-C
GROWTH STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
==========================================================================================
EQUITY SECURITIES, CONTINUED Shares Value Percentage of
Net Assets
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------
INSURANCE - 3.2%
- ------------------------------------------------------------------------------------------
Aetna, Inc. 3,000 $ 273,375 0.2%
American International Group, Inc. 16,412 2,108,942 1.7%
MGIC Investment Corp. 18,169 1,476,230 1.3%
- ------------------------------------------------------------------------------------------
Total Insurance 3,858,547 3.2%
==========================================================================================
MEDICAL INSTRUMENTS - 4.1%
- ------------------------------------------------------------------------------------------
Boston Scientific Corp.* 29,546 1,425,595 1.2%
Medtronic, Inc. 51,152 3,542,276 2.9%
- ------------------------------------------------------------------------------------------
Total Medical Instruments 4,967,871 4.1%
==========================================================================================
MEDICAL/DENTAL SERVICES - 1.3%
- ------------------------------------------------------------------------------------------
Cardinal Health, Inc. 29,741 1,583,708 1.3%
==========================================================================================
MISCELLANEOUS - 1.2%
- ------------------------------------------------------------------------------------------
Republic Industries, Inc.* 59,676 1,480,711 1.2%
==========================================================================================
MORTGAGE AND RELATED SERVICES - 4.4%
- ------------------------------------------------------------------------------------------
Federal Home Loan Mortgage
Association Corp. 92,719 3,813,069 3.2%
Federal National Mortgage
Association 48,216 1,536,885 1.2%
- ------------------------------------------------------------------------------------------
Total Mortgage and Related
Services 5,349,954 4.4%
==========================================================================================
NETWORKING - 1.1%
- ------------------------------------------------------------------------------------------
Tellabs, Inc.* 34,400 1,371,700 1.1%
</TABLE>
16
<PAGE> 17
P-I-C
GROWTH STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
==========================================================================================
EQUITY SECURITIES, CONTINUED Shares Value Percentage of
Net Assets
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------
OIL AND GAS PRODUCTION - 3.0%
- ------------------------------------------------------------------------------------------
Global Marine, Inc.* 43,600 $ 877,450 0.7%
Schlumberger Ltd., Curacao 25,400 2,813,050 2.3%
- ------------------------------------------------------------------------------------------
Total Oil and Gas Production 3,690,500 3.0%
==========================================================================================
OIL REFINING/MARKETING - 0.9%
- ------------------------------------------------------------------------------------------
Tosco Corp. 37,875 1,122,047 0.9%
==========================================================================================
PHARMACEUTICALS - 13.4%
- ------------------------------------------------------------------------------------------
Amgen, Inc. 9,084 534,821 0.4%
Elan Corp., PLC, ADR* 31,557 1,072,938 0.9%
Eli Lilly & Co. 42,835 3,764,126 3.1%
Merck & Co., Inc. 29,014 2,625,767 2.2%
Pfizer, Inc. 64,342 6,176,832 5.1%
Walgreen Co. 13,200 607,200 0.5%
Warner Lambert Co. 14,800 1,450,400 1.2%
- ------------------------------------------------------------------------------------------
Total Pharmaceuticals 16,232,084 13.4%
==========================================================================================
RETAIL - 2.0%
- ------------------------------------------------------------------------------------------
CVS Corp. 23,900 1,186,038 1.0%
Dollar General Corp. 36,700 1,160,638 1.0%
- ------------------------------------------------------------------------------------------
Total Retail 2,346,676 2.0%
==========================================================================================
SPECIALTY CHAINS - 1.7%
- ------------------------------------------------------------------------------------------
CUC International, Inc.* 34,813 735,425 0.6%
Kohls Corp.* 26,179 1,279,499 1.1%
- ------------------------------------------------------------------------------------------
Total Specialty Chains 2,014,924 1.7%
==========================================================================================
SUPERMARKETS - 1.4%
- ------------------------------------------------------------------------------------------
Safeway, Inc.* 38,375 1,712,484 1.4%
</TABLE>
17
<PAGE> 18
P-I-C
GROWTH STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
==========================================================================================================
EQUITY SECURITIES, CONTINUED Shares Value Percentage of
Net Assets
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 7.5%
- ----------------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc.* 28,282 $ 738,867 0.6%
Andrew Corp.* 18,406 455,549 0.4%
Ericsson,(L.M.) Telephone Co., ADR 139,140 4,678,583 3.9%
Lucent Technologies, Inc. 52,550 3,107,019 2.6%
- ----------------------------------------------------------------------------------------------------------
Total Telecommunications 8,980,018 7.5%
==========================================================================================================
TELEPHONE - 0.6%
- ----------------------------------------------------------------------------------------------------------
Worldcom, Inc.* 31,150 747,600 0.6%
==========================================================================================================
TEXTILES AND SHOES - 0.9%
- ----------------------------------------------------------------------------------------------------------
Gucci Group N.V 2,635 182,803 0.2%
Tommy Hilfiger Corp.* 21,534 855,977 0.7%
- ----------------------------------------------------------------------------------------------------------
Total Textiles and Shoes 1,038,780 0.9%
==========================================================================================================
TOBACCO - 0.8%
- ----------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 23,500 925,313 0.8%
- ----------------------------------------------------------------------------------------------------------
Total Equity Securities (Cost $79,583,868) 110,490,350 91.3%
SHORT-TERM INVESTMENTS - 9.4%
==========================================================================================================
COMMERCIAL PAPER - 6.6% Principal
Amount
- ----------------------------------------------------------------------------------------------------------
Ford Motor Credit Co.,
5.5295%, 5/15/1997 $ 4,000,000 4,000,000 3.3%
General Electric Capital Corp.,
5.520%, 5/29/1997 4,000,000 4,000,000 3.3%
- ----------------------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost $8,000,000) 8,000,000 6.6%
</TABLE>
18
<PAGE> 19
P-I-C
GROWTH STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
==========================================================================================================
REPURCHASE AGREEMENT - 2.8% Principal Value Percentage of
Amount Net Assets
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
Lehman Brothers On-Line Repurchase
Agreement, 4.99%, dated 4/30/1997,
due 5/1/1997 (collateralized by
$3,483,418 U.S. Treasury Bill, 7.87%,
due 2/15/2021 (Cost $3,396,800) $ 3,396,800 $ 3,396,800 2.8%
- ----------------------------------------------------------------------------------------------------------
Total Investments (Cost $90,980,668) 121,887,150 100.7%
==========================================================================================================
OTHER ASSETS - 0.4%
- ----------------------------------------------------------------------------------------------------------
Cash 10
Receivables:
Investment securities sold 360,774
Dividends and interest 113,738
Deferred organization costs 51
Other assets 23,317
- ----------------------------------------------------------------------------------------------------------
Total Assets 497,890 0.4%
==========================================================================================================
LIABILITIES - (1.1%)
- ----------------------------------------------------------------------------------------------------------
Investment securities purchased 1,244,275
Deferred Trustees' compensation (Note 3) 11,047
Accrued expenses 114,134
- ----------------------------------------------------------------------------------------------------------
Total Liabilities 1,369,456 (1.1%)
==========================================================================================================
TOTAL NET ASSETS - 100.0% $121,015,584 100.0%
- ----------------------------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
19
<PAGE> 20
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
==================================================================================================
Percentage of
EQUITY SECURITIES - 85.6% Shares Value Net Assets
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Air Freight .. 0.6%
- --------------------------------------------------------------------------------------------------
Eagle USA Airfreight, Inc.* 57,800 $1,156,000 0.6%
==================================================================================================
Apparel and Shoes .. 1.6%
- --------------------------------------------------------------------------------------------------
Abercrombie & Fitch Co.* 43,400 634,725 0.3%
Delia's, Inc.* 24,400 414,800 0.2%
Coldwater Creek, Inc.* 27,100 379,400 0.2%
Gadzooks, Inc.* 31,100 866,913 0.4%
Just For Feet, Inc.* 30,650 486,569 0.2%
Pacific Sunwear of California* 19,500 609,375 0.3%
- --------------------------------------------------------------------------------------------------
Total Apparel and Shoes 3,391,782 1.6%
==================================================================================================
Auto Parts .. 0.5%
- --------------------------------------------------------------------------------------------------
Gentex Corp.* 50,000 900,000 0.5%
==================================================================================================
Banks .. 1.1%
- --------------------------------------------------------------------------------------------------
Hamilton Bancorp., Inc.* 6,800 130,900 0.1%
Sirrom Capital Corp. 61,300 1,907,962 1.0%
- --------------------------------------------------------------------------------------------------
Total Banks 2,038,862 1.1%
==================================================================================================
Builders and Building Products .. 0.8%
- --------------------------------------------------------------------------------------------------
Diamond Home Services* 16,000 180,000 0.1%
Palm Harbor Homes, Inc.* 32,375 793,188 0.4%
Watsco, Inc. 24,900 619,388 0.3%
- --------------------------------------------------------------------------------------------------
Total Builders and Building Products 1,592,576 0.8%
==================================================================================================
Business Information Services .. 0.8%
- --------------------------------------------------------------------------------------------------
Gartner Group, Inc., Class A* 42,800 1,123,500 0.6%
Intelliquest Information Group, Inc.* 22,400 358,400 0.2%
- --------------------------------------------------------------------------------------------------
Total Business Information Services 1,481,900 0.8%
</TABLE>
20
<PAGE> 21
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
=======================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Business Services .. 4.7%
- ---------------------------------------------------------------------------------------
Accustaff Inc.* 127,808 $2,332,495 1.2%
Corrections Corp. of America* 43,900 1,432,237 0.7%
Elbit Vision Systems* 42,900 418,275 0.2%
Forrester Research, Inc.* 23,800 434,350 0.2%
Lason Holdings, Inc.* 21,100 358,700 0.2%
NCO Grupo, Inc.* 24,300 504,225 0.3%
Personnel Group of America, Inc.* 36,900 885,600 0.4%
Rental Service Corp.* 23,800 440,300 0.2%
Romac International, Inc.* 25,200 491,400 0.2%
Rural/Metro Corp.* 25,600 736,000 0.4%
TMP Worldwide, Inc.* 45,800 916,000 0.5%
Teletech Holdings, Inc.* 17,000 301,750 0.2%
- ---------------------------------------------------------------------------------------
Total Business Services 9,251,332 4.7%
=======================================================================================
Computer Services .. 6.5%
- ---------------------------------------------------------------------------------------
Bisys Group, Inc.* 36,000 1,152,000 0.6%
CCC Information Services Group* 38,500 452,375 0.2%
Cambridge Technology Partners, Inc.* 38,900 1,035,712 0.5%
Ciber, Inc.* 39,300 1,404,974 0.7%
Claremont Technology Group, Inc.* 16,300 220,050 0.1%
Envoy Corp.* 46,000 960,250 0.5%
Fiserv, Inc.* 78,500 2,963,375 1.5%
HBO & Co. 55,700 2,979,950 1.4%
HCIA, Inc.* 4,900 101,063 0.1%
Intelligroup, Inc.* 37,200 367,350 0.2%
National Techteam, Inc. 35,200 545,600 0.3%
Premiere Technologies, Inc.* 23,600 563,450 0.3%
Renaissance Solutions, Inc.* 10,400 226,200 0.1%
- ---------------------------------------------------------------------------------------
Total Computer Services 12,972,349 6.5%
</TABLE>
21
<PAGE> 22
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
========================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Computer Software .. 13.3%
- ----------------------------------------------------------------------------------------
Aspen Technology, Inc.* 63,400 $1,925,774 1.0%
Baan Company, N.V.* 45,600 2,451,000 1.1%
BDM International, Inc.* 65,800 1,529,850 0.7%
CBT Group, PLC-ADR* 18,900 919,013 0.5%
Dr. Solomon's Group* 20,400 471,750 0.2%
Electronics For Imaging, Inc.* 115,600 4,537,300 2.2%
HNC Software, Inc.* 48,000 1,272,000 0.6%
JDA Software Group, Inc.* 55,800 1,408,950 0.7%
McAfee Associates* 23,800 1,326,850 0.7%
Network General Corp.* 92,100 1,266,375 0.6%
Parametric Technology Corp.* 47,700 2,158,424 1.1%
Peoplesoft, Inc.* 46,500 1,929,750 1.0%
Scopus Technology, Inc. 17,000 454,750 0.2%
Synopsys, Inc.* 72,380 2,307,112 1.2%
Transaction Systems Architects, Inc.,
Class A* 66,300 1,989,000 1.0%
Vantive Corp.* 20,000 397,500 0.2%
Wind River Systems, Inc.* 24,400 561,200 0.3%
- ----------------------------------------------------------------------------------------
Total Computer Software 26,906,598 13.3%
========================================================================================
Cosmetics .. 0.9%
- ----------------------------------------------------------------------------------------
Blyth Industries, Inc.* 43,600 1,722,200 0.9%
========================================================================================
Credit and Finance .. 0.5%
- ----------------------------------------------------------------------------------------
First USA Paymentech, Inc.* 38,000 916,750 0.5%
========================================================================================
Discount .. 1.8%
- ----------------------------------------------------------------------------------------
Dollar Tree Stores, Inc.* 88,900 3,511,550 1.8%
</TABLE>
22
<PAGE> 23
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
================================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Drugs .. 2.5%
- ------------------------------------------------------------------------------------------------
Arqule, Inc.* 21,900 $ 309,338 0.2%
Capstone Pharmacy Services* 8,500 71,719 0.0%
Dura Pharmaceuticals* 77,600 2,250,400 1.0%
Jones Medical Industries, Inc. 33,375 1,176,468 0.6%
Kos Pharmaceuticals, Inc.* 22,400 504,000 0.3%
Medicis Pharmaceutical Corp., Class A* 26,100 639,450 0.3%
- ------------------------------------------------------------------------------------------------
Total Drugs 4,951,375 2.5%
================================================================================================
Educational Programs .. 1.7%
- ------------------------------------------------------------------------------------------------
Apollo Group, Inc., Class A* 91,232 2,454,279 1.2%
Sylvan Learning Systems, Inc.* 33,650 1,013,706 0.5%
- ------------------------------------------------------------------------------------------------
Total Educational Programs 3,467,985 1.7%
================================================================================================
Electrical Component/Semiconductor .. 2.7%
- ------------------------------------------------------------------------------------------------
Anadigics, Inc.* 43,800 1,237,350 0.6%
Etec Systems, Inc.* 12,000 349,500 0.2%
Sawtek, Inc.* 19,600 580,650 0.3%
Vitesse Semiconductor, Inc.* 104,450 3,290,175 1.6%
- ------------------------------------------------------------------------------------------------
Total Component/Semiconductor 5,457,675 2.7%
================================================================================================
Electrical Equipment/Peripher .. 0.4%
- ------------------------------------------------------------------------------------------------
Computer Products, Inc.* 26,800 458,950 0.2%
Ikos Systems, Inc.* 31,300 516,450 0.2%
- ------------------------------------------------------------------------------------------------
Total Electrical Equipment/Peripher 975,400 0.4%
================================================================================================
Electrical Products .. 0.2%
- ------------------------------------------------------------------------------------------------
Advanced Lighting Technologies, Inc.* 23,700 450,300 0.2%
</TABLE>
23
<PAGE> 24
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
=============================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Electronics .. 0.3%
- ---------------------------------------------------------------------------------------------
Anicom, Inc.* 36,100 $ 297,825 0.1%
Xionics Document Technologies, Inc.* 16,900 196,463 0.2%
- ---------------------------------------------------------------------------------------------
Total Electronics 494,288 0.3%
=============================================================================================
Entertainment and Leisure ..7.1%
- ---------------------------------------------------------------------------------------------
Condelwood Hotel Company, Inc.* 39,700 347,375 0.2%
Clear Channel Communications, Inc.* 64,700 3,137,950 1.5%
Extended Stay America, Inc.* 142,861 2,160,772 1.1%
Fairfield Communities, Inc.* 77,200 2,007,200 1.0%
HFS, Inc.* 77,200 4,574,100 2.3%
Interstate Hotels Co.* 28,300 711,038 0.4%
LodgeNet Entertainment Corp.* 40,000 360,000 0.2%
Rockshox, Inc.* 14,900 224,431 0.1%
Suburban Lodges of America* 39,700 640,163 0.3%
- ---------------------------------------------------------------------------------------------
Total Entertainment and Leisure 14,163,029 7.1%
=============================================================================================
Finance Companies .. 0.2%
- ---------------------------------------------------------------------------------------------
Ugly Duckling Corp.* 22,700 320,638 0.2%
=============================================================================================
Financial Services .. 2.0%
- ---------------------------------------------------------------------------------------------
BA Merchant Services, Inc.* 49,300 690,200 0.3%
Concord EFS, Inc.* 48,300 953,925 0.5%
Credit Acceptance Corp.* 24,200 261,663 0.1%
NOVA Corp.* 27,000 486,000 0.2%
PMT Services, Inc.* 119,000 1,413,125 0.7%
Pre-Paid Legal Services, Inc.* 34,900 497,325 0.2%
- ---------------------------------------------------------------------------------------------
Total Financial Services 4,302,238 2.0%
=============================================================================================
Gaming .. 0.2%
- ---------------------------------------------------------------------------------------------
Dover Downs Entertainment 26,200 429,025 0.2%
</TABLE>
24
<PAGE> 25
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
=============================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Health Maintenance Organizations .. 6.4%
- ---------------------------------------------------------------------------------------------
Oxford Health Plans, Inc.* 194,600 $12,819,274 6.4%
=============================================================================================
Home Furnishings .. 0.2%
- ---------------------------------------------------------------------------------------------
Zag Industries Ltd.* 33,100 459,262 0.2%
=============================================================================================
Insurance .. 1.9%
- ---------------------------------------------------------------------------------------------
Capmac Holdings, Inc. 25,100 652,600 0.3%
Enhance Financial Services Group, Inc. 12,800 492,800 0.3%
HCC Insurance Holdings, Inc. 101,600 2,552,700 1.3%
- ---------------------------------------------------------------------------------------------
Total Insurance 3,698,100 1.9%
=============================================================================================
Medical/Dental Products .. 1.3%
- ---------------------------------------------------------------------------------------------
Cohr, Inc.* 23,700 527,325 0.3%
Henry Schein, Inc.* 42,300 1,173,824 0.6%
ResMed Inc.* 15,000 262,500 0.1%
Safeskin Corp.* 29,000 648,875 0.3%
- ---------------------------------------------------------------------------------------------
Total Medical/Dental Products 2,612,524 1.3%
=============================================================================================
Medical/Dental Services .. 6.5%
- ---------------------------------------------------------------------------------------------
CRA Managed Care, Inc.* 22,500 793,125 0.4%
National Surgery Centers, Inc.* 31,800 954,000 0.5%
Occusystems, Inc.* 87,100 1,796,438 0.9%
Omnicare, Inc. 33,600 819,000 0.4%
Orthodontic Centers of America, Inc.* 91,900 1,102,800 0.6%
PAREXEL International Corp.* 45,600 1,276,800 0.6%
Pediatrix Medical Group, Inc.* 24,900 821,700 0.4%
Phymatrix Corp.* 27,900 320,850 0.2%
Quintiles Transnational Corp.* 58,100 2,955,837 1.5%
Renal Care Group, Inc.* 28,100 843,000 0.4%
Total Renal Care Holdings, Inc.* 34,400 1,105,100 0.6%
UroCor, Inc.* 10,200 94,350 0.0%
- ---------------------------------------------------------------------------------------------
Total Medical/Dental Services 12,883,000 6.5%
</TABLE>
25
<PAGE> 26
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
================================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Medical Instruments .. 0.5%
- ------------------------------------------------------------------------------------------------
Boston Scientific Corp.* 18,404 $ 887,993 0.4%
Ventana Medical Systems, Inc.* 18,400 181,700 0.1%
- ------------------------------------------------------------------------------------------------
Total Medical Instruments 1,069,693 0.5%
================================================================================================
Miscellaneous .. 0.2%
- ------------------------------------------------------------------------------------------------
Trigen Energy Corp. 13,100 319,313 0.2%
================================================================================================
Mortgage and Related Services .. 1.8%
- ------------------------------------------------------------------------------------------------
Cityscape Financial Corp.* 65,700 878,738 0.4%
ContiFinancial Corp.* 26,000 747,500 0.5%
Insignia Financial Group, Inc., Class A* 108,100 1,891,750 0.9%
- ------------------------------------------------------------------------------------------------
Total Mortgage and Related Services 3,517,988 1.8%
================================================================================================
Networking .. 0.2%
- ------------------------------------------------------------------------------------------------
Yurie Systems, Inc.* 43,500 418,688 0.2%
================================================================================================
Oil and Gas Production .. 0.7%
- ------------------------------------------------------------------------------------------------
Swift Energy Co.* 68,000 1,436,500 0.7%
================================================================================================
Oil Field Services .. 0.5%
- ------------------------------------------------------------------------------------------------
Chesapeake Energy Corp.* 70,900 1,072,362 0.5%
================================================================================================
Pharmaceuticals .. 0.1%
- ------------------------------------------------------------------------------------------------
Applied Analytical Industries, Inc.* 7,900 104,675 0.1%
================================================================================================
Pollution Control .. 2.4%
- ------------------------------------------------------------------------------------------------
Newpark Resources, Inc.* 26,500 1,189,188 0.6%
Republic Industries, Inc.* 56,652 1,405,678 0.7%
Tetra Technologies* 25,400 590,550 0.3%
United Waste Systems, Inc.* 49,800 1,680,750 0.8%
- ------------------------------------------------------------------------------------------------
Total Pollution Control 4,866,166 2.4%
</TABLE>
26
<PAGE> 27
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
=======================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Publishing/Advertising .. 0.2%
- ---------------------------------------------------------------------------------------
Getty Communications, PLC-ADR* 26,800 $ 368,500 0.2%
=======================================================================================
Specialty .. 3.3%
- ---------------------------------------------------------------------------------------
Barnett, Inc.* 28,300 523,550 0.3%
CDW Computers Centers, Inc.* 20,800 998,400 0.5%
Fastenal Co. 62,900 2,453,100 1.2%
Guitar Center, Inc.* 41,000 579,125 0.3%
Hibbett Sporting Goods, Inc.* 48,000 768,000 0.4%
Marks Bros. Jewelers, Inc.* 20,700 230,288 0.1%
Starbucks Corp.* 15,300 457,088 0.2%
West Marine, Inc.* 23,300 605,800 0.3%
- ---------------------------------------------------------------------------------------
Total Specialty Chains 6,615,351 3.3%
=======================================================================================
Telecommunications .. 5.9%
- ---------------------------------------------------------------------------------------
Advanced Fibre Communications, Inc.* 37,100 1,479,362 0.7%
Aspect Telecommunications Corp.* 45,100 800,525 0.5%
Davox Corp.* 19,000 627,000 0.4%
MRV Communications, Inc.* 79,300 1,635,563 0.8%
Pairgain Technologies, Inc.* 78,000 2,028,000 1.0%
P-Com, Inc.* 65,700 1,880,663 0.9%
Remec, Inc.* 34,300 788,900 0.4%
Tel-Save Holdings, Inc.* 132,100 1,849,400 0.9%
USCS International, Inc.* 30,400 501,600 0.3%
- ---------------------------------------------------------------------------------------
Total Telecommunications 11,591,013 5.9%
=======================================================================================
Telephone .. 0.2%
- ---------------------------------------------------------------------------------------
McLeod, Inc.* 24,900 457,538 0.2%
=======================================================================================
Textiles and Shoes .. 2.6%
- ---------------------------------------------------------------------------------------
St. John Knits, Inc.* 15,000 575,625 0.3%
Tommy Hilfiger Corp.* 115,300 4,583,175 2.3%
- ---------------------------------------------------------------------------------------
Total Textiles and Shoes 5,158,800 2.6%
</TABLE>
27
<PAGE> 28
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
===============================================================================================
Percentage of
EQUITY SECURITIES, CONTINUED Shares Value Net Assets
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tobacco .. 0.3%
- -----------------------------------------------------------------------------------------------
Consolidated Cigar Holdings, Inc.* 27,800 $ 639,400 0.3%
- -----------------------------------------------------------------------------------------------
Total Equity Securities (Cost $143,372,655) 170,961,999 85.6%
SHORT-TERM INVESTMENTS - 14.6%
===============================================================================================
Commercial Paper .. 13.0% Principal
Amount
- -----------------------------------------------------------------------------------------------
American Express Credit Corp.,
5.5600%, 5/8/1997 $6,000,000 6,000,000 3.0%
Ford Motor Credit Co.,
5.2295%, 5/15/1997 7,000,000 7,000,000 3.5%
General Electric Capital Corp.,
5.5261%, 5/22/1997 6,000,000 6,000,000 3.0%
Prudential Funding Corp.,
5.5093%, 5/15/1997 7,000,000 7,000,000 3.5%
- -----------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost $26,000,000) 26,000,000 13.0%
===============================================================================================
Repurchase Agreement .. 1.6%
- -----------------------------------------------------------------------------------------------
Lehman Brothers On-Line Repurchase
Agreement, 4.99%, dated 4/30/1997,
due 5/1/1997 (collateralized by $3,236,375
U.S. Treasury Bill, 7.87%, due 2/15/2021
(Cost $3,155,900) 3,155,900 3,155,900 1.6%
- -----------------------------------------------------------------------------------------------
Total Investments
(Cost $172,528,555) 100.2% 200,117,899 100.2%
</TABLE>
28
<PAGE> 29
P-I-C
SMALL CAP. STATEMENT OF NET ASSETS
PORTFOLIO as of April 30, 1997
<TABLE>
<CAPTION>
====================================================================================
Percentage of
OTHER ASSETS - 0.2% Value Net Assets
- ------------------------------------------------------------------------------------
<S> <C> <C>
Cash $ 45
Receivables:
Investment securities sold 336,048
Dividends and interest 105,507
Prepaid insurance 5,127
Deferred organization costs 15,042
Other assets 13,254
- ------------------------------------------------------------------------------------
Total assets 475,023 0.2%
====================================================================================
LIABILITIES - (0.4%)
- ------------------------------------------------------------------------------------
Payable for investment securities purchased 600,732
Deferred Trustees' compensation (Note 3) 11,407
Accrued expenses 177,064
- ------------------------------------------------------------------------------------
Total liabilities 789,203 (0.4)%
====================================================================================
TOTAL NET ASSETS - 100.0% $199,803,719 100.0%
- ------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
29
<PAGE> 30
P-I-C STATEMENTS OF OPERATIONS
GROWTH Six Months ended April 30, 1997
SMALL CAP.
PORTFOLIOS
<TABLE>
<CAPTION>
GROWTH SMALL CAP.
PORTFOLIO PORTFOLIO
================================================================================
INVESTMENT INCOME
- --------------------------------------------------------------------------------
<S> <C> <C>
Income:
- --------------------------------------------------------------------------------
Dividends $ 391,766 $ 67,444
Interest 150,714 525,400
- --------------------------------------------------------------------------------
Total income 542,480 592,844
================================================================================
Expenses:
- --------------------------------------------------------------------------------
Investment advisory fee (Note 3) 471,376 858,350
Administration fee (Note 3) 58,922 107,294
Accounting services fee 34,267 43,941
Custodian fee 16,326 32,828
Audit fee 12,051 8,083
Trustees' fees 8,480 8,480
Miscellaneous 5,306 5,307
Amortization of organization costs 4,959 4,959
Legal fees 2,480 3,696
- --------------------------------------------------------------------------------
Total expenses 614,167 1,072,938
Less, reimbursement/waiver from
Advisor (Note 3) (24,947) 0
- --------------------------------------------------------------------------------
Net expenses 589,220 1,072,938
================================================================================
Net investment loss (46,740) (480,094)
================================================================================
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
- --------------------------------------------------------------------------------
Net realized gain from security
transactions 6,138,825 3,925,861
Change in net unrealized appreciation
(depreciation) on investments 2,833,494 (45,162,195)
- --------------------------------------------------------------------------------
Net gain (loss) on investments 8,972,319 (41,236,334)
================================================================================
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $8,925,579 $(41,716,428)
- --------------------------------------------------------------------------------
</TABLE>
Unaudited. See Notes to Financial Statements.
30
<PAGE> 31
P-I-C STATEMENTS OF CHANGES IN NET ASSETS
GROWTH
SMALL CAP.
PORTFOLIOS
<TABLE>
<CAPTION>
SMALL CAP.
GROWTH PORTFOLIO PORTFOLIO
=======================================================================================================================
INCREASE (DECREASE) IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year
ended ended ended ended
From operations: April 30, 1997 Oct. 31, 1996 Oct. 31, 1997 Oct. 31, 1996
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment loss $ (46,740) $ (34,806) $ (480,094) $ (1,037,169)
Net realized gain from
security transactions 6,138,825 17,614,277 3,925,861 14,963,528
Change in net unrealized
appreciation (depreciation)
on investments 2,833,494 (28,383,014) (45,162,195) 18,982,622
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
operations 8,925,579 (10,803,543) (41,716,428) 32,908,981
=======================================================================================================================
Transactions in Interests:
Contributions by Holders 10,553,110 19,462,190 58,928,644 57,035,094
Withdrawals by Holders (14,562,634) (122,401,366) (18,709,173) (18,975,416)
- ----------------------------------------------------------------------------------------------------------------------
Net (decrease) increase
in net assets from
transactions in interests (4,009,524) (102,939,176) 40,219,471 38,059,678
=======================================================================================================================
Total increase (decrease) in net assets 4,916,055 (113,742,719) (1,496,957) 70,968,659
=======================================================================================================================
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------
Beginning of period 116,099,529 229,842,248 201,300,676 130,332,017
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 121,015,584 $ 116,099,529 $ 199,803,719 $ 201,300,676
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Unaudited. See Notes to Financial Statements.
31
<PAGE> 32
P-I-C SELECTED RATIO DATA
GROWTH
SMALL CAP.
PORTFOLIOS
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
====================================================================================================================================
Six Months Year Year Year Year June 11, 1992*
ended ended ended ended ended through
April 30, 1997 Oct. 31, 1996 Oct. 31, 1995 Oct. 31, 1994 Oct. 31, 1993 Oct. 31, 1992
- ------------------------------------------------------------------------------------------------------------------------------------
<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) income 0.08%+ (0.04%) 0.08% 0.10% 0.17% 0.70%+
Portfolio turnover rate 24.34% 64.09% 54.89% 68.26% 43.20% 7.42%
Average commission rate
paid per share** $ 0.0434 $ 0.0440 - - - -
</TABLE>
*Commencement of operations.
++Net of expense reimbursements equivalent to 0.04%, 0.04%, 0.01%, 0.01%, 0.09%
and 0.39% of average net assets, respectively.
+Annualized.
**For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on which
commissions are charged.
Unaudited. See Notes to Financial Statements.
32
<PAGE> 33
<TABLE>
<CAPTION>
SMALL CAP. PORTFOLIO
====================================================================================================================
Six Months Year Year Year Sept. 30, 1993*
ended ended ended ended through
April 30, 1997 Oct. 31, 1996 Oct. 31, 1995 Oct. 31, 1994 Oct. 31, 1993
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Ratios to average net assets:#
Operating expenses 1.00%+ 1.00% 1.00% 1.00% 1.00%+
Net investment (loss) income (.45%)+ (.59%) (.51%) (.49%) (.79%)+
Portfolio turnover rate 35.70% 53.11% 45.45% 63.89% 6.06%
Average commission rate
paid per share** $ 0.0311 $ 0.0307 - - -
</TABLE>
*Commencement of operations.
#Net of expense reimbursements equivalent to 0.00%, 0.01%, 0.07%, 0.10%, and
0.11% of average net assets, respectively.
+Annualized.
**For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on which
commissions are charged.
33
<PAGE> 34
P-I-C NOTES TO FINANCIAL STATEMENTS
GROWTH
SMALL CAP.
PORTFOLIOS
================================================================================
1 - ORGANIZATION
- --------------------------------------------------------------------------------
P-I-C Growth Portfolio was organized on December 11, 1991 and P-I-C Small
Cap. Portfolio was organized on March 22, 1993 as separate trusts under the laws
of the State of New York (each a "Portfolio" and collectively the "Portfolios").
The beneficial interests in each Portfolio are divided into an unlimited number
of non-transferable interests, par value $.01 each. The Portfolios are
registered under the Investment Company Act of 1940 as open-end, diversified
management investment companies.
2 - SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following is a summary of significant accounting policies consistently
followed by the Portfolios. These policies are in conformity with generally
accepted accounting principles.
A. Valuation of Securities. Equity securities listed on a national securities
exchange or traded on the NASDAQ system are valued at their last sale
price. Other equity securities and debt securities for which market
quotations are readily available are valued at the mean between their bid
and asked price, except that debt securities maturing within 60 days are
valued on an amortized cost basis. Securities for which market quotations
are not readily available are valued at fair value as determined in good
faith by the Board of Trustees.
B. Federal Income Taxes. Each Portfolio intends to comply with the
requirements of the Internal Revenue Code applicable to it. Therefore, no
federal income tax provision is required.
C. Deferred Organization Expense. Organization costs of the Portfolios are
being amortized on a straight line basis over a period of sixty months.
During the amortization period the proceeds of any redemption of the
original Interests in a Portfolio by any Holder thereof will be reduced by
a pro rata portion of any then unamortized organization costs based on the
ratio of Interests redeemed to the total initial Interests outstanding
prior to the redemption.
D. Other. Securities transactions are recorded on the trade date basis.
Realized gains and losses from securities transactions are reported on an
identified cost basis. Interest is recorded as accrued, and dividend
income is recorded on the ex-dividend date.
34
<PAGE> 35
P-I-C NOTES TO FINANCIAL STATEMENTS,
GROWTH CONTINUED
SMALL CAP.
PORTFOLIOS
================================================================================
E. Accounting Estimates. In preparing financial statements in conformity with
generally accepted accounting principles, management makes estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements, as well as the reported amounts of
revenues and expenses during the period. Actual results could differ from
those estimates.
3 - TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
Each Portfolio has entered into an investment advisory agreement with
Provident Investment Counsel, Inc. ("PIC") and an administration agreement with
Investment Company Administration Corporation ("ICAC"), pursuant to which
agreements certain employees of these entities serve as officers and/or trustees
of the Portfolios. PIC and ICAC also provide management services necessary for
the operations of the Portfolios and furnish office facilities.
PIC receives from Growth and Small Cap. Portfolios an investment advisory
fee at the annual rate of 0.80% of its average net assets from each of the
Portfolios. In addition, PIC has voluntarily taken to limit the expenses of the
Growth and Small Cap. Portfolios to 1.00% of its average net assets for each of
the Portfolios.
During the six months ended April 30, 1997, PIC waived its fees to the
Growth Portfolio in the amount of $24,947.
ICAC receives for its services a fee at the annual rate of 0.10% of the
average net assets of the Portfolios. Fees paid to ICAC for the six months ended
April 30, 1997 are stated on the respective Portfolios' Statement of Operations.
On December 19, 1995, each Portfolio approved a Deferred Compensation Plan
for Trustees (the "Plan"). Trustees are entitled to receive $2,500 per quarter
and $500 per meeting attended, which is allocated among the Portfolios. Trustees
can elect to receive payment in cash or defer payments provided for in the Plan.
35
<PAGE> 36
P-I-C NOTES TO FINANCIAL STATEMENTS,
GROWTH CONTINUED
SMALL CAP.
PORTFOLIOS
================================================================================
4 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
The aggregate purchases and sales of investment securities, other than
short-term obligations, for the six months ended April 30, 1997, were as
follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Growth Portfolio $27,345,954 $36,955,499
Small Cap. Portfolio 94,029,054 65,500,963
</TABLE>
The aggregate unrealized appreciation and depreciation of investment
securities at April 30, 1997, based on costs for federal income tax purposes,
were as follows:
<TABLE>
<CAPTION>
Tax Gross Gross
Costs of Unrealized Unrealized
Investments Appreciation Depreciation
----------- ------------ ------------
<S> <C> <C> <C>
Growth Portfolio $ 90,980,668 $32,100,993 $ 1,194,510
Small Cap. Portfolio 172,528,555 38,357,190 10,767,846
</TABLE>
36
<PAGE> 37
[P-I-C LOGO] P-I-C
GROWTH FUND TRUSTEES AND OFFICERS
SMALL COMPANY GROWTH FUND
================================================================================
TRUSTEES AND OFFICERS - P-I-C INVESTMENT TRUST
- --------------------------------------------------------------------------------
Jeffrey J. Miller, Trustee and President
Jettie M. Edwards, Trustee
Bernard J. Johnson, Trustee
Jeffrey D. Lovell, Trustee
Wayne H. Smith, Trustee
Thad M. Brown, Vice President, Secretary and Treasurer
TRUSTEES AND OFFICERS - P-I-C PORTFOLIOS
- --------------------------------------------------------------------------------
Jeffrey J. Miller, Trustee and President
Richard N. Frank, Trustee
James Clayburn LaForce, Trustee
Angelo R. Mozilo, Trustee
Bernard J. Johnson, Trustee Emeritus
Thad M. Brown, Vice President, Secretary and Treasurer
LEGAL COUNSEL - P-I-C INVESTMENT TRUST
- --------------------------------------------------------------------------------
Shereff, Friedman, Hoffman & Goodman
LEGAL COUNSEL - P-I-C PORTFOLIOS
- --------------------------------------------------------------------------------
Paul, Hastings, Janofsky & Walker, LLP
INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
McGladrey & Pullen, LLP
This report is intended for the information of shareholders of P-I-C Funds and
should not be used as sales literature unless preceded or accompanied by a
current prospectus.
- ----------------
