PROVIDENT INVESTMENT COUNSEL
---------
MUTUAL
FUNDS
---------
PROVIDENT
INVESTMENT COUNSEL
FUNDS A AND B
BALANCED FUND
GROWTH FUND
MID CAP FUND
SMALL COMPANY GROWTH FUND
Semi-Annual Report April 30, 1999
Provident Investment Counsel
Investing in growth since 1951
<PAGE>
CONTENTS
3 President's Letter
4 Our Philosophy
5 Inverview with Provident Managers
THE FUND'S
10 Statements of Assets and Liabilities
12 Statements of Operations
14 Statements of Changes in Net Assets
18 Financial Highlights
23 Notes to Financial Statements
THE PORTFOLIO'S
29 Statement of Net Assets
57 Statement of Operations
58 Statements of Changes in Net Assets
60 Selected Ratio Data
64 Notes to Financial Statements
ITEMS OF INTEREST
+ MID CAP SHAREHOLDERS HAVE BEEN SIGNIFICANTLY REWARDED THIS YEAR AS THE
FUND AND MID CAP EQUITIES IN GENERAL HAVE OUT-PERFORMED MOST OTHER
INVESTMENT CATEGORIES. As the equity market performance continues to
broaden and include Mid and Small Company Shares, we are hopeful that
this trend will continue.
+ 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.
+ ELECTRONIC TECHNOLOGY, UTILITIES AND PRODUCER MANUFACTURING HOLDINGS
have been the significant contributors to Fund performance over the
last few months.
+ OUR WEBSITE ADDRESS IS:
www.provnet.com
2
<PAGE>
DEAR SHAREHOLDER,
All of the PIC Mutual Funds produced positive results for the six months
ending April 30, 1999 (more detailed information is available on the following
pages). The Growth Fund led the way due to its concentration in larger holdings.
The Small Company Fund made a strong recovery from the lows last September and
October only to lose ground again during the early part of this year.
The fundamentals of our small company holdings remained very compelling and
we were pleased to see some positive performance in May and June. Shares of the
Mid Cap Fund have enjoyed very positive returns thus far in 1999 as the market
has broadened from favoring only the largest issues.
Due to April's disappointing results, there was some media discussion about
a rotation by investors out of high quality growth shares into "cheaper"
cyclical company shares. We believe this move is only temporary, precipitated by
several factors, including surprising economic growth and better than expected
profit growth by many cyclical issues.
It is our view that the consumer-driven U.S. economy is enjoying robust
growth with pleasantly strong first quarter earnings. However, on closer review,
we find that many of the earnings growth expectations had been downgraded by
savvy corporate management teams of cyclical issues and that overly optimistic
future earnings may not be attainable. While cyclical stocks might fare well for
several months, it is ill-conceived to believe that a sea change has taken place
with value/cyclical stocks outperforming for a protracted period of time.
During May and in early June, we have been pleased to see growth shares
holding their own once again and Small Company shares in particular, performing
quite well. The market-broadening theme continues, allowing some lagging issues
to catch up, providing a firm and broad base for the market, which should
benefit all investors. We fully expect to see growth stocks once again
outperform as Y2K worries and continued slower
3
<PAGE>
SHAREHOLDER LETTER, continued
growth in most overseas markets impact investors' perceptions of the
sustainability of cyclical company earnings.
We appreciate your continued confidence in Provident Investment Counsel.
Sincerely,
/s/ Douglass B. Allen
Douglass B. Allen
President, PIC Investment Trust
June 17, 1999
3
OUR PHILOSOPHY
+ Focused, fundamental research, properly controlled, adds value.
+ Sustainable earnings growth is the most important contributor to
long-term stock appreciation.
+ Emphasis on strong financial characteristics ensures focus on growth
and quality.
+ Investment style consistency is critical to superior long-term
investment results.
4
<PAGE>
INTERVIEW WITH PROVIDENT MANAGERS
WHAT INDUSTRY SECTORS PERFORMED POSITIVELY FOR THE VARIOUS FUND'S EQUITY
HOLDINGS?
Growth and Balanced
+ Utilities
+ Electronic Technology
+ Producer Manufacturing
Mid Cap
+ Consumer Services
+ Technology Services
+ Commercial Services
Small Company
+ Electronic Technology
+ Technology Services
+ Utilities
Q April proved to be a very cruel month to investors owning high-quality,
large cap growth stocks. Investors abandoned these companies in a seemingly
irrational rush to buy "cheaper" cyclical stocks. To what do you attribute
this shift?
A As stated in our letter to shareholders there are a few themes that have
driven what we believe is a temporary shift toward cyclical issues such as:
1) A strong consumer-driven economy with better than expected growth
domestically, coupled with surprising growth internationally. However, we
continue to see evidence of recession in many countries outside the U.S.,
including Japan and possibly Germany in the near future.
2) Better than expected profit growth domestically by many cyclical issues
driven by savvy management teams that successfully lowered Wall Street
expectations for their earnings. Many of these cyclical issues were coming
off a very disappointing 1998 that made year over year comparisons very
easy to beat.
3) During the fall of 1998, the "flight to quality" may have caused the
valuations of Provident Growth and Balanced Fund equity holdings to be
momentarily over-extended. In light of this, it is understandably a needed
step for our stocks to pause and catch their breath, acclimating to the
strong move they have made.
Q During the difficult month of April, one of the bright spots was the
apparent shift in leadership as Small Company stocks outperformed those of
larger issues. What factors caused this change?
A This performance leadership actually continued in May--the second month in
a row where small cap stocks outperformed large cap equities. We are also
pleased to report it was a month where your Fund also did well. One has to
go back several years to find a similar time when small stocks have
outperformed large
5
<PAGE>
INTERVIEW WITH PROVIDENT MANAGERS, continued
cap stocks in successive months. While mindful that "one Robin doesn't make
it Spring," it certainly is encouraging. We have made several adjustments
to the portfolio since the February/March period and have now seen the
beneficial impact on the returns.
The shift favoring small cap stocks is in keeping with our expectations. As
investors become more confident about a more rapid growth scenario for the
economy, they are willing to take on added risk. As the Year 2000
approaches, savvy investors focus on the new economy--defined as an era
when communications technology creates global competition and people work
with their brains instead of their hands. This trend towards technology
instead of industrial stocks is clearly showing up in the flow of funds
data, where mutual fund investors are starting to put new money into small
cap funds, which favor technology stocks.
Q To what do you attribute the recent good performance by the Small Company
and Mid Cap Fund?
A We believe there are several factors that caused this positive performance.
In the month of May, for example, the Fund's performance can be attributed
to both strong stock selection and sector allocation in the health services
area, electronic technology, and consumer services. Performance clearly
broadened out to include quality small companies that demonstrated positive
earnings, as opposed to the narrow "Internet only" performance in the first
quarter.
Q During the latter part of May, the markets in general have been rather
choppy, without clear direction. What caused this recent volatility?
A If one is looking for a reason for the recent market weakness, one needs to
look at the Federal Reserve's action on May 18, signaling to investors
their bias towards a tighter monetary
6
<PAGE>
INTERVIEW WITH PROVIDENT MANAGERS, continued
policy in the future. This followed the release of a higher than expected
CPI number for the month of April. Long-term interest rates, which had
risen to close to 6% prior to the Fed's announcement, quickly rallied to
the 5.75% area, only to weaken again last week to a 5.86% level. This
upward bias has caused investor concern about valuations of the general
stock market, should interest rates continue to rise and cross the
psychologically important 6% level. Another exacerbating factor has been
that, for the first time this year, investors are starting to question the
high valuations afforded to Internet stocks. Many of these high-flying
stocks are off over 50% from their April highs. This uncertainty has
spilled over into the general technology sector. As in April,
Pharmaceutical stocks continued to be weak, although rallying sharply on
the last day of the trading month.
More recently, in the middle of June as we write this commentary, we have
seen positive news with regard to inflationary pressures. As an example,
recently released Consumer Price Index numbers were at lower than expected
levels, easing investors' worst fears of a larger increase in interest
rates by the Federal Reserve.
Q What is your outlook for the markets in general for the remainder of the
year?
A The shift favoring cyclical stocks has slowed in recent weeks. Our analysis
of reported earnings shows that the rates of change in revenue and earnings
growth of some now high-flying cyclical stocks are still quite weak over
several quarters. These factors question the sustainability of their recent
price appreciation. This was evident during the last week of May when
numerous cyclical stocks were quite weak. To illustrate, Alcoa was down
8.3%; Caterpillar was off 8.0%; International Paper was down 9.0%.
As mentioned earlier, we made a few recent changes to the portfolio, which
we believe will be rewarding in the near future, particularly if the
economy continues to stay stronger than we
7
<PAGE>
INTERVIEW WITH PROVIDENT MANAGERS, continued
had expected at the beginning of the year. We have added Waste Management
to the portfolio along with Schlumberger. We have continued to trim our
exposure to health technology and have reduced our exposure to the finance
sector by selling our holding of Fannie Mae. Should interest rates stay
firm or rise from these levels, then selected financial stocks will most
likely under-perform the general market.
While we cannot predict future results, if the first part of June is any
indicator, we may expect a continued improvement in performance, and as the
market broadens out, the Funds with their well balanced portfolios may do
very well from a relative performance perspective.
8
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9
<PAGE>
- ----------------------------
Provident Investment Counsel STATEMENT OF ASSETS AND LIABILITIES
Mutual Funds as of April 30, 1999
- ----------------------------
<TABLE>
<CAPTION>
SMALL
BALANCED GROWTH MID CAP COMPANY
FUND A FUND A FUND A GROWTH FUND A
----------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investment in Portfolios,
at value $32,735,283 $ 6,208,559 $ 8,396,465 $ 861,260
Cash -- -- -- 32,276
Receivables:
Due from Provident
Investment Counsel,
Inc. (Note 3) 12,457 8,494 -- 7,514
Fund shares sold 14,135 16,509 -- --
Deferred organization costs -- -- 10,557 --
----------- ----------- ----------- ---------
Total Assets 32,761,875 6,233,562 8,407,022 901,050
=========== =========== =========== =========
LIABILITIES
Payables:
Due to Provident
Investment Counsel,
Inc. (Note 3) -- -- 7,013 --
Investments in
Portfolios purchased 14,135 16,509 -- --
Accrued expenses 137,847 69,179 50,273 57,655
Deferred trustees'
compensation (Note 3) 12,416 6,372 3,678 7,016
----------- ----------- ----------- ---------
Total Liabilities 164,398 92,060 60,964 64,671
=========== =========== =========== =========
NET ASSETS
Applicable to 1,784,126;
362,870; 606,415 and
84,196 shares of
beneficial interest
outstanding, respectively $32,597,477 $ 6,141,502 $ 8,346,058 $ 836,379
=========== =========== =========== =========
NET ASSET VALUE PER SHARE $ 18.27 $ 16.92 $ 13.76 $ 9.93
=========== =========== =========== =========
SOURCE OF NET ASSETS
Paid-in capital $18,739,889 $ 4,701,580 $ 6,697,857 $ 963,893
Accumulated net investment
gain (loss) 26,806 (24,786) (41,904) (15,355)
Accumulated net realized
gain (loss) on investments 7,183,079 205,011 175,432 (658,919)
Net unrealized appreciation
of investments 6,647,703 1,259,697 1,514,673 546,760
----------- ----------- ----------- ---------
Net Assets $32,597,477 $ 6,141,502 $ 8,346,058 $ 836,379
=========== =========== =========== =========
</TABLE>
Unaudited. See Notes to Financial Statements.
10
<PAGE>
- ----------------------------
Provident Investment Counsel STATEMENT OF ASSETS AND LIABILITIES
Mutual Funds as of April 30, 1999
- ----------------------------
SMALL
BALANCED GROWTH MID CAP COMPANY
FUND B FUND B FUND B GROWTH FUND B
----------- ---------- ---------- -------------
ASSETS
Investment in Portfolios,
at value $ 975 $ 2,944 $ 5,266 $ 1,022
Prepaid expenses 14,053 14,053 14,053 14,053
-------- -------- -------- --------
Total Assets 15,028 16,997 19,319 15,075
======== ======== ======== ========
LIABILITIES
Payables:
Due to Provident
Investment Counsel,
Inc. (Note 3) 6,295 6,294 6,294 6,295
Accrued expenses 7,452 7,453 7,453 7,452
Deferred trustees'
compensation (Note 3) 306 306 306 306
-------- -------- -------- --------
Total Liabilities 14,053 14,053 14,053 14,053
======== ======== ======== ========
NET ASSETS
Applicable to 53; 172; 389
and 104 shares of
beneficial interest
outstanding,
respectively $ 975 $ 2,944 $ 5,266 $ 1,022
======== ======== ======== ========
NET ASSET VALUE
PER SHARE $ 18.41 $ 17.10 $ 13.53 $ 9.86
======== ======== ======== ========
SOURCE OF NET ASSETS
Paid-in capital $ 1,000 $ 3,000 $ 5,247 $ 1,000
Accumulated net investment
gain (loss) 1 (1) (1) --
Accumulated net realized
loss on investments (54) (120) (7) (35)
Net unrealized appreciation
of investments 28 65 27 57
-------- -------- -------- --------
Net Assets $ 975 $ 2,944 $ 5,266 $ 1,022
======== ======== ======== ========
Unaudited. See Notes to Financial Statements.
11
<PAGE>
- ----------------------------
Provident Investment Counsel STATEMENT OF OPERATIONS
Mutual Funds Six Months ended April 30, 1999
- ----------------------------
<TABLE>
<CAPTION>
SMALL
BALANCED GROWTH MID CAP COMPANY
FUND A FUND A FUND A GROWTH FUND A
----------- ---------- ---------- -------------
INVESTMENT INCOME
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income (loss)
from Portfolios $ 232,694 $ (10,427) $ (20,721) $ (5,669)
=========== ========= =========== =========
Expenses
Administration fees (Note 3) 43,418 9,843 14,704 8,913
Distribution fees 44,972 6,007 8,891 1,841
Trustees' fees 3,461 3,501 3,264 3,458
Audit fee 5,108 5,109 5,213 5,109
Legal fee 1,844 1,848 965 954
Transfer agent's fee 13,637 11,747 11,641 11,747
Custody and accounting
services fee 2,977 2,977 3,034 2,977
Report to shareholders 4,364 4,368 4,438 4,368
Shareholder servicing 26,984 3,604 5,334 1,105
Registration fees 8,390 7,670 8,625 7,920
Amortization of organization
costs -- -- 1,421 --
Miscellaneous 2,480 2,480 2,530 2,480
----------- --------- ----------- ---------
Total expenses 157,635 59,154 70,060 50,872
Less reimbursement/waiver
by Provident Investment
Counsel, Inc. (Note 3) (112,662) (50,743) (52,302) (46,822)
----------- --------- ----------- ---------
Net expenses 44,973 8,411 17,758 4,050
=========== ========= =========== =========
Net investment income (loss) 187,721 (18,838) (38,479) (9,719)
=========== ========= =========== =========
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain on
investments from
Portfolios 7,206,332 269,147 441,944 90,865
Change in net unrealized
appreciation (depreciation)
of investments from Portfolios (1,325,737) 630,484 1,457,427 397,726
----------- --------- ----------- ---------
Net gain on investments 5,880,595 899,631 1,899,371 488,591
=========== ========= =========== =========
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 6,068,316 $ 880,793 $ 1,860,892 $ 478,872
=========== ========= =========== =========
</TABLE>
Unaudited. See Notes to Financial Statements.
12
<PAGE>
- ----------------------------
Provident Investment Counsel STATEMENT OF OPERATIONS
Mutual Funds Six Months ended April 30, 1999
- ----------------------------
<TABLE>
<CAPTION>
Small
Balanced Growth Mid Cap Company
Fund B Fund B Fund B Growth Fund B
--------- ------ ------- -------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income (loss)
from Portfolios $ 1 $ (1) $ (1) $ --
======== ======== ======== ========
Expenses
Administration fees (Note 3) 1,227 1,227 1,227 1,227
Trustees' fees 459 459 459 459
Audit fee 1,402 1,402 1,402 1,402
Legal fees 246 245 245 245
Transfer agent's fee 1,881 1,881 1,881 1,881
Custody and accounting
services fees 490 491 491 490
Report to shareholders 409 409 409 409
Registration fees 1,231 1,231 1,231 1,231
Amortization of organization
costs 2,500 2,500 2,500 2,500
Distribution fee 1 1 1 1
Miscellaneous 410 411 412 411
-------- -------- -------- --------
Total expenses 10,256 10,257 10,258 10,256
-------- -------- -------- --------
Less reimbursement by
ProvidentInvestment
Counsel, Inc. (Note 3) (10,255) (10,256) (10,256) (10,255)
-------- -------- -------- --------
Net expenses 1 1 2 1
======== ======== ======== ========
Net investment income (loss) -- (2) (3) (1)
======== ======== ======== ========
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized loss on investments
from Portfolios (53) (119) (5) (34)
Change in net unrealized
appreciation of investments
from Portfolios 28 65 27 57
-------- -------- -------- --------
Net gain (loss) on investments (25) (54) 22 23
======== ======== ======== ========
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ (25) $ (56) $ 19 $ 22
======== ======== ======== ========
</TABLE>
Unaudited. See Notes to Financial Statements.
13
<PAGE>
- ----------------------------
Provident Investment Counsel STATEMENTS OF CHANGES IN NET ASSETS
Mutual Funds
- ----------------------------
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------------------------
Six Months Year
ended ended
FROM OPERATIONS: April 30, 1999* Oct. 31, 1998
--------------- -------------
Net investment income (loss) $ 187,721 $ 381,122
Net realized gain (loss) on investments
from Portfolios 7,206,332 2,840,801
Change in net unrealized appreciation
(depreciation) of investments from
Portfolios (1,325,737) 3,069,593
------------ ------------
Net increase (decrease) in net assets
resulting from operations 6,068,316 6,291,516
============ ============
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (207,229) (360,834)
From net realized gains (2,848,191) (2,299,644)
------------ ------------
Total distributions to shareholders (3,055,420) (2,660,478)
============ ============
Transactions in shares of beneficial interest:
Purchases of 243,316; 254,988; 116,558;
101,572; 82,379; 878,218; 60,392 and
317,026 shares, respectively 4,396,668 4,137,359
Reinvestment of 180,841; 178,506; 0; 0; 0;
0; 0 and 0 shares, respectively 3,048,114 2,658,417
Redemptions of 1,121,694; 230,922; 24,910;
18,330; 18,666; 335,516; 292,180 and
21,492 shares, respectively (19,912,717) (3,717,356)
============ ============
Net increase (decrease) in net assets resulting
from share transactions (12,467,935) 3,078,420
============ ============
Total increase (decrease) in net assets (9,455,039) 6,709,458
============ ============
NET ASSETS
Beginning of period 42,052,516 35,343,058
------------ ------------
End of period $ 32,597,477 $ 42,052,516
------------ ------------
See Notes to Financial Statements.
14
<PAGE>
<TABLE>
<CAPTION>
Six Months Year Six Months Dec. 31, 1997+ Six Months Year
ended ended ended through ended ended
April 30, 1999* Oct. 31, 1998 April 30, 1999* Oct. 31, 1998 April 30, 1999* Oct. 31, 1998
- --------------- ------------- --------------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
$ (18,838) $ (21,586) $ (38,479) $ (17,662) $ (9,719) $ (37,919)
269,147 (52,313) 441,944 (198,903) 90,865 (692,290)
630,484 552,893 1,457,427 57,246 397,726 94,294
- ----------- ----------- ----------- ----------- ----------- -----------
880,793 478,994 1,860,892 (159,319) 478,872 (635,915)
=========== =========== =========== =========== =========== ===========
-- -- -- -- -- --
-- -- -- -- -- --
- ----------- ----------- ----------- ----------- ----------- -----------
-- -- -- -- -- --
=========== =========== =========== =========== =========== ===========
1,965,090 1,325,178 1,001,888 9,346,293 563,134 2,252,112
-- -- -- -- -- --
(412,188) (246,777) (232,713) (3,470,983) (2,892,691) (2,009,167)
=========== =========== =========== =========== =========== ===========
1,552,902 1,078,401 769,175 5,875,310 (2,329,557) 242,945
=========== =========== =========== =========== =========== ===========
2,433,695 1,557,395 2,630,067 5,715,991 (1,850,685) (392,970)
=========== =========== =========== =========== =========== ===========
3,707,807 2,150,412 5,715,991 -- 2,687,064 3,080,034
- ----------- ----------- ----------- ----------- ----------- -----------
$ 6,141,502 $ 3,707,807 $ 8,346,058 $ 5,715,991 $ 836,379 $ 2,687,064
- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
*Commencement of operations.
+Unaudited.
15
<PAGE>
- ----------------------------
Provident Investment Counsel STATEMENTS OF CHANGES IN NET ASSETS
Mutual Funds
- ----------------------------
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small
Balanced Growth Mid Cap Company
Fund B Fund B Fund B Growth Fund B
------ ------ ------ -------------
INCREASE (DECREASE) IN NET ASSETS
- --------------------------------------------------------------------------------------------------
Mar. 31, 1999* Mar. 31, 1999* Mar. 31, 1999* Mar. 31, 1999*
through through through through
From Operations: Apr. 30, 1999 Apr. 30, 1999 Apr. 30, 1999 Apr. 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net investment income (loss) $ -- $ (2) $ (3) $ (1)
Net realized loss on investments
from Portfolios (53) (119) (5) (34)
Net change in unrealized
appreciation of investments
from Portfolios 28 65 27 57
------- ------- ------- -------
Net increase (decrease) in net
assets resulting from
operations (25) (56) 19 22
======= ======= ======= =======
Transactions in shares of
beneficial interest:
Purchases of 53; 172; 389 and
104 shares, respectively 1,000 3,000 5,247 1,000
======= ======= ======= =======
Net increase in net assets
resulting from share
transactions 1,000 3,000 5,247 1,000
======= ======= ======= =======
Total increase in net assets 975 2,944 5,266 1,022
======= ======= ======= =======
NET ASSETS
Beginning of period -- -- -- --
------- ------- ------- -------
End of period $ 975 $ 2,944 $ 5,266 $ 1,022
------- ------- ------- -------
</TABLE>
*Commencement of operations.
Unaudited. See Notes to Financial Statements.
16
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17
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- ----------------------------
Provident Investment Counsel FINANCIAL HIGHLIGHTS
Mutual Funds
- ----------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Balanced Fund A
---------------------------------------------
Six Months Year Year
ended ended ended
April 30, 1999+ Oct. 31, 1998 Oct. 31, 1997
--------------- ------------- -------------
Net asset value, beginning of
period $16.95 $15.51 $13.91
------ ------ ------
Income from investment operations:
Net investment income (loss) 0.10 0.16 0.16
Net realized and unrealized
gain (loss) on investments 2.50 2.44 2.64
------ ------ ------
Total from investment operations 2.60 2.60 2.80
------ ------ ------
Less distributions to shareholders:
From net investment income (0.10) (0.15) (0.16)
From net realized capital gains (1.18) (1.01) (1.04)
------ ------ ------
Total distributions to shareholders (1.28) (1.16) (1.20)
------ ------ ------
Net asset value, end of period $18.27 $16.95 $15.51
------ ------ ------
Total return 16.07%^ 17.85% 21.76%
------ ------ ------
Ratios/supplemental data:
Net assets, end of period (millions) $ 32.6 $ 42.0 $ 35.3
------ ------ ------
Ratios to average net assets:++
Expenses 1.05%** 1.05%** 1.05%**
Net investment income (loss) 1.04% 0.97% 1.10%
------ ------ ------
*Commencement of operations.
**Includes the Fund's share of expenses allocated from the respective Portfolio.
If the fee waivers and expense reimbursements, with respect to the Fund and the
Portfolio, had not been made, the ratio of expenses to average net assets would
have been 1.68%, 1.41%, 1.43%, 1.72%, 2.32% and 2.87%, respectively.
***Includes the Fund's share of expenses allocated from the respective
Portfolio. If the fee waivers and expense reimbursements, with respect to the
Fund and the Portfolio, had not been made, the ratio of expenses to average net
assets would have been 3.46%, 4.06% and 9.97%, respectively.
^Not Annualized.
+Unaudited.
++Annualized for periods of less than one year.
See Notes to Financial Statements.
18
<PAGE>
<TABLE>
<CAPTION>
Balanced Fund A Growth Fund A
--------------------------------------------- ---------------------------------------------
Year Year Year Six Months Year Feb. 3, 1997*
ended ended ended ended ended through
Oct. 31, 1996 Oct. 31, 1995 Oct. 31, 1994 April 30, 1999+ Oct. 31, 1998 Oct. 31, 1997
------------- ------------- ------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
$13.24 $11.24 $11.48 $13.67 $11.44 $10.00
------ ------ ------ ------ ------ ------
0.14 0.15 0.15 (0.05) (0.07) (0.03)
1.34 2.00 (0.24) 3.30 2.30 1.47
------ ------ ------ ------ ------ ------
1.48 2.15 (0.09) 3.25 2.23 1.44
------ ------ ------ ------ ------ ------
(0.14) (0.15) (0.15) -- -- --
(0.67) -- -- -- -- --
------ ------ ------ ------ ------ ------
(0.81) (0.15) (0.15) -- -- --
------ ------ ------ ------ ------ ------
$13.91 $13.24 $11.24 16.92 $13.67 $11.44
====== ====== ====== ====== ====== ======
11.96% 19.35% (0.78%) 23.77%^ 19.49% 14.40%^
====== ====== ====== ====== ====== ======
$ 12.9 $ 12.5 $ 9.1 6.1 3.7 2.2
------ ------ ------ ------ ------ ------
1.05%** 1.05%** 1.05%** 1.35%*** 1.35%*** 1.35%***
1.05% 1.32% 1.37% (0.78%) (0.68%) (0.62%)
------ ------ ------ ------ ------ ------
</TABLE>
19
<PAGE>
- ----------------------------
Provident Investment Counsel FINANCIAL HIGHLIGHTS
Mutual Funds
- ----------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
================================================================================
Mid Cap Fund A
-------------------------------
Six Months Dec. 31, 1997*
ended through
April 30, 1999+ Oct. 31, 1998
--------------- -------------
Net asset value, beginning of period $10.53 $10.00
------ ------
Income from investment operations:
Net investment loss (0.06) (0.03)
Net realized and unrealized gain
(loss) on investments 3.29 0.56
------ ------
Total from investment operations 3.23 0.53
------ ------
Net asset value, end of period $13.76 $10.53
====== ======
Total return 30.67%^ 5.30%^
====== ======
Ratios/supplemental data:
Net assets, end of period (millions) $ 8.3 $ 5.7
------ ------
Ratios to average net assets:++
Expenses 1.39%= 1.04%=
Net investment loss (1.08%) (0.43%)
------ ------
*Commencement of operations.
=Includes the Fund's share of expenses allocated from the respective Portfolio.
If the fee waivers and expense reimbursements, with respect to the Fund and the
Portfolio, had not been made, the ratio of expenses to average net assets would
have been 2.88% and 3.08%, respectively.
#Includes the Fund's share of expenses allocated from the respective Portfolio.
If the fee waivers and expense reimbursements, with respect to the Fund and the
Portfolio, had not been made, the ratio of expenses to average net assets would
have been 7.91%, 4.32% and 11.55%, respectively.
^Not annualized.
+Unaudited.
++Annualized for periods of less than one year.
See Notes to Financial Statements.
20
<PAGE>
================================================================================
SMALL COMPANY
GROWTH FUND A
- --------------------------------------------------
Six Months Year Feb. 3, 1997*
ended ended through
April 30, 1999+ Oct. 31, 1998 Oct. 31, 1997
--------------- ------------- -------------
$8.50 $10.42 $10.00
----- ------ ------
(0.17) (0.12) (0.03)
1.60 (1.80) 0.45
----- ------ ------
1.43 (1.92) 0.42
----- ------ ------
$9.93 $8.50 $10.42
===== ===== ======
16.82%^ (18.43%) 4.20%^
===== ===== ======
$ 0.8 $ 2.7 $ 3.1
----- ------ ------
1.55%# 1.55%# 1.55%#
(1.32%) (1.23%) (1.14%)
----- ------ ------
21
<PAGE>
- ----------------------------
Provident Investment Counsel FINANCIAL HIGHLIGHTS
Mutual Funds
- ----------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
================================================================================
<TABLE>
<CAPTION>
SMALL
BALANCED GROWTH MID CAP COMPANY
FUND B FUND B FUND B GROWTH FUND B
- ----------------------------------------------------------------------------------------------------
Mar. 31, 1999* Mar. 31, 1999* Mar. 31, 1999* Mar. 31, 1999*
through through through through
Apr. 30, 1999 Apr. 30, 1999 Apr. 30, 1999 Apr. 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.89 $ 17.65 $13.03 $ 9.64
------- ------- ------ ------
Income from investment operations:
Net investment income (loss) 0.02 (0.01) -- --
Net realized and unrealized gain
(loss) on investments (0.50) (0.54) 0.50 0.22
------- ------- ------ ------
Total from investment operations (0.48) (0.55) 0.50 0.22
------- ------- ------ ------
Net asset value, end of period $ 18.41 $ 17.10 $13.53 $ 9.86
======= ======= ====== ======
Total return^ (2.54%) (3.12%) 3.84% 2.28%
======= ======= ====== ======
Ratios/supplemental data:
Net assets, end of period $ 975 $ 2,944 $5,266 $1,022
======= ======= ====== ======
Ratios to average net assets:+
Expenses 1.90% 2.10% 2.14% 2.30%
Net investment income (loss) 1.25% (0.71%) (0.61%) 0.00%
------- ------- ------ ------
</TABLE>
* Commencement of operations.
+ Includes the Funds' share of expenses allocated from the respective
Portfolios. If the fee waivers and expense reimbursements, with respect to the
Fund and the Portfolios, had not been made, the ratio of expenses to average net
assets would have been 129.16%, 73.80%, 63.18% and 128.84%, respectively.
^ Not annualized.
Unaudited. See Notes to Financial Statements.
22
<PAGE>
- ----------------------------
Provident Investment Counsel NOTES TO FINANCIAL STATEMENTS
Mutual Funds
- ----------------------------
================================================================================
1 - ORGANIZATION
- --------------------------------------------------------------------------------
PIC Investment Trust (the "Trust") was organized on December 11, 1991 as a
Delaware business trust, with an unlimited number of shares of beneficial
interest of $.01 par value, and is registered under the Investment Company Act
of 1940 (the "1940 Act") as an open-end, diversified management investment
company. The Trust currently offers eleven separate series: Provident Investment
Counsel Balanced Fund A (formerly known as Provident Investment Counsel Pinnacle
Balanced Fund), Provident Investment Counsel Balanced Fund B, Provident
Investment Counsel Growth Fund I (formerly known as Provident Investment Counsel
Growth Fund), Provident Investment Counsel Growth Fund A (formerly known as
Provident Investment Counsel Pinnacle Growth Fund), Provident Investment Counsel
Growth Fund B, Provident Investment Counsel Small Company Growth Fund I
(formerly known as Provident Investment Counsel Small Company Growth Fund)
Provident Investment Counsel Small Company Growth Fund A (formerly known as
Provident Investment Counsel Pinnacle Small Company Growth Fund), Provident
Investment Counsel Small Company Growth Fund B, Provident Investment Counsel
Small Cap Growth Fund I (formerly known as Provident Investment Counsel Small
Cap Growth Fund), Provident Investment Counsel Mid Cap Fund A (formerly known as
Provident Investment Counsel Pinnacle Mid Cap Fund), and Provident Investment
Counsel Mid Cap Fund B (each a "Fund" and collectively the "Funds") (prior to
June 1998, the Provident Investment Counsel Funds were known as the PIC 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 Provident Investment
Counsel Growth Fund I, Provident Investment Counsel Small Company Growth Fund I,
and Provident Investment Counsel Small Cap Growth Fund I are in separate
reports.
2 - SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles.
23
<PAGE>
- ----------------------------
Provident Investment Counsel NOTES TO FINANCIAL STATEMENTS,
Mutual Funds continued
- ----------------------------
- --------------------------------------------------------------------------------
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 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 Portfolio, daily on their
investments 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.
C. FEDERAL INCOME TAXES. The Funds intend to comply with the requirements
of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to their
shareholders. Therefore, no federal income tax provision is required.
D. ACCOUNTING ESTIMATES. In preparing financial statements in conformity
with generally accepted accounting principles, management makes
estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements, as well as
the reported amounts of revenues and expenses during the period.
Actual results could differ from those estimates.
3 - TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
The Trust has entered into administration agreements with Provident
Investment Counsel, Inc. ("PIC") and Investment Company Administration LLC
("ICA"), pursuant to which agreements certain employees of these entities serve
as officers and/or trustees of the Trust and the Portfolio. PIC and ICA 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.
PIC has voluntarily taken to limit the Funds' expenses, including those
expenses allocated from the Portfolios, to the following levels:
24
<PAGE>
- ----------------------------
Provident Investment Counsel NOTES TO FINANCIAL STATEMENTS,
Mutual Funds continued
- ----------------------------
- --------------------------------------------------------------------------------
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%
The percentages are based on the Funds' average daily net assets. Prior to
September 30, 1998, the expense limit for Pinnacle Mid Cap Fund was 0.99%. Fees
waived and expenses reimbursed by PIC for the six months ended April 30, 1999,
were as follows:
Waived Reimbursed
Fees Expenses
------ ----------
Provident Investment Counsel Balanced Fund A $35,978 $76,684
Provident Investment Counsel Growth Fund A 2,403 48,340
Provident Investment Counsel Mid Cap Fund A 7,113 45,189
Provident Investment Counsel Small
Company Growth Fund A 1,473 45,349
Provident Investment Counsel Balanced Fund B $0 $10,255
Provident Investment Counsel Growth Fund B 0 10,256
Provident Investment Counsel Mid Cap Fund B 0 10,256
Provident Investment Counsel Small
Company Growth Fund B 0 10,255
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
25
<PAGE>
- ----------------------------
Provident Investment Counsel NOTES TO FINANCIAL STATEMENTS,
Mutual Funds continued
- ----------------------------
- --------------------------------------------------------------------------------
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, 1999.
On December 19, 1995, the Trust approved a Deferred Compensation Plan for
Trustees (the "Plan"). Trustees are entitled to receive $2,500 per quarter and
$500 per meeting attended, which is allocated among the Funds. Trustees can
elect to receive payment in cash or defer payments provided for in the Plan. If
a trustee elects to defer payment, the Plan provides for the creation of a
deferred payment account (phantom share account). This account accumulates the
deferred fees earned and the value of the account is adjusted at the end of each
quarter to reflect a value which would have been earned if the account had been
invested in designated investments. The Funds recognize as trustee expense
amounts accrued as meetings are attended plus the change in the value of the
phantom share account determined on a quarterly basis.
4 - DISTRIBUTION PLAN
- --------------------------------------------------------------------------------
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
Fund will pay a fee to PIC (as the distribution coordinator) at an annual rate
of up to 0.25% of each A 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, 1999.
Additionally, the Trust, on behalf of the Balanced B, Growth B, Mid Cap B
and Small Company Growth B 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
for the payment of a distribution fee at the annual rate of 0.75% of each B
Fund's average daily net assets and a service fee at the annual rate of 0.25% of
each B Fund's average daily net assets.
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
26
<PAGE>
- ----------------------------
Provident Investment Counsel NOTES TO FINANCIAL STATEMENTS,
Mutual Funds continued
- ----------------------------
- --------------------------------------------------------------------------------
30, 1998), each A Fund pays the Advisor a monthly fee at an annual rate of 0.15%
of each Fund's average daily net assets as compensation for the provision of
shareholder services.
Additionally, pursuant to a Shareholder Services Plan, effective March 31,
1999, each B Fund pays the Advisor a monthly fee at an annual rate of 0.25% of
each Fund's average daily net assets as compensation for the provision of
shareholder services.
5 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
Additions and reductions in the investments in the respective Portfolios
for the six months ended April 30, 1999, were as follows:
Additions Reductions
--------- ----------
Provident Investment Counsel
Balanced Fund A $4,479,932 $20,000,853
Provident Investment Counsel Growth Fund A 2,011,607 413,823
Provident Investment Counsel Mid Cap Fund A 1,049,775 294,170
Provident Investment Counsel
Small Company Growth Fund A 563,134 2,892,691
Provident Investment Counsel Balanced Fund B $1,000 $0
Provident Investment Counsel Growth Fund B 3,000 0
Provident Investment Counsel Mid Cap Fund B 5,247 0
Provident Investment Counsel Small
Company Growth Fund B 1,000 0
As of April 30, 1999, the Funds owned the following percentages of the
Portfolios listed below:
Provident Investment Counsel
Balanced Fund A 99.6% of PIC Balanced Portfolio
Provident Investment Counsel
Growth Fund A 3.6% of PIC Growth Portfolio
Provident Investment Counsel
Mid Cap Fund A 99.3% of PIC Mid Cap Portfolio
Provident Investment Counsel
Small Company Growth Fund A 0.4% of PIC Small Cap Portfolio
27
<PAGE>
- ----------------------------
Provident Investment Counsel NOTES TO FINANCIAL STATEMENTS,
Mutual Funds continued
- ----------------------------
- --------------------------------------------------------------------------------
Provident Investment Counsel
Balanced Fund B 0.0*% of PIC Balanced Portfolio
Provident Investment Counsel
Growth Fund B 0.0*% of PIC Growth Portfolio
Provident Investment Counsel
Mid Cap Fund B 0.1% of PIC Mid Cap Portfolio
Provident Investment Counsel
Small Company Growth Fund B 0.0*% of PIC Small Cap Portfolio
* Less than 0.1%.
28
<PAGE>
- ---------
P*I*C STATEMENT OF NET ASSETS
BALANCED as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES - 69.03% Shares Value Net Assets
================================================================================
BANKS - 1.54%
- --------------------------------------------------------------------------------
FIRSTAR CORPORATION 3,900 $ 117,244 0.36%
PROVIDIAN FINANCIAL CORPORATION 3,000 387,188 1.18
- --------------------------------------------------------------------------------
TOTAL BANKS 504,432 1.54
================================================================================
BUILDING PRODUCTS - 2.79%
- --------------------------------------------------------------------------------
THE HOME DEPOT, INC. 5,300 317,669 0.97
LOWE'S COMPANIES, INC. 11,300 596,075 1.82
- --------------------------------------------------------------------------------
TOTAL BUILDING PRODUCTS 913,744 2.79
================================================================================
BUSINESS INFORMATION SERVICES - 2.04%
- --------------------------------------------------------------------------------
AUTOMATIC DATA PROCESSING 3,100 137,950 0.42
PAYCHEX, INC. 10,412 531,663 1.62
- --------------------------------------------------------------------------------
TOTAL BUSINESS INFORMATION SERVICES 669,613 2.04
================================================================================
COMPUTER SERVICES - 0.80%
- --------------------------------------------------------------------------------
SUN MICROSYSTEMS, INC.* 4,400 263,175 0.80
================================================================================
COMPUTER SOFTWARE - 5.25%
- --------------------------------------------------------------------------------
BMC SOFTWARE, INC.* 3,500 150,719 0.46
MICROSOFT CORPORATION* 19,272 1,567,054 4.79
- --------------------------------------------------------------------------------
TOTAL COMPUTER SOFTWARE 1,717,773 5.25
================================================================================
COSMETICS AND SOAPS - 0.70%
- --------------------------------------------------------------------------------
THE CLOROX COMPANY 2,000 230,750 0.70
================================================================================
CREDIT AND FINANCE - 2.34%
- --------------------------------------------------------------------------------
ASSOCIATES FIRST CAPITAL CORPORATION 5,400 239,288 0.73
MBNA CORPORATION 18,698 527,050 1.61
- --------------------------------------------------------------------------------
TOTAL CREDIT AND FINANCE 766,338 2.34
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
29
<PAGE>
- ---------
P*I*C STATEMENT OF NET ASSETS
BALANCED as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
DISCOUNT STORES - 1.53%
- --------------------------------------------------------------------------------
COSTCO COMPANIES, INC. 6,200 $ 501,812 1.53%
================================================================================
DIVERSIFIED - 3.72%
- --------------------------------------------------------------------------------
TYCO INTERNATIONAL LTD. 15,000 1,218,750 3.72
================================================================================
DRUGS - 11.96%
- --------------------------------------------------------------------------------
PFIZER, INC. 8,900 1,024,056 3.13
SCHERING-PLOUGH CORPORATION 15,400 744,012 2.27
WARNER-LAMBERT COMPANY 31,600 2,146,825 6.56
- --------------------------------------------------------------------------------
TOTAL DRUGS 3,914,893 11.96
================================================================================
ELECTRICAL EQUIPMENT/PERIPHERALS - 2.20%
- --------------------------------------------------------------------------------
DELL COMPUTER CORPORATION* 8,200 337,738 1.03
EMC CORPORATION* 3,500 381,281 1.17
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL EQUIPMENT/PERIPHERALS 719,019 2.20
================================================================================
ELECTRONIC EQUIPMENT/SEMICONDUCTORS - 2.17%
- --------------------------------------------------------------------------------
LINEAR TECHNOLOGY CORPORATION 5,800 329,875 1.01
SOLECTRON CORPORATION* 7,800 378,300 1.16
- --------------------------------------------------------------------------------
TOTAL ELECTRONIC EQUIPMENT/SEMICONDUCTORS 708,175 2.17
================================================================================
ELECTRONICS - 0.73%
- --------------------------------------------------------------------------------
MOTOROLA, INC. 3,000 240,375 0.73
================================================================================
ENTERTAINMENT AND LEISURE - 1.39%
- --------------------------------------------------------------------------------
CLEAR CHANNEL COMMUNICATIONS, INC.* 3,200 222,400 0.68
INFINITY BROADCASTING CORPORATION* 8,400 232,575 0.71
- --------------------------------------------------------------------------------
TOTAL ENTERTAINMENT AND LEISURE 454,975 1.39
================================================================================
FINANCIAL - 0.76%
- --------------------------------------------------------------------------------
CITIGROUP INC. 3,300 248,325 0.76
Unaudited. See Notes to Financial Statements.
30
<PAGE>
- ---------
P*I*C STATEMENT OF NET ASSETS
BALANCED as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
INSURANCE - 1.80%
- --------------------------------------------------------------------------------
AMERICAN INTERNATIONAL GROUP, INC. 5,014 $ 588,832 1.80%
================================================================================
INTERNET SERVICES - 3.49%
- --------------------------------------------------------------------------------
AMERICA ONLINE, INC.* 8,000 1,142,000 3.49
================================================================================
MEDICAL INSTRUMENTS - 1.45%
- --------------------------------------------------------------------------------
MEDTRONIC, INC. 6,600 474,787 1.45
================================================================================
MEDICAL/DENTAL PRODUCTS - 0.35%
- --------------------------------------------------------------------------------
CARDINAL HEALTH, INC. 1,900 113,644 0.35
================================================================================
MORTGAGE AND RELATED SERVICES - 2.08%
- --------------------------------------------------------------------------------
FANNIE MAE 4,460 316,381 0.97
FREDDIE MAC 5,800 363,950 1.11
- --------------------------------------------------------------------------------
TOTAL MORTGAGE AND RELATED SERVICES 680,331 2.08
================================================================================
NATURAL GAS PRODUCTS AND PIPELINES - 0.83%
- --------------------------------------------------------------------------------
ENRON CORP. 3,600 270,900 0.83
================================================================================
NETWORKING - 1.12%
- --------------------------------------------------------------------------------
CISCO SYSTEMS, INC.* 3,200 365,000 1.12
================================================================================
OFFICE EQUIPMENT AND SUPPLIES - 0.28%
- --------------------------------------------------------------------------------
STAPLES, INC.* 3,000 90,000 0.28
================================================================================
SPECIALTY RETAIL - 4.58%
- --------------------------------------------------------------------------------
BED BATH & BEYOND INC.* 10,400 371,150 1.13
CVS CORPORATION 9,500 452,438 1.38
KOHL'S CORPORATION* 10,200 677,662 2.07
- --------------------------------------------------------------------------------
TOTAL SPECIALTY RETAIL 1,501,250 4.58
Unaudited. See Notes to Financial Statements.
31
<PAGE>
- ---------
P*I*C STATEMENT OF NET ASSETS
BALANCED as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
SUPERMARKETS - 3.09%
- --------------------------------------------------------------------------------
KROGER CO. 7,000 $ 380,187 1.16%
SAFEWAY INC.* 11,700 631,069 1.93
- --------------------------------------------------------------------------------
TOTAL SUPERMARKETS 1,011,256 3.09
================================================================================
TELECOMMUNICATIONS - 5.07%
- --------------------------------------------------------------------------------
LUCENT TECHNOLOGIES INC. 9,900 595,237 1.82
NOKIA CORPORATION, CLASS A, ADR 9,600 712,200 2.18
TELLABS, INC.* 3,200 350,600 1.07
================================================================================
TOTAL TELECOMMUNICATIONS 1,658,037 5.07
- --------------------------------------------------------------------------------
TELEPHONE - 4.09%
- --------------------------------------------------------------------------------
ALLTEL CORPORATION 5,700 384,394 1.17
MCI WORLDCOM INCORPORATED* 11,616 954,690 2.92
- --------------------------------------------------------------------------------
TOTAL TELEPHONE 1,339,084 4.09
================================================================================
WIRELESS SERVICES - 0.88%
- --------------------------------------------------------------------------------
AIRTOUCH COMMUNICATIONS, INC.* 3,100 289,462 0.88
- --------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES (COST $15,878,935) 22,596,732 69.03
================================================================================
FIXED INCOME Principal Percentage of
SECURITIES - 26.69% Amount Value Net Assets
================================================================================
CMOS AND ASSET-BACKED SECURITIES - 3.56%
- --------------------------------------------------------------------------------
EMPIRE FUNDING HOME LOAN OWNER
TRUST, 5.708%, 5/25/2008 127,586 127,347 0.39
FIRST PLUS HOME LOAN TRUST, ADJ.
RATE-4.938%, 3/10/2008 165,984 165,621 0.51
Unaudited. See Notes to Financial Statements.
32
<PAGE>
- ---------
P*I*C STATEMENT OF NET ASSETS
BALANCED as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
FIXED INCOME Principal Percentage of
SECURITIES, continued Amount Value Net Assets
================================================================================
CMOS AND ASSET-BACKED SECURITIES, CONTINUED
- --------------------------------------------------------------------------------
FIRST PLUS HOME LOAN TRUST, ADJ.
RATE-4.490%, 2/10/2009 474,048 $ 472,270 1.44%
NORTHWEST AIRLINES CORPORATION PASS
THROUGH CERTIFICATES, 7.67%, 1/2/2015 383,461 400,540 1.22
- --------------------------------------------------------------------------------
TOTAL CMOS AND ASSET-BACKED SECURITIES 1,165,778 3.56
================================================================================
CORPORATE BONDS - 9.39%
- --------------------------------------------------------------------------------
ASSOCIATES CORPORATION OF NORTH
AMERICA, 6.375%, 8/15/2000 425,000 429,483 1.31
AT&T CAPITAL CORPORATION, MEDIUM
TERM NOTES, 6.49%, 5/17/1999 1,000,000 1,000,322 3.06
BANCO LATINOAMERICANO DE
EXPORTACIONES SA, FLOATING
RATE NOTES, 5.126%, 5/13/1999 200,000 199,800 0.61
FORD MOTOR CREDIT COMPANY,
7.25%, 5/15/1999 275,000 275,165 0.84
HANSON PLC, 7.375%, 1/15/2003 375,000 390,469 1.19
HERTZ CORPORATION, 6.00%, 1/15/2003 100,000 98,875 0.30
HOUSEHOLD BANK, F.S.B., 6.50%, 7/15/2003 300,000 307,500 0.94
THE PROGRESSIVE CORPORATION,
10.125%, 12/15/2000 350,000 371,594 1.14
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS 3,073,208 9.39
================================================================================
FINANCE BONDS - 4.26%
- --------------------------------------------------------------------------------
HOUSEHOLD FINANCE CORPORATION,
5.875%, 9/25/2004 100,000 99,125 0.30
MERRILL LYNCH & CO., INC.,
6.875%, 11/15/2018 725,000 719,563 2.20
Unaudited. See Notes to Financial Statements.
33
<PAGE>
- ---------
P*I*C STATEMENT OF NET ASSETS
BALANCED as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
FIXED INCOME Principal Percentage of
SECURITIES, continued Amount Value Net Assets
================================================================================
FINANCE BONDS
- --------------------------------------------------------------------------------
MORGAN STANLEY GROUP INC.,
SENIOR NOTES, 6.875%, 3/1/2007 270,000 $ 277,088 0.85%
PAINE WEBBER GROUP INC.,
6.45%, 12/1/2003 300,000 298,500 0.91
- --------------------------------------------------------------------------------
TOTAL FINANCE BONDS 1,394,276 4.26
================================================================================
INDUSTRIAL BONDS - 5.27%
- --------------------------------------------------------------------------------
FORD MOTOR COMPANY,
6.375%, 2/1/2029 575,000 534,750 1.63
INTERNATIONAL BUSINESS MACHINES
CORPORATION, 5.375%, 2/1/2009 200,000 189,750 0.58
PDVSA FINANCE LTD.,
8.75%, 2/15/2004 700,000 711,375 2.17
TYCO INTERNATIONAL GROUP
S.A., 6.875%, 1/15/2029 300,000 292,500 0.89
- --------------------------------------------------------------------------------
TOTAL INDUSTRIAL BONDS 1,728,375 5.27
================================================================================
U.S. TREASURY OBLIGATIONS - 4.21%
- --------------------------------------------------------------------------------
U.S. TREASURY NOTE, 5.50%, 3/31/2000 20,000 20,115 0.06
U.S. TREASURY NOTE, 6.25%, 2/2/2002 600,000 616,783 1.89
U.S. TREASURY NOTE, 5.25%, 11/15/2028 800,000 740,258 2.26
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS 1,377,156 4.21
- --------------------------------------------------------------------------------
TOTAL FIXED INCOME SECURITIES
(COST - $8,808,817) 8,738,793 26.69
Unaudited. See Notes to Financial Statements.
34
<PAGE>
- ---------
P*I*C STATEMENT OF NET ASSETS
BALANCED as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Principal Percentage of
MONEY MARKET FUNDS - 2.38% Amount Value Net Assets
================================================================================
TEMPORARY INVESTMENT FUND,
INC. - TEMPCASH 390,827 $ 390,827 1.19%
TEMPORARY INVESTMENT FUND,
INC. - TEMPFUND 390,827 390,827 1.19
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUNDS
(COST $781,654) 781,654 2.38
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $25,469,406) 32,117,179 98.11
================================================================================
OTHER ASSETS - 2.80%
- --------------------------------------------------------------------------------
RECEIVABLES:
DIVIDENDS 5,183
INTEREST 155,434
INVESTMENT SECURITIES SOLD 738,233
SHARES OF BENEFICIAL INTEREST SOLD 14,135
OTHER ASSETS 2,051
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS 915,036 2.80
- --------------------------------------------------------------------------------
================================================================================
TOTAL ASSETS 33,032,215 100.90
- --------------------------------------------------------------------------------
LIABILITIES - (0.90%)
- --------------------------------------------------------------------------------
PAYABLE FOR INVESTMENT SECURITIES PURCHASED 247,497
ACCRUED EXPENSES 42,784
DEFERRED TRUSTEE COMPENSATION 5,413
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 295,694 (0.90)
================================================================================
NET ASSETS - 100.00% $32,736,521 100.00%
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
35
<PAGE>
- ---------
P*I*C
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES - 92.10% Shares Value Net Assets
================================================================================
BANKS - 2.11%
- --------------------------------------------------------------------------------
FIRSTAR CORPORATION 29,400 $ 883,837 0.52%
PROVIDIAN FINANCIAL CORPORATION 21,200 2,736,125 1.59
- --------------------------------------------------------------------------------
TOTAL BANKS 3,619,962 2.11
================================================================================
BUILDING PRODUCTS - 4.10%
- --------------------------------------------------------------------------------
THE HOME DEPOT, INC. 39,700 2,379,519 1.39
LOWE'S COMPANIES, INC. 88,300 4,657,825 2.71
- --------------------------------------------------------------------------------
TOTAL BUILDING PRODUCTS 7,037,344 4.10
================================================================================
BUSINESS INFORMATION SERVICES - 2.75%
- --------------------------------------------------------------------------------
AUTOMATIC DATA PROCESSING 21,000 934,500 0.54
PAYCHEX, INC. 74,226 3,790,165 2.21
- --------------------------------------------------------------------------------
TOTAL BUSINESS INFORMATION SERVICES 4,724,665 2.75
================================================================================
COMPUTER SOFTWARE - 7.78%
- --------------------------------------------------------------------------------
BMC SOFTWARE, INC.* 26,200 1,128,237 0.66
MICROSOFT CORPORATION* 150,324 12,223,220 7.12
- --------------------------------------------------------------------------------
TOTAL COMPUTER SOFTWARE 13,351,457 7.78
================================================================================
COMPUTER SERVICES - 1.06%
- --------------------------------------------------------------------------------
SUN MICROSYSTEMS, INC.* 30,500 1,824,281 1.06
- --------------------------------------------------------------------------------
COSMETICS AND SOAPS - 0.94%
- --------------------------------------------------------------------------------
THE CLOROX COMPANY 14,000 1,615,250 0.94
================================================================================
CREDIT AND FINANCE - 3.42%
- --------------------------------------------------------------------------------
ASSOCIATES FIRST CAPITAL CORPORATION 41,060 1,819,471 1.06
MBNA CORPORATION 143,816 4,053,813 2.36
- --------------------------------------------------------------------------------
TOTAL CREDIT AND FINANCE 5,873,284 3.42
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
37
<PAGE>
- ---------
P*I*C
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
DISCOUNT STORES - 2.19%
- --------------------------------------------------------------------------------
COSTCO COMPANIES, INC.* 46,500 $ 3,763,594 2.19%
================================================================================
DIVERSIFIED - 5.10%
- --------------------------------------------------------------------------------
TYCO INTERNATIONAL LTD. 107,780 8,757,125 5.10
================================================================================
DRUGS - 12.26%
- --------------------------------------------------------------------------------
ELAN CORPORATION, PLC ADR* 42,657 2,196,836 1.28
PFIZER, INC. 61,884 7,120,528 4.15
SCHERING-PLOUGH CORPORATION 108,200 5,227,412 3.05
WARNER-LAMBERT COMPANY 95,600 6,494,825 3.78
- --------------------------------------------------------------------------------
TOTAL DRUGS 21,039,601 12.26
================================================================================
ELECTRICAL EQUIPMENT/PERIPHERALS - 3.01%
- --------------------------------------------------------------------------------
DELL COMPUTER CORPORATION* 58,500 2,409,469 1.40
EMC CORPORATION 25,200 2,745,225 1.61
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL EQUIPMENT/PERIPHERALS 5,154,694 3.01
================================================================================
ELECTRONIC EQUIPMENT/SEMICONDUCTORS - 3.01%
- --------------------------------------------------------------------------------
LINEAR TECHNOLOGY CORPORATION 43,800 2,491,125 1.45
SOLECTRON CORPORATION* 55,200 2,677,200 1.56
- --------------------------------------------------------------------------------
TOTAL ELECTRONIC EQUIPMENT/SEMICONDUCTORS 5,168,325 3.01
================================================================================
ELECTRONICS - 1.08%
- --------------------------------------------------------------------------------
MOTOROLA, INC. 23,200 1,858,900 1.08
================================================================================
ENTERTAINMENT AND LEISURE - 1.89%
- --------------------------------------------------------------------------------
CLEAR CHANNEL COMMUNICATIONS, INC.* 22,600 1,570,700 0.92
INFINITY BROADCASTING CORPORATION* 60,000 1,661,250 0.97
- --------------------------------------------------------------------------------
TOTAL ENTERTAINMENT AND LEISURE 3,231,950 1.89
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
37
<PAGE>
- ---------
P*I*C
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
FINANCIAL - 1.04%
- --------------------------------------------------------------------------------
CITIGROUP INC. 23,600 $ 1,775,900 1.04%
================================================================================
INSURANCE - 2.43%
- --------------------------------------------------------------------------------
AMERICAN INTERNATIONAL GROUP, INC. 35,552 4,175,138 2.43
================================================================================
INTERNET SERVICES - 4.69%
- --------------------------------------------------------------------------------
AMERICA ONLINE, INC.* 56,400 8,051,100 4.69
================================================================================
MEDICAL INSTRUMENTS - 1.96%
- --------------------------------------------------------------------------------
MEDTRONIC, INC. 46,804 3,366,963 1.96
================================================================================
MEDICAL/DENTAL PRODUCTS - 0.47%
- --------------------------------------------------------------------------------
CARDINAL HEALTH, INC. 13,550 810,459 0.47
================================================================================
MORTGAGE AND RELATED SERVICES - 2.77%
- --------------------------------------------------------------------------------
FANNIE MAE 31,219 2,214,598 1.29
FREDDIE MAC 40,400 2,535,100 1.48
- --------------------------------------------------------------------------------
TOTAL MORTGAGE AND RELATED SERVICES 4,749,698 2.77
================================================================================
NATURAL GAS PRODUCTS AND PIPELINES - 0.98%
- --------------------------------------------------------------------------------
ENRON CORP. 22,400 1,685,600 0.98
================================================================================
NETWORKING - 1.52%
- --------------------------------------------------------------------------------
CISCO SYSTEMS, INC.* 22,800 2,600,625 1.52
================================================================================
OFFICE EQUIPMENT AND SUPPLIES - 0.45%
- --------------------------------------------------------------------------------
STAPLES, INC.* 25,700 771,000 0.45
================================================================================
SPECIALTY RETAIL - 6.60%
- --------------------------------------------------------------------------------
BED BATH & BEYOND INC.* 78,500 2,801,469 1.63
CVS CORPORATION 72,400 3,448,050 2.01
KOHL'S CORPORATION* 76,358 5,073,035 2.96
- --------------------------------------------------------------------------------
TOTAL SPECIALTY RETAIL 11,322,554 6.60
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
38
<PAGE>
- ---------
P*I*C
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
SUPERMARKETS - 4.46%
- --------------------------------------------------------------------------------
KROGER CO. 52,300 $ 2,840,544 1.66%
SAFEWAY INC.* 89,250 4,813,922 2.80
- --------------------------------------------------------------------------------
TOTAL SUPERMARKETS 7,654,466 4.46
================================================================================
TELECOMMUNICATIONS - 6.82%
- --------------------------------------------------------------------------------
LUCENT TECHNOLOGIES INC. 71,400 4,292,925 2.50
NOKIA CORPORATION, CLASS A, ADR 65,700 4,874,119 2.84
TELLABS, INC.* 23,200 2,541,850 1.48
- --------------------------------------------------------------------------------
TOTAL TELECOMMUNICATIONS 11,708,894 6.82
================================================================================
TELEPHONE - 5.94%
- --------------------------------------------------------------------------------
ALLTEL CORPORATION 43,000 2,899,812 1.69
MCI WORLDCOM INCORPORATED* 88,650 7,285,922 4.25
- --------------------------------------------------------------------------------
TOTAL TELEPHONE 10,185,734 5.94
================================================================================
WIRELESS SERVICES - 1.27%
- --------------------------------------------------------------------------------
AIRTOUCH COMMUNICATIONS, INC.* 23,300 2,175,638 1.27
- --------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES (COST $102,749,274) 158,054,201 92.10
================================================================================
MONEY MARKET FUNDS - 6.99%
- --------------------------------------------------------------------------------
TEMPORARY INVESTMENT
FUND, INC. - TEMPCASH 5,999,526 5,999,526
TEMPORARY INVESTMENT
FUND, INC. - TEMPFUND 5,999,526 5,999,526
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUNDS
(COST $11,999,052) 11,999,052 6.99
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $114,748,326) 170,053,253 99.09
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
39
<PAGE>
- ---------
P*I*C
- ---------
GROWTH STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
OTHER ASSETS - 2.06% Value Net Assets
================================================================================
OTHER ASSETS - 2.06%
- --------------------------------------------------------------------------------
RECEIVABLES:
DIVIDENDS AND INTEREST $ 72,194
INVESTMENT SECURITIES SOLD 3,415,111
SHARES OF BENEFICIAL INTEREST SOLD 16,509
OTHER ASSETS 26,813
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS 3,530,627 2.06%
================================================================================
TOTAL ASSETS 173,583,880 101.15
- --------------------------------------------------------------------------------
================================================================================
LIABILITIES - (1.15%)
- --------------------------------------------------------------------------------
PAYABLE FOR INVESTMENT SECURITIES PURCHASED 1,767,503
ACCRUED EXPENSES 197,838
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 1,965,341 (1.15)
================================================================================
NET ASSETS - 100.00% $171,618,539 100.00%
- --------------------------------------------------------------------------------
*NON-INCOME PRODUCING SECURITY.
Unaudited. See Notes to Financial Statements.
40
<PAGE>
- ---------
P*I*C
- ---------
MID CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES - 97.07% Shares Value Net Assets
================================================================================
APPAREL & SHOE - 1.02%
- --------------------------------------------------------------------------------
ABERCROMBIE & FITCH CO.* 900 $ 85,613 1.02%
================================================================================
AUTOMOBILES - 1.49%
- --------------------------------------------------------------------------------
HARLEY-DAVIDSON, INC. 2,100 125,213 1.49
================================================================================
BANKS - 1.73%
- --------------------------------------------------------------------------------
ZIONS BANCORPORATION 2,175 145,045 1.73
================================================================================
BUSINESS INFORMATION SERVICES - 1.63%
- --------------------------------------------------------------------------------
PAYCHEX, INC. 2,675 136,592 1.63
================================================================================
COMPUTER SERVICES - 7.50%
- --------------------------------------------------------------------------------
AMDOCS LIMITED* 5,275 141,766 1.69
CERIDIAN CORP.* 3,200 117,200 1.39
UNISYS CORPORATION* 7,200 226,350 2.70
FISERV, INC.* 2,475 144,942 1.72
- --------------------------------------------------------------------------------
TOTAL COMPUTER SERVICES 630,258 7.50
================================================================================
COMPUTER SOFTWARE - 4.75%
- --------------------------------------------------------------------------------
GEMSTAR INTERNATIONAL GROUP LIMITED* 1,300 136,988 1.63
SYNOPSYS, INC.* 3,250 153,156 1.82
ELECTRONICS FOR IMAGING, INC.* 2,300 108,819 1.30
- --------------------------------------------------------------------------------
TOTAL COMPUTER SOFTWARE 398,963 4.75
================================================================================
DISCOUNT - 1.30%
- --------------------------------------------------------------------------------
DOLLAR TREE STORES, INC.* 3,000 109,500 1.30
================================================================================
DIVERSIFIED - 1.01%
- --------------------------------------------------------------------------------
SEALED AIR CORPORATION* 1,400 85,138 1.01
Unaudited. See Notes to Financial Statements.
41
<PAGE>
- ---------
P*I*C
- ---------
MID CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
DRUGS - 2.44%
- --------------------------------------------------------------------------------
FOREST LABORATORIES, INC.* 2,125 $ 94,563 1.13%
WATSON PHARMACEUTICALS, INC.* 2,725 110,363 1.31
- --------------------------------------------------------------------------------
TOTAL DRUGS 204,926 2.44
================================================================================
ELECTRIC COMPONENTS / SEMICONDUCTOR - 7.95%
- --------------------------------------------------------------------------------
TERADYNE, INC.* 2,950 139,203 1.66
JABIL CIRCUIT, INC.* 3,525 164,133 1.95
ALTERA CORPORATION* 3,225 233,006 2.77
ASM LITHOGRAPHY HOLDING N.V., ADR* 3,375 131,625 1.57
- --------------------------------------------------------------------------------
TOTAL ELECTRIC COMPONENTS / SEMICONDUCTOR 667,967 7.95
================================================================================
ELECTRIC POWER - 2.77%
- --------------------------------------------------------------------------------
THE MONTANA POWER COMPANY 3,125 233,004 2.77
================================================================================
ELECTRICAL EQUIPMENT/PERIPHERAL - 4.05%
- --------------------------------------------------------------------------------
WATERS CORPORATION* 1,625 170,828 2.03
LEXMARK INTERNATIONAL GROUP, INC.* 1,375 169,813 2.02
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL EQUIPMENT/PERIPHERAL 340,641 4.05
================================================================================
ELECTRONICS - 1.12%
- --------------------------------------------------------------------------------
MAXIM INTEGRATED PRODUCTS, INC* 1,675 93,800 1.12
================================================================================
ENTERTAINMENT & LEISURE - 8.72%
- --------------------------------------------------------------------------------
ADELPHIA COMMUNICATIONS CORPORATION* 3,425 233,756 2.78
SFX ENTERTAINMENT, INC.* 1,950 120,413 1.43
CLEAR CHANNEL COMMUNICATIONS, INC.* 3,300 229,350 2.73
CHANCELLOR MEDIA CORPORATION* 2,725 149,534 1.78
- --------------------------------------------------------------------------------
TOTAL ENTERTAINMENT & LEISURE 733,053 8.72
Unaudited. See Notes to Financial Statements.
42
<PAGE>
- ---------
P*I*C
- ---------
MID CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
FINANCIAL SERVICES - 3.80%
- --------------------------------------------------------------------------------
CAPITAL ONE FINANCIAL CORPORATION 1,275 $ 221,452 2.64%
CONCORD EFS, INC.* 3,375 112,641 1.34
METRIS COMPANIES INC. 3,375 206,297 2.46
- --------------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 540,390 6.44
================================================================================
FOOD & RESTAURANTS - 4.44%
- --------------------------------------------------------------------------------
THE CHEESECAKE FACTORY INCORPORATED* 2,475 69,300 0.83
BRINKER INTERNATIONAL, INC.* 7,450 205,806 2.45
RUBY TUESDAY, INC. 5,350 97,638 1.16
- --------------------------------------------------------------------------------
TOTAL FOOD & RESTAURANTS 372,744 4.44
================================================================================
HOME FURNISHINGS - 1.13%
- --------------------------------------------------------------------------------
LINENS `N THINGS, INC.* 2,070 94,703 1.13
================================================================================
INSURANCE - 1.57%
- --------------------------------------------------------------------------------
REINSURANCE GROUP OF AMERICA, INCORPORATED* 2,475 105,806 1.26
REINSURANCE GROUP OF AMERICA, INCORPORATED,
NON-VOTING* 862 26,076 0.31
- --------------------------------------------------------------------------------
TOTAL INSURANCE 131,882 1.57
================================================================================
INTERNET SERVICES - 4.56%
- --------------------------------------------------------------------------------
BROADCAST.COM INC.* 375 48,094 0.57
REALNETWORKS, INC.* 450 99,675 1.19
DOUBLECLICK INC.* 650 90,878 1.08
INTUIT INC.* 1,675 144,259 1.72
- --------------------------------------------------------------------------------
TOTAL INTERNET SERVICES 382,906 4.56
================================================================================
MEDICAL INSTRUMENTS - 1.61%
- --------------------------------------------------------------------------------
VISX, INCORPORATED* 1,050 135,188 1.61
Unaudited. See Notes to Financial Statements.
43
<PAGE>
- ---------
P*I*C
- ---------
MID CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
MEDICAL & DENTAL PRODUCTS - 1.82%
- --------------------------------------------------------------------------------
ALLERGAN, INC. 1,700 $ 152,788 1.82%
================================================================================
METAL PRODUCTS - 1.90%
- --------------------------------------------------------------------------------
BALL CORPORATION 2,900 159,319 1.90
================================================================================
MISCELLANEOUS - 1.96%
- --------------------------------------------------------------------------------
THE AES CORPORATION* 3,300 165,000 1.96
================================================================================
NETWORKING -1.51%
- --------------------------------------------------------------------------------
NETWORK APPLIANCE, INC.* 2,525 127,039 1.51
================================================================================
OFFICE EQUIPMENT & SUPPLIES - 1.55%
- --------------------------------------------------------------------------------
OFFICE DEPOT, INC.* 5,925 130,350 1.55
================================================================================
OFFSHORE DRILLING - 1.64%
- --------------------------------------------------------------------------------
TRANSOCEAN OFFSHORE INC. 4,650 138,047 1.64
================================================================================
OIL FIELD SERVICES - 3.48%
- --------------------------------------------------------------------------------
BAKER HUGHES INCORPORATED 3,275 97,841 1.16
ENSCO INTERNATIONAL INCORPORATED* 10,475 194,442 2.32
- --------------------------------------------------------------------------------
TOTAL OIL FIELD SERVICES 292,283 3.48
================================================================================
POLLUTION CONTROL - 2.09%
- --------------------------------------------------------------------------------
TETRA TECH, INC.* 7,250 175,359 2.09
================================================================================
PUBLISHING/ADVERTISING - 1.47%
- --------------------------------------------------------------------------------
OUTDOOR SYSTEMS, INC.* 4,900 123,419 1.47
Unaudited. See Notes to Financial Statements.
44
<PAGE>
- ---------
P*I*C
- ---------
MID CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
SPECIALTY RETAIL - 6.15%
- --------------------------------------------------------------------------------
TIFFANY & CO. 2,025 $ 170,100 2.02%
TANDY CORPORATION 2,650 191,959 2.29
BED BATH & BEYOND INC.* 4,325 154,348 1.84
- --------------------------------------------------------------------------------
TOTAL SPECIALTY RETAIL 516,407 6.15
================================================================================
TELECOMMUNICATIONS - 4.65%
- --------------------------------------------------------------------------------
COMVERSE TECHNOLOGY, INC.* 2,250 144,281 1.72
GLOBAL TELESYSTEMS GROUP, INC.* 1,925 127,291 1.51
ADC TELECOMMUNICATIONS, INC.* 2,500 119,531 1.42
- --------------------------------------------------------------------------------
TOTAL TELECOMMUNICATIONS 391,103 4.65
================================================================================
TEXTILES & SHOES - 1.64%
- --------------------------------------------------------------------------------
TOMMY HILFIGER CORPORATION* 1,975 138,003 1.64
- --------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES (COST $6,641,684) 8,156,643 97.07
================================================================================
MONEY MARKET FUNDS - 4.46%
- --------------------------------------------------------------------------------
SWIP TEMP FUND 187,745 187,745 2.23
TEMP CASH 187,745 187,745 2.23
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUNDS (COST $375,490) 375,490 4.46
================================================================================
TOTAL INVESTMENTS (COST $7,017,174) 8,532,133 101.53
- --------------------------------------------------------------------------------
Unaudited. See Notes to Financial Statements.
45
<PAGE>
- ---------
P*I*C
- ---------
MID CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
OTHER ASSETS - 0.12% Value Net Assets
================================================================================
RECEIVABLES:
DUE FROM ADVISOR $ 7,112
DIVIDENDS 1,491
INTEREST 1,022
OTHER ASSETS 41
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS 9,666 0.12%
================================================================================
TOTAL ASSETS 8,541,799 101.65
- --------------------------------------------------------------------------------
================================================================================
LIABILITIES - (1.65%)
- --------------------------------------------------------------------------------
PAYABLE FOR INVESTMENT SECURITIES PURCHASED 104,136
ACCRUED EXPENSES 34,533
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 138,669 (1.65)
================================================================================
NET ASSETS - 100% $8,403,130 100.00%
- --------------------------------------------------------------------------------
*NON-INCOME PRODUCING SECURITY.
Unaudited. See Notes to Financial Statements.
46
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES - 96.50% Shares Value Net Assets
================================================================================
AIRLINES - 0.54%
- --------------------------------------------------------------------------------
RYANAIR HOLDINGS PLC ADS* 26,970 $1,206,908 0.54%
================================================================================
APPAREL AND SHOE - 0.29%
- --------------------------------------------------------------------------------
THE BUCKLE, INC.* 27,600 645,150 0.29
================================================================================
AUTO PARTS - 2.07%
- --------------------------------------------------------------------------------
GENTEX CORPORATION* 118,800 3,571,425 1.60
O'REILLY AUTOMOTIVE, INC.* 22,900 1,047,675 0.47
- --------------------------------------------------------------------------------
TOTAL AUTO PARTS 4,619,100 2.07
================================================================================
BANKS - 1.07%
- --------------------------------------------------------------------------------
HAMILTON BANCORP INC.* 92,630 2,385,222 1.07
================================================================================
BEVERAGE/FOOD - 0.50%
- --------------------------------------------------------------------------------
BERINGER WINE ESTATES HOLDINGS, INC.* 28,200 1,110,375 0.50
================================================================================
BIOTECHNOLOGY - 0.62%
- --------------------------------------------------------------------------------
ALBANY MOLECULAR RESEARCH, INC.* 27,100 677,500 0.30
INVITROGEN CORPORATION* 40,000 717,500 0.32
- --------------------------------------------------------------------------------
TOTAL BIOTECHNOLOGY 1,395,000 0.62
================================================================================
BUILDER - 0.37%
- --------------------------------------------------------------------------------
PALM HARBOR HOMES, INC.* 41,348 832,128 0.37
================================================================================
BUILDING PRODUCTS - 0.24%
- --------------------------------------------------------------------------------
TREX COMPANY, INC.* 33,600 537,600 0.24
================================================================================
BUSINESS SERVICES - 10.43%
- --------------------------------------------------------------------------------
THE CORPORATE EXECUTIVE BOARD COMPANY* 9,500 267,188 0.12
DENDRITE INTERNATIONAL, INC.* 39,700 1,027,238 0.46
FORRESTER RESEARCH, INC.* 13,020 442,680 0.20
IRON MOUNTAIN INCORPORATED* 36,450 1,013,766 0.45
Unaudited. See Notes to Financial Statements.
47
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
BUSINESS SERVICES, CONTINUED
- --------------------------------------------------------------------------------
LABOR READY, INC.* 38,200 $ 1,499,350 0.67%
LASON, INC.* 52,855 2,091,076 0.94
MEDQUIST INC.* 41,800 1,431,650 0.64
METRO NETWORKS, INC.* 22,575 1,015,875 0.46
NCO GROUP, INC.* 80,635 2,630,717 1.18
THE PROFIT RECOVERY GROUP
INTERNATIONAL, INC.* 100,300 3,660,950 1.64
TMP WORLDWIDE INC.* 87,420 5,878,995 2.64
UNITED RENTALS, INC.* 77,000 2,295,562 1.03
- --------------------------------------------------------------------------------
TOTAL BUSINESS SERVICES 23,255,047 10.43
================================================================================
COMPUTER SERVICES - 9.92%
- --------------------------------------------------------------------------------
THE BISYS GROUP, INC.* 23,800 1,207,850 0.54
CHECK POINT SOFTWARE TECHNOLOGIES, LTD.* 71,700 2,527,425 1.13
CHECKFREE HOLDINGS CORPORATION* 19,900 955,200 0.43
CLARIFY INC.* 21,900 514,650 0.23
CONCENTRIC NETWORK CORPORATION* 21,100 1,761,850 0.79
CSG SYSTEMS INTERNATIONAL, INC.* 60,776 2,347,473 1.05
ENTRUST TECHNOLOGIES INC* 13,100 322,588 0.14
GLOBIX CORPORATION* 15,600 731,250 0.33
HI/FN, INC.* 33,300 1,798,200 0.81
INTERNATIONAL NETWORK SERVICES* 23,025 874,950 0.39
ISS GROUP, INC.* 17,100 907,369 0.41
MENTOR GRAPHICS CORPORATION* 65,900 799,038 0.36
MIPS TECHNOLOGIES, INC.* 33,800 1,343,550 0.60
MODEM MEDIA . POPPE TYSON, INC., CLASS A* 19,300 680,325 0.31
NICE SYSTEMS LTD. ADR* 94,650 2,721,188 1.22
PEGASUS SYSTEMS, INC.* 43,225 2,020,769 0.91
RWD TECHNOLOGIES, INC.* 35,160 606,510 0.27
- --------------------------------------------------------------------------------
TOTAL COMPUTER SERVICES 22,120,185 9.92
Unaudited. See Notes to Financial Statements.
48
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
COMPUTER SOFTWARE - 11.91%
- --------------------------------------------------------------------------------
AVANT! CORPORATION* 55,100 $ 743,850 0.33%
AVT CORPORATION* 43,600 1,185,375 0.53
BUSINESS OBJECTS S.A. ADS* 87,000 2,039,062 0.92
ELECTRONICS FOR IMAGING, INC.* 93,700 4,433,181 1.99
EXCHANGE APPLICATIONS, INC.* 27,800 820,100 0.37
GEMSTAR INTERNATIONAL GROUP LIMITED* 21,400 2,255,025 1.01
LEGATO SYSTEMS, INC.* 5,200 210,275 0.09
MACROMEDIA, INC.* 41,500 1,719,656 0.77
MEDICAL MANAGER CORPORATION* 75,800 2,160,300 0.97
MERCURY INTERACTIVE CORPORATION* 71,900 2,026,681 0.91
NATIONAL INSTRUMENTS CORPORATION* 11,200 380,800 0.17
NEON SYSTEMS, INC.* 15,800 663,600 0.30
PEREGRINE SYSTEMS, INC.* 67,100 1,509,750 0.68
PINNACLE SYSTEMS, INC.* 42,925 2,334,047 1.05
PLX TECHNOLOGY, INC.* 25,000 484,375 0.22
SIEBEL SYSTEMS, INC.* 27,340 1,050,881 0.47
SOFTWARE AG SYSTEMS, INC.* 12,970 107,002 0.05
TRANSACTION SYSTEMS ARCHITECTS,
INC., CLASS A* 22,710 736,656 0.33
VERISIGN, INC.* 4,900 563,500 0.25
VERITAS SOFTWARE CORPORATION* 15,750 1,118,250 0.50
- --------------------------------------------------------------------------------
TOTAL COMPUTER SOFTWARE 26,542,366 11.91
================================================================================
CONSTRUCTION - 0.48%
- --------------------------------------------------------------------------------
DYCOM INDUSTRIES, INC.* 23,475 1,072,514 0.48
================================================================================
CREDIT AND FINANCE - 0.40%
- --------------------------------------------------------------------------------
AMERICREDIT CORP.* 53,900 892,719 0.40
Unaudited. See Notes to Financial Statements.
49
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
DISCOUNT STORES - 3.99%
- --------------------------------------------------------------------------------
DOLLAR TREE STORES, INC.* 147,880 $5,397,620 2.42%
99 CENTS ONLY STORES* 73,950 3,484,894 1.57
- --------------------------------------------------------------------------------
TOTAL DISCOUNT STORES 8,882,514 3.99
================================================================================
DRUGS - 1.05%
- --------------------------------------------------------------------------------
ALPHARMA INC., CLASS A 29,000 855,500 0.38
K-V PHARMACEUTICAL COMPANY, CLASS A* 15,500 240,250 0.11
SHIRE PHARMACEUTICALS GROUP PLC* 57,550 1,244,519 0.56
- --------------------------------------------------------------------------------
TOTAL DRUGS 2,340,269 1.05
================================================================================
EDUCATIONAL PROGRAMS - 1.81%
- --------------------------------------------------------------------------------
CAREER EDUCATION CORPORATION* 12,700 425,450 0.19
CORINTHIAN COLLEGES, INC.* 41,400 677,925 0.30
EDUCATION MANAGEMENT CORPORATION* 58,200 1,160,362 0.52
SCHOOL SPECIALTY, INC.* 41,275 779,066 0.35
SYLVAN LEARNING SYSTEMS, INC.* 39,650 996,206 0.45
- --------------------------------------------------------------------------------
TOTAL EDUCATIONAL PROGRAMS 4,039,009 1.81
================================================================================
ELECTRIC POWER - 0.31%
- --------------------------------------------------------------------------------
CALPINE CORPORATION* 16,400 699,050 0.31
================================================================================
ELECTRICAL EQUIPMENT/PERIPHERALS - 2.52%
- --------------------------------------------------------------------------------
DIONEX CORPORATION* 12,000 492,000 0.22
PMC-SIERRA, INC.* 34,330 3,291,389 1.48
SANDISK CORPORATION* 20,000 405,000 0.18
TRANSWITCH CORPORATION* 32,300 1,421,200 0.64
- --------------------------------------------------------------------------------
TOTAL ELECTRICAL EQUIPMENT/PERIPHERALS 5,609,589 2.52
================================================================================
ELECTRONIC COMPONENTS/SEMICONDUCTORS - 10.49%
- --------------------------------------------------------------------------------
ALPHA INDUSTRIES, INC.* 25,200 888,300 0.40
BROOKS AUTOMATION, INC.* 30,000 645,000 0.29
Unaudited. See Notes to Financial Statements.
50
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
ELECTRONIC COMPONENTS/SEMICONDUCTORS, CONTINUED
- --------------------------------------------------------------------------------
CREE RESEARCH, INC.* 22,900 $ 961,800 0.43%
DUPONT PHOTOMASKS, INC.* 15,600 682,500 0.31
FLEXTRONICS INTERNATIONAL LTD.* 36,900 1,722,769 0.77
GENESIS MICROCHIP INCORPORATED* 42,900 890,175 0.40
LAM RESEARCH CORPORATION* 45,400 1,430,100 0.64
LATTICE SEMICONDUCTOR CORPORATION* 28,600 1,169,025 0.53
MICREL, INCORPORATED* 16,000 942,000 0.42
ORBOTECH LTD. 24,200 1,161,600 0.52
PLEXUS CORP.* 27,200 907,800 0.41
PRI AUTOMATION, INC.* 10,200 253,088 0.11
QLOGIC CORPORATION* 14,000 979,125 0.44
SANMINA CORPORATION* 48,900 3,245,738 1.46
SDL, INC.* 12,700 1,387,475 0.62
THE DII GROUP, INC.* 53,100 1,646,100 0.74
UNIPHASE CORPORATION* 10,900 1,322,988 0.59
VITESSE SEMICONDUCTOR CORPORATION* 67,880 3,143,692 1.41
- --------------------------------------------------------------------------------
TOTAL ELECTRONIC COMPONENTS/SEMICONDUCTORS 23,379,275 10.49
================================================================================
ELECTRONICS - 1.03%
- --------------------------------------------------------------------------------
ANTEC CORPORATION* 26,700 724,238 0.33
POWER INTEGRATIONS, INC.* 26,100 1,024,425 0.46
ZORAN CORPORATION* 50,000 540,625 0.24
- --------------------------------------------------------------------------------
TOTAL ELECTRONICS 2,289,288 1.03
================================================================================
ENTERTAINMENT AND LEISURE - 5.96%
- --------------------------------------------------------------------------------
AMERICAN CLASSIC VOYAGES CO. 40,900 731,088 0.33
CINAR CORPORATION* 29,000 605,375 0.27
CITADEL COMMUNICATIONS CORPORATION* 33,000 924,000 0.41
COX RADIO, INC., CLASS A* 21,800 1,062,750 0.48
ENTERCOM COMMUNICATIONS CORP., CLASS A* 8,200 304,425 0.14
FAIRFIELD COMMUNITIES, INC. 109,170 1,405,564 0.63
HEFTEL BROADCASTING CORPORATION, CLASS A* 31,800 1,729,125 0.77
Unaudited. See Notes to Financial Statements.
51
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
ENTERTAINMENT AND LEISURE, CONTINUED
- --------------------------------------------------------------------------------
INTERNATIONAL SPEEDWAY CORPORATION,
CLASS A 27,200 $ 1,400,800 0.63%
JONES INTERCABLE, INC., CLASS A* 52,375 2,428,891 1.09
STEINER LEISURE LIMITED* 32,500 1,031,875 0.46
UNITED INTERNATIONAL HOLDINGS, INC., CLASS A* 27,900 1,667,025 0.75
- --------------------------------------------------------------------------------
TOTAL ENTERTAINMENT AND LEISURE 13,290,918 5.96
================================================================================
FINANCIAL SERVICES - 1.11%
- --------------------------------------------------------------------------------
FINANCIAL FEDERAL CORPORATION* 19,500 407,062 0.18
METRIS COMPANIES INC. 6,200 378,975 0.17
NOVA CORPORATION* 39,936 1,038,336 0.47
SEI INVESTMENTS COMPANY 6,900 655,500 0.29
- --------------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 2,479,873 1.11
================================================================================
FOOD AND RESTAURANTS - 0.29%
- --------------------------------------------------------------------------------
BUCA, INC.* 2,800 50,750 0.02
PERFORMANCE FOOD GROUP COMPANY* 23,000 609,500 0.27
- --------------------------------------------------------------------------------
TOTAL FOOD AND RESTAURANTS 660,250 0.29
================================================================================
HOSPITALS - 0.10%
- --------------------------------------------------------------------------------
CAREMATRIX CORPORATION* 12,850 220,056 0.10
================================================================================
INSURANCE - 1.62%
- --------------------------------------------------------------------------------
ANNUITY AND LIFE RE (HOLDINGS), LTD. 6,500 128,375 0.06
CLARK/BARDES HOLDINGS, INC.* 51,500 669,500 0.30
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD. 17,100 976,838 0.44
MUTUAL RISK MANAGEMENT LTD. 47,100 1,831,012 0.82
- --------------------------------------------------------------------------------
TOTAL INSURANCE 3,605,725 1.62
Unaudited. See Notes to Financial Statements.
52
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
INTERNET SERVICES - 6.01%
- --------------------------------------------------------------------------------
DOUBLECLICK INC.* 14,000 $ 1,957,375 0.88%
EXODUS COMMUNICATIONS, INC.* 9,300 838,162 0.38
EXTREME NETWORKS, INC.* 10,600 587,638 0.26
INFOSEEK CORPORATION* 16,200 827,212 0.37
INTERVU INC.* 9,900 534,600 0.24
MINDSPRING ENTERPRISES, INC.* 8,200 794,888 0.36
NETOPIA, INC.* 20,200 453,238 0.20
PSINET INC.* 32,900 1,661,450 0.75
REALNETWORKS, INC.* 6,700 1,484,050 0.67
SOFTNET SYSTEMS, INC.* 23,125 754,453 0.34
TELEBANC FINANCIAL CORPORATION* 10,200 1,056,975 0.47
USINTERNETWORKING, INC.* 8,500 434,562 0.19
VERIO INC.* 28,200 2,002,200 0.90
- --------------------------------------------------------------------------------
TOTAL INTERNET SERVICES 13,386,803 6.01
================================================================================
INVESTMENT SERVICES - 0.18%
- --------------------------------------------------------------------------------
NATIONAL DISCOUNT BROKERS GROUP, INC.* 7,000 399,437 0.18
================================================================================
MEDICAL AND DENTAL PRODUCTS - 1.88%
- --------------------------------------------------------------------------------
MEDIMMUNE, INC.* 66,100 3,643,762 1.63
PATTERSON DENTAL COMPANY* 15,400 555,362 0.25
- --------------------------------------------------------------------------------
TOTAL MEDICAL AND DENTAL PRODUCTS 4,199,124 1.88
================================================================================
MEDICAL INSTRUMENTS - 2.18%
- --------------------------------------------------------------------------------
LASER VISION CENTERS, INC.* 46,100 1,941,962 0.87
NOVOSTE CORPORATION* 23,900 531,775 0.24
VISX, INCORPORATED* 11,200 1,442,000 0.65
XOMED SURGICAL PRODUCTS, INC.* 22,550 938,644 0.42
- --------------------------------------------------------------------------------
TOTAL MEDICAL INSTRUMENTS 4,854,381 2.18
Unaudited. See Notes to Financial Statements.
53
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
MEDICAL/DENTAL SERVICES - 1.52%
- --------------------------------------------------------------------------------
AMSURG CORP., CLASS A* 93,200 $ 640,750 0.29%
PHARMACEUTICAL PRODUCT DEVELOPMENT, INC.* 23,200 675,700 0.30
PROFESSIONAL DETAILING, INC.* 23,100 664,125 0.30
RENAL CARE GROUP, INC.* 67,245 1,403,739 0.63
- --------------------------------------------------------------------------------
TOTAL MEDICAL/DENTAL SERVICES 3,384,314 1.52
================================================================================
NETWORKING - 0.30%
- --------------------------------------------------------------------------------
RHYTHMS NETCONNECTIONS INC.* 8,100 668,250 0.30
================================================================================
OFFSHORE DRILLING - 0.63%
- --------------------------------------------------------------------------------
DRIL-QUIP, INC.* 5,200 126,750 0.05
ROWAN COMPANIES, INC.* 80,500 1,288,000 0.58
- --------------------------------------------------------------------------------
TOTAL OFFSHORE DRILLING 1,414,750 0.63
================================================================================
OIL FIELD SERVICES - 1.52%
- --------------------------------------------------------------------------------
ATWOOD OCEANICS, INC.* 14,100 491,737 0.22
GLOBAL INDUSTRIES, LTD.* 89,700 1,104,431 0.50
MARINE DRILLING COMPANIES, INC.* 26,000 446,875 0.20
PATTERSON ENERGY, INC.* 135,900 1,095,694 0.49
TRICO MARINE SERVICES, INC.* 30,100 238,919 0.11
- --------------------------------------------------------------------------------
TOTAL OIL FIELD SERVICES 3,377,656 1.52
================================================================================
POLLUTION CONTROL - 1.95%
- --------------------------------------------------------------------------------
NEWPARK RESOURCES, INC.* 143,300 1,316,569 0.59
U S LIQUIDS INC.* 76,400 1,547,100 0.69
WASTE CONNECTIONS, INC.* 56,600 1,492,825 0.67
- --------------------------------------------------------------------------------
TOTAL POLLUTION CONTROL 4,356,494 1.95
================================================================================
PUBLISHING/ADVERTISING - 2.56%
- --------------------------------------------------------------------------------
CATALINA MARKETING CORPORATION* 28,600 2,443,512 1.10
CONSOLIDATED GRAPHICS, INC.* 25,800 1,099,725 0.49
Unaudited. See Notes to Financial Statements.
54
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
PUBLISHING/ADVERTISING, CONTINUED
- --------------------------------------------------------------------------------
LAMAR ADVERTISING COMPANY, CLASS A* 61,700 $ 2,074,662 0.93%
PLAYBOY ENTERPRISES, INC., CLASS B* 2,500 80,469 0.04
- --------------------------------------------------------------------------------
TOTAL PUBLISHING/ADVERTISING 5,698,368 2.56
================================================================================
SPECIALTY RETAIL - 0.39%
- --------------------------------------------------------------------------------
COST PLUS, INC.* 23,000 810,750 0.36
GUITAR CENTER, INC.* 3,855 60,234 0.03
- --------------------------------------------------------------------------------
TOTAL SPECIALTY RETAIL 870,984 0.39
================================================================================
TELECOMMUNICATIONS - 6.12%
- --------------------------------------------------------------------------------
APPLIED MICRO CIRCUITS CORPORATION* 39,700 2,116,506 0.95
CATAPULT COMMUNICATIONS CORPORATION* 15,425 240,052 0.11
DSP COMMUNICATIONS, INC.* 82,500 2,248,125 1.01
E-TEK DYNAMICS, INC.* 20,500 881,500 0.40
GILAT SATELLITE NETWORKS, LTD.* 28,500 1,482,000 0.66
INTERMEDIA COMMUNICATIONS INC.* 40,300 1,297,156 0.58
MGC COMMUNICATIONS, INC.* 13,000 442,000 0.20
QUANTA SERVICES, INC.* 37,500 1,080,469 0.49
RCN CORPORATION* 18,100 880,112 0.39
RESEARCH IN MOTION LIMITED* 118,600 1,445,437 0.65
VIATEL, INC.* 32,800 1,508,800 0.68
- --------------------------------------------------------------------------------
TOTAL TELECOMMUNICATIONS 13,622,157 6.12
================================================================================
TELEPHONE - 1.22%
- --------------------------------------------------------------------------------
MCLEODUSA INCORPORATED, CLASS A* 48,300 2,707,819 1.22
================================================================================
TEXTILES AND SHOES - 0.24%
- --------------------------------------------------------------------------------
NOVEL DENIM HOLDINGS LIMITED* 68,940 534,285 0.24
================================================================================
TOYS - 0.29%
- --------------------------------------------------------------------------------
JAKKS PACIFIC, INC.* 30,000 641,250 0.29
Unaudited. See Notes to Financial Statements.
55
<PAGE>
- ---------
P*I*C
- ---------
SMALL CAP STATEMENT OF NET ASSETS
- --------- as of April 30, 1999
PORTFOLIO
- ---------
================================================================================
Percentage of
EQUITY SECURITIES, continued Shares Value Net Assets
================================================================================
TRUCKING - 0.39%
- --------------------------------------------------------------------------------
FORWARD AIR CORPORATION* 39,000 $ 867,750 0.39%
- --------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES (COST $170,878,501) 215,093,952 96.50
================================================================================
MONEY MARKET FUNDS - 4.08%
- --------------------------------------------------------------------------------
TEMPORARY INVESTMENT FUND, INC. -
TEMPCASH 4,540,560 4,540,560 2.04
TEMPORARY INVESTMENT FUND, INC. -
TEMPFUND 4,540,560 4,540,560 2.04
- --------------------------------------------------------------------------------
TOTAL MONEY MARKET FUNDS (COST $9,081,120) 9,081,120 4.08
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $179,959,621) 224,175,072 100.58
================================================================================
OTHER ASSETS - 1.28%
- --------------------------------------------------------------------------------
RECEIVABLES:
INTEREST 42,866
INVESTMENT SECURITIES SOLD 2,788,118
SHARES OF BENEFICIAL INTEREST SOLD 452
OTHER ASSETS 21,253
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS 2,852,689 1.28
- --------------------------------------------------------------------------------
TOTAL ASSETS 227,027,761 101.86
- --------------------------------------------------------------------------------
================================================================================
LIABILITIES - (1.86%)
- --------------------------------------------------------------------------------
PAYABLE FOR INVESTMENT SECURITIES PURCHASED 3,912,158
ACCRUED EXPENSES 228,393
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 4,140,551 (1.86)
================================================================================
NET ASSETS - 100.00% $222,887,210 100.00%
================================================================================
*NON-INCOME PRODUCING SECURITY.
Unaudited. See Notes to Financial Statements.
56
<PAGE>
<TABLE>
<CAPTION>
- ---------
P*I*C STATEMENT OF OPERATIONS
- --------- Six Months ended April 30, 1999
BALANCED
- ---------
GROWTH
- ---------
MID CAP
- ---------
SMALL CAP
- --------- BALANCED GROWTH MID CAP SMALL CAP
PORTFOLIOS PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
================================================================================================
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------
INCOME:
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividends $ 52,934 $ 417,578 $ 7,226 $ 15,485
Interest 322,167 14,726 4,252 191,181
Other 2,026 32,736 -- 22,530
----------- ------------ ----------- ------------
TOTAL INCOME 377,127 465,040 11,478 229,196
=========== ============ =========== ============
EXPENSES:
Investment advisory fee (Note 3) 108,323 635,793 25,048 815,316
Administration fee (Note 3) 18,054 79,474 22,625 101,915
Accounting services fee 32,400 38,377 31,860 42,865
Custodian fee 10,050 19,376 11,952 34,639
Audit fee 7,091 10,909 7,092 9,819
Trustees' fees 3,177 6,248 1,786 6,248
Insurance 792 1,836 371 2,976
Amortization of organization
costs 395 -- -- --
Legal fees 1,488 3,967 992 3,968
Miscellaneous 3,471 2,677 3,075 4,463
----------- ------------ ----------- ------------
TOTAL EXPENSES 185,241 798,657 104,801 1,022,209
Less reimbursement/waiver
from Advisor (Note 3) (40,811) (3,915) (72,597) (3,064)
----------- ------------ ----------- ------------
NET EXPENSES 144,430 794,742 32,204 1,019,145
----------- ------------ ----------- ------------
NET INVESTMENT INCOME (LOSS) 232,697 (329,702) (20,726) (789,949)
=========== ============ =========== ============
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss)
on investments 7,206,320 13,159,827 442,044 (3,500,072)
Change in net unrealized
appreciation (depreciation)
of investments (1,325,716) 19,361,965 1,457,681 34,387,239
----------- ------------ ----------- ------------
NET GAIN ON INVESTMENTS 5,880,604 32,521,792 1,899,725 30,887,167
=========== ============ =========== ============
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS $ 6,113,301 $ 32,192,090 $ 1,878,999 $ 30,097,218
=========== ============ =========== ============
</TABLE>
Unaudited. See Notes to Financial Statements.
57
<PAGE>
- ---------
P*I*C STATEMENT OF CHANGES IN NET ASSETS
- ---------
BALANCED
- ---------
GROWTH
- ---------
MID CAP
- ---------
SMALL CAP
- ---------
PORTFOLIOS
================================================================================
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------------------------
Six Months Year
ended ended
FROM OPERATIONS: April 30, 1999* Oct. 31, 1998
- ---------------- --------------- -------------
Net investment income (loss) $ 232,697 $ 479,629
Net realized gain (loss) on investments 7,206,320 2,840,824
Change in net unrealized appreciation
(depreciation) of investments (1,325,716) 3,069,602
------------
Net increase (decrease) in net assets
resulting from operations 6,113,301 6,390,055
============ ============
TRANSACTIONS IN INTERESTS:
Contributions by Holders 4,480,932 4,234,921
Withdrawals by Holders (20,000,853) (3,865,363)
------------
Net increase (decrease) in net assets
from transactions in interests (15,519,921) 369,558
============ ============
TOTAL INCREASE (DECREASE) IN NET ASSETS (9,406,620) 6,759,613
============ ============
NET ASSETS
------------
Beginning of period 42,143,141 35,383,528
------------
End of period $ 32,736,521 $ 42,143,141
------------ ------------
*Unaudited.
+Commencement of operations.
58
<PAGE>
<TABLE>
<CAPTION>
GROWTH MID CAP SMALL CAP
PORTFOLIO PORTFOLIO PORTFOLIO
===================================================================================================
- ---------------------------------------------------------------------------------------------------
Year Year Year Year Year Year
ended ended ended ended ended ended
April 30, 1999* Oct. 31, 1998 April 30, 1999* Oct. 31, 1998 April 30, 1999* Oct. 31, 1998
- --------------- ------------- --------------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
$ (329,702) $ (417,693) $ (20,726) $ (11,916) $ (789,949) $ (1,197,741)
13,159,827 9,511,479 442,044 (198,860) (3,500,072) (30,872,647)
19,361,965 15,517,462 1,457,681 57,277 34,387,239 (283,036)
- ------------- ------------- ----------- ----------- ------------- -------------
32,192,090 24,611,248 1,878,999 (153,499) 30,097,218 (32,353,424)
============= ============= =========== =========== ============= =============
15,284,742 64,364,321 1,055,022 9,426,366 49,308,168 123,809,971
(11,940,616) (35,037,926) (294,169) (3,509,589) (30,171,815) (57,458,705)
- ------------- ------------- ----------- ----------- ------------- -------------
3,344,126 29,326,395 760,853 5,916,777 19,136,353 66,351,266
============= ============= =========== =========== ============= =============
35,536,216 53,937,643 2,639,852 5,763,278 49,233,571 33,997,842
============= ============= =========== =========== ============= =============
- ------------- ------------- ----------- ----------- ------------- -------------
136,082,323 82,144,680 5,763,278 -- 173,653,639 139,655,797
- ------------- ------------- ----------- ----------- ------------- -------------
$ 171,618,539 $ 136,082,323 $ 8,403,130 $ 5,763,278 $ 222,887,210 $ 173,653,639
- ------------- ------------- ----------- ----------- ------------- -------------
</TABLE>
59
<PAGE>
- ---------
P*I*C SELECTED RATIO DATA
- ---------
BALANCED
- ---------
GROWTH
- ---------
MID CAP
- ---------
SMALL CAP
- ---------
PORTFOLIOS BALANCED PORTFOLIO
================================================================================
Six Months Year ended October 31,
ended ------------------------------------------
Apr. 30, 1999 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
Ratios to average
net assets:++
Expenses 0.80% 0.80% 0.80% 0.80% 0.80% 0.80%
Net investment income 1.29% 1.22% 1.35% 1.30% 1.57% 1.63%
Portfolio turnover rate 58.67% 111.47% 104.50% 54.24% 106.50% 116.63%
++Annualized for the periods of less than one year. Net of expense
reimbursements and waivers of 0.23%, 0.18%, 0.36%, 0.90%, 0.78%, and 1.16%,
respectively.
*Unaudited.
See Notes to Financial Statements.
60
<PAGE>
- ---------
P*I*C SELECTED RATIO DATA,
- --------- continued
BALANCED
- ---------
GROWTH
- ---------
MID CAP
- ---------
SMALL CAP
- ---------
PORTFOLIOS GROWTH PORTFOLIO
================================================================================
Six Months Year ended October 31,
ended ------------------------------------------
Apr. 30, 1999 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
Ratios to average
net assets:++
Expenses 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment
income (loss) (0.41%) (0.32%) (0.13%) (0.04%) 0.08% 0.10%
Portfolio turnover rate 31.79% 81.06% 67.54% 64.09% 54.89% 68.26%
+Annualized for periods of less than one year. Net of expense reimbursements and
waivers of 0.00%, 0.02%, 0.05%, 0.04%, 0.01%, and 0.01%, respectively.
*Unaudited.
See Notes to Financial Statements.
61
<PAGE>
- ---------
P*I*C SELECTED RATIO DATA,
- --------- continued
BALANCED
- ---------
GROWTH
- ---------
MID CAP
- ---------
SMALL CAP
- ---------
PORTFOLIOS MID CAP PORTFOLIO
================================================================================
Six Months Dec. 31, 1997**
ended through
April 30, 1999* Oct. 31, 1998
- --------------------------------------------------------------------------------
Ratios to average net assets:+
Expenses 0.91% 0.90%
Net investment loss (0.58%) (0.29%)
Portfolio turnover rate 92.84% 166.89%
+Annualized for periods of less than one year. Net of expense reimbursements and
waivers of 2.04% and 2.07%, respectively.
*Unaudited.
**Commencement of operations.
62
<PAGE>
- ---------
P*I*C SELECTED RATIO DATA,
- --------- continued
BALANCED
- ---------
GROWTH
- ---------
MID CAP
- ---------
SMALL CAP
- ---------
PORTFOLIOS SMALL CAP PORTFOLIO
================================================================================
Six Months Year ended October 31,
ended ------------------------------------------
Apr. 30, 1999 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------
Ratios to average
net assets:+
Expenses 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment loss (0.78%) (0.68%) (0.49%) (0.59%) (0.51%) (0.49%)
Portfolio turnover rate 61.75% 81.75% 151.52% 53.11% 45.45% 63.89%
+ Annualized for periods of less than one year. Net of expense reimbursements
and waivers of 0.00%, 0.01%, 0.01%, 0.01%, 0.07% and 0.10%, respectively.
*Unaudited.
63
<PAGE>
- ---------
P*I*C NOTES TO FINANCIAL STATEMENTS
- ---------
BALANCED
- ---------
GROWTH
- ---------
MID CAP
- ---------
SMALL CAP
- ---------
PORTFOLIOS
================================================================================
1 - ORGANIZATION
- --------------------------------------------------------------------------------
PIC Balanced and Growth Portfolios were organized on December 11, 1991, the
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.
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 COSTS. 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
64
<PAGE>
- ----------
P*I*C NOTES TO FINANCIAL STATEMENTS,
- ---------- continued
BALANCED
- ----------
GROWTH
- ----------
MID CAP
- ----------
SMALL CAP
- ----------
PORTFOLIOS
================================================================================
an identified cost basis. Interest is recorded as accrued, and
dividend income is recorded on the ex-dividend date.
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 LLC ("ICA"), pursuant to which agreements
certain employees of these entities serve as officers and/or trustees of the
Portfolios. PIC and ICA also provide management services necessary for the
operations of the Portfolios and furnish office facilities.
PIC receives from Balanced Portfolio an investment advisory fee at the
annual rate of 0.60% of its average 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 taken to limit the expenses of the Balanced
Portfolio to 0.80% of its average net assets, 1.00% for the Growth Portfolio,
0.90% for the Mid Cap Portfolio, and 1.00% for the Small Cap Portfolio.
Fees waived by PIC for the six months ended April 30, 1999 were as follows:
Waived Fees Reimbursed Expenses
----------- -------------------
Balanced Portfolio $40,811 $0
Growth Portfolio 3,915 0
Mid Cap Portfolio 25,048 47,549
Small Cap Portfolio 3,064 0
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, 1999 are stated on the respective Portfolios'
Statement of Operations.
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- ---------
P*I*C NOTES TO FINANCIAL STATEMENTS,
- --------- continued
BALANCED
- ---------
GROWTH
- ---------
MID CAP
- ---------
SMALL CAP
- ---------
PORTFOLIOS
================================================================================
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.
4 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
The aggregate purchases and sales of investment securities, other than
short-term obligations, for the six months ended April 30, 1999 were as follows:
Purchases Sales
--------- -----
Balanced Portfolio $ 21,257,451 $ 37,041,922
Growth Portfolio 49,244,389 48,993,774
Mid Cap Portfolio 7,437,869 6,526,426
Small Cap Portfolio 143,029,395 123,371,562
The Balanced Portfolio purchased $5,791,717 and sold $11,184,229 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 unrealized appreciation and depreciation of investment
securities at April 30, 1999, based on costs for Federal income tax purposes,
were as follows:
Tax Gross Gross
Costs of Unrealized Unrealized
Investments Appreciation Depreciation
----------- ------------ ------------
Balanced Portfolio $ 25,469,406 $ 6,757,827 $ (110,054)
Growth Portfolio 114,748,326 55,343,550 (38,623)
Mid Cap Portfolio 7,017,174 1,554,887 (39,928)
Small Cap Portfolio 179,959,621 50,897,014 (6,681,563)
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- ----------------------------
Provident Investment Counsel TRUSTEES AND OFFICERS
Mutual Funds
- ----------------------------
================================================================================
TRUSTEES AND OFFICERS - PIC INVESTMENT TRUST
- --------------------------------------------------------------------------------
JEFFREY J. MILLER, Trustee
JETTIE M. EDWARDS, Trustee
BERNARD J. JOHNSON, Trustee Emeritus
JEFFREY D. LOVELL, Trustee
WAYNE H. SMITH, Trustee
DOUGLASS B. ALLEN, President
THAD M. BROWN, Vice President, Secretary and Treasurer
TRUSTEES AND OFFICERS - PIC PORTFOLIOS
- --------------------------------------------------------------------------------
JEFFREY J. MILLER, Trustee
RICHARD N. FRANK, Trustee
JAMES CLAYBURN LAFORCE, Trustee
ANGELO R. MOZILO, Trustee
BERNARD J. JOHNSON, Trustee Emeritus
DOUGLASS B. ALLEN, President
THAD M. BROWN, Vice President, Secretary and Treasurer
LEGAL COUNSEL - PIC INVESTMENT TRUST
- --------------------------------------------------------------------------------
SWIDLER, BERLIN, SHEREFF, FRIEDMAN, LLP
LEGAL COUNSEL - PIC PORTFOLIOS
- --------------------------------------------------------------------------------
PAUL, HASTINGS, JANOFSKY & WALKER, LLP
INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
MCGLADREY & PULLEN, LLP
TRUSTEES AND OFFICERS
This report is intended for shareholders of the Fund and may not be used as
sales literature unless preceded or accompanied by a current prospectus.
Past performance results shown in this report should not be considered a
representation of future performance. Share price and returns will fluctuate so
that shares, when redeemed, may be worth more or less than their original cost.
Statements and other information herein are dated and are subject to change.
