<PAGE> 1
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
=============================================================================
EQUITY SECURITIES - 93.0% SHARES VALUE
- -----------------------------------------------------------------------------
<S> <C> <C>
AIR FREIGHT .. 0.3%
- -----------------------------------------------------------------------------
Eagle USA Airfreight, Inc.* 15,500 $ 469,844
==============================================================================
AUDIO/VIDEO .. 0.4%
- -----------------------------------------------------------------------------
Harman International Industries, Inc. 17,495 826,639
==============================================================================
AUTO PARTS .. 0.2%
- -----------------------------------------------------------------------------
Gentex Corp.* 9,700 383,150
==============================================================================
BEVERAGES .. 0.1%
- -----------------------------------------------------------------------------
Big Rock Brewery Ltd.* 12,900 114,487
==============================================================================
BEVERAGE/FOOD .. 0.2%
- -----------------------------------------------------------------------------
Redhook Ale Brewer, Inc.* 14,800 344,100
==============================================================================
BIOTECHNOLOGY .. 0.5%
- -----------------------------------------------------------------------------
Martek Biosciences Corp.* 12,300 425,887
Neuromedical Systems, Inc.* 11,100 242,813
Protein Design Labs, Inc.* 12,200 323,300
- -----------------------------------------------------------------------------
Total Biotechnology 992,000
==============================================================================
BUILDERS .. 0.3%
- -----------------------------------------------------------------------------
Palm Harbor Homes, Inc.* 18,600 516,150
==============================================================================
BUILDING PRODUCTS .. 3.1%
- -----------------------------------------------------------------------------
Fastenal Co. 150,500 5,756,625
==============================================================================
BUSINESS INFORMATION SERVICES .. 0.3%
- -----------------------------------------------------------------------------
Intelliquest Information Group, Inc.* 5,500 211,750
M.A.I.D. PLC ADR* 23,300 332,025
==============================================================================
Total Business Information Services 543,775
</TABLE>
9
<PAGE> 2
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
===========================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C> <C>
BUSINESS SERVICES .. 5.2%
- ---------------------------------------------------------------------------
Accustaff Inc.* 89,700 $ 2,668,575
Apac Teleservices, Inc.* 20,000 1,550,000
Career Horizons* 19,900 701,475
CSG Systems, Inc.* 2,000 64,000
Data Processing Resources Corp.* 19,700 497,425
Dendrite International, Inc.* 6,100 144,875
Health Management Systems, Inc.* 29,625 762,844
PMT Services, Inc.* 69,600 2,009,700
Protection One, Inc.* 23,600 371,700
Rural Metro Corp.* 16,600 491,775
Wackenhut Corrections Corp.* 8,400 449,400
- ---------------------------------------------------------------------------
Total Business Services 9,711,769
============================================================================
CHEMICALS .. 0.1%
- ---------------------------------------------------------------------------
NuCo2, Inc.* 4,500 122,625
============================================================================
COMPUTER SERVICES .. 4.5%
- ---------------------------------------------------------------------------
Cambridge Technology Partners, Inc.* 19,500 1,311,375
Cycare Systems, Inc.* 10,600 386,900
Datastream Systems, Inc.* 16,200 526,500
Dataworks Corp.* 2,200 32,450
Enterprise Systems, Inc.* 7,100 237,850
Envoy Corp.* 7,600 219,450
Gartner Group, Inc., Class A* 31,600 1,082,300
HBO & Co. 8,000 950,000
HCIA, Inc.* 23,200 1,252,800
Indus Group, Inc.* 13,000 276,250
Itron, Inc.* 19,600 1,151,500
May & Speh, Inc.* 10,400 141,700
PowerCerv Corp.* 10,800 145,800
Premiere Technologies, Inc.* 10,300 388,825
Renaissance Solutions, Inc.* 11,400 376,200
- ---------------------------------------------------------------------------
Total Computer Services 8,479,900
</TABLE>
10
<PAGE> 3
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
=======================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- -----------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE .. 11.8%
- -----------------------------------------------------------------------
Aspen Technology, Inc.* 19,100 $ 1,060,050
Astea International, Inc.* 11,300 333,350
Avant Corp.* 4,500 96,750
Baan Company, N.V.* 4,800 288,000
BDM International, Inc.* 19,100 888,150
Citrix Systems, Inc.* 6,300 491,400
Data Dimensions* 1,800 69,300
Electronics For Imaging, Inc.* 34,800 2,122,800
Epic Design Technology, Inc.* 21,400 732,950
Fiserv, Inc.* 49,200 1,500,600
Gemstar International Group Limited* 8,400 278,250
HNC Software, Inc.* 11,600 432,100
Integrated Systems, Inc.* 17,200 503,100
McAfee Associates* 9,850 603,312
Meta-Software, Inc.* 20,500 369,000
Microchip Technology, Inc.* 26,400 673,200
Network General Corp.* 31,200 1,376,700
OrCAD, Inc.* 12,600 168,525
Parametric Technology Corp.* 125,600 5,055,400
Peoplesoft, Inc.* 20,800 1,310,400
Pinnacle Systems, Inc.* 6,600 169,950
Synopsys, Inc.* 48,900 2,017,125
Transactions Systems Architects, Inc.* 24,400 1,305,400
TCSI Corp.* 9,900 324,225
- -----------------------------------------------------------------------
Total Computer Software 22,170,037
=======================================================================
COSMETICS AND SOAPS .. 0.3%
- -----------------------------------------------------------------------
USA Detergents, Inc.* 15,200 623,200
=======================================================================
CREDIT & FINANCE .. 1.6%
- -----------------------------------------------------------------------
First USA Paymentech, Inc.* 19,800 861,300
First USA, Inc. 38,700 2,176,875
- -----------------------------------------------------------------------
Total Credit & Finance 3,038,175
</TABLE>
11
<PAGE> 4
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
=============================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- -----------------------------------------------------------------------------
<S> <C> <C>
DISCOUNT STORES .. 0.8%
- -----------------------------------------------------------------------------
Dollar Tree Stores, Inc.* 46,800 $ 1,567,800
=============================================================================
DRUGS .. 1.7%
- -----------------------------------------------------------------------------
Arris Pharmaceutical Corp.* 31,300 485,150
Biovail Corp. International* 17,000 480,250
Cephalon, Inc.* 18,400 529,000
Jones Medical Industries, Inc. 11,250 587,812
NCS Healthcare, Inc., Class A* 2,000 67,000
Watson Pharmaceuticals, Inc.* 23,300 1,106,750
- -----------------------------------------------------------------------------
Total Drugs 3,255,962
=============================================================================
EDUCATIONAL PROGRAMS .. 1.5%
- -----------------------------------------------------------------------------
Apollo Group, Inc., Class A* 54,748 2,408,912
Sylvan Learning Systems, Inc.* 11,000 426,250
- -----------------------------------------------------------------------------
Total Educational Programs 2,835,162
=============================================================================
ELECTRIC COMPONENTS/SEMICONDUCTORS .. 4.1%
- -----------------------------------------------------------------------------
Atmel Corp.* 149,200 5,968,000
Brooks Automation, Inc.* 15,700 235,500
C.P. Clare Corp.* 9,300 196,462
Electroglas, Inc.* 15,900 310,050
Linear Technology Corp. 28,600 983,125
Mattson Technology, Inc.* 5,700 86,925
- -----------------------------------------------------------------------------
Total Electric Components/Semiconductors 7,780,062
=============================================================================
ELECTRICAL EQUIPMENT/PERIPHERALS .. 0.5%
- -----------------------------------------------------------------------------
Dialogic Corp.* 6,100 283,650
Eltron International, Inc.* 13,800 396,750
Xeikon N.V. Sponsored ADR* 10,900 252,063
- -----------------------------------------------------------------------------
Total Electrical Equipment/Peripherals 932,463
</TABLE>
12
<PAGE> 5
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
=================================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- ---------------------------------------------------------------------------------
<S> <C> <C>
ELECTRICAL PRODUCTS .. 0.4%
- ---------------------------------------------------------------------------------
Chicago Miniature Lamp, Inc.* 18,300 $ 750,300
==================================================================================
ELECTRONICS .. 0.4%
- ---------------------------------------------------------------------------------
Maxim Integrated Products, Inc.* 19,700 674,725
Photon Dynamics, Inc.* 16,900 169,000
- ---------------------------------------------------------------------------------
Total Electronics 843,725
==================================================================================
ENGINEERING & CONSTRUCTION .. 0.4%
- ---------------------------------------------------------------------------------
Oakwood Homes Corp. 16,000 714,000
==================================================================================
ENTERTAINMENT & LEISURE .. 3.3%
- ---------------------------------------------------------------------------------
Ascent Entertainment Group, Inc.* 13,500 246,375
Chancellor Corp., Class A* 6,300 160,650
HFS, Inc.* 90,300 4,639,162
Paxson Communications Corp.* 47,800 711,025
StudioPLUS Hotels, Inc.* 18,400 510,600
- ---------------------------------------------------------------------------------
Total Entertainment & Leisure 6,267,812
==================================================================================
EQUIPMENT & LEASING .. 0.5%
- ---------------------------------------------------------------------------------
Oxford Resources Corp., Class A* 29,100 858,450
==================================================================================
FINANCIAL SERVICES .. 1.1%
- ---------------------------------------------------------------------------------
Advanta Corp., Class B 10,600 531,325
Bisys Group, Inc.* 27,600 1,055,700
Credit Acceptance Corp.* 12,200 228,750
The Profit Recovery Group International, Inc.* 11,900 236,513
- ---------------------------------------------------------------------------------
Total Financial Services 2,052,288
==================================================================================
FUNERAL SERVICES .. 0.2%
- ---------------------------------------------------------------------------------
Myriad Genetics, Inc.* 13,600 447,950
</TABLE>
13
<PAGE> 6
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
============================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- ----------------------------------------------------------------------------
<S> <C> <C>
GAMING .. 0.7%
=============================================================================
Sodak Gaming, Inc.* 15,300 $ 393,975
Trump Hotels & Casino Resorts, Inc.* 28,400 919,450
- ----------------------------------------------------------------------------
Total Gaming 1,313,425
=============================================================================
HEALTH INDUSTRY SERVICES .. 0.5%
- ----------------------------------------------------------------------------
Physician Reliance Network* 22,300 964,475
=============================================================================
HOUSEHOLD PRODUCTS .. 0.7%
- ----------------------------------------------------------------------------
Blyth Industries, Inc.* 32,100 1,275,975
=============================================================================
INDUSTRIALS .. 0.1%
- ----------------------------------------------------------------------------
Continental Waste Industries, Inc.* 18,466 221,592
=============================================================================
INSURANCE .. 6.7%
- ----------------------------------------------------------------------------
Amerin Corp.* 15,100 341,637
Enhance Financial Services Group, Inc. 7,200 195,300
HCC Insurance Holdings, Inc. 29,300 1,714,050
Healthsource, Inc.* 47,300 1,614,112
Meadowbrook Insurance Group, Inc. 13,300 413,963
Oxford Health Plans, Inc.* 163,400 8,251,700
RISCORP, Inc., Class A* 7,000 165,375
- ----------------------------------------------------------------------------
Total Insurance 12,696,137
=============================================================================
MACHINERY/TOOLS .. 0.4%
- ----------------------------------------------------------------------------
Cognex Corp.* 26,800 716,900
=============================================================================
MEDICAL/DENTAL PRODUCTS ..1.9%
- ----------------------------------------------------------------------------
Arrow International, Inc. 27,000 1,066,500
Arterial Vascular Engineering, Inc.* 22,000 968,000
Heartstream, Inc.* 24,200 369,050
Henry Schein, Inc.* 16,600 597,600
</TABLE>
14
<PAGE> 7
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
===============================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
MEDICAL/DENTAL PRODUCTS, CONTINUED
- -------------------------------------------------------------------------------
Metra Biosystems, Inc.* 13,100 $ 176,850
Research Medical, Inc.* 14,300 359,288
- -------------------------------------------------------------------------------
Total Medical/Dental Products 3,537,288
================================================================================
MEDICAL/DENTAL SERVICES .. 4.9%
- -------------------------------------------------------------------------------
Avecor Cardiovascular, Inc.* 25,100 320,025
Compdent Corp.* 28,000 1,239,000
Medpartners/Mullikin, Inc.* 17,800 513,975
Occusystems, Inc.* 7,300 211,700
Orthodontic Centers of America, Inc.* 32,900 1,299,550
Pediatrix Medical Group, Inc.* 14,400 687,600
Phymatrix Corp.* 26,500 503,500
Physicians Resource Group, Inc.* 10,000 301,250
Quintiles Transnational Corp.* 28,100 2,058,325
Renal Care Group, Inc.* 14,200 489,900
Total Renal Care Holdings, Inc.* 43,400 1,660,050
- -------------------------------------------------------------------------------
Total Medical/Dental Services 9,284,875
================================================================================
MEDICAL INSTRUMENTS .. 0.5%
- -------------------------------------------------------------------------------
Angeion Corp.* 27,400 291,125
Cardio Thoracic Systems, Inc.* 9,600 226,800
Conceptus, Inc.* 14,700 290,325
Heartport, Inc.* 2,700 96,525
- -------------------------------------------------------------------------------
Total Medical Instruments 904,775
================================================================================
MEDICAL PRODUCTS .. 5.2%
- -------------------------------------------------------------------------------
Gulf South Medical Supply* 36,600 1,482,300
IDEXX Laboratories, Inc.* 110,700 4,926,150
Isolyser Company, Inc.* 41,100 729,525
Omnicare, Inc. 12,900 774,000
Target Therapeutics, Inc.* 33,800 1,833,650
- -------------------------------------------------------------------------------
Total Medical Products 9,745,625
</TABLE>
15
<PAGE> 8
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
================================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
MEDICAL SPECIALTIES .. 0.2%
- --------------------------------------------------------------------------------
Neopath, Inc.* 19,300 $ 443,900
=================================================================================
MORTGAGE & RELATED SERVICES .. 1.1%
- --------------------------------------------------------------------------------
Cityscape Financial Corp.* 33,800 1,478,750
ContiFinancial Corp.* 18,800 599,250
- --------------------------------------------------------------------------------
Total Mortgage & Related Services 2,078,000
=================================================================================
NETWORKING .. 2.0%
- --------------------------------------------------------------------------------
Ascend Communications, Inc.* 33,200 2,041,800
Fore Systems, Inc.* 9,200 726,800
SDL, Inc.* 17,400 709,050
VideoServer, Inc.* 7,500 251,250
- --------------------------------------------------------------------------------
Total Networking 3,728,900
=================================================================================
OFFICE EQUIPMENT/SUPPLIES .. 1.6%
- --------------------------------------------------------------------------------
Viking Office Products, Inc.* 50,000 2,968,750
=================================================================================
OFFICE PRODUCTS .. 0.3%
- --------------------------------------------------------------------------------
U.S. Office Products Co.* 16,600 597,600
=================================================================================
OIL FIELD SERVICES .. 0.5%
- --------------------------------------------------------------------------------
Chesapeake Energy Corp.* 13,200 933,900
=================================================================================
PACKAGE GOODS/COSMETICS .. 1.3%
- --------------------------------------------------------------------------------
Luxottica Group SPA ADR 31,100 2,503,550
=================================================================================
PHARMACEUTICALS .. 0.3%
- --------------------------------------------------------------------------------
Express Scripts, Inc.* 11,600 574,200
</TABLE>
16
<PAGE> 9
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
==================================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C>
POLLUTION CONTROL .. 1.9%
- ----------------------------------------------------------------------------------
Memtec Ltd. ADR 29,700 $ 813,038
Republic Industries, Inc.* 31,500 1,031,625
United Waste Systems, Inc.* 16,100 885,500
USA Waste Services, Inc.* 34,000 884,000
- ----------------------------------------------------------------------------------
Total Pollution Control 3,614,163
===================================================================================
PUBLISHING/ADVERTISING .. 0.3%
- ----------------------------------------------------------------------------------
PIA Merchandising Services, Inc.* 20,300 532,875
===================================================================================
RADIO, TELEVISION & BROADCASTING .. 0.8%
- ----------------------------------------------------------------------------------
Clear Channel Communications, Inc.* 23,600 1,598,900
===================================================================================
REAL ESTATE .. 1.1%
- ----------------------------------------------------------------------------------
Insignia Financial Group, Class A* 94,000 2,068,000
===================================================================================
REAL ESTATE INVESTMENT .. 0.3%
- ----------------------------------------------------------------------------------
Apartment Investment & Management Co., Class A 24,000 504,000
===================================================================================
RESTAURANTS .. 1.7%
- ----------------------------------------------------------------------------------
Lone Star Steakhouse & Saloon* 31,700 1,311,587
Outback Steakhouse, Inc.* 38,200 1,532,775
Starbucks Corp.* 11,100 301,088
- ----------------------------------------------------------------------------------
Total Restaurants 3,145,450
===================================================================================
RETAIL .. 2.7%
- ----------------------------------------------------------------------------------
Cooper & Chyan Technology, Inc.* 11,200 198,800
Just For Feet, Inc.* 22,200 1,062,825
Kenneth Cole Productions, Class A* 60,200 1,204,000
Sunglass Hut International, Inc.* 88,200 2,579,850
- ----------------------------------------------------------------------------------
Total Retail 5,045,475
</TABLE>
17
<PAGE> 10
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
=============================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- -----------------------------------------------------------------------------
<S> <C> <C>
SPECIALTY CHAINS .. 2.0%
- -----------------------------------------------------------------------------
Baby Superstore, Inc.* 11,250 $ 511,875
Barnett, Inc.* 7,500 176,250
CDW Computers Centers, Inc.* 15,300 1,183,837
Garden Ridge Corp.* 24,800 1,376,400
Petco Animal Supplies, Inc.* 8,000 230,000
Wilmar Industries, Inc.* 12,300 292,125
- -----------------------------------------------------------------------------
Total Specialty Chains 3,770,487
==============================================================================
TELECOMMUNICATIONS .. 6.9%
- -----------------------------------------------------------------------------
Arch Communications Group* 238,000 565,250
Aspect Telecommunications Corp.* 203,000 1,167,250
CAI Wireless Systems* 13,800 94,875
Cascade Communications Corp.* 22,950 2,300,738
Cidco, Inc.* 14,100 504,075
Coherent Communications System Corp.* 27,200 523,600
Colonial Data Technologies Corp.* 37,500 857,812
DSP Communications, Inc.* 57,800 2,297,550
Glenayre Technologies, Inc.* 35,725 1,661,212
Inter-Tel, Inc., Class A* 20,200 426,725
MRV Communications, Inc.* 21,900 908,850
P-Com, Inc.* 39,700 982,575
Pronet, Inc.* 9,500 300,438
Tel-Save Holdings, Inc.* 27,750 464,813
- -----------------------------------------------------------------------------
Total Telecommunications 13,055,763
==============================================================================
TELEPHONE .. 0.1%
- -----------------------------------------------------------------------------
TresCom International, Inc.* 6,500 125,125
</TABLE>
18
<PAGE> 11
P-I-C
SMALL CAP
PORTFOLIO
STATEMENT OF NET ASSETS as of April 30, 1996
<TABLE>
<CAPTION>
==============================================================================================
EQUITY SECURITIES, CONTINUED SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
TEXTILES & SHOES .. 2.5%
- ----------------------------------------------------------------------------------------------
Mossimo, Inc.* 2,600 $ 98,800
Tommy Hilfiger Corp.* 99,800 4,540,900
- ----------------------------------------------------------------------------------------------
Total Textiles & Shoes 4,639,700
- ----------------------------------------------------------------------------------------------
Total Common Stock (Cost $88,563,452) 174,988,255
<CAPTION>
==============================================================================================
SHORT-TERM INVESTMENTS - 7.2% PRINCIPAL AMOUNT
===============================================================================================
COMMERCIAL PAPER .. 5.8%
- ----------------------------------------------------------------------------------------------
American Express Credit Corp., 5.31%, 6/13/96 $3,000,000 3,000,000
Ford Motor Credit Co., 5.73%, 11/22/96 8,000,000 8,000,000
- ----------------------------------------------------------------------------------------------
Total Commercial Paper (Cost $11,000,000) 11,000,000
===============================================================================================
REPURCHASE AGREEMENT .. 1.4%
- ----------------------------------------------------------------------------------------------
Lehman Brothers On-Line Repurchase Agreement, 4.99%,
dated 4/30/96, due 5/1/96 (Collateralized by $2,746,118
U.S. Treasury Bill, 7.5%, due 10/3/96) (Cost $2,648,500) 2,648,500 2,648,500
- ----------------------------------------------------------------------------------------------
Total Investments (Cost $102,211,952) 100.2% 188,636,755
</TABLE>
19
<PAGE> 12
P-I-C STATEMENT OF NET ASSETS AS OF APRIL 30, 1996
SMALL CAP
PORTFOLIO
<TABLE>
<CAPTION>
================================================================================
VALUE
<S> <C>
- --------------------------------------------------------------------------------
OTHER ASSETS - 0.1%
- --------------------------------------------------------------------------------
Cash $ 6
Receivables:
For investment securities sold 187,500
Dividends and interest 11,373
Deferred organization costs 25,028
Other assets 13,254
- --------------------------------------------------------------------------------
Total other assets 237,161
================================================================================
LIABILITIES - (0.3%)
- --------------------------------------------------------------------------------
Payable for investment securities purchased 417,721
Accrued expenses 148,992
- --------------------------------------------------------------------------------
Total liabilities 566,713
================================================================================
TOTAL NET ASSETS - 100.0% $188,307,203
- --------------------------------------------------------------------------------
</TABLE>
*Non-incoming producing security.
Unaudited. See Notes to Financial Statements.
20
<PAGE> 13
P-I-C STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1996
SMALL CAP
PORTFOLIO
<TABLE>
<S> <C>
===============================================================================================
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------
Income:
- -----------------------------------------------------------------------------------------------
Dividends $ 44,880
Interest 223,236
Other 4,856
- -----------------------------------------------------------------------------------------------
Total income 272,972
===============================================================================================
Expenses:
- -----------------------------------------------------------------------------------------------
Investment advisory fee (Note 3) 594,232
Administration fees 74,279
Accounting services fee 37,503
Custodian fee 23,404
Auditing fee 7,458
Trustees' fees 8,503
Legal fee 2,486
Amortization of organization costs 4,972
Miscellaneous 6,552
- -----------------------------------------------------------------------------------------------
Total expenses 759,389
Less, reimbursement/waiver from Advisor (Note 3) (16,600)
- -----------------------------------------------------------------------------------------------
Net expenses 742,789
===============================================================================================
Net investment loss (469,817)
===============================================================================================
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
- -----------------------------------------------------------------------------------------------
Net realized gain from security transactions 9,181,404
Change in net unrealized appreciation of investments for the period 32,655,887
- -----------------------------------------------------------------------------------------------
Net gain on investments 41,837,291
===============================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $41,367,474
- -----------------------------------------------------------------------------------------------
</TABLE>
Unaudited. See Notes to Financial Statements.
21
<PAGE> 14
P-I-C STATEMENT OF CHANGES IN NET ASSETS
SMALL CAP
PORTFOLIO
<TABLE>
<CAPTION>
=================================================================================================
NET INCREASE IN NET ASSETS
- -------------------------------------------------------------------------------------------------
Six Months Year
ended ended
From operations: April 30, 1996 October 31,1995
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment loss $ (469,817) $ (488,788)
Net realized gain (loss) on investments 9,181,404 (792,768)
Change in unrealized appreciation of investments 32,655,887 39,983,109
- -------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 41,367,474 38,701,553
=================================================================================================
Transactions in interests:
Contributions by Holders 19,333,737 12,662,902
Withdrawals by Holders (2,726,025) (5,287,514)
- -------------------------------------------------------------------------------------------------
Net increase in net assets from transactions in interests 16,607,712 7,375,388
=================================================================================================
Total increase in net assets 57,975,186 46,076,941
=================================================================================================
NET ASSETS:
- -------------------------------------------------------------------------------------------------
Beginning of period 130,332,017 84,255,076
- -------------------------------------------------------------------------------------------------
End of period $188,307,203 $130,332,017
- -------------------------------------------------------------------------------------------------
</TABLE>
Unaudited. See Notes to Financial Statements.
22
<PAGE> 15
P-I-C NOTES TO FINANCIAL STATEMENTS April 30, 1996
SMALL CAP
PORTFOLIO
================================================================================
1 - ORGANIZATION
- --------------------------------------------------------------------------------
P-I-C Small Cap. Portfolio (the "Portfolio") was organized on March 22,
1993 as a trust under the laws of the State of New York. The beneficial
interests in the Portfolio are divided into an unlimited number of
non-transferable Interests, par value $.01 each. The Portfolio is registered
under the Investment Company Act of 1940 as an open-end, diversified management
investment company.
2 - SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following is a summary of significant accounting policies consistently
followed by the Portfolio. These policies are in conformity with generally
accepted accounting principles.
A. Valuation of Securities. Equity securities listed on a national
securities exchange or traded on the NASDAQ system are valued at
their last sale price. Other equity securities and debt securities
for which market quotations are readily available are valued at the
mean between their bid and asked price, except that debt securities
maturing within 60 days are valued on an amortized cost basis.
Securities for which market quotations are not readily available are
valued at fair value as determined in good faith by the Board of
Trustees.
B. Federal Income Taxes. The Portfolio intends to comply with the
requirements of the Internal Revenue Code applicable to it.
Therefore, no federal income tax provision is required.
C. Deferred Organization Expense. Organization costs of the Portfolio
are being amortized on a straight line basis over a period of sixty
months. During the amortization period the proceeds of any
redemption of the original Interests in the Portfolio by any Holder
thereof will be reduced by a pro rata portion of any then
unamortized organization costs based on the ratio of Interests
redeemed to the total initial Interests outstanding prior to the
redemption.
D. Other. Securities transactions are recorded on the trade date basis.
Realized gains and losses from securities transactions are reported
on an identified cost basis. Interest is recorded as accrued, and
dividend income is recorded on the ex-dividend date.
3 - TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
The Portfolio has entered into an investment advisory agreement with
Provident Investment Counsel, Inc. ("PIC") and an administration agreement with
Investment Company Administration Corporation ("ICAC"), pursuant to which
agreements certain employees of these entities serve as officers and/or trustees
of the Portfolio. PIC and ICAC also provide management services necessary for
the operations of the Portfolio and furnish office facilities.
PIC receives a fee for its services to the Portfolio at the rate of 0.80%
of the average daily net assets of the Portfolio. PIC has voluntarily agreed to
limit the total expenses of the Portfolio to an annual rate of 1.00% of the
Portfolio's average net assets. During the period ended April 30, 1996, PIC
received $577,632 in fees from the Portfolio, after deducting fees waived and
expenses reimbursed of $16,600. ICAC receives an annual fee for its services at
the rate of .10% of average daily net assets of the Portfolio. Fees paid to ICAC
pursuant to the agreement totalled $74,279 for the period ended April 30, 1996.
23
<PAGE> 16
P-I-C NOTES TO FINANCIAL STATEMENTS, continued
SMALL CAP
PORTFOLIO
================================================================================
4 - INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
During the period ended April 30, 1996, purchases and sales of investment
securities, other than short-term obligations, were $45,189,716 and $35,460,420,
respectively. The cost of securities for federal income tax purposes was
$102,211,952. The aggregate gross unrealized appreciation and depreciation of
portfolio securities, based on cost for federal income tax purposes, were as
follows:
<TABLE>
<S> <C>
Unrealized appreciation $87,340,785
Unrealized depreciation (915,982)
-----------
Net unrealized appreciation $86,424,803
===========
</TABLE>
5 - SELECTED RATIO DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Year September 30, 1993*
ended ended ended through
April 30, 1996 October 31, 1995 October 31, 1994 October 31, 1993
-------------- ---------------- ---------------- ------------------
<S> <C> <C> <C> <C>
Ratios to average net assets:++
Operating expenses 1.00%+ 1.00% 1.00% 1.00%+
Net investment loss (.63%)+ (.51%) (.49%) (.79%)+
Portfolio turnover rate 24.65% 45.45% 63.89% 6.06%
</TABLE>
+Annualized.
++Net of expense reimbursements equivalent to 0.02%, 0.07%, 0.10% and 0.11% of
average net assets, respectively.
*Commencement of Operations.
24
