<PAGE>
As filed with the Securities and Exchange Commission on April 23, 1998
Registration No. 33-83120
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------
FORM N-4
REGISTRATION STATEMENT UNDER SECURITIES ACT OF 1933 /X/
--
Pre-Effective Amendment No. /_/
Post-Effective Amendment No. 4 /X/
--
REGISTRATION STATEMENT UNDER THE INVESTMENT /X/
--
COMPANY ACT OF 1940
Amendment No. 4 /X/
--
--------------------------
PIA VARIABLE ANNUITY ACCOUNT I
(Exact Name of Registrant)
--------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
(Name of Depositor)
--------------------------
600 Dresher Road
Horsham, Pennsylvania 19044
(Address of Principal Executive Offices of Depositor)
Depositor's Telephone Number: (215) 956-9177
--------------------------
Richard F. Plush
Vice President, Products and Programs
The Penn Insurance and Annuity Company
600 Dresher Road
Horsham, Pennsylvania 19044
(Name and Address of Agent for Service)
Copy to:
Richard W. Grant
C. Ronald Rubley
Morgan, Lewis & Bockius LLP
2000 One Logan Square
Philadelphia, PA 19103-6993
--------------------------
It is proposed that this filing will become effective (check appropriate
box)
___ immediately upon filing pursuant to paragraph (b) of Rule
485
X on May 1, 1998 pursuant to paragraph (b) of Rule 485
---
___ 60 days after filing pursuant to paragraph (a) of Rule 485
___ on (date) pursuant to paragraph (a) of Rule 485
================================================================================
<PAGE>
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Location in Statement
Form N-4 Item Number Location in Prospectus of Additional Information
- ------------------- ---------------------- -------------------------
<S> <C> <C>
Item 1. Cover Page Cover Page N/A
Item 2. Definitions Special Terms N/A
Item 3. Synopsis or Highlights Cover Page; Expenses N/A
Item 4. Condensed Financial Information Performance Information N/A
Item 5. General Description of Registrant, The Penn Insurance and Annuity N/A
Depositor and Portfolio Companies Company; The Separate Account
Item 6. Deductions and Expenses The Contract - Charges N/A
Item 7. General Description of Variable The Contract N/A
Annuity Contracts
Item 8. Annuity Period The Contract - Annuity Payments N/A
Item 9. Death Benefit The Contract - Death Benefit N/A
Item 10. Purchases and Contract Value The Contract - Purchases; The Contract N/A
- Accumulations Units
Item 11. Redemptions The Contract - Withdrawals N/A
Item 12. Taxes Federal Income Tax Considerations N/A
Item 13. Legal Proceedings N/A N/A
Item 14. Table of Contents of Statement of Statement of Additional Information N/A
Additional Information Contents
Item 15. Cover Page N/A Cover Page
Item 16. Table of Contents N/A Cover Page
Item 17. General Information and History N/A N/A
Item 18. Services N/A Administrative and
Recordkeeping Services;
Custodian; Auditors
Item 19. Purchase of Securities Being The Contract - Purchases; Distribution of Contracts
Offered The Contract - Transfers;
The Contract - Charges
Item 20. Underwriters N/A Distribution of Contracts
Item 21. Calculation of Performance Data N/A Performance Data
Item 22. Annuity Payments N/A Variable Annuity Payments
Item 23. Financial Statements N/A Financial Statements
</TABLE>
<PAGE>
PART A
------
Information Required in a Prospectus
------------------------------------
<PAGE>
[LETTERHEAD OF PENN INSURANCE AND ANNUITY COMPANY APPEARS HERE]
- --------------------------------------------------------------------------------
May 1, 1998
Pennant
- --------------------------------------------------------------------------------
Profile of PIA Variable Annuity Account I
-------------------------------------------------------------------------
This profile is a summary of some of the more important points that you
should consider and know before purchasing the Contract. The Contract is
more fully described in the prospectus which accompanies this Profile.
Please read the prospectus carefully.
-------------------------------------------------------------------------
1. The Annuity Contracts
- --------------------------------------------------------------------------------
The Contract offered in this prospectus is a combination variable and fixed
annuity contract between you, the owner, and The Penn Insurance and Annuity
Company. The Contract provides a means for you to invest in one or more of the
available investment funds listed in Section 4, and/or one or more of the fixed
interest accounts guaranteed and funded by The Penn Insurance and Annuity
Company through its general account.
You determine (1) the amount and frequency of purchase payments, (2) the
investment funds, (3) transfers between the investment funds, (4) the type of
annuity to be paid after the accumulation period, (5) the beneficiary to whom
death benefits are to be paid, and (6) the amount and frequency of withdrawals.
Purchase payments and investment gains allocated to the variable acconts vary
up and down with the investment experience of the underlying investment funds.
The investment risk is high or low, depending on the variable account selected.
Refer to section 8 to see calendar year performance of the investment funds
which will show you the range of historical returns.
2. Annuity Payments
- --------------------------------------------------------------------------------
You may choose (1) an annuity for a specified number of years, (2) a life
annuity, (3) a life annuity with payments guaranteed for 10 or 20 years, (4) a
joint and survivor life annuity or (5) another form of an annuity that we may
agree upon. You may select any one of these as a variable annuity (except for a
specified number of years), a fixed annuity, or a combination of both.
3. Purchase
- --------------------------------------------------------------------------------
The Contract may be purchased by individuals, corporations and other business
associations. It may be purchased under retirement plans that qualify for
special tax treatment under the Internal Revenue Code (Qualified Plan), or as a
Non-Qualified Plan. The minimum initial purchase payment is $5,000 for all
Non-Qualified Plans and $2,000 for Qualified Plans. For both Plans, the minimum
subsequent purchase payment is $250.
4. Investment Options
- --------------------------------------------------------------------------------
Independence Capital Management, Inc.
Growth Equity Fund
Quality Bond Fund
Money Market Fund
OpCap Advisors
Value Equity Fund
Small Capitalization Fund
Morgan Stanley Asset Management Inc.
Emerging Markets Equity (Int'l) Portfolio
Fidelity Investments
VIP Equity Income Portfolio
VIP Growth Portfolio
VIP II Asset Manager Portfolio
VIP II Index 500 Portfolio
American Century Investment Management, Inc.
VP Capital Appreciation Portfolio
Vontobel USA, Inc.
International Equity Fund
Neuberger & Berman Management Incorporated
AMT Limited Maturity Bond Portfolio
AMT Balanced Portfolio
AMT Partners Portfolio
T. Rowe Price Associates, Inc.
Flexibly Managed Fund
High Yield Bond Fund
ICMI/Robertson Stephens
Emerging Growth Fund
<PAGE>
5. Expenses
- --------------------------------------------------------------------------------
Each year we deduct a contract administration charge of the lesser of $30 or 2%
of the variable account value, unless the variable account value is greater than
$50,000. We deduct a daily mortality and expense risk charge equal to an
annual rate of 1.25% of the daily net asset value of the variable account and a
daily administration charge equal to an annual rate of 0.15% of the daily net
asset value of the variable account. The investment funds underlying the
variable accounts also incur expenses, which range from 0.28% to 1.75% of the
fund's average daily value.
A contingent deferred sales charge may be deducted if you make a full or
partial withdrawal. No deferred sales charge will be made on the portion of the
first withdrawal that does not exceed 15% of total purchase payments. The
following table shows the schedule of the contingent deferred sales charge that
will apply:
-------------------------------------------------------
Number of Full Contract
Years Since Purchase Payment Applicable Charge
-------------------------------------------------------
0 6.0%
1 6.0%
2 5.0%
3 4.0%
4 3.0%
5 2.0%
6 1.0%
7 and later No Charge
-------------------------------------------------------
The following table is designed to help you understand the charges in your
Contract. The column "Total Annual Charges" shows the annual percentage charge
for contract administration (which is represented as .05%), insurance charges
and investment charges. The next columns show you two examples of the charges,
in dollars, you would pay under your Contract. The examples assume that you
invested $1,000 in a Contract which earns 5% annually and that you withdraw your
money at the end of the applicable period. The premium tax is assumed to be 0%
in both examples.
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
Examples:
Total Annual
Total Total Expenses at the
Annual Annual Total End of:
Insurance Portfolio Annual
Fund Charges Charges Charges 1 Year 10 Years
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Growth Equity 1.45% 0.77% 2.22% $69 $225
Value Equity 1.45 0.76 2.21 69 254
Flexibly Managed 1.45 0.76 2.21 69 254
Small Capitalization 1.45 0.85 2.30 70 263
Emerging Growth 1.45 1.15 2.59 72 293
International Equity 1.45 1.13 2.58 72 291
Quality Bond 1.45 0.75 2.20 69 253
High Yield Bond 1.45 0.81 2.26 69 259
Money Market 1.45 0.70 2.15 68 248
VP Capital Appreciation 1.45 1.00 2.45 71 278
AMT Limited Maturity Bond 1.45 0.77 2.22 69 255
AMT Balanced 1.45 1.04 2.49 71 282
AMT Partners 1.45 0.86 2.31 70 264
VIP Equity Income 1.45 0.57 2.02 67 234
VIP Growth 1.45 0.67 2.12 68 245
VIP II Asset Manager 1.45 0.64 2.09 68 241
VIP II Index 500 1.45 0.28 1.73 64 203
Emerging Markets Equity (Int'l) 1.45 1.75 3.20 78 350
---------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
6. Taxes
- --------------------------------------------------------------------------------
Your gains under the Contract are not taxed until you take them out. If you
take money out, you may be charged a 10% federal tax penalty on the earnings.
Payments during the income phase are considered partly a return of your original
investment. That part of each payment is not taxable as income.
7. Withdrawals
- --------------------------------------------------------------------------------
You may withdraw all or part of your money at any time during the accumulation
phase. Once in each contract year on or after the last day of the first
contract year you may withdraw up to 15% of the total purchase payments free of
the contingent deferred sales charge. A premature withdrawal charge may be
deducted from the money earned on the fixed interest accounts if you take the
money prior to maturity of your fixed interest account.
8. Performance
- --------------------------------------------------------------------------------
The value of your Contract will fluctuate depending upon the investment
performance of the fund(s) you choose. The following chart shows total returns
for each fund for the time periods shown. These numbers reflect t he insurance
company charges and the investment charges of the fund, but do not reflect any
withdrawal charges, which would reduce the performance if they were applied.
Past performance is no guarantee of the future results.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Calendar Year
Fund 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Independence Capital
Growth Equity 24.98% 18.08% 24.68% -9.42% 10.85% 4.46% 32.86% -12.38% 29.54% 5.38%
Quality Bond 6.52 2.67 18.46 -6.63 10.09 5.06 14.01 6.44 11.33 0.53
OpCap Advisors
Value Equity 23.20 23.40 35.55 1.48 5.57 13.24 25.87 -9.37 11.36 20.94
Small Capitalization 21.30 18.06 n/a n/a n/a n/a n/a n/a n/a n/a
T. Rowe Price
Flexibly Managed 13.99 14.68 20.57 2.67 14.17 8.02 19.88 -2.26 19.44 10.72
High Yield Bond 14.17 12.27 14.78 -8.64 18.09 14.16 35.10 -10.31 -1.99 10.13
ICMI/Robertson Stephens
Emerging Growth n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Vonotobel
International Equity 8.85 15.20 12.21 -7.63 36.19 n/a n/a n/a n/a n/a
American Century
VP Capital Appreciation -4.62 -5.68 29.26 -2.57 8.77 -2.74 39.89 -2.67 27.00 -8.40
Neuberger & Berman
AMT Limited Maturity Bond 5.25 2.84 9.38 -1.56 5.12 3.69 9.79 6.81 9.23 0.23
AMT Balanced 17.78 5.38 22.03 -4.72 4.55 6.53 20.96 0.52 n/a n/a
AMT Partners 29.59 28.32 35.16 n/a n/a n/a n/a n/a n/a n/a
Fidelity Investments
VIP Equity Income 26.29 12.64 32.36 4.96 16.63 15.24 29.57 -16.51 15.67 14.44
VIP Growth 21.72 13.05 33.47 -1.43 17.69 7.78 43.45 -13.01 29.64 7.72
VIP II Asset Manager 18.97 12.99 15.32 -7.42 19.53 10.13 20.85 5.23 n/a n/a
VIP II Index 500 31.14 21.52 35.87 0.07 8.68 n/a n/a n/a n/a n/a
Morgan Stanley
Emerging Markets Equity (Int'l) -1.10 n/a n/a n/a n/a n/a n/a n/a n/a n/a
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
9. DEATH BENEFIT
- --------------------------------------------------------------------------------
If you die prior to the Annuity Date we will pay the beneficiary the
greatest of (1) the Contract Value for the period that proof of death is
received, (2) the sum of the Fixed Account Value (if any) on the date that proof
of death is received and the net purchase payments and transfers allocated to
the Separate Account, or (3) if the contract owner dies before age 80, an
enhanced death benefit.
If you die after the Annuity Date, the beneficiary may elect to have the
payments continue for the specified or guaranteed period of to receive in lump
sum the present value of the remaining payments.
10. OTHER INFORMATION
- --------------------------------------------------------------------------------
Free Look. If you cancel your Contract within 10 days after receiving it
---------
(or whatever period is required in your state), we will send your money back
without assessing a withdrawal charge. You will receive whatever your Contract
is worth on the day we receive your request. This may be more or less than your
original payment.
No Probate. In most cases, when you die, the person you choose as your
----------
beneficiary will receive the death benefit without going through probate.
Systematic Withdrawals. You can arrange to have up to 15% of the total
----------------------
purchase payments automatically sent to you on a modal basis while your Contract
is still in the accumulation phase. Of course, you'll have to pay taxes on
money you receive.
Disability and Medically Related Surrenders. Under certain circumstances,
-------------------------------------------
you will have the ability to withdraw your money free from the contingent
deferred sales charge if you become disabled.
Dollar Cost Averaging. You can arrange to have a regular amount of money
---------------------
automatically invested in the investment funds monthly or quarterly.
Automatic Asset Rebalancing. You can elect to have your investments
---------------------------
automatically rebalanced on a quarterly basis to maintain a specified percentage
allocation among your selected investment funds, which will not include the
fixed interest accounts.
11. INQUIRIES
- --------------------------------------------------------------------------------
If you need more information, please contact us at:
The Penn Insurance and Annuity Company
Customer Service Group
Philadelphia, PA 19172
215-956-9177
<PAGE>
PROSPECTUS -- MAY 1, 1998
INDIVIDUAL VARIABLE AND FIXED ANNUITY CONTRACT--FLEXIBLE PURCHASE PAYMENTS
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I
THE PENN INSURANCE AND ANNUITY COMPANY
PHILADELPHIA, PENNSYLVANIA 19172 . TELEPHONE (215) 956-9177
- --------------------------------------------------------------------------------
This prospectus describes a combination variable and fixed annuity contract
offered by The Penn Insurance and Annuity Company (the "Company"). Through PIA
Variable Annuity Account I (the "Separate Account"), you may allocate amounts
invested under the Contract among one or more of the funds as set forth below:
<TABLE>
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
PENN SERIES FUNDS, INC. MANAGER
<S> <C>
Growth Equity Fund Independence Capital Management, Inc.
(a wholly owned subsidiary of The Penn Mutual
Life Insurance Company)
Value Equity Fund OpCap Advisors
Small Capitalization Fund OpCap Advisors
Emerging Growth Fund RS Investment Management, Inc.
Flexibly Managed Fund T. Rowe Price Associates, Inc.
International Equity Fund Vontobel USA, Inc.
Quality Bond Fund Independence Capital Management, Inc.
High Yield Bond Fund T. Rowe Price Associates, Inc.
Money Market Fund Independence Capital Management, Inc.
- ---------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. MANAGER
Capital Appreciation Portfolio American Century Investment Management, Inc.
- ---------------------------------------------------------------------------------------------------------
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST MANAGER
Balanced Portfolio Neuberger & Berman Management Incorporated
Limited Maturity Bond Portfolio Neuberger & Berman Management Incorporated
Partners Fund Portfolio Neuberger & Berman Management Incorporated
- ---------------------------------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCT FUND MANAGER
Equity-Income Portfolio Fidelity Management and Research Company
Growth Portfolio Fidelity Management and Research Company
- ---------------------------------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND II MANAGER
Asset Manager Portfolio Fidelity Management and Research Company
Index 500 Portfolio Fidelity Management and Research Company
- ---------------------------------------------------------------------------------------------------------
MORGAN STANLEY UNIVERSAL FUNDS, INC. MANAGER
Emerging Markets Equity (International) Portfolio Morgan Stanley Asset Management Inc.
- ---------------------------------------------------------------------------------------------------------
</TABLE>
In addition, you may also invest in fixed interest options in the Fixed
Account. The fixed interest options are funded through and are backed by the
Company's general account.
For many persons, a combination variable and fixed annuity contract may be an
attractive long-term investment vehicle. Its benefits include the manner in
which earnings on accumulated funds are taxed, the availability of multiple
investment options, and the provision of annuity and death benefit guarantees.
The Contract is not intended as a short-term investment vehicle. Early
withdrawals of purchase payments from the Contract may be subject to a
contingent deferred sales charge of up to 6%, and withdrawals by an owner
before age 59 1/2 may be subject to a 10% additional income tax.
For contracts sold in some states, not all Funds or fixed interest options
are available. Also, in some states, the number of years during which purchase
payments may be made to the Company is limited.
A Contract may be returned within ten days of receipt for a full refund of
the Contract Value (or purchase payments, if required under applicable law).
Longer free look periods apply in some states.
This prospectus sets forth concisely the information a prospective investor
should know before investing. It should be retained for future reference.
A statement of additional information dated the same as this prospectus has
been filed with the Securities and Exchange Commission and is incorporated
herein by reference. It is available, at no charge by writing The Penn
Insurance and Annuity Company, Customer Service Group, Philadelphia, PA 19172.
Or, you can call (215) 956-9177. The table of contents of the statement of
additional information is at the end of this prospectus.
THIS PROSPECTUS MUST BE ACCOMPANIED OR PRECEDED BY A CURRENT PROSPECTUS FOR
EACH APPLICABLE FUND.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
- --------------------------------------------------------------------------------
PROSPECTUS CONTENTS
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
SPECIAL TERMS............................................................... 3
- --------------------------------------------------------------------------------
EXPENSES.................................................................... 4
- --------------------------------------------------------------------------------
EXAMPLES OF FEES AND EXPENSES............................................... 6
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION............................................. 7
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY...................................... 11
- --------------------------------------------------------------------------------
THE SEPARATE ACCOUNT........................................................ 11
Penn Series Funds, Inc.................................................... 12
American Century Variable Portfolios, Inc................................. 12
Neuberger & Berman Advisers Management Trust.............................. 12
Fidelity Investments' Variable Insurance Products Fund.................... 13
Fidelity Investments' Variable Insurance Products Fund II................. 13
Morgan Stanley Universal Funds, Inc. ..................................... 13
- --------------------------------------------------------------------------------
VOTING RIGHTS............................................................... 13
- --------------------------------------------------------------------------------
THE CONTRACT................................................................ 13
Purchases................................................................. 14
Accumulation Units........................................................ 14
Annuity Payments.......................................................... 15
Death Benefit............................................................. 15
Transfers................................................................. 16
Dollar Cost Averaging................................................... 16
Automatic Rebalancing................................................... 16
Withdrawals............................................................... 16
Systematic Withdrawals.................................................. 16
403(b) Withdrawals...................................................... 17
Deferment of Payments and Transfers....................................... 17
Charges................................................................... 17
Administration Charges.................................................. 17
Mortality and Expense Risk Charge....................................... 17
Contingent Deferred Sales Charge........................................ 17
Free Withdrawals........................................................ 18
Premium Taxes........................................................... 18
Performance Information................................................... 18
- --------------------------------------------------------------------------------
THE FIXED INTEREST OPTIONS.................................................. 19
General Information....................................................... 19
Loans Under Section 403(b) Contracts...................................... 19
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX CONSIDERATIONS........................................... 20
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION CONTENTS................................ 22
- --------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
SPECIAL TERMS
As used in this prospectus, the following terms have the indicated meanings:
ACCUMULATION UNIT: A unit of measure used to compute the Variable Account
Value under the Contract prior to the Annuity Date.
ANNUITANT: The person during whose life annuity payments are made.
ANNUITY DATE: The date on which annuity payments start.
ANNUITY UNIT: A unit of measure used to calculate the amount of each
variable annuity payment.
BENEFICIARY: The person(s) named by the Contract Owner to receive the death
benefit payable upon the death of the Contract Owner or Annuitant.
CONTRACT: The combination variable and fixed annuity Contract described in
this prospectus.
CONTRACT OWNER: The person specified in the Contract as the Contract Owner.
CONTRACT VALUE: The sum of the Variable Account Value and the Fixed Account
Value.
FIXED ACCOUNT VALUE: The value of amounts held under the Contract in all
fixed interest options.
SEPARATE ACCOUNT: PIA Variable Annuity Account I, a separate account of The
Penn Insurance and Annuity Company that is registered as a unit investment
trust under the Investment Company Act of 1940.
VARIABLE ACCOUNT VALUE: The value of amounts held under the Contract in all
subaccounts of the Separate Account.
VALUATION PERIOD: The period from one valuation of Separate Account assets
to the next. Valuation is performed on each day the New York Stock Exchange
is open for trading.
WE: A reference to "we" or "us" denotes The Penn Insurance and Annuity
Company.
YOU: A reference to "you" denotes the Contract Owner or prospective
Contract Owner.
3
<PAGE>
- -------------------------------------------------------------------------------
EXPENSES
<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
CONTRACT OWNER TRANSACTION EXPENSES
Sales Load Imposed on Purchase Payments................... None
Maximum Contingent Deferred Sales Charge.................. 6% of purchase
payments withdrawn*
Exchange Fee.............................................. None
MAXIMUM ANNUAL CONTRACT ADMINISTRATION CHARGE............. $30
SEPARATE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF VARI-
ABLE ACCOUNT VALUE)
Mortality and Expense Risk Charge......................... 1.25%
Contract Administration Charge............................ 0.15%
------------------
Total Separate Account Annual Expenses.................... 1.40%
</TABLE>
- -----------------------
* See Charges in this prospectus for information on the decline in the
percentage charge over time and free withdrawals.
- -------------------------------------------------------------------------------
PENN SERIES FUNDS, INC.**
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
ADMINISTRATIVE
MANAGEMENT AND CORPORATE TOTAL
FEES (AFTER SERVICES FEES ACCOUNTING OTHER FUND
WAIVER) (AFTER WAIVER) FEES EXPENSES EXPENSES
----------- -------------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Growth Equity........... 0.50% 0.15% 0.07% 0.05% 0.77%
Value Equity............ 0.50% 0.15% 0.06% 0.05% 0.76%
Small Capitalization.... 0.50% 0.15% 0.10% 0.10% 0.85%
Emerging Growth......... 0.80% 0.15% 0.08% 0.12% 1.15%
Flexibly Managed........ 0.50% 0.15% 0.05% 0.06% 0.76%
International Equity.... 0.75% 0.15% 0.08% 0.15% 1.13%
Quality Bond............ 0.45% 0.15% 0.08% 0.07% 0.75%
High Yield Bond......... 0.50% 0.15% 0.08% 0.08% 0.81%
Money Market............ 0.40% 0.15% 0.08% 0.07% 0.70%
</TABLE>
- -----------------------
** The expenses presented are for the last fiscal year. In the absence of fee
waivers by the investment adviser and administrator of the Fund, the total
expenses of the Emerging Growth Fund would have been 1.41%.
- -------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEES 12B-1 FEES EXPENSES EXPENSES
---------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Capital Appreciation.................. 1.00% None None 1.00%
</TABLE>
- -------------------------------------------------------------------------------
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST***
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT,
ADVISORY AND
ADMINISTRATION OTHER TOTAL FUND
FEES EXPENSES EXPENSES
-------------- -------- ----------
<S> <C> <C> <C>
Limited Maturity Bond........................ 0.65% 0.12% 0.77%
Balanced..................................... 0.85% 0.19% 1.04%
Partners Fund................................ 0.80% 0.06% 0.86%
</TABLE>
- -----------------------
*** Neuberger & Berman Advisers Management Trust (the "Trust") is divided into
portfolios ("Portfolios"), each of which invests all of its net investable
assets in a corresponding series ("Series") of Advisers Managers Trust.
Expenses in the table reflect expenses of the Portfolios and include each
Portfolio's pro rata portion of the operating expenses of each Portfolio's
corresponding Series. The Portfolios pay Neuberger & Berman Management
Inc. ("NBMI") an administration fee based on the Portfolio's net asset
value. Each Portfolio's corresponding Series pays NBMI a management fee
based on the Series' average daily net assets. Accordingly, this table
combines management fees at the Series level and administration fees at
the Portfolio's level in a unified fee rate. Total Annual Expenses for
each portfolio have been restated based upon current administration fees
for the Portfolio and management fees for its corresponding Series. See
"Expenses" in the Trust's Prospectus.
4
<PAGE>
- -------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND++
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE EXPENSES EXPENSES
---------- -------- ----------
<S> <C> <C> <C>
Equity-Income.................................... 0.50% 0.07% 0.57%
Growth........................................... 0.60% 0.07% 0.67%
</TABLE>
- -----------------------
++ The expenses presented are for the last fiscal year. A portion of the bro-
kerage commissions the fund paid was used to reduce its expenses. Without
this reduction, total expenses would have been 0.58% for the Equity Income
Portfolio and 0.69% for the Growth Portfolio.
- -------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND II
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE EXPENSES EXPENSES
---------- -------- ----------
<S> <C> <C> <C>
++Asset Manager.................................. 0.55% 0.09% 0.64%
+++Index 500..................................... 0.24% 0.04% 0.28%
</TABLE>
- -----------------------
++ The expenses presented are for the last fiscal year. A portion of the bro-
kerage commissions the fund paid was used to reduce its expenses. Without
this reduction, total expenses would have been 0.65% for the Asset Manager
Portfolio.
+++ The expenses presented are for the last fiscal year. In the absence of
voluntary fee waivers by the investment adviser, total expenses would have
been 0.40% for the Index 500 Portfolio.
- -------------------------------------------------------------------------------
MORGAN STANLEY UNIVERSAL FUNDS, INC.
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEE EXPENSES EXPENSES
---------- -------- ----------
<S> <C> <C> <C>
Emerging Markets Equity (International).......... 1.25% 0.50% 1.75%
</TABLE>
- -------------------------------------------------------------------------------
The purpose of the foregoing table is to assist you in understanding the
various costs and expenses that you will bear directly and indirectly. The
table shows Contract expenses and underlying fund expenses. See the
prospectuses of Penn Series Funds, Inc., American Century Variable Portfolios,
Inc., Neuberger & Berman Advisers Management Trust, Fidelity Investments'
Variable Insurance Products Fund, Fidelity Investments' Variable Insurance
Products Fund II and Morgan Stanley Universal Funds, Inc. for additional
information on fund expenses.
Premium taxes may be applicable, but are not reflected in the tables above
or the examples below. See Charges in this prospectus.
5
<PAGE>
- --------------------------------------------------------------------------------
EXAMPLES OF FEES AND EXPENSES
The following examples illustrate the cumulative dollar amount of all the
above expenses that would be incurred on each $1,000 invested.
If you make a single purchase payment and surrender your Contract at the end
of the applicable period, you would pay the following expenses on each $1,000
invested, assuming a 5% annual return on assets.
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
Penn Series Growth Equity Fund.......................... $69 $119 $169 $255
Penn Series Value Equity Fund........................... $69 $118 $168 $254
Penn Series Small Capitalization Fund................... $70 $121 $173 $263
Penn Series Emerging Growth Fund........................ $72 $129 $188 $293
Penn Series Flexibly Managed Fund....................... $69 $118 $168 $254
Penn Series International Equity Fund................... $72 $129 $187 $291
Penn Series Quality Bond Fund........................... $69 $118 $168 $253
Penn Series High Yield Bond Fund........................ $69 $120 $171 $259
Penn Series Money Market Fund........................... $68 $117 $165 $248
American Century Capital Appreciation Portfolio......... $71 $125 $180 $278
Neuberger & Berman Limited Maturity Bond Portfolio...... $69 $119 $169 $255
Neuberger & Berman Balanced Portfolio................... $71 $126 $182 $282
Neuberger & Berman Partners Portfolio................... $70 $121 $173 $264
Fidelity's Equity Income Portfolio...................... $67 $113 $158 $234
Fidelity's Growth Portfolio............................. $68 $116 $163 $245
Fidelity's Asset Manager Portfolio...................... $68 $115 $162 $241
Fidelity's Index 500.................................... $64 $104 $143 $203
Morgan Stanley Emerging Markets Equity (International) $78 $146 $217 $350
Portfolio..............................................
</TABLE>
If you make a single purchase payment and either you do not surrender your
Contract or you annuitize your Contract at the end of the period,* you would
pay the following expenses on each $1,000 invested, assuming a 5% annual return
on assets:
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
Penn Series Growth Equity Fund.......................... $22 $69 $119 $255
Penn Series Value Equity Fund........................... $22 $69 $118 $254
Penn Series Small Capitalization Fund................... $23 $72 $123 $263
Penn Series Emerging Growth Fund........................ $26 $81 $138 $293
Penn Series Flexibly Managed Fund....................... $22 $69 $118 $254
Penn Series International Equity Fund................... $26 $80 $137 $291
Penn Series Quality Bond Fund........................... $22 $69 $118 $253
Penn Series High Yield Bond Fund........................ $23 $70 $121 $259
Penn Series Money Market Fund........................... $22 $67 $115 $248
American Century Capital Appreciation Portfolio......... $25 $76 $130 $278
Neuberger & Berman Limited Maturity Bond Portfolio...... $22 $69 $119 $255
Neuberger & Berman Balanced Portfolio................... $25 $77 $132 $282
Neuberger & Berman Partners Portfolio................... $23 $72 $123 $264
Fidelity's Equity Income Portfolio...................... $20 $63 $108 $234
Fidelity's Growth Portfolio............................. $21 $66 $113 $245
Fidelity's Asset Manager Portfolio...................... $21 $65 $112 $241
Fidelity's Index 500.................................... $17 $54 $ 93 $202
Morgan Stanley Emerging Markets Equity (International) $32 $98 $166 $350
Portfolio..............................................
</TABLE>
- -----------------------
* You may not annuitize your Contract until after the second Contract
anniversary.
The examples are based upon fund data for the fiscal year ended December 31,
1997.
THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES UNDER YOUR CONTRACT; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN
THOSE SHOWN.
6
<PAGE>
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
The following tables show Accumulation Unit values and the number of
Accumulation Units outstanding for each of the subaccounts of the Separate
Account for the specified periods. The financial data included in the tables
should be read in conjunction with the financial statements and the related
notes included in the Statement of Additional Information.
- --------------------------------------------------------------------------------
PENN SERIES GROWTH EQUITY FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $13.873 $11.747 $10.000
Accumulation Unit Value, end of period................. $17.339 $13.873 $11.747
Number of Accumulation Units outstanding, end of 403,911 140,629 13,923
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period March 1, 1995 (date subaccount was established) through
December 31, 1995
- --------------------------------------------------------------------------------
PENN SERIES VALUE EQUITY FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period......... $15.604 $12.640 $10.000
Accumulation Unit Value, end of period............... $19.230 $15.604 $12.640
Number of Accumulation Units outstanding, end of 1,768,950 916,524 177,701
period..............................................
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
PENN SERIES SMALL CAPITALIZATION FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $13.161 $11.145 $10.000
Accumulation Unit Value, end of period................. $15.966 $13.161 $11.145
Number of Accumulation Units outstanding, end of 673,274 353,352 55,394
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
PENN SERIES EMERGING GROWTH FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
- --------------------------------------------------------------------------------
1997(a)
- --------------------------------------------------------------------------------
<S> <C>
Accumulation Unit Value, beginning of period....................... $10.000
Accumulation Unit Value, end of period............................. $13.793
Number of Accumulation Units outstanding, end of period............ 184,859
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period May 1, 1997 (date subaccount was established) through
December 31, 1997.
7
<PAGE>
- --------------------------------------------------------------------------------
PENN SERIES FLEXIBLY MANAGED FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period....... $13.367 $11.649 $10.000
Accumulation Unit Value, end of period............. $15.245 $13.367 $11.649
Number of Accumulation Units outstanding, end of 4,704,147 2,989,155 591,562
period............................................
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
PENN SERIES INTERNATIONAL EQUITY FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $13.688 $11.880 $10.000
Accumulation Unit Value, end of period................. $14.902 $13.688 $11.880
Number of Accumulation Units outstanding, end of 880,235 525,885 54,604
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
PENN SERIES QUALITY BOND FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $11.531 $11.229 $10.000
Accumulation Unit Value, end of period................. $12.284 $11.531 $11.229
Number of Accumulation Units outstanding, end of 432,962 275,302 64,152
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
PENN SERIES HIGH YIELD BOND FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $12.315 $10.967 $10.000
Accumulation Unit Value, end of period................. $14.060 $12.315 $10.967
Number of Accumulation Units outstanding, end of 596,879 290,291 57,255
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
PENN SERIES MONEY MARKET FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $10.673 $10.310 $10.000
Accumulation Unit Value, end of period................. $11.066 $10.673 $10.310
Number of Accumulation Units outstanding, end of 709,094 609,075 186,641
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
8
<PAGE>
- --------------------------------------------------------------------------------
AMERICAN CENTURY CAPITAL APPRECIATION PORTFOLIO SUBACCOUNT(a)
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997(a) 1996 1995(b)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $12.092 $12.817 $10.000
Accumulation Unit Value, end of period................. $11.536 $12.092 $12.817
Number of Accumulation Units outstanding, end of 319,882 314,124 71,869
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a) TCI Growth Portfolio Subaccount prior to May 1, 1997.
(b) For the period March 1, 1995 (date subaccount was established) through
December 31,1995.
- --------------------------------------------------------------------------------
NEUBERGER & BERMAN LIMITED MATURITY BOND PORTFOLIO SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $10.995 $10.690 $10.000
Accumulation Unit Value, end of period................. $11.573 $10.995 $10.690
Number of Accumulation Units outstanding, end of 270,171 214,093 51,495
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
NEUBERGER & BERMAN BALANCED PORTFOLIO SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $12.282 $11.653 $10.000
Accumulation Unit Value, end of period................. $14.467 $12.282 $11.653
Number of Accumulation Units outstanding, end of 299,996 228,709 69,633
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
NEUBERGER & BERMAN PARTNERS PORTFOLIO SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
- --------------------------------------------------------------------------------
1997(a)
- --------------------------------------------------------------------------------
<S> <C>
Accumulation Unit Value, beginning of period....................... $10.000
Accumulation Unit Value, end of period............................. $12.399
Number of Accumulation Units outstanding, end of period............ 280,205
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period May 1, 1997 (date subaccount was established) through
December 31, 1997.
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' EQUITY INCOME FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period....... $14.199 $12.600 $10.000
Accumulation Unit Value, end of period............. $17.937 $14.199 $12.600
Number of Accumulation Units outstanding, end of 1,658,212 1,134,707 246,915
period............................................
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
9
<PAGE>
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' GROWTH FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period....... $14.791 $13.077 $10.000
Accumulation Unit Value, end of period............. $18.010 $14.791 $13.077
Number of Accumulation Units outstanding, end of 1,360,867 1,007,942 223,746
period............................................
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' ASSET MANAGER FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $12.968 $11.475 $10.000
Accumulation Unit Value, end of period................. $15.428 $12.968 $11.475
Number of Accumulation Units outstanding, end of 290,902 196,768 51,476
period................................................
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period March 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' INDEX 500 FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
- --------------------------------------------------------------------------------
1997(a)
- --------------------------------------------------------------------------------
<S> <C>
Accumulation Unit Value, beginning of period....................... $10.000
Accumulation Unit Value, end of period............................. $12.150
Number of Accumulation Units outstanding, end of period............ 352,855
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period May 1, 1997 (date subaccount was established) through
December 31, 1997.
- --------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY (INTERNATIONAL) FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
- --------------------------------------------------------------------------------
1997(a)
- --------------------------------------------------------------------------------
<S> <C>
Accumulation Unit Value, beginning of period....................... $10.000
Accumulation Unit Value, end of period............................. $8.966
Number of Accumulation Units outstanding, end of period............ 110,227
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period May 1, 1997 (date subaccount was established) through
December 31, 1997.
The financial statements of the Separate Account for the year ended December
31, 1997 are included in the statement of additional information referred to on
the cover page of this prospectus.
10
<PAGE>
- --------------------------------------------------------------------------------
In advertisements of the Contracts, Penn Mutual may provide information on
total return performance and on annual changes in accumulation unit values. We
may also provide information on "yields" and "effective yields" on investments
in the Money Market Fund subaccount.
Information on total return performance will include average annual rates of
total return for one, five and ten year periods, or lesser periods depending on
how long the subaccount has been in existence. Average annual total return
figures will show the average annual rates of increase or decrease in
investments in the subaccounts, assuming a $1,000 investment at the beginning
of the period, withdrawal of the investment at the end of the period, and the
deduction of all applicable charges. We may also show average annual rates of
total return, assuming other amounts invested at the beginning of the period
and no withdrawal at the end of the period. Average annual total return figures
which assume no withdrawal at the end of the period will reflect all recurring
charges, but will not reflect the contingent deferred sales charge (if
applicable, the contingent deferred sales charge would reduce the amount that
may be withdrawn under the Contracts).
The "yield" on an investment in the Money Market Fund subaccount refers to
the income generated by the investment over a 7-day period. This income is then
annualized. That is, the amount of income generated by the investment during
that week is assumed to be generated each week over a 52-week period and is
shown as a percentage of the investment. The "effective yield" is calculated
similarly but, when annualized, the income earned by an investment in the
subaccount is assumed to be reinvested. The effective yield will be slightly
higher than the yield because of the compounding effect of this assumed
reinvestment.
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
The Penn Insurance and Annuity Company (the "Company") is a Delaware stock life
insurance company. The Company is a wholly-owned subsidiary of The Penn Mutual
Life Insurance Company ("Penn Mutual"), a Pennsylvania mutual life insurance
company that has been in the life insurance business since 1847. The Company is
licensed to sell insurance and annuities in 47 states and the District of
Columbia. The Company's financial statements appear in the statement of
additional information.
- --------------------------------------------------------------------------------
THE SEPARATE ACCOUNT
PIA Variable Annuity Account I was established as a separate account of the
Company on July 13, 1994. The Separate Account is registered with the
Securities and Exchange Commission as a unit investment trust under the
Investment Company Act of 1940.
The Separate Account is divided into subaccounts for investments in shares of
different mutual funds. Income, gains and losses, realized or unrealized, of a
subaccount are credited to or charged against the subaccount without regard to
any other income, gains or losses of the Company. Assets equal to the reserves
and other contract liabilities with respect to each subaccount are not
chargeable with liabilities arising out of any other business of the Company.
The Company is obligated to pay all benefits and make all payments provided
under the Contracts.
Amounts allocated or transferred to the Separate Account under the Contracts
are invested, at the direction of the Contract Owner, in one or more funds of
Penn Series Funds, Inc., American Century Variable Portfolios, Inc., Neuberger
& Berman Advisers Management Trust, Fidelity Investments' Variable Insurance
Products Fund, Fidelity Investments' Variable Insurance Products Fund II and
Morgan Stanley Universal Funds, Inc.
The mutual funds have shareholders other than the Separate Account. Shares of
Penn Series Funds, Inc. are also sold to Penn Mutual and other separate
accounts of Penn Mutual that fund benefits under variable annuity and variable
life insurance contracts. Shares of American Century Variable Portfolios, Inc.,
Neuberger & Berman Advisers Management Trust, Fidelity Investments' Variable
Insurance Products Fund, Fidelity Investments' Variable Insurance Products Fund
II and Morgan Stanley Universal Funds, Inc. are sold to variable annuity and
variable life separate accounts of Penn Mutual, such accounts of other
insurance companies and, in the case of Neuberger & Berman Advisers Management
Trust, directly to qualified pension and retirement plans. Each mutual fund
will monitor events to identify any material conflicts that might arise between
the Separate Account and its other shareholders. See the accompanying
prospectuses of the funds for information on their monitoring for conflicts.
Like other business organizations and individuals around the world, the
Separate Account could be adversely affected if the computer systems do not
properly process and calculate date-related information from and after January
1, 2000. This is commonly known as the "Year 2000 Problem." Penn Insurance and
Annuity is taking steps that it believes are reasonably designed to address the
Year 2000 Problem with respect to the computer systems that it uses and to
obtain satisfactory assurances that comparable steps are being taken by the
Separate Account's major service providers. At this time, however, there can be
no assurance that these steps will be sufficient to avoid any adverse impact on
the Separate Account.
11
<PAGE>
- --------------------------------------------------------------------------------
PENN SERIES FUNDS, INC.:
GROWTH EQUITY FUND - seeks long term growth of capital and increase of future
income by investing primarily in common stocks of well established growth
companies;
VALUE EQUITY FUND - seeks to maximize total return (capital appreciation and
income) primarily by investing in equity securities of companies believed to be
undervalued considering such factors as assets, earnings, growth potential and
cash flows;
SMALL CAPITALIZATION FUND - seeks capital appreciation through investment in
a diversified portfolio of securities consisting primarily of equity securities
of companies with market capitalizations under $1 billion;
EMERGING GROWTH FUND - seeks capital appreciation by investing primarily in
common stocks of emerging growth companies with above-average growth prospects;
FLEXIBLY MANAGED FUND - seeks to maximize total return (capital appreciation
and income) by investing in common stocks, other equity securities, corporate
debt securities, and/or short term reserves, in proportions considered
appropriate in light of the availability of attractively valued individual
securities and current and expected economic and market conditions;
INTERNATIONAL EQUITY FUND - seeks to maximize capital appreciation by
investing in a carefully selected diversified portfolio consisting primarily of
equity securities. The investments will consist principally of equity
securities of European and Pacific Basin countries;
QUALITY BOND FUND - seeks the highest income over the long term consistent
with the preservation of principal through investment primarily in marketable
investment grade debt securities;
HIGH YIELD BOND FUND - seeks high current income by investing primarily in a
diversified portfolio of long term high-yield/high-risk fixed income securities
in the medium to lower quality ranges; capital appreciation is a secondary
objective; such securities, which are commonly referred to as "junk" bonds,
generally involve greater risks of loss of income and principal than higher
rated securities (see accompanying Penn Series prospectuses);
MONEY MARKET FUND - seeks to preserve capital, maintain liquidity and achieve
the highest possible level of current income consistent therewith, by investing
in high quality money market instruments; an investment in the Fund is neither
insured nor guaranteed by the U.S. Government and there can be no assurance
that the fund will be able to maintain a stable net asset value of $1.00 per
share.
Independence Capital Management, Inc., Horsham, Pennsylvania is investment
adviser to each of the Funds. OpCap Advisors, New York, New York, is investment
sub-adviser to the Value Equity and Small Capitalization Funds. T. Rowe Price
Associates, Baltimore, Maryland, is investment sub-adviser to the Flexibly
Managed and High Yield Bond Funds. Vontobel USA, Inc., New York, New York, is
investment sub-adviser to the International Equity Fund. RS Investment
Management, Inc., San Francisco, California, is investment sub-adviser to the
Emerging Growth Fund.
- --------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.:
CAPITAL APPRECIATION PORTFOLIO - seeks capital growth by investing primarily
in common stocks believed to have better-than-average prospects for
appreciation.
American Century Investment Management, Inc., Kansas City, Missouri, is
investment adviser to the Capital Appreciation Portfolio.
- --------------------------------------------------------------------------------
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST:
LIMITED MATURITY BOND PORTFOLIO - seeks highest current income consistent
with low risk to principal and liquidity, primarily by investing in a
diversified portfolio of limited maturity debt securities. A secondary
objective is capital appreciation.
BALANCED PORTFOLIO - seeks long-term capital growth and reasonable current
income without undue risk to principal through investment of a portion of its
assets in common stock and a portion in debt securities.
PARTNERS PORTFOLIO - seeks capital growth by investing primarily in common
stocks of established companies, using the value oriented investment approach.
Neuberger & Berman reserves the right to make changes in the investment
objective, but will notify shareholders thirty days in advance of any proposed
material change.
Neuberger & Berman Management Incorporated, New York, New York, is investment
adviser to the Limited Maturity Bond Portfolio, the Balanced Portfolio and the
Partners Portfolio.
12
<PAGE>
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO - seeks reasonable income by investing primarily in
income-producing equity securities. In choosing these securities, the fund will
also consider the potential for capital appreciation. The fund's goal is to
achieve a yield which exceeds the composite yield on the securities comprising
the Standard & Poor's 500 Composite Stock Price Index.
GROWTH PORTFOLIO - seeks to achieve capital appreciation. The fund normally
purchases common stocks, although its investments are not restricted to any one
type of security. Capital appreciation may also be found in other types of
securities, including bonds and preferred stocks.
Fidelity Management & Research Company, Boston, Massachusetts, is investment
adviser to the Equity-Income Portfolio and the Growth Portfolio.
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND II:
ASSET MANAGER PORTFOLIO - seeks high total return with reduced risk over the
long-term by allocating its assets among domestic and foreign stocks, bonds and
short-term fixed income investments.
INDEX 500 PORTFOLIO - seeks to match the total return of the S&P 500 while
keeping expenses low. The S&P 500 is an index of 500 common stocks, most of
which trade on the New York Stock Exchange.
Fidelity Management & Research Company, Boston, Massachusetts, is investment
adviser to the Asset Manager Portfolio and the Index 500 Portfolio.
- --------------------------------------------------------------------------------
MORGAN STANLEY UNIVERSAL FUNDS, INC.:
EMERGING MARKETS EQUITY (INTERNATIONAL) PORTFOLIO - seeks long term capital
appreciation by investing primarily in equity securities of emerging market
country issuers. The Portfolio will focus on economies which are developing
strongly and in which the markets are becoming more sophisticated.
Morgan Stanley Asset Management Inc., New York, New York, is investment
adviser to the Emerging Markets Equity (International) Portfolio.
- --------------------------------------------------------------------------------
FOR MORE INFORMATION ON THE MUTUAL FUNDS IN WHICH THE SUBACCOUNTS INVEST, SEE
THE PROSPECTUSES FOR PENN SERIES FUNDS, INC., AMERICAN CENTURY VARIABLE
PORTFOLIOS, INC., NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST, FIDELITY
INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND, FIDELITY INVESTMENTS' VARIABLE
INSURANCE PRODUCTS FUND II, AND MORGAN STANLEY UNIVERSAL FUNDS, INC. YOU SHOULD
READ THE PROSPECTUSES FOR THE FUNDS IN WHICH YOU ARE INTERESTED BEFORE
INVESTING.
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VOTING RIGHTS
Under the Investment Company Act of 1940 as currently interpreted, Contract
Owners have the right to instruct the Company as to the voting of the shares of
the mutual funds held in the subaccounts of the Separate Account pursuant to
the Contracts. The number of shares of a fund for which voting instructions may
be given prior to the Contract Annuity Date is determined by dividing the
Contract Owner's interest in the applicable subaccount of the Separate Account
by the net asset value per share of the fund. The number of shares of a fund
for which voting instructions may be given after the Contract Annuity Date is
determined by dividing the reserve allocated to the applicable subaccount by
the net asset value per share of the fund. Should the applicable law, or
interpretations thereof, change so as to permit us to vote shares of the mutual
funds in our own right, we may elect to do so. Further, we reserve the right to
modify the manner in which we calculate the weight to be given to pass-through
voting instructions where such a change is necessary to comply with federal law
or interpretations thereof.
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THE CONTRACT
The Contract described in this prospectus is a combination variable and fixed
annuity contract. The Contract provides for investment, through subaccounts of
the Separate Account, in one or more of the available funds of Penn Series
Funds, Inc., American Century Variable Portfolios, Inc., Neuberger & Berman
Advisers Management Trust, Fidelity Investments' Variable Insurance Products
Fund, Fidelity Investments' Variable Insurance Products Fund II and Morgan
Stanley Universal Funds, Inc.
13
<PAGE>
It also provides for investment in one or more fixed interest accounts. The
fixed interest accounts are guaranteed and funded by the Company through its
general account. See THE FIXED INTEREST OPTIONS in this prospectus.
As the Contract Owner, you determine, within Contract limits (1) the amount
and frequency of the purchase payments to be made to the Company, (2) the
investment options to which the purchase payments are to be allocated, (3)
transfers among investment options, (4) the form of annuity to be paid after
the accumulation period and the person to whom it is to be paid, (5) the
beneficiary to whom death benefits are to be paid, and (6) the amount and
frequency of withdrawals from the Contract Value. Currently, for Contracts sold
in Oregon, New Jersey and Washington, purchase payments may be made only during
the first three contract years.
During the variable annuity payout period, you (or the beneficiary in the
event of your death or the Annuitant's death) may transfer Annuity Unit values
among subaccounts of the Separate Account.
Upon the earlier of the death of the Contract Owner (other than a trustee) or
Annuitant prior to the Annuity Date, the beneficiary may elect to receive a
death benefit in a lump sum or in the form of an annuity. A spousal beneficiary
may elect to become the Owner of the Contract.
The Contract may be amended at any time to conform to applicable laws or
governmental regulations. If, in our judgment, investment in any of the mutual
funds becomes inappropriate to the purposes of the Contract, we may, with
approval of the Securities and Exchange Commission and the governing state
insurance department, substitute another fund for existing and future
investments.
Contract Owner inquiries may be made by writing The Penn Insurance and
Annuity Company, Customer Service Group, Philadelphia, PA 19172. Or, you can
call (215) 956-9177.
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PURCHASES
To purchase a Contract, your completed application, together with a check for
the first purchase payment, should be forwarded to our administrative office.
Normally, a completed application form received at our administrative office
will be accepted within two business days. If an incomplete application is not
completed and acted upon within five business days, the purchase payment will
be returned to you unless you request that we retain it while you complete the
application. All subsequent purchase payments are sent directly to our
administrative office.
The minimum initial purchase payment is $5,000 for all non-qualified
contracts and $2,000 for individual retirement annuities under Section 408 of
the Internal Revenue Code and for tax deferred annuities under Section 403(b)
of the Code. For all Contracts, the minimum subsequent purchase payment that
will be accepted is $250. We may, in our discretion, reduce the minimum
requirements for initial and subsequent purchase payments. We will accept total
purchase payments under your Contract of up to $1 million. Total purchase
payments in excess of $1 million require our prior approval.
Purchase payments allocated to the Separate Account are credited in the form
of Accumulation Units of the subaccount selected. The number of Accumulation
Units credited is determined by dividing the purchase payment allocated to the
Separate Account by the value of the Accumulation Unit at the end of the
valuation period in which the purchase payment is received at our
administrative office or, in a case of the first purchase payment, is accepted
by us.
The principal underwriter of the Contract (under federal securities laws) is
Hornor, Townsend & Kent, Inc., 600 Dresher Road, Horsham, PA 19044, a wholly-
owned subsidiary of Penn Mutual.
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ACCUMULATION UNITS
For each subaccount of the Separate Account the value of an Accumulation Unit
will be $10 when the subaccount commences operation. The value of an
Accumulation Unit may increase or decrease from one valuation period to the
next.
The value of an Accumulation Unit for a valuation period is determined by
multiplying the value of an Accumulation Unit for the prior valuation period by
the net investment factor for the subaccount for the current valuation period.
The net investment factor is a measure of (1) investment performance of
mutual fund shares held in the subaccount, (2) any taxes on income or gains
from investments held in the subaccount and (3) the mortality and expense risk
charge at an annual rate of 1.25% and contract administration charge at an
annual rate of 0.15% assessed against the subaccount. Under current law, no
taxes are levied against income or gain from investments held in a subaccount.
14
<PAGE>
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ANNUITY PAYMENTS
You may choose one of the following forms of annuity: (1) an annuity for a
specified number of years, (2) a life annuity, (3) a life annuity with payments
guaranteed for 10 or 20 years, (4) a joint and survivor life annuity or (5)
such other form of annuity as we may agree upon. You may select any one of
these forms of annuity as a variable annuity (except for a specified number of
years), a fixed annuity, or a combination of both.
The level of the variable annuity payments is determined by various factors,
including the amount accumulated and applied under the Contract to the variable
annuity, the form of annuity chosen, the expected duration of the annuity
period, the performance of the applicable investment options, and the annuity
purchase rates and charges specified in the Contract.
The variable annuity purchase rates assume an annual net investment return of
3%. If the annual net investment return during the annuity payout period is
greater than 3%, the level of the annuity payment increases. If the annual net
investment return is less than 3%, the level of the annuity payments decreases.
The level of fixed annuity payments under a Contract is determined by various
factors, including the amount accumulated and applied under the Contract to the
fixed annuity, the form of annuity chosen, the expected duration of the annuity
period, and current annuity purchase rates for single premium nonparticipating
fixed annuity contracts issued by the Company.
Unless you specify otherwise, you or such other person you designate will
receive a life annuity with payments guaranteed for 10 years, except for tax
deferred annuities under Section 403(b) of the Code and pension or profit
sharing plans under Section 401 of the Code. Annuitants under those Contracts
will receive a joint and survivor annuity. Unless you specify otherwise, the
annuity will be split between fixed and variable in the same proportions as the
Contract Value on the Annuity Date.
Unless you specify otherwise, the Annuity Date will be the later of (1) the
first day of the next month after the Annuitant's 85th birthday or (2) 10 years
after the contract date, unless state law requires an earlier Annuity Date. The
Annuity Date under the Contract may not be earlier than the second contract
anniversary and must be on the first day of a month.
You may change the Annuity Date or annuity option by giving written notice at
our administrative office at least 30 days prior to the current Annuity Date.
If the Contract Value of a Contract is less than $5,000, we may elect to pay
such amount in a lump sum in place of an annuity. Annuity payments are
generally monthly, starting with the Annuity Date, but may also be made
quarterly, semiannually or annually at your request. However, if any payment
would be less than $50, we may change the frequency of annuity payments so that
payments are at least $50 each.
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DEATH BENEFIT
If the Contract Owner or the Annuitant dies prior to the Annuity Date, we
will pay the beneficiary the greater of (1) the Contract Value for the
valuation period in which proof of death and any other required information
needed to make payment is received at our administrative office; or (2) the sum
of the Fixed Account Value on the date the above information is received at our
administrative office and the net purchase payments and transfers allocated to
the Separate Account (i.e., all purchase payments and transfers to the Separate
Account minus all prior withdrawals and transfers made from the Separate
Account). The death benefit generally will be paid within 7 days after the
Company has sufficient information to make the payment. For a discussion of the
tax treatment of a death benefit, see FEDERAL INCOME TAX CONSIDERATIONS in this
prospectus.
If the Contract Owner dies before the age of 80 and if permitted by state
law, an enhanced death benefit will be paid to the beneficiary, if it is
greater than the Contract Value as of the receipt of proof of death and the
necessary information to make a death benefit payment. The enhanced death
benefit is the sum of: (1) the Fixed Account Value, and (2) the net purchase
payments allocated to the Separate Account (as defined in the previous
paragraph) plus interest accumulated at an annual interest rate of 5% through
the Contract Owner's attained age 69, and interest accumulated at an annual
interest rate of 3% for years subsequent to attained age 70.
If the beneficiary is the Contract Owner's surviving spouse, the surviving
spouse has the right to become the Contract Owner rather than receive the death
benefit.
Within one year of the date of death, the beneficiary may elect to receive
the death benefit in single sum or in the form of an annuity. If payment is to
be received in a single sum, it must be paid within five years of the date of
death (until paid out, the death benefit will be allocated to subaccounts of
the Separate Account and/or fixed interest options as directed by the
beneficiary). If an annuity is selected, payments must commence within one year
of the date of death and must be made over the beneficiary's life or over a
period not longer than the beneficiary's life expectancy. If an election is not
made within one year of the date of death, the death benefit will be paid to
the beneficiary in a single sum.
If the Annuitant dies on or after the Annuity Date and the annuity is for a
specified number of years or for life with payments guaranteed for 10 or 20
years, the beneficiary may elect to have the payments continue for the
specified or guaranteed period or to receive in lump sum the present value of
the remaining payments.
15
<PAGE>
You may designate a beneficiary in your application. You may change the
beneficiary at any time before your death or the death of the Annuitant,
whichever occurs first.
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TRANSFERS
Prior to the Annuity Date, you may transfer amounts from one subaccount of
the Separate Account to another subaccount of the Separate Account. Within
certain additional limitations stated in the Contract, you may also transfer
amounts from the subaccounts of the Separate Account to a fixed interest option
of the Fixed Account prior to the Annuity Date. Transfers may be made from the
Fixed Account to the Variable Account or to another fixed interest option
within the Fixed Account only at the completion of the interest period or
within the 25 days thereafter.
After the Annuity Date and during an annuity payout period, you may transfer
amounts (upon which the annuity payments are based) from one subaccount of the
Separate Account to another. Upon your death or the death of the Annuitant, a
beneficiary who is receiving annuity payments may transfer amounts among the
subaccounts of the Separate Account.
Transfers will be based on values at the end of the valuation period in which
the transfer request is received at our service office.
The minimum amount that may be transferred is $250 or, if less, the amount
held in the subaccount or fixed interest option. In the case of partial
transfers, the amount remaining in the subaccount or fixed interest option must
be at least $250.
A request for transfer must be received at our service office and all other
administrative requirements for transfer must be met to make the transfer. The
Separate Account and the Company will not be liable for following instructions
communicated by telephone that we reasonably believe to be genuine. We require
certain personal identifying information to process a request for transfer made
over the telephone.
DOLLAR COST AVERAGING: If you have a Contract Value of at least $10,000, you
may elect to have flat dollar amounts ($100 minimum) transferred monthly or
quarterly from one source account to other accounts ($50 minimum per account).
These transfers may be made only from one of the following accounts: Money
Market Subaccount, Limited Maturity Bond Subaccount, Quality Bond Subaccount,
or One Year Fixed Interest Option. The dollar cost averaging term may run from
12 to 60 months, or until you give notice of a change in allocation or
cancellation of the feature.
AUTOMATIC REBALANCING: You may elect to have your investments in subaccounts
of the Separate Account automatically rebalanced. We will transfer funds under
your Contract on a quarterly (calendar) basis among the subaccounts to maintain
a specified percentage allocation among your selected variable investment
options. Dollar cost averaging and automatic rebalancing may not be in effect
at the same time.
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WITHDRAWALS
Prior to the Annuity Date and prior to the earlier of the death of the
Contract Owner and Annuitant, you may withdraw all or part of your Contract
Value. Withdrawals will be based on values at the end of the valuation period
in which a proper written request for withdrawal (and the Contract, in case of
a full withdrawal) is received at our administrative office. Payment will
normally be made within seven days of receipt of the written request and the
Contract, if required. A withdrawal may result in certain tax consequences,
including an additional 10% tax under certain circumstances. For a discussion
of the tax treatment of withdrawals, see FEDERAL INCOME TAX CONSIDERATIONS in
this prospectus.
The minimum withdrawal is $500 or, at the time of the first withdrawal in
each Contract Year, 15% of total purchase payments if less. A partial
withdrawal may be made from a subaccount of the Separate Account only if the
amount remaining in the subaccount is at least $250. If you request a partial
withdrawal without specifying allocation of the withdrawal among investment
options, it will be taken pro rata from the variable subaccounts; if the
partial withdrawal exhausts your Variable Account Value, then any remaining
withdrawal will be taken from the fixed interest options beginning with the One
Year Fixed Interest Option and continuing with the other fixed interest options
in order of ascending duration.
SYSTEMATIC WITHDRAWALS: You may make a request for a systematic withdrawal if
there is no previous withdrawal in the current contract year. The maximum value
of a systematic withdrawal request is 15% of total purchase payments at the
time of the request. A level systematic withdrawal will begin one modal period
after the date of receipt of the request. The systematic withdrawals may be
made on a monthly, quarterly, semiannual or annual basis. The minimum Contract
Value that is eligible for a systematic withdrawal is $25,000, and the minimum
amount of each withdrawal payment is $50. Payments can be made of either a
fixed dollar amount or of a fixed percentage of purchase payments. The latter
option provides a convenient way to take advantage of the ability to withdraw a
limited percentage of purchase payments without incurring a contingent deferred
sales charge. See FREE WITHDRAWALS below. For a discussion of the tax treatment
of withdrawals, see FEDERAL INCOME TAX CONSIDERATIONS in this prospectus.
16
<PAGE>
403(B) WITHDRAWALS: With respect to Contracts qualifying under Section 403(b)
of the Internal Revenue Code, there are certain restrictions on withdrawals.
Withdrawals may be made only if the Contract Owner is over the age of 59 1/2,
leaves the employment of the employer, dies, or becomes disabled as defined in
the Code. Withdrawals (other than withdrawals attributable to income earned on
purchase payments) may also be possible in the case of hardship as defined in
the Code. The restrictions do not apply to transfers among subaccounts and may
also not apply to transfers to other investments qualifying under Section
403(b). For a discussion of the tax treatment of withdrawals under Section
403(b) Contracts, see FEDERAL INCOME TAX CONSIDERATIONS in this prospectus.
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DEFERMENT OF PAYMENTS AND TRANSFERS
We reserve the right to defer a withdrawal, a transfer of values or annuity
payments funded by the Separate Account if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings); (b) trading on the
Exchange is restricted; (c) an emergency exists such that it is not reasonably
practical to dispose of securities held in the Separate Account or to determine
the value of its assets; or (d) the Securities and Exchange Commission by order
so permits for the protection of investors. Conditions described in (b) and (c)
will be decided by, or in accordance with rules of, the Commission.
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CHARGES
ADMINISTRATION CHARGES: Charges are assessed to reimburse us for the expenses
we incur in administering the Contract and the Separate Account. First, on each
Contract Anniversary prior to the Annuity Date (and any other date the Variable
Account Value is reduced to zero through withdrawal or transfer), we deduct
from the Variable Account Value a contract administration charge of $30 or, if
less, 2% of the Variable Account Value. We will not, however, deduct this
charge if the Variable Account Value is greater than $50,000. The charge is
made by canceling Accumulation Units credited to the Contract, with the charge
allocated pro rata among the subaccounts comprising the Variable Account Value.
Second, we deduct from the Separate Account a daily administration charge equal
to an effective annual rate of 0.15% of the daily net asset value of the
Separate Account. These administration charges are guaranteed not to increase
and are intended to cover our average anticipated administration expenses over
the periods the Contracts are in force.
MORTALITY AND EXPENSE RISK CHARGE: We deduct a daily mortality and expense
risk charge equal to an effective annual rate of 1.25% of the daily net asset
value of the Separate Account. This charge is to compensate us for the
mortality-related guarantees we make under the Contract (e.g., the death
benefit and the guarantee that the annuity factors will never be decreased even
if mortality experience is substantially different than originally assumed),
and for the risk that our administration charges will be insufficient to cover
administration expenses over the life of the Contracts. The mortality and
expense risk charge is assessed during both the accumulation and variable
annuity pay-out phases of the Contract.
CONTINGENT DEFERRED SALES CHARGE: A contingent deferred sales charge may be
deducted in the event of full or partial withdrawal from the Contract Value
prior to the Annuity Date. This charge is made to cover sales expenses that we
have incurred. Sales expenses which are not covered by the deferred sales
charge are paid from the surplus of the Company, which may include proceeds
from the mortality and expense risk charge.
A contingent deferred sales charge, if applicable, will be imposed only on a
withdrawal of a purchase payment in cases where the purchase payment was made
within seven years of the date of the withdrawal. The following table shows the
schedule of the contingent deferred sales charge that will be applied to
withdrawal of a purchase payment, after allowing for the free withdrawals which
are described in the next subsection. Purchase payments will be treated as
withdrawn on a first-in, first-out basis.
<TABLE>
<CAPTION>
NUMBER OF FULL CONTRACT
YEARS SINCE PURCHASE PAYMENT APPLICABLE CHARGE
-----------------------------------------------------------------------------
<S> <C>
0 6%
-----------------------------------------------------------------------------
1 6%
-----------------------------------------------------------------------------
2 5%
-----------------------------------------------------------------------------
3 4%
-----------------------------------------------------------------------------
4 3%
-----------------------------------------------------------------------------
5 2%
-----------------------------------------------------------------------------
6 1%
-----------------------------------------------------------------------------
7+ 0%
-----------------------------------------------------------------------------
</TABLE>
17
<PAGE>
The contingent deferred sales charge may be reduced on Contracts sold to a
trustee, employer or similar party pursuant to a retirement plan or to a group
of individuals, if such sales are expected to involve reduced sales expenses.
The amount of reduction will depend upon such factors as the size of the group,
any prior or existing relationship with the purchaser or group, the total
amount of purchase payments and other relevant factors that might tend to
reduce expenses incurred in connection with such sales. The reduction will not
be unfairly discriminatory to any Contract Owner.
FREE WITHDRAWALS:
Seven-Year-Old Purchase Payments. You may withdraw any purchase payment which
was made more than 7 years before the withdrawal without incurring a contingent
deferred sales charge.
15% Withdrawals. On the last day of the first contract year and once each
contract year thereafter, you may withdraw, without incurring a contingent
deferred sales charge, 15% of total purchase payments. You may take the 15%
free withdrawal on a single sum basis or systematically, but not both. The 15%
free withdrawal amount will be applied to purchase payments on a first-in,
first-out basis. With respect to any withdrawal in excess of the 15% free
withdrawal in a contract year, the contingent deferred sales charge schedule
set forth above will apply to the remainder of the purchase payments so
withdrawn on a first-in, first-out basis. This 15% free withdrawal applies only
to the first withdrawal request made in a contract year (after the first
contract year) and the amount is not cumulative from year to year.
Medically Related Withdrawal. Subject to applicable state law, after the first
contract year and before the Annuity Date, you may withdraw, without incurring
a contingent deferred sales charge, up to the lesser of $500,000 or your
Contract Value if certain medically related contingencies occur. This free
withdrawal is available if you are (1) first confined in a nursing home or
hospital while this Contract is in force and remain confined for at least 90
days in a row or (2) first diagnosed as having a fatal illness (an illness
expected to result in death within 2 years for 80% of diagnosed cases) while
this Contract is in force. The precise terms and conditions of this benefit are
set forth in the Contract. It is not available if your age at issue is greater
than 75. The medically related contingencies that must be met for free
withdrawal vary in some states.
Disability Related Withdrawal. You may withdraw, without incurring a
contingent deferred sales charge, part or all of your Contract Value if you
(you or the Annuitant for qualified Contracts) become totally disabled as
defined in the Contract.
Other Withdrawals. There is no contingent deferred sales charge imposed upon
minimum distributions under qualified contracts which are required by the
Internal Revenue Code.
PREMIUM TAXES:
Some states and municipalities impose premium taxes on purchase payments
received by insurance companies. Generally, any premium taxes payable will be
deducted upon annuitization, although we reserve the right to deduct such taxes
when due in jurisdictions that impose such taxes on purchase payments.
Currently, state premium taxes on purchase payments range from 0% to 3 1/2%.
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PERFORMANCE INFORMATION
The Company may advertise total return performance and annual changes in
accumulation unit values. We may also provide information on "yields" and
"effective yields" on investments in the Money Market Fund subaccount.
Information on total return performance will include average annual rates of
total return for one, five and ten year periods, or lesser periods depending on
how long the underlying fund portfolio has been in existence. Such figures are
based on the hypothetical assumption that the Separate Account invested in the
underlying portfolios from the date those portfolios were first available to
other insurance company separate accounts. Average annual total return figures
will show the average annual rates of increase or decrease in investments in
the subaccounts, assuming a hypothetical $1,000 investment at the beginning of
the period, withdrawal of the investment at the end of the period, and the
deduction of all applicable fund and Contract charges. We may also show average
annual rates of total return, assuming other amounts invested at the beginning
of the period and no withdrawal at the end of the period. Average annual total
return figures which assume no withdrawals at the end of the period will
reflect all recurring charges, but will not reflect the contingent deferred
sales charge (if applicable, the contingent deferred sales charge would reduce
the amount that may be withdrawn under the Contracts).
The "yield" on an investment in the Money Market Fund subaccount refers to
the income generated by the investment over a 7-day period. This income is then
annualized. That is, the amount of income generated by the investment during
that week is assumed to be generated each week over a 52-week period and is
shown as a percentage of the investment. The "effective yield" is calculated
similarly, but, when annualized, the income earned by an investment in the
subaccount is
18
<PAGE>
assumed to be reinvested. The effective yield will be slightly higher than the
yield because of the compounding effect of this assumed reinvestment.
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THE FIXED INTEREST OPTIONS
BECAUSE OF EXEMPTIVE AND EXCLUSIONARY PROVISIONS, INTERESTS IN THE COMPANY'S
GENERAL ACCOUNT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
THE GENERAL ACCOUNT HAS NOT BEEN REGISTERED AS AN INVESTMENT COMPANY UNDER THE
INVESTMENT COMPANY ACT OF 1940. THE GENERAL ACCOUNT AND ANY INTERESTS HELD IN
THE GENERAL ACCOUNT ARE THEREFORE NOT SUBJECT TO THE PROVISIONS OF THESE ACTS.
HENCE THIS PROSPECTUS GENERALLY DISCUSSES ONLY THE VARIABLE PORTION OF THE
CONTRACT. THE COMPANY HAS BEEN ADVISED THAT THE STAFF OF THE SECURITIES AND
EXCHANGE COMMISSION HAS NOT REVIEWED THE DISCLOSURE IN THIS PROSPECTUS RELATING
TO THE FIXED ACCOUNT. DISCLOSURE REGARDING THE FIXED ACCOUNT, HOWEVER, MAY BE
SUBJECT TO GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS
RELATING TO THE ACCURACY AND COMPLETENESS OF STATEMENTS MADE IN THIS
PROSPECTUS.
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GENERAL INFORMATION
Subject to the laws of your state, you may allocate or transfer all or part
of the amount credited to your Contract to one or more of the following fixed
interest options in the Fixed Account: (1) the One Year Fixed Interest Option;
(2) the Three Year Fixed Interest Option; (3) the Five Year Fixed Interest
Option; and (4) the Seven Year Fixed Interest Option. We periodically declare
an effective annual interest rate applicable to allocations to the various
fixed interest options. For each amount allocated to the One Year Fixed
Interest Option, the Three Year Fixed Interest Option, the Five Year Fixed
Interest Option or the Seven Year Fixed Interest Option, we credit interest at
an effective annual interest rate declared by us in the month in which the
allocation is made. The declared rate of interest will apply through the end of
the 12-month, 36-month, 60-month or 84-month period, as applicable, which
begins on the first day of the calendar month in which the allocation is made.
We guarantee an effective annual rate of interest on allocations to all fixed
interest options of not less than 3%. In addition, we guarantee that the rate
credited in the One Year Fixed Interest Option will at least equal the increase
in the cost of living as calculated by the Company; the Company uses for this
purpose a six-month average of the relative change by month in the Consumer
Price Index published by the Bureau of Labor Statistics.
You may transfer amounts in the Fixed Account to subaccounts of the Separate
Account or to another fixed interest option within the Fixed Account, subject
to the conditions and limitations in the fixed account provisions of your
Contract. A premature withdrawal charge in an amount specified in the Contract
will be deducted from the interest earned on any amount that is withdrawn from
the Three Year Fixed Interest Option, the Five Year Fixed Interest Option or
the Seven Year Fixed Interest Option prior to the expiration of the period for
which the interest rate is guaranteed. Amounts not withdrawn or reallocated
within 25 days after the end of an interest period are rolled over and treated
as a new allocation to the same fixed interest option. The premature withdrawal
charge is not applicable to amounts withdrawn to effect an annuity or to meet
the minimum distribution requirement under the tax laws. Nor will the premature
withdrawal charge be applied to amounts withdrawn due to the death, total
disability, or defined medical confinement or terminal illness of the owner or
annuitant, as specified in the Contract. In no event will the premature
withdrawal charge be greater than the total amount of interest credited to the
applicable fixed interest option. In accordance with state law, we may defer a
withdrawal or transfer from the Fixed Account for up to six months if we
reasonably determine that investment conditions are such that an orderly sale
of assets in the Company's general account is not feasible.
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LOANS UNDER SECTION 403(B) CONTRACTS
Subject to compliance with applicable state law, Contract Owners qualifying
under Section 403(b) of the Code may be able to borrow against a portion of the
amount credited under their Contract, provided the loan privilege has been
approved in the applicable state. The loan will be made from the general
account of the Company. Because this prospectus generally is limited to
describing the variable portion of the Contract, you should review the Contract
loan endorsement or consult your Company representative for a complete
description of the terms of the loan privilege, including minimum and maximum
loan amounts, repayment terms, and restrictions on prepayments. The following
paragraphs describe how exercise of the loan privilege may relate to the
Variable Account Value.
First, at the time a Contract loan is made and in accordance with your
direction, an amount equal to the initial loan amount will be transferred from
the Contract's investment options to an account in the Company's general
account called the "Restricted Account." Amounts transferred from investment
options to the Restricted Account will not participate in the investment
experience of those investment options. Amounts transferred to the Restricted
Account will generally earn interest at a rate 2 1/2 percentage points less
than the rate of interest charged on the loan.
19
<PAGE>
Second, on your Contract Anniversary, the accrued interest in the Restricted
Account will be transferred to your investment options in accordance with your
current payment allocation instructions.
Third, loan repayments, which are due quarterly, will result in the transfer
of an amount equal to the principal portion of the repayment from the
Restricted Account to the Money Market subaccount. You may then transfer
amounts from the Money Market subaccount to the other investment options
offered under the Contract.
Fourth, if a payment or the entire loan is in default as defined in the
Contract, the Company will report the amount of the default to the Internal
Revenue Service as a taxable distribution and, if you are then under age 59
1/2, as a premature distribution. Subject to restrictions in Section 403(b) of
the Code, the amount of any missed payment, plus interest, or the entire loan
balance, plus interest, if the entire loan is in default, plus any applicable
contingent deferred sales charge, will be withdrawn by us from your investment
options in accordance with your direction in the Loan Request and Agreement. We
will use the net proceeds from the withdrawal to repay the loan. If a
withdrawal is restricted under the Code, the outstanding loan balance will
continue to accrue interest and the amount due will be withdrawn when a
withdrawal becomes permissible. Thus, when an event takes place which makes
withdrawal from the Contract permissible under the Code, such as attainment of
age 59 1/2, disability, or death, we will check the Contract to determine if
there is an outstanding loan balance for which one or more payments have been
missed. If so, we will withdraw from your investment options, in accordance
with your direction in the Loan Request and Agreement, funds necessary to pay
the overdue amount, plus any applicable contingent deferred sales charge. While
a loan balance is outstanding, any withdrawal or death benefit proceeds must
first be used to pay the loan.
Loans are subject to the terms of your Contract, your Section 403(b) plan and
the Code, and, in the case of plans subject to the Employee Retirement Income
Security Act of 1974, the ERISA regulations on plan loans, all of which may
impose restrictions. The Company reserves the right to suspend, modify or
terminate the availability of loans. Where there is a plan fiduciary, it is the
responsibility of the fiduciary to ensure that any Contract loans comply with
plan qualification requirements, including ERISA.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX CONSIDERATIONS
The following brief discussion of federal income tax considerations is based on
the law in effect on the date of this prospectus, which may be changed by
legislative, judicial or administration action. The summary is general in
nature and does not consider any applicable state or local tax laws. For
further information, you should consult qualified tax counsel.
Under current law, no federal income taxes are imposed on increases in the
value of a Contract until distribution occurs, either in the form of a
withdrawal or death benefit or as annuity payment under an annuity option.
For a withdrawal or death benefit, the taxable portion is generally the
amount in excess of the cost basis of the Contract. Amounts withdrawn by the
Contract owner or received as a death benefit by the designated beneficiary are
treated first as taxable income to the extent of the excess of the Contract
Value over the purchase payments made under the Contract. Such taxable portion
is taxed at ordinary income tax rates. Designation of a beneficiary who is
either 37 1/2 years younger than the Contract Owner or a grandchild of the
Contract Owner may have Generation Skipping Transfer Tax consequences under
Section 2601 of the Internal Revenue Code.
For annuity payments, the taxable portion is generally determined by a
formula that establishes the ratio of the cost basis of the Contract (as
adjusted for any refund feature) to the expected return under the Contract. The
taxable portion, which is the amount of the annuity payment in excess of the
cost basis, is taxed at ordinary income tax rates.
An additional income tax of 10% may be imposed on the taxable portion of an
early withdrawal or distribution unless one of several exceptions apply. There
will be no additional income tax on early withdrawals which are part of a
series of substantially equal periodic payments (not less frequently than
annually) made for life (or life expectancy) of the taxpayer or the joint lives
(or joint life expectancies) of the taxpayer and a beneficiary, or on
withdrawals made on or after age 59 1/2. There also will be no additional tax
on distributions made after death or on withdrawals attributable to total and
permanent disability. Further, there will be no additional tax on distributions
within certain other exceptions to the general rule.
The transfer of a Contract may result in the transferor incurring tax. If the
transfer is for less than adequate consideration, the taxable portion would be
the Contract Value at the time of transfer over the investment in the Contract
at such time. This rule does not apply to transfers between spouses or to
transfers incident to a divorce.
Subject to certain exceptions, a Contract must be held by or on behalf of a
natural person in order to be treated as an annuity contract under federal
income tax law and to be accorded the tax treatment described in the preceding
paragraphs. If a contract is not treated as an annuity contract for federal
income tax purposes, the income on the Contract is treated as ordinary income
received or accrued by the Contract Owner during the taxable year.
20
<PAGE>
Section 817(h) of the Code provides that the investments of a separate
account underlying a variable annuity contract which is not purchased under a
qualified retirement plan or certain other types of plans (or the investments
of a mutual fund, the shares of which are owned by the variable annuity
separate account) must be "adequately diversified" in order for the Contract to
be treated as an annuity contract for tax purposes. The Treasury Department has
issued regulations prescribing such diversification requirements. The Separate
Account, through each of the available funds of the Penn Series Funds, Inc.,
American Century Variable Portfolios, Inc., Neuberger & Berman Advisers
Management Trust, Variable Insurance Products Fund, Variable Insurance Products
Fund II, and Morgan Stanley Universal Funds, Inc. intends to comply with those
requirements. The requirements are briefly discussed in the accompanying
prospectuses for the underlying funds.
The Treasury Department has indicated that in regulations or revenue rulings
under Section 817(d) (relating to the definition of a variable contract), it
will provide guidance on the extent to which contract owners may direct their
investments to particular subaccounts without being treated as owners of the
underlying shares. It is possible that when such regulations or rulings are
issued, the Contracts may need to be modified to comply with them.
The Contracts may be used in connection with retirement plans that qualify
for special tax treatment under the Code. The plans include individual
retirement annuities qualified under Section 408(b) of the Code (referred to as
IRAs), tax deferred annuities qualified under Section 403(b) of the Code,
pension or profit sharing plans for self-employed individuals qualified under
Section 401 of the Code (referred to as H.R. 10 or Keogh plans) and corporate
pension or profit sharing plans qualified under Section 401 of the Code, or
annuity plans qualified under Section 403(a) of the Code. Special provisions
are required in some Contracts for qualification under the Code.
For some types of qualified retirement plans, there may be no cost basis in
the Contract. In this case, the total payments received may be taxable. Before
purchasing a contract under a qualified retirement plan, the tax law provisions
applicable to the particular plan should be considered.
Generally, under a nonqualified annuity or individual retirement annuity
qualified under Section 408(b), unless the Contract Owner elects to the
contrary, any amounts that are received under the Contract that the Company
believes are includable in gross income for tax purposes will be subject to
withholding to meet federal income tax obligations. The same treatment will
apply to distributions from a qualified plan or Section 403(b) annuity that are
payable as an annuity for the life or life expectancy of one or more
individuals, or for a period of at least 10 years, or are required minimum
distributions. Other distributions from a qualified plan or a Section 403(b)
annuity are subject to mandatory withholding, unless an election is made to
receive the distribution as a direct rollover to another eligible retirement
plan.
It should be understood that the foregoing description of federal income
taxes is not exhaustive and that special rules and considerations may be
applicable. For further information, a prospective purchaser should consult
qualified tax counsel.
21
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
STATEMENT OF ADDITIONAL INFORMATION CONTENTS
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
VARIABLE ANNUITY PAYMENTS.................................................. B-2
First Variable Annuity Payments.......................................... B-2
Subsequent Variable Annuity Payments..................................... B-2
Annuity Units............................................................ B-2
Value of Annuity Units................................................... B-2
Net Investment Factor.................................................... B-2
Assumed Interest Rate.................................................... B-3
Valuation Period......................................................... B-3
- --------------------------------------------------------------------------------
PERFORMANCE DATA........................................................... B-4
Average Annual Total Return.............................................. B-4
Annual Changes in Accumulation Unit Values............................... B-8
Yields (Money Market Fund)............................................... B-9
- --------------------------------------------------------------------------------
ADMINISTRATION AND RECORDKEEPING SERVICES.................................. B-9
- --------------------------------------------------------------------------------
DISTRIBUTION OF CONTRACTS AND CERTIFICATES................................. B-9
- --------------------------------------------------------------------------------
CUSTODIAN.................................................................. B-9
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS....................................................... B-9
- --------------------------------------------------------------------------------
LEGAL MATTERS.............................................................. B-10
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS....................................................... B-10
- --------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
PART B
------
Information Required in a Statement
-----------------------------------
of Additional Information
-------------------------
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION -- MAY 1, 1998
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I
THE PENN INSURANCE AND ANNUITY COMPANY
PHILADELPHIA, PENNSYLVANIA 19172 . TELEPHONE (215) 956-9177 PENNANT
- --------------------------------------------------------------------------------
This statement of additional information is not a prospectus. It should be read
in conjunction with the current prospectus for PIA Variable Annuity Account I,
dated May 1, 1998. To obtain a prospectus you may write to The Penn Insurance
and Annuity Company, Customer Service Group, Philadelphia, PA 19172. Or you may
call (215) 956-9177. Terms used in this statement of additional information
have the same meaning as the prospectus.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
VARIABLE ANNUITY PAYMENTS.................................................. B-2
First Variable Annuity Payments.......................................... B-2
Subsequent Variable Annuity Payments..................................... B-2
Annuity Units............................................................ B-2
Value of Annuity Units................................................... B-2
Net Investment Factor.................................................... B-2
Assumed Interest Rate.................................................... B-3
Valuation Period......................................................... B-3
- --------------------------------------------------------------------------------
PERFORMANCE DATA........................................................... B-4
Average Annual Total Return.............................................. B-4
Annual Changes in Accumulation Unit Values............................... B-8
Yields (Money Market Fund)............................................... B-9
- --------------------------------------------------------------------------------
ADMINISTRATION AND RECORDKEEPING SERVICES.................................. B-9
- --------------------------------------------------------------------------------
DISTRIBUTION OF CONTRACTS.................................................. B-9
- --------------------------------------------------------------------------------
CUSTODIAN.................................................................. B-9
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS....................................................... B-9
- --------------------------------------------------------------------------------
LEGAL MATTERS.............................................................. B-10
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS....................................................... B-10
- --------------------------------------------------------------------------------
</TABLE>
B-1
<PAGE>
- --------------------------------------------------------------------------------
VARIABLE ANNUITY PAYMENTS
- --------------------------------------------------------------------------------
FIRST VARIABLE ANNUITY PAYMENT
When a variable annuity is effected, we will first deduct applicable premium
taxes, if any, from the Contract Value. The dollar amount of the first monthly
annuity payment will be determined by applying the net Contract Value to the
annuity table set forth in the contract for the annuity option chosen. The
annuity tables show the amount of the first monthly income payment under each
annuity option for each $1,000 of value applied, based on the Annuitant's age
at the Annuity Date. The annuity tables are based on the 1983 Individual
Annuity Mortality Tables with interest at 3%.
- --------------------------------------------------------------------------------
SUBSEQUENT VARIABLE ANNUITY PAYMENTS
The dollar amount of subsequent variable annuity payments will vary in
accordance with the investment experience of the subaccount(s) of the Separate
Account applicable to the annuity. Each subsequent variable annuity payment
will equal the number of annuity units credited, multiplied by the value of the
annuity unit for the valuation period. The Company guarantees that the amount
of each subsequent annuity payment will not be affected by variations in
expense or mortality experience.
- --------------------------------------------------------------------------------
ANNUITY UNITS
For each subaccount selected, the number of annuity units is the amount of
the first annuity payment allocated to the subaccount divided by the value of
an annuity unit for the subaccount on the Annuity Date. The number of your
annuity units will not change as a result of investment experience.
- --------------------------------------------------------------------------------
VALUE OF ANNUITY UNITS
The value of an annuity unit for each subaccount was arbitrarily set at $10
when the subaccount was established. The value may increase or decrease from
one valuation period to the next. For a valuation period, the value of an
annuity unit for a subaccount is the value of an annuity unit for the
subaccount for the last prior valuation period multiplied by the net investment
factor for the subaccount for the valuation period. The result is then
multiplied by a factor to neutralize an assumed interest rate of 3% built into
the annuity tables.
- --------------------------------------------------------------------------------
NET INVESTMENT FACTOR
For any subaccount, the net investment factor for a valuation period is
determined by dividing (a) by (b) and subtracting (c):
WHERE (A) IS:
The net asset value per share of the mutual fund held in the subaccount, as
of the end of the valuation period
plus
----
The per share amount of any dividend or capital gain distributions by the
mutual fund if the "ex-dividend" date occurs in the valuation period
plus or minus
-------------
A per share charge or credit, as we may determine as of the end of the
valuation period, for provision for taxes (if applicable).
WHERE (B) IS:
The net asset value per share of the mutual fund held in the subaccount as
of the end of the last prior valuation period
plus or minus
-------------
The per share charge or credit for provision for taxes as of the end of the
last prior valuation period (if applicable).
WHERE (C) IS:
The sum of the mortality and expense risk charge and the daily
administration charge. On an annual basis, the sum of such charges equals
1.40% of the daily net asset value of the subaccount.
B-2
<PAGE>
- --------------------------------------------------------------------------------
ASSUMED INTEREST RATE
A 3% assumed annual interest rate is included in the annuity tables in the
contracts. A higher assumption would mean a higher first annuity payment but
more slowly rising or more rapidly falling subsequent payments. A lower
assumption would have the opposite effect. If the actual net investment rate is
3% on an annual basis, annuity payments will be level.
- --------------------------------------------------------------------------------
VALUATION PERIOD
Valuation period is the period from one valuation of underlying fund assets
to the next. Valuation is performed each day the New York Stock Exchange is
open for trading.
B-3
<PAGE>
- --------------------------------------------------------------------------------
PERFORMANCE DATA
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
Although the Separate Account was not available until the effective date of
this registration statement, the returns calculated below reflect a
hypothetical return as if the Separate Account had invested in the underlying
funds for the indicated periods.
- --------------------------------------------------------------------------------
TABLE 1
Table 1 shows the average annual rates of total return on hypothetical
investments of $1,000, through the Separate Account, in funds of Penn Series
Funds, Inc., American Century Variable Portfolios, Inc., Neuberger and Berman
Advisers Management Trust, Fidelity Investments' Variable Insurance Products
Fund and Fidelity Investments' Variable Insurance Products Fund II, and Morgan
Stanley Universal Funds, Inc. for the periods ended December 31, 1997 and
assume withdrawal of the investments at the end of the period.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity (a)....... 06/01/83 18.55% 12.63% 12.42% 11.17%
(Independence Capital)
Value Equity (a)........ 03/17/87 16.57% 16.46% 14.82% 12.61%
(OpCap)
Small-Cap Fund.......... 03/01/95 14.94% N/A N/A 15.96%
(OpCap)
Emerging Growth Fund
(a)(g)................. 05/01/97 30.72% N/A N/A 30.72%
(RS Investment
Management)
Flexibly Managed (a).... 07/31/84 7.63% 12.22% 12.25% 13.30%
(T. Rowe Price)
International Equity
(a).................... 11/01/92 3.06% 11.53% N/A 11.48%
(Vontobel)
Quality Bond (a)........ 03/17/87 1.00% 5.47% 7.14% 6.54%
(Independence Capital)
High Yield Bond (a)..... 08/06/84 8.26% 9.24% 9.53% 9.23%
(T. Rowe Price)
Capital Appreciation
Portfolio (b).......... 11/20/87 -9.64% 3.70% 7.05% 7.65%
(American Century
Investment Management)
Balanced Portfolio (c).. 02/28/89 11.69% 8.20% N/A 9.58%
(Neuberger & Berman)
Limited Maturity Bond
Portfolio (c).......... 09/10/84 -.16% 3.75% 5.54% 6.65%
(Neuberger & Berman)
Partners Portfolio (c).. 03/22/94 22.83% N/A N/A 21.62%
(Neuberger & Berman)
Equity-Income Portfolio
(d).................... 10/09/86 19.50% 17.62% 14.77% 12.73%
(Fidelity Investments)
Growth Portfolio (d).... 10/09/86 15.11% 15.61% 15.28% 13.67%
(Fidelity Investments)
Asset Manager Portfolio
(e).................... 09/06/89 12.82% 10.95% N/A 11.10%
(Fidelity Investments)
Index 500 (e)........... 08/27/92 24.30% 18.13% N/A 18.13%
(Fidelity Investments)
Emerging Markets Equity
(International)(f)..... 10/01/96 -6.30% N/A N/A -6.99%
(Morgan Stanley)
</TABLE>
- -----------------------
* Represents the date the underlying fund was established.
(a) Penn Series Funds, Inc.
(b) American Century Variable Portfolios, Inc.
(c) Neuberger and Berman Advisers Management Trust
(d) Variable Insurance Products Fund
(e) Variable Insurance Products Fund II
(f) Morgan Stanley Universal Funds, Inc.
(g) Average Annual Total Return for period May 1, 1997 to December 31, 1997
B-4
<PAGE>
The average annual rates of total return shown in Table 1 are computed by
finding the average annual compounded rates of return over the periods shown
that would equate the initial amount invested to the withdrawal value, in
accordance with the following formula: P(1 + T)n = ERV. In the formula, P is a
hypothetical investment payment of $1,000; T is the average annual total
return; n is the number of years; and ERV is the withdrawal value at the end of
the periods shown. The $30 annual contract administration charge is reflected
assuming an anticipated average Contract Value and assuming that the Contract
Value is allocated equally across all available subaccounts by an average
contract owner.
B-5
<PAGE>
- --------------------------------------------------------------------------------
TABLE 2
Table 2 below shows the average annual rates of return on hypothetical
initial investments of $1,000, through the Separate Account, in funds of the
Penn Series Funds, Inc., American Century Variable Portfolios, Inc., Neuberger
and Berman Advisers Management Trust, Fidelity Investments' Variable Insurance
Products Fund, Fidelity Investments' Variable Insurance Products Fund II, and
Morgan Stanley Universal Funds, Inc. for the periods ended December 31, 1997
and assumes the investments are not withdrawn at the end of the period.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity (a)....... 06/01/83 24.92% 13.02% 12.42% 11.17%
(Independence Capital)
Value Equity (a)........ 03/17/87 22.86% 16.86% 14.82% 12.61%
(OpCap)
Small-Cap Fund.......... 03/01/95 21.13% N/A N/A 17.75%
(OpCap)
Emerging Growth Fund
(a)(g)................. 05/01/97 61.48% N/A N/A 61.48%
(RS Investment
Management)
Flexibly Managed (a).... 07/31/84 13.45% 12.60% 12.25% 13.30%
(T. Rowe Price)
International Equity
(a).................... 11/01/92 8.61% 11.91% N/A 11.85%
(Vontobel)
Quality Bond (a)........ 03/17/87 6.44% 5.83% 7.14% 6.54%
(Independence Capital)
High Yield Bond (a)..... 08/06/84 14.09% 9.61% 9.53% 9.23%
(T. Rowe Price)
Capital Appreciation
Portfolio (b).......... 11/20/87 -4.77% 4.06% 7.05% 7.65%
(American Century
Investment Management)
Balanced Portfolio (c).. 02/28/89 17.69% 8.58% N/A 9.58%
(Neuberger & Berman)
Limited Maturity Bond
Portfolio (c).......... 09/10/84 5.21% 4.11% 5.54% 6.65%
(Neuberger & Berman)
Partners Portfolio (c).. 03/22/94 29.44% N/A N/A 22.74%
(Neuberger & Berman)
Equity-Income Portfolio
(d).................... 10/09/86 25.94% 18.03% 14.77% 12.73%
(Fidelity Investments)
Growth Portfolio (d).... 10/09/86 21.32% 16.00% 15.28% 13.67%
(Fidelity Investments)
Asset Manager Portfolio
(e).................... 09/06/89 18.89% 11.33% N/A 11.10%
(Fidelity Investments)
Index 500 (e)........... 08/27/92 30.99% 18.54% N/A 18.51%
(Fidelity Investments)
Emerging Markets Equity
(International)(f)..... 10/01/96 -1.25% N/A N/A -3.00%
(Morgan Stanley)
</TABLE>
- -----------------------
* Represents the date the underlying fund was established.
(a) Penn Series Funds, Inc.
(b) American Century Variable Portfolios, Inc.
(c) Neuberger and Berman Advisers Management Trust
(d) Variable Insurance Products Fund
(e) Variable Insurance Products Fund II
(f) Morgan Stanley Universal Funds, Inc.
(g) Average Annual Total Return for period May 1, 1997 to December 31, 1997
B-6
<PAGE>
- --------------------------------------------------------------------------------
TABLE 3
Table 3 below shows the average annual rates of return on hypothetical
initial investments of $10,000, through the Separate Account, in funds of the
Penn Series Funds, Inc., American Century Variable Portfolios, Inc., Neuberger
and Berman Advisers Management Trust, Fidelity Investments' Variable Insurance
Products Fund, Fidelity Investments' Variable Insurance Products Fund II, and
Morgan Stanley Universal Funds, Inc. for the periods ended December 31, 1997
and assumes the investments are not withdrawn at the end of the period.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity (a)....... 06/01/83 24.98% 13.07% 12.45% 11.20%
(Independence Capital)
Value Equity (a)........ 03/17/87 23.20% 17.15% 15.03% 12.85%
(OpCap)
Small-Cap Fund.......... 03/01/95 21.30% N/A N/A 17.90%
(OpCap)
Emerging Growth Fund
(a)(g)................. 05/01/97 37.91% N/A N/A 37.91%
(RS Investment
Management)
Flexibly Managed (a).... 07/31/84 13.99% 13.04% 12.59% 13.56%
(T. Rowe Price)
International Equity
(a).................... 11/01/92 8.85% 12.09% N/A 12.05%
(Vontobel)
Quality Bond (a)........ 03/17/87 6.52% 5.90% 7.20% 6.60%
(Independence Capital)
High Yield Bond (a)..... 08/06/84 14.17% 9.68% 9.59% 9.28%
(T. Rowe Price)
Capital Appreciation
Portfolio (b).......... 11/20/87 -4.62% 4.19% 7.16% 7.76%
(American Century
Investment Management)
Balanced Portfolio (c).. 02/28/89 17.78% 8.66% N/A 9.65%
(Neuberger & Berman)
Limited Maturity Bond
Portfolio (c).......... 09/10/84 5.25% 4.15% 5.57% 6.68%
(Neuberger & Berman)
Partners Portfolio (c).. 03/22/94 29.59% N/A N/A 22.87%
(Neuberger & Berman)
Equity-Income Portfolio
(d).................... 10/09/86 26.29% 18.30% 14.99% 12.97%
(Fidelity Investments)
Growth Portfolio (d).... 10/09/86 21.72% 16.32% 15.52% 13.93%
(Fidelity Investments)
Asset Manager Portfolio
(e).................... 09/06/89 18.97% 11.40% N/A 16.16%
(Fidelity Investments)
Index 500 (e)........... 08/27/92 31.14% 18.66% N/A 18.63%
(Fidelity Investments)
Emerging Markets Equity
(International)(f)..... 10/01/96 -1.10% N/A N/A -2.78%
(Morgan Stanley)
</TABLE>
- -----------------------
* Represents the date the underlying fund was established.
(a) Penn Series Funds, Inc.
(b) American Century Variable Portfolios, Inc.
(c) Neuberger and Berman Advisers Management Trust
(d) Variable Insurance Products Fund
(e) Variable Insurance Products Fund II
(f) Morgan Stanley Universal Funds, Inc.
(g) Average Annual Total Return for period May 1, 1997 to December 31, 1997
The average annual rates of total return shown in Tables 2 and 3 are computed
by finding the average annual compounded rates of return over the periods shown
that would equate the initial amount invested to the Contract Value at the end
of the periods shown, in accordance with the following formula: P(1 + T)n = FV.
In the formula, P is a hypothetical investment of $1,000 in Table 2 and $10,000
in Table 3; T is the average annual total return; n is the number of years; and
FV is the Contract Value at the end of the periods shown. The $30 annual
contract administrative charge is reflected assuming an anticipated average
Contract Value and assuming that the average Contract Value is allocated
equally across all available subaccounts by an average contract owner. The
average annual rates of total returns reflect all recurring charges, but do not
reflect the contingent deferred sales charge ranging from 6% to 1% which, if
applicable, would reduce the amount that may be withdrawn under the Contract.
B-7
<PAGE>
- --------------------------------------------------------------------------------
ANNUAL CHANGES IN ACCUMULATION UNIT VALUES
- --------------------------------------------------------------------------------
TABLE 4
Table 4 shows the changes in values of accumulation units issued for each of
the Funds of the Penn Series Funds, Inc., American Century Variable Portfolios,
Inc., Neuberger and Berman Advisers Management Trust, Fidelity Investments'
Variable Insurance Products Fund, Fidelity Investment's Variable Insurance
Products Fund II, and Morgan Stanley Universal Funds, Inc. for each of the
calendar years 1995, 1996 and 1997 for which the investment option was offered.
Accumulation unit values do not reflect the $30 annual contract or account
administration charge or the contingent deferred sales charge that may be
applicable to a withdrawal from the Contract.
<TABLE>
<CAPTION>
ANNUAL RATE OF CHANGE IN
ACCUMULATION UNIT VALUES
---------------------------
FUND (MANAGER) 1997 1996 1995
- -------------- -------- -------- --------
<S> <C> <C> <C>
Growth Equity (a)................................... 24.98% 18.10% 11.75%
(Independence Capital Management)
Value Equity (a).................................... 23.24% 23.45% 12.64%
(OpCap)
Small Capitalization (a)............................ 21.31% 18.09% 11.15%
(OpCap)
Emerging Growth Fund (a)(g)......................... 37.93% N/A N/A
(RS Investment Management, Inc.)
Flexibly Managed (a)................................ 14.05% 14.75% 11.65%
(T. Rowe Price Associates, Inc.)
International Equity (a)............................ 8.87% 16.90% 11.71%
(Vontobel USA, Inc.)
Quality Bond (a).................................... 6.53% 2.69% 11.23%
(Independence Capital Management, Inc.)
High Yield Bond (a)................................. 14.17% 12.29% 10.97%
(T. Rowe Price Associates, Inc.)
Money Market (a).................................... 3.68% 3.52% 10.31%
(Independence Capital Management, Inc.)
Capital Appreciation Portfolio (b).................. -4.60% -5.66% 12.82%
(American Century Investment Management, Inc.)
Balanced Portfolio (c).............................. 17.79% 5.40% 11.65%
(Neuberger & Berman)
Limited Maturity Bond (c)........................... 5.26% 2.85% 10.69%
(Neuberger & Berman)
Partners Portfolio (c).............................. 23.99% N/A N/A
(Neuberger & Berman)
Equity Income (d)................................... 26.33% 12.69% 12.60%
(Fidelity Investors Research)
Growth (d).......................................... 21.76% 13.11% 13.08%
(Fidelity Investors Research)
Asset Manager (e)................................... 18.97% 13.01% 11.48%
(Fidelity Investors Research)
Index 500 (e)....................................... 21.50% N/A N/A
(Fidelity Investors Research)
Emerging Markets (International) (f)................ -10.34% N/A N/A
(Morgan Stanley)
</TABLE>
- -----------------------
(a)Penn Series Funds, Inc.
(b)American Century Variable Portfolios, Inc.
(c)Neuberger and Berman Advisers Management Trust
(d)Variable Insurance Products Fund
(e)Variable Insurance Products Fund II
(f)Morgan Stanley Universal Funds, Inc.
(g)Average Annual Total Return for period May 1, 1997 to December 31, 1997
B-8
<PAGE>
- --------------------------------------------------------------------------------
YIELDS (MONEY MARKET FUND)
From time to time, advertisements and sales literature may quote the current
or effective yield of the Money Market subaccount.
The "yield" and "effective yield" of the Money Market Fund subaccount for the
seven days ended December 31, 1997 were 3.27% and 3.32%, respectively.
The yield is computed by determining the net change, exclusive of capital
changes, in the value of a hypothetical preexisting account having a balance of
one accumulation unit of the subaccount at the beginning of the period,
subtracting a hypothetical charge reflecting deductions from contract owner
accounts, and dividing the difference by the value of the account at the
beginning of the base period to obtain the base period return, and then
multiplying the base period return by (365/7) with the resulting figure carried
to at least the nearest hundredth of 1%. The hypothetical charge reflects
deductions from contract owners' accounts in proportion to the length of the
base period. The $30 annual contract administrative charge is reflected
assuming an anticipated average Contract Value and assuming that the average
Contract Value is allocated equally across all available subaccounts by an
average contract owner.
The effective yield is obtained by taking the base period return as computed
above, and then compounding the base period return by adding 1, raising the sum
to a power equal to 365 divided by 7, and subtracting 1 from the result,
according to the following formula: Effective Yield = [(base period return + 1)
365/7] - 1.
The yields do not reflect the contingent deferred sales charge ranging from
6% to 1%. The deferred sales charge may or may not be applicable to a
withdrawal from a Contract, depending on when the withdrawal is made.
THE YIELDS ON AMOUNTS HELD IN THE MONEY MARKET SUBACCOUNT NORMALLY WILL
FLUCTUATE ON A DAILY BASIS. THEREFORE, THE STATED YIELDS FOR ANY GIVEN PERIOD
ARE NOT AN INDICATION OR REPRESENTATION OF FUTURE YIELDS.
---------------------------------
THE PERFORMANCE INFORMATION SET FORTH ABOVE IS FOR PAST PERFORMANCE OF THE
FUNDS, ASSUMING THE SEPARATE ACCOUNT HAD INVESTED IN THE FUNDS FROM THEIR
INCEPTION, AND IS NOT AN INDICATION OR REPRESENTATION OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
ADMINISTRATIVE AND RECORDKEEPING SERVICES
The Company performs all data processing, recordkeeping and other related
services with respect to the Contracts and the Separate Accounts.
- --------------------------------------------------------------------------------
DISTRIBUTION OF CONTRACTS
Hornor, Townsend & Kent, Inc., a wholly owned subsidiary of Penn Mutual,
serves as principal underwriter of the Contracts. The address of Hornor,
Townsend & Kent, Inc. is 600 Dresher Road, Horsham, PA 19044. For 1997, 1996
and 1995, the Company paid Hornor, Townsend & Kent, Inc. underwriting
commissions of $138,545, $115,190 and $25,447.
The Contracts will be distributed by Hornor, Townsend & Kent, Inc. through
broker-dealers. Total commissions on purchase payments made under the Contract
will not exceed 6 1/2% and trailer commissions based on a percentage of
Contract Value may be paid. The offering of the Contracts is continuous, and
the Company does not anticipate discontinuing the offering of the Contract,
although we reserve the right to do so.
- --------------------------------------------------------------------------------
CUSTODIAN
The Company is custodian of the assets held in the Separate Account.
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS
Ernst & Young LLP serve as independent auditors of The Penn Insurance and
Annuity Company and PIA Variable Annuity Account I. Their offices are located
at 2001 Market Street, Suite 4000, Philadelphia, PA.
B-9
<PAGE>
- --------------------------------------------------------------------------------
LEGAL MATTERS
Morgan, Lewis & Bockius LLP of Philadelphia, Pennsylvania, has provided
advice on certain matters relating to the federal securities laws and the
offering of the Contracts.
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
The financial statements of the Separate Account and PIA are set forth on the
following pages. The financial statements of PIA should be distinguished from
the financial statements of the Separate Account and should be considered only
as bearing upon the PIA's ability to meet its obligations under the
Contracts.
B-10
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
The Penn Insurance and Annuity Company and Contract Owners of PIA Variable
Annuity Account I--Pennant
We have audited the accompanying statement of assets and liabilities of PIA
Variable Annuity Account I--Pennant (comprising, respectively, Money Market
Fund, Quality Bond Fund, High Yield Bond Fund, Growth Equity Fund, Value Equity
Fund, Flexibly Managed Fund, Small Capitalization Fund, International Equity
Fund, Emerging Growth Fund, Balanced Portfolio, Limited Maturity Bond
Portfolio, Partners Portfolio, Capital Appreciation Portfolio, Equity Income
Portfolio, Growth Portfolio, Asset Manager Portfolio, Index 500 Portfolio, and
Emerging Markets Equity Portfolio) as of December 31, 1997, and the related
statements of operations and the changes in net assets for the year or period
then ended. These financial statements are the responsibility of the management
of PIA Variable Annuity Account I--Pennant. Our responsibility is to express an
opinion on these financial statements based on our audit. The financial
statements of PIA Variable Annuity Account I--Pennant for the year ended
December 31, 1996, were audited by other auditors whose report dated April 7,
1997, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1997 financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
portfolios constituting the PIA Variable Annuity Account I--Pennant at December
31, 1997, the results of their operations and changes in their net assets for
the year or period then ended, in conformity with generally accepted accounting
principles.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
March 30, 1998
B-11
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PENN INSURANCE AND ANNUITY COMPANY
AND CONTRACT OWNERS OF PIA VARIABLE ANNUITY ACCOUNT I--PENNANT:
We have audited the accompanying statement of changes in net assets of the PIA
Annuity Account I--Pennant (comprising, respectively, Money Market Fund,
Quality Bond Fund, High Yield Bond Fund, Growth Equity Fund, Value Equity Fund,
Flexibly Managed Fund, Small Capitalization Fund, International Equity Fund,
Balanced Portfolio, Limited Maturity Bond Portfolio, Capital Appreciation
Portfolio (formerly TCI Growth Portfolio) Equity Income Portfolio, Growth
Portfolio, and Asset Manager Portfolio) for the year ended December 31, 1996.
This financial statement is the responsibility of the management of PIA
Variable Annuity Account I--Pennant. Our responsibility is to express an
opinion on this financial statement based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1996 by
correspondence with the transfer agents. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the changes in net assets of PIA Variable Annuity
Account I--Pennant for the year ended December 31, 1996, in conformity with
generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P
Coopers & Lybrand L.L.P
2400 Eleven Penn Center
Philadelphia, Pennsylvania
April 7, 1997
B-12
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
STATEMENT OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
<TABLE>
<CAPTION>
MONEY MARKET QUALITY BOND HIGH YIELD BOND GROWTH EQUITY
TOTAL FUND+ FUND+ FUND+ FUND+
------------ ------------ ------------ --------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT IN COMMON
STOCK:
Number of shares....... -- 7,809,258 521,639 881,962 287,482
Identified cost........ $221,392,140 $7,809,258 $5,373,449 $8,261,514 $6,933,089
ASSETS:
Investments at value... $239,409,240 $7,809,258 $5,320,720 $8,396,276 $7,005,945
Dividends receivable... 34,391 34,391 0 0 0
LIABILITIES:
Due to (from) the Penn
Insurance and Annunity
Company............... 91,544 (2,398) 2,416 3,891 2,712
------------ ---------- ---------- ---------- ----------
NET ASSETS.............. $239,352,087 $7,846,047 $5,318,304 $8,392,385 $7,003,233
============ ========== ========== ========== ==========
Variable life
accumulation units..... -- 709,094 432,962 596,879 403,911
Accumulated unit values. -- $ 11.06 $ 12.28 $ 14.06 $ 17.34
- ----------------------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
<CAPTION>
MONEY MARKET QUALITY BOND HIGH YIELD BOND GROWTH EQUITY
TOTAL FUND+ FUND+ FUND+ FUND+
------------ ------------ ------------ --------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 4,902,937 $ 374,991 $ 297,208 $ 651,830 $ 24,623
EXPENSE:
Mortality and expense
risk charges.......... 2,582,325 105,114 56,844 81,007 61,260
------------ ---------- ---------- ---------- ----------
Net investment income
(loss)................ 2,320,612 269,877 240,364 570,823 (36,637)
------------ ---------- ---------- ---------- ----------
REALIZED AND UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS:
Realized gains (losses)
from redemption of
fund shares........... 32,427 0 608 3,996 (1,434)
Capital gains
distributions......... 10,313,908 0 2,184 0 698,782
------------ ---------- ---------- ---------- ----------
Net realized gains
(losses) from
investment
transactions.......... 10,346,335 0 2,792 3,996 697,348
Net change in
unrealized
appreciation
(depreciation) of
investments........... 14,512,578 0 24,619 167,037 150,133
------------ ---------- ---------- ---------- ----------
Net realized and
unrealized gains
(losses) on
investments........... 24,858,913 0 27,411 171,033 847,481
------------ ---------- ---------- ---------- ----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 27,179,525 $ 269,877 $ 267,775 $ 741,856 $ 810,844
============ ========== ========== ========== ==========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of
May 1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-13
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FLEXIBLY SMALL INTERNATIONAL EMERGING LIMITED
VALUE EQUITY MANAGED CAPITALIZATION EQUITY GROWTH BALANCED MATURITY BOND
FUND+ FUND+ FUND+ FUND+ FUND+ PORTFOLIO++ PORTFOLIO++
------------ -------- -------------- ------------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
1,509,136 3,618,083 745,265 813,598 198,504 243,930 221,547
$29,831,766 $69,275,570 $ 9,677,891 $12,926,375 $2,755,747 $3,923,959 $3,128,370
$34,031,007 $71,746,583 $10,754,174 $13,123,341 $2,550,771 $4,341,959 $3,128,250
0 0 0 0 0 0 0
14,771 33,925 4,906 5,893 1,102 1,891 1,447
----------- ----------- ----------- ----------- ---------- ---------- ----------
$34,016,236 $71,712,658 $10,749,268 $13,117,448 $2,549,669 $4,340,068 $3,126,803
=========== =========== =========== =========== ========== ========== ==========
1,768,950 4,704,147 673,274 880,235 184,859 299,996 270,171
$ 19.23 $ 15.24 $ 15.97 $ 14.90 $ 13.79 $ 14.47 $ 11.57
- ---------------------------------------------------------------------------------------------
<CAPTION>
FLEXIBLY SMALL INTERNATIONAL EMERGING LIMITED
VALUE EQUITY MANAGED CAPITALIZATION EQUITY GROWTH BALANCED MATURITY BOND
FUND+ FUND+ FUND+ FUND+ FUND+(A) PORTFOLIO++ PORTFOLIO++
------------ -------- -------------- ------------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ 411,060 $ 2,009,629 $ 50,387 $ 399,303 $ 0 $ 54,528 $ 134,033
361,431 802,196 110,368 151,901 9,423 51,825 36,113
----------- ----------- ----------- ----------- ---------- ---------- ----------
49,629 1,207,433 (59,981) 247,402 (9,423) 2,703 97,920
----------- ----------- ----------- ----------- ---------- ---------- ----------
19 3,891 (1,114) 6,990 345 642 3,589
1,838,028 4,102,726 635,028 431,439 192,559 139,955 0
----------- ----------- ----------- ----------- ---------- ---------- ----------
1,838,047 4,106,617 633,914 438,429 192,904 140,597 3,589
3,228,914 2,137,531 837,078 91,691 (204,977) 426,917 29,378
----------- ----------- ----------- ----------- ---------- ---------- ----------
5,066,961 6,244,148 1,470,992 530,120 (12,073) 567,514 32,967
----------- ----------- ----------- ----------- ---------- ---------- ----------
$ 5,116,590 $ 7,451,581 $ 1,411,011 $ 777,522 $ (21,496) $ 570,217 $ 130,887
=========== =========== =========== =========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
B-14
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
STATEMENT OF ASSETS AND LIABILITIES - DECEMBER 31, 1997 (CONT'D.)
<TABLE>
<CAPTION>
CAPITAL
PARTNERS APPRECIATION EQUITY INCOME GROWTH
PORTFOLIO+++ PORTFOLIO+++ PORTFOLIO++++ PORTFOLIO++++
-------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT IN COMMON
STOCK
Number of shares....... 168,721 381,365 1,225,503 660,891
Identified cost........ $3,343,479 $4,218,147 $24,464,347 $20,202,860
ASSETS:
Investments at value... $3,475,648 $3,691,615 $29,755,205 $24,519,059
Dividends receivable... 0 0 0 0
LIABILITIES:
Due to (from) the Penn
Insurance and Annunity
Company............... 1,474 1,569 12,473 9,737
---------- ---------- ----------- -----------
NET ASSETS.............. $3,474,174 $3,690,046 $29,742,732 $24,509,322
========== ========== =========== ===========
Variable life
accumulation units..... 280,205 319,882 1,658,212 1,360,867
Accumulated unit values. $ 12.40 $ 11.54 $ 17.94 $ 18.01
- ---------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997 (CONT'D.)
<CAPTION>
CAPITAL
PARTNERS APPRECIATION EQUITY INCOME GROWTH
PORTFOLIO++(a) PORTFOLIO+++ PORTFOLIO++++ PORTFOLIO++++
-------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 0 $ 0 $ 292,360 $ 105,059
EXPENSE:
Mortality and expense
risk charges.......... 12,490 50,683 335,063 283,412
---------- ---------- ----------- -----------
Net investment income
(loss)................ (12,490) (50,683) (42,703) (178,353)
---------- ---------- ----------- -----------
REALIZED AND UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS:
Realized gains (losses)
from redemption of
fund shares........... (1,352) 45,707 (9,134) 2,525
Capital gains
distributions......... 0 75,002 1,469,923 470,264
---------- ---------- ----------- -----------
Net realized gains
(losses) from
investment
transactions.......... (1,352) 120,709 1,460,789 472,789
Net change in
unrealized
appreciation
(depreciation) of
investments........... 132,170 (197,160) 3,899,630 3,506,923
---------- ---------- ----------- -----------
Net realized and
unrealized gains
(losses) on
investments........... 130,818 (76,451) 5,360,419 3,979,712
---------- ---------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 118,328 $ (127,134) $ 5,317,716 $ 3,801,359
========== ========== =========== ===========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of
May 1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-15
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING
ASSET MANAGER INDEX 500 MARKETS EQUITY
PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO+++++
- ------------- ---------------- -----------------
<S> <C> <C>
249,313 37,422 104,839
$3,955,587 $4,078,450 $1,232,282
$4,490,118 $4,280,677 $ 988,634
0 0 0
1,945 (6,600) 390
---------- ---------- ----------
$4,488,173 $4,287,277 $ 988,244
========== ========== ==========
290,902 352,855 110,227
$ 15.43 $ 12.15 $ 8.97
- -------------------------------------------------------------------------------------------
<CAPTION>
EMERGING
ASSET MANAGER INDEX 500 MARKETS EQUITY
PORTFOLIO++++ PORTFOLIO++++(a) PORTFOLIO+++++(a)
- ------------- ---------------- -----------------
<S> <C> <C>
$ 91,468 $ 0 $ 6,458
49,072 18,044 6,079
---------- ---------- ----------
42,396 (18,044) 379
---------- ---------- ----------
5,302 303 (28,456)
229,445 0 28,573
---------- ---------- ----------
234,747 303 117
324,115 202,226 (243,647)
---------- ---------- ----------
558,862 202,529 (243,530)
---------- ---------- ----------
$ 601,258 $ 184,485 $ (243,151)
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
B-16
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
STATEMENTS OF CHANGES IN NET ASSETS - FOR THE YEARS ENDED DECEMBER 31, 1997 AND
1996
<TABLE>
<CAPTION>
MONEY MARKET QUALITY BOND
TOTAL FUND+ FUND+
-------------------------- ------------------------- ------------------------
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 2,320,612 $ 1,575,323 $ 269,877 $ 145,912 $ 240,364 $ 161,724
Net realized gains
(losses) from
investment
transactions.......... 10,346,335 3,711,288 0 0 2,792 2,695
Net change in
unrealized
appreciation
(depreciation) of
investments........... 14,512,578 3,418,393 0 0 24,619 (68,697)
------------ ------------ ------------ ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 27,179,525 8,705,004 269,877 145,912 267,775 95,722
------------ ------------ ------------ ----------- ----------- -----------
VARIABLE LIFE
ACTIVITIES:
Purchase payments under
variable life
contracts............. 125,425,903 109,076,182 15,006,343 11,766,041 2,584,557 4,014,585
Surrender benefits..... (3,712,589) (688,028) (184,822) (32,079) (68,783) (16,374)
Net transfers.......... (29,870,283) (14,062,219) (13,635,983) (7,241,862) (554,711) (1,122,806)
Contract administration
charges............... (55,707) (13,544) (1,353) (518) (991) (350)
Annuity benefits....... (3,453,573) (1,928,380) (108,074) (61,612) (83,976) (516,677)
------------ ------------ ------------ ----------- ----------- -----------
Net increase in net
assets resulting from
variable life
activities............. 88,333,751 92,384,011 1,076,111 4,429,970 1,876,096 2,358,378
------------ ------------ ------------ ----------- ----------- -----------
Total increase
(decrease) in net
assets................ 115,513,276 101,089,015 1,345,988 4,575,882 2,143,871 2,454,100
NET ASSETS:
Beginning of year...... 123,838,811 22,749,796 6,500,059 1,924,177 3,174,433 720,333
------------ ------------ ------------ ----------- ----------- -----------
END OF YEAR............ $239,352,087 $123,838,811 $ 7,846,047 $ 6,500,059 $ 5,318,304 $ 3,174,433
============ ============ ============ =========== =========== ===========
<CAPTION>
HIGH YIELD GROWTH EQUITY VALUE EQUITY
BOND FUND+ FUND+ FUND+
-------------------------- ------------------------- ------------------------
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 570,823 $ 233,093 $ (36,637) $ (2,164) $ 49,629 $ 49,765
Net realized gains
(losses) from
investment
transactions.......... 3,996 1,786 697,348 194,553 1,838,047 589,049
Net change in
unrealized
appreciation
(depreciation) of
investments........... 167,037 5,814 150,133 (60,566) 3,228,914 978,790
------------ ------------ ------------ ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 741,856 240,693 810,844 131,823 5,116,590 1,617,604
------------ ------------ ------------ ----------- ----------- -----------
VARIABLE LIFE
ACTIVITIES:
Purchase payments under
variable life
contracts............. 5,569,185 3,257,266 4,823,066 1,879,023 16,717,687 11,131,936
Surrender benefits..... (294,894) (19,834) (62,363) (1,444) (398,755) (65,906)
Net transfers.......... (1,032,502) (449,170) (474,697) (218,969) (1,391,344) (394,988)
Contract administration
charges............... (942) (317) (829) (142) (7,184) (1,463)
Annuity benefits....... (165,182) (81,701) (43,676) (2,961) (321,771) (232,319)
------------ ------------ ------------ ----------- ----------- -----------
Net increase in net
assets resulting from
variable life
activities............. 4,075,665 2,706,244 4,241,501 1,655,507 14,598,633 10,437,260
------------ ------------ ------------ ----------- ----------- -----------
Total increase
(decrease) in net
assets................ 4,817,521 2,946,937 5,052,345 1,787,330 19,715,223 12,054,864
NET ASSETS:
Beginning of year...... 3,574,864 627,927 1,950,888 163,558 14,301,013 2,246,149
------------ ------------ ------------ ----------- ----------- -----------
END OF YEAR............ $ 8,392,385 $ 3,574,864 $ 7,003,233 $ 1,950,888 $34,016,236 $14,301,013
============ ============ ============ =========== =========== ===========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of
May 1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-17
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
STATEMENTS OF CHANGES IN NET ASSETS - FOR THE YEARS ENDED DECEMBER 31, 1997 AND
1996 (CONT'D.)
<TABLE>
<CAPTION>
FLEXIBLY MANAGED SMALL CAPITALIZATION INTERNATIONAL EQUITY
FUND+ FUND+ FUND+
------------------------ ------------------------ ------------------------
1997 1996 1997 1996 1997 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 1,207,433 $ 981,448 $ (59,981) $ (7,672) $ 247,402 $ 186,573
Net realized gains
(losses) from
investment
transactions.......... 4,106,617 1,681,506 633,914 171,964 438,429 316,113
Net change in
unrealized
appreciation
(depreciation) of
investments........... 2,137,531 515,156 837,078 239,195 91,691 75,846
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease)
in net assets resulting
from operations........ 7,451,581 3,178,110 1,411,011 403,487 777,522 578,532
----------- ----------- ----------- ----------- ----------- ----------
VARIABLE LIFE
ACTIVITIES:
Purchase payments under
variable life
contracts............. 29,495,872 31,724,973 5,634,761 3,865,977 7,093,961 6,480,324
Surrender benefits..... (939,438) (258,353) (76,804) (11,107) (290,294) (16,812)
Net transfers.......... (2,878,761) (1,157,006) (790,037) (170,367) (1,488,312) (395,700)
Contract administration
charges............... (16,941) (4,084) (2,673) (483) (3,915) (515)
Annuity benefits....... (1,356,123) (418,180) (77,311) (54,544) (169,687) (96,239)
----------- ----------- ----------- ----------- ----------- ----------
Net increase in net
assets resulting from
variable life
activities............. 24,304,609 29,887,350 4,687,936 3,629,476 5,141,753 5,971,058
----------- ----------- ----------- ----------- ----------- ----------
Total increase
(decrease) in net
assets................ 31,756,190 33,065,460 6,098,947 4,032,963 5,919,275 6,549,590
NET ASSETS:
Beginning of year...... 39,956,468 6,891,008 4,650,321 617,358 7,198,173 648,583
----------- ----------- ----------- ----------- ----------- ----------
END OF YEAR............ $71,712,658 $39,956,468 $10,749,268 $ 4,650,321 $13,117,448 $7,198,173
=========== =========== =========== =========== =========== ==========
<CAPTION>
EMERGING
GROWTH BALANCED LIMITED MATURITY PARTNERS
PORTFOLIO+ PORTFOLIO++ BOND PORTFOLIO++ PORTFOLIO++
----------- ------------------------ ------------------------ -----------
1997(a) 1997 1996 1997 1996 1997(a)
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ (9,423) $ 2,703 $ (1,550) $ 97,920 $ 100,848 $ (12,490)
Net realized gains
(losses) from
investment
transactions.......... 192,904 140,597 141,051 3,589 5,295 (1,352)
Net change in
unrealized
appreciation
(depreciation) of
investments........... (204,977) 426,917 (20,603) 29,378 (41,435) 132,170
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease)
in net assets resulting
from operations........ (21,496) 570,217 118,898 130,887 64,708 118,328
----------- ----------- ----------- ----------- ----------- ----------
VARIABLE LIFE
ACTIVITIES:
Purchase payments under
variable life
contracts............. 2,824,448 1,776,553 2,287,512 1,893,653 3,179,899 3,513,547
Surrender benefits..... (6,836) (130,016) (15,249) (78,555) (21,881) (14,660)
Net transfers.......... (228,570) (622,920) (364,312) (1,089,130) (1,384,520) (120,660)
Contract administration
charges............... (84) (1,210) (584) (576) (204) (71)
Annuity benefits....... (17,793) (61,501) (28,754) (83,489) (34,487) (22,310)
----------- ----------- ----------- ----------- ----------- ----------
Net increase in net
assets resulting from
variable life
activities............. 2,571,165 960,906 1,878,613 641,903 1,738,807 3,355,846
----------- ----------- ----------- ----------- ----------- ----------
Total increase
(decrease) in net
assets................ 2,549,669 1,531,123 1,997,511 772,790 1,803,515 3,474,174
NET ASSETS:
Beginning of year...... 0 2,808,945 811,434 2,354,013 550,498 0
----------- ----------- ----------- ----------- ----------- ----------
END OF YEAR............ $ 2,549,669 $ 4,340,068 $ 2,808,945 $ 3,126,803 $ 2,354,013 $3,474,174
=========== =========== =========== =========== =========== ==========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of
May 1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-18
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
STATEMENTS OF CHANGES IN NET ASSETS - FOR THE YEARS ENDED DECEMBER 31, 1997 AND
1996 (CON'TD.)
<TABLE>
<CAPTION>
CAPITAL APPRECIATION EQUITY INCOME GROWTH
PORTFOLIO+++ PORTFOLIO++++ PORTFOLIO++++
----------------------- ---------------------------- ------------------------
1997 1996 1997 1996 1997 1996
----------- ---------- ------------- -------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ (50,683) $ (34,186) $ (42,703) $ (127,397) $ (178,353) $ (113,320)
Net realized gains
(losses) from
investment
transactions.......... 120,709 180,824 1,460,789 168,452 472,789 238,588
Net change in
unrealized
appreciation
(depreciation) of
investments........... (197,160) (347,536) 3,899,630 1,191,851 3,506,923 777,104
----------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ (127,134) (200,898) 5,317,716 1,232,906 3,801,359 902,372
----------- ---------- ----------- ----------- ----------- -----------
VARIABLE LIFE
ACTIVITIES:
Purchase payments under
variable life
contracts............. 1,520,996 3,313,766 11,205,598 12,524,113 8,080,441 11,793,923
Surrender benefits..... (117,546) (29,264) (461,859) (86,153) (464,697) (104,034)
Net transfers.......... (1,357,196) (195,208) (1,885,293) (465,915) (1,589,438) (434,169)
Contract administration
charges............... (1,692) (558) (7,231) (1,784) (8,502) (2,059)
Annuity benefits....... (25,856) (10,505) (537,337) (203,041) (218,182) (173,601)
----------- ---------- ----------- ----------- ----------- -----------
Net increase in net
assets resulting from
variable life
activities............. 18,706 3,078,231 8,313,878 11,767,220 5,799,622 11,080,060
----------- ---------- ----------- ----------- ----------- -----------
Total increase
(decrease) in net
assets................ (108,428) 2,877,333 13,631,594 13,000,126 9,600,981 11,982,432
NET ASSETS:
Beginning of year...... 3,798,474 921,141 16,111,138 3,111,012 14,908,341 2,925,909
----------- ---------- ----------- ----------- ----------- -----------
END OF YEAR............ $ 3,690,046 $3,798,474 $29,742,732 $16,111,138 $24,509,322 $14,908,341
=========== ========== =========== =========== =========== ===========
<CAPTION>
EMERGING
ASSET MANAGER INDEX 500 MARKETS EQUITY
PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO+++++
----------------------- ------------- --------------
1997 1996 1997(a) 1997(a)
----------- ---------- ------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 42,396 $ 2,249 $ (18,044) $ 379
Net realized gains
(losses) from
investment
transactions.......... 234,747 19,412 303 117
Net change in
unrealized
appreciation
(depreciation) of
investments........... 324,115 173,474 202,226 (243,647)
----------- ---------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 601,258 195,135 184,485 (243,151)
----------- ---------- ----------- -----------
VARIABLE LIFE
ACTIVITIES:
Purchase payments under
variable life
contracts............. 1,898,036 1,856,844 4,226,105 1,561,094
Surrender benefits..... (102,809) (9,538) (10,032) (9,426)
Net transfers.......... (320,483) (67,227) (93,068) (317,178)
Contract administration
charges............... (1,403) (483) (80) (30)
Annuity benefits....... (138,107) (13,759) (20,133) (3,065)
----------- ---------- ----------- -----------
Net increase in net
assets resulting from
variable life
activities............. 1,335,234 1,765,837 4,102,792 1,231,395
----------- ---------- ----------- -----------
Total increase
(decrease) in net
assets................ 1,936,492 1,960,972 4,287,277 988,244
NET ASSETS:
Beginning of year...... 2,551,681 590,709 0 0
----------- ---------- ----------- -----------
END OF YEAR............ $ 4,488,173 $2,551,681 $ 4,287,277 $ 988,244
=========== ========== =========== ===========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of
May 1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-19
<PAGE>
- ----------------------------------------------------
THIS PAGE LEFT INTENTIONALLY BLANK
B-20
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
NOTE 1.
The significant accounting policies of Penn Insurance and Annuity Variable
Annuity Account I (Account I) are as follows:
GENERAL - Account I was established by The Penn Insurance and Annuity
Company (PIA) under the provisions of the Delaware Insurance Law. Account I
is registered under the Investment Company Act of 1940, as amended, as a
unit investment trust. Account I offers a combination fixed and variable
annuity contract. Account I offers units to variable annuity
contractholders to provide for the accumulation of value and for the
payment of annuities. The preparation of the accompanying financial
statements requires management to make estimates and assumptions that
affect the reported values of assets and liabilities as of December 31,
1997 and the reported amounts from operations and contract transactions
during 1997 and 1996. Actual results could differ from those estimates.
INVESTMENTS - Assets of Account I are invested in shares of Penn Series
Funds, Inc. (Penn Series): Money Market, Quality Bond, High Yield Bond,
Growth Equity, Value Equity, Flexibly Managed, International Equity Fund,
Small Capitalization and Emerging Growth Funds; Neuberger and Berman
Advisers Management Trust (AMT): Limited Maturity Bond, Balanced, and
Partners Portfolios; American
- --------------------------------------------------------------------------------
NOTE 2.
For the years ended December 31, 1997 and 1996, transactions in shares of
the respective funds or portfolios were as follows:
<TABLE>
<CAPTION>
MONEY MARKET QUALITY BOND
FUND+ FUND+
------------------------- ----------------------
1997 1996 1997 1996
------------ ----------- ---------- ----------
<S> <C> <C> <C> <C>
Shares purchased........ 11,205,185 10,282,841 225,176 370,651
Shares received from
reinvestment of:
Net investment income.. 374,991 205,661 29,138 19,708
Capital gains
distribution.......... 0 0 214 0
------------ ----------- ---------- ----------
Total shares acquired... 11,580,176 10,488,502 254,528 390,359
Shares redeemed......... (10,210,327) (6,031,688) (50,444) (143,163)
------------ ----------- ---------- ----------
Net increase in shares
owned.................. 1,369,849 4,456,814 204,084 247,196
Shares owned, beginning
of year................ 6,439,409 1,982,595 317,555 70,359
------------ ----------- ---------- ----------
Shares owned, end of
year................... 7,809,258 6,439,409 521,639 317,555
============ =========== ========== ==========
Cost of shares acquired. $ 11,580,177 $10,488,502 $2,637,959 $3,986,768
Proceeds from shares
redeemed............... $ 10,210,328 $ 6,031,688 $ 518,014 $1,465,728
<CAPTION>
FLEXIBLY MANAGED SMALL CAPITALIZATION INTERNATIONAL
FUND+ FUND+ EQUITY FUND+
------------------------- ---------------------- ----------------------
1997 1996 1997 1996 1997 1996
------------ ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares purchased........ 1,251,967 1,634,579 355,205 311,668 366,752 397,567
Shares received from
reinvestment of:
Net investment income.. 101,343 68,799 3,492 2,001 24,755 15,233
Capital gains
distribution.......... 206,895 89,748 44,008 13,697 26,748 20,293
------------ ----------- ---------- ---------- ---------- ----------
Total shares acquired... 1,560,205 1,793,126 402,705 327,366 418,255 433,093
Shares redeemed......... (75,009) (56,349) (28,701) (12,444) (65,939) (16,642)
------------ ----------- ---------- ---------- ---------- ----------
Net increase in shares
owned.................. 1,485,196 1,736,777 374,004 314,922 352,316 416,451
Shares owned, beginning
of year................ 2,132,887 396,110 371,261 56,339 461,282 44,831
------------ ----------- ---------- ---------- ---------- ----------
Shares owned, end of
year................... 3,618,083 2,132,887 745,265 371,261 813,598 461,282
============ =========== ========== ========== ========== ==========
Cost of shares acquired. $ 31,173,712 $33,613,754 $5,690,586 $3,945,543 $6,940,937 $6,739,747
Proceeds from shares
redeemed............... $ 1,538,860 $ 1,050,538 $ 424,281 $ 151,010 $1,116,886 $ 263,036
</TABLE>
- -----------------------
The cost of net redemptions is determined on a last-in, first-out basis.
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of
May 1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period May 1, 1997 (date funds became available for investment
to contractholders) to December 31, 1997
B-21
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1997 (CONT'D.)
- --------------------------------------------------------------------------------
NOTE 1. CONT'D.
Century Investments (ACI): Capital Appreciation Portfolio; Fidelity
Investments' Variable Insurance Products (Fidelity): Equity Income, Growth,
Asset Manager, and Index 500 Portfolios; and Morgan Stanley Asset
Management (MS): Morgan Stanley Universal Fund. Penn Series, AMT, ACI,
Fidelity, and MS are open-end diversified management investment companies.
The investments in shares of these Funds or Portfolios are carried at
market value as determined by the underlying net asset value of the
respective Funds or Portfolios. Dividend income is recorded on the ex-
dividend date. Investment transactions are accounted for on a trade date
basis.
FEDERAL INCOME TAXES - PIA is taxed under federal law as a life insurance
company. Account I is part of PIA's total operations and is not taxed
separately. Under existing federal law, no taxes are payable on investment
income and realized gains of Account I.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH YIELD GROWTH EQUITY VALUE EQUITY
BOND FUND+ FUND+ FUND+
- ---------------------- ---------------------- ------------------------
1997 1996 1997 1996 1997 1996
- ---------- ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
534,467 352,468 183,940 87,775 705,372 572,530
68,469 29,062 1,010 402 18,229 8,160
0 0 28,674 8,932 81,509 30,469
- ---------- ---------- ---------- ---------- ----------- -----------
602,936 381,530 213,624 97,109 805,110 611,159
(122,329) (54,589) (17,081) (14,349) (36,442) (8,687)
- ---------- ---------- ---------- ---------- ----------- -----------
480,607 326,941 196,543 82,760 768,668 602,472
401,355 74,414 90,939 8,179 740,468 137,996
- ---------- ---------- ---------- ---------- ----------- -----------
881,962 401,355 287,482 90,939 1,509,136 740,468
========== ========== ========== ========== =========== ===========
$5,794,925 $3,432,734 $5,343,299 $2,164,719 $17,323,750 $11,237,711
$1,145,758 $ 492,310 $ 437,598 $ 319,074 $ 827,523 $ 157,626
<CAPTION>
EMERGING
GROWTH BALANCED LIMITED MATURITY
FUND+ PORTFOLIO++ BOND PORTFOLIO++
- ---------- ---------------------- -----------------------
1997(a) 1997 1996 1997 1996
- ---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
190,118 92,220 143,911 121,522 210,617
0 3,484 1,649 10,032 9,484
14,985 8,943 9,168 0 0
- ---------- ---------- ---------- ---------- -----------
205,103 104,647 154,728 131,554 220,101
(6,599) (37,218) (24,550) (77,609) (89,930)
- ---------- ---------- ---------- ---------- -----------
198,504 67,429 130,178 53,945 130,171
0 176,501 46,323 167,602 37,431
- ---------- ---------- ---------- ---------- -----------
198,504 243,930 176,501 221,547 167,602
========== ========== ========== ========== ===========
$2,853,005 $1,725,195 $2,404,027 $1,814,635 $ 3,066,457
$ 97,603 $ 620,691 $ 384,261 $1,074,160 $ 1,226,113
</TABLE>
B-22
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1997 (CONT'D.)
- --------------------------------------------------------------------------------
NOTE 2. CONT'D.
<TABLE>
<CAPTION>
PARTNERS CAPITAL APPRECIATION EQUITY INCOME
PORTFOLIO++ PORTFOLIO+++ PORTFOLIO++++
----------- ---------------------- ------------------------
1997(a) 1997 1996 1997 1996
----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Shares purchased........ 174,364 111,123 295,733 419,256 612,447
Shares received from
reinvestment of:
Net investment income.. 0 0 16,825 14,766 310
Capital gains
distribution.......... 0 8,475 0 74,239 8,888
---------- ---------- ---------- ----------- -----------
Total shares acquired... 174,364 119,598 312,558 508,261 621,645
Shares redeemed......... (5,643) (109,321) (17,870) (49,123) (16,755)
---------- ---------- ---------- ----------- -----------
Net increase in shares
owned.................. 168,721 10,277 294,688 459,138 604,890
Shares owned, beginning
of year................ 0 371,088 76,400 766,365 161,475
---------- ---------- ---------- ----------- -----------
Shares owned, end of
year................... 168,721 381,365 371,088 1,225,503 766,365
========== ========== ========== =========== ===========
Cost of shares acquired. $3,456,531 $1,152,943 $3,421,152 $10,852,419 $12,146,093
Proceeds from shares
redeemed............... $ 111,700 $1,109,821 $ 196,004 $ 1,104,366 $ 333,741
</TABLE>
- -----------------------
The cost of net redemptions is determined on a last-in, first-out basis.
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger&Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of
May 1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period May 1, 1997 (date funds became available for investment to
contractholders) to December 31, 1997
- --------------------------------------------------------------------------------
NOTE 3.
Operations are charged for mortality and expense risks assumed by PIA and
for administering at an annual rate of 1.25% and 0.15% respectively, of the
average value of the Account I.
As reimbursement for expenses incurred in administering the contract, PIA
receives $30 per year for each annuity contract prior to the contract's
date of maturity. The $30 charge is waived on certain contracts.
If a policy is surrendered within the first 7 years, a contingent deferred
sales charge will be assessed. This charge will be deducted before any
surrender proceeds are paid. See original contract document for specific
charges assessed.
B-23
<PAGE>
- --------------------------------------------------------------------------------
PIA VARIABLE ANNUITY ACCOUNT I - PENNANT
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1997 (CONT'D.)
- --------------------------------------------------------------------------------
NOTE 2. CONT'D.
<TABLE>
<CAPTION>
EMERGING
GROWTH ASSET MANAGER INDEX 500 MARKETS EQUITY
PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO+++++
- ----------------------- ---------------------- ------------- --------------
1997 1996 1997 1996 1997(a) 1997(a)
- ---------- ----------- ---------- ---------- ------------- --------------
<S> <C> <C> <C> <C> <C>
194,372 378,280 101,298 115,146 37,871 131,561
3,329 340 5,927 1,542 0 712
14,901 8,590 14,870 1,271 0 3,150
- ---------- ----------- ---------- ---------- ---------- ----------
212,602 387,210 122,095 117,959 37,871 135,423
(30,619) (8,522) (23,553) (4,605) (449) (30,584)
- ---------- ----------- ---------- ---------- ---------- ----------
181,983 378,688 98,542 113,354 37,422 104,839
478,908 100,220 150,771 37,417 0 0
- ---------- ----------- ---------- ---------- ---------- ----------
660,891 478,908 249,313 150,771 37,422 104,839
========== =========== ========== ========== ========== ==========
$7,163,858 $11,470,781 $1,999,528 $1,862,667 $4,126,671 $1,588,845
$1,067,442 $ 261,057 $ 391,379 $ 74,623 $ 48,524 $ 328,107
</TABLE>
B-24
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
THE BOARD OF DIRECTORS
THE PENN INSURANCE AND ANNUITY COMPANY
WILMINGTON, DELAWARE
We have audited the accompanying balance sheet of The Penn Insurance and
Annuity Company (a wholly-owned subsidiary of The Penn Mutual Life Insurance
Company) as of December 31, 1997, and the related income statement, statement
of changes in stockholder's equity and statement of cash flow for the year then
ended. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of the Company as of
December 31, 1996 and for each of the two years in the period ended December
31, 1996 were audited by other auditors whose report dated January 31, 1997
expressed an unqualified opinion on those statements and included an
explanatory paragraph that disclosed the Company's adoption of several
accounting principles which were not previously required to be adopted. These
changes are disclosed in Note 1 to the financial statements.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1997 financial statements referred to above present fairly,
in all material respects, the financial position of The Penn Insurance and
Annuity Company as of December 31, 1997, and the results of its operations and
its cash flows for the year then ended, in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
January 30, 1998
B-25
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
THE BOARD OF DIRECTORS OF
THE PENN INSURANCE AND ANNUITY COMPANY
WILMINGTON, DELAWARE
We have audited the accompanying balance sheet of The Penn Insurance and
Annuity Company (a wholly-owned subsidiary of The Penn Mutual Life Insurance
Company) as of December 31, 1996 and the related income statements, changes in
stockholder's equity and cash flows for the two years in the period ended
December 31, 1996. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The Penn Insurance and Annuity
Company as of December 31, 1996, and the results of its operations and its cash
flows for the two years in the period ended December 31, 1996 in conformity
with generally accepted accounting principles.
As discussed in Note 1 to the financial statements in 1996, the Company adopted
Financial Accounting Standards Board Interpretation No. 40 (FIN 40) and
Statement of Financial Accounting Standards No. 120 (SFAS 120), which required
implementation of several accounting pronouncements not previously adopted. The
effects of adopting FIN 40 and SFAS 120 were retroactively applied to the
Company's previously issued financial statements, consistent with the
implementation guidance of those standards.
/s/ Coopers & Lybrand L.L.P.
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 31, 1997
B-26
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
BALANCE SHEETS
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1997 1996
- ----------------------------------------------------------------------------------
<S> <C> <C>
(in thousands, except per share amount)
ASSETS
Debt securities, at fair value............................. $ 659,215 $ 566,592
Equity securities, at fair value........................... 702 4,473
Mortgage loans on real estate.............................. 2,403 11,064
Real estate, net of accumulated depreciation............... 2,916 2,114
Policy loans............................................... 253,886 246,729
Short-term investments..................................... 2,741 33,415
---------- ----------
TOTAL INVESTMENTS......................................... 921,863 864,387
Cash and cash equivalents.................................. 1,510 1,970
Investment income due and accrued.......................... 21,019 20,224
Deferred acquisition costs................................. 93,007 95,063
Amounts recoverable from reinsurers........................ 5,066 4,931
Other assets............................................... 5,302 224
Separate account assets.................................... 290,539 143,346
---------- ----------
TOTAL ASSETS.............................................. $1,338,306 $1,130,145
========== ==========
LIABILITIES
Reserves for payment of future policy benefits............. $ 73,493 $ 47,922
Other policyholder funds................................... 770,762 739,917
Accrued income tax payable:
Current................................................... 251 4,794
Deferred.................................................. 23,225 16,781
Other liabilities.......................................... 14,179 35,130
Separate account liabilities............................... 290,539 143,346
---------- ----------
TOTAL LIABILITIES......................................... $1,172,449 $ 987,890
---------- ----------
STOCKHOLDER'S EQUITY
Common stock, $2 par value; 1,000 shares authorized, is-
sued, and outstanding..................................... $ 2,000 $ 2,000
Additional paid in capital................................. 103,369 103,369
Net unrealized gains on investment securities, net of taxes
and amortization of deferred acquisition costs............ 8,222 2,135
Retained earnings.......................................... 52,266 34,751
---------- ----------
TOTAL STOCKHOLDER'S EQUITY................................ 165,857 142,255
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY............... $1,338,306 $1,130,145
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
B-27
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
INCOME STATEMENTS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1997 1996 1995
- --------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C>
REVENUES
Premium and annuity considerations.................. $ 29,761 $ 25,882 $ 5,728
Policy fee income................................... 20,207 19,344 17,405
Net investment income............................... 62,542 62,783 58,768
Net realized capital gains.......................... 106 2,311 205
Other income........................................ 4,905 5,507 34,474
-------- -------- --------
TOTAL REVENUES..................................... 117,521 115,827 116,580
-------- -------- --------
BENEFITS AND EXPENSES
Benefits paid to policyholders and beneficiaries.... 53,112 51,575 50,604
Increase in liability for future policy benefits.... 25,596 22,468 36,443
General expenses.................................... 7,517 8,596 7,794
Amortization of deferred acquisition costs.......... 2,640 6,773 (1,169)
-------- -------- --------
TOTAL BENEFITS AND EXPENSES........................ 88,865 89,412 93,672
-------- -------- --------
INCOME BEFORE INCOME TAXES......................... 28,656 26,415 22,908
Federal income taxes:
Current............................................ 7,975 8,983 10,170
Deferred........................................... 3,166 592 (1,841)
-------- -------- --------
NET INCOME......................................... $ 17,515 $ 16,840 $ 14,579
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
B-28
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
ADDITIONAL (DEPRECIATION) TOTAL
COMMON PAID-IN OF INVESTMENT RETAINED STOCKHOLDER'S
FOR THE YEARS ENDED DECEMBER 31, STOCK CAPITAL SECURITIES EARNINGS EQUITY
- ---------------------------------------------------------------------------------------------------
(In thousands)
<S> <C> <C> <C> <C> <C>
BALANCE AT JANUARY 1, 1995................. $2,000 $103,369 $(5,104) $ 3,332 $103,597
Net income for 1995....................... -- -- -- 14,579 14,579
Unrealized appreciation of securities..... -- -- 10,582 -- 10,582
------ -------- ------- ------- --------
BALANCE AT DECEMBER 31, 1995............... 2,000 103,369 5,478 17,911 128,758
Net income for 1996....................... -- -- -- 16,840 16,840
Unrealized depreciation of securities..... -- -- (3,343) -- (3,343)
------ -------- ------- ------- --------
BALANCE AT DECEMBER 31, 1996............... 2,000 103,369 2,135 34,751 142,255
Net income for 1997....................... -- -- -- 17,515 17,515
Unrealized appreciation of securities..... -- -- 6,087 -- 6,087
------ -------- ------- ------- --------
BALANCE AT DECEMBER 31, 1997............... $2,000 $103,369 $ 8,222 $52,266 $165,857
====== ======== ======= ======= ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
B-29
<PAGE>
- --------------------------------------------------------------------------------
PENN INSURANCE AND ANNUITY COMPANY
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1997 1996 1995
- -------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income.................................... $ 17,515 $ 16,840 $ 14,579
Adjustments to reconcile net income to net
cash provided by operations
Capitalization of policy acquisition costs... (7,196) (7,527) (2,564)
Amortization of deferred acquisition costs... 2,640 6,773 (1,169)
Policy fees on universal life and investment
contracts................................... (23,228) (19,344) (17,405)
Interest credited on universal life and in-
vestment contracts.......................... 38,468 38,366 39,924
Realized capital gains....................... (106) (2,311) (205)
(Increase)/decrease in accrued investment in-
come........................................ (795) (5,967) 2,323
(Increase)/decrease in amounts due from rein-
surers...................................... (135) 884 14,736
Increase in future policy benefit reserves... 25,571 21,213 20,832
Increase/(decrease) in federal income taxes
payable..................................... (1,377) 907 1,084
Other, net................................... (13,241) 13,961 (1,016)
--------- --------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES... 38,116 63,795 71,119
--------- --------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of investments:
Debt securities available for sale........... 142,773 118,240 41,062
Real estate investments...................... -- 2,849 695
Equity securities............................ 3,747 -- 479
Mortgage loans............................... -- 159 --
Maturity and other principal repayments:
Debt securities available for sale........... 69,239 46,805 32,279
Mortgage loans............................... 5,527 11,015 12,331
Cost of investments acquired:
Debt securities available for sale........... (299,645) (236,556) (99,408)
Equity securities............................ -- -- (1)
Mortgage loans............................... (75) (561) (20,459)
Real estate.................................. (236) (229) (355)
(Increase)/decrease in short-term investments. 30,674 (12,559) (13,915)
Increase in policy loans, net................. (7,157) (12,287) (34,343)
--------- --------- --------
NET CASH USED BY INVESTING ACTIVITIES....... (55,153) (83,124) (81,635)
--------- --------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Deposits for universal life and investment
contracts.................................... 166,741 153,713 60,685
Withdrawals from universal life and investment
contracts.................................... (35,060) (29,269) (22,923)
Transfers to separate accounts................ (115,104) (105,011) (27,388)
--------- --------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES... 16,577 19,433 10,374
--------- --------- --------
NET INCREASE/(DECREASE) IN CASH AND CASH
EQUIVALENTS................................ (460) 104 (142)
CASH AND CASH EQUIVALENTS
Beginning of the year........................ 1,970 1,866 2,008
--------- --------- --------
End of the year.............................. $ 1,510 $ 1,970 $ 1,866
========= ========= ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
B-30
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS OF DOLLARS)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND BASIS OF PRESENTATION
The Penn Insurance and Annuity Company (the "Company") was founded in 1980 and
commenced business in 1981 as a wholly owned subsidiary of The Penn Mutual Life
Insurance Company ("Penn Mutual"). The Company currently concentrates primarily
in the sale of individual annuity products, both fixed and variable. The
Company sells its products through Penn Mutual's distribution systems, which
consist of a network of career agents, independent agents and independent
marketing organizations. Additionally, it has a significant amount of universal
life insurance business in force, although the Company no longer sells these
products. The Company is licensed to do business in forty-seven states and the
District of Columbia.
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles. The preparation of financial
statements requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and notes to the financial
statements.
ACCOUNTING CHANGES
As of January 1, 1996, the Company adopted Financial Accounting Standards Board
Interpretation No. 40 (FIN 40), "Applicability of Generally Accepted Accounting
Principles to Mutual Life Insurance and Other Enterprises" as amended by
Statement of Financial Accounting Standards (SFAS) No. 120, "Accounting and
Reporting by Mutual Life Insurance Enterprises for Certain Long-Duration
Participating Contracts". The initial effect of applying these pronouncements
has been reported retroactively, as of January 1, 1995. SFAS No. 120 requires
financial statements referred to as prepared in accordance with generally
accepted accounting principles (GAAP) to apply all applicable authoritative
GAAP pronouncements. Prior to the adoption of SFAS No. 120, statutory financial
statements were permitted to be referred to as being prepared in accordance
with GAAP. The significant GAAP authoritative pronouncements requiring initial
application were as follows:
. SFAS No. 60, "Accounting and Reporting by Insurance Enterprises,"
. SFAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain
Long Duration Contracts and for Realized Gains and Losses from the Sale of
Investments,"
. SFAS No. 109, "Accounting for Income Taxes,"
. SFAS No. 113, "Accounting and Reporting for Reinsurance of Short-Duration and
Long-Duration Contracts".
The cumulative effect of applying SFAS No. 120 and FIN 40 primarily consists of
the initial deferral of acquisition costs, the establishment of deferred taxes,
the change in methodology for insurance reserves, and the elimination of the
statutory asset valuation reserve and interest maintenance reserve and the
establishment of investment valuation allowances. In connection with the
adoption of FIN 40, the Company also adopted SFAS No. 115, "Accounting for
Certain Debt and Equity Securities" as of January 1, 1994.
As a result of the change in accounting principles, net income as previously
reported, has been restated as follows:
<TABLE>
<CAPTION>
1995
-------
<S> <C>
Net income, as previously reported..................................... $10,276
Add adjustments for the cumulative effect on prior years:
Deferred acquisition costs............................................ 3,733
Policy reserves....................................................... (1,265)
Deferred taxes........................................................ 1,841
Other................................................................. (6)
-------
Total................................................................ 4,303
-------
Net income, as adjusted............................................... $14,579
=======
</TABLE>
B-31
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
As a result of the change in accounting principles, stockholder's equity, as
previously reported has been restated as follows:
<TABLE>
<CAPTION>
1995
--------
<S> <C>
Balance at beginning of year, as previously reported................ $ 56,523
--------
Add adjustments for the cumulative effect on prior years of applying
retroactively the new basis of accounting:
Deferred acquisition costs......................................... 101,410
Policy reserves.................................................... (19,093)
Deferred taxes..................................................... (15,100)
Investment reserves................................................ 1,337
Unrealized losses.................................................. (14,726)
Other, net......................................................... (6,754)
--------
Total............................................................. 47,074
--------
Balance at beginning of year, as adjusted........................... $103,597
========
</TABLE>
INVESTMENTS
Debt securities (bonds, notes, redeemable preferred stocks and mortgage-backed
securities) which might be sold prior to maturity are classified as available
for sale. These securities are carried at fair value, with the change in
unrealized gains and losses reported through a separate component of equity.
Interest on debt securities is credited to income as it is earned.
Equity securities are classified as available for sale and carried at fair
value. Dividends on equity securities are credited to income on their ex-
dividend dates.
The Company regularly evaluates the carrying value of debt and equity
securities based on current economic conditions, past credit loss experience
and other circumstances of the investee. A decline in a security's fair value
that is deemed to be other than temporary is treated as a realized loss and a
reduction in the cost basis of the security.
Mortgage loans on real estate are stated at unpaid principal balances, net of
unamortized discounts and valuation allowances. Valuation allowances on
impaired loans are based on the present value of expected future cash flows
discounted at the loan's original effective interest rate or the collateral
value if the loan is collateral dependent. However, if foreclosure is or
becomes probable, the measurement method used is collateral value.
Real estate held for sale is carried at the lower of depreciated cost or fair
value less selling costs. Valuation reserves are established for properties
held for sale when the fair value less estimated selling costs is below
depreciated cost.
Policy loans are carried at the unpaid principal balances.
Short-term investments include securities purchased with a maturity date of 90
days to less than one year. Short-term investments are valued at cost.
Realized gains and losses are determined by specific identification and are
included in income on the trade date. Unrealized gains and losses, net of
appropriate taxes and amortization of deferred acquisition costs, are accounted
for as a separate component of stockholder's equity.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, money market instruments and
other debt securities with a maturity of 90 days or less when purchased.
DEFERRED ACQUISITION COSTS
Costs of acquiring new insurance and annuity contracts, which vary with and are
primarily related to the production of new business, have been deferred to the
extent that such costs are deemed recoverable from future gross profits. Such
costs include commissions, certain costs of policy issuance and underwriting,
and certain variable agency expenses.
B-32
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
Deferred acquisition costs related to universal life insurance policies and
annuity products, without mortality risk, that include significant surrender
charges, are being amortized over the lesser of the estimated or actual
contract life in proportion to estimated gross profits arising principally from
interest, mortality, expense margins and surrender charges. The effects on
amortization of deferred acquisition costs of revisions to estimated gross
profits are reflected in earnings in the period such estimated gross profits
are revised. Deferred acquisition costs are reviewed to determine that the
unamortized portion of such costs are still recoverable from future estimated
gross profits. Certain costs and expenses reported in the Income Statements are
net of amounts deferred.
SEPARATE ACCOUNTS
Separate Account assets and liabilities represent segregated funds administered
and invested by the Company primarily for the benefit of variable annuity and
pension contractholders. The value of the assets in the Separate Accounts
reflects the actual investment performance of the respective accounts and is
not guaranteed by the Company. The carrying value for Separate Account assets
and liabilities approximates the estimated fair value of the underlying assets.
INSURANCE LIABILITIES AND REVENUE RECOGNITION
Riders on Universal Life Policies and Life Contingent Annuity Products
Future policy benefits include reserves for riders on universal life insurance
policies and life contingent annuity products and are established in amounts
adequate to meet the estimated future obligations of the policies in force.
Liabilities for these riders are unearned cost of insurance charges using
statutory assumptions for investment yields and mortality. Interest rate
assumptions used in the calculation of the liabilities for universal life
riders ranged from 3.5% to 4.5%. Premiums are recognized as income when due.
Death benefits are reported in expense as incurred.
Liabilities for the life contingent annuity products are computed by estimating
future benefits and expenses. Assumptions are based on Company experience
projected at the time of policy issue, with provision for adverse deviations.
Interest rate assumptions range from 6.04% to 13.25%. Premiums are recognized
as income as they are received. Death and surrender benefits are reported in
expense as incurred.
Universal Life and Other Annuity Products
Other policyholder funds represent liabilities for universal life products and
investment--type annuity products. The liabilities for these products are based
on the contract account value which consists of deposits received from
customers and investment earnings on the account value, less administrative and
expense charges. The liability for universal life products is also reduced by
mortality charges. Liabilities for the non-life contingent annuity products are
computed by estimating future benefits and expenses. Assumptions are based on
Company experience projected at the time of policy issue. Interest rate
assumptions range from 5.35% to 7.85%.
Contract charges assessed against account value for universal life and
investment--type annuities are reflected as policy fee income in revenue.
Interest credited to account values and universal life benefit claims in excess
of fund values are reflected as benefit expense.
FEDERAL INCOME TAXES
The Company files a consolidated federal income tax return with its parent,
Penn Mutual. Federal income taxes are charged or credited to operations based
upon amounts estimated to be payable or recoverable as a result of taxable
operations for the current year. Deferred income tax assets and liabilities are
established to reflect the impact of temporary differences between the amount
of assets and liabilities recognized for financial reporting purposes and such
amounts recognized for tax purposes. These deferred tax assets or liabilities
are measured by using the enacted tax rates expected to apply to taxable income
in the period in which the deferred tax liabilities or assets are expected to
be settled or realized.
B-33
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
REINSURANCE
In the normal course of business, the Company seeks to limit its exposure to
loss on any single insured and to recover a portion of benefits paid by ceding
reinsurance to other insurance enterprises or reinsurers under excess coverage
and coinsurance contracts. The Company has set its retention limit for
acceptance of risk on life insurance policies at various levels up to $100 with
over one-half of its life insurance in force ceded to Penn Mutual.
Insurance liabilities are reported before the effects of reinsurance.
Reinsurance receivables (including amounts related to insurance liabilities)
are reported as assets. Estimated reinsurance receivables are recognized in a
manner consistent with the liabilities related to the underlying reinsured
contracts.
RECLASSIFICATIONS
Certain 1996 and 1995 amounts have been reclassified to conform with 1997
presentation.
NOTE 2 - INVESTMENTS:
DEBT SECURITIES
The following tables summarize the Company's investment in debt securities,
including redeemable preferred stocks. All debt securities are classified as
available for sale and are carried at estimated fair value. The Company did not
writedown any securities for other than temporary declines in value as of
December 31, 1997 and 1996.
<TABLE>
<CAPTION>
DECEMBER 31, 1997
-----------------------------------------
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
U.S. Treasury securities and U.S.
Government and agency securities.... $ 30,172 $ 1,894 $ -- $ 32,066
Foreign governments.................. 4,788 495 -- 5,283
Corporate securities................. 343,315 10,722 333 353,704
Mortgage and other asset-backed secu-
rities.............................. 261,453 6,761 52 268,162
-------- ------- ---- --------
TOTAL............................... $639,728 $19,872 $385 $659,215
======== ======= ==== ========
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1996
-----------------------------------------
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
U.S. Treasury securities and U.S.
Government and agency securities.... $ 8,993 $ 91 $ -- $ 9,084
Foreign governments.................. 4,753 471 -- 5,224
Corporate securities................. 330,104 5,081 2,564 332,621
Mortgage and other asset-backed secu-
rities.............................. 218,382 2,165 884 219,663
-------- ------ ------ --------
TOTAL............................... $562,232 $7,808 $3,448 $566,592
======== ====== ====== ========
</TABLE>
B-34
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
The following tables summarize the amortized cost and estimated fair value of
debt securities by contractual maturity.
<TABLE>
<CAPTION>
DECEMBER 31, 1997
--------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
--------- ----------
<S> <C> <C>
Maturity:
Within one year........................................... $ 29,414 $ 29,470
After one year through five years......................... 144,459 147,951
After five years through ten years........................ 115,422 118,918
After ten years through twenty years...................... 30,457 32,299
After twenty years........................................ 58,523 62,415
Mortgage and other asset-backed securities................ 261,453 268,162
-------- --------
TOTAL..................................................... $639,728 $659,215
======== ========
</TABLE>
Expected maturities may differ from contractual maturities because certain
borrowers have the right to call or prepay obligations with or without call or
prepayment penalties. Mortgage and other asset-backed securities are presented
separately in the maturity schedule due to the potential for prepayment. The
weighted average life of these securities is 5.1 years.
At December 31, 1997, the Company held $268,162 in mortgage and other asset-
backed securities. The structured securities portfolio consists of commercial
and residential mortgage pass-through holdings totaling $241,159 and securities
backed by credit card receivables, auto loans, home equity and manufactured
housing loans totaling $27,003. These securities follow a structured principal
repayment schedule and are of high credit quality. Securities totaling $221,858
are rated AAA and include $2,340 of interest only tranches that were retained
from the securitization of the Company's mortgage loan portfolio.
At December 31, 1997, the largest industry concentration of the Company's
portfolio was investments in the finance industry of $136,547, representing 21%
of the total debt portfolio.
Effective November 30, 1995, the Company adopted the implementation guidance
contained in the Financial Accounting Series Special Report, "A Guide to
Implementation of Statement 115 on Accounting for Certain Investments in Debt
and Equity Securities." As a result of adopting this guidance, the Company
reclassified all of its held-to-maturity securities to available-for-sale based
upon a reassessment of the appropriateness of the classifications of all
securities held at that time. The amortized cost and net unrealized gain of the
securities reclassified were $51,990 and $1,888, respectively, at November 30,
1995.
Proceeds during 1997, 1996 and 1995 from sales of available for sale securities
were $142,773, $118,240 and $41,062. Gross gains and gross losses realized on
those sales were $1,653 and $921, respectively, during 1997, $2,138 and $363,
respectively, during 1996 and $2,453 and $133, respectively, for 1995. The
change in net unrealized gains/(losses) on debt securities classified as
available for sale included as a separate component of stockholder's equity was
$15,127, $(9,283) and $28,269 for 1997, 1996 and 1995, respectively.
The Company's investment portfolio of debt securities is predominantly
comprised of investment grade securities. At December 31, 1997 and 1996, debt
securities with amortized cost totaling $15,302 and $22,476, respectively, were
less than investment grade. At December 31, 1997 and 1996, the Company's debt
portfolio did not include any securities which are either in default as to
principal and/or interest payments, are to be restructured pursuant to
commenced negotiations or are in situations where the borrowers went into
bankruptcy subsequent to acquisition (collectively, "problem debt securities").
The Company did not hold any debt securities which were non-income producing
for the preceding twelve months as of December 31, 1997 and 1996.
At December 31, 1997 and 1996, the Company held no debt securities with
restructured or modified terms.
EQUITY SECURITIES
During 1997, the proceeds from the sales of equity securities amounted to
$3,747, with gross gains of $177. There were no sales of equity securities
during 1996. During 1995, the proceeds from sales of equity securities amounted
to $479. The gross gains and gross losses realized on those sales were $1 and
$84.
B-35
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
MORTGAGE LOANS
On August 29, 1996, in conjunction with its parent, the Company securitized the
majority of its mortgage loan portfolio by transferring the loans to a trust
which qualifies as a REMIC (Real Estate Mortgage Investment Conduit) under the
Internal Revenue Code. Prior to transferring the loans with a principal value
of $65,852 and a book value of $65,821, the loans were written down to a fair
market value of $63,466, and a related reserve of $2,355 was released. The
trust issued sixteen classes of Commercial Mortgage Pass-Through Certificates
with a total par value of $65,651. The certificates evidence the entire
beneficial ownership interest in the trust. The cash flow from the mortgages
will be used to repay the certificates over an average life of 4.28 years. The
actual date on which the principal amount of the notes may be paid in full
could be substantially earlier or later based on performance of the mortgages.
The cash flows of the assets of the trust will be the sole source of payments
on the notes. The Company has not guaranteed these certificates or the mortgage
loans held by the trust.
The Company retained the highest quality classes of certificates with a par
value of $60,071 and a fair market value of $61,683 at the time of the
securitization. As of December 31, 1997, the par value and fair value of these
securities was $47,891 and $50,169, respectively. The Company sold the lowest
rated classes of certificates with a par value of $5,581 and a fair market
value of $2,086.
The mortgage loans which were not included in the securitization and were
retained by the Company had a book value of $19,075 with a related reserve of
$2,971 and an estimated fair value of $16,354 on the date of the
securitization. Loans which the Company intends to dispose of within a period
of 6 to 24 months were written down to their estimated net realizable value.
These loans had a book value of $16,389 and an estimated net realizable value
of $13,668. The writedown of $2,721 was fully offset by a release in mortgage
loss reserve. As of December 31, 1997, the Company did not hold any of these
loans. The Company intends to hold mortgage loans with a book value of $2,686
on the date of the securitization through their remaining terms. As of December
31, 1997, the Company held $2,503 of these loans. The Company discontinued the
origination of commercial mortgage loans in 1996.
The following tables summarize the carrying value of mortgage loans, by
property type and geographic concentration, at December 31.
<TABLE>
<CAPTION>
1997 1996
------ -------
<S> <C> <C>
Property Type
Office buildings............................................... $2,503 $11,264
Valuation Allowance............................................ (100) (200)
------ -------
Total......................................................... $2,403 $11,064
====== =======
</TABLE>
<TABLE>
<CAPTION>
1997 1996
------ -------
<S> <C> <C>
Geographic Concentration
Northeast...................................................... $2,503 $ 5,884
Midwest........................................................ -- 5,380
Valuation Allowance............................................ (100) (200)
------ -------
Total......................................................... $2,403 $11,064
====== =======
</TABLE>
The following table presents changes in the valuation allowance:
<TABLE>
<CAPTION>
1997 1996
----- -------
<S> <C> <C>
Balance at January 1............................................ $ 200 $ 5,276
Recoveries...................................................... (100) --
Charge-offs..................................................... -- (5,076)
----- -------
Balance at December 31......................................... $ 100 $ 200
===== =======
</TABLE>
As of December 31, 1997, the Company's mortgage loan portfolio contained no
loans delinquent over 60 days or in foreclosure. As of December 31, 1996, the
Company's mortgage loan portfolio contained $2,738 of loans delinquent over
B-36
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
60 days or in foreclosure. The Company did not hold any mortgage loans which
were non-income producing for the preceding twelve months as of December 31,
1997 and 1996.
During 1997 and 1996, the Company did not restructure any outstanding
mortgages. Restructured mortgage loans include commercial loans for which the
basic terms, such as interest rate, maturity date, collateral or guaranty have
been changed as a result of actual or anticipated delinquency. Restructures do
not include mortgages refinanced upon maturity at or above current market
rates. During 1997 and 1996, the Company did not refinance any mortgages.
At December 31, 1997, the Company held no loans that were considered to be
impaired. The average recorded investment in impaired loans during the year
ended December 31, 1997 was approximately $4,331. During 1997, $1,012 was
received on these impaired loans which was applied to the outstanding principal
balance.
REAL ESTATE
The following table summarizes the carrying value of the Company's real estate
holdings at December 31:
<TABLE>
<CAPTION>
1997 1996
------ ------
<S> <C> <C>
Properties held for sale........................................ $3,151 $3,041
Less: Valuation Reserves........................................ (235) (927)
------ ------
TOTAL.......................................................... $2,916 $2,114
====== ======
</TABLE>
OTHER
Investments on deposit with regulatory authorities as required by law were $
3,620 at December 31, 1997 and 1996.
As of December 31, 1997 and 1996, the Company's investments included $50,169
and $60,968, respectively, of the tranches retained from the 1996
securitization of the Company's commercial mortgage loan portfolio. These
investments represented 30% and 43% of stockholder's equity as of December 31,
1997 and 1996, respectively.
NOTE 3 - INVESTMENT INCOME AND CAPITAL GAINS:
The following table summarizes the sources of investment income, excluding
investment gains/(losses), for the year ended December 31.
<TABLE>
<CAPTION>
1997 1996 1995
------- ------- -------
<S> <C> <C> <C>
Debt securities........................................ $43,915 $35,009 $31,845
Equity securities...................................... 362 265 338
Mortgage loans......................................... 1,130 8,257 8,355
Real estate............................................ 781 932 1,250
Policy loans........................................... 17,777 18,346 17,701
Short-term investments................................. 709 2,207 615
------- ------- -------
Gross investment income................................ 64,674 65,016 60,104
Less: Investment expenses............................. 2,132 2,233 1,336
------- ------- -------
Investment income, net................................. $62,542 $62,783 $58,768
======= ======= =======
</TABLE>
B-37
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
The following table summarizes net realized capital gains/(losses) on
investments for the year ended December 31. Net realized capital gains/(losses)
include changes in valuation allowances of $792, $4,949 and $(273) during 1997,
1996 and 1995, respectively.
<TABLE>
<CAPTION>
1997 1996 1995
------- ------ -------
<S> <C> <C> <C>
Debt securities....................................... $ 732 $1,775 $ 2,320
Equity securities..................................... 177 -- (83)
Mortgage loans........................................ (1,432) (17) (1,314)
Real estate........................................... 692 553 (718)
Amortization of deferred acquisition costs............ (63) -- --
------- ------ -------
Realized gains........................................ $ 106 $2,311 $ 205
======= ====== =======
</TABLE>
The following table summarizes the change in unrealized gains and losses for
investments carried at fair value for the year ended December 31.
<TABLE>
<CAPTION>
1997 1996 1995
------- ------- -------
<S> <C> <C> <C>
Unrealized Gains/(Losses):
Debt securities...................................... $15,127 $(9,283) $28,269
Equity securities.................................... (265) 69 600
------- ------- -------
14,862 (9,214) 28,869
------- ------- -------
Less:
Deferred policy acquisition costs.................... 5,497 (4,051) 12,600
Deferred income taxes................................ 3,278 (1,820) 5,687
------- ------- -------
Net change in unrealized gains/(losses).............. $ 6,087 $(3,343) $10,582
======= ======= =======
</TABLE>
NOTE 4 - FAIR VALUE INFORMATION:
The following table summarizes the carrying value and estimated fair value of
the Company's financial instruments as of December 31, 1997 and 1996.
<TABLE>
<CAPTION>
1997 1996
----------------- -----------------
CARRYING FAIR CARRYING FAIR
VALUE VALUE VALUE VALUE
-------- -------- -------- --------
<S> <C> <C> <C> <C>
FINANCIAL ASSETS:
Debt securities
Available for sale........................ $659,215 $659,215 $566,592 $566,592
Equity securities
Common stock.............................. -- -- 500 500
Non-redeemable preferred stocks........... 702 702 3,973 3,973
Mortgage loans............................. 2,403 2,523 11,064 11,297
Policy loans............................... 253,886 253,886 246,729 246,729
Cash and cash equivalents.................. 1,510 1,510 1,970 1,970
Short-term investments..................... 2,741 2,741 33,415 33,415
Separate account assets.................... 290,539 290,539 143,346 143,346
FINANCIAL LIABILITIES:
Investment-type contracts
Individual annuities...................... $ 59,333 $ 61,791 $ 42,359 $ 43,040
Other policyholder funds.................. 711,429 711,429 697,558 697,558
-------- -------- -------- --------
Total policyholder funds................. 770,762 773,220 739,917 740,598
Separate account liabilities............... 290,539 290,539 143,346 143,346
</TABLE>
B-38
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
The estimated fair values for the Company's investments in debt and equity
securities are based on quoted market prices, where available. In situations
where market prices are not readily available, primarily private placements,
fair values are estimated using a formula pricing method based on fair values
of securities with similar characteristics. The estimated fair value of
currently performing mortgage loans is estimated by discounting the cash flows
associated with the investment, using an interest rate currently offered for
similar loans to borrowers with similar credit ratings. Loans with similar
credit quality, characteristics and time to maturity are aggregated for
purposes of discounted cash flow analysis. Assumptions regarding credit risk,
cash flows and discount rates are determined using the available market and
borrower-specific information. The estimated fair value for non-performing
loans is based on the estimated fair value of the underlying real estate, which
is based on recent appraisals or other estimation techniques. The estimated
fair value of policy loans is calculated by discounting estimated future cash
flows using interest rates currently being offered for similar loans. Loans
with similar characteristics are aggregated for purposes of the calculations.
The carrying values of cash, cash equivalents, and short-term investments
approximate their fair values. The statement values of other policyholder funds
and separate account liabilities approximate their fair values.
The fair values of the Company's liabilities for individual annuities are
estimated by discounting the cash flows associated with the contracts, using an
interest rate currently offered for similar contracts with maturities similar
to those remaining for the contracts being valued. The statement values of
other policyholder funds and separate account liabilities approximate their
fair values.
Currently, disclosure of estimated fair values is not required for all the
Company's assets and liabilities. Therefore, presentation of the estimated fair
value of a significant portion of assets without a corresponding valuation of
liabilities associated with insurance contracts can be misinterpreted. The
estimated fair values of liabilities under all of the Company's contracts are
considered in the overall management of interest rate risk. The continuing
management of the relationship between the maturities of the Company's
investments and the amounts due under insurance contracts reduces the Company's
exposure to changing interest rates.
The Company is exposed to interest rate risk on its interest sensitive
products. The Company's investment strategy is designed to minimize interest
risk by managing the durations and anticipated cash flows of the Company's
assets and liabilities.
In the normal course of business, the Company loans securities under
arrangements in which collateral is obtained in amounts greater than the
current market value of loaned securities. This collateral is held in the form
of cash, cash equivalents or securities issued or guaranteed by the United
States Government. The Company is at risk to the extent the value of loaned
securities exceeds the value of the collateral obtained. The Company controls
this risk by requiring collateral of the highest quality and requiring that
additional collateral be deposited when the market value of loaned securities
increases in relation to the collateral held or the value of the collateral
held decreases in relation to the value of the loaned securities. The Company
had loaned securities outstanding of $12,275 and $0 as of December 31, 1997 and
1996, respectively.
B-39
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
NOTE 5 - INCOME TAXES:
The Company follows the asset and liability method of accounting for income
taxes whereby current and deferred tax assets and liabilities are recognized
utilizing currently enacted tax laws and rates. Deferred taxes are adjusted to
reflect tax rates at which future tax liabilities or assets are expected to be
settled or realized.
Deferred income taxes reflect the impact for financial statement reporting
purposes of temporary differences between the financial statement carrying
amounts and tax bases of assets and liabilities. The significant temporary
differences that give rise to the deferred tax assets and liabilities at
December 31 relate to the following:
<TABLE>
<CAPTION>
1997 1996
------- -------
<S> <C> <C>
DEFERRED TAX ASSETS
Future policy benefits......................................... $10,003 $10,075
Allowances for investment losses............................... 117 394
Other.......................................................... 2,819 4,000
------- -------
Total deferred tax asset...................................... 12,939 14,469
------- -------
DEFERRED TAX LIABILITIES
Deferred acquisition costs..................................... 30,093 28,114
Unrealized gains............................................... 4,380 1,113
Other.......................................................... 1,690 2,023
------- -------
Total deferred tax liability.................................. 36,164 31,250
------- -------
Net deferred tax liability..................................... $23,225 $16,781
======= =======
</TABLE>
The federal income taxes attributable to net income are different from the
amounts determined by multiplying net income before federal income taxes by the
expected federal income tax rate. The difference between the amount of tax at
the U.S. federal income tax rate of 35% and the consolidated tax provision is
summarized as follows:
<TABLE>
<CAPTION>
1997 1996 1995
------- ------ ------
<S> <C> <C> <C>
Tax expense at 35%..................................... $10,030 $9,245 $8,018
Increase (decrease) in income taxes resulting from:
Differential earnings amount.......................... 1,073 845 478
Other................................................. 38 (515) (167)
------- ------ ------
$11,141 $9,575 $8,329
======= ====== ======
</TABLE>
As a wholly-owned subsidiary of a mutual life insurance company, the Company is
subject to Internal Revenue Code provisions which require mutual, but not
stock, life insurance companies to include the Differential Earnings Amount
(DEA) in each year's taxable income. This amount is computed by multiplying the
Company's average taxable equity base by a prescribed rate, which is intended
to reflect the difference between stock and mutual companies' earnings rates.
The Internal Revenue Service has examined Penn Mutual's income tax returns
through the year 1990 and is currently examining years 1991 through 1994.
Management believes that an adequate provision has been made for any potential
assessments.
B-40
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
NOTE 6 - REINSURANCE:
The Company has assumed and ceded reinsurance on certain life and annuity
contracts under various agreements. Reinsurance permits recovery of a portion
of losses from reinsurers, although the Company remains primarily liable as the
direct insurer on all risks reinsured. The Company evaluates the financial
strength of potential reinsurers and continually monitors the financial
condition of present reinsurers to ensure that amounts due from reinsurers are
collectable. The table below highlights the amounts shown in the accompanying
financial statements.
<TABLE>
<CAPTION>
ASSUMED CEDED TO
GROSS FROM OTHER OTHER NET
AMOUNT COMPANIES COMPANIES AMOUNT
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
DECEMBER 31, 1997:
Life Insurance in Force........... $3,319,653 $2,910,310 $3,249,025 $2,980,938
Premiums.......................... 29,761 -- -- 29,761
Benefits.......................... 16,656 4,945 7,051 14,550
Reserves.......................... 604,209 240,046 3,371 840,884
DECEMBER 31, 1996:
Life Insurance in Force........... $3,235,176 $3,063,179 $3,466,292 $2,832,063
Premiums.......................... 25,743 139 -- 25,882
Benefits.......................... 14,788 5,428 7,091 13,125
Reserves.......................... 787,703 136 4,362 783,477
</TABLE>
During 1995, the Company had gross premiums of $5,728 and gross benefits of
$15,421, assumed benefits of $8,971 and ceded benefits of $13,812.
The Company assumes and cedes certain risks under reinsurance agreements with
Penn Mutual. Net life insurance in-force assumed from Penn Mutual totaled
$351,000 and $327,897 as of December 31, 1997 and 1996, respectively. The
Company maintained reserves related to these policies of $239,446 and $243,426
as of December 31, 1997 and 1996, respectively. Net premium and annuity
considerations assumed in connection with these agreements were $7,009 and
$7,160 in 1997 and 1996, respectively. Net premium and annuity considerations
assumed in 1995 were $8,799.
The Company's intercompany yearly renewable term (YRT) reinsurance treaty with
its parent, Penn Mutual, to which the Company cedes some of the risk, was
modified during 1995 to reflect an experience refund from Penn Mutual in the
amount of 75% of any reinsurance gain that is generated on the products
involved in the reinsurance agreement. As a result of the change to this
reinsurance treaty, $3,831, $4,461 and $2,257 was received by the Company from
Penn Mutual as an experience rating refund in 1997, 1996 and 1995,
respectively.
During 1995, the Company recaptured its single premium immediate annuity
business which it had previously ceded entirely to Penn Mutual. The transaction
resulted in the transfer of $31,314 of invested assets and policyholder
liabilities from Penn Mutual to the Company. In addition, the Company has
recognized $31,314 in reinsurance income as a result of this transaction that
is reflected in other income in 1995 and correspondingly in the increase in
liability for future policy benefits in the Income Statement.
NOTE 7 - RELATED PARTY TRANSACTIONS:
The Company's parent has undertaken to provide sufficient financial support so
that the Company will have adequate capital and surplus as required by
applicable laws to meet its obligation to its policyholders under the terms of
the Company's policies and contracts.
Under the terms of an expense allocation agreement, the Company reimbursed Penn
Mutual for services and facilities provided on behalf of the Company, including
direct and allocated expenses. For 1997, 1996 and 1995, the total expenses
incurred under this agreement were $8,245, $8,915 and $6,738, respectively.
State insurance laws limit the amount of dividends that the Company may pay to
Penn Mutual.
B-41
<PAGE>
- --------------------------------------------------------------------------------
THE PENN INSURANCE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
NOTE 8 - COMMITMENTS AND CONTINGENCIES:
The Company and its parent are respondents in a number of proceedings, some of
which involve extra-contractual damage in addition to other damages. In
addition, insurance companies are subject to assessments, up to statutory
limits, by state guaranty funds for losses of policyholders of insolvent
insurance companies. In the opinion of management, the outcome of the
proceedings and assessments are not likely to have a material adverse effect on
the financial position of the Company.
The Company, in the ordinary course of business, extends commitments relating
to its investment activities. As of December 31, 1997 and 1996, the Company had
no outstanding commitments relating to these investment activities.
NOTE 9 - STATUTORY INFORMATION:
State insurance regulatory authorities prescribe or permit statutory accounting
practices for calculating net income and capital and surplus which differ in
certain respects from generally accepted accounting principles (GAAP). The
significant differences relate to deferred acquisition costs, which are charged
to expenses as incurred; federal income taxes, which reflect amounts that are
currently taxable; and benefit reserves, which are determined using prescribed
mortality, morbidity and interest assumptions, and which, when considered in
light of the assets supporting these reserves, adequately provide for
obligations under policies and contracts. In addition, the recording of
impairments in the value of investments under statutory accounting principles
generally lags recognition under GAAP.
The company's statutory capital and surplus at December 31, 1997 and 1996 was
$100,812, and $82,102, respectively. The company's net income, determined in
accordance with statutory accounting practices, for the years ended December
31, 1997, 1996 and 1995 was $16,747, $15,917 and $10,276, respectively.
B-42
<PAGE>
PART C
------
Other Information
-----------------
<PAGE>
Item 24. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements included in Part B:
Financial Statements of Penn Variable Annuity Account I:
Report of Independent Accountants
Statement of Assets and Liabilities - December 31, 1997
Statement of Operations - For the year ended December 31, 1997
Statements of Changes in Net Assets - For the years ended
December 31, 1997
Notes to Financial Statements
Financial Statements of The Penn Insurance and Annuity
Company:
Report of Independent Accountants
Statements of Financial Condition at December 31, 1997 and
1996
Statements of Operations for the years ended December 31,
1997, 1996 and 1995
Statements of Changes in Stockholders' Equity for the years
ended December 31, 1997, 1996 and 1995
Statements of Cash Flows for the years ended December 31,
1997, 1996 and 1995
Notes to Financial Statements
(b) Exhibits
1. Resolution of Board of Directors of The Penn Insurance
and Annuity Company authorizing the establishment of
the Registrant. Incorporated herein by reference to
Exhibit 1 to this Registration Statement filed on
August 22, 1994.
2. Not applicable.
3. (a) Sales Support Agreement between The Penn Insurance and
Annuity Company and Hornor, Townsend & Kent, Inc.
Incorporated herein by reference to Exhibit 3(a) to
Pre-Effective Amendment No. 1 to this Registration
Statement filed on February 22, 1995.
C-1
<PAGE>
(b) Agent's Agreement between the Company , Hornor,
Townsend & Kent, Inc. and Agent, relating to broker
dealer supervision. Incorporated herein by reference
to Exhibit 3(b) to Pre-Effective Amendment No. 1 to
this Registration Statement filed on February 22,
1995.
(c) Distribution Agreement between The Penn Insurance and
Annuity Company and Hornor, Townsend & Kent, Inc.
Incorporated herein by reference to Exhibit 3(c) to
Pre-Effective Amendment No. 1 to this Registration
Statement filed on February 22, 1995
4. Individual Variable and Fixed Annuity Contract.
Incorporated herein by reference to Exhibit 4 to Pre-
Effective Amendment No. 1 to this Registration
Statement filed on February 22, 1995.
5. Application for Individual Variable and Fixed Annuity
Contract. Incorporated herein by reference to Exhibit
5 of Pre-Effective Amendment No. 1 to this
Registration Statement filed on February 22, 1995.
6. (a) Charter of The Penn Insurance and Annuity Company.
Incorporated herein by reference to Exhibit 6(a) to
this Registration Statement filed on August 22, 1994.
(b) By-laws of The Penn Insurance and Annuity Company.
Incorporated herein by reference to Exhibit 6(b) to
this Registration Statement filed on August 22, 1994.
7. None.
8. (a) Fund Participation Agreement among The Penn Insurance
and Annuity Company, TCI Portfolios, Inc. (renamed
American Century Variable Portfolios, Inc., effective
May 1, 1997) and Investors Research Corporation
(renamed American Century Investment Management, Inc.
effective May 1, 1997). Incorporated herein by
reference to Exhibit 8(a) to Pre-Effective Amendment
No. 1 to this Registration Statement filed on February
22, 1995.
C-2
<PAGE>
(b)(1) Sales Agreement between The Penn Insurance and Annuity
Company and Neuberger & Berman Advisers Management
Trust. Originally filed as Exhibit 8(b) to Pre-
Effective Amendment No. 1 to this Registration
Statement filed on February 22, 1995. Incorporated
herein by reference to Exhibit 8(b)(1) to Post-
Effective Amendment No. 1 to this Registration
Statement filed on April 29, 1996.
(b)(2) Assignment and Modification Agreement between Neuberger
& Berman Advisers Management Trust, Neuberger & Berman
Management Incorporated, Neuberger & Berman Advisers
Managers Trust, Advisers Managers Trust and and The
Penn Insurance and Annuity Company. Incorporated herein
by reference to Exhibit 8(b)(2) to Post-Effective
Amendment No. 1 to this Registration Statement filed on
April 29, 1996.
(b)(3) Amendment to Participation Agreement between The Penn
Insurance and Annuity Company and Neuberger & Berman
Advisers Management Trust. Incorporated herein by
reference to Exhibit 8(b)(3) to Post-Effective
Amendment No. 2 to this Registration Statement filed on
April 29, 1997.
(c) Participation Agreement between The Penn Insurance and
Annuity Company and Variable Insurance Products Fund.
Incorporated herein by reference to Exhibit 8(c) to
Pre-Effective Amendment No. 1 to this Registration
Statement filed on February 22, 1995.
(d) Participation Agreement between The Penn Insurance and
Annuity Company and Variable Insurance Products Fund
II. Incorporated herein by reference to Exhibit 8(d) to
Pre-Effective Amendment No. 1 to this Registration
Statement filed on February 22, 1995.
(e) Sales Agreement between Penn Series Funds, Inc. and The
Penn Insurance and Annuity Company. Incorporated herein
by reference to Exhibit 8(e) to Pre-Effective Amendment
No. 1 to this Registration Statement filed on February
22, 1995.
C-3
<PAGE>
(f) Participation Agreement between The Penn Insurance and
Annuity Company and Morgan Stanley Universal Funds, Inc.
Incorporated herein by reference to Exhibit 8(f) to
Post-Effective Amendment No. 2 to this Registration
Statement filed on April 30, 1997.
9. Opinion of C. Ronald Rubley, Esq., Associate General
Counsel to The Penn Mutual Life Insurance Company
(parent of the Company), as to the legality of the
Contracts. Incorporated herein by reference to Exhibit 9
to Pre-Effective Amendment No.1 to this Registration
Statement fled on February 22, 1995.
10. (a)(1)Consent of Ernst & Young, LLP. Filed herewith.
(a)(2)Consent of Coopers & Lybrand LLP. Filed herewith.
(b) Consent of Morgan, Lewis & Bockius LLP. Filed herewith.
11. None.
12. None.
13. Schedule for Computation of Performance Quotations.
Filed herewith.
14. (a) Powers of Attorney of Directors (except Larry L. Mast).
Incorporated herein by reference to Exhibit 14(a) to
Post-Effective Amendment 2 to this Registration
Statement filed on April 30, 1997.
(b) Power of Attorney of Larry L. Mast, Director. Filed
herewith.
C-4
<PAGE>
Item 25. Directors and Officers of the Depositor
---------------------------------------
The following table sets forth all of the directors and officers of the
Depositor.
DIRECTORS
- ---------
Robert E. Chappell Ernest K. Noll
Nancy S. Brodie Rudolph C. Sander
Larry L. Mast Daniel J. Toran
OFFICERS
- --------
Daniel J. Toran Steven M. Herzberg
President Treasurer
Nancy S. Brodie Franklin L. Best, Jr.
Executive Vice President and Secretary and Counsel
Chief Financial Officer
Ann M. Strootman
Peter M. Sherman Controller
Senior Vice President and
Chief Investment Officer Barbara B. Henderson
Investment Officer
Robert P. Davis
Vice President and Chief Actuary Ronald M. Pappas
Investment Officer
Peter R. Schaefer
Vice President and Actuary Thomas F. Gumina
Medical Director
Patrick J. Fillette
Vice President Lawrence N. Saltzman
Assistant Treasurer
Harold E. Maude, Jr.
Vice President Laura M. Ritzko
Assistant Secretary
Richard F. Plush
Vice President Alicia H. Bolton
Assistant Controller
The business address of the directors and officers, except Messrs. Noll and
Sander, is The Penn Mutual Life Insurance Company, Philadelphia, PA 19172. The
address of Mr. Noll is
C-5
<PAGE>
421 Keats Road, Huntingdon Valley, PA 19006. The business address of Mr. Sander
is Janney Montgomery Scott Inc., 1801 Market Street, Philadelphia, PA 19103.
Item 26. Persons Controlled By or Under Common Control with the Depositor or
-------------------------------------------------------------------
Registrant
----------
The Depositor is a wholly-owned subsidiary of The Penn Mutual Life Insurance
Company.
Penn Mutual Wholly-Owned Subsidiaries
-------------------------------------
<TABLE>
<CAPTION>
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
<S> <C> <C>
The Penn Insurance and Life Insurance and Annuities Delaware
Annuity Company
Independence Capital Investment Adviser Pennsylvania
Management, Inc.
Penn Janney Fund, Inc. Investments Pennsylvania
Independence Square Holding Company Pennsylvania
Properties, Inc.
The Pennsylvania Trust Trust Company Pennsylvania
Company
</TABLE>
Independence Square Properties, Inc.
Wholly-Owned Subsidiaries
-------------------------
<TABLE>
<CAPTION>
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
<S> <C> <C>
Penn Glenside Corporation Real Estate Investment Pennsylvania
Penn Wayne Corporation Real Estate Investment Pennsylvania
St. James Realty Real Estate Investment Pennsylvania
Corporation
Investors' Mortgage Real Estate Investment Pennsylvania
Corporation
Christie Street Real Estate Investment Pennsylvania
Properties, Inc.
Indepro Corporation Real Estate Investment Delaware
</TABLE>
C-6
<PAGE>
<TABLE>
<CAPTION>
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
<S> <C> <C>
Economic Resources Real Estate Investment Delaware
Associates, Inc.
WPI Investment Company Real Estate Investment Delaware
Hornor, Townsend & Kent, Registered Broker-Dealer Pennsylvania
Inc. and Investment Adviser
Penn Tallahassee Real Estate Investment Florida
Corporation
Janney Montgomery Scott Registered Broker-Dealer Delaware
Inc. and Investment Adviser
</TABLE>
Indepro Corporation
Wholly-Owned Subsidiaries
-------------------------
<TABLE>
<CAPTION>
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
<S> <C> <C>
Indepro Property Fund I Real Estate Investment Delaware
Corporation
Indepro Property Fund II Real Estate Investment Delaware
Corporation
Commons One Corporation Real Estate Investment Delaware
West Hazleton, Inc. Real Estate Investment Delaware
</TABLE>
Janney Montgomery Scott, Inc.
Wholly-Owned Subsidiaries
-------------------------
<TABLE>
<CAPTION>
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
<S> <C> <C>
Addison Capital Investment Adviser Pennsylvania
Management, Inc.
JMS Resources, Inc. Oil and Gas Development Pennsylvania
JMS Investor Services, Inc. Insurance Sales Delaware
</TABLE>
C-7
<PAGE>
Item 27. Number of Contract Owners
-------------------------
As of March 1, 1998, there were:
2,573 owners of qualified individual variable annuity contracts
2,174 owners of nonqualified individual variable annuity contracts
Item 28. Indemnification
---------------
Article 4.1 of the By-laws of The Penn Insurance and Annuity Company
provides as follows: "The Company shall indemnify any person who was
or is a party or threatened to be made a party to any threatened,
pending or completed action, suit or proceeding either civil,
criminal, administrative or investigative by reason of the fact that
he is or was a Director, Officer or employee of the Company or is or
was serving at the request of the Company as a director, officer or
employee of another enterprise against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit or
proceeding to the extent that such person is not otherwise indemnified
and the power to do so has been or may be granted by statute. For this
purpose the Board of Directors may, and on request of any such person
shall be required to, determine in each case whether or not the
applicable standards in any such statute have been met, or such
determination shall be made by independent legal counsel, if the Board
so directs or if the Board is not empowered by statute to make such
determination." Article 4.2 further provides that the foregoing
indemnification provision is not exclusive, and Article 4.3 authorizes
the Board to purchase at the Company's expense insurance and to give
other indemnification to the extent permitted by law.
Selling Agreements entered into by The Penn Insurance and Annuity
Company ("PIA") and its affiliate, Hornor, Townsend & Kent, Inc.
("HTK") with securities brokers and insurance agents generally provide
for indemnification of PIA and HTK and their directors and officers in
the event of liability resulting from unauthorized acts of the brokers
and insurance agents.
Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or
proceeding) is asserted by such
C-8
<PAGE>
director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of
such issue.
Item 29. Principal Underwriters
----------------------
Hornor, Townsend & Kent, Inc. serves as principal underwriter of the
securities of the Securities Registrant.
Hornor, Townsend & Kent, Inc. serves as principal underwriter for
Addison Capital Shares, Inc., a registered investment company, and for
variable annuity and variable life insurance contracts issued by Penn
Mutual and funded through Variable Annuity Account III and Variable
Life Account I.
Hornor, Townsend & Kent, Inc. - Directors and Officers
------------------------------------------------------
John J. Gray, Director and Chairman of the Board
Harold E. Maude, Jr., Director
Nina M. Mulrooney, Director
Daniel J. Toran, Director
Norman T. Wilde, Jr., Director
Ronald C. Zimmerman, President and Chief Executive Officer
Michael D. Sweeney, Assistant Vice President, Director of Compliance
and Secretary
Edward G. Pecelli - Assistant Vice President, Director of Sales and
Marketing
Laura M. Ritzko, Assistant Secretary
Joseph R. Englert, Assistant Vice President, Director of Operations
Henry S. Buck, Assistant Vice President and Assistant Treasurer
Barbara S. Wood, Senior Vice President, Finance and Treasurer
Bruce Ohrenich, Vice President, Sales
William H. Pentz, Counsel
Constance Flaville, Assistant Secretary
The principal business address of Messrs. Gray and Wilde is Janney,
Montgomery, Scott Inc., 1801 Market Street, Philadelphia,
Pennsylvania.
The principal business address of the other directors and officers is
Hornor, Townsend & Kent, Inc., 600 Dresher Road, Horsham,
Pennsylvania.
C-9
<PAGE>
Commissions and Other Compensation Received By Each Principal
--------------------------------------------------------------
Underwriter During Last Fiscal Year
-----------------------------------
Net Underwriting Compensation
Name of Principal Discounts and on Broker Other
Underwriter Commissions Redemption Commissions Commissions
- ----------------- ---------------- ------------ ----------- -----------
Hornor, Townsend & $138,545 $0 $0 $0
Kent, Inc.
Item 30. Location of Accounts and Records
--------------------------------
The name and address of the person who maintains physical possession
of each account, book or other documents required by Section 31(a) of
the Investment Company Act of 1940 is as follows:
The Penn Insurance and Annuity Company
600 Dresher Road
Horsham, Pennsylvania 19044
Item 31. Management Services
-------------------
See "Administrative and Recordkeeping Services" in Part B of this
Registration Statement.
Item 32. Undertakings
------------
The Penn Insurance and Annuity Company hereby undertakes:
--------------------------------------------------------
(a) to file a post-effective amendment to this registration
statement as frequently as is necessary to ensure that the
audited financial statements in the registration statement are
never more than 16 months old for so long as payments under the
variable annuity contracts may be accepted;
(b) to include either (1) as part of any application to purchase a
contract or account offered by the prospectus, a space that an
applicant can check to request a statement of additional
information, or (2) a post card or similar written communication
affixed to or included in the prospectus that the applicant can
remove to send for a statement of additional information;
(c) to deliver any statement of additional information and any
financial statements required to be made available under Form
N-4 promptly upon written or oral request.
C-10
<PAGE>
Restrictions on withdrawals under Section 403(b) contracts are imposed in
reliance upon, and in compliance with, a no-action letter issued by the Chief of
the Office of Insurance Products and Legal Compliance of the Securities and
Exchange Commission to the American Council of Life Insurance on November 28,
1988.
The Penn Insurance and Annuity Company represents that the fees and charges
deducted under the Individual Variable and Fixed Annuity Contract, in the
aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the Registrant.
C-11
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this Post-Effective Amendment
No. 4 to this Registration Statement and has caused this Post-Effective
Amendment No. 4 to be signed on its behalf, in the Township of Horsham and
Commonwealth of Pennsylvania on this 17th day of April, 1998.
PIA VARIABLE ANNUITY ACCOUNT I
(Registrant)
By: /s/ DANIEL J. TORAN
---------------------------------------
Daniel J. Toran
President
As required by the Securities Act of 1933, this Registration Statement
has been signed by the following persons, in the capacities indicated, on the
17th day of April, 1998.
Signature Title
- --------- -----
*Daniel J. Toran President and Director
(Principal Executive Officer)
/s/ NANCY S. BRODIE Executive Vice President,
- ------------------- Chief Financial Officer and Director
Nancy S. Brodie (Principal Financial Officer)
/s/ ANN M. STROOTMAN Controller
- -------------------- (Principal Accounting Officer)
Ann M. Strootman
*Robert E. Chappell Director
*Larry L. Mast Director
*Ernest K. Noll Director
*Rudolph C. Sander Director
*By: /s/ ROBERT E. CHAPPELL
---------------------------------------
Robert E. Chappell, attorney-in-fact
<PAGE>
EXHIBIT INDEX
-------------
EX-99.B 10(a)(1) Consent of Coopers & Lybrand LLP
EX-99.B 10(a)(2) Consent of Ernst & Young LLP
EX-99.B 10(b) Consent of Morgan, Lewis & Bockius LLP
EX-99.B 13 Schedule for Computation of Performance Quotations
EX-99B14(b) Power of Attorney of Larry L. Mast
C-13
<PAGE>
Exhibit 10(a)(1)
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the following with respect to Post-Effective Amendment No.
4 and Amendment No. 4 to the Registration Statement on Form N-4 (File No. 33-
83120), filed on behalf of The Penn Insurance and Annuity Company and PIA
Variable Annuity Account I under the Securities Act of 1933 and the Investment
Company Act of 1940:
1. The inclusion in the Statement of Additional Information of our report
dated January 31, 1997 on our audits of the financial statements of The
Penn Insurance and Annuity Company as of December 31, 1996 and for the
two years in the period ended December 31, 1996.
2. The inclusion in the Statement of Additional Information of our report
dated April 7, 1997 on our audit of the financial statement of PIA
Variable Annuity Account I - Pennant for the year ended December 31,
1996.
3. The reference to our firm under the heading of "Experts" in the
Registration Statement.
/s/ Coopers & Lybrand L.L.P.
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
April 20, 1998
<PAGE>
Exhibit 10(a)(2)
Consent of Ernst & Young LLP, Independent Auditors
We consent to the reference to our firm under the caption "Independent Auditors"
in the Statement of Additional Information, and to the use of our report dated
January 30, 1998 accompanying the financial statements of the Penn Insurance and
Annuity Company for the year ended December 31, 1997, and to the use of our
report dated March 30, 1998 accompanying the financial statements of PIA Annuity
Account I for the year ended December 31, 1997 in the Post-Effective Amendment
Number 4 to Registration Statement Number 33-83120 on Form N-4 and the related
Statement of Additional Information of PIA Annuity Account I.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
April 20, 1998
<PAGE>
Exhibit 10(b)
2000 One Logan Square Morgan, Lewis
Philadelphia, PA 19103-6993 & Bockius LLP
215-963-5000 Counselors At Law
Fax: 215-963-5299
April 20, 1998
Board of Trustees
The Penn Mutual Life Insurance Company
Philadelphia, PA 19172
Re: PIA Variable Annuity Account I
------------------------------
SEC Registration No. 33-83120
-----------------------------
Dear Ladies and Gentlemen:
We hereby consent to the reference of our name under the caption "Legal Matters"
in the Statement of Additional Information filed as part of this Post-Effective
Amendment No. 4. In giving this consent, we do not admit that we are in the
category of persons whose consent is required under Section 7 of the Securities
Act of 1933.
Very truly yours,
/s/ Morgan, Lewis & Bockius LLP
- -------------------------------
Morgan, Lewis & Bockius LLP
<PAGE>
Exhibit 13
Pennant table 1
Table 1
Pennant
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
inception default Ended Ended Ended Through
fund date amount 12/31/97 12/31/97 12/31/97 12/31/97
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALFND 2/28/89 $1,000.00 11.70% 8.22% 0.00% 9.59%
- ---------------------------------------------------------------------------------------------------
CAPAPP 11/20/87 $1,000.00 -9.63% 3.71% 7.06% 7.65%
- ---------------------------------------------------------------------------------------------------
EMGGRO 5/1/97 $1,000.00 0.00% 0.00% 0.00% 49.57%
- ---------------------------------------------------------------------------------------------------
EMGMKT 10/1/96 $1,000.00 -6.14% 0.00% 0.00% -6.76%
- ---------------------------------------------------------------------------------------------------
FIDASM 9/6/89 $1,000.00 12.83% 10.96% 0.00% 11.11%
- ---------------------------------------------------------------------------------------------------
FIDEQI 10/9/86 $1,000.00 19.51% 17.63% 14.77% 12.74%
- ---------------------------------------------------------------------------------------------------
FIDGRO 10/9/86 $1,000.00 15.13% 15.62% 15.29% 13.68%
- ---------------------------------------------------------------------------------------------------
FIDIND 8/27/92 $1,000.00 24.46% 18.26% 0.00% 18.26%
- ---------------------------------------------------------------------------------------------------
FLEXMN 7/31/84 $1,000.00 7.65% 12.23% 12.26% 13.30%
- ---------------------------------------------------------------------------------------------------
GROWEQ 6/1/83 $1,000.00 18.54% 12.62% 12.41% 11.17%
- ---------------------------------------------------------------------------------------------------
HIBOND 8/6/84 $1,000.00 8.28% 9.26% 9.55% 9.24%
- ---------------------------------------------------------------------------------------------------
INTLEQ 11/1/92 $1,000.00 3.04% 11.52% 0.00% 11.46%
- ---------------------------------------------------------------------------------------------------
LIMMAT 9/10/84 $1,000.00 -0.16% 3.76% 5.54% 6.65%
- ---------------------------------------------------------------------------------------------------
PARTNR 3/22/94 $1,000.00 22.99% 0.00% 0.00% 21.76%
- ---------------------------------------------------------------------------------------------------
QUALBD 3/17/87 $1,000.00 1.01% 5.47% 7.14% 6.54%
- ---------------------------------------------------------------------------------------------------
SMLCAP 3/1/95 $1,000.00 14.93% 0.00% 0.00% 15.95%
- ---------------------------------------------------------------------------------------------------
VALUEQ 3/17/87 $1,000.00 16.56% 16.45% 14.81% 12.61%
- ---------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Pennant table 2
Table 2
Pennant
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
inception default Ended Ended Ended Through
fund date amount 12/31/97 12/31/97 12/31/97 12/31/97
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALFND 2/28/89 $1,000.00 17.71% 8.59% 0.00% 9.59%
- --------------------------------------------------------------------------------------------------------
CAPAPP 11/20/87 $1,000.00 -4.76% 4.07% 7.06% 7.65%
- --------------------------------------------------------------------------------------------------------
EMGGRO 5/1/97 $1,000.00 0.00% 0.00% 0.00% 61.75%
- --------------------------------------------------------------------------------------------------------
EMGMKT 10/1/96 $1,000.00 -1.09% 0.00% 0.00% -2.77%
- --------------------------------------------------------------------------------------------------------
FIDASM 9/6/89 $1,000.00 18.90% 11.34% 0.00% 11.11%
- --------------------------------------------------------------------------------------------------------
FIDEQI 10/9/86 $1,000.00 25.95% 18.04% 14.77% 12.74%
- --------------------------------------------------------------------------------------------------------
FIDGRO 10/9/86 $1,000.00 21.34% 16.02% 15.29% 13.68%
- --------------------------------------------------------------------------------------------------------
FIDIND 8/27/92 $1,000.00 31.14% 18.67% 0.00% 18.64%
- --------------------------------------------------------------------------------------------------------
FLEXMN 7/31/84 $1,000.00 13.46% 12.61% 12.26% 13.30%
- --------------------------------------------------------------------------------------------------------
GROWEQ-Q 6/1/83 $1,000.00 24.91% 13.01% 12.41% 11.17%
- --------------------------------------------------------------------------------------------------------
HIBOND 8/6/84 $1,000.00 14.11% 9.63% 9.55% 9.24%
- --------------------------------------------------------------------------------------------------------
INTLEQ 11/1/92 $1,000.00 8.59% 11.90% 0.00% 11.83%
- --------------------------------------------------------------------------------------------------------
LIMMAT 9/10/84 $1,000.00 5.21% 4.11% 5.54% 6.65%
- --------------------------------------------------------------------------------------------------------
PARTNR 3/22/94 $1,000.00 29.60% 0.00% 0.00% 22.88%
- --------------------------------------------------------------------------------------------------------
QUALBD 3/17/87 $1,000.00 6.44% 5.83% 7.14% 6.54%
- --------------------------------------------------------------------------------------------------------
SMLCAP 3/1/95 $1,000.00 21.12% 0.00% 0.00% 17.74%
- --------------------------------------------------------------------------------------------------------
VALUEQ 3/17/87 $1,000.00 22.85% 16.85% 14.81% 12.61%
- --------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Pennant table 3
Table 3
Pennant
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
inception default Ended Ended Ended Through
fund date amount 12/31/97 12/31/97 12/31/97 12/31/97
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALFND 2/28/89 $10,000.00 17.79% 8.66% 0.00% 9.65%
- -------------------------------------------------------------------------------------------------------------
CAPAPP 11/20/87 $10,000.00 -4.62% 4.19% 7.16% 7.76%
- -------------------------------------------------------------------------------------------------------------
EMGGRO 5/1/97 $10,000.00 0.00% 0.00% 0.00% 61.77%
- -------------------------------------------------------------------------------------------------------------
EMGMKT 10/1/96 $10,000.00 -1.09% 0.00% 0.00% -2.76%
- -------------------------------------------------------------------------------------------------------------
FIDASM 9/6/89 $10,000.00 18.97% 11.40% 0.00% 11.16%
- -------------------------------------------------------------------------------------------------------------
FIDEQI 10/9/86 $10,000.00 26.29% 18.30% 14.99% 12.98%
- -------------------------------------------------------------------------------------------------------------
FIDGRO 10/9/86 $10,000.00 21.72% 16.32% 15.52% 13.93%
- -------------------------------------------------------------------------------------------------------------
FIDIND 8/27/92 $10,000.00 31.16% 18.68% 0.00% 18.65%
- -------------------------------------------------------------------------------------------------------------
FLEXMN 7/31/84 $10,000.00 13.99% 13.04% 12.59% 13.56%
- -------------------------------------------------------------------------------------------------------------
GROWEQ 6/1/83 $10,000.00 24.98% 13.06% 12.45% 11.20%
- -------------------------------------------------------------------------------------------------------------
HIBOND 8/6/84 $10,000.00 14.17% 9.68% 9.59% 9.28%
- -------------------------------------------------------------------------------------------------------------
INTLEQ 11/1/92 $10,000.00 8.84% 12.09% 0.00% 12.05%
- -------------------------------------------------------------------------------------------------------------
LIMMAT 9/10/84 $10,000.00 5.25% 4.15% 5.57% 6.68%
- -------------------------------------------------------------------------------------------------------------
PARTNR 3/22/94 $10,000.00 29.61% 0.00% 0.00% 22.88%
- -------------------------------------------------------------------------------------------------------------
QUALBD 3/17/87 $10,000.00 6.52% 5.90% 7.20% 6.60%
- -------------------------------------------------------------------------------------------------------------
SMLCAP 3/1/95 $10,000.00 21.29% 0.00% 0.00% 17.90%
- -------------------------------------------------------------------------------------------------------------
VALUEQ 3/17/87 $10,000.00 23.20% 17.15% 15.03% 12.85%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 1A - Pennant
Pennant - 1 YR - Tbl 1A
<TABLE>
<CAPTION>
Beginning # of units
- ----------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a PENN BALFND Q 12/31/96 12.281752 1000.000000 81.421608
- ----------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/97 14.467110 1177.935363 81.421608
- ----------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/96 12.092262 1000.000000 82.697514
- ----------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/97 11.535663 953.970647 82.697514
- ----------------------------------------------------------------------------------------
1a PENN EMGMKT Q 12/31/96 9.064076 1000.000000 110.325642
- ----------------------------------------------------------------------------------------
1a PENN EMGMKT Q 12/31/97 8.965575 989.132814 110.325642
- ----------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/96 12.967956 1000.000000 77.113155
- ----------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/97 15.428479 1189.738691 77.113155
- ----------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/96 14.198506 1000.000000 70.429945
- ----------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/97 17.936633 1263.276080 70.429945
- ----------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/96 14.790873 1000.000000 67.609261
- ----------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/97 18.010082 1217.648343 67.609261
- ----------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/96 9.263894 1000.000000 107.945967
- ----------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/97 12.150233 1311.568656 107.945967
- ----------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/96 13.367143 1000.000000 74.810302
- ----------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/97 15.244562 1140.450282 74.810302
- ----------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/96 13.872617 1000.000000 72.084452
- ----------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/97 17.338543 1249.839378 72.084452
- ----------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/96 12.314743 1000.000000 81.203481
- ----------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/97 14.060442 1141.756836 81.203481
- ----------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/96 13.687743 1000.000000 73.058064
- ----------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/97 14.902210 1088.726607 73.058064
- ----------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/96 10.995296 1000.000000 90.947984
- ----------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/97 11.573431 1052.580212 90.947984
- ----------------------------------------------------------------------------------------
1a PENN PARTNR Q 12/31/96 9.566140 1000.000000 104.535372
- ----------------------------------------------------------------------------------------
1a PENN PARTNR Q 12/31/97 12.398705 1296.103235 104.535372
- ----------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/96 11.530715 1000.000000 86.724891
- ----------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/97 12.283530 1065.287799 86.724891
- ----------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/96 13.160579 1000.000000 75.984499
- ----------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/97 15.965675 1213.143814 75.984499
- ----------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/96 15.603540 1000.000000 64.088021
- ----------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/97 19.229622 1232.388420 64.088021
- ----------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- ----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a PENN BALFND Q 12/31/96 0.000000 81.421608 1000.000000 11.70%
- ----------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/97 4.211256 77.210352 1117.010659 11.70%
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/96 0.000000 82.697514 1000.000000 -9.63%
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/97 4.357140 78.340373 903.708144 -9.63%
- ----------------------------------------------------------------------------------------------------------
1a PENN EMGMKT Q 12/31/96 0.000000 110.325642 1000.000000 -6.14%
- ----------------------------------------------------------------------------------------------------------
1a PENN EMGMKT Q 12/31/97 5.634415 104.691226 938.617040 -6.14%
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/96 0.000000 77.113155 1000.000000 12.83%
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/97 3.982030 73.131124 1128.302018 12.83%
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/96 0.000000 70.429945 1000.000000 19.51%
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/97 3.800997 66.628949 1195.099000 19.51%
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/96 0.000000 67.609261 1000.000000 15.13%
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/97 3.683496 63.925765 1151.308278 15.13%
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/96 0.000000 107.945967 1000.000000 24.46%
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/97 5.515121 102.430847 1244.558654 24.46%
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/96 0.000000 74.810302 1000.000000 7.65%
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/97 4.196445 70.613857 1076.477317 7.65%
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/96 0.000000 72.084452 1000.000000 18.54%
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/97 3.716680 68.367773 1185.397570 18.54%
- ----------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/96 0.000000 81.203481 1000.000000 8.28%
- ----------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/97 4.191163 77.012318 1082.827237 8.28%
- ----------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/96 0.000000 73.058064 1000.000000 3.04%
- ----------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/97 3.912511 69.145553 1030.421550 3.04%
- ----------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/96 0.000000 90.947984 1000.000000 -0.16%
- ----------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/97 4.679821 86.268162 998.418622 -0.16%
- ----------------------------------------------------------------------------------------------------------
1a PENN PARTNR Q 12/31/96 0.000000 104.535372 1000.000000 22.99%
- ----------------------------------------------------------------------------------------------------------
1a PENN PARTNR Q 12/31/97 5.340982 99.194389 1229.881970 22.99%
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/96 0.000000 86.724891 1000.000000 1.01%
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/97 4.492982 82.231909 1010.098121 1.01%
- ----------------------------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/96 0.000000 75.984499 1000.000000 14.93%
- ----------------------------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/97 3.996720 71.987779 1149.333479 14.93%
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/96 0.000000 64.088021 1000.000000 16.56%
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/97 3.471301 60.616720 1165.636610 16.56%
- ----------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Pennant - 1 YR - Tbl 2
Table 2 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- -----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 PENN BALFND Q 12/31/96 12.281752 1000.000000 81.421608
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/97 14.467110 1177.935363 81.421608
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/96 12.092262 1000.000000 82.697514
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/97 11.535663 953.970647 82.697514
- -----------------------------------------------------------------------------------------------------------
2 PENN EMGMKT Q 12/31/96 9.064076 1000.000000 110.325642
- -----------------------------------------------------------------------------------------------------------
2 PENN EMGMKT Q 12/31/97 8.965575 989.132814 110.325642
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/96 12.967956 1000.000000 77.113155
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/97 15.428479 1189.738691 77.113155
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/96 14.198506 1000.000000 70.429945
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/97 17.936633 1263.276080 70.429945
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/96 14.790873 1000.000000 67.609261
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/97 18.010082 1217.648343 67.609261
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/96 9.263894 1000.000000 107.945967
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/97 12.150233 1311.568656 107.945967
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/96 13.367143 1000.000000 74.810302
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/97 15.244562 1140.450282 74.810302
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/96 13.872617 1000.000000 72.084452
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/97 17.338543 1249.839378 72.084452
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/96 12.314743 1000.000000 81.203481
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/97 14.060442 1141.756836 81.203481
- -----------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/96 13.687743 1000.000000 73.058064
- -----------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/97 14.902210 1088.726607 73.058064
- -----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/96 10.995296 1000.000000 90.947984
- -----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/97 11.573431 1052.580212 90.947984
- -----------------------------------------------------------------------------------------------------------
2 Penn PARTNR Q 12/31/96 9.566140 1000.000000 104.535372
- -----------------------------------------------------------------------------------------------------------
2 PENN PARTNR Q 12/31/97 12.398705 1296.103235 104.535372
- -----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/96 11.530715 1000.000000 86.724891
- -----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/97 12.283530 1065.287799 86.724891
- -----------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/96 13.160579 1000.000000 75.984499
- -----------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/97 15.965675 1213.143814 75.984499
- -----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/96 15.603540 1000.000000 64.088021
- -----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/97 19.229622 1232.388420 64.088021
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 PENN BALFND Q 12/31/96 0.000000 81.421608 1000.000000 17.71%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/97 0.058754 81.362854 1177.085363 17.71%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/96 0.000000 82.697514 1000.000000 -4.76%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/97 0.139567 82.557946 952.360647 -4.76%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN EMGMKT Q 12/31/96 0.000000 110.325642 1000.000000 -1.09%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN EMGMKT Q 12/31/97 0.007808 110.317834 989.062814 -1.09%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/96 0.000000 77.113155 1000.000000 18.90%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/97 0.049260 77.063895 1188.978691 18.90%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/96 0.000000 70.429945 1000.000000 25.95%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/97 0.209069 70.220876 1259.526080 25.95%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/96 0.000000 67.609261 1000.000000 21.34%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/97 0.235424 67.373838 1213.408343 21.34%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/96 0.000000 107.945967 1000.000000 31.14%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/97 0.009876 107.936091 1311.448656 31.14%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/96 0.000000 74.810302 1000.000000 13.46%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/97 0.381120 74.429182 1134.640282 13.46%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/96 0.000000 72.084452 1000.000000 24.91%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/97 0.040372 72.044080 1249.139378 24.91%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/96 0.000000 81.203481 1000.000000 14.11%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/97 0.049785 81.153696 1141.056836 14.11%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/96 0.000000 73.058064 1000.000000 8.59%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/97 0.186550 72.871514 1085.946607 8.59%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/96 0.000000 90.947984 1000.000000 5.21%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/97 0.041474 90.906509 1052.100212 5.21%
- --------------------------------------------------------------------------------------------------------------------------
2 Penn PARTNR Q 12/31/96 0.000000 104.535372 1000.000000 29.60%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN PARTNR Q 12/31/97 0.009678 104.525693 1295.983235 29.60%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/96 0.000000 86.724891 1000.000000 6.44%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/97 0.070012 86.654878 1064.427799 6.44%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/96 0.000000 75.984499 1000.000000 21.12%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/97 0.121511 75.862988 1211.203814 21.12%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/96 0.000000 64.088021 1000.000000 22.85%
- --------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/97 0.202812 63.885209 1228.488420 22.85%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 3 - Pennant Pennant - 1 YR - Tbl 3
<TABLE>
<CAPTION>
Beginning # of units
- -----------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 PENN BALFND Q 12/31/96 12.281752 5/18/27 814.216083
- -----------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/97 14.46711 3/31/32 814.216083
- -----------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/96 12.092262 5/18/27 826.975135
- -----------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/97 11.535663 2/11/26 826.975135
- -----------------------------------------------------------------------------------------------
3 PENN EMGMKT Q 12/31/96 9.064076 5/18/27 1103.256416
- -----------------------------------------------------------------------------------------------
3 PENN EMGMKT Q 12/31/97 8.965575 1/29/27 1103.256416
- -----------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/96 12.967956 5/18/27 771.131549
- -----------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/97 15.428479 7/27/32 771.131549
- -----------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/96 14.198506 5/18/27 704.299452
- -----------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/97 17.936633 8/1/34 704.299452
- -----------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/96 14.790873 5/18/27 676.092615
- -----------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/97 18.010082 5/2/33 676.092615
- -----------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/96 9.263894 5/18/27 1079.459674
- -----------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/97 12.150233 11/27/35 1079.459674
- -----------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/96 13.367143 5/18/27 748.103016
- -----------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/97 15.244562 3/22/31 748.103016
- -----------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/96 13.872617 5/18/27 720.844524
- -----------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/97 17.338543 3/20/34 720.844524
- -----------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/96 12.314743 5/18/27 812.034811
- -----------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/97 14.060442 4/4/31 812.034811
- -----------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/96 13.687743 5/18/27 730.580637
- -----------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/97 14.90221 10/21/29 730.580637
- -----------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/96 10.995296 5/18/27 909.479836
- -----------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/97 11.573431 10/24/28 909.479836
- -----------------------------------------------------------------------------------------------
3 PENN PARTNR Q 12/31/96 9.56614 5/18/27 1045.353716
- -----------------------------------------------------------------------------------------------
3 PENN PARTNR Q 12/31/97 12.398705 6/26/35 1045.353716
- -----------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/96 11.530715 5/18/27 867.248909
- -----------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/97 12.28353 2/28/29 867.248909
- -----------------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/96 13.160579 5/18/27 759.844989
- -----------------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/97 15.965675 3/18/33 759.844989
- -----------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/96 15.60354 5/18/27 640.880211
- -----------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/97 19.229622 9/26/33 640.880211
- -----------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 PENN BALFND Q 12/31/96 0.000000 814.216083 10000.000000 17.79%
- -----------------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/97 0.058754 814.157329 11778.503630 17.79%
- -----------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/96 0.000000 826.975135 10000.000000 -4.62%
- -----------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/97 0.139567 826.835568 9538.096467 -4.62%
- -----------------------------------------------------------------------------------------------------------------
3 PENN EMGMKT Q 12/31/96 0.000000 1103.256416 10000.000000 -1.09%
- -----------------------------------------------------------------------------------------------------------------
3 PENN EMGMKT Q 12/31/97 0.007808 1103.248608 9891.258140 -1.09%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/96 0.000000 771.131549 10000.000000 18.97%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/97 0.049260 771.082290 11896.626913 18.97%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/96 0.000000 704.299452 10000.000000 26.29%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/97 0.209069 704.090383 12629.010799 26.29%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/96 0.000000 676.092615 10000.000000 21.72%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/97 0.235424 675.857191 12172.243430 21.72%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/96 0.000000 1079.459674 10000.000000 31.16%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/97 0.009876 1079.449798 13115.566557 31.16%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/96 0.000000 748.103016 10000.000000 13.99%
- -----------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/97 0.381120 747.721897 11398.692817 13.99%
- -----------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/96 0.000000 720.844524 10000.000000 24.98%
- -----------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/97 0.040372 720.804152 12497.693778 24.98%
- -----------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/96 0.000000 812.034811 10000.000000 14.17%
- -----------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/97 0.049785 811.985026 11416.868357 14.17%
- -----------------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/96 0.000000 730.580637 10000.000000 8.84%
- -----------------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/97 0.186550 730.394087 10884.486074 8.84%
- -----------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/96 0.000000 909.479836 10000.000000 5.25%
- -----------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/97 0.041474 909.438361 10525.322125 5.25%
- -----------------------------------------------------------------------------------------------------------------
3 PENN PARTNR Q 12/31/96 0.000000 1045.353716 10000.000000 29.61%
- -----------------------------------------------------------------------------------------------------------------
3 PENN PARTNR Q 12/31/97 0.009678 1045.344038 12960.912350 29.61%
- -----------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/96 0.000000 867.248909 10000.000000 6.52%
- -----------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/97 0.070012 867.178896 10652.017987 6.52%
- -----------------------------------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/96 0.000000 759.844989 10000.000000 21.29%
- -----------------------------------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/97 0.121511 759.723478 12129.498138 21.29%
- -----------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/96 0.000000 640.880211 10000.000000 23.20%
- -----------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/97 0.202812 640.677398 12319.984196 23.20%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Pennant - 5yr - Tbl 1a
Table 1A - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- ------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a PENN BALFND Q 12/31/92 9.544854 1000.000000 104.768496
- ------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/93 9.981206 1045.715943 104.768496
- ------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/94 9.548559 999.575012 104.683336
- ------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/95 11.653880 1218.929625 104.594317
- ------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/96 12.281752 1283.705673 104.521380
- ------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/97 14.467110 1511.121063 104.452172
- ------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/92 9.386697 1000.000000 106.533747
- ------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/93 10.185124 1085.059420 106.533747
- ------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/94 9.926047 1055.889930 106.375673
- ------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/95 12.818022 1361.446639 106.213473
- ------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/96 12.092262 1282.842308 106.087869
- ------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/97 11.535663 1222.258013 105.954726
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/92 8.987776 1000.000000 111.262230
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/93 10.744669 1195.475833 111.262230
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/94 9.949957 1106.350616 111.191497
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/95 11.476196 1275.178838 111.115115
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/96 12.967956 1440.077131 111.048891
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/97 15.428479 1712.411280 110.990285
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/92 7.728908 1000.000000 129.384384
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/93 9.015770 1166.499847 129.384384
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/94 9.518617 1227.601243 128.968446
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/95 12.600495 1620.102108 128.574481
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/96 14.198506 1821.339964 128.276874
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/97 17.936633 2296.117925 128.012762
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/92 8.441505 1000.000000 118.462288
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/93 9.936599 1177.112257 118.462288
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/94 9.796554 1156.341963 118.035583
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/95 13.077900 1537.997368 117.602778
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/96 14.790873 1734.652386 117.278567
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/97 18.010082 2107.033775 116.991903
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/92 5.158836 1000.000000 193.842177
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/93 5.606646 1086.804465 193.842177
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/94 5.610504 1087.432226 193.820774
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/95 7.623108 1477.353644 193.799385
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/96 9.263894 1795.191133 193.783644
- ------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/97 12.150233 2354.359033 193.770690
- ------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/92 8.238463 1000.000000 121.381865
- ------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/93 9.407267 1141.871609 121.381865
- ------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/94 9.660523 1166.645881 120.764257
- ------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/95 11.649728 1399.864404 120.162840
- ------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/96 13.367143 1599.567352 119.664116
- ------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/97 15.244562 1817.601021 119.229468
- ------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/92 9.378029 1000.000000 106.632215
- ------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/93 10.397651 1108.724552 106.632215
- ------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/94 9.420707 1003.916620 106.564892
- ------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/95 11.747874 1251.038001 106.490587
- ------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/96 13.872617 1476.476527 106.431002
- ------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/97 17.338543 1844.483616 106.380543
- ------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/92 8.851986 1000.000000 112.968999
- ------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/93 10.454800 1181.068294 112.968999
- ------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/94 9.553762 1078.639261 112.902044
- ------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/95 10.968126 1237.520219 112.828775
- ------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/96 12.314743 1388.671422 112.764954
- ------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/97 14.060442 1584.725859 112.708111
- ------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/92 8.411030 1000.000000 118.891503
- ------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/93 11.456448 1362.074324 118.891503
- ------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/94 10.584417 1255.828853 118.648845
- ------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/95 11.878760 1406.281195 118.386195
- ------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/96 13.687743 1617.236451 118.152164
- ------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/97 14.902210 1757.701695 117.949062
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- ----------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a PENN BALFND Q 12/31/92 0.000000 104.768496 1000.000000 8.22%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/93 0.085160 104.683336 1044.865943 8.22%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/94 0.089019 104.594317 998.725012 8.22%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/95 0.072937 104.521380 1218.079625 8.22%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/96 0.069208 104.452172 1282.855673 8.22%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/97 1.834441 102.617731 1484.582004 8.22%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/92 0.000000 106.533747 1000.000000 3.71%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/93 0.158074 106.375673 1083.449420 3.71%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/94 0.162200 106.213473 1054.279930 3.71%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/95 0.125604 106.087869 1359.836639 3.71%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/96 0.133143 105.954726 1281.232308 3.71%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/97 1.940798 104.013929 1199.869627 3.71%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/92 0.000000 111.262230 1000.000000 10.96%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/93 0.070733 111.191497 1194.715833 10.96%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/94 0.076382 111.115115 1105.590616 10.96%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/95 0.066224 111.048891 1274.418838 10.96%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/96 0.058606 110.990285 1439.317131 10.96%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/97 1.936094 109.054191 1682.540288 10.96%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/92 0.000000 129.384384 1000.000000 17.63%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/93 0.415938 128.968446 1162.749847 17.63%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/94 0.393965 128.574481 1223.851243 17.63%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/95 0.297607 128.276874 1616.352108 17.63%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/96 0.264112 128.012762 1817.589964 17.63%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/97 2.385286 125.627475 2253.333920 17.63%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/92 0.000000 118.462288 1000.000000 15.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/93 0.426705 118.035583 1172.872257 15.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/94 0.432805 117.602778 1152.101963 15.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/95 0.324211 117.278567 1533.757368 15.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/96 0.286663 116.991903 1730.412386 15.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/97 2.224286 114.767617 2066.974201 15.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/92 0.000000 193.842177 1000.000000 18.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/93 0.021403 193.820774 1086.684465 18.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/94 0.021388 193.799385 1087.312226 18.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/95 0.015742 193.783644 1477.233644 18.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/96 0.012954 193.770690 1795.071133 18.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/97 3.303978 190.466712 2314.214929 18.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/92 0.000000 121.381865 1000.000000 12.23%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/93 0.617608 120.764257 1136.061609 12.23%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/94 0.601417 120.162840 1160.835881 12.23%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/95 0.498724 119.664116 1394.054404 12.23%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/96 0.434648 119.229468 1593.757352 12.23%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/97 2.408020 116.821448 1780.891804 12.23%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/92 0.000000 106.632215 1000.000000 12.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/93 0.067323 106.564892 1108.024552 12.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/94 0.074304 106.490587 1003.216620 12.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/95 0.059585 106.431002 1250.338001 12.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/96 0.050459 106.380543 1475.776527 12.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/97 1.848842 104.531701 1812.427395 12.62%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/92 0.000000 112.968999 1000.000000 9.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/93 0.066955 112.902044 1180.368294 9.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/94 0.073270 112.828775 1077.939261 9.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/95 0.063821 112.764954 1236.820219 9.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/96 0.056842 112.708111 1387.971422 9.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/97 1.965823 110.742288 1557.085519 9.26%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/92 0.000000 118.891503 1000.000000 11.52%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/93 0.242658 118.648845 1359.294324 11.52%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/94 0.262650 118.386195 1253.048853 11.52%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/95 0.234031 118.152164 1403.501195 11.52%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/96 0.203101 117.949062 1614.456451 11.52%
- ----------------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/97 2.191684 115.757379 1725.040766 11.52%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Pennant - 5yr - Tbl 1a
<TABLE>
<CAPTION>
Table 1A - Pennant
Beginning # of units
- -----------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a PENN LIMMAT Q 12/31/92 9.439952 1000.000000 105.932742
- -----------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/93 9.925608 1051.446872 105.932742
- -----------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/94 9.772495 1034.754596 105.884382
- -----------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/95 10.691231 1131.509264 105.835265
- -----------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/96 10.995296 1163.196413 105.790368
- -----------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/97 11.573431 1223.852289 105.746713
- -----------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/92 9.216454 1000.000000 108.501599
- -----------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/93 10.148405 1101.118174 108.501599
- -----------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/94 9.477839 1027.557516 108.416857
- -----------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/95 11.229457 1216.443496 108.326119
- -----------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/96 11.530715 1248.194534 108.249535
- -----------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/97 12.283530 1328.770260 108.174951
- -----------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/92 8.699744 1000.000000 114.945911
- -----------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/93 9.186022 1055.895668 114.945911
- -----------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/94 9.323905 1067.786215 114.521353
- -----------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/95 12.641006 1442.377634 114.103073
- -----------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/96 15.603540 1775.597868 113.794554
- -----------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/97 19.229622 2183.419935 113.544610
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- ---------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a PENN LIMMAT Q 12/31/92 0.000000 105.932742 1000.000000 3.76%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/93 0.048360 105.884382 1050.966872 3.76%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/94 0.049117 105.835265 1034.274596 3.76%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/95 0.044897 105.790368 1131.029264 3.76%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/96 0.043655 105.746713 1162.716413 3.76%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/97 1.839168 103.907545 1202.566800 3.76%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/92 0.000000 108.501599 1000.000000 5.47%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/93 0.084742 108.416857 1100.258174 5.47%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/94 0.090738 108.326119 1026.697516 5.47%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/95 0.076584 108.249535 1215.583496 5.47%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/96 0.074583 108.174951 1247.334534 5.47%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/97 1.908987 106.265965 1305.321166 5.47%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/92 0.000000 114.945911 1000.000000 16.45%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/93 0.424558 114.521353 1051.995668 16.45%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/94 0.418280 114.103073 1063.886215 16.45%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/95 0.308520 113.794554 1438.477634 16.45%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/96 0.249943 113.544610 1771.697868 16.45%
- ---------------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/97 2.133070 111.411540 2142.401796 16.45%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Pennant - 5 YR - Tbl 2
Table 2 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- --------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 PENN BALFND Q 12/31/92 9.544854 1000.000000 104.768496
- --------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/93 9.981206 1045.715943 104.768496
- --------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/94 9.548559 999.575012 104.683336
- --------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/95 11.653880 1218.929625 104.594317
- --------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/96 12.281752 1283.705673 104.521380
- --------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/97 14.467110 1511.121063 104.452172
- --------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/92 9.386697 1000.000000 106.533747
- --------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/93 10.185124 1085.059420 106.533747
- --------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/94 9.926047 1055.889930 106.375673
- --------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/95 12.818022 1361.446639 106.213473
- --------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/96 12.092262 1282.842308 106.087869
- --------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/97 11.535663 1222.258013 105.954726
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/92 8.987776 1000.000000 111.262230
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/93 10.744669 1195.475833 111.262230
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/94 9.949957 1106.350616 111.191497
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/95 11.476196 1275.178838 111.115115
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/96 12.967956 1440.077131 111.048891
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/97 15.428479 1712.411280 110.990285
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/92 7.728908 1000.000000 129.384384
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/93 9.015770 1166.499847 129.384384
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/94 9.518617 1227.601243 128.968446
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/95 12.600495 1620.102108 128.574481
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/96 14.198506 1821.339964 128.276874
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/97 17.936633 2296.117925 128.012762
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/92 8.441505 1000.000000 118.462288
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/93 9.936599 1177.112257 118.462288
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/94 9.796554 1156.341963 118.035583
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/95 13.077900 1537.997368 117.602778
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/96 14.790873 1734.652386 117.278567
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/97 18.010082 2107.033775 116.991903
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/92 5.158836 1000.000000 193.842177
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/93 5.606646 1086.804465 193.842177
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/94 5.610504 1087.432226 193.820774
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/95 7.623108 1477.353644 193.799385
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/96 9.263894 1795.191133 193.783644
- --------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/97 12.150233 2354.359033 193.770690
- --------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/92 8.238463 1000.000000 121.381865
- --------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/93 9.407267 1141.871609 121.381865
- --------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/94 9.660523 1166.645881 120.764257
- --------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/95 11.649728 1399.864404 120.162840
- --------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/96 13.367143 1599.567352 119.664116
- --------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/97 15.244562 1817.601021 119.229468
- --------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/92 9.378029 1000.000000 106.632215
- --------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/93 10.397651 1108.724552 106.632215
- --------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/94 9.420707 1003.916620 106.564892
- --------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/95 11.747874 1251.038001 106.490587
- --------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/96 13.872617 1476.476527 106.431002
- --------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/97 17.338543 1844.483616 106.380543
- --------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/92 8.851986 1000.000000 112.968999
- --------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/93 10.454800 1181.068294 112.968999
- --------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/94 9.553762 1078.639261 112.902044
- --------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/95 10.968126 1237.520219 112.828775
- --------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/96 12.314743 1388.671422 112.764954
- --------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/97 14.060442 1584.725859 112.708111
- --------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/92 8.411030 1000.000000 118.891503
- --------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/93 11.456448 1362.074324 118.891503
- --------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/94 10.584417 1255.828853 118.648845
- --------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/95 11.878760 1406.281195 118.386195
- --------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/96 13.687743 1617.236451 118.152164
- --------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/97 14.902210 1757.701695 117.949062
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 PENN BALFND Q 12/31/92 0.000000 104.768496 1000.000000 8.59%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/93 0.085160 104.683336 1044.865943 8.59%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/94 0.089019 104.594317 998.725012 8.59%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/95 0.072937 104.521380 1218.079625 8.59%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/96 0.069208 104.452172 1282.855673 8.59%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/97 0.058754 104.393418 1510.271063 8.59%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/92 0.000000 106.533747 1000.000000 4.07%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/93 0.158074 106.375673 1083.449420 4.07%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/94 0.162200 106.213473 1054.279930 4.07%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/95 0.125604 106.087869 1359.836639 4.07%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/96 0.133143 105.954726 1281.232308 4.07%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/97 0.139567 105.815159 1220.648013 4.07%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/92 0.000000 111.262230 1000.000000 11.34%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/93 0.070733 111.191497 1194.715833 11.34%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/94 0.076382 111.115115 1105.590616 11.34%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/95 0.066224 111.048891 1274.418838 11.34%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/96 0.058606 110.990285 1439.317131 11.34%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/97 0.049260 110.941025 1711.651280 11.34%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/92 0.000000 129.384384 1000.000000 18.04%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/93 0.415938 128.968446 1162.749847 18.04%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/94 0.393965 128.574481 1223.851243 18.04%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/95 0.297607 128.276874 1616.352108 18.04%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/96 0.264112 128.012762 1817.589964 18.04%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/97 0.209069 127.803692 2292.367925 18.04%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/92 0.000000 118.462288 1000.000000 16.02%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/93 0.426705 118.035583 1172.872257 16.02%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/94 0.432805 117.602778 1152.101963 16.02%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/95 0.324211 117.278567 1533.757368 16.02%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/96 0.286663 116.991903 1730.412386 16.02%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/97 0.235424 116.756480 2102.793775 16.02%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/92 0.000000 193.842177 1000.000000 18.67%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/93 0.021403 193.820774 1086.684465 18.67%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/94 0.021388 193.799385 1087.312226 18.67%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/95 0.015742 193.783644 1477.233644 18.67%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/96 0.012954 193.770690 1795.071133 18.67%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/97 0.009876 193.760814 2354.239033 18.67%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/92 0.000000 121.381865 1000.000000 12.61%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/93 0.617608 120.764257 1136.061609 12.61%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/94 0.601417 120.162840 1160.835881 12.61%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/95 0.498724 119.664116 1394.054404 12.61%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/96 0.434648 119.229468 1593.757352 12.61%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/97 0.381120 118.848349 1811.791021 12.61%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/92 0.000000 106.632215 1000.000000 13.01%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/93 0.067323 106.564892 1108.024552 13.01%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/94 0.074304 106.490587 1003.216620 13.01%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/95 0.059585 106.431002 1250.338001 13.01%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/96 0.050459 106.380543 1475.776527 13.01%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/97 0.040372 106.340170 1843.783616 13.01%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/92 0.000000 112.968999 1000.000000 9.63%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/93 0.066955 112.902044 1180.368294 9.63%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/94 0.073270 112.828775 1077.939261 9.63%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/95 0.063821 112.764954 1236.820219 9.63%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/96 0.056842 112.708111 1387.971422 9.63%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/97 0.049785 112.658326 1584.025859 9.63%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/92 0.000000 118.891503 1000.000000 11.90%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/93 0.242658 118.648845 1359.294324 11.90%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/94 0.262650 118.386195 1253.048853 11.90%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/95 0.234031 118.152164 1403.501195 11.90%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/96 0.203101 117.949062 1614.456451 11.90%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/97 0.186550 117.762513 1754.921695 11.90%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Pennant - 5 YR - Tbl 2
TABLE 2 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- -------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 PENN LIMMAT Q 12/31/92 9.439952 1000.000000 105.932742
- -------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/93 9.925608 1051.446872 105.932742
- -------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/94 9.772495 1034.754596 105.884382
- -------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/95 10.691231 1131.509264 105.835265
- -------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/96 10.995296 1163.196413 105.790368
- -------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/97 11.573431 1223.852289 105.746713
- -------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/92 9.216454 1000.000000 108.501599
- -------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/93 10.148405 1101.118174 108.501599
- -------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/94 9.477839 1027.557516 108.416857
- -------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/95 11.229457 1216.443496 108.326119
- -------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/96 11.530715 1248.194534 108.249535
- -------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/97 12.283530 1328.770260 108.174951
- -------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/92 8.699744 1000.000000 114.945911
- -------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/93 9.186022 1055.895668 114.945911
- -------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/94 9.323905 1067.786215 114.521353
- -------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/95 12.641006 1442.377634 114.103073
- -------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/96 15.603540 1775.597868 113.794554
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 PENN LIMMAT Q 12/31/92 0.000000 105.932742 1000.000000 4.11%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/93 0.048360 105.884382 1050.966872 4.11%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/94 0.049117 105.835265 1034.274596 4.11%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/95 0.044897 105.790368 1131.029264 4.11%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/96 0.043655 105.746713 1162.716413 4.11%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/97 0.041474 105.705239 1223.372289 4.11%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/92 0.000000 108.501599 1000.000000 5.83%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/93 0.084742 108.416857 1100.258174 5.83%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/94 0.090738 108.326119 1026.697516 5.83%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/95 0.076584 108.249535 1215.583496 5.83%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/96 0.074583 108.174951 1247.334534 5.83%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/97 0.070012 108.104939 1327.910260 5.83%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/92 0.000000 114.945911 1000.000000 16.85%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/93 0.424558 114.521353 1051.995668 16.85%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/94 0.418280 114.103073 1063.886215 16.85%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/95 0.308520 113.794554 1438.477634 16.85%
- ---------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/96 0.249943 113.544610 1771.697868 16.85%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Pennant - 5 YR - Tbl 3
Table 3 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- ----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 PENN BALFND Q 12/31/93 9.981206 10457.159429 1047.684962
- ----------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/94 9.548559 10003.068517 1047.599802
- ----------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/95 11.653880 12207.564967 1047.510783
- ----------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/96 12.281752 12864.371862 1047.437846
- ----------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/97 14.467110 15152.397294 1047.368638
- ----------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/92 9.386697 10000.000000 1065.337466
- ----------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/93 10.185124 10850.594197 1065.337466
- ----------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/94 9.926047 10573.020716 1065.179393
- ----------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/95 12.818022 13651.413813 1065.017193
- ----------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/96 12.092262 12876.948094 1064.891589
- ----------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/97 11.535663 12282.694607 1064.758446
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/92 8.987776 10000.000000 1112.622299
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/93 10.744669 11954.758330 1112.622299
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/94 9.949957 11069.840249 1112.551567
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/95 11.476196 12766.983262 1112.475184
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/96 12.967956 14425.670453 1112.408960
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/97 15.428479 17161.874084 1112.350354
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/92 7.728908 10000.000000 1293.843839
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/93 9.015770 11664.998471 1293.843839
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/94 9.518617 12311.644811 1293.427901
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/95 12.600495 16292.867653 1293.033937
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/96 14.198506 18354.924527 1292.736329
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/97 17.936633 23182.599818 1292.472217
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/92 8.441505 10000.000000 1184.622884
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/93 9.936599 11771.122566 1184.622884
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/94 9.796554 11601.041813 1184.196179
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/95 13.077900 15481.139023 1183.763374
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/96 14.790873 17504.098356 1183.439163
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/97 18.010082 21308.673530 1183.152499
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/92 5.158836 10000.000000 1938.421768
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/93 5.606646 10868.044652 1938.421768
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/94 5.610504 10875.403001 1938.400365
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/95 7.623108 14776.472282 1938.378976
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/96 9.263894 17956.791540 1938.363235
- ----------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/97 12.150233 23551.407553 1938.350281
- ----------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/92 8.238463 10000.000000 1213.818646
- ----------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/93 9.407267 11418.716088 1213.818646
- ----------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/94 9.660523 11720.156530 1213.201038
- ----------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/95 11.649728 14126.455760 1212.599621
- ----------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/96 13.367143 16202.326022 1212.100897
- ----------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/97 15.244562 18471.321260 1211.666249
- ----------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/92 9.378029 10000.000000 1066.322145
- ----------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/93 10.397651 11087.245518 1066.322145
- ----------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/94 9.420707 10044.874267 1066.254822
- ----------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/95 11.747874 12525.354384 1066.180518
- ----------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/96 13.872617 14789.887373 1066.120933
- ----------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/97 17.338543 18484.108744 1066.070473
- ----------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/92 8.851986 10000.000000 1129.689993
- ----------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/93 10.454800 11810.682936 1129.689993
- ----------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/94 9.553762 10792.149653 1129.623038
- ----------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/95 10.968126 12389.044182 1129.549768
- ----------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/96 12.314743 13909.329159 1129.485947
- ----------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/97 14.060442 15880.272418 1129.429105
- ----------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/92 8.411030 10000.000000 1188.915032
- ----------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/93 11.456448 13620.743238 1188.915032
- ----------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/94 10.584417 12581.404080 1188.672374
- ----------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/95 11.878760 14116.833886 1188.409723
- ----------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/96 13.687743 16263.443515 1188.175692
- ----------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/97 14.902210 17703.417023 1187.972591
- ----------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/92 9.439952 10000.000000 1059.327420
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- ----------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 PENN BALFND Q 12/31/93 0.085160 1047.599802 10456.309429 8.66%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/94 0.089019 1047.510783 10002.218517 8.66%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/95 0.072937 1047.437846 12206.714967 8.66%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/96 0.069208 1047.368638 12863.521862 8.66%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/97 0.058754 1047.309884 15151.547294 8.66%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/92 0.000000 1065.337466 10000.000000 4.19%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/93 0.158074 1065.179393 10848.984197 4.19%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/94 0.162200 1065.017193 10571.410716 4.19%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/95 0.125604 1064.891589 13649.803813 4.19%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/96 0.133143 1064.758446 12875.338094 4.19%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/97 0.139567 1064.618879 12281.084607 4.19%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/92 0.000000 1112.622299 10000.000000 11.40%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/93 0.070733 1112.551567 11953.998330 11.40%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/94 0.076382 1112.475184 11069.080249 11.40%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/95 0.066224 1112.408960 12766.223262 11.40%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/96 0.058606 1112.350354 14424.910453 11.40%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/97 0.049260 1112.301095 17161.114084 11.40%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/92 0.000000 1293.843839 10000.000000 18.30%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/93 0.415938 1293.427901 11661.248471 18.30%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/94 0.393965 1293.033937 12307.894811 18.30%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/95 0.297607 1292.736329 16289.117653 18.30%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/96 0.264112 1292.472217 18351.174527 18.30%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/97 0.209069 1292.263148 23178.849818 18.30%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/92 0.000000 1184.622884 10000.000000 16.32%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/93 0.426705 1184.196179 11766.882566 16.32%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/94 0.432805 1183.763374 11596.801813 16.32%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/95 0.324211 1183.439163 15476.899023 16.32%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/96 0.286663 1183.152499 17499.858356 16.32%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/97 0.235424 1182.917076 21304.433530 16.32%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/92 0.000000 1938.421768 10000.000000 18.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/93 0.021403 1938.400365 10867.924652 18.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/94 0.021388 1938.378976 10875.283001 18.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/95 0.015742 1938.363235 14776.352282 18.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/96 0.012954 1938.350281 17956.671540 18.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/97 0.009876 1938.340405 23551.287553 18.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/92 0.000000 1213.818646 10000.000000 13.04%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/93 0.617608 1213.201038 11412.906088 13.04%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/94 0.601417 1212.599621 11714.346530 13.04%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/95 0.498724 1212.100897 14120.645760 13.04%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/96 0.434648 1211.666249 16196.516022 13.04%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/97 0.381120 1211.285130 18465.511260 13.04%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/92 0.000000 1066.322145 10000.000000 13.06%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/93 0.067323 1066.254822 11086.545518 13.06%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/94 0.074304 1066.180518 10044.174267 13.06%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/95 0.059585 1066.120933 12524.654384 13.06%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/96 0.050459 1066.070473 14789.187373 13.06%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/97 0.040372 1066.030101 18483.408744 13.06%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/92 0.000000 1129.689993 10000.000000 9.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/93 0.066955 1129.623038 11809.982936 9.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/94 0.073270 1129.549768 10791.449653 9.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/95 0.063821 1129.485947 12388.344182 9.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/96 0.056842 1129.429105 13908.629159 9.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/97 0.049785 1129.379319 15879.572418 9.68%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/92 0.000000 1188.915032 10000.000000 12.09%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/93 0.242658 1188.672374 13617.963238 12.09%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/94 0.262650 1188.409723 12578.624080 12.09%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/95 0.234031 1188.175692 14114.053886 12.09%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/96 0.203101 1187.972591 16260.663515 12.09%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/97 0.186550 1187.786041 17700.637023 12.09%
- ----------------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/92 0.000000 1059.327420 10000.000000 4.15%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Pennant - 5 YR - Tbl 3
Table 3 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- ---------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 PENN LIMMAT Q 12/31/93 9.925608 10514.468718 1059.327420
- ---------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/94 9.772495 10351.799323 1059.279061
- ---------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/95 10.691231 11324.472004 1059.229943
- ---------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/96 10.995296 11646.053105 1059.185046
- ---------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/97 11.573431 12257.899813 1059.141391
- ---------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/92 9.216454 10000.000000 1085.015994
- ---------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/93 10.148405 11011.181741 1085.015994
- ---------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/94 9.477839 10282.803731 1084.931252
- ---------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/95 11.229457 12182.169902 1084.840514
- ---------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/96 11.530715 12508.103714 1084.763930
- ---------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/97 12.283530 13323.814124 1084.689346
- ---------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/92 8.699744 10000.000000 1149.459111
- ---------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/93 9.186022 10558.956677 1149.459111
- ---------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/94 9.323905 10713.489009 1149.034552
- ---------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/95 12.641006 14519.665195 1148.616273
- ---------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/96 15.603540 17917.665956 1148.307753
- ---------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/97 19.229622 22076.717715 1148.057810
- ---------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 PENN LIMMAT Q 12/31/93 0.048360 1059.279061 10513.988718 4.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/94 0.049117 1059.229943 10351.319323 4.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/95 0.044897 1059.185046 11323.992004 4.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/96 0.043655 1059.141391 11645.573105 4.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/97 0.041474 1059.099917 12257.419813 4.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/92 0.000000 1085.015994 10000.000000 5.90%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/93 0.084742 1084.931252 11010.321741 5.90%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/94 0.090738 1084.840514 10281.943731 5.90%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/95 0.076584 1084.763930 12181.309902 5.90%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/96 0.074583 1084.689346 12507.243714 5.90%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/97 0.070012 1084.619334 13322.954124 5.90%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/92 0.000000 1149.459111 10000.000000 17.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/93 0.424558 1149.034552 10555.056677 17.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/94 0.418280 1148.616273 10709.589009 17.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/95 0.308520 1148.307753 14515.765195 17.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/96 0.249943 1148.057810 17913.765956 17.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/97 0.202812 1147.854998 22072.817715 17.15%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1A - Pennant Pennant - 10 yr - Tbl 1a
<TABLE>
<CAPTION>
Beginning # of units
- ----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a PENN CAPAPP Q 12/31/87 5.768019 1000.000000 173.369748
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/88 5.577805 967.022647 173.369748
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/89 7.084750 1226.236351 173.081104
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/90 6.896673 1192.116516 172.853855
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/91 9.648771 1665.574800 172.620409
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/92 9.386697 1618.769208 172.453549
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/93 10.185124 1754.713832 172.282029
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/94 9.926047 1708.510474 172.123956
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/95 12.818022 2204.209574 171.961756
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/96 12.092262 2077.887768 171.836152
- ----------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/97 11.535663 1980.708045 171.703009
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/87 4.423567 1000.000000 226.061909
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/88 5.352534 1210.004053 226.061909
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/89 6.193601 1395.798011 225.361306
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/90 5.173663 1162.810986 224.755843
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/91 6.705724 1502.290171 224.031018
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/92 7.728908 1727.192935 223.471794
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/93 9.015770 2010.395920 222.986602
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/94 9.518617 2118.564911 222.570665
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/95 12.600495 2799.536394 222.176700
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/96 14.198506 3150.351625 221.879092
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/97 17.936633 3975.026565 221.614980
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/87 4.242140 1000.000000 235.730080
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/88 4.834827 1139.714154 235.730080
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/89 6.270101 1472.552715 234.853109
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/90 5.457380 1277.992244 234.176884
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/91 7.830958 1827.745241 233.399955
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/92 8.441505 1965.676308 232.858514
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/93 9.936599 2308.830719 232.356234
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/94 9.796554 2272.110148 231.929528
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/95 13.077900 3027.490994 231.496723
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/96 14.790873 3419.243266 231.172512
- ----------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/97 18.010082 4158.273068 230.885849
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/87 4.637999 1000.000000 215.610223
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/88 5.439985 1172.916381 215.610223
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/89 6.500886 1394.714421 214.542206
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/90 6.357921 1358.360166 213.648481
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/91 7.625445 1622.196454 212.734661
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/92 8.238463 1746.329558 211.972738
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/93 9.407267 1987.449867 211.267509
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/94 9.660523 2034.988219 210.649902
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/95 11.649728 2447.007715 210.048485
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/96 13.367143 2801.081618 209.549761
- ----------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/97 15.244562 3187.868304 209.115113
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/87 5.355589 1000.000000 186.720826
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/88 5.950681 1111.116070 186.720826
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/89 7.708737 1438.474931 186.603192
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/90 6.755130 1259.915414 186.512386
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/91 8.975410 1673.095058 186.408761
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/92 9.378029 1747.415367 186.330770
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/93 10.397651 1936.626212 186.256128
- ----------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/94 9.420707 1754.030176 186.188805
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a PENN CAPAPP Q 12/31/87 0.000000 173.369748 1000.000000 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/88 0.288644 173.081104 965.412647 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/89 0.227249 172.853855 1224.626351 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/90 0.233446 172.620409 1190.506516 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/91 0.166861 172.453549 1663.964800 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/92 0.171519 172.282029 1617.159208 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/93 0.158074 172.123956 1753.103832 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/94 0.162200 171.961756 1706.900474 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/95 0.125604 171.836152 2202.599574 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/96 0.133143 171.703009 2076.277768 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/97 0.139567 171.563442 1979.098045 7.06%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/87 0.000000 226.061909 1000.000000 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/88 0.700603 225.361306 1206.254053 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/89 0.605464 224.755843 1392.048011 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/90 0.724825 224.031018 1159.060986 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/91 0.559224 223.471794 1498.540171 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/92 0.485191 222.986602 1723.442935 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/93 0.415938 222.570665 2006.645920 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/94 0.393965 222.176700 2114.814911 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/95 0.297607 221.879092 2795.786394 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/96 0.264112 221.614980 3146.601625 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/97 0.209069 221.405911 3971.276565 14.77%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/87 0.000000 235.730080 1000.000000 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/88 0.876970 234.853109 1135.474154 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/89 0.676225 234.176884 1468.312715 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/90 0.776930 233.399955 1273.752244 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/91 0.541441 232.858514 1823.505241 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/92 0.502280 232.356234 1961.436308 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/93 0.426705 231.929528 2304.590719 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/94 0.432805 231.496723 2267.870148 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/95 0.324211 231.172512 3023.250994 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/96 0.286663 230.885849 3415.003266 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/97 0.235424 230.650425 4154.033068 15.29%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/87 0.000000 215.610223 1000.000000 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/88 1.068018 214.542206 1167.106381 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/89 0.893724 213.648481 1388.904421 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/90 0.913821 212.734661 1352.550166 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/91 0.761923 211.972738 1616.386454 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/92 0.705229 211.267509 1740.519558 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/93 0.617608 210.649902 1981.639867 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/94 0.601417 210.048485 2029.178219 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/95 0.498724 209.549761 2441.197715 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/96 0.434648 209.115113 2795.271618 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/97 0.381120 208.733993 3182.058304 12.26%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/87 0.000000 186.720826 1000.000000 12.41%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/88 0.117634 186.603192 1110.416070 12.41%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/89 0.090806 186.512386 1437.774931 12.41%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/90 0.103625 186.408761 1259.215414 12.41%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/91 0.077991 186.330770 1672.395058 12.41%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/92 0.074643 186.256128 1746.715367 12.41%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/93 0.067323 186.188805 1935.926212 12.41%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/94 0.074304 186.114500 1753.330176 12.41%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1A - Pennant Pennant - 10 yr - Tbl 1a
<TABLE>
<CAPTION>
Beginning # of units
- ------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a PENN GROWEQ Q 12/31/95 11.747874 2186.449700 186.114500
- ------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/96 13.872617 2581.068578 186.054915
- ------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/97 17.338543 3225.046258 186.004456
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/87 5.618674 1000.000000 177.977936
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/88 6.525979 1161.480271 177.977936
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/89 6.396748 1137.793866 177.870672
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/90 5.737681 1019.937298 177.761242
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/91 7.752279 1377.108958 177.639241
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/92 8.851986 1571.660775 177.548945
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/93 10.454800 1855.411962 177.469867
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/94 9.553762 1694.865197 177.402912
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/95 10.968126 1944.973859 177.329642
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/96 12.314743 2182.983027 177.265821
- ------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/97 14.060442 2491.636564 177.208978
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/87 6.723442 1000.000000 148.733342
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/88 7.104860 1056.729574 148.733342
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/89 7.760881 1153.777449 148.665783
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/90 8.290079 1231.938354 148.603934
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/91 9.102169 1352.091103 148.546034
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/92 9.439952 1401.769615 148.493299
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/93 9.925608 1473.381582 148.442451
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/94 9.772495 1450.180517 148.394092
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/95 10.691231 1585.990385 148.344974
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/96 10.995296 1630.603248 148.300077
- ------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/97 11.573431 1715.835475 148.256422
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/87 6.121631 1000.000000 163.355158
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/88 6.490498 1060.256327 163.355158
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/89 7.226374 1179.507963 163.222657
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/90 7.692775 1254.719667 163.103648
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/91 8.770907 1429.586402 162.991855
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/92 9.216454 1501.303248 162.893804
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/93 10.148405 1652.165329 162.800492
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/94 9.477839 1542.193680 162.715750
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/95 11.229457 1826.190578 162.625012
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/96 11.530715 1874.299592 162.548428
- ------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/97 12.283530 1995.752339 162.473844
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/87 4.724564 1000.000000 211.659743
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/88 6.039898 1278.403256 211.659743
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/89 6.728437 1419.794649 211.014036
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/90 6.100284 1283.709645 210.434407
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/91 7.680989 1611.433797 209.795092
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/92 8.699744 1820.746326 209.287345
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/93 9.186022 1918.400165 208.839056
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/94 9.323905 1943.236981 208.414498
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/95 12.641006 2629.281445 207.996218
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/96 15.603540 3240.663314 207.687699
- ------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/97 19.229622 3988.949625 207.437755
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- ----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a PENN GROWEQ Q 12/31/95 0.059585 186.054915 2185.749700 12.41%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/96 0.050459 186.004456 2580.368578 12.41%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/97 0.040372 185.964084 3224.346258 12.41%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/87 0.000000 177.977936 1000.000000 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/88 0.107264 177.870672 1160.780271 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/89 0.109431 177.761242 1137.093866 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/90 0.122001 177.639241 1019.237298 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/91 0.090296 177.548945 1376.408958 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/92 0.079078 177.469867 1570.960775 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/93 0.066955 177.402912 1854.711962 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/94 0.073270 177.329642 1694.165197 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/95 0.063821 177.265821 1944.273859 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/96 0.056842 177.208978 2182.283027 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/97 0.049785 177.159193 2490.936564 9.55%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/87 0.000000 148.733342 1000.000000 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/88 0.067559 148.665783 1056.249574 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/89 0.061849 148.603934 1153.297449 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/90 0.057901 148.546034 1231.458354 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/91 0.052735 148.493299 1351.611103 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/92 0.050848 148.442451 1401.289615 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/93 0.048360 148.394092 1472.901582 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/94 0.049117 148.344974 1449.700517 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/95 0.044897 148.300077 1585.510385 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/96 0.043655 148.256422 1630.123248 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/97 0.041474 148.214948 1715.355475 5.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/87 0.000000 163.355158 1000.000000 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/88 0.132501 163.222657 1059.396327 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/89 0.119009 163.103648 1178.647963 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/90 0.111793 162.991855 1253.859667 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/91 0.098051 162.893804 1428.726402 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/92 0.093311 162.800492 1500.443248 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/93 0.084742 162.715750 1651.305329 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/94 0.090738 162.625012 1541.333680 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/95 0.076584 162.548428 1825.330578 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/96 0.074583 162.473844 1873.439592 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/97 0.070012 162.403832 1994.892339 7.14%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/87 0.000000 211.659743 1000.000000 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/88 0.645706 211.014036 1274.503256 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/89 0.579629 210.434407 1415.894649 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/90 0.639314 209.795092 1279.809645 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/91 0.507747 209.287345 1607.533797 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/92 0.448289 208.839056 1816.846326 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/93 0.424558 208.414498 1914.500165 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/94 0.418280 207.996218 1939.336981 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/95 0.308520 207.687699 2625.381445 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/96 0.249943 207.437755 3236.763314 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/97 0.202812 207.234943 3985.049625 14.81%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Pennant - 10 YR - Tbl 2
Table 2 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- ---------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 PENN CAPAPP Q 12/31/87 5.768019 1000.000000 173.369748
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/88 5.577805 967.022647 173.369748
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/89 7.084750 1226.236351 173.081104
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/90 6.896673 1192.116516 172.853855
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/91 9.648771 1665.574800 172.620409
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/92 9.386697 1618.769208 172.453549
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/93 10.185124 1754.713832 172.282029
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/94 9.926047 1708.510474 172.123956
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/95 12.818022 2204.209574 171.961756
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/96 12.092262 2077.887768 171.836152
- ---------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/97 11.535663 1980.708045 171.703009
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/87 4.423567 1000.000000 226.061909
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/88 5.352534 1210.004053 226.061909
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/89 6.193601 1395.798011 225.361306
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/90 5.173663 1162.810986 224.755843
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/91 6.705724 1502.290171 224.031018
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/92 7.728908 1727.192935 223.471794
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/93 9.015770 2010.395920 222.986602
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/94 9.518617 2118.564911 222.570665
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/95 12.600495 2799.536394 222.176700
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/96 14.198506 3150.351625 221.879092
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/97 17.936633 3975.026565 221.614980
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/87 4.242140 1000.000000 235.730080
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/88 4.834827 1139.714154 235.730080
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/89 6.270101 1472.552715 234.853109
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/90 5.457380 1277.992244 234.176884
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/91 7.830958 1827.745241 233.399955
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/92 8.441505 1965.676308 232.858514
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/93 9.936599 2308.830719 232.356234
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/94 9.796554 2272.110148 231.929528
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/95 13.077900 3027.490994 231.496723
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/96 14.790873 3419.243266 231.172512
- ---------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/97 18.010082 4158.273068 230.885849
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/87 4.637999 1000.000000 215.610223
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/88 5.439985 1172.916381 215.610223
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/89 6.500886 1394.714421 214.542206
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/90 6.357921 1358.360166 213.648481
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/91 7.625445 1622.196454 212.734661
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/92 8.238463 1746.329558 211.972738
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/93 9.407267 1987.449867 211.267509
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/94 9.660523 2034.988219 210.649902
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/95 11.649728 2447.007715 210.048485
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/96 13.367143 2801.081618 209.549761
- ---------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/97 15.244562 3187.868304 209.115113
- ---------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/87 5.355589 1000.000000 186.720826
- ---------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/88 5.950681 1111.116070 186.720826
- ---------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/89 7.708737 1438.474931 186.603192
- ---------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/90 6.755130 1259.915414 186.512386
- ---------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/91 8.975410 1673.095058 186.408761
- ---------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/92 9.378029 1747.415367 186.330770
- ---------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/93 10.397651 1936.626212 186.256128
- ---------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/94 9.420707 1754.030176 186.188805
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 PENN CAPAPP Q 12/31/87 0.000000 173.369748 1000.000000 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/88 0.288644 173.081104 965.412647 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/89 0.227249 172.853855 1224.626351 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/90 0.233446 172.620409 1190.506516 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/91 0.166861 172.453549 1663.964800 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/92 0.171519 172.282029 1617.159208 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/93 0.158074 172.123956 1753.103832 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/94 0.162200 171.961756 1706.900474 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/95 0.125604 171.836152 2202.599574 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/96 0.133143 171.703009 2076.277768 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/97 0.139567 171.563442 1979.098045 7.06%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/87 0.000000 226.061909 1000.000000 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/88 0.700603 225.361306 1206.254053 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/89 0.605464 224.755843 1392.048011 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/90 0.724825 224.031018 1159.060986 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/91 0.559224 223.471794 1498.540171 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/92 0.485191 222.986602 1723.442935 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/93 0.415938 222.570665 2006.645920 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/94 0.393965 222.176700 2114.814911 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/95 0.297607 221.879092 2795.786394 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/96 0.264112 221.614980 3146.601625 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/97 0.209069 221.405911 3971.276565 14.77%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/87 0.000000 235.730080 1000.000000 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/88 0.876970 234.853109 1135.474154 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/89 0.676225 234.176884 1468.312715 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/90 0.776930 233.399955 1273.752244 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/91 0.541441 232.858514 1823.505241 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/92 0.502280 232.356234 1961.436308 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/93 0.426705 231.929528 2304.590719 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/94 0.432805 231.496723 2267.870148 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/95 0.324211 231.172512 3023.250994 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/96 0.286663 230.885849 3415.003266 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/97 0.235424 230.650425 4154.033068 15.29%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/87 0.000000 215.610223 1000.000000 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/88 1.068018 214.542206 1167.106381 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/89 0.893724 213.648481 1388.904421 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/90 0.913821 212.734661 1352.550166 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/91 0.761923 211.972738 1616.386454 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/92 0.705229 211.267509 1740.519558 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/93 0.617608 210.649902 1981.639867 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/94 0.601417 210.048485 2029.178219 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/95 0.498724 209.549761 2441.197715 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/96 0.434648 209.115113 2795.271618 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/97 0.381120 208.733993 3182.058304 12.26%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/87 0.000000 186.720826 1000.000000 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/88 0.117634 186.603192 1110.416070 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/89 0.090806 186.512386 1437.774931 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/90 0.103625 186.408761 1259.215414 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/91 0.077991 186.330770 1672.395058 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/92 0.074643 186.256128 1746.715367 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/93 0.067323 186.188805 1935.926212 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/94 0.074304 186.114500 1753.330176 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Pennant - 10 YR - Tbl 2
Table 2 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- ----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 PENN GROWEQ Q 12/31/95 11.747874 2186.449700 186.114500
- ----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/96 13.872617 2581.068578 186.054915
- ----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/97 17.338543 3225.046258 186.004456
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/87 5.618674 1000.000000 177.977936
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/88 6.525979 1161.480271 177.977936
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/89 6.396748 1137.793866 177.870672
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/90 5.737681 1019.937298 177.761242
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/91 7.752279 1377.108958 177.639241
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/92 8.851986 1571.660775 177.548945
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/93 10.454800 1855.411962 177.469867
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/94 9.553762 1694.865197 177.402912
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/95 10.968126 1944.973859 177.329642
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/96 12.314743 2182.983027 177.265821
- ----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/97 14.060442 2491.636564 177.208978
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/87 6.723442 1000.000000 148.733342
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/88 7.104860 1056.729574 148.733342
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/89 7.760881 1153.777449 148.665783
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/90 8.290079 1231.938354 148.603934
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/91 9.102169 1352.091103 148.546034
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/92 9.439952 1401.769615 148.493299
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/93 9.925608 1473.381582 148.442451
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/94 9.772495 1450.180517 148.394092
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/95 10.691231 1585.990385 148.344974
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/96 10.995296 1630.603248 148.300077
- ----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/97 11.573431 1715.835475 148.256422
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/87 6.121631 1000.000000 163.355158
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/88 6.490498 1060.256327 163.355158
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/89 7.226374 1179.507963 163.222657
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/90 7.692775 1254.719667 163.103648
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/91 8.770907 1429.586402 162.991855
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/92 9.216454 1501.303248 162.893804
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/93 10.148405 1652.165329 162.800492
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/94 9.477839 1542.193680 162.715750
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/95 11.229457 1826.190578 162.625012
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/96 11.530715 1874.299592 162.548428
- ----------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/97 12.283530 1995.752339 162.473844
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/87 4.724564 1000.000000 211.659743
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/88 6.039898 1278.403256 211.659743
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/89 6.728437 1419.794649 211.014036
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/90 6.100284 1283.709645 210.434407
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/91 7.680989 1611.433797 209.795092
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/92 8.699744 1820.746326 209.287345
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/93 9.186022 1918.400165 208.839056
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/94 9.323905 1943.236981 208.414498
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/95 12.641006 2629.281445 207.996218
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/96 15.603540 3240.663314 207.687699
- ----------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/97 19.229622 3988.949625 207.437755
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 PENN GROWEQ Q 12/31/95 0.059585 186.054915 2185.749700 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/96 0.050459 186.004456 2580.368578 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/97 0.040372 185.964084 3224.346258 12.41%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/87 0.000000 177.977936 1000.000000 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/88 0.107264 177.870672 1160.780271 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/89 0.109431 177.761242 1137.093866 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/90 0.122001 177.639241 1019.237298 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/91 0.090296 177.548945 1376.408958 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/92 0.079078 177.469867 1570.960775 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/93 0.066955 177.402912 1854.711962 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/94 0.073270 177.329642 1694.165197 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/95 0.063821 177.265821 1944.273859 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/96 0.056842 177.208978 2182.283027 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/97 0.049785 177.159193 2490.936564 9.55%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/87 0.000000 148.733342 1000.000000 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/88 0.067559 148.665783 1056.249574 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/89 0.061849 148.603934 1153.297449 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/90 0.057901 148.546034 1231.458354 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/91 0.052735 148.493299 1351.611103 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/92 0.050848 148.442451 1401.289615 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/93 0.048360 148.394092 1472.901582 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/94 0.049117 148.344974 1449.700517 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/95 0.044897 148.300077 1585.510385 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/96 0.043655 148.256422 1630.123248 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/97 0.041474 148.214948 1715.355475 5.54%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/87 0.000000 163.355158 1000.000000 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/88 0.132501 163.222657 1059.396327 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/89 0.119009 163.103648 1178.647963 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/90 0.111793 162.991855 1253.859667 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/91 0.098051 162.893804 1428.726402 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/92 0.093311 162.800492 1500.443248 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/93 0.084742 162.715750 1651.305329 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/94 0.090738 162.625012 1541.333680 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/95 0.076584 162.548428 1825.330578 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/96 0.074583 162.473844 1873.439592 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/97 0.070012 162.403832 1994.892339 7.14%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/87 0.000000 211.659743 1000.000000 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/88 0.645706 211.014036 1274.503256 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/89 0.579629 210.434407 1415.894649 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/90 0.639314 209.795092 1279.809645 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/91 0.507747 209.287345 1607.533797 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/92 0.448289 208.839056 1816.846326 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/93 0.424558 208.414498 1914.500165 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/94 0.418280 207.996218 1939.336981 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/95 0.308520 207.687699 2625.381445 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/96 0.249943 207.437755 3236.763314 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/97 0.202812 207.234943 3985.049625 14.81%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Pennant - 10 YR - Tbl 3
Table 3 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- ---------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 PENN CAPAPP Q 12/31/87 5.768019 10000.000000 1733.697479
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/88 5.577805 9670.226468 1733.697479
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/89 7.084750 12280.768245 1733.408835
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/90 6.896673 11953.186652 1733.181586
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/91 9.648771 16720.819763 1732.948141
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/92 9.386697 16265.092842 1732.781280
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/93 10.185124 17646.845256 1732.609761
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/94 9.926047 17196.396870 1732.451687
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/95 12.818022 22204.524760 1732.289487
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/96 12.092262 20945.779500 1732.163883
- ---------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/97 11.535663 19980.122923 1732.030740
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/87 4.423567 10000.000000 2260.619089
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/88 5.352534 12100.040533 2260.619089
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/89 6.193601 13997.033394 2259.918486
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/90 5.173663 11688.924189 2259.313022
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/91 6.705724 15145.469081 2258.588197
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/92 7.728908 17452.098198 2258.028974
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/93 9.015770 20353.495505 2257.543782
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/94 9.518617 21484.735470 2257.127844
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/95 12.600495 28435.963965 2256.733880
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/96 14.198506 32038.023949 2256.436272
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/97 17.936633 40468.132016 2256.172160
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/87 4.242140 10000.000000 2357.300796
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/88 4.834827 11397.141537 2357.300796
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/89 6.270101 14775.015387 2356.423826
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/90 5.457380 12856.209842 2355.747601
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/91 7.830958 18441.676417 2354.970671
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/92 8.441505 19874.926121 2354.429230
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/93 9.936599 23390.028181 2353.926950
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/94 9.796554 23056.192239 2353.500245
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/95 13.077900 30773.180670 2353.067440
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/96 14.790873 34799.126296 2352.743229
- ---------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/97 18.010082 42367.935644 2352.456565
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/87 4.637999 10000.000000 2156.102233
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/88 5.439985 11729.163805 2156.102233
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/89 6.500886 14009.631759 2155.034215
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/90 6.357921 13695.855064 2154.140491
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/91 7.625445 16419.311546 2153.226670
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/92 8.238463 17733.001180 2152.464747
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/93 9.407267 20242.176313 2151.759519
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/94 9.660523 20781.155909 2151.141911
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/95 11.649728 25053.211813 2150.540494
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/96 13.367143 28739.915800 2150.041770
- ---------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/97 15.244562 32769.819054 2149.607122
- ---------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/87 5.355589 10000.000000 1867.208257
- ---------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/88 5.950681 11111.160696 1867.208257
- ---------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/89 7.708737 14392.910568 1867.090623
- ---------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/90 6.755130 12611.826474 1866.999817
- ---------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/91 8.975410 16756.158751 1866.896192
- ---------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/92 9.378029 17507.075228 1866.818201
- ---------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/93 10.397651 19409.748029 1866.743559
- ---------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/94 9.420707 17585.409881 1866.676236
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- ----------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 PENN CAPAPP Q 12/31/87 0.000000 1733.697479 10000.000000 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/88 0.288644 1733.408835 9668.616468 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/89 0.227249 1733.181586 12279.158245 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/90 0.233446 1732.948141 11951.576652 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/91 0.166861 1732.781280 16719.209763 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/92 0.171519 1732.609761 16263.482842 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/93 0.158074 1732.451687 17645.235256 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/94 0.162200 1732.289487 17194.786870 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/95 0.125604 1732.163883 22202.914760 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/96 0.133143 1732.030740 20944.169500 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/97 0.139567 1731.891173 19978.512923 7.16%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/87 0.000000 2260.619089 10000.000000 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/88 0.700603 2259.918486 12096.290533 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/89 0.605464 2259.313022 13993.283394 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/90 0.724825 2258.588197 11685.174189 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/91 0.559224 2258.028974 15141.719081 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/92 0.485191 2257.543782 17448.348198 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/93 0.415938 2257.127844 20349.745505 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/94 0.393965 2256.733880 21480.985470 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/95 0.297607 2256.436272 28432.213965 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/96 0.264112 2256.172160 32034.273949 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/97 0.209069 2255.963091 40464.382016 14.99%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/87 0.000000 2357.300796 10000.000000 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/88 0.876970 2356.423826 11392.901537 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/89 0.676225 2355.747601 14770.775387 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/90 0.776930 2354.970671 12851.969842 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/91 0.541441 2354.429230 18437.436417 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/92 0.502280 2353.926950 19870.686121 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/93 0.426705 2353.500245 23385.788181 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/94 0.432805 2353.067440 23051.952239 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/95 0.324211 2352.743229 30768.940670 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/96 0.286663 2352.456565 34794.886296 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/97 0.235424 2352.221142 42363.695644 15.52%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/87 0.000000 2156.102233 10000.000000 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/88 1.068018 2155.034215 11723.353805 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/89 0.893724 2154.140491 14003.821759 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/90 0.913821 2153.226670 13690.045064 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/91 0.761923 2152.464747 16413.501546 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/92 0.705229 2151.759519 17727.191180 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/93 0.617608 2151.141911 20236.366313 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/94 0.601417 2150.540494 20775.345909 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/95 0.498724 2150.041770 25047.401813 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/96 0.434648 2149.607122 28734.105800 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/97 0.381120 2149.226003 32764.009054 12.59%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/87 0.000000 1867.208257 10000.000000 12.45%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/88 0.117634 1867.090623 11110.460696 12.45%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/89 0.090806 1866.999817 14392.210568 12.45%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/90 0.103625 1866.896192 12611.126474 12.45%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/91 0.077991 1866.818201 16755.458751 12.45%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/92 0.074643 1866.743559 17506.375228 12.45%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/93 0.067323 1866.676236 19409.048029 12.45%
- ----------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/94 0.074304 1866.601931 17584.709881 12.45%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 5
<PAGE>
Table 3 - Pennant Pennant - 10 YR - Tbl 3
<TABLE>
<CAPTION>
Beginning # of units
- --------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 PENN GROWEQ Q 12/31/95 11.747874 21928.604297 1866.601931
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/96 13.872617 25893.827081 1866.542346
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/97 17.338543 32362.249841 1866.491887
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/87 5.618674 10000.000000 1779.779357
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/88 6.525979 11614.802710 1779.779357
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/89 6.396748 11384.113905 1779.672094
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/90 5.737681 10210.562880 1779.562663
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/91 7.752279 13794.720479 1779.440662
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/92 8.851986 15750.784533 1779.350366
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/93 10.454800 18601.925463 1779.271288
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/94 9.553762 16998.094749 1779.204333
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/95 10.968126 19513.733677 1779.131064
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/96 12.314743 21908.755870 1779.067242
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/97 14.060442 25013.672546 1779.010400
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/87 6.723442 10000.000000 1487.333422
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/88 7.104860 10567.295739 1487.333422
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/89 7.760881 11542.493378 1487.265863
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/90 8.290079 12329.038768 1487.204014
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/91 9.102169 13536.255256 1487.146114
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/92 9.439952 14038.090118 1487.093379
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/93 9.925608 14759.801246 1487.042531
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/94 9.772495 14531.643107 1486.994172
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/95 10.691231 15897.273059 1486.945054
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/96 10.995296 16348.907355 1486.900158
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/97 11.573431 17208.031139 1486.856503
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/87 6.121631 10000.000000 1633.551581
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/88 6.490498 10602.563271 1633.551581
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/89 7.226374 11803.697170 1633.419080
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/90 7.692775 12564.609957 1633.300071
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/91 8.770907 14324.542501 1633.188278
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/92 9.216454 15051.300953 1633.090227
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/93 10.148405 16572.314061 1632.996915
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/94 9.477839 15476.478677 1632.912173
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/95 11.229457 18335.698093 1632.821435
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/96 11.530715 18826.715541 1632.744851
- --------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/97 12.283530 20054.954208 1632.670267
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/87 4.724564 10000.000000 2116.597426
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/88 6.039898 12784.032558 2116.597426
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/89 6.728437 14237.047839 2115.951719
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/90 6.100284 12904.370515 2115.372090
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/91 7.680989 16243.239187 2114.732776
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/92 8.699744 18393.216506 2114.225028
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/93 9.186022 19417.199631 2113.776739
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/94 9.323905 19704.694970 2113.352181
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/95 12.641006 26709.610128 2112.933902
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/96 15.603540 32964.434651 2112.625382
- --------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/97 19.229622 40620.181206 2112.375439
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
3 PENN GROWEQ Q 12/31/95 0.059585 1866.542346 21927.904297 12.45%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/96 0.050459 1866.491887 25893.127081 12.45%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/97 0.040372 1866.451514 32361.549841 12.45%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/87 0.000000 1779.779357 10000.000000 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/88 0.107264 1779.672094 11614.102710 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/89 0.109431 1779.562663 11383.413905 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/90 0.122001 1779.440662 10209.862880 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/91 0.090296 1779.350366 13794.020479 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/92 0.079078 1779.271288 15750.084533 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/93 0.066955 1779.204333 18601.225463 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/94 0.073270 1779.131064 16997.394749 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/95 0.063821 1779.067242 19513.033677 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/96 0.056842 1779.010400 21908.055870 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/97 0.049785 1778.960615 25012.972546 9.59%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/87 0.000000 1487.333422 10000.000000 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/88 0.067559 1487.265863 10566.815739 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/89 0.061849 1487.204014 11542.013378 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/90 0.057901 1487.146114 12328.558768 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/91 0.052735 1487.093379 13535.775256 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/92 0.050848 1487.042531 14037.610118 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/93 0.048360 1486.994172 14759.321246 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/94 0.049117 1486.945054 14531.163107 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/95 0.044897 1486.900158 15896.793059 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/96 0.043655 1486.856503 16348.427355 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/97 0.041474 1486.815028 17207.551139 5.57%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/87 0.000000 1633.551581 10000.000000 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/88 0.132501 1633.419080 10601.703271 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/89 0.119009 1633.300071 11802.837170 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/90 0.111793 1633.188278 12563.749957 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/91 0.098051 1633.090227 14323.682501 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/92 0.093311 1632.996915 15050.440953 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/93 0.084742 1632.912173 16571.454061 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/94 0.090738 1632.821435 15475.618677 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/95 0.076584 1632.744851 18334.838093 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/96 0.074583 1632.670267 18825.855541 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/97 0.070012 1632.600255 20054.094208 7.20%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/87 0.000000 2116.597426 10000.000000 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/88 0.645706 2115.951719 12780.132558 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/89 0.579629 2115.372090 14233.147839 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/90 0.639314 2114.732776 12900.470515 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/91 0.507747 2114.225028 16239.339187 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/92 0.448289 2113.776739 18389.316506 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/93 0.424558 2113.352181 19413.299631 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/94 0.418280 2112.933902 19700.794970 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/95 0.308520 2112.625382 26705.710128 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/96 0.249943 2112.375439 32960.534651 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/97 0.202812 2112.172626 40616.281206 15.03%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 6
<PAGE>
Table 1A - Pennant Pennant - inception - Tbl 1a
<TABLE>
<CAPTION>
Beginning # of units
- --------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- --------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C>
1a PENN BALFND Q 12/31/89 7.365810 1000.000000 135.762394
- --------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/90 7.405018 1005.322972 135.762394
- --------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/91 8.958110 1215.146185 135.647607
- --------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/92 9.544854 1293.830931 135.552721
- --------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/93 9.981206 1352.090773 135.463668
- --------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/94 9.548559 1292.669668 135.378508
- --------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/95 11.653880 1576.647470 135.289489
- --------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/96 12.281752 1660.696157 135.216552
- --------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/97 14.467110 1955.191486 135.147344
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/87 5.768019 1000.000000 173.369748
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/88 5.577805 967.022647 173.369748
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/89 7.084750 1226.236351 173.081104
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/90 6.896673 1192.116516 172.853855
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/91 9.648771 1665.574800 172.620409
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/92 9.386697 1618.769208 172.453549
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/93 10.185124 1754.713832 172.282029
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/94 9.926047 1708.510474 172.123956
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/95 12.818022 2204.209574 171.961756
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/96 12.092262 2077.887768 171.836152
- --------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/97 11.535663 1980.708045 171.703009
- --------------------------------------------------------------------------------------------------------
1a PENN EMGGRO Q 12/31/97 13.792539 1000.000000 72.502967
- --------------------------------------------------------------------------------------------------------
1a PENN EMGMKT Q 12/31/96 9.064076 1000.000000 110.325642
- --------------------------------------------------------------------------------------------------------
1a PENN EMGMKT Q 12/31/97 8.965575 989.132814 110.325642
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/89 6.415215 1000.000000 155.879421
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/90 6.751165 1052.367691 155.879421
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/91 8.159166 1270.927569 155.766848
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/92 8.987776 1399.160355 155.673701
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/93 10.744669 1671.753829 155.589142
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/94 9.949957 1547.401483 155.518409
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/95 11.476196 1783.883166 155.442027
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/96 12.967956 2014.906574 155.375803
- --------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/97 15.428479 2396.308109 155.317197
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/87 4.423567 1000.000000 226.061909
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/88 5.352534 1210.004053 226.061909
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/89 6.193601 1395.798011 225.361306
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/90 5.173663 1162.810986 224.755843
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/91 6.705724 1502.290171 224.031018
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/92 7.728908 1727.192935 223.471794
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/93 9.015770 2010.395920 222.986602
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/94 9.518617 2118.564911 222.570665
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/95 12.600495 2799.536394 222.176700
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/96 14.198506 3150.351625 221.879092
- --------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/97 17.936633 3975.026565 221.614980
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/87 4.242140 1000.000000 235.730080
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/88 4.834827 1139.714154 235.730080
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/89 6.270101 1472.552715 234.853109
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/90 5.457380 1277.992244 234.176884
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/91 7.830958 1827.745241 233.399955
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/92 8.441505 1965.676308 232.858514
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/93 9.936599 2308.830719 232.356234
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/94 9.796554 2272.110148 231.929528
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/95 13.077900 3027.490994 231.496723
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return from
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1a PENN BALFND Q 12/31/89 0.000000 135.762394 1000.000000 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/90 0.114787 135.647607 1004.472972 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/91 0.094886 135.552721 1214.296185 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/92 0.089053 135.463668 1292.980931 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/93 0.085160 135.378508 1351.240773 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/94 0.089019 135.289489 1291.819668 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/95 0.072937 135.216552 1575.797470 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/96 0.069208 135.147344 1659.846157 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN BALFND Q 12/31/97 0.058754 135.088590 1954.341486 9.59%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/87 0.000000 173.369748 1000.000000 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/88 0.288644 173.081104 965.412647 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/89 0.227249 172.853855 1224.626351 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/90 0.233446 172.620409 1190.506516 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/91 0.166861 172.453549 1663.964800 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/92 0.171519 172.282029 1617.159208 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/93 0.158074 172.123956 1753.103832 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/94 0.162200 171.961756 1706.900474 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/95 0.125604 171.836152 2202.599574 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/96 0.133143 171.703009 2076.277768 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN CAPAPP Q 12/31/97 0.139567 171.563442 1979.098045 7.65%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN EMGGRO Q 12/31/97 0.000000 72.502967 1000.000000 49.57%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN EMGMKT Q 12/31/96 0.000000 110.325642 1000.000000 -6.76%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN EMGMKT Q 12/31/97 0.007808 110.317834 989.062814 -6.76%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/89 0.000000 155.879421 1000.000000 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/90 0.112573 155.766848 1051.607691 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/91 0.093147 155.673701 1270.167569 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/92 0.084559 155.589142 1398.400355 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/93 0.070733 155.518409 1670.993829 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/94 0.076382 155.442027 1546.641483 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/95 0.066224 155.375803 1783.123166 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/96 0.058606 155.317197 2014.146574 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDASM Q 12/31/97 0.049260 155.267937 2395.548109 11.11%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/87 0.000000 226.061909 1000.000000 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/88 0.700603 225.361306 1206.254053 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/89 0.605464 224.755843 1392.048011 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/90 0.724825 224.031018 1159.060986 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/91 0.559224 223.471794 1498.540171 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/92 0.485191 222.986602 1723.442935 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/93 0.415938 222.570665 2006.645920 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/94 0.393965 222.176700 2114.814911 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/95 0.297607 221.879092 2795.786394 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/96 0.264112 221.614980 3146.601625 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDEQI Q 12/31/97 0.209069 221.405911 3971.276565 12.74%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/87 0.000000 235.730080 1000.000000 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/88 0.876970 234.853109 1135.474154 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/89 0.676225 234.176884 1468.312715 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/90 0.776930 233.399955 1273.752244 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/91 0.541441 232.858514 1823.505241 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/92 0.502280 232.356234 1961.436308 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/93 0.426705 231.929528 2304.590719 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/94 0.432805 231.496723 2267.870148 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/95 0.324211 231.172512 3023.250994 13.68%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Pennant - inception - Tbl 1a
Table 1A - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- --------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- --------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C>
1a PENN FIDGRO Q 12/31/96 14.790873 3419.243266 231.172512
- --------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/97 18.010082 4158.273068 230.885849
- --------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/92 5.158836 1000.000000 193.842177
- --------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/93 5.606646 1086.804465 193.842177
- --------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/94 5.610504 1087.432226 193.820774
- --------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/95 7.623108 1477.353644 193.799385
- --------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/96 9.263894 1795.191133 193.783644
- --------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/97 12.150233 2354.359033 193.770690
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/87 4.637999 1000.000000 215.610223
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/88 5.439985 1172.916381 215.610223
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/89 6.500886 1394.714421 214.542206
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/90 6.357921 1358.360166 213.648481
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/91 7.625445 1622.196454 212.734661
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/92 8.238463 1746.329558 211.972738
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/93 9.407267 1987.449867 211.267509
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/94 9.660523 2034.988219 210.649902
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/95 11.649728 2447.007715 210.048485
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/96 13.367143 2801.081618 209.549761
- --------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/97 15.244562 3187.868304 209.115113
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/87 5.355589 1000.000000 186.720826
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/88 5.950681 1111.116070 186.720826
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/89 7.708737 1438.474931 186.603192
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/90 6.755130 1259.915414 186.512386
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/91 8.975410 1673.095058 186.408761
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/92 9.378029 1747.415367 186.330770
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/93 10.397651 1936.626212 186.256128
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/94 9.420707 1754.030176 186.188805
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/95 11.747874 2186.449700 186.114500
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/96 13.872617 2581.068578 186.054915
- --------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/97 17.338543 3225.046258 186.004456
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/87 5.618674 1000.000000 177.977936
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/88 6.525979 1161.480271 177.977936
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/89 6.396748 1137.793866 177.870672
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/90 5.737681 1019.937298 177.761242
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/91 7.752279 1377.108958 177.639241
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/92 8.851986 1571.660775 177.548945
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/93 10.454800 1855.411962 177.469867
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/94 9.553762 1694.865197 177.402912
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/95 10.968126 1944.973859 177.329642
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/96 12.314743 2182.983027 177.265821
- --------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/97 14.060442 2491.636564 177.208978
- --------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/92 8.411030 1000.000000 118.891503
- --------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/93 11.456448 1362.074324 118.891503
- --------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/94 10.584417 1255.828853 118.648845
- --------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/95 11.878760 1406.281195 118.386195
- --------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/96 13.687743 1617.236451 118.152164
- --------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/97 14.902210 1757.701695 117.949062
- --------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/87 6.723442 1000.000000 148.733342
- --------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/88 7.104860 1056.729574 148.733342
- --------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/89 7.760881 1153.777449 148.665783
- --------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/90 8.290079 1231.938354 148.603934
- --------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/91 9.102169 1352.091103 148.546034
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return from
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- --------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1a PENN FIDGRO Q 12/31/96 0.286663 230.885849 3415.003266 13.68%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FIDGRO Q 12/31/97 0.235424 230.650425 4154.033068 13.68%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/92 0.000000 193.842177 1000.000000 18.26%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/93 0.021403 193.820774 1086.684465 18.26%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/94 0.021388 193.799385 1087.312226 18.26%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/95 0.015742 193.783644 1477.233644 18.26%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/96 0.012954 193.770690 1795.071133 18.26%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FIDIND Q 12/31/97 0.009876 193.760814 2354.239033 18.26%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/87 0.000000 215.610223 1000.000000 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/88 1.068018 214.542206 1167.106381 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/89 0.893724 213.648481 1388.904421 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/90 0.913821 212.734661 1352.550166 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/91 0.761923 211.972738 1616.386454 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/92 0.705229 211.267509 1740.519558 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/93 0.617608 210.649902 1981.639867 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/94 0.601417 210.048485 2029.178219 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/95 0.498724 209.549761 2441.197715 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/96 0.434648 209.115113 2795.271618 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN FLEXMN Q 12/31/97 0.381120 208.733993 3182.058304 13.30%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/87 0.000000 186.720826 1000.000000 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/88 0.117634 186.603192 1110.416070 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/89 0.090806 186.512386 1437.774931 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/90 0.103625 186.408761 1259.215414 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/91 0.077991 186.330770 1672.395058 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/92 0.074643 186.256128 1746.715367 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/93 0.067323 186.188805 1935.926212 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/94 0.074304 186.114500 1753.330176 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/95 0.059585 186.054915 2185.749700 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/96 0.050459 186.004456 2580.368578 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN GROWEQ Q 12/31/97 0.040372 185.964084 3224.346258 11.17%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/87 0.000000 177.977936 1000.000000 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/88 0.107264 177.870672 1160.780271 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/89 0.109431 177.761242 1137.093866 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/90 0.122001 177.639241 1019.237298 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/91 0.090296 177.548945 1376.408958 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/92 0.079078 177.469867 1570.960775 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/93 0.066955 177.402912 1854.711962 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/94 0.073270 177.329642 1694.165197 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/95 0.063821 177.265821 1944.273859 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/96 0.056842 177.208978 2182.283027 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN HIBOND Q 12/31/97 0.049785 177.159193 2490.936564 9.24%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/92 0.000000 118.891503 1000.000000 11.46%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/93 0.242658 118.648845 1359.294324 11.46%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/94 0.262650 118.386195 1253.048853 11.46%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/95 0.234031 118.152164 1403.501195 11.46%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/96 0.203101 117.949062 1614.456451 11.46%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN INTLEQ Q 12/31/97 0.186550 117.762513 1754.921695 11.46%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/87 0.000000 148.733342 1000.000000 6.65%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/88 0.067559 148.665783 1056.249574 6.65%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/89 0.061849 148.603934 1153.297449 6.65%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/90 0.057901 148.546034 1231.458354 6.65%
- --------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/91 0.052735 148.493299 1351.611103 6.65%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1A Pennant - inception - Tbl 1a
<TABLE>
<CAPTION>
Beginning # of units
- ----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a PENN LIMMAT Q 12/31/92 9.439952 1401.769615 148.493299
- ----------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/93 9.925608 1473.381582 148.442451
- ----------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/94 9.772495 1450.180517 148.394092
- ----------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/95 10.691231 1585.990385 148.344974
- ----------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/96 10.995296 1630.603248 148.300077
- ----------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/97 11.573431 1715.835475 148.256422
- ----------------------------------------------------------------------------------------------------------
1a Penn PARTNR Q 12/31/94 5.515868 1000.000000 181.295129
- ----------------------------------------------------------------------------------------------------------
1a Penn PARTNR Q 12/31/95 7.455196 1351.590720 181.295129
- ----------------------------------------------------------------------------------------------------------
1a Penn PARTNR Q 12/31/96 9.566140 1734.140606 181.279033
- ----------------------------------------------------------------------------------------------------------
1a PENN PARTNR Q 12/31/97 12.398705 2247.469717 181.266488
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/87 6.121631 1000.000000 163.355158
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/88 6.490498 1060.256327 163.355158
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/89 7.226374 1179.507963 163.222657
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/90 7.692775 1254.719667 163.103648
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/91 8.770907 1429.586402 162.991855
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/92 9.216454 1501.303248 162.893804
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/93 10.148405 1652.165329 162.800492
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/94 9.477839 1542.193680 162.715750
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/95 11.229457 1826.190578 162.625012
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/96 11.530715 1874.299592 162.548428
- ----------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/97 12.283530 1995.752339 162.473844
- ----------------------------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/95 11.145667 1000.000000 89.720965
- ----------------------------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/96 13.160579 1180.779849 89.720965
- ----------------------------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/97 15.965675 1430.102271 89.573555
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/87 4.724564 1000.000000 211.659743
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/88 6.039898 1278.403256 211.659743
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/89 6.728437 1419.794649 211.014036
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/90 6.100284 1283.709645 210.434407
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/91 7.680989 1611.433797 209.795092
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/92 8.699744 1820.746326 209.287345
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/93 9.186022 1918.400165 208.839056
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/94 9.323905 1943.236981 208.414498
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/95 12.641006 2629.281445 207.996218
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/96 15.603540 3240.663314 207.687699
- ----------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/97 19.229622 3988.949625 207.437755
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return from
- ----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a PENN LIMMAT Q 12/31/92 0.050848 148.442451 1401.289615 6.65%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/93 0.048360 148.394092 1472.901582 6.65%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/94 0.049117 148.344974 1449.700517 6.65%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/95 0.044897 148.300077 1585.510385 6.65%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/96 0.043655 148.256422 1630.123248 6.65%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN LIMMAT Q 12/31/97 0.041474 148.214948 1715.355475 6.65%
- ----------------------------------------------------------------------------------------------------------------------------
1a Penn PARTNR Q 12/31/94 0.000000 181.295129 1000.000000 21.76%
- ----------------------------------------------------------------------------------------------------------------------------
1a Penn PARTNR Q 12/31/95 0.016096 181.279033 1351.470720 21.76%
- ----------------------------------------------------------------------------------------------------------------------------
1a Penn PARTNR Q 12/31/96 0.012544 181.266488 1734.020606 21.76%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN PARTNR Q 12/31/97 0.009678 181.256810 2247.349717 21.76%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/87 0.000000 163.355158 1000.000000 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/88 0.132501 163.222657 1059.396327 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/89 0.119009 163.103648 1178.647963 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/90 0.111793 162.991855 1253.859667 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/91 0.098051 162.893804 1428.726402 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/92 0.093311 162.800492 1500.443248 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/93 0.084742 162.715750 1651.305329 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/94 0.090738 162.625012 1541.333680 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/95 0.076584 162.548428 1825.330578 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/96 0.074583 162.473844 1873.439592 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN QUALBD Q 12/31/97 0.070012 162.403832 1994.892339 6.54%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/95 0.000000 89.720965 1000.000000 15.95%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/96 0.147410 89.573555 1178.839849 15.95%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN SMLCAP Q 12/31/97 0.121511 89.452045 1428.162271 15.95%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/87 0.000000 211.659743 1000.000000 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/88 0.645706 211.014036 1274.503256 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/89 0.579629 210.434407 1415.894649 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/90 0.639314 209.795092 1279.809645 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/91 0.507747 209.287345 1607.533797 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/92 0.448289 208.839056 1816.846326 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/93 0.424558 208.414498 1914.500165 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/94 0.418280 207.996218 1939.336981 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/95 0.308520 207.687699 2625.381445 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/96 0.249943 207.437755 3236.763314 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a PENN VALUEQ Q 12/31/97 0.202812 207.234943 3985.049625 12.61%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Pennant - inception - Tbl 2
Table 2 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- -----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 PENN BALFND Q 12/31/89 7.365810 1000.000000 135.762394
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/90 7.405018 1005.322972 135.762394
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/91 8.958110 1215.146185 135.647607
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/92 9.544854 1293.830931 135.552721
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/93 9.981206 1352.090773 135.463668
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/94 9.548559 1292.669668 135.378508
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/95 11.653880 1576.647470 135.289489
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/96 12.281752 1660.696157 135.216552
- -----------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/97 14.467110 1955.191486 135.147344
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/87 5.768019 1000.000000 173.369748
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/88 5.577805 967.022647 173.369748
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/89 7.084750 1226.236351 173.081104
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/90 6.896673 1192.116516 172.853855
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/91 9.648771 1665.574800 172.620409
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/92 9.386697 1618.769208 172.453549
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/93 10.185124 1754.713832 172.282029
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/94 9.926047 1708.510474 172.123956
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/95 12.818022 2204.209574 171.961756
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/96 12.092262 2077.887768 171.836152
- -----------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/97 11.535663 1980.708045 171.703009
- -----------------------------------------------------------------------------------------------------------
2 PENN EMGGRO Q 12/31/97 13.792539 1000.000000 72.502967
- -----------------------------------------------------------------------------------------------------------
2 PENN EMGMKT Q 12/31/96 9.064076 1000.000000 110.325642
- -----------------------------------------------------------------------------------------------------------
2 PENN EMGMKT Q 12/31/97 8.965575 989.132814 110.325642
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/89 6.415215 1000.000000 155.879421
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/90 6.751165 1052.367691 155.879421
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/91 8.159166 1270.927569 155.766848
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/92 8.987776 1399.160355 155.673701
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/93 10.744669 1671.753829 155.589142
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/94 9.949957 1547.401483 155.518409
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/95 11.476196 1783.883166 155.442027
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/96 12.967956 2014.906574 155.375803
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/97 15.428479 2396.308109 155.317197
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/87 4.423567 1000.000000 226.061909
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/88 5.352534 1210.004053 226.061909
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/89 6.193601 1395.798011 225.361306
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/90 5.173663 1162.810986 224.755843
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/91 6.705724 1502.290171 224.031018
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/92 7.728908 1727.192935 223.471794
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/93 9.015770 2010.395920 222.986602
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/94 9.518617 2118.564911 222.570665
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/95 12.600495 2799.536394 222.176700
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/96 14.198506 3150.351625 221.879092
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/97 17.936633 3975.026565 221.614980
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/87 4.242140 1000.000000 235.730080
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/88 4.834827 1139.714154 235.730080
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/89 6.270101 1472.552715 234.853109
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/90 5.457380 1277.992244 234.176884
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/91 7.830958 1827.745241 233.399955
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/92 8.441505 1965.676308 232.858514
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/93 9.936599 2308.830719 232.356234
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/94 9.796554 2272.110148 231.929528
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/95 13.077900 3027.490994 231.496723
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return from
- ------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 PENN BALFND Q 12/31/89 0.000000 135.762394 1000.000000 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/90 0.114787 135.647607 1004.472972 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/91 0.094886 135.552721 1214.296185 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/92 0.089053 135.463668 1292.980931 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/93 0.085160 135.378508 1351.240773 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/94 0.089019 135.289489 1291.819668 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/95 0.072937 135.216552 1575.797470 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/96 0.069208 135.147344 1659.846157 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN BALFND Q 12/31/97 0.058754 135.088590 1954.341486 9.59%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/87 0.000000 173.369748 1000.000000 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/88 0.288644 173.081104 965.412647 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/89 0.227249 172.853855 1224.626351 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/90 0.233446 172.620409 1190.506516 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/91 0.166861 172.453549 1663.964800 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/92 0.171519 172.282029 1617.159208 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/93 0.158074 172.123956 1753.103832 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/94 0.162200 171.961756 1706.900474 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/95 0.125604 171.836152 2202.599574 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/96 0.133143 171.703009 2076.277768 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN CAPAPP Q 12/31/97 0.139567 171.563442 1979.098045 7.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN EMGGRO Q 12/31/97 0.000000 72.502967 1000.000000 61.75%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN EMGMKT Q 12/31/96 0.000000 110.325642 1000.000000 -2.77%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN EMGMKT Q 12/31/97 0.007808 110.317834 989.062814 -2.77%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/89 0.000000 155.879421 1000.000000 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/90 0.112573 155.766848 1051.607691 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/91 0.093147 155.673701 1270.167569 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/92 0.084559 155.589142 1398.400355 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/93 0.070733 155.518409 1670.993829 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/94 0.076382 155.442027 1546.641483 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/95 0.066224 155.375803 1783.123166 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/96 0.058606 155.317197 2014.146574 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDASM Q 12/31/97 0.049260 155.267937 2395.548109 11.11%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/87 0.000000 226.061909 1000.000000 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/88 0.700603 225.361306 1206.254053 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/89 0.605464 224.755843 1392.048011 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/90 0.724825 224.031018 1159.060986 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/91 0.559224 223.471794 1498.540171 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/92 0.485191 222.986602 1723.442935 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/93 0.415938 222.570665 2006.645920 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/94 0.393965 222.176700 2114.814911 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/95 0.297607 221.879092 2795.786394 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/96 0.264112 221.614980 3146.601625 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDEQI Q 12/31/97 0.209069 221.405911 3971.276565 12.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/87 0.000000 235.730080 1000.000000 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/88 0.876970 234.853109 1135.474154 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/89 0.676225 234.176884 1468.312715 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/90 0.776930 233.399955 1273.752244 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/91 0.541441 232.858514 1823.505241 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/92 0.502280 232.356234 1961.436308 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/93 0.426705 231.929528 2304.590719 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/94 0.432805 231.496723 2267.870148 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/95 0.324211 231.172512 3023.250994 13.68%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Pennant - inception - Tbl 2
Table 2 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- -----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 PENN FIDGRO Q 12/31/96 14.790873 3419.243266 231.172512
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/97 18.010082 4158.273068 230.885849
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/92 5.158836 1000.000000 193.842177
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/93 5.606646 1086.804465 193.842177
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/94 5.610504 1087.432226 193.820774
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/95 7.623108 1477.353644 193.799385
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/96 9.263894 1795.191133 193.783644
- -----------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/97 12.150233 2354.359033 193.770690
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/87 4.637999 1000.000000 215.610223
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/88 5.439985 1172.916381 215.610223
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/89 6.500886 1394.714421 214.542206
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/90 6.357921 1358.360166 213.648481
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/91 7.625445 1622.196454 212.734661
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/92 8.238463 1746.329558 211.972738
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/93 9.407267 1987.449867 211.267509
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/94 9.660523 2034.988219 210.649902
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/95 11.649728 2447.007715 210.048485
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/96 13.367143 2801.081618 209.549761
- -----------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/97 15.244562 3187.868304 209.115113
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/87 5.355589 1000.000000 186.720826
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/88 5.950681 1111.116070 186.720826
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/89 7.708737 1438.474931 186.603192
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/90 6.755130 1259.915414 186.512386
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/91 8.975410 1673.095058 186.408761
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/92 9.378029 1747.415367 186.330770
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/93 10.397651 1936.626212 186.256128
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/94 9.420707 1754.030176 186.188805
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/95 11.747874 2186.449700 186.114500
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/96 13.872617 2581.068578 186.054915
- -----------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/97 17.338543 3225.046258 186.004456
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/87 5.618674 1000.000000 177.977936
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/88 6.525979 1161.480271 177.977936
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/89 6.396748 1137.793866 177.870672
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/90 5.737681 1019.937298 177.761242
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/91 7.752279 1377.108958 177.639241
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/92 8.851986 1571.660775 177.548945
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/93 10.454800 1855.411962 177.469867
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/94 9.553762 1694.865197 177.402912
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/95 10.968126 1944.973859 177.329642
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/96 12.314743 2182.983027 177.265821
- -----------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/97 14.060442 2491.636564 177.208978
- -----------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/92 8.411030 1000.000000 118.891503
- -----------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/93 11.456448 1362.074324 118.891503
- -----------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/94 10.584417 1255.828853 118.648845
- -----------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/95 11.878760 1406.281195 118.386195
- -----------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/96 13.687743 1617.236451 118.152164
- -----------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/97 14.902210 1757.701695 117.949062
- -----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/87 6.723442 1000.000000 148.733342
- -----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/88 7.104860 1056.729574 148.733342
- -----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/89 7.760881 1153.777449 148.665783
- -----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/90 8.290079 1231.938354 148.603934
- -----------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/91 9.102169 1352.091103 148.546034
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return from
- ---------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 PENN FIDGRO Q 12/31/96 0.286663 230.885849 3415.003266 13.68%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDGRO Q 12/31/97 0.235424 230.650425 4154.033068 13.68%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/92 0.000000 193.842177 1000.000000 18.64%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/93 0.021403 193.820774 1086.684465 18.64%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/94 0.021388 193.799385 1087.312226 18.64%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/95 0.015742 193.783644 1477.233644 18.64%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/96 0.012954 193.770690 1795.071133 18.64%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FIDIND Q 12/31/97 0.009876 193.760814 2354.239033 18.64%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/87 0.000000 215.610223 1000.000000 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/88 1.068018 214.542206 1167.106381 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/89 0.893724 213.648481 1388.904421 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/90 0.913821 212.734661 1352.550166 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/91 0.761923 211.972738 1616.386454 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/92 0.705229 211.267509 1740.519558 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/93 0.617608 210.649902 1981.639867 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/94 0.601417 210.048485 2029.178219 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/95 0.498724 209.549761 2441.197715 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/96 0.434648 209.115113 2795.271618 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN FLEXMN Q 12/31/97 0.381120 208.733993 3182.058304 13.30%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/87 0.000000 186.720826 1000.000000 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/88 0.117634 186.603192 1110.416070 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/89 0.090806 186.512386 1437.774931 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/90 0.103625 186.408761 1259.215414 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/91 0.077991 186.330770 1672.395058 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/92 0.074643 186.256128 1746.715367 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/93 0.067323 186.188805 1935.926212 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/94 0.074304 186.114500 1753.330176 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/95 0.059585 186.054915 2185.749700 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/96 0.050459 186.004456 2580.368578 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN GROWEQ Q 12/31/97 0.040372 185.964084 3224.346258 11.17%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/87 0.000000 177.977936 1000.000000 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/88 0.107264 177.870672 1160.780271 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/89 0.109431 177.761242 1137.093866 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/90 0.122001 177.639241 1019.237298 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/91 0.090296 177.548945 1376.408958 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/92 0.079078 177.469867 1570.960775 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/93 0.066955 177.402912 1854.711962 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/94 0.073270 177.329642 1694.165197 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/95 0.063821 177.265821 1944.273859 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/96 0.056842 177.208978 2182.283027 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN HIBOND Q 12/31/97 0.049785 177.159193 2490.936564 9.24%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/92 0.000000 118.891503 1000.000000 11.83%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/93 0.242658 118.648845 1359.294324 11.83%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/94 0.262650 118.386195 1253.048853 11.83%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/95 0.234031 118.152164 1403.501195 11.83%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/96 0.203101 117.949062 1614.456451 11.83%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN INTLEQ Q 12/31/97 0.186550 117.762513 1754.921695 11.83%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/87 0.000000 148.733342 1000.000000 6.65%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/88 0.067559 148.665783 1056.249574 6.65%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/89 0.061849 148.603934 1153.297449 6.65%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/90 0.057901 148.546034 1231.458354 6.65%
- ---------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/91 0.052735 148.493299 1351.611103 6.65%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 5
<PAGE>
Table 2 - Pennant Pennant - inception - Tbl 2
<TABLE>
<CAPTION>
Beginning # of units
- ------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 PENN LIMMAT Q 12/31/92 9.439952 1401.769615 148.493299
- ------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/93 9.925608 1473.381582 148.442451
- ------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/94 9.772495 1450.180517 148.394092
- ------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/95 10.691231 1585.990385 148.344974
- ------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/96 10.995296 1630.603248 148.300077
- ------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/97 11.573431 1715.835475 148.256422
- ------------------------------------------------------------------------------------------------------------
2 Penn PARTNR Q 12/31/94 5.515868 1000.000000 181.295129
- ------------------------------------------------------------------------------------------------------------
2 Penn PARTNR Q 12/31/95 7.455196 1351.590720 181.295129
- ------------------------------------------------------------------------------------------------------------
2 Penn PARTNR Q 12/31/96 9.566140 1734.140606 181.279033
- ------------------------------------------------------------------------------------------------------------
2 PENN PARTNR Q 12/31/97 12.398705 2247.469717 181.266488
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/87 6.121631 1000.000000 163.355158
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/88 6.490498 1060.256327 163.355158
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/89 7.226374 1179.507963 163.222657
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/90 7.692775 1254.719667 163.103648
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/91 8.770907 1429.586402 162.991855
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/92 9.216454 1501.303248 162.893804
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/93 10.148405 1652.165329 162.800492
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/94 9.477839 1542.193680 162.715750
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/95 11.229457 1826.190578 162.625012
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/96 11.530715 1874.299592 162.548428
- ------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/97 12.283530 1995.752339 162.473844
- ------------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/95 11.145667 1000.000000 89.720965
- ------------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/96 13.160579 1180.779849 89.720965
- ------------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/97 15.965675 1430.102271 89.573555
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/87 4.724564 1000.000000 211.659743
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/88 6.039898 1278.403256 211.659743
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/89 6.728437 1419.794649 211.014036
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/90 6.100284 1283.709645 210.434407
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/91 7.680989 1611.433797 209.795092
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/92 8.699744 1820.746326 209.287345
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/93 9.186022 1918.400165 208.839056
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/94 9.323905 1943.236981 208.414498
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/95 12.641006 2629.281445 207.996218
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/96 15.603540 3240.663314 207.687699
- ------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/97 19.229622 3988.949625 207.437755
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return from
- ------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 PENN LIMMAT Q 12/31/92 0.050848 148.442451 1401.289615 6.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/93 0.048360 148.394092 1472.901582 6.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/94 0.049117 148.344974 1449.700517 6.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/95 0.044897 148.300077 1585.510385 6.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/96 0.043655 148.256422 1630.123248 6.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN LIMMAT Q 12/31/97 0.041474 148.214948 1715.355475 6.65%
- ------------------------------------------------------------------------------------------------------------------------------
2 Penn PARTNR Q 12/31/94 0.000000 181.295129 1000.000000 22.88%
- ------------------------------------------------------------------------------------------------------------------------------
2 Penn PARTNR Q 12/31/95 0.016096 181.279033 1351.470720 22.88%
- ------------------------------------------------------------------------------------------------------------------------------
2 Penn PARTNR Q 12/31/96 0.012544 181.266488 1734.020606 22.88%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN PARTNR Q 12/31/97 0.009678 181.256810 2247.349717 22.88%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/87 0.000000 163.355158 1000.000000 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/88 0.132501 163.222657 1059.396327 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/89 0.119009 163.103648 1178.647963 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/90 0.111793 162.991855 1253.859667 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/91 0.098051 162.893804 1428.726402 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/92 0.093311 162.800492 1500.443248 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/93 0.084742 162.715750 1651.305329 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/94 0.090738 162.625012 1541.333680 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/95 0.076584 162.548428 1825.330578 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/96 0.074583 162.473844 1873.439592 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN QUALBD Q 12/31/97 0.070012 162.403832 1994.892339 6.54%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/95 0.000000 89.720965 1000.000000 17.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/96 0.147410 89.573555 1178.839849 17.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN SMLCAP Q 12/31/97 0.121511 89.452045 1428.162271 17.74%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/87 0.000000 211.659743 1000.000000 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/88 0.645706 211.014036 1274.503256 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/89 0.579629 210.434407 1415.894649 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/90 0.639314 209.795092 1279.809645 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/91 0.507747 209.287345 1607.533797 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/92 0.448289 208.839056 1816.846326 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/93 0.424558 208.414498 1914.500165 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/94 0.418280 207.996218 1939.336981 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/95 0.308520 207.687699 2625.381445 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/96 0.249943 207.437755 3236.763314 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
2 PENN VALUEQ Q 12/31/97 0.202812 207.234943 3985.049625 12.61%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 6
<PAGE>
Table 3 - Pennant Pennant - inception - Tbl 3
<TABLE>
<CAPTION>
Beginning # of units
- --------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $100
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 PENN BALFND Q 12/31/89 7.365810 10000.000000 1357.623941
- --------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/90 7.405018 10053.229719 1357.623941
- --------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/91 8.958110 12160.716326 1357.509154
- --------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/92 9.544854 12956.321003 1357.414268
- --------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/93 9.981206 13547.742575 1357.325215
- --------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/94 9.548559 12959.686738 1357.240054
- --------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/95 11.653880 15816.075313 1357.151036
- --------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/96 12.281752 16667.296653 1357.078099
- --------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/97 14.467110 19631.996888 1357.008890
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/87 5.768019 10000.000000 1733.697479
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/88 5.577805 9670.226468 1733.697479
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/89 7.084750 12280.768245 1733.408835
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/90 6.896673 11953.186652 1733.181586
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/91 9.648771 16720.819763 1732.948141
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/92 9.386697 16265.092842 1732.781280
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/93 10.185124 17646.845256 1732.609761
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/94 9.926047 17196.396870 1732.451687
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/95 12.818022 22204.524760 1732.289487
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/96 12.092262 20945.779500 1732.163883
- --------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/97 11.535663 19980.122923 1732.030740
- --------------------------------------------------------------------------------------
3 PENN EMGGRO Q 12/31/97 13.792539 10000.000000 725.029670
- --------------------------------------------------------------------------------------
3 PENN EMGMKT Q 12/31/96 9.064076 10000.000000 1103.256416
- --------------------------------------------------------------------------------------
3 PENN EMGMKT Q 12/31/97 8.965575 9891.328140 1103.256416
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/89 6.415215 10000.000000 1558.794210
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/90 6.751165 10523.676915 1558.794210
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/91 8.159166 12717.542219 1558.681637
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/92 8.987776 14008.244228 1558.588490
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/93 10.744669 16745.608875 1558.503931
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/94 9.949957 15506.343311 1558.433198
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/95 11.476196 17884.008260 1558.356816
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/96 12.967956 20207.843833 1558.290592
- --------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/97 15.428479 24041.149474 1558.231986
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/87 4.423567 10000.000000 2260.619089
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/88 5.352534 12100.040533 2260.619089
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/89 6.193601 13997.033394 2259.918486
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/90 5.173663 11688.924189 2259.313022
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/91 6.705724 15145.469081 2258.588197
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/92 7.728908 17452.098198 2258.028974
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/93 9.015770 20353.495505 2257.543782
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/94 9.518617 21484.735470 2257.127844
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/95 12.600495 28435.963965 2256.733880
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/96 14.198506 32038.023949 2256.436272
- --------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/97 17.936633 40468.132016 2256.172160
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/87 4.242140 10000.000000 2357.300796
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/88 4.834827 11397.141537 2357.300796
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/89 6.270101 14775.015387 2356.423826
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/90 5.457380 12856.209842 2355.747601
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/91 7.830958 18441.676417 2354.970671
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/92 8.441505 19874.926121 2354.429230
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/93 9.936599 23390.028181 2353.926950
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/94 9.796554 23056.192239 2353.500245
- --------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/95 13.077900 30773.180670 2353.067440
- --------------------------------------------------------------------------------------
<CAPTION>
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return from
- ----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- ----------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
3 PENN BALFND Q 12/31/89 0.000000 1357.623941 10000.000000 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/90 0.114787 1357.509154 10052.379719 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/91 0.094886 1357.414268 12159.866326 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/92 0.089053 1357.325215 12955.471003 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/93 0.085160 1357.240054 13546.892575 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/94 0.089019 1357.151036 12958.836738 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/95 0.072937 1357.078099 15815.225313 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/96 0.069208 1357.008890 16666.446653 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN BALFND Q 12/31/97 0.058754 1356.950136 19631.146888 9.65%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/87 0.000000 1733.697479 10000.000000 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/88 0.288644 1733.408835 9668.616468 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/89 0.227249 1733.181586 12279.158245 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/90 0.233446 1732.948141 11951.576652 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/91 0.166861 1732.781280 16719.209763 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/92 0.171519 1732.609761 16263.482842 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/93 0.158074 1732.451687 17645.235256 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/94 0.162200 1732.289487 17194.786870 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/95 0.125604 1732.163883 22202.914760 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/96 0.133143 1732.030740 20944.169500 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN CAPAPP Q 12/31/97 0.139567 1731.891173 19978.512923 7.76%
- ----------------------------------------------------------------------------------------------------
3 PENN EMGGRO Q 12/31/97 0.000000 725.029670 10000.000000 61.77%
- ----------------------------------------------------------------------------------------------------
3 PENN EMGMKT Q 12/31/96 0.000000 1103.256416 10000.000000 -2.76%
- ----------------------------------------------------------------------------------------------------
3 PENN EMGMKT Q 12/31/97 0.007808 1103.248608 9891.258140 -2.76%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/89 0.000000 1558.794210 10000.000000 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/90 0.112573 1558.681637 10522.916915 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/91 0.093147 1558.588490 12716.782219 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/92 0.084559 1558.503931 14007.484228 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/93 0.070733 1558.433198 16744.848875 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/94 0.076382 1558.356816 15505.583311 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/95 0.066224 1558.290592 17883.248260 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/96 0.058606 1558.231986 20207.083833 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDASM Q 12/31/97 0.049260 1558.182727 24040.389474 11.16%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/87 0.000000 2260.619089 10000.000000 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/88 0.700603 2259.918486 12096.290533 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/89 0.605464 2259.313022 13993.283394 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/90 0.724825 2258.588197 11685.174189 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/91 0.559224 2258.028974 15141.719081 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/92 0.485191 2257.543782 17448.348198 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/93 0.415938 2257.127844 20349.745505 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/94 0.393965 2256.733880 21480.985470 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/95 0.297607 2256.436272 28432.213965 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/96 0.264112 2256.172160 32034.273949 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDEQI Q 12/31/97 0.209069 2255.963091 40464.382016 12.98%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/87 0.000000 2357.300796 10000.000000 13.93%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/88 0.876970 2356.423826 11392.901537 13.93%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/89 0.676225 2355.747601 14770.775387 13.93%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/90 0.776930 2354.970671 12851.969842 13.93%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/91 0.541441 2354.429230 18437.436417 13.93%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/92 0.502280 2353.926950 19870.686121 13.93%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/93 0.426705 2353.500245 23385.788181 13.93%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/94 0.432805 2353.067440 23051.952239 13.93%
- ----------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/95 0.324211 2352.743229 30768.940670 13.93%
- ----------------------------------------------------------------------------------------------------
</TABLE>
Page 7
<PAGE>
Table 3 - Pennant Pennant - inception - Tbl 3
<TABLE>
<CAPTION>
Beginning # of units
- ---------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $100
- ---------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C>
3 PENN FIDGRO Q 12/31/96 14.790873 34799.126296 2352.743229
- ---------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/97 18.010082 42367.935644 2352.456565
- ---------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/92 5.158836 10000.000000 1938.421768
- ---------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/93 5.606646 10868.044652 1938.421768
- ---------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/94 5.610504 10875.403001 1938.400365
- ---------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/95 7.623108 14776.472282 1938.378976
- ---------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/96 9.263894 17956.791540 1938.363235
- ---------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/97 12.150233 23551.407553 1938.350281
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/87 4.637999 10000.000000 2156.102233
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/88 5.439985 11729.163805 2156.102233
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/89 6.500886 14009.631759 2155.034215
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/90 6.357921 13695.855064 2154.140491
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/91 7.625445 16419.311546 2153.226670
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/92 8.238463 17733.001180 2152.464747
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/93 9.407267 20242.176313 2151.759519
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/94 9.660523 20781.155909 2151.141911
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/95 11.649728 25053.211813 2150.540494
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/96 13.367143 28739.915800 2150.041770
- ---------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/97 15.244562 32769.819054 2149.607122
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/87 5.355589 10000.000000 1867.208257
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/88 5.950681 11111.160696 1867.208257
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/89 7.708737 14392.910568 1867.090623
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/90 6.755130 12611.826474 1866.999817
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/91 8.975410 16756.158751 1866.896192
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/92 9.378029 17507.075228 1866.818201
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/93 10.397651 19409.748029 1866.743559
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/94 9.420707 17585.409881 1866.676236
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/95 11.747874 21928.604297 1866.601931
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/96 13.872617 25893.827081 1866.542346
- ---------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/97 17.338543 32362.249841 1866.491887
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/87 5.618674 10000.000000 1779.779357
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/88 6.525979 11614.802710 1779.779357
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/89 6.396748 11384.113905 1779.672094
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/90 5.737681 10210.562880 1779.562663
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/91 7.752279 13794.720479 1779.440662
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/92 8.851986 15750.784533 1779.350366
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/93 10.454800 18601.925463 1779.271288
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/94 9.553762 16998.094749 1779.204333
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/95 10.968126 19513.733677 1779.131064
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/96 12.314743 21908.755870 1779.067242
- ---------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/97 14.060442 25013.672546 1779.010400
- ---------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/92 8.411030 10000.000000 1188.915032
- ---------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/93 11.456448 13620.743238 1188.915032
- ---------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/94 10.584417 12581.404080 1188.672374
- ---------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/95 11.878760 14116.833886 1188.409723
- ---------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/96 13.687743 16263.443515 1188.175692
- ---------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/97 14.902210 17703.417023 1187.972591
- ---------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/87 6.723442 10000.000000 1487.333422
- ---------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/88 7.104860 10567.295739 1487.333422
- ---------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/89 7.760881 11542.493378 1487.265863
- ---------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/90 8.290079 12329.038768 1487.204014
- ---------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/91 9.102169 13536.255256 1487.146114
- ---------------------------------------------------------------------------------------
<CAPTION>
Average
$30 # of units Annual Total
fee & deferred at end of Ending return from
- --------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- --------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
3 PENN FIDGRO Q 12/31/96 0.286663 2352.456565 34794.886296 13.93%
- --------------------------------------------------------------------------------------------------------
3 PENN FIDGRO Q 12/31/97 0.235424 2352.221142 42363.695644 13.93%
- --------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/92 0.000000 1938.421768 10000.000000 18.65%
- --------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/93 0.021403 1938.400365 10867.924652 18.65%
- --------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/94 0.021388 1938.378976 10875.283001 18.65%
- --------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/95 0.015742 1938.363235 14776.352282 18.65%
- --------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/96 0.012954 1938.350281 17956.671540 18.65%
- --------------------------------------------------------------------------------------------------------
3 PENN FIDIND Q 12/31/97 0.009876 1938.340405 23551.287553 18.65%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/87 0.000000 2156.102233 10000.000000 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/88 1.068018 2155.034215 11723.353805 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/89 0.893724 2154.140491 14003.821759 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/90 0.913821 2153.226670 13690.045064 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/91 0.761923 2152.464747 16413.501546 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/92 0.705229 2151.759519 17727.191180 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/93 0.617608 2151.141911 20236.366313 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/94 0.601417 2150.540494 20775.345909 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/95 0.498724 2150.041770 25047.401813 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/96 0.434648 2149.607122 28734.105800 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN FLEXMN Q 12/31/97 0.381120 2149.226003 32764.009054 13.56%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/87 0.000000 1867.208257 10000.000000 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/88 0.117634 1867.090623 11110.460696 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/89 0.090806 1866.999817 14392.210568 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/90 0.103625 1866.896192 12611.126474 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/91 0.077991 1866.818201 16755.458751 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/92 0.074643 1866.743559 17506.375228 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/93 0.067323 1866.676236 19409.048029 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/94 0.074304 1866.601931 17584.709881 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/95 0.059585 1866.542346 21927.904297 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/96 0.050459 1866.491887 25893.127081 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN GROWEQ Q 12/31/97 0.040372 1866.451514 32361.549841 11.20%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/87 0.000000 1779.779357 10000.000000 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/88 0.107264 1779.672094 11614.102710 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/89 0.109431 1779.562663 11383.413905 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/90 0.122001 1779.440662 10209.862880 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/91 0.090296 1779.350366 13794.020479 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/92 0.079078 1779.271288 15750.084533 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/93 0.066955 1779.204333 18601.225463 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/94 0.073270 1779.131064 16997.394749 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/95 0.063821 1779.067242 19513.033677 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/96 0.056842 1779.010400 21908.055870 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN HIBOND Q 12/31/97 0.049785 1778.960615 25012.972546 9.28%
- --------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/92 0.000000 1188.915032 10000.000000 12.05%
- --------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/93 0.242658 1188.672374 13617.963238 12.05%
- --------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/94 0.262650 1188.409723 12578.624080 12.05%
- --------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/95 0.234031 1188.175692 14114.053886 12.05%
- --------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/96 0.203101 1187.972591 16260.663515 12.05%
- --------------------------------------------------------------------------------------------------------
3 PENN INTLEQ Q 12/31/97 0.186550 1187.786041 17700.637023 12.05%
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/87 0.000000 1487.333422 10000.000000 6.68%
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/88 0.067559 1487.265863 10566.815739 6.68%
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/89 0.061849 1487.204014 11542.013378 6.68%
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/90 0.057901 1487.146114 12328.558768 6.68%
- --------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/91 0.052735 1487.093379 13535.775256 6.68%
- --------------------------------------------------------------------------------------------------------
</TABLE>
Page 8
<PAGE>
Table 3 - Pennant
<TABLE>
<CAPTION>
Beginning # of units
- -----------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $100
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 PENN LIMMAT Q 12/31/92 9.439952 14038.090118 1487.093379
- -----------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/93 9.925608 14759.801246 1487.042531
- -----------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/94 9.772495 14531.643107 1486.994172
- -----------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/95 10.691231 15897.273059 1486.945054
- -----------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/96 10.995296 16348.907355 1486.900158
- -----------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/97 11.573431 17208.031139 1486.856503
- -----------------------------------------------------------------------------------------
3 Penn PARTNR Q 12/31/94 5.515868 10000.000000 1812.951289
- -----------------------------------------------------------------------------------------
3 Penn PARTNR Q 12/31/95 7.455196 13515.907197 1812.951289
- -----------------------------------------------------------------------------------------
3 Penn PARTNR Q 12/31/96 9.566140 17342.791865 1812.935193
- -----------------------------------------------------------------------------------------
3 PENN PARTNR Q 12/31/97 12.398705 22477.893107 1812.922648
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/87 6.121631 10000.000000 1633.551581
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/88 6.490498 10602.563271 1633.551581
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/89 7.226374 11803.697170 1633.419080
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/90 7.692775 12564.609957 1633.300071
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/91 8.770907 14324.542501 1633.188278
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/92 9.216454 15051.300953 1633.090227
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/93 10.148405 16572.314061 1632.996915
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/94 9.477839 15476.478677 1632.912173
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/95 11.229457 18335.698093 1632.821435
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/96 11.530715 18826.715541 1632.744851
- -----------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/97 12.283530 20054.954208 1632.670267
- -----------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/95 11.145667 10000.000000 897.209651
- -----------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/96 13.160579 11807.798492 897.209651
- -----------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/97 15.965675 14322.204197 897.062241
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/87 4.724564 10000.000000 2116.597426
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/88 6.039898 12784.032558 2116.597426
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/89 6.728437 14237.047839 2115.951719
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/90 6.100284 12904.370515 2115.372090
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/91 7.680989 16243.239187 2114.732776
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/92 8.699744 18393.216506 2114.225028
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/93 9.186022 19417.199631 2113.776739
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/94 9.323905 19704.694970 2113.352181
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/95 12.641006 26709.610128 2112.933902
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/96 15.603540 32964.434651 2112.625382
- -----------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/97 19.229622 40620.181206 2112.375439
- -----------------------------------------------------------------------------------------
<CAPTION>
Table 3 - Pennant
Average
$30 contract # of units Annual Total
fee & deferred at end of Ending return from
- -------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value inception
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 PENN LIMMAT Q 12/31/92 0.050848 1487.042531 14037.610118 6.68%
- -------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/93 0.048360 1486.994172 14759.321246 6.68%
- -------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/94 0.049117 1486.945054 14531.163107 6.68%
- -------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/95 0.044897 1486.900158 15896.793059 6.68%
- -------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/96 0.043655 1486.856503 16348.427355 6.68%
- -------------------------------------------------------------------------------------------------------------
3 PENN LIMMAT Q 12/31/97 0.041474 1486.815028 17207.551139 6.68%
- -------------------------------------------------------------------------------------------------------------
3 Penn PARTNR Q 12/31/94 0.000000 1812.951289 10000.000000 22.88%
- -------------------------------------------------------------------------------------------------------------
3 Penn PARTNR Q 12/31/95 0.016096 1812.935193 13515.787197 22.88%
- -------------------------------------------------------------------------------------------------------------
3 Penn PARTNR Q 12/31/96 0.012544 1812.922648 17342.671865 22.88%
- -------------------------------------------------------------------------------------------------------------
3 PENN PARTNR Q 12/31/97 0.009678 1812.912970 22477.773107 22.88%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/87 0.000000 1633.551581 10000.000000 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/88 0.132501 1633.419080 10601.703271 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/89 0.119009 1633.300071 11802.837170 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/90 0.111793 1633.188278 12563.749957 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/91 0.098051 1633.090227 14323.682501 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/92 0.093311 1632.996915 15050.440953 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/93 0.084742 1632.912173 16571.454061 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/94 0.090738 1632.821435 15475.618677 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/95 0.076584 1632.744851 18334.838093 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/96 0.074583 1632.670267 18825.855541 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN QUALBD Q 12/31/97 0.070012 1632.600255 20054.094208 6.60%
- -------------------------------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/95 0.000000 897.209651 10000.000000 17.90%
- -------------------------------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/96 0.147410 897.062241 11805.858492 17.90%
- -------------------------------------------------------------------------------------------------------------
3 PENN SMLCAP Q 12/31/97 0.121511 896.940730 14320.264197 17.90%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/87 0.000000 2116.597426 10000.000000 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/88 0.645706 2115.951719 12780.132558 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/89 0.579629 2115.372090 14233.147839 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/90 0.639314 2114.732776 12900.470515 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/91 0.507747 2114.225028 16239.339187 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/92 0.448289 2113.776739 18389.316506 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/93 0.424558 2113.352181 19413.299631 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/94 0.418280 2112.933902 19700.794970 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/95 0.308520 2112.625382 26705.710128 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/96 0.249943 2112.375439 32960.534651 12.85%
- -------------------------------------------------------------------------------------------------------------
3 PENN VALUEQ Q 12/31/97 0.202812 2112.172626 40616.281206 12.85%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit 14(b)
The Penn Insurance and Annuity Company
Power of Attorney
-----------------
Larry L. Mast, whose signature appears below, does hereby constitute and
appoint Robert E. Chappell and Daniel J. Toran, and each of them severally, his
true and lawful attorneys and agents, with power of substitution and
resubstitution, to do any and all acts and things and to execute any and all
instruments which said attorneys and agents, and each of them, may deem
necessary or advisable or which may be required to enable The Penn Insurance and
Annuity Company (the "Company") to comply with the Investment Company Act of
1940 and the Securities Act of 1933, as amended, and any rules, regulations or
requirements of the Securities and Exchange Commission in respect thereof, in
connection with the filing and effectiveness of the Company's Registration
Statement on Form N-4 (SEC Registration No. 33-83120) pursuant to such Acts,
including specifically, but without limiting the generality of the foregoing,
the power and authority to sign in the name and on behalf of the undersigned as
a director and/or officer of the Company such Registration Statement and any and
all amendments and supplements to such Registration Statement filed with the
Securities and Exchange Commission under said Acts, and any other instruments or
documents related thereto, and the undersigned does hereby ratify and confirm
all that said attorneys and agents, and each of them, shall do or cause to be
done by virtue hereof.
Date: April 17, 1998 /s/ LARRY L. MAST
-----------------
Larry L. Mast
