LPT VARIABLE INSURANCE SERIES TRUST
REGENCY SERIES
FLEXIBLE CONTRIBUTION DEFERRED VARIABLE ANNUITY
SEMI-ANNUAL REPORT
For the Five Months Ended June 30, 1996
This Semi-Annual Report is prepared and provided by
LONDON PACIFIC LIFE & ANNUITY COMPANY
CONTENTS
Message from the President.................................................... 2
Individual Portfolio Review................................................. 3-9
Statements of Assets & Liabilities........................................... 10
Statements of Operations..................................................... 11
Statements of Changes in Net Assets.......................................... 12
Financial Highlights......................................................... 13
Schedules of Investments...................................................14-44
Notes to Financial Statements..............................................45-53
MESSAGE FROM THE PRESIDENT
Dear Contract Owner:
We are pleased to provide you with the LPT Variable Insurance Series Trust
Semi-Annual Report for the five-month period ending June 30, 1996. Thank you for
investing with us!
As you have seen, the financial markets have received appreciable gains all
through the first half of the year. As of this writing, the financial markets,
while showing some near term volatility, have bounced back again to previous
highs. While this confirms that there is an omnipresent market volatility, there
is still credence in the statement to buy today and hold for the long term.
Regardless, you have wisely chosen the Regency Variable Annuity that not only
focuses on returns, but does in fact invest for the long term.
The first half performance of the LPT Portfolios has been quite good since the
February 9, 1996 effective date. Future returns will be dependent on several
factors such as interest rate trends and corporate profitability. Opportunities
will always exist to buy low and sell high. The LPT Portfolios allow you the
flexibility to take advantage of these opportunities, whether you are adding to
or repositioning your assets.
As we look at the first half results, several of the Portfolios performed very
well. All Portfolios were either very close to or dramatically beat their
comparative indexes. MAS Value was up 3.39% for the period as opposed to the
Lipper Growth & Income Index* which was up 3.28%. Even though the last five
months were not value driven, the MAS Value Portfolio held its own versus the
index. MFS Total Return was up 1.80% versus the Lipper Balanced Portfolio
Index*, which was up 1.17%. Bond prices held down the return of this portfolio
as a third of its assets were invested in bonds. Solomon U.S. Quality Bond was
down 2.07% versus the Lipper Government Intermediate Index*, which was down
1.79%. One might expect this considering the recent increase in interest rates
which depressed bond prices. Lexington Corporate Leaders was up 2.95% versus
3.28% for the Lipper Growth & Income Index*. Salomon Money Market averaged out
at a 4.32% annualized rate - strong results for a variable annuity money market
account.
Three Portfolios performed much better than their comparative indexes. Strong
International Stock was up 11.95% versus the Morgan Stanley EAFE Index* of
3.32%. Strong Growth and Berkeley Smaller Companies were up 15.22% and 21.24%,
respectively, versus the Russell 2000 Small Company Index* return of 8.59%.
As we look toward the end of 1996, with the current volatility in the market, it
is a good idea for you to talk with your Financial Advisor. He or she is in the
best position to help you understand your investments and to answer any
questions that you might have. More importantly, your Financial Advisor can help
ensure that you are properly diversified to benefit from the current market
environment and to achieve those long term goals.
Thank you for selecting the Regency Variable Annuity with investments in the LPT
Variable Insurance Series Trust. We appreciate the confidence that you have
placed in us, and look forward to serving your investment needs for the future.
Mark E. Prillaman
President
* Past performance of unmanaged indexes or of the LPT Variable Insurance Series
Trust Portfolios is no indication of their future results.
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MAS VALUE PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT SUB-ADVISOR:
Miller, Anderson & Sherrerd, LLP
ABOUT THE PORTFOLIO:
Invests in companies with equity capitalizations usually greater than $400
million that are believed to be undervalued based on price/earnings and
price/book ratios.
PERFORMANCE:
Net total return for the period February 9, 1996 to June 30, 1996:
MAS Value Portfolio 3.39% *
S & P 500 Stock Index 3.09%
Lipper Growth &
Income Index 3.28%
* During the period noted, the Investment Advisor (LPIMC Insurance Marketing
Services) waived a portion of its management fee and London Pacific Life and
Annuity Company voluntarily agreed to reimburse certain operating expenses of
the Portfolio. In the absence of the waiver and expense reimbursement, total
return would have been lower.
The Portfolio produced a total return of 3.39% for the period February 9, 1996
to June 30, 1996, as compared to the 3.09% return for the S & P 500 Stock
Index. Stock selection was the most significant negative contributor to the
relative performance shortfall, particularly in heavy industry/transportation,
technology, health care and energy sectors. Adverse sector selection also
contributed to the period's results as overweighting occurred in basic materials
and financial services; whereas, the Portfolio had no exposure to the best
performing sector-beverages and personal care products because of valuation
considerations.
Despite an apparent acceleration in the economy during the second quarter, there
was a strong retention in the stock market toward defensive stocks and away from
economically and interest-sensitive issues. Because of the Portfolio's emphasis
on price/earnings ratios, the Portfolio is heavily concentrated in cyclicals and
financial services. The consumer and industrial/cyclical sectors of the market
have underperformed since the beginning of 1994, despite interim changes in the
economic and/or interest rate backdrop, which could have caused these sectors to
behave more positively. The prevailing sentiment on Wall Street appears to
reflect an adversion to cyclicals at any valuation or under any economic
circumstance. Such a sentiment is not likely to be sustained indefinitely. The
Portfolio will continue to adhere to its investment philosophy and stay
committed to the low price/earnings sectors of the market until the investor
recognizes the value represented here.
Looking ahead, it seems unlikely that any defensive/growth sectors will cheapen
up enough for inclusion in the Portfolio in the near term. To the extent the
Portfolio can increase its exposure to the consumer non-cyclical, health care,
and energy sectors, it will. The Portfolio will continue to add soft cyclicals
or higher value added economically sensitive companies until the Portfolio
reaches its self-imposed sector restrictions. Assuming that profits hold up for
technology companies, this sector will capture a larger share of the Portfolio.
In summary, MAS expects the economically and interest-sensitive sectors to
dominate the Portfolio for the near term. MAS' discipline will keep the
Portfolio concentrated in this fashion until the prices of these stocks rise
enough or the earnings decline enough to trigger a sell discipline.
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MFS TOTAL RETURN PORTFOLIO
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INVESTMENT SUB-ADVISOR:
Massachusetts Financial Services Company
ABOUT THE PORTFOLIO:
Invests in securities which are expected to provide above-average income and
opportunities for growth of capital and income, consistent with the prudent
employment of capital.
PERFORMANCE:
Net total return for the period February 9, 1996 to June 30, 1996:
MFS Total Return Portfolio 1.80% *
Lipper Balanced Fund Index 1.17%
Lehman Brothers Aggregate
Index -5.65%
* During the period noted, the Investment Advisor (LPIMC Insurance Marketing
Services) waived a portion of its management fee and London Pacific Life and
Annuity Company voluntarily agreed to reimburse certain operating expenses of
the Portfolio. In the absence of the waiver and expense reimbursement, total
return would have been lower.
For the period February 9, 1996 to June 30, 1996, the Portfolio provided a total
return of 1.80%. This compares to a 1.17% return for the Lipper Balanced Fund
Index.
Over the past five months, the U.S. stock market has continued to climb
steadily, with equities benefiting from several factors, including solid
corporate profits, modest inflation, and an increasing demand for stocks as
investors have poured money into mutual funds. These positive influences
propelled the S & P 500 higher by 6.47% for the five month period ending June
30, 1996.
The bond market, on the other hand, has taken a difference course. Following a
very prosperous 1995, bond prices have fallen dramatically and yields have
increased. MFS believes the factors responsible for this decline include a
stronger-than-expected U.S. economy, significant price increases in major
commodities, and a shift in investor sentiment regarding the Federal Reserve's
inclination to raise short-term interest rates. However, MFS believes that the
worst is behind for the year. After getting more defensive with the Portfolio's
bond holdings in February by reducing duration, the Portfolio has recently begun
to lengthen the duration.
The Portfolio's mix of stocks and bonds has been fairly consistent over
the past five months. As of June 30, 1996, stocks and convertibles made up 57%
of the Portfolio, bonds accounted for 33% and cash stood at 10%. This
positioning is somewhat conservative as MFSs' enthusiasm for equities continues
to be tempered by high valuations. On the bond side, continued confusion about
the direction of the economy may produce more volatility.
Within the equity area, MFS continues to find value in sectors such as energy,
financial services, telephone utilities, and specialty chemicals. MFS believes
that fundamentals are solid and valuations are fair in these areas.
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LEXINGTON CORPORATE LEADERS PORTFOLIO
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INVESTMENT SUB-ADVISOR:
Lexington Management Corporation
ABOUT THE PORTFOLIO:
Invests in large, well-established companies believed to have long-term
potential for strong capital growth and earnings.
PERFORMANCE:
Net total return for the period February 9, 1996 to June 30, 1996:
Lexington Corporate Leaders
Portfolio 2.95% *
S & P 500 Stock Index 3.09%
Lipper Growth & Income
Index 3.28%
* During the period noted, the Investment Advisor (LPIMC Insurance Marketing
Services) waived a portion of its management fee and London Pacific Life and
Annuity Company voluntarily agreed to reimburse certain operating expenses of
the Portfolio. In the absence of the waiver and expense reimbursement, total
return would have been lower.
For the period February 9, 1996 to June 30, 1996, the Portfolio provided a total
return of 2.95% compared to a 3.09% return for the unmanaged S&P 500 Stock
Index.
Stocks continued their bull run during the first five-month period, although the
equity markets have become increasingly more volatile. In fact, most of the gain
was realized early on in the year, with the market rising only 1.4% from the
earlier peak reached in mid-February.
The market's pause likely reflects three factors. First, the one percent rise in
interest rates has created a tougher environment for stocks, in contrast to
last year's decline in rates that helped fuel the explosive stock market rally.
Second, the pace of public offerings of stock by corporations has picked up
dramatically, increasing the supply, and offsetting the strong demand for stocks
created by the continued strong flow of new money into domestic equity mutual
funds. Third, earnings growth, while still strong, has slowed considerably from
the pace of the last few years.
At current levels of long-term interest rates, stocks appear modestly
overvalued. The key to further gains will likely be the trend in corporate
earnings. With the resurgence of economic growth in the U.S. and the outlook for
improving economies around the world, earnings visibility for many U.S.
corporations has improved, with continued growth now likely into 1997.
Although a correction in stock prices is long overdue, we continue to
believe stock prices can continue to work their way higher.
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STRONG INTERNATIONAL STOCK PORTFOLIO
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INVESTMENT SUB-ADVISOR:
Strong Capital Management, Inc.
ABOUT THE PORTFOLIO:
Invests primarily in companies located outside of the United States that are
believed to have strong potential for capital growth.
PERFORMANCE:
Net total return for the period February 9, 1996 to June 30, 1996:
Strong International
Stock Portfolio 11.95% *
Morgan Stanley EAFE
Index 3.32%
Lipper International
Fund Index 5.58%
* During the period noted, the Investment Advisor (LPIMC Insurance Marketing
Services) waived a portion of its management fee and London Pacific Life and
Annuity Company voluntarily agreed to reimburse certain operating expenses of
the Portfolio. In the absence of the waiver and expense reimbursement, total
return would have been lower.
For the period February 9, 1996 to June 30, 1996, the Portfolio provided a total
return of 11.95% compared to a 3.32% return for the Morgan Stanley EAFE Index.
The slow-but-steady recovery of the industrial markets that began in 1995,
continued into 1996 as investors began to realize underevaluation of many
foreign markets compared with Wall Street and began reallocating assets toward
international funds. The general tone of the international markets was firm but
extremely muted in terms of performance, except on an individual country and
stock level. The overall markets in Asia and Europe did very little; however,
capital appreciation has been achievable mainly in selected emerging markets and
in a number of selected investment opportunities.
In Europe, the Portfolio's heaviest weighting at the end of June were in Italy
and the U.K. Italy and France contributed most on the positive side to the
Portfolio's performance, while some U.K. holdings had a negative impact. Leaders
in Europe year-to-date in U.S. dollars have been Sweden, Spain, and Ireland.
Laggards have been the U.K., Belgium, and Finland. Europe as a whole has gained
a modest 5-7% for the first five months.
In the Far East, the Portfolio's largest positions, excluding Japan, are
Australia, Hong Kong, and Indonesia. Indonesia and Malaysia added the
most to performance, Hong Kong the least. The Far East similarly has been
lackluster, rising about 8% year-to-date. Japan, in dollar terms, is still up
only around 1%, 1996, but, in yen terms, the Nikkei Dow Jones is up 50% from its
low 12 months ago. While economic growth remains impressive in Asia, averaging
around 6-7%, some concerns over inflation and overheating have depressed
sentiment generally. The best performers in the first five months were Taiwan,
Philippines, and Malaysia.
The second half of 1996 should see a more general pickup in international
markets. There are also signs of a gradual trend towards international
diversification among investors, which would enhance the appeal of foreign
exposure.
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STRONG GROWTH PORTFOLIO
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INVESTMENT SUB-ADVISOR:
Strong Capital Management, Inc.
ABOUT THE PORTFOLIO:
Invests in equity securities that are believed to have above average capital
growth potential.
PERFORMANCE:
Net total return for the period February 9, 1996 to June 30, 1996:
Strong Growth Portfolio 15.22% *
Russell 2000 Small
Company Stock Index 8.59%
S & P 500 Stock Index 3.09%
* During the period noted, the Investment Advisor (LPIMC Insurance Marketing
Services) waived a portion of its management fee and London Pacific Life and
Annuity Company voluntarily agreed to reimburse certain operating expenses of
the Portfolio. In the absence of the waiver and expense reimbursement, total
return would have been lower.
For the period February 9, 1996 to June 30, 1996, the Portfolio provided a total
return of 15.22%, compared to a 8.59% return for the Russell 2000 Small Company
Stock Index. The stock market posted solid gains during the period despite the
worrisome volatility that occurred toward the end of June. April and May were
particularly strong months for growth stocks. However, this trend reversed
somewhat in June on fears of higher interest rates and general profit taking.
The Portfolio will continue to focus on Strong's theme for the 90's, which
includes:
High unit growers - Selling more units, not just raising prices
Productivity enhancers - Technology, communications, outsourcing
Demographics - Aging population, baby boomers Changing companies -
Restructurings, new CEOs Intelligent consumerism - Quality brands, value
consciousness
Strong's emphasis on these growth themes shifted modestly in the second quarter.
In April and May, Strong gradually increased the Portfolio's weighting in
technology and consumer nondurables on signs of a stronger economy. These issues
performed very well through most of the quarter. Strong also kept the
Portfolio's exposure to interest-
sensitive issues low as rates continue to rise.
As the market became more unsettled in June, Strong reduced the Portfolio's
technology exposure and began to accumulate more defensive issues and larger
capitalization growth stocks. This was done to reduce the overall market risk of
the Portfolio.
Strong is cautiously optimistic about the stock market for the remainder of the
year. The biggest risk at this time is a renewed tightening effort by the
Federal Reserve. Positive factors influencing the market include:
Subdued core inflation
Mutual fund cashflows
Positive earnings surprises still occurring
Moderate economic growth
International interest in U.S. stocks
Negative factors for the market include: Constant group rotation Stocks have
risen for over five years High consumer debt levels Slowing corporate
earnings growth Glut of initial and secondary public offerings
- --------------------------------------------------------------------------------
SALOMON U.S. QUALITY BOND PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT SUB-ADVISOR:
Salomon Brothers Asset Management
ABOUT THE PORTFOLIO:
Invests primarily in high quality debt securities of the U.S. Government and its
agencies to obtain a high level of current income.
PERFORMANCE:
Net total return for the period February 9, 1996 to June 30, 1996:
Salomon U.S. Quality
Bond Portfolio: -2.07% *
Lipper Government
Intermediate Index.: -1.79%
* During the period noted, the Investment Advisor (LPIMC Insurance Marketing
Services) waived a portion of its management fee and London Pacific Life and
Annuity Company voluntarily agreed to reimburse certain operating expenses of
the Portfolio. In the absence of the waiver and expense reimbursement, total
return would have been lower.
For the period February 9, 1996 to June 30, 1996, the Portfolio provided a total
return of -2.07%. By comparison, the Lipper Government Intermediate Index
returned -1.79% for the same period.
The bond market rally of 1995 ran into trouble in early 1996 as signs of U.S.
economic strength emerged. Fueled by gains in consumption, housing, business,
investment, and net exports, the faster pace of growth pushed interest rates
higher. Salomon continues to believe, however, that this stepped-up rebound will
prove self-limiting. GDP growth will likely peak and then slow toward trend
levels in the second half of the year.
The Portfolio reported negative returns in the first half of this year due to a
sharp rise in interest rates. Investment duration varied between 4.3 and 4.7
years over the period while the average life was generally centered around seven
(7) years. Portfolio holdings in the first half were generally in U.S.
Treasuries and U.S. Agency mortgage securities. The relative weighing of
mortgage securities increase throughout the first half of the year. Mortgages
continue to look attractive as higher interest rates have reduced the incentive
for homeowners to refinance their mortgages.
Barring a significant rally, mortgages will continue to perform well in the
coming months and will be favored over treasuries in the Portfolio.
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BERKELEY SMALLER COMPANIES PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT SUB-ADVISOR:
Berkeley Capital Management
ABOUT THE PORTFOLIO:
Invests in securities of companies that typically have market capitalizations of
less than $1.0 billion that are expected to provide long-term capital
appreciation.
PERFORMANCE:
Net total return for the period February 9, 1996 to June 30, 1996:
Berkeley Smaller
Companies Portfolio 21.24%*
Russell 2000 Small
Company Stock Index 8.59%
S & P 500 Stock Index 3.69%
* During the period noted, the Investment Advisor (LPIMC Insurance Marketing
Services) waived a portion of its management fee and London Pacific Life and
Annuity Company voluntarily agreed to reimburse certain operating expenses of
the Portfolio. In the absence of the waiver and expense reimbursement, total
return would have been lower.
The Portfolio produced a total return of 21.24% for the period February 9, 1996
to June 30, 1996, as compared to the 8.59% return for the Russell 2000 Small
Company Stock Index. Supported by a reasonably benign interest rate environment
and an accelerating economy, the U.S. equity market continued to move ahead
during the first half of 1996.
The best performing sectors in the equity markets in the first half were
retail/consumer and energy. Retail and consumer-related issues were driven by a
rebound in consumer spending, and the energy sector's performance was driven by
a tight supply of drilling rigs and strong drilling activity. The technology
sector was also one of the better performing sectors, as demand for software,
networking equipment, and related products continued unabated at the strong 1995
pace.
Consistent with the Portfolio's strategy, Berkeley endeavored to invest in those
companies with the greatest potential to grow earnings and exceed expectations
for the next year. Consequently, the Portfolio is currently overweighted in the
technology, business services, and healthcare areas. Overweighting of healthcare
and technology sectors has been de rigueur in small company growth funds as the
majority of new fast-growth businesses has been spawned by advances in these
areas in the last 10 years. Recent market weakness gave Berkeley an opportunity
to establish initial positions in the business services sector, an area that
promises to add to the foundation of growth stock investing over the next
decade. While some well-known business services companies have been extremely
successful in past years, this area is now truly blossoming due to the rapid
decentralization, downsizing, and reengineering of businesses worldwide.
The Portfolio also increased the healthcare holdings in the first half and
refocused its emphasis in this sector, shifting away from acute care and home
healthcare providers to physician management companies and healthcare
information systems companies.
With the Fed expected to tighten for the first time since early 1995, the
outlook for the second half is uncertain. It is Berkeley's view that the strong
4% GDP growth expected to be reported for the second quarter will likely result
in a Fed tightening of less than 75 basis points and a subsequent period of
economic softness. While this scenario is suboptimal for stocks in general, it
may actually turn out to favor small cap issues. A small increase in interest
rates, unlikely to radically shift assets from stocks into bonds, and a weak but
expanding economy are relative positives for small growth stocks. These
conditions should persuade investors to seek steady growth companies, such as
those in which the portfolio concentrates.
Thus, Berkeley's outlook is cautious for the remainder of 1996 but optimistic
for 1997. The second half is apt to be volatile considering the age of the bull
market and investor's need to digest the latest changes in the economy. However,
this should create a good backdrop for strong growth performance in the small
cap arena in 1997.
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
MAS Value MFS Total Salomon U. S. Salomon Strong Strong
Portfolio Return Quality Bond Money International Growth
Portfolio Portfolio Market Stock Portfolio
Portfolio Portfolio
--------- --------- ------------ --------- ------------- ---------
ASSETS
Investments at value, $ 947,075 $ 937,288 $ 1,265,318 $1,335,143 $ 888,545 $1,248,763
See accompanying schedules
Repurchase agreements at cost 129,000 104,000 0 0 291,000 0
and value
Cash and/or foreign currency 662 989 10,838 2,207 5,395 44,724
Dividends and/or interest 1,543 9,524 15,026 0 3,960 13,631
receivable
Receivable for investments 18,455 9,007 0 0 0 328,594
securities sold
Receivable for Trust shares sold 23,992 47,985 145,056 0 23,992 0
Expense reimbursements receivable 22,756 21,348 25,251 25,773 27,919 24,067
Other assets 2,123 2,149 2,116 2,116 2,220 2,119
---------- ----------- --------------- ----------- -------------- ----------
TOTAL ASSETS 1,145,606 1,132,290 1,463,605 1,365,239 1,243,031 1,661,898
Investments at cost 917,733 909,568 1,274,565 1,335,143 785,646 1,122,684
Cash and/or foreign currency 662 990 10,838 2,207 5,391 44,724
at cost
LIABILITIES
Payable for investment 8,540 0 100,641 0 0 308,189
securities purchased
Payable for Trust shares redeemed 0 0 0 255,844 0 0
Custodian fees payable 11,456 11,023 13,678 13,973 16,457 12,132
Advisory fees payable 552 0 0 0 582 670
Accrued legal and audit fees 7,473 7,473 7,473 7,473 7,473 7,473
Administration fees payable 7,949 7,949 7,949 7,949 7,949 7,949
Accrued expenses and other 2,186 2,125 2,121 2,122 2,717 2,132
---------- ----------- --------------- ----------- -------------- ----------
liabilities
TOTAL LIABILITIES 38,156 28,570 131,862 287,361 35,178 338,545
NET ASSETS $1,107,450 $1,103,720 $ 1,331,743 $1,077,878 $ 1,207,853 $1,323,353
========== =========== =============== =========== ============== ==========
COMPONENTS OF NET ASSETS:
Paid-in capital $1,058,924 $1,075,485 $ 1,350,907 $1,077,890 $ 1,081,087 $1,103,476
Undistributed net investment
income/(loss) 3,555 10,559 20,635 0 3,430 11,397
Accumulated net realized
gain/(loss) on
securities and foreign currency
transactions 15,629 (10,043) (30,552) (12) 20,433 82,401
Net unrealized appreciation/
(depreciation) of securities and
foreign currency transactions 29,342 27,719 (9,247) 0 102,903 126,079
---------- ----------- --------------- ----------- -------------- ----------
NET ASSETS $1,107,450 $1,103,720 $ 1,331,743 $1,077,878 $ 1,207,853 $1,323,353
========== =========== =============== =========== ============== ==========
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE, PER SHARE $ 10.49 $ 10.28 $ 9.79 $ 1.00 $ 11.25 $ 12.21
========== =========== =============== =========== ============== ==========
SHARES OUTSTANDING (UNLIMITED
AUTHORIZATION, $.01 PAR VALUE) 105,592 107,365 135,984 1,077,890 107,360 108,386
========== =========== =============== =========== ============== ==========
<S> <C> <C>
Berkeley Lexington
Smaller Corporate
Companies Leaders
Portfolio Portfolio
----------- ------------
ASSETS
Investments at value, $1,101,595 $ 1,037,278
See accompanying schedules
Repurchase agreements at cost 242,000 0
and value
Cash and/or foreign currency 111 23,309
Dividends and/or interest 47 2,004
receivable
Receivable for investments 17,700 0
securities sold
Receivable for Trust shares sold 23,992 0
Expense reimbursements receivable 20,053 25,417
Other assets 2,116 2,116
----------- ------------
TOTAL ASSETS 1,407,614 1,090,124
Investments at cost 962,718 989,674
Cash and/or foreign currency 111 23,309
at cost
LIABILITIES
Payable for investment 25,660 0
securities purchased
Payable for Trust shares redeemed 0 0
Custodian fees payable 10,929 13,459
Advisory fees payable 0 445
Accrued legal and audit fees 7,473 7,473
Administration fees payable 7,949 7,949
Accrued expenses and other 2,122 2,121
----------- ------------
liabilities
TOTAL LIABILITIES 54,133 31,447
NET ASSETS $1,353,481 $ 1,058,677
=========== ============
COMPONENTS OF NET ASSETS:
Paid-in capital $1,125,391 $ 1,005,174
Undistributed net investment
income/(loss) (5,221) 5,899
Accumulated net realized
gain/(loss) on
securities and foreign currency
transactions 94,434 0
Net unrealized appreciation/
(depreciation) of securities and
foreign currency transactions 138,877 47,604
----------- ------------
NET ASSETS $1,353,481 $ 1,058,677
=========== ============
NET ASSET VALUE, OFFERING PRICE
AND REDEMPTION PRICE, PER SHARE $ 12.31 $ 10.53
=========== ============
SHARES OUTSTANDING (UNLIMITED
AUTHORIZATION, $.01 PAR VALUE) 109,960 100,498
=========== ============
</TABLE>
See Notes to Financial Statements
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE PERIOD JANUARY 31, 1996 (COMMENCEMENT OF OPERATIONS)
TO JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SALOMON STRONG
MFS TOTAL U.S. QUALITY SALOMON INTERNATIONAL
MAS VALUE RETURN BOND MONEY MARKET STOCK STRONG GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------- ------------ ------------- --------------
INVESTMENT INCOME
Income:
Dividends $ 8,824 $ 6,746 $ 0 $ 0 $ 8,887 $ 16,738
Foreign withholding tax on
dividend income (90) (99) 0 0 (800) (10)
Interest 1,380 10,275 25,812 22,506 1,809 1,491
----------- ----------- -------------- -------------- --------------- ---------------
TOTAL INVESTMENT INCOME 10,114 16,922 25,812 22,506 9,896 18,219
----------- ----------- -------------- -------------- --------------- ---------------
EXPENSES:
Investment advisory fees 3,790 3,167 2,292 1,958 3,302 3,646
Administration fees 17,199 17,199 17,199 17,199 17,199 17,199
Custodian fees 14,556 14,556 14,556 14,556 18,272 14,556
Printing expenses 581 581 581 581 581 581
Legal and audit fees 8,425 8,425 8,425 8,425 8,425 8,425
Insurance expense 1,743 1,743 1,743 1,743 1,743 1,743
Trustees' fees and expenses 698 698 698 698 698 698
Other expense 871 870 871 870 871 871
----------- ----------- -------------- -------------- --------------- ---------------
Expenses before waiver of fees
and expense reimbursement 47,863 47,239 46,365 46,030 51,091 47,719
Fees waived by investment
advisor (Note 3) (2,676) (3,167) (2,292) (1,958) (1,101) (1,215)
Expense reimbursement (Note 3) (39,918) (38,943) (40,191) (40,418) (43,796) (40,552)
----------- ----------- -------------- -------------- --------------- ---------------
TOTAL EXPENSES 5,269 5,129 3,882 3,654 6,194 5,952
----------- ----------- -------------- -------------- --------------- ---------------
NET INVESTMENT INCOME 4,845 11,793 21,930 18,852 3,702 12,267
----------- ----------- -------------- -------------- --------------- ---------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized gain (loss) on sales of
securities and
foreign currency transactions 15,629 (10,043) (30,552) (12) 20,433 86,780
Net change in unrealized
appreciation/(depreciation) of
securities and foreign currency
transactions 29,342 27,719 (9,247) 0 102,903 126,079
----------- ----------- -------------- -------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS 44,971 17,676 (39,799) (12) 123,336 212,859
----------- ----------- -------------- -------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 49,816 $ 29,469 ($17,869) $ 18,840 $ 127,038 $ 225,126
=========== =========== ============== ============== =============== ===============
<S> <C> <C>
BERKELEY LEXINGTON
SMALLER CORPORATE
COMPANIES LEADERS
PORTFOLIO PORTFOLIO
--------- -----------
INVESTMENT INCOME
Income:
Dividends $ 167 $ 12,037
Foreign withholding tax on
dividend income 0 (190)
Interest 1,789 785
----------- -------------
TOTAL INVESTMENT INCOME 1,956 12,632
----------- -------------
EXPENSES:
Investment advisory fees 4,803 2,786
Administration fees 17,199 17,199
Custodian fees 14,556 14,556
Printing expenses 581 581
Legal and audit fees 8,425 8,425
Insurance expense 1,743 1,743
Trustees' fees and expenses 698 698
Other expense 870 870
----------- -------------
Expenses before waiver of fees
and expense reimbursement 48,875 46,858
Fees waived by investment
advisor (Note 3) (4,803) (1,071)
Expense reimbursement (Note 3) (37,740) (40,576)
----------- -------------
TOTAL EXPENSES 6,332 5,211
----------- -------------
NET INVESTMENT INCOME (4,376) 7,421
----------- -------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Realized gain (loss) on sales of
securities and
foreign currency transactions 94,434 0
Net change in unrealized
appreciation/(depreciation) of
securities and foreign currency
transactions 138,877 47,604
----------- -------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS 233,311 47,604
----------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 228,935 $ 55,025
=========== =============
</TABLE>
See Notes to Financial Statements
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD JANUARY 31, 1996 (COMMENCEMENT OF OPERATIONS)
TO JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SALOMON STRONG
MFS TOTAL U.S. QUALITY SALOMON INTERNATIONAL STRONG
MAS VALUE RETURN BOND MONEY MARKET STOCK GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ------------ ------------- ---------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income 4,845 11,793 21,930 18,852 3,702 12,267
Net realized gain/(loss) on
securities and foreign
currency transactions 15,629 (10,043) (30,552) (12) 20,433 86,780
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions
during the period 29,342 27,719 (9,247) 0 102,903 126,079
----------- ----------- -------------- -------------- --------------- -----------
Net increase (decrease) in net
assets resulting from operations 49,816 29,469 (17,869) 18,840 127,038 225,126
----------- ----------- -------------- -------------- --------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income (1,290) (1,234) (1,295) (18,852) (272) (870)
Net realized gain on investments 0 0 0 0 0 (4,379)
----------- ----------- -------------- -------------- --------------- -----------
Total distributions (1,290) (1,234) (1,295) (18,852) (272) (5,249)
SHARE TRANSACTIONS
Net proceeds from sale of shares 1,070,326 1,074,251 1,352,159 1,998,296 1,112,550 1,104,573
Issued to shareholders in
reinvested dividends 1,290 1,234 1,295 18,852 272 5,249
Cost of shares repurchased (12,692) 0 (2,547) (939,258) (31,735) (6,346)
----------- ----------- -------------- -------------- --------------- -----------
Net increase from share
transactions (Note 5) 1,058,924 1,075,485 1,350,907 1,077,890 1,081,087 1,103,476
----------- ----------- -------------- -------------- --------------- -----------
NET INCREASE IN NET ASSETS 1,107,450 1,103,720 1,331,743 1,077,878 1,207,853 1,323,353
----------- ----------- -------------- -------------- --------------- -----------
NET ASSET AT BEGINNING OF PERIOD 0 0 0 0 0 0
----------- ----------- -------------- -------------- --------------- -----------
NET ASSETS AT END OF PERIOD
(INCLUDING LINE A) $1,107,450 $1,103,720 $ 1,331,743 $ 1,077,878 $ 1,207,853 $1,323,353
=========== =========== ============== ============== =============== ===========
(A) Accumulated undistributed net
investment income (loss) $ 3,555 $ 10,559 $ 20,635 $ 0 $ 3,430 $ 11,397
=========== =========== ============== ============== =============== ===========
<S> <C> <C>
BERKELEY LEXINGTON
SMALLER CORPORATE
COMPANIES LEADERS
PORTFOLIO PORTFOLIO
--------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (4,376) 7,421
Net realized gain/(loss) on
securities and foreign
currency transactions 94,434 0
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions
during the period 138,877 47,604
----------- -------------
Net increase (decrease) in net
assets resulting from operations 228,935 55,025
----------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income (845) (1,522)
Net realized gain on investments 0 0
----------- -------------
Total distributions (845) (1,522)
SHARE TRANSACTIONS
Net proceeds from sale of shares 1,130,892 1,009,968
Issued to shareholders in
reinvested dividends 845 1,552
Cost of shares repurchased (6,346) (6,346)
----------- -------------
Net increase from share
transactions (Note 5) 1,125,391 1,005,174
----------- -------------
NET INCREASE IN NET ASSETS 1,353,481 1,058,677
----------- -------------
NET ASSET AT BEGINNING OF PERIOD 0 0
----------- -------------
NET ASSETS AT END OF PERIOD
(INCLUDING LINE A) $1,353,481 $ 1,058,677
=========== =============
(A) Accumulated undistributed net
investment income (loss) ($5,221) $ 5,899
=========== =============
</TABLE>
See Notes to Financial Statements
LPT VARIABLE INSURANCE SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR THE PERIOD JANUARY 31, 1996 (COMMENCEMENT OF OPERATIONS)
TO JUNE 30, 1996 (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SALOMON STRONG
MFS TOTAL U.S. QUALITY SALOMON INTERNATIONAL STRONG
MAS VALUE RETURN BOND MONEY MARKET STOCK GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------ ------------ ------------- ---------
Net asset value, beginning of
period $ 10.00 $ 10.00 $ 10.00 $ 1.00 $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.11 0.16 0.02 0.03 0.11
Net realized and unrealized gain
(loss) on investments 0.45 0.18 (0.36) 0.00 1.22 2.15
----------- ----------- -------------- -------------- --------------- -----------
Total from investment operations 0.50 0.29 (0.20) 0.02 1.25 2.26
----------- ----------- -------------- -------------- --------------- -----------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.01) (0.01) (0.01) (0.02) (0.00) (0.01)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.00) (0.00) (0.04)
----------- ----------- -------------- -------------- --------------- -----------
Total distributions (0.01) (0.01) (0.01) (0.02) (0.00) (0.05)
----------- ----------- -------------- -------------- --------------- -----------
Net asset value, end of period $ 10.49 $ 10.28 $ 9.79 $ 1.00 $ 11.25 $ 12.21
=========== =========== ============== ============== =============== ===========
TOTAL RETURN ++ 3.39% 1.80% (2.07)% 1.68% 11.95% 15.22%
=========== =========== ============== ============== =============== ===========
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $ 1,107 $ 1,104 $ 1,332 $ 1,078 $ 1,208 $ 1,323
Ratio of operating expenses to
average net assets + 1.21% 1.21% 0.92% 0.84% 1.40% 1.22%
Ratio of net investment income to
average net assets + 1.11% 2.78% 5.22% 4.33% 0.84% 2.51%
Portfolio turnover rate 26.73% 51.99% 188.8% N/A 23.18% 186.14%
Average commission rate per share $ 0.0550 $ 0.0009 N/A N/A $ 0.0147 $ 0.0250
Ratio of operating expenses to
average net assets before waiver
of fees and expense
reimbursements + 11.00% 11.13% 11.04% 10.57% 11.55% 9.76%
Net investment loss per share
before waiver of fees and expense
reimbursements ($0.36) ($0.28) ($0.15) ($0.02) ($0.38) ($0.27)
<S> <C> <C>
BERKELEY LEXINGTON
SMALLER CORPORATE
COMPANIES LEADERS
PORTFOLIO PORTFOLIO
--------- -----------
Net asset value, beginning of
period $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (0.04) 0.07
Net realized and unrealized gain
(loss) on investments 2.36 0.48
----------- -------------
Total from investment operations 2.32 0.55
----------- -------------
LESS DISTRIBUTIONS:
Dividends from net investment
income (0.01) (0.02)
Distributions from net realized
capital gains (0.00) (0.00)
----------- -------------
Total distributions (0.01) (0.02)
----------- -------------
Net asset value, end of period $ 12.31 $ 10.53
=========== =============
TOTAL RETURN ++ 21.24% 2.95%
=========== =============
RATIOS TO AVERAGE NET
ASSETS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $ 1,353 $ 1,059
Ratio of operating expenses to
average net assets + 1.31% 1.21%
Ratio of net investment income to
average net assets + (0.91%) 1.73%
Portfolio turnover rate 239.29% 0.00%
Average commission rate per share $ 0.0234 $ 0.0500
Ratio of operating expenses to
average net assets before waiver
of fees and expense
reimbursements + 10.11% 10.89%
Net investment loss per share
before waiver of fees and expense
reimbursements ($0.43) ($0.34)
<FN>
+ Annualized
++ Total return represents aggregate total return for the period February
9, 1996 (effective date) to June 30, 1996.
The total return would have been lower if certain fees had not
been waived by the investment advisor, and if certain expenses had not been
reimbursed by London Pacific.
</TABLE>
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MAS Value Portfolio
Schedule of Investments
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 85.5%
Financial Services - 18.6%
254 Allstate Corporation................................................... $11,589
250 American General Corporation........................................... 9,094
188 American Re Corporation................................................ 8,436
200 Bank of Boston Corporation............................................. 9,900
152 Bank of New York Company, Inc.......................................... 7,790
250 Capital One Financial Corporation...................................... 7,125
150 Chase Manhattan Corporation (New)...................................... 10,594
132 Citicorp............................................................... 10,907
100 Crestar Financial Corporation.......................................... 5,337
100 Dean Witter Discover & Company......................................... 5,725
100 Federal Home Loan Mortgage Corporation................................. 8,550
300 Federal National Mortgage Association.................................. 10,050
200 First Chicago NBD Corporation.......................................... 7,825
100 First Union Corporation................................................ 6,088
155 ITT Hartford Group, Inc................................................ 8,254
340 Old Republic International Corporation................................. 7,310
350 Providian Corporation.................................................. 15,006
173 Reliastar Financial Corporation........................................ 7,461
123 Republic New York Corporation.......................................... 7,657
154 Salomon, Inc........................................................... 6,776
250 Signet Banking Corporation............................................. 5,812
100 St. Paul Companies, Inc................................................ 5,350
100 Standard Federal Bancorporation........................................ 3,850
115 Transatlantic Holdings, Inc............................................ 8,064
462 Great Western Financial Corporation.................................... 11,030
------
205,580
-------
Technology - 12.6%
350 Beckman Industries, Inc................................................ 13,300
342 Compaq Computer Corporation +.......................................... 16,844
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MAS Value Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Technology - (Continued)
197 International Business Machines........................................ $19,503
400 LAM Research Corporation +............................................. 10,400
700 National Semiconductor Corporation +................................... 10,850
200 Raytheon Company....................................................... 10,325
452 Seagate Technology +................................................... 20,340
150 Standard Register...................................................... 3,694
143 Tandy Corporation...................................................... 6,775
282 Tektronix, Inc......................................................... 12,619
100 TRW, Inc............................................................... 8,988
212 Western Digital Corporation +.......................................... 5,538
-----
139,176
-------
Producer Durables - 10.4%
100 Caterpillar, Inc....................................................... 6,775
281 Cummins Engine, Inc.................................................... 11,345
300 Deere & Company........................................................ 12,000
304 Harnischfeger Industries, Inc.......................................... 10,108
200 Kennametal, Inc........................................................ 6,800
200 Parker-Hannifin Corporation............................................ 8,475
214 Tecumseh Products Company.............................................. 11,503
150 Textron, Inc........................................................... 11,981
191 Timken Company +....................................................... 7,401
500 Trinova Corporation.................................................... 16,687
250 Varity Corporation +................................................... 12,031
------
115,106
--------
Materials and Processing - 9.8%
190 Bowater, Inc........................................................... 7,149
200 Cabot Corporation...................................................... 4,900
250 Cyprus Amax Materials Company.......................................... 5,656
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MAS Value Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Materials and Processing - (Continued)
200 Dexter Corporation..................................................... $5,950
200 DuPont (E.I.) DeNemours & Company...................................... 15,825
195 FMC Corporation +...................................................... 12,724
195 IMC Global, Inc........................................................ 7,337
300 Mallinckrodt Group, Inc................................................ 11,662
123 Potash Corporation of Saskatchewan..................................... 8,149
300 Premark International, Inc............................................. 5,550
150 Reynolds Metals Company................................................ 7,819
300 Rhone Poulnec SA, ADR.................................................. 7,950
350 Wellman, Inc........................................................... 8,181
-----
108,852
-------
Autos & Transportation - 7.6%
200 AMR Corporation........................................................ 18,200
100 Burlington Northern Santa Fe........................................... 8,088
200 CSX Corporation........................................................ 9,650
200 Eaton Corporation...................................................... 11,725
250 General Motors Corporation............................................. 13,094
300 Goodyear Tire and Rubber............................................... 14,475
300 Ryder Systems, Inc..................................................... 8,437
-----
83,669
------
Energy - 6.3%
100 Amoco Corporation...................................................... 7,238
100 Atlantic Richfield Company............................................. 11,850
150 British Petroleum, PLC, ADR............................................ 16,031
200 Mapco, Inc............................................................. 11,275
182 Tenneco, Inc........................................................... 9,305
300 Ultramar Corporation................................................... 8,700
250 YPF, S.A., ADR......................................................... 5,625
-----
70,024
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MAS Value Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Consumer Staples - 6.2%
450 Archer-Daniels-Midland Company......................................... $8,606
405 IBP, Inc............................................................... 11,188
200 Philip Morris Companies, Inc........................................... 20,800
250 RJR Nabisco Holdings Corporation....................................... 7,750
300 Tupperware Corporation................................................. 12,675
200 Universal Foods Corporation............................................ 7,375
-----
68,394
------
Utilities - 4.8%
400 Central Maine Power Company............................................ 5,800
100 DTE Energy Company..................................................... 3,081
250 El Paso Natural Gas Company............................................ 9,625
307 Entergy Corporation.................................................... 8,711
253 General Public Utilities Corporation................................... 8,918
349 Peco Energy Company.................................................... 9,074
305 Unicom Corporation..................................................... 8,502
-----
53,711
------
Consumer Discretionary - 4.3%
50 Anheuser-Busch Companies, Inc.......................................... 3,750
254 Dillard Department Stores, Inc......................................... 9,271
200 PHH Corporation........................................................ 11,400
100 Reebok International, Ltd.............................................. 3,362
150 Springs Industries, Inc., Class A...................................... 7,575
200 VF Corporation......................................................... 11,925
------
47,283
------
Drugs & Health Care - 4.2%
400 Bergen Brunswig Corporation, Class A................................... 11,100
100 Bristol-Myers Squibb Company........................................... 9,000
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MAS Value Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------- --------
COMMON STOCK - (Continued)
Drugs & Health Care - (Continued)
374 Foundation Health Corporation +........................................ $13,417
100 Horizon CMS Healthcare Corporation +................................... 1,288
300 Maxicare Health Plans, Inc. +.......................................... 5,663
300 Tenet Healthcare Corporation +......................................... 6,412
-----
46,880
------
Other - 0.7%
200 Sprint Corporation..................................................... 8,400
-----
Total Common Stock (Cost $917,733) 947,075
-------
Principal
Amount
_________
SHORT-TERM OBLIGATIONS - 11.7%
$129,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/28/96 at
2.0%, (collateralized by U.S. Treasury Note,
5.92%, due 08/31/97, par value $129,000;
market value $132,523) (Cost $129,000)......................... 129,000
-------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $1,046,733*)................. 97.2% 1,076,075
OTHER ASSETS AND LIABILITIES (NET)................... 2.8 31,375
------- ----------
NET ASSETS........................................... 100.0% $1,107,450
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Non-income producing security
</TABLE>
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depositary Receipt
---------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCK - 52.8%
Financial Services - 8.5%
50 Aetna Life & Casualty Company.......................................... $3,575
70 Allstate Corporation................................................... 3,194
80 American Express Company............................................... 3,570
100 Associates First Capital Corporation, Class A.......................... 3,763
160 Bank of Boston Corporation............................................. 7,920
140 Bank of New York Company, Inc.......................................... 7,175
145 Chase Manhattan Corporation (New)...................................... 10,240
50 Cigna Corporation...................................................... 5,894
90 Federal Home Loan Mortgage Corporation................................. 7,695
80 Fleet Financial Corporation, Inc....................................... 3,480
300 National City Corporation.............................................. 10,538
100 Nationsbank Corporation................................................ 8,262
250 Southern National Corporation.......................................... 7,938
120 St. Paul Companies, Inc................................................ 6,420
110 Torchmark.............................................................. 4,812
-----
94,476
------
Energy - 7.9%
90 Amoco Corporation...................................................... 6,514
50 Atlantic Richfield Company............................................. 5,925
80 British Petroleum PLC, ADR............................................. 8,550
300 Enron Corporation...................................................... 7,763
70 Exxon Corporation...................................................... 6,081
60 Mobil Corporation...................................................... 6,727
210 Occidental Petroleum Company........................................... 5,198
250 Panenergy Corporation.................................................. 8,219
120 Repsol SA, ADR......................................................... 4,170
90 Royal Dutch Petroleum Company (NY Registry)............................ 13,837
40 Schlumberger, Ltd...................................................... 3,370
100 Sun, Inc............................................................... 3,037
400 USX Marathon Group..................................................... 8,050
-----
87,441
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Utilities - 5.6%
200 Carolina Power & Light Company......................................... $7,600
230 Coastal Corporation.................................................... 9,603
100 Eastern Enterprises.................................................... 3,325
100 FPL Group, Inc......................................................... 4,600
190 Peco Energy Company.................................................... 4,940
200 Pinnacle West Capital Corporation...................................... 6,075
230 Portland General Corporation........................................... 7,100
100 Sonat, Inc............................................................. 4,500
100 Texas Utilities Company................................................ 4,275
200 UGI Corporation........................................................ 4,400
100 Williams Companies, Inc................................................ 4,950
-----
61,368
------
Materials and Processing - 5.4%
50 Aluminum Company of America............................................ 2,869
10 CIBA Geigy AG.......................................................... 12,198
80 Dow Chemical Company................................................... 6,080
70 DuPont (E.I.) DeNemours & Company...................................... 5,539
150 Freeport McMoran Copper & Gold, Class B................................ 4,781
150 B.F. Goodrich Company.................................................. 5,606
80 Hanna (M.A.) Company................................................... 1,670
30 Olin Corporation....................................................... 2,678
80 Phelps Dodge Corporation............................................... 4,990
100 Praxair, Inc........................................................... 4,225
50 Rohm & Haas Company.................................................... 3,138
60 Weyerhaeuser Company................................................... 2,550
100 Witco Corporation...................................................... 3,437
-----
59,761
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Technology - 4.9%
130 Allied Signal, Inc..................................................... $7,426
40 Analog Devices, Inc. +................................................. 1,020
40 Digital Equipment Corporation +........................................ 1,800
140 Honeywell, Inc......................................................... 7,630
30 International Business Machines........................................ 2,970
80 Lockheed Martin Corporation............................................ 6,720
150 Raytheon Company....................................................... 7,744
110 United Technologies Corporation........................................ 12,650
110 Xerox Corporation...................................................... 5,885
-----
53,845
------
Producer Durables - 3.7%
100 Browning Ferris Industries, Inc........................................ 2,900
190 Deere & Company........................................................ 7,600
140 General Electric....................................................... 12,110
140 Ingersoll Rand Company................................................. 6,125
140 York International Corporation......................................... 7,245
150 WMX Technologies, Inc.................................................. 4,913
-----
40,893
------
Drugs & Health Care - 3.4%
130 American Home Products Corporation..................................... 7,816
160 Baxter International, Inc.............................................. 7,560
300 Lion Nathan, Ltd....................................................... 786
90 Eli Lilly & Company.................................................... 5,850
100 Meditrust.............................................................. 3,337
50 Rhone-Poulene Rorer, Inc............................................... 3,356
70 St. Judd Medical, Inc. +............................................... 2,345
120 SmithKline Beecham, PLC, ADR........................................... 6,525
-----
37,575
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Autos & Transportation - 3.3%
60 Burlington Northern Santa Fe........................................... $4,853
140 CSX Corporation........................................................ 6,755
110 Dana Corporation....................................................... 3,410
150 Ford Motor Company..................................................... 4,856
160 General Motors Corporation............................................. 8,380
190 Illinois Central Corporation........................................... 5,391
140 Volvo Artiebolaget, ADR................................................ 3,150
-----
36,795
------
Communication - 3.3%
150 AT&T Corporation....................................................... 9,300
120 Ameritech Corporation.................................................. 7,125
150 GTE Corporation........................................................ 6,712
270 MCI Communications Corporation......................................... 6,919
100 NYNEX Corporation...................................................... 4,750
40 Telephone & Data Systems, Inc.......................................... 1,800
-----
36,606
------
Consumer Discretionary - 3.2%
120 Eastman Kodak Company.................................................. 9,330
110 May Department Stores Company.......................................... 4,812
100 Office Depot, Inc. +................................................... 2,038
120 Sears Roebuck & Company................................................ 5,835
80 Tribune Company........................................................ 5,810
70 VF Corporation......................................................... 4,174
120 Wal-Mart Stores, Inc................................................... 3,045
-----
35,044
------
Consumer Staples - 3.1%
60 American Brands, Inc................................................... 2,723
100 Dimon, Inc............................................................. 1,850
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Consumer Staples - (Continued)
120 General Mills, Inc..................................................... $6,540
30 Kellogg Company........................................................ 2,198
120 Phillip Morris Companies, Inc.......................................... 12,480
90 Rubbermaid, Inc........................................................ 2,452
200 Stanley Works.......................................................... 5,950
-----
34,193
------
Other - 0.5%
200 Hospitality Properties Trust........................................... 5,350
-----
Total Common Stocks (Cost $555,565).................................... 583,347
-------
PREFERRED STOCKS - 1.2%
50 American Radio Systems Corporation, Non-Voting......................... 2,975
100 Unocal Corporation, Non-Voting......................................... 5,638
40 Case Corporation, Series A, Non-Voting................................. 4,750
-----
Total Preferred Stocks (Cost $12,700).................................. 13,363
------
Principal
Amount
_________
TREASURY OBLIGATIONS - 30.5%
$339,000 United States Treasury Note, 6.375%
Due 08/15/2002 (Cost $337,120).................................. 336,298
-------
CORPORATE BONDS AND NOTES - 0.4%
4,000 Cooper Industries Inc., Subordinated
Debenture, 7.05%, due 01/01/2015 (Cost $4,183).................. 4,280
-----
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Principal Value
Amount (Note 2)
- ---------- ----------
SHORT-TERM OBLIGATIONS - 9.4%
$104,000 Repurchase Agreement with State Street Bank & Trust
Company, dated 06/28/96 at 2.0%, (collateralized by
U.S. Treasury Note, 5.92%, due 08/31/97, par value
$104,000; market value $107,038) (Cost $104,000)............... $104,000
--------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $1,013,568*)................. 94.3% 1,041,288
OTHER ASSETS AND LIABILITIES......................... 5.7 62,432
------ ----------
NET ASSETS........................................... 100.0% $1,103,720
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Non-income producing security
</TABLE>
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depositary Receipt
---------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Salomon U.S. Quality Bond Portfolio
Schedule of Investments
June 30, 1996 (Unaudited)
<S> <C>
Principal Value
Amount (Note 2)
_________ _________
U.S. TREASURY NOTES - 35.2%
$125,000 5.875%, due 11/15/2005.......................................... $117,754
250,000 6.50%, due 05/31/2001........................................... 250,117
100,000 6.625%, due 06/30/2001.......................................... 100,641
-------
Total U.S. Treasury Notes (Cost $468,119)................. 468,512
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 55.6%
Government National Mortgage Association (GNMA) - 18.0%
250,000 Pool #432575 7.00%, due 04/15/2026
(Cost $243,045)................................................. 239,454
-------
Federal Farm Credit Bank (FFCB) - 9.7%
45,000 5.28%, due 07/11/1996+.......................................... 44,934
50,000 5.28%, due 07/24/1996+.......................................... 49,831
35,000 5.25%, due 07/25/1996+.......................................... 34,878
------
Total FFCB (Cost $129,643)................................ 129,643
-------
Student Loan Marketing Association (SLMA) - 9.6%
125,000 7.20%, due 11/09/2000 (Cost $129,053)........................... 127,578
-------
Federal Home Loan Bank (FHLB) - 9.1%
125,000 5.89%, due 07/24/2000 (Cost $123,910)........................... 121,875
-------
Federal Home Loan Mortgage Corporation (FHLMC) - 5.9%
70,441 11.75%, due 08/01/2014 (Cost $78,805)........................... 78,771
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Salomon U.S. Quality Bond Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Principal Value
Amount (Note 2)
_________ ________
U.S. GOVERNMENTAL AGENCY OBLIGATIONS (CONTINUED)
Federal National Mortgage Association (FNMA) - 3.3%
$15,000 Pool #100089 13.00%, due 11/1/2015.............................. $15,932
6,000 Pool #100090 14.50%, due 11/1/2014.............................. 6,808
10,000 Pool #303791 12.50%, due 08/01/2015............................. 10,549
10,000 Pool #303792 11.50%, due 09/01/2019............................. 10,712
------
Total FNMA (Cost $45,480)................................. 44,001
------
Total U.S. Government Agency Obligations
(Cost $749,936)........................................... 741,322
-------
CORPORATE BONDS AND NOTES - 4.2%
50,000 Mellon Financial Company, 9.75%
Due 06/15/2001 (Cost $56,510)................................... 55,484
------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $1,274,565*)................. 95.0% 1,265,318
OTHER ASSETS AND LIABILITIES (NET)................... 5.0 66,425
------ -----------
NET ASSETS........................................... 100.0% $1,331,743
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Rate represents annualized yield at date of purchase
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Salomon Money Market Portfolio
Schedule of Investments
June 30, 1996 (Unaudited)
<S> <C>
Principal Value
Amount (Note 2)
_________ ________
U.S. TREASURY BILLS - 14.3%
$155,000 5.07%, due 09/05/1996+ (Cost $153,559).......................... $153,559
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 105.0%
Federal Farm Credit Bank (FFCB) - 56.0%
145,000 5.30%, due 07/01/1996+.......................................... 145,000
260,000 5.26%, due 07/24/1996+.......................................... 259,126
200,000 5.25%, due 07/25/1996+.......................................... 199,300
-------
Total FFCB (Cost $603,426)................................ 603,426
-------
Federal Home Loan Mortgage Corporation (FHLMC) - 22.2%
40,000 5.24%, due 07/02/1996+.......................................... 39,994
200,000 5.30%, due 07/26/1996+.......................................... 199,264
-------
Total FHLMC (Cost $239,258)............................... 239,258
-------
Federal Home Loan Bank (FHLB) - 18.5%
200,000 5.23%, due 07/24/1996+ (Cost $199,332).......................... 199,332
-------
Federal National Mortgage Association (FNMA) - 8.3%
90,000 5.26%, due 07/26/1996+ (Cost $89,671)........................... 89,671
------
Total U.S. Government Agency Obligations
(Cost $1,131,687) .............................................. 1,131,687
---------
COMMERCIAL PAPER - 4.6%
50,000 Ford Motor Credit Company, 5.35%
Due 07/15/1996+ (Cost $49,897).................................. 49,897
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Salomon Money Market Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C> <C>
Value
(Note 2)
________
TOTAL INVESTMENTS (COST $1,335,143*)................. 123.9% $1,335,143
OTHER ASSETS AND LIABILITIES (NET)................... (23.9) (257,265)
------ ---------
NET ASSETS........................................... 100.0% $1,077,878
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Rate represents annualized yield at date of purchase
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Strong International Stock Portfolio
Schedule of Investments
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - 69.7%
Japan - 17.5%
1,000 Canon Sales Company, Inc............................................... $27,888
7,000 Chubu Steel Plate Company, Ltd......................................... 46,212
1,100 Family Mart Company.................................................... 49,084
10,000 Ishikawajima Harina Heavy Industries................................... 48,919
2,000 Nomura Securities Company, Ltd......................................... 39,135
------
211,238
-------
Italy - 11.8%
38,000 Simint, SPA +.......................................................... 142,694
-------
Australia - 7.8%
26,000 Normandy Mining, Ltd................................................... 41,065
7,400 WMC, Ltd. .......................................................... 52,919
------
93,984
------
United Kingdom - 7.7%
11,000 Inchcape, PLC.......................................................... 50,054
10,000 Royal Doulton.......................................................... 42,398
------
92,452
------
Hong Kong - 6.9%
84,000 CDL Hotels International............................................... 46,119
26,000 Peregrine Investment Holdings.......................................... 37,451
------
83,570
------
Indonesia - 5.0%
32,000 Bukaka Teknik Utama.................................................... 48,120
8,250 Kawasan Industries..................................................... 12,051
------
60,171
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Strong International Stock Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
New Zealand - 4.2%
97,533 Guinness Peat Group, PLC............................................... $50,327
-------
Malaysia - 3.9%
27,000 IJM Corporation Berhad................................................. 46,759
------
France - 3.6%
1,500 Remy Cointreau, SA..................................................... 44,035
------
United States - 1.3%
700 De Rigo SPA, ADR +..................................................... 16,012
------
Total Common Stocks (Cost $735,005).................................... 841,242
-------
PREFERRED STOCK - 3.5%
United States - 3.5%
2,400 Thai Prime Fund, Ltd. (Cost $46,086)................................... 42,240
------
WARRANTS - 0.4%
10,400 Normandy Mining (Australia) expires 04/08/2001......................... 4,740
2,600 Peregrine Investment Holdings (Hong Kong),
expires 05/15/1998..................................................... 323
---
Total Warrants (Cost $4,555)........................................... 5,063
-----
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Strong International Stock Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Principal Value
Amount (Note 2)
_________ ________
SHORT-TERM INVESTMENTS - 24.1%
$291,000 Repurchase Agreement with State Street Bank
and Trust Company, dated 06/28/96 at
2.0%, (collateralized by U.S. Treasury Note,
5.92%, due 08/31/97, par value $291,000;
market value $300,725) (Cost $291,000)......................... $291,000
--------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $1,076,646*)................. 97.7% 1,179,545
OTHER ASSETS AND LIABILITIES (NET)................... 2.3 28,308
------ -----------
NET ASSETS........................................... 100.0% $1,207,853
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Non-income producing security
</TABLE>
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depositary Receipt
---------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Strong International Stock Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
As of June 30, 1996, sector diversification of the Portfolio was as follows:
<S> <C> <C>
% of Value
Sector Diversification Net Assets (Note 2)
______________________ __________ ________
COMMON STOCKS:
Consumer Discretionary............................... 31.2% $376,187
Producer Durables.................................... 11.9 143,798
Materials and Processing............................. 11.6 140,195
Consumer Staples..................................... 7.7 92,725
Financial Services................................... 6.3 76,586
Other................................................ 1.0 11,751
--- ------
TOTAL COMMON STOCKS.................................. 69.7 841,242
PREFERRED STOCKS..................................... 3.5 42,240
WARRANTS ............................................ 0.4 5,063
SHORT-TERM INVESTMENTS............................... 24.1 291,000
---- -------
TOTAL INVESTMENTS.................................... 97.7 1,179,545
OTHER ASSETS AND LIABILITIES (Net)................... 2.3 28,308
-------- ----------
NET ASSETS........................................... 100.0% $1,207,853
====== ==========
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - 94.4%
Consumer Discretionary - 28.6%
300 Apple South, Inc....................................................... $8,025
300 Autozone, Inc. +....................................................... 10,425
400 BT Office Products International, Inc. +............................... 7,150
200 Checkpoint Systems, Inc. +............................................. 6,875
100 Circus Circus Enterprises, Inc. +...................................... 4,100
400 Consolidated Stores Corporation +...................................... 14,700
600 CUC International, Inc. +.............................................. 21,300
600 Dollar Tree Stores, Inc. +............................................. 19,050
300 Garden Ridge Corporation +............................................. 15,150
100 Gucci Group, NV........................................................ 6,450
600 HFS, Inc. + .......................................................... 42,000
200 Medaphis Corporation +................................................. 7,950
200 Kohl's Corporation +................................................... 7,325
400 Midwest Express Holdings, Inc. +....................................... 12,850
300 Nautica Enterprises, Inc. +............................................ 8,625
100 Nike, Inc., Class B.................................................... 10,275
300 PMT Services, Inc. +................................................... 8,588
300 Promus Hotel Corporation +............................................. 8,888
300 Rain Forest Cafe, Inc. +............................................... 15,000
300 Regal Cinemas +........................................................ 13,725
300 Service Corporation International...................................... 17,250
500 Staples, Inc. +........................................................ 9,750
800 Viking Office Products, Inc. +......................................... 25,100
100 Tommy Hilfiger Corporation +........................................... 5,362
1,000 Tribune Company........................................................ 72,625
------
378,538
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - (Continued)
Technology - 21.5%
100 Adtran, Inc. +......................................................... $7,088
200 Andrew Corporation +.................................................. 10,750
200 Baan Company, NV +.................................................... 6,800
200 Cascade Communications +............................................... 13,600
400 CBT Group Publishing, Ltd., ADR +...................................... 18,500
400 Cisco Systems, Inc. +.................................................. 22,650
800 Danka Business System, ADR ............................................ 23,400
200 HBO & Company.......................................................... 13,550
300 HNC Software, Inc. +................................................... 13,875
200 Intel Corporation...................................................... 14,687
300 McAfee Associates, Inc. +.............................................. 14,700
100 Microsoft Corporation +............................................... 12,011
200 Stratacom, Inc. +...................................................... 11,250
400 Sykes Enterprises, Inc................................................. 19,700
300 Tellabs, Inc. +........................................................ 20,063
200 US Long Distance Corporation........................................... 7,100
400 US Robotics Corporation +............................................. 34,200
500 Uniphase Corporation +................................................ 17,750
100 Visio Corporation +.................................................... 3,600
-----
289,774
-------
Drugs & Health Care - 17.9%
400 Amerisource Health Corporation, Class A +.............................. 13,300
200 Cardinal Health, Inc................................................... 14,425
500 Dura Pharmaceuticals, Inc. +........................................... 28,000
300 Elan PLC, ADR +........................................................ 17,138
300 Guidant Corporation.................................................... 14,775
800 Healthport, Inc. +..................................................... 24,200
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - (Continued)
Drugs & Health Care - (Continued)
300 Healthsouth Corporation +.............................................. $10,800
300 Johnson & Johnson...................................................... 14,850
400 Eli Lilly & Company.................................................... 26,000
300 Merck & Company, Inc................................................... 19,387
400 Orthodontic Centers of America, Inc. +................................. 10,600
300 Parexel International Corporation +.................................... 14,475
100 Quintiles Transnational Corporation +.................................. 6,575
300 Pfizer, Inc. .......................................................... 21,413
------
235,938
-------
Materials and Equipment - 10.6%
300 ABR Information Services, Inc. +....................................... 15,075
700 Accustaff, Inc. +...................................................... 19,075
300 Alco Standard Corporation.............................................. 13,575
400 Career Horizons, Inc. +................................................ 14,000
500 Corestaff, Inc. +...................................................... 22,375
1,000 Monsanto Company....................................................... 32,500
100 Olin Corporation....................................................... 8,925
200 Physicians Resource Group, Inc. +...................................... 6,675
200 Sitel Corporation +.................................................... 8,400
-----
140,600
-------
Financial Services - 5.5%
300 Aames Financial Corporation............................................ 10,762
1,000 Corporate Express, Inc. +.............................................. 40,000
300 First Bank Systems, Inc................................................ 17,400
100 First USA Paymentech, Inc. +........................................... 4,000
-----
72,162
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - (Continued)
Communications - 3.4%
400 Ameritech Corporation.................................................. $23,750
400 Cincinnati Bell, Inc................................................... 20,850
------
44,600
------
Consumer Staples - 3.3%
800 Pepsico, Inc........................................................... 28,300
400 USA Detergents, Inc.................................................... 15,950
------
44,250
------
Energy - 2.3%
100 Chesapeake Energy Corporation +........................................ 8,988
500 Pride Petroleum Services, Inc. +....................................... 7,125
100 Schlumberger, Ltd...................................................... 8,425
200 Smith International, Inc. +............................................ 6,025
-----
30,563
------
Other - 1.3%
300 Harley Davidson, Inc................................................... 12,338
200 Planning Services International, PLC, ADR +............................ 4,500
-----
16,838
------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $1,122,684*)................. 94.4% 1,248,763
OTHER ASSETS AN LIABILITIES (NET).................... 5.6 74,590
------ ----------
NET ASSETS........................................... 100.0% $1,323,353
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Non-income producing security
</TABLE>
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depositary Receipt
---------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Berkeley Smaller Companies Portfolio
Schedule of Investments
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - 81.4%
Technology - 25.2%
300 Arbor Software Corporation +........................................... $17,925
400 Business Objects, SA, ADR +............................................ 16,100
300 Ciprico, Inc.+......................................................... 4,575
800 Cotelligent Group, Inc. +.............................................. 13,800
300 Cylink Corporation +................................................... 5,175
700 Edify Software, Inc. +................................................. 18,550
400 Forte Software, Inc. +................................................. 20,900
200 HBO & Company.......................................................... 13,550
200 Hologic, Inc.+......................................................... 8,850
400 IDX Systems Corporation +.............................................. 15,600
200 Iomega Corporation +................................................... 5,800
200 Mechanical Dynamics, Inc. +............................................ 3,025
700 Moog, Inc., Class A +.................................................. 17,150
100 Netscape Communications Corporation +.................................. 6,225
100 Network Appliance, Inc. +.............................................. 2,975
500 P Com, Inc. +......................................................... 15,750
300 Premenos Technology Corporation +...................................... 5,475
780 SDL, Inc. + .......................................................... 21,645
300 Security Dynamics Technology, Inc. +................................... 24,675
400 Shiva Corporation +.................................................... 32,000
600 Sun Quest Information Systems, Inc. +.................................. 9,000
400 Systemsoft Corporation +............................................... 18,800
300 U.S. Robotics Corporation +............................................ 25,650
200 Unison Software, Inc. +................................................ 5,050
200 Veritas Software Company +............................................. 8,600
100 Xylan Corporation +.................................................... 4,650
-----
341,495
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Berkeley Smaller Companies Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - (Continued)
Consumer Discretionary - 12.8%
500 American Telecasting, Inc. +........................................... $6,625
200 Atlas Air, Inc. +...................................................... 11,500
600 Borders Group, Inc. +.................................................. 19,350
900 Claire S Stores, Inc................................................... 24,862
600 Dave & Busters, Inc. +................................................. 16,050
700 Finish Line, Inc., Class A +........................................... 20,038
900 Fossil, Inc. +......................................................... 13,050
300 Just for Feet, Inc. +.................................................. 15,862
700 Party City Corporation +............................................... 12,425
200 Peoplesoft, Inc. +..................................................... 14,250
100 Sodak Gaming, Inc. +................................................... 3,050
700 Wet Seal, Inc. +....................................................... 16,669
------
173,731
-------
Drugs & Health Care - 11.9%
500 ABR Information Services, Inc. +....................................... 25,125
800 American Oncology Resources, Inc. +.................................... 17,400
100 Amisys Managed Care Systems, Inc. +.................................... 2,575
500 Cardiovascular Dynamics, Inc. +........................................ 6,125
300 Dura Pharmaceuticals, Inc. +........................................... 16,800
300 Fresenias USA, Inc..................................................... 6,450
300 InterCardia, Inc. +.................................................... 8,550
400 Noven Pharmaceuticals, Inc. +.......................................... 6,400
1,200 Orthologic Corporation +............................................... 15,300
600 Phycon, Inc. +........................................................ 22,800
600 Physician Sales & Services, Inc. +..................................... 14,550
700 Rexall Sundown, Inc. +................................................. 18,900
------
160,975
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Berkeley Smaller Companies Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - (Continued)
Communications - 11.1%
500 Adtran, Inc. +......................................................... $35,438
400 Ascend Communications, Inc. +.......................................... 22,500
300 DSP Communications, Inc. +............................................. 15,412
600 EIS International, Inc. +.............................................. 15,300
500 Intelcom Group, Inc. +................................................. 12,500
500 Pairgain Technologies +................................................ 31,000
300 Premisys Communications, Inc. +........................................ 18,300
------
150,450
-------
Business Services - 7.5%
400 Accustaff, Inc. +...................................................... 10,900
300 Career Horizons, Inc. +................................................ 10,500
200 CKS Group, Inc. +...................................................... 6,450
1,200 Cognos, Inc. +......................................................... 27,600
100 Corestaff, Inc. +...................................................... 4,475
700 FPA Medical Management, Inc. +......................................... 10,894
700 Physician Support Systems, Inc. +...................................... 15,837
200 Quintiles Transnational Corporation +.................................. 13,150
------
99,806
------
Energy - 7.2%
500 ENSCO International, Inc. +............................................ 16,250
1,500 Marine Drilling Companies, Inc. +...................................... 15,188
1,100 Nabors Industries, Inc. +.............................................. 17,875
800 Reading & Bates Corporation +.......................................... 17,700
400 Seacor Holdings, Inc. +................................................ 17,900
500 Seagull Energy Corporation +........................................... 12,500
------
97,413
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Berkeley Smaller Companies Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - (Continued)
Other - 2.1%
200 Planning Sciences International PLC, ADR +............................. 4,500
200 Siebel Systems, Inc. +................................................. 4,275
600 3-D Geophysical, Inc. +................................................ 6,450
200 Viasoft, Inc. +........................................................ 12,925
------
28,150
Financial Services - 1.9%
400 Compdent Corporation +................................................. $18,600
200 Triad Guaranty, Inc.................................................... 7,350
-----
25,950
------
Producer Durables - 1.7%
500 ADE Corporation +...................................................... 7,125
100 Boston Communications Group +.......................................... 1,650
200 JLG Industries, Inc.................................................... 14,850
------
23,625
Total Common Stock (Cost $962,718)..................................... 1,101,595
---------
Principal
Amount
_________
SHORT-TERM INVESTMENTS - 17.9%
$242,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/28/96 at
2.0%, (collateralized by U.S. Treasury Note,
5.92%, due 08/31/97, par value $242,000;
market value $249,755) (Cost $242,000)......................... 242,0000
--------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Berkeley Smaller Companies Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
(Note 2)
____________
TOTAL INVESTMENTS (COST $1,204,718*)................. 99.3% $1,343,595
OTHER ASSETS AND LIABILITIES (NET)................... 0.7 9,886
------ ----------
NET ASSETS........................................... 100.0% $1,353,481
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Non-income producing security
</TABLE>
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depositary Receipt
---------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - 98.0%
Energy - 21.4%
390 Chevron Corporation.................................................... $23,010
390 Exxon Corporation...................................................... 33,881
390 Mobil Corporation...................................................... 43,729
390 Royal Dutch Petroleum Company.......................................... 59,963
390 Schlumberger, Ltd...................................................... 32,857
390 Texaco, Inc. .......................................................... 32,711
------
226,151
-------
Consumer Discretionary - 20.3%
390 American Brands, Inc................................................... 17,696
780 Coca Cola Company...................................................... 38,123
390 Eastman Kodak Company.................................................. 30,322
390 McDonalds Corporation.................................................. 18,232
390 Philip Morris Companies, Inc........................................... 40,560
390 Procter & Gamble Company............................................... 35,344
390 Wal-Mart Stores, Inc................................................... 9,896
390 Walt Disney Company.................................................... 24,521
------
214,694
-------
Technology - 11.3%
390 Allied Signal, Inc..................................................... 22,279
390 Boeing Company......................................................... 33,979
390 Hewlett Packard Company................................................ 38,854
390 Motorola, Inc.......................................................... 24,521
------
119,633
-------
</TABLE>
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - (Continued)
Autos & Transportation - 9.2%
390 Burlington Northern Santa Fe........................................... $31,541
390 General Motors Corporation............................................. 20,426
390 Goodyear Tire and Rubber Company....................................... 18,818
390 Union Pacific Corporation.............................................. 27,251
------
98,036
------
Materials & Processing - 8.3%
390 Aluminum Company of America............................................ 22,376
390 Bethlehem Steel Corporation +.......................................... 4,631
390 DuPont (E.I.) DeNemours & Company...................................... 30,859
390 International Paper Company............................................ 14,381
390 Union Carbide Corporation.............................................. 15,503
------
87,750
------
Financial Services - 7.3%
390 American Express Company............................................... 17,404
390 J.P. Morgan & Company, Inc............................................. 33,004
585 Travelers Group, Inc................................................... 26,690
------
77,098
------
Utilities - 6.2%
390 Consolidated Edison Company of New York................................ 11,408
390 Duke Power Company..................................................... 19,987
390 Houston Industries, Inc................................................ 9,604
390 Pacific Gas & Electric Company......................................... 9,068
390 Union Electric Company................................................. 15,698
------
65,765
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments (Continued)
June 30, 1996 (Unaudited)
<S> <C>
Value
Shares (Note 2)
______ ________
COMMON STOCKS - (Continued)
Drugs & Health Care - 6.0%
780 Johnson & Johnson...................................................... $38,610
390 Merck & Company, Inc................................................... 25,204
------
63,814
------
Producer Durables - 5.7%
390 Caterpillar, Inc....................................................... 26,422
390 General Electric Company............................................... 33,735
------
60,157
------
Communications - 2.3%
390 AT&T Corporation....................................................... 24,180
------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $989,674*)................... 98.0% 1,037,278
OTHER ASSETS AND LIABILITIES......................... 2.0 21,399
------ ----------
NET ASSETS........................................... 100.0% $1,058,677
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Non-income producing security
</TABLE>
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. Organization and Business
The LPT Variable Insurance Series Trust (the "Trust") was organized under
the laws of the Commonwealth of Massachusetts on January 23, 1995, and is a
business entity commonly known as a "Massachusetts Business Trust". The Trust is
registered under the Investment Company Act of 1940, as amended, (the "1940
Act"), as an open-end series management investment company. The trust offers
eight managed investment portfolios (the "Portfolios") to the public only
through certain variable annuity contracts offered by London Pacific Life and
Annuity Company ("London Pacific"): the Salomon Money Market Portfolio (the
"Money Portfolio"); the Salomon U.S. Quality Bond Portfolio (the "Bond
Portfolio"); and the MAS Value, MFS Total Return, Strong International Stock,
Strong Growth, Berkeley Smaller Companies, and Lexington Corporate Leaders
Portfolios (the "Equity Portfolios").
2. Significant Accounting Policies
The following is a summary of significant accounting policies which are
in conformity with generally accepted accounting principles consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reported period. Actual results could differ from those estimates.
Security Valuation: Securities which are traded on a recognized exchange
(including securities traded through the National Market System) are valued at
the last sale price on the securities exchange on which such securities are
primarily traded, or, if there were no sales during the day, at the closing bid
price. Portfolio securities that are primarily traded on foreign exchanges are
generally valued at the most recent closing values of such securities on their
respective exchanges, except when an occurrence subsequent to the time a value
was so established is likely to have changed the value, then the fair value of
those Trustees or its delegates. Over-the-counter securities that are not traded
through the National Market System are valued on the basis of the bid price at
the close of business on each day. Short-term investments that mature in 60 days
or less are valued at amortized cost. Long-term debt securities are valued
by an independent pricing service approved by the Board of Trustees which
utilizes market quotations and transactions, quotations from dealers and
various relationships among securities in determining value. If not valued
by a pricing service, such securities are valued at prices obtained from
independent brokers. Investments with prices that cannot be readily obtained, if
any, are stated at fair value as determined in good faith under consistently
applied procedures established by and under the supervision of the Board of
Trustees. The investments of the Money Portfolio are valued utilizing the
amortized cost valuation method permitted in accordance with Rule 2a-7 under the
Investment Company Act of 1940. This method involves valuing a portfolio
security initially at its cost, and, thereafter, assuming a constant
amortization to maturity of any discount or premium. Futures contracts and
options are valued at market value or fair value using methods determined by the
Board of Trustees.
Repurchase Agreements: Each Portfolio may engage in Repurchase Agreement
transactions. Under the terms of a typical Repurchase Agreement, the Portfolio
through its custodian takes possession of an underlying debt obligation, subject
to an obligation of the seller to repurchase and the Portfolio to resell, the
obligation at an agreed-upon price and time, thereby determining the yield
during the Portfolio's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Portfolio's
holding period. The value of the collateral is at least equal at all times to
the total amount of the repurchase obligations, including interest. In the event
of counterparty default, the Portfolio has the right to use the collateral to
offset losses incurred. There is potential loss to the Portfolio in the event
the Portfolio is delayed or prevented from exercising its rights to dispose of
the collateral securities, including the risk of a possible decline in the value
of the underlying securities during the period while the Portfolio seeks to
assert its rights. Each Portfolio may enter into Repurchase Agreement only with
banks or dealers which, in the opinion of each Portfolio's Sub-advisor, based on
guidelines established by the Trust's Board of Trustees, are deemed
creditworthy.
Reverse Repurchase Agreements: All Portfolios, except the Money
Portfolio, may engage in reverse Repurchase Agreements. Reverse Repurchase
Agreements are the same as Repurchase Agreements to borrow short-term funds. The
Portfolio will maintain segregated accounts with the Trust's custodian
consisting of U.S. Government securities, cash or money market instruments that
at all times are in an amount equal to their obligations under reverse
Repurchase Agreements. Reverse Repurchase Agreements involve the risk that the
market value of the securities sold by a Portfolio may decline below the
repurchase price of the securities, and, if the proceeds from the reverse
Repurchase Agreement are invested in securities, that the market value of the
securities bought may decline below the repurchase price of the securities sold.
Option Contracts: All Portfolios, except the Money Portfolio, may
purchase and/or write put and call options on portfolio securities or foreign
currencies. The Portfolios may use options contracts to manage their exposure to
the stock and bond markets and to fluctuations in interest rates and currency
values. Writing puts and buying calls tend to increase the Portfolio's exposure
to the underlying instrument. Buying puts and writing calls tends to either
decrease the Portfolio's exposure to the underlying instrument, or to hedge
other Portfolio investments.
The risk associated with purchasing options is limited to the premium
originally paid. The risk in writing a covered call option is that the Portfolio
may forego the opportunity of profit or incur a loss if the market price of the
underlying security increases and the option is exercised. The risk in writing a
put option is that the Portfolio may incur a loss if the market price of the
underlying security decreases and the option is exercised. In addition, there is
a risk the Portfolio may not be able to enter into a closing transaction because
of an illiquid secondary market, or, for over-the-counter options, because of a
counter party's inability to perform.
Futures Contracts: All Portfolios, except the Money Portfolio, may engage
in futures transactions. The Portfolios may use futures contracts to manage
their exposure to the stock and bond markets and to fluctuations in interest
rates and currency values. Buying futures contracts tends to increase the
Portfolio's exposure to the underlying instrument. Selling futures contracts
tends to either decrease the Portfolio's exposure to the underlying instrument
or to hedge other fund investments.
There are several risks in connection with the use of futures contracts
as a hedging device. The change in the value of futures contracts primarily
corresponds with the value of their underlying instruments, which may not
correlate with the change in the value of the hedged instruments. In addition,
there is the risk the Portfolio may not be able to enter into a closing
transaction because of an illiquid secondary market.
Forward Foreign Currency Contracts: All Portfolios, except the Money
Portfolio, may enter into forward foreign currency contracts, whereby the
Portfolios agree to sell a specific currency at a specific price at a future
date in an attempt to hedge against fluctuations in the value of the underlying
currency of certain investment instruments. Forward foreign currency contracts
are valued at the daily exchange rate of the underlying currency. Gains or
losses on the purchase or sale of forward foreign currency contracts having the
same settlement date and broker are recognized on the date of offset, otherwise
gains or losses are recognized on the settlement date.
Foreign Currency Translation: The books and records of the Portfolios are
maintained in U.S. Dollars. Investment valuations, other assets and liabilities
initially expressed as foreign currencies are converted each business day into
U.S. dollars based upon current exchange rates. Purchase and sales of foreign
investments and income and expenses are converted into U.S. dollars based upon
exchange rates prevailing on the respective dates of such transactions. That
portion of unrealized gains or losses on investments due to fluctuations in
foreign currency exchange rates is not separately disclosed.
Security Transactions and Investment Income: Security transactions are
recorded on the trade date. Net realized gains and losses from security
transactions are recorded on the basis of identified cost. Interest income is
recorded on the accrual basis and consists of interest accrued, and, if
applicable, discount earned less premiums amortized. Dividend income is recorded
on the ex-dividend date.
Distributions to Shareholders: Dividends from net investment income are
declared daily and reinvested monthly for the Money Portfolio and are declared
and distributed annually for all other Portfolios. All Portfolios, with the
exception of the Money Portfolio, declare and distribute, if any, all net
realized capital gains at least annually.
Federal Income Taxes: The Trust treats each Portfolio as a separate
entity for Federal income tax purposes. Each Portfolio of the Trust intends to
qualify each year as a "regulated investment company" under Subchapter M of the
Internal Revenue Code of 1986, as amended. By so qualifying, each Portfolio will
not be subject to Federal income taxes to the extent it distributes all of its
taxable income and net realized gains for the tax year ending December 31. In
addition, by distributing during each calendar year substantially all of its net
investment income, capital gains, and certain other amounts, if any, each
Portfolio will not be subject to Federal excise tax. Therefore, no Federal
income tax provision is required. Withholding taxes on foreign dividend income
and gains have been paid or provided for in accordance with the applicable
country's tax rules and rates.
Expenses: The Trust accounts separately for assets, liabilities, and
operations of each Portfolio. Expenses directly attributed to a Portfolio are
charged to the Portfolio, while expenses which are attributable to more than one
Portfolio of the Trust are allocated among the respective Portfolios.
3. Investment Advisory, Sub-advisory, Administration Fees, and Other Related
Party Transactions
LPIMC Insurance Marketing Services ("LPIMC"), a wholly owned subsidiary
of London Pacific, serves as investment advisor to the Trust. Berkeley Capital
Management, a wholly owned subsidiary of the London Pacific Group, Ltd., and an
affiliate of London Pacific, serves as Sub-advisor to the Berkeley Smaller
Companies Portfolio, Miller, Anderson & Sherrerd, LLP, an indirect, wholly owned
subsidiary of the Morgan Stanley Group, Inc., serves as Sub-advisor to the MAS
Value Portfolio, Massachusetts Financial Services Company, a wholly owned
subsidiary of Sun Life Assurance Company of Canada, serves as Sub-advisor to the
MFS Total Return Portfolio, Salomon Brothers Asset Management, Inc., an
indirect, wholly owned subsidiary of Salomon, Inc., serves as Sub-advisor to the
Salomon U.S. Quality Bond and Salomon Money Market Portfolios, Strong Capital
Management, Inc., a privately held corporation, serves as Sub-advisor to the
Strong International Stock and Strong Growth Portfolios, and Lexington
Management Corporation, a wholly owned subsidiary of Lexington Global Asset
Managers, Inc., serves as Sub-advisor to the Lexington Corporate Leaders
Portfolio.
The Trust pays LPIMC a monthly fee in arrears based on a percentage of
the average daily net assets of each Portfolio during the month, out of which
LPIMC pays the Sub-advisor of each Portfolio a monthly fee in arrears at annual
rates as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Fees on Assets Fees on Assets
Fees on Between $25 Between $100 Fees on
Assets up to Million and Million and Assets
Name of Portfolio $25 Million $100 Million $500 Million Exceeding
$500 Million
_________________ ____________ ______________ ______________ _____________
MAS Value Portfolio
LPIMC .25% .25% .25% .25%
Sub-advisor .625% .375% .25% .20%
----- ----- ---- ----
Total Fees Paid to
LPIMC * .875% .625% .50% .45%
===== ===== ==== ====
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Fees on Assets
Fees on Between $200 Fees on Assets
Assets up to Million and Exceeding $1.3
Name of Portfolio $200 Million $1.3 Billion Billion
----------------- ------------ ------------ --------------
MFS Total Return Portfolio
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
---- ---- ----
Total Fees Paid to .75% .70% .65%
LPIMC * ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Fees on Assets Fees on Assets
Fees on Between $50 Between $150 Fees on
Assets up to Million and Million and Assets
Name of Portfolio $50 Million $150 Million $300 Million Exceeding
$300 Million
----------------- ------------- -------------- ------------- -------------
Salomon U.S. Quality Bond
Portfolio
LPIMC .25% .25% .25% 25%
Sub-advisor .30% .275% .25% .20%
---- ----- ---- ----
Total Fees Paid to .55% .525% .50% .45%
LPIMC * ==== ===== ==== ====
Salomon Money Market Portfolio
LPIMC .25% .25% .25% .25%
Sub-advisor .20% .175% .15% .10%
---- ----- ---- ----
Total Fees Paid to .45% .425% .40% .35%
LPIMC * ==== ===== ==== ====
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Fees on Assets
Fees on Assets Between $150 Fees on Assets
up to $150 Million and Exceeding $500
Name of Portfolio Million $500 Million Million
----------------- ------- ------------- ---------------
Strong International Stock
Portfolio and Strong Growth
Portfolio
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
---- ---- ----
Total Fees Paid to .75% .70% .65%
LPIMC * ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Fees on Assets Fees on Assets
up to $10 Exceeding $10
Name of Portfolio Million Million
----------------- -------------- --------------
Berkeley Smaller Company
Portfolio
LPIMC .25% .25%
Sub-advisor .75% .50%
---- ----
Total Fees Paid to 1.00% .75%
LPIMC * ===== ====
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Fees on Assets
Fees on Assets Between $10 Fees on Assets
up to $10 Million and Exceeding $100
Name of Portfolio Million $100 Million Million
----------------- ------- --------- -------
Lexington Corporate Leaders
Portfolio
LPIMC .25% .25% .25%
Sub-advisor .40% .35% .30%
---- ---- ----
Total Fees Paid to .65% .60% .55%
LPIMC * ==== ==== ====
</TABLE>
* Fees paid to LPIMC include fees paid for services
rendered by LPIMC to the Portfolio and those fees that
LPIMC will in turn pay to the Sub-advisor.
LPIMC and certain Sub-advisors have voluntarily agreed to waive a portion
of the fees payable to them during the first six months of operations. Any fee
waivers by a Sub-advisor are passed through to the Portfolios. The Trust and
LPIMC also entered into an Administrative Agreement with State Street Bank and
Trust Company ("SSB&T"), a Massachusetts Trust Company, whereby SSB&T performs
administrative services for each of the Portfolios and is entitled to receive an
administration fee and certain out-of-pocket expenses. Each Portfolio is
responsible for the payment of the administrative fee to SSB&T.
In the event normal operating expenses of each Portfolio, excluding
brokerage commissions, but including the advisory fee, exceed certain voluntary
expense limitations, based on average net assets (MAS Value Portfolio - 1.29%;
MFS Total Return Portfolio - 1.29%; Salomon U.S. Quality Bond Portfolio - 0.99%;
Salomon Money Market Portfolio - 0.89%; Strong International Stock Portfolio
- - 1.49%; Strong Growth - 1.29%; Berkeley Smaller Companies Portfolio - 1.39%;
and Lexington Corporate Leaders Portfolio - 1.29%), London Pacific has agreed,
through December 31, 1997, to reimburse each Portfolio for expenses in excess
of the stated expense limitations. The expense limitations may be removed or
revised after December 31, 1997, without prior notice to existing shareholders.
For the five months ended June 30, 1996, London Pacific voluntarily agreed
to reimburse the Portfolios as follows:
Name of Portfolio Reimbursement
- ----------------- -------------
MAS Value Portfolio $39,918
MFS Total Return Portfolio 38,943
Salomon U.S. Quality Bond Portfolio 40,191
Salomon Money Market Portfolio 40,418
Strong International Stock Portfolio 43,796
Strong Growth Portfolio 40,552
Berkeley Smaller Companies Portfolio 37,740
Lexington Corporate Leaders Portfolio 40,576
The Trust pays no salaries or compensation to any of its officers. Trustees
who are not directors, officers, or employees of the Trust or any investment
advisor are reimbursed for their travel expenses in attending meetings of the
Trustees, and receive fees for each trust meeting attended. Such amounts are
paid by the Trust.
4. Purchases and Sales of Securities
The cost of purchases and proceeds from sales of investment securities,
excluding short-term investments, for the five months ended June 30, 1996, were
as follows:
<TABLE>
<CAPTION>
Purchases Sales
-------------------------------------------------------
Portfolio Other Government Other Government
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MAS Value Portfolio $1,119,453 $0 $212,949 $0
MFS Total Return Portfolio 663,327 685,286 72,340 333,949
Salomon U.S. Quality Bond Portfolio 56,808 2,831,147 0 1,705,965
Strong International Stock Portfolio 945,243 0 181,931 0
Strong Growth Portfolio 2,752,915 0 1,711,311 0
Berkeley Smaller Companies Portfolio 2,964,189 0 2,253,971 0
Lexington Corporate Leaders Portfolio 989,674 0 0 0
</TABLE>
At June 30, 1996, aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there was an excess of
tax cost over value were as follows:
Tax Basis
---------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Net Unrealized
Unrealized Unrealized Appreciation
Portfolio Appreciation Depreciation (Depreciation) Cost
- ------------------------------------ ------------ ------------ -------------- ---------
MAS Value Portfolio $53,876 $24,534 $29,342 $1,046,733
MFS Total Return Portfolio 36,643 8,923 27,720 1,013,568
Salomon U.S. Quality Bond Portfolio 1,620 10,867 (9,247) 1,274,565
Strong International Stock Portfolio 126,805 23,906 102,899 1,076,646
Strong Growth Portfolio 144,970 18,891 126,079 1,122,684
Berkeley Smaller Companies Portfolio 165,288 26,411 138,877 1,204,718
Lexington Corporate Leaders Portfolio 62,405 14,801 47,604 989,674
</TABLE>
5. Shares of Beneficial Interest
The Trust's Declaration of Trust authorizes the Trustees to issue an
unlimited number of shares of beneficial interest for the Portfolios, each with
a $.01 par value.
The Salomon Money Market Portfolio has sold shares, issued reinvestment of
dividends and redeemed shares only at a constant net asset value of $1.00 per
share, the number of shares represented by such sales, reinvestments and
redemptions are the same as the dollar amounts shown for such transactions.
London Pacific, through its LPLA Separate Account One, owns of record 100%
of each Portfolio's outstanding shares. Changes in shares of beneficial interest
were as follows:
Shares
and
Amount
--------------
Salomon Money Market Portfolio
Sold $1,998,296
Issued as reinvestment
of dividends 18,852
Redeemed (939,258)
---------
Net increase $1,077,890
==========
Shares Amount
-------- ---------
MAS Value Fund
Sold 106,716 $1,070,326
Issued as reinvestment
of dividends 127 1,290
Redeemed (1,251) (12,692)
-------- --------
Net increase 105,592 $1,058,924
======= ==========
Shares Amount
---------- -----------
MFS Total Return Portfolio
Sold 107,242 $1,074,251
Issued as reinvestment
of dividends 123 1,234
Redeemed 0 0
------- ----------
Net increase 107,365 $1,075,485
======= ==========
Salomon U.S. Quality Bond Portfolio
Sold 136,117 $1,352,159
Issued as reinvestment
of dividends 130 1,295
Redeemed (263) (2,547)
------- ----------
Net increase 135,984 $1,350,907
======= ==========
Strong International Stock Portfolio
Sold 110,437 $1,112,550
Issued as reinvestment
of dividends 27 272
Redeemed (3,104) (31,735)
------- ----------
Net increase 107,360 $1,081,087
======= ==========
Strong Growth Portfolio
Sold 108,465 $1,104,573
Issued as reinvestment
of dividends 513 5,249
Redeemed (592) (6,346)
------- ----------
Net increase 108,386 $1,103,476
======= ==========
Berkeley Smaller Companies Portfolio
Sold 110,481 $1,130,892
Issued as reinvestment
of dividends 83 845
Redeemed (604) (6,346)
------- ----------
Net increase 109,960 $1,125,391
======= ==========
Shares Amount
------- -------
Lexington Corporate Leaders Portfolio
Sold 100,979 $1,009,968
Issued as reinvestment
of dividends 150 1,552
Redeemed (631) (6,346)
------- ----------
Net increase 100,498 $1,005,174
======= ==========
All of the Portfolios commenced operations on January 31, 1996.
6. Foreign Securities
All Portfolios may invest in securities of foreign companies and foreign
governments. There are certain risks involved in investing in foreign securities
that are in addition to the usual risks inherent in domestic investments. These
risks include those resulting from future adverse political and economic
developments, reduced availability of public information concerning issues,
lower standards of accounting, auditing, and financial reporting, less market
liquidity, greater volatility of prices, and a possible imposition of currency
exchange blockages or restrictions on securities, transactions, or transfer of
assets.
