LONDON PACIFIC LIFE & ANNUITY COMPANY
LPT VARIABLE INSURANCE SERIES TRUST
REGENCY SERIES
FLEXIBLE CONTRIBUTION DEFERRED VARIABLE ANNUITY
SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED JUNE 30, 1997
This Semi-Annual Report has been prepared to provide information to the owners
of London Pacific Life & Annuity Company's Regency Series Variable Annuity. If
it is used for any other purpose, it must be accompanied or preceded by a
current Regency Series prospectus, which discloses any charges and other
important information about LPLA Separate Account One, together with the current
prospectus for the LPT Variable Insurance Series Trust.
CONTENTS
Message from the President
LPT VARIABLE INSURANCE SERIES TRUST:
Individual Portfolio Review
Statements of Assets & Liabilities
Statements of Operations
Statements of Changes in Net Assets
Financial Highlights
Schedules of Investments
Notes to Financial Statements
MESSAGE FROM THE PRESIDENT
Dear Contract Owner:
We are pleased to provide you with the Semi-Annual Report for LPT Variable
Insurance Series Trust for the six-month period ending June 30, 1997. Thank you
for investing with us!
The Trust's year-to-date performance* has been very good. Most of the Portfolios
performed very well as compared to their indexes and the addition of two new
sub-advisors in May was both timely and extremely well received by investors.
Effective May 1, 1997, Harris Associates, L.P. and Robertson Stephens & Company
Investment Management, L.P. replaced Miller, Anderson & Sherrerd LLP and
Berkeley Capital Management, respectively, as sub-advisors. The Harris Value
Portfolio was up 14.33% as compared to the Lipper Growth & Income Index, which
was up 15.93%. The Robertson Stephens Diversified Growth Portfolio was down
6.53% as compared to the Russell 2000 Small Company Index, which was up 10.17%.
It is interesting to note that the Robertson Stephens Diversified Growth
Portfolio and the Harris Associates Value Portfolio were up 19.70% and 9.09%,
respectively, for the two month period ended June 30. Needless to say, we
welcome and appreciate the efforts that John Wallace has turned in with the
Robertson Stephens Portfolio and Robert Sanborn and Floyd Bellman have given to
the Harris Associates Portfolio.
MFS Total Return Portfolio was up 11.38% for the period as compared to the
Lipper Balanced Portfolio Index*, which was up 11.15%. Salomon U.S. Quality Bond
Portfolio was up 2.65% which was even with the Lipper Government Intermediate
Index*. Strong Growth Portfolio was up 12.42% as compared to the Russell 2000
Stock Index*, which was up 10.17%. Strong International Stock Portfolio was up
7.75% as compared o the Morgan Stanley EAFE Index*, which was up 11.20%. The
best performing fund, Lexington Corporate Leaders Portfolio, was up 18.62% as
compared to the Lipper Growth & Income Index*, which was up 15.93%.
With the markets meteoric rise, the top question I still receive today is -
"what is the market going to do"? My answer is always the same. The market WILL
go up, it WILL go down and it WILL go sideways. A simple answer do a hard
question, but none-the-less accurate. Therefore, as we have seen little downs
and sideways, invest wisely and always pay careful attention to your
investments.
Furthermore, with the appreciable gains in 1997, we hope that you benefited from
the rising market and from the investment options in the LPT Variable Insurance
Series Trust. There are four important items to remember as we go into the
second half of the year - keep in touch with your financial advisor, diversify
your assets, volatility in whatever market cycle you happen to find yourself in,
and invest for the long term.
Thank you for selecting the Regency Variable Annuity. We appreciate the
confidence that you have placed in us, and we look forward to serving your
investment needs for the future.
MARK E. PRILLAMAN
President
LPT Variable Insurance Series Trust
*Past performance of unmanaged indexes or of the LPT Variable Insurance Series
Trust Portfolios is no guarantee of future results. Investment return and
principal value of the investment will fluctuate so that the investor's shares,
whim redeemed may be worth more or less than their original cost. Performance
numbers are net of all portfolio operating expenses, however they do not reflect
the deduction of insurance charges against assets.
HARRIS ASSOCIATES VALUE PORTFOLIO
INVESTMENT SUB-ADVISOR
Harris Associates L.P.
ABOUT THE PORTFOLIO
Invests primarily in equity securities that are believed to have long-term
capital appreciation potential.
PERFORMANCE
Net total return for the six months ended June 30, 1997:
Harris Value Portfolio 14.33%*
S&P 500 Index 20.61%
Lipper Growth &
Income Index 15.93%
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index") is an
unmanaged index of 500 leading stocks. Results for the S&P 500 Index do not
reflect the expenses and investment management fees incurred by the Portfolio.
The Lipper Growth & Income Index is a nonweighted index of 139 funds investing
in stocks and corporate and government bonds. Results for the Lipper Growth &
Income Index do not reflect expenses and investment management fees incurred by
the Portfolio.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
when redeemed may be worth more or less than their original cost. Performance
numbers are net of all Portfolio operating expenses, but do not reflect the
deduction o insurance charges.
* During the period noted, London Pacific Life & Annuity Company voluntarily
agreed to reimburse certain operating expenses of the Portfolio. In the absence
of the expense reimbursement, total return would have been lower.
The Harris Associates Value Portfolio earned a total return of 14.33% for the
first six months ended June 30, 1997. Comparatively, the returns for the S&P 500
and Lipper Growth and Income Index were 20.61% and 15.93% respectively.
Effective May 1, we replaced Miller, Anderson & Sherrerd as the Portfolio's
sub-advisor. While not outperforming the benchmark indicies during the period,
substantial progress was made in restructuring the Portfolio's composition. We
believe the Portfolio's performance will be enhanced by being concentrated in a
fewer number of names.
During the first two months of management by us, your Portfolio changed in
composition to reflect a different approach to the management of your monies.
Our approach and commitment to value investing has five investment guidelines to
achieve the Portfolio's investment objectives:
BUY STOCKS SELLING AT A SIGNIFICANT DISCOUNT TO THEIR TRUE UNDERLYING VALUE.
We typically look to buy a stock trading at a price that is less than 60-75% of
its underlying value.
INVEST IN COMPANIES WITH OWNER-ORIENTED MANAGEMENT. We look for managers
whose compensation and personal wealth are tied to the value of the business.
THINK INDEPENDENTLY. We utilize our own in-house research; we do not rely
on Wall Street.
DO NOT OVER-DIVERSIFY. We build focused portfolios so that our best ideas
can make a meaningful impact on investment performance.
INVEST EFFICIENTLY. We invest for the long-term, so we generally expect to
own a stock at least 2-3 years.
Stocks turning in strong performances during the period tended to fall into
one of the following categories: somewhat controversial, participating in an
industry consolidation, undergoing a major change within the company or just
plain undervalued.
Falling into the first category would be Philip Morris, US West Media, and
Polaroid.
In the second category was AON Corp. and PartnerRe LTD.
In the third category was James River and Union Texas Petroleum Holdings.
James River is combining with Fort Howard to create a strong and diversified
competitor in the paper products industry. Union Texas, an under managed company
historically, has a new management team.
Those companies which market participants began to recognize as undervalued
were the portfolio's top performing stocks, Borg-Warner Automotive Co. and
others in the auto motive and truck category, Cumming Engine, Eaton and
Goodyear. Catellus also did well as improving investor confidence in the rebound
prices for California commercial real estate gain momentum.
Stocks that underperformed were mostly positive for the period. The
exceptions were US Industries and First Brands.
Looking to the future, the majority of the Portfolio's restructuring is
behind us. While the market continues to have a bias toward large cap growth
stocks, we think that is where the greatest risk in the market lies. On the
other hand, prudent stock picking and a value focus could prove to be less
volatile in the months ahead as the market digests its strong performance during
the first half.
$10,000 Hypothetical Investment since inception February, 9, 1996
- -----------------------------------------------------------------
Y | $13,920
|
|
X | $ 13,764
|
|
$10,000 Z | $ 13,330
_________________________________________________________________
2/9/96 6/30/97
X - Harris Value Portfolio
Y - S & P 500 Index
Z - Lipper Growth & Income Index
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the MAS Value Portfolio, the S&P 500 Index, and the Lipper
Growth & Income Index on February 9, 1996, the inception date of the Portfolio.
The figures for the Portfolio, the S&P 500 Index and the Lipper Growth & Income
Index include reinvestment of dividends.
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/97
6 Month 1 Year Since Inception
------- ------ ---------------
(February 9, 1996)
Harris Value Portfolio 14.33% 32.68% 25.86%
S&P 500 Index 20.61% 34.70% 26.88%
Lipper Growth & Income Index 15.93% 29.00% 22.99%
MFS TOTAL RETURN PORTFOLIO
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 capital and income, consistent with the prudent
employment of capital.
PERFORMANCE
Net total return for the six months ended June 30, 1997:
MFS Total Return
Portfolio 11.38%*
Lehman Brothers
Aggregate Bond Index 3.09%
Lipper Balanced
Fund Index 11.15%
The Lehman Brothers Aggregate Bond Index is an unmanaged index of average yield
U.S. investment grade bonds. Results for the Lehman Brothers Aggregate Bond
Index do not reflect the expenses and investment management fees incurred by the
portfolio.
The Lipper Balanced Fund Index is a nonweighted index of 210 funds investing in
stocks and corporate and government bonds. Results for the Lipper Balanced
FundIndex do not reflect expenses and investment management fees incurred by the
Portfolio.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
when redeemed may be worth more or less than their original cost. Performance
numbers are net of all Portfolio operating expenses, but do not reflect the
deduction of insurance charges.
* During the period noted, London Pacific Life & Annuity Company voluntarily
agreed to reimburse certain operating expenses of the Portfolio. In the absence
of the expense reimbursement, total return would have been lower.
For the six months ended June 30, 1997, the MFS Total Return Portfolio
earned a total return of 11.38%. This compares to the average balanced mutual
fund which earned a 11.15% return during the period, as measured by Lipper
Analytical Services.. The Portfolio's performance easily exceeded the 3.09%
return of the Lehman Brothers Aggregate Bond Index during the period.
The U.S. economy continues to provide a great tailwind for corporate profit
growth and stock price appreciation. We have experienced a solid increase in
demand with very little inflation. After raising interest rates in March, the
Federal Reserve appears to be on hold and bond prices have risen.
Our primary concern today regarding the economy is the strength of the U.S.
dollar. We believe the continuing strength of the dollar should serve to dampen
the U.S. economy in the near future. Conversely, we feel that the rise in the
dollar's value over the past year should help to improve the competitiveness of
many foreign corporations, which could serve to accelerate foreign economies.
Our allocations remain conservative. At the end of June, 57% of the Portfolio
was invested in stocks, preferred stocks, and convertible bonds. We generally
consider a 60% stock weighting neutral and anything over 65% aggressive. We have
been maintaining this conservative equity posture for some time because, in our
view, equities are not cheap by historical standards.
In selecting stocks for the Portfolio, we prefer to own companies in which we
anticipate stable earnings growth. We also like to pay a price for these
securities (as measured by price-to-earnings ratios, dividend yields, and
price-to-book ratios) that is below the average for the market. We have found
these characteristics in the financial
services and industrial goods and services sectors, both of which did well
during the period. Both sectors have reported solid earnings while consolidation
activity continues to boost values of financial services stocks.
We continue to be under weighted in the technology and the consumer
nondurable goods sector. While we feel there are many fine companies in both of
these sectors, we do not think their valuations have been compelling in recent
months.
The performance of aerospace and defense stocks has been disappointing, in
part because, after years of consolidation, the market is beginning to fear that
the industry is in for a period of slow growth. However, we still find this
sector attractive because we believe these companies can continue to produce
solid earnings over the long term. Another disappointment came in the utility
sector, where the pace of deregulation continues to pick up, bringing
uncertainty and placing lower values on the sector.
Looking ahead, we see a modest growth rate in the U.S. economy over the next
twelve months. Over the near term, however, we believe the Federal Reserve Board
will keep a close watch on wage inflation and general economic activity and may
raise interest rates again.
Our bond holdings represents approximately 33% of the Portfolio, with
two-thirds in corporate and one-third in Treasuries. The duration, or interest
rate sensitivity, of the bond holdings has been approximately 5.4 years over the
period.
Given where equity valuations are today, we feel comfortable with our asset
allocation. However, should the stock market correct, we would be looking to buy
additional stocks.
$10,000 Hypothetical Investment since inception February, 9, 1996
- -----------------------------------------------------------------
Y | $10,621
|
|
X | $12,190
|
|
$10,000 Z | $12,230
_________________________________________________________________
2/9/96 6/30/97
X - MFS Value Portfolio
Y - Lehman Brothers Aggregate Bond Index
Z - Lipper Balanced Fund Index
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the MFS Total Return , the Lehman Brothers Aggregate Bond
Index, and the Lipper Balanced Fund Index on February 9, 1996, the inception
date of the Portfolio. The figures for the Portfolio, the Lehman Brothers
Aggregate Bond Index and the Lipper Balanced Fund Index include reinvestment of
dividends.
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/97
6 Month 1 Year Since Inception
------- ------ ---------------
(February 9, 1996)
MFS Total Return Portfolio 11.38% 20.00% 15.60%
Lehman Brothers Aggregate Bond Index 3.09% 8.15% 4.43%
Lipper Balanced Fund Index 11.15 20.42% 15.32%
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 six months ended June 30, 1997:
Salomon U.S. Quality
Bond Portfolio 2.65%*
Lipper Government
Intermediate Bond Index 2.65%
The Lipper Government Intermediate Bond Index is a nonweighted index of 139
funds investing in stocks and corporate and government bonds. Results for
the Lipper Government Intermediate Bond Index do not reflect expenses and
investment management fees incurred by the Portfolio.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
when redeemed may be worth more or less than their original cost. Performance
numbers are net of all Portfolio operating expenses, but do not reflect the
deduction o insurance charges.
* During the period noted, London Pacific Life & Annuity Company voluntarily
agreed to reimburse certain operating expenses of the Portfolio. In the absence
of the expense reimbursement, total return would be lower.
The Salomon U.S. Quality Bond Portfolio earned a total return of 2.65% for
the six months ended June 30, 1997, consistent with the return of the average
mutual fund investing in intermediate term government securities, as measured by
the Lipper Government Intermediate Bond Index.
The first half of 1997 was a turbulent period for the U.S. financial markets.
Economic growth surged in the first quarter, forcing the Federal Reserve Board
to raise the Federal Funds target rate 25 basis points to 5.5 percent in March.
The move marked the first tightening in monetary policy in more than two years.
In the second quarter, with the economy showing almost no signs of inflation,
and the Fed remaining on the sidelines, interest rates fell 30-40 basis points
across the yield curve. Although, most believe the Fed is content for now, many
market participants speculate that wage pressures will boost inflation and the
chances for a Fed tightening later this year.
For the six month period ending June 30, 1997, the Portfolio continued to
overweight mortgage backed securities and underweight Treasuries. Over the
period, mortgage backed securities outperformed Treasuries supported by the
threat of higher rates
We remained defensive believing that the U.S. economy was not weakening,
but pausing. First half GDP growth is likely to be close to 4%.
Our outlook for the U.S. fixed income markets remain cautious. The underlying
fundamentals for the consumer; high confidence levels, strong disposable income
growth, and low unemployment, remain supportive, suggesting a snap-back in
consumer activity over the balance of this year.
$10,000 Hypothetical Investment since inception February, 9, 1996
- -----------------------------------------------------------------
Y | $10,504
|
|
X | $10,498
|
|
$10,000 |
_________________________________________________________________
2/9/96 6/30/97
X - Salomon U.S. Quality Bond Portfolio
Y - Lipper Government Intermediate Bond Index
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Salomon U.S. Quality Bond Portfolio and the Lipper
Government Intermediate Bond Index on February 9, 1996, the inception date of
the Portfolio. The figures for the Portfolio and the Lipper Government
Intermediate Bond Index include reinvestment of dividends.
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/97
6 Month 1 Year Since Inception
------- ------ ---------------
(February 9, 1996)
Salomon U.S. Quality Bond Portfolio 2.65% 7.19% 3.56%
Lipper Government Intermediate Bond 2.65% 6.91% 3.60%
Index
STRONG INTERNATIONAL STOCK PORTFOLIO
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 six months ended June 30, 1997:
Strong International
Stock Portfolio 7.75%*
Morgan Stanley
EAFE Index 11.20%
Lipper International
Fund Index 13.99%
The Morgan Stanley Europe, Asia, Far East Index is an unmanaged index of leading
international stocks. Results for the Morgan Stanley EAFE Index do not reflect
the expenses and investment management fees incurred by the Portfolio.
The Lipper International Fund Index is a nonweighted index of 115 funds invest
assets in securities whose primary markets are outside the United States.
Results for the Index not reflect expenses and investment management fees
incurred by the Portfolio.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
when redeemed may be worth more or less than their original cost. Performance
numbers are net of all Portfolio operating expenses, but do not reflect the
deduction o insurance charges.
* During the period noted, London Pacific Life & Annuity Company voluntarily
agreed to reimburse certain operating expenses of the Portfolio. In the absence
of the expense reimbursement, total return would have been lower.
The Strong International Stock Portfolio earned a total return of 7.75% for
the six months ended June 30, 1997 compared to the total return during the same
period for the Morgan Stanley Europe, Asia, Far East Index which was 11.20%.
Lipper Analytical Services set the total return for the average mutual fund
investing in foreign stocks at 13.99% during the same period. The Portfolio's
performance reflects its underweighting in Europe.
International equity markets for the first half of 1997 saw two very different
quarters, especially with respect to Asian markets. In the first quarter, Asian
markets, both developed and emerging, lost significant ground. These setbacks
stemmed from economic slowdown, concerns about a perceived loss of
competitiveness, and political worries. The beleaguered Japanese market suffered
from a disappointing economic recovery stemming from bureaucratic inertia in
both corporate and governmental sectors.
In the second quarter, international markets finally delivered the solid
overall performance we had been expecting. Though the overall index was still
unable to match the superheated U.S. market, many individual markets posted
strong gains.
The major story of the second quarter was Japan, where a recovery in
industrial production and a slightly stronger yen has
finally brought the market back to life. The stronger yen also triggered a
turnaround in Korea, and the Hong Kong market posted strong gains in the runup
to its handover to China.
In general, emerging markets in eastern Europe and Latin America have been
strong, as have developed markets in Europe. European markets were led by solid
gains in Switzerland, Netherlands, and Spain. These gains have been driven
primarily by the beneficial effect on the European export sector of a strong
dollar, which has peaked against the yen but continues to rise against the
German mark.
In Europe the ongoing development of the equity culture should continue to
drive stock price companies that exhibit signs of restructuring and of improving
profitability and returns to shareholders. On the other hand, political
developments in France show that the old scientist tendency towards state
interference is not entirely a thing of the past. The road to currency union and
macroeconomics convergence continues to prove a long and bumpy one.
Japan could again surprise on the upside as the economy enjoys a belated
recovery and a stabilizing yen. We also remain positive toward Australia and New
Zealand.
$10,000 Hypothetical Investment since inception February, 9, 1996
- -----------------------------------------------------------------
Z | $12,744
|
|
Y | $11,728
|
|
$10,000 X | $11,395
_________________________________________________________________
2/9/96 6/30/97
X - Strong International Stock Portfolio
Y - Morgan Stanley EAFE Index
Z - Lipper International Index
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Strong International Stock Portfolio, the Morgan Stanley
EAFE Index, and the Lipper International Index on February 9, 1996, the
inception date of the Portfolio. The figures for the Portfolio, Morgan Stanley
EAFE Index and the Lipper International Index include reinvestment of dividends.
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/97
6 Month 1 Year Since Inception
------- ------ ---------------
(February 9, 1996)
Strong International Stock Portfolio 7.75% 1.80% 9.86%
Morgan Stanley EAFE Index 11.20% 12.84% 12.16%
Lipper International Index 13.99% 20.01% 19.07%
STRONG GROWTH PORTFOLIO
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 six months ended June 30, 1997:
Strong International
Stock Portfolio 12.42%*
Russell 2000
Company Index 10.17%
S&P 500 Index 20.61%
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index") is an
unmanaged index of 500 leading stocks. Results for the S&P 500 Index do not
reflect the expenses and investment management fees incurred by the Portfolio.
The Russell 2000 Small Company Index is an unmanaged index of 2000 small company
stocks. Results for the Russell 2000 Small Company Index do not reflect the
expenses and investment management fees incurred by the Portfolio.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
when redeemed may be worth more or less than their original cost. Performance
numbers are net of all Portfolio operating expenses, but do not reflect the
deduction o insurance charges.
* During the period noted, London Pacific Life & 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.
Following a near-10% correction in March, the U.S. equity markets were wildly
exuberant in the second quarter, resulting in one of the most powerful rallies
in decades, thanks to nearly ideal investment conditions, namely, moderate
economic growth, subdued inflation, and strong corporate earnings.
Propelled by reports of moderate, non-inflationary growth and good corporate
earnings gains, stock prices continued their two-year advance into February. As
the economy began to show signs of heating up and Fed Chairman Greenspan
signaled his intention to raise short-term interest rates, stocks began a steady
retreat in March, culminating in the share sell-off at the end of the first
quarter. As the quarter progressed, economic reports signaled a slowdown from
the first quarter's rapid growth pace, and inflation remained in check.
Corporate earnings reports came through with solid double-digit growth, and the
market rebounded strongly from the April lows, rising more than 20% in May and
June.
Once again this year, the market advance has been led by the largest growth
stocks. The S&P 500
index of large company stocks returned an impressive 20.61% in the first half.
Despite a broadening of the advance in May and June mid-cap and small-cap stocks
lagged, with the Russell 2000 index of small companies returning 10.17%. The
Strong Growth Portfolio returned 12.42%, in line with the returns of small and
mid-cap growth stocks.
When it appeared that the Fed would not raise interest rates any further, we
deployed our cash reserves and boosted the Portfolio's weightings in
higher-growth technology, commercial services, and health care stocks. Financial
stocks were pared back after their big run-up in the first quarter. Basic
materials and utilities were also cut back.
Going forward, the market should continue to do well, provided that corporate
earnings remain positive and inflation is subdued. Aside from these risks, the
only other real threat to the market would be some unforeseen international
crisis. We believe that we are in an ideal environment for growth stocks, and
the market looks healthy now that there is some evidence of performance
broadening out to smaller-cap stocks.
$10,000 Hypothetical Investment since inception February, 9, 1996
- -----------------------------------------------------------------
Z | $13,920
|
|
X | $13,520
|
|
$10,000 Y | $12,497
_________________________________________________________________
2/9/96 6/30/97
X - Strong Growth Portfolio
Y - Russell 2000 Small Company Index
Z - S&P 500 Index
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Strong Growth Portfolio, Russell 2000 Small Company
Index, and the S&P 500 Index on February 9, 1996, the inception date of the
Portfolio. The figures for the Portfolio, Russell 2000 Small Company Index and
the S&P 500 Index include reinvestment of dividends.
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/97
6 Month 1 Year Since Inception
------- ------ ---------------
(February 9, 1996)
Strong Growth Portfolio 12.42% 16.98% 24.25%
Russell 2000 Small Company Index 10.17% 16.21% 17.41%
S&P 500 Index 20.61% 34.70% 26.88%
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
INVESTMENT SUB-ADVISOR
Robertson Stephens & Company
Investment Management, L.P.
ABOUT THE PORTFOLIO
Invests in securities broadly diversified over industry sectors by focusing on
small and mid-cap companies expected to provide long-term capital appreciation.
PERFORMANCE
Net total return for the six months ended June 30, 1997:
Robertson Stephens
Diversified Growth -6.53%*
Russell 2000 Small
Company Index 10.17%
S&P 500 Index 20.61%
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index") is an
unmanaged index of 500 leading stocks. Results for the S&P 500 Index do not
reflect the expenses and investment management fees incurred by the Portfolio.
The Russell 2000 Small Company Index is an unmanaged index of 2000 small company
stocks. Results for the Russell 2000 Small Company Index do not reflect the
expenses and investment management fees incurred by the Portfolio.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
when redeemed may be worth more or less than their original cost. Performance
numbers are net of all Portfolio operating expenses, but do not reflect the
deduction o insurance charges.
* During the period noted, London Pacific Life & 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 six month period ending June 30, 1997, the Robertson Stephens
Diversified Growth Portfolio total return was -6.53% compared to the returns of
its two benchmark indexes: the Russell 2000 at 10.17% and the Standard and
Poor's 500 at 20.61%. Effective May 1, 1997, we replaced Berkeley Capital
Management as the Portfolio's sub-advisor. We immediately began restructuring
the portfolio and believe performance will improve as a result of these changes.
Since May 1, 1997, the net asset value per share of the Portfolio has
increased from $6.70 on April 30 to $8.02 on June 30, a 19.7% increase.
While the small-cap sector rallied in May and June, large-cap, liquid stocks
continue to lead the market higher. We remain focused on the small and mid-cap
sector, looking for companies in which some kind of a growth catalyst will drive
earnings and valuations higher.
Despite volatility, we remain committed to the Technology sector (23.8% of
the Portfolio). Companies continue to focus on ways to enhance productivity.
This capital spending is benefitting both the PC and software industries.
Robertson Stephens maintains our commitment to the Energy Services sector (
14% of the Portfolio). The Energy Services sector has been out of favor for most
of the 1980's and 1990's, creating attractive valuations compared to many other
market sectors. Additionally, the large integrated oil companies continue to
increase their capital spending and exploration programs. Advancements in
drilling and exploration technology have helped to expand profit margins for
exploration companies. Finally, the pickup in exploration activity has also
pumped consolidation, creating the opportunity for takeover premium in certain
stocks.
$10,000 Hypothetical Investment since inception February, 9, 1996
- -----------------------------------------------------------------
Z | $13,920
|
|
X | $12,497
|
|
$10,000 Y | $9,574
_________________________________________________________________
2/9/96 6/30/97
X - Robertson Stephens Diversified Growth Portfolio
Y - Russell 2000 Small Company Index
Z - S&P 500 Index
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Robertson Stephens Diversified Growth Portfolio, Russell
2000 Small Company Index, and the S&P 500 Index on February 9, 1996, the
inception date of the Portfolio. The figures for the Portfolio, Russell 2000
Small Company Index and the S&P 500 Index include reinvestment of dividends.
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/97
6 Month 1 Year Since Inception
------- ------ ---------------
(February 9, 1996)
Robertson Stephens Diversified Growth -6.53% -15.02% -3.09%
Portfolio
Russell 2000 Small Company Index 10.17% 16.21% 17.41%
S&P 500 Index 20.61% 34.70% 26.88%
LEXINGTON CORPORATE LEADERS PORTFOLIO
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 six months ended June 30, 1997:
Lexington Corporate
Leaders Portfolio 18.62%*
S&P 500 Index 20.61%
Lipper Growth &
Income Index 15.93%
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index") is an
unmanaged index of 500 leading stocks. Results for the S&P 500 Index do not
reflect the expenses and investment management fees incurred by the Portfolio.
The Lipper Growth & Income Index is a nonweighted index of 139 funds investing
in stocks and corporate and government bonds. Results for the Lipper Growth &
Income Index do not reflect expenses and investment management fees incurred by
the Portfolio.
Past performance is no guarantee of future results. Investment return and
principal value of an investment will fluctuate so that an investor's shares
when redeemed may be worth more or less than their original cost. Performance
numbers are net of all Portfolio operating expenses, but do not reflect the
deduction o insurance charges.
* During the period noted, London Pacific Life & Annuity Company voluntarily
agreed to reimburse certain operating expenses of the Portfolio. In the absence
of the expense reimbursement, total return would have been lower.
The Lexington Corporate Leaders Portfolio earned a total return of 18.62%
for the six months ended June 30, 1997, compared to a rise of 15.93% for the
average growth and income fund monitored by Lipper Analytical Services, Inc. and
a raise of 20.61% for the unmanaged Standard & Poor's 500 Stock Price Index.
The Portfolio benefited from the continued strength in blue chip companies.
After the brief 10% correction in March and April, the bull market in stocks
resumed with a record setting run. Driving this strong performance is a familiar
cast of characters: stable growth, low inflation, strong corporate earnings and
a favorable supply demand for stocks. The slowing of the economy in the second
quarter from the very strong growth in the fourth and first quarter, simply
added fuel to the fire. During the first half, the strongest percentage gains in
the portfolio were recorded by companies which declared stock splits. These
included: Allied Signal, Caterpillar, DuPont, General Electric, Mobil, Proctor
and Gamble, Royal Dutch Petroleum, Schlumberger and Texaco. It is the
Portfolio's investment philosophy that stock performance is a key factor in the
decision of company management to declare stock splits. We are particularly
pleased with the strong performance shown by many of the Portfolio holdings.
We believe the second quarter economic slowdown is likely to be reversed in
the second half. If we are correct and the economy re-accelerates in the second
half, the markets current sanguine view toward Federal Reserve policy and
interest rates may be tested later in the year. While this may unsettle the
markets, we expect the concerns to be temporary and that the outlook as we move
into 1998 remains generally positive.
$10,000 Hypothetical Investment since inception February, 9, 1996
- -----------------------------------------------------------------
Z | $13,920
|
|
X | $13,385
|
|
$10,000 Y | $13,330
_________________________________________________________________
2/9/96 6/30/97
X - Lexington Corporate Leaders Portfolio
Y - S&P 500 Index
Z - Lipper Growth & Income Index
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Lexington Corporate Leaders Portfolio, S&P 500 Index, and
the Lipper Growth & Income Index on February 9, 1996, the inception date of the
Portfolio. The figures for the Portfolio, S&P 500 Index and the Lipper Growth &
Income Index include reinvestment of dividends.
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/97
6 Month 1 Year Since Inception
------- ------ ---------------
(February 9, 1996)
Lexington Corporate Leaders Portfolio 18.62% 29.99% 23.35%
S&P 500 Index 20.61% 34.70% 26.88%
Lipper Growth & Income Index 15.93% 29.00% 22.99%
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
HARRIS ASSOCIATES SALOMON U.S. SALOMON MONEY
VALUE MFS TOTAL RETURN QUALITY BOND MARKET
ASSETS PORTFOLIO(1) PORTFOLIO PORTFOLIO PORTFOLIO
------------------- ----------------- -------------- ---------------
<S> <C> <C> <C> <C>
Investments at value, see accompanying
Schedules $ 1,976,680 $ 2,278,753 $ 2,212,421 $ 1,920,414
Repurchase agreements at cost and value 151,000 0 312,000 212,000
Cash 858 68,448 360 167
Foreign currency at value 0 994 0 0
Dividends and/or interest receivable 1,724 14,904 17,818 35
Receivable for investments securities sold 60,196 24,165 256,269 0
Receivable for Trust shares sold 3,346 28,104 63 73,584
Expense reimbursements receivable 13,478 12,261 10,938 13,321
Other assets 703 703 703 703
------------------- ----------------- -------------- ---------------
TOTAL ASSETS $ 2,207,985 $ 2,428,332 $ 2,810,572 $ 2,220,224
Investments at cost $ 1,761,449 $ 2,037,877 $ 2,209,007 $ 1,920,414
Foreign currency at cost $ 0 $ 1,004 $ 0 $ 0
LIABILITIES
Payable for investment securities purchased $ 136,343 $ 70,663 $ 1,215,594 $ 0
Payable for Trust shares redeemed 0 0 0 27,462
Custodian fees payable 6,084 9,055 5,084 4,684
Advisory fees payable 1,781 1,511 770 643
Accrued legal and audit fees 10,041 10,041 10,041 10,041
Accrued expenses and other liabilities 3,994 4,022 5,111 3,970
------------------- ----------------- -------------- ---------------
TOTAL LIABILITIES 158,243 95,292 1,236,600 46,800
NET ASSETS $ 2,049,742 $ 2,333,040 $ 1,573,972 $ 2,173,424
=================== ================= ============== ===============
COMPONENTS OF NET ASSETS:
Paid-in capital $ 1,630,216 $ 2,036,023 $ 1,550,782 $ 2,173,446
Undistributed net investment
income/(loss) 5,095 25,039 43,910 0
Accumulated net realized gain/(loss) on
securities and foreign currency
transactions 199,200 31,112 (24,134) (22)
Net unrealized appreciation/
(depreciation) of securities and
foreign currency transactions 215,231 240,866 __3,414 0
------------------- ----------------- -------------- ---------------
NET ASSETS $ 2,049,742 $ 2,333,040 $ 1,573,972 $ 2,173,424
=================== ================= ============== ===============
SHARES OUTSTANDING (UNLIMITED AUTHORIZATION,
$.01 PAR VALUE) 151,121 192,184 156,371 2,173,446
=================== ================= ============== ===============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE, PER SHARE (NET ASSETS/SHARES OUTSTANDING) $ 13.56 $ 12.14 $ 10.07 $ 1.00
=================== ================= ============== ===============
LEXINGTON
STRONG ROBERTSON STEPHENS CORPORATE
INTERNATIONAL STRONG GROWTH DIVERSIFIED GROWTH LEADERS
ASSETS STOCK PORTFOLIO PORTFOLIO PORTFOLIO(2) PORTFOLIO
------------------ -------------- -------------------- ----------
<S> <C> <C> <C> <C>
Investments at value, see accompanying
Schedules $ 1,646,088 $ 2,183,294 $ 1,353,488 $1,867,206
Repurchase agreements at cost and value 199,000 201,000 173,000 0
Cash 404 747 607 46,813
Foreign currency at value 0 0 0 0
Dividends and/or interest receivable 3,363 1,101 95 2,551
Receivable for investments securities sold 11,865 17,576 40,936 103,542
Receivable for Trust shares sold 3,346 6,135 1,716 1,694
Expense reimbursements receivable 12,839 13,009 9,029 10,999
Other assets 703 703 703 703
------------------ -------------- -------------------- ----------
TOTAL ASSETS $ 1,877,608 $ 2,423,565 $ 1,579,574 $2,033,508
Investments at cost $ 1,561,039 $ 1,847,158 $ 1,174,077 $1,525,212
Foreign currency at cost ($8,538) $ 0 $ 0 $ 0
LIABILITIES
Payable for investment securities purchased $ 244,536 $ 64,412 $ 11,477 $ 103,542
Payable for Trust shares redeemed 0 0 0 0
Custodian fees payable 9,049 8,084 4,828 6,084
Advisory fees payable 999 1,480 862 1,059
Accrued legal and audit fees 10,041 10,041 10,041 10,041
Accrued expenses and other liabilities 12,789 3,989 3,970 3,970
------------------ -------------- -------------------- ----------
TOTAL LIABILITIES 277,414 88,006 31,178 124,696
NET ASSETS $ 1,600,194 $ 2,335,559 $ 1,548,396 $1,908,812
================== ============== ==================== ==========
COMPONENTS OF NET ASSETS:
Paid-in capital $ 1,432,798 $ 1,918,510 $ 1,910,790 $1,488,720
Undistributed net investment
income/(loss) 7,266 318 (4,018) 7,346
Accumulated net realized gain/(loss) on
securities and foreign currency
transactions 75,084 80,595 (537,787) 70,752
Net unrealized appreciation/
(depreciation) of securities and
foreign currency transactions 85,046 336,136 179,411 341,994
------------------ -------------- -------------------- ----------
NET ASSETS $ 1,600,194 $ 2,335,559 $ 1,548,396 $1,908,812
================== ============== ==================== ==========
SHARES OUTSTANDING (UNLIMITED AUTHORIZATION,
$.01 PAR VALUE) 140,438 174,331 193,115 140,689
================== ============== ==================== ==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE, PER SHARE (NET ASSETS/SHARES OUTSTANDING) $ 11.39 $ 13.40 $ 8.02 $ 13.57
================== ============== ==================== ==========
<FN>
(1) Formerly MAS Value Portfolio
(2) Formerly Berkeley Smaller Companies Portfolio
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED
JUNE 30, 1997 (UNAUDITED)
HARRIS
ASSOCIATES MFS TOTAL SALOMON U. S. STRONG
VALUE RETURN QUALITY BOND SALOMON MONEY INTERNATIONAL
PORTFOLIO(1) PORTFOLIO PORTFOLIO MARKET PORTFOLIO STOCK PORTFOLIO
------------- ----------- --------------- ------------------ -----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 13,388 $ 13,560 $ 0 $ 0 $ 12,946
Foreign withholding tax on
dividend income (76) (205) 0 0 (1,573)
Interest 1,985 22,883 51,582 34,804 5,598
------------- ----------- --------------- ------------------ -----------------
TOTAL INVESTMENT INCOME 15,297 36,238 51,582 34,804 16,971
------------- ----------- --------------- ------------------ -----------------
EXPENSES:
Investment advisory fees 7,303 6,608 4,266 2,820 4,886
Custodian fees 18,619 26,913 15,340 13,828 25,561
Printing expenses 691 691 691 691 691
Legal and audit fees 12,290 12,290 12,290 12,290 12,290
Insurance expense 1,236 1,236 1,236 1,236 1,236
Trustees' fees and expenses 2,116 2,116 2,116 2,116 2,116
Other expense 1,037 1,037 1,037 1,037 1,037
------------- ----------- --------------- ------------------ -----------------
Expenses before expense
reimbursement 43,292 50,891 36,976 34,018 47,817
Expense reimbursement (Note 3) (33,090) (39,526) (29,298) (28,399) (38,112)
------------- ----------- --------------- ------------------ -----------------
TOTAL EXPENSES 10,202 11,365 7,678 5,619 9,705
------------- ----------- --------------- ------------------ -----------------
NET INVESTMENT INCOME 5,095 24,873 43,904 29,185 7,266
------------- ----------- --------------- ------------------ -----------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss) on securities and
foreign currency transactions 182,121 34,071 (2,109) (22) 68,193
Net change in unrealized
appreciation/(depreciation) of securities
and foreign currency transactions 40,473 143,258 (2,894) 0 36,339
------------- ----------- --------------- ------------------ -----------------
NET GAIN (LOSS) ON INVESTMENTS 222,594 177,329 (5,003) (22) 104,532
------------- ----------- --------------- ------------------ -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 227,689 $ 202,202 $ 38,901 $ 29,163 $ 111,798
============= =========== =============== ================== =================
LEXINGTON
ROBERTSON STEPHENS CORPORATE
STRONG GROWTH DIVERSIFIED GROWTH LEADERS
PORTFOLIO PORTFOLIO(2) PORTFOLIO
--------------- -------------------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $ 6,077 $ 987 $ 16,932
Foreign withholding tax on
dividend income (18) 0 (282)
Interest 5,695 3,765 437
--------------- -------------------- -----------
TOTAL INVESTMENT INCOME 11,754 4,752 17,087
--------------- -------------------- -----------
EXPENSES:
Investment advisory fees 6,703 6,213 4,960
Custodian fees 22,986 16,222 16,260
Printing expenses 691 691 691
Legal and audit fees 12,290 12,290 12,290
Insurance expense 1,236 1,236 1,236
Trustees' fees and expenses 2,116 2,116 2,116
Other expense 1,037 1,037 1,037
--------------- -------------------- -----------
Expenses before expense
reimbursement 47,059 39,805 38,590
Expense reimbursement (Note 3) (35,530) (31,015) (28,747)
--------------- -------------------- -----------
TOTAL EXPENSES 11,529 8,790 9,843
--------------- -------------------- -----------
NET INVESTMENT INCOME 225 (4,038) 7,244
--------------- -------------------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss) on securities and
foreign currency transactions 44,472 (272,451) 70,754
Net change in unrealized
appreciation/(depreciation) of securities
and foreign currency transactions 196,501 211,431 193,007
--------------- -------------------- -----------
NET GAIN (LOSS) ON INVESTMENTS 240,973 (61,020) 263,761
--------------- -------------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 241,198 $ (65,058) $ 271,005
=============== ==================== ===========
<FN>
(1) Formerly MAS Value Portfolio
(2) Formerly Berkeley Smaller Companies Portfolio
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
AND THE PERIOD ENDED DECEMBER 31, 1996*
HARRIS ASSOCIATES MFS TOTAL RETURN
VALUE PORTFOLIO (1) PORTFOLIO
-------------------- ------------------
Six Months Ended Period Ended Six Months Ended Period Ended
June 30, 1997 December 31, 1996* June 30, 1997 December 31, 1996*
-------------------- -------------------- ------------------ --------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 5,095 $ 10,502 $ 24,873 $ 27,104
Net realized gain/(loss) on securities and
Foreign currency transactions 182,121 49,011 34,071 (2,959)
Net unrealized appreciation (depreciation)
of securities and foreign currency
Transactions during the period 40,473 174,758 143,258 97,608
-------------------- -------------------- ------------------ --------------------
Net increase (decrease) in net assets
Resulting from operations 227,689 234,271 202,202 121,753
-------------------- -------------------- ------------------ --------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income 0 (10,502) 0 (26,938)
Net realized gain on investments 0 (31,932) 0 0
-------------------- -------------------- ------------------ --------------------
Total distributions 0 (42,434) 0 (26,938)
SHARE TRANSACTIONS
Net proceeds from sale of shares 616,761 1,387,694 824,850 1,661,251
Issued to shareholders in reinvestment of
dividends 0 42,434 0 26,938
Cost of shares repurchased (215,771) (200,902) (222,687) (254,329)
-------------------- -------------------- ------------------ --------------------
Net increase from share transactions
(Note 5) 400,990 1,229,226 602,163 1,433,860
-------------------- -------------------- ------------------ --------------------
TOTAL INCREASE IN NET ASSETS 628,679 1,421,063 804,365 1,528,675
-------------------- -------------------- ------------------ --------------------
NET ASSETS AT BEGINNING OF PERIOD 1,421,063 0 1,528,675 0
-------------------- -------------------- ------------------ --------------------
NET ASSETS AT END OF PERIOD $ 2,049,742 $ 1,421,063 2,333,040 $ 1,528,675
==================== ==================== ================== ====================
Accumulated undistributed net investment
income (loss) included in net assets at
end of period $ 5,095 $ 0 $ 25,039 $ 166
==================== ==================== ================== ====================
SALOMON U. S. QUALITY BOND SALOMON MONEY MARKET
PORTFOLIO PORTFOLIO
---------------------------- ----------------------
Six Months Ended Period Ended Six Months Ended
June 30, 1997 December 31, 1996* June 30, 1997
---------------------------- -------------------- ----------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 43,904 $ 64,084 $ 29,185
Net realized gain/(loss) on securities and
Foreign currency transactions (2,109) (22,025) (22)
Net unrealized appreciation (depreciation)
of securities and foreign currency
Transactions during the period (2,894) 6,308 0
---------------------------- -------------------- ----------------------
Net increase (decrease) in net assets
Resulting from operations 38,901 48,367 29,163
---------------------------- -------------------- ----------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income 0 (64,078) (29,185)
Net realized gain on investments 0 0 0
---------------------------- -------------------- ----------------------
Total distributions 0 (64,078) (29,185)
SHARE TRANSACTIONS
Net proceeds from sale of shares 176,899 1,674,647 3,622,359
Issued to shareholders in reinvestment of
dividends 0 64,078 29,185
Cost of shares repurchased (194,376) (170,466) (2,656,485)
---------------------------- -------------------- ----------------------
Net increase from share transactions
(Note 5) (17,477) 1,568,259 995,059
---------------------------- -------------------- ----------------------
TOTAL INCREASE IN NET ASSETS 21,424 1,552,548 995,037
---------------------------- -------------------- ----------------------
NET ASSETS AT BEGINNING OF PERIOD 1,552,548 0 1,178,387
---------------------------- -------------------- ----------------------
NET ASSETS AT END OF PERIOD $ 1,573,972 $ 1,552,548 $ 2,173,424
============================ ==================== ======================
Accumulated undistributed net investment
income (loss) included in net assets at
end of period $ 43,910 $ 6 $ 0
============================ ==================== ======================
Period Ended
December 31, 1996*
--------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 42,722
Net realized gain/(loss) on securities and
Foreign currency transactions 0
Net unrealized appreciation (depreciation)
of securities and foreign currency
Transactions during the period 0
--------------------
Net increase (decrease) in net assets
Resulting from operations 42,722
--------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (42,722)
Net realized gain on investments 0
--------------------
Total distributions (42,722)
SHARE TRANSACTIONS
Net proceeds from sale of shares 3,995,273
Issued to shareholders in reinvestment of
dividends 42,722
Cost of shares repurchased (2,859,608)
--------------------
Net increase from share transactions
(Note 5) 1,178,387
--------------------
TOTAL INCREASE IN NET ASSETS 1,178,387
--------------------
NET ASSETS AT BEGINNING OF PERIOD 0
--------------------
NET ASSETS AT END OF PERIOD $ 1,178,387
====================
$ 0
Accumulated undistributed net investment ====================
income (loss) included in net assets at
end of period
<FN>
(1) Formerly MAS Value Portfolio
(2) Formerly Berkeley Smaller Companies Portfolio
*For the period January 31, 1996 (Commencement of Operations) to December 31,
1996
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
AND THE PERIOD ENDED DECEMBER 31, 1996*
STRONG INTERNATIONAL STRONG GROWTH
STOCK PORTFOLIO PORTFOLIO
---------------------- ------------------
Six Months Ended Period Ended Six Months Ended
June 30, 1997 December 31, 1996* June 30, 1997
---------------------- -------------------- ------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 7,266 $ 2,799 $ 225
Net realized gain/(loss) on securities and
Foreign currency transactions 68,193 10,921 44,472
Net unrealized appreciation (depreciation)
Of securities and foreign currency
Transactions during the period 36,339 48,707 196,501
---------------------- -------------------- ------------------
Net increase (decrease) in net assets
Resulting from operations 111,798 62,427 241,198
---------------------- -------------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income 0 (576) 0
Net realized gain on investments 0 (6,253) 0
---------------------- -------------------- ------------------
Total distributions 0 (6,829) 0
SHARE TRANSACTIONS
Net proceeds from sale of shares 393,072 1,327,854 775,514
Issued to shareholders in reinvestment of
Dividends 0 6,829 0
Cost of shares repurchased (125,845) (169,112) (194,116)
---------------------- -------------------- ------------------
Net increase from share transactions
(Note 5) 267,227 1,165,571 581,398
---------------------- -------------------- ------------------
TOTAL INCREASE IN NET ASSETS 379,025 1,221,169 822,596
---------------------- -------------------- ------------------
NET ASSETS AT BEGINNING OF PERIOD 1,221,169 0 1,512,963
---------------------- -------------------- ------------------
NET ASSETS AT END OF PERIOD $ 1,600,194 $ 1,221,169 2,335,559
====================== ==================== ==================
Accumulated undistributed net investment
Income (loss) included in net assets at
End of period $ 7,266 $ 0 $ 318
====================== ==================== ==================
ROBERTSON STEPHENS DIVERSIFIED LEXINGTON
GROWTH PORTFOLIO(2) LEADERS
-------------------- ------------------
Period Ended Six Months Ended Period Ended Six Months Ended
December 31, 1996* June 30, 1997 December 31, 1996* June 30, 1997
-------------------- -------------------- -------------------- ------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 26,176 ($4,038) $ 253,443 $ 7,244
Net realized gain/(loss) on securities and
Foreign currency transactions 106,629 (272,451) (265,336) 70,754
Net unrealized appreciation (depreciation)
Of securities and foreign currency
Transactions during the period 139,635 211,431 (32,020) 193,007
-------------------- -------------------- -------------------- ------------------
Net increase (decrease) in net assets
Resulting from operations 272,440 (65,058) (43,913) 271,005
-------------------- -------------------- -------------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (26,083) 0 (253,423) 0
Net realized gain on investments (70,506) 0 0 0
-------------------- -------------------- -------------------- ------------------
Total distributions (96,589) 0 (253,423) 0
SHARE TRANSACTIONS
Net proceeds from sale of shares 1,481,628 546,015 2,060,025 483,324
Issued to shareholders in reinvestment of
Dividends 96,589 0 253,423 0
Cost of shares repurchased (241,105) (373,805) (574,868) (168,938)
-------------------- -------------------- -------------------- ------------------
Net increase from share transactions
(Note 5) 1,337,112 172,210 1,738,580 314,386
-------------------- -------------------- -------------------- ------------------
TOTAL INCREASE IN NET ASSETS 1,512,963 107,152 1,441,244 585,391
-------------------- -------------------- -------------------- ------------------
NET ASSETS AT BEGINNING OF PERIOD 0 1,441,244 0 1,323,421
-------------------- -------------------- -------------------- ------------------
NET ASSETS AT END OF PERIOD $ 1,512,963 $ 1,548,396 $ 1,441,244 $ 1,908,812
==================== ==================== ==================== ==================
Accumulated undistributed net investment
Income (loss) included in net assets at
End of period $ 93 ($4,018) $ 0 $ 7 ,346
==================== ==================== ==================== ==================
CORPORATE
PORTFOLIO
--------------------
Period Ended
December 31, 1996*
--------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 14,001
Net realized gain/(loss) on securities and
Foreign currency transactions (2)
Net unrealized appreciation (depreciation)
Of securities and foreign currency
Transactions during the period 148,987
--------------------
Net increase (decrease) in net assets
Resulting from operations 162,986
--------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (13,899)
Net realized gain on investments 0
--------------------
Total distributions (13,899)
SHARE TRANSACTIONS
Net proceeds from sale of shares 1,250,539
Issued to shareholders in reinvestment of
Dividends 13,929
Cost of shares repurchased (90,134)
--------------------
Net increase from share transactions
(Note 5) 1,174,334
--------------------
TOTAL INCREASE IN NET ASSETS 1,323,421
--------------------
NET ASSETS AT BEGINNING OF PERIOD 0
--------------------
NET ASSETS AT END OF PERIOD $ 1,323,421
====================
Accumulated undistributed net investment
Income (loss) included in net assets at
End of period $ 102
====================
<FN>
(1) Formerly MAS Value Portfolio
(2) Formerly Berkeley Smaller Companies Portfolio
*For the period January 31, 1996 (Commencement of Operations) to December 31,
1996
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
HARRIS ASSOCIATES SALOMON U. S.
VALUE MFS TOTAL QUALITY BOND SALOMON MONEY
PORTFOLIO(1) RETURN PORTFOLIO PORTFOLIO MARKET PORTFOLIO
------------------- ------------------ --------------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.86 $ 10.90 $ 9.81 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.04 0.16 0.28 0.02
Net realized and unrealized gain (loss) on
investments 1.66 1.08 (0.02) 0.00
------------------- ------------------ --------------- ------------------
Total from investment operations 1.70 1.24 0.26 0.02
------------------- ------------------ --------------- ------------------
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00 (0.02)
Distributions from net realized capital gains 0.00 0.00 0.00 (0.00)
------------------- ------------------ --------------- ------------------
Total distributions 0.00 0.00 0.00 (0.02)
------------------- ------------------ --------------- ------------------
Net asset value, end of period $ 13.56 $ 12.14 $ 10.07 $ 1.00
=================== ================== =============== ==================
TOTAL RETURN ++ 14.33% 11.38% 2.65% 2.30%
=================== ================== =============== ==================
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA
Net assets, end of period (in 000's) $ 2,050 $ 2,333 $ 1,574 $ 2,173
Ratio of operating expenses to average net
assets + 1.29% 1.29% 0.99% 0.89%
Ratio of net investment income to average net
assets + 0.64% 2.81% 5.66% 4.64%
Portfolio turnover rate 87.00% 44.22% 130.24% N/A
Average commission rate per share +++ $ 0.0584 $ 0.0534 N/A N/A
Ratio of operating expenses to average net
assets before expense reimbursements + 5.45% 5.76% 4.77% 5.41%
Net investment income (loss) per share before
expense reimbursements ($0.22) ($0.09) $ 0.09 $ 0.00
STRONG STRONG ROBERTSON STEPHENS LEXINGTON
INTERNATIONAL GROWTH DIVERSIFIED GROWTH CORPORATE LEADERS
STOCK PORTFOLIO PORTFOLIO PORTFOLIO(2) PORTFOLIO
----------------- ----------- -------------------- -------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.58 $ 11.92 $ 8.58 $ 11.44
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.06 0.00 (0.02) 0.06
Net realized and unrealized gain (loss) on
investments 0.75 1.48 (0.54) 2.07
----------------- ----------- -------------------- -------------------
Total from investment operations 0.81 1.48 (0.56) 2.13
----------------- ----------- -------------------- -------------------
LESS DISTRIBUTIONS:
Dividends from net investment income 0.00 0.00 0.00 0.00
Distributions from net realized capital gains 0.00 0.00 0.00 0.00
----------------- ----------- -------------------- -------------------
Total distributions 0.00 0.00 0.00 0.00
----------------- ----------- -------------------- -------------------
Net asset value, end of period $ 11.39 $ 13.40 $ 8.02 $ 13.57
================= =========== ==================== ===================
TOTAL RETURN ++ 7.75% 12.42% (6.53%) 18.62%
================= =========== ==================== ===================
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA
Net assets, end of period (in 000's) $ 1,600 $ 2,336 $ 1,548 $ 1,909
Ratio of operating expenses to average net
assets + 1.49% 1.29% 1.39% 1.29%
Ratio of net investment income to average net
assets + 1.11% 0.03% (0.64%) 0.95%
Portfolio turnover rate 70.94% 134.24% 107.85% 24.03%
Average commission rate per share +++ $ 0.0114 $ 0.0678 $ 0.0531 $ 0.0637
Ratio of operating expenses to average net
assets before expense reimbursements + 7.33% 5.25% 6.28% 5.04%
Net investment income (loss) per share before
expense reimbursements ($0.25) ($0.24) ($0.21) ($0.17)
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended June
30, 1997. The total return would have been lower if certain expenses had not
been reimbursed by London Pacific.
+++ Average commission rate paid per share on equity securities purchased and
sold by the Portfolio. Amount excludes mark-ups, mark-downs or spreads paid on
shares traded.
(1) Formerly MAS Value Portfolio
(2) Formerly Berkeley Smaller Companies Portfolio
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR THE PERIOD JANUARY 31, 1996 (COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1996
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
HARRIS ASSOCIATES SALOMON U. S.
VALUE MFS TOTAL QUALITY BOND SALOMON MONEY
PORTFOLIO(1) RETURN PORTFOLIO PORTFOLIO MARKET PORTFOLIO
------------------- ------------------ --------------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.10 0.25 0.49 0.04
Net realized and unrealized gain (loss) on
Investments 2.13 0.85 (0.25) 0.00
------------------- ------------------ --------------- ------------------
Total from investment operations 2.23 1.10 0.24 0.04
------------------- ------------------ --------------- ------------------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.10) (0.20) (0.43) (0.04)
Distributions from net realized capital gains (0.27) (0.00) (0.00) (0.00)
------------------- ------------------ --------------- ------------------
Total distributions (0.37) (0.20) (0.43) (0.04)
------------------- ------------------ --------------- ------------------
Net asset value, end of period $ 11.86 $ 10.90 $ 9.81 $ 1.00
=================== ================== =============== ==================
TOTAL RETURN ++ 20.39% 9.81% 2.27% 3.93%
=================== ================== =============== ==================
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA
Net assets, end of period (in 000's) $ 1,421 $ 1,529 $ 1,553 $ 1,178
Ratio of operating expenses to average net
Assets + 1.26% 1.26% 0.97% 0.87%
Ratio of net investment income to average net
Assets + 1.01% 2.59% 5.41% 4.43%
Portfolio turnover rate 41.08% 53.91% 231.03% N/A
Average commission rate per share +++ $ 0.0542 $ 0.0571 N/A N/A
Ratio of operating expenses to average net
Assets before waiver of fees and expense
Reimbursements + 7.55% 7.84% 5.79% 6.67%
Net investment income (loss) per share before
Waiver of fees and expense reimbursements ($0.52) ($0.38) $ 0.05 ($0.01)
LEXINGTON
STRONG STRONG ROBERTSON STEPHENS CORPORATE
INTERNATIONAL GROWTH DIVERSIFIED GROWTH LEADERS
STOCK PORTFOLIO PORTFOLIO PORTFOLIO(2) PORTFOLIO
----------------- ----------- -------------------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.25 2.10 0.14
Net realized and unrealized gain (loss) on
Investments 0.61 2.49 (1.69) 1.42
----------------- ----------- -------------------- -----------
Total from investment operations 0.64 2.74 0.41 1.56
----------------- ----------- -------------------- -----------
LESS DISTRIBUTIONS:
Dividends from net investment income (0.01) (0.22) (1.83) (0.12)
Distributions from net realized capital gains (0.05) (0.60) (0.00) (0.00)
----------------- ----------- -------------------- -----------
Total distributions (0.06) (0.82) (1.83) (0.12)
----------------- ----------- -------------------- -----------
Net asset value, end of period $ 10.58 $ 11.92 $ 8.58 $ 11.44
================= =========== ==================== ===========
TOTAL RETURN ++ 5.85% 20.27% 2.42% 12.84%
================= =========== ==================== ===========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL
DATA
Net assets, end of period (in 000's) $ 1,221 $ 1,513 $ 1,441 $ 1,323
Ratio of operating expenses to average net
Assets + 1.45% 1.26% 1.36% 1.26%
Ratio of net investment income to average net
Assets + 0.27% 2.25% 20.30% 1.40%
Portfolio turnover rate 49.32% 422.67% 2242.85% 0.00%
Average commission rate per share +++ $ 0.0096 $ 0.0575 $ 0.0478 $ 0.0500
Ratio of operating expenses to average net
Assets before waiver of fees and expense
Reimbursements + 7.74% 7.09% 7.02% 6.86%
Net investment income (loss) per share before
Waiver of fees and expense reimbursements ($0.58) ($0.39) $ 1.51 ($0.41)
<FN>
+ Annualized
++ Total return represents aggregate total return for the period February 9,
1996 (effective date) to December 31, 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.
+++ Average commission rate paid per share on equity securities purchased and
sold by the Portfolio. Amount excludes mark-ups, mark-downs or spreads paid on
shares traded.
</FN>
</TABLE>
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
HARRIS ASSOCIATES VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
VALUE
(NOTE 2)
--------
COMMON STOCKS - 96.43%
BASIC INDUSTRIES - 13.79%
1,500 DeBeers Consolidated Mines, Ltd., ADR $55,406
1,900 First Brands Corporation 43,581
1,000 W.R. Grace & Company 55,125
1,850 James River Corporation of Virginia 68,450
2,250 Premark International, Inc. 60,188
-------
282,750
FINANCIAL SERVICES - 13.24%
1,200 AON Corporation 62,100
1,323 Federal National Mortgage Association 57,716
888 Mellon Bank Corporation 40,071
1,920 Old Republic International Corporation 58,200
1,400 PartnerRe, Ltd. 53,375
-------
271,462
BROADCASTING & PUBLISHING - 11.63%
2,200 Dun & Bradstreet Corporation 57,750
2,200 Lee Enterprises, Inc. 58,025
3,950 Tele-Communications, Inc. (New)+ 58,756
3,150 U.S. West, Inc. + 63,788
-------
238,319
AUTOS & TRANSPORTATION - 9.86%
1,200 Bandag, Inc. 58,425
800 Borg Warner Automotive, Inc. 43,250
230 Eaton Corporation 20,082
1,173 Ford Motor Company 44,281
570 Goodyear Tire and Rubber Company 36,088
-------
202,126
CAPITAL GOODS - 8.24%
687 Cummins Engine, Inc. 48,476
1,500 General Signal Corporation 65,437
1,200 UCAR International, Inc. + 54,900
-------
168,813
CONSUMER BASICS - 7.71%
1,200 American Stores Company 59,250
1,650 Black & Decker Corporation 61,359
843 Philip Morris Companies, Inc. 37,408
-------
158,017
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
HARRIS ASSOCIATES VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - (CONTINUED)
CONSTRUCTION MATERIALS - 6.25%
850 Armstrong World Industries, Inc. $62,369
1,800 USG Corporation + 65,700
-------
128,069
CONGLOMERATES - 5.89%
2,200 ITT Industries, Inc. 56,650
1,800 U.S. Industries, Inc. + 64,125
-------
120,775
CONSUMER SERVICES - 5.76%
1,800 Brunswick Corporation 56,250
1,350 GC Companies, Inc. + 61,762
-------
118,012
ENERGY - 4.46%
199 Amoco Corporation 17,301
264 British Petroleum, PLC, ADR 19,767
2,600 Union Texas Petroleum Holdings, Inc. 54,438
-------
91,506
REAL ESTATE - 3.27%
3,700 Catellus Development Corporation + 67,063
-------
CONSUMER NON-DURABLES - 3.25%
1,200 Polaroid Corporation 66,600
-------
TECHNOLOGY - 3.08%
233 Compaq Computer Corporation + 23,125
444 International Business Machines Corporation 40,043
-------
63,168
TOTAL COMMON STOCKS (COST $1,761,449) 1,976,680
PRINCIPAL
AMOUNT
- ------
SHORT-TERM OBLIGATIONS - 7.37%
$151,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/97 at
5.0%, due 07/01/97, maturity value $151,021
(collateralized by U.S. Treasury Note,
6.25%, due 07/31/98, par value $150,000;
market value $154,530) (Cost $151,000) 151,000
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
HARRIS ASSOCIATES VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
(NOTE 2)
--------
<S> <C> <C>
TOTAL INVESTMENTS (COST $1,912,449*)................. 103.80% $2,127,680
OTHER ASSETS AND LIABILITIES (NET)................... (3.80) (77,938)
------ -----------
NET ASSETS........................................... 100.00% $2,049,742
======= ==========
<FN>
* Aggregate cost for Federal tax purposes (Note 4)
+ Non-income producing security
</FN>
</TABLE>
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depository Receipt
---------------------------------------------------------------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 56.57%
FINANCIAL SERVICES - 14.19%
120 Allstate Corporation $ 8,760
260 American Express Company 19,370
100 Arden Reality, Inc. 2,600
250 BB&T Corporation 11,250
70 BankBoston Corporation 5,044
330 Bank of New York Company, Inc. 14,355
135 Chase Manhattan Corporation (New) 13,103
250 Chubb Corporation 16,719
140 Cigna Corporation 24,850
160 Crestar Financial Corporation 6,220
280 A.G. Edwards, Inc. 11,970
210 Federal Home Loan Mortgage Corporation 7,219
340 Federal National Mortgage Association 14,833
290 Fleet Financial Group, Inc. 18,343
110 Franklin Resources, Inc. 7,982
110 Lincoln National Corporation 7,081
400 National City Corporation 21,000
330 Nationsbank Corporation 21,285
400 Nationwide Financial Services, Inc. 10,625
240 Northern Trust Corporation 11,610
320 Norwest Corporation 18,000
280 PNC Bank Corporation 11,655
170 Provident Companies, Inc. 9,095
140 St. Paul Companies, Inc. 10,675
210 Travelers Group, Inc. 13,243
200 Torchmark Corporation 14,250
-------
331,137
ENERGY - 7.25%
90 Amoco Corporation 7,824
160 Atlantic Richfield Company 11,280
392 British Petroleum PLC, ADR 29,351
150 Chevron Corporation 11,091
100 ENI SPA, ADR 5,650
140 Enron Corporation 2,678
350 Exxon Corporation 21,525
120 Mobil Corporation 8,385
300 Occidental Petroleum Company 7,519
180 Repsol SA, ADR 7,639
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCK - (CONTINUED)
ENERGY - (CONTINUED)
320 Royal Dutch Petroleum Company, NY Shares $17,400
30 Sun, Inc. 930
190 Texaco, Inc. 20,663
200 Union Pacific Resource Group, Inc. 4,975
420 USX-Marathon Group 12,128
-------
169,038
DRUGS & HEALTH CARE - 4.71 %
220 American Home Products Corporation 16,830
70 Baxter International, Inc. 3,657
360 Bristol Myers Squibb Company 29,160
60 Columbia/HCA Healthcare Corporation 2,359
110 Meditrust 4,386
10 Novartis AG (Switzerland) 15,986
30 Rhone-Poulenc Rorer, Inc. 2,726
290 SmithKline Beecham, PLC, ADR 26,571
160 United Healthcare Corporation 8,320
-------
109,995
TECHNOLOGY - 4.60%
280 Allied Signal, Inc. 23,520
170 Digital Equipment Corporation + 6,024
150 General Dynamics Corporation 11,250
50 Honeywell, Inc. 3,794
200 International Business Machines Corporation 18,038
80 Lockheed Martin Corporation 8,285
260 Raytheon Company 13,260
280 United Technologies Corporation 23,240
-------
107,411
MATERIALS AND PROCESSING - 4.47 %
80 Akzo Nobel NV (Netherlands) 10,963
100 Air Products and Chemicals, Inc. 8,125
150 Aluminum Company of America 11,306
200 Dexter Corporation 6,400
40 Dow Chemical Company 3,485
230 DuPont (E.I.) DeNemours & Company 14,461
420 B.F. Goodrich Company 18,191
100 Nalco Chemical Company 3,863
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - (CONTINUED)
MATERIALS AND PROCESSING (CONTINUED)
20 Phelps Dodge Corporation $ 1,704
70 Rohm & Haas Company 6,304
300 Weyerhaeuser Company 15,600
100 Witco Corporation 3,794
-------
104,196
PRODUCER DURABLES - 4.33%
480 Browning Ferris Industries, Inc. 15,960
240 Cooper Industries, Inc. 11,940
330 Deere & Company 18,109
400 General Electric Company 26,150
130 Tyco International, Ltd. 9,043
500 Waste Management, Inc. 16,063
80 York International Corporation 3,680
-------
100,945
UTILITIES - 3.75%
100 CMS Energy Corporation 3,525
210 Carolina Power & Light Company 7,534
290 Coastal Corporation 15,424
241 Duke Energy Corporation 11,558
90 Eastern Enterprises 3,122
210 FPL Group, Inc. 9,673
210 GPU, Inc. 7,534
320 Pinnacle West Capital Corporation 9,620
100 Portland General Corporation 3,969
100 Texas Utilities Company 3,444
200 UGI Corporation 4,425
175 Williams Companies, Inc. 7,656
-------
87,484
CONSUMER DISCRETIONARY - 3.53%
200 Eastman Kodak Company 15,350
80 Fortune Brands, Inc. 2,985
1,500 Grand Metropolitan (Great Britain) 14,438
80 May Department Stores Company 3,780
130 J.C. Penney, Inc. 6,784
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - (CONTINUED)
CONSUMER DISCRETIONARY - (CONTINUED)
410 Rite Aid Corporation 20,449
140 Sears Roebuck & Company 7,525
130 VF Corporation 11,017
-------
82,328
CONSUMER STAPLES - 3.15%
120 Colgate Palmolive Company 7,830
100 Dimon, Inc. 2,650
80 Gallaher Group, PLC, ADR + 1,475
80 General Mills, Inc. 5,210
190 Henkel KGAA (Germany) 10,785
100 McCormick & Company, Inc. 2,525
250 Pepsico, Inc. 9,391
560 Phillip Morris Companies, Inc. 24,850
240 Rubbermaid, Inc. 7,140
40 Stanley Works 1,600
-------
73,456
COMMUNICATION - 2.93%
240 BellSouth Corporation $11,130
430 GTE Corporation 18,866
160 MCI Communications Corporation 6,125
155 SBC Communications, Inc. 9,591
360 Sprint Corporation 18,945
100 Telephone & Data Systems, Inc. 3,794
-------
68,451
AUTOS & TRANSPORTATION - 2.76%
110 Burlington Northern Santa Fe Corporation 9,886
230 Dana Corporation 8,740
350 Ford Motor Company 13,212
40 General Motors Corporation 2,227
200 Hertz Corporation + 7,200
290 Illinois Central Corporation 10,132
100 Norfolk Southern Corporation 10,075
110 Volvo Artiebolaget, ADR 2,942
-------
64,414
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS (CONTINUED)
REAL ESTATE - 0.90%
300 Boston Properties, Inc. + $ 8,250
200 Hospitality Properties Trust 6,125
200 TriNet Corporate Realty Trust, Inc. 6,613
---------
20,988
TOTAL COMMON STOCKS (COST $1,089,110) 1,319,843
---------
PREFERRED STOCKS - 1.68%
50 American Radio Systems Corporation, Non-Voting, 144A 2,825
60 Case Corporation, Series A, Non-Voting 9,877
100 Finova Financial Trust 5,750
140 Host Marriott Financial Trust, 144A 8,102
80 Loral Space & Communications, 144A 3,960
100 McKesson Financing Trust 6,087
50 Timet Capital Trust, 144A 2,650
TOTAL PREFERRED STOCKS (COST $34,335) 39,251
---------
PRINCIPAL
AMOUNT
- ------
CORPORATE BONDS AND NOTES - 15.49%
$10,000 Capital One Bank, MTN
6.97%, due 02/04/2002 9,860
5,000 Chesapeake Energy Corporation,
7.875, due 03/15/2004 4,763
10,000 Cleveland Electric Illuminating Company, MTN
9.25%, due 07/29/1999 10,437
5,000 Cleveland Electric Illuminating Company, 1st Mortgage
9.375%, due 03/01/2017 5,214
5,000 Coastal Corporation, Senior Debenture
7.42%, due 02/15/2037 4,792
5,000 Commonwealth Edison Company,
6.40%, due 10/15/2005 4,677
5,000 Commonwealth Edison Company,
7.625, due 01/15/2007 5,013
5,000 Conseco Finance Trust III,
8.796%, due 04/01/2027 5,170
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ------ -------
CORPORATE BONDS AND NOTES (CONTINUED)
$25,000 Continental Cablevision, Inc,
11.00%, due 06/01/2007 $28,111
10,000 Delta Airlines, Inc.,
8.50%, due 03/15/2002 10,557
15,000 Delta Airlines, Inc.,
9.75%, due 05/15/2021 17,982
1,000 Diamond Offshore Drilling, Inc., Subordinated Covertible Note,
3.75%, due 02/15/2007 1,145
10,000 Federal Express Corporation, Pass-thru Certificate,
7.65%, due 01/15/2014 10,168
5,000 Ford Motor Company,
7.70%, due 05/15/2097 5,039
10,000 Georgia Pacific Corporation,
9.50%, due 05/15/2022 10,791
20,000 Harman International Industries, Inc.,
7.32%, due 07/01/2007 20,000
5,000 Hilton Hotels Corporation,
7.95%, due 04/15/2007 5,123
10,000 Loewen Group International, Inc.,
7.50% , due 04/15/2001 10,100
10,000 Long Island Lighting Company,
7.50%, due 03/01/2007 9,959
15,000 Long Island Lighting Company,
9.00%, due 11/01/2022 16,425
15,000 MBNA Capital 1, Capital Securities, Series A,
8.278%, due 12/01/2026 14,514
3,418 Midland Funding Corporation, Senior Secured Lease Bond,
Series A, 10.33%, due 07/23/2022 3,657
5,000 NWCG Holdings Corporation,
Discount Note, due 06/15/1999 4,396
5,000 Niagara Mohawk Power Corporation,
6.875%, due 04/01/2003 4,806
3,000 Norfolk Southern Corporation,
7.80%, due 05/15/2027 3,081
5,000 Norfolk Southern Corporation,
7.05%, due 05/01/2037 5,075
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ------ --------
CORPORATE BONDS AND NOTES (CONTINUED)
<S> <C> <C>
$10,000 North Atlantic Energy Corporation, 1st Mortgage Bond,
9.05%, due 06/01/2002 $10,117
10,000 Oryx Energy Company,
10.00%, due 04/01/2001 10,908
10,000 Paramount Communications, Inc.,
7.50%, due 01/15/2002 10,018
5,000 Southern Company Capital Trust, Capital Securities, 144A
8.19%, due 02/01/2037 5,063
5,000 TCI Communications Financing III, Capital Securities,
9.65%, due 03/31/2027 5,285
20,000 Tele Communications, Inc., MTN,
7.385%, due 08/27/2001 20,063
20,000 Tennessee Gas Pipeline Company, Debenture,
7.625%, due 04/01/2037 19,788
5,000 360 Communications Company,
7.60%, due 04/01/2009 5,000
25,000 Time Warner Pass-thru Asset Trust,
6.10%, due 12/30/2001 23,947
5,000 Transocean Offshore, Inc., Debenture,
8.00%, due 04/15/2027 5,168
5,000 Waterford 3 Funding Corporation, Secured Lease Collateral,
8.09%, due 01/02/2017 5,000
10,000 Washington Mutual Capital I, Subordinated Capital Income
Securities, 8.375%, due 06/01/2027 10,161
------
TOTAL CORPORATE BONDS AND NOTES (COST $357,924) 361,373
-------
</TABLE>
TREASURY OBLIGATIONS - 8.30%
U.S. TREASURY NOTES - 7.89%
174,000 6.375%, due 08/15/2002 173,946
5,000 7.25%, due 05/15/2004 5,212
5,000 6.25%, due 02/15/2007 4,892
-------
184,050
U.S. TREASURY BOND - 0.41%
10,000 6.50%, due 11/15/2026 9,591
-------
TOTAL TREASURY OBLIGATIONS (COST $192,674) 193,641
-------
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ------ --------
<S> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 3.80%
$46,242 Pool #780435, 8.00%, due 06/15/2017 $48,019
10,000 REMIC, 8.00%, due 06/20/2025 10,291
29,242 Pool #436491, 8.50%, due 09/15/2026 30,384
------
TOTAL GNMA (COST $88,836) 88,694
EUROBONDS - 3.26%
10,000 Banco Commercial SA, (Spain)
8.25%, due 02/05/2007 10,054
8,000 Deutsche Fianance NV, (Netherlands), 144A
0.00%, due 02/17/2017 3,680
5,000 Empresa Nacional De Electric, (Chile),
7.325%, due 02/01/2037 5,014
10,000 Hidroelectrica Arcura, (Argentina), 144A,
8.375%, due 03/15/1999 10,125
10,000 Indah Kiat Fin Mautitius, Ltd., (Indonesia), 144A,
10.00%, due 07/01/2007 9,953
20,000 Korea Development Bank, (South Korea),
6.75%, due 12/01/2005 19,379
11,000 PT Polysindo Eka Perkasa, (Indonesia),
13.00%, due 06/15/2001 12,471
5,000 United Mexican States, (Mexico),
9.875%, due 01/15/2007 5,275
-----
TOTAL EUROBONDS (COST $74,998) 75,951
------
</TABLE>
SHORT-TERM OBLIGATION - 8.57%
200,000 Federal Home Loan Bank,
5.40%, due 07/01/1997+ (Cost $200,000) 200,000
-------
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $2,037,877*) 97.67% 2,278,753
OTHER ASSETS AND LIABILITIES 2.33 54,287
-------- ------
NET ASSETS 100.0% $2,333,040
====== ==========
<FN>
* Aggregate cost for Federal tax purposes is $2,037,906 (Note 4)
+ Non-income producing security
+ Rate represents annualized yield at date of purchase
</FN>
</TABLE>
144A after the name of a security represents those securities exempt under
registration under Rule 144A of the Securities Act of 1933. These securities may
be resold in transactions exempt from registration, normally to qualified
institutional buyers. The value of these securities amounted to $46,358 or 1.99%
of net assets.
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depository Receipt
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
---------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
SALOMON U.S. QUALITY BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
PRINCIPAL VALUE
AMOUNT NOTE 2)
- ------ -------
<S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - 81.81%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 44.44%
$550,000 7.00%, 30 Year (A) $538,824
125,000 7.00%, 30 Year (A) 125,273
3,896 Pool #100090, 14.50%, due 11/01/2014 4,928
7,390 Pool #303791, 12.50%, due 08/01/2015 8,537
10,754 Pool #100089, 13.00%, due 11/01/2015 12,730
8,126 Pool #303792, 11.50%, due 09/01/2019 9,147
--------
TOTAL FNMA (COST $700,904) 699,439
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) - 18.71%
300,000 7.00%, 30 Year (A) (Cost $291,094) 294,468
-------
STUDENT LOAN MARKETING ASSOCIATION (SLMA) - 8.13%
125,000 7.20%, due 11/09/2000 (Cost $128,217) 127,910
-------
FEDERAL HOME LOAN BANK (FHLB) - 7.83%
125,000 5.89%, due 07/24/2000 (Cost $124,154) 123,320
-------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMCB) - 2.70%
37,824 11.75%, due 08/01/2014 (Cost $42,087) 42,428
------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $1,286,456) 1,287,565
---------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
U.S. TREASURY BOND - 9.32%
150,000 6.625%, due 02/15/2027 (Cost $144,835) 146,766
-------
CORPORATE BONDS AND NOTES - 1.88%
25,000 Occidental Petroleum, 9.25%
Due 08/01/2001 (Cost $29,212) 29,586
SHORT TERM OBLIGATIONS - 67.38%
DISCOUNT NOTES - 47.56%
250,000 Federal Farm Credit Bank, 5.38%, due 07/01/1997+ 250,000
250,000 Federal Farm Credit Bank, 5.40%, due 07/11,1997+ 249,625
250,000 Student Loan Marketing Association, 5.38%, due 07/31/1997+ 248,879
-------
TOTAL DISCOUNT NOTES (COST $748,504) 748,504
REPURCHASE AGREEMENTS - 19.82%
156,000 Repurchase Agreement with J.P. Morgan & Company, Inc.,
dated 06/30/97 at 5.95%, due 07/01/97, maturity value
$156,026 (collateralized by U.S. Treasury Note, 7.50%,
due 02/15/99, par value $149,000; market value $160,361) 156,000
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
SALOMON U.S. QUALITY BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ------ --------
<S> <C> <C>
SHORT TERM OBLIGATIONS (CONTINUED)
$156,000 Repurchase Agreement with State Street Bank & Trust
Company, dated 06/30/97 at 5.90%, due 07/01/97,
maturity value $156,026 (collateralized by U.S
Treasury Note, 7.50%, due 11/15/16, par value $150,000;
market value $162,351) $156,000
--------
TOTAL REPURCHASE AGREEMENTS (COST $312,000) 312,000
-------
TOTAL SHORT TERM OBLIGATIONS (COST $1,060,504) 1,060,504
---------
TOTAL INVESTMENTS (COST $2,521,007*) 160.39% 2,524,421
OTHER ASSETS AND LIABILITIES (NET) (60.39) (950,449)
------- ----------
NET ASSETS 100.00% $1,573,972
======= ==========
<FN>
* Aggregate cost for Federal tax purposes (Note 4)
+ Rate represents annualized yield at time of purchase
(A) Dollar Roll (Note 2)
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
SALOMON MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ------ --------
<S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS - 86.06%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 20.68%
$ 250,000 5.42%, due 07/07/1997+ $ 249,774
200,000 5.44%, due 07/10/1997+ 199,728
-------
TOTAL FNMA (COST $449,502) 449,502
-------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) - 19.48%
100,000 5.43%, due 07/07/1997+ 99,909
150,000 5.42%, due 07/11/1997+ 149,774
175,000 5.54%, due 08/15/1997+ 173,788
-------
TOTAL FHLMC (COST $423,471) 423,471
-------
FEDERAL HOME LOAN BANK (FHLB) - 17.24%
100,000 5.48%, due 07/03/1997+ 99,970
275,000 5.43%, due 07/10/1997+ 274,627
-------
TOTAL FHLB (COST $374,597) 374,597
FEDERAL FARM CREDIT BANK (FFCB) - 14.92%
200,000 5.40%, due 07/14/1997+ 199,610
125,000 5.41%, due 07/23/1997+ 124,587
-------
TOTAL FFCB (COST $324,197) 324,197
-------
STUDENT LOAN MARKETING ASSOCIATION (SLMA) - 13.74%
300,000 5.38%, due 07/31/1997+ (Cost $298,655) 298,655
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $1,870,422) 1,870,422
---------
COMMERCIAL PAPER - 2.30%
50,000 Ford Motor Credit Company, 5.60%
Due 07/02/1997+ (Cost $49,992) 49,992
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
SALOMON MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
PRINCIPAL VALUE
AMOUNT (NOTE 2)
- ------ --------
<S> <C>
REPURCHASE AGREEMENTS - 9.75%
$106,000 Repurchase Agreement with J.P. Morgan & Company, Inc.,
dated 06/30/97 at 5.95%, due 07/01/97, maturity value
$106,018 (collateralized by U.S. Treasury Note, 8.875%,
due 02/15/99, par value $101,000; market value $108,701) $106,000
106,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/97 at
5.90%, due 07/01/97, maturity value $106,017
(collateralized by U.S. Treasury Note,
7.50%, due 11/15/16, par value $100,000;
market value $108,234) 106,000
-------
TOTAL REPURCHASE AGREEMENTS (COST $212,000) 212,000
-------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (COST $2,132,414*) 98.11% 2,132,414
OTHER ASSETS AND LIABILITIES (NET) 1.89 41,010
---- ---------
NET ASSETS 100.00% $2,173,424
======= ==========
<FN>
* Aggregate cost for Federal tax purposes (Note 4)
+ Rate represents annualized yield at date of purchase
</FN>
</TABLE>
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG INTERNATIONAL STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - 83.86%
JAPAN - 13.81%
2,000 Bank of Tokyo - Mitsubushi $40,133
3,000 Chubu Steel Plate Company, Ltd. 13,872
2,000 Miyota Company 26,697
4 Nippon Telegraph & Telephone Corporation 38,388
2,000 Sanwa Bank, Ltd. 29,663
2,000 Shiseido Company 32,978
3,000 Tokio Marine & Fire Insurance 39,260
-------
220,991
-------
UNITED STATES - 12.41%
1,523 Ashanti Goldfields, Ltd., GDR (Ghana) 17,800
700 Compania De Minas Buenaventura, ADR (Peru) 13,781
1,300 Electric De Portugal, ADR (Portugal) + 46,800
1,900 Industrie Natuzzi SPA, ADR (Italy) 48,688
6,000 Hong Kong Land Holdings, Ltd., ADR (Hong Kong) 15,960
3,000 Quinenco SA, ADR (Chile) + 55,500
-------
198,529
NEW ZEALAND - 11.22%
10,000 Air New Zealand, Ltd. 30,566
108,111 Guinness Peat Group, PLC 66,825
121,000 Shortland Property, Ltd. 82,189
-------
179,580
-------
AUSTRALIA - 9.85%
3,000 Coca Cola Amatil, Ltd. 38,997
37,252 Normandy Mining, Ltd. 41,948
5,000 Publishing & Broadcasting, Ltd. 28,832
7,568 WMC, Ltd. 47,758
-------
157,535
-------
HONG KONG - 7.25%
84,984 CDL Hotels International, Ltd. 34,554
13,000 Peregrine Investment Holdings, Ltd. 26,764
3,000 Shanghai Industrial Holdings, Ltd. 18,665
4,000 Swire Pacific, Ltd. 36,013
-------
115,996
-------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG INTERNATIONAL STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - (CONTINUED)
ITALY - 6.40%
14,000 Banca Commerciale Italiana $28,996
2,100 Brembo SPA 22,488
3,000 ENI SPA 16,986
20,000 Holding Di Partecipazioni 9,591
4,000 Simint, SPA + 24,359
------
102,420
-------
SINGAPORE - 3.64%
3,000 Cycle & Carriage, Ltd. 31,055
16,000 Hotel Properties, Ltd. 27,195
-------
58,250
-------
UNITED KINGDOM - 3.51%
5,152 Inhcape, PLC 24,280
9,200 Lucasvarity, PLC 31,867
-------
56,147
-------
SWITZERLAND - 3.49%
100 Movenpick Holdings AG 30,171
45 SMH AG Neuenburg 25,705
-------
55,876
-------
BELGIUM - 3.02%
450 Credit Communal Holding Dexia 48,339
------
AUSTRIA - 2.12%
350 Wolford AG 33,963
-------
INDONESIA - 2.03%
51,000 Bank Negara Indonesia 32,504
------
PERU - 2.01%
30,930 Union de Cervecerias Peruanas Backus Y Johnston S.A. 32,184
------
PHILIPPINES - 1.90%
200,000 Empire East Land Holdings, Inc. 30,331
------
MALAYSIA - 1.20%
7,000 Malaysian Resource Corporation 19,275
------
TOTAL COMMON STOCKS (COST $1,264,740) 1,341,920
---------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG INTERNATIONAL STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
SHARES VALUE
(NOTE 2)
--------
PREFERRED STOCK - 4.97%
20,179 News Corporation (Australia), (Cost $82,862) $79,606
------
WARRANTS - 1.68%
4,300 Nikkei 225 Index (United States), Expire 08/15/97 + 25,800
2,600 Peregrine Investment Holdings, Ltd. (Hong Kong),
expires 05/15/1998 + 1,141
------
TOTAL WARRANTS (COST $15,816) 26,941
------
PRINCIPAL
AMOUNT
- ------
SHORT TERM OBILGATIONS - 24.79%
U.S. TREASURY BILL - 12.35%
$200,000 4.98%, due 09/25/1997+ (Cost $197,621) 197,621
-------
REPURCHASE AGREEMENT - 12.44%
199,000 Repurchase Agreement with State Street
Bank & Trust Company, dated 06/30/97 at
5.00%, due 07/01/97, maturity value $199,028
(collateralized by U.S. Treasury Note, 6.25%
due 07/31/98, par value $200,000;
market value $206,400) (Cost $199,000) 199,000
TOTAL SHORT TERM OBLIGATIONS (COST $396,621) 396,621
TOTAL INVESTMENTS (COST $1,760,039*)................. 115.30% 1,845,088
OTHER ASSETS AND LIABILITIES (NET)................... (15.30) (244,894)
------- ----------
NET ASSETS........................................... 100.00% $1,600,194
======= ==========
* Aggregate cost for Federal tax purposes (Note 4)
+ Non-income producing security
+ Rate represents annualized yield at rate of purchase
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depository Receipt
GDR Global Depository Receipt
---------------------------------------------------------------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG INTERNATIONAL STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
As of June 30, 1997, sector diversification of the Portfolio was as follows:
<TABLE>
<CAPTION>
% OF VALUE
SECTOR DIVERSIFICATION NET ASSETS (NOTE 2)
---------------------- ---------- --------
<S> <C> <C>
COMMON STOCKS:
Financial Services 25.19% $403,011
Consumer Cyclical 19.57 313,167
Materials and Processing 9.19 147,081
Consumer Staple 7.68 122,825
Producer Durables 6.58 105,294
Conglomerates 5.69 91,105
Technology 4.07 65,085
Utility 2.92 46,800
Transportation 1.91 30,566
Energy 1.06 16,986
TOTAL COMMON STOCKS 83.86 1,341,920
PREFERRED STOCKS 4.97 79,606
WARRANTS 1.68 26,941
SHORT TERM OBLIGATIONS 24.79 396,621
TOTAL INVESTMENTS 115.30 1,845,088
OTHER ASSETS AND LIABILITIES (NET) (15.30) (244,894)
NET ASSETS 100.0% $1,600,194
</TABLE>
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - 93.48%
TECHNOLOGY - 21.83%
400 Altera Corporation + $20,200
800 Boston Technology, Inc. + 23,650
200 CBT Group Publishing, Ltd., ADR + 12,625
500 Cisco Systems, Inc. + 33,563
500 Compuware Corporation + 23,875
1,200 Danka Business System, ADR 49,050
200 Dell Computer Corporation + 23,488
500 Fiserv, Inc.+ 22,312
200 HBO & Company 13,775
200 Intel Corporation 28,363
200 KLA-Tencor Corporation + 9,750
500 McAfee Associates, Inc. + 31,562
250 Microsoft Corporation + 31,594
200 Motorola, Inc 15,200
300 Oracle Systems Corporation + 15,112
200 Perkin-Elmer Corporation 15,913
700 Sykes Enterprises, Inc + 18,200
800 Tellabs, Inc. + 44,700
400 Teradyne, Inc. + 15,700
200 Uniphase Corporation + 11,650
200 Veritas Software Company + 10,050
500 Xerox Corporation 39,437
------
509,769
-------
CONSUMER DISCRETIONARY - 17.45%
200 Carnival Corporation 8,250
300 Coca Cola Company 20,250
400 Coca Cola Enterprises, Inc. 9,200
375 Consolidated Stores Corporation + 13,031
500 Corning, Inc. 27,813
300 Dayton Hudson Corporation 15,956
400 Dollar General Corporation 15,000
300 Dollar Tree Stores, Inc. + 15,113
200 Fastenal Company 9,800
200 Gillette Company 18,950
400 Home Depot, Inc. 27,575
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - (CONTINUED)
CONSUMER DISCRETIONARY - (CONTINUED)
200 Jones Apparel Group, Inc. + $9,550
500 Kohl's Corporation + 26,469
450 Midwest Express Holdings, Inc. + 12,319
500 Peoplesoft, Inc. + 26,375
600 Pepsico, Inc. 22,537
100 Procter & Gamble Company 14,125
300 Service Corporation International 9,863
400 Shopko Stores, Inc. 10,200
600 Staples, Inc. + 13,950
300 Starbucks Corporation + 11,681
600 Wal-Mart Stores, Inc. 20,288
300 Walgreen Company 16,087
450 Wolverine World Wide, Inc. 13,669
600 Wyndham Hotel Corporation + 19,575
------
407,626
-------
DRUGS & HEALTH CARE - 16.13%
300 Abbott Labs 20,025
300 American Home Products Corporation 22,950
300 Amerisource Health Corporation, Class A + 14,963
300 Elan PLC, ADR + 13,575
100 Guidant Corporation 8,500
1,000 HEALTHSOUTH Corporation + 24,938
200 Johnson & Johnson 12,875
400 Eli Lilly & Company 43,725
400 McKesson Corporation (New) 31,000
700 Medical Resources, Inc. + 11,550
400 Medtronic, Inc. 32,400
200 Oxford Health Plans, Inc. + 14,350
500 Parexel International Corporation + 15,875
400 Pfizer, Inc. 47,800
500 Warner Lambert Company 62,125
------
376,651
-------
FINANCIAL SERVICES - 12.63%
300 American Express Company 22,350
100 Citicorp 12,056
600 Conseco, Inc. 22,200
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - (CONTINUED)
FINANCIAL SERVICES - (CONTINUED)
200 First Bank Systems, Inc. $17,075
600 FirstPlus Financial Group, Inc. + 20,400
400 Franklin Resources, Inc. 29,025
600 Hartford Life, Inc. 22,500
400 MGIC Investment Corporation 19,175
200 Nationwide Financial Services, Inc. 5,312
400 Northern Trust Corporation 19,350
300 Norwest Corporation 16,875
300 Charles Schwab Corporation 12,206
400 Travelers Group, Inc. 25,225
500 Washington Mutual, Inc. 29,875
800 Western National Corporation 21,450
------
295,074
-------
MATERIALS AND EQUIPMENT - 5.02%
300 Applied Materials, Inc. + 21,244
600 EVI, Inc. + 25,200
300 Fort Howard Corporation + 15,187
400 Illinois Tool Works, Inc. 19,975
200 Monsanto Company 8,613
800 Newpark Resources, Inc. + 27,000
------
117,219
-------
BUSINESS SERVICES - 4.60%
400 Accustaff, Inc. + 9,475
400 Billing Info Concepts Corporation + 13,950
600 Knoll, Inc. + 14,250
700 Mail-Well, Inc. + 19,950
200 National Data Corporation 8,662
300 Nokia Corporation, ADR 22,125
500 Outdoor Systems, Inc. + 19,125
------
107,537
-------
ENERGY - 3.85%
2,500 Gulf Canada Resources, Ltd. + 20,781
300 Santa Fe International Corporation + 10,200
200 Schlumberger, Ltd. 25,000
200 Smith International, Inc. + 12,150
700 Sun, Inc. 21,700
------
89,831
------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCK - (CONTINUED)
COMMUNICATIONS - 2.76%
600 Cincinnati Bell, Inc. $18,900
300 Clear Channel Communications, Inc. + 18,450
200 Lucent Technologies, Inc. 14,412
400 Worldcom, Inc. + 12,800
------
64,562
------
PRODUCT DURABLES - 2.41%
400 General Electric Company 26,150
800 Sunbeam Corporation (New) 30,200
------
56,350
------
UTILITIES - 1.94%
600 Cooper Cameron Corporation + 28,050
300 Falcon Drilling Company, Inc. + 17,287
------
45,337
------
OTHER - 1.82%
400 Corrections Corporation of America + 15,900
400 Textron, Inc. 26,550
------
42,450
------
ELECTRIcAL EQUIPMENT - 1.54%
300 ASM Lithography Holding NV + 17,550
500 Kent Electronics Corporation + 18,344
------
35,894
------
CONSUMER STAPLES - 0.95%
500 Philip Morris Companies, Inc. 22,188
------
REAL ESTATE - 0.55%
300 Starwood Lodging Trust 12,806
------
TOTAL COMMON STOCKS (COST $1,847,158) 2,183,294
---------
PRINCIPAL
AMOUNT
- ------
REPURCHASE AGREEMENT - 8.61%
$201,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/97 at
5.00%, due 07/01/97, maturity value $201,028
(collateralized by U.S. Treasury Note, 6.25%, due 07/31/98,
par value $200,000;market value $206,040)
(Cost $201,000) 201,000
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
<TABLE>
<CAPTION>
VALUE
(NOTE 2)
<S> <C> <C>
TOTAL INVESTMENTS (COST $2,048,158*)................. 102.09% $2,384,294
OTHER ASSETS AND LIABILITIES (NET)................... (2.09) (48,735)
------- -----------
NET ASSETS........................................... 100.00% $2,335,559
======= ==========
<FN>
* Aggregate cost for Federal tax purposes is $2,057,899 (Note 4)
+ Non-income producing security
</FN>
</TABLE>
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depository Receipt
---------------------------------------------------------------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - 87.41%
TECHNOLOGY - 24.94%
600 ADC Telecommunications, Inc. + $20,025
1,000 Aware, Inc. + 14,750
750 Ciena Corporation + 35,344
1,000 Data General Corporation + 26,000
3,000 Discreet Logic, Inc. + 49,500
300 Edify Software, Inc. + 4,425
2,500 Input/Output, Inc. + 45,312
800 Intelligroup, Inc. + 7,700
1,000 Iomega Corporation + 19,875
600 LSI Logic Corporation + 19,200
1,000 Network Computing Devices, Inc. + 11,625
1,500 Pure Atria Corporation + 21,188
2,000 Scientific Atlanta, Inc. 43,750
500 3Com Corporation + 22,500
1,000 Transaction Systems Architects, Inc. + 34,500
1,500 Unicomp, Inc. + 10,500
------
386,194
-------
DRUGS & HEALTH CARE - 13.75%
1,000 ABR Information Services, Inc. + 29,000
1,000 American Oncology Resources, Inc. + 16,875
1,500 Cardiothoracic Systems, Inc. + 21,000
500 Crompton & Knowles Corporation 11,125
750 Intercardia, Inc. + 17,250
1,000 Matritech, Inc. + 6,938
1,400 Medical Resources, Inc. + 23,100
1,600 Molecular Devices Corporation + 28,000
1,000 Novoste Corporation + 16,375
300 Quintiles Transnational Corporation + 20,887
600 Spine Tech, Inc. + 22,275
------
212,825
-------
FINANCIAL SERVICES - 10.45%
750 BB&T Corporation 33,750
1,250 Bank Plus Corporation + 13,594
600 Cape Cod Bank & Trust Company 17,100
800 Commercial Federal Corporation 29,700
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - (CONTINUED)
FINANCIAL SERVICES - (CONTINUED)
500 Hartford Life, Inc. $18,750
1,000 ML Bancorp, Inc. 19,375
750 Resource Bancshares Mortgage Group, Inc. 14,812
300 TCF Financial Corporation 14,812
------
161,893
-------
ENERGY - 10.40%
800 Global Industries, Inc. + 18,688
1,750 Nabors Industries, Inc. + 43,750
1,000 Noble Drilling Corporation + 22,563
1,700 Santa Fe International Corporation + 57,800
300 Smith International, Inc. + 18,225
------
161,026
-------
CONSUMER DISCRETIONARY - 9.04%
500 CKE Restaurants, Inc. 15,813
1,000 Global Directmail Corporation + 26,063
900 Nautica Enterprises, Inc. + 23,794
500 Nordstrom, Inc. 24,531
2,250 Vans, Inc. + 34,031
500 Wet Seal, Inc. + 15,781
------
140,013
-------
TRANSPORTATION - 3.72%
1,200 Consolidated Freightways Corporation + 19,650
1,000 Motivepower Industries, Inc. + 16,000
500 Tidewater, Inc 22,000
------
57,650
------
ELECTRICAL EQUIPMENT - 3.40%
750 Fisher Scientific International, Inc. 35,625
600 Littelfuse, Inc. + 16,950
------
52,575
------
BUSINESS SERVICES - 3.18%
800 CKS Group, Inc. + 27,000
500 Manpower, Inc. 22,250
------
49,250
------
MATERIALS AND EQUIPMENT - 2.16%
1,000 Cooper Tire & Rubber Company 22,000
1,500 Gaylord Container Corporation + 11,531
------
33,531
------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - (CONTINUED)
PRODUCT DURABLE - 1.83%
750 Sunbeam Corporation (New) $28,313
COMMUNICATIONS - 1.82%
2,000 IWL Communications, Inc. + 10,750
400 PairGain Technologies, Inc. + 6,200
750 Tele-Communications, Inc. (New) + 11,156
------
28,106
------
REAL ESTATE - 1.32%
800 Walden Residential Properties, Inc. 20,500
------
HOUSING - 0.76%
700 Walter Industries, Inc. + 11,725
------
MISCELLANEOUS - 0.64%
700 Childrens Comprehensive Services, Inc. + 9,887
-----
TOTAL COMMON STOCKS (COST $1,174,077) 1,353,488
---------
PRINCIPAL
AMOUNT
- ------
REPURCHASE AGREEMENT - 11.17%
$173,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/97 at
5.00%, due 07/01/97, maturity value $173,024
(collateralized by U.S. Treasury Note,
6.25%, due 07/31/98, par value $175,000;
market value $180,285) (Cost $173,000) 173,000
-------
TOTAL INVESTMENTS (COST $1,347,077*)................. 98.58% 1,526,488
OTHER ASSETS AND LIABILITIES (NET)................... 1.42 21,908
---- ------
NET ASSETS ..................................... 100.00% $1,548,396
======= ==========
* Aggregate cost for Federal tax purposes is $1,352,331 (Note 4)
+ Non-income producing security
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
LEXINGTON CORPORATE LEADERS PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - 97.82%
ENERGY - 23.21%
650 Chevron Corporation $48,059
650 Exxon Corporation 39,975
650 Mobil Corporation 45,419
2,600 Royal Dutch Petroleum Company, NY Shares 141,375
650 Schlumberger, Ltd. 81,250
650 Texaco, Inc. 70,687
650 Union Pacific Resource Group, Inc. 16,169
------
442,934
-------
CONSUMER DISCRETIONARY - 18.03%
650 Coca Cola Company 43,875
650 Eastman Kodak Company 49,887
650 Fortune Brands, Inc. 24,253
650 McDonalds Corporation 31,403
650 Philip Morris Companies, Inc. 28,844
650 Procter & Gamble Company 91,812
650 Wal-Mart Stores, Inc. 21,978
650 Walt Disney Company 52,162
------
344,214
-------
AUTOS & TRANSPORTATION - 9.51%
650 Burlington Northern Santa Fe Corporation 58,419
650 General Motors Corporation 36,197
650 Goodyear Tire and Rubber Company 41,153
650 Union Pacific Corporation 45,825
------
181,594
-------
TECHNOLOGY - 9.16%
650 Allied Signal, Inc. 54,600
650 Boeing Company 34,491
650 Hewlett Packard Company 36,400
650 Motorola, Inc. 49,400
------
174,891
-------
MATERIALS & PROCESSING - 8.32%
650 Aluminum Company of America 48,994
650 Bethlehem Steel Corporation + 6,784
650 DuPont (E.I.) DeNemours & Company 40,869
650 International Paper Company 31,566
650 Union Carbide Corporation 30,591
------
158,804
-------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
LEXINGTON CORPORATE LEADERS PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
VALUE
SHARES (NOTE 2)
COMMON STOCKS - (CONTINUED)
FINANCIAL SERVICES - 8.24%
650 American Express Company $48,425
650 J.P. Morgan & Company, Inc. 67,844
650 Travelers Group, Inc 40,991
------
157,260
-------
PRODUCER DURABLES - 5.88%
650 Caterpillar, Inc. 69,794
650 General Electric Company 42,494
------
112,288
-------
DRUGS & HEALTH CARE - 5.72%
650 Johnson & Johnson 41,844
650 Merck & Company, Inc. 67,275
------
109,119
-------
UTILITIES - 5.47%
650 Consolidated Edison Company of New York 19,134
650 Duke Power Company 31,159
650 Houston Industries, Inc 13,934
650 PG&E Corporation 15,762
650 Union Electric Company 24,497
------
104,486
-------
COMMUNICATIONS - 3.65%
650 AT&T Corporation 22,791
650 Lucent Technologies, Inc. 46,841
------
69,632
------
CONSUMER STAPLES - 0.63%
650 Gallaher Group PLC, ADR + 11,984
------
TOTAL INVESTMENTS (COST $1,525,212*)................. 97.82% 1,867,206
OTHER ASSETS AND LIABILITIES......................... 2.18 41,606
----- ---------
NET ASSETS........................................... 100.0% $1,908,812
====== ==========
* Aggregate cost for Federal tax purposes
+ Non-income producing security
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depository Receipt
---------------------------------------------------------------
See Notes to Financial Statements
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
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 Harris Associates Value, MFS Total Return, Strong
International Stock, Strong Growth, Robertson Stephens Diversified Growth, and
Lexington Corporate Leaders Portfolios (the "Equity Portfolios").
Prior to May 1, 1997, the Harris Associates Value Portfolio was known as
the MAS Value Portfolio and the Robertson Stephens Diversified Growth Portfolio
was known as the Berkeley Smaller Companies Portfolio. Prior to May 1, 1997,
Miller, Anderson & Sherrerd, LLP served as sub-advisor to the Harris Associates
Value Portfolio and Berkeley Capital Management served as sub-advisor to the
Robertson Stephens Diversified Growth Portfolio.
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 securities will be determined by the Board of 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 using information furnished
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.
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 Agreements 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.
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
DOLLAR ROLL TRANSACTIONS: The Salomon U.S. Quality Bond Portfolio in order
to seek a high level of current income, may enter into dollar roll transactions
with financial institutions to take advantage of opportunities in the mortgage
market. The values of the dollar roll transactions are reflected in the
Portfolio's Statements of Assets and Liabilities. A dollar roll transaction
involves the sale by the Portfolio of securities that it holds with an agreement
by the Portfolio to repurchase similar securities at a agreed upon price and
date. The securities repurchased will bear the same interest as those sold, but
generally will be collateralized at time of delivery by different pools of
mortgages with different prepayment histories than those securities sold. The
Portfolio is paid a fee for entering into a dollar roll transaction, that is
accrued as income over the life of the dollar roll contract. During the period
between the sale and repurchase, the Portfolio will not be entitled to receive
interest and principal payments on the securities sold. Management anticipates
that the proceeds of the sale will be invested in additional instruments for the
Portfolio, and the income from these investments, together with any additional
income received on the sale will generate income for the Portfolio exceeding the
interest that would have been earned on the securities sold. Dollar roll
transactions involve the risk that the market value of the securities sold by
the Portfolio may decline below the repurchase price of those similar securities
which the Portfolio is obligated to purchase or that the return earned by the
Portfolio with the proceeds of a dollar roll may not exceed transaction costs.
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. Purchases 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, except that certain dividends from foreign securities
are recorded as soon as a portfolio is informed of 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. The amount and character of income and
gains to be distributed are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences include treatment of losses on wash sale transactions and realized
and unrealized gains and losses on foreign currency contracts. Reclassifications
are made to a portfolio's capital accounts to reflect income and gains available
for distribution (or available capital loss carryovers) under income tax
regulations. The calculation of net investment income per share in the financial
highlights table excludes these adjustments.
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.
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
3. INVESTMENT ADVISORY, SUB-ADVISORY, AND OTHER RELATED PARTY TRANSACTIONS
LPIMC Insurance Marketing Services ("LPIMC"), a wholly owned subsidiary of
London Pacific, serves as investment advisor to the Trust. Harris Associates
L.P., an indirect, wholly owned subsidiary of New England Investment Companies,
L.P., serves as sub-advisor to the Harris Associates Value Portfolio,
Massachusetts Financial Services Company, an indirect 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. Robertson Stephens & Company
Investment Management, L.P., a wholly owned subsidiary of Robertson Stephens &
Company, Inc., serves as sub-advisor of the Robertson Stephens Diversified
Growth Portfolio 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:
FEES ON
AVERAGE NET FEES ON
FEES ON ASSETS BETWEEN AVERAGE NET
AVERAGE NET $25 MILLION AND ASSETS
ASSETS UP TO $100 MILLION EXCEEDING
NAME OF PORTFOLIO $25 MILLION $100 MILLION
----------------- ----------- ------------
HARRIS ASSOCIATES VALUE
PORTFOLIO
LPIMC .25% .25% .25%
Sub-advisor .75% .60% .50%
---- ---- ----
Total Fees Paid to
LPIMC * 1.00% .85% .75%
===== ==== ====
FEES ON
AVERAGE FEES ON
FEES ON NETASSETS AVERAGE NET
AVERAGE NET BETWEEN $200 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>
<CAPTION>
FEES ON
FEES ON AVERAGE FEES ON AVERAGE NET
NET ASSETS AVERAGE NET ASSETS
FEES ON BETWEEN $50 ASSETS BETWEEN BETWEEN
AVERAGE NET MILLION AND $150 MILLION $300 MILLION
NAME OF ASSETS UP TO $150 MILLION AND $300 AND $500
PORTFOLIO $50 MILLION MILLION MILLION
---------- ----------- ---------------- ------- -------
<S> <C> <C> <C> <C>
SALOMON U.S. QUALITY BOND
PORTFOLIO
LPIMC .25% .25% .25% 25%
Sub-advisor .30% .275% .25% .20%
---- ----- ---- ----
Total Fees Paid to
LPIMC * .55% .525% .50% .45%
==== ===== ==== ====
</TABLE>
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
3. INVESTMENT ADVISORY, SUB-ADVISORY, AND OTHER RELATED PARTY TRANSACTIONS
(CONTINUED)
<TABLE>
<CAPTION>
FEES ON
FEES ON AVERAGE FEES ON AVERAGE NET
NET ASSETS AVERAGE NET ASSETS
FEES ON BETWEEN $50 ASSETS BETWEEN BETWEEN
AVERAGE NET MILLION AND $150 MILLION $300 MILLION
ASSETS UP TO $150 MILLION AND $300 AND $500
$50 MILLION MILLION MILLION
----------- --------------- ------- -------
<S> <C> <C> <C> <C>
SALOMON MONEY MARKET PORTFOLIO
LPIMC .25% .25% .25% .25%
Sub-advisor .20% .175% .15% .10%
---- ----- ---- ----
Total Fees Paid to
LPIMC * .45% .425% .40% .35%
==== ===== ==== ====
</TABLE>
FEES ON
AVERAGE NET FEES ON
FEES ON ASSETS BETWEEN AVERAGE NET
AVERAGE NET $150 MILLION ASSETS
ASSETS UP TO AND $500 EXCEEDING $500
NAME OF PORTFOLIO $150 MILLION MILLION MILLION
----------------- ------------ ------- -------
STRONG INTERNATIONAL STOCK
PORTFOLIO AND STRONG GROWTH
PORTFOLIO
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
---- ---- ----
Total Fees Paid to
LPIMC * .75% .70% .65%
==== ==== ====
<TABLE>
<CAPTION>
FEES ON FEES ON AVERAGE
AVERAGE NET NET ASSETS FEES ON
FEES ON ASSETS BETWEEN BETWEEN AVERAGE NET
AVERAGE NET $10 MILLION $35 MILLION AND ASSETS
NAME OF PORTFOLIO ASSETS UP TO AND $200 MILLION EXCEEDING
$10 MILLION $35 MILLION $200 MILLION
------------------ ----------- ----------- --------------- ------------
<S> <C> <C> <C> <C>
ROBERTSON STEPHENS DIVERSIFIED
GROWTH PORTFOLIO
LPIMC .25% .25% .25% .25%
Sub-advisor .70% .65% .60% .55%
---- ---- ---- ----
Total Fees Paid to
LPIMC * .95% .90% .85% .80%
==== ==== ==== ====
</TABLE>
FEES ON
AVERAGE NET FEES ON
FEES ON ASSETS BETWEEN AVERAGE NET
AVERAGE NET $10 MILLION ASSETS
NAME OF PORTFOLIO ASSETS UP TO AND $100 EXCEEDING $100
$10 MILLION MILLION MILLION
----------------- ----------- ------- -------
LEXINGTON CORPORATE LEADERS
PORTFOLIO
LPIMC .25% .25% .25%
Sub-advisor .40% .35% .30%
---- ---- ----
Total Fees Paid to
LPIMC * .65% .60% .55%
==== ==== ====
* 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.
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
3. INVESTMENT ADVISORY, SUB-ADVISORY, AND OTHER RELATED PARTY TRANSACTIONS
(CONTINUED)
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 (Harris Associates 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%; Robertson Stephens Diversified
Growth 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 six months ended June 30, 1997, London Pacific voluntarily agreed
to reimburse the Portfolios as follows:
NAME OF PORTFOLIO REIMBURSEMENT
----------------- -------------
Harris Associates Value Portfolio $33,090
MFS Total Return Portfolio 39,526
Salomon U.S. Quality Bond Portfolio 29,298
Salomon Money Market Portfolio 28,399
Strong International Stock Portfolio 38,112
Strong Growth Portfolio 35,530
Robertson Stephens Diversified Growth Portfolio 31,015
Lexington Corporate Leaders Portfolio 28,747
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 six months ended June 30, 1997, were
as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
PORTFOLIO OTHER GOVERNMENT OTHER GOVERNMENT
- --------- ----- ---------- ----- ----------
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $1,822,341 $0 $1,254,934 $0
MFS Total Return Portfolio 1,109,829 195,345 331,901 407,443
Salomon U.S. Quality Bond Portfolio 29,233 1,257,476 54,942 1,810,785
Strong International Stock Portfolio 1,119,084 0 761,039 0
Strong Growth Portfolio 2,691,528 0 1,996,041 0
Robertson Stephens Diversified Growth Portfolio 1,576,358 0 1,082,589 0
Lexington Corporate Leaders Portfolio 656,710 0 358,804 0
</TABLE>
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
4. PURCHASES AND SALES OF SECURITIES (CONTINUED)
At June 30, 1997, 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:
<TABLE>
<CAPTION>
TAX BASIS
---------
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO APPRECIATION DEPRECIATION (DEPRECIATION) COST
- --------- ------------ ------------ -------------- ----
<S> <C> <C> <C>
Harris Associates Value Portfolio $222,810 $7,579 $215,231 $1,912,449
MFS Total Return Portfolio 247,335 6,488 240,847 2,037,906
Salomon U.S. Quality Bond Portfolio 7,132 3,718 3,414 2,521,007
Strong International Stock Portfolio 155,603 70,554 85,049 1,760,039
Strong Growth Portfolio 328,929 2,534 326,395 2,057,899
Robertson Stephens Diversified Growth Portfolio 203,254 29,097 174,157 1,352,331
Lexington Corporate Leaders Portfolio 355,366 13,372 341,994 1,525,212
</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 directly and 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:
<TABLE>
<CAPTION>
SALOMON MONEY MARKET
--------------------
SIX MONTHS ENDED JUNE 30, 1997 PERIOD ENDED DECEMBER 31, 1996*
PORTFOLIO SHARES AND AMOUNTS SHARES AND AMOUNTS
- --------- ------------------ ------------------
<S> <C> <C>
Sold $3,622,359 $3,995,273
Issued as reinvestment
of dividends 29,185 42,722
Redeemed (2,656,485) (2,859,608)
----------- -----------
Net increase $ 995,059 $1,178,387
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
HARRIS ASSOCIATES VALUE PORTFOLIO
---------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 48,673 $ 616,761 134,159 $1,387,694
Issued as reinvestment
of dividends 0 0 3,597 42,434
Redeemed (17,414) (215,771) (17,894) (200,902)
-------- --------- ------- ---------
Net increase 31,259 $ 400,990 119,862 $1,229.226
====== ========= ======= ==========
</TABLE>
*For the period January 31, 1996 to December 31, 1996
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
5. SHARES OF BENEFICIAL INTEREST (CONTINUED)
<TABLE>
<CAPTION>
MFS TOTAL RETURN PORTFOLIO
--------------------------
SIX MONTHS ENDED JUNE 30, 1997 PERIOD ENDED DECEMBER 31, 1996*
------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 71,580 $ 824,850 161,535 $1,661,251
Issued as reinvestment
of dividends 0 0 2,481 26,938
Redeemed (19,671) (222,687) (23,741) (254,329)
-------- --------- -------- ---------
Net increase 51,909 $ 602,163 140,275 $1,433,860
====== ========= ======= ==========
</TABLE>
<TABLE>
<CAPTION>
SALOMON U.S. QUALITY BOND PORTFOLIO
-----------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 17,878 $ 176,899 168,853 $1,674,647
Issued as reinvestment
of dividends 0 0 6,530 64,078
Redeemed (19,762) (194,376) (17,128) (170,466)
-------- --------- -------- ---------
Net increase ( 1,884) ($ 17,477) 158,255 $1,568,259
========= ========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
STRONG INTERNATIONAL STOCK PORTFOLIO
------------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 36,825 $ 393,072 130,739 $1,327,854
Issued as reinvestment
of dividends 0 0 647 6,829
Redeemed (11,765) (125,845) (16,008) (169,112)
-------- --------- -------- ---------
Net increase 25,060 $ 267,227 115,378 $1,165,571
====== ========= ======= ==========
</TABLE>
<TABLE>
<CAPTION>
STRONG GROWTH PORTFOLIO
-----------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 63,005 $ 775,514 138,342 $1,481,628
Issued as reinvestment
of dividends 0 0 8,177 96,589
Redeemed (15,653) (194,116) (19,540) (241,105)
-------- --------- -------- ---------
Net increase 47,352 $ 581,398 126,979 $1,337,112
====== ========= ======= ==========
</TABLE>
*For the period January 31, 1996 to December 31, 1996
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
5. SHARES OF BENEFICIAL INTEREST (CONTINUED)
<TABLE>
<CAPTION>
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
-----------------------------------------------
SIX MONTHS ENDED JUNE 30, 1997 PERIOD ENDED DECEMBER 31, 1996*
------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 71,375 $ 546,015 191,499 $2,060,025
Issued as reinvestment
of dividends 0 0 29,494 253,423
Redeemed (46,144) (373,805) (53,109) (574,868)
-------- --------- -------- ---------
Net increase 25,231 $ 172,210 167,884 $1,738,580
====== ========= ======= ==========
</TABLE>
<TABLE>
<CAPTION>
LEXINGTON CORPORATE LEADERS PORTFOLIO
-------------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 38,893 $ 483,324 122,449 $1,250,539
Issued as reinvestment
of dividends 0 0 1,232 13,929
Redeemed (13,853) (168,938) (8,032) (90,134)
-------- --------- ------- --------
Net increase 25,040 $ 314,386 115,649 $1,174,334
====== ========= ======= ==========
</TABLE>
*For the period January 31, 1996 to December 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.
7. CAPITAL LOSS CARRYFORWARD
At December 31, 1996, the following portfolios had a capital loss carryforward
which expires on December 31, 2004:
FUND AMOUNT
---- ------
MFS Total Return Portfolio $2,904
Salomon U.S. Quality Bond Portfolio 22,025
Salomon Money Market Portfolio 27
Berkeley Smaller Companies Portfolio 46,696
Lexington Corporate Leaders Portfolio 2
At December 31, 1996, Berkeley Smaller Companies Portfolio has a Post-October
loss of $213,636, which is deferred until January 1, 1997.
