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, 1998
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............................................2
LPT Variable Insurance Series Trust:
Individual Portfolio Review.........................................3-9
Statements of Assets & Liabilities...................................10
Statements of Operations.............................................11
Statements of Changes in Net Assets...............................12-13
Financial Highlights..............................................14-17
Schedules of Investments..........................................18-48
Notes to Financial Statements.....................................49-58
MESSAGE FROM THE PRESIDENT
Dear Contract Owner:
We are pleased to provide you with the Semi-Annual Report for the LPT Variable
Insurance Series Trust for the six-month period ending June 30, 1998. As you
will see, the 1998 mid-year performance* of the underlying LPT Variable
Insurance Series Trust portfolios has been very good. Furthermore, the
portfolios performed well as compared to their indices and their peers. Thank
you for investing with us!
Strong Growth Portfolio was up 16.48% as compared to the Russell 2000 Small
Company Index* which was up 4.93%. Berkeley U.S. Quality Bond Portfolio was up
3.83% as compared to the Lipper Government Intermediate Index*, which was up
3.60%. Lexington Corporate Leaders Portfolio was up 11.20% as compared to the
Lipper Growth and Income Index*, which was up 11.62%. Robertson Stephens
Diversified Growth Portfolio was up 4.31% as compared to the Russell 2000 Small
Company Index*, which was up 4.93%. MFS Total Return Portfolio was up 8.52% as
compared to the Lipper Balanced Fund Index*, which was up 9.79%. Harris Value
Portfolio was up 6.91% as compared to the Lipper Growth & Income Index*, which
was up 11.62%. International Stock Portfolio, formerly Strong International
Stock Portfolio, was up 14.38% as compared to the Morgan Stanley EAFE Index*,
which was up 15.93%.
London Pacific is proud of the investment choices available to you in the
Regency Variable Annuity. In fact, when combining all of the portfolios
available, we believe we have assembled a strong group of portfolios for your
investment options. We will continue to monitor the performance of all of our
sub-advisors to further enhance your investment options and returns.
With the appreciable gains in recent years and the first half of 1998, we hope
that you benefited from the rising market and from your investment in the LPT
Variable Insurance Series Trust. As we progress through 1998, please remember
that market fluctuations can and will occur. Please stay in touch with your
financial advisor and as in any retirement savings instrument, 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,
when 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, 1998:
Harris Value Portfolio 6.91%*
S&P 500 Index 17.64%
Lipper Growth &
Income Index 11.62%
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 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.
The Harris Associates Value Portfolio earned a total return of 6.91% for the
first six months of 1998. Comparatively, the returns for the S&P 500 and the
Lipper Growth and Income Indices were 17.64% and 11.62%, respectively.
The first six months of 1998 proved to be a challenging environment for
disciplined value investors. The best performing equities during the period were
the equities of a short list of large growth companies. Many of these companies
also dominate the market-capitalized, weighted S&P 500 Index so much, that for
the six-month time period, the 50 largest stocks in the S&P 500 had a return
almost three times that of the rest of the 450 stocks which comprise the index.
The impact of these 50 stocks was so pronounced because they now account for
more than half of the index weighting. The performance of this narrowly focused
and growth-oriented group of stocks contributed to the poor relative performance
of the broad market and our Portfolio.
Stocks turning in strong performances during the period were our consumer
stocks, specifically, Black and Decker Corp. (+56%), Gucci (+26%) and Nike
(+24%). Insurance stocks also performed well during the period with AON up 20%
and Old Republic increasing 19%. The Portfolio also had three buyouts which were
positive contributors during the period those stocks being Beneficial Corp.
(+89%), Echlin (+43%) and Union Texas (+39%). Our poorest performing stocks
tended to be event driven stocks or companies experiencing near-term disappoint-
ments. Examples are Philip Morris (-13%), General Signal (-13%), US Industries
(-18%), Brunswick (-18%), Polaroid (-27%) and Bandag (-29%).
Significant positions added to the Portfolio during the period would fall into
the categories of attractively priced branded companies (Dial Corp. and Fortune
Brands), a turnaround opportunity (ACNielsen) and an undervalued financial stock
(Washington Mutual).
In short, we believe in our philosophy and our execution. Of course, this is
easy to do when short-term performance is good. However, it is critical to do
when short-term performance is weak. Investment professionals tend to lose their
focus when things are not going right. Clients and shareholders complain and
investors begin to doubt their approach. This is perfect stew for poor decision
making which leads to poor long-term performance. We are trying our best to be
immune from this malaise. At Harris Associates, our commit-ment to value
investing remains strong and our goal remains the same as ever, to deliver
superior investment returns over the long-term without assuming undue risk.
$10,000 Hypothetical Investment since inception February 9, 1996
- --------------------------------------------------------------------------------
Harris Associates Value Portfolio - X
S&P 500 Index - Y
Lipper Growth & Income Index - Z
$20,000 ---------------------------------------------------------------
$18,000 ---------------------------------------------------------------Y $18,056
$16,000 ---------------------------------------------------------------
$14,000 ---------------------------------------------------------------Z $16,256
$12,000 ---------------------------------------------------------------X $16,210
$10,000 ---------------------------------------------------------------
---------------------------------------------------------------
2/9/96 12/31/96 12/31/97 6/30/98
Inception Date
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Harris Associates 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 6/30/98
6 Months Since Inception
(February 9, 1996)
Harris Associates Value 6.91%* 22.41%*
Portfolio
S&P 500 Index 17.64% 28.06%
Lipper Growth & Income Index 11.62% 22.55%
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, 1998:
MFS Total Return
Portfolio 8.52%*
Lehman Brothers
Aggregate Bond Index 3.93%
Lipper Balanced
Fund Index 9.79%
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 Fund
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 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, 1998 the Portfolio provided a total return of
8.52%. This compares to the 3.93% return for the Lehman Aggregate Bond Index and
the 9.79% return for the Lipper Balanced Fund Index.
In general, the strong pace of economic activity and low levels of inflation
during the past six months have helped the Portfolio. This strong economic
environment has lead investors to pour money into the stock market, which in
turn has served to drive stock prices even higher.
The Portfolio's allocation between stock, bonds and convertibles has remained
conservative relative to the balanced fund peer group. For most of the period,
the Portfolio's equity weighting remained at about 54%.
In selecting stocks for the Portfolio, we are looking for large companies that
we believe are "mispriced" in the market place. We are focused on finding stocks
that have the potential for double-digit returns over time with less downside
risk than the average stock in the S&P 500. The Portfolio seeks to provide
above-average income and to give investors a reasonable opportunity for capital
appreciation. We also aim for low volatility and consistency.
Financial services companies have a lot of traits that we are looking for. Their
valuations relative to the S&P 500 are low, but their earnings visibility is
higher than that of the average company. Earnings growth is in double digits,
and their yields are good.
Add to that the huge consolidation that's going on in financial services, and we
think this remains a great sector in which to invest. We also see attractive
valuations in the utilities and telecommunications sector. On the electric side,
we think growth is modest but valuations are good relative to the S&P 500. In
telecommunications, we see not only good valuations but also a lot of
consolidation and attractive long-term growth rates.
While many stock picks have helped performance in the aforementioned sectors,
energy stocks have not performed that well over the last six months as prices
have slipped. Due to fears of a supply glut, utility stocks have also been out
of favor.
On the bond side, our allocation is overweighted in the corporate sector. Based
on our outlook for interest rates remaining low, the duration, or sensitivity to
changes in interest rates, of this portion of the Portfolio is slightly longer
than that of the Lehman Index.
Looking ahead, the biggest risk that we see is probably high valuation levels.
There has been a deceleration in growth in the S&P 500 over the last several
months, brought about in part by the Asian crisis but also because we're in the
latter stages of economic expansion. Still, stock prices have continued to go
up, which means we have higher prices but decelerating earnings growth. As a
result, the valuation risk is greater than it used to be. Finally, we think
long-term fundamentals look fine and that corporate America is in good shape but
at these levels, stocks can not afford negative surprises.
MFS Total Return Portfolio - X
Lehman Brothers Aggregate Bond Index - Y
Lipper Balanced Fund Index - Z
$10,000 Hypothetical Investment since inception February 9, 1996
- --------------------------------------------------------------------------------
$20,000 ---------------------------------------------------------------
$18,000 ---------------------------------------------------------------
$16,000 ---------------------------------------------------------------
$14,000 ---------------------------------------------------------------Z $14,434
$12,000 ---------------------------------------------------------------X $14,429
$10,000 ---------------------------------------------------------------Y $11,740
---------------------------------------------------------------
2/9/96 12/31/96 12/31/97 6/30/98
Inception Date
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the MFS Total Return Portfolio, 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 6/30/98
6 Months Since Inception
February 9, 1996
MFS Total Return Portfolio 8.52%* 16.60%*
Lehman Brothers Aggregate Bond Index 3.93% 6.95%
Lipper Balanced Fund Index 9.79% 16.59%
BERKELEY U.S. QUALITY BOND PORTFOLIO
INVESTMENT SUB-ADVISOR
Berkeley Capital
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, 1998.
Berkeley U.S. Quality
Bond Portfolio 3.83%*
Lipper Government
Intermediate Bond Index 3.60%
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 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 be lower.
The Berkeley U.S. Quality Bond Portfolio earned a total return of 3.83% for the
six months ended June 30, 1998, compared to 3.60% for the Lipper Government
Intermediate Bond Index.
The performance of the US Treasury bond market for the first two quarters of
1998 can be characterized by a further bullish flattening of the yield curve.
The 30 year and 10 year government bond yields fell by roughly 30 basis points
each, whereas, the 2 year and 5 year bond fell by 17 and 24 basis points
respectively. The shape of the yield curve has continued the flattening trend of
1997 due to moderating growth of the economy and subdued inflation coupled with
the Fed Funds rate targeted at 5.5%. As interest rates come down further on the
long end of the curve, the short end of the curve does not move much lower than
the Fed Funds target rate.
The performance of the US bond market in 1998 has been materially affected by
events not only domestically but internationally as well. Specifically, the
Asian crisis has helped keep interest rates low in the US due to Asia's combined
decreased demand for US goods and services and the "Flight to Quality" effect as
investors seek the more stable US bond and currency markets. The real question
facing bond investors this year has been to determine how much the economic drag
from Asia would offset the strength in the domestic economy.
In the first quarter, the tug of war was won by the domestic economy. First
quarter GDP came in at 5.4%, much higher than would ordinarily be tolerated by
the Federal Reserve. However, forecasts for the second quarter growth are now
running at 0% to 1%, which suggests that the "Asian Effect" will result in a
summer slowdown.
We believe that this economic environment will prompt the Federal Reserve to
keep short-term interest rates unchanged for the rest of the year. And, until a
recovery in Asia looks imminent, rates in the US should remain low. As we
mentioned at the end of 1997, the Asian slowdown has affected the growth of the
US economy. And, with interest rates still hovering near record lows, we don't
anticipate much of a rally for the bond market from current levels.
Berkeley US Quality Bond Portfolio - X
Lipper Government Immediate Bond Index - Y
$10,000 Hypothetical Investment since inception February 9, 1996
- --------------------------------------------------------------------------------
$11,800 ---------------------------------------------------------------
$11,600 ---------------------------------------------------------------X $11,623
$11,400 ---------------------------------------------------------------Y $11,505
$11,300 ---------------------------------------------------------------
$11,200 ---------------------------------------------------------------
$11,100 ---------------------------------------------------------------
---------------------------------------------------------------
2/9/96 12/31/96 12/31/97 6/30/98
Inception Date
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Berkeley US 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 6/30/98
6 Months Since
Inception
(February 9,
1996)
Berkeley US Quality Bond Portfolio 3.83%* 6.50%*
Lipper Government Intermediate Bond 3.60% 6.04%
INTERNATIONAL STOCK PORTFOLIO
INVESTMENT ADVISOR
LPIMC Insurance Marketing Services(1)
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, 1998:
International Stock
Portfolio 14.38%*
Morgan Stanley
EAFE Index 15.93%
Lipper International
Fund Index 15.81%
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 that
invest assets in securities whose primary markets are outside the United States.
Results for the 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 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.
(1) Strong Capital Management, Inc. served as sub-advisor through May 31, 1998.
Effective May 1, 1998, shares of the International Stock Portfolio are no longer
available for investment.
The International Stock Portfolio earned a total return of 14.38% for the six
months ended June 30, 1998, compared to 15.93% for the Morgan Stanley Europe,
Asia, Far East Index and 15.81% for the Lipper International Fund Index.
The first six months of 1998 saw continued strength in established European
markets and continued volatility in Asia.
Most European markets scored impressive gains during the period. The best
performing countries in Europe were those which are participating in economic
and monetary union. Among them, the shiniest stars were those countries whose
interest rates were relatively high and hence benefit most from the secular
interest rate decline accompanying EMU. European equities were driven broadly
higher by continuing themes of restructuring, merger and acquisition activity,
strength in the US dollar, and the focusing of corporate managers on shareholder
value. Adding fuel was the spectacular growth of the relatively embryonic
European mutual fund industry, which is rapidly expanding investors' access to
stock markets.
After rebounding in the first two months of the year, Asian markets resumed
their suffering in March, eventually re-testing the lows reached in early
January. Meanwhile, these same countries' currencies mimicked the performance of
their respective equity markets. Japan, hit by scandal and plagued by a moribund
economy, lost 4% for the period.
The Pacific markets of Australia and New Zealand were not spared either. As
their economies are intertwined with those of Japan and Korea, the two
manufacturing powerhouses in Asia, their stock markets signaled an inevitable
economic slowdown. Recently, it was confirmed that New Zealand was heading into
a recession.
Fallout from the Asian crisis jarred emerging markets as well, where investors
generally sustained heavy losses.
International Stock Portfolio - X
Morgan Stanley EAFE Index - Y
Lipper International Fund Index - Z
$10,000 Hypothetical Investment since inception February 9, 1996
- --------------------------------------------------------------------------------
$16,000 ---------------------------------------------------------------
$14,000 ---------------------------------------------------------------
$12,000 ---------------------------------------------------------------Z $13,793
$10,000 ---------------------------------------------------------------Y $11,832
$ 8,000 ---------------------------------------------------------------Z $10,707
$ 6,000 ---------------------------------------------------------------
---------------------------------------------------------------
2/9/96 12/31/96 12/31/97 6/30/98
Inception Date
The chart above illustrates the growth in value of a hypothetical $10,000
investment in the International Stock Portfolio, the Morgan Stanley EAFE Index,
and the Lipper International Fund Index on February 9, 1996, the inception date
of the Portfolio. The figures for the Portfolio, the Morgan Stanley EAFE Index
and the Lipper International Fund Index include reinvestment of dividends.
Average Annual Total Returns as of 6/30/98
6 Months Since Inception
February 9,
1996
International Stock Portfolio 14.38%* 2.90%*
Morgan Stanley EAFE Index 15.93% 7.30%
Lipper International Index 15.81% 14.41%
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, 1998
Strong Growth Portfolio 16.48%*
Russell 2000 Small
Company Index 4.93%
S&P 500 Index 17.64%
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 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.
The Strong Growth Portfolio earned a total return of 16.48% for the six months
ended June 30, 1998, compared to 4.93% for the Russell 2000 Small Company Index
and 17.64% for the S&P 500 Index.
Most US stock prices peaked in mid-April and subsequently rolled over for the
rest of the quarter amid concerns about corporate earnings weakness stemming
from the Asian financial crisis. But blue-chip "mega-cap" stocks held their
ground as investors sought their relative safety and liquidity, driving the
popular cap-weighted market indexes to new highs in late June. Cash flows from
foreign investors, retirement plans, and mergers and acquisitions were also
directed toward large companies. Thus the gap between the performance of
largest-cap stocks and the rest of the market, which began in 1995, widened
further. Higher volatility was also evident, with swings of 1% or more on
two-thirds of the trading days.
Returns during the period were also remarkable in their wide disparity across
the value-growth spectrum. Despite the already stretched valuations in the
market, money flows strongly favored growth stocks for their ability to sustain
earnings momentum in the face of a slowing economy. Technology and healthcare
issues were the strongest performers while energy and cyclical manufacturing
companies were the weakest.
Emphasis on retailers, software, and networking-related technology stocks
contributed to the strong performance. Retailers benefited from strong consumer
spending as shoppers felt an increase in real wages. Data networking companies
continue to benefit from the internet explosion and the consolidation of the
telecommunications hardware and networking industries. We believe technology is
driving productivity enhancement and have increased holdings of software and
telecom stocks. Holdings in financial stocks were trimmed.
Over the long-term we believe the bull market is sustainable, although earnings
growth is decelerating. We continue to monitor the Asian situation for negative
impact on our holdings. The drive for expanded computer capabilities and the
internet will likely cause technology and telecom companies to dominate over the
next few years. As the baby boom generation nears retirement, we expect holdings
in healthcare to outperform. We remain committed to finding the best long-term
growth companies of all sizes with capable managements, selling at reasonable
valuations.
Strong Growth Portfolio - X
Russell 2000 Small Company Index - Y
S&P 500 Index - Z
$10,000 Hypothetical Investment since inception February 9, 1996
- --------------------------------------------------------------------------------
$20,000 ---------------------------------------------------------------
$18,000 ---------------------------------------------------------------Z $18,056
$16,000 ---------------------------------------------------------------X $17,615
$14,000 ---------------------------------------------------------------Y $14,697
$12,000 ---------------------------------------------------------------
$10,000 ---------------------------------------------------------------
---------------------------------------------------------------
2/9/96 12/31/96 12/31/97 6/30/98
Inception Date
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Strong Growth Portfolio, the 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, the Russell 2000 Small Company Index
and the S&P 500 Index include reinvestment of dividends.
Average Annual Total Returns as of 6/30/98
6 Months Since Inception
(February 9, 1996)
Strong Growth Portfolio 16.48%* 26.74%*
Russell 2000 Small Company Index 4.93% 17.49%
S&P 500 Index 17.64% 28.06%
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, 1998:
Robertson Stephens
Diversified Growth
Portfolio 4.31%*
Russell 2000 Small
Company Index 4.93%
S&P 500 Index 17.64%
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 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.
The Robertson Stephens Diversified Growth Portfolio earned a total return of
4.31% for the six months ended June 30, 1998 compared to 4.93% for the Russell
2000 Small Company Index and 17.64% for the S&P 500 Index for the same period.
The Portfolio got off to a strong start in early 1998, finishing the first
quarter up 12.32%. Our focus on small to mid-cap stocks was more beneficial
during the first quarter than it was last year, as this area of the market
rebounded from some of its weakness versus larger-cap stocks in late 1997.
Investors' concerns about Asia's economic crisis and its impact on U.S.
corporate earnings dissipated somewhat during the first few months of the year.
Despite some high-profile shortfalls, many companies reported solid results. The
economic backdrop in the U.S. remained very favorable, with low inflation,
stable interest rates and robust consumer spending.
Since early May, however, the stock market has become more turbulent. In fact,
the market hasn't been this volatile since 1987.
What's driving the volatility? With the news that Japan's economy has gone into
recession, Asia's problems are once again creating uncertainty in the U.S.
market. Surprisingly, though, the small to mid-cap stocks on which we focus have
borne the brunt of the sell-off.
As we've said in the past, most U.S. small caps do very little business with
Asia, and are therefore not as vulnerable to its economic downturn as larger
multinational companies. In addition, we believe that many small caps are
growing corporate earnings at two to three times the rate of larger companies,
while their share valuations are, in some cases, half that of large caps. We
also think that small companies will be able to sustain these growth rates more
easily than large caps. In time, we believe that other investors will begin to
recognize the opportunity small-caps represent, especially if blue chips begin
to report earnings shortfalls due to Asia' economic woes.
Several of our cable television stocks (which include MediaOne Group, Comcast
and cable-programmer TCI Ventures) were very strong during the first half.
AT&T's recent announcement of plans to acquire Tele-Communications, Inc. drove
up Tele-Communications International shares along with those of several other
cable companies. Many of the Funds retail holdings (currently about 5-6% of the
Portfolio) also profited during the second half from the robust level of
consumer spending and cheaper imports from Asia.
We will continue to search for dynamic, well-managed companies in the months
ahead.
Robertson Stephens Diversified Growth Portfolio - X
Russell 2000 Small Company Index - Y
S&P 500 Index - Z
$10,000 Hypothetical Investment since inception February 9, 1996
- --------------------------------------------------------------------------------
$20,000 ---------------------------------------------------------------
$18,000 ---------------------------------------------------------------Z $18,056
$16,000 ---------------------------------------------------------------
$14,000 ---------------------------------------------------------------Y $14,697
$12,000 ---------------------------------------------------------------X $12,725
$10,000 ---------------------------------------------------------------
---------------------------------------------------------------
2/9/96 12/31/96 12/31/97 6/30/98
Inception Date
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Robertson Stephens Diversified Growth Portfolio, the
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, the Russell 2000
Small Company Index and the S&P 500 Index include reinvestment of dividends.
Average Annual Total Returns as of 6/30/98
6 Months Since
Inception
February 9,
1996
Robertson Stephens Diversified 4.31%* 10.61%*
Growth
Russell 2000 Small Company Index 4.93% 17.49%
S&P 500 Index 17.64% 28.06%
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, 1998:
Lexington Corporate
Leaders Portfolio 11.20%*
S&P 500 Index 17.64%
Lipper Growth &
Income Index 11.62%
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 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.
The Lexington Corporate Leaders Portfolio earned a total return of 11.20% for
the six months ended June 30, 1998, compared to 17.64% for the S&P 500 Index and
11.62% for the Lipper Growth & Income Index.
The Portfolio continued to benefit from strong growth in blue chip companies
such as Lucent Technologies, Inc. Two sectors which under-performed year-to-date
are expected to improve as we move into late 1998 and 1999. They are energy and
railroads. The energy sector is suffering from the lowest oil prices in a
decade. We expect oil prices to firm up as the impact of production cuts and
greater demand for oil begins to take hold. Also the Portfolio holdings in
railroads under-performed as Union Pacific Corporation seeks to end one of the
worst railroad traffic jams in US history. The problem began last year when
Union Pacific absorbed its former competition Southern Pacific Railroad.
The positive returns came despite a background of collapsing Asian economies and
the resultant heightened concern for US corporate earning growth. That the stock
market has done as well as it has in the face of virtually flat corporate
earnings says much about the other positive forces underpinning stock prices.
These include low inflation and interest rates, liquidity and strong inflows
into equity mutual funds.
The US economy is demonstrating tremendous resilience. With strong growth
continuing despite the recession in Asia, rising wages and a very tight labor
market, the Federal Reserve could see the need to raise interest rates later in
the year.
Lexington Corp. Leaders Portfolio - X
S&P 500 Index - Y
Lipper Growth & Income Index - Z
$10,000 Hypothetical Investment since inception February 9, 1996
- --------------------------------------------------------------------------------
$20,000 ---------------------------------------------------------------
$18,000 ---------------------------------------------------------------Y $18,056
$16,000 ---------------------------------------------------------------Z $16,256
$14,000 ---------------------------------------------------------------X $15,660
$12,000 ---------------------------------------------------------------
$10,000 ---------------------------------------------------------------
---------------------------------------------------------------
2/9/96 12/31/96 12/31/97 6/30/98
Inception Date
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Lexington Corporate Leaders 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 6/30/98
6 Months Since Inception
February 9, 1996
Lexington Corporate Leaders 11.20%* 20.65%*
Portfolio
S&P 500 Index 17.64% 28.06%
Lipper Growth & Income Index 11.62% 22.55%
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
HARRIS
ASSOCIATES MFS TOTAL BERKELEY U.S. BERKELEY MONEY INTERNATIONAL
VALUE RETURN QUALITY BOND MARKET STOCK
ASSETS PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(1)
---------------- ----------------- ---------------- ---------------- --------------
<S> <C> <C> <C> <C> <C>
Investments at value, see accompanying $5,576,220 $9,222,973 $1,408,205 $1,407,984 $401,705
schedules
Repurchase agreements at cost and value 792,000 1,010,000 0 245,000 0
Cash 913 0 43,482 470 47,117
Foreign currency at value 0 0 0 0 6,698
Dividends and/or interest receivable 9,595 67,576 20,335 69 2,560
Receivable for investments securities 0 10,713 0 0 0
sold
Receivable for Trust shares sold 5,187 4,080 38 38,081 0
Expense reimbursements receivable (882) (18,944) 2,320 1,661 (2,399)
Other assets 1,078 1,078 1,078 1,078 1,078
----- ----- ----- ----- -----
Total Assets $6,384,111 $10,297,476 $1,475,458 $1,694,343 $456,759
Investments at cost $5,281,641 $8,602,468 $1,363,950 $1,652,984 $409,736
Foreign currency at cost $0 $0 $0 $0 $6,913
Liabilities
Payable for investments securities $204,480 $360,756 $0 $0 $0
purchased
Payable for Trust shares redeemed 3,335 5,606 895 0 26,214
Payable to Custodian 0 1,683 0 0 0
Custodian fees payable 2,764 6,329 2,564 2,161 4,000
Advisory fees payable 4,904 5,802 652 603 329
Accrued legal and audit fees 10,898 10,898 10,898 10,898 10,898
Accrued expenses and other liabilities 1,159 1,492 931 931 1,152
----- ----- --- --- -----
Total Liabilities 227,540 392,566 15,940 14,593 42,593
Net Assets $6,156,571 $9,904,910 $1,459,518 $1,679,750 $414,166
========== ========== ========== ========== ========
Components of Net Assets:
Paid-in capital $5,584,173 $8,880,132 $1,384,551 $1,679,750 $380,818
Undistributed net investment 16,348 104,183 34,652 0 8,624
income (loss)
Accumulated net realized gain (loss)
on securities
and foreign currency transactions 261,471 300,090 (3,940) 0 32,970
Net unrealized appreciation
(depreciation) of securities
and foreign currency transactions 294,579 620,505 44,255 0 (8,246)
------- ------- ------ - ------
Net assets $6,156,571 $9,904,910 $1,459,518 $1,679,750 $414,166
========== ========== ========== ========== ========
Shares outstanding (unlimited
authorization, $.01 par value) 428,055 713,052 141,804 1,679,750 40,683
======= ======= ======= ========= ======
Net asset value, offering price and
redemption price, per share (Net
assets/shares outstanding) $ 14.38 $ 13.89 $ 10.29 $ 1.00 $ 10.18
============== ============= ============= =========== ===========
<FN>
(1) Formerly Strong International Stock Portfolio
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
LEXINGTON
ROBERTSON STEPHENS CORPORATE
STRONG GROWTH DIVERSIFIED GROWTH LEADERS
ASSETS PORTFOLIO PORTFOLIO PORTFOLIO
---------------- --------------------- --------------
<S> <C> <C> <C>
Investments at value, see accompanying $5,030,597 $4,699,429 $6,439,994
schedules
Repurchase agreements at cost and value 107,000 224,000 0
Cash 925 2,010 977
Foreign currency at value 0 0 0
Dividends and/or interest receivable 1,266 112 9,772
Receivable for investments securities 29,711 290,602 0
sold
Receivable for Trust shares sold 5,263 5,225 0
Expense reimbursements receivable (6,102) (6,766) (14,347)
Other assets 1,078 1,078 1,078
----- ----- -----
Total Assets $5,169,738 $5,215,690 $6,437,474
Investments at cost $4,193,862 $4,693,482 $5,738,844
Foreign currency at cost $0 $0 $0
Liabilities
Payable for investments securities $77,282 $237,438 $0
purchased
Payable for Trust shares redeemed 3,027 2,995 3,481
Payable to Custodian 0 0 0
Custodian fees payable 4,732 3,494 3,074
Advisory fees payable 2,868 3,701 3,275
Accrued legal and audit fees 10,898 10,898 10,898
Accrued expenses and other liabilities 931 931 931
--- --- ---
Total Liabilities 99,738 259,457 21,659
Net Assets $5,070,000 $4,956,233 $6,415,815
========== ========== ==========
Components of Net Assets:
Paid-in capital $4,052,240 $4,624,470 $5,615,617
Undistributed net investment (8,617) (15,693) 20,365
income (loss)
Accumulated net realized gain (loss)
on securities
and foreign currency transactions 189,642 341,509 78,683
Net unrealized appreciation
(depreciation) of securities
and foreign currency transactions 836,735 5,947 701,150
------- ----- -------
Net assets $5,070,000 $4,956,233 $6,415,815
========== ========== ==========
Shares outstanding (unlimited
authorization, $.01 par value) 323,131 465,031 430,941
======= ======= =======
Net asset value, offering price and
redemption price, per share (Net
assets/shares outstanding) $ 15.69 $ 10.66 $ 14.89
============== ======== ========
<FN>
(1) Formerly Strong International Stock 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, 1998 (UNAUDITED)
HARRIS
ASSOCIATES MFS TOTAL BERKELEY U.S. BERKELEY MONEY INTERNATIONAL
VALUE RETURN QUALITY BOND MARKET STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(1)
---------------- ----------------- ---------------- ---------------- --------------
<S> <C> <C> <C> <C> <C>
Investment Income
Income:
Dividends $36,590 $46,693 $0 $0 $4,852
Foreign withholding tax on
dividend income (228) (1,143) 0 0 (716)
Interest 11,013 106,216 41,038 45,665 16,359
------ ------- ------ ------ ------
Total Investment Income 47,375 151,766 41,038 45,665 20,495
------ ------- ------ ------ ------
Expenses:
Investment advisory fees 24,056 28,244 3,548 3,747 5,802
Custodian fees 11,066 36,874 10,092 9,285 30,772
Legal and audit fees 8,675 8,675 8,675 8,675 8,675
Insurance expense 792 792 792 792 792
Trustees' fees and expenses 2,248 2,248 2,248 2,248 2,248
Expenses before expense reimbursement 46,837 76,833 25,355 24,747 48,289
Expense reimbursement (15,810) (28,254) (18,969) (17,337) (36,763)
(Note 3) ------- ------- ------- ------- -------
Total Expenses 31,027 48,579 6,386 7,410 11,526
------ ------ ----- ----- ------
Net Investment Income 16,348 103,187 34,652 38,255 8,969
------ ------- ------ ------ -----
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain on securities and
foreign currency transactions 261,471 264,784 0 0 158,944
Net change in unrealized
appreciation (depreciation) of
securities
and foreign currency (28,683) 211,482 14,906 0 73,795
------- ------- ------ - ------
transactions
Net Gain on Investments 232,788 476,266 14,906 0 232,739
------- ------- ------ - -------
Net Increase in Net Assets
Resulting from Operations $249,136 $579,453 $49,558 $38,255 $241,708
======== ======== ======= ======= ========
<FN>
(1) Formerly Strong International Stock Portfolio
</FN>
</TABLE>
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED
JUNE 30, 1998 (UNAUDITED)
LEXINGTON
ROBERTSON STEPHENS CORPORATE
STRONG GROWTH DIVERSIFIED GROWTH LEADERS
PORTFOLIO PORTFOLIO PORTFOLIO
---------------- --------------------- --------------
Investment Income
Income:
<S> <C> <C> <C>
Dividends $8,153 $3,807 $47,083
Foreign withholding tax on
dividend income 0 (28) (452)
Interest 7,506 9,989 4,595
----- ----- -----
Total Investment Income 15,659 13,608 51,226
------ ------ ------
Expenses:
Investment advisory fees 14,114 20,026 15,552
Custodian fees 23,418 18,521 16,319
Legal and audit fees 8,675 8,675 8,675
Insurance expense 792 792 792
Trustees' fees and expenses 2,248 2,248 2,248
Expenses before expense reimbursement 49,247 50,262 43,586
Expense reimbursement (24,971) (20,961) (12,725)
(Note 3) ------- ------- -------
Total Expenses 24,276 29,301 30,861
------ ------ ------
Net Investment Income (8,617) (15,693) 20,365
------ ------- ------
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain on securities and
foreign currency transactions 246,861 502,290 64,573
Net change in unrealized
appreciation (depreciation) of
securities
and foreign currency 380,366 (358,331) 378,768
------- -------- -------
transactions
Net Gain on Investments 627,227 143,959 443,341
------- ------- -------
Net Increase in Net Assets
Resulting from Operations $618,610 $128,266 $463,706
======== ======== ========
<FN>
(1) Formerly Strong International Stock 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, 1998 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1997
HARRIS ASSOCIATES MFS TOTAL RETURN
VALUE PORTFOLIO (1) PORTFOLIO
-------------------------------------- ----------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30,1998 December 31, 1997 June 30, 1998 December 31, 1997
------------ ----------------- ------------- -----------------
Increase (Decrease) in Net Assets
from Operations
<S> <C> <C> <C> <C>
Net investment income $16,348 $11,861 $103,187 $85,322
Net realized gain (loss) on
securities and
foreign currency transactions 261,471 309,569 264,784 133,356
Net change in unrealized
appreciation (depreciation)of
securities and foreign currency
transactions during the period (28,683) 148,504 211,482 311,415
------- ------- ------- -------
Net increase (decrease) in net
assets resulting from operations 249,136 469,934 579,453 530,093
------- ------- ------- -------
Distributions to shareholders
from:
Net investment income 0 (11,864) 0 (84,797)
Net realized gain on investments 0 (326,649) 0 (94,786)
- -------- - -------
Total distributions 0 (338,513) 0 (179,583)
Share Transactions
Net proceeds from sale of shares 2,595,671 2,687,516 3,631,832 4,879,026
Issued to shareholders in
reinvestment of
dividends 0 338,513 0 179,583
Cost of shares repurchased (210,888) (1,055,861) (279,383) (964,786)
-------- ---------- -------- --------
Net increase (decrease) from
share transactions(Note 5) 2,384,783 1,970,168 3,352,449 4,093,823
--------- --------- --------- ---------
Total increase/(decrease) in net 2,633,919 2,101,589 3,931,902 4,444,333
--------- --------- --------- ---------
assets
Net Assets at beginning of period 3,522,652 1,421,063 5,973,008 1,528,675
--------- --------- --------- ---------
Net Assets at end of period $6,156,571 $3,522,652 $9,904,910 $5,973,008
========== ========== ========== ==========
Accumulated undistributed net
investment
income (loss) included in net
assets at
end of period $ 16,348 $ 0 $ 104,183 $ 996
======== =========== ========== ==========
<FN>
(1) Formerly MAS Value Portfolio
(2) Formerly Salomon U.S. Quality Bond Portfolio
(3) Formerly Salomon Money Market 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, 1998 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1997
BERKELEY U. S. QUALITY BOND BERKELEY MONEY MARKET
PORTFOLIO(2) PORTFOLIO(3)
-------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Year Ended
June 30, 1998 December 31, 1997 June 30,1998 December 1, 1997
------------- ----------------- ------------ ----------------
Increase (Decrease) in Net Assets
from Operations
<S> <C> <C> <C> <C>
Net investment income $34,652 $83,696 $38,255 $76,923
Net realized gain (loss) on
securities and
foreign currency transactions 0 18,375 0 0
Net change in unrealized
appreciation (depreciation)of
securities and foreign currency
transactions during the period 14,906 23,041 0 0
------ ------ - -
Net increase (decrease) in net
assets resulting from operations 49,558 125,112 38,255 76,923
------ ------- ------ ------
Distributions to shareholders
from:
Net investment income 0 (83,993) (38,255) (76,923)
Net realized gain on investments 0 0 0 0
- - - -
Total distributions 0 (83,993) (38,255) (76,923)
Share Transactions
Net proceeds from sale of shares 419,304 222,203 9,686,187 14,018,379
Issued to shareholders in
reinvestment of
dividends 0 83,993 38,255 76,923
Cost of shares repurchased (91,243) (817,964) (9,417,849) (13,900,532)
------- -------- ---------- -----------
Net increase (decrease) from
share transactions(Note 5) 328,061 (511,768) 306,593 194,770
------- -------- ------- -------
Total increase/(decrease) in net 377,619 (470,649) 306,593 194,770
------- -------- ------- -------
assets
Net Assets at beginning of period 1,081,899 1,552,548 1,373,157 1,178,387
--------- --------- --------- ---------
Net Assets at end of period $1,459,518 $1,081,899 $1,679,750 $1,373,157
========== ========== ========== ==========
Accumulated undistributed net
investment
income (loss) included in net
assets at
end of period $ 34,652 $ 0 $ 0 $ 0
========== ========== ========== ==========
<FN>
(1) Formerly MAS Value Portfolio
(2) Formerly Salomon U.S. Quality Bond Portfolio
(3) Formerly Salomon Money Market 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, 1998 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1997
INTERNATIONAL STRONG GROWTH
STOCK PORTFOLIO(4) PORTFOLIO
------------------------------------ -----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1998 December 31, 1997 June 30, 1998 December 1,1997
Increase (Decrease) in Net Assets
from Operations
<S> <C> <C> <C> <C>
Net investment income $8,969 $9,728 ($8,617) ($6,013)
Net realized gain/(loss) on
securities and foreign currency
transactions 158,944 (70,392) 246,861 214,565
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions
during the period 73,795 (130,748) 380,366 316,734
------ -------- ------- -------
Net increase (decrease) in net
assets resulting from operations 241,708 (191,412) 618,610 525,286
------- -------- ------- -------
Distributions to shareholders
from:
Net investment income 0 (9,932) 0 (93)
Net realized gain on investments 0 (62,644) 0 (301,894)
- ------- - --------
Total distributions 0 (72,576) 0 (301,987)
Share Transactions
Net proceeds from sale of shares 401,451 945,574 1,794,763 2,330,737
Issued to shareholders in
reinvestment of dividends 0 72,576 0 301,987
Cost of shares repurchased (1,721,283) (483,041) (255,727) (1,456,632)
---------- -------- -------- ----------
Net increase from share
transactions (Note 5) (1,319,832) 535,109 1,539,036 1,176,092
---------- ------- --------- ---------
Total increase/(decrease) in net (1,078,124) 271,121 2,157,646 1,399,391
---------- ------- --------- ---------
assets
Net Assets at beginning of period 1,492,290 1,221,169 2,912,354 1,512,963
--------- --------- --------- ---------
Net Assets at end of period $414,166 $1,492,290 $5,070,000 $2,912,354
-------- ---------- ---------- ----------
Accumulated undistributed net
investment income (loss)
included in net assets at
end of period $ 8,624 $ (345) ($8,617) $ 0
========== ============ ======= ==========
<FN>
(4) Formerly Strong International Stock Portfolio
(5) 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, 1998 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1997
ROBERTSON STEPHENS DIVERSIFIED LEXINGTON CORPORATE
GROWTH PORTFOLIO(5) LEADERS PORTFOLIO
---------------------------------- --------------------------------------
Six Months Year Ended Six Months Ended Year Ended
June 30, 1998 December 31, 1997 June 30, 1998 December 31,1997
Increase (Decrease) in Net Assets
from Operations
<S> <C> <C> <C> <C>
Net investment income ($15,693) ($14,897) $20,365 $20,035
Net realized gain/(loss) on
securities and foreign currency
transactions 502,290 104,555 64,573 209,511
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions
during the period (358,331) 396,298 378,768 173,395
-------- ------- ------- -------
Net increase (decrease) in net
assets resulting from operations 128,266 485,956 463,706 402,941
------- ------- ------- -------
Distributions to shareholders
from:
Net investment income 0 (20) 0 (20,558)
Net realized gain on investments 0 0 0 (195,399)
- - - --------
Total distributions 0 (20) 0 (215,957)
Share Transactions
Net proceeds from sale of shares 1,609,499 2,410,896 2,648,997 3,057,461
Issued to shareholders in
reinvestment of dividends 0 20 0 215,957
Cost of shares repurchased (233,679) (885,949) (150,193) (1,330,518)
-------- -------- -------- ----------
Net increase from share
transactions (Note 5) 1,375,820 1,524,967 2,498,804 1,942,900
--------- --------- --------- ---------
Total increase/(decrease) in net 1,504,086 2,010,903 2,962,510 2,129,884
--------- --------- --------- ---------
assets
Net Assets at beginning of period 3,452,147 1,441,244 3,453,305 1,323,421
--------- --------- --------- ---------
Net Assets at end of period $4,956,233 $3,452,147 $6,415,815 $3,453,305
---------- ---------- ---------- ----------
Accumulated undistributed net
investment income (loss)
included in net assets at
end of period ($15,693) $ 0 $ 20,365 $ 0
======== ======== ========== ==========
<FN>
(4) Formerly Strong International Stock Portfolio
(5) Formerly Berkeley Smaller Companies Portfolio
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
LPT VARIABLE INSURANCE SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
HARRIS ASSOCIATES VALUE PORTFOLIO (1)
-----------------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30,1998 December 31,1997 December 31, 1996*
<S> <C> <C> <C>
Net asset value, beginning of period $13.45 $11.86 $10.00
Income from investment operations(a):
Net investment income 0.05 0.08 0.10
Net realized and unrealized gain
(loss) on investments 0.88 2.94 2.13
---- ---- ----
Total from investment operations 0.93 3.02 2.23
---- ---- ----
Less distributions:
Dividends from net investment income 0.00 (0.05) (0.10)
Distributions from net realized 0.00 (1.38) (0.27)
---- ----- -----
capital gains
Total distributions 0.00 (1.43) (0.37)
---- ----- -----
Net asset value, end of period $14.38 $13.45 $11.86
====== ====== ======
Total return ++ 6.91% 25.56% 20.39%
==== ===== =====
Ratios to average net
assets/supplemental data
Net assets, end of period (in 000's) $6,157 $3,523 $1,421
Ratio of operating expenses to average
net asset 1.29%+ 1.29% 1.26% +
Ratio of net investment income to
average net assets 0.68%+ 0.56% 1.01%+
Portfolio turnover rate 28.08% 84.94% 41.08%
Ratio of operating expenses to average
net
assets before expense reimbursements 1.95%+ 4.22% 7.55%+
Net investment income (loss) per share
before expense reimbursements (a) $0.00 ($0.32) ($0.52)
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended
June 30, 1998, for the year ended December 31, 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively. The
total return would have been lower if certain expenses had not been
reimbursed by London Pacific.
(a) Based on the average of the daily shares outstanding throughout the year.
(1) Formerly MAS Value 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 A SHARE OUTSTANDING THROUGHOUT THE PERIOD
MFS TOTAL RETURN PORTFOLIO
--------------------------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30, 1998 December 31, 1997 December 31, 1996*
<S> <C> <C> <C>
Net asset value, beginning of period $12.80 $10.90 $10.00
Income from investment operations(a):
Net investment income 0.18 0.35 0.25
Net realized and unrealized gain
(loss) on investments 0.91 1.95 0.85
---- ---- ----
Total from investment operations 1.09 2.30 1.10
---- ---- ----
Less distributions:
Dividends from net investment income 0.00 (0.19) (0.20)
Distributions from net realized 0.00 (0.21) (0.00)
---- ----- -----
capital gains
Total distributions 0.00 (0.40) (0.20)
---- ----- -----
Net asset value, end of period $13.89 $12.80 $10.90
====== ====== ======
Total return ++ 8.52% 21.18% 9.81%
==== ===== ====
Ratios to average net
assets/supplemental data
Net assets, end of period (in 000's) $9,905 $5,973 $1,529
Ratio of operating expenses to average
net asset 1.29%+ 1.29% 1.26%+
Ratio of net investment income to
average net assets 2.74%+ 2.80% 2.59%+
Portfolio turnover rate 74.18% 103.75% 53.91%
Ratio of operating expenses to average
net
assets before expense reimbursements 2.04%+ 3.88% 7.84%+
Net investment income (loss) per share
before expense reimbursements (a) $0.13 $0.03 ($0.38)
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended
June 30, 1998, for the year ended December 31, 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively. The
total return would have been lower if certain expenses had not been
reimbursed by London Pacific.
(a) Based on the average of the daily shares outstanding throughout the year.
(1) Formerly MAS Value 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 A SHARE OUTSTANDING THROUGHOUT THE PERIOD
BERKELEY U. S. QUALITY BOND PORTFOLIO (2)
-----------------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30,1998 December 31,1997 December 31, 1996*
<S> <C> <C> <C>
Net asset value, beginning of period $9.91 $9.81 $10.00
Income from investment
operations(a):
Net investment income 0.27 0.58 0.49
Net realized and unrealized gain
(loss) on
investments 0.11 0.34 (0.25)
---- ---- -----
Total from investment operations 0.38 0.92 0.24
---- ---- ----
Less distributions:
Dividends from net investment income 0.00 (0.82) (0.43)
Distributions from net realized 0.00 ( 0.00) (0.00)
---- - ---- -----
capital gains
Total distributions 0.00 (0.82) (0.43)
---- ----- -----
Net asset value, end of period $10.29 $9.91 $9.81
====== ===== =====
Total return ++ 3.83% 9.45% 2.27%
==== ==== ====
Ratios to average net
assets/supplemental
data
Net assets, end of period (in 000's) $1,460 $1,082 $1,553
Ratio of operating expenses to
average net
assets 0.99%+ 0.99% 0.97%+
Ratio of net investment income to
average net
assets 5.37%+ 5.79% 5.41%+
Portfolio turnover rate 1.36% 431.63% 231.03%
Ratio of operating expenses to
average net
assets before expense 3.93%+ 5.09% 5.79%+
reimbursements
Net investment income (loss) per
share before
expense reimbursements (a) $0.12 $0.17 $0.05
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended
June 30, 1998, for the year ended December 31, 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively. The
total return would have been lower if certain expenses had not been
reimbursed by London Pacific.
(a) Based on the average of the daily shares outstanding throughout the year.
(2) Formerly Salomon U.S. Quality Bond Portfolio
(3) Formerly Salomon Money Market 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 A SHARE OUTSTANDING THROUGHOUT THE PERIOD
BERKELEY MONEY MARKET PORTFOLIO (3)
-------------------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30, 1998 December 31, 1997 December 31, 1996*
<S> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00
Income from investment
operations(a):
Net investment income 0.02 0.05 0.04
Net realized and unrealized gain
(loss) on
investments 0.00 0.00 0.00
---- ---- ----
Total from investment operations 0.02 0.05 0.04
---- ---- ----
Less distributions:
Dividends from net investment income (0.02) (0.05) (0.04)
Distributions from net realized (0.00) (0.00) (0.00)
----- ----- -----
capital gains
Total distributions (0.02) (0.05) (0.04)
----- ----- -----
Net asset value, end of period $1.00 $1.00 $1.00
===== ===== =====
Total return ++ 2.29% 4.58% 3.93%
==== ==== ====
Ratios to average net
assets/supplemental
data
Net assets, end of period (in 000's) $1,680 $1,373 $1,178
Ratio of operating expenses to
average net
assets 0.89%+ 0.89% 0.87%+
Ratio of net investment income to
average net
assets 4.59%+ 4.58% 4.43%+
Portfolio turnover rate N/A N/A N/A
Ratio of operating expenses to
average net
assets before expense 2.97%+ 4.30% 6.67%+
reimbursements
Net investment income (loss) per
share before
expense reimbursements (a) $0.01 $0.01 ($0.01)
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended
June 30, 1998, for the year ended December 31, 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively. The
total return would have been lower if certain expenses had not been
reimbursed by London Pacific.
(a) Based on the average of the daily shares outstanding throughout the year.
(2) Formerly Salomon U.S. Quality Bond Portfolio
(3) Formerly Salomon Money Market 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 A SHARE OUTSTANDING THROUGHOUT THE PERIOD
INTERNATIONAL STOCK PORTFOLIO(4)
---------------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30,1998 December 31,1997 December 31, 1996*
<S> <C> <C> <C>
Net asset value, beginning of period $8.90 $10.58 $10.00
Income from investment
operations(a):
Net investment income 0.06 0.07 0.03
Net realized and unrealized gain
(loss) on
investments 1.22 (1.30) 0.61
---- ----- ----
Total from investment operations 1.28 (1.23) 0.64
---- ----- ----
Less distributions:
Dividends from net investment income 0.00 (0.06) (0.01)
Distributions from net realized 0.00 (0.39) (0.05)
---- ----- -----
capital gains
Total distributions 0.00 (0.45) (0.06)
---- ----- -----
Net asset value, end of period $10.18 $8.90 $10.58
====== ===== ======
Total return ++ 14.38% (11.62%) 5.85%
===== ====== ====
Ratios to average net
assets/supplemental
data
Net assets, end of period (in 000's) $414 $1,492 $1,221
Ratio of operating expenses to
average net
assets 1.49%+ 1.49% 1.45%+
Ratio of net investment income to
average
net assets 1.16%+ 0.68% 0.27%+
Portfolio turnover rate 101.70% 165.59% 49.32%
Ratio of operating expenses to
average net
assets before expense 6.24%+ 6.81% 7.74%+
reimbursements
Net investment income (loss) per
share
before expense reimbursements (a) ($0.17) ($0.49) ($0.58)
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended
June 30, 1998, for the year ended December 31, 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively. The
total return would have been lower if certain expenses had not been
reimbursed by London Pacific.
(a) Based on the average of the daily shares outstanding throughout the year.
(4) Formerly Strong International Stock 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 A SHARE OUTSTANDING THROUGHOUT THE PERIOD
STRONG GROWTH PORTFOLIO
-----------------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30, 1998 December 31, 1997 December 31, 1996*
<S> <C> <C> <C>
Net asset value, beginning of period $13.47 $11.92 $10.00
Income from investment
operations(a):
Net investment income (0.03) (0.04) 0.25
Net realized and unrealized gain
(loss) on
investments 2.25 3.07 2.49
---- ---- ----
Total from investment operations 2.22 3.03 2.74
---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 (0.22)
Distributions from net realized 0.00 (1.48) (0.60)
---- ----- -----
capital gains
Total distributions 0.00 (1.48) (0.82)
---- ----- -----
Net asset value, end of period $15.69 $13.47 $11.92
====== ====== ======
Total return ++ 16.48% 25.56% 20.27%
===== ===== =====
Ratios to average net
assets/supplemental
data
Net assets, end of period (in 000's) $5,070 $2,912 $1,513
Ratio of operating expenses to
average net
assets 1.29%+ 1.29% 1.26%+
Ratio of net investment income to
average
net assets (0.46%)+ (0.26%) 2.25%+
Portfolio turnover rate 112.56% 270.11% 422.67%
Ratio of operating expenses to
average net
assets before expense 2.62%+ 4.44% 7.09%+
reimbursements
Net investment income (loss) per
share
before expense reimbursements (a) ($0.13) ($0.46) ($0.39)
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended
June 30, 1998, for the year ended December 31, 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively. The
total return would have been lower if certain expenses had not been
reimbursed by London Pacific.
(a) Based on the average of the daily shares outstanding throughout the year.
(4) Formerly Strong International Stock 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 A SHARE OUTSTANDING THROUGHOUT THE PERIOD
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO (5)
--------------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30,1998 December 31,1997 December 31, 1996*
<S> <C> <C> <C>
Net asset value, beginning of period $10.22 $8.58 $10.00
Income from investment
operations(a):
Net investment income (0.04) (0.07) 2.10
Net realized and unrealized gain
(loss) on
investments 0.48 1.71 (1.69)
---- ---- -----
Total from investment operations 0.44 1.64 0.41
---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 (1.83)
Distributions from net realized 0.00 0.00 (0.00)
---- ---- -----
capital gains
Total distributions 0.00 0.00 (1.83)
---- ---- -----
Net asset value, end of period $10.66 $10.22 $8.58
====== ====== =====
Total return ++ 4.31% 19.12% 2.42%
==== ===== ====
Ratios to average net
assets/supplemental
data
Net assets, end of period (in 000's) $4,956 $3,452
$1,441
Ratio of operating expenses to
average net
assets 1.39%+ 1.39% 1.36%+
Ratio of net investment income to
average
net assets (0.74%)+ (0.72%) 20.30%+
Portfolio turnover rate 167.43% 234.54% 2242.85%
Ratio of operating expenses to
average net
assets before expense 2.38%+ 4.53% 7.02%+
reimbursements
Net investment income (loss) per
share
before expense reimbursements (a) ($0.09) ($0.35) $1.51
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended
June 30, 1998, for the year ended December 31, 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively. The
total return would have been lower if certain expenses had not been
reimbursed by London Pacific.
(a) Based on the average of the daily shares outstanding throughout the year.
(5) 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 A SHARE OUTSTANDING THROUGHOUT THE PERIOD
LEXINGTON CORPORATE LEADERS PORTFOLIO
----------------------------------------------------------
Six Months Ended Year Ended Period Ended
June 30, 1998 December 31, 1997 December 31, 1996*
<S> <C> <C> <C>
Net asset value, beginning of period $13.39 $11.44 $10.00
Income from investment
operations(a):
Net investment income 0.06 0.13 0.14
Net realized and unrealized gain
(loss) on
investments 1.44 2.70 1.42
---- ---- ----
Total from investment operations 1.50 2.83 1.56
---- ---- ----
Less distributions:
Dividends from net investment income 0.00 (0.08) (0.12)
Distributions from net realized 0.00 (0.80) (0.00)
---- ----- -----
capital gains
Total distributions 0.00 (0.88) (0.12)
---- ----- -----
Net asset value, end of period $14.89 $13.39 $11.44
====== ====== ======
Total return ++ 11.20% 24.71% 12.84%
===== ===== =====
Ratios to average net
assets/supplemental
data
Net assets, end of period (in 000's) $6,416 $3,453 $1,323
Ratio of operating expenses to
average net
assets 1.29%+ 1.29% 1.26%+
Ratio of net investment income to
average
net assets 0.85%+ 0.99% 1.40%+
Portfolio turnover rate 2.42% 35.69% 0.00%
Ratio of operating expenses to
average net
assets before expense 1.82%+ 4.08% 6.86%+
reimbursements
Net investment income (loss) per
share
before expense reimbursements (a) $0.02 ($0.24) ($0.41)
<FN>
+ Annualized
++ Total returns represents aggregate total return for the six months ended
June 30, 1998, for the year ended December 31, 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively. The
total return would have been lower if certain expenses had not been
reimbursed by London Pacific.
(a) Based on the average of the daily shares outstanding throughout the year.
(5) 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>
THE LPT VARIABLE INSURANCE SERIES TRUST
HARRIS ASSOCIATES VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - 90.57%
Consumer Basics - 13.09%
<S> <C>
9,300 American Stores Company................................................ $224,944
2,950 Black & Decker Corporation............................................ 179,950
7,200 Dial Corporation....................................................... 186,750
5,443 Philip Morris Companies, Inc........................................... 214,318
-------
805,962
-------
Financial Services - 12.50%
2,900 AON Corporation........................................................ 203,725
1,323 Federal National Mortgage Association.................................. 80,372
2,880 Old Republic International Corporation................................. 84,420
3,900 PartnerRe, Ltd......................................................... 198,900
4,650 Washington Mutual, Inc................................................. 201,984
-------
769,401
------
Consumer Non-Durables - 11.51%
3,800 Gucci Group N V, ADR................................................... 201,400
4,600 Mattel, Inc. .......................................................... 194,638
4,600 Nike, Inc.............................................................. 223,963
2,500 Polaroid Corporation................................................... 88,906
------
708,907
-------
Broadcasting & Publishing - 8.13%
2,300 Central Newspapers, Inc................................................ 160,425
5,100 Dun & Bradstreet Corporation........................................... 184,238
5,100 Lee Enterprises, Inc. ................................................. 156,187
-------
500,850
-------
General Business - 6.50%
8,000 AC Nielsen Corporation ............................................... 202,000
4,700 H & R Block, Inc....................................................... 197,988
-------
399,988
-------
Conglomerates - 5.87%
4,500 ITT Industries, Inc. .................................................. 168,187
7,800 U.S. Industries, Inc................................................... 193,050
-------
361,237
-------
Construction Materials - 5.50%
2,050 Armstrong World Industries, Inc........................................ 138,119
3,700 USG Corporation........................................................ 200,262
-------
338,381
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
HARRIS ASSOCIATES VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
VALUE
SHARES (NOTE 2)
- ------ --------
COMMON STOCKS - (Continued)
Basic Industries - 4.22%
<S> <C>
3,050 Fort James Corporation................................................. $135,725
3,850 Premark International, Inc............................................. 124,163
-------
259,888
-------
Technology - 3.51%
5,400 Electronic Data Systems Corporation.................................... 216,000
-------
Drugs & Health Care - 3.22%
6,800 Columbia/HCA Healthcare Corporation.................................... 198,050
-------
Capital Goods - 3.22%
5,500 General Signal Corporation............................................. 198,000
-------
Consumer Discretionary - 3.18%
5,100 Fortune Brands, Inc.................................................... 196,031
-------
Real Estate - 3.07%
10,700 Catellus Development Corporation +..................................... 189,256
-------
Autos & Transportation - 2.58%
4,600 Bandag, Inc., Class A.................................................. 158,700
-------
Chemicals - 2.42%
5,900 Ferro Corporation...................................................... 149,344
-------
Consumer Services - 2.05%
5,100 Brunswick Corporation.................................................. 126,225
Total Common Stocks (Cost $5,281,641).................................. 5,576,220
Principal
Amount
- ------
SHORT-TERM OBLIGATIONS - 12.86%
$792,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/98 at
5.00%, due 07/01/98, maturity value
$792,110 (collateralized by U.S. Treasury Note,
8.375%, due 08/15/08, par value $705,000;
market value $813,602) (Cost $792,000)........... 792,000
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
HARRIS ASSOCIATES VALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
(Note 2)
--------
<S> <C> <C>
TOTAL INVESTMENTS (COST $6,073,641*)................. 103.43% $6,368,220
OTHER ASSETS AND LIABILITIES (NET)................... (3.43) (211,649)
----- --------
NET ASSETS........................................... 100.00% $6,156,571
====== ==========
<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
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 55.06%
Financial Services - 13.51%
<S> <C>
250 American Express Company............................................... $28,500
580 Arden Reality, Inc..................................................... 15,007
439 Associates First Capital Corporation, Class A.......................... 33,748
900 Bank of New York Company, Inc.......................................... 54,619
100 Beneficial Corporation................................................. 15,319
1,190 Chubb Corporation...................................................... 95,646
1,080 CIGNA Corporation...................................................... 74,520
655 A.G. Edwards, Inc. .................................................... 27,960
890 Equitable Companies, Inc............................................... 66,694
1,060 Federal Home Loan Mortgage Corporation................................. 49,886
500 Federal National Mortgage Association.................................. 30,375
100 Federated Investments, Inc. +......................................... 1,850
534 First Union Corporation................................................ 31,094
200 Fleet Financial Group, Inc............................................. 16,700
1,200 ING Groep NV........................................................... 78,632
855 Jefferson Pilot Corporation............................................ 49,537
1,130 Lincoln National Corporation........................................... 103,254
200 J.P. Morgan & Company, Inc............................................. 23,425
320 Morgan Stanley, Dean Witter, Discover & Company........................ 29,240
1,530 National City Corporation.............................................. 108,630
730 Nationsbank Corporation................................................ 55,845
390 Northern Trust Corporation............................................. 29,737
1,080 Norwest Corporation.................................................... 40,365
1,650 PNC Bank Corporation................................................... 88,791
1,000 Provident Companies, Inc............................................... 34,500
400 Salomon Smith Barney Holdings, Inc. +................................ 22,375
1,650 Torchmark, Inc. ....................................................... 75,487
490 Transamerica Corporation............................................... 56,411
------
1,338,147
---------
Energy - 6.01%
680 Amoco Corporation...................................................... 28,305
660 Atlantic Richfield Company............................................. 51,562
420 Baker Hughes, Inc. .................................................... 14,516
1,883 British Petroleum PLC, ADR ............................................ 166,175
760 Exxon Corporation...................................................... 54,197
320 Mobil Corporation...................................................... 24,520
1,030 Occidental Petroleum Company........................................... 27,810
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCK - (Continued)
Energy - (Continued)
<S> <C>
660 Royal Dutch Petroleum Company, NY Shares............................... $36,176
200 Schlumberger, Ltd...................................................... 13,663
1,290 Texaco, Inc. .......................................................... 76,997
1,110 Unocal Corporation..................................................... 39,683
1,800 USX-Marathon Group..................................................... 61,762
------
595,366
-------
Technology - 5.47%
1,070 Alcatel Alsthom CGE, ADR............................................... 43,536
2,440 Allied Signal, Inc..................................................... 108,275
600 Analog Devices, Inc.................................................... 14,738
189 Compaq Computer Corporation ......................................... 5,363
1,100 General Dynamics Corporation........................................... 51,150
940 International Business Machines Corporation............................ 107,924
430 Lockheed Martin Corporation............................................ 45,526
366 Raytheon Company, Class A.............................................. 21,091
680 Raytheon Company, Class B.............................................. 40,205
1,340 TRW, Inc............................................................... 73,198
110 United Technologies Corporation........................................ 10,175
200 Xerox Corporation...................................................... 20,325
------
541,506
-------
Utilities - 5.18%
650 CMS Energy Corporation................................................. 28,600
1,500 Carolina Power & Light Company......................................... 65,062
1,100 Cinergy Corporation.................................................... 38,500
1,360 Coastal Corporation.................................................... 94,945
870 Columbia Energy Group.................................................. 48,394
90 Eastern Enterprises.................................................... 3,859
180 FPL Group, Inc......................................................... 11,340
510 GPU, Inc. ............................................................. 19,284
1,000 MarketSpan Corporation +............................................... 29,938
850 New Century Energies, Inc.............................................. 38,622
930 Pacificorp............................................................. 21,041
810 Pinnacle West Capital Corporation...................................... 36,450
1,750 Southern Company....................................................... 48,453
900 UGI Corporation........................................................ 22,387
170 Williams Companies, Inc................................................ 5,737
-----
512,612
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Drugs & Health Care - 4.21%
<S> <C>
1,490 American Home Products Corporation..................................... $77,108
200 Baxter International, Inc.............................................. 10,763
1,420 Bristol Myers Squibb Company........................................... 163,211
1,900 Columbia/HCA Healthcare Corporation.................................... 55,337
870 Glaxo Wellcome, PLC, ADR............................................... 52,037
430 SmithKline Beecham, PLC, ADR........................................... 26,015
520 United Healthcare Corporation.......................................... 33,020
------
417,491
-------
Communications - 3.59%
970 AT&T Corporation....................................................... 55,411
840 Bell Atlantic Corporation.............................................. 38,325
150 BellSouth Corporation.................................................. 10,069
1,870 GTE Corporation........................................................ 104,019
1,540 SBC Communications, Inc................................................ 61,600
990 Sprint Corporation..................................................... 69,795
420 Telephone & Data Systems, Inc.......................................... 16,537
------
355,756
-------
Capital Goods - 3.31%
1,300 Browning Ferris Industries, Inc........................................ 45,175
810 Cooper Industries, Inc. ............................................... 44,499
300 Deere & Company........................................................ 15,862
500 Emerson Electric Company............................................... 30,187
1,320 General Electric Company............................................... 120,120
800 Hubbell, Inc. ......................................................... 33,300
540 Tyco International, Ltd................................................ 34,020
110 York International Corporation......................................... 4,792
-----
327,955
-------
Consumer Discretionary - 3.24%
1,296 Diageo PLC ............................................................ 15,364
260 Eastman Kodak Company.................................................. 18,996
370 Fred Meyer, Inc., (New) +.............................................. 15,725
890 J.C. Penney, Inc. ..................................................... 64,358
2,430 Rite Aid Corporation................................................... 91,277
1,100 Safeway, Inc. +........................................................ 44,756
1,160 Sears Roebuck & Company................................................ 70,833
------
321,309
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Materials and Processing - 2.66%
<S> <C>
465 Akzo Nobel NV ......................................................... $103,443
860 Air Products and Chemicals, Inc. ...................................... 34,400
550 Aluminum Company of America............................................ 36,266
70 Dow Chemical Company................................................... 6,768
550 B.F. Goodrich Company.................................................. 27,294
1,190 Weyerhaeuser Company................................................... 54,963
------
263,134
-------
Consumer Staples - 2.44%
2,750 Archer Daniels Midland Company......................................... 53,281
80 Colgate Palmolive Company.............................................. 7,040
420 General Mills, Inc..................................................... 28,718
900 Hormel Foods Corporation............................................... 31,106
800 McCormick & Company, Inc. ............................................. 28,575
30 Nestle SA ............................................................. 64,307
870 Rubbermaid, Inc........................................................ 28,873
------
241,900
-------
Autos & Transportation - 1.60%
480 Canadian National Railway Company...................................... 25,500
580 Ford Motor Company..................................................... 34,220
300 Lear Corporation +................................................... 15,394
730 Norfolk Southern Corporation........................................... 21,763
2,090 Volvo Aktiebolaget AB.................................................. 61,786
------
158,663
-------
Real Estate - 0.83%
530 Boston Properties, Inc................................................. 18,285
560 Hospitality Properties Trust........................................... 17,990
800 Prime Group Realty Trust............................................... 13,700
950 TriNet Corporate Realty Trust, Inc. ................................... 32,300
------
82,275
------
Basic Industry - 0.75%
850 Champion International Corporation..................................... 41,809
700 Kimberly Clark Corporation............................................. 32,113
------
73,922
------
Broadcasting - 0.71%
1,200 Viacom, Inc. +......................................................... 69,900
------
Consumer Basic - 0.57%
1,430 Phillip Morris Companies, Inc.......................................... 56,306
------
Chemicals - 0.35%
690 Hoechst AG ............................................................ 34,721
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS (Continued)
Miscellaneous - 0.35%
<S> <C>
450 CVS Automatic Com Exchange Securities Trust............................ $34,341
-------
General Business - 0.28%
650 Service Corporation International...................................... 27,869
------
Total Common Stocks (Cost $4,907,467).................................. 5,453,173
---------
PREFERRED STOCKS - 1.39%
740 Henkel KGAA ........................................................... 73,243
170 McKesson Financing Trust, 144A......................................... 19,359
780 Newell Financial Trust, 144A........................................... 45,240
------
Total Preferred Stocks (Cost $104,774)................................. 137,842
-------
Principal
Amount
- ------
CORPORATE BONDS AND NOTES - 20.22%
$10,000 Airtouch Communications, Inc.,
6.65%, due 05/01/2008........................................... 10,077
3,000 American Standard, Inc.,
7.625%, due 02/15/2010.......................................... 2,940
19,000 Atlantic Mutual Insurance Company, 144A
8.15%, due 02/15/2028........................................... 19,638
25,000 B E Aerospace Company,
8.00%, due 03/01/2008........................................... 24,938
8,000 Bear Stearns Companies, Inc.,
6.20%, due 03/30/2003.......................................... 8,017
25,000 Beaver Valley II Funding Corporation,
9.00, due 06/01/2017............................................ 28,589
5,000 Belco Oil & Gas Corporation,
8.875%, due 09/15/2007.......................................... 4,825
5,000 Burlington Industries, Inc,
7.25%, due 08/01/2027........................................... 5,158
5,000 Capital One Bank,
6.70%, due 05/15/2008........................................... 5,053
20,000 Cellular Communications International, Inc., 144A,
6.00%, due 04/01/2005........................................... 28,400
200,000 Century Communications Corporation,
0.00%, due 03/15/2004........................................... 90,750
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
$10,000 Chancellor Media Corporation,
<S> <C>
8.75%, due 06/15/2007........................................... $10,425
5,000 Circus Circus Enterprises, Inc,
7.00%, due 11/15/2036........................................... 4,841
5,000 Clark Refining & Marketing, Inc.,
8.375%, due 11/15/2007.......................................... 4,941
10,000 Cleveland Electric Illuminating Company, 144A
7.88%, due 11/01/2017........................................... 10,915
5,000 Cliffs Drilling Company,
10.25%, due 05/15/2003.......................................... 5,350
55,000 Coastal Corporation,
6.95%, due 06/02/2028........................................... 53,134
68,000 Coastal Corporation,
7.42%, due 02/15/2037........................................... 71,093
3,000 Columbia/HCA Healthcare Corporation,
6.875%, due 07/15/2001.......................................... 2,942
5,000 Columbia/HCA Healthcare Corporation,
6.91%, due 06/15/2005........................................... 4,856
25,000 Columbia/HCA Healthcare Corporation,
7.69%, due 06/15/2025........................................... 24,155
5,000 Commonwealth Edison Company,
7.625, due 01/15/2007........................................... 5,315
5,000 Connecticut Light & Power Company,
7.875%, due 10/01/2024.......................................... 5,101
12,000 Conseco Inc.,
6.40%, due 06/15/2001........................................... 11,992
5,000 Consumers Energy Company,
6.375%, due 02/01/2008.......................................... 4,922
12,000 Contifinancial Corporation,
7.50%, due 03/15/2002........................................... 11,945
5,000 Continental Airlines,
6.648%, due 03/15/2019.......................................... 5,102
30,000 Continental Cablevision, Inc,
11.00%, due 06/01/2007.......................................... 32,754
100,000 Crimi Mae Commercial Mortgage Trust, 144A
7.00%, due 03/02/2011........................................... 98,031
5,000 Donaldson, Lufkin & Jenrette,
6.50%, due 06/01/2008........................................... 5,000
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
$7,000 Fairfax Financial Holdings, Ltd.,
<S> <C>
7.375%, due 04/15/2018.......................................... $7,181
9,854 Federal Express Corporation,
7.65%, due 01/15/2014........................................... 10,680
10,000 Federal Mogul Corporation,
7.50%, due 07/01/2004........................................... 9,980
5,000 Federal Mogul Corporation,
7.75%, due 07/01/2006........................................... 4,998
5,000 First Empire Capital Trust,
8.234%, due 02/01/2027.......................................... 5,478
5,000 Ford Motor Company,
8.90%, due 01/15/2032........................................... 6,399
8,000 Ford Motor Credit Company,
6.125%, due 04/28/2003.......................................... 8,001
20,000 FrontierVision Operation Partnership, LP,
11.00%, due 10/15/2006.......................................... 22,692
28,748 GGIB Funding Corporation,
7.43%, due 01/15/2011........................................... 28,884
10,000 Georgia Pacific Corporation,
9.50%, due 05/15/2022........................................... 11,661
6,000 Georgia Pacific Corporation,
7.25%, due 06/01/2028........................................... 6,120
100,000 Goldman Sachs Group, LP, 144A
5.90%, due 01/15/2003........................................... 98,680
30,000 Gulf Canada Resources Ltd.,
9.25%, due 01/15/2004........................................... 31,358
5,000 Healthsouth Corporation, 144A,
6.875%, due 06/15/2005.......................................... 5,002
58,000 Hearst Argyle Television, Inc.,
7.50%, due 11/15/2027........................................... 61,784
8,000 Tommy Hilfiger, USA, Inc.,
6.50%, due 06/01/2003........................................... 7,993
6,000 Tommy Hilfiger, USA, Inc.,
6.85%, due 06/01/2008........................................... 5,994
5,000 Honeywell, Inc.,
6.625%, due 06/15/2028.......................................... 5,063
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
$5,000 KCS Energy,
<S> <C>
8.875%, due 01/15/2008.......................................... $4,750
6,000 Lasmo USA, Inc.,
7.30%, due 11/15/2027........................................... 5,982
5,000 Lehman Brothers, Inc.,
6.50%, due 04/15/2008........................................... 5,026
15,000 MBNA Capital 1,
8.278%, due 12/01/2026.......................................... 16,263
10,000 Marsh Supermarkets, Inc.,
8.875%, due 08/01/2007.......................................... 10,200
10,000 McDermott, Inc.,
9.375%, due 03/15/2002.......................................... 10,708
2,846 Midland Funding Corporation,
Series C, 10.33%, due 07/23/2002................................ 3,078
5,000 Nabisco, Inc.,
6.375%, due 02/01/2035.......................................... 4,968
15,000 Natexis Ambs Company, 144A
8.44%, due 12/29/2049........................................... 14,949
5,000 News America Holdings, Inc.,
8.00%, due 10/17/2016........................................... 5,509
5,000 News America Holdings, Inc.,
7.75%, due 12/01/2045........................................... 5,366
5,000 News America, Inc.,
6.625%, due 01/09/2008.......................................... 4,993
5,000 Niagara Mohawk Power Corporation,
7.75%, due 05/15/2006........................................... 5,349
5,000 Niagara Mohawk Power Corporation,
8.75%, due 04/01/2022........................................... 5,500
5,000 Niagara Mohawk Power Corporation,
8.50%, due 07/01/2023........................................... 5,533
20,000 Nortek, Inc.,
9.25%, due 03/15/2007........................................... 20,400
10,000 Northwest Airlines, Inc.,
7.625%, due 03/15/2005.......................................... 10,039
5,000 Northwest Airlines, Inc.,
8.70%, due 03/15/2007........................................... 5,249
75,000 Oryx Energy Company,
8.375%, due 07/15/2004.......................................... 80,860
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
$10,000 Outdoor Systems, Inc.,
<S> <C>
8.875%, due 06/15/2007.......................................... $10,413
100,000 Owens Illinois, Inc.,
7.35%, due 05/15/2008........................................... 101,244
100,000 Owens Illinois, Inc.,
7.50%, due 05/15/2010........................................... 101,397
100,000 Owens Illinois, Inc.,
7.80%, due 05/15/2018........................................... 102,561
4,000 Paine Webber Group, Inc.,
6.55%, due 04/15/2008........................................... 3,973
15,000 Petroleum Geo Services,
7.125%, due 03/30/2028.......................................... 15,181
10,000 Polymer Group, Inc.,
9.00%, due 07/01/2007........................................... 10,175
9,000 Riggs Capital II,
8.875%, due 03/15/2027.......................................... 10,157
10,000 Salton Sea Funding Group Corporation,
7.84%, due 05/30/2010........................................... 10,884
45,794 Seabrook 1,
7.83%, due 01/01/2019........................................... 48,654
5,000 Snyder Oil Corporation,
8.75%, due 06/15/2007........................................... 5,025
10,000 Solutia, Inc.,
7.375%, due 10/15/2027.......................................... 10,367
99,000 Sun, Inc.,
9.00%, due 11/01/2024........................................... 122,997
5,000 TCI Communications Financing III,
9.65%, due 03/31/2027........................................... 6,125
7,000 TCI Communications, Inc.,
6.375%, due 05/01/2003.......................................... 7,051
5,000 TCI Communications, Inc.,
8.00%, due 08/01/2005........................................... 5,460
10,000 Tele-Communications, Inc.,
6.34%, due 02/01/2002........................................... 9,963
20,000 Tennessee Gas Pipeline Company,
7.625%, due 04/01/2037.......................................... 21,647
5,000 Texas Gas Transmission Corporation,
7.25%, due 07/15/2027........................................... 5,203
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
$15,000 Texas Utilities Electric Company
<S> <C>
6.375%, due 01/01/2008.......................................... $14,699
25,000 Time Warner, Inc., 144A,
6.10%, due 12/30/2001........................................... 24,878
9,000 Time Warner, Inc.,
9.125%, due 01/15/2013.......................................... 10,953
41,000 Time Warner, Inc.,
9.15%, due 02/01/2023........................................... 51,691
36,000 Time Warner, Inc.,
0.00%, due 01/15/2036........................................... 11,713
5,000 Transocean Offshore, Inc.,
8.00%, due 04/15/2027........................................... 5,674
5,000 United Illuminating Company,
6.25%, due 12/15/2002........................................... 4,966
10,000 US Timberlands Company,
9.625%, due 11/15/2007.......................................... 10,125
15,000 Viacom, Inc.,
6.75%, due 01/15/2003........................................... 15,150
5,000 Vintage Petroleum, Inc.,
8.625%, due 02/01/2009.......................................... 5,050
13,000 Waterford 3 Funding Corporation,
8.09%, due 01/02/2017........................................... 13,475
10,000 Washington Mutual Capital I,
8.375%, due 06/01/2027.......................................... 11,281
20,000 Williams Scotsman, Inc.,
9.875%, due 06/01/2007.......................................... 20,800
5,000 Wiser Oil Company,
9.50%, due 05/15/2007........................................... 4,700
5,000 WorldCom, Inc.,
8.875%, due 01/15/2006.......................................... 5,439
35,000 Xerox Corporation,
0.00%, due 04/21/2018........................................... 19,950
------
Total Corporate Bonds and Notes (Cost $1,966,181)............... 2,002,890
---------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
The LPT Variable INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Principal Value
Amount (Note 2)
- ------ --------
TREASURY OBLIGATIONS - 12.44%
U.S. Treasury Notes - 11.80%
<S> <C>
$127,000 8.50%, due 02/15/2000........................................... $132,775
150,000 5.75%, due 11/15/2000........................................... 150,738
60,000 6.625%, due 03/31/2002.......................................... 62,147
662,000 6.25%, due 08/31/2002........................................... 679,272
25,000 7.875%, due 11/15/2004.......................................... 28,078
15,000 7.00%, due 07/15/2006........................................... 16,380
98,000 5.625%, due 05/15/2008.......................................... 99,332
------
1,168,722
---------
U.S. Treasury Bond - 0.64%
59,000 6.125%, due 11/15/2027.......................................... 63,222
------
Total Treasury Obligations (Cost $1,227,144).................... 1,231,944
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 3.12%
Government National Mortgage Association (GNMA) - 2.12%
9,470 REMIC, 8.00%, due 06/20/2025.................................... 9,763
73,220 Pool #432725, 8.00%, due 07/15/2026............................. 75,874
33,032 Pool #247754, 7.50%, due 11/15/2026............................. 33,950
32,511 Pool #453937, 7.50%, due 08/15/2027............................. 33,415
28,133 Pool #455301, 7.50%, due 09/15/2027............................. 28,916
27,665 Pool #469399, 7.00%, due 03/15/2028............................. 28,105
------
Total GNMA (Cost $209,376)...................................... 210,023
-------
Federal National Mortgage Association (FNMA) - 1.00%
98,315 Pool #251618, 6.50%, due 03/01/2001 (Cost $98,914).............. 98,868
------
Total U.S. Government Agency Obligations (Cost $308,290) 308,891
-------
EUROBONDS - 0.88%
10,000 Banco Commercial SA,
8.25%, due 02/05/2007........................................... 9,872
50,000 Cerro Negro Finance, Ltd., 144A
7.90%, due 12/01/2020........................................... 49,000
4,000 Corporacion Andina De Fomento,
7.10%, due 02/01/2003........................................... 4,041
8,000 Deutsche Fianance NV, 144A
0.00%, due 02/17/2017........................................... 4,460
5,000 Empresa Nacional De Electric,
7.325%, due 02/01/2037.......................................... 4,885
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
MFS TOTAL RETURN PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998
Principal Value
Amount (Note 2)
- ------ --------
EUROBONDS (Continued)
$10,000 Hidroelectrica Arcura, 144A,
<S> <C>
8.375%, due 03/15/1999.......................................... $9,950
5,000 UPM Kymmene Corporation,
7.45%, due 11/26/2027........................................... 5,295
-----
Total Eurobonds (Cost $87,882).................................. 87,503
------
SHORT-TERM OBLIGATIONS - 10.20 %
Repurchase Agreement - 10.20%
1,010,000 Repurchase Agreement with State Street Bank & Trust
Company, dated 06/30/98 at 5.00%, due 07/01/98,
maturity value $1,010,140 (collateralized by U.S. Treasury
Note, 8.375%, due 08/15/08, par value $895,000:
market value $1,032,870) (Cost $1,010,000)...................... 1,010,000
---------
Shares Investment Company - 0.00%
- ------
730 Seven Seas Money Market Fund (Cost $730)........................ 730
---
Total Short-Term Obligations (Cost $1,010,730).................. 1,010,730
---------
TOTAL INVESTMENTS (COST $9,612,468*)................. 103.31% 10,232,973
OTHER ASSETS AND LIABILITIES......................... (3.31) (328,063)
----- --------
NET ASSETS........................................... 100.00% $9,904,910
====== ==========
<FN>
* Aggregate cost for Federal tax purposes (Note 4)
+ Non-income producing security
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 $110,995 or
1.86% of net assets.
</FN>
</TABLE>
---------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depository Receipt
REMIC Real Estate Mortgage Investment Conduit
---------------- ----------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
BERKELEY U.S. QUALITY BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Principal Value
Amount (Note 2)
- ------ --------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 67.61%
Federal National Mortgage Association (FNMA) - 42.35%
<S> <C>
$100,000 REMIC, 6.74%, due 08/25/2007.................................... $104,633
2,846 Pool #100090, 14.50%, due 11/01/2014............................ 3,500
5,741 Pool #303791, 12.50%, due 08/01/2015............................ 6,731
8,564 Pool #100089, 13.00%, due 11/01/2015............................ 10,295
5,841 Pool #303792, 11.50%, due 09/01/2019............................ 6,653
25,000 REMIC, 5.00%, due 12/25/2021.................................... 22,664
53,000 REMIC, 5.00%, due 04/25/2022.................................... 49,190
15,000 REMIC, 7.00%, due 11/25/2022.................................... 15,558
15,000 REMIC, 5.00%, due 04/25/2024.................................... 13,505
197,805 Pool #250845, 6.50%, due 11/01/2026............................. 193,245
98,747 Pool #396818, 6.50%, due 08/01/2027............................. 98,345
92,448 Pool #331325, 7.00%, due 11/01/2027............................. 93,748
------
Total FNMA (Cost $605,316)...................................... 618,067
-------
Student Loan Marketing Association (SLMA) - 8.85%
125,000 7.20%, due 11/09/2000 (Cost $127,327)........................... 129,160
-------
Federal Home Loan Bank (FHLB) - 8.61%
125,000 5.89%, due 07/24/2000 (Cost $124,413)........................... 125,605
-------
Federal Home Loan Mortgage Corporation (FHLMCB) - 7.80%
36,515 Pool #251137, 11.75%, due 08/01/2014 ........................... 41,473
20,000 Series G, 5.50%, due 05/22/2025................................. 19,037
53,000 Series 2068, 6.50%, due 03/15/2026.............................. 53,389
------
Total FHLMCB (Cost $112,331).................................... 113,899
-------
Total U.S. Government Agency Obligations
(Cost $969,387)................................................. 986,731
-------
CORPORATE BONDS AND NOTES - 13.85%
35,000 Ford Capital Corporation,
9.875%, due 05/15/2002.......................................... 39,329
50,000 Gap, Inc.,
6.90%, due 09/15/2007........................................... 52,147
50,000 Merrill Lynch & Company, Inc.,
7.375%, due 05/15/2006.......................................... 53,464
25,000 Occidental Petroleum, 9.25%
Due 08/01/2001.................................................. 31,132
25,000 Salomon, Inc.,
6.875%, due 06/15/2005.......................................... 26,019
------
Total Corporate Bonds and Notes (Cost $199,672) ................ 202,091
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
BERKELEY U.S. QUALITY BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
U.S. TREASURY BOND - 11.60%
<S> <C>
150,000 6.625%, due 02/15/2027 (Cost $144,891)......................... $ 169,383
-----------
INVESTMENT COMPANY - 3.42%
Shares
50,000 Seven Seas Money Market Fund (Cost $50,000).................... 50,000
------
TOTAL INVESTMENTS (COST $1,363,950*)................. 96.48% 1,408,205
OTHER ASSETS AND LIABILITIES (NET)................... 3.52 51,313
---- ------
NET ASSETS........................................... 100.00% $1,459,518
====== ==========
<FN>
* Aggregate cost for Federal tax purposes (Note 4)
</FN>
</TABLE>
- --------------------------------------------------------------------------------
GLOSSARY OF TERMS
REMIC Real Estate Mortgage Investment Conduit
- --------------------------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
BERKELEY MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Principal Value
Amount (Note 2)
- ------ --------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 76.38%
Federal Home Loan Bank (FHLB) - 17.86%
<S> <C>
$300,000 5.41%, due 07/02/1998+ (Cost $299,955).......................... $299,955
--------
Federal Home Loan Mortgage Corporation (FHLMC) - 14.98%
150,000 5.47%, due 07/29/1998+.......................................... 149,362
32,000 5.58%, due 08/07/1998+.......................................... 31,816
42,000 5.58%, due 08/13/1998+.......................................... 41,720
29,000 5.58%, due 08/26/1998+.......................................... 28,748
------
Total FHLMC (Cost $251,646) .................................... 251,646
-------
Federal National Mortgage Association (FNMA) - 14.84%
130,000 5.38%, due 07/10/1998+ ......................................... 129,825
120,000 5.47%, due 07/27/1998+ ......................................... 119,526
-------
Total FNMA (Cost $249,351) ..................................... 249,351
-------
Federal Agriculture Mortgage Corporation (FAMC) - 14.82%
52,000 5.60%, due 07/10/1998+.......................................... 51,927
200,000 5.41%, due 10/09/1998+.......................................... 196,994
-------
Total FAMC (Cost $248,921) ..................................... 248,921
-------
Federal Farm Credit Bank (FFCB) - 13.88%
113,000 5.50%, due 07/09/1998+.......................................... 112,862
34,000 5.60%, due 07/15/1998+ ......................................... 33,926
87,000 5.40%, due 08/17/1998+.......................................... 86,387
------
Total FFCB (Cost $233,175)...................................... 233,175
-------
Total U.S. Government Agency Obligations
(Cost $1,283,048) .............................................. 1,283,048
---------
COMMERCIAL PAPER - 7.44%
50,000 American Express Credit Corporation,
5.51%, due 07/02/1998+ ......................................... 49,993
75,000 Ford Motor Credit Corporation,
5.50% , due 07/06/1998+......................................... 74,943
------
Total Commercial Paper (Cost $124,936).......................... 124,936
-------
REPURCHASE AGREEMENT - 14.59%
245,000 Repurchase Agreement with State Street Bank & Trust
Company, dated 06/30/98 at 5.00%, due 07/01/98,
maturity value $245,034 (collateralized by U.S. Treasury
Note, 8.375%, due 08/15/08, par value $220,000:
market value $253,890) (Cost $245,000)............................. 245,000
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
BERKELEY MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
(Note 2)
--------
<S> <C> <C>
TOTAL INVESTMENTS (COST $1,652,984*)................. 98.41% $1,652,984
OTHER ASSETS AND LIABILITIES (NET)................... 1.59 26,766
---- ------
NET ASSETS........................................... 100.00% $1,679,750
====== ==========
<FN>
* Aggregate cost for Federal tax purposes
+ Rate represents annualized yield at date of purchase
</FN>
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
INTERNATIONAL STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 92.16%
Netherlands - 28.24%
<S> <C>
1,600 ABN AMRO Holding, NV, ADR.............................................. $37,500
475 Aegon, NV, ADR......................................................... 41,087
700 Royal Dutch Petroleum Company, ADR..................................... 38,369
------
116,956
-------
United Kingdom - 27.47%
17,500 Bluebird Toys, PLC,.................................................... 32,726
650 Cadbury Schweppes, PLC, ADR............................................ 40,056
325 Vodafone Group, PLC, ADR............................................... 40,971
------
113,753
-------
Switzerland - 9.53%
475 Novartis AG, ADR....................................................... 39,484
------
Spain - 9.42%
770 Banco de Santander, ADR................................................ 39,029
------
France - 8.84%
900 Alcatel Alsthom CGE, ADR............................................... 36,619
------
United States - 8.66%
525 Schlumberger, Ltd...................................................... 35,864
------
Total Common Stocks (Cost $389,736) ................................... 381,705
-------
INVESTMENT COMPANY - 4.83%
20,000 Seven Seas Money Market Fund (Cost $20,000)............................ 20,000
------
TOTAL INVESTMENTS (COST $409,736*)................... 96.99% $401,705
OTHER ASSETS AND LIABILITIES (NET)................... 3.01 12,461
---- ------
NET ASSETS........................................... 100.00% $414,166
====== ========
<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
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
INTERNATIONAL STOCK PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
As of June 30,1998 sector diversification of the Portfolio was as follows:
% of Value
Sector Diversification Net Assets (Note 2)
---------------------- ---------- --------
COMMON STOCKS:
<S> <C> <C>
Consumer Basic....................................... 19.21% $79,541
Communications....................................... 18.73 77,589
Banking.............................................. 18.48 76,529
Energy............................................... 17.92 74,233
Insurance............................................ 9.92 41,087
Consumer Non-Durables................................ 7.90 32,726
---- ------
COMMON STOCKS........................................ 92.16 381,705
SHORT TERM OBLIGATIONS ............................ 4.83 20,000
---- ------
TOTAL INVESTMENTS.................................... 96.99 401,705
OTHER ASSETS AND LIABILITIES (Net)................... 3.01 12,461
---- ------
NET ASSETS........................................... 100.00% $414,166
====== ========
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 99.22%
Consumer Discretionary - 23.80%
<S> <C>
500 Best Buy Company, Inc. +............................................. $18,062
1,400 Carnival Corporation................................................... 55,475
700 Coca Cola Company...................................................... 59,850
1,300 CVS Corporation........................................................ 50,619
1,000 Dayton Hudson Corporation.............................................. 48,500
2,175 Dollar Tree Stores, Inc. +............................................. 88,359
600 Gap, Inc............................................................... 36,975
200 Gillette Company....................................................... 11,337
700 Home Depot, Inc. ...................................................... 58,144
3,000 Kohl's Corporation +................................................... 155,625
3,000 Lowes Companies, Inc................................................... 121,687
500 Fred Meyer, Inc. (New) +............................................... 21,250
300 Michaels Stores, Inc. +............................................. 10,584
900 Office Depot, Inc. +................................................... 28,406
500 Outback Steakhouse, Inc. +............................................. 19,500
600 Procter & Gamble Company............................................... 54,637
1,800 Safeway, Inc. +........................................................ 73,237
700 Stage Stores, Inc. +................................................... 31,675
2,000 Staples, Inc. +........................................................ 57,875
1,200 Starbucks Corporation +.............................................. 64,125
1,500 Wal-Mart Stores, Inc. ................................................. 91,125
1,200 Walgreen Company....................................................... 49,575
------
1,206,622
---------
Technology - 20.82%
500 BMC Software, Inc. +................................................ 25,969
1,300 CBT Group Publishing, Ltd., ADR +...................................... 69,550
1,250 Cisco Systems, Inc. +.................................................. 115,078
500 Citrix Systems, Inc. +.............................................. 34,187
800 Compuware Corporation +............................................... 40,900
500 Dell Computer Corporation +.......................................... 46,406
500 J.D. Edwards & Company +............................................. 21,469
1,500 Fore Systems, Inc. +................................................ 39,750
2,700 HBO & Company.......................................................... 95,175
500 Information Management Resources, Inc. +............................ 16,906
1,150 Lucent Technologies, Inc. ............................................. 95,666
1,200 Microsoft Corporation +............................................... 130,050
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Technology (Continued)
<S> <C>
450 Networks Associates, Inc. +......................................... $21,544
700 Peoplesoft, Inc. +..................................................... 32,900
1,200 Saville Systems, PLC, ADR +........................................... 60,150
1,000 Tellabs, Inc. +........................................................ 71,625
1,000 Uniphase Corporation +................................................ 62,781
1,000 Visio Corporation +................................................. 47,750
900 Vitesse Semiconductor Corporation +.................................. 27,788
------
1,055,644
---------
Drugs & Health Care - 13.53%
800 Boron Lepore & Associates, Inc. +................................... 30,400
500 Bristol Myers Squibb Company........................................... 57,469
600 Cardinal Health, Inc. ................................................. 56,250
900 Elan, PLC, ADR +..................................................... 57,881
200 Guidant Corporation.................................................... 14,263
1,200 McKesson Corporation (New)............................................. 97,500
1,000 Medtronic, Inc. ....................................................... 63,750
200 Parexel International Corporation +.................................... 7,275
1,000 Pfizer, Inc. .......................................................... 108,688
500 Quintiles Transnational Corporation +................................ 24,594
800 Schering-Plough Corporation............................................ 73,300
600 Sybron International Corporation +................................... 15,150
700 Total Renal Care Holdings, Inc. +................................... 24,150
800 Warner Lambert Company................................................. 55,500
------
686,170
-------
Financial Services - 10.30%
600 American Express Company............................................... 68,400
200 American International Group, Inc...................................... 29,200
300 Associates First Capital Corporation................................... 23,063
800 Federal Home Loan Mortgage Corporation................................. 37,650
500 Federal National Mortgage Association.................................. 30,375
1,000 Household International, Inc........................................... 49,750
300 MGIC Investment Corporation............................................ 17,119
400 Metris Companies, Inc. ................................................ 25,500
700 Morgan Stanley, Dean Witter, Discover & Company........................ 63,963
300 Nationwide Financial Services, Inc..................................... 14,346
400 Northern Trust Corporation............................................. 30,500
1,400 Travelers Group, Inc. ................................................. 84,875
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Financial Services (Continued)
<S> <C>
600 U.S. Bancorp .......................................................... $25,800
500 Washington Mutual, Inc................................................. 21,719
------
522,260
-------
Business Services - 9.16%
800 Accustaff, Inc. +................................................... 25,000
300 Envoy Corporation (New) +............................................. 14,213
850 Fiserv, Inc. +...................................................... 36,098
1,600 Lamar Advertising Company, Class A +................................. 57,400
300 Lason Holdings, Inc. +.............................................. 16,350
2,600 Outdoor Systems, Inc. +................................................ 72,800
1,400 Paychex, Inc. ......................................................... 56,962
1,600 Robert Half International, Inc. +...................................... 89,400
1,900 Romac International, Inc. +............................................ 57,713
600 Snyder Communications, Inc. +.......................................... 26,400
600 Sykes Enterprises, Inc. +........................................... 12,038
------
464,374
-------
Communications - 6.89%
900 American Online, Inc................................................... 95,400
600 Clear Channel Communication, Inc. +................................. 65,475
300 Intermedia Communications, Inc. + .................................. 12,581
1,000 International Telecommunications Systems, Inc. ........................ 29,000
400 Jacor Communications, Inc. +......................................... 23,600
300 MCI Communications Corporation......................................... 17,437
400 Sprint Corporation..................................................... 28,200
1,600 WorldCom, Inc. +....................................................... 77,500
------
349,193
-------
Broadcasting & Publishing - 4.56%
1,400 Ascend Communications, Inc. +....................................... 69,387
500 Chancellor Media Corporation +........................................ 24,828
400 Heftel Broadcasting Corporation +..................................... 17,900
1,300 Tele-Communications, Inc. +............................................ 50,456
600 Time Warner, Inc....................................................... 51,263
300 Viacom, Inc. +...................................................... 17,475
------
231,309
-------
Capital Goods - 3.58%
1,300 General Electric Company............................................... 118,300
1,000 Tyco International, Ltd. .............................................. 63,000
------
181,300
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
STRONG GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCK - (Continued)
Electronics - 3.39%
<S> <C>
1,400 Advanced Fibre Communications, Inc. +............................... $56,088
900 Cambridge Technology Partners, Inc. +............................... 49,162
400 Ciena Corporation +.................................................. 27,850
800 Integrated Electrical Services, Inc. +.............................. 16,100
500 Reltec Corporation +................................................. 22,500
------
171,700
Transportation - 1.14%
1,600 Midwest Express Holdings, Inc. +....................................... 57,900
------
Basic Industries - 0.99%
900 Monsanto Company....................................................... 50,287
------
Energy - 0.77%
500 Camco International, Inc............................................... 38,938
------
Consumer Staples - 0.29%
400 American Italian Pasta Company +..................................... 14,900
------
Total Common Stocks (Cost $4,193,862).................................. 5,030,597
---------
Principal
Amount
- ------
REPURCHASE AGREEMENT - 2.11%
$107,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/98 at
5.00%, due 07/01/98, maturity value $107,015
(collateralized by U.S. Treasury Note, 8.375%,
due 08/15/08, par value $95,000; market value
$109,634) (Cost $107,000)............................................. 107,000
-------
TOTAL INVESTMENTS (COST $4,300,862*)................. 101.33% 5,137,597
OTHER ASSETS AND LIABILITIES (NET)................... (1.33) (67,597)
----- -------
NET ASSETS........................................... 100.00% $5,070,000
====== ==========
<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
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 94.39%
Technology - 26.20%
<S> <C> <C>
700 Alliant Techsystems, Inc. +............................................ $44,275
3,000 Aware, Inc. +.......................................................... 33,937
4,000 Business Objects, S A, ADR +......................................... 67,500
5,000 Cellnet Data System, Inc. +......................................... 48,437
4,500 Condor Technology Solutions, Inc. +................................. 66,375
6,000 Egghead, Inc. +........................................................ 50,625
3,000 Electronics for Imaging, Inc. +..................................... 63,375
3,500 Fore Systems, Inc. +................................................ 92,750
2,200 IDT Corporation +.................................................... 66,138
2,000 Input/Output, Inc. +................................................. 35,625
2,000 Inspire Insurance Solutions, Inc. +.................................... 66,500
4,000 Intersolv, Inc. +...................................................... 64,250
7,500 Lumen Technologies, Inc. +.......................................... 66,563
3,500 Microstrategy, Inc. +............................................... 98,875
5,000 Novell, Inc. +...................................................... 63,750
4,800 Splash Technology Holdings, Inc. +.................................. 82,500
5,000 System Software Associates, Inc. +..................................... 35,625
2,000 Telxon Corp. +...................................................... 64,750
10,000 Tidel Technologies, Inc. +............................................. 34,375
1,000 Visio Corporation +.................................................. 47,750
3,500 Xylan Corporation +.................................................. 104,344
-------
1,298,319
---------
Drugs & Health Care - 13.76%
3,000 Beverly Enterprises, Inc. +............................................ 41,437
1,000 Crompton & Knowles Corporation......................................... 25,188
2,700 Dura Pharmaceuticals, Inc. +........................................... 18,394
4,000 Endocardial Solutions, Inc. +....................................... 42,000
2,000 Gilead Sciences, Inc. +............................................. 64,125
1,000 Incyte Pharmacuticals, Inc. +....................................... 34,125
5,000 Millennium Pharmaceuticals, Inc. +...................................... 70,625
3,700 Molecular Biosystems, Inc. +........................................ 26,594
3,500 Ocular Sciences, Inc. +............................................. 113,750
22 Pharmerica, Inc. +.................................................. 265
6,250 Sabratek Corporation +............................................... 142,188
3,000 Sunrise Assisted Living, Inc. +..................................... 103,125
-------
681,816
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCK (Continued)
Consumer Discretionary - 10.65%
<S> <C>
3,000 Chicos Fashions, Inc. +............................................. $46,500
2,000 The Dress Barn, Inc. +................................................. 49,750
2,000 Eagle Hardware & Garden, Inc. +..................................... 46,250
2,000 Finish Line, Inc. +................................................. 56,250
4,000 Genesis Direct, Inc. +.............................................. 44,500
5,000 Oakley, Inc. +...................................................... 66,875
6,000 Petsmart, Inc. +..................................................... 60,000
4,000 Shaw Industries, Inc. ................................................. 70,500
1,500 Signet Group, PLC +.................................................. 31,969
5,000 Sunglass Hut International, Inc. +.................................. 55,312
------
527,906
-------
Broadcasting & Publishing - 9.24%
2,000 Comcast Corporation +................................................ 81,188
2,000 Cox Communications, Inc. +.......................................... 96,875
4,000 Macromedia, Inc. +.................................................. 74,750
2,000 MediaOne Group, Inc. +.............................................. 87,875
2,000 Tele-Communications, Inc. (New) +..................................... 76,875
2,000 Tele-Communications International, Inc., Series A +.................. 40,188
------
457,751
-------
Communications - 7.54%
5,400 Advanced Radio Telecom Corporation + ............................... 53,325
3,000 Concord Communications, Inc +........................................ 76,687
5,500 IWL Communications, Inc. +............................................. 48,469
10,000 Metrocall, Inc. +................................................... 60,625
8,500 Pagemart Wireless, Inc. +........................................... 77,031
5,000 Startec Global Communications Corporation +......................... 57,500
------
373,637
-------
Financial Services - 5.62%
1,000 Bear Stearns Companies, Inc. .......................................... 56,875
1,750 Golden State Bancorp, Inc. +........................................ 52,063
3,000 Independence Community Bank Corporation +............................ 51,000
3,000 Richmond County Financial Corporation.................................. 56,062
4,000 Southern Pacific Funding Corporation +............................... 62,750
------
278,750
-------
Energy - 4.77%
20,000 Bonus Resource Services Corporation +................................. 52,326
13,000 Superior Energy Services, Inc. +.................................... 65,812
12,000 Zapata Corporation..................................................... 118,500
-------
236,638
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCK (Continued)
Housing - 4.47%
<S> <C>
5,000 Cavalier Homes, Inc.................................................... $64,687
3,000 Oakwood Homes Corporation.............................................. 90,000
1,000 Simpson Manufacturing, Inc. +........................................ 38,625
1,500 Walter Industries, Inc. +.............................................. 28,406
------
221,718
-------
Business Services - 3.53%
2,000 ASA Holdings, Inc. .................................................... 99,250
2,000 Cendant Corporation +................................................ 41,750
1,000 Gartner Group, Inc., (New) +......................................... 34,031
------
175,031
-------
Consumer Durable - 2.11%
2,500 American Homestar Corporation.......................................... 59,844
17,000 Krauses Furniture, Inc. +........................................... 44,625
------
104,469
-------
Materials and Equipment - 1.94%
2,000 EVI Weatherford, Inc. +................................................ 44,550
3,000 Flir Systems, Inc. +................................................ 51,750
------
96,300
------
Consumer Staples - 1.09%
3,500 Omega Protein Corporation +.......................................... 53,813
------
Transportation - 0.96%
2,500 Genesee & Wyoming, Inc. +.............................................. 47,500
------
Utilities - 0.95%
1,500 BJ Services Company +................................................ 47,062
------
Basic Industry - 0.89%
3,250 Euro Nevada Mining, Ltd................................................ 44,282
------
Electrical Equipment - 0.67%
3,000 Electric Lightware, Inc. +.......................................... 33,187
------
Total Common Stocks (Cost $4,671,104).................................. 4,678,179
---------
WARRANTS - 0.43%
4,000 Golden State Bancorp, Inc. (Cost $22,378) +.......................... 21,250
------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Principal Value
Amount (Note 2)
- ------ --------
REPURCHASE AGREEMENT - 4.52%
$224,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/98 at
5.00%, due 07/01/98, maturity value $224,031
(collateralized by U.S. Treasury Note,
8.375%, due 08/15/08, par value $224,000;
<S> <C>
market value $230,809) (Cost $224,000)......................... $224,000
--------
TOTAL INVESTMENTS (COST $4,917,482*)................. 99.34% 4,923,429
OTHER ASSETS AND LIABILITIES (NET)................... (2.08) 32,804
----- ------
NET ASSETS ..................................... 100.00% $4,956,233
====== ==========
<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
<TABLE>
<CAPTION>
The LPT VARIABLE INSURANCE SERIES TRUST
LEXINGTON CORPORATE LEADERS PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 98.95%
Consumer Discretionary - 20.38%
<S> <C>
2,325 Coca Cola Company...................................................... $198,788
2,325 Eastman Kodak Company.................................................. 169,870
2,325 Fortune Brands, Inc. .................................................. 89,367
2,325 McDonalds Corporation.................................................. 160,425
2,325 Philip Morris Companies, Inc........................................... 91,547
2,325 Procter & Gamble Company............................................... 211,720
2,325 Wal-Mart Stores, Inc................................................... 141,244
2,325 Walt Disney Company.................................................... 244,270
-------
1,307,231
---------
Energy - 15.63%
2,325 Chevron Corporation.................................................... 193,120
2,325 Exxon Corporation...................................................... 165,802
2,325 Mobil Corporation...................................................... 178,153
2,325 Royal Dutch Petroleum Company, NY Shares............................... 127,439
2,325 Schlumberger, Ltd...................................................... 158,827
2,325 Texaco, Inc. .......................................................... 138,773
2,325 Union Pacific Resource Group, Inc. .................................... 40,833
------
1,002,947
---------
Financial Services - 10.57%
2,325 American Express Company............................................... 265,050
2,325 J.P. Morgan & Company, Inc............................................. 272,316
2,325 Travelers Group, Inc................................................... 140,953
-------
678,319
-------
Technology - 10.31%
2,325 Allied Signal, Inc..................................................... 103,172
2,325 Boeing Company......................................................... 103,608
2,325 Hewlett Packard Company................................................ 139,209
2,325 Lucent Technologies, Inc. ............................................. 193,411
2,325 Motorola, Inc.......................................................... 122,208
-------
661,608
-------
Autos & Transportation - 9.91%
2,325 Burlington Northern Santa Fe Corporation............................... 228,286
2,325 General Motors Corporation............................................. 155,339
2,325 Goodyear Tire and Rubber Company....................................... 149,817
2,325 Union Pacific Corporation.............................................. 102,591
-------
636,033
-------
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
LEXINGTON CORPORATE LEADERS PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Materials & Processing - 9.04%
<S> <C>
2,325 Aluminum Company of America............................................ $153,305
2,325 Bethlehem Steel Corporation +.......................................... 28,917
2,325 DuPont (E.I.) DeNemours & Company...................................... 173,503
2,325 International Paper Company............................................ 99,975
2,325 Union Carbide Corporation.............................................. 124,097
-------
579,797
-------
Drugs & Health Care - 7.52%
2,325 Johnson & Johnson...................................................... 171,469
2,325 Merck & Company, Inc................................................... 310,969
-------
482,438
-------
Utilities - 7.52%
2,325 Ameren Corporation..................................................... 92,419
2,325 Consolidated Edison Company of New York................................ 107,095
2,325 Duke Energy Company.................................................... 137,756
2,325 Houston Industries, Inc................................................ 71,784
2,325 PG&E Corporation....................................................... 73,383
------
482,437
-------
Producer Durables - 5.21%
2,325 Caterpillar, Inc....................................................... 122,934
2,325 General Electric Company............................................... 211,575
-------
334,509
-------
Communications - 2.07%
2,325 AT&T Corporation....................................................... 132,816
-------
Consumer Staples - 0.79%
2,325 Gallaher Group PLC, ADR .............................................. 50,859
------
Total Common Stocks (Cost $5,647,844).................................. 6,348,994
- ---------
INVESTMENT COMPANY - 1.42 %
91,000 Seven Seas Money Market Fund (Cost $91,000)............................ 91,000
------
TOTAL INVESTMENTS (COST $5,738,844*)................. 100.37% 6,439,994
OTHER ASSETS AND LIABILITIES......................... (0.37) (24,179)
----- -------
NET ASSETS........................................... 100.00% $6,415,815
====== ==========
<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
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
1. Organization and Business
The LPT Variable Insurance Series Trust (the "Trust") was organized under
the laws of the Commonwealth of Massachusetts on January 23, 1995, and is a
business entity commonly known as a "Massachusetts Business Trust". The Trust is
registered under the Investment Company Act of 1940, as amended, (the "1940
Act"), as an open-end series management investment company. The trust offers
eight managed investment portfolios (the "Portfolios") to the public only
through certain variable annuity contracts offered by London Pacific Life and
Annuity Company ("London Pacific"): the Berkeley Money Market Portfolio (the
"Money Portfolio"); the Berkeley U.S. Quality Bond Portfolio (the "Bond
Portfolio"); and the Harris Associates Value, MFS Total Return, International
Stock, Strong Growth, Robertson Stephens Diversified Growth, and Lexington
Corporate Leaders Portfolios (the "Equity Portfolios"). Prior to June 1, 1998,
the International Stock Portfolio was known as the Strong International Stock
Portfolio. Prior to November 3, 1997, the Berkeley Money Market Portfolio was
known as the Salomon Money Market Portfolio and the Berkeley U.S. Quality Bond
Portfolio was known as the Salomon U.S. Quality Bond Portfolio. 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 June 1, 1998, Strong Capital
Management, Inc. served as sub-advisor to the International Stock Portfolio.
Prior to November 3, 1997, Salomon Brothers Asset Management Inc. served as
sub-advisor to the Berkeley Money Market Portfolio and Berkeley U.S. Quality
Bond 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.
Effective May 1, 1998, shares of the International Stock Portfolio are no
longer available for investment.
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.
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
2. Significant Accounting Policies (continued)
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.
Short Sales: The Robertson Stephens Diversified Growth Portfolio may seek
to hedge investments or realize additional gains through short sales. When the
sub-advisor anticipates that the price of a security will decline, it may sell
the security short and borrow the same security from a broker or other
institution to complete the sale. The Portfolio may make a profit or incur a
loss depending upon whether the market price of the security decreases or
increases between the date of the short sale and the date on which the Portfolio
must replace the borrowed security. An increase in the value of a security sold
short by the Portfolio over the price at which it was sold short will result in
a loss to the Portfolio, and there can be no assurance that the Portfolio will
be able to close out the position at any particular time or at an acceptable
price. All short sales must be fully collateralized and marked to market daily.
There were no open positions in short sales at June 30, 1998.
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.
Forward Foreign Currency Contracts: All Portfolios, except the Money Market
Portfolio, may enter into forward foreign currency contracts, whereby the
Portfolios agree to sell a specific currency at a specific price at a future
date in an attempt to attempt to hedge against fluctuations in the value of the
underlying currency of certain investment instruments. Forward foreign currency
contracts are valued at the daily exchange rate of the underlying currency.
Gains or losses on the purchase or sale of forward foreign currency contracts
having the same settlement date and broker are recognized on the date of offset,
otherwise gains or losses are recognized on the settlement date.
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.
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.
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
2. Significant Accounting Policies (continued)
Distributions to Shareholders: Dividends from net investment income are
declared daily and reinvested monthly for the Money Market Portfolio and are
declared and distributed at least annually for all other Portfolios. All
Portfolios, with the exception of the Money Market 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.
Expenses: The Trust accounts separately for assets, liabilities, and
operations of each Portfolio. Expenses directly attributed to a Portfolio are
charged to the Portfolio, while expenses which are attributable to more than one
Portfolio of the Trust are allocated among the respective Portfolios.
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
LPIMC Insurance Marketing Services ("LPIMC"), a wholly owned subsidiary of
London Pacific, serves as investment advisor to the Trust. Berkeley Capital
Management, a wholly owned subsidiary of the London Pacific Group, Ltd., and an
affiliate of London Pacific, serves as sub-advisor to the Berkeley U.S. Quality
Bond and Berkeley Money Market Portfolios. 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,
Strong Capital Management, Inc., a privately held corporation, serves as
sub-advisor to the Strong Growth Portfolio, Robertson Stephens & Company
Investment Management, L.P., an indirect wholly- owned subsidiary of BancAmerica
Robertson Stephens, 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 LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
The Trust pays LPIMC a monthly fee in arrears based on a percentage of the
average daily net assets of each Portfolio during the month, out of which LPIMC
pays the sub-advisor of each Portfolio a monthly fee in arrears at annual rates
as follows:
<TABLE>
<CAPTION>
Fees on Average
Fees on Net Assets Fees on Average
Average Net Between $25 Net Assets
Assets up to Million and Exceeding
Name of Portfolio $25 Million $100 Million $100 Million
----------------- ----------- ------------ ------------
Harris Associates Value
Portfolio (a)
<S> <C> <C> <C>
LPIMC .25% .25% .25%
Sub-advisor .75% .60% .50%
--- --- ---
Total Fees Paid to
LPIMC * 1.00% .85% .75%
==== === ===
</TABLE>
<TABLE>
<CAPTION>
Fees on Average
Fees on Net Assets Fees on Average
Average Net Between $200 Net Assets
Assets up to Million and $1.3 Exceeding $1.3
Name of Portfolio $200 Million Billion Billion
----------------- ------------ ------- -------
MFS Total Return Portfolio
<S> <C> <C> <C>
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
--- --- ---
Total Fees Paid to
LPIMC* .75% .70% .65%
=== === ===
</TABLE>
<TABLE>
<CAPTION>
Fees on
Fees on Average Fees on Average Average Net
Fees on Net Assets Net Assets Assets
Average Net Between $50 Between $150 Between $300
Assets up to Million and $150 Million and $300 Million and
Name of Portfolio $50 Million Million Million $500 Million
----------------- ----------- ------- ------- ------------
Berkeley U.S. Quality Bond
Portfolio (b)
<S> <C> <C> <C> <C>
LPIMC .25% .25% .25% .25%
Sub-advisor .30% .275% .25% .20%
--- ---- --- ---
Total Fees Paid to
LPIMC * .55% .525% .50% .45%
=== ==== === ===
</TABLE>
<TABLE>
<CAPTION>
Fees on
Fees on Average Fees on Average Average Net
Fees on Net Assets Net Assets Assets
Average Between $50 Between $150 Between $300
Net Assets up Million and $150 Million and $300 Million and
Name of Portfolio to $50 Million Million Million $500 Million
- ----------------- -------------- ------- ------- ------------
Berkeley Money Market
Portfolio (b)
<S> <C> <C> <C> <C>
LPIMC .25% .25% .25% .25%
Sub-advisor .20% .175% .15% .10%
--- ---- --- ---
Total Fees Paid
to
LPIMC * .45% .425% .40% .35%
=== ==== === ===
</TABLE>
<TABLE>
<CAPTION>
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
Fees on Average
Net Assets Fees on Average
Fees on Average Between $150 Net Assets
Net Assets up Million and Exceeding $500
to $500
Name of Portfolio $150 Million Million Million
----------------- ------------ ------- -------
International Portfolio (c)
<S> <C> <C> <C>
LPIMC .75% .70% .65%
</TABLE>
<TABLE>
<CAPTION>
Fees on Average
Net Assets Fees on Average
Fees on Average Between $150 Net Assets
Net Assets up Million and Exceeding $500
to $500
Name of Portfolio $150 Million Million Million
----------------- ------------ ------- -------
Strong Growth Portfolio
<S> <C> <C> <C>
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
--- --- ---
Total Fees Paid to
LPIMC* .75% .70% .65%
=== === ===
</TABLE>
<TABLE>
<CAPTION>
Fees on Average Fees on Average
Fees on Average Net Assets Net Assets Fees on Average
Net Assets up Between Between Net Assets
to $10 Million and $35 Million and Exceeding
Name of Portfolio $10 Million $35 Million $200 Million $200 Million
----------------- ----------- ----------- ------------ ------------
Robertson Stephens Diversified
Growth Portfolio (d)
<S> <C> <C> <C> <C>
LPIMC .25% .25% .25% .25%
Sub-advisor .70% .65% .60% .55%
--- --- --- ---
Total Fees Paid to
LPIMC * .95% .90% .85% .80%
=== === === ===
</TABLE>
<TABLE>
<CAPTION>
Fees on Average
Net Assets
Fees on Average Between $10 Fees on Average
Net Assets up Million and Net Assets
to $100 Exceeding $100
Name of Portfolio $10 Million Million Million
----------------- ----------- ------- -------
Lexington Corporate Leaders
Portfolio
<S> <C> <C> <C>
LPIMC .25% .25% .25%
Sub-advisor .40% .35% .30%
--- --- ---
Total Fees Paid to
LPIMC * .65% .60% .55%
=== === ===
<FN>
* 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.
(a) Prior to May 1, 1997, the advisor paid the previous sub-advisor (Miller,
Anderson & Sherrerd, LLP) a sub-advisory fee equivalent on an annual basis
to .625% of the Portfolio's average daily net assets.
(b) Prior to November 3, 1997, the advisor paid the previous
sub-advisor(Salomon Brothers Asset Management) an equivalent sub-advisory
fee.
(c) Prior to June 1, 1998, the advisor paid a sub-advisor (Strong Capital
Management) a sub-advisory fee equivalent on an annual basis to .50% of the
portfolio's average daily net assets.
(d) Prior to May 1, 1997, the advisor paid the previous sub-advisor (Berkeley
Capital Management) a sub- advisory fee equivalent on an annual basis to
.75% of the Portfolio's average daily net assets.
</FN>
</TABLE>
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 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%; Berkeley U.S. Quality
Bond Portfolio - 0.99%; Berkeley Money Market Portfolio - 0.89%; International
Stock Portfolio - 1.49%; Strong Growth Portfolio - 1.29%; Robertson Stephens
Diversified Growth Portfolio - 1.39%; and Lexington Corporate Leaders Portfolio
- - 1.29%), London Pacific has agreed, through December 31, 1998, to reimburse
each Portfolio for expenses in excess of the stated expense limitations. The
expense limitations may be removed or revised after December 31, 1998, without
prior notice to existing shareholders.
For the six months ended June 30, 1998 London Pacific voluntarily agreed to
reimburse the Portfolios as follows:
Name of Portfolio Reimbursement
----------------- -------------
Harris Associates Value Portfolio $15,810
MFS Total Return Portfolio 28,254
Berkeley U.S. Quality Bond Portfolio 18,969
Berkeley Money Market Portfolio 17,337
International Stock Portfolio 36,763
Strong Growth Portfolio 24,971
Robertson Stephens Diversified Growth Portfolio 20,961
Lexington Corporate Leaders Portfolio 12,725
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 year ended June 30, 1998, were as
follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
Portfolio Other Government Other Government
- --------- ----- ---------- ----- ----------
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $3,436,006 $0 $1,257,276 $0
MFS Total Return Portfolio 6,084,910 2,673,510 2,701,692 2,432,715
Berkeley U.S. Quality Bond Portfolio 171,024 169,384 0 16,175
International Stock Portfolio 1,203,649 0 2,478,490 0
Strong Growth Portfolio 5,724,003 0 4,087,252 0
Robertson Stephens Diversified Growth Portfolio 7,980,157 0 6,555,874 0
Lexington Corporate Leaders Portfolio 2,614,024 0 115,973 0
</TABLE>
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
4. Purchases and Sales of Securities (continued)
At June 30, 1998, aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there was an excess of
tax cost over value were as follows: Tax Basis
<TABLE>
<CAPTION>
Net Unrealized
Unrealized Unrealized Appreciation
Portfolio Appreciation Depreciation (Depreciation) Cost
- --------- ------------ ------------ -------------- ----
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $498,651 $204,072 $294,579 $6,073,641
MFS Total Return Portfolio 702,972 82,467 620,505 9,612,468
Berkeley U.S. Quality Bond Portfolio 44,905 650 44,255 1,363,950
International Stock Portfolio 3,081 11,112 (8,031) 409,736
Strong Growth Portfolio 848,063 11,328 836,735 4,300,862
Robertson Stephens Diversified Growth Portfolio 329,785 323,838 5,947 4,917,482
Lexington Corporate Leaders Portfolio 800,680 99,530 701,150 5,738,844
</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 Berkeley 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>
Berkeley Money Market
---------------------
Portfolio
Six Months ended June 30, 1998 Year ended December 31, 1997
Shares and Amounts Shares and Amounts
------------------ ------------------
<S> <C> <C>
Sold $9,686,187 $14,018,379
Issued as reinvestment
of dividends 38,255 76,923
Redeemed (9,417,849) (13,900,532)
---------- -----------
Net increase $ 306,593 $ 194,770
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
Harris Associates Value Portfolio
---------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 180,650 $ 2,595,671 192,435 $ 2,687,516
Issued as reinvestment
of dividends 0 0
25,257 338,513
Redeemed (14,530) (210,888) (75,619) (1,055,861)
------- -------- ------- ----------
Net increase 166,120 $ 2,384,783 142,073 $ 1,970,168
======= =========== ======= ===========
</TABLE>
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
5. Shares of Beneficial Interest (continued)
<TABLE>
<CAPTION>
MFS Total Return Portfolio
--------------------------
Six Months ended June 30, 1998 Year ended
December 31, 1997
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 267,200 $ 3,631,832 390,628 $ 4,879,026
Issued as reinvestment
of dividends 0 0
14,058 179,583
Redeemed (20,611) (279,383) (78,498) (964,786)
------- -------- ------- --------
Net increase 246,589 $ 3,352,449 326,188 $ 4,093,823
======= =========== ======= ===========
</TABLE>
<TABLE>
<CAPTION>
Berkeley U.S. Quality Bond Portfolio
------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 41,621 $ 419,304 22,204 $ 222,203
Issued as reinvestment
of dividends 0 0 8,497
83,993
Redeemed (9,005) (91,243) (79,768) (817,964)
------ ------- ------- --------
Net increase/(decrease) 32,616 $ 328,061 (49,067) ($ 511,768)
====== ========= ======= ==========
</TABLE>
<TABLE>
<CAPTION>
International Stock Portfolio
-----------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 41,893 $ 401,451 91,988 $ 945,574
Issued as reinvestment
of dividends 0 0
8,030 72,576
Redeemed (168,852) (1,721,283) (47,754) (483,041)
-------- ---------- ------- --------
Net increase (126,959) ( $1,319,832) 52,264 $ 535,109
======== = ========== ====== =========
</TABLE>
<TABLE>
<CAPTION>
Strong Growth Portfolio
-----------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 125,425 $ 1,794,763 169,760 $ 2,330,737
Issued as reinvestment
of dividends 0 0
22,345 301,987
Redeemed (18,477) (255,727) (102,901) (1,456,632)
------- -------- -------- ----------
Net increase 106,948 $ 1,539,036 89,204 $ 1,176,092
======= =========== ====== ===========
</TABLE>
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
5. Shares of Beneficial Interest (continued)
<TABLE>
<CAPTION>
Robertson Stephens Diversified Growth Portfolio
-----------------------------------------------
Six Months ended June 30, 1998 Year ended
December 31, 1997
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 148,286 $ 1,609,499 265,027 $ 2,410,896
Issued as reinvestment
of dividends 0 0 2
20
Redeemed (21,095) (233,679) (95,073) (885,949)
------- -------- ------- --------
Net increase 127,191 $ 1,375,820 169,956 $ 1,524,967
======= =========== ======= ===========
</TABLE>
<TABLE>
<CAPTION>
Lexington Corporate Leaders Portfolio
-------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 183,468 $ 2,648,997 222,339 $ 3,057,461
Issued as reinvestment
of dividends 0 0
16,091 215,957
Redeemed (10,336) (150,193) (96,270) (1,330,518)
------- -------- ------- ----------
Net increase 173,132 $ 2,498,804 142,160 $ 1,942,900
======= =========== ======= ===========
</TABLE>
6. Foreign Securities
All Portfolios, except the Money Market Portfolio, 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 June 30, 1998, the following portfolios had a capital loss carryforward
which expires on December 31, 2004:
Fund Amount
Berkeley U.S. Quality Bond Portfolio $3,940
Berkeley Money Market Portfolio 27
Robertson Stephens Diversified Growth Portfolio 46,696
At June 30, 1998, Berkeley Money Market Portfolio and Robertson Stephens
Diversified Growth Portfolio had a capital loss carryforward of $53 and
$86,234, respectively, which expire on December 31, 2005.
THE LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
8. Risk Factors Applicable to Year 2000 Issue
Like other mutual funds, as well as other financial and business
organizations around the world, the Trust could be adversely affected if
the computer systems used by the Advisor, the Sub-Advisors and other
service providers, in performing their administrative functions do not
properly process and calculate date-related information and data as of and
after January 1, 2000. This is commonly known as the "Year 2000 Issue". The
Advisor and the Sub-Advisors are taking steps that they believe are
reasonably designed to address the Year 2000 Issue with respect to computer
systems that they use and to obtain reasonable assurances that comparable
steps are being taken by the Trust's other major service providers. At this
time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Trust.
