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, 1999
This 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.......................1
LPT Variable Insurance Series Trust:
Individual Portfolio Review....................2-8
Statements of Assets & Liabilities...............9
Statements of Operations........................10
Statements of Changes in Net Assets..........11-12
Financial Highlights.........................13-18
Schedules of Investments.....................19-33
Notes to Financial Statements................34-41
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 year ending June 30, 1999.
Robertson Stephens Diversified Growth Portfolio was up 36.33% as compared to the
Russell 2000 Small Company Index, which was up 9.28% and the S&P 500 Index which
was up 12.38%. The Strong Growth Portfolio was up 15.36% compared to the Russell
2000 Small Company Index, which rose 9.28% and the S&P 500 Index which was up
12.38%. Lexington Corporate Leaders Portfolio was up 16.75% compared to the
Lipper Growth & Income Index, which was up 11.59% and the S&P 500 Index which
rose 12.38%. Harris Associates Value Portfolio was up 14.04% compared to the S&P
500 which was up 12.38% and the Lipper Growth & Income Index which was up
11.59%. MFS Total Return Portfolio was up 4.97% as compared to the Lehman
Brothers Aggregate Bond Index, which decreased by 1.37% and the Lipper Balanced
Fund Index which rose by 6.16%. Berkeley U.S. Quality Bond was down 5.15% as
compared to the Lipper Government Intermediate Bond Index which was down 1.69%.
We are also pleased to inform you that SAI Global Leaders Portfolio was open to
investors on May 11, 1999. The Portfolio's sub-advisor is Select Advisors, Inc.,
an affiliate of London Pacific Life & Annuity Company. The Portfolio's return
during the period ended June 30, 1999 was up 0.10% compared to the S&P 500 Index
which was up 0.80%. Investment performance was strong in the majority of the
portfolios.
We will continue to monitor the performance of each of the investment options
carefully. Our ongoing objective is to provide you with the highest quality
investment choices.
Thank you for choosing the Regency Variable Annuity. We look forward to serving
your investment needs in the future.
Ian K. Whitehead
President
LPT Variable Insurance Series Trust
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, 1999:
Harris Value Portfolio 14.04%*
S&P 500 Index 12.38%
Lipper Growth &
Income Index 11.59%
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 14.04% for the
six month period ending June 30, 1999. Comparatively, the returns for the S&P
500 and the Lipper Growth and Income Indices were 12.38% and 11.59%,
respectively.
Previously, we discussed that while 1998 had been frustrating, we were excited
about the present composition of the portfolio. Our initial excitement thus far
was warranted as the results for the first half of 1999 illustrate. During March
and April, there began a re-assessment of stock valuations. What exactly
triggered this change and altered the market's course has no simple explanation.
Valuation is another important answer to the riddle of internal market
leadership. As we reported in January, our list of holdings seemed absurdly
priced at an average of only 8 times operating cash flow, fully 40% below the
market multiple. The market break of last July/August had driven a great number
of stocks to rock-bottom price levels, and we acted opportunistically by adding
new holdings to the Portfolio in the ensuing months. While valuation itself
rarely drives stock prices, we were encouraged by growing share repurchase and
merger activity, mechanisms which should help to close the price value gap and
create attractive investment returns. In retrospect, we were probably a bit
premature in the purchase of many of these stocks, but value investors are, by
nature, early. Rather than chase the market leaders at increasingly higher
prices, we remained focused on identifying attractive business at significantly
discounted prices. While many of our peers succumbed to impatience, we remained
focused and disciplined. So far, this strategy has benefited the Portfolio.
Value investing was not-and is not dead.
Despite recent appreciation of the portfolio, our average holding continues to
trade at a steep 40% discount to the S&P 500 based on 1999 price/cash flow
estimates. While the market in general appears expensive based on traditional
measures, there are a number of indications that the long-term prospects for our
Portfolio remain quite favorable. As always, we will exercise discipline in our
stock selection process, regardless of the markets mood.
$10,000 Hypothetical Investment since inception February 9, 1996
- -------------------------------------------------------------------------------
Harris Associates Value Portfolio - X
S&P 500 Index - Y
Lipper Growth & Income Index - Z
$24,000--------------------------------------------------------------
$22,000--------------------------------------------------------------Y $22,166
$20,000--------------------------------------------------------------Z $18,453
$18,000--------------------------------------------------------------X $18,036
$16,000--------------------------------------------------------------
$14,000--------------------------------------------------------------
$12,000--------------------------------------------------------------
$10,000--------------------------------------------------------------
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 6/30/99
6 Months 3 Years Since Inception
February 9, 1996
Harris Associates Value
Portfolio 14.04%* 20.38%* 19.01%*
S&P 500 Index 12.38% 29.12% 26.47%
Lipper Growth & Income
Index 11.59% 21.41% 19.81%
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 capital growth and income, consistent with the prudent
employment of capital.
PERFORMANCE
Net total return for the six months ended June 30, 1999:
MFS Total Return
Portfolio 4.97%*
Lehman Brothers
Aggregate Bond Index (1.37%)
Lipper Balanced
Fund Index 6.16%
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.
The MFS Total Return Portfolio earned a total return of 4.97% for the six month
period ending June 30, 1999. Comparatively, the returns for the Lehman Brothers
Aggregate Bond Index and the Lipper Balanced Fund Index were -1.37% and 6.16%,
respectively.
In the first three months of 1999, the Portfolio was hurt by the continued
underperformance of value stocks compared to growth stocks. Prices of value
stocks reflect the underlying value of companies' assets and earnings, while
prices of growth stocks tend to reflect investors' earnings growth expectations.
Late in March, however, value stocks began to recover, due in part to
second-quarter concerns about inflation. Investors trying to anticipate the
effects of rising inflation and interest rates have bought value stocks and
moved out of growth companies, which have been trading at very high prices
relative to their earnings.
Companies that have performed well for the Portfolio include Allied Signal, a
diversified industrial company, and those in the paper industry. Allied Signal
had some earnings problems last year, but with its planned acquisition of
Honeywell, another diversified industrial company, we believe its future appears
bright. Paper companies have reduced their excess supply and, because global
economies have strengthened, demand for paper has been better than expected. As
a result, we've seen higher prices for such holdings as Weyerhaeuser, Champion,
and International Paper.
In February, we began increasing the Portfolio's stock allocation to around 60%
of assets because we felt prices of value stocks had become attractive,
especially given the big gains in growth stocks over the previous year or so.
This increase has helped the Portfolio because the market began turning toward
value stocks in April and May. We have not changed the basic makeup of the bond
portfolio, keeping about 45% of fixed-income assets in investment-grade
corporate and 30% in U.S. Treasuries to help limit price volatility.
$10,000 Hypothetical Investment since inception February 9, 1996
- ------------------------------------------------------------------------------
MFS Total Return Portfolio - X
Lehman Brothers Aggregate Bond Index - Y
Lipper Balanced Fund Index - Z
$17,000-------------------------------------------------------------
$16,000-------------------------------------------------------------Z $16,087
$15,000-------------------------------------------------------------X $15,639
$14,000-------------------------------------------------------------
$13,000-------------------------------------------------------------
$12,000-------------------------------------------------------------Y $12,110
$11,000-------------------------------------------------------------
$10,000-------------------------------------------------------------
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
includes reinvestment of dividends.
Average Annual Total Returns as of 6/30/99
6 Months 3 Years Since Inception
February 9, 1996
MFS Total Return Portfolio 4.97%* 15.40%* 14.10%*
Lehman Brothers Aggregate
Bond Index (1.37%) 7.23% 5.81%
Lipper Balanced Fund Index 6.16% 16.79% 15.06%
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, 1999:
Berkeley U.S. Quality
Bond Portfolio (5.15%)*
Lipper Government
Intermediate Bond Index (1.69%)
The Lipper Government Intermediate Bond Index is a nonweighted index of 139
funds investing in government bonds. Results for the Lipper Government
Intermediate Bond 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. Expense
reimbursements ceased effective May 1, 1999.
The Berkeley U.S. Quality Bond Portfolio earned a total return of -5.15% for the
six month period ending June 30, 1999. Comparatively the return for the Lipper
Government Intermediate Bond index was -1.69%.
The unfavorable conditions in the bond market continued in the second quarter,
as yields on the five and ten year notes rose 55bp to 5.65% and 5.80%,
respectively. The long bond yield, meanwhile, breached the psychologically
significantly 6.00% level.
Driving interest rates higher was the perception that the Federal Reserve was
about to begin reversing last year's easing, a perception that was proved
accurate at the June 30 meeting when the Fed lifted the Fed Funds target by 25
bp, to 5.00%. Although the Federal Reserve Open Market Committee announced a
neutral bias regarding future rates hikes, investors are concerned that the last
increase might be the precursor to another 25 bp or 50 bp tightening over the
next six months. Unless the economy's rate of growth slows to something nearer
3% from the current level of approximately 4%, these fears may be justified.
Though the economy is beginning to show some signs of slowing in the interest
sensitive housing sector, manufacturing is beginning to recover from its slump.
Consumer confidence remains strong, while the unemployment rate of 4.2% suggests
that the possibility of wage inflation is not an idle threat. As Mr. Greenspan,
the Federal Reserve's Chairman, is fond of pointing out, productivity gains are
not likely to continue forever.
In this environment we do not foresee much opportunity for a sustained rally in
the bond market. Signs of softer economic growth over the summer would be a
welcome development, but absent such a slowdown the Fed will be facing
significant pressure to raise short term interest rates this Fall.
$10,000 Hypothetical Investment since inception February 9, 1996
- ------------------------------------------------------------------------------
Berkeley U.S. Quality Bond Portfolio - X
Lipper Government Intermediate Bond Index - Y
$12,500---------------------------------------------------------
$12,000---------------------------------------------------------Y $11,791
$11,500---------------------------------------------------------X $11,454
$11,000---------------------------------------------------------
$10,500---------------------------------------------------------
$10,000---------------------------------------------------------
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Berkeley U.S. Quality Bond Portfolio, and the Lipper
Government Intermediate Bond Index on February 9, 1996, the inception date
of the Portfolio. The figures for the Portfolio, and the Lipper Government
Intermediate Bond Index include reinvestment of dividends
Average Annual Total Returns as of 6/30/99
6 Months 3 Years Since Inception
February 9, 1996
Berkeley U.S.
Quality Bond Portfolio (5.15%)* 5.28%* 4.09%*
Lipper Government
Intermediate Bond Index (1.69%)* 5.35% 4.98%
STRONG GROWTH PORTFOLIO
IINVESTMENT 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, 1999:
Strong Growth Portfolio 15.36%*
Russell 2000 Small
Company Index 9.28%
S&P 500 Index 12.38%
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 15.36% for the six month
period ending June 30, 1999. Comparatively, the returns for the Russell 2000
Small Company Index and the S&P 500 were 9.28% and 12.38% respectively.
A change in market leadership started to unfold early in the second quarter, as
the market performance broadened out to both smaller and mid-cap stocks, as well
as to the more economically sensitive sectors. Continued strength in U.S.
economy, along with the prospects for recovery in the emerging markets, drove
this shift in sentiment.
Technology stocks remain heavily favored in the portfolio, with an emphasis on
semiconductor, telecommunications, and E-commerce related securities. As the
Internet grows in depth and scope, E-commerce software enablers and companies
involved in the expansion of the infrastructure are likely to prosper. After a
horrid 1998, the prospects for leading semiconductor companies are beginning to
improve driven by the rapid buildout of the Internet, the demand for service
companies to provide improved transmission capacity (bandwidth), and signs of
stabilization in Asian demand. Although Year 2000 fears will likely resurface in
some form as we approach the new year, more and more companies are declaring
themselves compliant. Demand pattern in technology spending will be impacted,
the question is by how much and to what extent. We will monitor the situation
closely and hope to capitalize on opportunities when they present themselves.
The broadening that occurred during the second quarter has healthy implications
for the stock market going forward. However, the market may remain in a trading
range until interest rates stabilize and the risks of further Fed tightening
abate. While there are only pockets of inflation, a watchful eye will be on the
recoveries in Japan and Europe, as well as U.S. wage rates, for any hints of a
general rise in inflation. Our investment focus will continue to be on these
great companies that are delivering the earnings growth and benefiting from the
secular forces driving the U.S. economy, such as technology and communications
as well as the healthy environment for the U.S. consumer.
$10,000 Hypothetical Investment since inception February 9, 1996
- ------------------------------------------------------------------------------
Strong Growth Portfolio - X
Russell 2000 Small Company Index - Y
S&P 500 Index - Z
$24,000--------------------------------------------------------------X $22,754
$22,000--------------------------------------------------------------Z $22,166
$20,000--------------------------------------------------------------
$18,000--------------------------------------------------------------
$16,000--------------------------------------------------------------
$14,000--------------------------------------------------------------Y $14,917
$12,000--------------------------------------------------------------
$10,000--------------------------------------------------------------
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 included reivestment of dividends.
Average Annual Total Returns as of 6/30/99
6 Months 3 Years Since Inception
February 9, 1996
Strong Growth
Portfolio 15.36%* 26.47%* 27.45%*
Russell 2000 Small
Company Index 9.28% 9.71% 12.52%
S&P 500 Index 12.38% 29.12% 26.47%
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
INVESTMENT SUB-ADVISOR
RS 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, 1999:
Robertson Stephens
Diversified Growth
Portfolio 36.33%*
Russell 2000 Small
Company Index 9.28%
S&P 500 Index 12.38%
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 managemet 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
36.33% for the six month period ending June 30, 1999. Comparatively, the returns
for the Russell 2000 Small Company and the S&P 500 Indices were 9.28% and
12.38%, respectively.
Small cap stocks continued to gain strength this quarter against larger cap
stocks. Relative valuations of small caps are extremely attractive, especially
based on such measures as price to cash flow and price to sales. Merger and
acquisition activity among smaller companies maintains an enthusiastic pace.
However, subscriptions into small cap mutual funds are at a ten-year low as
individual investors continue to neglect the small cap universe. Furthermore,
almost the entire net inflow into U.S. mutual funds in the first quarter went
into large cap growth and S&P 500 index funds. We view these as contrary
indicators. We believe these contrary indicators coupled with attractive small
cap valuations, make a convincing case for small cap stocks.
Our portfolio benefited this quarter from our investments in the technology and
telecommunications sectors, as well as the health care and financial services
sectors. Our focus has been on well-managed companies that are at the forefront
of new technology product cycles, and we are investing in companies that are
adopting new stratagies to take advantage of this growth. Additionally, we
maintain our long term bullish position on the energy and oil services sector,
and we have positioned the Portfolio to take advantage of what we believe could
be a strong rebound in profitability in the sector in late 1999 and beyond.
Our philosophy of searching for above average growth with a disciplined approach
to risk management has paid off handsomely in the first half of this year.
However, we believe successful equity investing is not a short-term proposition,
thus, we remain focused on the long term.
$10,000 Hypothetical Investment since inception February 9, 1996
- -----------------------------------------------------------------------------
Robertson Stephens Diversified Growth Portfolio - X
Russell 2000 Small Company Index - Y
S&P 500 Index - Z
$24,000--------------------------------------------------------------
$22,000--------------------------------------------------------------Z $22,166
$20,000--------------------------------------------------------------X $19,529
$18,000--------------------------------------------------------------
$16,000--------------------------------------------------------------
$14,000--------------------------------------------------------------Y $14,917
$12,000--------------------------------------------------------------
$10,000--------------------------------------------------------------
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 Return as of 6/30/99
6 Months 3 Years Since Inception
February 9, 1996
Robertson Stephens
Diversified Growth
Portfolio 36.33%* 17.24%* 21.83%*
Russell 2000 Small
Company Index 9.28% 9.71% 12.52%
S&P 500 Index 12.38% 29.12% 26.47%
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, 1999:
Lexington Corporate
Leaders Portfolio 16.75%*
S&P 500 Index 12.38%
Lipper Growth &
Income Index 11.59%
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 16.75% for
the six month period ending June 30, 1999. Comparatively, the returns for the
S&P 500 and the Lipper Growth and Income Indices were 12.38% and 11.59%,
respectively.
Stocks continued to soar in the first half. Driving stocks higher was the
much-improved outlook for corporate earnings, a reflection of the continued
strength of the U.S. economy and improving conditions in several countries that
are important trading partners of U.S. corporations. Although we had anticipated
a pick up in earnings this year after a flat year in 1998, the speed and
magnitude of the gains were very impressive. We expect earnings to remain strong
for the rest of this year providing continued support for stock prices.
During the first six months of the year, the Portfolio benefited from improved
returns for several sectors that under-performed in 1998. The increase in the
price of crude oil resulted in share price improvement for the energy sector,
currently the largest group in the Portfolio. Railroads also recovered from the
18-month industry meltdown that resulted from the merger of Union Pacific Corp.
and Burlington Northern Santa Fe as railroads began to recapture market share
that had been lost to other modes of delivery including trucks and barges.
The U.S. economy appears unstoppable so that despite the moderating effects of
higher interest rates, improving global growth, and a resurgent manufacturing
sector, overall growth is expected to remain strong. Under these conditions the
Federal Reserve may have no choice but to raise short-term interest rates again,
and while the stock market has ignored one increase, it may find another
increase harder to swallow.
In an environment of strong earnings and unfavorable interest rates, the stock
market may have difficulty matching the very high returns that investors have
been accustomed to in recent years. The Portfolio continues to invest in a blue
chip stock portfolio with particular emphasis on consistent investment style,
low expenses and low portfolio turnover.
$10,000 Hypothetical Investment since inception February 9, 1999
- -----------------------------------------------------------------------------
Lexington Corporate Leaders Portfolio - X
S&P 500 Index - Y
Lipper Growth & Income Index - Z
$24,000---------------------------------------------------------------
$22,000---------------------------------------------------------------Y $22,166
$20,000---------------------------------------------------------------Z $18,453
$18,000---------------------------------------------------------------X $18,382
$16,000---------------------------------------------------------------
$14,000---------------------------------------------------------------
$12,000---------------------------------------------------------------
$10,000---------------------------------------------------------------
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 reivestment of dividends.
Average Annual Total Returns as of 6/30/99
6 Months 3 Years Since Inception
February 9, 1996
Lexington Corporate
Leaders Portfolio 16.75%* 19.68%* 19.68%*
S&P 500 Index 12.38% 29.12% 26.47%
Lipper Growth &
Income Index 11.59% 21.41% 19.81%
SAI GLOBAL LEADERS PORTFOLIO.
INVESTMENT SUB-ADVISOR
Select Advisors, Inc.
ABOUT THE PORTFOLIO
Invests primarily in equity securities of foreign & domestic companies with
large capitalization to obtain long-term capital growth.
PERFORMANCE
Net total return for the period May 11, 1999 through June 30, 1999:
SAI Global
Leaders Portfolio 0.10%*
S&P 500 Index 0.80%
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.
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, the Investment Advisor (LPIMC Insurance Marketing
Services) waived a portion of its management fee and 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 SAI Global Leaders Portfolio earned a total return of 0.10% from the date of
inception on May 11, 1999 through June 30, 1999, compared to 0.80% for the S&P
500 Index.
Although smaller sized companies have generally lagged large caps over the last
several years and have not shown meaningful out-performance since the third
quarter of 1997, small caps did outpace the large caps in the second quarter.
Despite a slump in Internet stocks by -11.4% in the June period, small cap
stocks as measured by the Russell 2000 index surged +15.6% . Mid-cap stocks also
surpassed the large companies by gaining +10.9% .
Foreign developed markets on average registered smaller gains for the quarter.
The Morgan Stanley Europe, Australia and Far East (EAFE) Index returned +2.6%
for the second quarter of 1999. The small return, again masked the volatility of
the countries within the index. At approximately 20% of the index, Japan, by
gaining 7.4% pushed EAFE into positive territory. Europe, though, did not fare
as well and lost-0.7% in the three-month period. Although Germany and France
managed returns of +5.3% and +3.0%, respectively, Europe lagged due to the -2.2%
decline in the U.K.. Disappointing economic performance weighed heavily on U.K.
stock prices.
Short-term, our outlook is very positive. The Federal Reserve's change to a
neutral policy stance has reduced inflationary and interest rate concerns at the
moment. Also, we expect the next few quarters to reflect continued strong
earnings reports, and this should propel the markets higher over the next
several weeks. As we indicated above, however, the Federal Reserve seems to be
convinced that the U.S. economy needs to slow down, and the method and kind of
slowdown are extremely important to the world economy and financial markets.
Currently, the markets may be discounting an overly optimistic scenario that the
U.S. can slow on its own or with minimal Federal Reserve assistance.
$10,000 Hypothetical Investment since inception May 11, 1999
- ---------------------------------------------------------------------------
SAI Global Leaders Portfolio - X
S&P 500 Index - Y
$12,500-------------------------------------------------------------
$12,000-------------------------------------------------------------
$11,500-------------------------------------------------------------
$11,000-------------------------------------------------------------
$10,500-------------------------------------------------------------Y $10,080
$10,000-------------------------------------------------------------X $10,010
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the SAI Global Leaders Portfolio and the S&P 500 Index
on May 11, 1999, the inception date of the Portfolio. The figures for the
Portfolio and the S&P 500 Index include reinvestment of dividends.
Average Annual Total Return as of 6/30/99
Since Inception
May 11, 1999
SAI Global Leaders Portfolio 0.10%*
S&P 500 Index 0.80%
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Assets and Liabilities
June 30, 1999 (Unaudited)
Harris
Associates Berkeley U.S.
Value MFS Total Return Quality Bond Strong Growth
Assets Portfolio Portfolio Portfolio Portfolio
---------------- ----------------- --------------- -----------------
<S> <C> <C> <C> <C>
Investments at value, see accompanying
schedules $ 7,197,028 $12,188,590 $224,724 $8,785,998
Repurchase agreements at cost and value 285,000 865,000 0 655,000
Cash 613 0 7,316 655
Foreign currency at value 0 1,098 0 0
Dividends and/or interest receivable 12,655 78,010 660 1,443
Receivable for investments securities sold 16,713 60,954 0 180,414
Receivable for Trust shares sold 0 4,893 0 118
Expense reimbursements receivable 3,114 6,428 0 4,988
Other assets 1,654 1,654 1,654 1,654
----- ----- ----- -----
Total Assets $ 7,516,777 $13,206,627 $234,354 $9,630,270
Investments at cost $ 6,188,717 $11,395,878 $225,571 $7,270,390
Foreign currency at cost $0 $1,148 $0 $0
Liabilities
Payable for investments securities purchased $0 $56,703 $0 $236,776
Payable for Trust shares redeemed 4,732 7,920 138 5,519
Payable to London Pacific 0 0 4,098 0
Custodian fees payable 7,201 21,571 7,396 14,976
Advisory fees payable 18,698 23,815 716 16,073
Accrued legal and audit fees 9,978 9,978 618 10,728
Accrued expenses and other liabilities 852 1,016 852 852
--- ----- --- ---
Total Liabilities 41,461 121,003 13,818 284,924
Net Assets $ 7,475,316 $13,085,624 $220,536 $9,345,346
=========== =========== ======== ==========
Components of Net Assets:
Paid-in capital $ 6,039,246 $11,112,219 $108,277 $6,582,276
Undistributed net investment income (loss) 54,302 406,628 97,641 (34,892)
Accumulated net realized gain on securities
and foreign currency transactions 373,457 774,116 15,465 1,282,354
Net unrealized appreciation /(depreciation)
of securities and foreign currency
transactions 1,008,311 792,661 (847) 1,515,608
--------- ------- ---- ---------
Net assets $ 7,475,316 $13,085,624 $220,536 $9,345,346
=========== =========== ======== ==========
Shares outstanding (unlimited
authorization, $.01 par value) 467,209 873,097 21,757 474,861
======= ======= ====== =======
Net asset value, offering price and
redemption price, per share
(net assets/shares outstanding) $ 16.00 $ 14.99 $ 10.14 $ 19.68
========= ========= ======= ========
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Assets and Liabilities
June 30, 1999 (Unaudited)
Lexington
Robertson Stephens Corporate SAI Global
Diversified Growth Leaders Leaders
Assets Portfolio Portfolio Portfolio(1)
---------------- ----------------- ---------------
<S> <C> <C> <C>
Investments at value, see accompanying
schedules $8,130,321 $9,455,329 $316,187
Repurchase agreements at cost and value 106,000 0 0
Cash 555 0 29,788
Foreign currency at value 0 0 0
Dividends and/or interest receivable 1,905 12,392 227
Receivable for investments securities sold 408,929 0 0
Receivable for Trust shares sold 623 806 0
Expense reimbursements receivable 9,681 0 7,581
Other assets 1,654 1,654 0
----- ----- -
Total Assets $8,659,668 $9,470,181 $353,783
Investments at cost $6,670,107 $7,750,776 $313,849
Foreign currency at cost $0 $0 $0
Liabilities
Payable for investments securities purchased $133,040 $0 $27,567
Payable for Trust shares redeemed 4,942 5,679 178
Payable to London Pacific 0 27,895 0
Custodian fees payable 14,057 8,668 2,700
Advisory fees payable 18,144 14,887 0
Accrued legal and audit fees 10,728 9,978 3,124
Accrued expenses and other liabilities 891 856 856
--- --- ---
Total Liabilities 181,802 67,963 34,425
Net Assets $8,477,866 $9,402,218 $319,358
========== ========== ========
Components of Net Assets:
Paid-in capital $5,108,293 $7,113,733 $317,116
Undistributed net investment income (loss) (31,627) 80,832 (96)
Accumulated net realized gain on securities
and foreign currency transactions 1,940,986 503,100 0
Net unrealized appreciation /(depreciation)
of securities and foreign currency
transactions 1,460,214 1,704,553 2,338
--------- --------- -----
Net assets $8,477,866 $9,402,218 $319,358
========== ========== ========
Shares outstanding (unlimited
authorization, $.01 par value) 518,784 539,218 31,906
======= ======= ======
Net asset value, offering price and
redemption price, per share
(net assets/shares outstanding) $ 16.34 $ 17.44 $ 10.01
======== ======== =======
(1) Commenced Operations May 11, 1999
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Operations
For the Six Months Ended
June 30, 1999 (Unaudited)
Harris
Associates MFS Total Berkeley U.S Robertson Stephens
Value Return Quality Bond Strong Growth Diversified Growth
Portfolio Portfolio Portfolio Portfolio Portfolio
--------------- ---------------- -------------- ---------------- ------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Income:
Dividends $ 54,434 $ 73,830 $ 0 $ 6,764 $ 6,758
Foreign withholding tax on
dividend income 0 (1,315) 0 0 (39)
Interest 3,920 163,033 33,116 9,372 10,596
----- ------- ------ ----- ------
Total Investment Income 58,354 235,548 33,116 16,136 17,315
------ ------- ------ ------ ------
Expenses:
Investment advisory fees 36,085 45,816 2,930 29,681 33,465
Custodian fees 14,364 42,050 14,820 28,846 28,490
Legal and audit fees 12,740 12,740 3,379 12,740 12,740
Insurance expense 492 492 492 492 492
Trustees' fees and expenses 3,000 3,000 3,000 3,000 3,000
Other expense 997 997 997 997 997
--- --- --- --- ---
Expenses before expense
reimbursement 67,678 105,095 25,618 75,756 79,184
Fees waived by investment advisor
(Note 3) 0 0 0 0 0
Expense reimbursement (Note 3) (21,152) (26,315) (12,355) (24,728) (30,242)
------- ------- ------- ------- -------
Net Expenses 46,526 78,780 13,263 51,028 48,942
------ ------ ------ ------ ------
Net Investment Income/(Loss) 11,828 156,768 19,853 (34,892) (31,627)
------ ------- ------ ------- -------
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain on securities and
foreign currency transactions 157,349 272,208 19,405 1,142,538 1,558,126
Net change in unrealized appreciation
(depreciation) of securities and
foreign currency transactions 791,093 170,550 (69,585) 26,317 672,054
------- ------- ------- ------ -------
Net Gain /(Loss) on Investments 948,442 442,758 (50,180) 1,168,855 2,230,180
------- ------- ------- --------- ---------
Net Increase/(Decrease)in Net Assets
resulting from Operations $ 960,270 $ 599,526 $ (30,327) $1,133,963 $ 2,198,553
========= ========= ========= ========== ===========
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Operations
For the Six Months Ended
June 30, 1999 (Unaudited)
Lexington
Corporate SAI Global
Leaders Leaders
Portfolio Portfolio (1)
--------------- ----------------
<S> <C> <C>
Investment Income
Income:
Dividends $ 84,099 $ 211
Foreign withholding tax on
dividend income (791) (3)
Interest 1,818 153
----- ---
Total Investment Income 85,126 361
------ ---
Expenses:
Investment advisory fees 28,380 266
Custodian fees 17,269 2,700
Legal and audit fees 12,740 3,124
Insurance expense 492 0
Trustees' fees and expenses 3,000 1,286
Other expense 997 926
--- ---
Expenses before expense
reimbursement 62,878 8,302
Fees waived by investment advisor
(Note 3) 0 (266)
Expense reimbursement (Note 3) (6,578) (7,579)
------ ------
Net Expenses 56,300 457
------ ---
Net Investment Income/(Loss) 28,826 (96)
------ ---
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain on securities and
foreign currency transactions 414,519 0
Net change in unrealized appreciation
(depreciation) of securities and
foreign currency transactions 890,010 2,338
------- -----
Net Gain /(Loss) on Investments 1,304,529 2,338
--------- -----
Net Increase/(Decrease)in Net Assets
resulting from Operations $1,333,355 $ 2,242
========== ========
(1) For the period May 11, 1999 (Commencement of Operations) to June 30, 1999
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Changes in Net Assets
For The Six Months Ended June 30, 1999 (Unaudited)
And The Year Ended December 31, 1998
Harris Associates MFS Total Return
Value Portfolio Portfolio
-------------------------------------- -----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, 1998 June 30, 1999 December 31, 1998
------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income $ 11,828 $ 42,474 $ 156,768 $ 249,468
Net realized gain on securities and
foreign currency transactions 157,349 216,108 272,208 502,439
Net change in unrealized appreciation
(depreciation)of securities and
foreign currency transactions 791,093 (106,044) 170,550 213,088
------- -------- ------- -------
Net increase/(decrease) in net
assets resulting from operations 960,270 152,538 599,526 964,995
------- ------- ------- -------
Distributions to shareholders from:
Net investment income 0 0 0 (995)
Net realized gain on investments 0 0 0 (37,096)
- - - -------
Total distributions 0 0 0 (38,091)
Share Transactions
Net proceeds from sale of shares 480,723 4,529,342 1,474,641 5,544,537
Issued to shareholders in
reinvestment of dividends 0 0 0 38,091
Cost of shares repurchased (1,188,512) (981,697) (754,132) (716,951)
---------- -------- -------- --------
Net increase (decrease) from share
transactions (Note 5) (707,789) 3,547,645 720,509 4,865,677
-------- --------- ------- ---------
Total Increase/(Decrease) in Net Assets 252,481 3,700,183 1,320,035 5,792,581
------- --------- --------- ---------
Net Assets at Beginning of Period 7,222,835 3,522,652 11,765,589 5,973,008
--------- --------- ---------- ---------
Net Assets at End of Period $7,475,316 $7,222,835 $13,085,624 $ 11,765,589
========== ========== =========== ============
Accumulated undistributed net
investment income included in net
assets at end of period $ 54,302 $ 42,474 $ 406,628 $ 249,860
========= ========= ========== ==========
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Changes in Net Assets
For The Six Months Ended June 30, 1999 (Unaudited)
And The Year Ended December 31, 1998
Berkeley U.S. Quality Bond Strong Growth
Portfolio Portfolio
-------------------------------------- -------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, 1998 June 30, 1999 December 31, 1998
------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net Investment income $ 19,853 $ 77,788 ($34,892) ($24,628)
Net realized gain on securities and
foreign currency transactions 19,405 0 1,142,538 416,484
Net change in unrealized appreciation
(depreciation)of securities and
foreign currency transactions (69,585) 39,389 26,317 1,032,922
------- ------ ------ ---------
Net increase/(decrease) in net
assets resulting from operations (30,327) 117,177 1,133,963 1,424,778
------- ------- --------- ---------
Distributions to shareholders from:
Net investment income 0 0 0 0
Net realized gain on investments 0 0 0 (194,821)
- - - --------
Total distributions 0 0 0 (194,821)
Share Transactions
Net proceeds from sale of shares 48,361 1,168,980 2,448,203 3,036,477
Issued to shareholders in
reinvestment of dividends 0 0 0 194,821
Cost of shares repurchased (1,775,945) (389,609) (1,096,654) (513,775)
---------- -------- ---------- --------
Net increase (decrease) from share
transactions (Note 5) (1,727,584) 779,371 1,351,549 2,717,523
---------- ------- --------- ---------
Total Increase/(Decrease) in Net Assets (1,757,911) 896,548 2,485,512 3,947,480
---------- ------- --------- ---------
Net Assets at Beginning of Period 1,978,447 1,081,899 6,859,834 2,912,354
--------- --------- --------- ---------
Net Assets at End of Period $220,536 $1,978,447 $9,345,346 $6,859,834
======== ========== ========== ==========
Accumulated undistributed net
investment income included in net
assets at end of period $ 97,641 $ 77,788 $ (34,892) $ 0
========= ========= ========== ==========
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Changes in Net Assets
For The Six Months Ended June 30, 1999 (Unaudited)
And The Year Ended December 31, 1998
Robertson Stephens Diversified Lexington Corporate SAI Global
Growth Portfolio Leaders Portfolio Leaders Portfolio(A)
------------------------------------ ----------------------------------- --------------------
Six Months Ended Year Ended Six Months Ended Year Ended Period Ended
June 30, 1999 December 31, 1998 June 30, 1999 December 31, 1998 June 30, 1999
------------- ----------------- ------------- ----------------- -------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income/loss ($31,627) ($34,957) $ 28,826 $ 52,006 $ (96)
Net realized gain on securities,
written options, and foreign currency
transactions 1,558,126 578,598 414,519 88,581 0
Net unrealized appreciation of
securities and foreign currency
transactions 672,054 423,882 890,010 492,161 2,338
------- ------- ------- ------- -----
Net increase in net assets
resulting from operations 2,198,553 967,523 1,333,355 632,748 2,242
--------- ------- --------- ------- -----
Distributions to shareholders from:
Net investment income 0 0 0 0 0
Net realized gain on investments 0 0 0 (14,110) 0
- - - ------- -
Total distributions 0 0 0 (14,110) 0
Share Transactions
Net proceeds from sale of shares 885,849 2,763,953 987,107 4,506,043 317,699
Issued to shareholders in
reinvestment of dividends 0 0 0 14,110 0
Cost of shares repurchased (863,403) (926,756) (1,086,985) (423,355) (583)
-------- -------- ---------- -------- ----
Net increase from share transactions
(Note 5) 22,446 1,837,197 (99,878) 4,096,798 317,116
------ --------- ------- --------- -------
Total Increase/(Decrease) in Net Assets 2,220,999 2,804,720 1,233,477 4,715,436 319,358
--------- --------- --------- --------- -------
Net Assets at Beginning of Period 6,256,867 3,452,147 8,168,741 3,453,305 0
--------- --------- --------- --------- -
Net Assets at End of Period $8,477,866 $6,256,867 $9,402,218 $ 8,168,741 $ 319,358
========== ========== ========== =========== =========
Accumulated undistributed net
investment income (loss) included in
net assets at end of period $ (31,627) $ 0 $ 80,832 $ 52,006 $ (96)
=========== ========== ========== =========== =========
(A) For the period May 11, 1999 (Commencement of Operations) to June 30, 1999
See Notes to Financial Statements
</TABLE>
<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 Year Ended Period Ended
June 30,1999 (Unaudited) December 31,1998 December 31,1997 December 31, 1996*
------------------------ ---------------- ---------------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.03 $13.45 $11.86 $10.00
Income from Investment Operations:
Net investment income (a) 0.02 0.10 0.08 0.10
Net realized and unrealized gain on investments 1.95 0.48 2.94 2.13
---- ---- ---- ----
Total from investment operations 1.97 0.58 3.02 2.23
Less Distributions:
Dividends from net investment income 0.00 0.00 (0.05) (0.10)
Distributions from net realized capital gains 0.00 0.00 (1.38) (0.27)
---- ---- ----- -----
Total distributions 0.00 0.00 (1.43) (0.37)
---- ---- ----- -----
Net Asset value, End of Period $16.00 $14.03 $13.45 $11.86
====== ====== ====== ======
Total Return ++ 14.04% 4.31% 25.56% 20.39%
===== ==== ===== =====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $7,475 $7,223 $3,523 $1,421
Ratio of operating expenses to average net assets 1.29%+ 1.29% 1.29% 1.26%+
Ratio of net investment income to average net assets 0.33%+ 0.75% 0.56% 1.01%+
Portfolio turnover rate 12.65% 49.83% 84.94% 41.08%
Ratio of operating expenses to average net
assets before expense reimbursements 1.88%+ 1.85% 4.22% 7.55%+
Net investment income (loss) per share before
expense reimbursements (a) ($0.02) $0.03 ($0.32) ($0.52)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 1999, for the years ended December 1998 and
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 (Note 1)
*For the period January 31, 1996 (Commencement of Operations) to December 31, 1996
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Financial Highlights
For a Share Outstanding Throughout the Period
MFS
Total Return Portfolio
----------------------------------------------------------------------------------
Six Month Ended Year Ended Year Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998 December 31, 1997 December 31, 1996*
------------------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.28 $12.80 $10.90 $10.00
Income from investment operations:
Net investment income (a) 0.19 0.37 0.35 0.25
Net realized and unrealized gain on investments 0.52 1.16 1.95 0.85
---- ---- ---- ----
Total from investment operations 0.71 1.53 2.30 1.10
---- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 (0.19) (0.20)
Distributions from net realized capital gains 0.00 (0.05) (0.21) (0.00)
---- ----- ----- -----
Total distributions 0.00 (0.05) (0.40) (0.20)
---- ----- ----- -----
Net asset value, end of period $14.99 $14.28 $12.80 $10.90
====== ====== ====== ======
Total return ++ 4.97% 11.98% 21.18% 9.81%
==== ===== ===== ====
Ratios to average net assets/supplemental
Data
Net assets, end of period (in 000's) $13,086 $11,766 $5,973 $1,529
Ratio of operating expenses to average net assets 1.29%+ 1.29% 1.29% 1.26%+
Ratio of net investment income to average
net assets 2.57%+ 2.72% 2.80% 2.59%+
Portfolio turnover rate 67.00% 126.29% 103.75% 53.91%
Ratio of operating expenses to average net
assets before expense reimbursements 1.72%+ 1.87% 3.88% 7.84%+
Net investment income (loss) per share
before expense reimbursements (a) $0.15 $0.29 $0.03 ($0.38)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 1999, for the years ended December 1998 and
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.
*For the period January 31, 1996 (Commencement of Operations) to December 31, 1996
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Financial Highlights
For a Share Outstanding throughout the Period
Berkeley U. S. Quality
Bond Portfolio (2)
---------------------------------------------------------------------------------------
Six Month Ended Year Ended Year Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998 December 31,1997 December 31, 1996*
------------------------- ----------------- ---------------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.69 $9.91 $9.81 $10.00
Income from investment operations:
Net investment income (a) 0.20 0.52 0.58 0.49
Net realized and unrrealized gain(loss)on investments (0.75) 0.26 0.34 (0.25)
----- ---- ---- -----
Total from investment operations (0.55) 0.78 0.92 0.24
----- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 (0.82) (0.43)
Distributions from net realized capital gains 0.00 0.00 (0.00) (0.00)
---- ---- ----- -----
Total distributions 0.00 0.00 (0.82) (0.43)
---- ---- ----- -----
Net asset value, end of period $10.14 $10.69 $9.91 $9.81
====== ====== ===== =====
Total return ++ (5.15%) 7.87% 9.45% 2.27%
===== ==== ==== ====
Ratios to average net assets/supplemental
Data
Net assets, end of period (in 000's) $221 $1,978 $1,082 $1,553
Ratio of operating expenses to average net assets 2.49%+ 0.99% 0.99% 0.97%+
Ratio of net investment income to average net assets 3.73%+ 4.97% 5.79% 5.41%+
Portfolio turnover rate 0.00% 5.21% 431.63% 231.03%
Ratio of operating expenses to average net
assets before expense reimbursements 4.81%+ 3.60% 5.09% 5.79%+
Net investment income (loss) per share before
expense reimbursements (a) $0.07 $0.24 $0.17 $0.05
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 1999, for the years ended December 1998 and
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. Expense reimbursements ceased effective May 1, 1999.
(a) Based on the average of the daily shares outstanding throughout the year.
(2) Formerly Salomon U.S. Quality Bond Portfolio (Note 1)
*For the period January 31, 1996 (Commencement of Operations) to December 31, 1996
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Financial Highlights
For a Share Outstanding throughout the Period
Strong Growth Portfolio
-------------------------------------------------------------------------------------------
Six Months Ended Year Ended Year Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998 December 31, 1997 December 31, 1996*
------------------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $17.06 $13.47 $11.92 $10.00
Income from investment operations:
Net investment income / (loss) (0.08) (0.08) (0.04) 0.25
Net realized and unrealized gain on investments 2.70 4.17 3.07 2.49
---- ---- ---- ----
Total from investment operations 2.62 4.09 3.03 2.74
---- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 (0.22)
Distributions from net realized capital gains 0.00 (0.50) (1.48) (0.60)
---- ----- ----- -----
Total distributions 0.00 (0.50) (1.48) (0.82)
---- ----- ----- -----
Net asset value, end of period $19.68 $17.06 $13.47 $11.92
====== ====== ====== ======
Total return ++ 15.36% 30.43% 25.56% 20.27%
===== ===== ===== =====
Ratios to average net assets/supplemental
Data
Net assets, end of period (in 000's) $9,345 $6,860 $2,912 $1,513
Ratio of operating expenses to average net assets 1.29%+ 1.29% 1.29% 1.26%+
Ratio of net investment income/loss to
average net assets (0.88%)+ (0.53%) (0.26%) 2.25%+
Portfolio turnover rate 145.56% 275.16% 270.11% 422.67%
Ratio of operating expenses to average net
assets before expense reimbursements 1.91%+ 2.39% 4.44% 7.09%+
Net investment income (loss) per share before
expense reimbursements (a) ($0.14) ($0.24) ($0.46) ($0.39)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 1999, for the years ended December 1998 and
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.
*For the period January 31, 1996 (Commencement of Operations) to December 31, 1996
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Financial Highlights
For a Share Outstanding throughout the Period
Robertson Stephens
Diversified Growth Portfolio (4)
----------------------------------------------------------------------------------------
Six Months Ended Year Ended Year Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998 December 31, 1997 December 31, 1996*
------------------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.00 $10.22 $8.58 $10.00
Income from investment operations:
Net investment income / (loss) (a) (0.06) (0.08) (0.07) 2.10
Net realized and unrealized gain on investments 4.40 1.86 1.71 (1.69)
---- ---- ---- -----
Total from investment operations 4.34 1.78 1.64 0.41
---- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 (1.83)
Distributions from net realized capital gains 0.00 0.00 0.00 (0.00)
---- ---- ---- -----
Total distributions 0.00 0.00 0.00 (1.83)
---- ---- ---- -----
Net asset value, end of period $16.34 $12.00 $10.22 $8.58
====== ====== ====== =====
Total return ++ 36.33% 17.42% 19.12% 2.42%
===== ===== ===== ====
Ratios to average net assets/supplemental
Data
Net assets, end of period (in 000's) $8,478 $6,257 $3,452 $1,441
Ratio of operating expenses to average net assets 1.39%+ 1.39% 1.39% 1.36%+
Ratio of net investment income/loss to
average net assets (0.90%)+ (0.73%) (0.72)% 20.30%+
Portfolio turnover rate 278.54% 381.64% 234.54% 2,242.85%
Ratio of operating expenses to average net
assets before expense reimbursements 2.25%+ 2.37% 4.53% 7.02%+
Net investment income (loss) per share before
expense reimbursements (a) ($0.12) ($0.18) ($0.35) $1.51
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 1999, for the years ended December 1998 and
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 Berkeley Smaller Companies Portfolio
*For the period January 31, 1996 (Commencement of Operations) to December 31, 1996
See Notes to Financial Statements
</TABLE>
<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 Year Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998 December 31, 1997 December 31, 1996*
------------------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.97 $13.39 $11.44 $10.00
Income from investment operations:
Net investment income (a) 0.05 0.12 0.13 0.14
Net realized and unrealized gain on investments 2.42 1.49 2.70 1.42
---- ---- ---- ----
Total from investment operations 2.47 1.61 2.83 1.56
---- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 (0.08) (0.12)
Distributions from net realized capital gains 0.00 (0.03) (0.80) (0.00)
---- ----- ----- -----
Total distributions 0.00 (0.03) (0.88) (0.12)
---- ----- ----- -----
Net asset value, end of period $17.44 $14.97 $13.39 $11.44
====== ====== ====== ======
Total return ++ 16.75% 12.04% 24.71% 12.84%
===== ===== ===== =====
Ratios to average net assets/supplemental
Data
Net assets, end of period (in 000's) $9,402 $8,169 $3,453 $1,323
Ratio of operating expenses to average net assets 1.29%+ 1.29% 1.29% 1.26%+
Ratio of net investment income to average
net assets 0.66%+ 0.87% 0.99% 1.40%+
Portfolio turnover rate 10.29% 7.08% 35.69% 0.00%
Ratio of operating expenses to average net assets
before expense reimbursements 1.44%+ 1.60% 4.08% 6.86%+
Net investment income (loss) per share before
expense reimbursements (a) $0.04 $0.08 ($0.24) ($0.41)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 1999, for the years ended December 1998 and
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.
*For the period January 31, 1996 (Commencement of Operations) to December 31, 1996
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Financial Highlights
For a Share Outstanding Throughout the Period
SAI
Global Leaders
---------------------------
Period Ended
June 30, 1999 (Unaudited)**
---------------------------
<S> <C>
Net asset value, beginning of period $10.00
Income from investment operations:
Net investment income (a) 0.00
Net realized and unrealized gain on investments 0.01
----
Total from investment operations 0.01
----
Less distributions:
Dividends from net investment income 0.00
Distributions from net realized capital gains 0.00
----
Total distributions 0.00
----
Net asset value, end of period $10.01
======
Total return ++ 0.10%
====
Ratios to average net assets/supplemental
Data
Net assets, end of period (in 000's) $319
Ratio of operating expenses to average net assets 1.29%+
Ratio of net investment income to average
net assets (0.27%)+
Portfolio turnover rate 0.00%
Ratio of operating expenses to average net assets
before expense reimbursements 23.44%+
Net investment income (loss) per share before
expense reimbursements (a) ($0.30)
+ Annualized
++ Total return represent aggregate total return for the period ended June 30, 1999.
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.
**For the period May 11, 1999 (Commencement of Operations) to June 30, 1999
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Harris Associates Value Portfolio
Schedule of Investments
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 96.28%
Consumer Non-Durables - 12.20%
<S> <C>
9,000 Liz Claiborne, Inc............................................$328,500
7,700 Mattel, Inc....................................................203,569
6,000 Nike, Inc......................................................379,875
--------
911,944
-------
Consumer Basics - 11.88%
4,950 Black & Decker Corporation.....................................312,469
9,600 Dial Corporation...............................................357,000
5,443 Philip Morris Companies, Inc...................................218,740
--------
888,209
-------
Financial Services - 9.64%
8,600 MGIC Investment Corporation....................................418,175
8,550 Washington Mutual, Inc.........................................302,456
--------
720,631
-------
Broadcasting & Publishing - 9.04%
9,200 Central Newspapers, Inc........................................346,150
9,300 Dun & Bradstreet Corporation...................................329,569
--------
675,719
-------
Conglomerates - 7.97%
8,800 ITT Industries, Inc. ..........................................335,500
15,300 U.S. Industries, Inc. .........................................260,100
--------
595,600
-------
General Business - 6.38%
8,000 ACNielsen Corporation +.......................................242,000
4,700 H & R Block, Inc...............................................235,000
--------
477,000
-------
Consumer Discretionary - 4.54%
8,200 Fortune Brands, Inc............................................339,275
--------
Capital Goods - 4.52%
6,500 Cooper Industires, Inc. .......................................338,000
--------
Autos & Transportation - 4.43%
3,600 Eaton Corporation. ............................................331,200
--------
Electronics - 4.24%
5,600 Electronic Data Systems Corporation............................316,750
--------
Drugs & Health Care - 4.15%
13,600 Columbia/HCA Healthcare Corporation............................310,250
--------
Real Estate - 3.82%
18,400 Catellus Development Corporation +...........................285,200
--------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Harris Associates Value Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Chemicals - 3.79%
<S> <C>
10,300 Ferro Corporation.............................................$283,250
--------
Construction Materials - 3.75%
5,000 USG Corporation................................................280,000
--------
Energy - 3.05%
14,000 Union Pacific Resource Group, Inc..............................228,375
--------
Basic Industris - 2.88%
5,750 Premark International, Inc.....................................215,625
--------
Total Common Stocks (Cost $6,188,717)........................7,197,028
----------
Principal
Amount
- ------
SHORT-TERM OBLIGATIONS - 3.81%
$285,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/99 at
4.00%, due 07/01/99, maturity value $285,031(collateralized by
U.S. Treasury Bond, 7.50%, due 11/15/16, par value $260,000;
market value $292,500) (Cost $285,000).........................285,000
--------
TOTAL INVESTMENTS (COST $6,473,717*)........... 100.09% 7,482,028
OTHER ASSETS AND LIABILITIES (NET) (0.09) (6,712)
----- ------
NET ASSETS..................................... 100.00% $7,475,316
====== ==========
* Aggregate cost for Federal tax purposes (Note 4)
+ Non-income producing security
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 53.83%
Financial Services - 12.48%
<S> <C>
1,760 Allstate Corporation...........................................$63,140
750 American Express Company........................................97,594
300 American International Group, Inc. .............................35,119
100 Axa SA..........................................................12,087
2,610 Bank of New York Company, Inc...................................95,754
1,500 Chubb Corporation..............................................104,250
1,090 CIGNA Corporation...............................................97,010
1,790 Citigroup, Inc. ................................................85,025
1,795 A.G. Edwards, Inc. .............................................57,889
2,100 Equitable Companies, Inc.......................................140,700
930 Federal Home Loan Mortgage Corporation..........................53,940
100 Federated Investments, Inc. ....................................1,794
1,860 The Hartford Financial Services Group, Inc. ...................108,461
1,893 ING Groep NV...................................................102,448
775 Jefferson Pilot Corporation.....................................51,295
2,620 Lincoln National Corporation...................................137,059
2,540 Mellon Bank Corporation.........................................92,392
150 National City Corporation........................................9,825
1,560 PNC Bank Corporation............................................89,895
1,300 Reliastar Financial Corporation.................................56,875
1,600 St. Paul Companies, Inc. .......................................50,900
260 Washington Mutual, Inc. .........................................9,197
1,890 Wells Fargo & Company...........................................80,797
-------
1,633,446
---------
Energy - 6.60%
400 Apache Corporation..............................................15,600
2,144 BP Amoco PLC, ADR..............................................232,624
660 Chevron Corporation.............................................62,824
1,900 Conoco, Inc.....................................................52,963
1,900 CONSOL Energy, Inc..............................................22,800
431 Exxon Corporation...............................................33,241
850 Halliburton Company.............................................38,463
1,030 Mobil Corporation..............................................101,970
3,700 Noble Drilling Corporation +.................................72,844
1,010 Royal Dutch Petroleum Company...................................60,852
1,000 Sempra Energy...................................................22,625
1,400 Sonat, Inc. ....................................................46,375
680 Texaco, Inc. ...................................................42,500
1,460 Unocal Corporation..............................................57,853
-------
863,534
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCK - (Continued)
Utilities - 5.92%
<S> <C>
1,230 CMS Energy Corporation.........................................$51,506
1,710 Carolina Power & Light Company..................................73,209
3,630 Coastal Corporation............................................145,200
1,370 Columbia Energy Group...........................................85,882
900 Duke Energy Company.............................................48,938
1,490 Eastern Enterprises.............................................59,228
900 FirstEnergy Corporation.........................................27,900
1,360 GPU, Inc. ......................................................57,375
330 Pacificorp.......................................................6,064
1,620 Pinnacle West Capital Corporation...............................65,205
900 Sierra Pacific Resources........................................32,738
1,900 Southern Company................................................50,350
810 Texas Utilities Company.........................................33,413
600 UGI Corporation.................................................12,112
1,000 Washington Gas & Light Company..................................26,000
-------
775,120
-------
Communications - 5.09%
1,230 AT&T Corporation................................................68,649
400 Alltel Corporation..............................................28,600
690 Bell Atlantic Corporation.......................................45,109
3,080 GTE Corporation................................................233,310
2,320 SBC Communications, Inc........................................134,560
1,810 Sprint Corporation ...........................................95,591
830 Telephone & Data Systems, Inc...................................60,642
-------
666,461
-------
Consumer Discretionary - 3.37%
1,210 Albertsons, Inc.................................................62,370
1,670 Dayton Hudson Corporation......................................108,550
100 Eastman Kodak Company............................................6,775
1,500 Fortune Brands, Inc. ...........................................62,062
220 Kroger Company...................................................6,146
500 MGM Grand, Inc. +.............................................24,500
3,300 McDonalds Corporation..........................................136,331
1,110 Walt Disney Company.............................................34,202
-------
440,936
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Materials and Processing - 2.63%
<S> <C>
1,710 Akzo Nobel NV .................................................$71,920
541 ALCOA, Inc. ....................................................33,474
1,710 Dow Chemical Company ...........................................45,675
1,900 Engelhard Corporation ..........................................42,988
650 International Paper Company ....................................32,825
1,550 Rohm & Haas Company ............................................66,456
740 Weyerhaeuser Company............................................50,875
-------
344,213
-------
Broadcasting & Publishing - 2.60%
1,220 Gannett, Inc....................................................87,077
950 MediaOne Group, Inc. ...........................................70,656
1,300 New York Times Company, Class A.................................47,856
1,840 Time Warner, Inc...............................................135,240
--------
340,829
-------
Aerospace - 2.38%
2,810 Allied Signal, Inc. ...........................................177,030
500 Lockheed Martin Corporation.....................................18,625
1,590 TRW, Inc........................................................87,251
390 United Technologies Corporation.................................27,958
-------
310,864
-------
Consumer Staples - 2.33%
4,787 Archer Daniels Midland Company..................................73,899
840 General Mills, Inc..............................................67,515
400 Hershey Foods Corporation.......................................23,750
700 McCormick & Company, Inc. ......................................22,094
47 Nestle SA ......................................................84,655
780 Philip Morris Companies, Inc. ..................................31,346
20 Quaker Oats Company .............................................1,327
------
304,586
-------
Computer & Business Equipment - 2.23%
720 Hewlett Packard Company.........................................91,455
720 International Business Machines Corporation.....................93,060
1,810 Xerox Corporation..............................................106,903
--------
291,418
-------
Drugs & Health Care - 1.94%
850 American Home Products Corporation..............................48,875
300 Baxter International, Inc.......................................18,188
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Drugs & Health Care - (Continued)
<S> <C>
380 Bristol Myers Squibb Company...................................$26,766
1,570 Columbia/HCA Healthcare Corporation.............................35,816
850 Pharmacia & Upjohn, Inc. .......................................48,291
1,140 SmithKline Beecham, PLC, ADR....................................75,311
-------
253,247
-------
Electronics - 1.65%
1,260 Motorola, Inc. ................................................119,385
986 Raytheon Company, Class A.......................................67,911
400 Raytheon Company, Class B.......................................28,150
-------
215,446
-------
Basic Industry - 1.36%
1,130 Bowater, Inc....................................................53,393
1,380 Champion International Corporation..............................66,067
1,020 Kimberly Clark Corporation......................................58,140
-------
177,600
-------
Capital Goods - 1.24%
1,550 Emerson Electric Company........................................97,456
160 General Electric Company........................................18,080
600 Stanley Works...................................................19,313
285 Tyco International, Ltd.........................................27,004
-------
161,853
-------
Autos & Transportation - 1.17%
880 Burlington Northern Santa Fe Corporation........................27,280
380 Canadian National Railway Company...............................25,460
1,044 Ford Motor Company..............................................58,921
1,360 Norfolk Southern Corporation....................................40,970
-------
152,631
-------
Real Estate - 0.32%
330 Boston Properties, Inc. ........................................11,839
1,100 TriNet Corporate Realty Trust, Inc. ............................30,456
-------
42,295
------
Consumer Cyclical - 0.27%
1,900 Delphi Automotive Systems Corporation...........................35,269
------
Consumer Non-Cyclical - 0.15%
400 Seagram Company Ltd. ...........................................19,975
-------
Miscellaneous - 0.10%
150 CVS Automatic Com Exchange Securities Trust.....................13,669
-------
Total Common Stocks (Cost $6,116,596)........................7,043,392
----------
See Notes to Financial Statements
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
PREFERRED STOCKS - 2.42%
500 Apache Corporation............................................$18,500
1,000 El Paso Energy Capital Trust 1 ................................49,500
2,000 Lincoln National Corporation ..................................54,375
680 Newell Financial Trust, Gtd Conv., 144A........................38,080
740 Newell Financial Trust.........................................41,440
400 Owens Illinois, Inc. ..........................................17,500
750 Texas Utilities Company........................................41,250
1,100 Union Pacific Capital Trust ...................................56,650
-------
Total Preferred Stocks (Cost $300,721)........................317,295
--------
Principal
Amount
- ------
CORPORATE BONDS AND NOTES - 21.20%
$62,000 AFLAC, Inc, 6.50%, due 04/15/2009..............................60,708
11,000 AT&T Capital Corporation, MTN, 6.25%, due 05/15/2001...........10,875
15,000 AT&T Capital Corporation, MTN, 7.50%, due 11/15/2000...........15,112
26,000 Ahold Financial USA, 6.25%, due 05/01/2009.....................24,489
16,000 Amerco, 7.85%, due 05/15/2003..................................16,365
18,000 Aristar, Inc., 5.85%, due 01/27/2004...........................17,384
19,000 Aristar, Inc., 7.25%, due 06/15/2006...........................19,283
34,000 Associates Corporation of North America.,5.50%,due 02/15/2004..32,396
16,000 Atlantic Mutual Insurance Company, 144A, 8.15%, due 02/15/2028.13,876
25,000 B E Aerospace Company, 8.00%, due 03/01/2008 .................23,375
10,000 Bausch & Lomb, Inc., 6.50%, due 08/01/2005......................9,468
25,000 Beaver Valley II Funding Corporation, 9.00%, due 06/01/2017....27,432
75,000 Bell Atlantic Financial Services,Inc,144A,4.25%,due 09/15/2005.76,687
15,000 Building Materials Corporation of America, 144A
8.00%, due 12/01/2008.........................................13,987
13,000 CMS Energy Corporation, 8.00%, due 07/01/2001..................12,969
100,000 CMS Energy Corporation, 6.75%, due 01/15/2004..................94,544
10,000 Calenergy, Inc., 7.23%, due 09/15/2005..........................9,922
20,000 Calenergy, Inc., 7.52%, due 09/15/2008.........................20,095
10,000 Calenergy, Inc., 8.48%, due 09/15/2028.........................10,672
200,000 Century Communications Corporation, 0.00%, due 01/15/2008.....88,000
10,000 Chancellor Media Corporation, 8.75%, due 06/15/2007.............9,950
10,000 Cleveland Electric Illuminating Company, Secured Note, 144A,
7.888%, due 11/01/2017........................................10,187
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$99,000 Cleveland Electric Illuminating Company,9.00%,due 07/01/2023.$107,036
28,000 Coastal Corporation, 6.20%, due 05/15/2004.....................27,366
38,000 Colonial BancGroup, Inc., 8.00%, due 03/15/2009................36,059
5,000 Connecticut Light & Power Company, First Mortgage,
7.875%, due 10/01/2024.........................................5,218
12,000 Conseco Inc., MTN, 6.40%, due 06/15/2001......................11,756
54,436 Continental Airlines, 6.648%, due 09/15/2017...................52,034
10,000 Countrywide Funding Corporation, MTN, 6.25%, due 04/15/2009.....9,205
100,000 Crimi Mae Commercial Mortgage Trust,144A, 7.00%,due 03/02/2011.87,988
10,000 Dillards, Inc.,7.13%, due 08/01/2018............................9,262
6,000 Edison Mission Energy, 144A, 7.73%, due 06/15/2009..............6,048
16,000 Entergy Mississippi, Inc., 6.20%, due 05/01/2004...............15,547
10,000 Federal Mogul Corporation, 7.50%, due 07/01/2004................9,693
5,000 Federal Mogul Corporation, 7.75%, due 07/01/2006................4,788
25,000 Federal Mogul Corporation, 144A, 7.50%, due 01/15/2009.........23,071
39,000 Federated Department Stores, Inc., 8.50%, due 06/15/2003.......41,289
5,000 Federated Department Stores, Inc., 144A, 6.30%, due 04/01/2009..4,685
5,000 First Empire Capital Trust,Capital Securities,
8.234%,due 02/01/2027..........................................4,818
15,000 Ford Motor Credit Company, 5.80%, due 01/12/2009...............13,709
20,000 FrontierVision Operation Partnership,LP, 11.00%,due 10/15/2006.22,000
11,122 GGIB Funding Corporation, Secured Lease Obligation Bond,
7.43%, due 01/15/2011.........................................10,844
38,000 GS Escrow Corporation, 144A, 6.75%, due 08/01/2001.............37,535
47,000 GS Escrow Corporation, 144A, 7.125%, due 08/01/2005............45,169
20,000 General Motors Acceptance Corporation, 6.15%, due 04/05/2007...19,045
10,000 General Motors Corporation, 6.75%, due 05/01/2028...............9,135
10,000 Georgia Pacific Corporation, 9.50%, due 05/15/2022.............11,049
18,000 Georgia Pacific Corporation, Debenture, 7.25%, due 06/01/2028..16,859
100,000 Goldman Sachs Group, LP, 144A, 5.90%, due 01/15/2003...........97,688
17,000 Green Tree Financial Corporation, 10.25%, due 06/01/2002.......17,863
30,000 Gulf Canada Resources Ltd., Debenture, 9.25%, due 01/15/2004...30,298
20,000 Healthsouth Corporation, Subordinated Convertible Debenture,
3.25%, due 04/01/2003.........................................16,750
58,000 Hearst Argyle Television,Inc., Debenture,7.50%, due 11/15/2027.54,525
8,000 Tommy Hilfiger USA, Inc., 6.50%, due 06/01/2003.................7,804
6,000 Tommy Hilfiger USA, Inc., 6.85%, due 06/01/2008.................5,635
15,000 Husky Oil, Ltd., 144A, 8.90%, due 08/15/2028...................14,522
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$9,000 Illinois Power Supply, 5.26%, due 06/25/2003..................$8,888
23,000 Jones Apparel Group, Inc.,144A, 6.25%, due 10/01/2001.........22,912
12,000 Jones Apparel Group, Inc.,144A, 7.875%, due 06/15/2006........12,000
18,000 Lear Corporation, 144A, 7.96%, due 05/15/2005.................17,555
30,000 Loews Corporation, 3.125%, due 09/15/2007.....................24,413
10,000 Marsh Supermarkets, Inc., 8.875%, due 08/01/2007..............10,000
20,000 McDermott, Inc., 9.375%, due 03/15/2002......................20,828
15,000 MidAmerican Funding, LLC, 144A, 5.85%, due 03/01/2001.........14,900
15,000 MidAmerican Funding, LLC, 144A, 6.927%, due 03/01/2029.........9,405
52,329 Midland Funding Corporation, Senior Secured Lease Bond,
Series C, 10.33%, due 07/23/2002 ............................54,864
5,000 Nabisco, Inc., 6.375%, due 02/01/2035..........................4,788
8,000 News America, Inc., 6.703%, due 05/21/2004.....................7,836
5,000 Niagara Mohawk Power Corporation, 7.75%, due 05/15/2006........5,188
10,000 Niagara Mohawk Power Corporation, 8.75%, due 04/01/2022.......10,644
5,000 Niagara Mohawk Power Corporation, 8.50%, due 07/01/2023........5,365
20,000 Nortek, Inc., 9.25%, due 03/15/2007...........................20,050
3,915 Northeast Utilities, 8.58%, due 12/01/2006.....................3,895
9,000 Northwest Airlines, Inc., 8.52%, due 04/07/2004................8,654
10,000 Northwest Airlines, Inc., 7.625%, due 03/15/2005...............9,149
5,000 Northwest Airlines, Inc., 8.70%, due 03/15/2007................4,769
14,000 Northwest Airlines, Inc., 7.575%, due 03/01/2019..............14,806
75,000 Oryx Energy Company, 8.375%, due 07/15/2004...................78,639
10,000 Outdoor Systems, Inc., 8.875%, due 06/15/2007.................10,450
50,000 Petroleum Geo Services, 144A, 6.25%, due 11/19/2003...........47,953
20,000 Protection One Alarm Monitor, Inc., 144A,
7.375%, due 08/15/2005.......................................19,002
9,000 Providian Capital I, 144A, 9.525%, due 02/01/2027..............8,537
27,000 Qwest Communciations International, Inc.,
144A, 7.50%,due 11/01/2008...................................26,997
99,935 RGS Aegco Funding Corporation, 9.81%, due 12/07/2022.........115,844
40,000 Residential Accredit Loans, Inc., 6.75%, due 10/25/2028.......38,472
21,000 Rite Aid Corporation, 144A, 6.00%, due 10/01/2003.............20,104
10,000 Saks, Inc., 7.25%, due 12/01/2004.............................10,021
88,000 Saks, Inc., 8.25%, due 11/15/2008.............................92,450
60,000 Salton Sea Funding Group Corporation, Senior Secured Bond,
7.84%, due 05/30/2010........................................62,651
43,108 Seabrook 1, Secured Lease Obligation Bond,
7.83%, due 01/01/2019........................................44,048
23,000 Joseph E.Seagram & Sons, Inc., 5.79%, due 04/15/2001..........22,695
35,000 Joseph E.Seagram & Sons, Inc., 6.40%, due 12/15/2003..........34,245
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$5,000 Seagull Energy Corporation, 7.50%, due 09/15/2027.............$4,223
18,000 Sprint Capital Corporation, 5.875%, due 05/01/2004............17,250
19,000 Sprint Capital Corporation, 6.375%, due 05/01/2009............17,840
52,000 Sprint Capital Corporation, 6.90%, due 05/01/2019.............48,151
18,000 SunAmerica Institutional, MTM, 5.75%, due 02/16/2009..........16,642
50,000 TCI Communications Financing III, Capital Securities,
9.65%, due 03/31/2027........................................56,581
12,000 TRW, Inc., 144A, 7.125, due 06/01/2009........................11,654
20,000 Tennessee Gas Pipeline Company, Debenture,
7.625%, due 04/01/2037.......................................12,916
5,000 Texas Gas Transmission Corporation, 7.25%, due 07/15/2027......4,726
30,000 Time Warner, Inc., Pass-thru Asset Trust,
144A, 6.10%, due 12/30/2001..................................29,874
5,000 Time Warner Entertainment Company, LP, 10.15%, due 05/01/2012..6,149
7,000 Union Pacific Corporation, MTN, 6.34%, due 11/25/2003..........6,893
10,000 US Timberlands Company, 9.625%, due 11/15/2007................10,075
11,933 Waterford 3 Funding Corporation, Secured Lease Collateral Bond
8.09%, due 01/02/2017........................................12,006
10,000 Washington Mutual Capital I, Subordinated Capital Income
Securities, 8.375%, due 06/01/2027...........................10,105
5,000 WorldCom, Inc., 8.875%, due 01/15/2006.........................5,323
21,000 WorldCom, Inc., 6.95%, due 08/15/2028.........................19,907
35,000 Xerox Corporation, 144A, 0.57%, due 04/21/2018................21,700
56,000 Xerox Corporation, 0.57%, due 04/21/2018......................35,560
-------
Total Corporate Bonds and Notes (Cost $2,873,735)..........2,774,661
----------
TREASURY OBLIGATIONS - 8.57%
U.S. Treasury Bonds - 4.90%
354,000 9.875%, due 11/15/2015.......................................483,100
28,000 6.125%, due 11/15/2027........................................27,812
105,000 5.50%, due 08/15/2028.........................................96,140
29,000 5.25%, due 11/15/2028.........................................25,706
9,000 5.25%, due 02/15/2029..........................................8,086
------
640,844
-------
U.S. Treasury Notes - 3.67%
200,000 4.875%, due 03/31/2001.......................................197,968
242,000 6.25%, due 04/30/2001........................................245,064
37,000 5.50%, due 01/31/2003.........................................36,780
-------
479,812
-------
Total Treasury Obligations (Cost $1,143,411)...............1,120,656
----------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Principal Value
Amount (Note 2)
- ------ --------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 6.58%
Government National Mortgage Association (GNMA) - 3.58%
<S> <C>
$5,620 REMIC, 8.00%, due 06/20/2025..................................$5,728
58,592 Pool #377615, 7.50%, due 09/15/2025...........................59,159
40,532 Pool #410122, 7.50%, due 10/15/2025...........................41,055
31,535 Pool #247754, 7.50%, due 11/15/2026...........................31,831
27,843 Pool #780546, 7.50%, due 04/15/2027...........................28,104
21,986 Pool #453937, 7.50%, due 08/15/2027...........................22,192
21,567 Pool #455301, 7.50%, due 09/15/2027...........................21,769
52,533 Pool #433627, 7.00%, due 02/15/2028...........................51,826
22,741 Pool #469399, 7.00%, due 03/15/2028...........................22,435
37,115 Pool #467737, 7.00%, due 04/15/2028...........................36,685
35,372 Pool #480352, 7.00%, due 07/15/2028...........................34,896
79,253 Pool #495777, 6.50%, due 12/15/2028...........................76,430
37,231 Pool #470473, 6.50%, due 06/15/2029...........................35,800
-------
Total GNMA (Cost $480,322)...................................467,910
--------
Federal National Mortgage Association (FNMA)- 1.52%
30,000 Pool #410201, 5.722%, due 03/01/2009..........................27,713
31,730 Pool #326868, 6.50%, due 10/01/2025...........................30,649
38,206 Pool #446373, 6.50%, due 11/01/2028...........................36,980
104,694 Pool #252571, 7.00%, due 06/01/2029..........................103,287
--------
Total FNMA (Cost $205,591)...................................198,629
--------
Federal Home Loan Mortgage (FHLM)- 1.48%
99,803 Pool #C24683, 6.50%, due 04/01/2029...........................96,595
99,929 Pool #C26064, 6.50%, due 05/01/2029...........................96,718
-------
Total FHLM (Cost $199,148)...................................193,313
--------
Total U.S. Government Agency Obligations (Cost $885,061).....859,852
--------
EUROBONDS - 0.55%
17,000 Bayerische Landesbank, (Germany), 5.875%, due 12/01/2008......15,774
4,000 Corporacion Andina De Fomento,(Venezuela),
7.10%, due 02/01/2003........................................ 3,896
8,000 Deutsche Fianance NV,(Netherlands),144A,0.00%, due 02/12/2017..4,040
11,000 Telecomunicaciones de Puerto Rico, (Puerto Rico), 144A,
6.65%, due 05/15/2006........................................10,724
40,000 UPM Kymmene Corporation, (Finland), 7.45%, due 11/26/2027.....37,705
-------
Total Eurobonds (Cost $75,759)................................72,139
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Principal Value
Amount (Note 2)
- ------ --------
SHORT-TERM OBLIGATIONS - 6.61%
Repurchase Agreement - 6.61%
<S> <C>
$865,000 Repurchase Agreement with State Street Bank & Trust
Company, dated 06/30/99 at 4.00%, due 07/01/99,
maturity value $865,095 (collateralized by U.S. Treasury
Bond, 7.50%, due 11/15/16, par value $785,000:
market value $883,125) (Cost $865,000)......................$865,000
--------
Shares
Investment Company - 0.00%
595 Seven Seas Money Market Fund (Cost $595).........................595
----
Total Short-Term Obligations (Cost $865,595).................865,595
--------
TOTAL INVESTMENTS (COST $12,260,878*)......... 99.76% 13,053,590
OTHER ASSETS AND LIABILITIES.................. 0.24 32,034
---- ------
NET ASSETS....................................100.00% $13,085,624
======= ===========
FORWARD FOREIGN CURRENCY CONTRACTS
Unrealized
Buy/ Settlement Contracts In Exchange Appreciation
Sell Currency Date at Value for U.S. $ (Depreciation)
---- -------- ---- -------- ---------- --------------
Buy EUR 07/30/99 $12,157 $12,156 (1)
* 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 $732,358 or 5.60% of net assets.
GLOSSARY OF TERMS
ADR American Depository Receipt
EUR Euro Currency
MTN Medium Term Note
REMIC Real Estate Mortgage Investment Conduit
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
The LPT Variable Insurance Series Trust
Berkeley U.S. Quality Bond Portfolio
Schedule of Investments
June 30, 1999 (Unaudited)
Principal Value
Amount (Note 2)
- ------ --------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 18.63%
Federal Home Loan Mortgage Corporation (FHLMC) - 10.20%
<S> <C>
$20,531 Pool #251137, 11.75%, due 08/01/2014 (Cost $22,634)..........$22,500
-------
Federal National Mortgage Association (FNMA) - 8.43%
1,730 Pool #100090, 14.50%, due 11/01/2014...........................2,046
5,095 Pool #303791, 12.50%, due 08/01/2015...........................5,779
5,608 Pool #100089, 13.00%, due 11/01/2015...........................6,565
3,797 Pool #303792, 11.50%, due 09/01/2019...........................4,207
------
Total FNMA (Cost $19,310) ....................................18,597
-------
Total U.S. Government Agency Obligations
(Cost $41,944)...............................................41,097
-------
SHORT-TERM OBLIGATIONS - 83.26%
Discount Notes - 74.20%
20,000 Federal Farm Credit Bank, 5.03%, due 08/30/1999+..............19,832
100,000 Federal Home Loan Bank, 5.03%, due 09/15/1999+................98,938
45,000 Federal National Mortgage Association, 4.88%, due 07/22/1999+.44,872
-------
Total Discount Notes (Cost $163,642) ........................163,642
--------
U.S. Treasury Bill - 9.06%
20,000 3.87%, due 07/08/99+ (Cost $19,985)...........................19,985
-------
Total Short-Term Obligations (Cost $183,627) ................183,627
--------
TOTAL INVESTMENTS (COST $225,571*)...................101.89% 224,724
OTHER ASSETS AND LIABILITIES (NET)................... (1.89) (4,188)
----- ------
NET ASSETS...........................................100.00% $220,536
======= ========
* Aggregate cost for Federal tax purposes (Note 4)
+ Rate indicates annualized yield at time of purchase
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 94.01%
Consumer Discretionary - 21.53%
<S> <C>
1,000 Abercrombie & Fitch Company ..................................$48,000
2,600 American Eagle Outfitters, Inc. +..............................118,300
1,500 BJ's Wholesale Club, Inc. +..................................45,094
700 Bed Bath & Beyond, Inc. +....................................26,950
1,900 Best Buy Company, Inc. +.....................................128,250
1,200 Circuit City Stores, Inc. ...................................111,600
1,700 Dollar Tree Stores, Inc. +......................................74,800
600 Gap, Inc........................................................30,225
2,000 Home Depot, Inc. ..............................................128,875
400 International Speedway Corporation..............................19,000
3,700 Kohl's Corporation +...........................................285,594
1,400 Kroger Company +..............................................39,112
1,000 Limited, Inc....................................................45,375
1,800 Linens'n Things, Inc. + ......................................78,750
3,200 Lowes Companies, Inc...........................................181,400
600 99 Cents Only Stores +..........................................29,962
1,400 Nike, Inc. .....................................................88,638
1,900 Outback Steakhouse, Inc. +......................................74,694
3,600 Pier 1 Imports, Inc. ...........................................40,500
1,600 Staples, Inc. +.................................................49,500
1,900 Starbucks Corporation +........................................71,369
2,800 Tandy Corporation ...........................................136,850
800 Tommy Hilfiger Corporation +....................................58,800
1,000 Wal-Mart Stores, Inc. ..........................................48,250
1,800 Walgreen Company................................................52,875
-------
2,012,763
---------
Electronics - 18.48%
1,000 ASM Lithography Holding NV +..................................59,375
400 Altera Corporation +.........................................14,725
900 Antec Corporation +..........................................28,856
2,000 Comverse Technology, Inc. +.................................151,000
1,300 General Instrument Corporation +..............................55,250
1,000 LSI Logic Corporation. +......................................46,125
1,200 Lam Research Corporation +....................................56,025
1,815 Lucent Technologies, Inc.......................................122,399
1,000 Maxim Integrated Products, Inc. +.............................66,500
1,000 Microchip Technology, Inc. +.................................47,375
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Electronics - (Continued)
<S> <C>
700 Novellus Systems, Inc. +.....................................$47,775
400 Optical Coating Laboratory, Inc.................................33,450
700 PE Corporation..................................................80,325
1,600 PMC Sierra, Inc. +............................................94,300
1,100 PRI Automation, Inc. +........................................39,875
400 Qualcomm, Inc. +..............................................57,400
400 Rambus, Inc. ...................................................36,875
1,000 Rockwell International Corporation .............................60,750
2,700 Tellabs, Inc. +................................................182,419
700 Teradyne, Inc. +...............................................50,225
1,500 Transwitch Corporation +.......................................71,063
1,300 Uniphase Corporation +........................................215,800
1,900 Xilinx, Inc. +...............................................108,775
--------
1,726,662
---------
Communications 12.08%
1,000 American Online, Inc. +......................................110,500
500 Broadcom Corporation +.......................................72,281
1,500 Clear Channel Communication, Inc. +.........................103,406
2,000 Covad Communications Group, Inc. +..........................106,625
600 Equant NV, NY Shares +......................................56,475
1,700 Frontier Corporation ..........................................100,300
409 Global Crossing Ltd. +.......................................17,434
800 Level 3 Communications, Inc. +................................48,050
3,300 MCI WorldCom, Inc. +.........................................284,006
2,000 Qwest Communications International, Inc. +...................66,125
1,000 Sprint PCS Group Corporation +...............................57,125
600 Telephone & Data Systems, Inc. .................................43,838
600 Viatel, Inc. +................................................28,063
200 Yahoo, Inc. +...............................................34,450
-------
1,128,678
---------
Software - 9.17%
700 Broadvision, Inc. +............................................51,625
1,500 Business Objects S.A. +........................................54,750
2,200 Citrix Systems, Inc. +........................................124,300
1,500 Compuware Corporation +........................................47,719
500 Inktomi Corporation +..........................................65,281
500 Intuit, Inc. +.................................................45,062
500 Marimba, Inc. +................................................26,344
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Software - (Continued)
<S> <C>
1,500 Microsoft Corporation +......................................$135,281
1,000 New Era of Networks, Inc. +....................................43,937
1,200 Rational Software Corporation +................................39,525
400 Real Networks, Inc. +........................................27,550
700 Solectron Corporation +......................................46,681
800 Verisign, Inc. +.............................................69,000
600 Verity, Inc. +...............................................32,512
500 Veritas Software Corporation +...............................47,469
-------
857,036
-------
Drugs & Health Care - 7.20%
1,200 Allergan, Inc..................................................133,200
800 Andrx Corporation +...........................................61,700
800 Bausch & Lomb, Inc. ............................................61,200
1,600 Biogen, Inc. +.............................................102,900
1,000 Boston Scientific Corporation +.............................43,937
400 Cardinal Health, Inc. ..........................................25,650
700 Centocor, Inc. +............................................32,637
2,900 Healthsouth Corporation +.....................................43,319
1,500 Medquist, Inc. +.............................................65,625
1,000 Medtronic, Inc. ................................................77,875
300 Sepracor, Inc. +.............................................24,375
-------
672,418
-------
Computers & Business Equipment - 6.38%
1,800 Apple Computer, Inc. +..........................................83,363
6,200 Cisco Systems, Inc. +..........................................399,900
2,000 Computer Network Technology Corporation+........................43,250
800 Lexmark International Group, Inc. +...........................52,850
300 Network Appliance, Inc. +.....................................17,228
-------
596,591
-------
Energy - 4.56%
800 Apache Corporation..............................................31,200
2,000 BJ Services Company +.........................................58,875
2,000 Cooper Cameron Corporation +..................................48,181
3,300 Ensco International, Inc........................................65,794
6,000 Rowan Companies, Inc. +......................................110,625
1,400 Smith International, Inc. +...................................60,813
3,100 Union Pacific Resource Group, Inc...............................50,569
-------
426,057
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Business Services - 3.28%
<S> <C>
2,800 First Data Corporation........................................$137,025
1,000 Fiserv, Inc. +...............................................31,312
2,700 Outdoor Systems, Inc. +.........................................98,550
1,200 Sykes Enterprises, Inc. +....................................40,050
-------
306,937
-------
Financial Services - 3.27%
2,100 Concord EFS, Inc. +..........................................88,856
500 E*Trade Group, Inc..............................................19,969
1,100 First Tennessee National Corporation............................42,144
500 Goldman Sachs Group, Inc. +...................................14,450
600 MGIC Investment Corporation.....................................29,175
600 Marsh & McLennan Companies, Inc.................................45,300
800 Metris Companies, Inc. .........................................32,600
300 Charles Schwab Corporation......................................32,962
-------
305,456
-------
Capital Goods - 2.61%
1,000 Jabil Circuit, Inc. +..........................................45,125
2,100 Tyco International, Ltd........................................198,975
--------
244,100
-------
Broadcasting & Publishing - 1.54%
2,000 AT&T Corporation (Liberty Media Group) .........................73,500
900 Infinity Broadcasting Corporation +.............................26,775
600 Time Warner, Inc................................................44,100
-------
144,375
-------
Basic Industry - 1.14%
2,000 Waters Corporation +...........................................106,250
--------
Transportation - 0.97%
800 Harley Davidson, Inc. ..........................................43,500
1,400 Midwest Express Holdings, Inc. +................................47,600
-------
91,100
------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCK - (Continued)
Materials and Processing - 0.76%
<S> <C>
800 Kaydon Corporation .........................................$26,900
900 Praxair, Inc. ...............................................44,044
-------
70,944
------
Utilities - 0.53%
700 Montana Power Company........................................49,350
-------
Consumer Durables - 0.51%
1,700 Leggett & Platt, Inc.........................................47,281
-------
Total Common Stocks (Cost $7,270,390)........................8,785,998
----------
Principal
Amount
REPURCHASE AGREEMENT - 7.01%
$655,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/99 at
4.00%, due 07/01/99, maturity value $655,073
(collateralized by U.S. Treasury Bond, 7.50%, due 11/15/16,
par value $600,000; market value $675,000)
(Cost $655,000) ............................................655,000
--------
TOTAL INVESTMENTS (COST $7,925,390*).................101.02% 9,440,998
OTHER ASSETS AND LIABILITIES (NET)................... (1.02) (95,652)
----- -------
NET ASSETS...........................................100.00% $9,345,346
======= ==========
* Aggregate cost for Federal tax purposes (Note 4)
+ Non-income producing security
GLOSSARY OF TERMS
ADR American Depository Receipt
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Robertson Stephens Diversified Growth Portfolio
Schedule of Investments
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 94.69%
Communications - 23.04%
<S> <C>
1,000 About.Com, Inc. +............................................$51,875
3,000 Advanced Radio Telecom Corporation +..........................43,125
5,000 Boston Communications Group, Inc. +...........................67,187
3,500 CapRock Communications Corporation +.........................141,750
2,500 Concentric Network Corporation .................................99,375
2,500 DSP Group, Inc. +.............................................90,000
3,000 Excel Switching Corporation +.................................89,813
2,000 F5 Networks, Inc. +............................................82,000
3,500 ITC DeltaCom, Inc. .............................................98,000
4,000 IXC Communications, Inc. ......................................157,250
6,000 Omnipoint Corporation +.......................................173,625
6,480 Perusahaan Telekomunikiasi, ADR ...............................80,595
8,500 Primus Telecommunications Group, Inc. +.......................190,719
4,000 Research In Motion Ltd. +......................................81,000
4,000 Softnet Systems, Inc. +.......................................111,500
16,700 Startec Global Communications Corporation +.................202,487
2,000 Viatel, Inc. +..............................................112,250
3,000 Western Wireless Corporation ..................................81,000
-------
1,953,551
---------
Software - 14.76%
35,000 Artisoft, Inc. +.............................................177,187
5,000 BEA Systems, Inc. +..........................................142,813
5,000 Clarent Corporation +............................................750
5,000 DSET Corporation +...........................................69,688
850 GoTo.com, Inc +...............................................23,800
10,000 Harbinger Corporation .........................................125,000
15,000 Information Advantage, Inc. +.................................61,406
3,000 Macromedia, Inc. +...........................................105,750
3,000 Mpath Interactive, Inc. +.....................................66,000
1,300 Netegrity, Inc. +.............................................21,450
3,000 Network Solutions, Inc. .......................................138,469
2,300 Nfront, Inc. +................................................34,931
1,150 Ramp Networks, Inc. +.........................................16,459
3,500 Verity, Inc. +................................................189,656
250 Viant Corporation +............................................8,750
1,500 WebTrends Corporation +.......................................69,188
------
1,251,297
---------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Robertson Stephens Diversified Growth Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCK (Continued)
Consumer Discretionary - 12.97%
<S> <C>
4,500 Buckle, Inc. ................................................$129,375
5,000 Kenneth Cole Productions, Inc. +..............................139,375
20,000 CompUSA, Inc. +...............................................148,750
5,000 Factory 2-U, Inc. ..............................................92,500
5,000 Galveston's Steakhouse, Inc +..................................84,375
5,800 J. Jill Group, Inc. ............................................84,825
10,000 Kushner-Locke Company +.......................................65,000
1,600 Shop At Home, Inc. +..........................................14,250
12,500 Taco Cabana, Inc. +..........................................127,344
7,000 ValueVision International, Inc. +.............................139,125
6,500 Vans, Inc. +...................................................74,445
-------
1,099,364
---------
Electronics - 11.69%
5,000 ANADIGICS, Inc. +.............................................148,000
2,500 Celesticar, Inc. +............................................108,281
2,500 Cymer, Inc. +..................................................62,500
5,500 Cypress Semiconductor Corporation +...........................90,750
350 GlobeSpan, Inc. +.............................................13,912
1,000 Novellus Systems, Inc. +.......................................68,250
5,000 S3, Inc. +.....................................................45,469
5,000 Sawtek, Inc. +................................................229,375
7,000 Speedfam-IPEC, Inc. +.........................................112,438
5,000 Symmetricom, Inc. +............................................40,625
1,000 Teradyne, Inc. +...............................................71,750
-------
991,350
-------
Energy - 6.74%
70,000 Bonus Resource Services Corporation +.......................106,961
2,000 Cooper Cameron Corporation +..................................74,125
1,800 Devon Energy Corporation .....................................64,350
6,000 Ensco International, Inc. ...................................119,625
10,000 Frontier Oil Corporation +....................................68,125
1,500 Smith International, Inc. +...................................65,156
2,000 Weatherford International, Inc. +.............................73,250
-------
571,592
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Robertson Stephens Diversified Growth Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCK (Continued)
Broadcasting & Publishing - 6.42%
<S> <C>
5,000 AT&T Corporation (Liberty Media Group)........................$183,750
17,600 Film Roman, Inc. +..............................................51,700
7,000 LodgeNet Entertainment Corporation +..........................97,563
18,000 New Frontier Media, Inc. +....................................130,500
5,000 Rogers Communications, Inc. +..................................80,937
-------
544,450
-------
Drugs & Health Care - 5.10%
6 Bergen Brunswig Corporation +...................................104
10,000 Endocardial Solutions, Inc. +................................94,375
10,000 Enzon, Inc. +...............................................206,875
17,500 Omega Health Systems, Inc. +................................131,250
--------
432,604
-------
Utilities - 4.06%
7,900 Capital Environmental Resource, Inc. +.......................114,550
1,500 Montana Power Company..........................................105,750
5,000 Republic Services, Inc. +.....................................123,750
--------
344,050
-------
Computers & Business Equipment - 2.38%
10,000 American Power Conversion Corporation ........................201,250
--------
Transportation - 2.25%
13,000 Simon Transportation Services, Inc. +.........................64,188
44,000 United Shipping & Technology, Inc. +.........................126,500
--------
190,688
-------
Financial Services - 2.21%
7,500 First Sierra Financial, Inc. +................................187,500
--------
Materials and Processing - 1.14%
3,000 ANTEC Corporation +...........................................96,188
-------
Business Services - 1.03%
100 Ask Jeeves, Inc. +............................................1,400
15,000 Medaphis Corporation +........................................86,250
-------
87,650
------
Capital Goods - 0.90 %
7,900 Turbochef, Inc. +.............................................76,037
-------
Total Common Stocks (Cost $6,553,942)...................... 8,027,571
----------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Robertson Stephens Diversified Growth Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
PREFERRED STOCKS 0.90%
<S> <C>
4,000 Trans World Airlines, Inc. (Cost $68,000)...................$76,500
-------
Principal
Amount
- ------
CORPORATE NOTES - 0.31%
$75,000 System Software Associates, Inc., Subordinate Convertible Note,
7.00%, due 09/15/2002 (Cost $48,165)...........................26,250
-------
REPURCHASE AGREEMENT - 1.25%
106,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/99 at
4.00%, due 07/01/99, maturity value $106,012
(collateralized by U.S. Treasury Bond, 7.50%, due 11/15/16,
par value $100,000; market value $112,500)
(Cost $106,000) ...............................................106,000
--------
TOTAL INVESTMENTS (COST $6,776,107*).................97.15% 8,236,321
OTHER ASSETS AND LIABILITIES (NET)....................2.85 241,545
----- -------
NET ASSETS ....................................100.00% $8,477,866
======= ==========
* Aggregate cost for Federal tax purposes (Note 4)
+ Non-income producing security
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 99.47%
Energy - 17.02 %
<S> <C>
3,375 Chevron Corporation.........................................$321,258
3,375 Exxon Corporation............................................260,297
3,375 Mobil Corporation............................................334,125
3,375 Royal Dutch Petroleum Company, NY Shares.....................203,344
3,375 Schlumberger, Ltd............................................214,945
3,375 Texaco, Inc..................................................210,937
3,375 Union Pacific Resource Group, Inc.............................55,055
-------
1,599,961
---------
Consumer Discretionary - 16.86%
3,375 Coca Cola Company............................................210,937
3,375 Eastman Kodak Company........................................228,656
3,375 Fortune Brands, Inc..........................................139,641
3,375 McDonalds Corporation........................................139,430
3,375 Philip Morris Companies, Inc.................................135,633
3,375 Procter & Gamble Company.....................................301,219
3,375 Wal-Mart Stores, Inc.........................................325,687
3,375 Walt Disney Company..........................................103,992
--------
1,585,195
---------
Financial Services - 12.27%
3,375 American Express Company.....................................439,172
5,063 Citigroup, Inc...............................................240,469
3,375 J.P. Morgan & Company, Inc...................................474,187
--------
1,153,828
---------
Materials & Processing - 8.51%
3,375 Alcoa, Inc...................................................208,828
3,375 Bethlehem Steel Corporation +.................................25,945
3,375 DuPont (E.I.) DeNemours & Company............................230,555
3,375 International Paper Company..................................170,437
3,375 Union Carbide Corporation....................................164,531
--------
800,296
-------
Autos & Transportation - 7.69%
3,375 Burlington Northern Santa Fe Corporation.....................104,625
3,375 General Motors Corporation...................................222,750
3,375 Goodyear Tire and Rubber Company.............................198,492
3,375 Union Pacific Corporation....................................196,805
--------
722,672
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Utilities - 7.11%
<S> <C>
3,375 Ameren Corporation..........................................$129,516
3,375 Consolidated Edison Company of New York......................152,719
3,375 Duke Energy Company..........................................183,516
3,375 PG&E Corporation.............................................109,688
3,375 Reliant Energy, Inc...........................................93,234
-------
668,673
-------
Producer Durables - 6.21%
3,375 Caterpillar, Inc.............................................202,500
3,375 General Electric Company.....................................381,375
--------
583,875
-------
Drugs & Health Care - 6.17%
3,375 Johnson & Johnson............................................330,750
3,375 Merck & Company, Inc.........................................249,750
--------
580,500
-------
Electronics - 5.82%
3,375 Lucent Technologies, Inc. ..................................227,602
3,375 Motorola, Inc................................................319,781
--------
547,383
-------
Aerospace - 3.85%
3,375 Allied Signal, Inc...........................................212,625
3,375 Boeing Company...............................................149,133
--------
361,758
-------
Computers & Business Equipment - 3.61%
3,375 Hewlett Packard Company......................................339,187
--------
Communications - 3.00%
5,062 AT&T Corporation.............................................282,523
--------
Consumer Staples - 0.88%
3,375 Gallaher Group PLC, ADS.......................................82,477
-------
Consumer Cyclical - 0.47%
2,358 Delphi Automotive Systems Corporation.........................43,770
-------
Total Common Stocks (Cost $7,647,545)......................9,352,098
----------
INVESTMENT COMPANY - 1.10 %
103,231 Seven Seas Money Market Fund (Cost $103,231).................103,231
--------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments
June 30, 1999 (Unaudited)
<S> <C>
TOTAL INVESTMENTS (COST $7,750,776*).................100.57% $9,455,329
OTHER ASSETS AND LIABILITIES......................... (0.57) (53,111)
----- -------
NET ASSETS...........................................100.00% $9,402,218
======= ==========
* Aggregate cost for Federal tax purposes (Note 4)
+ Non-income producing security
GLOSSARY OF TERMS
ADS American Depository Share
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
SAI Global Leaders Portfolio
Schedule of Investments
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 95.88%
Consumer Discretionary - 20.15%
<S> <C>
160 Carnival Corporation............................................$9,215
130 Coca Cola Company................................................8,125
200 Costco Companies, Inc. +.......................................16,012
90 Procter & Gamble Company.........................................8,033
220 Safeway, Inc. +................................................10,890
250 Wal-Mart Stores, Inc. ..........................................12,062
-------
64,337
------
Financial Services - 15.45%
130 AEGON, ADR.......................................................9,620
85 American Express Company........................................11,061
220 Bank Of New York Company.........................................8,071
265 Citigroup, Inc..................................................12,588
100 Merrill Lynch & Company, Inc.....................................7,994
------
49,334
------
Drugs & Health Care - 13.94%
160 Bristol Myers Squibb Company....................................11,270
120 Merck & Company, Inc. ...........................................8,880
140 Pfizer, Inc.....................................................15,365
170 Schering-Plough Corporation......................................9,010
------
44,525
------
Communications - 8.30 %
125 MCI WorldCom, Inc. +...........................................10,758
80 Vodafone Airtouch PLC, ADR......................................15,760
-------
26,518
------
Electronics - 6.94%
265 Intel Corporation...............................................10,710
125 Nokia Corporation, ADR..........................................11,445
-------
22,155
------
Consumer Non-Cyclical - 6.16%
260 Gillette Company................................................10,660
180 Lauder Estee Companies, Inc. ....................................9,023
------
19,683
------
Computer & Business Equipment - 5.55 %
85 Cisco Systems, Inc. ............................................10,320
200 Dell Computer Corporation........................................7,400
------
17,720
------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
SAI Global Leaders Portfolio
Schedule of Investments (Continued)
June 30, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Software - 5.08%
<S> <C>
125 Microsoft Corporation..........................................$16,234
-------
Comingled Fund - 5.06%
300 Sector SPDR Trust, Basic Industries Sector......................7,800
280 Sector SPDR Trust, Industrial Sector............................8,347
------
16,147
------
Consumer Cyclical - 3.46%
100 Sony Corporation................................................11,037
-------
Energy - 3.26%
135 Exxon Corporation...............................................10,412
-------
Broadcasting & Publishing - 2.53%
110 Time Warner, Inc. ...............................................8,085
------
Total Common Stocks (Cost $303,849)........................... 306,187
-------
INVESTMENT COMPANY - 3.13 %
10,000 Seven Seas Money Market Fund (Cost $10,000).....................10,000
-------
TOTAL INVESTMENTS (COST $313,849*)................... 99.01% 316,187
OTHER ASSETS AND LIABILITIES......................... 0.99 3,171
---- -----
NET ASSETS...........................................100.00% $319,358
======= ========
* Aggregate cost for Federal tax purposes (Note 4)
+ Non-income producing security
GLOSSARY OF TERMS
ADR American Depository Receipt
See Notes to Financial Statements
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (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
seven 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 U.S. Quality Bond Portfolio
(the "Bond Portfolio"); and the Harris Associates Value, MFS Total Return,
Strong Growth, Robertson Stephens Diversified Growth, Lexington Corporate
Leaders, and SAI Global Leaders Portfolios (the "Equity Portfolios").
Prior to November 3, 1997, 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 November 3, 1997, Salomon Brothers Asset
Management Inc. served as sub-advisor to the 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.
SAI Global Leaders Portfolio commenced operations on May 11, 1999.
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 which approximates market value. 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.
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.
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
2. Significant Accounting Policies:
Repurchase Aggreements (continued)
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.
Option Contracts: All Portfolios may purchase and/or write put and call options
on Portfolio securities or foreign currencies. The Portfolios may use options
contracts to manage their exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Writing puts and buying
calls tend to increase the Portfolio's exposure to the underlying instrument.
Buying puts and writing calls tends to either decrease the Portfolio's exposure
to the underlying instrument, or to hedge other Portfolio investments.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a covered call option is that the Portfolio may forego
the opportunity of profit or incur a loss if the market price of the underlying
security increases and the option is exercised. The risk in writing a put option
is that the Portfolio may incur a loss if the market price of the underlying
security decreases and the option is exercised. In addition, there is a risk the
Portfolio may not be able to enter into a closing transaction because of an
illiquid secondary market, or, for over-the-counter options, because of a
counter party's inabilty to perform.
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, 1999.
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 may enter into forward
foreign currency contracts, whereby the Portfolios agree to buy and sell 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. 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.
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
2. Significant Accounting Policies (continued)
Distributions to Shareholders: Dividends from net investment income are declared
and distributed at least annually for all Portfolios. All Portfolios 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 equally 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 Portfolio. Select Advisors, Inc., a wholly owned subsidiary of the London
Pacific Group, Ltd., and an affiliate of London Pacific, serves as sub-advisor
to the SAI Global Leaders Portfolio. 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; RS Investment Management Company,
L.P. (formerly Robertson Stephens & Company Investment Management, L.P.,) serves
as sub-advisor to the Robertson Stephens Diversified Growth Portfolio and
Lexington Management Corporation, a wholly owned subsidiary of Lexington Global
Asset Managers, Inc., serves as sub-advisor to the Lexington Corporate Leaders
Portfolio. The Trust pays LPIMC a monthly fee in arrears based on a percentage
of the average daily net assets of each Portfolio during the month, out of which
LPIMC pays the sub-advisor of each Portfolio a monthly fee in arrears at annual
rates as follows:
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
<TABLE>
<CAPTION>
Fees on
Fees on Average Net Fees on
Average Assets Between Average Net
Name of Portfolio Net Assets $25 Million and Assets
----------------- up to $25 $100 Million Exceeding
Million ------------ $100 Million
------- ------------
Harris Associates Value
Portfolio
<S> <C> <C> <C>
LPIMC .25% .25% .25%
Sub-advisor .75% .60% .50%
--- --- ---
Total Fees Paid to LPIMC* 1.00% .85% .75%
==== === ===
Fees on
Fees on Average Fees on
Average Net Assets Average Net
Name of Portfolio Net Assets Between $200 Assets
----------------- up to $200 Million and Exceeding $1.3
Million $1.3 Billion Billion
------- ------------ -------
MFS Total Return Portfolio
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
--- --- ---
Total Fees Paid to LPIMC* * .75% .70% .65%
=== === ===
Fees on Average Fees on Fees on
Fees on Net Assets Average Net Average Net
Average Net Between $50 Assets Between Assets Between
Name of Assets up Million and $150 Million $300 Million
Portfolio to $50 $150 Million and $300 and $500
--------- Million ------------ Million Million
------- ------- -------
Berkeley U.S. Quality Bond
Portfolio
LPIMC .25% .25% .25% .25%
Sub-advisor .30% .275% .25% .20%
--- ---- --- ---
Total Fees Paid to LPIMC* .55% .525% .50% .45%
=== ==== === ===
Fees on
Fees on Average Net Fees on
Average Net Assets Between Average Net
Name of Portfolio Assets up to $150 Million Assets
----------------- $150 Million and Exceeding
------------ $500 Million $500 Million
------------ ------------
Strong Growth Portfolio
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
--- --- ---
Total Fees Paid to LPIMC* .75% .70% .65%
=== === ===
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
<TABLE>
<CAPTION>
Fees on Fees on Average
Fees on Average Net Net Asset Fees on Average
Average Net Assets Between Between Net Assets
Name of Portfolio Assets up $10 Million $35 Million and Exceeding
----------------- to $10 and $200 Million $200 Million
Million $35 Million ------------ ------------
------- -----------
Robertson Stephens Diversified
Growth Portfolio
<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%
=== === === ===
Fees on
Fees on Average Net Fees on
Average Net Assets Between Average Net
Name of Portfolio Assets up to $10 Million Assets
----------------- $10 Million and Exceeding
----------- $100 Million $100 Million
------------ ------------
Lexington Corporate Leaders
Portfolio
LPIMC .25% .25% .25%
Sub-advisor .40% .35% .30%
--- --- ---
Total Fees Paid to LPIMC* .65% .60% .55%
=== === ===
Fees on
Fees on Average Fees on
Average NetAssets Average Net
Name of Portfolio Net Assets Between $25 Assets
----------------- up to $25 Million and Exceeding $100
Million $100 Million Million
------- ------------ -------
SAI Global Leaders Portfolio
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
--- --- ---
Total Fees Paid to LPIMC* * .75% .70% .65%
=== === ===
</TABLE>
*Fees paid to LPIMC include fees paid for services rendered by LPIMC to the
Portfolio and those fees that LPIMC will in turn pay to the sub-advisor.
LPIMC and Select Advisors, Inc. have voluntarily agreed to waive a portion of
the fees payable to them until total assets reach $5 million. Any fee waivers by
a Sub-advisor are passed through to the Portfolios.
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%; Strong Growth Portfolio - 1.29%;
Robertson Stephens Diversified Growth Portfolio - 1.39%; Lexington Corporate
Leaders Portfolio - 1.29%; and SAI Global Leaders - 1.29%), London Pacific has
agreed, through December 31, 1999, to reimburse each Portfolio for expenses in
excess of the stated expense limitations. Effective May 1, 1999, expense
reimbursements for the Berkeley U.S. Quality Bond Portfolio ceased. The expense
limitations for the other Portfolios may be removed or revised after December
31, 1999, without prior notice to existing shareholders.
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
For the six months ended June 30, 1999 London Pacific voluntarily agreed to
reimburse the Portfolios as follows:
Name of Portfolio Reimbursement
----------------- -------------
Harris Associates Value Portfolio $21,152
MFS Total Return Portfolio 26,315
Berkeley U.S. Quality Bond Portfolio 12,355
Strong Growth Portfolio 24,728
Robertson Stephens Diversified Growth Portfolio 30,242
Lexington Corporate Leaders Portfolio 6,578
SAI Global Leaders Portfolio 7,579
The Trust pays no salaries or compensation to any of its officers. Trustees who
are not directors, officers, or employees of the Trust or any investment advisor
are reimbursed for their travel expenses in attending meetings of the Trustees,
and receive fees for each Trust meeting attended. Such amounts are paid by the
Trust.
4. Purchases and Sales of Securities
The cost of purchases and proceeds from sales of investment securities,
excluding short-term investments, for the six months ended June 30, 1999, were
as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
Portfolio Other Government Other Government
- --------- ----- ---------- ----- ----------
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $888,867 $0 $1,739,072 $0
MFS Total Return Portfolio 6,431,478 2,182,364 5,540,700 2,225,526
Berkeley U.S. Quality Bond Portfolio 0 0 1,239,387 526,039
Strong Growth Portfolio 11,876,750 0 10,973,832 0
Robertson Stephens Diversified Growth Portfolio 19,704,990 0 19,852,681 0
Lexington Corporate Leaders Portfolio 896,940 0 990,392 0
SAI Global Leaders Portfolio 303,849 0 0 0
</TABLE>
At June 30, 1999, aggregate gross unrealized appreciation for all securities in
which there was an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there was an excess of tax cost over
value were as follows:
<TABLE>
<CAPTION>
Tax Basis
---------
Net Unrealized
Unrealized Unrealized Appreciation
Portfolio Appreciation Depreciation (Depreciation) Cost
- --------- ------------ ------------ -------------- ----
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $1,244,406 $236,095 $1,008,311 $6,473,717
MFS Total Return Portfolio 1,056,370 263,658 792,712 12,260,878
Berkeley U.S. Quality Bond Portfolio 0 847 (847) 225,571
Strong Growth Portfolio 1,589,189 73,581 1,515,608 7,925,390
Robertson Stephens Diversified Growth Portfolio 1,614,185 153,971 1,460,214 6,776,107
Lexington Corporate Leaders Portfolio 1,782,393 77,840 1,704,553 7,750,776
SAI Global Leaders Portfolio 10,022 7,684 2,338 313,849
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
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.
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>
Harris Associates Value Portfolio
---------------------------------
Six months ended June 30, 1999 Year ended December 31, 1998
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 33,038 $ 480,723 324,044 $ 4,529,342
Redeemed (80,620) (1,188,512) (71,188) (981,697)
------- ---------- ------- --------
Net increase (47,582) ($707,789) 252,856 $ 3,547,645
======= ========= ======= ===========
MFS Total Return Portfolio
--------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 101,212 $ 1,474,641 407,332 $ 5,544,537
Issued as reinvestment of dividends 0 0 2,934 38,091
Redeemed (51,778) (754,132) (53,066) (716,951)
------- -------- ------- --------
Net increase 49,434 $ 720,509 357,200 $ 4,865,677
====== ========= ======= ===========
Berkeley U.S. Quality Bond Portfolio
------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 4,526 $ 48,361 113,072 $ 1,168,980
Redeemed (167,922) (1,775,945) (37,107) (389,609)
-------- ---------- ------- --------
Net increase/(decrease) (163,396) ($1,727,584) 75,965 $ 779,371
======== =========== ====== =========
Strong Growth Portfolio
-----------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 133,868 $ 2,448,203 210,301 $ 3,036,477
Issued as reinvestment of dividends 0 0 11,700 194,821
Redeemed (61,033) (1,096,654) (36,158) (513,775)
------- ---------- ------- --------
Net increase 72,835 $ 1,351,549 185,843 $ 2,717,523
====== =========== ======= ===========
Robertson Stephens Diversified Growth Portfolio
-----------------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 65,064 $ 885,849 267,239 $ 2,763,953
Redeemed (67,703) (863,403) (83,656) (926,756)
------- -------- ------- --------
Net increase (2,639) $ 22,446 183,583 $ 1,837,197
====== ======== ======= ===========
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
5. Shares of Beneficial Interest (continued)
<TABLE>
<CAPTION>
Lexington Corporate Leaders Portfolio
-------------------------------------
Six months ended June 30, 1999 Year ended December 31, 1998
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 61,634 $ 987,107 316,043 $ 4,506,043
Issued as reinvestment of dividends 0 0 1,096 14,110
Redeemed (68,120) (1,086,985) (29,244) (423,355)
------- ---------- ------- --------
Net increase (6,486) ($99,878) 287,895 $ 4,096,798
====== ======== ======= ===========
SAI Global Leaders Portfolio
----------------------------
Shares Amount
------ ------
Sold 31,966 $ 317,699
Redeemed (60) (583)
--- ----
Net increase 31,906 $317,116
====== ========
</TABLE>
6. Foreign Securities
All Portfolios may invest in securities of foreign companies and foreign
governments. There are certain risks involved in investing in foreign securities
that are in addition to the usual risks inherent in domestic investments. These
risks include those resulting from future adverse political and economic
developments, reduced availability of public information concerning issues,
lower standards of accounting, auditing, and financial reporting, less market
liquidity, greater volatility of prices, and a possible imposition of currency
exchange blockages or restrictions on securities, transactions, or transfer of
assets.
7. Capital Loss Carryforward
At June 30, 1999, Berkeley U.S. Quality Bond Portfolio had a loss carryforward
amount of $3,940 which expires on December 31, 2004.
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.
