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, 2000
This Semi-Annual Report has been prepared to provide information to the owners
of London Pacific Life & Annuity Company's Regency Series Variable Annuity. If
it is used for any other purpose, it must be accompanied or preceded by a
current Regency Series prospectus, which discloses any charges and other
important information about LPLA Separate Account One, together with the current
prospectus for the LPT Variable Insurance Series Trust.
CONTENTS
Message from the President.....................................................2
LPT Variable Insurance Series Trust:
Individual Portfolio Review..................................................3-8
Statements of Assets & Liabilities.............................................9
Statements of Operations......................................................10
Statements of Changes in Net Assets........................................11-12
Financial Highlights.......................................................13-17
Schedules of Investments...................................................18-30
Notes to Financial Statements..............................................31-37
MESSAGE FROM THE PRESIDENT
Dear Contract Owner:
We are pleased to provide you with the Semi-Annual Report for the LPT Variable
Insurance Series Trust for the six months ending June 30, 2000.
Investment performance for the Portfolios are as follows: Strong Growth
Portfolio was up 9.50% compared to the S&P 500 Index, which was down 0.42% and
the Russell 2000 Small Company Index, which rose 3.04%, MFS Total Return
Portfolio was up 2.60% as compared to the Lipper Balanced Fund Index which was
up 1.74% and the Lehman Brothers Aggregate Bond Index, which was up 3.99%, RS
Diversified Growth Portfolio was down 2.13% as compared to the S&P 500 Index,
which was down 0.42% and the Russell 2000 Small Company Index, which was up
3.04%, Lexington Corporate Leaders Portfolio was down 8.08% as compared to the
Lipper Large-Cap Value, which was down 1.99% and the S&P 500 Index, which was
down 0.42%, Harris Associates Value Portfolio was down 7.10% compared to the
Lipper Multi-Cap Value Index, which was down 0.77% and the S&P 500 Index, which
was down 0.42%, and SAI Global Leaders Portfolio was down 7.44% compared to the
S&P 500 Index, which was down 0.42%.
I am both pleased and proud to inform you that Morningstar, a leading provider
of mutual fund, stock, and variable insurance investment information, has
assigned a 5 star (its highest) rating to two of our Portfolios: Strong Growth
and RS Diversified Growth.
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.
William F. Duff
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, 2000:
Harris Associates Value
Portfolio (7.10%)*
S&P 500 Index (0.42%)
Lipper Multi-Cap
Value Index (0.77%)
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 Multi-Cap Value Index is a nonweighted index investing in stocks and
corporate and government bonds. Results for the Lipper Multi-Cap Value Index do
not reflect expenses and investment management fees incurred by the Portfolio.
Previously, the Portfolio followed the Lipper Growth & Income Index. Due to a
revaluation by Lipper, effective September 1999 this changed to Lipper Multi-Cap
Value Index.
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 -7.10% for the
six months ending June 30, 2000. Comparatively, the returns for the S&P 500
Index and the Lipper Multi-Cap Value Index were -0.42% and - 0.77%,
respectively.
The first two months of the year proved to be difficult for value investors in
general. Momentum pushed the growth and speculative sectors to new highs.
However, a sharp shift to value occurred during the latter part of the first
quarter and much of the second quarter. From its peak in early March, the
previously unstoppable Nasdaq fell 40% by the end of May, only to rebound
sharply in the final weeks of the quarter. During the second quarter, the
Portfolio rebounded and was up .62% while most of the major averages were down.
Given this rebound during the quarter, the impact of "window dressing" and
"index rebalancing" had a tremendous effect on performance for the quarter and
the month of June. On Friday, June 30 our Portfolios, as well as our value
benchmarks, were down approximately 2.5% for the day. There was no news on any
of our companies that would merit such a one-day move. Indeed, a large portion
of the decline occurred in the last half-hour of trading. On the first trading
day in July, the 3rd (a shortened day for the market, in which one would expect
little activity) we regained nearly all of the 2.5%. On the second day of
trading, we more than passed where we had been the day before the 30th.
What caused this shift to value, and will it continue? The shift, we feel, was
the result of the market's/investor's recognition of several fundamental and
market related issues facing the Nasdaq and many of the high fliers: poor
earnings quality, crumbling finances, insider selling and shaky stock price
momentum. At the same time, our Portfolio looked extremely attractive---strong
fundamentals and low valuation. We believe the shift to value will continue and
is likely to mark the beginning of a transition to a longer term value cycle.
$10,000 Hypothetical Investment since inception February 9, 1996
----------------------------------------------------------------
Harris Associates Value Portfolio - X
S&P 500 Index - Y
Lipper Multi-Cap Value Index - Z
$24,000-------------------------------------------------------------- Y $23,798
$22,000--------------------------------------------------------------
$20,000--------------------------------------------------------------
$18,000--------------------------------------------------------------
$16,000-------------------------------------------------------------- Z $16,344
$14,000-------------------------------------------------------------- X $15,377
$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 Multi-Cap Value Index on February 9, 1996, the inception date of the
Portfolio. The figures for the Portfolio, the S&P 500 Index and the Lipper
Multi-Cap Value Index include reinvestment of dividends.
Average Annual Total Returns as of 6/30/00
6 Months 3 Years Since Inception
-------- ------- ---------------
(February 9, 1996)
Harris Associates Value Portfolio (7.10%)* 3.58%* 10.29%*
S&P 500 Index (0.42%) 19.67% 21.83%
Lipper Multi-Cap Value Index (0.77%) 7.20% 11.84%
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, 2000:
MFS Total Return
Portfolio 2.60%*
Lehman Brothers Aggregate
Bond Index 3.99%
Lipper Balanced
Fund Index 1.74%
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 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 2.60% for the six months
ending June 30, 2000. Comparatively, the return for the Lehman Brothers
Aggregate Bond Index & Lipper Balance Fund Index were 3.99% and 1.74%
respectively.
Due to a steady rise in interest rates during the past year, it has been a
difficult environment for bonds. However, the Portfolio's bond holdings posted
positive returns during the period, and generally added stability to the
Portfolio in a period marked by highly volatile equity markets. At the same
time, our equity stake was bolstered by our focus on value stocks, and strong
security selection in energy and insurance stocks, which significantly
contributed to the Portfolio's total return.
Among energy stocks, oil services as well as exploration and production
companies provided an impressive boost to performance. These stocks are
typically very sensitive to oil and natural gas price changes and benefited
immensely from rising prices.
We also took advantage of some weakness in pharmaceutical stock prices in the
early part of the year to increase our positions in high-quality companies with
strong long-term track records. Stocks such as Pharmacia and Abbott Laboratories
came back strong in the second quarter, and we think they still offer attractive
growth opportunities at compelling valuations.
With regard to our bond holdings during this period, as corporate bonds and
mortgage-backed securities recovered in the first quarter of 2000, we decided to
secure some profits and decrease our positions in these sectors. With corporate
bonds, we also found ourselves in the right areas of the market. Our positioning
in various telecommunications and media issues proved particularly beneficial.
Looking forward, while certain pockets of the market remain overvalued in our
view, we are still finding some quality companies at what we think are
attractive prices. In addition, we feel there is potential for strong corporate
earnings across a wide range of industries. However, we intend to proceed with
some caution given the Federal Reserve Board's determination to slow down the
economy.
$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-------------------------------------------------------------- Z $16,528
$16,000--------------------------------------------------------------
$15,000-------------------------------------------------------------- X $15,329
$14,000--------------------------------------------------------------
$13,000--------------------------------------------------------------
$12,000-------------------------------------------------------------- Y $12,234
$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 include
reinvestment of dividends.
Average Annual Total Returns as of 6/30/00
6 Months 3 Years Since Inception
-------- ------- ---------------
(February 9, 1996)
MFS Total Return Portfolio 2.60%* 8.55%* 10.86%*
Lehman Brothers Aggregate Bond
Index 3.99% 6.04% 5.64%
Lipper Balanced Fund Index 1.74% 11.31% 12.55%
STRONG GROWTH PORTFOLIO
INVESTMENT SUB-ADVISOR
Strong Capital Management, Inc.
ABOUT THE PORTFOLIO
Invests in equity securities that are believed to have above average capital
growth potential.
PERFORMANCE
Net total return for the six months ended June 30, 2000:
Strong Growth Portfolio 9.50%*
Russell 2000 Small
Company Index 3.04%
S&P 500 Index (0.42%)
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.
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, 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 9.50% for the six months
ending June 30, 2000. Comparatively, the returns for the Russell 2000 Small
Company Index and the S&P 500 Index were 3.04% and -0.42%, respectively.
The second period was characterized by severe market volatility, most notably in
NASDAQ issues, combined with a rotation from highly valued growth stocks into
less expensive market sectors. The sell-off has reduced the valuation disparity
between sectors, especially for concept stocks lacking meaningful earnings. The
S&P 500 fared much better than the NASDAQ mainly because investors shifted into
the so-called "Old Economy" stocks.
In the second quarter, optical and networking technology companies as well as
various health care related stocks provided the strongest relative performance
for the Portfolio. We remain committed to our investments in the direct
beneficiaries of the networked economy. The acceptance of the internet as an
important source of competitive advantage should continue to enhance the
prospects of companies engage prospects of companies engage in e-commerce,
wireless communications, bandwidth expansion, and software. In addition, the
genomics revolution continues with several important milestones achieved this
quarter. Although progress will be slow, we continue to focus on the enablers of
genomic discovery and some of the leading companies in biotech research. Overall
we continue to like the secular healthcare demands of an aging population and
the outlook for high quality pharmaceutical and drug store stocks.
With recent economic data pointing to more moderate growth trends, it is
becoming increasingly likely that an end to the Fed's tightening phase is upon
us. As investors attention shifts from Fed policy to the risk-reward profile of
individual issues, it seems likely that the valuation disparity between
technology stocks and "Old Economy" issues will continue to close. Although
technology remains an attractive growth area, reasonably valued companies
positioned to capitalized on the networked economy will likely gain ground on a
relative basis. We are also watching specialty retail stocks, which have become
attractive to us because we believe that the pressure put on these stocks by Fed
tightening should ease during the next quarter.
$10,000 Hypothetical Investment since inception February 9, 1996
----------------------------------------------------------------
Strong Growth Portfolio - X
Russell 2000 Small Company Index - Y
S&P 500 Index - Z
$42,000--------------------------------------------------------------
$38,000-------------------------------------------------------------- X $39,190
$34,000--------------------------------------------------------------
$30,000--------------------------------------------------------------
$26,000--------------------------------------------------------------
$22,000-------------------------------------------------------------- Z $23,798
$18,000-------------------------------------------------------------- Y $17,055
$14,000--------------------------------------------------------------
$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 include reinvestment of dividends.
Average Annual Total Returns as of 6/30/00
6 Months 3 Years Since Inception
-------- ------- ---------------
(February 9, 1996)
Strong Growth Portfolio 9.50%* 42.27%* 36.48%*
Russell 2000 Small Company
Index 3.04% 10.57% 12.93%
S&P 500 Index (0.42%) 19.67% 21.83%
RS DIVERSIFIED GROWTH PORTFOLIO
INVESTMENT SUB-ADVISOR
RS Investment Management Company, 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, 2000:
Robertson Stephens Diversified
Growth Portfolio (2.13%)*
Russell 2000 Small
Company Index 3.04%
S&P 500 Index (0.42%)
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.
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, 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 RS Diversified Growth Portfolio earned a total return of -2.13% for the six
months ending June 30, 2000. Comparatively, the returns for the Russell 2000
Small Company Index and the S&P 500 Index were 3.04% and -0.42%, respectively.
Sparked by a break in biotech stocks in early March, small cap stocks declined
precipitously in March, then entered into a period of volatility in April and
most of May in which the general trend was downward. Small cap stocks rallied
into June providing some positive momentum as the quarter closed. The second
quarter decline only contributed to the day to day volatility that has come to
characterize this market environment. The Leuthold Group, a well respected
market research firm, estimates that 79% of the trading days in the NASDAQ
Composite Index through the first six months of this year qualify as "high
volatility" trading days. They define "high volatility" as greater than 1% daily
changes in the index. By this measure, we are in the most volatile market since
1938.
We finished the second quarter with a technology weighting of approximately 30%.
While we are very optimistic about technology on a long-term basis, we sensed
that many technology stocks had reached very rich valuations and were vulnerable
in a correction. This was probably the right analysis, but in the end, several
of our technology positions took several beatings in the second quarter
correction.
We achieved positive performance from a number of stocks that fall into the
health care sector. For the past several quarters, biotechnology stocks have
been the primary source of performance in the entire health care universe. We
believe that the advances in genome coding will create some big opportunities
for investors, but we are wary of valuing many of these companies.
The dominant theme in the economy is slower growth. We are now starting to see
the effect of interest rate hikes which began 12 months ago. Retail and auto
sales have slowed , employment gains are down from first quarter. Hourly
earnings are up but their growth rate has slowed. The Fed succeed in engineering
the soft landing they have targeted. That said, we are cautious and expect the
market to remain volatile.
$10,000 Hypothetical Investment since inception February 9, 1996
----------------------------------------------------------------
RS Diversified Growth Portfolio - X
Russell 2000 Small Company Index - Y
S&P 500 Index - Z
$34,000-------------------------------------------------------------- X $33,233
$30,000--------------------------------------------------------------
$26,000--------------------------------------------------------------
$22,000-------------------------------------------------------------- Z $23,798
$18,000-------------------------------------------------------------- Y $17,055
$14,000--------------------------------------------------------------
$10,000--------------------------------------------------------------
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the RS Diversified Growth Portfolio, the Russell 2000 Small
Company Index, and the S&P 500 Index on February 9, 1996, the inception date of
the Portfolio. The figures for the Portfolio, the Russell 2000 Small Company
Index and the S&P 500 Index include reinvestment of dividends.
Average Annual Total Returns as of 6/30/00
6 Months 3 Years Since Inception
-------- ------- ---------------
(February 9, 1996)
RS Diversified Growth Portfolio (2.13%)* 51.60%* 31.45%*
Russell 2000 Small Company
Index 3.04% 10.57% 12.93%
S&P 500 Index (0.42%) 19.67% 21.83%
LEXINGTON CORPORATE LEADERS PORTFOLIO
INVESTMENT SUB-ADVISOR
Lexington Management Corporation
ABOUT THE PORTFOLIO
Invests in large, well-established companies believed to have long-term capital
growth and earnings.
PERFORMANCE
Net total return for the six months ended June 30, 2000:
Lexington Corporate Leaders
Portfolio (8.08%)*
S&P 500 Index (0.42%)
Lipper Large-Cap
Value Index (1.99%)
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 Large-Cap Value Index is a nonweighted index investing in stocks and
corporate and government bonds. Results for the Lipper Large-Cap Value Index do
not reflect expenses and investment management fees incurred by the Portfolio.
Previously, the Portfolio followed the Lipper Growth & Income Index. Due to a
revaluation by Lipper, effective September 1999 this changed to Lipper Large-Cap
Value Index.
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 -8.08% for
the six months ending June 30, 2000. Comparatively, the returns for the S&P 500
Index and the Lipper Large-Cap Value Index were -0.42% and -1.99%, respectively.
During the first half of 2000, rising interest rates and signs of an economic
slowdown led to an increase in market volatility. Although these factors have
affected different sectors of the market to varying degrees, value stocks have
once again underperformed both growth stocks and the general market. Against
this generally negative backdrop, several of the Portfolio's holdings suffered
from company-specific bad news.
Proctor & Gamble's shares were hit particularly hard in the face of
disappointing earnings and major changes in its top management. AT&T has been
hurt by declining market share in its traditional business and its new business
have not yet grown enough to offset these declines. Lucent Technologies (which
was formed from the systems and technologies business of AT&T) has turned in
poor returns this year, reflecting revenues and earnings disappointments.
On the positive side, several of the Portfolio's holdings performed very well
during the first half. Union Pacific, the largest railroad in the U.S. , has
been experiencing strong traffic volume growth this year and is expected to
experience strong growth. At the same time, it is emphasizing increased
efficiency and service improvements, which should contribute to continued
positive returns over the near and medium terms. Although still in the midst of
streamlining operations. Citigroup, formed by the merger of Citicorp and
Travelers, has been recording exceptional operating results in 2000. Given its
presence in growing markets and the expected efficiencies resulting from further
cost controls, this large financial services conglomerate should continue to
deliver superior operating results over the next few years.
Over the long term, we are quite confident about the prospects for the
Portfolio. As investors adjust to more rational return expectations in the
equity markets, we expect the overlooked value stocks, such as those contained
in the Portfolio, to provide better returns over the long term.
$10,000 Hypothetical Investment since inception February 9, 1996
----------------------------------------------------------------
Lexington Corporate Leaders Portfolio - X
S&P 500 Index - Y
Lipper Large-Cap Value Index - Z
$24,000-------------------------------------------------------------- Y $23,798
$22,000--------------------------------------------------------------
$20,000--------------------------------------------------------------
$18,000-------------------------------------------------------------- Z $18,891
$16,000-------------------------------------------------------------- X $17,411
$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 Large-Cap Value Index on February 9, 1996, the inception date of
the Portfolio. The figures for the Portfolio, the S&P 500 Index and the Lipper
Large-Cap Value Index include reinvestment of dividends.
Average Annual Total Returns as of 6/30/00
6 Months 3 Years Since Inception
-------- ------- ---------------
(February 9, 1996)
Lexington Corporate Leaders
Portfolio (8.08%)* 8.87%* 13.46%*
S&P 500 Index (0.42%) 19.67% 21.83%
Lipper Large-Cap Value Index (1.99%) 12.06% 15.59%
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 six months ended June 30, 2000:
SAI Global Leaders
Portfolio (7.44%)*
S&P 500 Index (0.42%)
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, London Pacific Life & Annuity Company voluntarily
agreed to reimburse and waive certain operating expenses of the Portfolio. In
the absence of the expense reimbursement and fee waivers, total return would
have been lower.
The SAI Global Leaders Portfolio earned a total return of -7.44% for the six
months ending June 30, 2000, compared to -0.42% for the S&P 500 Index.
The second quarter slowdown that occurred was a reaction to an unsustainable
first quarter growth, which was propelled by early tax refunds, unseasonably
mild weather and millennium effects.
Shares prices rallied off their lows in April. Most modern day investors view
every price fall as a buying opportunity, which makes it unlikely that the
second quarter market correction and increased volatility will dent consumer
consumption.
With weak real growth and higher potential growth, surging inflationary
pressures may be farther off than currently anticipated. Lack of inflationary
pressures should help interest rates stabilize and provide a more positive
backdrop for financial assets. This, of course is not the end of the story,
since both interest rates and earnings determine levels of stock prices.
While the fear of aggressive Federal Reserve tightening early in the second
quarter put downward pressure on several individual names in the Portfolio, we
believe this is exactly the prescription needed to purge the extreme optimism
that existed for internet and biotechnology companies of spurious financial
strength and questionable earnings power. Removal of speculative trading in
these securities should direct more interest to companies with current earnings,
comparative profitability, and the ability to generate after-tax cash flows. In
other words, more buying interest should develop for the kinds of companies we
focus on in the SAI Global Leaders Portfolio. In 1999, companies without
earnings in the NASDAQ advanced over 115%, but companies with earnings advanced
over 50%.
In conclusion, the later half of 2000 should see reduced pressure from the
Federal Reserve, greater emphasis on companies with strong fundamentals and
reasonable valuations, and lesser volatility compared to the recent quarter. In
other words, we expect improved performance from U.S. and selected worldwide
financial assets, and competitive returns in your Portfolio.
$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-------------------------------------------------------------- X $10,830
$10,500-------------------------------------------------------------- Y $10,517
$10,000--------------------------------------------------------------
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 Returns as of 6/30/00
6 Months Since Inception
-------- ---------------
(May 11, 1999)
SAI Global Leaders Portfolio (7.44%)* 7.25%*
S&P 500 Index (0.42%) 4.52%
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Assets and Liabilities
June 30, 2000 (Unaudited)
Harris
Associates MFS Total RS
Value Return Strong Growth Diversified Growth
Assets Portfolio Portfolio Portfolio Portfolio
---------------- ----------------- ----------------- --------------------
<S> <C> <C> <C> <C>
Investments at value, see accompanying schedules $ 6,313,589 $12,086,171 $15,440,761 $14,084,005
Repurchase agreements at cost and value 296,000 0 1,052,000 257,000
Cash and foreign currency at value 213 348 604 852
Dividends and interest receivable 17,497 87,191 1,552 2,488
Receivable for investments securities sold 0 62,618 447,757 81,815
Receivable for Trust shares sold 0 7,286 0 1,370
Expense reimbursement receivable 3,977 2,469 0 0
Other assets 2,319 2,319 2,319 2,319
----- ----- ----- -----
Total Assets $ 6,633,595 $12,248,402 $16,944,993 $14,429,849
Investments at cost $ 7,014,414 $11,892,832 $11,891,640 $13,072,040
Foreign currency at cost $0 $452 $0 $0
Liabilities
Payable for investments securities purchased $0 $81,953 $261,853 $74,241
Payable for Trust shares redeemed 4,040 7,484 10,162 8,586
Payable to London Pacific 0 0 8,489 8,530
Custodian fees payable 7,647 17,627 16,986 12,972
Advisory fees payable 17,055 22,818 29,161 33,515
Accrued legal and audit fees 15,003 15,003 15,153 15,153
Accrued expenses and other liabilities 416 8,235 416 416
--- ----- --- ---
Total Liabilities 44,161 153,120 342,220 153,413
Net Assets $ 6,589,434 $12,095,282 $16,602,773 $14,276,436
=========== =========== =========== ===========
Components of Net Assets:
Paid-in capital $ 6,590,393 $10,903,246 $8,946,594 $7,196,872
Undistributed net investment income (loss) 56,477 514,356 (71,995) (102,063)
Accumulated net realized gain (loss) on
securities and foreign currency transactions 643,389 484,445 4,179,053 6,169,662
Net unrealized appreciation (depreciation)of
securities and foreign currency transactions (700,825) 193,235 3,549,121 1,011,965
-------- ------- --------- ---------
Net Assets $ 6,589,434 $12,095,282 $16,602,773 $14,276,436
=========== =========== =========== ===========
Shares Outstanding (unlimited authorization,
$.01 par value) 508,270 852,795 554,195 632,866
======= ======= ======= =======
Net Asset Value, Offering Price and Redemption
Price, Per Share (net assets/shares outstanding) $ 12.96 $ 14.18 $ 29.96 $ 22.56
======== =========== ======== ========
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Assets and Liabilities
June 30, 2000 (Unaudited)
Lexington SAI
Corporate Global
Leaders Leaders
Assets Portfolio Portfolio
--------------- ----------------
<S> <C> <C>
Investments at value, see accompanying schedules $8,164,353 $2,254,988
Repurchase agreements at cost and value 144,000 0
Cash and foreign currency at value 916 0
Dividends and interest receivable 13,376 1,321
Receivable for investments securities sold 0 56,629
Receivable for Trust shares sold 7,064 12,757
Expense reimbursement receivable 0 5,262
Other assets 2,319 2,319
----- -----
Total Assets $8,332,028 $2,333,276
Investments at cost $7,501,534 $2,169,976
Foreign currency at cost $0 $0
Liabilities
Payable for investments securities purchased $0 $38,406
Payable for Trust shares redeemed 5,085 106,506
Payable to London Pacific 12,109 0
Custodian fees payable 7,397 7,481
Advisory fees payable 13,875 0
Accrued legal and audit fees 15,003 15,153
Accrued expenses and other liabilities 421 444
--- ---
Total Liabilities 53,890 167,990
Net Assets $8,278,138 $2,165,286
========== ==========
Components of Net Assets:
Paid-in capital $6,605,568 $2,150,661
Undistributed net investment income (loss) 91,672 (3,096)
Accumulated net realized gain (loss) on
securities and foreign currency transactions 918,079 (67,291)
Net unrealized appreciation (depreciation)of
securities and foreign currency transactions 662,819 85,012
------- ------
Net Assets $8,278,138 $2,165,286
========== ==========
Shares Outstanding (unlimited authorization,
$.01 par value) 508,923 199,878
======= =======
Net Asset Value, Offering Price and Redemption
Price, Per Share (net assets/shares outstanding) $ 16.27 $ 10.83
======== =======
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Operations
For the Six Months Ended
June 30, 2000 (Unaudited)
Harris Lexington SAI
Associates MFS Total RS Corporate Global
Value Return Strong Growth Diversified Growth Leaders Leaders
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- ---------
Investment Income
Income:
<S> <C> <C> <C> <C> <C> <C>
Dividends $ 62,386 $ 76,909 $ 8,882 $ 4,325 $ 95,630 $ 9,226
Foreign withholding tax on
dividend income (311) (1,245) (119) 0 (729) (534)
Interest 10,456 183,785 24,022 7,030 3,673 734
------ ------- ------ ----- ----- ---
Total Investment Income 72,531 259,449 32,785 11,355 98,574 9,426
------ ------- ------ ------ ------ -----
Expenses:
Investment advisory fees 31,656 45,898 60,913 77,507 27,695 7,280
Custodian fees 14,090 36,449 37,352 29,355 16,096 15,238
Legal and audit fees 10,263 10,263 10,263 10,263 10,263 11,566
Insurance expense 2,433 2,433 2,433 2,433 2,433 2,433
Trustees' fees and expenses 3,000 3,000 3,000 3,000 3,000 3,000
Printing expenses 316 316 316 316 316 316
Other expenses 1,318 1,318 1,318 1,318 1,318 1,318
----- ----- ----- ----- ----- -----
Expenses before expense
reimbursement and fee
waivers 63,076 99,677 115,595 124,192 61,121 41,151
Fees waived by
investment advisor(Note 3) 0 0 0 0 0 (7,280)
Expense reimbursement
(Note 3) (22,230) (20,722) (10,815) (10,774) (6,144) (21,349)
------- ------- ------- ------- ------ -------
Net Expenses 40,846 78,955 104,780 113,418 54,977 12,522
------ ------ ------- ------- ------ ------
Net Investment Income (Loss) 31,685 180,494 (71,995) (102,063) 43,597 (3,096)
------ ------- ------- -------- ------ ------
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on securities
and foreign currency
transactions 329,715 168,146 2,888,164 3,636,030 382,428 (56,359)
Net change in unrealized
(depreciation) of securities and
foreign currency transactions (840,572) (99,146) (1,699,383) (3,647,982) (1,163,072) (86,215)
-------- ------- ---------- ---------- ---------- -------
Net Gain (Loss) on Investments (510,857) 69,000 1,188,781 (11,952) (780,644) (142,574)
-------- ------ --------- ------- -------- --------
Net Increase (Decrease) in Net Assets
Resulting from Operations ($479,172) $ 249,494 $1,116,786 ($ 114,015) ($737,047) ($145,670)
========= ========= ========== ============ ========= ========
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Changes in Net Assets
Harris Associates MFS Total Return Strong Growth
Value Portfolio Portfolio Portfolio
------------------------------------------- -------------------------------- ---------------------------------
Six Months Ended Six Months Ended Six Months Ended
June 30, 2000 Year Ended June 30, 2000 Year Ended June 30, 2000 Year Ended
(Unaudited) December 31,1999 (Unaudiated) December 31, 1999 (Unaudited) December 31, 1999
----------- ---------------- ------------ ----------------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $ 31,685 $ 24,792 $ 180,494 $ 337,753 $ (71,995) $ (81,588)
Net realized gain on securities
and foreign currency
transactions 329,715 394,464 168,146 319,379 2,888,164 2,884,292
Net change in unrealized
appreciation (depreciation)of
securities and foreign
currency transactions (840,572) (77,471) (99,146) (329,730) (1,699,383) 3,759,213
-------- ------- ------- -------- ---------- ---------
Net increase (decrease) in net assets
resulting from operations (479,172) 341,785 249,494 327,402 1,116,786 6,561,917
-------- ------- ------- ------- --------- ---------
Distributions to Shareholders from:
Net investment income 0 (42,474) 0 (249,853) 0 0
Net realized gain on investments 0 (296,898) 0 (507,236) 0 (1,651,631)
- -------- - -------- - ----------
Total distributions 0 (339,372) 0 (757,089) 0 (1,651,631)
Share Transactions
Net proceeds from sale
of shares 2,084,523 907,367 942,265 2,725,942 3,303,195 4,211,902
Issued to shareholders in
reinvestment of dividends 0 339,372 0 757,089 0 1,651,631
Cost of shares repurchased (1,551,246) (1,936,658) (2,225,295) (1,690,115) (2,179,774) (3,271,087)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease)
from share transactions
(Note 5) 533,277 (689,919) (1,283,030) 1,792,916 1,123,421 2,592,446
------- -------- ---------- --------- --------- ---------
Total Increase (Decrease) in
Net Assets 54,105 (687,506) (1,033,536) 1,363,229 2,240,207 7,502,732
------ -------- ---------- --------- --------- ---------
Net Assets at Beginning
of Period 6,535,329 7,222,835 13,128,818 11,765,589 14,362,566 6,859,834
--------- --------- ---------- ---------- ---------- ---------
Net Assets at End of Period $6,589,434 $6,535,329 $ 12,095,282 $ 13,128,818 $16,602,773 $14,362,566
========== ========== ============ ============ =========== ===========
Accumulated undistributed net
investment income (loss) included
in net assets at end of period $ 56,477 $ 24,792 $ 514,356 $ 333,862 ($ 71,995) $ 0
======== ======== ========== ========== ========= ====
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Changes in Net Assets
RS Diversified Lexington Corporate SAI Global
Growth Portfolio Leaders Portfolio Leaders Portfolio
---------------------------------- ----------------------------------- ----------------------------------------
Six Months Ended Six Months Ended Six Months Ended
June 30, 2000 Year Ended June 30, 2000 Year Ended June 30, 2000 Period Ended
(Unaudited) December 31, 1999 (Unaudited) December 31,1999 (Unaudited) December 31,1999 (1)
----------- ----------------- ----------- ---------------- ----------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets from Operations
Net investment income (loss)$(102,063) $ (76,494) $ 43,597 $ 48,075 $ (3,096) $ (1,850)
Net realized gain (loss) on
securities and foreign currency
transactions 3,636,030 4,967,989 382,428 536,565 (56,359) (10,932)
Net change in unrealized
appreciation (depreciation)
of securities and foreign
currency transactions (3,647,982) 3,871,787 (1,163,072) 1,011,348 (86,215) 171,227
---------- --------- ---------- --------- ------- -------
Net increase in net assets
resulting from operations (114,015) 8,763,282 (737,047) 1,595,988 (145,670) 158,445
-------- --------- -------- --------- -------- -------
Distributions to Shareholders from:
Net investment income 0 0 0 (52,006) 0 0
Net realized gain on investments 0 (2,740,723) 0 (89,495) 0 0
- ---------- - ------- - -
Total distributions 0 (2,740,723) 0 (141,501) 0 0
Share Transactions
Net proceeds from sale
of shares 3,316,733 2,744,479 1,207,201 1,571,204 1,018,249 1,380,335
Issued to shareholders in
reinvestment of dividends 0 2,740,723 0 141,501 0 0
Cost of shares repurchased(3,968,031) (2,722,879) (1,429,736) (2,098,213) (234,620) (11,453)
---------- ---------- ---------- ---------- -------- -------
Net increase (decrease) from
share transactions (Note 5) (651,298) 2,762,323 (222,535) (385,508) 783,629 1,368,882
-------- --------- -------- -------- ------- ---------
Total Increase (Decrease)
in Net Assets (765,313) 8,784,882 (959,582) 1,068,979 637,959 1,527,327
-------- --------- -------- --------- ------- ---------
Net Assets at Beginning
of Period 15,041,749 6,256,867 9,237,720 8,168,741 1,527,327 0
---------- --------- --------- --------- --------- -
Net Assets at End
of Period $14,276,436 $15,041,749 $8,278,138 $9,237,720 $2,165,286 $ 1,527,327
=========== =========== ========== ========== ========== ===========
Accumulated undistributed net
investment income (loss)
included in net assets
at end of period ($102,063) $ 0 $ 91,672 $ 48,075 ($3,096) $ 0
========= ===== ======== ======== ======= =====
(1) For the period May 11, 1999 (Commencement of Operations) to December 31, 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 Year Ended Period Ended
June 30, 2000 (Unaudited) December 31, 1999 December 31,1998 December 31, 1997 December 31, 1996*
------------------------- ----------------- ---------------- ---------------- ------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $13.95 $14.03 $13.45 $11.86 $10.00
Income from Investment Operations:
Net investment income (a) 0.06 0.05 0.10 0.08 0.10
Net realized and unrealized gain (loss) on
investments (1.05) 0.61 0.48 2.94 2.13
----- ---- ---- ---- ----
Total from investment operations (0.99) 0.66 0.58 3.02 2.23
----- ---- ---- ---- ----
Less Distributions:
Dividends from net investment income 0.00 (0.09) 0.00 (0.05) (0.10)
Distributions from net realized capital gains 0.00 (0.65) 0.00 (1.38) (0.27)
---- ----- ---- ----- -----
Total distributions 0.00 (0.74) 0.00 (1.43) (0.37)
---- ----- ---- ----- -----
Net Asset value, End of Period $12.96 $13.95 $14.03 $13.45 $11.86
====== ====== ====== ====== ======
Total Return ++ (7.10%) 4.65% 4.31% 25.56% 20.39%
===== ==== ==== ===== =====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $6,589 $6,535 $7,223 $3,523 $1,421
Ratio of operating expenses to average net
assets 1.29%+ 1.29% 1.29% 1.29% 1.26%+
Ratio of net investment income to average net
assets 1.00%+ 0.35% 0.75% 0.56% 1.01%+
Portfolio turnover rate 46.37% 22.47% 49.83% 84.94% 41.08%
Ratio of operating expenses to average net
assets before expense reimbursements 1.99%+ 1.85% 1.85% 4.22% 7.55%+
Net investment income (loss) per share before
expense reimbursements (a) $0.02 ($0.03) $0.03 ($0.32) ($0.52)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 2000, for the years ended December 31, 1999,
1998 and 1997 and for the period February 9, 1996 (effective date) to December 31, 1996, respectively. The total returns 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 Months Ended Year Ended Year Ended Year Ended Period Ended
June 30, 2000 (Unaudited) December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996*
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $13.83 $14.28 $12.80 $10.90 $10.00
Income from Investment Operations:
Net investment income (a) 0.20 0.38 0.37 0.35 0.25
Net realized and unrealized gain on
investments 0.15 0.02 1.16 1.95 0.85
---- ---- ---- ---- ----
Total from investment operations 0.35 0.40 1.53 2.30 1.10
---- ---- ---- ---- ----
Less Distributions:
Dividends from net investment income 0.00 (0.28) 0.00 (0.19) (0.20)
Distributions from net realized capital
gains 0.00 (0.57) (0.05) (0.21) (0.00)
---- ----- ----- ----- -----
Total distributions 0.00 (0.85) (0.05) (0.40) (0.20)
---- ----- ----- ----- -----
Net Asset Value, End of Period $14.18 $13.83 $14.28 $12.80 $10.90
====== ====== ====== ====== ======
Total Return ++ 2.60% 2.92% 11.98% 21.18% 9.81%
==== ==== ===== ===== ====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $12,095 $13,129 $11,766 $5,973 $1,529
Ratio of operating expenses to average net
assets 1.29%+ 1.29% 1.29% 1.29% 1.26%+
Ratio of net investment income to average
net assets 2.95%+ 2.67% 2.72% 2.80% 2.59%+
Portfolio turnover rate 49.81% 109.20% 126.29% 103.75% 53.91%
Ratio of operating expenses to average net
assets before expense reimbursements 1.63%+ 1.60% 1.87% 3.88% 7.84%+
Net investment income (loss) per share
before expense reimbursements (a) $0.18 $0.34 $0.29 $0.03 ($0.38)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 2000, for the years ended December 31,1999,
1998 and 1997 and for the period February 9, 1996 (effective date) to December 31, 1996, respectively. The total returns 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
Strong Growth Portfolio
----------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Year Ended Year Ended Period Ended
June 30, 2000 (Unaudited) December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996*
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $27.36 $17.06 $13.47 $11.92 $10.00
Income from investment operations:
Net investment income (loss) (a) (0.13) (0.18) (0.08) (0.04) 0.25
Net realized and unrealized gain
on investments 2.73 13.79 4.17 3.07 2.49
---- ----- ---- ---- ----
Total from investment operations 2.60 13.61 4.09 3.03 2.74
---- ----- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 0.00 (0.22)
Distributions from net realized
capital gains 0.00 (3.31) (0.50) (1.48) (0.60)
---- ----- ----- ----- -----
Total distributions 0.00 (3.31) (0.50) (1.48) (0.82)
---- ----- ----- ----- -----
Net Asset Value, End of Period $29.96 $27.36 $17.06 $13.47 $11.92
====== ====== ====== ====== ======
Total return ++ 9.50% 81.45% 30.43% 25.56% 20.27%
==== ===== ===== ===== =====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $16,603 $14,363 $6,860 $2,912 $1,513
Ratio of operating expenses to average
net assets 1.29%+ 1.29% 1.29% 1.29% 1.26%+
Ratio of net investment income (loss) to
average net assets (0.89%)+ (0.88%) (0.53%) (0.26%) 2.25%+
Portfolio turnover rate 191.98% 342.87% 275.16% 270.11% 422.67%
Ratio of operating expenses to average net
assets before expense reimbursements 1.42%+ 1.80% 2.39% 4.44% 7.09%+
Net investment income (loss) per share before
expense reimbursements (a) ($0.15) ($0.28) ($0.24) ($0.46) ($0.39)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 2000, for the years ended December 31, 1999,
1998 and 1997 and for the period February 9, 1996 (effective date) to December 31, 1996, respectively. The total returns 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
RS Diversified Growth Portfolio (1)
-------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Year Ended Year Ended Period Ended
June 30, 2000(Unaudited) December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996*
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $23.05 $12.00 $10.22 $8.58 $10.00
Income from investment operations:
Net investment income (loss) (a) (0.15) (0.14) (0.08) (0.07) 2.10
Net realized and unrealized gain (loss) on
investments (0.34) 15.96 1.86 1.71 (1.69)
----- ----- ---- ---- -----
Total from investment operations (0.49) 15.82 1.78 1.64 0.41
----- ----- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 0.00 (1.83)
Distributions from net realized capital gains0.00 (4.77) 0.00 0.00 (0.00)
---- ----- ---- ---- -----
Total distributions 0.00 (4.77) 0.00 0.00 (1.83)
---- ----- ---- ---- -----
Net Asset Value, End of Period $22.56 $23.05 $12.00 $10.22 $8.58
====== ====== ====== ====== =====
Total return ++ (2.13%) 137.04% 17.42% 19.12% 2.42%
===== ====== ===== ===== ====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $14,276 $15,042 $6,257 $3,452 $1,441
Ratio of operating expenses to average net
assets 1.39%+ 1.39% 1.39% 1.39% 1.36%+
Ratio of net investment income (loss) to
average net assets (1.25%)+ (0.87%) (0.73%) (0.72%) 20.30%+
Portfolio turnover rate 170.40% 480.03% 381.64% 234.54% 2,242.85%
Ratio of operating expenses to average net
assets before expense reimbursements 1.52%+ 1.97% 2.37% 4.53% 7.02%+
Net investment income (loss) per share
before expense reimbursements (a) ($0.17) ($0.24) ($0.18) ($0.35) $1.51
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 2000, for the years ended December 31, 1999,
1998 and 1997 and for the period February 9, 1996 (effective date) to December 31, 1996, respectively. The total returns 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 Berkeley Smaller Companies Portfolio (Note 1).
* For the period January 31, 1996 (Commencement of Operations) to December 31, 1996
See Notes to Financial Statement
</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 Year Ended Period Ended
June 30, 2000 (Unaudited) December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996*
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.70 $14.97 $13.39 $11.44 $10.00
Income from Investment Operations:
Net investment income (loss) (a) 0.09 0.09 0.12 0.13 0.14
Net realized and unrealized gain (loss) on
investments (1.52) 2.91 1.49 2.70 1.42
----- ---- ---- ---- ----
Total from investment operations (1.43) 3.00 1.61 2.83 1.56
----- ---- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 (0.10) 0.00 (0.08) (0.12)
Distributions from net realized
capital gains 0.00 (0.17) (0.03) (0.80) (0.00)
---- ----- ----- ----- -----
Total distributions 0.00 (0.27) (0.03) (0.88) (0.12)
---- ----- ----- ----- -----
Net Asset Value, End of Period $16.27 $17.70 $14.97 $13.39 $11.44
====== ====== ====== ====== ======
Total Return ++ (8.08%) 20.05% 12.04% 24.71% 12.84%
===== ===== ===== ===== =====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $8,278 $9,238 $8,169 $3,453 $1,323
Ratio of operating expenses to average
net assets 1.29%+ 1.29% 1.29% 1.29% 1.26%+
Ratio of net investment income (loss) to
average net assets 1.02+ 0.53% 0.87% 0.99% 1.40%+
Portfolio turnover rate 6.91% 10.06% 7.08% 35.69% 0.00%
Ratio of operating expenses to average net
assets before expense reimbursements and fee
waivers 1.43%+ 1.34% 1.60% 4.08% 6.86%+
Net investment income (loss) per share
before expense reimbursements (a) $0.07 $0.08 $0.08 $(0.24) $(0.41)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 2000, for the years ended December 31, 1999,
1998 and 1997 and for the period February 9, 1996 (effective date) to December 31, 1996, respectively.
The total returns would have been lower if certain expenses had not been reimbursed and waived 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
------------------------------------------------------
Six Months Ended Period Ended
June 30, 2000 (Unaudited) December 31, 1999**
------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $11.70 $10.00
Income from Investment Operations:
Net investment income (loss) (a) (0.02) (0.03)
Net realized and unrealized gain (loss) on
investments (0.85) 1.73
----- ----
Total from investment operations (0.87) 1.70
----- ----
Less distributions:
Dividends from net investment income 0.00 0.00
Distributions from net realized
capital gains 0.00 0.00
---- ----
Total distributions 0.00 0.00
---- ----
Net Asset Value, End of Period $10.83 $11.70
====== ======
Total Return ++ (7.44%) 17.00%
===== =====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $2,165 $1,527
Ratio of operating expenses to average
net assets 1.29%+ 1.29%+
Ratio of net investment income (loss) to
average net assets (0.32%)+ (0.50%)+
Portfolio turnover rate 26.59% 12.36%
Ratio of operating expenses to average net assets
before expense reimbursements and fee
waivers 4.24%+ 9.86%+
Net investment income (loss) per share
before expense reimbursements (a) $(0.18) $(0.61)
+ Annualized
++ Total returns represent aggregate total return for the six months ended June 30, 2000, and for the period between May 11, 1999
to December 31, 1999, respectively. The total returns would have been lower if certain expenses had not been reimbursed
and waived 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 December 31, 1999
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Harris Associates Value Portfolio
Schedule of Investments
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - 95.82%
Consumer Discretionary - 22.46%
<S> <C>
12,000 Brunswick Corporation .....................................................$198,750
4,750 Carnival Corporation .......................................................92,625
8,200 Fortune Brands, Inc. .......................................................189,112
3,850 Jones Apparel Group, Inc. +.................................................90,475
6,150 Kroger Company +...........................................................135,684
3,750 Maytag Corporation..........................................................138,281
5,800 Newell Rubbermaid, Inc. ....................................................149,350
4,500 Ralston Purina Company.......................................................89,719
14,000 Toys R Us, Inc. +.........................................................203,875
6,800 Tricon Global Restaurants, Inc. +.........................................192,100
--------
1,479,971
---------
Financial Services - 11.85%
4,600 MGIC Investment Corporation.................................................209,300
8,000 NOVA Corporation +........................................................223,500
12,050 Washington Mutual, Inc. ....................................................347,944
--------
780,744
-------
Consumer Non-Durables - 10.83%
36,000 Mattel, Inc. ...............................................................474,750
6,000 Nike, Inc. .................................................................238,875
--------
713,625
-------
Consumer Basics - 9.89%
4,950 Black & Decker Corporation..................................................194,597
13,600 Dial Corporation............................................................141,100
7,400 Fort James Corporation......................................................171,125
5,443 Philip Morris Companies, Inc. ..............................................144,580
--------
651,402
-------
Electronics - 8.02%
12,750 Ceridian Corporation +....................................................300,781
3,750 Electronic Data Systems Corporation.........................................154,687
2,350 Sungard Data Systems, Inc. +...............................................72,850
-------
528,318
-------
General Business - 7.99%
6,000 ACNielsen Corporation +....................................................132,000
7,350 Cendant Corporation +......................................................102,900
3,900 Equifax, Inc. .............................................................102,375
5,850 H & R Block, Inc. ..........................................................189,394
--------
526,669
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Harris Associates Value Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Capital Goods - 7.89%
<S> <C>
4,600 B.F. Goodrich Company......................................................$156,688
6,500 Cooper Industries, Inc. ....................................................211,656
8,300 Energizer Holdings, Inc. +................................................151,475
--------
519,819
-------
Construction Materials - 4.14%
6,700 Masco Corporation...........................................................121,019
5,000 USG Corporation.............................................................151,875
--------
272,894
-------
Autos & Transportation - 2.41%
3,050 Daimler Chrysler, AG .......................................................158,791
--------
Communications - 2.20%
8,400 Citizens Communications Company +.........................................144,900
--------
Broadcasting & Publishing - 2.02%
4,650 Dun & Bradstreet Corporation................................................133,106
--------
Utilities - 1.92%
4,300 TXU Corporation.............................................................126,850
--------
Chemicals - 1.69%
5,300 Ferro Corporation...........................................................111,300
--------
Office Equipment - 1.61%
5,100 Xerox Corporation...........................................................105,825
--------
Drugs & Health Care - 0.90%
1,250 Chiron Corporation +.......................................................59,375
-------
Total Common Stocks (Cost $7,014,414).....................................6,313,589
----------
Principal
Amount
------
SHORT-TERM OBLIGATIONS - 4.49%
Repurchase Agreement - 4.49%
$296,000 Repurchase Agreement with State Street Bank and Trust Company,
dated 06/30/00 at 5.25%, due 07/03/00, maturity value
$296,129 (collateralized by U.S. Treasury Note, 5.625%, due 09/30/01,
par value $305,000; market value $305,930) (Cost $296,000) 296,000
-------
TOTAL INVESTMENTS (COST $7,310,414*) ........100.31% $6,609,589
OTHER ASSETS AND LIABILITIES (NET) ...........(0.31) (20,155)
------ -------
NET ASSETS...................................100.00% $6,589,434
======= ==========
* 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, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - 55.52%
Financial Services - 12.55%
<S> <C>
520 Allstate Corporation........................................................$11,570
100 American International Group, Inc. ..........................................11,750
100 AXA .........................................................................15,752
3,020 AXA Financial, Inc. ........................................................102,680
1,639 Bank of America Corporation..................................................70,477
700 Bank Of New York Company, Inc. ..............................................32,550
300 Bank One Corporation..........................................................7,969
590 Chubb Corporation............................................................36,285
450 CIGNA Corporation............................................................42,075
1,490 Citigroup, Inc. .............................................................89,772
1,495 A.G. Edwards, Inc. ..........................................................58,305
850 Federal Home Loan Mortgage Corporation.......................................34,425
3,090 The Hartford Financial Services Group, Inc. ................................172,847
5,000 HSBC Holdings PLC............................................................57,157
1,942 ING Groep NV................................................................131,265
645 Jefferson Pilot Corporation..................................................36,402
2,220 Lincoln National Corporation.................................................80,197
985 Marsh & McLennan Companies, Inc. ...........................................102,871
3,110 Mellon Bank Corporation.....................................................113,321
390 Merrill Lynch & Company, Inc. ...............................................44,850
1,210 MetLife, Inc. ...............................................................25,486
1,560 PNC Financial Services Group, Inc. ..........................................73,125
1,170 Reliastar Financial Corporation..............................................61,352
3,070 St. Paul Companies, Inc. ...................................................104,764
--------
1,517,247
---------
Energy - 9.65%
1,000 Apache Corporation...........................................................58,812
3,288 BP Amoco PLC, ADR...........................................................185,977
280 Chevron Corporation..........................................................23,748
2,900 Conoco, Inc. ................................................................63,800
1,860 Devon Energy Corporation....................................................104,509
520 El Paso Energy Corporation...................................................26,487
2,080 Exxon Mobil Corporation.....................................................163,280
3,100 Halliburton Company.........................................................146,281
4,080 Noble Drilling Corporation +.............................................168,045
2,340 Royal Dutch Petroleum Company...............................................144,056
1,440 Sunoco, Inc. ................................................................42,390
750 Transocean Sedco Forex, Inc. ................................................40,078
-------
1,167,463
---------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Utilities - 6.40%
<S> <C>
700 CMS Energy Corporation......................................................$15,488
1,510 CP&L Energy, Inc. ...........................................................48,226
3,800 Coastal Corporation.........................................................231,325
660 Columbia Energy Group........................................................43,312
1,250 Duke Energy Company..........................................................70,469
580 Eastern Enterprises..........................................................36,540
1,860 National Fuel Gas Company....................................................90,675
500 PECO Energy Company..........................................................20,156
1,220 Pinnacle West Capital Corporation............................................41,328
996 Sierra Pacific Resources.....................................................12,512
550 TXU Corporation..............................................................21,381
1,000 Washington Gas & Light Company...............................................24,062
2,830 Williams Companies, Inc. ...................................................117,976
--------
773,450
-------
Communications - 4.20%
800 AT&T Corporation.............................................................25,300
500 Alltel Corporation...........................................................30,969
3,080 GTE Corporation.............................................................191,730
600 Nippon Telegraph & Telephone Corporation................................... 41,025
2,740 SBC Communications, Inc. ...................................................118,505
450 Sprint Corporation...........................................................22,950
650 Telephone & Data Systems, Inc. ..............................................65,162
230 Verizon Communications.......................................................11,687
-------
507,328
-------
Drugs & Health Care - 3.78%
2,350 Abbott Laboratories.........................................................104,722
1,720 American Home Products Corporation..........................................101,050
250 Baxter International, Inc. ..................................................17,578
1,360 Bristol Myers Squibb Company.................................................79,220
800 HCA - The Healthcare Company.................................................24,300
2,071 Pharmacia Corporation.......................................................107,045
360 SmithKline Beecham, PLC, ADR.................................................23,467
-------
457,382
-------
Consumer Discretionary - 3.37%
600 Anheuser Busch Companies, Inc. ..............................................44,813
7,207 Diageo. .....................................................................64,668
100 Eastman Kodak Company.........................................................5,950
1,620 Fortune Brands, Inc. ........................................................37,361
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Consumer Discretionary - (Continued)
<S> <C>
2,740 Harrah's Entertainment, Inc. +..........................................$57,369
3,100 Kroger Company +..........................................................68,394
900 MGM Grand, Inc. ............................................................28,912
640 McDonald's Corporation......................................................21,080
1,560 Safeway, Inc. +..........................................................70,395
230 Walt Disney Company..........................................................8,927
------
407,869
-------
Broadcasting & Publishing - 2.86%
800 Comcast Corporation.........................................................30,400
1,580 Gannett, Inc. ..............................................................94,504
2,200 New York Times Company, Class A.............................................86,900
780 Time Warner, Inc. ..........................................................59,280
1,400 Tribune Company.............................................................49,000
379 Viacom, Inc. +.............................................................25,843
-------
345,927
-------
Capital Goods - 2.68%
2,460 Deere & Company.............................................................91,020
2,550 Emerson Electric Company...................................................153,956
100 General Electric Company.....................................................5,300
650 W. W. Grainger, Inc. .......................................................20,028
1,000 Ingersoll Rand Company......................................................44,275
210 Tyco International, Ltd. ....................................................9,949
------
324,528
-------
Consumer Staples - 2.12%
3,926 Archer Daniels Midland Company..............................................38,524
980 General Mills, Inc. ........................................................37,485
380 Hershey Foods Corporation...................................................18,430
500 McCormick & Company, Inc. ..................................................16,250
32 Nestle SA ..................................................................64,047
1,080 Quaker Oats Company.........................................................81,135
-------
255,871
-------
Materials and Processing - 2.06%
3,185 Akzo Nobel NV .............................................................135,312
642 ALCOA, Inc. ................................................................18,618
2,740 Rohm & Haas Company.........................................................94,530
------
248,460
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Aerospace - 1.64%
<S> <C>
1,700 Boeing Company.............................................................$71,081
1,620 TRW, Inc. ..................................................................70,268
970 United Technologies Corporation.............................................57,109
-------
198,458
-------
Electronics - 0.74%
33 Agilent Technologies, Inc. +..............................................2,419
1,170 Honeywell International, Inc. ..............................................39,414
1,660 Motorola, Inc. .............................................................48,244
-------
90,077
------
Autos & Transportation - 0.56%
1,590 Burlington Northern Santa Fe Corporation....................................36,471
474 Ford Motor Company..........................................................20,382
190 United Parcel Service of America, Inc. .....................................11,210
-------
68,063
------
Basic Industry - 0.51%
480 Bowater, Inc. ..............................................................21,180
710 Kimberly Clark Corporation..................................................40,736
-------
61,916
------
Real Estate - 0.49%
1,300 Equity Residential Properties Trust.........................................59,800
-------
Consumer Cyclical - 0.48%
3,900 Delphi Automotive Systems Corporation.......................................56,794
62 Visteon Corporation............................................................752
----
57,546
------
Business Services - 0.44%
1,000 Automatic Data Processing, Inc. ............................................53,563
-------
Computer & Business Equipment - 0.35%
86 Hewlett Packard Company.....................................................10,739
130 International Business Machines Corporation.................................14,243
860 Xerox Corporation...........................................................17,845
-------
42,827
------
Chemicals - 0.35%
1,370 Air Products & Chemicals, Inc. .............................................42,213
-------
Software - 0.29%
440 Microsoft Corporation +...................................................35,200
-------
Total Common Stocks (Cost $6,337,296)....................................6,715,188
----------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
PREFERRED STOCKS - 1.74%
<S> <C>
1,000 CMS Energy Corporation.....................................................$28,000
749 CVS Automatic Com Exchange Securities Trust.................................53,039
600 El Paso Energy Capital Trust 1 .............................................38,625
2,000 Lincoln National Corporation ...............................................40,500
700 NiSource, Inc. .............................................................27,694
1,000 Owens Illinois, Inc. .......................................................22,250
-------
Total Preferred Stocks (Cost $238,244).....................................210,108
--------
Principal
Amount
------
CORPORATE BONDS AND NOTES - 24.53%
$44,000 AFLAC, Inc., 6.50%, due 04/15/2009..........................................39,925
9,000 AT&T Capital Corporation, 6.25%, due 05/15/2001..............................8,896
11,228 American Airlines, 6.855%, due 04/15/2009...................................10,962
20,000 American Tower, 5.00%, due 02/15/2010.......................................20,250
34,000 Associates Corporation of North America, 5.50%, due 02/15/2004..............31,570
16,000 Atlantic Mutual Insurance Company, 144A, 8.15%, due 02/15/2028..............12,611
23,962 Bear Stearns Commercial Mortgage Securities, 6.80%, due 09/15/2008 ........23,464
21,000 Beaver Valley II Funding Corporation, 9.00%, due 06/01/2017.................21,415
56,000 BellSouth Capital Funding Corporation, 7.75%, due 02/15/2010................56,002
11,000 Belo AH Corporation, 7.75%, due 06/01/2027...................................9,322
15,000 Building Materials Corporation of America, 8.00%, due 12/01/2008............11,775
13,000 CMS Energy Corporation, 8.00%, due 07/01/2001...............................12,801
9,000 CMS Energy Corporation, 8.375%, due 07/01/2003...............................8,701
100,000 CMS Energy Corporation, 6.75%, due 01/15/2004...............................92,579
38,000 CWMBS, Inc., 8.00%, due 06/25/2030..........................................36,836
10,000 Calenergy, Inc., 7.23%, due 09/15/2005.......................................9,725
200,000 Century Communications Corporation, 0.00%, due 01/15/2008..................81,000
10,000 Chancellor Media Corporation, 8.75%, due 06/15/2007.........................10,013
17,000 Chase Commercial Mortgage Securities Corporation,
6.39%, due 11/18/2008.......................................................15,889
10,000 Chase Commercial Mortgage Securities Corporation,
7.543%, due 07/15/2032......................................................10,000
25,000 Chase Manhattan Corporation, 6.75%, due 12/01/2004..........................24,355
35,000 Cleveland Electric Illuminating Company, 7.67%, due 07/01/2004..............34,487
7,000 Cleveland Electric Illuminating Company, Secured Note, 144A,
7.88%, due 11/01/2017....................................................... 6,587
93,000 Cleveland Electric Illuminating Company, 9.00%, due 07/01/2023..............94,028
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Principal Value
Amount (Note 2)
------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$28,000 Coastal Corporation, 6.20%, due 05/15/2004................................$26,700
29,000 Coastal Corporation, 7.75%, due 06/15/2010.................................28,671
23,000 Comm 2000 Fl2, 1.00%, due 04/17/2011.......................................23,000
27,000 Commonwealth Edison Company, 8.50%, due 07/15/2022.........................26,861
3,000 Connecticut Light & Power Company, 7.875%, due 06/01/2001...................3,010
65,000 Connecticut Light & Power Company, 7.875%, due 10/01/2024..................64,979
29,823 Continental Airlines, 6.648%, due 09/15/2017...............................26,979
4,872 Continental Airlines, 6.545%, due 02/02/2019................................4,387
10,000 Countrywide Funding Corporation, 6.25%, due 04/15/2009..................... 8,724
100,000 Crimi Mae Commercial Mortgage Trust, 144A, 7.00%, due 03/02/2011...........87,170
34,000 Daimler Chrysler N A Holding Corporation, 6.63%, due 09/21/2001............33,698
19,000 Daimler Chrysler N A Holding Corporation, 7.75%, due 05/27/2003............19,154
35,000 Daimler Chrysler N A Holding Corporation, 7.40%, due 01/20/2005............34,723
12,000 John Deere Capital Corporation, 7.00%, due 10/15/2002......................11,921
9,000 Eaton Corporation, 6.95%, due 11/15/2004....................................8,807
10,000 Enron Corporation, 7.875%, due 06/15/2003..................................10,061
11,000 Entergy Mississippi, Inc., 6.20%, due 05/01/2004...........................10,433
38,000 Federated Department Stores, Inc., 8.50%, due 06/15/2003...................38,348
5,000 Federated Department Stores, Inc., 6.30%, due 04/01/2009....................4,394
8,000 Fleet National Bank, 5.75%, due 01/15/2009..................................6,914
23,747 Ford Credit Auto Owner Trust, 6.20%, due 04/15/2002........................23,636
77,000 Ford Motor Credit Company, 6.70%, due 07/16/2004...........................74,602
22,000 Ford Motor Credit Company, 7.75%, due 02/15/2007...........................21,812
8,000 Ford Motor Credit Company, 5.80%, due 01/12/2009............................6,960
25,000 Ford Motor Credit Company, 7.875%, due 06/15/2010..........................24,996
20,000 FrontierVision Operation Partnership, LP, 11.00%, due 10/15/2006...........20,200
7,323 GGIB Funding Corporation, Secured Lease Obligation Bond,
7.43%, due 01/15/2011.......................................................6,963
38,000 GS Escrow Corporation, 6.75%, due 08/01/2001...............................36,916
37,567 GS Mortgage Securities Corporation, 6.06%, due 10/18/2030..................35,922
26,000 General Electric Capital Corporation, 7.50%, due 05/15/2005................26,267
9,000 General Electric Capital Corporation, 8.85%, due 03/01/2007.................9,792
29,000 General Electric Capital Corporation, 8.70%, due 03/01/2007................31,325
7,000 General Electric Capital Corporation, 8.75%, due 05/21/2007.................7,594
12,000 General Electric Capital Corporation, 8.50%, due 07/24/2008................12,960
18,000 General Electric Capital Corporation, 7.375%, due 01/19/2010...............18,217
25,000 General Motors Acceptance Corporation, 6.75%, due 12/10/2002...............24,575
14,000 General Motors Acceptance Corporation, 5.95%, due 03/14/2003...............13,465
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Principal Value
Amount (Note 2)
------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$8,000 General Motors Corporation, 9.40%, due 07/15/2021..........................$9,116
7,000 Georgia Pacific Corporation, 9.95%, due 06/15/2002..........................7,248
110,000 Georgia Pacific Corporation, 9.50%, due 05/15/2022........................114,605
100,000 Goldman Sachs Group, LP, 144A, 5.90%, due 01/15/2003.......................96,241
30,000 Gulf Canada Resources Ltd., 9.25%, due 01/15/2004..........................30,126
5,000 Gulf States Utilities Company, 8.25%, due 04/01/2004........................5,044
58,000 Hearst Argyle Television, Inc., 7.50%, due 11/15/2027......................48,928
7,236 Illinois Power Supply, 5.26%, due 06/25/2003................................7,149
4,000 Metronet Communciations Corporation, 1.00%, due 06/15/2008..................3,244
15,000 MidAmerican Funding, LLC, 144A, 5.85%, due 03/01/2001......................14,838
23,000 MidAmerican Funding, LLC, 144A, 6.927%, due 03/01/2029.....................19,142
41,945 Midland Funding Corporation, Senior Secured Lease Bond,
Series C, 10.33%, due 07/23/2002 ..........................................42,788
8,000 J.P. Morgan Commercial Mortgage Finance Corporation, 144A,
6.613%, due 01/15/2030 .....................................................7,602
22,000 Morgan Stanley Group, Inc., 7.125%, due 01/15/2003.........................21,859
13,000 NRG Energy, 144A, 8.962%, due 03/15/2016...................................13,155
10,000 NRG Energy, 8.70%, due 03/15/2005..........................................10,014
5,000 Nabisco, Inc., 6.375%, due 02/01/2035.......................................4,470
8,000 News America, Inc., 6.703%, due 05/21/2004..................................7,613
2,000 News America, Inc., 6.625%, due 01/09/2008..................................1,834
4,000 News America, Inc., 7.30%, due 04/30/2028...................................3,415
43,098 Niagara Mohawk Power Corporation, 7.25%, due 10/01/2002....................42,587
4,000 Niagara Mohawk Power Corporation, 7.375%, due 08/01/2003....................3,944
39,000 Niagara Mohawk Power Corporation, 7.75%, due 05/15/2006....................38,884
5,000 Niagara Mohawk Power Corporation, 8.50%, due 07/01/2023.....................4,974
20,000 Nortek, Inc., 9.25%, due 03/15/2007........................................18,700
14,543 Northeast Utilities Systems, 8.58%, due 12/01/2006.........................14,622
3,000 Northwest Airlines, Inc., 8.072%, due 10/19/2019............................3,011
12,000 NSTAR., 8.00%, due 02/15/2010..............................................12,058
18,000 Occidental Petroleum Corporation, 6.40%, due 04/01/2003....................17,384
10,000 Outdoor Systems, Inc., 8.875%, due 06/15/2007...............................9,811
14,000 Phillips Petroleum Company, 8.50%, due 05/25/2005..........................14,463
9,000 Providian Capital I, 144A, 9.525%, due 02/01/2027...........................7,062
99,935 RGS Aegco Funding Corporation, 9.81%, due 12/07/2022..................... 111,223
40,000 Residential Accredit Loans, Inc., 6.75%, due 10/25/2028....................37,908
7,000 Residential Funding Mortgage Securities, 7.66%, due 09/25/2012..............6,989
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Principal Value
Amount (Note 2)
------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$60,000 Salton Sea Funding Group Corporation, Senior Secured Bond,
7.84%, due 05/30/2010.....................................................$58,584
23,000 Joseph E. Seagram & Sons, Inc., 5.79%, due 04/15/2001......................22,710
35,000 Joseph E. Seagram & Sons, Inc., 6.40%, due 12/15/2003......................33,500
21,000 Joseph E. Seagram & Sons, Inc., 7.50%, due 12/15/2018......................20,088
7,000 Socgen Real Estate Company, LLC, 144A, 7.64%, due 12/29/2049................6,406
34,000 Sprint Capital Corporation, 6.50%, due 11/15/2001..........................33,563
42,000 Sprint Capital Corporation, 5.875%, due 05/01/2004.........................39,428
27,000 Sprint Capital Corporation, 6.90%, due 05/01/2019..........................24,007
6,000 State Street Corporation, 7.65%, due 06/15/2010.............................5,989
18,000 SunAmerica Institutional, 5.75%, due 02/16/2009............................15,731
59,000 TCI Communications Financing III, Capital Securities,
9.65%, due 03/31/2027......................................................65,183
12,000 TXU Eastern Funding Company, 6.15%, due 05/15/2002.........................11,627
11,000 Telecomunicaciones de Puerto Rico, (Puerto Rico),
6.65%, due 05/15/2006......................................................10,409
13,000 Tennessee Gas Pipeline Company, 7.625%, due 04/01/2037.....................12,136
5,000 Texas Gas Transmission Corporation, 7.25%, due 07/15/2027...................4,673
10,000 Texas Utilities Company, 5.94%, due 10/15/2015..............................9,785
22,000 Time Warner Entertainment Company, LP, 10.15%, due 05/01/2012..............25,248
16,000 Time Warner Entertainment Company, LP, 8.375%, due 07/15/2033..............16,130
10,000 Time Warner, Inc., 6.625%, due 05/15/2029...................................8,254
43,000 Time Warner, Inc., Pass-thru Asset Trust, 144A, 6.10%, due 12/30/2001......42,179
9,000 Union Pacific Corporation, 5.78%, due 10/15/2001............................8,792
15,000 Union Pacific Corporation, 6.34%, due 11/25/2003...........................14,382
10,000 US Timberlands Company, 9.625%, due 11/15/2007..............................8,800
22,000 US West Communications, Inc., 7.625%, due 06/09/2003.......................21,941
7,000 Utilicorp United, Inc., 7.00%, due 07/15/2004...............................6,686
11,065 Waterford 3 Funding Corporation, Secured Lease Collateral Bond,
8.09%, due 01/02/2017......................................................10,507
8,000 Washington Mutual Capital I, Subordinated Capital Income
Securities, 8.375%, due 06/01/2027..........................................7,093
7,000 Williams Gas Pipelines, 144A, 7.375%, due 11/15/2006........................6,868
42,000 Wisconsin Electric Power Company, 6.625%, due 12/01/2002...................41,301
5,000 WorldCom, Inc., 8.875%, due 01/15/2006......................................5,184
------
Total Corporate Bonds and Notes (Cost $3,119,349)...................... 2,967,564
---------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Principal Value
Amount (Note 2)
------ --------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 9.10%
Federal National Mortgage Association (FNMA) - 4.43%
<S> <C>
$30,000 Pool #410201, 5.722%, due 03/01/2009......................................$27,201
84,000 7.25%, due 01/15/2010......................................................84,846
108,000 7.125%, due 06/15/2010....................................................108,422
29,498 Pool #326868, 6.50%, due 10/01/2025........................................27,958
154,448 Pool #444210, 6.50%, due 09/01/2028.......................................145,761
35,884 Pool #446373, 6.50%, due 11/01/2028........................................33,860
36,955 Pool #508538, 7.00%, due 08/01/2029........................................35,673
75,266 Pool #527823, 7.00%, due 02/01/2030........................................72,655
-------
Total FNMA................................................................536,376
--------
Government National Mortgage Association (GNMA) - 4.30%
67,115 Pool #780214, 8.00%, due 12/15/2022........................................68,059
4,407 REMIC, 8.00%, due 06/20/2025................................................4,472
49,349 Pool #377615, 7.50%, due 09/15/2025........................................49,071
34,618 Pool #410122, 7.50%, due 10/15/2025........................................34,450
25,683 Pool #247754, 7.50%, due 11/15/2026........................................25,515
23,823 Pool #780546, 7.50%, due 04/15/2027........................................23,667
19,977 Pool #453937, 7.50%, due 08/15/2027........................................19,846
19,083 Pool #455301, 7.50%, due 09/15/2027........................................18,958
48,895 Pool #433627, 7.00%, due 02/15/2028........................................47,534
19,852 Pool #469399, 7.00%, due 03/15/2028........................................19,300
34,714 Pool #467737, 7.00%, due 04/15/2028........................................33,770
30,765 Pool #480352, 7.00%, due 07/15/2028........................................29,910
93,953 Pool #525494, 8.00%, due 12/15/2029........................................94,950
49,855 Pool #500212, 8.00%, due 02/15/2030........................................50,385
-------
Total GNMA................................................................519,887
--------
Federal Home Loan Mortgage (FHLM) - 0.37%
47,733 Pool #C18106, 6.50%, due 11/01/2028........................................45,108
-------
Total U.S. Government Agency Obligations (Cost $1,119,557)..............1,101,371
----------
TREASURY OBLIGATIONS - 8.19%
U.S. Treasury Notes - 6.65%
500,000 6.75%, due 05/15/2005.....................................................511,640
150,000 4.25%, due 01/15/2010.....................................................152,155
136,000 6.50%, due 02/15/2010.....................................................140,654
--------
804,449
-------
U.S. Treasury Bonds - 1.54%
184,000 6.125%, due 08/15/2029....................................................185,840
--------
Total Treasury Obligations (Cost $976,052)................................990,289
--------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Principal Value
Amount (Note 2)
------ --------
CONVERTIBLE BONDS - 0.81%
<S> <C>
$95,000 Loews Corporation, 3.125%, due 09/15/2007.................................$81,715
31,000 Xerox Corporation, 0%, due 04/21/2018......................................16,236
-------
Total Convertible Bonds (Cost $98,206).....................................97,951
-------
EUROBONDS - 0.03%
8,000 Deutsche Finance NV, (Netherlands), 144A,
0.00%, due 02/12/2017 (Cost $4,128).........................................3,700
------
TOTAL INVESTMENTS (COST $11,892,832*).......................99.92% $12,086,171
OTHER ASSETS AND LIABILITIES (NET)...........................0.08 9,111
----- -----
NET ASSETS.................................................100.00% $12,095,282
======= ===========
* 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 $316,499 or 2.62% of net assets.
-----------------------------------------------------------------
GLOSSARY OF TERMS
ADR American Depository Receipt
REMIC Real Estate Mortgage Investment Conduit
------------------------------------------------------------------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - 93.00%
Electronics - 19.26%
<S> <C>
1,500 Aeroflex, Inc. +..........................................................$74,531
1,000 Altera Corporation +......................................................101,937
600 Applied Materials, Inc. +..................................................54,375
2,300 Applied Micro Circuits Corporation +.....................................227,125
1,000 Celestica, Inc. +..........................................................49,625
2,000 Comverse Technology, Inc. +............................................186,000
1,500 E-Tek Dynamics, Inc. +..................................................395,719
600 Flextronics International Ltd. +..........................................41,212
2,000 Integrated Device Technology, Inc. +.....................................119,750
2,500 Integrated Silicon Solution +.............................................85,000
4,000 JDS Uniphase Corporation +...............................................479,500
1,000 Micron Technology, Inc. +.................................................88,062
1,200 National Semiconductor Corporation +......................................68,100
2,100 PE Corporation............................................................138,338
1,700 PMC Sierra, Inc. +......................................................302,069
2,000 SDL, Inc. +.............................................................570,375
700 Vitesse Semiconductor Corporation +......................................51,494
2,000 Xilinx, Inc. +..........................................................165,125
--------
3,198,337
---------
Drugs & Health Care - 16.37%
1,600 Allergan, Inc. ...........................................................119,200
3,000 ALZA Corporation +......................................................177,375
2,000 Amgen, Inc. +...........................................................140,500
2,500 Cardinal Health, Inc. ....................................................185,000
1,000 Celgene Corporation +.....................................................58,875
1,500 Forest Laboratories, Inc. +..............................................151,500
500 Genentech, Inc. +........................................................86,000
1,200 Human Genome Sciences, Inc. +...........................................160,050
500 Immunex Corporation +....................................................24,719
1,300 IVAX Corporation +.......................................................53,950
1,200 MedImmune, Inc. +........................................................88,800
1,200 Medtronic, Inc. ...........................................................59,775
1,500 Millennium Pharmaceuticals, Inc. +......................................167,813
11,425 Pfizer, Inc. ............................................................548,400
1,100 Sepracor, Inc. +.......................................................132,688
3,200 Stryker Corporation.......................................................140,000
1,500 Teva Pharmaceuticals Industries, Ltd. +..................................83,156
1,500 Titan Pharmaceuticals, Inc. +...........................................64,500
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Drugs and Health Care - (Continued)
<S> <C>
1,700 UnitedHealth Group, Inc. +............................................$145,775
2,400 Watson Pharmaceuticals, Inc. +.........................................129,000
--------
2,717,076
---------
Communications - 15.46%
3,000 ADC Telecommunications, Inc. +.........................................251,625
2,000 Andrew Corporation +....................................................67,125
1,000 Copper Mountain Networks, Inc. +........................................88,125
1,300 Corning, Inc. ............................................................350,838
2,800 Digital Microwave Corporation +........................................106,750
800 Exodus Communications, Inc. +...........................................36,850
5,700 Juniper Networks, Inc. +...............................................829,706
3,500 Nokia Corporation ........................................................174,781
1,600 Nortel Networks Corporation ..............................................109,200
1,500 Redback Networks, Inc. +...............................................267,000
900 Scientific-Atlanta, Inc. ..................................................67,050
2,500 Sprint PCS Group Corporation +.........................................148,750
600 Voicestream Wireless Corporation +.......................................69,778
-------
2,567,578
---------
Software - 9.65%
2,500 Broadvision, Inc. +......................................................127,031
800 Check Point Software Technologies Ltd. +.................................169,400
600 Macromedia, Inc. +.......................................................58,013
3,400 Oracle Corporation +....................................................285,813
1,000 Portal Software, Inc. +..................................................63,875
1,400 Siebel Systems, Inc. +..................................................228,987
1,100 Verisign, Inc. +.......................................................194,150
3,200 Veritas Software Corporation +.........................................361,650
700 Vignette Corporation +..................................................36,411
2,000 WebTrends Corporation +.................................................77,375
-------
1,602,705
---------
Consumer Discretionary - 7.86%
900 Best Buy Company, Inc. +...................................................56,925
1,000 CDW Computer Centers, Inc. +...............................................62,500
2,550 Dollar Tree Stores, Inc. +................................................100,884
3,500 Home Depot, Inc. .........................................................174,781
11,000 Kohl's Corporation +......................................................611,875
2,000 The Pepsi Bottling Group, Inc. ............................................58,375
3,900 Starwood Hotels & Resort Worldwide, Inc. .................................126,994
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Consumer Discretionary - (Continued)
<S> <C>
3,500 Walgreen Company.........................................................$112,656
--------
1,304,990
Energy - 7.66%
3,000 Anadarko Petroleum Corporation ...........................................147,938
2,500 Apache Corporation .......................................................147,031
1,800 BJ Services Company +...................................................112,500
1,000 Devon Energy Corporation...................................................56,187
1,200 Dynegy, Inc. ..............................................................81,975
2,400 Enron Corporation.........................................................154,800
4,300 Ensco International, Inc..................................................153,994
9,700 Key Energy Services, Inc. +.............................................93,363
1,800 Nabors Industries, Inc. +...............................................74,812
1,800 Noble Affiliates, Inc. ....................................................63,325
1,000 Noble Drilling Corporation +............................................41,188
3,700 R & B Falcon Corporation +...............................................87,181
800 Smith International, Inc. +..............................................58,250
-------
1,272,544
---------
Computers & Business Equipment - 6.37%
400 Brocade Communications Systems, Inc. +.....................................73,394
12,000 Cisco Systems, Inc. +.....................................................762,750
3,000 Fiserv, Inc. +............................................................129,750
1,500 Sun Microsystems, Inc. +..................................................90,937
-------
1,056,831
---------
Financial Services - 4.95%
4,000 Citigroup, Inc. ..........................................................241,000
2,100 Concord EFS, Inc. +.......................................................54,600
1,000 Federated Investors, Inc. .................................................35,062
1,100 Golden West Financial Corporation..........................................44,894
1,100 Legg Mason, Inc. ..........................................................55,000
1,500 Morgan Stanley Dean Witter & Company......................................124,875
2,000 Northern Trust Corporation................................................130,125
1,100 Paine Webber Group, Inc. ..................................................50,050
500 State Street Corporation...................................................53,031
1,000 Waddell & Reed Financial, Inc. ............................................32,813
-------
821,450
-------
Business Services - 2.51%
2,000 Apollo Group, Inc. ........................................................56,000
4,500 Paychex, Inc. ............................................................189,000
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Business Services - (Continued)
<S> <C>
6,000 Robert Half International, Inc. .........................................$171,000
--------
416,000
-------
Utilities - 1.17%
3,200 Coastal Corporation.......................................................194,800
--------
Broadcasting & Publishing - 0.94%
1,500 Univision Communications, Inc. +..........................................155,250
--------
Transportation - 0.80%
3,700 Tidewater, Inc. ..........................................................133,200
--------
Total Common Stocks (Cost $11,891,640).................................15,440,761
-----------
Principal
Amount
------
SHORT-TERM OBLIGATION - 6.34%%
Repurchase Agreement - 6.34%
$1,052,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/00 at
5.25%, due 07/03/00, maturity value $1,052,460
(collateralized by U.S. Treasury Note, 5.625%, due 09/30/01,
par value $1,075,000; market value $1,078,277)
(Cost $1,052,000) .....................................................1,052,000
----------
TOTAL INVESTMENTS (COST $12,943,640*)..........................99.34% $16,492,761
OTHER ASSETS AND LIABILITIES (NET)..............................0.66 110,012
----- -------
NET ASSETS....................................................100.00% $16,602,773
======= ===========
* 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
RS Diversified Growth Portfolio
Schedule of Investments
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - 98.65%
Communications - 19.61%
<S> <C>
5,850 CapRock Communications Corporation +....................................$114,075
7,200 Comtech Telecommunications Corporation +................................118,800
2,600 Digital Island, Inc. +..................................................126,425
500 Digital Lightwave, Inc. +................................................50,250
40,000 e.spire Communications, Inc. +..........................................270,000
5,000 Finisar Corporation +...................................................130,938
22,400 Latitude Communications, Inc. +.........................................250,600
40,300 Motient Corporation +...................................................632,206
17,300 Primus Telecommunications Group, Inc. +.................................430,338
11,300 SpectraLink Corporation +...............................................165,263
17,700 Startec Global Communications Corporation +...........................189,169
20,000 Weblink Wireless, Inc. +...............................................265,000
8,000 WorldQuest Networks, Inc. +.............................................57,000
-------
2,800,064
---------
Energy - 15.53%
3,100 Barrett Resources Corporation +........................................94,356
60,000 Bonus Resource Services Corporation +.................................147,973
3,000 Devon Energy Corporation.................................................168,563
10,000 Global Industries, Inc. +.............................................188,750
6,000 Global Marine, Inc. +..................................................169,125
6,000 National-Oilwell, Inc. +...............................................197,250
5,500 Precision Drilling Corporation +........................................212,438
5,500 R&B Falcon Corporation +................................................141,375
5,000 Talisman Energy, Inc. +.................................................165,625
12,500 Unit Corporation +......................................................168,750
2,300 Universal Compression Holdings, Inc. +...................................77,050
10,400 Valero Energy Corporation................................................330,200
6,000 Veritas DGC, Inc. +.....................................................156,000
--------
2,217,455
---------
Software - 10.70%
50,000 AVT Corporation +......................................................122,500
5,000 Caminus Corporation +..................................................368,750
7,000 Exchange Applications, Inc. +..........................................186,375
5,600 FirePond, Inc. +.......................................................201,600
17,500 Informix Corporation +.................................................130,156
1,100 Interwoven, Inc. +......................................................120,983
5,100 Peregrine Systems, Inc. +...............................................176,906
1,700 Precise Software Solutions Ltd. +......................................40,800
1,300 Retek, Inc. +..........................................................41,600
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
RS Diversified Growth Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS (Continued)
Software - (Continued)
<S> <C>
2,500 WatchGuard Technologies, Inc. +......................................$137,344
--------
1,527,014
---------
Drugs & Health Care - 9.67%
6 Bergen Brunswig Corporation ..................................................33
2,000 Charles River Laboratories, Inc. +.....................................44,375
10,000 Community Health Systems, Inc. +......................................161,875
6,000 Cytyc Corporation +...................................................320,250
25,000 Novavax, Inc. +.......................................................182,813
16,200 Omnicare, Inc. ..........................................................146,812
9,600 Oxford Health Plans, Inc. +...........................................228,600
7,500 Sunrise Assisted Living, Inc. +.......................................138,750
5,800 Tenet Healthcare Corporation +........................................156,600
--------
1,380,108
---------
Financial Services - 8.31%
2,400 AMBAC Financial Group, Inc. .............................................131,550
67,946 Billserv.com, Inc. +...................................................624,254
7,000 Golden State Bancorp, Inc. +...........................................126,000
5,000 Washington Mutual, Inc. .................................................144,375
3,500 Zions Bancorporation.....................................................160,617
--------
1,186,796
---------
Electronics - 7.08%
1,700 Amphenol Corporation +.................................................112,519
400 CyberOptics Corporation +................................................18,500
2,700 Electro Scientific Industries, Inc. +...................................118,884
1,500 Jabil Circuit, Inc. +....................................................74,437
600 Manufacturers Services Ltd. +...........................................12,338
50 Marvell Technology Group Ltd. +..........................................2,850
16,200 Metretek Technologies, Inc. +..........................................109,350
25,700 Oak Technology, Inc. +.................................................554,156
300 Stratos Lightwave, Inc. +................................................8,362
------
1,011,396
---------
Business Services - 6.54%
6,000 Acxiom Corporation +....................................................163,500
7,500 C-bridge Internet Solutions, Inc. +....................................130,312
12,000 iXL Enterprises, Inc. +................................................174,000
15,000 Pilot Network Services, Inc. +.........................................223,125
24,900 SITEL Corporation +....................................................122,944
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
RS Diversified Growth Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS (Continued)
Business Services - (Continued)
<S> <C>
16,400 Stamps.com, Inc. +..................................................$ 119,925
---------
933,806
-------
Consumer Discretionary - 5.90%
37,600 Cyberian Outpost, Inc. +...............................................180,950
30,000 Interactive Network, Inc. +.............................................54,375
3,000 Michaels Stores, Inc. +................................................137,438
4,200 Pacific Sunwear of California, Inc. +...................................78,750
33,700 Shop At Home, Inc. +...................................................157,442
34,200 SkyMall, Inc. +.........................................................81,225
18,800 Steakhouse Partners, Inc. +.............................................56,400
4,000 Valuevision International, Inc. +........................................96,000
-------
842,580
-------
Transportation - 3.43%
2,300 Landstar System, Inc. +.................................................136,994
44,000 United Shipping & Technology, Inc. +...................................352,000
--------
488,994
-------
Capital Goods - 3.34%
9,200 Fleetwood Enterprises, Inc. .............................................131,100
44,000 Republic Services, Inc. +..............................................172,800
3,000 Southdown, Inc. .........................................................173,250
--------
477,150
-------
Computers & Business Equipment - 3.26%
21,100 Auspex Systems, Inc. +.................................................104,181
2,100 Cobalt Networks, Inc. +................................................121,537
6,700 Diebold, Inc. ...........................................................186,763
5,000 Maxtor Corporation +....................................................52,812
-------
465,293
-------
Utilities - 2.28%
3,900 El Paso Energy Corporation...............................................198,656
5,800 Energen Corporation......................................................126,512
--------
325,168
-------
Broadcasting & Publishing - 1.70%
10,000 LodgeNet Entertainment Corporation +...................................242,500
--------
Consumer Services - 0.71 %
5,900 United Rentals, Inc. ....................................................101,037
--------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
RS Diversified Growth Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS (Continued)
Real Estate - 0.59 %
<S> <C>
2,900 homestore.com, Inc. +.................................................$ 84,644
--------
Total Common Stocks (Cost $13,072,040)................................14,084,005
-----------
Principal
Amount
------
SHORT-TERM OBLIGATION - 1.80%
Repurchase Agreement - 1.80%
$257,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/00 at
5.25%, due 07/03/00, maturity value $257,112
(collateralized by U.S. Treasury Note, 5.625%, due
09/30/01, par value $265,000; market value $265,808)
(Cost $257,000) ........................................................257,000
-------- --------
TOTAL INVESTMENTS (COST $13,329,040*)......................100.45% $14,341,005
OTHER ASSETS AND LIABILITIES (NET)..........................(0.45) (64,569)
----- -------
NET ASSETS ...........................................100.00% $14,276,436
======= ===========
* 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
Lexington Corporate Leaders Portfolio
Schedule of Investments
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - 98.61%
Energy - 18.08%
<S> <C>
3,375 Chevron Corporation....................................................$286,242
3,375 Exxon Mobil Corporation.................................................264,938
3,375 Royal Dutch Petroleum Company, NY Shares................................207,773
3,375 Schlumberger, Ltd. ....................................................251,859
3,375 Texaco, Inc. ..........................................................179,719
3,375 Transocean Sedco Forex, Inc. .........................................180,352
3,375 Union Pacific Corporation...............................................125,508
--------
1,496,391
---------
Consumer Discretionary - 14.40%
3,375 Coca Cola Company.......................................................193,852
3,375 Eastman Kodak Company...................................................200,813
3,375 Fortune Brands, Inc. ...................................................77,836
3,375 McDonalds Corporation...................................................111,164
3,375 Philip Morris Companies, Inc. ...........................................89,648
3,375 Procter & Gamble Company................................................193,219
3,375 Wal-Mart Stores, Inc. .................................................194,484
3,375 Walt Disney Company.....................................................130,992
--------
1,192,008
---------
Financial Services - 13.32%
10,125 American Express Company................................................527,766
3,375 Citigroup, Inc. .......................................................203,344
3,375 J.P. Morgan & Company, Inc. ............................................371,672
--------
1,102,782
---------
Electronics - 8.49%
1,287 Agilent Technologies, Inc. +..........................................94,933
3,375 Honeywell International, Inc. .........................................113,695
3,375 Lucent Technologies, Inc. .............................................199,969
10,125 Motorola, Inc. .........................................................294,258
--------
702,855
-------
Producer Durables - 7.86%
3,375 Caterpillar, Inc. .....................................................114,328
10,125 General Electric Company................................................536,625
--------
650,953
-------
Materials & Processing - 7.53%
6,750 Alcoa, Inc. ...........................................................195,750
3,375 Bethlehem Steel Corporation +............................................12,023
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Materials & Processing - (Continued)
<S> <C>
3,375 DuPont (E.I.) DeNemours & Company......................................$147,656
3,375 International Paper Company.............................................100,617
3,375 Union Carbide Corporation...............................................167,063
--------
623,109
-------
Drugs & Health Care - 7.28%
3,375 Johnson & Johnson.......................................................343,828
3,375 Merck & Company, Inc. .................................................258,609
--------
602,437
-------
Utilities - 7.09%
3,375 Ameren Corporation......................................................113,906
3,375 Consolidated Edison Company of New York..................................99,984
3,375 Duke Energy Company.....................................................190,266
3,375 PG&E Corporation.........................................................83,109
3,375 Reliant Energy, Inc. ...................................................99,773
-------
587,038
-------
Computers & Business Equipment - 5.09%
3,375 Hewlett Packard Company.................................................421,453
--------
Autos & Transportation - 5.01%
3,375 Burlington Northern Santa Fe Corporation.................................77,414
3,375 General Motors Corporation..............................................195,961
3,375 Goodyear Tire and Rubber Company.........................................67,500
3,375 Union Pacific Resources Group, Inc. .....................................74,250
-------
415,125
-------
Aerospace - 1.71%
3,375 Boeing Company..........................................................141,117
--------
Communications - 1.29%
3,375 AT&T Corporation........................................................106,734
--------
Consumer Staples - 0.87%
3,375 Gallaher Group PLC, ADR..................................................72,352
-------
Consumer Cyclical - 0.59%
3,375 Delphi Automotive Systems Corporation....................................49,149
-------
Total Common Stocks (Cost $7,500,684).................................8,163,503
----------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Principal Value
Amount (Note 2)
------ --------
SHORT-TERM OBLIGATIONS - 1.75 %
Repurchase Agreement - 1.74%
<S> <C>
$144,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 06/30/00 at
5.25%, due 07/03/00, maturity value $144,063
(collateralized by U.S. Treasury Note, 5.625%, due
09/30/01, par value $150,000; market value $150,457)
(Cost $144,000)........................................................$144,000
--------
Shares
------
Investment Company - 0.01%
850 Seven Seas Money Market Fund (Cost $850)....................................850
----
Total Short-Term Obligations (Cost $144,850)............................144,850
--------
TOTAL INVESTMENTS (COST $7,645,534*).......................100.36% $8,308,353
OTHER ASSETS AND LIABILITIES (NET)..........................(0.36) (30,215)
----- -------
NET ASSETS.................................................100.00% $8,278,138
======= ==========
* 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
SAI Global Leaders Portfolio
Schedule of Investments
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - 104.14%
Financial Services - 21.58%
<S> <C>
3,500 ABN-AMRO Holding N.V., ADR ...........................................$85,969
2,000 AEGON, ADR...............................................................71,250
1,500 American Express Company.................................................78,187
1,700 Bank Of New York, Inc. ..................................................79,050
1,200 Citigroup, Inc. ........................................................72,300
700 Merrill Lynch & Company, Inc. ...........................................80,500
-------
467,256
-------
Consumer Discretionary - 15.14%
4,500 Carnival Corporation.....................................................87,750
2,400 Costco Wholesale Corporation +..........................................79,200
1,400 Procter & Gamble Company.................................................80,150
1,400 Wal-Mart Stores, Inc. ...................................................80,675
-------
327,775
-------
Electronics - 14.00%
600 Intel Corporation........................................................80,213
1,500 Nokia Corporation, ADR ................................................74,906
1,100 PE Corporation...........................................................72,463
500 Siemens AG, ADR..........................................................75,489
-------
303,071
-------
Drugs & Health Care - 13.47%
1,500 Bristol Myers Squibb Company.............................................87,375
1,100 Merck & Company, Inc. ..................................................84,287
2,500 Pfizer, Inc. ..........................................................120,000
--------
291,662
-------
Software - 8.54%
1,425 Computer Associates International, Inc. ................................72,942
1,400 Microsoft Corporation +...............................................112,000
--------
184,942
-------
Communications - 5.73%
600 Sprint Corporation.......................................................30,600
1,700 Vodafone Airtouch PLC, ADR .............................................70,444
500 WorldCom, Inc. +.......................................................22,937
-------
123,981
-------
Investment Company - 4.14%
3,700 Webs Germany Index Fund, Inc. +.........................................89,725
-------
Consumer Non-Cyclical - 3.88%
1,700 Lauder Estee Companies, Inc. ............................................84,044
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
SAI Global Leaders Portfolio
Schedule of Investments (Continued)
June 30, 2000 (Unaudited)
Value
Shares (Note 2)
------ --------
COMMON STOCKS - (Continued)
Utilities - 3.77%
<S> <C>
4,600 Vivendi, ADR ...........................................................$81,532
-------
Computer & Business Equipment - 3.64%
1,600 Dell Computer Corporation +............................................78,900
-------
Broadcasting & Publishing - 3.51%
1,000 Time Warner, Inc. ......................................................76,000
-------
Consumer Cyclical - 3.48%
800 Sony Corporation.........................................................75,450
-------
Energy - 3.26%
900 Exxon Mobil Corporation..................................................70,650
-------
TOTAL COMMON STOCKS (Cost $2,169,976*).....................104.14% 2,254,988
OTHER ASSETS AND LIABILITIES (NET)..........................(4.14) (89,702)
----- -------
NET ASSETS.................................................100.00% $2,165,286
======= ==========
* 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, 2000 (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 six
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 Harris Associates Value, MFS Total Return,
Strong Growth, RS Diversified Growth, Lexington Corporate Leaders, and SAI
Global Leaders Portfolios (the "Portfolios").
Prior to January 1, 2000, the RS Diversified Growth was known as the Robert
Stephens Diversifed Growth 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 January 1, 2000, Robertson Stephens &
Company Investment Management, L.P. served as sub-advisor to the RS Diversified
Growth Portfolio. Prior to May 1, 1997, Miller, Anderson & Sherrerd, LLP served
as sub-advisor to the Harris Associates Value Portfolio and Berkeley Capital
Management served as sub-advisor to the Robertson Stephens Diversified Growth
Portfolio.
Effective August 1, 2000, Select Advisors, Inc. changed its name to London
Pacific Advisors ("LPA"). In connection with this change, the SAI Global Leaders
Portfolio changed its name to LPA Global Leaders Portfolio. Effective August 3,
2000, LPA replaced Lexington Management Corporation as sub-advisor to the
Lexington Corporate Leaders Portfolio. In connection with this change in
sub-advisors, the Portfolio changed its name to LPA Core Equity Portfolio.
2. Significant Accounting Policies
The following is a summary of significant accounting policies which are in
conformity with generally accepted accounting principles consistently followed
by the Trust in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reported period. Actual
results could differ from those estimates.
Security Valuation: Securities which are traded on a recognized exchange
(including securities traded through the National Market System) are valued at
the last sale price on the securities exchange on which such securities are
primarily traded, or, if there were no sales during the day, at the closing bid
price. Portfolio securities that are primarily traded on foreign exchanges are
generally valued at the most recent closing values of such securities on their
respective exchanges, except when an occurrence subsequent to the time a value
was so established is likely to have changed the value, then the fair value of
those securities will be determined by the Board of Trustees or its delegates.
Over-the-counter securities that are not traded through the National Market
System are valued on the basis of the bid price at the close of business on each
day. Short-term investments that mature in 60 days or less are valued at
amortized cost 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
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
2. Significant Accounting Policies (continued):
Repurchase Aggreements (continued) counterparty default, the Portfolio has the
right to use the collateral to offset losses incurred. There is potential loss
to the Portfolio in the event the Portfolio is delayed or prevented from
exercising its rights to dispose of the collateral securities, including the
risk of a possible decline in the value of the underlying securities during the
period while the Portfolio seeks to assert its rights.
Each Portfolio may enter into Repurchase Agreements only with banks or dealers
which, in the opinion of each Portfolio's Sub-advisor, based on guidelines
established by the Trust's Board of Trustees, are deemed creditworthy.
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.
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 are not separately disclosed.
Forward Foreign Currency Contracts: All Portfolios may enter into forward
foreign currency contracts, whereby the Portfolios agree to buy and sell a
specific currency at a specific price at a future date in an attempt to hedge
against fluctuations in the value of the underlying currency of certain
investment instruments. Forward foreign currency contracts are valued at the
daily exchange rate of the underlying currency. Gains or losses on the purchase
or sale of forward foreign currency contracts having the same settlement date
and broker are recognized on the date of offset, otherwise gains or losses are
recognized on the settlement date.
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.
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.
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
2. Significant Accounting Policies (continued)
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. 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:
<TABLE>
<CAPTION>
Fees on Fees on
Average Average Net Fees on
Net Assets Assets Between Average Net
up to $25 $25 Million and Exceeding
Name of Portfolio Million $100 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%
==== === ===
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
<TABLE>
<CAPTION>
Fees on Fees on Fees on
Average Average Net Average Net
Net Assets Assets Between Assets
up to $200 $200 Million Exceeding $1.3
Name of Portfolio Million and $1.3 Billion Billion
----------------- ------- ---------------- -------
MFS Total Return Portfolio
<S> <C> <C> <C>
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
--- --- ---
Total Fees Paid to LPIMC* .75% .70% .65%
=== === ===
Fees on
Average Net Fees on
Fees on Assets Between Average Net
Average Net $150 Million Assets
Assets up to and Exceeding
Name of Portfolio $150 Million $500 Million $500 Million
----------------- ------------ ------------ ------------
Strong Growth Portfolio
LPIMC .25% .25% .25%
Sub-advisor .50% .45% .40%
--- --- ---
Total Fees Paid to LPIMC* .75% .70% .65%
=== === ===
Fees on
Fees on Average Net Fees on Average Fees on
Average Net Assets Between Net Assets Average Net
Assets up $10 Million Between Assets
to $10 and $35 Million and Exceeding
Name of Portfolio Million $35 Million $200 Million $200 Million
----------------- ------- ----------- ------------ ------------
RS Diversified
Growth Portfolio
LPIMC .25% .25% .25% .25%
Sub-advisor .70% .65% .60% .55%
--- --- --- ---
Total Fees Paid to LPIMC* .95% .90% .85% .80%
=== === === ===
Fees on Average Fees on
Fees on Net Assets Between Average Net
Average Net $10 Million Assets
Assets up to and Exceeding
Name of Portfolio $10 Million $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%
=== === ===
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
<TABLE>
<CAPTION>
Fees on Fees on
Fees on Average Net Average Net
Average Assets Between Assets
Net Assets $25 Million and Exceeding $100
Name of Portfolio up to $25 Million $100 Million Million
----------------- ----------------- ------------ -------
SAI Global Leaders Portfolio
<S> <C> <C> <C>
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 all fees
payable to them until total assets reach $5 million. Any fee waivers 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%; RS
Diversified Growth Portfolio - 1.39%; Lexington Corporate Leaders Portfolio -
1.29%; and SAI Global Leaders - 1.29%), London Pacific has agreed, through
December 31, 2000, to reimburse each Portfolio for expenses in excess of the
stated expense limitations. The expense limitations may be removed or revised
after December 31, 2000, without prior notice to existing shareholders.
For the six months ended June 30, 2000, London Pacific voluntarily agreed to
reimburse the Portfolios as follows:
Name of Portfolio Reimbursement
----------------- -------------
Harris Associates Value Portfolio $22,230
MFS Total Return Portfolio 20,722
Strong Growth Portfolio 10,815
RS Diversified Growth Portfolio 10,774
Lexington Corporate Leaders Portfolio 6,144
SAI Global Leaders Portfolio 21,349
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.
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
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, 2000, were
as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
Portfolio Other Government Other Government
--------- ----- ---------- ----- ----------
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $3,803,279 $0 $2,793,011 $0
MFS Total Return Portfolio 3,164,284 2,800,014 3,876,447 2,472,291
Strong Growth Portfolio 29,365,700 0 29,928,738 0
RS Diversified Growth Portfolio 27,540,916 0 28,463,025 0
Lexington Corporate Leaders Portfolio 586,387 0 940,194 0
SAI Global Leaders Portfolio 1,404,090 0 521,489 0
</TABLE>
At June 30, 2000, 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>
Net Unrealized
Unrealized Unrealized Appreciation
Portfolio Appreciation Depreciation (Depreciation) Cost
--------- ------------ ------------ -------------- ----
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $284,403 $985,228 ($700,825) $7,310,414
MFS Total Return Portfolio 842,592 649,253 193,339 11,892,832
Strong Growth Portfolio 3,704,503 155,382 3,549,121 12,943,640
RS Diversified Growth Portfolio 2,857,850 1,845,885 1,011,965 13,329,040
Lexington Corporate Leaders Portfolio 1,501,165 838,346 662,819 7,645,534
SAI Global Leaders Portfolio 224,867 139,855 85,012 2,169,976
</TABLE>
5. Shares of Beneficial Interest
The Trust's Declaration of Trust authorizes the Trustees to issue an unlimited
number of shares of beneficial interest for the Portfolios, each with a $.01 par
value.
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, 2000 (Unaudited) Year ended December 31, 1999
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 161,390 $ 2,084,523 63,421 $ 907,367
Reinvestment of dividends 0 0 23,940 339,372
Redeemed (121,759) (1,551,246) (133,513) (1,936,658)
-------- ---------- -------- ----------
Net increase (decrease) 39,631 $ 533,277 (46,152) $ (689,919)
====== ========= ======= ==========
MFS Total Return Portfolio
--------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 68,584 $ 942,265 190,617 $ 2,725,942
Reinvestment of dividends 0 0 54,552 757,089
Redeemed (165,282) (2,225,295) (119,339) (1,690,115)
-------- ---------- -------- ----------
Net increase (decrease) (96,698) ($1,283,030) 125,830 $ 1,792,916
======= =========== ======= ===========
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
5. Shares of Beneficial Interest (continued)
<TABLE>
<CAPTION>
Strong Growth Portfolio
-----------------------
Six Months Ended June 30, 2000 (Unaudited) Year ended December 31, 1999
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 107,181 $ 3,303,195 217,250 $ 4,211,902
Reinvestment of dividends 0 0 64,061 1,651,631
Redeemed (77,859) (2,179,774) (158,464) (3,271,087)
------- ---------- -------- ----------
Net increase 29,322 $ 1,123,421 122,847 $ 2,592,446
====== =========== ======= ===========
RS Diversified Growth Portfolio
-------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 132,265 $ 3,316,733 164,526 $ 2,744,479
Reinvestment of dividends 0 0 128,641 2,740,723
Redeemed (152,059) (3,968,031) (161,930) (2,722,879)
-------- ---------- -------- ----------
Net increase (decrease) (19,794) ($651,298) 131,237 $ 2,762,323
======= ========= ======= ===========
Lexington Corporate Leaders Portfolio
-------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 71,907 $ 1,207,201 316,043 $ 4,506,043
Reinvestment of dividends 0 0 1,096 14,110
Redeemed (85,036) (1,429,736) (29,244) (423,355)
------- ---------- ------- --------
Net increase (decrease) (13,129) ($222,535) 287,895 $ 4,096,798
======= ========= ======= ===========
SAI Global Leaders Portfolio
----------------------------
Period from May 11, 1999 -
December 31, 1999
Shares Amount Shares Amount
------ ------ ------ ------
Sold 90,860 $ 1,018,249 131,596 $ 1,380,335
Redeemed (21,495) (234,620) (1,083) (11,453)
------- -------- ------ -------
Net increase 69,365 $783,629 130,513 $1,368,882
====== ======== ======= ==========
</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, 2000 , SAI Global Leaders had a loss carryforward amount of $5,652,
which expires on December 31, 2007.
