LONDON PACIFIC LIFE & ANNUITY COMPANY
LPT VARIABLE INSURANCE SERIES TRUST
REGENCY SERIES
FLEXIBLE CONTRIBUTION DEFERRED VARIABLE ANNUITY
ANNUAL REPORT
For the Year Ended December 31, 1999
This Annual Report has been prepared to provide information to the owners of
London Pacific Life & Annuity Company's Regency Series Variable Annuity. If it
is used for any other purpose, it must be accompanied or preceded by a current
Regency Series prospectus, which discloses any charges and other important
information about LPLA Separate Account One, together with the current
prospectus for the LPT Variable Insurance Series Trust.
CONTENTS
Message from the President............................................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.....................................31-38
Report of Independent Accountants....................................39
MESSAGE FROM THE PRESIDENT
Dear Contract Owner:
We are pleased to provide you with the Annual Report for the LPT Variable
Insurance Series Trust for the year ending December 31, 1999.
Investment performance has been strong for the majority of the portfolios:
Robertson Stephens Diversified Growth Portfolio was up 137.04% as compared to
the S&P 500 Index, which was up 21.04% and the Russell 2000 Small Company Index
which was up 21.26%, Strong Growth Portfolio was up 81.45% compared to the S&P
500 Index, which rose 21.04% and the Russell 2000 Small Company Index, which was
up 21.26%, Lexington Corporate Leaders Portfolio was up 20.05% compared to the
Lipper Large-Cap Value, which was up 10.78% and the S&P 500 Index which rose
21.04%, MFS Total Return Portfolio was up 2.92% as compared to the Lehman
Brothers Aggregate Bond Index, which was down 0.82% and the Lipper Balanced Fund
Index which was up 8.98%, Harris Associates Value Portfolio was up 4.65%
compared to the Lipper Multi-Cap Value Index, which was up 5.94% and the S&P 500
Index which was up 21.04%, SAI Global Leaders Portfolio's return during the
period May 11, 1999 through December 31, 1999 was up 17.00% compared to the S&P
500 Index, which rose 9.26% during the same period.
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 year ended December 31, 1999:
Harris Associates Value
Portfolio 4.65%*
S&P 500 Index 21.04%
Lipper Multi-Cap
Value Index 5.94%
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 4.65% for the
year ending December 31, 1999. Comparatively, the returns for the S&P 500 Index
and the Lipper Multi-Cap Value Index were 21.04% and 5.94%, respectively.
The second half of 1999 proved disappointing as the stocks of our mid-sized
value companies took a back seat to the large growth companies that had stumbled
dramatically earlier in the year. Once again, the momentum shift was dramatic
and swift without much regard for valuation.
This short-term lack of respect for valuation can't help but remind us of
similar periods in market history, most recently the stock market of just thirty
years ago.
The 1960s represented an extended growth period for the U.S. economy. The
fundamental backdrop for stocks was excellent: low inflation and interest rates,
and growing corporate profits. While stocks suffered a decline in 1969-1970,
they quickly regained their legs and were poised to reach new highs in 1971.
But, the headwinds began to appear, particularly rising inflation, and
high-growth, "one-decision" (buy and hold forever) stocks which most investors
sought out for their predictable and growing earnings. The list included Avon,
Xerox, American Home Products and IBM. The basic idea; since these companies
were proven growers, no price was too high to pay to own them-even if you paid
too much, the growth would eventually bail you out.
Over the short run, as noted by legendary investor Benjamin Graham, the market
is not a weighing machine but a voting machine, and it's pretty clear who has
been garnering the most votes lately. But just because a stock is priced at $735
per share doesn't mean it's worth that price. At the dawn of the Third
Millennium, we cannot help but see higher risks and more absurd valuations in
some sectors, but also more opportunities in stocks where the underlying
business is understandable, profitable, and growing. We like our portfolio a lot
these days, and though the performance gap between growth and value has
persisted for an unusually long time, history shows us that subsequent
corrections for the most overvalued stocks are unexpected and sharp.
$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 $23,900
$22,000---------------------------------------------------------
$20,000---------------------------------------------------------
$18,000---------------------------------------------------------X $16,551
$16,000---------------------------------------------------------Z $16,487
$14,000---------------------------------------------------------
$12,000---------------------------------------------------------
$10,000---------------------------------------------------------
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Harris Associates Value Portfolio, the S&P 500 Index, and
the Lipper 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 12/31/99
1 Year 3 Years Since Inception
------ ------- ---------------
(February 9, 1996)
Harris Associates Value Portfolio 4.65%* 11.19%* 13.82%*
S&P 500 Index 21.04% 27.56% 25.08%
Lipper Multi-Cap Value Index 5.94% 12.72% 13.70%
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 year ended December 31, 1999:
MFS Total Return
Portfolio 2.92%*
Lehman Brothers Aggregate
Bond Index (0.82%)
Lipper Balanced
Fund Index 8.98%
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 2.92% for the year
ending December 31, 1999. Comparatively, the returns for the Lehman Brothers
Aggregate Bond Index and the Lipper Balanced Fund Index were (0.82%) and 8.98%,
respectively.
The Portfolio faced several headwinds during 1999. In the equity area, where we
had 60% of our investments, our focus on value stocks held us back as investors
favored growth stocks by ever-widening margins. Value stocks tend to have lower
valuations than the overall stock market. They tend to be in mature industries,
such as energy, financial services, and industrials, that have to be able to
raise prices to grow earnings.
By contrast, growth stocks-the most well known of which are in the technology
and health care sectors-usually have proprietary products and high gross
margins. Unfortunately, there was little pricing flexibility in the economy in
1999, so investors favored growth stocks. Not only did we have sizable
investments in some of the market's weaker sectors, we also had few investments
in the high-priced, top-performing technology area. Our 40% stake in bonds
further hampered performance, as interest rates climbed and bond prices fell
throughout the second half of the year.
We made few changes during the year on the bond side of our Portfolio. We kept
roughly two-thirds of our bond investments in corporate bonds and the rest in
U.S. Treasuries and mortgage-backed securities. Early in 1999, we lowered the
Portfolio's duration, a measure of its sensitivity to interest-rate changes, to
give us some protection from rising interest rates. By the fall, however, we had
raised duration back to 5.9 years, reflecting our outlook that interest rates
are just as likely to stay around current levels as to rise. Even if interest
rates do go higher, we don't expect inflation to become a significant problem.
Going forward, we believe our long-term value orientation and balanced approach
may help contract owners to participate in the stock market's gains while
attempting to provide some protection in the event of a market downturn. We're
confident that value stocks will eventually return to favor, benefiting the
Portfolio.
$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---------------------------------------------------------X $15,329
$15,000---------------------------------------------------------
$14,000---------------------------------------------------------
$13,000---------------------------------------------------------Y $12,234
$12,000---------------------------------------------------------
$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 12/31/99
1 Year 3 Years Since Inception
------ ------- ---------------
(February 9, 1996)
MFS Total Return Portfolio 2.92%* 11.77%* 11.60%*
Lehman Brothers Aggregate Bond Index (0.82%) 5.73% 5.32%
Lipper Balanced Fund Index 8.98% 14.69% 13.78%
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 year ended December 31, 1999:
Strong Growth Portfolio 81.45%*
Russell 2000 Small
Company Index 21.26%
S&P 500 Index 21.04%
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 81.45% for the year ending
December 31, 1999. Comparatively, the returns for the Russell 2000 Small Company
Index and the S&P 500 Index were 21.26% and 21.04%, respectively.
The stock market surged to the upside in the fourth quarter despite the Federal
Reserve's decision to hike short-term interest rates in the face of global
economic strength. The absence of inflation and the Fed's resolve to keep
inflation contained gave investors the confidence to move back into stocks after
a six-month period of market consolidation. Although the stock market's advance
was very narrow, companies generating superior revenue growth performed
extremely well throughout the period, particularly technology issues.
In the fourth quarter, computer software, telecommunications, internet
infrastructure beneficiaries and biotechnology holdings provided strong relative
outperformance for the Portfolio. We have emphasized investments in the direct
beneficiaries of the networked economy. The companies with the fastest growth
rates are leading this technological revolution and the drive to enhance
productivity and communications around the globe.
The growth of the internet and its acceptance as an important source of
competitive advantage should continue to enhance the prospects of companies
engaged in business to business commerce, wireless connectivity, internet
content, bandwith expansion, the building of new brands and a host of other
applications. The successful implementation of technology remains an essential
source of global competitiveness with superior returns on capital and market
share gains the principal result.
During the next six months, we expect the U.S. economy to continue to grow at a
more moderate pace. We expect the Fed to remain vigilant, poised to nudge
interest rates preemptively higher to offset signs of inflationary pressure.
Our preference is for pure plays in dynamic niche markets, new product cycles or
innovative services. As growth investors, our investment team is constantly on
the look out for investments exhibiting sustainable fundamental improvement
regardless of industry.
$10,000 Hypothetical Investment since inception February 9, 1996
- ----------------------------------------------------------------
Strong Growth Portfolio - X
Russell 2000 Small Company Index - Y
S&P 500 Index - Z
$38,000--------------------------------------------------------X $35,789
$34,000--------------------------------------------------------
$30,000--------------------------------------------------------
$26,000--------------------------------------------------------Z $23,900
$22,000--------------------------------------------------------
$18,000--------------------------------------------------------Y $15,987
$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 12/31/99
1 Year 3 Years Since Inception
------ ------- ---------------
(February 9, 1996)
Strong Growth Portfolio 81.45%* 43.84%* 38.75%*
Russell 2000 Small Company Index 21.26% 13.08% 12.81%
S&P 500 Index 21.04% 27.56% 25.08%
ROBERTSON STEPHENS DIVERSIFIED GROWTH PORTFOLIO
INVESTMENT SUB-ADVISOR
RS Investment Management, L.P.
ABOUT THE PORTFOLIO
Invests in securities broadly diversified over industry sectors by focusing on
small and mid-cap companies expected to provide long-term capital appreciation.
PERFORMANCE
Net total return for the year ended December 31, 1999:
Robertson Stephens Diversified
Growth Portfolio 137.04%*
Russell 2000 Small
Company Index 21.26%
S&P 500 Index 21.04%
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 Robertson Stephens Diversified Growth Portfolio earned a total return of
137.04% for the year ending December 31, 1999. Comparatively, the returns for
the Russell 2000 Small Company Index and the S&P 500 Index were 21.26% and
21.04%, respectively.
The past year marks the first time in six years that U.S. small stocks as
measured by the Russell 2000 index have outperformed most large cap stock
benchmarks. The Russell 2000 returned 21.26% last year, slightly ahead of the
S&P 500 return of 21.04%. The small stocks surge came primarily in the fourth
quarter as investors' appetite for technology stocks finally spilled over to
include small stocks too.
In the fourth quarter we built on our strong year to date performance by
maintaining a diversified portfolio strategy, and emphasizing stock selection
across all sectors. We recognized significant gains from our broad technology
exposure. Our fundamental research effort continues to uncover a long list of
compelling technology companies with strong fundamentals. Thus we continued our
overweighting to this sector as we closed the year.
We enjoyed strong gains from a range of technology stocks. We were particularly
rewarded with returns from various investments in companies positioned to grow
in the wireless market. Our research in early 1999 lead us to believe that Wall
Street's assumption of cellular penetration was too low, and that revenue per
user could be significantly expanded with additional services beyond basic voice
capability. Further, we saw private market activity picking up in the area,
which we took as an indicator of better investment returns still to come.
The traditional healthcare sector continues to suffer. However, within the broad
healthcare area, we have uncovered a number of exciting investment opportunities
in biotechnology, which contributed positive performance. While the
opportunities are compelling, traditional earnings or cash flow valuation is
difficult and many of the stocks trade in volatile patterns. Thus we prefer to
spread the risk across a basket of these companies. Several of them produced
strong returns in the fourth quarter, contributing to overall portfolio
performance. We believe the market may continue to find these biotech companies
attractive into the next year.
We are very satisfied with the investment results of the full year. While we
expect the volatility of the small cap market to continue, we are optimistic as
we look ahead.
$10,000 Hypothetical Investment since inception February 9, 1996
- ----------------------------------------------------------------
Robertson Stephens Diversified Growth Portfolio - X
Russell 2000 Small Company Index - Y
S&P 500 Index - Z
$34,000---------------------------------------------------------X $33,966
$30,000---------------------------------------------------------
$26,000---------------------------------------------------------Z $23,900
$22,000---------------------------------------------------------
$18,000---------------------------------------------------------Y $15,987
$14,000---------------------------------------------------------
$10,000---------------------------------------------------------
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Robertson Stephens Diversified Growth Portfolio, the
Russell 2000 Small Company Index, and the S&P 500 Index on February 9, 1996, the
inception date of the Portfolio. The figures for the Portfolio, the Russell 2000
Small Company Index and the S&P 500 Index include reinvestment of dividends.
Average Annual Total Returns as of 12/31/99
1 Year 3 Years Since Inception
------ ------- ---------------
(February 9, 1996)
Robertson Stephens Diversified
Growth Portfolio 137.04%* 49.11%* 36.89%*
Russell 2000 Small Company Index 21.26% 13.08% 12.81%
S&P 500 Index 21.04% 27.56% 25.08%
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 year ended December 31, 1999:
Lexington Corporate Leaders
Portfolio 20.05%*
S&P 500 Index 21.04%
Lipper Large-Cap
Value Index 10.78%
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 20.05% for
the year ending December 31, 1999. Comparatively, the returns for the S&P 500
Index and the Lipper Large-Cap Value Index were 21.04% and 10.78%, respectively.
Stocks turned in another record performance in 1999, with the S&P 500 Index
returning 21.04%, a record breaking fifth consecutive year of 20% plus returns.
However, not all stocks benefited from this positive environment. In fact,
nearly half the stocks in the S&P 500 were actually down for the year with only
a small number of stocks generating most of the positive returns. This
enthusiasm for only a few stocks has raised their valuation to lofty levels,
with an associated increase in risk. At the same time this has created
opportunities in many of the other stocks that have been ignored by investors.
The Portfolio's return for the year also reflects a broad mix of returns. Merger
activity was a significant influence on the positive side. Portfolio holdings in
the oil and gas sector benefited from a doubling of the price of oil in 1999 and
from the merger of Exxon and Mobil. Holdings in financial services also did well
in 1999. Citigroup made substantial headway in post-merger expense reduction
during the year and we expect that to continue in 2000. The Portfolio's holdings
in the chemical sector did well in 1999. Union Carbide's pending merger into Dow
Chemical gave Union Carbide's stock a substantial lift in 1999. The proposed
merger would present numerous cost-cutting opportunities for the combined
entity. The Portfolio's other holding in the chemicals sector, DuPont, also
performed well during the year and is also in the midst of restructuring. The
company finished spinning off its former oil subsidiary, Conoco, during 1999 in
order to focus on its higher-growth, higher margin businesses such as
biotechnology. The Portfolio's holdings in technology (Motorola, Hewlett-Packard
and Lucent Technologies) were all strong performers for the year. Lucent
Technologies, one of the world's leading designers, developers, and
manufacturers of telecommunications systems and software, has performed
extremely well, despite recent earnings weakness, since being spun off from AT&T
in 1996. Offsetting these gains were the Portfolio's holdings in utilities,
railroads and consumer products.
We will continue to keep the Portfolio focused on high quality companies that
have good market share within their respective industries, have steady earnings,
and have quality management. Over the long term, companies with these
characteristics will most often perform well through changing economic
scenarios.
$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 $23,900
$22,000---------------------------------------------------------
$20,000---------------------------------------------------------Z $19,292
$18,000---------------------------------------------------------X $18,942
$16,000---------------------------------------------------------
$14,000---------------------------------------------------------
$12,000---------------------------------------------------------
$10,000---------------------------------------------------------
The chart above illustrates the growth in value of a hypothetical $10,000
investment made in the Lexington Corporate Leaders Portfolio, the S&P 500 Index,
and the Lipper 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 12/31/99
1 Year 3 Years Since Inception
------ ------- ---------------
(February 9, 1996)
Lexington Corporate Leaders Portfolio 20.05%* 18.85%* 17.83%*
S&P 500 Index 21.04% 27.56% 25.08%
Lipper Large-Cap Value Index 10.78% 18.95% 18.39%
SAI GLOBAL LEADERS PORTFOLIO
INVESTMENT SUB-ADVISOR
Select Advisors, Inc.
ABOUT THE PORTFOLIO
Invests primarily in equity securties of foreign & domestic companies with
large capitalization to obtain long-term capital growth.
PERFORMANCE
Net total return for the period May 11, 1999 through December 31, 1999:
SAI Global Leaders
Portfolio 17.00%*
S&P 500 Index 9.26%
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 17.00% from the date
of inception on May 11, 1999 through December 31, 1999, compared to 9.26% for
the S&P 500 Index.
In 1999, SAI Global Leaders benefited from stock performance in electronic
technology primarily from Nokia, Sony, and Cisco. Wal-Mart, Microsoft,
Citigroup, and American Express also provided market-leading returns for the
period.
Only a little over a year ago, the world economy was still wholly under the
spell of the Asian crisis. Emerging country currencies tumbled, lower quality
debt yields spurted upwards, a credit "crunch" gripped bank lending, and lenders
became unwilling to extend credit. The upbeat economic activity stalled and
future economic growth looked bleak. Asset prices dropped precipitously in the
late summer and early Fall of 1998. Monetary authorities feared a global
recession.(A few well-respected economist even talked depression.) To
compensate, the authorities applied massive stimulation. This massive
stimulation took many forms including the following:
- - IMF generated massive loans to
emerging markets
- - The Federal Reserve dropped official interest rates 0.75%
- - The Bank of Japan abandoned all fiscal restraint and created new fiscal
spending programs to jump-start the economy. Japan also dropped their official
interest rates to practically 0%
- - Most countries in Europe and Canada created easier monetary conditions.
These policies generated massive liquidities on a grand scale and allowed
economic growth to rebound worldwide last year. The United States continued with
strong economic performance and has now registered its fourth year of 4%
economic growth. Surprisingly, the economic rebound generated little
inflationary pressures. We would seem to have a situation even better than the
'Goldilocks' scenario. The 'Goldilocks' scenario refers to the economy growing
not too fast or too slow but "just right." Lately, many believe the economy can
grow much faster than previously thought without inflationary pressures.
At SAI we remain committed to find the investments with the best risk/reward
characteristics.
$10,000 Hypothetical Investment since inception May 11, 1999
- ------------------------------------------------------------
SAI Global Leaders Portfolio - X
S&P 500 Index - Y
$12,500----------------------------------------------------
$12,000----------------------------------------------------X $11,700
$11,500----------------------------------------------------
$11,000----------------------------------------------------Y $10,926
$10,500----------------------------------------------------
$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 12/31/99
Since Inception
---------------
(May 11, 1999)
SAI Global Leaders Portfolio 85%* 17.00%*
S&P 500 Index 9.26%
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Assets and Liabilities
December 31, 1999
Harris
Associates MFS Total Robertson Stephens
Value Return Strong Growth Diversified Growth
Assets Portfolio Portfolio Portfolio Portfolio
---------------- ----------------- ----------------- --------------------
<S> <C> <C> <C> <C>
Investments at value, see accompanying schedules $ 6,413,936 $12,456,541 $14,815,017 $15,018,066
Repurchase agreements at cost and value 150,000 574,000 393,000 670,000
Cash 390 1,000 100 541
Foreign currency at value 0 1,548 0 0
Dividends and interest receivable 12,085 86,440 1,074 160
Receivable for investments securities sold 0 84,854 928,454 490,968
Receivable for Trust shares sold 246 3,882 0 0
Expense reimbursement receivable 5,795 0 8,815 602
----- - ----- ---
Total Assets $ 6,582,452 $13,208,265 $16,146,460 $16,180,337
Investments at cost $ 6,274,189 $12,164,148 $9,566,513 $10,358,119
Foreign currency at cost $0 $1,560 $0 $0
Liabilities
Payable for investments securities purchased $0 $1,431 $940,855 $295,803
Payable for Trust shares redeemed 4,535 8,470 783,650 779,175
Payable to London Pacific 0 7,114 0 0
Custodian fees payable 7,784 19,500 18,000 15,524
Advisory fees payable 16,464 24,438 21,849 28,546
Accrued legal and audit fees 17,738 17,738 18,938 18,938
Accrued expenses and other liabilities 602 756 602 602
--- --- --- ---
Total Liabilities 47,123 79,447 1,783,894 1,138,588
Net Assets $ 6,535,329 $13,128,818 $14,362,566 $15,041,749
=========== =========== =========== ===========
Components of Net Assets:
Paid-in capital $ 6,057,116 $12,186,276 $7,823,173 $7,848,170
Undistributed net investment income (loss) 24,792 333,862 0 0
Accumulated net realized gain (loss) on
securities and foreign currency transactions 313,674 316,299 1,290,889 2,533,632
Net unrealized appreciation of securities
and foreign currency transactions 139,747 292,381 5,248,504 4,659,947
------- ------- --------- ---------
Net Assets $ 6,535,329 $13,128,818 $14,362,566 $15,041,749
=========== =========== =========== ===========
Shares Outstanding (unlimited authorization,
$.01 par value) 468,639 949,493 524,873 652,660
======= ======= ======= =======
Net Asset Value, Offering Price and Redemption
Price, Per Share (net assets/shares outstanding) $ 13.95 $ 13.83 $ 27.36 $ 23.05
========= ========= ======== ========
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Assets and Liabilities
December 31, 1999
Lexington SAI
Corporate Global
Leaders Leaders
Assets Portfolio Portfolio (1)
-------------- ----------------
<S> <C> <C>
Investments at value, see accompanying schedules $9,313,675 $1,528,178
Repurchase agreements at cost and value 0 0
Cash 0 0
Foreign currency at value 0 0
Dividends and interest receivable 2,305 496
Receivable for investments securities sold 0 0
Receivable for Trust shares sold 147 0
Expense reimbursement receivable 0 19,742
- ------
Total Assets $9,316,127 $1,548,416
Investments at cost $7,487,784 $1,356,951
Foreign currency at cost $0 $0
Liabilities
Payable for investments securities purchased $0 $0
Payable for Trust shares redeemed 6,221 842
Payable to London Pacific 31,531 0
Custodian fees payable 7,500 8,000
Advisory fees payable 14,810 0
Accrued legal and audit fees 17,738 11,634
Accrued expenses and other liabilities 607 613
--- ---
Total Liabilities 78,407 21,089
Net Assets $9,237,720 $1,527,327
========== ==========
Components of Net Assets:
Paid-in capital $6,828,103 $1,367,032
Undistributed net investment income (loss) 48,075 0
Accumulated net realized gain (loss) on
securities and foreign currency transactions 535,651 (10,932)
Net unrealized appreciation of securities
and foreign currency transactions 1,825,891 171,227
--------- -------
Net Assets $9,237,720 $1,527,327
========== ==========
Shares Outstanding (unlimited authorization,
$.01 par value) 522,052 130,513
======= =======
Net Asset Value, Offering Price and Redemption
Price, Per Share (net assets/shares outstanding) $ 17.70 $ 11.70
======== =======
(1) Commenced Operations May 11, 1999
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Operations
For the Year Ended
December 31, 1999
Harris Lexington SAI
Associates MFS Total Robertson Stephens Corporate Leaders
Value Return Strong Growth Diversified Growth Leaders Global
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio (1)
------------- ------------ ------------- --------------------- ------------ --------------
Investment Income
Income:
<S> <C> <C> <C> <C> <C> <C>
Dividends $ 103,172 $ 150,696 $ 13,012 $ 11,925 $ 162,213 $2,295
Foreign withholding tax on
dividend income 0 (2,202) 0 (39) (1,320) (28)
Interest 12,626 352,569 24,543 33,512 3,493 670
------ ------- ------ ------ ----- ---
Total Investment Income 115,798 501,063 37,555 45,398 164,386 2,937
------- ------- ------ ------ ------- -----
Expenses:
Investment advisory fees 70,565 94,961 69,282 83,323 58,618 2,784
Custodian fees 29,085 76,231 64,420 57,317 31,309 15,399
Legal and audit fees 21,965 21,965 23,165 23,165 21,965 13,100
Insurance expense 2,146 2,146 2,146 2,146 2,146 0
Trustees' fees and expenses 5,786 5,786 5,786 5,786 5,786 4,071
Other expenses 1,300 1,300 1,300 1,300 1,300 1,229
----- ----- ----- ----- ----- -----
Expenses before expense
reimbursement and fee
waivers 130,847 202,389 166,099 173,037 121,124 36,583
Fees waived by
investment advisor (Note 3) 0 0 0 0 0 (2,784)
Expense reimbursement (Note 3)(39,841) (39,079) (46,956) (51,145) (4,813) (29,012)
------- ------- ------- ------- ------ -------
Net Expenses 91,006 163,310 119,143 121,892 116,311 4,787
------ ------- ------- ------- ------- -----
Net Investment Income (Loss) 24,792 337,753 (81,588) (76,494) 48,075 (1,850)
------ ------- ------- ------- ------ ------
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on
securities and foreign
currency transactions 394,464 319,379 2,884,292 4,967,989 536,565 (10,932)
Net change in unrealized
appreciation (depreciation) of
securities and foreign
currency transactions (77,471) (329,730) 3,759,213 3,871,787 1,011,348 171,227
------- -------- --------- --------- --------- -------
Net Gain (Loss) on Investments 316,993 (10,351) 6,643,505 8,839,776 1,547,913 160,295
------- ------- --------- --------- --------- -------
Net Increase in Net Assets
Resulting from Operations $ 341,785 $ 327,402 $6,561,917 $ 8,763,282 $1,595,988 $ 158,445
========= ========= ========== =========== ========== ==========
(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
Statements of Changes in Net Assets
Harris Associates MFS Total Return Strong Growth
Value Portfolio Portfolio Portfolio
-------------------------------------- ------------------------------------- ---------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, 1999 December 31, 1998 December 31, 1999 December 31, 1998 December 31, 1999 December 31, 1998
----------------- ----------------- -----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $ 24,792 $ 42,474 $ 337,753 $ 249,468 $ (81,588) $(24,628)
Net realized gain on securities
and foreign currency
transactions 394,464 216,108 319,379 502,439 2,884,292 416,484
Net change in unrealized
appreciation (depreciation) of
securities and foreign
currency transactions (77,471) (106,044) (329,730) 213,088 3,759,213 1,032,922
------- -------- -------- ------- --------- ---------
Net increase in net assets
resulting from operations 341,785 152,538 327,402 964,995 6,561,917 1,424,778
------- ------- ------- ------- --------- ---------
Distributions to Shareholders from:
Net investment income (42,474) 0 (249,853) (995) 0 0
Net realized gain
on investments (296,898) 0 (507,236) (37,096) (1,651,631) (194,821)
-------- - -------- ------- ---------- --------
Total distributions (339,372) 0 (757,089) (38,091) (1,651,631) (194,821)
Share Transactions
Net proceeds from sale
of shares 907,367 4,529,342 2,725,942 5,544,537 4,211,902 3,036,477
Issued to shareholders in
reinvestment of dividends 339,372 0 757,089 38,091 1,651,631 194,821
Cost of shares repurchased (1,936,658) (981,697) (1,690,115) (716,951) (3,271,087) (513,775)
---------- -------- ---------- -------- ---------- --------
Net increase (decrease)
from share transactions
(Note 5) (689,919) 3,547,645 1,792,916 4,865,677 2,592,446 2,717,523
-------- --------- --------- --------- --------- ---------
Total Increase (Decrease) in
Net Assets (687,506) 3,700,183 1,363,229 5,792,581 7,502,732 3,947,480
-------- --------- --------- --------- --------- ---------
Net Assets at Beginning
of Period 7,222,835 3,522,652 11,765,589 5,973,008 6,859,834 2,912,354
--------- --------- ---------- --------- --------- ---------
Net Assets at End
of Period $6,535,329 $7,222,835 $13,128,818 $11,765,589 $14,362,566 $6,859,834
========== ========== =========== =========== =========== ==========
Accumulated undistributed net
investment income (loss)
included in net assets
at end of period $ 24,792 $ 42,474 $ 333,862 $ 249,860 $ 0 $ 0
========= ========= ========== ========== ==== ====
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Statements of Changes in Net Assets
Robertson Stephens Diversified Lexington Corporate SAI Global
Growth Portfolio Leaders Portfolio Leaders Portfolio (1)
------------------------------------ ---------------------------------- ----------------------
Year Ended Year Ended Year Ended Year Ended Period Ended
December 31, 1999 December 31, 1998 December 31,1999 December 31, 1998 December 31,1999
----------------- ----------------- ---------------------------------- ----------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $ (76,494) $ (34,957) $ 48,075 $ 52,006 $ (1,850)
Net realized gain (loss) on
securities and foreign
currency transactions 4,967,989 578,598 536,565 88,581 (10,932)
Net change in unrealized
appreciation of securities and
foreign currency transactions 3,871,787 423,882 1,011,348 492,161 171,227
--------- ------- --------- ------- -------
Net increase in net assets
resulting from operations 8,763,282 967,523 1,595,988 632,748 158,445
--------- ------- --------- ------- -------
Distributions to Shareholders from:
Net investment income 0 0 (52,006) 0 0
Net realized gain on investments (2,740,723) 0 (89,495) (14,110) 0
---------- - ------- ------- -
Total distributions (2,740,723) 0 (141,501) (14,110) 0
Share Transactions
Net proceeds from sale of shares 2,744,479 2,763,953 1,571,204 4,506,043 1,380,335
Issued to shareholders in
reinvestment of dividends 2,740,723 0 141,501 14,110 0
Cost of shares repurchased (2,722,879) (926,756) (2,098,213) (423,355) (11,453)
---------- -------- ---------- -------- -------
Net increase (decrease) from
share transactions (Note 5) 2,762,323 1,837,197 (385,508) 4,096,798 1,368,882
--------- --------- -------- --------- ---------
Total Increase in Net Assets 8,784,882 2,804,720 1,068,979 4,715,436 1,527,327
--------- --------- --------- --------- ---------
Net Assets at Beginning of Period 6,256,867 3,452,147 8,168,741 3,453,305 0
--------- --------- --------- --------- -
Net Assets at End of Period $15,041,749 $6,256,867 $9,237,720 $ 8,168,741 $ 1,527,327
=========== ========== ========== =========== ===========
Accumulated undistributed net
investment income (loss)
included in net assets at
end of period $ 0 $ 0 $ 48,075 $ 52,006 $ 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)
---------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Period Ended
December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996*
----------------- ----------------- ---------------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.03 $13.45 $11.86 $10.00
Income from Investment Operations:
Net investment income (a) 0.05 0.10 0.08 0.10
Net realized and unrealized gain on investments 0.61 0.48 2.94 2.13
---- ---- ---- ----
Total from investment operations 0.66 0.58 3.02 2.23
---- ---- ---- ----
Less Distributions:
Dividends from net investment income (0.09) 0.00 (0.05) (0.10)
Distributions from net realized capital gains (0.65) 0.00 (1.38) (0.27)
----- ---- ----- -----
Total distributions (0.74) 0.00 (1.43) (0.37)
----- ---- ----- -----
Net Asset value, End of Period $13.95 $14.03 $13.45 $11.86
====== ====== ====== ======
Total Return ++ 4.65% 4.31% 25.56% 20.39%
==== ==== ===== =====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $6,535 $7,223 $3,523 $1,421
Ratio of operating expenses to average net assets 1.29% 1.29% 1.29% 1.26%+
Ratio of net investment income to average net assets 0.35% 0.75% 0.56% 1.01%+
Portfolio turnover rate 22.47% 49.83% 84.94% 41.08%
Ratio of operating expenses to average net
assets before expense reimbursements 1.85% 1.85% 4.22% 7.55%+
Net investment income (loss) per share before
expense reimbursements (a) $(0.03) $0.03 $(0.32) $(0.52)
+ Annualized
++ Total returns represent aggregate total return 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
--------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Period Ended
December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996*
----------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.28 $12.80 $10.90 $10.00
Income from Investment Operations:
Net investment income (a) 0.38 0.37 0.35 0.25
Net realized and unrealized gain on investments 0.02 1.16 1.95 0.85
---- ---- ---- ----
Total from investment operations 0.40 1.53 2.30 1.10
---- ---- ---- ----
Less Distributions:
Dividends from net investment income (0.28) 0.00 (0.19) (0.20)
Distributions from net realized capital gains (0.57) (0.05) (0.21) (0.00)
----- ----- ----- -----
Total distributions (0.85) (0.05) (0.40) (0.20)
----- ----- ----- -----
Net Asset Value, End of Period $13.83 $14.28 $12.80 $10.90
====== ====== ====== ======
Total Return ++ 2.92% 11.98% 21.18% 9.81%
==== ===== ===== ====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $13,129 $11,766 $5,973 $1,529
Ratio of operating expenses to average net assets 1.29% 1.29% 1.29% 1.26%+
Ratio of net investment income to average net assets 2.67% 2.72% 2.80% 2.59%+
Portfolio turnover rate 109.20% 126.29% 103.75% 53.91%
Ratio of operating expenses to average net
assets before expense reimbursements 1.60% 1.87% 3.88% 7.84%+
Net investment income (loss) per share
before expense reimbursements (a) $0.34 $0.29 $0.03 $(0.38)
+ Annualized
++ Total returns represent aggregate total return 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
-----------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Period Ended
December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996*
----------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.06 $13.47 $11.92 $10.00
Income from investment operations:
Net investment income (loss) (a) (0.18) (0.08) (0.04) 0.25
Net realized and unrealized gain on
investments 13.79 4.17 3.07 2.49
----- ---- ---- ----
Total from investment operations 13.61 4.09 3.03 2.74
----- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 (0.22)
Distributions from net realized capital gains (3.31) (0.50) (1.48) (0.60)
----- ----- ----- -----
Total distributions (3.31) (0.50) (1.48) (0.82)
----- ----- ----- -----
Net Asset Value, End of Period $27.36 $17.06 $13.47 $11.92
====== ====== ====== ======
Total return ++ 81.45% 30.43% 25.56% 20.27%
===== ===== ===== =====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $14,363 $6,860 $2,912 $1,513
Ratio of operating expenses to average net assets 1.29% 1.29% 1.29% 1.26%+
Ratio of net investment income (loss) to average
net assets (0.88%) (0.53%) (0.26%) 2.25%+
Portfolio turnover rate 342.87% 275.16% 270.11% 422.67%
Ratio of operating expenses to average net
assets before expense reimbursements 1.80% 2.39% 4.44% 7.09%+
Net investment income (loss) per share before
expense reimbursements (a) $(0.28) $(0.24) $(0.46) $(0.39)
+ Annualized
++ Total returns represent aggregate total return 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
Robertson Stephens Diversified Growth Portfolio (1)
-----------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Period Ended
December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996*
----------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.00 $10.22 $8.58 $10.00
Income from investment operations:
Net investment income (loss) (a) (0.14) (0.08) (0.07) 2.10
Net realized and unrealized gain (loss) on investments 15.96 1.86 1.71 (1.69)
----- ---- ---- -----
Total from investment operations 15.82 1.78 1.64 0.41
----- ---- ---- ----
Less distributions:
Dividends from net investment income 0.00 0.00 0.00 (1.83)
Distributions from net realized capital gains (4.77) 0.00 0.00 (0.00)
----- ---- ---- -----
Total distributions (4.77) 0.00 0.00 (1.83)
----- ---- ---- -----
Net Asset Value, End of Period $23.05 $12.00 $10.22 $8.58
====== ====== ====== =====
Total return ++ 137.04% 17.42% 19.12% 2.42%
====== ===== ===== ====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $15,042 $6,257 $3,452 $1,441
Ratio of operating expenses to average net assets 1.39% 1.39% 1.39% 1.36%+
Ratio of net investment income (loss) to average
net assets (0.87%) (0.73%) (0.72%) 20.30%+
Portfolio turnover rate 480.03% 381.64% 234.54% 2,242.85%
Ratio of operating expenses to average net
assets before expense reimbursements 1.97% 2.37% 4.53% 7.02%+
Net investment income (loss) per share before
expense reimbursements (a) $(0.24) $(0.18) $(0.35) $1.51
+ Annualized
++ Total returns represent aggregate total return 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 Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Financial Highlights
For a Share Outstanding Throughout the Period
SAI Global Leaders
Lexington Corporate Leaders Portfolio Portfolio
--------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Period Ended Period Ended
December 31, 1999 December 31, 1998 December 31, 1997 December 31, 1996* December 31, 1999**
----------------- ------------------- ----------------- --------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.97 $13.39 $11.44 $10.00 $10.00
Income from Investment Operations:
Net investment income (loss) (a) 0.09 0.12 0.13 0.14 (0.03)
Net realized and unrealized gain on
investments 2.91 1.49 2.70 1.42 1.73
---- ---- ---- ---- ----
Total from investment operations 3.00 1.61 2.83 1.56 1.70
---- ---- ---- ---- ----
Less distributions:
Dividends from net investment income (0.10) 0.00 (0.08) (0.12) 0.00
Distributions from net realized capital
gains (0.17) (0.03) (0.80) (0.00) 0.00
----- ----- ----- ----- ----
Total distributions (0.27) (0.03) (0.88) (0.12) 0.00
----- ----- ----- ----- ----
Net Asset Value, End of Period $17.70 $14.97 $13.39 $11.44 $11.70
====== ====== ====== ====== ======
Total Return ++ 20.05% 12.04% 24.71% 12.84% 17.00%
===== ===== ===== ===== =====
Ratios to Average Net Assets/Supplemental
Data
Net assets, end of period (in 000's) $9,238 $8,169 $3,453 $1,323 $1,527
Ratio of operating expenses to average net
assets 1.29% 1.29% 1.29% 1.26%+ 1.29%+
Ratio of net investment income (loss) to
average net assets 0.53% 0.87% 0.99% 1.40%+ (0.50%)+
Portfolio turnover rate 10.06% 7.08% 35.69% 0.00% 12.36%
Ratio of operating expenses to average net
assets before expense reimbursements and
fee waivers 1.34% 1.60% 4.08% 6.86%+ 9.86%+
Net investment income (loss) per share before
expense reimbursements (a) $0.08 $0.08 $(0.24) $(0.41) $(0.61)
+ Annualized
++ Total returns represent aggregate total return for the years ended December 31, 1999, 1998 and 1997 and for the period
February 9, 1996 (effective date) to December 31, 1996, respectively, for the Lexington Corporate Leaders Portfolio. Total
return for SAI Global Leaders Portfolio is not annualized. 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
** 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
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 88.97%
Consumer Non-Durables - 14.15%
<S> <C>
9,000 Liz Claiborne, Inc. .....................................................$338,625
22,000 Mattel, Inc. .............................................................288,750
6,000 Nike, Inc. ...............................................................297,375
--------
924,750
-------
Financial Services - 11.50%
4,600 MGIC Investment Corporation...............................................276,863
8,000 NOVA Corporation +......................................................252,500
8,550 Washington Mutual, Inc. ..................................................222,300
--------
751,663
-------
Broadcasting & Publishing - 9.74%
9,200 Central Newspapers, Inc. .................................................362,250
9,300 Dun & Bradstreet Corporation..............................................274,350
--------
636,600
-------
Consumer Basics - 9.46%
4,950 Black & Decker Corporation................................................258,637
9,600 Dial Corporation..........................................................233,400
5,443 Philip Morris Companies, Inc. ............................................126,209
--------
618,246
-------
General Business - 6.16%
8,000 ACNielsen Corporation +..................................................197,000
4,700 H & R Block, Inc. ........................................................205,625
--------
402,625
-------
Electronics - 5.74%
5,600 Electronic Data Systems Corporation.......................................374,850
--------
Drugs & Health Care - 4.86%
7,500 Chiron Corporation +....................................................317,813
--------
Conglomerates - 4.50%
8,800 ITT Industries, Inc. .....................................................294,250
--------
Consumer Discretionary - 4.15%
8,200 Fortune Brands, Inc. .....................................................271,112
--------
Capital Goods - 4.02%
6,500 Cooper Industries, Inc. ..................................................262,844
--------
Autos & Transportation - 4.00%
3,600 Eaton Corporation.........................................................261,450
--------
Real Estate - 3.61%
18,400 Catellus Development Corporation +......................................235,750
--------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Harris Associates Value Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Construction Materials - 3.61%
<S> <C>
5,000 USG Corporation..........................................................$235,625
--------
Chemicals - 3.47%
10,300 Ferro Corporation.........................................................226,600
--------
Total Common Stocks (Cost $5,674,431)...................................5,814,178
----------
Principal
Amount
- ------
SHORT-TERM OBLIGATIONS - 11.47%
U.S. Treasury Bill - 9.17%
$600,000 2.90%, due 01/06/00 (Cost $599,758)......................................599,758
--------
Repurchase Agreement - 2.30%
150,000 Repurchase Agreement with State Street Bank and Trust Company,
dated 12/31/99 at 2.50%, due 01/03/00, maturity value $150,031
(collateralized by U.S. Treasury Bond, 9.25%, due 02/15/16, par value
$125,000; market value $158,906) (Cost $150,000).........................150,000
--------
Total Short-Term Obligations (Cost $749,758).............................749,758
--------
TOTAL INVESTMENTS (COST $6,424,189*)............................100.44% $6,563,936
OTHER ASSETS AND LIABILITIES (NET)...............................(0.44) (28,607)
----- -------
NET ASSETS......................................................100.00% $6,535,329
======= ==========
* 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
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 54.73%
Financial Services - 12.43%
<S> <C>
920 Allstate Corporation........................................................$22,080
206 American Express Company.....................................................34,247
415 American International Group, Inc. ..........................................44,872
900 AON Corporation .............................................................36,000
2,720 AXA Financial, Inc. .........................................................92,140
400 AXA SA.......................................................................55,767
1,389 Bank of America Corporation..................................................69,710
1,500 Bank of New York Company, Inc. ..............................................60,000
850 Bank One Corporation.........................................................27,253
800 Chubb Corporation............................................................45,050
1,050 CIGNA Corporation............................................................84,591
1,930 Citigroup, Inc. ............................................................107,236
1,795 A.G. Edwards, Inc. ..........................................................57,552
500 Federal Home Loan Mortgage Corporation.......................................23,531
3,240 The Hartford Financial Services Group, Inc. ................................153,495
1,813 ING Groep NV ...............................................................109,470
745 Jefferson Pilot Corporation..................................................50,846
2,720 Lincoln National Corporation................................................108,800
400 Marsh & McLennan Companies, Inc. ............................................38,275
2,120 Mellon Bank Corporation......................................................72,212
540 Merrill Lynch & Company, Inc. ...............................................45,090
1,660 PNC Bank Corporation.........................................................73,870
1,890 Reliastar Financial Corporation..............................................74,064
2,800 St. Paul Companies, Inc. ....................................................94,325
700 State Street Corporation.....................................................51,144
-------
1,631,620
---------
Energy - 7.58%
400 Apache Corporation...........................................................14,775
4,388 BP Amoco PLC, ADR...........................................................260,263
410 Chevron Corporation..........................................................35,516
2,800 Conoco, Inc..................................................................69,300
400 CONSOL Energy, Inc............................................................4,050
1,400 Devon Energy Corporation.....................................................46,025
1,520 El Paso Energy Corporation...................................................58,995
2,120 Exxon Mobil Corporation.....................................................170,793
2,700 Halliburton Company.........................................................108,675
3,980 Noble Drilling Corporation +.............................................130,345
1,010 Royal Dutch Petroleum Company................................................61,042
130 Texaco, Inc. .................................................................7,061
860 Unocal Corporation ..........................................................28,864
-------
995,704
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Communications - 5.19%
<S> <C>
730 AT&T Corporation............................................................$37,048
300 Alltel Corporation...........................................................24,806
860 Bell Atlantic Corporation....................................................52,944
3,180 GTE Corporation.............................................................224,389
1,010 Nippon Telegraph & Telephone Corporation.....................................86,986
2,740 SBC Communications, Inc. ...................................................133,575
600 Sprint Corporation ........................................................40,387
650 Telephone & Data Systems, Inc. ..............................................81,900
-------
682,035
-------
Utilities - 4.82%
700 CMS Energy Corporation.......................................................21,831
1,710 Carolina Power & Light Company...............................................52,048
4,080 Coastal Corporation........................................................ 144,585
770 Columbia Energy Group........................................................48,702
1,200 Duke Energy Company..........................................................60,150
1,080 Eastern Enterprises..........................................................62,032
600 FirstEnergy Corporation......................................................13,613
200 GPU, Inc. ....................................................................5,987
1,320 Pinnacle West Capital Corporation............................................40,343
1,700 National Fuel Gas Company....................................................79,050
1,296 Sierra Pacific Resources.....................................................22,437
410 Texas Utilities Company......................................................14,581
1,000 Washington Gas & Light Company...............................................27,500
1,310 Williams Companies, Inc. ....................................................40,037
-------
632,896
-------
Consumer Discretionary - 3.67%
400 Anheuser Busch Companies, Inc. ..............................................28,350
510 Dayton Hudson Corporation....................................................37,453
7,100 Diageo. .....................................................................56,655
100 Eastman Kodak Company.........................................................6,625
1,520 Fortune Brands, Inc. ........................................................50,255
2,140 Harrah's Entertainment, Inc. +............................................56,576
600 Hilton Hotels Corporation.....................................................5,775
2,600 Kroger Company +...........................................................49,075
450 MGM Grand, Inc. ...........................................................22,641
1,850 McDonald's Corporation.......................................................74,578
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Consumer Discretionary - (Continued)
<S> <C>
1,400 Safeway, Inc. +...........................................................$49,788
1,510 Walt Disney Company...........................................................44,168
-------
481,939
-------
Broadcasting & Publishing - 3.39%
1,530 Gannett, Inc............................................................... 124,791
400 MediaOne Group, Inc. ........................................................30,725
2,200 New York Times Company, Class A.............................................108,075
1,820 Time Warner, Inc. ..........................................................131,836
900 Tribune Company..............................................................49,556
-------
444,983
-------
Consumer Staples - 2.69%
5,026 Archer Daniels Midland Company...............................................61,254
550 Bestfoods....................................................................28,909
1,320 General Mills, Inc. .........................................................47,190
600 Hershey Foods Corporation....................................................28,500
700 McCormick & Company, Inc. ...................................................20,825
52 Nestle SA ...................................................................95,261
1,090 Quaker Oats Company .........................................................71,531
-------
353,470
-------
Materials and Processing - 2.64%
2,885 Akzo Nobel NV ..............................................................144,729
441 ALCOA, Inc. .................................................................36,603
140 Dow Chemical Company ........................................................18,707
1,900 Engelhard Corporation .......................................................35,863
450 International Paper Company .................................................25,397
2,100 Rohm & Haas Company .........................................................85,444
-------
346,743
-------
Electronics - 2.38%
100 Agilent Technologies, Inc. +...............................................7,731
1,470 Honeywell International, Inc. ...............................................84,801
1,380 Motorola, Inc. .............................................................203,205
656 Raytheon Company, Class A....................................................16,277
-------
312,014
-------
Capital Goods - 2.38%
800 Deere & Company..............................................................34,700
1,920 Emerson Electric Company....................................................110,160
150 General Electric Company.....................................................23,212
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Capital Goods - (Continued)
<S> <C>
250 W. W. Grainger, Inc. ......................................................$11,953
5,000 Hitachi.....................................................................80,258
500 Ingersoll Rand Company......................................................27,531
250 PPG Industries, Inc. .......................................................15,641
210 Tyco International, Ltd. ....................................................8,164
------
311,619
-------
Basic Industry - 1.71%
1,600 Bowater, Inc. ..............................................................86,900
1,470 Champion International Corporation..........................................91,048
710 Kimberly Clark Corporation..................................................46,328
-------
224,276
-------
Computer & Business Equipment - 1.42%
590 Hewlett Packard Company.....................................................67,223
855 International Business Machines Corporation.................................92,340
1,160 Xerox Corporation...........................................................26,317
-------
185,880
-------
Autos & Transportation - 1.36%
980 Burlington Northern Santa Fe Corporation....................................23,765
680 Canadian National Railway Company...........................................17,893
1,414 Ford Motor Company..........................................................75,561
4,000 Fuji Heavy Industries.......................................................27,405
6,000 Mitsubishi Motor Corporation................................................20,495
190 United Parcel Service of America, Inc. .....................................13,110
-------
178,229
-------
Drugs & Health Care - 1.27%
1,120 American Home Products Corporation..........................................44,170
250 Baxter International, Inc. .................................................15,703
280 Bristol Myers Squibb Company................................................17,973
1,250 Pharmacia & Upjohn, Inc. ...................................................56,250
500 SmithKline Beecham, PLC, ADR................................................32,219
-------
166,315
-------
Aerospace - 1.18%
2,370 TRW, Inc...................................................................123,092
500 United Technologies Corporation.............................................32,500
-------
155,592
-------
Consumer Cyclical - 0.40%
3,300 Delphi Automotive Systems Corporation.......................................51,975
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Consumer Non-Cyclical - 0.17%
<S> <C>
500 Seagram Company, Ltd. .....................................................$22,500
-------
Real Estate - 0.05%
230 Boston Properties, Inc. .....................................................7,159
------
Total Common Stocks (Cost $6,639,175)....................................7,184,949
----------
PREFERRED STOCKS - 2.05%
900 Apache Corporation..........................................................31,950
1,000 CMS Energy Corporation .....................................................33,875
749 CVS Automatic Com Exchange Securities Trust.................................53,366
1,000 El Paso Energy Capital Trust 1 .............................................50,375
2,000 Lincoln National Corporation ...............................................44,000
1,000 Owens Illinois, Inc. .......................................................31,250
550 Texas Utilities Company.....................................................23,994
-------
Total Preferred Stocks (Cost $290,465).....................................268,810
--------
Principal
Amount
- ------
CORPORATE BONDS AND NOTES - 22.70%
$44,000 AFLAC, Inc., 6.50%, due 04/15/2009..........................................40,374
9,000 AT&T Capital Corporation, 6.25%, due 05/15/2001..............................8,914
12,000 AT&T Corporation, 6.50%, due 03/15/2029.....................................10,280
17,000 Amerco, 7.85%, due 05/15/2003.............................................. 16,220
12,000 American Airlines, 6.855%, due 04/15/2009...................................11,827
18,000 Aristar, Inc., 7.375%, due 09/01/2004.......................................17,914
19,000 Aristar, Inc., 7.25%, due 06/15/2006........................................18,589
34,000 Associates Corporation of North America, 5.50%, due 02/15/2004..............31,920
16,000 Atlantic Mutual Insurance Company, 144A, 8.15%, due 02/15/2028..............12,008
25,000 B E Aerospace Company, 8.00%, due 03/01/2008 ..............................21,562
21,000 Beaver Valley II Funding Corporation, 9.00%, due 06/01/2017.................20,788
16,000 Belo AH Corporation, 7.75%, due 06/01/2027..................................15,227
15,000 Building Materials Corporation of America, 8.00%, due 12/01/2008............13,575
13,000 CMS Energy Corporation, 8.00%, due 07/01/2001...............................12,848
9,000 CMS Energy Corporation, 8.375%, due 07/01/2003...............................8,797
100,000 CMS Energy Corporation, 6.75%, due 01/15/2004...............................92,707
10,000 Calenergy, Inc., 7.23%, due 09/15/2005.......................................9,744
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$200,000 Century Communications Corporation, 0.00%, due 01/15/2008................$86,000
10,000 Chancellor Media Corporation, 8.75%, due 06/15/2007.......................10,200
17,000 Chase Commercial Mortgage Securities Corporation,
6.39%, due 11/18/2008.....................................................15,822
25,000 Chase Manhattan Corporation, 6.75%, due 12/01/2004........................25,408
13,000 Cleveland Electric Illuminating Company, 7.67%, due 07/01/2004............12,804
7,000 Cleveland Electric Illuminating Company, Secured Note, 144A,
7.88%, due 11/01/2017......................................................6,639
99,000 Cleveland Electric Illuminating Company, 9.00%, due 07/01/2023...........103,905
28,000 Coastal Corporation, 6.20%, due 05/15/2004................................26,569
27,000 Commonwealth Edison Company, 8.50%, due 07/15/2022........................28,025
65,000 Connecticut Light & Power Company, 7.875%, due 10/01/2024.................65,435
17,000 Conseco Financial Corporation, 10.25%, due 06/01/2002.....................17,566
12,000 Conseco Inc.,6.40%, due 06/15/2001........................................11,636
53,816 Continental Airlines, 6.648%, due 09/15/2017..............................48,823
5,000 Continental Airlines, 6.545%, due 02/02/2019...............................4,544
16,000 Cooper Tire & Rubber Company, 7.25%, due 12/16/2002.......................15,823
10,000 Countrywide Funding Corporation, 6.25%, due 04/15/2009.....................9,026
100,000 Crimi Mae Commercial Mortgage Trust, 144A, 7.00%, due 03/02/2011..........83,562
34,000 Daimler Chrysler N A Holding Corporation, 6.63%, due 09/21/2001...........33,839
5,000 Daimler Chrysler N A Holding Corporation, 7.20%, due 09/01/2009............4,911
12,000 John Deere Capital Corporation, 7.00%, due 10/15/2002.....................11,959
9,000 Eaton Corporation, 6.95%, due 11/15/2004...................................8,802
9,000 El Paso Electric Company, 8.25%, due 02/01/2003............................9,160
16,000 Entergy Mississippi, Inc., 6.20%, due 05/01/2004..........................15,102
10,000 Federal Mogul Corporation, 7.50%, due 07/01/2004...........................9,463
39,000 Federated Department Stores, Inc., 8.50%, due 06/15/2003..................40,080
5,000 Federated Department Stores, Inc., 6.30%, due 04/01/2009...................4,546
31,000 Ford Credit Auto Owner Trust, 6.20%, due 04/15/2002.......................30,884
68,000 Ford Motor Credit Company, 6.70%, due 07/16/2004..........................66,601
16,000 Ford Motor Credit Company, 7.375%, due 10/28/2009.........................15,796
12,000 Ford Motor Company, 6.625%, due 10/01/2028................................10,410
22,000 Ford Motor Company, 7.45%, due 07/16/2031.................................21,165
20,000 FrontierVision Operation Partnership, LP, 11.00%, due 10/15/2006..........21,200
7,610 GGIB Funding Corporation, Secured Lease Obligation Bond,
7.43%, due 01/15/2011......................................................7,369
38,000 GS Escrow Corporation, 6.75%, due 08/01/2001..............................36,626
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$4,000 GS Escrow Corporation, 7.125%, due 08/01/2005.............................$3,595
9,000 General Electric Capital Corporation, 8.85%, due 03/01/2007................9,756
16,000 General Electric Capital Corporation, 8.625%, due 06/15/2008..............17,286
25,000 General Motors Acceptance Corporation, 6.75%, due 12/10/2002..............24,698
14,000 General Motors Acceptance Corporation, 5.95%, due 03/14/2003..............13,481
8,000 General Motors Corporation, 9.40%, due 07/15/2021..........................9,282
110,000 Georgia Pacific Corporation, 9.50%, due 05/15/2022.......................117,048
7,000 Georgia Pacific Corporation, 7.25%, due 06/01/2028.........................6,292
106,000 Georgia Pacific Corporation, 7.75%, due 11/15/2029.......................101,012
100,000 Goldman Sachs Group, LP, 144A, 5.90%, due 01/15/2003......................95,897
30,000 Gulf Canada Resources Ltd., 9.25%, due 01/15/2004.........................29,634
58,000 Hearst Argyle Television, Inc., 7.50%, due 11/15/2027.....................53,603
8,000 Tommy Hilfiger USA, Inc., 6.50%, due 06/01/2003............................7,586
9,000 Illinois Power Supply, 5.26%, due 06/25/2003...............................8,863
23,000 Jones Apparel Group, Inc., 6.25%, due 10/01/2001..........................22,451
18,000 Lear Corporation, 144A, 7.96%, due 05/15/2005.............................17,329
10,000 Marsh Supermarkets, Inc., 8.875%, due 08/01/2007...........................9,700
20,000 McDermott, Inc., 9.375%, due 03/15/2002...................................19,988
15,000 MidAmerican Funding, LLC, 144A, 5.85%, due 03/01/2001.....................14,805
23,000 MidAmerican Funding, LLC, 144A, 6.927%, due 03/01/2029....................19,903
49,473 Midland Funding Corporation, Senior Secured Lease Bond,
Series C, 10.33%, due 07/23/2002 .........................................50,908
22,000 Morgan Stanley Group, Inc., 7.125%, due 01/15/2003........................21,983
5,000 Nabisco, Inc., 6.375%, due 02/01/2035......................................4,644
8,000 News America, Inc., 6.703%, due 05/21/2004.................................7,641
37,805 Niagara Mohawk Power Corporation, 7.25%, due 10/01/2002...................37,678
3,780 Niagara Mohawk Power Corporation, 7.625%, due 10/01/2005...................3,770
10,000 Niagara Mohawk Power Corporation, 8.75%, due 04/01/2022....................9,907
5,000 Niagara Mohawk Power Corporation, 8.50%, due 07/01/2023....................4,831
20,000 Nortek, Inc., 9.25%, due 03/15/2007.......................................19,550
3,543 Northeast Utilities, 8.58%, due 12/01/2006.................................3,570
14,000 Northwest Airlines, Inc., 7.575%, due 03/01/2019..........................13,446
18,000 Occidental Petroleum Corporation, 6.40%, due 04/01/2003...................17,355
10,000 Outdoor Systems, Inc., 8.875%, due 06/15/2007.............................10,312
10,000 Owens Illinois, Inc., 8.10%, due 05/15/2007................................9,449
9,000 Protection One Alarm Monitor, Inc., 7.375%, due 08/15/2005.................7,155
9,000 Providian Capital I, 144A, 9.525%, due 02/01/2027..........................7,627
27,000 Qwest Communications International, Inc., 7.50%, due 11/01/2008...........26,249
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$99,935 RGS Aegco Funding Corporation, 9.81%, due 12/07/2022....................$110,715
5,000 Raytheon Company, 7.20%, due 08/15/2027....................................4,458
40,000 Residential Accredit Loans, Inc., 6.75%, due 10/25/2028...................37,431
21,000 Rite Aid Corporation, 144A, 6.00%, due 10/01/2003.........................14,490
3,000 Rite Aid Corporation, 7.125%, due 01/15/2007...............................2,280
7,000 Saks, Inc., 7.25%, due 12/01/2004..........................................6,664
60,000 Salton Sea Funding Group Corporation, Senior Secured Bond,
7.84%, due 05/30/2010.....................................................57,114
43,108 Seabrook 1, Secured Lease Obligation Bond, 7.83%, due 01/01/2019..........41,947
23,000 Joseph E. Seagram & Sons, Inc., 5.79%, due 04/15/2001.....................22,576
35,000 Joseph E. Seagram & Sons, Inc., 6.40%, due 12/15/2003.....................33,740
24,000 Joseph E. Seagram & Sons, Inc., 7.50%, due 12/15/2018.....................22,740
8,000 Joseph E. Seagram & Sons, Inc., 7.60%, due 12/15/2028......................7,533
7,000 Socgen Real Estate Company, LLC, 144A, 7.64%, due 12/29/2049...............6,317
34,000 Sprint Capital Corporation, 6.50%, due 11/15/2001.........................33,710
42,000 Sprint Capital Corporation, 5.875%, due 05/01/2004........................39,612
19,000 Sprint Capital Corporation, 6.375%, due 05/01/2009........................17,476
36,000 Sprint Capital Corporation, 6.90%, due 05/01/2019.........................32,741
18,000 SunAmerica Institutional, 5.75%, due 02/16/2009...........................16,065
59,000 TCI Communications Financing III, Capital Securities,
9.65%, due 03/31/2027.....................................................64,863
12,000 TRW, Inc., 7.125%, due 06/01/2009.........................................11,522
12,000 TXU Eastern Funding Company, 6.15%, due 05/15/2002........................11,694
13,000 Tennessee Gas Pipeline Company, 7.625%, due 04/01/2037....................12,126
5,000 Texas Gas Transmission Corporation, 7.25%, due 07/15/2027..................4,486
10,000 Texas Utilities Company, 5.94%, due 10/15/2015.............................9,830
43,000 Time Warner, Inc., Pass-thru Asset Trust, 144A, 6.10%, due 12/30/2001.....42,147
17,000 Time Warner Entertainment Company, LP, 10.15%, due 05/01/2012.............19,917
9,000 Union Pacific Corporation, 5.78%, due 10/15/2001...........................8,795
15,000 Union Pacific Corporation, 6.34%, due 11/25/2003..........................14,471
5,000 Unisys Corporation, 12.00%, due 04/15/2003.................................5,325
10,000 US Timberlands Company, 9.625%, due 11/15/2007.............................9,275
7,000 Utilicorp United, Inc., 7.00%, due 07/15/2004..............................6,760
11,933 Waterford 3 Funding Corporation, Secured Lease Collateral Bond,
8.09%, due 01/02/2017.....................................................11,463
26,000 Wal Mart Stores, Inc., 6.50%, due 08/10/2004..............................25,552
10,000 Washington Mutual Capital I, Subordinated Capital Income
Securities, 8.375%, due 06/01/2027.........................................9,518
10,000 Williams Companies, Inc., 7.625%, due 07/15/2019...........................9,438
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Principal Value
Amount (Note 2)
- ------ --------
CORPORATE BONDS AND NOTES (Continued)
<S> <C>
$7,000 Williams Gas Pipelines, 144A, 7.375%, due 11/15/2006.....................$6,827
42,000 Wisconsin Electric Power Company, 6.625%, due 12/01/2002.................41,650
5,000 WorldCom, Inc., 8.875%, due 01/15/2006....................................5,248
------
Total Corporate Bonds and Notes (Cost $3,147,258).................... 2,979,794
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 7.35%
Government National Mortgage Association (GNMA) - 4.60%
71,992 Pool #780214, 8.00%, due 12/15/2022......................................73,004
4,863 REMIC, 8.00%, due 06/20/2025..............................................4,882
51,882 Pool #377615, 7.50%, due 09/15/2025......................................51,379
37,277 Pool #410122, 7.50%, due 10/15/2025......................................36,965
28,768 Pool #247754, 7.50%, due 11/15/2026......................................28,472
25,633 Pool #780546, 7.50%, due 04/15/2027......................................25,368
20,352 Pool #453937, 7.50%, due 08/15/2027......................................20,123
20,287 Pool #455301, 7.50%, due 09/15/2027......................................20,059
50,601 Pool #433627, 7.00%, due 02/15/2028......................................48,861
21,477 Pool #469399, 7.00%, due 03/15/2028......................................20,739
36,283 Pool #467737, 7.00%, due 04/15/2028......................................35,078
31,879 Pool #480352, 7.00%, due 07/15/2028......................................30,783
77,733 Pool #495777, 6.50%, due 12/15/2028......................................73,058
37,025 Pool #470473, 6.50%, due 06/15/2029......................................34,765
100,010 Pool #525494, 8.00%, due 12/15/2029.....................................101,010
--------
Total GNMA..............................................................604,546
--------
Federal National Mortgage Association (FNMA) - 2.39%
30,000 Pool #410201, 5.722%, due 03/01/2009.....................................26,672
29,773 Pool #326868, 6.50%, due 10/01/2025......................................28,265
197,029 Pool #444210, 6.50%, due 09/01/2028.....................................185,636
38,531 Pool #506238, 8.00%, due 09/01/2028......................................38,868
37,019 Pool #446373, 6.50%, due 11/01/2028......................................34,962
-------
Total FNMA..............................................................314,403
--------
Federal Home Loan Mortgage (FHLM) - 0.36%
49,519 Pool #C18106, 6.50%, due 11/01/2028......................................46,687
-------
Total U.S. Government Agency Obligations (Cost $1,000,803)............. 965,636
-------
TREASURY OBLIGATIONS - 6.29%
U.S. Treasury Notes - 3.51%
142,000 6.25%, due 04/30/2001...................................................142,111
37,000 5.50%, due 01/31/2003....................................................36,150
27,000 6.00%, due 08/15/2004....................................................26,578
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
Principal Value
Amount (Note 2)
- ------ --------
TREASURY OBLIGATIONS - (Continued)
U.S. Treasury Notes - (Continued)
<S> <C>
$40,000 5.875%, due 11/15/2004.................................................$39,219
10,000 7.875%, due 11/15/2004..................................................10,573
18,000 6.625%, due 05/15/2007..................................................18,070
194,000 6.00%, due 08/15/2009..................................................187,938
--------
460,639
-------
U.S. Treasury Bonds - 2.78%
104,000 9.875%, due 11/15/2015.................................................134,518
28,000 6.125%, due 11/15/2027..................................................26,057
42,000 5.25%, due 11/15/2028...................................................34,598
205,000 5.25%, due 02/15/2029..................................................169,508
--------
364,681
-------
Total Treasury Obligations (Cost $854,699).............................825,320
--------
CONVERTIBLE BONDS - 1.47%
78,000 Bell Atlantic Financial Services, Inc., 144A, 4.25%, due 09/15/2005.... 95,940
60,000 Loews Corporation, 3.125%, due 09/15/2007...............................48,525
35,000 Xerox Corporation, 144A, 0.57%, due 04/21/2018..........................18,594
56,000 Xerox Corporation, 0.57%, due 04/21/2018................................29,820
-------
Total Convertible Bonds (Cost $189,598)................................192,879
--------
EUROBONDS - 0.29%
4,000 Corporacion Andina De Fomento, (Venezuela), 7.10%, due 02/01/2003....... 3,895
8,000 Deutsche Finance NV, (Netherlands), 144A, 0.00%, due 02/12/2017..........3,800
11,000 Telecomunicaciones de Puerto Rico, (Puerto Rico),
6.65%, due 05/15/2006...................................................10,409
23,000 UPM Kymmene Corporation, (Finland), 7.45%, due 11/26/2027...............20,849
-------
Total Eurobonds (Cost $41,950)..........................................38,953
-------
SHORT-TERM OBLIGATIONS - 4.37%
Repurchase Agreement - 4.37%
574,000 Repurchase Agreement with State Street Bank & Trust
Company, dated 12/31/99 at 2.50%, due 01/03/00,
maturity value $574,120 (collateralized by U.S. Treasury
Bond, 10.625%, due 08/15/15, par value $420,000;
market value $589,050) (Cost $574,000).................................574,000
--------
Shares
- ------
Investment Company - 0.00%
200 Seven Seas Money Market Fund (Cost $200)...................................200
----
Total Short-Term Obligations (Cost $574,200)...........................574,200
--------
See Notes to Financial Statements
LPT Variable Insurance Series Trust
MFS Total Return Portfolio
Schedule of Investments (Continued)
December 31, 1999
<S> <C> <C>
TOTAL INVESTMENTS (COST $12,738,148*)..............99.25% $13,030,541
OTHER ASSETS AND LIABILITIES (NET)..................0.75 98,277
----- ------
NET ASSETS....................................... 100.00% $13,128,818
====== ===========
* Aggregate cost for Federal tax purposes is $12,750,571 (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 $445,885 or 3.40 % 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
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 103.15%
Software - 26.95%
<S> <C>
500 Agile Software Corporation +.........................................$108,617
1,500 Ariba, Inc. +.........................................................266,063
3,000 BEAS Systems, Inc. +..................................................209,813
2,000 Broadvision, Inc. +...................................................340,125
2,000 Business Objects S.A., ADR +..........................................267,250
500 Check Point Software Technologies Ltd. +...............................99,375
1,000 Citrix Systems, Inc. +................................................123,000
1,000 I2 Technologies, Inc. +...............................................195,000
1,100 Legato Systems, Inc. +.................................................75,694
400 Liberate Technologies +...............................................102,800
700 Mercury Interactive Corporation +.......................................75,556
500 Microsoft Corporation +................................................58,375
2,000 Oracle Corporation +.................................................224,125
700 Parametric Technology Corporation +...................................18,944
1,400 Peregrine Systems, Inc. +............................................117,862
1,000 Portal Software, Inc. +..............................................102,875
500 Proxicom, Inc. +......................................................62,156
1,100 Siebel Systems, Inc. +................................................92,400
400 Tibco Software, Inc. +................................................61,200
3,000 Verisign, Inc. +....................................................572,813
3,200 Veritas Software Corporation +......................................458,000
100 Viant Corporation +...................................................9,900
1,400 Vignette Corporation +..............................................228,200
--------
3,870,143
---------
Communications - 20.29%
500 America Online, Inc. +................................................37,719
400 Broadcom Corporation +..............................................108,950
2,000 Broadwing, Inc. ........................................................73,750
1,000 C-Cor.net Corporation +..............................................76,625
500 CMG Information Services, Inc. +....................................138,438
1,000 DoubleClick, Inc. +.................................................253,063
1,500 Exodus Communications, Inc. +.......................................133,219
500 InfoSpace.com, Inc. +...............................................107,000
1,000 Juniper Networks, Inc. +............................................340,000
900 Nextlink Communications, Inc. +......................................74,756
1,100 Nokia Corporation .....................................................209,000
1,000 Nortel Networks Corporation ...........................................101,000
600 Polycom, Inc. +......................................................38,213
2,000 Primus Telecommunications Group, Inc. +..............................76,500
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Communications (Continued)
<S> <C>
700 Redback Networks, Inc. +.........................................$124,250
800 Sprint PCS Group Corporation +.....................................82,000
1,000 Sycamore Networks, Inc. +.........................................308,000
500 Telephone & Data Systems, Inc. .......................................63,000
500 Visual Networks, Inc. +............................................39,625
1,500 Voicestream Wireless Corporation +.................................213,469
500 Yahoo, Inc. +....................................................216,344
1,400 Young & Rubicam, Inc. ................................................99,050
-------
2,913,971
---------
Electronics - 20.04%
2,000 Agilent Technologies, Inc. +.......................................154,625
1,700 Applied Micro Circuits Corporation +................................216,325
200 ASM Lithography Holding NV +........................................22,750
1,000 Comverse Technology, Inc. +.......................................144,750
500 Credence Systems Corporation +.....................................43,250
2,200 E-Tek Dynamics, Inc. +.............................................296,175
800 Flextronics International Ltd. +.....................................36,800
700 General Instrument Corporation +....................................59,500
600 Jabil Circuit, Inc. +................................................43,800
5,000 JDS Uniphase Corporation +..........................................806,563
500 Lucent Technologies, Inc..............................................37,406
600 Orbotech Ltd. +....................................................46,500
1,700 PE Corporation.......................................................204,531
1,000 PMC Sierra, Inc. +.................................................160,312
1,600 Qualcomm, Inc. +...................................................281,800
1,700 Sawtek, Inc. +.....................................................113,156
500 SDL, Inc. +........................................................109,000
500 Triquint Semiconductor, Inc. +......................................55,625
1,000 Xilinx, Inc. +......................................................45,469
-------
2,878,337
---------
Computers & Business Equipment - 9.60%
500 Akamai Technologies, Inc. +..........................................163,812
7,000 Cisco Systems, Inc. +................................................749,875
1,500 Radisys Corporation +.................................................76,500
500 Sapient Corporation +.................................................70,469
500 Scient Corporation +..................................................43,219
2,500 Sun Microsystems, Inc. +............................................193,594
500 VerticalNet, Inc. +...................................................82,000
-------
1,379,469
---------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Drugs & Health Care - 8.42%
<S> <C>
4,000 Chiron Corporation +...............................................$169,500
1,700 Enzon, Inc. +.........................................................73,738
1,000 Genentech, Inc. +....................................................134,500
1,200 Human Genome Sciences, Inc. +........................................183,150
400 Immunex Corporation +.................................................43,800
1,400 MedImmune, Inc. +....................................................232,225
1,000 Millennium Pharmaceuticals, Inc. +...................................122,000
500 Qiagen NV +..........................................................37,750
1,000 Sepracor, Inc. +.....................................................99,187
6,000 Titan Pharmaceuticals, Inc. +.......................................114,000
--------
1,209,850
---------
Broadcasting & Publishing - 4.82%
500 Clear Channel Communication, Inc. +..................................44,625
1,300 Comcast Corporation, Class A Special ...................................65,731
2,000 Emmis Communications Corporation +.....................................249,281
1,000 Entercom Communications Corporation +...................................66,000
3,000 Infinity Broadcasting Corporation +....................................108,562
600 Radio One, Inc. +.......................................................55,200
1,000 Univision Communications, Inc. +.......................................102,188
--------
691,587
-------
Consumer Discretionary - 4.75%
2,000 Dollar Tree Stores, Inc. +..............................................96,875
4,500 Home Depot, Inc. ......................................................308,531
3,000 Kohl's Corporation +...................................................216,563
1,000 Lowes Companies, Inc....................................................59,750
-------
681,719
-------
Energy - 3.84%
4,500 BJ Services Company +................................................188,156
1,000 Cooper Cameron Corporation +..........................................48,938
4,000 Ensco International, Inc................................................91,500
1,000 Kerr McGee Corporation..................................................62,000
10,000 Key Energy Services, Inc. +..........................................51,875
500 Murphy Oil Corporation .................................................28,687
3,800 Pride International, Inc. +...........................................55,575
1,900 R & B Falcon Corporation +............................................25,175
-------
551,906
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Strong Growth Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Business Services - 1.70%
<S> <C>
1,300 Getty Images, Inc. +.................................................$63,537
1,000 Omnicom Group, Inc. ...................................................100,000
2,000 Paychex, Inc. ..........................................................80,000
-------
243,537
-------
Financial Services - 0.99%
900 Citigroup, Inc. ........................................................50,006
1,000 Northern Trust Corporation..............................................53,000
1,000 UnionBanCal Corporation.................................................39,437
-------
142,443
-------
Investment Company - 0.51%
4,500 Webs Japan Index Fund, Inc. ............................................73,406
-------
Consumer Services - 0.50%
3,000 Midway Games, Inc. +....................................................71,812
-------
Consumer Non-Durables - 0.44%
2,000 Pacific Sunwear of California, Inc. +...................................63,750
-------
Materials and Processing - 0.30%
600 Weyerhaeuser Company ...................................................43,087
-------
Total Common Stocks (Cost $9,566,513)...............................14,815,017
-----------
Principal
Amount
SHORT-TERM OBLIGATION - 2.74%
Repurchase Agreement - 2.74%
$393,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 12/31/99 at
2.50%, due 01/03/00, maturity value $393,082
(collateralized by U.S. Treasury Bond, 9.25%, due 02/15/16,
par value $320,000; market value $406,800)
(Cost $393,000) .......................................................393,000
--------
TOTAL INVESTMENTS (COST $9,959,513*)................. 105.89% $15,208,017
OTHER ASSETS AND LIABILITIES (NET)................... (5.89) (845,451)
----- --------
NET ASSETS........................................... 100.00% $14,362,566
====== ===========
* Aggregate cost for Federal tax purposes is $10,008,597 (Note 4)
+ Non-income producing security
GLOSSARY OF TERMS
ADR American Depository Receipt
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Robertson Stephens Diversified Growth Portfolio
Schedule of Investments
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 98.84%
Communications - 19.12%
<S> <C>
3,000 Advanced Radio Telecom Corporation +.................................$72,000
9,500 American Mobile Satellite Corporation +..............................200,094
3,000 Carrier Access Corporation +.........................................201,937
4,000 CommTouch Software Ltd. +.............................................194,250
6,000 Concentric Network Corporation +.....................................184,875
5,725 eGain Communications Corporation + ..................................216,119
14,500 Fibernet Telecom Group, Inc. +........................................219,312
14,000 Geoworks Corporation +...............................................234,500
1,500 NBC Internet, Inc. +................................................115,875
4,500 Network Access Solutions, Inc. +.....................................148,500
15,000 Primus Telecommunications Group, Inc. +...............................573,750
16,700 Startec Global Communications Corporation +.........................356,962
7,000 Tekelec, Inc. +.....................................................157,500
--------
2,875,674
---------
Software - 13.76%
5,800 Aware, Inc. +........................................................210,975
4,000 Datastream System, Inc. +.............................................98,250
22,500 Evolving Systems, Inc. +.............................................191,250
9,000 FileNet Corporation +................................................229,500
6,000 Inso Corporation +...................................................193,500
3,700 Iona Technologies PLC, ADR +.........................................201,650
5,300 Metamor Worldwide, Inc.+...............................................154,363
2,500 Netegrity, Inc. +....................................................142,344
2,500 S1 Corporation +.....................................................195,313
3,750 SeaChange International, Inc. +........................................132,656
21,000 3DO Company +........................................................190,969
3,500 Wind River Systems, Inc. +...........................................128,188
--------
2,068,958
---------
Consumer Discretionary - 11.87%
4,000 Abercrombie & Fitch Company +........................................106,750
8,000 Charlotte Russe Holding, Inc. +......................................168,000
5,000 Factory 2-U, Inc. +..................................................141,875
4,500 99 Cents Only Stores +...............................................172,125
40,000 Shop At Home, Inc. +.................................................397,500
15,300 SkyMall, Inc. +......................................................112,838
18,800 Steakhouse Partners, Inc. +..........................................113,975
7,500 Value City Department Stores, Inc. +.................................113,437
8,000 Valuevision International, Inc. +.....................................458,500
--------
1,785,000
---------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Robertson Stephens Diversified Growth Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS (Continued)
Broadcasting & Publishing - 11.27%
<S> <C>
2,500 Citadel Communications Corporation +................................$162,187
6,500 Fox Entertainment Group, Inc. +.......................................162,094
3,500 Infinity Broadcasting Corporation +...................................126,656
2,500 Knight-Ridder, Inc. ...................................................148,750
12,500 LodgeNet Entertainment Corporation +.................................310,937
17,000 New Frontier Media, Inc. +.............................................72,250
3,000 Spanish Broadcasting System, Inc. +...................................120,750
3,800 UnitedGlobalCom, Inc. +...............................................268,375
2,600 Wink Communications, Inc. +...........................................156,162
3,500 WorldGate Communications, Inc. +......................................166,469
--------
1,694,630
---------
Business Services - 9.83%
8,000 Administaff, Inc. +..................................................242,000
8,000 AppliedTheory Corporation +..........................................222,000
9,000 Bamboo.com, Inc. +...................................................149,063
1,800 E-Stamp Corporation +.................................................40,050
3,500 Earthweb, Inc. +.....................................................176,094
25,000 SITEL Corporation +..................................................175,000
4,500 Stamps.com, Inc. +..................................................187,312
2,500 24/7 Media, Inc. +..................................................140,625
7,000 ZDNet +..............................................................147,000
--------
1,479,144
---------
Electronics - 9.68%
7,000 Atmel Corporation +...................................................206,938
2,000 Cree, Inc. +..........................................................170,750
2,500 Cymer, Inc. +.........................................................115,000
6,000 Cypress Semiconductor Corporation +..................................194,250
3,500 MRV Communications, Inc. +...........................................220,062
25,000 Oak Technology, Inc. +...............................................235,937
4,700 Sawtek, Inc. +........................................................312,844
--------
1,455,781
---------
Energy - 6.68%
3,500 BJ Services Company +................................................146,344
60,000 Bonus Resource Services Corporation +................................95,601
7,000 Ensco International, Inc. ...........................................160,125
6,000 EOG Resources, Inc. .................................................105,375
9,000 Global Marine, Inc. +................................................149,625
7,500 Marine Drilling Companies, Inc. +....................................168,281
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Robertson Stephens Diversified Growth Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS (Continued)
Energy - (Continued)
<S> <C>
4,500 Weatherford International, Inc. +...................................$179,719
--------
1,005,070
---------
Drugs & Health Care - 6.45%
3,500 ArthroCare Corporation +............................................213,500
6 Bergen Brunswig Corporation ................................................50
10,000 Closure Medical Corporation +........................................128,750
3,000 Cytyc Corporation +.................................................183,188
15,000 Endocardial Solutions, Inc. +........................................131,250
4,000 Enzon, Inc. +.......................................................173,500
25,000 Novavax, Inc. +.....................................................140,625
--------
970,863
-------
Financial Services - 2.78%
41,023 Billserv.com, Inc. +.................................................303,781
2,500 Knight/Trimark Group, Inc. +.........................................115,000
--------
418,781
-------
Computers & Business Equipment - 2.55%
4,000 Cybex Computer Products Corporation +................................162,000
6,000 IntraNet Solutions, Inc. +...........................................222,000
--------
384,000
-------
Transportation - 2.34%
44,000 United Shipping & Technology, Inc. +.................................352,000
--------
Capital Goods - 1.76 %
5,850 Maverick Tube Corporation +..........................................144,422
6,000 Zygo Corporation +...................................................120,750
--------
265,172
-------
Utilities - 0.75%
3,400 Independent Energy Holdings PLC +..................................113,263
--------
Total Common Stocks (Cost $10,358,119)..............................14,868,336
-----------
Warrants - 1.00%
26,923 Billserv.com, Inc. + (Cost $0).......................................149,730
--------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Robertson Stephens Diversified Growth Portfolio
Schedule of Investments (Continued)
December 31, 1999
Principal Value
Amount (Note 2)
- ------ --------
SHORT-TERM OBLIGATION - 4.46%
Repurchase Agreement - 4.46%
<S> <C>
$670,000 Repurchase Agreement with State Street
Bank and Trust Company, dated 12/31/99 at
2.50%, due 01/03/00, maturity value $670,140
(collateralized by U.S. Treasury Bond, 9.25%, due 02/15/16,
par value $540,000; market value $686,475)
(Cost $670,000) ......................................................$670,000
-------- --------
TOTAL INVESTMENTS (COST $11,028,119*)................ 104.30% $15,688,066
OTHER ASSETS AND LIABILITIES (NET)................... (4.30) (646,317)
----- --------
NET ASSETS ..................................... 100.00% $15,041,749
====== ===========
* Aggregate cost for Federal tax purposes $11,066,374 (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
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 100.65%
Energy - 17.67%
<S> <C>
3,275 Chevron Corporation...................................................$283,697
7,730 Exxon Mobil Corporation................................................622,748
3,275 Royal Dutch Petroleum Company, NY Shares...............................197,933
3,275 Schlumberger, Ltd......................................................184,219
3,275 Texaco, Inc. ..........................................................177,873
634 Transocean Sedco Forex, Inc. .........................................22,156
3,275 Union Pacific Corporation..............................................142,872
--------
1,631,498
---------
Consumer Discretionary - 17.17%
3,275 Coca Cola Company......................................................190,769
3,275 Eastman Kodak Company..................................................216,969
3,275 Fortune Brands, Inc. ..................................................108,280
3,275 McDonalds Corporation..................................................132,023
3,275 Philip Morris Companies, Inc. ..........................................75,939
3,275 Procter & Gamble Company...............................................358,817
5,900 Wal-Mart Stores, Inc. .................................................407,837
3,275 Walt Disney Company.....................................................95,794
-------
1,586,428
---------
Financial Services - 13.37%
3,275 American Express Company...............................................544,469
4,962 Citigroup, Inc. .......................................................275,701
3,275 J.P. Morgan & Company, Inc. ...........................................414,697
--------
1,234,867
---------
Materials & Processing - 9.94%
3,275 Alcoa, Inc. ...........................................................271,825
3,275 Bethlehem Steel Corporation +...........................................27,428
3,275 DuPont (E.I.) DeNemours & Company......................................215,741
3,275 International Paper Company............................................184,833
3,275 Union Carbide Corporation..............................................218,606
--------
918,433
-------
Electronics - 9.92%
3,275 Honeywell International, Inc. ........................................188,927
3,275 Lucent Technologies, Inc. ............................................245,011
3,275 Motorola, Inc. ........................................................482,244
--------
916,182
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Producer Durables - 7.15%
<S> <C>
3,275 Caterpillar, Inc. ....................................................$154,130
3,275 General Electric Company...............................................506,806
--------
660,936
-------
Utilities - 5.70%
3,275 Ameren Corporation.....................................................107,256
3,275 Consolidated Edison Company of New York................................112,987
3,275 Duke Energy Company....................................................164,159
3,275 PG&E Corporation........................................................67,137
3,275 Reliant Energy, Inc. ...................................................74,916
-------
526,455
-------
Drugs & Health Care - 5.68%
3,275 Johnson & Johnson......................................................304,984
3,275 Merck & Company, Inc. .................................................219,630
--------
524,614
-------
Autos & Transportation - 4.89%
3,275 Burlington Northern Santa Fe Corporation................................79,419
3,275 General Motors Corporation.............................................238,052
3,275 Goodyear Tire and Rubber Company........................................92,314
3,275 Union Pacific Resources Group, Inc. ....................................41,756
-------
451,541
-------
Computers & Business Equipment - 4.04%
3,275 Hewlett Packard Company................................................373,145
--------
Communications - 2.73%
4,962 AT&T Corporation.......................................................251,822
--------
Aerospace - 1.47%
3,275 Boeing Company.........................................................136,117
--------
Consumer Staples - 0.54%
3,275 Gallaher Group PLC, ADR.................................................50,353
-------
Consumer Cyclical - 0.38%
2,258 Delphi Automotive Systems Corporation...................................35,563
-------
Total Common Stocks (Cost $7,472,063)................................9,297,954
----------
SHORT-TERM OBLIGATION - 0.17 %
Investment Company - 0.17%
15,721 Seven Seas Money Market Fund (Cost $15,721).............................15,721
-------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
Lexington Corporate Leaders Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
(Note 2)
--------
<S> <C> <C>
TOTAL INVESTMENTS (COST $7,487,784*)................. 100.82% $9,313,675
OTHER ASSETS AND LIABILITIES (NET)................... (0.82) (75,955)
----- -------
NET ASSETS........................................... 100.00% $9,237,720
====== ==========
* Aggregate cost for Federal tax purposes is $7,492,984 (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
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - 99.19%
Financial Services - 20.75%
<S> <C>
1,900 ABN-AMRO Holding N.V., ADR ..........................................$48,094
500 AEGON, ADR..............................................................47,750
350 American Express Company................................................58,188
1,500 Bank Of New York, Inc. .................................................60,000
800 Citigroup, Inc. ........................................................44,450
700 Merrill Lynch & Company, Inc. ..........................................58,450
-------
316,932
-------
Consumer Discretionary - 13.55%
1,300 Carnival Corporation....................................................62,156
500 Costco Companies, Inc. +...............................................45,625
400 Procter & Gamble Company................................................43,825
800 Wal-Mart Stores, Inc. ..................................................55,300
-------
206,906
-------
Drugs & Health Care - 12.62%
700 Bristol Myers Squibb Company............................................44,931
800 Merck & Company, Inc. ..................................................53,650
1,600 Pfizer, Inc. ...........................................................51,900
1,000 Schering-Plough Corporation.............................................42,187
-------
192,668
-------
Electronics - 7.51%
700 Intel Corporation.......................................................57,619
300 Nokia Corporation, ADR ................................................57,000
-------
114,619
-------
Software - 6.88%
900 Microsoft Corporation +..............................................105,075
--------
Computer & Business Equipment - 6.51 %
500 Cisco Systems, Inc. +.................................................53,563
900 Dell Computer Corporation +...........................................45,900
-------
99,463
------
Communications - 6.32 %
700 Sprint Corporation......................................................47,119
1,000 Vodafone Airtouch PLC, ADR..............................................49,500
-------
96,619
------
Consumer Non-Cyclical - 5.94%
1,100 Gillette Company........................................................45,306
900 Lauder Estee Companies, Inc. ...........................................45,394
-------
90,700
------
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
LPT Variable Insurance Series Trust
SAI Global Leaders Portfolio
Schedule of Investments (Continued)
December 31, 1999
Value
Shares (Note 2)
- ------ --------
COMMON STOCKS - (Continued)
Investment Company - 4.02%
<S> <C>
2,300 Webs Germany Index Fund, Inc. .........................................$61,381
-------
Utilities - 3.88%
3,300 Vivendi, ADR +........................................................59,305
-------
Broadcasting & Publishing - 3.79%
800 Time Warner, Inc. ......................................................57,950
-------
Consumer Cyclical - 3.73%
200 Sony Corporation........................................................56,950
-------
Energy - 3.69%
700 Exxon Mobil Corporation.................................................56,394
-------
Total Common Stocks (Cost $1,343,735)................................1,514,962
---------- ----------
SHORT-TERM OBLIGATION - 0.87 %
Investment Company - 0.87%
13,216 Seven Seas Money Market Fund (Cost $13,216).............................13,216
-------
TOTAL INVESTMENTS (COST $1,356,951*)................. 100.06% $1,528,178
OTHER ASSETS AND LIABILITIES (NET)................... (0.06) (851)
----- ----
NET ASSETS........................................... 100.00% $1,527,327
====== ==========
* 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
DECEMBER 31, 1999
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, Robertson Stephens Diversified Growth, Lexington Corporate
Leaders, and SAI Global Leaders Portfolios (the "Portfolios"). Prior to May 1,
1997, the Harris Associates Value Portfolio was known as the MAS Value Portfolio
and the Robertson Stephens Diversified Growth Portfolio was known as the
Berkeley Smaller Companies Portfolio. Prior to May 1, 1997, Miller, Anderson &
Sherrerd, LLP served as sub-advisor to the Harris Associates Value Portfolio and
Berkeley Capital Management served as sub-advisor to the Robertson Stephens
Diversified Growth Portfolio.
2. Significant Accounting Policies
The following is a summary of significant accounting policies which are in
conformity with generally accepted accounting principles consistently followed
by the Trust in the preparation of its financial statements. The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reported period. Actual
results could differ from those estimates.
Security Valuation: Securities which are traded on a recognized exchange
(including securities traded through the National Market System) are valued at
the last sale price on the securities exchange on which such securities are
primarily traded, or, if there were no sales during the day, at the closing bid
price. Portfolio securities that are primarily traded on foreign exchanges are
generally valued at the most recent closing values of such securities on their
respective exchanges, except when an occurrence subsequent to the time a value
was so established is likely to have changed the value, then the fair value of
those securities will be determined by the Board of Trustees or its delegates.
Over-the-counter securities that are not traded through the National Market
System are valued on the basis of the bid price at the close of business on each
day. Short-term investments that mature in 60 days or less are valued at
amortized cost which approximates market value. Long-term debt securities are
valued using information furnished by an independent pricing service approved by
the Board of Trustees which utilizes market quotations and transactions,
quotations from dealers and various relationships among securities in
determining value. If not valued by a pricing service, such securities are
valued at prices obtained from independent brokers. Investments with prices that
cannot be readily obtained, if any, are stated at fair value as determined in
good faith under consistently applied procedures established by and under the
supervision of the Board of Trustees.
Repurchase Agreements: Each Portfolio may engage in Repurchase Agreement
transactions. Under the terms of a typical Repurchase Agreement, the Portfolio
through its custodian takes possession of an underlying debt obligation, subject
to an obligation of the seller to repurchase and the Portfolio to resell, the
obligation at an agreed- upon price and time, thereby determining the yield
during the Portfolio's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Portfolio's
holding period. The value of the collateral is at least equal at all times to
the total amount of the repurchase obligations, including interest. In the event
of counterparty default, the Portfolio has the right to use the collateral to
offset losses incurred. There is potential loss to the Portfolio in the event
the Portfolio is delayed or prevented from exercising its rights to dispose of
the collateral securities, including the risk of a possible decline in the value
of the underlying securities during the period while the Portfolio seeks to
assert its rights.
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
2. Significant Accounting Policies (continued):
Repurchase Aggreements (continued)
Each Portfolio may enter into Repurchase Agreements only with banks or dealers
which, in the opinion of each Portfolio's Sub-advisor, based on guidelines
established by the Trust's Board of Trustees, are deemed creditworthy.
Option Contracts: All Portfolios may purchase and/or write put and call options
on Portfolio securities or foreign currencies. The Portfolios may use options
contracts to manage their exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Writing puts and buying
calls tend to increase the Portfolio's exposure to the underlying instrument.
Buying puts and writing calls tends to either decrease the Portfolio's exposure
to the underlying instrument or to hedge other Portfolio investments.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a covered call option is that the Portfolio may forego
the opportunity of profit or incur a loss if the market price of the underlying
security increases and the option is exercised. The risk in writing a put option
is that the Portfolio may incur a loss if the market price of the underlying
security decreases and the option is exercised. In addition, there is a risk the
Portfolio may not be able to enter into a closing transaction because of an
illiquid secondary market, or, for over-the-counter options, because of a
counter party's inabilty to perform.
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)
DECEMBER 31, 1999
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 Fees on
Average Average Net Average Net
Name of Portfolio Net Assets Assets Between Assets
----------------- up to $25 $25 Million and Exceeding
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)
DECEMBER 31, 1999
3.Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
<TABLE>
<CAPTION>
Fees on Fees on Fees on
Average Average Net Average Net
Name of Portfolio Net Assets Assets Between Assets
----------------- up to $200 $200 Million Exceeding $1.3
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
Name of Portfolio Average Net $150 Million Assets
----------------- Assets up to and Exceeding
$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
Name of Portfolio Assets up $10 Million Between Assets
----------------- to $10 and $35 Million and Exceeding
Million $35 Million $200 Million $200 Million
------- ----------- ------------ ------------
Robertson Stephens Diversified
Growth Portfolio
LPIMC .25% .25% .25% .25%
Sub-advisor .70% .65% .60% .55%
--- --- --- ---
Total Fees Paid to LPIMC* .95% .90% .85% .80%
=== === === ===
Fees on
Average Net Fees on
Fees on Assets Between Average Net
Name of Portfolio Average Net $10 Million Assets
----------------- Assets up to and Exceeding
$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)
DECEMBER 31, 1999
3. Investment Advisory, Sub-advisory, and Other Related Party Transactions
(continued)
<TABLE>
<CAPTION>
Fees on Fees on Fees on
Average Average Net Average Net
Name of Portfolio Net Assets Assets Between Assets
----------------- up to $25 $25 Million and Exceeding $100
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%;
Robertson Stephens Diversified Growth Portfolio - 1.39%; Lexington Corporate
Leaders Portfolio - 1.29%; and SAI Global Leaders - 1.29%), London Pacific has
agreed, through December 31, 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 year ended December 31, 1999, London Pacific voluntarily agreed to
reimburse the Portfolios as follows:
Name of Portfolio Reimbursement
Harris Associates Value Portfolio $39,841
MFS Total Return Portfolio 39,079
Strong Growth Portfolio 46,956
Robertson Stephens Diversified Growth Portfolio 51,145
Lexington Corporate Leaders Portfolio 4,813
SAI Global Leaders Portfolio 29,012
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)
DECEMBER 31, 1999
4. Purchases and Sales of Securities
The cost of purchases and proceeds from sales of investment securities,
excluding short-term investments, for the year ended December 31, 1999, were as
follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
Portfolio Other Government Other Government
- --------- ----- ---------- ----- ----------
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $1,498,927 $0 $3,100,533 $0
MFS Total Return Portfolio 10,071,307 4,554,887 8,729,368 4,274,973
Strong Growth Portfolio 31,728,730 0 30,271,443 0
Robertson Stephens Diversified Growth Portfolio 40,304,991 0 40,166,409 0
Lexington Corporate Leaders Portfolio 896,940 0 1,287,719 0
SAI Global Leaders Portfolio 1,432,708 0 78,041 0
</TABLE>
At December 31, 1999, aggregate gross unrealized appreciation for all securities
in which there was an excess of value over tax cost and aggregate gross
unrealized depreciation for all securities in which there was an excess of tax
cost over value were as follows:
<TABLE>
<CAPTION>
Net Unrealized
Unrealized Unrealized Appreciation
Portfolio Appreciation Depreciation (Depreciation) Cost
- --------- ------------ ------------ -------------- ----
<S> <C> <C> <C> <C>
Harris Associates Value Portfolio $692,855 $553,108 $139,747 $6,424,189
MFS Total Return Portfolio 983,908 703,938 279,970 12,750,571
Strong Growth Portfolio 5,250,764 51,344 5,199,420 10,008,597
Robertson Stephens Diversified Growth Portfolio 4,844,181 222,489 4,621,692 11,066,374
Lexington Corporate Leaders Portfolio 2,306,326 485,635 1,820,691 7,492,984
SAI Global Leaders Portfolio 188,644 17,417 171,227 1,356,951
</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
---------------------------------
Year ended December 31, 1999 Year ended December 31, 1998
---------------------------- ----------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 63,421 $ 907,367 324,044 $ 4,529,342
Issued as reinvestment
of dividends 23,940 339,372 0 0
Redeemed (133,513) (1,936,658) (71,188) (981,697)
-------- ---------- ------- --------
Net increase (decrease) (46,152) $ (689,919) 252,856 $ 3,547,645
======= ========== ======= ===========
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
5. Shares of Beneficial Interest (continued)
<TABLE>
<CAPTION>
MFS Total Return Portfolio
--------------------------
Year ended December 31, 1999 Year ended December 31, 1998
---------------------------- ----------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold 190,617 $ 2,725,942 407,332 $ 5,544,537
Issued as reinvestment
of dividends 54,552 757,089 2,934 38,091
Redeemed (119,339) (1,690,115) (53,066) (716,951)
-------- ---------- ------- --------
Net increase 125,830 $ 1,792,916 357,200 $ 4,865,677
======= =========== ======= ===========
Strong Growth Portfolio
-----------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 217,250 $ 4,211,902 210,301 $ 3,036,477
Issued as reinvestment
of dividends 64,061 1,651,631 11,700 194,821
Redeemed (158,464) (3,271,087) (36,158) (513,775)
-------- ---------- ------- --------
Net increase 122,847 $ 2,592,446 185,843 $ 2,717,523
======= =========== ======= ===========
Robertson Stephens Diversified Growth Portfolio
-----------------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 164,526 $ 2,744,479 267,239 $ 2,763,953
Issued as reinvestment
of dividends 128,641 2,740,723 0 0
Redeemed (161,930) (2,722,879) (83,656) (926,756)
-------- ---------- ------- --------
Net increase 131,237 $ 2,762,323 183,583 $ 1,837,197
======= =========== ======= ===========
Lexington Corporate Leaders Portfolio
-------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 95,586 $ 1,571,204 316,043 $ 4,506,043
Issued as reinvestment
of dividends 8,191 141,501 1,096 14,110
Redeemed (127,429) (2,098,213) (29,244) (423,355)
-------- ---------- ------- --------
Net increase (decrease) (23,652) $ (385,508) 287,895 $ 4,096,798
======= ========== ======= ===========
SAI Global Leaders Portfolio
----------------------------
Period ended December 31, 1999
------------------------------
Shares Amount
------ ------
Sold 131,596 $ 1,380,335
Redeemed (1,083) (11,453)
------ -------
Net increase 130,513 $1,368,882
======= ==========
</TABLE>
LPT VARIABLE INSURANCE SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
6. Foreign Securities
All Portfolios may invest in securities of foreign companies and foreign
governments. There are certain risks involved in investing in foreign securities
that are in addition to the usual risks inherent in domestic investments. These
risks include those resulting from future adverse political and economic
developments, reduced availability of public information concerning issues,
lower standards of accounting, auditing, and financial reporting, less market
liquidity, greater volatility of prices, and a possible imposition of currency
exchange blockages or restrictions on securities, transactions, or transfer of
assets.
7. Capital Loss Carryforward
At December 31, 1999, SAI Global Leaders had a loss carryforward amount of
$5,652, which expires on December 31, 2007.
At December 31, 1999, Harris Associates Value Portfolio, MFS Total Return
Portfolio and SAI Global Leaders Portfolio had Post-October Loss of $88,942,
$26,274 and $5,281, respectively, which are deferred until January 1, 2000.
Report of Independent Accountants
To the Trustees and Shareholders of the
LPT Variable Insurance Series Trust
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the Portfolios (Harris
Associates Value, MFS Total Return, Strong Growth, Robertson Stephens
Diversified Growth, Lexington Corporate Leaders, and SAI Global Leaders)
constituting the LPT Variable Insurance Series Trust (the "Trust") at December
31, 1999, the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then ended and the
financial highlights for the periods indicated, in conformity with accounting
principles generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Trust's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at December
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Kansas City, Missouri
February 11, 2000
