Penn Series Fund, Inc.

N-CSRS 1 d365891dncsrs.htm PENN SERIES FUND, INC. Penn Series Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03459

Penn Series Funds, Inc.

(Exact name of registrant as specified in charter)

600 Dresher Road

Horsham, PA 19044

(Address of principal executive offices) (Zip code)

Robert J. DellaCroce

Penn Series Funds, Inc.

600 Dresher Road

Horsham, PA 19044

(Name and address of agent for service)

Registrant’s telephone number, including area code: (215) 956-8256

Date of fiscal year end: December 31

Date of reporting period: June 30, 2012

Form N-CSRS is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSRS in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSRS, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSRS unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.

Item 1. Reports to Shareholders

LOGO

Dear Investor:

Thank you for your continued affiliation with The Penn Mutual Life Insurance Company. The confidence and trust you place in us reaffirms our commitment to helping policyholders take advantage of all life’s possibilities. We also take pride in being a financially strong mutual insurance company that delivers on our promises, and I’m very pleased to bring you the following capital markets summary. Please remember that regardless of what the markets may bring, short-term performance changes should not distract you from your long-term financial plan, and it’s a good idea to meet with your investment professional regularly to make sure that your asset allocation remains on target.

Stocks, which moved dramatically higher in the first quarter of 2012 on the news of generally stronger than expected economic data, job growth and corporate profits, gave some of those gains back in the second quarter. Concerns relating to a global growth slowdown, potential fiscal problems in the U.S. and the continued European debt crisis had investors shunning higher-risk assets in favor of the safety of fixed-income securities for most of the second quarter. From a sector perspective, defensive sectors such as Utilities and Consumer Staples experienced relatively weaker returns in comparison to the Telecommunications, Financial and Technology sectors which all experienced double digit gains for the first half of the year. The Energy sector experienced a negative 2.30 percent return in the first half of the year due mainly to the drop in both oil and natural gas prices. In this environment, the U.S. stock market, as measured by the Wilshire 5000 Equity Index, returned 9.18 percent during the six month period ending June 30.

On a relative basis, large capitalization stocks provided somewhat higher returns than did small and mid capitalization stocks. Large capitalization stocks, as measured by the Russell 1000 Index, returned 9.38 percent for the six months, while small capitalization stocks, as measured by the Russell 2000 Index, returned 8.53 percent and mid capitalization stocks, as measured by the Russell Midcap Index, returned 7.97 percent. From a style perspective, growth stocks outperformed value stocks across all market capitalizations. Some of the underperformance within value stocks can be attributed to the relatively weaker performance within the Utilities sector. Lastly, one of the best performing equity asset classes for the six months was Real Estate Investment Trusts (REITs) as measured by the FTSE NAREIT Equity REIT Index’s return of 14.91 percent. REITs also have the distinct honor of having the best relative performance over the last one- and three-year periods, 12.92 percent and 32.41 percent, respectively.

International markets, both developed and emerging, ended the six month period behind U.S. equities. Developed international stocks, as measured by the MSCI EAFE Index, returned 3.38 percent while emerging market stocks, as measured by the MSCI Emerging Markets Index, returned 4.12 percent. Similar to the U.S., much of the volatility experienced in the international markets had to do with the European sovereign debt crisis. From an emerging markets standpoint, fears of slowing economic growth in China, India, Brazil and other important emerging countries also took its toll. On the final trading day of the second quarter, European leaders announced a series of agreements that bolstered investor sentiment. This provided the markets with some relief after months of political uncertainty as countries, such as Spain, Portugal, Italy and especially Greece, struggled with austerity measures in the face of deep recessions and high unemployment.

Investment-grade fixed-income securities, while enjoying positive returns in the first half of 2012, underperformed high yield bonds. Investment-grade bonds, as measured by the Barclays Capital U.S. Aggregate Index, returned 2.37 percent for the six month period, helped in large part by its Treasury exposure. The Credit Suisse First Boston High Yield Bond Index, which began the year with a strong advance, has returned 6.66 percent so far in 2012. Rising demand for government debt due to renewed macroeconomic fears led to a strong rally in longer-dated safe securities, sending the 10-year yield below the previous record set over 60+ years ago. By the end of the second quarter, it was evident that the U.S. Treasury market — large, liquid and relatively safe — had dominated fixed income markets due to all of the global turmoil. In this environment, Treasuries rallied, led by a strong return in the 20+ year maturity bucket as measured by the Barclays Capital U.S. Government Long Bond Index’s second quarter return of 10.32 percent. This brings the Index’s full year return, as of June 30, to a stellar 31.42 percent.

Once again, we thank you for the privilege of serving your financial needs. We hope you’ll work closely with your financial professional to continue to explore your options throughout all life’s stages.

Sincerely,

LOGO

Peter M. Sherman

Executive Vice President and Chief Investment Officer

The Penn Mutual Life Insurance Company

President

Penn Series Funds, Inc.

Table of Contents

Penn Series Funds, Inc. Semi-Annual Report


Management’s Discussion of Fund Performance
Limited Maturity Bond Fund			2
Quality Bond Fund			3
High Yield Bond Fund			4
Flexibly Managed Fund			5
Balanced Fund			6
Large Growth Stock Fund			7
Large Cap Growth Fund			8
Large Core Growth Fund			9
Large Cap Value Fund			10
Large Core Value Fund			11
Index 500 Fund			12
Mid Cap Growth Fund			13
Mid Cap Value Fund			14
Mid Core Value Fund			15
SMID Cap Growth Fund			16
SMID Cap Value Fund			17
Small Cap Growth Fund			18
Small Cap Value Fund			19
Small Cap Index Fund			20
Developed International Index Fund			21
International Equity Fund			22
Emerging Markets Equity Fund			23
Real Estate Securities Fund			25
Aggressive Allocation Fund			26
Moderately Aggressive Allocation Fund			27
Moderate Allocation Fund			28
Moderately Conservative Allocation Fund			29
Conservative Allocation Fund			30
Important Information about Fund Expenses			31
Schedules of Investments			34
Statements of Assets and Liabilities			145
Statements of Operations			153
Statements of Changes in Net Assets			157
Financial Highlights			165
Notes to Financial Statements			180
Disclosure of Portfolio Holdings			200
Voting Proxies on Fund Portfolio Securities			200
Board Approval of Investment Advisory and Sub-Advisory Agreements			201

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Limited Maturity Bond Fund

The Penn Series Limited Maturity Bond Fund returned 0.35% for the period ending June 30, 2012. The Fund’s index, the Barclays U.S. Government/Credit 1-3 year Bond Index, returned 0.58% the same period.

The Fund has historically been managed with a conservative, lower credit risk approach that has historically met total return performance goals without exposing the customer to undue default risk. In the deleveraging economic environment that we foresee, we expect credit and default risk will be greater than most of our peers think. Consequently, we will continue to pursue what we consider a prudent profile towards credit risk and our relative ranking will fluctuate heavily toward whether default premiums rise or fall. We did add risk in the beginning of the year as well as May and June as risk underperformed. A majority of the exposure has been in corporate bonds such as pharmaceuticals and food and beverage. We also continue to add asset-backed securities that have proven credit fundamentals over this cycle and offer floating rate exposure with yield that are equivalent to 5-7 year U.S. Treasuries. Finally, although our positioning in longer dated (4-5 year) versus shorter dated (2-3 year) securities has been a source of outperformance over the last 6 months, we have started to reverse that positioning. We don’t think short-term bond yields have much room to fall, but the same can start to be said for intermediate bond yields as well.

Over the past three years we have experienced periodic bouts of volatility in the risk markets associated with the European Sovereign debt crisis. During the first half of 2012 we experienced the hope of a possible resolution to the European crisis, and the fear that the problems are intractable. In the first quarter risk markets rallied based on the hope created by massive liquidity programs put in place by the European Central Bank only to see the rally fade due to the realization that the liquidity solution was no panacea for the structural problems in Europe. These problems came to the fore again in the second quarter as funding levels for Spain and Italy increased dramatically, and the political situation in Greece continues to be in turmoil. This volatility was exacerbated by a significant slowdown in China. These economies all contributed to a dismal global growth story that is being punctuated daily by weak economic data in the United States such as retail sales, region industrial activity surveys, and employment data. These challenges to risk assets have been partially offset by the voracious demand for high grade fixed income by retail investors.

Although we have been adding risk this year, we by no means are waving the all clear sign. The structural deficiencies in peripheral Europe are deep. A chaotic exit from the European currency union by a larger European country is still a low probability event, but a deep painful recession for the peripheral European countries is all but assured. This has created a world where normal cyclical slowdowns such as the one in China are very hard to manage from a global growth perspective. Although we do not view being systematically overweight risk as prudent at this point, we have capacity. During bouts of volatility, we are willing to buy higher risk bonds if and when markets provide us sufficient risk premium to do so.

Independence Capital Management, Inc.

Investment Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
U.S. Treasury Obligations		55.2	%
Corporate bonds		17.5	%
Agency Obligations		11.5	%
Asset backed		8.2	%
Residential Mortgage Backed		5.6	%
Commercial Mortgage Backed		1.3	%
Municipal Notes		0.7	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Quality Bond Fund

The Quality Bond Fund returned 2.12% for the period ending June 30, 2012. The Fund’s index, the Barclays Capital U.S. Aggregate Bond Index, returned 2.37% over the same period.

Results for 2012 and the last three years have been volatile for the Fund. Our thesis has been that these periodic bouts of volatility create windows of opportunity, but patience is a virtue. We added risk in the beginning of the year as well as May and June as risk underperformed. A majority of the exposure has been in the corporate sector including riskier sectors such as banks and insurance. We also continued to add asset-backed securities that have proven credit fundamentals over this cycle and offer floating rate exposure with yield that are equivalent to 5-7 year U.S. Treasuries. Finally, we have been selling 30-year securities to buy 5-year securities as we start to close out a strategy of owning longer dated rather than short-dated securities that has been very profitable over the last couple of years. Although we don’t necessarily think short interest rates have much more room to drop, the same can start to be said for longer dated rates at this point.

Although we added risk in the previous quarter, we by no means are waving the all clear sign. The structural deficiencies in peripheral Europe are deep. A chaotic exit from the European currency union by a larger European

country is still a low probability event, but a deep painful recession for the peripheral European countries is all but assured. This has created a world where normal cyclical slowdowns such as the one in China are very hard to manage from a global growth perspective. We think we have plenty of capacity to take advantage of future volatility, and expect it. In this environment it is not unreasonable to expect short-term interest rates and longer term interest rates to continue to converge. We will buy higher risk bonds if and when markets provide us sufficient risk premium to do so.

Independence Capital Management, Inc.

Investment Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
U.S. Treasury Obligations		38.3	%
Residential Mortgage Backed		28.0	%
Corporate Bonds		23.1	%
Asset Backed Securities		3.6	%
Agency Obligations		2.9	%
Municipal Bonds		2.1	%
Commercial Mortgage Backed		1.6	%
Municipal Notes		0.4	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

High Yield Bond Fund

The Penn Series High Yield Bond Fund returned 6.65% in the first half of 2012 while its benchmark, the Credit Suisse High Yield Bond Index, returned 6.66%.

High yield was one of the top-performing fixed income asset classes during the first three months of 2012, extending the recovery from 2011’s volatile third-quarter correction. While global macro concerns triggered a correction in May, high yield issuers rebounded as the period ended — largely due to some positive outcomes in Europe, including Greek election results.

Spreads tightened yet valuations remained attractive relative to the underlying fundamentals of most high yield issuers, especially given the low default rate.

According to J.P. Morgan, $54.6 billion of new high yield bonds came to the market during the second quarter, roughly half of the first quarter’s record volume. The slowdown in issuance combined with lean broker-dealer inventories contributed to the surprising stability of the below investment-grade market in the face of continued macroeconomic challenges.

A modest cash position detracted during a strong performance environment. We seek to effectively put money to work, and bouts of macro-driven weakness can create opportunities to invest in fundamentally sound businesses at attractive valuations.

Credit selection and an overweight allocation to the financials sector contributed to relative performance for the year-to-date period. Ally Financial, one of our largest holdings, rallied after receiving competing bids for its troubled mortgage unit. Our investment team increased our overweight allocation in the financials sector over the past six months and the Fund benefited. Several of our financial companies appear poised to return to investment grade with help from an accommodative Federal Reserve.

Our underweight exposure to building and real estate was a headwind, as these bonds rebounded significantly, especially during the first quarter. While we added select, higher-quality issuers, our exposure to the space remains minimal.

Our high-conviction position in Univision Communications boosted returns in the broadcasting sector. This issuer signed a new multi-platform distribution agreement with DISH Networks in the first quarter that will broaden its

viewing audience. Univision Communications is a Spanish-

language broadcasting company that allows advertisers to efficiently access the fastest-growing population segment in the U.S.

We hesitate to make an educated forecast for the second half of 2012 given that numerous uncertainties could derail the impressive year-to-date returns of the high yield asset class. Investor sentiment remains unpredictable and generally cautious. Company management teams also seem more guarded, as evidenced by weakening hiring trends in the United States. Moreover, deep-seated issues in Europe are unlikely to be solved any time soon, and the U.S. political system will again be tested by the looming expiration of fiscal support packages.

High yield bonds appear solidly positioned amid investors’ ongoing search for yield in a low interest rate environment. This is particularly true given that default rates are expected to remain well below historical averages over the next two years. For this reason, we reiterate our conviction in the relative attractiveness of the asset class for patient, long-term investors.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Bonds
Credit quality – B rated		32.9	%
Credit quality – BB rated		35.3	%
Credit quality – BBB rated		8.4	%
Credit quality – CCC rated		8.7	%
Credit quality – below CCC rated		11.6	%
Not rated		0.8	%
Equity securities		2.3	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Flexibly Managed Fund

The Penn Series Flexibly Managed Fund returned 7.03% for the six-month period ending June 30, 2012, compared to its benchmarks the S&P 500 Index’s return of 9.49% and the Merrill Lynch Corporate/Government Index’s return of 2.79%.

Stocks were the strongest-performing asset class in the Fund, outperforming the S&P 500 Index. Our bond holdings also posted a positive return. Our holdings in convertibles also performed well, but they lagged their benchmark. On an absolute basis, the industrials and business services and the information technology sectors were sizable contributors to performance. The energy sector was the only sector to detract from performance.

U.S. stocks produced moderate gains, extending the rebound that started last October. Market volatility was high, driven by global economic uncertainty. Stocks rose briskly in the first quarter, amid optimism about U.S. economic growth, particularly employment trends. The European debt crisis became less acute following two long-term refinancing operations by the European Central Bank. However, equities surrendered some of their gains in the spring, as U.S. job growth moderated and the situation in the eurozone deteriorated. Election results in Greece and France revealed growing popular resentment toward fiscal austerity measures.

During the first quarter, we used the market’s strength to trim our equity weight by selling select names that held up well, particularly those in the consumer discretionary and information technology sectors. While our convertibles weight declined slightly since the end of last year, our fixed income allocation increased at the margin. The Fund’s cash position grew, as we used the equity rally in the first quarter to pare back our equity weight.

Industrials and business services was a leading contributor to performance. Shares of Ingersoll-Rand rose on the news that Nelson Peltz’s Trian Fund Management established a stake in the company. Elsewhere, shares of Cooper Industries rallied sharply on the announcement that Eaton would acquire the electrical products company at a premium. Performance was also aided by stock selection in the information technology sector, as shares of Apple were up sharply and Fiserv reported strong first-quarter earnings.

As concerns over global economic growth intensify, we believe investors are anticipating that the Federal Reserve will enact a third round of quantitative easing in an attempt to revive the U.S. economy. We continue to find value in companies with stable cash flows that do not pay dividends, as dividend-paying companies’ valuations have been stretched recently. Within the fixed income space, we continue to view leveraged loans as reasonable investments due to their floating rate structure and their high position in the capital structure. We have kept our cash position elevated and are content to wait for more compelling opportunities to redeploy the capital.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Corporate bonds		22.9	%
Health Care		13.6	%
Technology		12.0	%
Financials		9.9	%
Consumer Staples		9.9	%
Consumer Discretionary		9.7	%
Industrials		9.1	%
Energy		5.2	%
Telecommunications		2.8	%
Utilities		2.7	%
Materials & Processing		2.6	%
Preferred Stocks		0.5	%
Options		–0.9	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Balanced Fund

The Penn Series Balanced Fund returned 6.49% for the six-month period ending June 30, 2012, compared to its benchmarks, the S&P 500 Index’s return of 9.49% and the Barclays Capital U.S. Aggregate Bond Index’s return of 2.37% for the same time period.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/12


Index 500	60.0	%
Intermediate Bonds	40.0	%

	100.0	%

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Growth Stock Fund

The Penn Series Large Growth Stock Fund returned 13.29% for the six-month period ending June 30, 2012, compared to the 10.08% return for its benchmark, the Russell 1000 Growth Index.

U.S. stocks produced moderate gains in the first half of 2012. Market volatility was high, driven by global economic uncertainty and European sovereign debt concerns. Stocks rose briskly in the first quarter amid optimism about U.S. economic growth, particularly employment trends. However, equities pulled back in the spring as U.S. job growth moderated, the Chinese economy decelerated, and the situation in the eurozone deteriorated. The period ended with a European summit resulting in policy statements signaling steps toward greater economic integration. Large-cap stocks outperformed their smaller counterparts, as measured by Russell indices. Growth stocks outpaced value.

Information technology was the leading outperformer, driven primarily by stock selection and also by favorable overweighting. Shares of Apple were up sharply on continued strong demand for its products. The company is expected to release the next generation of the iPhone later this year. LinkedIn reported strong user growth outside the U.S., sending share prices higher. The company continues to expand the hiring tools it offers and has reached additional users through its mobile application.

Consumer discretionary also outperformed on stock selection. The Internet and catalog retail industry contributed strongly, as consumers worldwide shifted from traditional in-store purchases to online retailers. Shares of priceline.com soared as the company continued to see an increase in online travel bookings. In June, the company announced expansion of its website to offer consumers three different ways to book hotels. After declining in the fourth quarter of 2011 due to higher costs, shares of Amazon.com rose during the first half of 2012 after the Internet retailer reported an improvement in revenue and repurchased $960 million in stock.

Energy outperformed on a beneficial sector allocation, more than offsetting slightly negative stock selection. A significant average underweight to the sector contributed to relative results as an oversupply of oil and gas combined with a decrease in demand sent prices sharply lower, hurting energy company profits.

Telecommunication services was a positive contributor to relative results primarily due to stock selection. Wireless

communication tower companies, such as Crown Castle International, continued to benefit from global consumer demand for smartphones, which can download more data and require a more robust wireless network.

The health care sector performed relatively in line with the benchmark. A notable underperformer was biotechnology company Gilead Sciences, which surprised investors in February with negative results from an ongoing hepatitis C trial, sending share prices sharply lower.

The market environment has deteriorated in recent months. Although the U.S. economy continues to demonstrate slow, steady growth, fiscal uncertainty in the U.S. and the worsening economic situation in Europe have led to growing caution among investors. A softer Chinese economy has further dampened risk appetites. Despite risks to the global economy, U.S. corporate fundamentals are generally strong. Stock valuations are appealing following May’s sharp sell-off. We believe that our bottom-up approach to selecting stocks, rather than attempting to gauge the impact of macroeconomic events, will continue to serve investors well in the coming months.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Technology		37.1	%
Consumer Discretionary		21.7	%
Industrials		13.3	%
Health Care		9.1	%
Financials		6.2	%
Energy		3.8	%
Materials & Processing		3.3	%
Telecommunications		2.8	%
Consumer Staples		2.7	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Cap Growth Fund

The Penn Series Large Cap Growth Fund returned 7.26% for the six-month period ending June 30, 2012, compared to the 10.08% return for its benchmark, the Russell 1000 Growth Index.

During the first three months of the year, the market shook off concerns regarding the lingering European debt crisis and rising oil prices, and responded favorably to a number of positive economic signals, such as the falling unemployment rate, an up-tick in consumer confidence, improving automobile sales and positive capital goods spending.

The equity markets were then beset by worries for the next three months as Greece’s potential exit from the eurozone, ailing Spanish banks, and slowing economic growth both in the United States and abroad weighed heavily on investors’ minds. With the economic picture once again becoming cloudy investors sought the safety of U.S. Treasuries, as the yield on the 10-Year Treasury Note declined from 2.2% to 1.7%. As investors flocked to safer Treasury investments, equities, as represented by the S&P 500 Index, traded 2.8% lower for the three month period. Despite the aforementioned headwinds which played a large role in investor sentiment and in the equity world, the stock market, as represented by the S&P 500 Index, produced a solid gain of 9.5% for the first six months of the year.

On an absolute basis seven of the nine economic sectors in which the Fund is invested generated positive returns for the semi-annual period. On a relative basis, the consumer staples and utility sectors contributed while the technology and health care sectors detracted. The main contributors to relative performance within the consumer staples sector were Whole Foods Market and Coca Cola Co. while Comcast and Enbridge were the main contributors within the utility sector. Within technology, SanDisk and Ubiquiti Networks detracted the most. Gilead Sciences and Agilent Technologies were the main detractors within the health care sector.

There was no shortage of gloomy financial news during the second quarter. But we think there is also considerable cause for optimism: the worst-case scenario of Greece leaving the eurozone has, so far, been avoided, and efforts are underway to restructure the debt of Spanish banks. Keep in mind, the S&P 500 Index climbed for six straight months before its second-quarter stumble, and corrections (a drop of about 10%) typically occur about once per year.

We think that when economic threats are as exhaustively chronicled as they have been of late, they have already been largely reflected in share prices, so we feel the downside risk is limited at this point. Other positive signs include the recent decline in gasoline prices, which should free up cash for consumers, and more recent indications that the housing market is on the mend.

Independence Capital Management, Inc.

Investment Adviser

Turner Investments L.P.

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Technology		38.4	%
Consumer Discretionary		18.4	%
Healthcare		11.2	%
Industrials		9.4	%
Consumer Staples		7.9	%
Financials		6.4	%
Energy		6.1	%
Materials & Processing		2.2	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Core Growth Fund

The Penn Series Large Core Growth Fund returned 12.38% for the six-month period ending June 30, 2012, compared to the 10.08% return for its benchmark, the Russell 1000 Growth Index.

Our positioning in the consumer discretionary space is currently biased towards companies with strong global brands, those serving the upper end of the consumer spectrum, and those with exposure to growing demand in international markets. Lululemon athletica is a company that fits these criteria. Lululemon, a specialty retailer of high-end athletic apparel, has the unique position of controlling the development, distribution and marketing of its brand. The company experienced fantastic product demand with growth expected to continue through international expansion, product line extensions for women beyond yoga and entirely new offerings for men. Priceline.com was another solid contributor to returns during the period. The company continues to execute on its plan to consolidate the online travel market, particularly in Europe.

Although consumer staples is an area of the market where superior growth is difficult to find, our focus on some unique areas led to outperformance. We established a position in Monster Beverage during the period. Monster is a leader in the fast growing energy drink market with brands such as Monster Energy and Java Energy. The company has strong brand recognition and growth potential through new product introductions and international expansion.

Nowhere in the market is secular growth more prevalent than the information technology sector. As more and more people rely on wireless devices for work productivity and flexibility, storage solutions and everyday tasks the demand for technology solutions compounds. Benefitting from this growth are companies such as Avago Technologies. As a component supplier to Apple’s iPhone and other leading handset manufacturers, Avago is benefitting from strong smart-phone adoption trends and a higher absolute content level in new products.

After contributing to returns in 2011, stock selection in health care detracted from relative returns during the period. Shire PLC, a leading manufacturer of attention deficit disorder drugs, was a notable detractor. In addition to the successful attention deficit disorder franchise, the company’s future growth is dependent on the development of a broad range of orphan drug therapies, drugs for rare and often fatal diseases that command premium pricing. Without immediate visibility into the success of those therapies, the stock paused during the

market rally and we exited the position during the period. Bristol-Myers Squibb was also a laggard during the period as the company reported slightly weaker than expected financial results. We continue to hold the position as we believe Bristol-Myers has one of the best pharmaceutical pipelines, with several milestone clinical results expected in 2012.

We believe that episodes of macro driven markets are here to stay. There are simply too many structural uncertainties in the world. As a result, the volatility of the first half of this year– eurozone fears, political stalemates, “risk off” sentiment — did not come as a surprise to us. The key question now is will this bout of macro uncertainty result in downward revisions to future earnings. So far during this recovery, corporate earnings have been extremely resilient to the multitude of macro shocks. Many companies, particularly those here in the U.S., have prudently managed balance sheets and capitalized on healthy global growth, especially in the emerging markets. However, with Europe facing recession and China facing questions about its growth trajectory, we would not be surprised to see more companies temper future expectations.

Independence Capital Management, Inc.

Investment Adviser

Wells Capital Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Technology		32.3	%
Consumer Discretionary		21.4	%
Healthcare		16.1	%
Industrials		10.7	%
Consumer Staples		7.9	%
Energy		4.6	%
Telecommunications		2.4	%
Financials		2.3	%
Materials		2.3	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Cap Value Fund

The Penn Series Large Cap Value Fund returned 4.56% for the six-month period ending June 30, 2012, compared to the 8.68% return for its benchmark, the Russell 1000 Value Index.

The year began during a period of improved market sentiment in which the United States managed to avoid a return to recession and European policymakers appeared to take steps to address the region’s sovereign debt and banking sector crises. Renewed investor optimism helped produce gains across a number of international equity markets over the first three months of 2012. The rebound across equities gained momentum after the European Central Bank implemented the Long-Term Refinancing Operation (LTRO) to enhance liquidity for troubled banks and reduce rates on newly issued sovereign debt securities.

However, the second quarter was a volatile time for global markets. The fear of contagion from the worsening European sovereign debt crisis and a recession across much of Europe drove negative market sentiment, particularly over May and June. In the U.S., slower than expected first quarter growth also contributed to a sell-off in the U.S. stock market. Consumer confidence dropped as U.S. unemployment figures ticked slightly upwards after showing signs of improvement from the recession highs. However, the period ended on a positive note for the markets. The results of elections in Greece avoided that county’s immediate exit from eurozone and European policymakers continued their efforts to stabilize the situation in the region through lending and other means. These events appeared to soothe market jitters slightly in the final days of the period.

During the period, four out of the top five performing stocks for the Fund were within the Financials sector: Wells Fargo, JPMorgan Chase, U.S. Bancorp and MetLife. Following another round of bank stress tests by the Federal Reserve in March 2012, stocks of banks, including Wells Fargo, JPMorgan Chase and U.S Bancorp rallied. We exited our position in JPMorgan by period end. The stock of insurance company MetLife performed positively early in the period, and we exited our position over the first quarter, locking in gains. Also contributing to performance was consumer discretionary stock Comcast. The cable provider’s high-speed Internet subscriptions increased during the period, which contributed to a positive earnings surprise. Additionally, Comcast aggressively repurchased shares and increased its dividend by over forty percent.

The most significant detractors from performance were Juniper Networks, Navistar International and GenOn Energy. Networking company Juniper experienced declines over the second quarter of 2012, announcing a decrease in

revenue. Navistar, a manufacturer of commercial military and military trucks, was negatively impacted by higher costs. It also has lost share in the Heavy Duty Class 8 truck market as the company struggles to develop an engine that meets new emissions rules. GenOn Energy is one of the largest generators of wholesale electricity in the United States. Shares of GenOn were hampered by declining natural gas prices, which hit 10-year lows during the period. We continue to believe that GenOn will benefit from its healthy balance sheet and the potential for higher power prices stemming from EPA regulations that may essentially force the closure of several competing power plants.

Also hurting performance were Humana and Cisco Systems. Humana detracted from results as the managed health care company reported a decrease in profit in its first quarter, breaking a streak of four straight profit increases. Networking company Cisco declined after it releasing earnings guidance below analysts’ expectations.

At quarter end, the Fund had its most significant overweight positions relative to the Index in the health care, information technology and consumer discretionary sectors, with underweight positions in the financials, energy, utilities and telecommunication services sectors.

Independence Capital Management, Inc.

Investment Adviser

OppenheimerFunds, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Financials		22.4	%
Healthcare		15.6	%
Energy		11.8	%
Consumer Discretionary		9.9	%
Industrials		9.7	%
Technology		9.0	%
Consumer Staples		8.3	%
Utilities		6.4	%
Materials		4.1	%
Telecommunications		2.8	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Core Value Fund

The Penn Series Large Core Value Fund returned 8.07% for the six-month period ending June 30, 2012, compared to the 8.68% return for its benchmark, the Russell 1000 Value Index.

The first six months of 2012 were marked by distinctly different quarters. The equity markets staged a broad-based rally during the first quarter of 2012 with most equity indices notching double digit gains in the backdrop of generally favorable macroeconomic developments. However, the second quarter of 2012 gave investors an unwelcome sense of déjà vu. For the third consecutive year, global equity markets began the year on a strong note, only to falter in the spring months amid renewed macroeconomic concerns.

After several months of relative calm, the European debt crisis intensified in May, putting downward pressure on stocks. As debt and banking woes spread from Greece to Spain, the collective investors’ psyche was further dampened by a weak U.S. jobs report, including an uptick in the unemployment rate. Following an upbeat forecast in April, the Federal Reserve in June revised economic projections downward and extended its “Operation Twist” program aimed at lowering long-term interest rates. Slowing economies in China, India and other developing nations added to investor pessimism. Many investors fled to U.S. Treasuries and other perceived safe havens, driving yields on those assets to record low levels. Late in the quarter, stocks regained some lost ground on positive readings from the U.S. housing sector and hopes for a meaningful resolution in Europe.

Disappointing stock selection in select sectors as well as unfavorable sector allocation decisions were a drag on relative results. Helping to partially offset these factors, favorable stock selection gains, particularly within information technology, aided relative performance.

Despite underperforming higher quality, lower beta stocks during the second quarter 2012, robust gains for lower quality, higher beta stocks during the first three months of 2012 propelled them ahead of their counterparts for the first six month period ended June 30, 2012, detracting from the Fund’s relative performance over the period.

Unfavorable stock selection results in financials and energy weighed on relative performance. In financials, not owning Bank of America, which posted a strong first quarter gain, hurt relative performance results. Within energy, overweight positions in Occidental Petroleum and Peabody Energy were a drag on performance. In telecommunication services, avoidance of strong-performing Verizon Communications also detracted.

Positive stock selection decisions within information technology and health care contributed to performance. Having exposure to select strong-performing information technology stalwarts including Apple, Microsoft, and Oracle, boosted relative performance during the period. In health care, an overweight to UnitedHealth Group was additive. Other top contributors over the period included TJX, American Express, and Sempra Energy.

While short-term risks continue to dominate the market’s direction, we believe the long-term case for equities remains favorable. In addition, we are still of the belief that U.S. fundamentals and economic conditions remain more stable and attractive than in much of the developed world.

From a positioning standpoint, the Fund remains quite balanced relative to the Index across the 10 economic sectors. We have adhered to our framework of modest sector over/under weights in this environment, placing the most emphasis on stock selection. Valuations for large-cap companies remain attractive relative to both historical levels and other asset classes. In effect, the Fund remains biased toward larger-cap companies and has maintained its overweight to higher-quality companies.

Independence Capital Management, Inc.

Investment Adviser

Eaton Vance Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Financials		24.9	%
Energy		15.0	%
Healthcare		14.1	%
Industrials		10.5	%
Technology		9.0	%
Consumer Discretionary		7.3	%
Consumer Staples		7.0	%
Utilities		5.8	%
Telecommunications		3.8	%
Materials		2.6	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Index 500 Fund

The Penn Series Index 500 Fund returned 9.30% for the six-month period ending June 30, 2012, compared to the 9.49% return for its benchmark, the S&P 500 Index.

Stocks in the U.S. began 2012 with an impressive uptrend, as ample liquidity and defensive positioning fostered persistent share buying. Quarterly earnings reports were solid, and a steady drumbeat of auspicious economic news, including declining jobless claims and rallying consumer confidence, provided an encouraging fundamental backdrop. The welcome signs of stronger activity even extended to the auto and housing industries. Climbing briskly in each of the first three months of 2012, the S&P 500 Index notched its sixth double-digit quarter in the last three years.

Sector performance across U.S. equities in the first quarter favored those groups that stood to benefit most from a more promising economic situation, although lingering worries about international activity took a toll on resource-related issues later in the period. Leading the way in both March and the first quarter as a whole was the financial sector, which had brought up the rear over the course of 2011. Information technology was not far behind, though, notching a close second for both the latest month and the full first quarter. In third place for both March and the full first quarter were the consumer discretionary stocks, which benefited from an ample rebound in housing-related names.

Growth-oriented portfolios also started to exhibit a change in character during the second quarter. Having outpaced value names handily early in 2012, growth issues found progress tougher as the spring progressed. Value stocks, on the other hand, began to attract buyers in search of a

boost from accommodative policy. If central banks were to act aggressively, the best equity gainers might arise from downtrodden cyclical issues, and not from the steadier growers that already had attracted ample capital.

While economically sensitive sectors like energy, materials, and industrials started to interest bargain hunters during June, they could not recover fully from weak relative performance earlier in the second quarter, which belonged primarily to defensive issues. As the growth outlook stalled, commodity prices tumbled, and policy makers showed little clear intention or capacity to boost longer-term prospects, income producers like telecommunications services and utilities were among the quarterly winners. But the best performance in June came from the health care sector, which rallied 5.8% on the month, barely edging out energy and telecommunications. Financials and materials also bounced back strongly and outperformed the S&P 500 in June. The weakest sector in June was consumer discretionary, but it still produced a 1.9% gain for the month, and the discretionary sector remained an outperformer for both the second quarter and the full first half.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Technology		19.8	%
Financials		14.3	%
Healthcare		12.0	%
Consumer Staples		11.3	%
Consumer Discretionary		11.0	%
Energy		10.8	%
Industrials		10.5	%
Utilities		3.7	%
Materials & Processing		3.4	%
Telecommunications		3.2	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Cap Growth Fund

The Penn Series Mid Cap Growth Fund returned 5.02% for the six-month period ending June 30, 2012, compared to the 8.10% return for its benchmark, the Russell Midcap Growth Index.

On an absolute basis seven of the eight economic sectors in which the Fund was invested generated positive results during the first half of 2012. The Fund had no exposure to utilities. On a relative basis, the consumer staples and financial sectors contributed while the technology and energy sectors detracted. Within consumer staples, Monster Beverage and Green Mountain Coffee Roasters led the way. VeriFone Systems and Equifax were the main contributors within the financial sector. The worst performers in technology were SanDisk and ON Semiconductor. The main detractors within the energy sector were SM Energy and Peabody Energy.

Independence Capital Management, Inc.

Investment Adviser

Turner Investments L.P.

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Technology		25.2	%
Consumer Discretionary		23.2	%
Industrials		13.6	%
Healthcare		12.2	%
Financials		9.8	%
Consumer Staples		6.0	%
Materials & Processing		5.3	%
Energy		4.7	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Cap Value Fund

The Penn Series Mid Cap Value Fund returned 6.78% for the six-month period ending June 30, 2012, compared to the 7.78% return for its benchmark, the Russell Micap Value Index.

The bull market that started in the fourth quarter of 2011 continued into 2012, with the broad market averages up around 30% at quarter end from the October lows at the end of the first quarter. The first quarter rally was fueled by better economic data in the U.S., the second round of the European Central Bank’s (ECB) Long Term Refunding Operation (LTRO), and a short-term solution to the Greek sovereign debt issue. Investor sentiment turned negative for most of the second quarter with continued financial turmoil in Europe and a slowdown in global economic growth. The market continued with its risk-on/risk-off investor sentiment and volatility increased. While stocks were down significantly in April and May, they rallied in June on hopes that the Federal Reserve and the ECB would once again step in with increased liquidity.

After outperforming the benchmark in the first quarter, the Fund underperformed during the second quarter, which resulted in slight underperformance for the first half of the year. In general, we attribute the underperformance during the second quarter to investor disdain for contrarian/turnaround situations, of which we own many. In fact, despite several of these companies selling at compelling valuations, during the downdrafts these stocks declined more than the market. In many cases, we have used the market volatility to add to positions where the investment case is still intact.

While the macroeconomic environment remains challenging, Fund valuations, in our opinion, are favorable. We have been emphasizing companies that generate substantial free cash flow that is being shared with stockholders through share repurchase programs and dividend payments. While we believe we are identifying attractive investment opportunities, recently we have seen macro and geopolitical forces creating a high degree of correlation among stocks, thus negating stock selection.

In the first half of the year, the Fund benefitted most from individual stocks where strategic events were announced. Several of our top performers were involved in corporate restructuring activity. Sunoco accepted an offer to sell the company at a premium to Energy Transfer Partners; Constellation Brands agreed to acquire the remaining 50% of Crown Imports, which is highly accretive; and Corrections Corp. announced it was exploring creating a REIT structure.

Detracting from performance was our underweight in financial services (despite positive contributions from most

of our holdings in this sector) and the significant price pressure that was placed on our producer durables holdings, where in several cases (e.g., Navistar International, our top detractor, Brink’s, ITT and KBR) stock specific issues surfaced. A few of our contrarian consumer names, including Safeway and Best Buy came under pressure, despite, in our opinion, compelling valuation levels. Additionally, overseas sales and the perceived risks of recessions abroad hurt our technology stock Freescale Semiconductor, another significant detractor.

As we begin the second half of the year, considerable uncertainty remains including the fiscal cliff in the U.S., the forthcoming presidential election and general gridlock in Washington, a decelerating profit growth outlook, financial instability and turmoil in Europe, and a slowdown in economic growth in China. While this macro economic backdrop is concerning, Fund valuations remain very attractive and discount a large part of this uncertainty, in our opinion. We strongly believe that over time the true value of an enterprise gets reflected in its stock price and that volatility in the market creates opportunity for value investors. As a result, we think the Fund is positioned to benefit when the macro environment improves.

Independence Capital Management, Inc.

Investment Adviser

Neuberger Berman Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Industrials		23.8	%
Consumer Discretionary		15.4	%
Technology		14.4	%
Financials		12.6	%
Health Care		10.5	%
Consumer Staples		9.2	%
Utilities		6.1	%
Energy		5.2	%
Materials & Processing		2.8	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Core Value Fund

The Penn Series Mid Core Value Fund returned 3.66% for the six-month period ending June 30, 2012, compared to the 7.78% return for its benchmark, the Russell Midcap Value Index.

During the six month period, stock selection within the industrials and financials sectors detracted from the Fund’s relative performance. Within industrials, shares of engineering and construction firm Jacobs Engineering Group declined following disappointing fiscal second quarter results, partly due to budgetary constraints and project delays in the company’s government segment. In addition, shares of Dun & Bradstreet Corporation, a provider of commercial information and insight on businesses, fell as the company has struggled to acquire new customers, partly due to increased competition. We eliminated this position from the Fund. Within financials, shares of Lazard Ltd., a financial advisory and asset management firm, fell on concerns about margins, as the firm’s compensation expense is expected to rise in the coming year. The Fund was also negatively impacted by an underweight allocation within the financials sector.

Contributing to relative performance during the six month period was positive stock selection within the health care and telecommunication services sectors. Within health care, DaVita, a provider of dialysis services for patients with chronic kidney failure, announced first quarter earnings that beat expectations, aided by strong volumes and tight cost controls. The market reacted favorably to the company’s May announcement that it would acquire HealthCare Partners, an operator of primary care medical groups. In addition, shares of Community Health Systems, an operator of hospitals, reacted favorably to the Supreme Court ruling upholding the Patient Protection and Affordable Care Act (ACA). The firm is expected to benefit from the ACA as the insured population grows. Within telecommunication services, our position in CenturyLink, an integrated communications services company, was a top contributor, as the firm continues to benefit from increased investment and broadband service offerings to its customers, as well as cost synergies derived from recent acquisitions. The Fund’s underweight allocation within the utilities sector also benefited relative performance.

We continue to execute a time-tested investment process predicated on valuation analysis and independent fundamental research. While we are cognizant of several risk factors, including uncertainty in Europe, the U.S. “fiscal cliff,” a presidential election, and a slowing economy in

China, we believe that the Fund is properly positioned to benefit in the event of a continued slow expansion of the U.S. economy. The health care sector is now the largest overweight in the Fund, primarily concentrated in the pharmaceuticals and health care providers and services industries. Within the industrials sector, we significantly reduced our exposure to machinery firms during the period. However, this sector remains a large overweight within the Fund. We decreased our position in the energy sector, as we sold out of companies negatively affected by low natural gas prices. In addition, we reduced our exposure within materials, mainly in the chemicals segment. During the six month period, we increased our exposure to the utilities sector, although this sector is currently the largest underweight in the Fund relative to the index. We also increased our exposure to financials, particularly in insurance companies, although we continue to be underweight within the sector.

Independence Capital Management, Inc.

Investment Adviser

Lord, Abbett & Co.

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Financials		25.5	%
Industrials		13.6	%
Health Care		12.6	%
Consumer Discretionary		12.1	%
Technology		10.2	%
Materials & Processing		8.6	%
Energy		6.8	%
Utilities		5.2	%
Consumer Staples		4.1	%
Telecommunications		1.3	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

SMID Cap Growth Fund

The Penn Series SMID Cap Growth Fund returned 10.91% for the six-month period ending June 30, 2012, compared to the 8.44% return for its benchmark, the Russell 2500 Growth Index.

Stock selection within the technology and industrial sectors drove returns during the period. Within technology, shares of Equinix, a leading provider of data center services, appreciated 73%. Improving demand, specifically among the firm’s financial services customer base, combined with a growing international footprint, helped the company to report better than expected revenue and earnings. In what has become an increasingly common occurrence, we used this strength as an opportunity to take gains and trimmed our Equinix position during the period. Additionally within the sector, Avago Technologies gained after reporting better than expected earnings. As a component supplier to Apple’s iPhone and other leading handset manufacturers, Avago is benefitting from strong smart-phone adoption trends and a higher absolute content level in new products.

Among our industrial holdings, Chart Industries gained due to positive trends in the natural gas market. The company produces heat exchangers that are critical to the liquefaction process of natural gas. Additionally, the firm’s distribution and storage business is experiencing significant growth as shipments of liquefied natural gas to emerging economies such as China and India have increased. Another holding benefitting from strong underlying business trends is TransDigm Group. This aerospace parts manufacturer experienced strong demand in its key aftermarket operations.

Although consumer staples is a sector where we are typically underweight versus the benchmark, our focus on the fastest growing staples companies led to outperformance. We established a position in Monster Beverage during the period, a move that was rewarded. Monster is a leader in the fast growing energy drink market with brands such as Monster Energy and Java Energy. The company has strong brand recognition and growth potential through new product introductions and international expansion. Another example in the staples sector was Hain Celestial Group, a company focused squarely in the expanding natural and organic segment of the food industry. Hain’s management execution has boosted earnings growth through strong brand development and broader distribution.

The substantial decline in crude oil prices and the persistently low price of natural gas plagued the energy sector during the period. Natural gas continued to be affected by the excess supply created by drilling technology advancements. Nearly every energy portfolio

holding declined during the period as pricing pressure continued on these commodities. One exception was Cabot Oil & Gas which bucked the trend and generated a healthy return. Cabot remains one of the lowest cost producers with strong production growth and a high quality balance sheet, enabling it to weather the commodity price storm.

Our response to this environment has changed little from the past few quarters. The cornerstone of our view is that in a world struggling to grow, companies that innovate to create true secular, organic growth are scarce, and thus more valuable. This simple view is expressed by the expected forward 12-month growth rate of your portfolio compared to the broad market. The level of expected growth is so significantly higher that, barring a massive macro shock, we would expect solid performance in the coming months. We are being cautious with macro sensitive exposures in an attempt to isolate our stock selection within secular growers. While sticking to our growth discipline, our process has uncovered exciting new themes, especially in the health care and consumer staples sectors. These themes — biotechnology, maturing pipelines within pharmaceuticals, health and wellness products, beverages, rural consumers — have proven to be strong additions to our long-standing overweights in technology and consumer discretionary.

Independence Capital Management, Inc.

Investment Adviser

Wells Capital Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Technology		28.0	%
Industrials		19.8	%
Healthcare		16.6	%
Consumer Discretionary		16.0	%
Energy		5.3	%
Consumer Staples		4.9	%
Telecommunications		3.8	%
Financials		2.8	%
Materials		2.8	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

SMID Cap Value Fund

The Penn Series SMID Cap Value Fund returned 7.03% for the six-month period ending June 30, 2012, compared to the 8.15% return for its benchmark, the Russell 2500 Value Index.

The Fund’s underperformance during the period was predominately in the consumer cyclicals, financials and technology sectors. In technology, companies such as Vishay and Arrow sold off as investors have become more wary that the eurozone crisis will depress demand for their products. In financials, our underweight in the more defensive REIT sector was a detractor. The largest individual detractors for the quarter were: Health Net, TTM Technologies, Vishay Intertechnology, Bristow Group and First Niagara.

On a more positive note, stock selection in energy, capital equipment and industrial resources contributed to performance. Leading contributors were: Dean Foods, Molina Healthcare, Western Refining, Westlake Chemical and Enersys. Heightened investor anxiety has impacted the deeper value stocks that are the portfolio’s focus. Deeper value stocks, characterized by low price to sales and book ratios, have underperformed for the year.

The market continues to disproportionately favor stocks deemed to have more secure near-term earnings and profitability, creating an opportunity for investors willing to take a longer-term perspective. Though we share investors’ concerns about the economic backdrop, we are finding companies that are overcoming this headwind by aggressively managing their businesses through this tumultuous period.

Independence Capital Management, Inc.

Investment Adviser

AllianceBernstein

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Financials		32.3	%
Technology		16.3	%
Consumer Discretionary		14.9	%
Industrials		10.6	%
Utilities		8.1	%
Energy		6.5	%
Consumer Staples		4.6	%
Healthcare		3.5	%
Materials		3.2	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Growth Fund

The Penn Series Small Cap Growth Fund returned 4.68% for the six-month period ending June 30, 2012, compared to the 8.81% return for its benchmark, the Russell 2000 Growth Index.

Year-to-date, stock selection in the information technology, consumer discretionary and financials sectors were the primary detractors from relative performance. Stock selection was positive in the energy, industrials and health care sectors.

Year-to-date, our largest contributor to relative performance is Zoll Medical. During the first quarter, Asahi Kasei announced a tender offer to buy Zoll for a 24% premium over the prior day’s closing price. In the third quarter of 2011, Zoll Medical sold off due to concerns that government reimbursement for its LifeVest product, an external wearable defibrillator, would be cut or limited. At that time, we aggressively bought into the weakness due to our conviction in physician support and utility of the product. IPG Photonics, maker of fiber lasers for industrial use, performed well as it experienced a strong rebound in product demand. The company announced a strong outlook that we believe will alleviate any remaining concerns regarding the company’s geographic exposure to the European and Asian markets. We continue to believe that the company is in the early stages of a highly secular new product cycle.

Our largest relative detractor from performance on a year-to-date basis is Acme Packet. During the second quarter, due to the continued pause in spending by telecommunication service provider customers, Acme Packet experienced excessive selling pressure based on lack of near-term visibility. We had anticipated this trend and continue to find the company’s market position and opportunity compelling. While it is not clear whether spending will re-accelerate in the second half of 2012 or early 2013, we believe that when it does, Acme Packet will be a significant beneficiary. As a result, we have added aggressively to the position based on the stock’s weakness.

During the second quarter, mortgage insurer MGIC Investment Corp. was among the Fund’s largest detractors. While we remain encouraged about gradual improvement in its business and an expected return to profitability in the next year, we became concerned about the company’s

decision to litigate against its largest customer, a government entity. This represented a significant enough change in our thesis to exit the position for the time being.

Our market outlook remains cautiously optimistic. Despite attractive valuations, the market has been focused on global macro concerns, which have been a headwind for fundamentally based investment strategies. We believe U.S. economic growth will remain tepid and the market will remain volatile until macro concerns subside. In this environment, we will continue to seek solid secular growth companies that are not reliant on economic growth to outperform the broad market. We firmly believe that company level fundamentals will once again reassert themselves as the drivers of equity performance, and that our conviction in the investments in the Fund remains unwavering. While recent relative performance has been a struggle, our discipline and understanding of how we add value over the long term has not changed. We are steadfast in our commitment to delivering strong results to our clients moving forward.

Independence Capital Management, Inc.

Investment Adviser

Allianz Global Investors Capital

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Technology		24.9	%
Industrials		19.5	%
Healthcare		14.9	%
Energy		14.5	%
Consumer Discretionary		14.1	%
Materials & Processing		6.0	%
Financials		3.5	%
Consumer Staples		1.6	%
Telecommunications		1.0	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Value Fund

The Penn Series Small Cap Value Fund returned 6.48% for the six-month period ending June 30, 2012, compared to the 8.23% return for its benchmark, the Russell 2000 Value Index.

Stock selection in the financials sector was challenged in the first quarter of 2012, driven by our holdings in Meadowbrook Insurance Group, a specialty insurance underwriter. Its shares declined as the company announced weak quarterly earnings, driven by reserve deficiencies within its sizeable workers’ compensation business. Health care holding, Team Health Holdings, which provides staffing and administrative services to hospitals, was also a bottom performing stock. After outperforming in during the fourth quarter of 2011, its shares declined due to higher operating costs and tax expenses. We view these as being short-term headwinds given this was temporary and driven by net new contract growth.

In the first quarter, stock selection in the Fund was the strongest in the information technology sector. Information technology holding, Parametric Technology positively contributed to returns, driven by a strong earnings announcement with better-than-expected results stemming from strong sales from Europe. Our stock selection in materials was also a strong positive contributor to performance during the first quarter. Materials holding, H.B. Fuller, a manufacturer of specialty chemicals, was a top contributor to returns, boosted by an accretive acquisition during the quarter and continued strong execution by management.

During the second quarter, the largest detractor from performance in the Fund was the consumer discretionary sector. Tempur-Pedic International was the top detractor from returns. Shares of the mattress producer fell as the company lowered its full-year guidance for revenue growth. Management indicated that the company is facing increased competition, particularly from specialty mattress shops. While we continue to believe that there is significant opportunity for gross profit margin expansion, we exited the position as our thesis may take longer to play out than originally expected.

Also at the stock level, shares of Key Energy Services came under pressure, along with the broader energy sector, after the company reported first quarter earnings and revenues that fell short of expectations. Management cited slower growth in U.S. natural gas and higher costs associated with gas and oil price dislocation. Despite these short-term headwinds, we continue to believe that Key Energy is well-positioned to benefit from the rapid growth of oil shale drilling in the U.S. During the second quarter,

our investments in health care contributed positively to returns. Lincare Holdings was the top overall contributor to performance in the sector. Its shares increased due to stronger-than-expected first quarter earnings and revenues, driven by expanded gross margins and lower operating expenses. Investors’ speculation surrounding an additional round of competitive bidding for the company provided further support. We continue to believe that Lincare Holdings should benefit from its exposure to an aging domestic population and further expansion into ancillary businesses.

Looking ahead into the rest of the year, while risks remain over the financial situation in Europe, geopolitical risk, and political uncertainty (especially in a U.S. election year), we remain cautiously optimistic on the U.S. equity market going forward. Companies continue to exhibit solid fundamentals and cash-rich balance sheets. As we gain clarity on some of these macro issues, we believe that this will provide further catalysts for management teams focused on returning value to shareholders through M&A, buybacks, dividends and deleveraging of balance sheets. While markets remain volatile, we believe that there remains an attractive risk-reward trade-off for small-cap stocks.

Independence Capital Management, Inc.

Investment Adviser

Goldman Sachs Asset Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Financials		36.9	%
Industrials		14.5	%
Technology		11.8	%
Consumer Discretionary		9.9	%
Utilities		7.3	%
Healthcare		6.2	%
Energy		4.9	%
Materials		4.9	%
Consumer Staples		3.1	%
Telecommunications		0.5	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Index Fund

The Penn Series Small Cap Index Fund returned 8.13% for the six-month period ending June 30, 2012, compared to the 8.53% return for its benchmark, the Russell 2000 Index.

Stocks in the U.S. began 2012 with an impressive uptrend, as ample liquidity and defensive positioning fostered persistent share buying. Quarterly earnings reports were solid, and a steady drumbeat of auspicious economic news, including declining jobless claims and rallying consumer confidence, provided an encouraging fundamental backdrop. The welcome signs of stronger activity even extended to the auto and housing industries. When the results of stress tests on major financial institutions arrived in mid-March, demonstrating that a solid majority of the largest banks could withstand even severe market dislocations, U.S. equities seemed to acquire additional cachet as a haven from funding strains in Europe and slowdown concerns in Asia.

Stocks stumbled in early April when March payroll figures came in much lower than expected, but another season of solid earnings reports allowed them to recover their equilibrium within the month. Alas, the stability quickly vanished when May brought a new set of soggy employment figures and elections in Europe fostered growing concerns that Greece might wind up leaving the eurozone. Although the turmoil overseas spurred a rally in the dollar that made U.S. equities global outperformers on an unhedged basis, and a steep retreat in oil prices promised welcome summer relief for many U.S. consumers, the May payroll gains that were reported on June 1 reminded investors that the U.S. economy was hardly a panacea. Share prices nevertheless began to find support as European authorities sought to assemble bailout mechanisms for the Spanish banking system and new measures from the U.S. Federal Reserve seemed increasingly likely. In the event, the Fed decided to extend Operation Twist, using its balance sheet to keep long yields low. Despite mild disappointment that the Fed did not announce more outright asset purchases, U.S. equities still ended the quarter strong after Europe outlined cooperative plans to recapitalize troubled eurozone banks.

Equity in larger U.S. companies performed best for most of the second quarter, but during June, as sluggish activity at home and banking turmoil in Europe drove hopes for more aggressive policy responses, stock in smaller firms began to attract renewed interest. Having broadly fizzled since they kicked off 2012 with several weeks of outperformance, secondary issues may have started signaling an

improvement in market conditions during the summer. The Russell 2000 Index began its relative rebound early enough to return 5.0% in June and outpace the S&P 500 for the month.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Financials		21.1	%
Technology		17.8	%
Industrials		15.0	%
Consumer Discretionary		13.8	%
Healthcare		13.2	%
Energy		6.1	%
Materials		4.7	%
Utilities		3.7	%
Consumer Staples		3.7	%
Telecommunications		0.9	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent broad industry sectors. Each industry sector consists of one or more specific industry classifications.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Developed International Index Fund

The Penn Series Developed International Index Fund returned 3.49% for the six-month period ending June 30, 2012, compared to the 3.38% return for its benchmark, the MSCI EAFE Index.

Stock markets around the world enjoyed strong rallies through January and February, rebounding nicely from the dismal sentiment and downbeat growth expectations that had prevailed into the end of 2011. But the steady progress for equities in the first two months of 2012 quickly turned to hesitation in early March, as tepid economic figures from Europe and Japan gave share buyers pause. A solid majority of EAFE markets lost ground during March, but only one finished the full first quarter in the red. The unfortunate laggard was MSCI Spain.

Stock markets outside the US endured a particularly volatile second quarter, slipping lower in April, tumbling in May, and then chopping through June before finishing with a celebratory surge. The epicenter of the challenges was the eurozone, where the liquidity injections of early 2012 began to lose their buzz in early April, and Spanish and Italian bond yields pushed higher again. The biggest losses and subsequent rebounds during the quarter came within the eurozone, but equities in the broader European region and the Pacific area as well mimicked the overall pattern. In total, the MSCI EAFE Index of developed market equities scored a 7.0% advance for June, but still showed a 7.1% loss for the second quarter as a whole. Still, the late June flurry was enough to get EAFE back into the black on a year-to-date basis.

All 10 EAFE sectors gained ground during the June rebound, with banks leading the financials to a strong 11.0% surge, and telecommunications services also climbing by double digits in the latest month. Cyclical sectors were well represented among the June underperformers, with materials and information technology faring the worst, but still adding more than 3% for the month. There was considerably greater differentiation for the second quarter as a whole. Materials and technology were still the laggards, hurt in turn by mining and hardware names that led these groups to respective three-month losses of 13.2% and 14.2%. Industrials, consumer discretionary, and energy each lagged EAFE by roughly two percentage points for the quarter, and financials were a milder underperformer. But consumer staples and telecommunications services only suffered small losses for the period, and the health care sector actually eked out a second-quarter gain of 0.8%. Consumer discretionary remains the sector leader on a year-to-date basis with a six-month return of 8.6%, and financials, consumer staples, and health care are also outperforming EAFE nicely. Energy is the poorest performing EAFE sector on a year-to-date basis, with a 5.4%

decline since the start of 2012, but materials and technology also remain firmly in negative territory.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Japan		22.1	%
United Kingdom		20.1	%
Switzerland		8.7	%
Australia		8.7	%
France		8.7	%
Germany		7.9	%
Netherlands		4.9	%
Hong Kong		3.1	%
Sweden		3.0	%
Spain		2.7	%
Italy		2.0	%
Singapore		1.8	%
Denmark		1.1	%
Belgium		1.1	%
Finland		0.7	%
Norway		0.7	%
Ireland		0.7	%
Israel		0.6	%
Luxembourg		0.4	%
Austria		0.3	%
United States		0.1	%
Portugal		0.1	%
Greece		0.1	%
Bermuda		0.1	%
China		0.1	%
Jersey		0.1	%
New Zealand		0.1	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent the countries in which the securities are denominated.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

International Equity Fund

The Penn Series International Equity Fund returned 7.68% for the six-month period ending June 30, 2012, compared to the 3.38% return for its benchmark, the MSCI EAFE Index.

The Euro crisis re-ignited early in the period. Spain’s recession deepened, its sovereign debt rating fell, and Spanish bond yields popped. The need for a Spanish bank bailout intensified and market concern about the stability of the eurozone increased. Pushed ever closer to the brink, eurozone leaders moved beyond political posturing and agreed, during a late-quarter summit, that rescue funds could be used to recapitalize troubled eurozone banks. This was hailed as a first step toward a potential “banking union,” which would harmonize banking regulation and oversight across the eurozone. We think it is a positive move, which demonstrates that the eurozone can and will take action when pushed far enough. Risk in the region remains high and one or more countries may ultimately exit the European Union (EU). However, we have become greater believers in the resolve of the EU and its commitment to surviving over the longer term, both politically and functionally, no matter how painful or occasionally illogical that journey may be.

The Fund’s overweight exposure to the consumer staples sector helped relative performance during the period. Stock selection and limited exposure to the cyclical industrial sector helped performance during the period. The Fund’s underweight to the consumer discretionary sector hurt performance during the period.

Novo Nordisk, Philip Morris International, and HDFC BANK helped performance during the period and Tesco, Valeant Pharmaceuticals and Newcrest Mining detracted from performance during the period.

The Fund has had little exposure to financial companies during the past few years. During the period, our research identified some attractive opportunities, and we decided that it was a good time to dip back into the sector. We added UBS in Switzerland and HSBC in the United Kingdom to the Fund.

UBS is the second largest bank in Europe and the largest manager of private wealth assets in the world. Swiss regulatory rules are among the most stringent in the world, and UBS’s Tier 1 capital ratio stands at about 18.7%. Given that the bank is trading at a significant discount to its tangible book value, and that the ongoing businesses will continue to grow and generate significant earnings streams, we believe there is sufficient margin of error to weather what could be a bumpy ride over the medium term. HSBC has a strong core Tier 1 ratio of 10.4% under today’s more stringent post-crisis definition. The bank has

a large, liquid securities portfolio, with minimal exposure to peripheral European countries.

A cloud of uncertainty continues to hang over world markets. Economic growth has slowed in the U.S., and concern about its fiscal cliff — and the potential effect on the economy — is growing. Recent cooperation among eurozone leaders was heartening, but we expect Europe ultimately will be pushed to the brink before any type of resolution is reached. Economic weakness and lack of decisive action by leaders in developed countries have affected growth in the developing world and are likely to continue to do so. The silver lining is that uncertainty and volatility create opportunities for investors like us. We continue to focus on underlying growth drivers, profitability, and earnings potential, as we pursue our objective: outperformance over full market cycles.

Independence Capital Management, Inc.

Investment Adviser

Vontobel Asset Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
United Kingdom		25.4	%
India		13.0	%
Switzerland		8.9	%
Netherlands		8.2	%
United States		7.4	%
France		6.3	%
Canada		5.5	%
Denmark		3.6	%
Belgium		3.0	%
Australia		2.6	%
Brazil		2.5	%
Mexico		2.5	%
China		2.5	%
Japan		2.2	%
Germany		2.1	%
Ireland		1.7	%
Hong Kong		1.5	%
Columbia		1.1	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent the countries in which the securities are denominated.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Emerging Markets Equity Fund

The Penn Series Emerging Markets Equity Fund returned 5.91% for the six-month period ending June 30, 2012, compared to its benchmarks the MSCI Emerging Markets Index’s return of 4.12%.

Despite the early year rally in cyclicals, we have maintained our conviction that markets are still restrained by an overarching secular bear market, as illustrated by the additional spike in cross-asset return correlations. This year has seen a continued rise in correlations across such varied asset classes as developed and emerging markets debt and equity, commodities, and currencies in both developed and emerging markets. In our view, high correlations underscore the structural problems burdening much of the developed world, including rising leverage in much of Europe and Japan even as the US has marginally chipped away at its own high debt levels. In our view, markets have been behaving consistently with their historic patterns shown in other major secular bear markets.

We do, however, see some encouraging signs that investors are beginning to pay attention to the fundamental differences between countries and companies. The unusually high correlation between equities and commodities shown in the years since the global financial crisis of 2008 has begun to show some signs of breaking down since October.

We have long positioned the Fund with the expectation that China cannot sustain either its high growth levels of the past decade or its appetite for commodities. With most developed countries struggling to recover and credit less accessible than it was in the last decade, we believe emerging markets are entering an era that will be marked by more moderate gross domestic product (GDP) growth of about 5% on average, more volatile business cycles and the gradual breakup of the herd behavior that has marked the last several years. As investors increasingly pay greater attention to the fundamentals distinguishing one country from another, country allocation decisions will be better rewarded.

We remain focused on seeking sources of healthy, secular growth in the Fund. We maintain our overweight to the countries with resilient or growing domestic demand and underpenetrated credit markets. We continue to favor countries where political reform, rising GDP per capita and productivity gains support growth and healthy company earnings. We tend to favor countries whose current account balances should benefit from an eventually declining cost of their energy import bills.

We are overweight the Philippines, Indonesia, Thailand, Turkey and South Korea. Our country allocations decisions give consideration to a country’s currency valuations. South Korea’s currency is relatively undervalued, having become more competitive over the past decade and thus supportive for selective exports of automobiles and electronics consumer goods. By contrast, currencies in Brazil and Russia have more than doubled in value over the past decade, gaining from the sharp rise in energy and commodities prices since 2000. This has reduced the competiveness of their exporting sectors. Our largest relative country underweights are China, Brazil and Taiwan. We are also underweight Russia and South Africa, where we are concerned about deteriorating political and macro developments.

At the bottom-up level, the Fund is overweight companies in the consumer staples and discretionary sectors in cases where the companies are growing market share and delivering stable or improving earnings and attractive return on equity. While we are underweight financials relative to the index, we nevertheless have approximately 18% of the Fund in financials — primarily banks and particularly in countries where credit penetration is low but likely to grow based on rising GDP per capita.

Independence Capital Management, Inc.

Investment Adviser

Morgan Stanley Investment Management

Investment Sub-Adviser

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
South Korea		15.9	%
Brazil		8.7	%
China		8.6	%
India		8.2	%
Taiwan		7.0	%
Indonesia		5.4	%
Phillippines		5.4	%
Mexico		4.7	%
Turkey		4.3	%
South Africa		4.1	%
Thailand		3.8	%
Russia		3.2	%
Malaysia		2.9	%
United States		2.9	%
Chile		2.7	%
Hong Kong		2.6	%
Poland		2.4	%
Peru		1.7	%
United Kingdom		1.3	%
Portugal		1.1	%
Japan		1.0	%
Hungary		0.8	%
Qatar		0.5	%
Switzerland		0.5	%
Cyprus		0.3	%

		100.0	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments. The categories shown represent the countries in which the securities are denominated.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Real Estate Securities Fund

The Penn Series Real Estate Securities Fund returned 13.58% for the six-month period ending June 30, 2012, compared to the 14.91% return for its benchmark, the FTSE NAREIT Equity REIT Index.

U.S. real estate securities advanced in the first half of 2012 and outperformed the broader equity market. After a strong start, the pace of the rally cooled in the second quarter amid slowing economic growth with more-modest job creation. In a less-certain economic environment, investors appeared to favor REITs for their relatively stable lease-based cash flows and access to capital at historically attractive terms.

All property sectors advanced, led by owners of regional malls. The group was aided by good earnings reports from leading companies and continued sales growth from mall tenants broadly. Simon Property Group reported first-quarter earnings that grew 13% compared with the first quarter of 2011, and announced a 5% dividend increase. Simon also acquired a 29% stake in Klépierre, a French retail landlord majority-owned by BNP Paribas.

Office REITs saw stronger-than-expected demand on the West Coast and in Manhattan. SL Green Realty was a standout, announcing one of the largest lease deals in New York City history with media tenant Viacom. In the diversified sector, data-center operator Digital Realty Trust announced the purchase of three facilities near London. Similar to Simon Property Group’s venture into Europe, this was an example of a U.S. company using its low cost of capital to acquire attractively priced, higher-yielding European assets.

The typically cyclical hotel sector performed broadly in line with the typically defensive health care property sector, alternating leadership in the first and second quarters, respectively. Apartment REITs underperformed, as improving sentiment in the single-family housing market prompted concerns of slower cash flow growth in the rental market.

The Fund had a positive total return for the period, but underperformed its benchmark. Stock selection in the hotel sector detracted from relative performance. Our holdings included out-of-index companies with operations in Europe that underperformed in the period. We believe they have good fundamentals, although revenue growth in dollar terms has been hindered recently by weakness in the euro. In the industrial sector we were overweight Prologis, which had a sizable absolute gain but trailed smaller industrial property stocks that had larger rebounds. Our underweight in the health care sector also detracted from relative returns.

Factors that aided relative performance included stock selection among shopping center companies and our

overweight in regional malls, specifically Simon Property Group. Stock selection in the apartment sector modestly benefited relative returns.

Recent disappointments in employment reports notwithstanding, we continue to expect slow but steady growth, with modest job creation. Such an environment should allow for incremental gains in demand for real estate companies and continued low financing costs as interest rates remain low. Fundamentals in most sectors should also be supported by only gradual additions to supply, to the potential benefit of property-level cash flow growth.

Recent property transactions have largely confirmed our value estimates, but we continue to carefully evaluate our inputs. We have a modest cyclical lean (overweight in hotel and industrial companies), but with a defensive component in the Fund. We have a generally favorable view of key office markets, including life sciences, technology and media, as well as New York offices broadly. We are marginally underweight apartments based on valuations and improved statistics for single-family homes, although we are monitoring the group for buying opportunities based on its relative underperformance versus other property sectors. We continue to favor prime retail owners, while staying cautious toward health care properties, suburban offices and secondary retail.

Independence Capital Management, Inc.

Investment Adviser

Cohen & Steers Capital Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/12


	Percent of Total Investments¹
Regional Malls		20.8	%
Apartments		16.9	%
Diversified		15.1	%
Office Property		10.5	%
Healthcare		8.3	%
Storage & Warehousing		7.4	%
Hotels and Resorts		6.9	%
Industrial		6.5	%
Strip Centers		4.2	%
Building & Real Estate		2.5	%
Manufactured Homes		1.0	%

		100.1	%

¹	Portfolio holdings are presented as a percentage of total investments before short-term investments.

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Aggressive Allocation Fund

The Penn Series Aggressive Allocation Fund returned 6.89% for the six-month period ending June 30, 2012, compared to its benchmarks, the Russell 3000 Index’s return of 10.40% and the Barclays Capital U.S. Aggregate Bond Index’s return of 2.37% for the same time period.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/12


International Stocks	21.0	%
Large Cap Value Stocks	19.0	%
Large Growth Stocks	16.0	%
Mid Cap Value Stocks	8.0	%
Emerging Markets	8.0	%
Mid Cap Growth Stocks	7.0	%
Small Cap Value Stocks	6.0	%
Small Cap Growth Stocks	5.0	%
REITs	5.0	%
Intermediate Bonds	5.0	%

	100.0	%

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderately Aggressive Allocation Fund

The Penn Series Moderately Aggressive Allocation Fund returned 6.22% for the six-month period ending June 30, 2012, compared to its benchmarks, the Russell 3000 Index’s return of 10.40% and the Barclays Capital U.S. Aggregate Bond Index’s return of 2.37% for the same time period.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/12


Large Cap Value Stocks	17.0	%
International Stocks	17.0	%
Large Growth Stocks	13.0	%
Intermediate Bonds	13.0	%
Mid Cap Value Stocks	7.0	%
Emerging Markets	7.0	%
Mid Cap Growth Stocks	6.0	%
Short Term Bonds	5.0	%
Small Cap Value Stocks	5.0	%
Small Cap Growth Stocks	4.0	%
REITs	4.0	%
High Yield Bonds	2.0	%

	100.0	%

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderate Allocation Fund

The Penn Series Moderate Allocation Fund returned 5.09% for the six-month period ending June 30, 2012, compared to its benchmarks, the Russell 3000 Index’s return of 10.40% and the Barclays Capital U.S. Aggregate Bond Index’s return of 2.37% for the same time period.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/12


Intermediate Bonds	21.0	%
Large Cap Value Stocks	13.0	%
International Stocks	13.0	%
Short Term Bonds	12.0	%
Large Growth Stocks	10.0	%
Mid Cap Value Stocks	5.0	%
Emerging Markets	5.0	%
Small Cap Value Stocks	4.0	%
High Yield Bonds	4.0	%
Mid Cap Growth Stocks	4.0	%
Cash Equivalents	3.0	%
Small Cap Growth Stocks	3.0	%
REITs	3.0	%

	100.0	%

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderately Conservative Allocation Fund

The Penn Series Moderately Conservative Allocation Fund returned 4.01% for the six-month period ending June 30, 2012, compared to its benchmarks, the Russell 3000 Index’s return of 10.40% and the Barclays Capital U.S. Aggregate Bond Index’s return of 2.37% for the same time period.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/12


Intermediate Bonds	29.0	%
Short Term Bonds	20.0	%
Large Cap Value Stocks	10.0	%
International Stocks	9.0	%
Large Growth Stocks	7.0	%
High Yield Bonds	6.0	%
Cash Equivalents	5.0	%
Mid Cap Value Stocks	4.0	%
Emerging Markets	2.0	%
Mid Cap Growth Stocks	2.0	%
REITs	2.0	%
Small Cap Growth Stocks	2.0	%
Small Cap Value Stocks	2.0	%

	100.0	%

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Conservative Allocation Fund

The Penn Series Conservative Allocation Fund returned 2.79% for the period ending June 30, 2012, compared to its benchmarks, the Russell 3000 Index’s return of 10.40% and the Barclays Capital U.S. Aggregate Bond Index’s return of 2.37% for the same time period.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/12


Intermediate Bonds	37.0	%
Short Term Bonds	25.0	%
Cash Equivalents	10.0	%
High Yield Bonds	8.0	%
Large Cap Value Stocks	7.0	%
Large Growth Stocks	5.0	%
International Stocks	5.0	%
Mid Cap Value Stocks	2.0	%
Mid Cap Growth Stocks	1.0	%

	100.0	%

Important Information about Fund Expenses

Hypothetical Examples of a $1,000 Investment (Unaudited)

We believe that it is important for you to understand the effect of fees on your investment. All mutual funds have operating expenses. As a participant in any of the Penn Series Funds, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund. A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio.

The Penn Series Funds are the underlying investment vehicles for the variable life and variable annuity contracts issued by The Penn Mutual Life Insurance Company and its subsidiary, The Penn Insurance and Annuity Company. These contracts have transaction costs, additional administrative expense fees and mortality and expense risk charges. Because of these additional expenses, the costs to investors will be higher than the figures shown in the following expense examples. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in each fund and to compare these costs with the ongoing costs of investing in other funds.

These examples are based on an investment of $1,000 invested for six months beginning January 1, 2012 and held through June 30, 2012. The examples illustrate your fund’s costs in two ways:

•

Actual Fund Performance in the table below provides information about actual account values and actual expenses. The “Ending Value” shown is derived from the fund’s actual return, and “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

•

Hypothetical 5% Annual Return is intended to help you compare your fund’s costs with those of other mutual funds. It assumes that the fund had a return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case — because the return used is not the fund’s actual return — the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s cost by comparing this hypothetical example with the hypothetical examples that appear in shareholders reports of other funds. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

Please note that the expenses shown in the table are only meant to highlight and help you compare your ongoing costs of investing in the funds and do not reflect any fees and charges deducted under your insurance contract. The “Annualized Expense Ratio” represents the actual expenses for the six-month period indicated.

Disclosure of Fund Expenses

For the Period January 1, 2012 to June 30, 2012

Expense Table


	Beginning Value 1/1/12		Ending Value 6/30/12		Annualized Expense Ratio		Expenses Paid During Period *
Money Market Fund
Actual		$1,000.00		$1,000.10		0.22%		$1.09
Hypothetical		$1,000.00		$1,023.76		0.22%		$1.11
Limited Maturity Bond Fund
Actual		$1,000.00		$1,003.50		0.58%		$2.89
Hypothetical		$1,000.00		$1,021.94		0.58%		$2.92

Important Information about Fund Expenses

Hypothetical Examples of a $1,000 Investment (Unaudited)


	Beginning Value 1/1/12		Ending Value 6/30/12		Annualized Expense Ratio		Expenses Paid During Period *
Quality Bond Fund
Actual		$1,000.00		$1,123.80		0.57%		$2.86
Hypothetical		$1,000.00		$1,021.99		0.57%		$2.87
High Yield Bond Fund
Actual		$1,000.00		$1,066.50		0.83%		$4.26
Hypothetical		$1,000.00		$1,020.68		0.83%		$4.18
Flexibly Managed Fund
Actual		$1,000.00		$1,070.30		0.84%		$4.32
Hypothetical		$1,000.00		$1,020.63		0.84%		$4.23
Balanced Fund
Actual		$1,000.00		$1,064.90		0.19%		$0.98
Hypothetical		$1,000.00		$1,023.91		0.19%		$0.96
Large Growth Stock Fund
Actual		$1,000.00		$1,132.90		0.92%		$4.88
Hypothetical		$1,000.00		$1,020.23		0.92%		$4.63
Large Cap Growth Fund
Actual		$1,000.00		$1,072.60		0.89%		$4.59
Hypothetical		$1,000.00		$1,020.38		0.89%		$4.48
Large Core Growth Fund
Actual		$1,000.00		$1,080.70		0.90%		$4.75
Hypothetical		$1,000.00		$1,020.33		0.90%		$4.53
Large Cap Value Fund
Actual		$1,000.00		$1,045.60		0.88%		$4.48
Hypothetical		$1,000.00		$1,020.43		0.88%		$4.43
Large Core Value Fund
Actual		$1,000.00		$1,080.70		0.89%		$4.60
Hypothetical		$1,000.00		$1,020.38		0.89%		$4.48
Index 500 Fund
Actual		$1,000.00		$1,093.00		0.35%		$1.82
Hypothetical		$1,000.00		$1,023.10		0.35%		$1.76
Mid Cap Growth Fund
Actual		$1,000.00		$1,050.20		1.00%		$5.10
Hypothetical		$1,000.00		$1,019.83		1.00%		$5.03
Mid Cap Value Fund
Actual		$1,000.00		$1,067.80		0.85%		$4.37
Hypothetical		$1,000.00		$1,020.58		0.85%		$4.28
Mid Core Value Fund
Actual		$1,000.00		$1,036.60		1.07%		$5.42
Hypothetical		$1,000.00		$1,019.48		1.07%		$5.39
SMID Cap Growth Fund
Actual		$1,000.00		$1,109.10		1.05%		$5.51
Hypothetical		$1,000.00		$1,019.58		1.05%		$5.29

Important Information about Fund Expenses

Hypothetical Examples of a $1,000 Investment (Unaudited)


	Beginning Value 1/1/12		Ending Value 6/30/12		Annualized Expense Ratio		Expenses Paid During Period *
SMID Cap Value Fund
Actual		$1,000.00		$1,070.30		1.14%		$5.87
Hypothetical		$1,000.00		$1,019.12		1.14%		$5.74
Small Cap Growth Fund
Actual		$1,000.00		$1,046.80		1.09%		$5.55
Hypothetical		$1,000.00		$1,019.38		1.09%		$5.49
Small Cap Value Fund
Actual		$1,000.00		$1,064.80		1.15%		$5.90
Hypothetical		$1,000.00		$1,019.07		1.15%		$5.79
Small Cap Index Fund
Actual		$1,000.00		$1,081.30		0.55%		$2.85
Hypothetical		$1,000.00		$1,022.09		0.55%		$2.77
Developed International Index Fund
Actual		$1,000.00		$1,034.90		0.59%		$2.99
Hypothetical		$1,000.00		$1,021.89		0.59%		$2.97
International Equity Fund
Actual		$1,000.00		$1,076.80		1.18%		$6.09
Hypothetical		$1,000.00		$1,018.92		1.18%		$5.94
Emerging Markets Equity Fund
Actual		$1,000.00		$1,059.10		1.68%		$8.60
Hypothetical		$1,000.00		$1,016.41		1.68%		$8.46
Real Estate Securities Fund
Actual		$1,000.00		$1,135.80		1.01%		$5.36
Hypothetical		$1,000.00		$1,019.78		1.01%		$5.08
Aggressive Allocation Fund
Actual		$1,000.00		$1,068.90		0.33%		$1.70
Hypothetical		$1,000.00		$1,023.20		0.33%		$1.66
Moderately Aggressive Allocation Fund
Actual		$1,000.00		$1,062.20		0.32%		$1.64
Hypothetical		$1,000.00		$1,023.25		0.32%		$1.61
Moderate Allocation Fund
Actual		$1,000.00		$1,050.90		0.32%		$1.63
Hypothetical		$1,000.00		$1,023.25		0.32%		$1.61
Moderately Conservative Allocation Fund
Actual		$1,000.00		$1,040.20		0.33%		$1.67
Hypothetical		$1,000.00		$1,023.20		0.33%		$1.66
Conservative Allocation Fund
Actual		$1,000.00		$1,027.90		0.33%		$1.66
Hypothetical		$1,000.00		$1,023.20		0.33%		$1.66

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Money Market Fund


	Par (000)		Value†
AGENCY OBLIGATION — 0.6%
FNMA
0.010%, 07/02/12 (Cost $900,000)	$	900	$	900,000

COMMERCIAL PAPER — 52.2%
Aerospace & Defense — 1.4%
Honeywell International, Inc. 0.250%, 09/25/12		2,000		1,998,819

Banks — 0.2%
Bank of Nova Scotia 0.080%, 07/02/12		250		250,000

Beverages — 4.5%
Coca-Cola Co. 0.190%, 09/11/12		1,400		1,399,475
0.200%, 09/18/12		2,000		1,999,133
0.210%, 10/05/12		3,000		2,998,338

				6,396,946

Biotechnology — 0.5%
Celgene Corp. 0.430%, 07/12/12		700		699,916

Chemicals — 2.2%
E.I. Du Pont de Nemours & Co. 0.210%, 09/12/12		2,000		1,999,160
The Sherwin-Williams Co. 0.130%, 07/02/12		1,200		1,200,000

				3,199,160

Diversified Financial Services — 21.6%
BP Capital Markets Plc
0.230%, 08/20/12		1,100		1,099,656
0.350%, 11/15/12		800		798,942
Covidien International Finance S.A. 0.450%, 08/01/12		5,000		4,998,125
ENI Finance USA, Inc. 0.500%, 07/02/12		1,000		1,000,000
Nestlé Finance International Ltd. 0.180%, 08/28/12		3,000		2,999,145
Novartis Finance Corp. 0.190%, 10/09/12		3,000		2,998,432
Reckitt & Benckiser Treasury Services Plc 0.220%, 08/29/12		1,000		999,646
0.650%, 09/06/12		1,150		1,148,630
0.300%, 10/25/12		2,900		2,897,221
Total Capital Canada Ltd. 0.190%, 08/09/12		2,800		2,799,438
0.260%, 10/26/12		1,000		999,162
Toyota Motor Credit Corp. 0.280%, 11/08/12		2,800		2,797,191
0.290%, 11/08/12		2,000		1,997,922
WGL Holdings, Inc. 0.230%, 07/02/12		3,000		3,000,000
0.300%, 07/12/12		440		439,963

				30,973,473


	Par (000)		Value†

Electric — 10.3%
Basin Electric Power Cooperative 0.180%, 07/18/12	$	3,000	$	2,999,760
Electricite de France 0.430%, 07/03/12		1,400		1,399,983
0.360%, 07/23/12		1,000		999,790
Florida Power & Light Co. 0.260%, 07/12/12		2,055		2,054,852
IDACORP, Inc 0.450%, 07/10/12		676		675,932
Oglethorpe Power Corp. 0.280%, 07/09/12		2,100		2,099,886
0.320%, 07/11/12		500		499,960
Southern Co.
0.200%, 07/06/12		1,000		999,978
0.210%, 07/31/12		3,000		2,999,492

				14,729,633

Food — 0.5%
ConAgra Foods, Inc. 0.290%, 07/02/12		700		700,000

Gas — 4.9%
San Diego Gas & Electric Co. 0.140%, 07/02/12		7,000		7,000,000

Healthcare Products — 1.8%
Baxter International, Inc. 0.250%, 07/17/12		2,525		2,524,983

Oil & Gas — 2.7%
ConocoPhillips 0.130%, 07/02/12		435		435,000
0.230%, 09/13/12		2,000		1,999,067
Duke Energy Corp. 0.420%, 07/16/12		725		724,882
Enbridge Energy Co., Inc. 0.430%, 07/27/12		700		699,791

				3,858,740

Oil & Gas Services — 0.5%
TransCanada Pipelines Ltd. 0.450%, 07/17/12		700		699,869
Retail — 1.1%
Hudson’s Bay Co. 0.180%, 08/14/12		1,600		1,599,656

TOTAL COMMERCIAL PAPER (Cost $74,631,195)				74,631,195

FOREIGN GOVERNMENT SECURITIES — 1.1%
Province of Ontario 5.125%, 07/17/12 (Cost $1,520,967)		1,518		1,520,967

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Money Market Fund


	Par (000)		Value†
CORPORATE BONDS — 3.3%
Banks — 0.7%
American Express Centurion Bank 5.550%, 10/17/12	$	1,000	$	1,013,746

Diversified Financial Services — 0.5%
Wells Fargo Financial, Inc. 5.500%, 08/01/12		779		782,232

Insurance — 2.1%
Metropolitan Life Global Funding I @ 2.875%, 09/17/12		625		628,144
New York Life Global Funding @ 5.250%, 10/16/12		2,300		2,332,727

				2,960,871

TOTAL CORPORATE BONDS (Cost $4,756,849)				4,756,849

MUNICIPAL NOTES — 41.0%
California Housing Finance Agency 0.170%, 08/01/36•		2,000		2,000,000
City of Minneapolis 0.180%, 12/01/27•		2,290		2,290,000
Colorado Housing & Finance Authority 0.160%, 05/01/22•		2,600		2,600,000
0.160%, 10/01/30•		2,800		2,800,000
0.190%, 04/01/43•		1,325		1,325,000
Idaho Housing & Finance Association
0.160%, 01/01/38•		4,000		4,000,000
0.180%, 01/01/40•		4,240		4,240,000
Iowa Finance Authority
0.190%, 07/01/34•		1,405		1,405,000
0.190%, 01/01/39•		2,300		2,300,000
Kansas State Department of Transportation 0.150%, 09/01/22•		3,100		3,100,000
Michigan State Housing Development Authority 0.180%, 06/01/39•		4,700		4,700,000
Minnesota Housing Finance Agency 0.180%, 07/01/36•		4,000		4,000,000
Pennsylvania Turnpike Commission 0.350%, 07/15/41•		5,000		5,000,000
South Dakota Housing Development Authority 0.190%, 05/01/39•		5,000		5,000,000
State of Texas 0.200%, 12/01/29•		4,000		4,000,000
Triborough Bridge & Tunnel Authority 0.500%, 01/01/19•		3,000		3,000,000
Wisconsin Housing & Economic Development Authority 0.170%, 09/01/22•		4,000		4,000,000
0.280%, 05/01/34•		2,870		2,870,000

Total MUNICIPAL NOTES (Cost $58,630,000)				58,630,000


	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.8%
BlackRock Liquidity Funds MuniFund Portfolio - Institutional Shares		1	$	1
BlackRock Liquidity Funds TempFund - Institutional Shares		1		1
Federated Prime Obligations Fund - Class I		1		1
Fidelity Institutional Prime Money Market Portfolio		2,605,401		2,605,401
Fidelity Institutional Prime Money Market Portfolio - Class I		1		1
Wells Fargo Advantage Heritage Money Market Fund - Institutional Class		1		1
Wells Fargo Advantage Municipal Cash Management Money Market Fund -Institutional Class		1		1

TOTAL SHORT-TERM INVESTMENTS (Cost $2,605,407)				2,605,407

TOTAL INVESTMENTS — 100.0% (Cost $143,044,418)			$	143,044,418

†	See Security Valuation Note.

•	Variable Rate Security.

Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “accredited investors”. Unless otherwise indicated, the security is considered liquid.

Plc — Public Limited Company.


Maturity Schedule	Market Value		% of Portfolio		(Cumulative)
1 — 7 days	$	34,431,338		24.1%		24.1%
8 — 14 days		1,699,581		1.2%		25.3%
15 — 30 days		11,579,287		8.1%		33.4%
31 — 60 days		13,486,208		9.4%		42.8%
61 — 90 days		14,621,093		10.2%		53.0%
91 — 120 days		12,037,969		8.4%		61.4%
121 — 150 days		798,942		0.6%		62.0%
over 150 days		54,390,000		38.0%		100.0%


	$	143,044,418		100.0%

Average Weighted Maturity — 32 days

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Money Market Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMERCIAL PAPER	$	74,631,195	$	—	$	74,631,195	$	—
AGENCY OBLIGATION		900,000		—		900,000		—
CORPORATE BONDS		4,756,849		—		4,756,849		—
MUNI NOTES		58,630,000		—		58,630,000		—
FOREIGN GOVERNMENT SECURITIES		1,520,967		—		1,520,967		—
SHORT-TERM INVESTMENTS		2,605,407		2,605,407		—		—

TOTAL INVESTMENTS	$	143,044,418	$	2,605,407	$	140,439,011	$	—

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of the financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Limited Maturity Bond Fund


	Par (000)		Value†
AGENCY OBLIGATIONS — 10.5%
Federal Home Loan Mortgage Corporation — 1.1%
1.375%, 02/25/14	$	2,000	$	2,033,670

Federal National Mortgage Association — 9.4%
0.375%, 12/28/12		6,700		6,707,732
0.500%, 08/09/13		2,000		2,004,766
1.000%, 09/23/13		2,000		2,016,658
0.750%, 12/18/13		7,000		7,046,256

				17,775,412

TOTAL AGENCY OBLIGATIONS (Cost $19,684,336)				19,809,082

ASSET BACKED SECURITIES — 7.5%
Cabela’s Master Credit Card Trust 0.772%, 02/18/20 @•		3,000		3,011,088
Chase Issuance Trust 0.492%, 04/15/19 •		2,398		2,372,947
Conseco Financial Corp. 7.650%, 04/15/19		63		66,220
Enterprise Mortgage Acceptance Co. LLC 144A 7.565%, 01/15/27 @•~		462		367,280
Equity One ABS, Inc. 4.145%, 04/25/34 •		14		13,771
FDIC Trust 2012-C1 A 0.841%, 05/25/35 ~		2,910		2,909,220
GE Capital Credit Card Master Note Trust 1.092%, 09/15/16 •		1,400		1,403,934
0.950%, 06/15/18		2,000		1,999,471
Hyundai Auto Lease Securitization Trust 2011-A 144A 0.920%, 08/17/15 @		1,500		1,501,003
Popular ABS Mortgage Pass-Through Trust 4.628%, 09/25/34 •		16		15,984
SACO I, Inc. 144A 1.145%, 06/25/35 @•		494		410,488

TOTAL ASSET BACKED SECURITIES (Cost $14,173,550)				14,071,406

COMMERCIAL MORTGAGE BACKED SECURITIES — 1.2%
Bear Stearns Commercial Mortgage Securities 5.571%, 03/11/39 •		978		980,710
Federal Express Corp. 2012 Pass Through Trust 144A 2.625%, 01/15/18 @		1,000		998,150
JPMorgan Chase Commercial Mortgage Securities Corp. 4.545%, 01/15/42		274		274,067

TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $2,249,799)				2,252,927


	Par (000)		Value†
CORPORATE BONDS — 16.0%
Aerospace & Defense — 1.1%
Raytheon Co. 1.400%, 12/15/14	$	1,000	$	1,014,592
United Technologies Corp. 1.200%, 06/01/15		1,000		1,011,637

				2,026,229

Banks — 4.9%
Bank of Montreal 144A 2.850%, 06/09/15 @		1,000		1,058,240
Bank of Nova Scotia 144A 1.050%, 03/20/15 @		1,000		1,006,546
Canadian Imperial Bank of Commerce 144A 2.000%, 02/04/13 @		3,000		3,027,687
Commonwealth Bank of Australia 144A 3.492%, 08/13/14 @		1,000		1,056,824
The Toronto-Dominion Bank 144A 1.625%, 09/14/16 @		2,000		2,037,112
Westpac Banking Corp. 144A 3.585%, 08/14/14 @		1,000		1,054,521

				9,240,930

Beverages — 0.6%
The Coca-Cola Co. 1.800%, 09/01/16		1,000		1,027,077

Computers — 0.6%
Google, Inc. 2.125%, 05/19/16		1,000		1,043,747

Diversified Financial Services — 4.9%
Caisse Centrale Desjardins du Quebec 144A 2.550%, 03/24/16 @		3,000		3,157,362
General Electric Capital Corp 2.300%, 04/27/17		1,000		1,006,761
General Electric Capital Corp. 2.625%, 12/28/12		4,000		4,045,536
Toyota Motor Credit Corp. 1.000%, 02/17/15		1,000		1,001,184

				9,210,843

Energy-Alternate Sources — 0.5%
BP Capital Markets Plc 1.700%, 12/05/14		1,000		1,015,083

Food — 0.3%
General Mills, Inc. 5.650%, 09/10/12		500		504,416

Insurance — 0.5%
Metropolitan Life Global Funding I 144A 2.000%, 01/09/15 @		1,000		1,014,654

Investment Companies — 0.5%
USAA Capital Corp. 144A 2.250%, 12/13/16 @		1,000		1,020,360

Mining — 0.5%
BHP Billiton Finance USA Ltd. 1.125%, 11/21/14		1,000		1,005,844

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2011 (Unaudited)

Limited Maturity Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Oil & Gas — 0.5%
SeaRiver Maritime, Inc. 0.000%, 09/01/12+	$	1,000	$	994,226

Pharmaceuticals — 1.1%
Teva Pharmaceutical Finance IV LLC 1.700%, 11/10/14		1,000		1,020,272
Zimmer Holdings, Inc. 1.400%, 11/30/14		1,000		1,002,685

				2,022,957

TOTAL CORPORATE BONDS (Cost $29,583,295)				30,126,366

MUNICIPAL NOTE — 0.6%
Regional — 0.6%
Province of British Columbia 2.850%, 06/15/15 (Cost $999,685)		1,000		1,063,340

RESIDENTIAL MORTGAGE BACKED SECURITIES — 5.1%
Collateralized Mortgage Obligations — 4.1%
Fannie Mae REMICs 0.645%, 11/25/39•		7,797		7,792,062

Fannie Mae Pool — 1.0%
4.000%, 06/01/20		545		579,478
2.707%, 12/01/33•		745		797,612
2.875%, 04/01/34•		239		254,305
2.485%, 07/01/36•		229		243,061

				1,874,456

TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $9,583,452)				9,666,518

U.S. TREASURY OBLIGATIONS — 50.5%
U.S. Treasury Note 0.375%, 06/30/13		6,500		6,507,871
4.250%, 08/15/13		6,500		6,789,451
3.125%, 08/31/13		3,000		3,099,258
0.750%, 09/15/13		6,750		6,788,232
0.500%, 10/15/13		5,000		5,013,670
4.250%, 11/15/13		3,100		3,267,230
0.250%, 11/30/13		5,000		4,996,680
0.125%, 12/31/13		5,000		4,986,720
1.750%, 01/31/14		2,000		2,045,234
1.750%, 03/31/14		5,000		5,123,440
1.875%, 04/30/14		5,650		5,808,906
2.375%, 09/30/14		3,000		3,136,875
4.250%, 11/15/14		12,100		13,206,013
2.250%, 01/31/15		730		764,903
4.000%, 02/15/15		7,850		8,585,325
0.375%, 04/15/15		15,000		14,989,455

TOTAL U.S. TREASURY OBLIGATIONS (Cost $93,208,783)				95,109,263


	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 8.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		10,212,108	$	10,212,108
BlackRock Liquidity Funds TempFund - Institutional Shares		218		218
Federated Prime Obligations Fund - Class I		408		408
Fidelity Institutional Prime Money Market Portfolio		1,019		1,019
Fidelity Institutional Prime Money Market Portfolio - Class I		197		197
Wells Fargo Advantage Government Money Market Fund - Institutional Class		6,100,852		6,100,852
Wells Fargo Advantage Heritage Money Market Fund - Institutional Class		5		5
Wells Fargo Advantage Municipal Cash Management Money Market Fund - Institutional Class		1		1

TOTAL SHORT-TERM INVESTMENTS (Cost $16,314,808)				16,314,808

TOTAL INVESTMENTS — 100.0% (Cost $185,797,708)			$	188,413,710

†	See Security Valuation Note.

•	Variable Rate Security.

~	Fair valued security. The total market value of fair valued securities at June 30, 2012 is $3,276,500.

+	Effective Yield. For those bonds that become coupon paying at a future date, the interest rate disclosed represents that annualized effective yield from the date of acquisition to maturity.

LLC	— Limited Liability Company.

Plc	— Public Limited Company.

REMICS

— Real Estate Mortgage Investment Conduits.


Country Weightings as of 06/30/2012††
United States	92	%
Canada	6
Australia	1
United Kingdom	1

Total	100	%

††	% of total investments as of June 30, 2012

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Limited Maturity Bond Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	95,109,263	$	—	$	95,109,263	$	—
AGENCY OBLIGATIONS		19,809,082		—		19,809,082		—
ASSET BACKED SECURITIES		14,071,406		—		14,071,406		—
COMMERCIAL MORTGAGE BACKED SECURITIES		2,252,927		—		2,252,927		—
CORPORATE BONDS		30,126,366		—		30,126,366
MUNICIPAL NOTES		1,063,340		—		1,063,340		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		9,666,518		—		9,666,518		—
SHORT-TERM INVESTMENTS		16,314,808		16,314,808		—		—

TOTAL INVESTMENTS	$	188,413,710	$	16,314,808	$	172,098,902	$	—

The accompanying notes are an integral part of the financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2011 (Unaudited)

Quality Bond Fund


	Par (000)		Value†
AGENCY OBLIGATIONS — 2.3%
Federal National Mortgage Association — 2.3%
3.250%, 04/09/13	$	4,500	$	4,605,817
5.000%, 04/15/15		6,750		7,587,952

TOTAL AGENCY OBLIGATIONS (Cost $11,381,108)				12,193,769

ASSET BACKED SECURITIES — 2.9%
Conseco Financial Corp.• 7.240%, 11/15/28		509		231,236
Enterprise Mortgage Acceptance Co. LLC 144A @•~ 7.551%, 01/15/27		924		734,560
GE Capital Credit Card Master Note Trust 1.092%, 09/15/16•		4,000		4,011,239
0.950%, 06/15/18		5,000		4,998,678
Hyundai Auto Lease Securitization Trust 2011-A 144A @ 0.920%, 08/17/15		4,000		4,002,674
SACO I, Inc. 144A @• 1.145%, 06/25/35		1,483		1,231,465

TOTAL ASSET BACKED SECURITIES (Cost $15,795,566)				15,209,852

COMMERCIAL MORTGAGE BACKED SECURITIES — 1.3%
Bear Stearns Commercial Mortgage Securities 4.830%, 08/15/38		1,610		1,613,566
CFCRE Commercial Mortgage Trust 144A @• 4.961%, 04/15/44		1,000		1,121,800
Citigroup Deutsche Bank Commercial Mortgage Trust 5.322%, 12/11/49		1,500		1,666,077
JPMorgan Chase Commercial Mortgage Securities Corp. 4.545%, 01/15/42		912		913,557
5.420%, 01/15/49		1,500		1,678,307

TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $6,427,041)				6,993,307

CORPORATE BONDS — 18.6%
Aerospace & Defense — 0.2%
Lockheed Martin Corp. 3.350%, 09/15/21		1,000		1,033,609

Agriculture — 0.5%
Altria Group, Inc. 4.750%, 05/05/21		1,000		1,134,046
Cargill, Inc. 144A @ 6.125%, 09/15/36		1,000		1,253,973

				2,388,019

Banks — 1.3%
Bank of America Corp. 5.650%, 05/01/18		1,000		1,069,293


	Par (000)		Value†

Banks — (continued)
Bank of Montreal 144A @ 2.850%, 06/09/15	$	1,000	$	1,058,240
Canadian Imperial Bank of Commerce 144A @ 2.000%, 02/04/13		1,000		1,009,229
JPMorgan Chase & Co. 6.000%, 01/15/18		1,700		1,951,364
The Goldman Sachs Group, Inc. 5.250%, 07/27/21		1,000		1,015,818
5.750%, 01/24/22		1,000		1,055,604

				7,159,548

Beverages — 0.6%
Anheuser-Busch InBev Worldwide, Inc. 7.750%, 01/15/19		1,000		1,320,754
Pepsico, Inc. 4.000%, 03/05/42		1,000		1,045,033
The Coca-Cola Co. 3.300%, 09/01/21		1,000		1,072,709

				3,438,496

Biotechnology — 0.9%
Amgen, Inc. 4.950%, 10/01/41		1,000		1,022,257
Biogen Idec, Inc. 6.875%, 03/01/18		1,000		1,220,445
Genentech, Inc. 5.250%, 07/15/35		1,000		1,177,429
Gilead Sciences, Inc. 4.400%, 12/01/21		1,000		1,103,779

				4,523,910

Commercial Services — 0.9%
Safina Ltd.~ 2.000%, 12/30/23		5,000		4,992,500

Computers — 0.4%
Hewlett-Packard Co. 2.600%, 09/15/17		1,000		1,003,803
International Business Machines Corp. 6.500%, 01/15/28		1,000		1,348,800

				2,352,603

Diversified Financial Services — 1.3%
American Honda Finance Corp. 144A @ 3.800%, 09/20/21		1,000		1,071,407
Caisse Centrale Desjardins du Quebec 144A @ 2.550%, 03/24/16		2,000		2,104,908
General Electric Capital Corp. 6.150%, 08/07/37		1,000		1,181,424
5.875%, 01/14/38		1,000		1,148,004
Northern Trust Corp. 3.375%, 08/23/21		500		537,210
Toyota Motor Credit Corp. 3.400%, 09/15/21		1,000		1,051,631

				7,094,584

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2011 (Unaudited)

Quality Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Electric — 1.4%
ABB Finance USA, Inc. 4.375%, 05/08/42	$	1,000	$	1,074,613
Carolina Power & Light Co. 2.800%, 05/15/22		1,000		1,016,409
Commonwealth Edison Co. 6.150%, 09/15/17		500		605,419
Duke Energy Carolinas LLC 4.250%, 12/15/41		1,000		1,078,012
Enel Finance International SA 144A @ 6.250%, 09/15/17		1,000		1,003,848
Georgia Power Co. 4.300%, 03/15/42		1,000		1,041,663
PacifiCorp 6.250%, 10/15/37		1,000		1,344,624

				7,164,588

Food — 0.5%
Kraft Foods Group, Inc. 144A @ 5.000%, 06/04/42		1,000		1,058,376
Kraft Foods, Inc. 6.750%, 02/19/14		500		547,711
Sara Lee Corp. 2.750%, 09/15/15		1,000		1,024,206

				2,630,293

Gas — 0.8%
Boston Gas Co. 144A @ 4.487%, 02/15/42		1,000		1,055,869
Pacific Gas & Electric Co. 3.250%, 09/15/21		1,000		1,047,817
Praxair, Inc. 3.000%, 09/01/21		1,000		1,029,911
SEMCO Energy, Inc. 144A @ 5.150%, 04/21/20		1,000		1,115,991

				4,249,588

Healthcare Products — 1.0%
Becton Dickinson & Co. 3.125%, 11/08/21		1,000		1,040,741
Covidien International Finance SA 6.000%, 10/15/17		1,000		1,209,351
3.200%, 06/15/22		1,000		1,030,971
Stryker Corp. 2.000%, 09/30/16		1,000		1,024,544
Zimmer Holdings, Inc. 4.625%, 11/30/19		1,000		1,134,821

				5,440,428

Healthcare Services — 0.4%
CIGNA Corp. 4.375%, 12/15/20		1,000		1,066,490
Unitedhealth Group, Inc. 4.625%, 11/15/41		1,000		1,074,679

				2,141,169

Insurance — 0.4%
American International Group, Inc. 4.875%, 06/01/22		1,000		1,023,222


	Par (000)		Value†

Insurance — (continued)
The Travelers Cos., Inc. 5.350%, 11/01/40	$	1,000	$	1,206,896

				2,230,118

Investment Companies — 0.4%
Express Script Holding Co. 144A @ 3.900%, 02/15/22		1,000		1,036,514
USAA Capital Corp. 144A @ 2.250%, 12/13/16		1,000		1,020,360

				2,056,874

Media — 0.3%
Comcast Cable Holdings LLC 9.875%, 06/15/22		1,000		1,453,321

Miscellaneous Manufacturing — 0.7%
Honeywell International, Inc. 5.375%, 03/01/41		1,000		1,269,986
Illinois Tool Works, Inc. 144A @ 4.875%, 09/15/41		1,000		1,137,885
Siemens Financieringsmaatschappij NV 144A @ 6.125%, 08/17/26		1,000		1,242,846

				3,650,717

Oil & Gas — 3.0%
Apache Corp. 3.250%, 04/15/22		1,000		1,044,212
BG Energy Capital Plc 144A @ 4.000%, 10/15/21		1,000		1,067,055
BP Capital Markets Plc 4.500%, 10/01/20		1,000		1,125,836
Devon Energy Corp. 4.750%, 05/15/42		1,000		1,049,352
Occidental Petroleum Corp. 3.125%, 02/15/22		1,000		1,042,530
Pemex Project Funding Master Trust 6.625%, 06/15/35		1,000		1,190,000
Petrobras International Finance Co.-Pifco 6.750%, 01/27/41		1,000		1,172,984
Petroleos Mexicanos 1.950%, 12/20/22 W.I.		2,000		2,000,080
2.000%, 12/20/22		3,000		3,002,550
Statoil, ASA 3.150%, 01/23/22		1,000		1,043,653
United Technologies Corp. 4.500%, 06/01/42		2,000		2,196,810

				15,935,062

Oil & Gas Services — 0.4%
Halliburton Co. 4.500%, 11/15/41		1,000		1,048,655
Schlumberger Oilfield Plc 144A @ 4.200%, 01/15/21		1,000		1,120,852

				2,169,507

Pharmaceuticals — 1.9%
Celgene Corp. 0.440%, 07/10/12		3,000		2,999,633

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2011 (Unaudited)

Quality Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Pharmaceuticals — (continued)
GlaxoSmithKline Capital, Inc. 5.375%, 04/15/34	$	1,000	$	1,213,892
Merck & Co., Inc. 6.400%, 03/01/28		1,000		1,366,662
Novartis Capital Corp. 2.900%, 04/24/15		1,000		1,057,953
Sanofi-Aventis SA 4.000%, 03/29/21		1,000		1,115,339
Teva Pharmaceutical Finance Co. BV 3.650%, 11/10/21		1,000		1,051,778
Thermo Fisher Scientific, Inc. 3.600%, 08/15/21		1,000		1,075,592

				9,880,849

Pipelines — 0.2%
DCP Midstream LLC 144A @ 6.750%, 09/15/37		1,000		1,207,066

Retail — 0.7%
CVS Caremark Corp. 5.750%, 05/15/41		1,000		1,190,414
Wal-Mart Stores, Inc. 3.250%, 10/25/20		1,000		1,072,996
5.625%, 04/01/40		1,000		1,291,344

				3,554,754

Telecommunications — 0.4%
AT&T, Inc. 3.875%, 08/15/21		1,000		1,089,259
Verizon Communications, Inc. 4.600%, 04/01/21		1,000		1,146,150

				2,235,409

TOTAL CORPORATE BONDS (Cost $90,015,672)				98,983,012

MUNICIPAL NOTE — 0.4%
Province of British Columbia 2.850%, 06/15/15 (Cost $1,999,369)		2,000		2,126,680

MUNICIPAL BONDS — 1.7%
City of New York 6.271%, 12/01/37		1,750		2,246,073
Corpus Christi Independent School District 6.124%, 08/15/32		1,000		1,208,780
Metropolitan Water District of Southern California 6. 947%, 07/01/40		1,000		1,204,900
Orange County Sanitation District 6.400%, 02/01/44		1,000		1,352,880
San Francisco City & County Public Utilities Commission 6.950%, 11/01/50		2,000		2,815,500

Total MUNICIPAL BONDS (Cost $6,752,127)				8,828,133


	Par (000)		Value†
RESIDENTIAL MORTGAGE BACKED SECURITIES — 22.5%
Collateralized Mortgage Obligations — 2.4%
Fannie Mae REMICs• 0.645%, 11/25/39	$	7,797	$	7,792,062
Freddie Mac REMICs• 0.582%, 05/15/37		5,120		5,116,645

				12,908,707

Fannie Mae Pool — 8.2%
5.000%, 07/01/23		1,744		1,884,221
2.875%, 04/01/34•		716		762,916
2.485%, 07/01/36•		762		810,203
2.419%, 08/01/36•		727		770,018
4.063%, 05/01/37•		522		557,262
4.000%, 08/01/39		6,334		6,749,784
4.000%, 11/01/40		6,305		6,720,987
3.500%, 12/01/40		12,110		12,741,332
3.500%, 01/01/41		9,086		9,560,376
3.500%, 03/01/41		2,640		2,777,335

				43,334,434

Freddie Mac Gold Pool — 4.3%
3.000%, 01/01/26		8,490		8,887,970
3.500%, 12/01/40		7,585		7,966,282
3.500%, 01/01/41		4,522		4,748,905
3.500%, 02/01/41		1,297		1,362,318

				22,965,475

Ginnie Mae Pool — 7.6%
6.000%, 10/15/38		1,508		1,694,352
6.000%, 10/15/38		1,219		1,369,621
4.000%, 04/15/39		9,469		10,373,640
4.000%, 06/15/39		6,037		6,613,574
4.500%, 02/15/40		9,660		10,584,002
3.500%, 10/20/41		8,795		9,413,832
9.000%, 10/15/30		8		8,325

				40,057,346

TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $110,350,536)				119,265,962

COMMERCIAL PAPER — 1.3%
Beverages — 0.2%
Bacardi Corp. 0.440%, 07/18/12		1,000		999,780

Electric — 0.5%
Idacorp, Inc. 0.430%, 07/17/12		2,800		2,799,432

Electronics — 0.6%
Northstar 0.400%, 07/03/12		3,000		2,999,900

TOTAL COMMERCIAL PAPER (Cost $6,799,112)				6,799,112

U.S. TREASURY OBLIGATIONS — 30.8%
U.S. Treasury Bond 6.250%, 08/15/23		1,350		1,960,875

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Quality Bond Fund


	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — (continued)
U.S. Treasury Bond — (continued)
5.500%, 08/15/28		2,800		4,030,687
3.500%, 02/15/39	$	8,680	$	10,044,392
4.375%, 05/15/40		100		133,265
3.125%, 11/15/41		1,000		1,075,000
U.S. Treasury Note 1.125%, 12/15/12		43,600		43,785,649
0.250%, 11/30/13		5,000		4,996,680
1.750%, 01/31/14		6,000		6,135,702
1.875%, 02/28/14		7,000		7,179,648
4.250%, 11/15/14		5,000		5,457,030
4.000%, 02/15/15		10,900		11,921,025
2.125%, 12/31/15		11,100		11,717,437
2.625%, 02/29/16		5,000		5,380,860
1.500%, 07/31/16		4,000		4,144,064
2.375%, 06/30/18		4,300		4,661,131
2.750%, 02/15/19		9,800		10,875,707
3.125%, 05/15/19		6,550		7,444,481
3.375%, 11/15/19		475		549,553
2.000%, 11/15/21		2,200		2,280,953
2.000%, 02/15/22		4,400		4,548,157
3.125%, 02/15/42		8,530		9,163,088
U.S. Treasury Strip Principal 4.700%, 11/15/24+		7,800		6,000,626

TOTAL U.S. TREASURY OBLIGATIONS (Cost $151,864,990)				163,486,010


	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 18.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		63,722,658		63,722,658
BlackRock Liquidity Funds TempFund - Institutional Shares		447		447
Federated Prime Obligations Fund - Class I		313		313
Fidelity Institutional Prime Money Market Portfolio		713		713
Fidelity Institutional Prime Money Market Portfolio - Class I		271		271
Wells Fargo Advantage Government Money Market Fund - Institutional Class		32,985,219		32,985,219
Wells Fargo Advantage Heritage Money Market Fund - Institutional Class		1		1
Wells Fargo Advantage Municipal Cash Management Money Market Fund - Institutional Class		1		1

TOTAL SHORT-TERM INVESTMENTS (Cost $96,709,623)				96,709,623

TOTAL INVESTMENTS — 100.0% (Cost $498,095,144)			$	530,595,460

†	See Security Valuation Note.

@	Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the

Securities Act of 1933, as amended, and may be sold only to dealers in the program or other “accredited investors”. Unless otherwise indicated, the security is considered liquid.

•	Variable Rate Security.

~	Fair valued security. The total market value of fair valued securities at June 30, 2012 is $5,727,060.

+	Effective Yield. For those bonds that become coupon paying at a future date, the interest rate disclosed represents that annualized effective yield from the date of acquisition to maturity.

LLC — Limited Liability Company.

Plc — Public Limited Company.

REMICS — Real Estate Mortgage Investment Conduits.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Observable Input
U.S. TREASURY OBLIGATIONS	$	163,486,010	$	—	$	163,486,010	$	—
AGENCY OBLIGATIONS		12,193,769		—		12,193,769		—
ASSET BACKED SECURITIES		15,209,852		—		15,209,852		—
COMMERCIAL MORTGAGE BACKED SECURITIES		6,993,307		—		6,993,307		—
CORPORATE BONDS		98,983,012		—		98,983,012
MUNICIPAL NOTES		2,126,680		—		2,126,680		—
MUNICIPAL BONDS		8,828,133		—		8,828,133		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		119,265,962		—		119,265,962		—
COMMERCIAL PAPER		6,799,112		—		6,799,112		—
SHORT-TERM INVESTMENTS		96,709,623		96,709,623		—		—

TOTAL INVESTMENTS	$	530,595,460	$	96,709,623	$	433,885,837	$	—

The accompanying notes are an integral part of the financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Number of Shares		Value†
COMMON STOCKS — 0.7%
Auto Parts & Equipment — 0.1%
TRW Automotive Holdings Corp.*		5,125	$	188,395

Electric — 0.1%
The AES Corp.*		19,675		252,430

Entertainment — 0.0%
Lakes Entertainment, Inc.*		12,500		36,250

Lodging — 0.1%
Ameristar Casinos, Inc.		6,675		118,615

Oil & Gas — 0.2%
EQT Corp.		3,325		178,320
Range Resources Corp.		2,500		154,675

				332,995

Telecommunications — 0.2%
Crown Castle International Corp.*		1,750		102,655
Ziggo N.V.*		8,100		258,160

				360,815

TOTAL COMMON STOCKS (Cost $1,370,001)				1,289,500

PREFERRED STOCKS — 1.3%
Auto Manufacturers — 0.2%
General Motors Co.CONV		10,450		346,940

Banks — 0.5%
Ally Financial, Inc.144A @		500		445,453
GMAC Capital Trust I*		17,375		417,869

				863,322

Electric — 0.0%
PPL Corp.		1,000		53,470

Media — 0.1%
Spanish Broadcasting System, Inc.*^		182		109,200

Packaging and Containers — 0.0%
Smurfit-Stone Container Corp. CONV*^		725		0

Telecommunications — 0.5%
Lucent Technologies Capital Trust I CONV*		1,175		793,125

TOTAL PREFERRED STOCKS (Cost $2,320,671)				2,166,057

	Par (000)		Value†
REAL ESTATE INVESTMENT TRUSTS — 0.1%
Diversified — 0.1%
American Tower Corp. (Cost $73,106)	$	1,000		96,126


	Par (000)		Value†
CORPORATE BONDS — 80.0%
Advertising — 0.4%
inVentiv Health, Inc. 144A @ 10.000%, 08/15/18	$	225	$	192,375
10.000%, 08/15/18		200		172,000
Lamar Media Corp. 144A @ 5.875%, 02/01/22		150		153,750
The Interpublic Group of Cos., Inc. 10.000%, 07/15/17		125		141,250

				659,375

Aerospace & Defense — 1.0%
BE Aerospace, Inc. 8.500%, 07/01/18		150		164,062
Ducommun, Inc. 9.750%, 07/15/18		300		316,500
Kratos Defense & Security Solutions, Inc. 10.000%, 06/01/17		350		377,125
Sequa Corp. 144A @ 11.750%, 12/01/15		200		211,000
13.500%, 12/01/15		75		79,500
Spirit Aerosystems, Inc. 7.500%, 10/01/17		75		81,563
TransDigm, Inc. 7.750%, 12/15/18		375		411,562

				1,641,312

Airlines — 1.0%
Continental Airlines 2009-2 Class A Pass Through Trust 7.250%, 11/10/19		45		50,836
Continental Airlines 2009-2 Class B Pass-Through-Trust 9.250%, 05/10/17		39		42,814
Continental Airlines, Inc. 144A @ 6.750%, 09/15/15		600		616,500
Delta Air Lines, Inc. 144A @ 9.500%, 09/15/14		158		166,887
12.250%, 03/15/15		625		679,687
United Air Lines, Inc. 144A @ 12.000%, 11/01/13		75		78,188

				1,634,912

Apparel — 0.6%
Hanesbrands, Inc. 8.000%, 12/15/16		100		110,125
6.375%, 12/15/20		175		184,188
Levi Strauss & Co. 7.750%, 05/15/18		350		458,428
6.875%, 05/01/22 144A @		200		205,250

				957,991

Auto Manufacturers — 0.5%
Chrysler Group LLC
8.000%, 06/15/19		400		411,000
8.250%, 06/15/21		425		436,688

				847,688

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Auto Parts & Equipment — 0.9%
Allison Transmission, Inc. 144A @ 7.125%, 05/15/19	$	350	$	364,875
Conti-Gummi Finance BV 144A @ 8.500%, 07/15/15		150		208,335
Delphi Corp. 5.875%, 05/15/19		75		80,063
6.125%, 05/15/21		100		109,250
Pittsburgh Glass Works LLC 144A @ 8.500%, 04/15/16		100		92,000
The Goodyear Tire & Rubber Co. 8.250%, 08/15/20		250		264,687
8.750%, 08/15/20		100		106,625
7.000%, 05/15/22		250		249,688

				1,475,523

Banks — 3.9%
Ally Financial, Inc. 4.625%, 06/26/15		525		528,252
5.500%, 02/15/17		575		584,051
6.250%, 12/01/17		375		394,992
8.000%, 03/15/20		125		143,750
7.500%, 09/15/20		325		365,219
8.000%, 11/01/31		300		351,750
CIT Group, Inc. 4.750%, 02/15/15 144A @		750		767,812
5.250%, 03/15/18		125		129,063
6.625%, 04/01/18 144A @		700		754,250
5.500%, 02/15/19 144A @		975		1,001,812
5.375%, 05/15/20		300		306,000
Provident Funding Associates LP 144A @ 10.250%, 04/15/17		200		208,500
10.125%, 02/15/19		100		93,000
Regions Bank 7.500%, 05/15/18		500		562,500
Synovus Financial Corp. 5.125%, 06/15/17		350		322,000
7.875%, 02/15/19		100		105,250

				6,618,201

Beverages — 0.2%
Constellation Brands, Inc. 6.000%, 05/01/22		300		322,500
Cott Beverages, Inc. 8.375%, 11/15/17		75		81,563

				404,063

Building Materials — 1.7%
Associated Materials LLC 9.125%, 11/01/17		225		200,813
Building Materials Corp. of America 144A @ 6.750%, 05/01/21		250		267,500
Euramax International, Inc. 9.500%, 04/01/16		275		242,688
Masco Corp. 6.125%, 10/03/16		150		160,080
5.850%, 03/15/17		200		209,648


	Par (000)		Value†

Building Materials — (Continued)
Nortek, Inc. 10.000%, 12/01/18	$	300	$	315,000
8.500%, 04/15/21		525		513,187
Owens Corning 9.000%, 06/15/19		125		155,856
Reliance Intermediate Holdings LP 144A @ 9.500%, 12/15/19		225		247,500
Summit Materials LLC 144A @ 10.500%, 01/31/20		250		264,687
Texas Industries, Inc. 9.250%, 08/15/20		200		200,000
USG Corp. 144A @ 8.375%, 10/15/18		50		52,500

				2,829,459

Chemicals — 1.8%
Hexion US Finance Corp. 8.875%, 02/01/18		300		306,000
6.625%, 04/15/20		225		230,625
9.000%, 11/15/20		100		86,250
Huntsman International LLC 8.625%, 03/15/20		75		84,188
8.625%, 03/15/21		425		479,187
Ineos Finance Plc 144A @ 9.000%, 05/15/15		200		211,000
8.375%, 02/15/19		375		388,125
LyondellBasell Industries N.V. 144A @ 5.000%, 04/15/19		300		314,625
6.000%, 11/15/21		200		219,500
Momentive Performance Materials, Inc. 11.500%, 12/01/16		475		353,875
9.000%, 01/15/21		125		94,688
PolyOne Corp. 7.375%, 09/15/20		150		159,375
Solutia, Inc. 8.750%, 11/01/17		175		196,656

				3,124,094

Coal — 1.6%
Arch Coal, Inc. 7.250%, 06/15/21		450		376,875
Consol Energy, Inc. 8.000%, 04/01/17		600		622,500
8.250%, 04/01/20		150		157,500
Foresight Energy LLC 144A @ 9.625%, 08/15/17		425		425,531
Peabody Energy Corp. 7.375%, 11/01/16		300		330,000
6.250%, 11/15/21 144A @		25		24,750
Peabody Energy Corp. 144A 6.000%, 11/15/18 @		275		273,625
Penn Virginia Resource Partners LP 8.250%, 04/15/18		350		353,500
8.375%, 06/01/20 144A @		200		203,000

				2,767,281

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Commercial Services — 2.5%
Alliance Data Systems Corp. 144A @ 6.375%, 04/01/20	$	275	$	281,875
ARAMARK Holdings Corp. PIK 144A @ 8.625%, 05/01/16		250		255,940
Ashtead Capital, Inc. 144A @ 6.500%, 07/15/22		125		125,000
Avis Budget Car Rental LLC 9.625%, 03/15/18		50		54,750
Ceridian Corp. 144A @ 8.875%, 07/15/19		125		129,063
CoreLogic, Inc. 144A @ 7.250%, 06/01/21		350		358,750
DP World Ltd. 144A @ 6.850%, 07/02/37		210		206,325
FTI Consulting, Inc. 7.750%, 10/01/16		125		129,219
6.750%, 10/01/20		75		79,125
Garda World Security Corp. 144A @ 9.750%, 03/15/17		150		158,625
Hertz Holdings Netherlands BV 144A @ 8.500%, 07/31/15		200		271,830
iPayment, Inc. 10.250%, 05/15/18		425		386,750
Lender Processing Services, Inc. 8.125%, 07/01/16		325		338,812
Nord Anglia Education UK Holdings Plc 144A @ 10.250%, 04/01/17		200		207,500
Pharmaceutical Product Development, Inc. 144A @ 9.500%, 12/01/19		250		273,437
Seminole Indian Tribe of Florida 144A @ 7.750%, 10/01/17		350		381,500
ServiceMaster Co. 8.000%, 02/15/20		125		136,094
Ticketmaster Entertainment LLC 10.750%, 08/01/16		250		265,000
UR Merger Sub Corp. 144A @ 5.750%, 07/15/18		150		156,000

				4,195,595

Computers — 0.5%
iGate Corp. 9.000%, 05/01/16		750		802,500
SunGard Data Systems, Inc. 10.250%, 08/15/15		25		25,688

				828,188

Distribution & Wholesale — 0.4%
HD Supply, Inc. 144A @ 8.125%, 04/15/19		375		405,000
11.000%, 04/15/20		225		242,156

				647,156


	Par (000)		Value†

Diversified Financial Services — 8.0%
AerCap Aviation Solutions BV 144A @ 6.375%, 05/30/17	$	225	$	226,125
Air Lease Corp. 144A @ 5.625%, 04/01/17		375		369,375
Aircastle Ltd. 6.750%, 04/15/17		425		429,250
9.750%, 08/01/18		275		304,563
CNH Capital LLC, 144A 144A @ 6.250%, 11/01/16		425		454,750
E*Trade Financial Corp. 7.875%, 12/01/15		175		177,625
6.750%, 06/01/16		375		381,562
12.500%, 11/30/17 PIK		998		1,143,957
Fiat Industrial Finance Europe S.A. 6.250%, 03/09/18		275		351,490
Ford Motor Credit Co. LLC 12.000%, 05/15/15		550		683,375
5.000%, 05/15/18		1,450		1,539,729
General Motors Financial Co., Inc. 6.750%, 06/01/18		150		163,969
GTP Acquisition Partners I LLC 144A @ 7.628%, 06/15/16		250		260,000
Icahn Enterprises LP 8.000%, 01/15/18		625		664,062
International Lease Finance Corp. 4.875%, 04/01/15		200		200,990
5.750%, 05/15/16		375		380,468
8.875%, 09/01/17		425		479,187
8.250%, 12/15/20		300		343,552
8.625%, 01/15/22		225		260,566
International Lease Finance Corp. 144A @ 6.500%, 09/01/14		215		226,825
Nationstar Mortgage LLC 144A @ 9.625%, 05/01/19		250		264,375
Neuberger Berman Group LLC 144A @ 5.625%, 03/15/20		225		234,563
5.875%, 03/15/22		200		209,000
Nuveen Investments, Inc. 5.500%, 09/15/15		750		678,750
10.500%, 11/15/15		1,075		1,091,125
SLM Corp. 5.375%, 05/15/14		300		310,489
5.050%, 11/14/14		100		102,995
6.250%, 01/25/16		375		393,750
6.000%, 01/25/17		225		232,431
8.450%, 06/15/18		400		448,000
Springleaf Finance Corp. 6.900%, 12/15/17		275		219,483
Taylor Morrison Communities, Inc. 144A @ 7.750%, 04/15/20		425		444,125

				13,670,506

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Electric — 1.7%
Calpine Corp. 144A @ 7.875%, 07/31/20	$	525	$	578,813
7.500%, 02/15/21		300		324,000
CMS Energy Corp. 5.050%, 03/15/22		130		134,841
Dolphin Subsidiary II, Inc. 144A @ 6.500%, 10/15/16		325		351,000
7.250%, 10/15/21		300		333,000
GenOn Energy, Inc. 9.500%, 10/15/18		650		642,687
NRG Energy, Inc. 7.625%, 01/15/18		150		155,250
PNM Resources, Inc. 9.250%, 05/15/15		61		69,616
The AES Corp. 144A @ 7.375%, 07/01/21		350		389,375

				2,978,582

Electrical Components & Equipment — 0.2%
Anixter, Inc.^ 10.000%, 03/15/14		125		135,625
Coleman Cable, Inc. 9.000%, 02/15/18		200		206,000

				341,625

Engineering & Construction — 0.4%
Aguila 3 S.A. 144A @ 7.875%, 01/31/18		325		334,750
Dycom Investments, Inc. 7.125%, 01/15/21		275		281,875

				616,625

Entertainment — 2.1%
AMC Entertainment, Inc. 8.750%, 06/01/19		325		348,562
CCM Merger, Inc. 144A @ 9.125%, 05/01/19		300		302,625
Cedar Fair LP 9.125%, 08/01/18		300		333,000
Cinemark USA, Inc. 7.375%, 06/15/21		175		189,875
MU Finance Plc 144A @ 8.375%, 02/01/17		325		351,000
National CineMedia LLC 144A @ 6.000%, 04/15/22		175		178,063
Palace Entertainment Holdings LLC 144A @ 8.875%, 04/15/17		275		287,375
Pinnacle Entertainment, Inc. 7.750%, 04/01/22		300		320,625
Regal Cinemas Corp. 8.625%, 07/15/19		275		303,187
Regal Entertainment Group 9.125%, 08/15/18		325		357,500
Seneca Gaming Corp. 144A @ 8.250%, 12/01/18		400		410,000


	Par (000)		Value†

Entertainment — (continued)
Speedway Motorsports, Inc. 8.750%, 06/01/16	$	150	$	%163,125

				3,544,937

Environmental Control — 0.0%
Darling International, Inc. 8.500%, 12/15/18		75		84,188

Food — 1.4%
Bumble Bee Acquisition Corp. 144A @ 9.000%, 12/15/17		165		164,587
Del Monte Corp. 7.625%, 02/15/19		500		504,375
Land O’ Lakes Capital Trust I 144A @ 7.450%, 03/15/28^		275		262,625
Michael Foods, Inc. 9.750%, 07/15/18		350		384,125
Minerva Luxembourg S.A. 144A @ 12.250%, 02/10/22		200		208,000
Pinnacle Foods Finance LLC 9.250%, 04/01/15		250		256,875
8.250%, 09/01/17		400		423,000
U.S. Foodservice, Inc. 144A @ 8.500%, 06/30/19		250		253,750

				2,457,337

Forest Products & Paper — 1.3%
Boise Paper Holdings LLC 9.000%, 11/01/17		100		110,500
8.000%, 04/01/20		125		138,125
Cascades, Inc. 7.750%, 12/15/17		200		201,500
7.875%, 01/15/20		500		500,000
Clearwater Paper Corp. 7.125%, 11/01/18		100		105,500
Domtar Corp. 7.125%, 08/15/15		200		225,567
9.500%, 08/01/16		25		29,827
Exopack Holding Corp. 10.000%, 06/01/18		150		150,375
Mercer International, Inc. 9.500%, 12/01/17		325		337,188
Sappi Papier Holding GmbH 144A @ 7.750%, 07/15/17		200		202,500
8.375%, 06/15/19		200		200,250

				2,201,332

Gas — 0.2%
Sabine Pass LNG LP 7.500%, 11/30/16		300		315,000

Healthcare Products — 0.7%
Accellent, Inc. 8.375%, 02/01/17		50		50,625
10.000%, 11/01/17		275		231,000
Biomet, Inc. 11.625%, 10/15/17		700		755,125

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Healthcare Products — (continued)
Ontex IV S.A. 144A @ 9.000%, 04/15/19	$	100	$	107,884
Universal Hospital Services, Inc. 4.111%, 06/01/15•		75		71,250
8.500%, 06/01/15 PIK		50		50,969

				1,266,853

Healthcare Services — 3.7%
AMERIGROUP Corp. 7.500%, 11/15/19		300		322,500
Aviv Healthcare Properties LP 7.750%, 02/15/19		100		103,000
Capella Healthcare, Inc. 9.250%, 07/01/17		350		362,250
Community Health Systems, Inc.
8.875%, 07/15/15		186		190,882
8.000%, 11/15/19		600		639,000
Crown Newco 3 Plc 144A @ 7.000%, 02/15/18		100		151,133
DaVita, Inc. 6.375%, 11/01/18		200		206,500
Fresenius Medical Care U.S. Finance II , Inc. 144A @ 5.625%, 07/31/19		350		364,875
5.875%, 01/31/22		200		208,250
HCA, Inc. 9.875%, 02/15/17		114		123,690
8.500%, 04/15/19		375		420,000
7.500%, 02/15/22		800		872,000
Health Management Associates, Inc. 144A @ 7.375%, 01/15/20		200		212,750
IASIS Healthcare LLC 8.375%, 05/15/19		375		371,250
Kindred Healthcare, Inc. 8.250%, 06/01/19		250		231,875
LifePoint Hospitals, Inc. 6.625%, 10/01/20		100		106,250
Multiplan, Inc. 144A @ 9.875%, 09/01/18		325		355,875
Radiation Therapy Services, Inc. 9.875%, 04/15/17		225		176,063
Tenet Healthcare Corp. 6.250%, 11/01/18		425		449,437
8.875%, 07/01/19		25		28,063
Universal Health Services, Inc. 7.000%, 10/01/18		75		80,625
Vanguard Health Holding Co. II LLC 8.000%, 02/01/18		150		153,375
7.750%, 02/01/19		200		202,000
Vanguard Health Systems, Inc.^+ 9.439%, 02/01/16		11		7,315

				6,338,958


	Par (000)		Value†

Holding Companies — 0.2%
Polish Television Holding BV STEP 144A @ 11.250%, 05/15/17	$	175	$	221,463
Susser Holdings LLC 8.500%, 05/15/16		175		190,750

				412,213

Home Builders — 0.5%
Meritage Homes Corp. 144A @ 7.000%, 04/01/22		100		103,000
Shea Homes LP 8.625%, 05/15/19		425		456,875
Standard Pacific Corp. 10.750%, 09/15/16		175		206,500
8.375%, 05/15/18		50		54,625

				821,000

Home Furnishings — 0.1%
Sealy Mattress Co. 8.250%, 06/15/14		75		74,062
10.875%, 04/15/16 144A @		87		94,396

				168,458

Household Products & Wares — 0.4%
Central Garden & Pet Co. 8.250%, 03/01/18		150		150,375
Mead Products LLC 144A @ 6.750%, 04/30/20		200		211,000
Reynolds Group Issuer, Inc. 144A @ 7.750%, 10/15/16		200		210,500
The Scotts Miracle-Gro Co. 7.250%, 01/15/18		100		108,000
Yankee Acquisition Corp. 8.500%, 02/15/15		18		18,360

				698,235

Insurance — 0.8%
Assured Guaranty Municipal Holdings, Inc. 144A @• 6.400%, 12/15/66		450		281,250
HUB International Holdings, Inc. 144A @ 9.000%, 12/15/14		250		253,437
10.250%, 06/15/15		775		789,531
USI Holdings Corp. 144A @ 9.750%, 05/15/15		125		125,469

				1,449,687

Internet — 0.7%
Earthlink, Inc. 8.875%, 05/15/19		150		146,062
Equinix, Inc. 8.125%, 03/01/18		300		332,250
7.000%, 07/15/21		300		330,000
Netflix, Inc. 8.500%, 11/15/17		150		157,875
Zayo Escrow Corp. 144A @ 8.125%, 01/01/20		150		156,750

				1,122,937

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Iron & Steel — 1.2%
AK Steel Corp. 7.625%, 05/15/20	$	200	$	169,000
Algoma Acquisition Corp. 144A @ 9.875%, 06/15/15		175		148,312
JMC Steel Group, Inc. 144A @ 8.250%, 03/15/18		300		297,750
Ryerson Holding Corp.+ 24.417%, 02/01/15		1,550		806,000
Ryerson, Inc. 12.000%, 11/01/15		375		376,875
Steel Dynamics, Inc. 7.750%, 04/15/16		50		51,500
United States Steel Corp. 7.500%, 03/15/22		225		216,000

				2,065,437

Leisure Time — 0.1%
Easton-Bell Sports, Inc. 9.750%, 12/01/16		50		54,813
NCL Corp. Ltd. 9.500%, 11/15/18		100		108,500

				163,313

Lodging — 1.4%
Ameristar Casinos, Inc. 7.500%, 04/15/21 144A @		50		53,500
7.500%, 04/15/21		50		53,500
Boyd Gaming Corp.
9.125%, 12/01/18		150		154,500
9.000%, 07/01/20 144A @		225		225,562
Caesars Entertainment Operating Co., Inc.
5.625%, 06/01/15		200		164,500
11.250%, 06/01/17		337		367,751
Choice Hotels International, Inc. 5.750%, 07/01/22		150		156,837
Downstream Development Authority 144A @ 10.500%, 07/01/19		150		154,875
Gaylord Entertainment Co. 6.750%, 11/15/14		200		201,000
MGM Resorts International
10.375%, 05/15/14		125		140,938
9.000%, 03/15/20		150		166,500
Starwood Hotels & Resorts Worldwide, Inc. 7.150%, 12/01/19		150		176,756
Station Casinos LLC STEP 144A@ 3.660%, 06/18/18		450		338,625

				2,354,844

Machinery — Construction & Mining — 0.4%
Terex Corp.
10.875%, 06/01/16		25		28,031
8.000%, 11/15/17		450		466,875
6.500%, 04/01/20		125		126,563

				621,469


	Par (000)		Value†

Machinery—Diversified — 0.4%
Case New Holland, Inc. 7.875%, 12/01/17	$	250	$	288,750
Columbus McKinnon Corp. 7.875%, 02/01/19		275		291,500
The Manitowoc Co., Inc. 8.500%, 11/01/20		125		135,000

				715,250

Media — 6.8%
Bresnan Broadband Holdings LLC 144A @ 8.000%, 12/15/18		200		209,000
Cablevision Systems Corp.
8.625%, 09/15/17		125		139,375
7.750%, 04/15/18		150		159,750
8.000%, 04/15/20		75		81,000
CCO Holdings LLC
7.250%, 10/30/17		250		272,500
7.875%, 04/30/18		525		570,938
7.000%, 01/15/19		150		162,000
7.375%, 06/01/20		125		137,344
6.625%, 01/31/22		625		668,750
Cequel Communications Holdings I LLC 144A @ 8.625%, 11/15/17		575		619,562
Clear Channel Communications, Inc.
11.000%, 08/01/16 PIK		150		93,000
7.250%, 10/15/27		100		44,250
Clear Channel Worldwide Holdings, Inc. 144A @
7.625%, 03/15/20		75		71,813
7.625%, 03/15/20		675		659,812
CSC Holdings LLC 8.500%, 04/15/14		250		275,000
Cyfrowy Polsat Finance AB 144A @ 7.125%, 05/20/18		100		129,081
DISH DBS Corp.
7.125%, 02/01/16		200		219,500
7.875%, 09/01/19		200		230,500
6.750%, 06/01/21		200		216,000
ION Media Networks, Inc. CONV¤ 11.000%, 07/31/13		1		0
LIN Television Corp. 8.375%, 04/15/18		275		281,188
Mediacom Broadband LLC 8.500%, 10/15/15		100		102,750
Nexstar Broadcasting, Inc.
7.000%, 01/15/14^		9		8,876
7.000%, 01/15/14 PIK ^		132		130,183
8.875%, 04/15/17		125		132,031
Nielsen Finance LLC
11.625%, 02/01/14		244		279,380
11.500%, 05/01/16		16		18,200
7.750%, 10/15/18		100		110,750
Sinclair Television Group, Inc. 144A @ 9.250%, 11/01/17		475		524,875
Sirius XM Radio, Inc. 144A @ 8.750%, 04/01/15		1,000		1,125,000

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Media — (continued)
Truven Health Analytics, Inc. 144A @ 10.625%, 06/01/20	$	125	$	130,000
TVN Finance Corp. II AB 144A 10.750%, 11/15/17		50		66,123
Unitymedia GmbH
9.625%, 12/01/19		150		206,435
9.500%, 03/15/21 144A @		300		411,921
Unitymedia Hessen GmbH & Co. KG 144A @ 7.500%, 03/15/19		125		164,515
Univision Communications, Inc. 144A @
6.875%, 05/15/19		175		180,250
7.875%, 11/01/20		950		1,016,500
8.500%, 05/15/21		800		806,000
Videotron Ltee
9.125%, 04/15/18		75		82,125
6.875%, 07/15/21 144A @		325		341,568
XM Satellite Radio, Inc. 144A @ 13.000%, 08/01/13		425		473,875

				11,551,720

Metal Fabricate/Hardware — 0.5%
Schaeffler Finance BV 144A @
7.750%, 02/15/17		200		208,500
8.500%, 02/15/19		400		427,000
Severstal Columbus LLC 10.250%, 02/15/18		275		275,344

				910,844

Mining — 0.8%
ALROSA Finance S.A. 144A @ 7.750%, 11/03/20		225		235,636
FMG Resources August 2006 Pty Ltd. 144A @
7.000%, 11/01/15		350		357,000
6.000%, 04/01/17		175		175,875
8.250%, 11/01/19		25		26,500
Novelis, Inc. 8.750%, 12/15/20		175		188,562
Teck Resources Ltd. 10.250%, 05/15/16		29		32,371
Vulcan Materials Co. 7.500%, 06/15/21		300		330,000

				1,345,944

Miscellaneous Manufacturing — 0.5%
Amsted Industries, Inc. 144A @ 8.125%, 03/15/18		225		237,937
Koppers, Inc. 7.875%, 12/01/19		125		134,688
RBS Global, Inc. 8.500%, 05/01/18		300		325,500
SPX Corp. 6.875%, 09/01/17		175		190,750

				888,875


	Par (000)		Value†

Office & Business Equipment — 0.9%
CDW LLC
12.535%, 10/12/17	$	975	$	1,057,875
8.000%, 12/15/18		25		27,125
8.500%, 04/01/19		350		372,750

				1,457,750

Oil & Gas — 6.8%
Alta Mesa Holdings 9.625%, 10/15/18		75		74,063
Antero Resources Finance Corp.
9.375%, 12/01/17		600		663,000
7.250%, 08/01/19		425		439,875
Atwood Oceanics, Inc. 6.500%, 02/01/20		150		156,750
Berry Petroleum Co.
10.250%, 06/01/14		125		140,000
6.750%, 11/01/20		25		26,125
6.375%, 09/15/22		450		464,625
Bill Barrett Corp.
7.625%, 10/01/19		500		500,000
7.000%, 10/15/22		550		525,250
Chesapeake Oilfield Operating LLC 144A @ 6.625%, 11/15/19		175		157,500
Clayton Williams Energy, Inc. 7.750%, 04/01/19		375		367,500
Concho Resources, Inc.
8.625%, 10/01/17		275		303,187
7.000%, 01/15/21		150		160,500
Connacher Oil & Gas Ltd. 144A @ 8.500%, 08/01/19		375		318,750
Denbury Resources, Inc. 8.250%, 02/15/20		274		300,030
EP Energy LLC 144A @ 9.375%, 05/01/20		375		388,594
EQT Corp. 8.125%, 06/01/19		325		389,760
EXCO Resources, Inc. 7.500%, 09/15/18		450		389,250
Hercules Offshore, Inc. 144A @
7.125%, 04/01/17		325		315,250
10.500%, 10/15/17		125		125,000
Laredo Petroleum, Inc. 144A @ 7.375%, 05/01/22		275		286,000
Newfield Exploration Co.
6.875%, 02/01/20		270		287,550
5.750%, 01/30/22		225		235,125
Oasis Petroleum, Inc.
7.250%, 02/01/19		50		51,250
6.500%, 11/01/21		225		222,750
Parker Drilling Co. 144A @ 9.125%, 04/01/18		240		253,800
Penn Virginia Corp. 7.250%, 04/15/19		75		61,875
Petroleos de Venezuela S.A. 144A @ 8.500%, 11/02/17		250		203,125

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Oil & Gas — (continued)
Plains Exploration & Production Co.
6.125%, 06/15/19	$	350	$	351,750
6.750%, 02/01/22		200		204,000
Precision Drilling Corp.
6.625%, 11/15/20		275		283,250
6.500%, 12/15/21		75		76,500
Range Resources Corp.
6.750%, 08/01/20		325		352,625
5.000%, 08/15/22		100		98,750
SM Energy Co.
6.625%, 02/15/19		250		256,250
6.500%, 11/15/21		150		152,625
SM Energy Co. 144A @ 6.500%, 01/01/23		175		176,313
Swift Energy Co.
8.875%, 01/15/20		225		236,250
7.875%, 03/01/22		500		502,500
Unit Corp. 6.625%, 05/15/21		575		580,031
WPX Energy, Inc. 6.000%, 01/15/22		575		572,125

				11,649,453

Oil & Gas Services — 1.2%
Exterran Holdings, Inc. 7.250%, 12/01/18		675		648,000
Frac Tech Services LLC 144A @ 8.125%, 11/15/18		400		403,000
Petroleum Geo-Services ASA 144A @ 7.375%, 12/15/18		300		308,250
SESI LLC
6.375%, 05/01/19		350		366,625
7.125%, 12/15/21 144A @		300		326,250

				2,052,125

Packaging and Containers — 1.5%
AEP Industries, Inc. 8.250%, 04/15/19		150		156,000
Ball Corp. 7.375%, 09/01/19		100		110,500
Beverage Packaging Holdings Luxembourg II S.A. 144A @ 8.000%, 12/15/16		550		654,265
BWAY Holding Co. 10.000%, 06/15/18		150		165,000
Consolidated Container Co. LLC 144A @ 10.125%, 07/15/20		200		206,000
Crown Americas LLC 7.625%, 05/15/17		100		108,000
Graphic Packaging International, Inc.
9.500%, 06/15/17		175		192,500
7.875%, 10/01/18		200		220,000
Plastipak Holdings, Inc. 144A @ 10.625%, 08/15/19		125		141,719
Rexam Plc• 6.750%, 06/29/67		100		120,223


	Par (000)		Value†

Packaging and Containers — (continued)
Rock-Tenn Co. 144A @
4.450%, 03/01/19	$	60	$	61,631
4.900%, 03/01/22		40		41,207
Sealed Air Corp. 7.875%, 06/15/17		100		108,000
Tekni-Plex, Inc. 144A @ 9.750%, 06/01/19		200		202,000

				2,487,045

Pharmaceuticals — 0.2%
Capsugel FinanceCo SCA 144A @ 9.875%, 08/01/19		200		270,818
Mylan, Inc. 144A @ 7.625%, 07/15/17		125		137,500

				408,318

Pipelines — 0.6%
El Paso Corp.
8.250%, 02/15/16		100		109,644
6.500%, 09/15/20		25		27,388
7.800%, 08/01/31		100		112,238
7.750%, 01/15/32		325		365,414
Kinder Morgan Finance Co. LLC
5.700%, 01/05/16		150		157,875
6.000%, 01/15/18 144A @		150		156,000
Regency Energy Partners LP 6.875%, 12/01/18		175		184,187

				1,112,746

Real Estate — 1.2%
CB Richard Ellis Services, Inc.
11.625%, 06/15/17		125		141,875
6.625%, 10/15/20		175		185,500
Host Hotels & Resorts LP
6.750%, 06/01/16		225		231,187
5.875%, 06/15/19		225		243,000
MPT Operating Partnership LP
6.875%, 05/01/21		225		234,562
6.375%, 02/15/22		125		125,313
Omega Healthcare Investors, Inc. 6.750%, 10/15/22		175		186,813
Reckson Operating Partnership LP 6.000%, 03/31/16		75		79,703
Rouse Co. LP
6.750%, 05/01/13 144A @		50		51,250
6.750%, 11/09/15		225		235,125
Weyerhaeuser Co. 8.500%, 01/15/25		325		384,433

				2,098,761

Real Estate Investment Trusts — 0.1%
Host Hotels & Resorts LP 6.000%, 10/01/21		150		164,625

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Retail — 3.3%
99 Cents Only Stores 144A @ 11.000%, 12/15/19	$	225	$	243,000
Academy Ltd. 144A @ 9.250%, 08/01/19		475		515,375
AmeriGas Finance LLC
6.750%, 05/20/20		125		127,500
7.000%, 05/20/22		525		540,750
CKE Restaurants, Inc. 11.375%, 07/15/18		271		309,618
Claire’s Stores, Inc.
9.625%, 06/01/15 PIK		104		88,567
8.875%, 03/15/19		150		128,250
DineEquity, Inc. 9.500%, 10/30/18		375		410,625
Dollar General Corp. 4.125%, 07/15/17		255		258,506
Ferrellgas LP
9.125%, 10/01/17		125		130,625
6.500%, 05/01/21		450		410,625
Fiesta Restaurant Group 144A @ 8.875%, 08/15/16		200		210,000
JC Penney Corp., Inc. 7.125%, 11/15/23		50		46,500
Jo-Ann Stores, Inc. 144A @ 8.125%, 03/15/19		100		99,500
QVC, Inc. 144A @
7.125%, 04/15/17		250		265,574
7.500%, 10/01/19		225		249,750
RadioShack Corp. 6.750%, 05/15/19		175		129,938
Rite Aid Corp.
9.500%, 06/15/17		600		613,500
9.250%, 03/15/20 144A @		375		375,937
7.700%, 02/15/27		175		145,250
Sonic Automotive, Inc. 144A @ 7.000%, 07/15/22		150		155,250
Wok Acquisition Corp. 144A @ 10.250%, 06/30/20		125		128,750

				5,583,390

Savings & Loans — 0.1%
Amsouth Bank 5.200%, 04/01/15		250		255,000

Semiconductors — 0.7%
Advanced Micro Devices, Inc.
8.125%, 12/15/17		275		298,375
7.750%, 08/01/20		95		104,500
Freescale Semiconductor, Inc.
10.125%, 03/15/18 144A @		88		96,140
8.050%, 02/01/20		50		49,375
MEMC Electronic Materials, Inc. 7.750%, 04/01/19		475		375,250
Sensata Technologies BV 144A @ 6.500%, 05/15/19		300		306,750

				1,230,390


	Par (000)		Value†

Software — 2.2%
Epicor Software Corp. 8.625%, 05/01/19	$	375	$	382,500
Fidelity National Information Services, Inc.
7.625%, 07/15/17 144A @		75		82,313
7.875%, 07/15/20		150		168,750
First Data Corp.
8.875%, 08/15/20 144A @		275		297,687
12.625%, 01/15/21		1,550		1,551,937
First Data Corp. 144a @ 7.375%, 06/15/19		450		459,000
JDA Software Group, Inc. 8.000%, 12/15/14		125		132,500
Lawson Software, Inc.
11.500%, 07/15/18		100		113,000
9.375%, 04/01/19 144A @		300		320,250
MedAssets, Inc. 8.000%, 11/15/18		325		342,875

				3,850,812

Telecommunications — 9.0%
CC Holdings GS LLC 144A @ 7.750%, 05/01/17		175		189,656
Cincinnati Bell, Inc. 7.000%, 02/15/15		175		177,188
CommScope, Inc. 144A @ 8.250%, 01/15/19		800		846,000
Cricket Communications, Inc.
10.000%, 07/15/15		100		103,000
7.750%, 05/15/16		150		159,188
7.750%, 10/15/20		800		764,000
Digicel Group Ltd. 144A @
8.250%, 09/01/17		225		228,937
10.500%, 04/15/18		200		209,000
Eileme 1 AB PIK 144A @ 14.250%, 08/15/20^		200		190,000
GCI, Inc. 6.750%, 06/01/21		200		193,500
Goodman Networks, Inc. 144A @ 12.125%, 07/01/18		225		231,750
Hughes Satellite Systems Corp.
6.500%, 06/15/19		350		371,875
7.625%, 06/15/21		325		353,437
Intelsat Jackson Holdings S.A.
7.250%, 04/01/19		100		105,000
7.250%, 10/15/20		75		78,938
7.250%, 10/15/20 144A @		150		157,500
Intelsat Luxembourg S.A.
11.250%, 02/04/17		675		695,250
11.500%, 02/04/17 PIK		125		129,063
11.500%, 02/04/17 PIK 144A @		500		516,250
ITC Deltacom, Inc. 10.500%, 04/01/16		50		53,250
Level 3 Communications, Inc. 11.875%, 02/01/19		225		249,187
Level 3 Financing, Inc.
8.750%, 02/15/17		125		130,000

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Telecommunications — (continued)
9.375%, 04/01/19	$	475	$	513,000
8.625%, 07/15/20		250		262,500
MetroPCS Wireless, Inc.
7.875%, 09/01/18		575		596,562
6.625%, 11/15/20		275		270,875
Nextel Communications, Inc. 7.375%, 08/01/15		300		300,375
NII Capital Corp.
8.875%, 12/15/19		225		203,906
7.625%, 04/01/21		300		257,250
PAETEC Holding Corp.
8.875%, 06/30/17		175		188,562
9.875%, 12/01/18		150		167,625
Qwest Communications International, Inc. 8.000%, 10/01/15		225		237,105
Sable International Finance Ltd. 144A @
7.750%, 02/15/17		150		155,250
8.750%, 02/01/20		200		214,000
Satmex Escrow S.A. de CV 9.500%, 05/15/17		25		26,125
SBA Telecommunications, Inc. 8.250%, 08/15/19		70		76,650
Sprint Nextel Corp. 144A @
9.125%, 03/01/17		400		420,000
9.000%, 11/15/18		900		1,005,750
7.000%, 03/01/20		175		182,000
11.500%, 11/15/21		200		223,000
Syniverse Holdings, Inc. 9.125%, 01/15/19		275		298,375
Telesat Canada 12.500%, 11/01/17		400		446,000
UPC Holding BV 144A @ 8.375%, 08/15/20		125		163,724
UPCB Finance V Ltd. 144A @ 7.250%, 11/15/21		150		156,750
UPCB Finance VI Ltd. 144A @ 6.875%, 01/15/22		225		229,500
Viasat, Inc. 8.875%, 09/15/16		100		107,250
VimpelCom Holdings BV 144A @ 7.504%, 03/01/22		450		422,748
West Corp.
8.625%, 10/01/18		475		503,500
7.875%, 01/15/19		175		182,875
Wind Acquisition Finance S.A. 144A @ 11.750%, 07/15/17		125		100,938
7.250%, 02/15/18		400		350,000
7.250%, 02/15/18		200		174,000
Wind Acquisition Holdings Finance S.A. PIK 144A @ 12.250%, 07/15/17		197		134,909
Windstream Corp.
8.125%, 08/01/13		25		26,344
7.875%, 11/01/17		675		735,750

				15,465,167


	Par (000)		Value†

Transportation — 0.6%
CEVA Group Plc 144A @ 8.375%, 12/01/17	$	225	$	218,250
Florida East Coast Holdings Corp. PIK 10.500%, 08/01/17		3		2,400
Florida East Coast Railway Corp. 8.125%, 02/01/17		175		182,875
gategroup Finance (Luxembourg) S.A. 144A @ 6.750%, 03/01/19		100		125,627
Kansas City Southern de Mexico S.A. de CV
8.000%, 02/01/18		225		250,605
6.625%, 12/15/20		100		111,250
6.125%, 06/15/21		125		137,500

				1,028,507

Trucking and Leasing — 0.1%
Maxim Crane Works LP 144A @ 12.250%, 04/15/15		125		123,125

TOTAL CORPORATE BONDS (Cost $132,403,123)				136,704,221

LOAN AGREEMENTS — 5.3%‡
Airlines — 0.3%
Delta Air Lines, Inc.• 0.000%, 04/20/17		499		497,184

Apparel — 0.1%
Wolverine Worldwide• 0.000%, 05/01/19		100		99,875

Auto Manufacturers — 0.3%
Chrysler Group LLC• 0.000%, 05/24/17		499		501,858

Chemicals — 0.5%
Ineos US Finance LLC• 0.000%, 04/27/18		500		488,890
PL Propylene LLC• 0.000%, 03/27/17		150		151,125
PQ Corp.• 0.000%, 07/30/15		250		236,445

				876,460

Commercial Services — 0.3%
Pharmaceutical Product Development, Inc.• 0.000%, 12/05/18		499		500,617

Distribution & Wholesale — 0.3%
HD Supply, Inc.• 0.000%, 10/12/17		500		502,815

Diversified Financial Services —0.3%
Nuveen Investments, Inc.• 0.000%, 03/01/19		500		500,625

Healthcare Products — 0.3%
Kinetic Concepts, Inc.• 0.000%, 05/04/18		499		501,864

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund


	Par (000)		Value†
LOAN AGREEMENTS— (continued)
Internet — 0.5%
Go Daddy Operating Co. LLC• 0.000%, 12/17/18	$	499	$	491,158
Zayo Group LLC• 0.000%, 03/18/19		500		497,060

				988,218

Lodging — 0.3%
Caesars Entertainment Operating Co., Inc.• 0.000%, 10/31/16		499		504,332

Media — 0.5%
Cumulus Media Holdings, Inc.• 0.000%, 09/16/18		499		496,280
Univision Communications, Inc.• 0.000%, 03/31/17		500		472,815

				969,095

Pharmaceuticals — 0.1%
Valeant Pharmaceuticals International, Inc.• 0.000%, 06/14/19		250		246,408

Retail — 0.6%
Jo-Ann Stores, Inc.• 0.000%, 03/18/18		500		492,500
Pf Changs Cn Bistro• 0.000%, 06/22/19		500		500,315

				992,815

Software — 0.3%
First Data Corp.• 0.000%, 03/24/17		500		475,805

Telecommunications — 0.6%
Intelsat Jackson Holdings S.A.• 5.250%, 07/12/12		500		498,855
Syniverse Holdings, Inc.• 0.000%, 04/23/19		500		496,040

				994,895

TOTAL LOAN AGREEMENTS (Cost $9,148,692)				9,152,866

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 12.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		47,171		47,171
T. Rowe Price Reserve Investment Fund		21,496,694		21,496,694

TOTAL SHORT-TERM INVESTMENTS (Cost $21,543,865)				21,543,865

TOTAL INVESTMENTS — 100.0% (Cost $166,859,458)			$	170,952,635

‡	Loan Agreements in which the Fund invests generally pay interest at rates which are periodically predetermined by reference to a base

lending rate plus a premium. These base lending rates are generally (i) the Prime Rate offered by one or more major U.S. banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (“LIBOR”) or (iii) the Certificate of Deposit rate. Rate shown represents the actual rate at June 30, 2012. Loan Agreements, while exempt from registration under the Security Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Floating rate Loan Agreements often require repayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.

*	Non-income producing security.

^	Illiquid security. The total market value of illiquid securities at June 30, 2012 is $843,824.

•	Variable Rate Security.

¤	Defaulted Security.

+	Effective Yield. For those bonds that become coupon paying at a future date, the interest rate disclosed represents that annualized effective yield from the date of acquisition to maturity.

CONV — Convertible Security.

LLC — Limited Liability Company.

LP — Limited Partnership.

PIK — Payment in Kind Security.

Plc — Public Limited Company.

STEP — Step Coupon Bond.


Country Weightings as of 06/30/2012††
United States	90	%
Bermuda	2
Netherlands	2
Canada	1
Germany	1
Luxembourg	1
United Kingdom	1
Other	2

Total	100	%

††	% of total investments as of June 30, 2012

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

High Yield Bond Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	1,289,500	$	1,289,500	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		96,126		96,126		—		—
PREFERRED STOCKS
Auto Manufacturers		346,940		346,940		—		—
Banks		863,322		863,322		—		—
Electric		53,470		53,470		—		—
Media		109,200		—		109,200		—
Packaging and Containers		—		—		—		—
Telecommunications		793,125		793,125		—		—
CORPORATE BONDS		136,704,221		—		136,704,221		—
LOAN AGREEMENTS		9,152,866		—		9,152,866		—
SHORT-TERM INVESTMENTS		21,543,865		21,543,865		—		—

TOTAL INVESTMENTS	$	170,952,635	$	24,986,348	$	145,966,287	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Flexibly Managed Fund


	Number of Shares		Value†
COMMON STOCKS — 61.5%
Aerospace & Defense — 2.5%
United Technologies Corp.		612,500	$	46,262,125

Agriculture — 0.9%
Philip Morris International, Inc.		186,800		16,300,168

Auto Manufacturers — 0.7%
General Motors Co.*		620,700		12,240,204

Auto Parts & Equipment — 1.7%
Delphi Automotive Plc*		502,900		12,823,950
TRW Automotive Holdings Corp.*		502,200		18,460,872

				31,284,822

Banks — 3.7%
JPMorgan Chase & Co.		927,100		33,125,283
Northern Trust Corp.		239,700		11,030,994
U.S. Bancorp		698,600		22,466,976

				66,623,253

Beverages — 2.3%
Coca-Cola Enterprises, Inc.		171,700		4,814,468
PepsiCo, Inc.		523,000		36,955,180

				41,769,648

Chemicals — 0.5%
Potash Corp. of Saskatchewan, Inc.		222,600		9,725,394

Computers — 2.9%
Accenture Plc,Class A		84,100		5,053,569
Apple, Inc.*		67,000		39,128,000
Dell, Inc.*		275,300		3,446,756
International Business Machines Corp.		30,900		6,043,422

				53,671,747

Cosmetics & Personal Care — 2.0%
The Procter & Gamble Co.		584,782		35,817,897

Diversified Financial Services — 3.7%
BlackRock, Inc.		127,500		21,652,050
Invesco Ltd.		1,275,608		28,828,741
TD Ameritrade Holding Corp.		1,042,900		17,729,300

				68,210,091

Electric — 1.7%
American Electric Power Co., Inc.		123,700		4,935,630
Edison International		358,800		16,576,560
MDU Resources Group, Inc.		274,400		5,929,784
PG&E Corp.		93,600		4,237,272

				31,679,246

Electronics — 5.2%
TE Connectivity Ltd.		879,625		28,068,834
Thermo Fisher Scientific, Inc.		1,282,600		66,579,766

				94,648,600

Food — 3.0%
General Mills, Inc.		914,828		35,257,471
Kellogg Co.		397,800		19,623,474

				54,880,945


	Number of Shares		Value†

Healthcare Products — 0.5%
Covidien Plc		178,900	$	9,571,150
Henry Schein, Inc.*		1,978		155,253

				9,726,403

Healthcare Services — 2.3%
Laboratory Corp. of America Holdings*		192,700		17,845,947
Quest Diagnostics, Inc.		401,800		24,067,820

				41,913,767

Insurance — 0.4%
XL Group Plc		310,700		6,537,128

Internet — 1.5%
Google, Inc., Class A*		46,300		26,857,241

Media — 2.9%
The McGraw-Hill Cos., Inc.		301,300		13,558,500
The Walt Disney Co.		802,000		38,897,000
Time Warner, Inc.		66		2,541

				52,458,041

Miscellaneous Manufacturing — 3.9%
Actuant Corp., Class A		13,778		374,211
Danaher Corp.		1,051,678		54,771,390
Ingersoll-Rand Plc		220,400		9,296,472
Pall Corp.		134,300		7,360,983

				71,803,056

Oil & Gas — 1.5%
Apache Corp.		74,700		6,565,383
EOG Resources, Inc.		33,100		2,982,641
Exxon Mobil Corp.		108,300		9,267,231
Nexen, Inc.		375,000		6,333,750
WPX Energy, Inc.*		174,000		2,815,320

				27,964,325

Oil & Gas Services — 0.8%
Schlumberger Ltd.		97,900		6,354,689
Weatherford International Ltd.*		657,700		8,306,751

				14,661,440

Packaging and Containers — 1.6%
Ball Corp.		134,200		5,508,910
Crown Holdings, Inc.*		694,200		23,942,958

				29,451,868

Pharmaceuticals — 4.8%
AmerisourceBergen Corp.		359,400		14,142,390
Express Scripts Holding Co.*		86,800		4,846,044
McKesson Corp.		63,000		5,906,250
Pfizer, Inc.		2,710,208		62,334,784

				87,229,468

Pipelines — 1.6%
Spectra Energy Corp.		289,395		8,409,819
The Williams Cos., Inc.		731,470		21,080,965

				29,490,784

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Flexibly Managed Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — 1.8%
Dollar General Corp.*		271,500	$	14,766,885
Kohl’s Corp.		296,300		13,478,687
Lowe’s Cos., Inc.		146,800		4,174,992

				32,420,564

Semiconductors — 0.7%
Texas Instruments, Inc.		443,000		12,709,670

Software — 2.6%
Fiserv, Inc.*		361,000		26,071,420
Microsoft Corp.		154,300		4,720,037
Oracle Corp.		585,800		17,398,260

				48,189,717

Telecommunications — 2.4%
AT&T, Inc.		1,041,800		37,150,588
Cisco Systems, Inc.		333,500		5,726,195

				42,876,783

Toys, Games & Hobbies — 0.6%
Hasbro, Inc.		311,200		10,540,344

Transportation — 0.8%
CSX Corp.		669,000		14,958,840

TOTAL COMMON STOCKS (Cost $960,709,199)				1,122,903,579

PREFERRED STOCKS — 2.0%
Auto Manufacturers — 0.3%
General Motors Co.CONV		163,000		5,411,600

Banks — 0.2%
U.S. Bancorp Series F		71,000		2,029,180
U.S. Bancorp Series G		90,000		2,464,200

				4,493,380

Diversified Financial Services — 0.4%
AMG Capital Trust I CONV		161,100		7,914,037

Electric — 0.6%
PPL Corp.		153,500		8,207,645
SCE Trust I*		70,000		1,783,600

				9,991,245

Finance — 0.0%
Federal National Mortgage Association CONV*		70		269,500

Food — 0.1%
Heinz Finance Co. (H.J.) CONV 144A @^		15		1,609,688

Housewares — 0.4%
Newell Financial Trust I CONV		134,300		6,748,575

TOTAL PREFERRED STOCKS (Cost $42,811,411)				36,438,025


	Par (000)		Value†
CORPORATE BONDS — 9.9%
Advertising — 0.2%
Lamar Media Corp. 9.750%, 04/01/14	$	2,730	$	3,057,600

Aerospace & Defense — 0.3%
United Technologies Corp. 0.967%, 06/01/15		4,725		4,775,449

Airlines — 0.8%
American Airlines Pass Through Trust 2009-1A 10.375%, 07/02/19		395		422,855
Continental Airlines 2009-1 Class A Pass Through Trust 9.000%, 07/08/16		885		1,013,039
Continental Airlines 2009-2 Class A Pass Through Trust 7.250%, 11/10/19		739		833,709
Continental Airlines 2012-1 Class A Pass Through Trust 4.150%, 04/11/24		2,210		2,171,325
Continental Airlines 2012-1 Class B Pass Through Trust 6.250%, 04/11/20		465		469,650
Continental Airlines, Inc. 4.500%, 01/15/15		2,730		4,002,862
Continental Airlines, Inc. 144A @ 6.750%, 09/15/15		890		914,475
Delta Air Lines 2011-1, Pass Through Trust 5.300%, 04/15/19		666		708,868
Delta Air Lines, Inc. 7.750%, 12/17/19		731		829,625
US Airways 2010-1 Class A, Pass Through Trust 6.250%, 04/22/23		2,311		2,426,071
US Airways 2010-1 Class B, Pass Through Trust 8.500%, 04/22/17		330		338,010

				14,130,489

Banks — 0.0%
CIT Group, Inc., 144A @ 5.250%, 04/01/14^		475		491,625
Regions Bank 7.500%, 05/15/18		90		101,250
Synovus Financial Corp. 5.125%, 06/15/17		105		96,600

				689,475

Coal — 0.8%
Consol Energy, Inc.
8.000%, 04/01/17		6,370		6,608,875
8.250%, 04/01/20		910		955,500
Peabody Energy Corp.
7.375%, 11/01/16		830		913,000
6.500%, 09/15/20		870		880,875
4.750%, 12/15/41 CONV		3,399		2,757,439

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Flexibly Managed Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Coal — (continued)
Peabody Energy Corp. 144A @ 6.000%, 11/15/18	$	2,150	$	2,139,250

				14,254,939

Diversified Financial Services — 2.1%
CNH Capital LLC, 144A 144A @ 6.250%, 11/01/16		700		749,000
Ford Motor Credit Co. LLC
7.000%, 10/01/13		2,000		2,134,044
8.000%, 06/01/14		2,100		2,329,519
3.875%, 01/15/15		4,530		4,665,057
2.750%, 05/15/15		2,300		2,318,662
4.250%, 02/03/17		1,340		1,404,626
6.625%, 08/15/17		1,675		1,905,269
5.000%, 05/15/18		1,800		1,911,388
International Lease Finance Corp. 144A @ 6.500%, 09/01/14		8,130		8,577,150
6.750%, 09/01/16^		2,270		2,440,250
7.125%, 09/01/18		3,700		4,079,250
Janus Capital Group, Inc. STEP• 6.700%, 06/15/17		1,850		1,984,445
Legg Mason, Inc. 144A @ 5.500%, 05/21/19		3,020		3,054,063

				37,552,723

Electric — 0.5%
Calpine Construction Finance Co. LP 144A @ 8.000%, 06/01/16		2,800		3,024,000
Calpine Corp. 144A @ 7.500%, 02/15/21		1,275		1,377,000
CMS Energy Corp.
6.550%, 07/17/17		895		1,014,268
8.750%, 06/15/19		415		511,925
EP Energy LLC / EP Energy Finance, Inc. 144A @^ 6.875%, 05/01/19		975		1,018,875
Nisource Finance Corp. 4.450%, 12/01/21		635		666,168
Otter Tail Corp. 9.000%, 12/15/16^		890		963,425

				8,575,661

Healthcare Services — 0.1%
Fresenius Medical Care U.S. Finance II, Inc. 144A @
5.625%, 07/31/19		750		781,875
5.875%, 01/31/22		425		442,531

				1,224,406

Lodging — 0.3%
MGM Resorts International
13.000%, 11/15/13		1,690		1,926,600
10.375%, 05/15/14		770		868,175
9.000%, 03/15/20		2,075		2,303,250

				5,098,025


	Par (000)		Value†

Media — 0.3%
CCH II LLC 13.500%, 11/30/16	$	602	$	670,928
CCO Holdings LLC 7.250%, 10/30/17		850		926,500
Sirius XM Radio, Inc. 144A @^ 9.750%, 09/01/15		100		106,000
Unitymedia Hessen GmbH & Co. KG 144A @ 7.500%, 03/15/19		860		1,131,865
Unitymedia Hessen GmbH & Co. KG/ Unitymedia NRW GmbH 144A @^ 8.125%, 12/01/17		1,720		2,329,031
Unitymedia Hessen GmbH & Co. Kg/ Unitymedia NRW GmbH 144A @^ 7.500%, 03/15/19		575		609,500
Univision Communications, Inc. 144A @ 7.875%, 11/01/20		350		374,500

				6,148,324

Metal Fabricate/Hardware — 0.1%
Schaeffler Finance BV 144A @
7.750%, 02/15/17		1,250		1,303,125
8.500%, 02/15/19		1,425		1,521,187

				2,824,312

Miscellaneous Manufacturing — 0.1%
RBS Global, Inc. 8.500%, 05/01/18		505		547,925
Tyco Electronics Group SA 6.000%, 10/01/12		1,750		1,772,465

				2,320,390

Oil & Gas — 1.2%
Concho Resources, Inc. 5.500%, 10/01/22		1,300		1,287,000
Denbury Resources, Inc.
9.750%, 03/01/16		250		274,688
8.250%, 02/15/20		1,125		1,231,875
EQT Corp.
6.500%, 04/01/18		1,620		1,841,637
8.125%, 06/01/19		1,754		2,103,507
4.875%, 11/15/21		8,005		8,176,587
Laredo Petroleum, Inc. 144A @ 7.375%, 05/01/22		500		520,000
Plains Exploration & Production Co. 6.750%, 02/01/22		2,150		2,193,000
QEP Resources, Inc. 6.875%, 03/01/21		475		527,250
Questar Market Resources, Inc. 6.800%, 03/01/20		440		482,900
Range Resources Corp.
8.000%, 05/15/19		750		819,375
5.750%, 06/01/21		1,250		1,306,250
SM Energy Co. 144A @ 6.500%, 01/01/23		975		982,313

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Flexibly Managed Fund


	Par (000)		Value†
CORPORATE BONDS — (continued)
Oil & Gas — (continued)
Whiting Petroleum Corp. 6.500%, 10/01/18	$	350	$	372,750

				22,119,132

Oil & Gas Services — 0.2%
Oil States International, Inc. CONV 2.375%, 07/01/25		1,767		3,677,569

Packaging and Containers — 0.0%
Ball Corp. 7.375%, 09/01/19		50		55,250

Real Estate — 0.1%
Host Hotels & Resorts LP 5.875%, 06/15/19		1,800		1,944,000

Real Estate Investment Trusts — 0.0%
American Tower Corp. 4.625%, 04/01/15		200		211,699

Retail — 0.5%
AmeriGas Finance LLC
6.750%, 05/20/20		800		816,000
7.000%, 05/20/22		3,175		3,270,250
Dollar General Corp.
4.125%, 07/15/17		805		816,069
11.875%, 07/15/17 PIK		1,225		1,300,044
Penske Auto Group, Inc. 7.750%, 12/15/16		2,125		2,204,687
Rite Aid Corp. 10.375%, 07/15/16		1,225		1,296,203

				9,703,253

Semiconductors — 0.3%
Xilinx, Inc. CONV 3.125%, 03/15/37		4,265		5,086,012

Software — 0.1%
First Data Corp. 144a @ 7.375%, 06/15/19		2,575		2,626,500

Telecommunications — 1.9%
British Telecommunications PLC
1.593%, 12/20/13		1,630		1,639,350
2.000%, 06/22/15		1,110		1,125,252
CC Holdings GS LLC 144A @ 7.750%, 05/01/17		4,380		4,746,825
Cricket Communications, Inc. 7.750%, 10/15/20		1,470		1,403,850
Crown Castle International Corp. 7.125%, 11/01/19		2,840		3,045,900
Matterhorn Mobile SA 6.750%, 05/15/19 144A @		930		1,009,219
Nextel Communications, Inc. 5.950%, 03/15/14		1,625		1,627,031
SBA Communications Corp. CONV 1.875%, 05/01/13		959		1,328,215
SBA Telecommunications, Inc.
8.000%, 08/15/16		184		195,960


	Par (000)		Value†

Telecommunications — (continued)
SBA Telecommunications, Inc. — (continued)
8.250%, 08/15/19	$	133	$	145,635
Sprint Capital Corp. 6.900%, 05/01/19		300		282,000
Sprint Nextel Corp. 144A @
9.000%, 11/15/18		6,790		7,587,825
11.500%, 11/15/21		450		501,750
UPCB Finance III Ltd. @ 6.625%, 07/01/20		1,790		1,816,850
UPCB Finance V Ltd. 144A @ 7.250%, 11/15/21		3,980		4,159,100
UPCB Finance VI Ltd. 144A @ 6.875%, 01/15/22		3,700		3,774,000

				34,388,762

TOTAL CORPORATE BONDS (Cost $171,675,409)				180,463,970

LOAN AGREEMENTS — 9.8%‡
Aerospace & Defense — 0.0%
Delos Aircraft Bank• 4.750%, 04/12/16		500		500,625

Auto Parts & Equipment — 1.0%
Federal Mogul Corp.•
0.000%, 12/27/14 2.175%-2.1875%		10,931		10,384,293
0.000%, 12/27/15 2.1775%-2.1875%,		8,362		7,944,240

				18,328,533

Banks — 0.5%
Cedar Fair Bank• 4.000%, 12/15/17		3,179		3,167,457
FleetPride Corp.• 6.750%, 12/06/17		1,617		1,616,196
Flying Fortess Bank• 5.000%, 06/30/17		2,475		2,478,094
Vantiv Bank• 3.750%, 02/24/19		2,519		2,513,448

				9,775,195

Diversified Financial Services — 0.6%
Nuveen Investments, Inc.•
0.000%, 05/13/17 2.1775%-2.1875%		1,885		1,859,230
0.000%, 05/13/17 5.720-5.803%		2,203		2,165,249
8.250%, 03/01/19		2,375		2,377,969
Pinnacle Foods Finance LLC 2.744-3.081%• 0.000%, 04/02/14		2,421		2,410,907
Pinncale Foods Bank• 4.750%, 07/16/12		648		640,270
Terra-Gen Finance Co., LLC•^ 0.000%, 06/22/17		625		622,656
WorldPay• 0.000%, 11/30/17		1,410		1,406,714

				11,482,995

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Flexibly Managed Fund


	Par (000)		Value†
LOAN AGREEMENTS‡ — (continued)
Electric — 0.0%
EP Energy Bank• 2.175%, 05/25/18		725		731,119

Food Service — 2.1%
Dineequity, Inc• 4.250%, 10/19/17		6,472		6,437,381
Dunkin Brands, Inc. 4.00%-5.250%• 0.000%, 11/23/17		32,294		31,825,957

				38,263,338

Healthcare Services — 0.2%
HCA, Inc.• 4.596%, 11/17/12		3,323		3,311,236

Holding Companies — 0.2%
Formula One• 0.000%, 04/28/17		2,993		2,988,281

Household Products & Wares — 0.3%
Reynolds Consumer Products Holding, Inc.• 6.500%, 02/09/18		3,126		3,138,051
Reynolds Group Holdings, Inc.• 6.500%, 08/09/18		1,964		1,977,394

				5,115,445

Media — 1.0%
CCO Holdings LLC• 2.745%, 09/06/14		500		495,715
Charter Communications Operating LLC• 3.500%, 09/06/16		3,357		3,329,306
Univision Communications, Inc.• 4.495%, 03/31/17		15,542		14,696,755

				18,521,776

Metal Fabricate/Hardware — 0.3%
Schaeffler Finance Bv• 6.000%, 01/27/17		4,800		4,792,512

Miscellaneous Manufacturing — 0.3%
Colfax Corp.• 4.500%, 01/12/19		5,373		5,361,233

Retail — 0.6%
Dollar General Corp.• 2.953%, 07/31/12		7,679		7,664,633
Rite Aid Corp.• 4.500%, 03/03/18		2,750		2,688,125

				10,352,758

Software — 0.6%
First Data Corp.• 5.245%, 03/24/17		11,686		11,120,888

Telecommunications — 2.1%
Crown Castle International Corp.• 4.000%, 01/13/19		10,583		10,411,121
Intelsat Jackson Holdings S.A.• 5.250%, 04/02/18	$	18,946	$	18,902,852


	Par (000)			Value†

Telecommunications — (continued)
SBA Communications Corp.• 0.000%, 06/30/18		941			931,095
Telesat Canada, Inc.• 4.250%, 03/28/19		8,360			8,259,680

					38,504,748

TOTAL LOAN AGREEMENTS (Cost $176,903,820)					179,150,682

	Number of Contracts			Value†
PURCHASED OPTIONS — 0.0%
Call Option — 0.0%
Avon Products, Inc., $20.00 01/19/13 (Cost $22,585)		177			7,080


	Number of Shares			Value†
SHORT-TERM INVESTMENTS — 16.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		2,528,864			2,528,864
T. Rowe Price Reserve Investment Fund		303,088,904			303,088,904

TOTAL SHORT-TERM INVESTMENTS (Cost $305,617,768)					305,617,768

TOTAL INVESTMENTS — 100.0% (Cost $1,657,740,192)				$	1,824,581,104


	Number of Contracts			Value†
WRITTEN OPTIONS
Call Options
Accent, $65, 01/19/13		(783	)		(129,195	)
AES, $40, 01/19/13		(1,237	)		(173,180	)
AT&T Inc., $30, 01/19/13		(2,815	)		(1,579,215	)
AT&T Inc., $32, 01/19/13		(3,387	)		(1,253,190	)
AT&T, $34, 01/19/13		(2,108	)		(453,220	)
AT&T, $35, 01/19/13		(2,108	)		(316,200	)
BlackRock, Inc., $210, 01/19/13		(452	)		(72,320	)
Cisco, $17.50, 01/19/13		(1,560	)		(179,400	)
Cisco, $22, 01/19/13		(1,775	)		(21,300	)
Covidien Plc, $50, 07/21/12		(1,537	)		(537,950	)
Dell, Inc., $17.50, 01/19/13		(2,753	)		(27,530	)
Disney, $45, 01/19/13		(636	)		(348,528	)
Disney, $45, 10/ 20/12		(627	)		(291,555	)
Disney, $46, 01/19/13		(636	)		(300,192	)
Disney, $46, 10/20/12		(627	)		(247,665	)
Disney, $47, 01/19/13		(636	)		(260,760	)
Disney, $47, 10/20/12		(627	)		(203,775	)
EOG, $110, 01/19/13		(69	)		(18,630	)
EOG, $115, 01/19/13		(69	)		(12,420	)
Express, $60, 01/19/13		(22	)		(5,654	)

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Flexibly Managed Fund


	Number of Contracts			Value†
WRITTEN OPTIONS — (continued)
Call Options — (continued)
Exxon, $87.50, 01/19/13		(1,083	)		(341,145	)
Google, $590, 01/19/13	$	(91	)	$	(382,200	)
Google, $650, 01/19/13		(372	)		(725,400	)
Ingersoll-Rand PLC, $40, 01/ 19/13		(2,003	)		(1,041,560	)
Ingersoll-Rand PLC, $40, 01/ 19/13		(201	)		(104,520	)
International Business Machines Corp., $200, 01/19/13		(309	)		(267,285	)
JPMorgan, $50, 01/19/13		(2,822	)		(42,330	)
JPMorgan, $45, 09/22/12		(719	)		(7,190	)
JPMorgan, $46, 09/22/12		(719	)		(5,752	)
Kellogg Co., $55, 01/19/13		(970	)		(18,430	)
Kellogg Co., $60, 01/19/13		(603	)		(9,045	)
Kohls, $45, 10/20/12		(275	)		(77,000	)
Kohls, $47, 10/20/12		(275	)		(49,500	)
Kohls, $48, 10/20/12		(275	)		(37,125	)
Kohls, $52.50, 01/19/13		(543	)		(46,155	)
Kohls, $55 01/19/13		(543	)		(27,150	)
Kohls, $55, 10/2012		(728	)		(7,280	)
Microsoft Corp., $30 01/19/13		(1,543	)		(344,089	)
PepsiCo, Inc., $70, 01/19/13		(1,079	)		(303,199	)
PepsiCo, Inc., $67.50, 01/19/13		(692	)		(301,020	)
PepsiCo, Inc., $70, 10/20/12		(387	)		(85,140	)
PepsiCo, Inc., $70 01/19/13		(199	)		(55,919	)
PepsiCo, Inc., $72.50 01/19/13		(197	)		(30,338	)
PepsiCo, Inc., $72.50, 01/19/13		(387	)		(59,598	)
Pfizer, $22.50, 01/19/13		(12,644	)		(1,631,076	)
Pfizer, $24, 01/19/13		(6,127	)		(324,731	)
PG, $65, 01/19/13		(1,030	)		(99,910	)
Philip Morris International, Inc., $85, 01/19/13		(373	)		(216,340	)
Philip Morris International, Inc., $90, 01/19/13		(374	)		(108,834	)
Schlumberger Ltd., $ 75, 01/19/13		(979	)		(208,527	)
Texas Instruments, Inc., $40, 01/19/13		(777	)		(1,554	)
The Procter & Gamble Co., $70, 01/19/13		(306	)		(10,404	)
US Bancorp, $32, 01/19/13		(2,084	)		(483,488	)

TOTAL WRITTEN OPTIONS (Premiums $12,799,208)					(13,885,113	)

†	See Security Valuation Note.

*	Non-income producing security.

•	Variable Rate Security.

^	Illiquid security. The total market value of illiquid securities at June 30, 2012 is $10,191,050.

‡	Loan Agreements in which the Fund invests generally pay interest at rates which are periodically predetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the Prime Rate offered by one or more major U.S. banks, (ii) the

lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (“LIBOR”) or (iii) the Certificate of Deposit rate. Rate shown represents the actual rate at June 30, 2012. Loan Agreements, while exempt from registration under the Security Act of 1933, as amended (the “1933 Act”), contain certain restrictions on resale and cannot be sold publicly. Floating rate Loan Agreements often require repayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturity shown.

CONV — Convertible Security.

LLC — Limited Liability Company.

LP — Limited Partnership.

PIK — Payment in Kind Security.

Plc — Public Limited Company.


Country Weightings as of 06/30/2012††
United States	94	%
Switzerland	2
Canada	1
Cayman Islands	1
Ireland	1
United Kingdom	1

Total	100	%

††	% of total investments as of June 30, 2012

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	1,122,903,579	$	1,122,903,579	$	—	$	—
PREFERRED STOCKS		36,438,025		36,438,025		—		—
CORPORATE BONDS		180,463,970		—		180,463,970		—
LOAN AGREEMENTS		179,150,682		—		179,150,682		—
PURCHASED OPTIONS		7,080		—		7,080		—
SHORT-TERM INVESTMENTS		305,617,768		305,617,768		—		—

TOTAL INVESTMENTS	$	1,824,581,104	$	1,464,959,372	$	359,621,732	$	—

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Flexibly Managed Fund


LIABILITIES TABLE
Description	Total Market Value at 06/30/2012			Level 1 Quoted Price			Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
WRITTEN OPTIONS	$	(13,885,113	)	$	(9,169,366	)	$	(4,715,747	)	$	—

TOTAL LIABILITIES	$	(13,885,113	)	$	(9,169,366	)	$	(4,715,747	)	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Balanced Fund


	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 59.9%
Penn Series Index 500 Fund* (Cost $31,146,302)		4,138,432	$	41,839,547

AFFILIATED FIXED INCOME FUNDS — 39.9%
Penn Series Quality Bond Fund* (Cost $23,440,339)		2,145,618		27,893,031

SHORT-TERM INVESTMENTS — 0.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $126,001)		126,001		126,001

TOTAL INVESTMENTS — 100.0% (Cost $54,712,642)			$	69,858,579

†	See Security Valuation Note.

*	Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	41,839,547	$	41,839,547	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		27,893,031		27,893,031		—		—
SHORT-TERM INVESTMENTS		126,001		126,001		—		—

TOTAL INVESTMENTS	$	69,858,579	$	69,858,579	$	—	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Growth Stock Fund


	Number of Shares		Value†
COMMON STOCKS — 94.3%
Aerospace & Defense — 0.7%
The Boeing Co.		18,400	$	1,367,120

Airlines — 0.3%
United Continental Holdings, Inc.*		20,800		506,064

Apparel — 2.0%
Coach, Inc.		7,100		415,208
NIKE, Inc., Class B		22,100		1,939,938
Prada S.p.A.		106,300		717,300
Ralph Lauren Corp.		5,300		742,318

				3,814,764

Banks — 0.4%
U.S. Bancorp		23,100		742,896

Beverages — 0.5%
Monster Beverage Corp.*		13,300		946,960

Biotechnology — 3.0%
Alexion Pharmaceuticals, Inc.*		14,300		1,419,990
Biogen Idec, Inc.*		10,400		1,501,552
Celgene Corp.*		10,000		641,600
Gilead Sciences, Inc.*		21,400		1,097,392
Human Genome Sciences, Inc.*		6,500		85,345
Regeneron Pharmaceuticals, Inc.*		4,500		513,990
Vertex Pharmaceuticals, Inc.*		8,600		480,912

				5,740,781

Chemicals — 3.2%
Ecolab, Inc.		6,900		472,857
Praxair, Inc.		37,200		4,044,756
The Sherwin-Williams Co.		13,400		1,773,490

				6,291,103

Commercial Services — 4.7%
Mastercard, Inc., Class A		13,000		5,591,430
Visa, Inc., Class A		28,700		3,548,181

				9,139,611

Computers — 14.4%
Accenture Plc,Class A		33,500		2,013,015
Apple, Inc.*		38,400		22,425,600
EMC Corp.*		53,900		1,381,457
IHS, Inc., Class A*		8,800		948,024
Teradata Corp.*		14,600		1,051,346

				27,819,442

Distribution & Wholesale — 1.9%
Fastenal Co.		58,300		2,350,073
Fossil, Inc.*		8,100		619,974
W.W. Grainger, Inc.		3,600		688,464

				3,658,511

Diversified Financial Services — 3.4%
American Express Co.		46,700		2,718,407
Franklin Resources, Inc.		14,900		1,653,751
IntercontinentalExchange, Inc.*		6,700		911,066
Invesco Ltd.		58,300		1,317,580

				6,600,804


	Number of Shares		Value†

Electronics — 0.4%
Trimble Navigation Ltd.*		17,600	$	809,776

Food — 0.4%
Whole Foods Market, Inc.		8,200		781,624

Healthcare Products — 1.5%
Baxter International, Inc.		8,900		473,035
Covidien Plc		3,600		192,600
Edwards Lifesciences Corp.*		11,600		1,198,280
Stryker Corp.		19,700		1,085,470

				2,949,385

Healthcare Services — 0.6%
UnitedHealth Group, Inc.		21,600		1,263,600

Home Builders — 0.9%
D.R. Horton, Inc.		30,500		560,590
Lennar Corp., Class A		18,400		568,744
NVR, Inc.*		700		595,000

				1,724,334

Internet — 16.2%
Amazon.com, Inc.*		30,500		6,964,675
Baidu, Inc. ADR*		23,900		2,748,022
eBay, Inc.*		71,300		2,995,313
Facebook Inc.,Class A*^~		16,909		499,898
Facebook Inc.,Class B*^~		30,111		890,201
Google, Inc., Class A*		12,700		7,366,889
Groupon Inc.*		49,600		527,248
LinkedIn Corp.,Class A*		12,500		1,328,375
priceline.com, Inc.*		9,100		6,047,132
Tencent Holdings Ltd.		59,900		1,768,924
Twitter, Inc.*^~		7,697		123,152

				31,259,829

Leisure Time — 0.8%
Carnival Plc		23,455		801,936
Harley-Davidson, Inc.		14,400		658,512

				1,460,448

Lodging — 2.5%
Las Vegas Sands Corp.		34,600		1,504,754
Marriott International, Inc., Class A		38,297		1,501,243
MGM Resorts International*		37,100		414,036
Starwood Hotels & Resorts Worldwide, Inc.*		25,900		1,373,736

				4,793,769

Machinery-Diversified — 1.1%
Deere & Co.		8,900		719,743
Roper Industries, Inc.		9,300		916,794
The Babcock & Wilcox Co.*		19,600		480,200

				2,116,737

Media — 0.9%
The Walt Disney Co.*		35,200		1,707,200

Metal Fabricate/Hardware — 1.6%
Precision Castparts Corp.		19,200		3,158,208

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Growth Stock Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — 2.8%
Danaher Corp.		104,100	$	5,421,528

Oil & Gas — 1.7%
EOG Resources, Inc.		14,300		1,288,573
Occidental Petroleum Corp.		14,000		1,200,780
Range Resources Corp.		11,800		730,066

				3,219,419

Oil & Gas Services — 0.8%
Schlumberger Ltd.		23,700		1,538,367

Pharmaceuticals — 4.3%
Allergan, Inc.		8,000		740,560
Catalyst Health Solutions, Inc.*		5,300		495,232
Express Scripts Holding Co.*		30,100		1,680,483
FMC Technologies, Inc.*		29,900		1,172,977
McKesson Corp.		23,700		2,221,875
Novo Nordisk A/S, B Shares*		3,643		528,369
SXC Health Solutions Corp.*		6,700		664,707
Valeant Pharmaceuticals International, Inc.*		18,800		842,052

				8,346,255

Pipelines — 0.6%
The Williams Cos., Inc.		39,400		1,135,508

Retail — 8.3%
AutoZone, Inc.*		3,900		1,431,963
CarMax, Inc.*		36,500		946,810
Chipotle Mexican Grill, Inc.*		4,800		1,823,760
Costco Wholesale Corp.		16,500		1,567,500
CVS Caremark Corp.		35,600		1,663,588
Dollar Tree, Inc.*		11,000		591,800
Ross Stores, Inc.		17,900		1,118,213
Starbucks Corp.		73,100		3,897,692
The Home Depot, Inc.		27,800		1,473,122
Tractor Supply Co.		4,000		332,240
Yum! Brands, Inc.		20,000		1,288,400

				16,135,088

Semiconductors — 3.3%
Broadcom Corp., Class A*		42,600		1,439,880
QUALCOMM, Inc.		88,000		4,899,840

				6,339,720

Software — 3.3%
Akamai Technologies, Inc.*		27,800		882,650
Autodesk, Inc.*		20,800		727,792
Check Point Software Technologies Ltd.*		13,100		649,629
Informatica Corp.*		21,100		893,796
Nuance Communications, Inc.*		41,200		981,384
Red Hat, Inc.*		22,000		1,242,560
Salesforce.com, Inc.*		7,600		1,050,776

				6,428,587

Telecommunications — 3.5%
Crown Castle International Corp.*		88,100		5,167,946
Juniper Networks, Inc.*		97,800		1,595,118

				6,763,064


	Number of Shares		Value†

Transportation — 4.3%
FedEx Corp.		22,000	$	2,015,420
J.B. Hunt Transport Services, Inc.		17,000		1,013,200
Kansas City Southern		17,200		1,196,432
Union Pacific Corp.		16,600		1,980,546
United Parcel Service, Inc., Class B		26,800		2,110,768

				8,316,366

TOTAL COMMON STOCKS (Cost $128,408,965)				182,296,868

PREFERRED STOCKS — 0.3%
Internet — 0.3%
Livingsocial, Series F CONV*^~		15,066		80,272
Twitter, Inc. Series A CONV*^~		20		320
Twitter, Inc. Series B CONV*^~		312		4,992
Twitter, Inc. Series B CONV*^~		5,772		92,352
Twitter, Inc. Series C CONV*^~		80		1,280
Twitter, Inc. Series C CONV*^~		1,566		25,056
Twitter, Inc. Series D CONV*^~		2,954		47,264
Twitter, Inc. Series F CONV*^~		1,040		16,640
Twitter, Inc. Series G-2 CONV*^~		12,129		194,064

TOTAL PREFERRED STOCKS (Cost $499,276)				462,240

REAL ESTATE INVESTMENT TRUSTS — 2.2%
Diversified — 2.2%
American Tower Corp. (Cost $2,461,718)		61,500		4,299,465

SHORT-TERM INVESTMENTS — 3.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		5,544,498		5,544,498
T. Rowe Price Reserve Investment Fund		687,085		687,085

TOTAL SHORT-TERM INVESTMENTS (Cost $6,231,583)				6,231,583

TOTAL INVESTMENTS — 100.0% (Cost $137,601,542)			$	193,290,156

^	Illiquid security. The total market value of illiquid securities at June 30, 2012 is $1,975,491.

†	See Security Valuation Note.

*	Non-income producing security.

~	Fair valued security. The total market value of fair valued securities at June 30, 2012 is $1,975,491.

ADR — American Depository Receipt.

CONV — Convertible Security.

Plc — Public Limited Company.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Growth Stock Fund


COMMON STOCKS COUNTRY DIVERSIFICATION	% of Market Value		Value†
United States		93.9%	$	181,489,942
China		2.3%		4,516,946
Ireland		1.2%		2,205,615
France		0.8%		1,538,367
Canada		0.4%		842,052
United Kingdom		0.4%		801,936
Italy		0.4%		717,300
Israel		0.3%		649,629
Denmark		0.3%		528,369


		100.0%	$	193,290,156


Country Weightings as of 06/30/2012††
United States	94	%
China	2
Canada	1
France	1
Ireland	1
Other	1

Total	100	%

††	% of total investments as of June 30, 2012

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Aerospace & Defense	$	1,367,120	$	1,367,120	$	—	$	—
Airlines		506,064		506,064		—		—
Apparel		3,814,764		3,097,464		717,300		—
Banks		742,896		742,896		—		—
Beverages		946,960		946,960		—		—
Biotechnology		5,740,781		5,740,781		—		—
Chemicals		6,291,103		6,291,103		—		—
Commercial Services		9,139,611		9,139,611		—		—
Computers		27,819,442		27,819,442		—		—
Distribution & Wholesale		3,658,511		3,658,511		—		—
Diversified Financial Services		6,600,804		6,600,804		—		—
Electronics		809,776		809,776		—		—
Food		781,624		781,624		—		—
Healthcare Products		2,949,385		2,949,385		—		—
Healthcare Services		1,263,600		1,263,600		—		—
Home Builders		1,724,334		1,724,334		—		—
Internet		31,259,829		27,977,654		3,159,023		123,152
Leisure Time		1,460,448		658,512		801,936		—
Lodging		4,793,769		4,793,769		—		—
Machinery - Diversified		2,116,737		2,116,737		—		—
Media		1,707,200		1,707,200		—		—
Metal Fabricate/Hardware		3,158,208		3,158,208		—		—


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS (continued)
Miscellaneous Manufacturing	$	5,421,528	$	5,421,528	$	—	$	—
Oil & Gas		3,219,419		3,219,419		—		—
Oil & Gas Services		1,538,367		1,538,367		—		—
Pharmaceuticals		8,346,255		7,817,886		528,369		—
Pipelines		1,135,508		1,135,508		—		—
Retail		16,135,088		16,135,088		—		—
Semiconductors		6,339,720		6,339,720		—		—
Software		6,428,587		6,428,587		—		—
Telecommunications		6,763,064		6,763,064		—		—
Transportation		8,316,366		8,316,366		—		—

TOTAL COMMON STOCKS		182,296,868		176,967,088		5,206,628		123,152

REAL ESTATE INVESTMENT TRUSTS		4,299,465		4,299,465
PREFERRED STOCKS		462,240		—		—		462,240
SHORT-TERM INVESTMENTS		6,231,583		6,231,583		—		—

TOTAL INVESTMENTS	$	193,290,156	$	187,498,136	$	5,206,628	$	585,392

Following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Investments in Securities (Market Value)
Balance as of 12/31/2011	$	1,905,082
Transfers Out of Level 3		(1,464,536	)
Purchases		134,048
Change in Appreciation/(Depreciation)		10,798

Balance as of 6/30/2012	$	585,392

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. The Fund had transfers of $1,464,536 from level 3 to level 2 fair value hierarchies during the reporting period. On May 18, 2012, Facebook, Inc. began publicly trading, therefore obtaining a significant observable input for the valuation of Facebook, Inc. Class A and Class B shares.

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Cap Growth Fund


	Number of Shares		Value†
COMMON STOCKS — 96.2%
Aerospace & Defense — 3.3%
BE Aerospace, Inc.*		8,990	$	392,503
The Boeing Co.		9,930		737,799

				1,130,302

Apparel — 2.3%
Coach, Inc.		7,780		454,975
Ralph Lauren Corp.		2,290		320,737

				775,712

Beverages — 4.9%
The Coca-Cola Co.		21,630		1,691,250

Biotechnology — 3.7%
Alexion Pharmaceuticals, Inc.*		5,240		520,332
Ariad Pharmaceuticals, Inc.*		7,630		131,312
Biogen Idec, Inc.*		4,360		629,497

				1,281,141

Chemicals — 2.1%
Monsanto Co.		8,720		721,842

Computers — 14.1%
Apple, Inc.*		7,109		4,151,656
EMC Corp.*		19,420		497,734
Fortinet, Inc.*		7,680		178,330

				4,827,720

Cosmetics & Personal Care — 0.7%
The Estee Lauder Cos., Inc., Class A		4,600		248,952

Diversified Financial Services — 3.7%
Affiliated Managers Group, Inc.*		4,890		535,211
American Express Co.		12,850		747,998

				1,283,209

Electrical Components & Equipment — 1.5%
AMETEK, Inc.		10,130		505,588

Electronics — 1.4%
Agilent Technologies, Inc.		12,600		494,424

Engineering & Construction — 0.6%
KBR, Inc.		7,880		194,715

Food — 1.3%
Whole Foods Market, Inc.		4,540		432,753

Healthcare Products — 1.4%
Intuitive Surgical, Inc.*		870		481,797

Home Builders — 0.6%
Lennar Corp., Class A		6,950		214,825

Internet — 11.5%
Amazon.com, Inc.*		2,930		669,065
eBay, Inc.*		18,810		790,208
F5 Networks, Inc.*		2,450		243,922
Facebook, Inc.*		14,570		453,418
Google, Inc., Class A*		2,025		1,174,642
LinkedIn Corp., Class A*		2,740		291,180


	Number of Shares		Value†

Internet — (continued)
TIBCO Software, Inc.*		10,340	$	309,373

				3,931,808

Lodging — 2.9%
Las Vegas Sands Corp.		11,490		499,700
Starwood Hotels & Resorts Worldwide, Inc.		9,330		494,863

				994,563

Machinery—Construction & Mining — 2.0%
Caterpillar, Inc.		7,930		673,336

Media — 1.7%
Comcast Corp., Class A		18,690		597,519

Metal Fabricate/Hardware — 0.9%
Precision Castparts Corp.		1,820		299,372

Miscellaneous Manufacturing — 1.0%
SPX Corp.		5,380		351,422

Oil & Gas — 2.6%
Anadarko Petroleum Corp.		3,810		252,222
Cabot Oil & Gas Corp.		6,650		262,010
Concho Resources, Inc.*		4,600		391,552

				905,784

Oil & Gas Services — 2.2%
Schlumberger Ltd.		11,430		741,921

Pharmaceuticals — 3.4%
Allergan, Inc.		7,040		651,693
Mead Johnson Nutrition Co.		3,380		272,124
Perrigo Co.		2,050		241,756

				1,165,573

Pipelines — 1.2%
Enbridge, Inc.		10,330		412,374

Real Estate — 1.2%
CBRE Group, Inc., Class A*		25,020		409,327

Retail — 8.5%
AutoZone, Inc.*		840		308,423
Bed Bath & Beyond, Inc.*		7,810		482,658
GNC Holdings, Inc., Class A		8,650		339,080
Lululemon Athletica, Inc.*		3,790		225,998
Starbucks Corp.		11,460		611,047
The Home Depot, Inc.		9,060		480,089
Yum! Brands, Inc.		7,340		472,843

				2,920,138

Semiconductors — 8.3%
Altera Corp.		18,500		626,040
Broadcom Corp., Class A*		14,030		474,214
Lam Research Corp.*		10,010		377,777
NXP Semiconductors N.V.*		17,130		398,273
QUALCOMM, Inc.		17,620		981,082

				2,857,386

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Cap Growth Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Software — 5.2%
Cerner Corp.*		7,120	$	588,539
Fidelity National Information Services, Inc.		11,410		388,853
Salesforce.com, Inc.*		2,280		315,233
VMware, Inc., Class A*		5,330		485,243

				1,777,868

Telecommunications — 2.0%
Acme Packet, Inc.*		5,180		96,607
Finisar Corp.*		10,810		161,717
Juniper Networks, Inc.*		18,370		299,615
Ubiquiti Networks, Inc.*		10,260		146,205

				704,144

TOTAL COMMON STOCKS (Cost $29,956,351)				33,026,765

REAL ESTATE INVESTMENT TRUSTS — 1.3%
Regional Malls — 1.3%
Simon Property Group, Inc. (Cost $396,858)		2,820		438,961

SHORT-TERM INVESTMENTS — 2.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $861,432)		861,432		861,432

TOTAL INVESTMENTS — 100.0% (Cost $31,214,641)			$	34,327,158

†	See Security Valuation Note.

*	Non-income producing security.


Country Weightings as of 06/30/2012††
United States	95	%
Canada	2
France	2
Netherlands	1

Total	100	%

††	% of total investments as of June 30, 2012

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	33,026,765	$	33,026,765$	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		438,961		438,961		—		—
SHORT-TERM INVESTMENTS		861,432		861,432		—		—

TOTAL INVESTMENTS	$	34,327,158	$	34,327,158	$	—	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Core Growth Fund


	Number of Shares		Value†
COMMON STOCKS — 98.2%
Apparel — 2.5%
Coach, Inc.		13,905	$	813,165
NIKE, Inc., Class B		14,940		1,311,433
Ralph Lauren Corp.		4,090		572,845

				2,697,443

Auto Parts & Equipment — 0.5%
BorgWarner, Inc.*		8,070		529,311

Banks — 0.7%
Capital One Financial Corp.		14,710		804,049

Beverages — 1.9%
Monster Beverage Corp.*		18,500		1,317,200
The Coca-Cola Co.		8,830		690,418

				2,007,618

Biotechnology — 3.3%
Alexion Pharmaceuticals, Inc.*		14,020		1,392,186
Gilead Sciences, Inc.*		30,790		1,578,911
Vertex Pharmaceuticals, Inc.*		9,410		526,207

				3,497,304

Chemicals — 2.2%
Monsanto Co.		28,940		2,395,653

Commercial Services — 5.2%
Alliance Data Systems Corp.*		10,270		1,386,450
Hertz Global Holdings, Inc.*		63,630		814,464
Mastercard, Inc., Class A		2,690		1,156,996
Visa, Inc., Class A		17,510		2,164,761

				5,522,671

Computers — 11.7%
Apple, Inc.*		17,005		9,930,920
Cognizant Technology Solutions Corp., Class A*		25,900		1,554,000
Teradata Corp.*		13,670		984,377

				12,469,297

Distribution & Wholesale — 1.2%
W.W. Grainger, Inc.		6,572		1,256,829

Diversified Financial Services — 1.5%
Ameriprise Financial, Inc.		13,500		705,510
Discover Financial Services		25,850		893,893

				1,599,403

Food — 3.2%
The Hershey Co.		17,807		1,282,638
Whole Foods Market, Inc.		23,030		2,195,220

				3,477,858

Healthcare Products — 1.6%
Intuitive Surgical, Inc.*		3,100		1,716,749

Healthcare Services — 2.5%
Novo Nordisk A S		9,960		1,447,586
UnitedHealth Group, Inc.		21,025		1,229,963

				2,677,549


	Number of Shares		Value†

Internet — 9.6%
Amazon.com, Inc.*		6,204	$	1,416,684
Baidu, Inc. ADR*		4,490		516,260
eBay, Inc.*		65,430		2,748,714
F5 Networks, Inc.*		11,750		1,169,830
Google, Inc., Class A*		4,060		2,355,084
priceline.com, Inc.*		1,570		1,043,297
TIBCO Software, Inc.*		34,910		1,044,507

				10,294,376

Leisure Time — 1.0%
Harley-Davidson, Inc.		22,720		1,038,986

Machinery—Construction & Mining — 1.4%
Caterpillar, Inc.		17,370		1,474,887

Machinery—Diversified — 1.5%
Cummins, Inc.		6,615		641,059
Deere & Co.		11,970		968,014

				1,609,073

Media — 1.0%
CBS Corp., Class B		33,975		1,113,700

Metal Fabricate/Hardware — 1.3%
Precision Castparts Corp.		8,800		1,447,512

Miscellaneous Manufacturing — 1.7%
Danaher Corp.		34,110		1,776,449

Oil & Gas — 2.0%
Ensco Plc ADR,Class A		17,240		809,763
Pioneer Natural Resources Co.		14,820		1,307,272

				2,117,035

Oil & Gas Services — 1.0%
Schlumberger Ltd.		16,010		1,039,209

Pharmaceuticals — 8.0%
Abbott Laboratories		45,410		2,927,583
Allergan, Inc.		22,940		2,123,556
Bristol-Myers Squibb Co.		49,980		1,796,781
Mead Johnson Nutrition Co.		21,320		1,716,473

				8,564,393

Pipelines — 1.6%
The Williams Cos., Inc.		60,060		1,730,929

Retail — 14.7%
Costco Wholesale Corp.		11,500		1,092,500
Dollar General Corp.*		62,088		3,376,966
Ltd. Brands, Inc.		39,430		1,676,958
Lululemon Athletica, Inc.*		15,080		899,220
Nordstrom, Inc.		25,210		1,252,685
Starbucks Corp.		34,540		1,841,673
The Home Depot, Inc.		37,930		2,009,911
TJX Cos., Inc.		27,600		1,184,868
Ulta Salon Cosmetics & Fragrance, Inc.*		8,710		813,340
Yum! Brands, Inc.		24,430		1,573,780

				15,721,901

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Core Growth Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Semiconductors — 4.3%
Avago Technologies Ltd.		40,050	$	1,437,795
Broadcom Corp., Class A*		20,960		708,448
QUALCOMM, Inc.		44,610		2,483,885

				4,630,128

Software — 6.0%
Autodesk, Inc.*		28,880		1,010,511
Cerner Corp.*		26,200		2,165,692
Citrix Systems, Inc.*		16,527		1,387,277
Red Hat, Inc.*		10,600		598,688
VMware, Inc., Class A*		13,580		1,236,323

				6,398,491

Telecommunications — 2.4%
Crown Castle International Corp.*		43,030		2,524,140

Transportation — 2.7%
Kansas City Southern		17,680		1,229,821
Union Pacific Corp.		13,538		1,615,218

				2,845,039

TOTAL COMMON STOCKS (Cost $83,556,261)				104,977,982

SHORT-TERM INVESTMENTS — 1.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,912,132)		1,912,132		1,912,132

TOTAL INVESTMENTS — 100.0% (Cost $85,468,393)			$	106,890,114

†	See Security Valuation Note.

*	Non-income producing security.

ADR — American Depository Receipt.

Plc — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Observable Input
TOTAL COMMON STOCKS	$	104,977,982	$	104,977,982	$	—	$	—
SHORT-TERM INVESTMENTS		1,912,132		1,912,132		—		—

TOTAL INVESTMENTS	$	106,890,114	$	106,890,114	$	—	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Cap Value Fund


	Number of Shares		Value†
COMMON STOCKS — 94.4%
Airlines — 0.5%
United Continental Holdings, Inc.*		31,740	$	772,234

Auto Manufacturers — 2.0%
Ford Motor Co.		226,670		2,173,765
Navistar International Corp.*		41,960		1,190,405

				3,364,170

Banks — 14.7%
Citigroup, Inc.		144,290		3,954,989
M&T Bank Corp.		42,600		3,517,482
PNC Financial Services Group, Inc.		37,920		2,317,291
SunTrust Banks, Inc.		119,770		2,902,027
The Goldman Sachs Group, Inc.		48,720		4,670,299
U.S. Bancorp		50,570		1,626,331
Wells Fargo & Co.		154,020		5,150,429

				24,138,848

Beverages — 6.6%
Molson Coors Brewing Co., Class B		80,710		3,358,343
PepsiCo, Inc.		22,700		1,603,982
The Coca-Cola Co.		76,320		5,967,461

				10,929,786

Chemicals — 2.4%
Celanese Corp., Series A*		21,320		738,098
The Mosaic Co.		59,810		3,275,196

				4,013,294

Commercial Services — 1.0%
Quanta Services, Inc.*		69,370		1,669,736

Diversified Financial Services — 3.8%
AerCap Holdings N.V.*		241,780		2,727,278
BlackRock, Inc.		20,690		3,513,576

				6,240,854

Electric — 5.5%
American Electric Power Co., Inc.		48,270		1,925,973
Edison International		85,110		3,932,082
GenOn Energy Inc.*		997,330		1,705,434
Public Service Enterprise Group, Inc.		44,320		1,440,400

				9,003,889

Electronics — 7.2%
Honeywell International, Inc.		98,080		5,476,787
TE Connectivity Ltd.		97,670		3,116,650
Tyco International Ltd.		60,450		3,194,782

				11,788,219

Gas — 0.6%
NiSource, Inc.		36,530		904,119

Healthcare Products — 1.3%
Baxter International, Inc.		40,570		2,156,296

Healthcare Services — 6.5%
Humana, Inc.		77,550		6,005,472
UnitedHealth Group, Inc.		80,890		4,732,065

				10,737,537


	Number of Shares		Value†

Household Products & Wares — 1.2%
Church & Dwight Co., Inc.		36,530	$	2,026,319

Insurance — 4.3%
ACE Ltd.		52,880		3,919,995
Marsh & McLennan Cos., Inc.		42,500		1,369,775
The Travelers Cos., Inc.		29,180		1,862,851

				7,152,621

Media — 2.7%
Comcast Corp., Class A		113,080		3,615,167
Viacom, Inc., Class B		16,130		758,433

				4,373,600

Oil & Gas — 9.7%
Apache Corp.		15,940		1,400,967
Chevron Corp.		79,980		8,437,890
Exxon Mobil Corp.		57,610		4,929,688
Valero Energy Corp.		47,310		1,142,536

				15,911,081

Oil & Gas Services — 1.5%
Baker Hughes, Inc.		59,340		2,438,874

Packaging and Containers — 1.4%
Rock-Tenn Co., Class A		42,130		2,298,191

Pharmaceuticals — 6.8%
Merck & Co., Inc.		129,960		5,425,830
Pfizer, Inc.		149,930		3,448,390
Teva Pharmaceutical Industries Ltd. ADR		60,300		2,378,232

				11,252,452

Retail — 3.2%
Talbots, Inc.*		44,460		112,039
Target Corp.		88,140		5,128,867

				5,240,906

Semiconductors — 2.2%
Analog Devices, Inc.		43,990		1,657,103
Xilinx, Inc.		59,250		1,989,023

				3,646,126

Telecommunications — 7.1%
AT&T, Inc.		66,647		2,376,632
Cisco Systems, Inc.		169,410		2,908,770
Juniper Networks, Inc.*		266,580		4,347,920
Verizon Communications, Inc.		45,200		2,008,688

				11,642,010

Textiles — 2.2%
Mohawk Industries, Inc.*		52,060		3,635,350

TOTAL COMMON STOCKS (Cost $149,672,881)				155,336,512

SHORT-TERM INVESTMENTS — 5.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $9,241,297)		9,241,297		9,241,297

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Cap Value Fund


	Number of Shares		Value†
PURCHASED OPTIONS — 0.0%
Call Options — 0.0%
Humama, Inc. expiring 07/21/12 at strike price $67.50		124	$	6,200
Humama, Inc. expiring 07/21/12 at strike price $72.50		120		3,600
UnitedHealth Group, Inc. expiring 07/21/12 at strike price $52.50		197		11,820
UnitedHealth Group, Inc. expiring 07/21/12 at strike price $55		197		8,865

TOTAL PURCHASED OPTIONS (Cost $63,618)				30,485

TOTAL INVESTMENTS — 100.0% (Cost $158,977,796)			$	164,608,294

†	See Security Valuation Note.

*	Non-income producing security.

ADR — American Depository Receipt.


Country Weightings as of 06/30/2012††
United States	91	%
Switzerland	4
Bermuda	2
Netherlands	2
Israel	1

Total	100	%

††	% of total investments as of June 30, 2012

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	155,336,512	$	155,336,512	$	—	$	—
PURCHASED OPTIONS		30,485		30,485		—		—
SHORT-TERM INVESTMENTS		9,241,297		9,241,297		—		—

TOTAL INVESTMENTS	$	164,608,294	$	164,608,294	$	—	$	—

The accompanying notes are an integral part of these financial

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Core Value Fund


	Number of Shares		Value†
COMMON STOCKS — 93.2%
Aerospace & Defense — 2.7%
General Dynamics Corp.		11,585	$	764,146
The Boeing Co.		22,766		1,691,514
United Technologies Corp.		21,407		1,616,871

				4,072,531

Agriculture — 1.1%
Philip Morris International, Inc.		19,654		1,715,008

Auto Manufacturers — 0.5%
PACCAR, Inc.		19,822		776,824

Auto Parts & Equipment — 0.5%
Johnson Controls, Inc.		27,511		762,330

Banks — 12.8%
Citigroup, Inc.		78,068		2,139,844
Fifth Third Bancorp		62,916		843,074
JPMorgan Chase & Co.		113,005		4,037,669
KeyCorp		126,330		977,794
PNC Financial Services Group, Inc.		31,808		1,943,787
Regions Financial Corp.		166,568		1,124,334
State Street Corp.		19,696		879,230
The Goldman Sachs Group, Inc.		14,177		1,359,007
U.S. Bancorp		47,499		1,527,568
Wells Fargo & Co.		134,619		4,501,659

				19,333,966

Biotechnology — 1.3%
Celgene Corp.*		11,375		729,820
Gilead Sciences, Inc.*		23,597		1,210,054

				1,939,874

Chemicals — 1.1%
Air Products & Chemicals, Inc.		9,358		755,471
LyondellBasell Industries N.V., Class A		21,672		872,732

				1,628,203

Computers — 4.5%
Apple, Inc.*		7,375		4,307,000
International Business Machines Corp.		12,878		2,518,679

				6,825,679

Diversified Financial Services — 2.9%
American Express Co.		58,263		3,391,489
Ameriprise Financial, Inc.		20,004		1,045,409

				4,436,898

Electric — 3.1%
American Electric Power Co., Inc.		39,332		1,569,347
NextEra Energy, Inc.		22,072		1,518,774
PG&E Corp.		18,007		815,177
PPL Corp.		27,714		770,726

				4,674,024

Electronics — 1.7%
Honeywell International, Inc.		28,054		1,566,536
Thermo Fisher Scientific, Inc.		20,274		1,052,423

				2,618,959


	Number of Shares		Value†

Food — 3.1%
Kraft Foods, Inc., Class A		54,687	$	2,112,012
Nestle SA ADR		18,672		1,115,465
Unilever N.V.		45,761		1,526,130

				4,753,607

Gas — 2.5%
National Grid Plc ADR		22,436		1,188,884
Sempra Energy		37,072		2,553,519

				3,742,403

Healthcare Products — 1.1%
Covidien Plc		31,859		1,704,457

Healthcare Services — 2.9%
Humana, Inc.		13,988		1,083,231
UnitedHealth Group, Inc.		56,255		3,290,917

				4,374,148

Insurance — 5.2%
ACE Ltd.		25,198		1,867,928
MetLife, Inc.		42,855		1,322,077
Prudential Financial, Inc.		26,596		1,288,044
The Travelers Cos., Inc.		32,090		2,048,625
XL Group Plc		62,973		1,324,952

				7,851,626

Internet — 0.6%
Google, Inc., Class A*		1,435		832,401

Machinery—Diversified — 0.7%
Deere & Co.		13,877		1,122,233

Media — 4.0%
Comcast Corp., Class A		47,810		1,528,486
The Walt Disney Co.		70,239		3,406,591
Time Warner, Inc.		28,669		1,103,757

				6,038,834

Mining — 1.4%
BHP Billiton Ltd. ADR		16,249		1,061,060
Freeport-McMoRan Copper & Gold, Inc.		31,708		1,080,291

				2,141,351

Miscellaneous Manufacturing — 2.9%
General Electric Co.		209,368		4,363,229

Oil & Gas — 12.9%
Anadarko Petroleum Corp.		12,351		817,636
Apache Corp.		8,909		783,012
Chevron Corp.		42,497		4,483,434
ConocoPhillips		52,137		2,913,416
Exxon Mobil Corp.		52,737		4,512,705
Marathon Petroleum Corp.		18,466		829,493
Occidental Petroleum Corp.		42,230		3,622,067
Phillips 66*		43,789		1,455,546

				19,417,309

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Large Core Value Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas Services — 1.6%
National Oilwell Varco, Inc.		24,190	$	1,558,803
Schlumberger Ltd.		12,325		800,016

				2,358,819

Pharmaceuticals — 7.5%
Johnson & Johnson		48,344		3,266,121
Merck & Co., Inc.		87,898		3,669,741
Pfizer, Inc.		193,060		4,440,380

				11,376,242

Retail — 5.0%
Bed Bath & Beyond, Inc.*		12,715		785,787
CVS Caremark Corp.		80,277		3,751,344
Macy’s, Inc.		44,025		1,512,259
Target Corp.		25,876		1,505,724

				7,555,114

Software — 3.6%
Microsoft Corp.		87,551		2,678,185
Oracle Corp.		94,656		2,811,283

				5,489,468

Telecommunications — 3.7%
AT&T, Inc.		62,292		2,221,333
CenturyLink, Inc.		43,648		1,723,660
Vodafone Group Plc ADR		56,141		1,582,053

				5,527,046

Transportation — 2.3%
FedEx Corp.		8,547		782,991
Union Pacific Corp.		22,024		2,627,683

				3,410,674

TOTAL COMMON STOCKS (Cost $115,104,988)				140,843,257

REAL ESTATE INVESTMENT TRUSTS — 3.0%
Apartments — 1.0%
AvalonBay Communities, Inc.		10,577		1,496,434

Office Property — 1.0%
Boston Properties, Inc.		14,218		1,540,805

Regional Malls — 1.0%
Simon Property Group, Inc.		9,909		1,542,435

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $2,286,372)				4,579,674


	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 3.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $5,694,546)		5,694,546	$	5,694,546

TOTAL INVESTMENTS — 100.0% (Cost $123,085,906)			$	151,117,477

†	See Security Valuation Note.

*	Non-income producing security.

ADR	— American Depository Receipt.

Plc	— Public Limited Company.


Country Weightings as of 06/30/2012††
United States			91%
Switzerland			2
United Kingdom			2
Australia			1
Bermuda			1
Ireland			1
Netherlands			1
Other			1

Total			100%

††	% of total investments as of June 30, 2012

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	140,843,257	$	140,843,257	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		4,579,674		4,579,674		—		—
SHORT-TERM INVESTMENTS		5,694,546		5,694,546		—		—

TOTAL INVESTMENTS	$	151,117,477	$	151,117,477	$	—	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Index 500 Fund


	Number of Shares		Value†
COMMON STOCKS — 96.5%
Advertising — 0.1%
Omnicom Group, Inc.		6,067	$	294,856
The Interpublic Group of Cos., Inc.		10,134		109,954

				404,810

Aerospace & Defense — 1.9%
General Dynamics Corp.		8,197		540,674
Goodrich Corp.		2,847		361,284
L-3 Communications Holdings, Inc.		2,300		170,223
Lockheed Martin Corp.		6,037		525,702
Northrop Grumman Corp.		5,692		363,093
Raytheon Co.		7,676		434,385
Rockwell Collins, Inc.		3,245		160,141
The Boeing Co.		16,921		1,257,230
United Technologies Corp.		20,642		1,559,090

				5,371,822

Agriculture — 2.2%
Altria Group, Inc.		46,478		1,605,815
Archer-Daniels-Midland Co.		14,799		436,866
Lorillard, Inc.		3,003		396,246
Philip Morris International, Inc.		39,088		3,410,819
Reynolds American, Inc.		7,502		336,615

				6,186,361

Airlines — 0.1%
Southwest Airlines Co.		17,817		164,273

Apparel — 0.6%
Coach, Inc.		6,477		378,775
NIKE, Inc., Class B		8,323		730,593
Ralph Lauren Corp.		1,428		200,006
VF Corp.		1,908		254,622

				1,563,996

Auto Manufacturers — 0.4%
Ford Motor Co.		86,367		828,260
PACCAR, Inc.		8,044		315,244

				1,143,504

Auto Parts & Equipment — 0.2%
BorgWarner, Inc.*		2,500		163,975
Johnson Controls, Inc.		15,311		424,268
The Goodyear Tire & Rubber Co.*		5,606		66,207

				654,450

Banks — 6.6%
Bank of America Corp.		243,835		1,994,570
BB&T Corp.		15,999		493,569
Capital One Financial Corp.		13,141		718,287
Citigroup, Inc.		66,481		1,822,244
Comerica, Inc.		4,344		133,404
Fifth Third Bancorp		20,946		280,676
First Horizon National Corp.		6,130		53,025
Huntington Bancshares, Inc.		19,965		127,776
JPMorgan Chase & Co.		86,764		3,100,078
KeyCorp		21,599		167,176


	Number of Shares		Value†

Banks — (continued)
M&T Bank Corp.		2,808	$	231,857
Morgan Stanley		34,563		504,274
Northern Trust Corp.		5,247		241,467
PNC Financial Services Group, Inc.		11,983		732,281
Regions Financial Corp.		32,694		220,685
State Street Corp.		11,047		493,138
SunTrust Banks, Inc.		11,788		285,623
The Bank of New York Mellon Corp.		27,380		600,991
The Goldman Sachs Group, Inc.		11,243		1,077,754
U.S. Bancorp		43,456		1,397,545
Wells Fargo & Co.		119,837		4,007,349
Zions Bancorporation		4,004		77,758

				18,761,527

Beverages — 2.8%
Beam, Inc.		3,307		206,655
Brown-Forman Corp., Class B		2,262		219,075
Coca-Cola Enterprises, Inc.		6,628		185,849
Constellation Brands, Inc., Class A*		3,723		100,744
Dr. Pepper Snapple Group, Inc.		5,000		218,750
Molson Coors Brewing Co., Class B		3,438		143,055
Monster Beverage Corp.*		3,500		249,200
PepsiCo, Inc.		35,661		2,519,806
The Coca-Cola Co.		51,385		4,017,793

				7,860,927

Biotechnology — 1.5%
Alexion Pharmaceuticals, Inc.*		4,200		417,060
Amgen, Inc.		17,945		1,310,703
Biogen Idec, Inc.*		5,433		784,417
Celgene Corp.*		9,928		636,980
Gilead Sciences, Inc.*		17,249		884,529
Life Technologies Corp.*		3,959		178,115

				4,211,804

Building Materials — 0.0%
Masco Corp.		7,677		106,480

Chemicals — 2.3%
Air Products & Chemicals, Inc.		4,721		381,126
Airgas, Inc.		1,600		134,416
CF Industries Holdings, Inc.		1,500		290,610
E.I. du Pont de Nemours & Co.		21,223		1,073,247
Eastman Chemical Co.		3,182		160,277
Ecolab, Inc.		6,733		461,413
FMC Corp.		3,000		160,440
International Flavors & Fragrances, Inc.		1,875		102,750
Monsanto Co.		12,137		1,004,701
PPG Industries, Inc.		3,410		361,869
Praxair, Inc.		6,826		742,191
Sigma-Aldrich Corp.		2,722		201,238
The Dow Chemical Co.		26,904		847,476
The Mosaic Co.		6,800		372,368
The Sherwin-Williams Co.		1,934		255,965

				6,550,087

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Index 500 Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Coal — 0.1%
Alpha Natural Resources, Inc.*		5,099	$	44,413
Consol Energy, Inc.		5,176		156,522
Peabody Energy Corp.		6,212		152,318

				353,253

Commercial Services — 1.6%
Apollo Group, Inc., Class A*		2,543		92,031
Automatic Data Processing, Inc.		11,143		620,219
DeVry, Inc.		1,500		46,455
Donnelley (R.R.) & Sons Co.		4,253		50,058
Equifax, Inc.		2,734		127,404
H&R Block, Inc.		6,666		106,523
Iron Mountain, Inc.		3,900		128,544
Mastercard, Inc., Class A		2,425		1,043,017
Moody’s Corp.		4,273		156,178
Paychex, Inc.		6,975		219,085
Quanta Services, Inc.*		4,900		117,943
Robert Half International, Inc.		3,207		91,624
SAIC, Inc.		5,900		71,508
The Western Union Co.		13,778		232,022
Total System Services, Inc.		3,477		83,205
Visa, Inc., Class A		11,264		1,392,568

				4,578,384

Computers — 8.0%
Accenture Plc,Class A		14,700		883,323
Apple, Inc.*		21,176		12,366,784
Cognizant Technology Solutions Corp., Class A*		6,852		411,120
Computer Sciences Corp.		3,757		93,249
Dell, Inc.*		34,542		432,466
EMC Corp.*		47,648		1,221,218
Hewlett-Packard Co.		44,883		902,597
International Business Machines Corp.		26,258		5,135,540
Lexmark International, Inc., Class A		1,721		45,744
NetApp, Inc.*		8,221		261,592
SanDisk Corp.*		5,597		204,179
Seagate Technology PLC		8,600		212,678
Teradata Corp.*		3,816		274,790
Western Digital Corp.*		5,000		152,400

				22,597,680

Cosmetics & Personal Care — 1.9%
Avon Products, Inc.		9,550		154,806
Colgate-Palmolive Co.		10,935		1,138,333
The Estee Lauder Cos., Inc., Class A		4,974		269,193
The Procter & Gamble Co.		62,594		3,833,882

				5,396,214

Distribution & Wholesale — 0.3%
Fastenal Co.		6,700		270,077
Fossil, Inc.*		1,200		91,848
Genuine Parts Co.		3,405		205,151
W.W. Grainger, Inc.		1,372		262,382

				829,458


	Number of Shares		Value†

Diversified Financial Services — 1.8%
American Express Co.		23,080	$	1,343,487
Ameriprise Financial, Inc.		5,046		263,704
BlackRock, Inc.		2,899		492,308
CME Group, Inc.		1,512		405,382
Discover Financial Services		11,878		410,741
ETrade Financial Corp.		5,181		41,655
Federated Investors, Inc., Class B		1,795		39,221
Franklin Resources, Inc.		3,252		360,940
IntercontinentalExchange, Inc.*		1,680		228,447
Invesco Ltd.		10,167		229,774
Legg Mason, Inc.		2,861		75,445
NYSE Euronext		5,785		147,980
SLM Corp.		11,534		181,199
T. Rowe Price Group, Inc.		5,781		363,972
The Charles Schwab Corp.		24,869		321,556
The NASDAQ OMX Group, Inc.		3,100		70,277

				4,976,088

Diversified Operations — 0.0%
Leucadia National Corp.		4,360		92,737

Electric — 3.3%
Ameren Corp.		5,298		177,695
American Electric Power Co., Inc.		11,057		441,174
CMS Energy Corp.		5,807		136,465
Consolidated Edison, Inc.		6,634		412,568
Dominion Resources, Inc.		12,809		691,686
DTE Energy Co.		3,692		219,046
Duke Energy Corp.		30,343		699,710
Edison International		7,174		331,439
Entergy Corp.		3,947		267,962
Exelon Corp.		19,310		726,442
FirstEnergy Corp.		9,656		474,979
Integrys Energy Group, Inc.		1,595		90,708
NextEra Energy, Inc.		9,485		652,663
Northeast Utilities		7,117		276,211
NRG Energy, Inc.*		5,200		90,272
Pepco Holdings, Inc.		5,540		108,418
PG&E Corp.		9,350		423,274
Pinnacle West Capital Corp.		2,569		132,920
PPL Corp.		12,798		355,912
Progress Energy, Inc.		6,713		403,921
Public Service Enterprise Group, Inc.		11,349		368,843
SCANA Corp.		2,800		133,952
Southern Co.		19,711		912,619
TECO Energy, Inc.		4,523		81,685
The AES Corp.*		14,444		185,317
Wisconsin Energy Corp.		5,200		205,764
Xcel Energy, Inc.		11,030		313,362

				9,315,007

Electrical Components & Equipment — 0.3%
Emerson Electric Co.		16,676		776,768
Molex, Inc.		2,823		67,583

				844,351

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Index 500 Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Electronics — 1.1%
Agilent Technologies, Inc.		7,945	$	311,762
Amphenol Corp., Class A		3,600		197,712
FLIR Systems, Inc.		3,600		70,200
Honeywell International, Inc.		17,708		988,815
Jabil Circuit, Inc.		4,292		87,256
PerkinElmer, Inc.		2,216		57,173
TE Connectivity Ltd.		9,700		309,527
Thermo Fisher Scientific, Inc.		8,182		424,728
Tyco International Ltd.		10,500		554,925
Waters Corp.*		1,958		155,602

				3,157,700

Energy-Alternate Sources — 0.0%
First Solar, Inc.*		1,200		18,072

Engineering & Construction — 0.1%
Fluor Corp.		3,770		186,012
Jacobs Engineering Group, Inc.*		2,983		112,936

				298,948

Entertainment — 0.0%
International Game Technology		6,657		104,848

Environmental Control — 0.3%
Republic Services, Inc.		7,014		185,590
Stericycle, Inc.*		2,000		183,340
Waste Management, Inc.		10,500		350,700

				719,630

Food — 1.8%
Campbell Soup Co.		4,016		134,054
ConAgra Foods, Inc.		9,402		243,794
Dean Foods Co.*		3,972		67,643
General Mills, Inc.		14,610		563,069
H.J. Heinz Co.		7,166		389,687
Hormel Foods Corp.		2,900		88,218
Kellogg Co.		5,666		279,504
Kraft Foods, Inc., Class A		40,163		1,551,095
McCormick & Co., Inc.		2,808		170,305
Safeway, Inc.		6,170		111,985
SYSCO Corp.		13,252		395,042
The Hershey Co.		3,487		251,169
The J.M. Smucker Co.		2,534		191,368
The Kroger Co.		13,045		302,514
Tyson Foods, Inc., Class A		6,649		125,201
Whole Foods Market, Inc.		3,643		347,251

				5,211,899

Forest Products & Paper — 0.1%
International Paper Co.		9,667		279,473
MeadWestvaco Corp.		3,999		114,971

				394,444

Gas — 0.3%
AGL Resources, Inc.		2,600		100,750
CenterPoint Energy, Inc.		9,022		186,485
NiSource, Inc.		5,865		145,159
Sempra Energy		5,298		364,926

				797,320


	Number of Shares		Value†

Hand & Machine Tools — 0.1%
Snap-On, Inc.		1,328	$	82,668
Stanley Black & Decker, Inc.		3,940		253,578

				336,246

Healthcare Products — 1.9%
Bard (C.R.), Inc.		1,942		208,649
Baxter International, Inc.		12,775		678,991
Becton, Dickinson & Co.		4,675		349,456
Boston Scientific Corp.*		31,948		181,145
CareFusion Corp.*		5,241		134,589
Covidien Plc		10,900		583,150
DENTSPLY International, Inc.		3,200		120,992
Edwards Lifesciences Corp.*		2,600		268,580
Hospira, Inc.*		3,912		136,842
Intuitive Surgical, Inc.*		907		502,288
Medtronic, Inc.		23,473		909,109
Patterson Cos., Inc.		1,974		68,044
St. Jude Medical, Inc.		7,330		292,540
Stryker Corp.		7,381		406,693
Varian Medical Systems, Inc.*		2,657		161,466
Zimmer Holdings, Inc.		4,029		259,306

				5,261,840

Healthcare Services — 1.3%
Aetna, Inc.		7,985		309,579
CIGNA Corp.		6,494		285,736
Coventry Health Care, Inc.		3,367		107,037
DaVita, Inc.*		2,149		211,053
Humana, Inc.		3,710		287,302
Laboratory Corp. of America Holdings*		2,177		201,612
Quest Diagnostics, Inc.		3,587		214,861
Tenet Healthcare Corp.*		9,374		49,120
UnitedHealth Group, Inc.		23,741		1,388,849
WellPoint, Inc.		7,595		484,485

				3,539,634

Home Builders — 0.1%
D.R. Horton, Inc.		6,376		117,191
Lennar Corp., Class A		3,136		96,933
Pulte Group, Inc.*		8,034		85,964

				300,088

Home Furnishings — 0.1%
Harman International Industries, Inc.		1,438		56,945
Whirlpool Corp.		1,669		102,076

				159,021

Household Products & Wares — 0.4%
Avery Dennison Corp.		2,183		59,683
Clorox Co.		2,997		217,163
Kimberly-Clark Corp.		8,987		752,841

				1,029,687

Housewares — 0.0%
Newell Rubbermaid, Inc.		6,217		112,776

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Index 500 Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — 3.5%
ACE Ltd.		7,700	$	570,801
Aflac, Inc.		10,600		451,454
American International Group, Inc.*		14,485		464,824
AON PLC		7,244		338,874
Assurant, Inc.		2,073		72,223
Berkshire Hathaway, Inc., Class B*		39,950		3,329,033
Chubb Corp.		6,151		447,916
Cincinnati Financial Corp.		3,692		140,554
Genworth Financial, Inc., Class A*		11,369		64,349
Hartford Financial Services Group, Inc.		9,757		172,016
Lincoln National Corp.		6,573		143,752
Loews Corp.		6,925		283,302
Marsh & McLennan Cos., Inc.		12,109		390,273
MetLife, Inc.		24,085		743,022
Principal Financial Group, Inc.		7,065		185,315
Prudential Financial, Inc.		10,630		514,811
The Allstate Corp.		11,276		395,675
The Progressive Corp.		13,856		288,620
The Travelers Cos., Inc.		8,931		570,155
Torchmark Corp.		2,235		112,979
Unum Group		6,676		127,712
XL Group Plc		6,749		141,999

				9,949,659

Internet — 3.0%
Amazon.com, Inc.*		8,275		1,889,596
eBay, Inc.*		26,028		1,093,436
Expedia, Inc.		2,094		100,659
F5 Networks, Inc.*		1,800		179,208
Google, Inc., Class A*		5,735		3,326,702
NetFlix, Inc.*		1,200		82,164
priceline.com, Inc.*		1,152		765,527
Symantec Corp.*		16,538		241,620
TripAdvisor, Inc.*		2,094		93,581
VeriSign, Inc.*		3,609		157,244
Yahoo!, Inc.*		27,617		437,177

				8,366,914

Iron & Steel — 0.2%
Allegheny Technologies, Inc.		2,278		72,645
Cliffs Natural Resources, Inc.		3,100		152,799
Nucor Corp.		7,035		266,627
United States Steel Corp.		3,203		65,982

				558,053

Leisure Time — 0.2%
Carnival Corp.		10,245		351,096
Harley-Davidson, Inc.		5,128		234,504

				585,600

Lodging — 0.3%
Marriott International, Inc., Class A		6,185		242,452
Starwood Hotels & Resorts Worldwide, Inc.		4,252		225,526
Wyndham Worldwide Corp.		3,160		166,658
Wynn Resorts Ltd.		1,800		186,696

				821,332


	Number of Shares		Value†

Machinery—Construction & Mining — 0.5%
Caterpillar, Inc.		14,728	$	1,250,554
Joy Global, Inc.		2,300		130,479

				1,381,033

Machinery — Diversified — 0.7%
Cummins, Inc.		4,374		423,885
Deere & Co.		9,132		738,505
Flowserve Corp.		1,300		149,175
Rockwell Automation, Inc.		3,271		216,082
Roper Industries, Inc.		2,200		216,876
Xylem, Inc.		4,054		102,039

				1,846,562

Media — 3.2%
Cablevision Systems Corp., Class A		5,000		66,450
CBS Corp., Class B		14,725		482,685
Comcast Corp., Class A		61,234		1,957,651
DIRECTV, Class A*		15,319		747,874
Discovery Communications, Inc., Class A*		5,800		313,200
Gannett Co., Inc.		5,374		79,159
News Corp., Class A		48,860		1,089,089
Scripps Networks Interactive, Inc., Class A		2,056		116,904
The McGraw-Hill Cos., Inc.		6,286		282,870
The Walt Disney Co.		40,676		1,972,786
The Washington Post Co., Class B		63		23,551
Time Warner Cable, Inc.		7,096		582,582
Time Warner, Inc.		22,004		847,154
Viacom, Inc., Class B		12,281		577,453

				9,139,408

Metal Fabricate/Hardware — 0.2%
Precision Castparts Corp.		3,325		546,929

Mining — 0.6%
Alcoa, Inc.		23,248		203,420
Freeport-McMoRan Copper & Gold, Inc.		21,496		732,369
Newmont Mining Corp.		11,183		542,487
Titanium Metals Corp.		1,912		21,625
Vulcan Materials Co.		3,041		120,758

				1,620,659

Miscellaneous Manufacturing — 3.3%
3M Co.		15,780		1,413,888
Cooper Industries Plc		3,700		252,266
Danaher Corp.		12,968		675,373
Dover Corp.		4,105		220,069
Eaton Corp.		7,440		294,847
General Electric Co.		240,325		5,008,373
Illinois Tool Works, Inc.		11,019		582,795
Ingersoll-Rand Plc		6,800		286,824
Leggett & Platt, Inc.		3,354		70,870
Pall Corp.		2,645		144,973
Parker Hannifin Corp.		3,481		267,619
Textron, Inc.		6,076		151,110

				9,369,007

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Index 500 Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Office & Business Equipment — 0.1%
Pitney Bowes, Inc.		4,261	$	63,787
Xerox Corp.		31,055		244,403

				308,190

Oil & Gas — 8.6%
Anadarko Petroleum Corp.		11,359		751,966
Apache Corp.		8,723		766,664
Cabot Oil & Gas Corp.		4,444		175,094
Chesapeake Energy Corp.		15,010		279,186
Chevron Corp.		44,870		4,733,785
ConocoPhillips		29,080		1,624,990
Denbury Resources, Inc.*		8,500		128,435
Devon Energy Corp.		9,229		535,190
Diamond Offshore Drilling, Inc.		1,600		94,608
EOG Resources, Inc.		6,158		554,897
EQT Corp.		3,200		171,616
Exxon Mobil Corp.		106,165		9,084,539
Helmerich & Payne, Inc.		2,400		104,352
Hess Corp.		6,797		295,330
Marathon Oil Corp.		16,051		410,424
Marathon Petroleum Corp.		8,025		360,483
Murphy Oil Corp.		4,217		212,073
Nabors Industries Ltd.		6,108		87,955
Newfield Exploration Co.*		2,900		84,999
Noble Corp.		5,700		185,421
Noble Energy, Inc.		4,069		345,132
Occidental Petroleum Corp.		18,458		1,583,143
Phillips 66*		14,540		483,310
Pioneer Natural Resources Co.		2,700		238,167
QEP Resources, Inc.		3,790		113,586
Range Resources Corp.		3,423		211,781
Rowan Cos., Inc.*		2,403		77,689
Southwestern Energy Co.*		7,690		245,542
Sunoco, Inc.		2,386		113,335
Tesoro Corp.*		2,894		72,234
Valero Energy Corp.		12,540		302,841
WPX Energy, Inc.*		4,344		70,286

				24,499,053

Oil & Gas Services — 1.4%
Baker Hughes, Inc.		9,728		399,821
Cameron International Corp.*		5,639		240,842
Halliburton Co.		20,969		595,310
National Oilwell Varco, Inc.		9,623		620,106
Schlumberger Ltd.		30,259		1,964,111

				3,820,190

Packaging and Containers — 0.1%
Ball Corp.		3,726		152,952
Bemis Co., Inc.		2,549		79,886
Owens-Illinois, Inc.*		4,000		76,680
Sealed Air Corp.		4,033		62,269

				371,787


	Number of Shares		Value†

Pharmaceuticals — 7.0%
Abbott Laboratories		35,696	$	2,301,321
Allergan, Inc.		6,916		640,214
AmerisourceBergen Corp.		6,000		236,100
Bristol-Myers Squibb Co.		38,397		1,380,372
Cardinal Health, Inc.		7,682		322,644
Eli Lilly & Co.		23,154		993,538
Express Scripts Holding Co.*		18,064		1,008,513
FMC Technologies, Inc.*		5,300		207,919
Forest Laboratories, Inc.*		6,062		212,109
Johnson & Johnson		62,341		4,211,758
McKesson Corp.		5,625		527,344
Mead Johnson Nutrition Co.		4,568		367,770
Merck & Co., Inc.		69,154		2,887,179
Mylan, Inc.*		9,756		208,486
Perrigo Co.		2,100		247,653
Pfizer, Inc.		171,256		3,938,888
Watson Pharmaceuticals, Inc.*		2,943		217,753

				19,909,561

Pipelines — 0.5%
Kinder Morgan, Inc.		11,436		368,468
Oneok, Inc.		4,800		203,088
Spectra Energy Corp.		14,884		432,529
The Williams Cos., Inc.		14,234		410,224

				1,414,309

Real Estate — 0.0%
CBRE Group, Inc., Class A*		6,701		109,628

Retail — 6.3%
Abercrombie & Fitch Co., Class A		1,900		64,866
AutoNation, Inc.*		1,219		43,006
AutoZone, Inc.*		641		235,356
Bed Bath & Beyond, Inc.*		5,366		331,619
Best Buy Co., Inc.		6,468		135,569
Big Lots, Inc.*		1,397		56,984
CarMax, Inc.*		5,200		134,888
Chipotle Mexican Grill, Inc.*		700		265,965
Costco Wholesale Corp.		9,877		938,315
CVS Caremark Corp.		29,567		1,381,666
Darden Restaurants, Inc.		2,940		148,852
Dollar Tree, Inc.*		5,400		290,520
Family Dollar Stores, Inc.		2,733		181,690
GameStop Corp., Class A		3,164		58,091
J.C. Penney Co., Inc.*		3,144		73,287
Kohl’s Corp.		5,801		263,887
Lowe’s Cos., Inc.		28,240		803,146
Ltd. Brands, Inc.		5,460		232,214
Macy’s, Inc.		9,327		320,382
McDonald’s Corp.		23,178		2,051,948
Nordstrom, Inc.		3,737		185,692
O’Reilly Automotive, Inc.*		2,900		242,933
Ross Stores, Inc.		5,200		324,844
Sears Holding Corp.*		869		51,879

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Index 500 Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
Staples, Inc.		15,337	$	200,148
Starbucks Corp.		17,144		914,118
Target Corp.		15,332		892,169
The Gap, Inc.		7,582		207,443
The Home Depot, Inc.		35,004		1,854,862
Tiffany & Co.		2,764		146,354
TJX Cos., Inc.		17,118		734,876
Urban Outfitters, Inc.*		2,500		68,975
Wal-Mart Stores, Inc.		39,647		2,764,189
Walgreen Co.		19,879		588,021
Yum! Brands, Inc.		10,469		674,413

				17,863,167

Savings & Loans — 0.1%
Hudson City Bancorp, Inc.		11,257		71,707
People’s United Financial, Inc.		7,700		89,397

				161,104

Semiconductors — 3.0%
Advanced Micro Devices, Inc.*		13,368		76,599
Altera Corp.		7,465		252,616
Analog Devices, Inc.		6,576		247,718
Applied Materials, Inc.		29,321		336,019
Broadcom Corp., Class A*		11,108		375,450
Intel Corp.		113,475		3,024,109
KLA-Tencor Corp.		3,627		178,630
Lam Research Corp.*		4,459		168,283
Linear Technology Corp.		5,041		157,934
LSI Corp.*		12,772		81,358
Microchip Technology, Inc.		4,318		142,839
Micron Technology, Inc.*		22,486		141,887
NVIDIA Corp.*		13,754		190,080
QUALCOMM, Inc.		38,899		2,165,896
Teradyne, Inc.*		3,357		47,199
Texas Instruments, Inc.		25,993		745,739
Xilinx, Inc.		5,664		190,140

				8,522,496

Software — 3.9%
Adobe Systems, Inc.*		11,405		369,180
Akamai Technologies, Inc.*		3,891		123,539
Autodesk, Inc.*		4,981		174,285
BMC Software, Inc.*		3,837		163,763
CA, Inc.		8,439		228,612
Cerner Corp.*		3,300		272,778
Citrix Systems, Inc.*		4,091		343,399
Dun & Bradstreet Corp.		1,100		78,287
Electronic Arts, Inc.*		7,730		95,465
Fidelity National Information Services, Inc.		5,359		182,635
Fiserv, Inc.*		3,207		231,610
Intuit, Inc.		6,792		403,105
Microsoft Corp.		169,615		5,188,523
Oracle Corp.		89,017		2,643,805


	Number of Shares		Value†

Software — (continued)
Red Hat, Inc.*		4,200	$	237,216
Salesforce.com, Inc.*		3,100		428,606

				11,164,808

Telecommunications — 4.3%
AT&T, Inc.		133,043		4,744,313
CenturyLink, Inc.		14,126		557,836
Cisco Systems, Inc.		122,380		2,101,265
Corning, Inc.		34,115		441,107
Crown Castle International Corp.*		5,800		340,228
Frontier Communications Corp.		21,472		82,238
Harris Corp.		2,600		108,810
JDS Uniphase Corp.*		4,496		49,456
Juniper Networks, Inc.*		12,071		196,878
MetroPCS Communications, Inc.*		6,400		38,720
Motorola Solutions, Inc.		6,746		324,550
Sprint Nextel Corp.*		66,383		216,408
Verizon Communications, Inc.		64,376		2,860,869
Windstream Corp.		13,351		128,971

				12,191,649

Textiles — 0.0%
Cintas Corp.		2,455		94,788

Toys, Games & Hobbies — 0.1%
Hasbro, Inc.		2,612		88,468
Mattel, Inc.		7,881		255,660

				344,128

Transportation — 1.8%
C.H. Robinson Worldwide, Inc.		3,739		218,844
CSX Corp.		23,566		526,936
Expeditors International of Washington, Inc.		4,973		192,704
FedEx Corp.		7,166		656,477
Norfolk Southern Corp.		7,452		534,830
Ryder System, Inc.		1,125		40,511
Union Pacific Corp.		10,810		1,289,741
United Parcel Service, Inc., Class B		21,774		1,714,920

				5,174,963

TOTAL COMMON STOCKS (Cost $233,027,244)				273,540,343

REAL ESTATE INVESTMENT TRUSTS — 2.1%
Apartments — 0.3%
Apartment Investment & Management Co., Class A		2,762		74,657
AvalonBay Communities, Inc.		2,192		310,124
Equity Residential		6,692		417,313

				802,094

Diversified — 0.4%
American Tower Corp.		8,859		619,333
Vornado Realty Trust		4,087		343,226
Weyerhaeuser Co.		11,808		264,027

				1,226,586

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Index 500 Fund


	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Forest Products & Paper — 0.1%
Plum Creek Timber Co.		3,847	$	152,726

Healthcare — 0.4%
HCP, Inc.		9,040		399,116
Health Care REIT, Inc.		4,600		268,180
Ventas, Inc.		6,453		407,313

				1,074,609

Hotels & Resorts — 0.1%
Host Hotels & Resorts, Inc.		15,376		243,248

Industrial — 0.1%
ProLogis, Inc.		10,599		352,205

Office Property — 0.1%
Boston Properties, Inc.		3,342		362,173

Regional Malls — 0.4%
Simon Property Group, Inc.		6,928		1,078,412

Storage & Warehousing — 0.1%
Public Storage		3,216		464,423

Strip Centers — 0.1%
Kimco Realty Corp.		9,564		182,003

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $4,477,466)				5,938,479


	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U.S. Treasury Bill
0.050%, 07/12/12	$	50	$	49,999
0.060%, 07/12/12		15		15,000
0.070%, 08/09/12		139		138,992
0.060%, 09/06/12		30		29,996

TOTAL U.S. TREASURY OBLIGATIONS (Cost $233,985)				233,987


	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $3,824,373)		3,824,373		3,824,373

TOTAL INVESTMENTS — 100.0% (Cost $241,563,068)			$	283,537,182

†	See Security Valuation Note.

*	Non-income producing security.

Plc — Public Limited Company.

REIT — Real Estate Investment Trust.

Summary of inputs used to value the Fund’s investments as of 6/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	273,540,343	$	273,540,343	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		5,938,479		5,938,479		—		—
U.S. TREASURY OBLIGATIONS		233,987		—		233,987		—
SHORT-TERM INVESTMENTS		3,824,373		3,824,373		—		—

TOTAL INVESTMENTS	$	283,537,182	$	283,303,195	$	233,987	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Mid Cap Growth Fund


	Number of Shares		Value†
COMMON STOCKS — 97.8%
Aerospace & Defense — 0.9%
BE Aerospace, Inc.*		20,640	$	901,142

Airlines — 1.3%
United Continental Holdings, Inc.*		52,085		1,267,228

Apparel — 3.5%
Coach, Inc.		22,950		1,342,116
Ralph Lauren Corp.		8,600		1,204,516
Under Armour, Inc., Class A*		10,650		1,006,212

				3,552,844

Auto Parts & Equipment — 1.0%
BorgWarner, Inc.*		15,080		989,097

Banks — 2.3%
First Republic Bank*		31,300		1,051,680
Signature Bank*		21,110		1,287,077

				2,338,757

Beverages — 1.5%
Monster Beverage Corp.*		21,280		1,515,136

Biotechnology — 3.5%
Alexion Pharmaceuticals, Inc.*		22,240		2,208,432
Ariad Pharmaceuticals, Inc.*		20,380		350,740
Regeneron Pharmaceuticals, Inc.*		8,520		973,154

				3,532,326

Chemicals — 4.1%
Airgas, Inc.		14,300		1,201,343
Eastman Chemical Co.		25,060		1,262,272
PPG Industries, Inc.		16,020		1,700,043

				4,163,658

Commercial Services — 1.9%
Equifax, Inc.		21,150		985,590
Manpower, Inc.		25,750		943,738

				1,929,328

Computers — 0.5%
Fortinet, Inc.*		20,420		474,152

Distribution & Wholesale — 1.2%
W.W. Grainger, Inc.		6,590		1,260,272

Diversified Financial Services — 3.5%
Affiliated Managers Group, Inc.*		16,480		1,803,736
IntercontinentalExchange, Inc.*		12,390		1,684,792

				3,488,528

Electronics — 2.2%
Agilent Technologies, Inc.		33,700		1,322,388
Trimble Navigation Ltd.*		20,440		940,444

				2,262,832

Engineering & Construction — 0.9%
KBR, Inc.		37,730		932,308

Environmental Control — 0.9%
Clean Harbors, Inc.*		16,720		943,342


	Number of Shares		Value†

Food — 3.0%
The Hain Celestial Group, Inc.*		18,690	$	1,028,698
Whole Foods Market, Inc.		21,230		2,023,643

				3,052,341

Healthcare Products — 1.3%
Cepheid, Inc.*		14,840		664,090
IDEXX Laboratories Inc.*		6,720		645,994

				1,310,084

Home Builders — 0.7%
Toll Brothers, Inc.*		22,800		677,844

Insurance — 0.8%
Brown & Brown, Inc.		28,210		769,287

Internet — 4.4%
F5 Networks, Inc.*		11,940		1,188,746
LinkedIn Corp., Class A*		13,070		1,388,949
TIBCO Software, Inc.*		61,270		1,833,199

				4,410,894

Leisure Time — 1.1%
Harley-Davidson, Inc.		24,030		1,098,892

Lodging — 3.7%
Starwood Hotels & Resorts Worldwide, Inc.		41,580		2,205,403
Wynn Resorts Ltd.		15,280		1,584,842

				3,790,245

Machinery—Construction & Mining — 1.4%
Joy Global, Inc.		24,330		1,380,241

Machinery—Diversified — 1.3%
Roper Industries, Inc.		13,010		1,282,526

Media — 1.3%
Discovery Communications, Inc., Class A*		23,490		1,268,460

Miscellaneous Manufacturing — 2.4%
Colfax Corp.*		22,080		608,746
Hexcel Corp.*		35,180		907,292
SPX Corp.		14,630		955,631

				2,471,669

Oil & Gas — 3.8%
Cabot Oil & Gas Corp.		35,280		1,390,032
Concho Resources, Inc.*		19,610		1,669,203
Plains Exploration & Production Co.*		21,320		750,038

				3,809,273

Oil & Gas Services — 0.9%
FMC Technologies, Inc.*		23,510		922,297

Packaging and Containers — 1.2%
Crown Holdings, Inc.*		34,020		1,173,350

Pharmaceuticals — 5.7%
Mead Johnson Nutrition Co.		18,670		1,503,122
Medivation, Inc.*		9,770		892,978
Perrigo Co.		13,060		1,540,166

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Mid Cap Growth Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — (continued)
SXC Health Solutions Corp.*		18,760	$	1,861,179

				5,797,445

Real Estate — 1.5%
CBRE Group, Inc., Class A*		93,350		1,527,206

Retail — 11.8%
American Eagle Outfitters, Inc.		38,650		762,564
AutoZone, Inc.*		5,680		2,085,526
Bed Bath & Beyond, Inc.*		27,550		1,702,590
Dollar Tree, Inc.*		26,100		1,404,180
Family Dollar Stores, Inc.		16,320		1,084,954
GNC Holdings, Inc., Class A		24,050		942,760
Guess?, Inc.		28,760		873,441
Lululemon Athletica, Inc.*		11,990		714,964
Nordstrom, Inc.		30,710		1,525,980
Sally Beauty Holdings, Inc.*		33,330		857,914

				11,954,873

Semiconductors — 14.0%
ASML Holding N.V.		25,390		1,305,554
Avago Technologies Ltd.		44,040		1,581,036
Broadcom Corp., Class A*		64,530		2,181,114
Cavium, Inc.*		33,440		936,320
Cypress Semiconductor Corp.*		69,490		918,658
Lam Research Corp.*		48,860		1,843,977
NXP Semiconductors N.V.*		99,660		2,317,095
ON Semiconductor Corp.*		305,670		2,170,257
Teradyne, Inc.*		65,940		927,116

				14,181,127

Software — 5.6%
Cerner Corp.*		22,260		1,840,012
Citrix Systems, Inc.*		29,590		2,483,784
Fiserv, Inc.*		18,360		1,325,959

				5,649,755

Telecommunications — 1.5%
JDS Uniphase Corp.*		68,520		753,720
Juniper Networks, Inc.*		46,640		760,698

				1,514,418

Transportation — 1.2%
Genesee & Wyoming, Inc., Class A*		23,810		1,258,120

TOTAL COMMON STOCKS (Cost $88,010,141)				98,851,297

REAL ESTATE INVESTMENT TRUSTS — 1.7%
Apartments — 1.7%
AvalonBay Communities, Inc. (Cost $1,627,389)		11,860		1,677,953


	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 0.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $528,522)		528,522	$	528,522

TOTAL INVESTMENTS — 100.0% (Cost $90,166,052)			$	101,057,772

†	See Security Valuation Note.

*	Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	98,851,297	$	98,851,297	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		1,677,953		1,677,953		—		—
SHORT-TERM INVESTMENTS		528,522		528,522		—		—

TOTAL INVESTMENTS	$	101,057,772	$	101,057,772	$	—	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Mid Cap Value Fund


	Number of Shares		Value†
COMMON STOCKS — 97.7%
Aerospace & Defense — 4.5%
General Dynamics Corp.		37,300	$	2,460,308
Rockwell Collins, Inc.		41,900		2,067,765

				4,528,073

Auto Manufacturers — 1.4%
Navistar International Corp.*		50,200		1,424,174

Auto Parts & Equipment — 0.9%
Lear Corp.		25,000		943,250

Banks — 6.6%
BB&T Corp.		43,000		1,326,550
Comerica, Inc.		43,500		1,335,885
Huntington Bancshares, Inc.		278,500		1,782,400
State Street Corp.		49,000		2,187,360

				6,632,195

Beverages — 2.9%
Constellation Brands, Inc., Class A*		107,500		2,908,950

Chemicals — 2.2%
Akzo Nobel NV—Sponsored ADR		139,100		2,178,306

Coal — 0.6%
SunCoke Energy, Inc.*		39,456		578,031

Commercial Services — 6.9%
Corrections Corporation of America		73,800		2,173,410
The Western Union Co.		130,800		2,202,672
Tyco International Ltd.		48,000		2,536,800

				6,912,882

Electric — 2.0%
NV Energy, Inc.		110,900		1,949,622

Electronics — 2.6%
Dolby Laboratories, Inc., Class A*		25,800		1,065,540
Flextronics International Ltd.*		239,800		1,486,760

				2,552,300

Energy-Alternate Sources — 2.0%
Covanta Holding Corp.		113,600		1,948,240

Engineering & Construction — 1.9%
KBR, Inc.		78,000		1,927,380

Environmental Control — 2.0%
Republic Services, Inc.		75,700		2,003,022

Food — 3.1%
Safeway, Inc.		171,300		3,109,095

Gas — 4.0%
CenterPoint Energy, Inc.		94,200		1,947,114
Sempra Energy		30,100		2,073,288

				4,020,402

Healthcare Products — 7.5%
Covidien Plc		40,400		2,161,400
Hospira, Inc.*		66,400		2,322,672
Zimmer Holdings, Inc.		46,500		2,992,740

				7,476,812


	Number of Shares		Value†

Household Products & Wares — 2.2%
Avery Dennison Corp.		82,000	$	2,241,880

Insurance — 1.7%
Willis Group Holdings PLC		46,100		1,682,189

Internet — 2.0%
Symantec Corp.*		133,000		1,943,130

Lodging — 1.2%
Wyndham Worldwide Corp.		22,500		1,186,650

Media — 2.1%
Cablevision Systems Corp., Class A		154,900		2,058,621

Miscellaneous Manufacturing — 4.7%
Ingersoll-Rand Plc		32,200		1,358,196
ITT Corp.*		88,200		1,552,320
The Brink’s Co.		77,700		1,801,086

				4,711,602

Oil & Gas — 3.8%
Southwestern Energy Co.*		77,400		2,471,382
Sunoco, Inc.		27,900		1,325,250

				3,796,632

Oil & Gas Services — 1.4%
Cameron International Corp.*		31,700		1,353,907

Pharmaceuticals — 2.9%
Cardinal Health, Inc.		34,800		1,461,600
Omnicare, Inc.		46,700		1,458,441

				2,920,041

Retail — 11.6%
Best Buy Co., Inc.		124,500		2,609,520
Chico’s FAS, Inc.		146,200		2,169,608
CVS Caremark Corp.		65,400		3,056,142
Kohl’s Corp.		39,800		1,810,502
Staples, Inc.		146,500		1,911,825

				11,557,597

Savings & Loans — 3.0%
BankUnited, Inc.		48,000		1,131,840
People’s United Financial, Inc.		159,600		1,852,956

				2,984,796

Software — 3.4%
BMC Software, Inc.*		32,100		1,370,028
Fidelity National Information Services, Inc.		60,000		2,044,800

				3,414,828

Telecommunications — 6.6%
Amdocs Ltd.		65,500		1,946,660
Motorola Solutions, Inc.		44,800		2,155,328
Virgin Media, Inc.		101,900		2,485,341

				6,587,329

TOTAL COMMON STOCKS (Cost $92,612,023)				97,531,936

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Mid Cap Value Fund


	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — 1.2%
Building & Real Estate — 1.2%
Starwood Property Trust, Inc. (Cost $1,020,276)		55,000	$	1,172,050

SHORT-TERM INVESTMENTS — 1.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,117,370)		1,117,370		1,117,370

TOTAL INVESTMENTS — 100.0% (Cost $94,749,669)			$	99,821,356

†	See Security Valuation Note.

*	Non-income producing security.

ADR — American Depository Receipt.

Plc — Public Limited Company.


Country Weightings as of 06/30/2012††
United States	89	%
Bermuda	3
Ireland	3
Netherlands	2
United Kingdom	2
Singapore	1

Total	100	%

††	% of total investments as of June 30, 2012

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	97,531,936	$	97,531,936	$		$
REAL ESTATE INVESTMENT TRUSTS		1,172,050		1,172,050
SHORT-TERM INVESTMENTS		1,117,370		1,117,370		—		—

TOTAL INVESTMENTS	$	99,821,356	$	99,821,356	$	—	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Mid Core Value Fund


	Number of Shares		Value†
COMMON STOCKS -- 92.1%
Advertising — 4.5%
Omnicom Group, Inc.		24,328	$	1,182,341
The Interpublic Group of Cos., Inc.		148,700		1,613,395

				2,795,736

Aerospace & Defense — 1.3%
Esterline Technologies Corp.*		12,900		804,315

Agriculture — 1.9%
Bunge Ltd.		18,400		1,154,416

Airlines — 0.7%
United Continental Holdings, Inc.*		16,600		403,878

Apparel — 0.7%
Gildan Activewear, Inc.		16,700		459,584

Banks — 8.6%
CIT Group, Inc.*		17,800		634,392
City National Corp.		13,900		675,262
Comerica, Inc.		23,700		727,827
Commerce Bancshares, Inc.		6,469		245,175
Cullen/Frost Bankers, Inc.		10,900		626,641
Fifth Third Bancorp		34,300		459,620
Hancock Holding Co.		17,500		532,700
M&T Bank Corp.		10,100		833,957
Signature Bank*		5,000		304,850
Zions Bancorporation		15,000		291,300

				5,331,724

Beverages — 1.1%
Beam, Inc.		10,200		637,398
Dr. Pepper Snapple Group, Inc.		1,700		74,375

				711,773

Biotechnology — 0.5%
Life Technologies Corp.*		7,100		319,429

Building Materials — 0.5%
Eagle Materials, Inc.		8,300		309,922

Chemicals — 3.7%
Ashland, Inc.		16,660		1,154,704
Chemtura Corp.*		21,500		311,750
Eastman Chemical Co.		8,200		413,034
International Flavors & Fragrances, Inc.		8,200		449,360

				2,328,848

Commercial Services — 1.2%
Manpower, Inc.		19,900		729,335

Distribution & Wholesale — 1.5%
Arrow Electronics, Inc.*		15,300		501,993
WESCO International, Inc.*		7,100		408,605

				910,598

Diversified Financial Services — 3.3%
Affiliated Managers Group, Inc.*		5,900		645,755
Discover Financial Services		12,100		418,418
Lazard Ltd., Class A		13,500		350,865


	Number of Shares		Value†

Diversified Financial Services — (continued)
Raymond James Financial, Inc.		17,900	$	612,896

				2,027,934

Electric — 4.5%
CMS Energy Corp.		34,200		803,700
Edison International		6,546		302,425
Northeast Utilities		8,982		348,592
NV Energy, Inc.		28,400		499,272
PPL Corp.		16,300		453,303
Xcel Energy, Inc.		14,600		414,786

				2,822,078

Electrical Components & Equipment — 0.3%
AMETEK, Inc.		3,800		189,658

Electronics — 3.2%
Agilent Technologies, Inc.		15,700		616,068
TE Connectivity Ltd.		23,100		737,121
Tyco International Ltd.		11,500		607,775

				1,960,964

Engineering & Construction — 2.7%
Jacobs Engineering Group, Inc.		21,000		795,060
URS Corp.		25,500		889,440

				1,684,500

Environmental Control — 0.2%
Republic Services, Inc.		4,000		105,840

Food — 0.9%
Flowers Foods, Inc.		7,500		174,225
H.J. Heinz Co.		7,400		402,412

				576,637

Forest Products & Paper — 1.2%
International Paper Co.		25,200		728,532

Gas — 0.4%
Piedmont Natural Gas Co., Inc.		7,356		236,790

Hand & Machine Tools — 0.5%
Kennametal, Inc.		9,500		314,925

Healthcare Services — 4.4%
CIGNA Corp.		20,444		899,536
Community Health Systems, Inc.*		24,200		678,326
DaVita, Inc.*		8,459		830,758
Laboratory Corp. of America Holdings*		3,600		333,396

				2,742,016

Home Furnishings — 0.8%
Harman International Industries, Inc.		12,300		487,080

Household Products & Wares — 0.7%
Tupperware Brands Corp.		8,393		459,601

Insurance — 7.8%
ACE Ltd.		11,200		830,256
Brown & Brown, Inc.		12,100		329,967
Everest Re Group Ltd.		9,900		1,024,551

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Mid Core Value Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — (continued)
Lincoln National Corp.		19,000	$	415,530
Marsh & McLennan Cos., Inc.		22,200		715,506
PartnerRe Ltd.		14,600		1,104,782
The Allstate Corp.		5,300		185,977
XL Group Plc		10,600		223,024

				4,829,593

Investment Companies — 0.4%
Ares Capital Corp.		14,800		236,208

Iron & Steel — 1.0%
Reliance Steel & Aluminum Co.		12,700		641,350

Machinery — Diversified — 1.5%
IDEX Corp.		18,500		721,130
Nordson Corp.		4,300		220,547

				941,677

Media — 1.0%
Discovery Communications, Inc., Class A*		11,300		610,200

Miscellaneous Manufacturing — 1.8%
Dover Corp.		11,310		606,329
Eaton Corp.		12,800		507,264

				1,113,593

Oil & Gas — 3.3%
Ensco Plc ADR,Class A		13,300		624,701
EQT Corp.		3,900		209,157
Noble Energy, Inc.		1,900		161,158
QEP Resources, Inc.		9,300		278,721
Range Resources Corp.		7,800		482,586
Rowan Cos., Inc.*		9,800		316,834

				2,073,157

Oil & Gas Services — 1.4%
Halliburton Co.		12,200		346,358
Superior Energy Services, Inc.*		17,700		358,071
Weatherford International Ltd.*		15,100		190,713

				895,142

Packaging and Containers — 1.7%
Ball Corp.		12,600		517,230
Greif, Inc., Class A		7,545		309,345
Rock-Tenn Co., Class A		3,900		212,745

				1,039,320

Pharmaceuticals — 6.1%
McKesson Corp.		8,100		759,375
Mylan, Inc.*		49,400		1,055,678
Par Pharmaceutical Cos., Inc.*		14,000		505,960
Warner Chilcott Plc, Class A*		15,700		281,344
Watson Pharmaceuticals, Inc.*		16,100		1,191,239

				3,793,596

Pipelines — 0.6%
Kinder Morgan, Inc.		11,628		374,654


	Number of Shares		Value†

Real Estate — 1.3%
Jones Lang LaSalle, Inc.		11,764	$	827,833

Retail — 3.8%
Darden Restaurants, Inc.		7,900		399,977
J.C. Penney Co., Inc.*		7,500		174,825
Macy’s, Inc.		24,400		838,140
Pier 1 Imports, Inc.		47,100		773,853
PVH Corp.		2,000		155,580

				2,342,375

Semiconductors — 3.8%
Analog Devices, Inc.		12,500		470,875
Broadcom Corp., Class A*		20,400		689,520
Lam Research Corp.*		10,700		403,818
Micron Technology, Inc.*		76,600		483,346
Xilinx, Inc.		9,500		318,915

				2,366,474

Software — 2.7%
Adobe Systems, Inc.*		12,000		388,440
Fiserv, Inc.*		17,600		1,271,072

				1,659,512

Telecommunications — 2.4%
Anixter International, Inc.*		14,500		769,225
CenturyLink, Inc.		18,800		742,412

				1,511,637

Transportation — 2.2%
Kansas City Southern		3,800		264,328
Kirby Corp.*		700		32,956
Knight Transportation, Inc.		27,800		444,522
Tidewater, Inc.		14,004		649,225

				1,391,031

TOTAL COMMON STOCKS (Cost $52,515,636)				57,243,465

REAL ESTATE INVESTMENT TRUSTS — 2.9%
Apartments — 0.2%
Home Properties, Inc.		2,485		152,480

Diversified — 1.5%
Vornado Realty Trust		5,600		470,288
Weyerhaeuser Co.		19,460		435,125

				905,413

Office Property — 0.9%
Alexandria Real Estate Equities, Inc.		7,800		567,216

Regional Malls — 0.3%
CBL & Associates Properties, Inc.		10,000		195,400

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $1,684,361)				1,820,509

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Mid Core Value Fund


	Number of Shares		Value†
WARRANTS — 0.1%
Kinder Morgan, Inc.* Strike price: $40.00 Expiration Date: 05/25/17 (Cost $21,948)		13,952	$	30,137

SHORT-TERM INVESTMENTS — 4.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $3,055,056)		3,055,056		3,055,056

TOTAL INVESTMENTS — 100.0% (Cost $57,277,001)			$	62,149,167

†	See Security Valuation Note.

*	Non-income producing security.

ADR — American Depository Receipt.

Plc — Public Limited Company.


Country Weightings as of 06/30/2012†
United States	90	%
Bermuda	5
Switzerland	3
Canada	1
United Kingdom	1

Total	100	%

††	% of total investments as of June 30, 2012

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Observable Input
COMMON STOCKS	$	57,243,465	$	57,243,465	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		1,820,509		1,820,509		—		—
SHORT-TERM INVESTMENTS		3,055,056		3,055,056		—		—
WARRANTS		30,137		—		30,137		—

TOTAL INVESTMENTS	$	62,149,167	$	62,119,030	$	30,137	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

SMID Cap Growth Fund


	Number of Shares		Value†
COMMON STOCKS — 96.6%
Aerospace & Defense — 4.4%
M A-Com Technology Solutions Holdings, Inc.*		9,061	$	167,629
TransDigm Group, Inc.*		5,930		796,399
Triumph Group, Inc.		7,890		443,970

				1,407,998

Airlines — 1.7%
Copa Holdings S.A., Class A		6,470		533,646

Apparel — 1.3%
Under Armour, Inc., Class A*		4,490		424,215

Auto Manufacturers — 1.2%
Tesla Motors, Inc.*		11,976		374,729

Auto Parts & Equipment — 1.0%
BorgWarner, Inc.*		4,890		320,735

Beverages — 2.8%
Boston Beer Co., Inc., Class A*		4,370		528,770
Monster Beverage Corp.*		5,170		368,104

				896,874

Biotechnology — 2.6%
Alexion Pharmaceuticals, Inc.*		3,960		393,228
Cubist Pharmaceuticals, Inc.*		11,390		431,795

				825,023

Chemicals — 2.6%
Airgas, Inc.		10,160		853,542

Commercial Services — 8.5%
Alliance Data Systems Corp.*		4,560		615,600
Gartner, Inc.*		16,355		704,083
Hertz Global Holdings, Inc.*		29,320		375,296
ServiceSource International, Inc.*		23,472		325,087
Team Health Holdings, Inc.*		16,410		395,317
Verisk Analytics, Inc.*		6,460		318,219

				2,733,602

Computers — 1.5%
Fortinet, Inc.*		20,504		476,103

Distribution & Wholesale — 1.5%
WESCO International, Inc.*		8,390		482,844

Diversified Financial Services — 1.7%
Affiliated Managers Group, Inc.*		4,980		545,061

Electronics — 2.2%
FEI Co.		5,820		278,429
Trimble Navigation Ltd.*		9,030		415,470

				693,899

Food — 1.9%
Fresh Market, Inc. (The)*		5,150		276,194
The Hain Celestial Group, Inc.*		6,190		340,698

				616,892


	Number of Shares		Value†

Healthcare Products — 5.9%
Align Technology, Inc.*		7,460	$	249,612
Bruker Corp.*		17,660		235,055
Cepheid, Inc.*		7,010		313,697
Hanger Orthopedic Group, Inc.*		15,470		396,651
HeartWare International, Inc.*		2,190		194,472
MAKO Surgical Corp.*		8,150		208,721
Thoratec Corp.*		8,770		294,497

				1,892,705

Healthcare Services — 1.1%
Laboratory Corp. of America Holdings*		3,670		339,879

Home Furnishings — 0.6%
Select Comfort Corp.*		9,360		195,811

Industrial — 0.9%
Rexnord Corp.*		15,313		306,873

Internet — 10.7%
Angie’s List, Inc.*		11,360		179,942
BroadSoft, Inc.*		14,440		418,183
DealerTrack Holdings, Inc.*		16,910		509,160
Equinix, Inc.*		1,820		319,683
ExactTarget, Inc.*		7,826		171,076
F5 Networks, Inc.*		3,150		313,614
Homeaway, Inc.*		641		13,935
Liquidity Services, Inc.*		7,210		369,080
MercadoLibre, Inc.		5,030		381,274
TIBCO Software, Inc.*		18,810		562,795
TripAdvisor, Inc.*		4,724		211,116

				3,449,858

Machinery — Construction & Mining — 0.5%
Joy Global, Inc.		2,940		166,786

Machinery — Diversified — 4.4%
Chart Industries, Inc.*		7,750		532,890
Graco, Inc.		9,340		430,387
Wabtec Corp.		5,680		443,097

				1,406,374

Miscellaneous Manufacturing — 1.9%
Colfax Corp.*		8,126		224,034
Sodastream International Ltd.		9,840		403,145

				627,179

Oil & Gas — 3.5%
Approach Resources, Inc.*		11,134		284,362
Cabot Oil & Gas Corp.		6,160		242,704
Kodiak Oil & Gas Corp.*		36,490		299,583
Plains Exploration & Production Co.*		8,320		292,698

				1,119,347

Oil & Gas Services — 0.9%
Oil States International, Inc.*		4,370		289,294

Pharmaceuticals — 4.3%
Auxilium Pharmaceuticals, Inc.*		15,420		414,644
BioMarin Pharmaceutical, Inc.*		12,761		505,080

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

SMID Cap Growth Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — (continued)
Impax Laboratories, Inc.*		17,230	$	349,252
Threshold Pharmaceuticals, Inc.*		16,800		124,320

				1,393,296

Real Estate — 1.0%
CBRE Group, Inc., Class A*		19,270		315,257

Retail — 8.3%
DSW, Inc., Class A		7,198		391,571
Fifth & Pacific CO., Inc.*		18,800		201,724
GNC Holdings, Inc., Class A		14,894		583,845
Hibbett Sports, Inc.*		6,470		373,383
PVH Corp.		4,730		367,947
Tractor Supply Co.		2,530		210,142
Ulta Salon Cosmetics & Fragrance, Inc.*		5,960		556,545

				2,685,157

Semiconductors — 1.0%
Avago Technologies Ltd.		8,950		321,305

Software — 5.8%
Aspen Technology, Inc.*		27,720		641,718
athenahealth, Inc.*		4,070		322,222
Autodesk, Inc.*		7,210		252,278
CommVault Systems, Inc.*		6,590		326,666
NetSuite, Inc.*		3,460		189,504
VeriFone Systems, Inc.*		4,480		148,243

				1,880,631

Storage & Warehousing — 0.6%
Wesco Aircraft Holdings, Inc.*		15,295		194,705

Telecommunications — 5.6%
EZchip Semiconductor Ltd.		7,700		308,308
Iridium Communications, Inc.*		43,150		386,624
LogMeIn, Inc.*		9,842		300,378
SBA Communications Corp., Class A*		14,076		803,036

				1,798,346

Toys, Games & Hobbies — 1.1%
Leapfrog Enterprises, Inc.*		33,980		348,635

Transportation — 3.6%
Gulfmark Offshore, Inc., Class A*		6,880		234,195
Kansas City Southern		13,150		914,714

				1,148,909

TOTAL COMMON STOCKS (Cost $28,274,753)				31,065,510

SHORT-TERM INVESTMENTS — 3.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,101,516)		1,101,516		1,101,516

TOTAL INVESTMENTS — 100.0% (Cost $29,376,269)			$	32,167,026

†	See Security Valuation Note.

*	Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	31,065,510	$	31,065,510	$	—	$	—
SHORT-TERM INVESTMENTS		1,101,516		1,101,516		—		—

TOTAL INVESTMENTS	$	32,167,026	$	32,167,026	$	—	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

SMID Cap Value Fund


	Number of Shares		Value†
COMMON STOCKS — 88.3%
Apparel — 0.9%
The Jones Group, Inc.		34,160	$	326,570

Auto Parts & Equipment — 2.5%
Dana Holding Corp.		15,700		201,117
Lear Corp.		10,530		397,297
TRW Automotive Holdings Corp.*		8,920		327,899

				926,313

Banks — 9.2%
Associated Banc-Corp.		33,330		439,623
CapitalSource, Inc.		74,110		498,019
Comerica, Inc.		16,345		501,955
Huntington Bancshares, Inc.		77,470		495,808
Popular, Inc.*		17,379		288,665
Susquehanna Bancshares, Inc.		46,080		474,624
Webster Financial Corp.		10,690		231,545
Zions Bancorporation		25,830		501,619

				3,431,858

Beverages — 1.4%
Constellation Brands, Inc., Class A*		19,560		529,294

Building Materials — 1.2%
Fortune Brands Home & Security, Inc.*		20,190		449,631

Chemicals — 0.7%
Ferro Corp.*		52,850		253,680

Commercial Services — 2.6%
Avis Budget Group, Inc.*		22,570		343,064
Convergys Corp.		27,770		410,163
Hertz Global Holdings, Inc.*		17,620		225,536

				978,763

Computers — 1.4%
Insight Enterprises, Inc.*		16,420		276,349
NCR Corp.*		11,210		254,803

				531,152

Distribution & Wholesale — 2.4%
Arrow Electronics, Inc.*		12,550		411,766
Ingram Micro, Inc., Class A*		15,790		275,851
WESCO International, Inc.*		3,540		203,727

				891,344

Diversified Financial Services — 2.4%
Aircastle Ltd.		36,700		442,235
Legg Mason, Inc.		17,070		450,136

				892,371

Electric — 5.2%
Great Plains Energy, Inc.		18,850		403,578
NV Energy, Inc.		29,460		517,907
PNM Resources, Inc.		27,230		532,074
Portland General Electric Co.		18,465		492,277

				1,945,836


	Number of Shares		Value†

Electrical Components & Equipment — 1.9%
EnerSys*		6,530	$	229,007
General Cable Corp.*		17,970		466,142

				695,149

Electronics — 4.7%
AU Optronics Corp. ADR		82,840		333,017
Avnet, Inc.*		14,300		441,298
Flextronics International Ltd.*		50,350		312,170
TTM Technologies, Inc.*		37,560		353,440
Vishay Intertechnology, Inc.*		33,640		317,225

				1,757,150

Engineering & Construction — 0.6%
Tutor Perini Corp.		19,250		243,898

Food — 3.0%
Dean Foods Co.*		19,700		335,491
Dole Food Co., Inc.*		35,830		314,587
Tyson Foods, Inc., Class A		24,870		468,302

				1,118,380

Gas — 2.7%
Atmos Energy Corp.		14,445		506,586
UGI Corp.		17,030		501,193

				1,007,779

Healthcare Services — 3.4%
Coventry Health Care, Inc.		13,830		439,656
Health Net, Inc.*		13,270		322,063
LifePoint Hospitals, Inc.*		12,530		513,479

				1,275,198

Home Builders — 2.1%
Meritage Homes Corp.*		10,420		353,655
NVR, Inc.*		505		429,250

				782,905

Household Products & Wares — 1.1%
Avery Dennison Corp.		14,490		396,157

Housewares — 1.3%
Newell Rubbermaid, Inc.		26,540		481,436

Insurance — 9.9%
AmTrust Financial Services, Inc.		11,280		335,129
Aspen Insurance Holdings Ltd.		16,950		489,855
Endurance Specialty Holdings Ltd.		13,545		519,044
Fidelity National Financial, Inc., Class A		26,070		502,108
Platinum Underwriters Holdings Ltd.		12,650		481,965
Reinsurance Group of America, Inc.		8,915		474,367
Torchmark Corp.		9,550		482,753
Unum Group		20,515		392,452

				3,677,673

Iron & Steel — 2.5%
Commercial Metals Co.		26,460		334,454
Reliance Steel & Aluminum Co.		6,450		325,725
Steel Dynamics, Inc.		22,040		258,970

				919,149

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

SMID Cap Value Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Leisure Time — 1.2%
Royal Caribbean Cruises Ltd.		16,540	$	430,536

Lodging — 1.2%
MGM Resorts International*		40,180		448,409

Machinery — Diversified — 0.5%
Sauer-Danfoss, Inc.		5,500		192,115

Media — 1.1%
Gannett Co., Inc.		26,780		394,469

Metal Fabricate/Hardware — 0.8%
Timken Co.		6,860		314,119

Oil & Gas — 4.4%
Helmerich & Payne, Inc.		8,220		357,405
Plains Exploration & Production Co.*		8,920		313,806
Stone Energy Corp.*		9,290		235,409
Tesoro Corp.*		15,270		381,139
Western Refining, Inc.		15,410		343,181

				1,630,940

Retail — 4.3%
ANN, Inc.*		17,470		445,310
Express, Inc.*		12,150		220,765
Office Depot, Inc.*		102,750		221,940
The Children’s Place Retail Stores, Inc.*		9,190		457,938
The Men’s Wearhouse, Inc.		9,320		262,265

				1,608,218

Savings & Loans — 2.0%
First Niagara Financial Group, Inc.		53,880		412,182
Washington Federal, Inc.		19,860		335,435

				747,617

Semiconductors — 5.1%
Amkor Technology, Inc.*		56,910		277,721
Entegris, Inc.*		48,580		414,873
Lam Research Corp.*		10,690		403,441
Micron Technology, Inc.*		66,590		420,183
MKS Instruments, Inc.		12,940		374,354

				1,890,572

Telecommunications — 1.7%
Amdocs Ltd.		15,195		451,595
Anixter International, Inc.*		3,720		197,346

				648,941

Transportation — 2.9%
Bristow Group, Inc.		9,435		383,722
Con-way, Inc.		9,200		332,212
Teekay Corp.		12,080		353,702

				1,069,636

TOTAL COMMON STOCKS (Cost $30,875,412)				32,887,258


	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — 9.2%
Apartments — 4.1%
BRE Properties, Inc.		8,030	$	401,660
Camden Property Trust		6,230		421,584
Home Properties, Inc.		4,510		276,734
Mid-America Apartment Communities, Inc.		6,230		425,135

				1,525,113

Diversified — 1.2%
Entertainment Properties Trust		10,840		445,632

Forest Products & Paper — 0.6%
Plum Creek Timber Co.		5,760		228,672

Hotels & Resorts — 0.9%
DiamondRock Hospitality Co.		32,750		334,050

Office Property — 1.3%
BioMed Realty Trust, Inc.		25,300		472,604

Regional Malls — 1.1%
Glimcher Realty Trust		42,080		430,058

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,246,562)				3,436,129

SHORT-TERM INVESTMENTS — 2.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $934,328)		934,328		934,328

TOTAL INVESTMENTS — 100.0% (Cost $35,056,302)			$	37,257,715

†	See Security Valuation Note.

*	Non-income producing security.

ADR — American Depository Receipt.


Country Weightings as of 06/30/2012††
United States	92	%
Bermuda	4
Canada	1
Puerto Rico	1
Singapore	1
Taiwan	1

Total	100	%

††	% of total investments as of June 30, 2012

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

SMID Cap Value Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012			Level 1 Quoted Price			Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
COMMON STOCKS		$	32,887,258		$	32,887,258		$			$
REAL ESTATE INVESTMENT TRUSTS			3,436,129			3,436,129
SHORT-TERM INVESTMENTS			934,328			934,328			—			—

TOTAL INVESTMENTS		$	37,257,715		$	37,257,715		$	—		$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Growth Fund


	Number of Shares		Value†
COMMON STOCKS — 99.6%
Airlines — 0.8%
Copa Holdings S.A., Class A		7,197	$	593,609

Apparel — 2.4%
Crocs, Inc.*		51,205		826,960
Steven Madden Ltd.*		13,725		435,769
Tumi Holdings, Inc.*		33,800		591,500

				1,854,229

Auto Manufacturers — 3.1%
Tesla Motors, Inc.*		25,400		794,766
Wabash National Corp.*		252,185		1,669,465

				2,464,231

Auto Parts & Equipment — 0.8%
Tenneco, Inc.*		23,675		634,964

Biotechnology — 6.6%
Amarin Corp. Plc*		65,460		946,552
Ariad Pharmaceuticals, Inc.*		40,650		699,587
Cubist Pharmaceuticals, Inc.*		21,740		824,163
Emergent BioSolutions, Inc.*		94,650		1,433,947
Myriad Genetics, Inc.*		54,575		1,297,248

				5,201,497

Chemicals — 1.2%
American Vanguard Corp.		36,550		971,864

Commercial Services — 14.0%
Acacia Research - Acacia Technologies*		44,825		1,669,283
American Public Education, Inc.*		58,366		1,867,712
HMS Holdings Corp.*		11,925		397,222
Lender Processing Services, Inc.		90,085		2,277,349
Medifast, Inc.*		45,500		895,440
Parexel International Corp.*		21,075		594,947
ServiceSource International, Inc.*		70,075		970,539
United Rentals, Inc.*		31,240		1,063,409
VistaPrint N.V.		38,859		1,255,146

				10,991,047

Computers — 0.5%
Mitek Systems, Inc.*		106,523		414,374

Distribution & Wholesale — 1.2%
Titan Machinery, Inc.*		30,550		927,803

Diversified Financial Services — 5.6%
Encore Capital Group, Inc.*		58,425		1,730,548
Financial Engines, Inc.*		60,450		1,296,653
WisdomTree Investments, Inc.*		216,207		1,420,480

				4,447,681

Entertainment — 1.8%
Pinnacle Entertainment, Inc.*		89,275		858,825
Shuffle Master, Inc.*		41,475		572,355

				1,431,180

Food — 0.4%
Smart Balance, Inc.*		33,525		314,800


	Number of Shares		Value†

Healthcare Products — 4.7%
Abiomed, Inc.*		41,850	$	955,017
Align Technology, Inc.*		33,211		1,111,240
Insulet Corp.*		33,325		712,155
OraSure Technologies, Inc.*		80,850		908,754

				3,687,166

Healthcare Services — 0.8%
IPC The Hospitalist Co., Inc.*		13,053		591,562

Home Furnishings — 0.9%
Skullcandy, Inc.*		47,750		675,663

Internet — 7.7%
BroadSoft, Inc.*		53,641		1,553,443
Cogent Communications Group, Inc.*		40,475		779,144
Constant Contact, Inc.*		84,220		1,505,854
ExactTarget, Inc.*		25,825		564,535
Pandora Media, Inc.*		68,550		745,138
Shutterfly, Inc.*		30,400		932,976

				6,081,090

Leisure Time — 2.4%
Life Time Fitness, Inc.*		41,480		1,929,235

Machinery — Diversified — 0.9%
The Manitowoc Co., Inc.		59,175		692,347

Metal Fabricate/Hardware — 2.3%
Dynamic Materials Corp.		55,750		966,148
Haynes International, Inc.		16,176		824,005

				1,790,153

Mining — 3.6%
Globe Specialty Metals, Inc.		104,647		1,405,409
Horsehead Holding Corp.*		142,214		1,416,452

				2,821,861

Miscellaneous Manufacturing — 2.8%
Polypore International, Inc.*		54,425		2,198,226

Oil & Gas — 11.5%
Carrizo Oil & Gas, Inc.*		74,375		1,748,556
Comstock Resources, Inc.*		174,535		2,865,865
Goodrich Petroleum Corp.*		155,897		2,160,732
PDC Energy, Inc.*		26,000		637,520
Quicksilver Resources, Inc.*		299,683		1,624,282

				9,036,955

Oil & Gas Services — 1.4%
Tesco Corp.*		94,210		1,130,520

Pharmaceuticals — 2.4%
Questcor Pharmaceuticals, Inc.*		36,175		1,925,957

Semiconductors — 4.0%
Cavium, Inc.*		67,625		1,893,500
Inphi Corp.*		132,150		1,252,782

				3,146,282

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Growth Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Software — 1.5%
QLIK Technologies, Inc.*		26,100	$	577,332
Rosetta Stone, Inc.*		44,797		619,990

				1,197,322

Storage & Warehousing — 1.5%
Mobile Mini, Inc.*		83,037		1,195,733

Telecommunications — 8.0%
Acme Packet, Inc.*		92,025		1,716,266
Aruba Networks, Inc.*		56,225		846,186
IPG Photonics Corp.*		41,950		1,828,601
Sycamore Networks, Inc.*		130,774		1,898,838

				6,289,891

Transportation — 3.5%
Celadon Group, Inc.		40,849		669,107
Scorpio Tankers, Inc.		160,380		1,024,828
Swift Transportation Co.*		60,875		575,269
Vitran Corp., Inc.*		84,838		509,028

				2,778,232

Trucking and Leasing — 1.3%
Greenbrier Cos., Inc.*		59,950		1,053,921

TOTAL COMMON STOCKS (Cost $78,441,101)				78,469,395

SHORT-TERM INVESTMENTS — 0.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $279,197)		279,197		279,197

TOTAL INVESTMENTS — 100.0% (Cost $78,720,298)			$	78,748,592

†	See Security Valuation Note.

*	Non-income producing security.

ADS — American Depository Share

Plc — Public Limited Company.


Country Weightings as of 06/30/2012††
United States	93	%
Canada	2
Netherlands	2
Ireland	1
Panama	1
Principality of Monaco	1

Total	100	%

††	% of total investments as of June 30, 2012

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	78,469,395	$	78,469,395	$	—	$	—
SHORT-TERM INVESTMENTS		279,197		279,197		—		—

TOTAL INVESTMENTS	$	78,748,592	$	78,748,592	$	—	$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Value Fund


	Number of Shares		Value†
COMMON STOCKS — 85.9%
Aerospace & Defense — 1.5%
AAR Corp.		27,477	$	370,390
Kaman Corp.		39,408		1,219,284
Triumph Group, Inc.		15,023		845,344

				2,435,018

Apparel — 1.1%
Deckers Outdoor Corp.*		8,884		390,985
Steven Madden Ltd.*		22,524		715,137
The Warnaco Group, Inc.*		16,788		714,833

				1,820,955

Auto Parts & Equipment — 0.8%
American Axle & Manufacturing Holdings, Inc.*		28,644		300,476
Dana Holding Corp.		26,154		335,033
Tenneco, Inc.*		22,965		615,921

				1,251,430

Banks — 13.2%
BancorpSouth, Inc.		54,523		791,674
Bank of the Ozarks, Inc.		42,872		1,289,590
Boston Private Financial Holdings, Inc.		57,343		512,073
Bridge Capital Holdings*		12,231		197,531
CoBiz Financial, Inc.		32,185		201,478
Columbia Banking System, Inc.		31,794		598,363
Community Bank System, Inc.		33,108		897,889
F.N.B. Corp.		59,339		645,015
First Financial Bankshares, Inc.		26,795		926,035
First Midwest Bancorp, Inc.		61,112		671,010
Glacier Bancorp, Inc.		57,295		887,499
Hancock Holding Co.		33,248		1,012,069
Heritage Financial Corp.		16,047		235,088
Home Bancshares, Inc.		16,940		518,025
Iberiabank Corp.		6,448		325,302
Independent Bank Corp.		14,100		411,861
Lakeland Financial Corp.		13,788		369,932
MB Financial, Inc.		47,388		1,020,737
Pinnacle Financial Partners, Inc.*		32,027		624,847
PrivateBancorp, Inc.		56,463		833,394
Prosperity Bancshares, Inc.		29,354		1,233,749
Sandy Spring Bancorp, Inc.		15,080		271,440
SCBT Financial Corp.		18,141		639,470
Sierra Bancorp		7,983		79,032
Signature Bank*		28,665		1,747,705
Simmons First National Corp., Class A		9,421		219,038
Southcoast Financial Corp.*		10,671		26,464
Sterling Financial Corp.*		15,476		292,342
Summit State Bank		9,857		56,678
Texas Capital Bancshares, Inc.*		34,461		1,391,880
The First of Long Island Corp.		8,510		246,535
Trico Bancshares		18,231		280,757
UMB Financial Corp.		25,577		1,310,310
Webster Financial Corp.		39,840		862,934

				21,627,746


	Number of Shares		Value†

Beverages — 0.3%
Boston Beer Co., Inc., Class A*		4,516	$	546,436

Building Materials — 0.9%
Comfort Systems USA, Inc.		84,321		844,897
Universal Forest Products, Inc.		16,343		637,050

				1,481,947

Chemicals — 2.9%
H.B. Fuller Co.		31,140		955,998
Minerals Technologies, Inc.		13,721		875,125
PolyOne Corp.		88,781		1,214,524
Tronox Ltd		2,955		356,728
W.R. Grace & Co.*		17,582		887,012
Westlake Chemical Corp.		9,554		499,292

				4,788,679

Commercial Services — 2.6%
Aaron’s Inc		14,631		414,204
Convergys Corp.		68,107		1,005,940
H&E Equipment Services, Inc.*		26,886		404,096
Monro Muffler Brake, Inc.		22,857		759,767
On Assignment, Inc.*		34,619		552,519
Team Health Holdings, Inc.*		32,008		771,073
United Rentals, Inc.*		12,646		430,470

				4,338,069

Computers — 1.6%
Electronics for Imaging, Inc.*		54,601		887,266
Mentor Graphics Corp.*		57,754		866,310
MTS Systems Corp.		1,192		45,952
NetScout Systems, Inc.*		34,448		743,732

				2,543,260

Cosmetics & Personal Care — 0.5%
Elizabeth Arden, Inc.*		18,768		728,386

Distribution & Wholesale — 1.5%
Beacon Roofing Supply, Inc.*		17,595		443,746
Fossil, Inc.*		1,102		84,347
ScanSource, Inc.*		24,558		752,457
Watsco, Inc.		16,385		1,209,213

				2,489,763

Diversified Financial Services — 3.2%
BGC Partners, Inc., Class A		29,265		171,786
Cohen & Steers, Inc.		10,711		369,637
KBW, Inc.		24,282		399,439
Knight Capital Group, Inc., Class A*		62,560		746,966
Manning & Napier, Inc.		15,420		219,427
MarketAxess Holdings, Inc.		23,935		637,628
Ocwen Financial Corp.*		78,675		1,477,516
Piper Jaffray Cos.*		6,430		150,655
Solar Senior Capital Ltd.		11,587		195,820
Stifel Financial Corp.*		29,961		925,795

				5,294,669

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Value Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Electric — 4.9%
Allete, Inc.		13,062	$	545,992
Black Hills Corp.		7,481		240,664
Cleco Corp.		37,447		1,566,408
El Paso Electric Co.		91,045		3,019,052
IDACORP, Inc.		39,740		1,672,259
NorthWestern Corp.		15,797		579,750
Uns Energy Corp.		11,839		454,736

				8,078,861

Electrical Components & Equipment — 1.4%
Acuity Brands, Inc.		10,670		543,210
Belden, Inc.		31,076		1,036,384
Littelfuse, Inc.		13,157		748,502

				2,328,096

Electronics — 1.1%
Checkpoint Systems, Inc.*		49,301		429,412
Coherent, Inc.*		2,249		97,381
Newport Corp.*		64,841		779,389
PerkinElmer, Inc.		18,409		474,952

				1,781,134

Engineering & Construction — 0.4%
Michael Baker Corp.*		8,553		223,148
MYR Group, Inc.*		26,915		459,170

				682,318

Entertainment — 1.4%
Six Flags Entertainment Corp.		22,786		1,234,546
Vail Resorts, Inc.		19,463		974,707

				2,209,253

Environmental Control — 0.8%
Darling International, Inc.*		45,762		754,615
Waste Connections, Inc.		17,442		521,865

				1,276,480

Food — 1.2%
The Hain Celestial Group, Inc.*		17,678		972,997
TreeHouse Foods, Inc.*		14,992		933,852

				1,906,849

Gas — 2.2%
Southwest Gas Corp.		83,742		3,655,338

Hand & Machine Tools — 0.4%
Regal-Beloit Corp.		9,740		606,412

Healthcare Products — 1.4%
Orthofix International NV*		20,797		857,876
PSS World Medical, Inc.*		33,804		709,546
West Pharmaceutical Services, Inc.		13,100		661,419

				2,228,841

Healthcare Services — 3.9%
Acadia Healthcare CO Inc*		38,985		683,797
AMERIGROUP Corp.*		12,969		854,787
HealthSouth Corp.*		88,099		2,049,182


	Number of Shares		Value†

Healthcare Services — (continued)
ICON Plc ADR*		60,453	$	1,362,006
Lincare Holdings, Inc.		44,497		1,513,788

				6,463,560

Home Builders — 0.5%
Meritage Homes Corp.*		22,357		758,797

Home Furnishings — 0.5%
Harman International Industries, Inc.		17,862		707,335
Select Comfort Corp.*		8,043		168,260

				875,595

Insurance — 5.0%
Alterra Capital Holdings Ltd.		41,778		975,516
American Equity Investment Life Holding Co.		126,895		1,397,114
Aspen Insurance Holdings Ltd.		16,231		469,076
Donegal Group, Inc., Class A		8,548		113,518
Enstar Group Ltd.		5,349		529,230
Meadowbrook Insurance Group, Inc.		172,400		1,515,396
ProAssurance Corp.		16,692		1,487,090
RLI Corp.		10,672		727,830
Tower Group, Inc.		45,222		943,783

				8,158,553

Investment Companies — 0.6%
Golub Capital BDC, Inc.		17,653		266,384
PennantPark Investment Corp.		40,298		417,084
Solar Capital Ltd.		16,184		360,256

				1,043,724

Iron & Steel — 0.7%
Commercial Metals Co.		16,112		203,656
Metals USA Holdings Corp.*		45,761		728,058
Schnitzer Steel Industries, Inc., Class A		9,025		252,880

				1,184,594

Leisure Time — 0.6%
Arctic Cat, Inc.*		11,637		425,449
Polaris Industries, Inc.		8,424		602,147

				1,027,596

Machinery — Diversified — 2.7%
Altra Holdings, Inc.		28,849		455,237
Applied Industrial Technologies, Inc.		24,739		911,632
Edwards Group Ltd*		80,304		639,220
Graco, Inc.		16,641		766,817
Robbins & Myers, Inc.		23,709		991,510
Tennant Co.		8,766		350,202
Twin Disc, Inc.		15,083		278,885

				4,393,503

Metal Fabricate/Hardware — 0.8%
Olympic Steel, Inc.		15,821		259,781
RBC Bearings, Inc.*		22,329		1,056,162

				1,315,943

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Value Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Mining — 1.0%
Coeur d’Alene Mines Corp.*		13,004	$	228,350
Kaiser Aluminum Corp.		28,338		1,469,042

				1,697,392

Miscellaneous Manufacturing — 2.7%
A.O. Smith Corp.		24,767		1,210,859
Actuant Corp., Class A		18,392		499,527
AZZ, Inc.		10,961		671,471
Carlisle Cos., Inc.		30,976		1,642,347
Raven Industries, Inc.		5,418		377,038

				4,401,242

Oil & Gas — 1.8%
Approach Resources, Inc.*		65,412		1,670,623
Magnum Hunter Resources Corp.*		85,550		357,599
Matador Resources Co.*		26,561		285,265
PDC Energy, Inc.*		21,384		524,336
Rex Energy Corp.*		4,064		45,557

				2,883,380

Oil & Gas Services — 2.8%
Dril-Quip, Inc.*		24,880		1,631,879
Forum Energy Technologies, Inc.*		18,453		363,340
Key Energy Services, Inc.*		131,380		998,488
Newpark Resources, Inc.*		197,720		1,166,548
Thermon Group Holdings, Inc.*		23,747		491,800

				4,652,055

Real Estate — 0.1%
Kennedy-Wilson Holdings, Inc.		14,016		196,364

Retail — 5.5%
Asbury Automotive Group, Inc.*		16,264		385,294
Big Lots, Inc.*		12,868		524,886
Cabela’s, Inc.*		6,689		252,911
Casey’s General Stores, Inc.		9,878		582,703
DineEquity, Inc.*		3,331		148,696
Express, Inc.*		36,387		661,152
First Cash Financial Services, Inc.*		11,244		451,672
Francesca’s Holdings Corp.*		15,612		421,680
Genesco, Inc.*		9,246		556,147
GNC Holdings, Inc., Class A		25,685		1,006,852
HSN, Inc.		24,572		991,480
Jos. A. Bank Clothiers, Inc.*		15,224		646,411
Mattress Firm Holding Corp.*		22,955		695,766
Susser Holdings Corp.*		11,822		439,424
Vitamin Shoppe, Inc.*		7,379		405,328
World Fuel Services Corp.		22,235		845,597

				9,015,999

Savings & Loans — 1.6%
Brookline Bancorp, Inc.		55,180		488,343
Dime Community Bancshares Inc.		23,413		311,159
Flushing Financial Corp.		36,546		498,122
Northwest Bancshares, Inc.		45,867		537,102


	Number of Shares		Value†

Savings & Loans — (continued)
Provident Financial Services, Inc.		33,963	$	521,332
WSFS Financial Corp.		7,395		298,832

				2,654,890

Semiconductors — 3.5%
Cabot Microelectronics Corp.*		26,907		785,953
Fairchild Semiconductor International, Inc.*		77,666		1,095,091
Intersil Corp., Class A		97,541		1,038,812
Micrel, Inc.		39,878		380,037
MKS Instruments, Inc.		37,391		1,081,722
Semtech Corp.*		53,695		1,305,862

				5,687,477

Software — 2.7%
Digi International, Inc.*		35,644		364,995
Interactive Intelligence Group, Inc.*		6,295		177,582
Monotype Imaging Holdings, Inc.*		36,489		611,920
Parametric Technology Corp.*		53,726		1,126,097
SS&C Technologies Holdings, Inc.*		48,317		1,207,925
SYNNEX Corp.*		21,373		737,155
Verint Systems, Inc.*		8,476		250,127

				4,475,801

Telecommunications — 2.0%
ADTRAN, Inc.		24,926		752,516
Anixter International, Inc.*		19,394		1,028,852
Plantronics, Inc.		18,129		605,509
Premiere Global Services, Inc.*		106,242		891,370

				3,278,247

Textiles — 0.5%
G&K Services, Inc., Class A		27,575		860,064

Transportation — 1.1%
Forward Air Corp.		30,826		994,755
Heartland Express, Inc.		57,208		818,646

				1,813,401

TOTAL COMMON STOCKS (Cost $124,807,692)				140,938,117

REAL ESTATE INVESTMENT TRUSTS — 12.1%
Apartments — 1.0%
American Campus Communities, Inc.		18,720		842,026
Mid-America Apartment Communities, Inc.		13,009		887,734

				1,729,760

Building & Real Estate — 3.2%
CreXus Investment Corp.		40,664		413,553
CYS Investments, Inc.		105,080		1,446,952
MFA Financial, Inc.		187,170		1,476,771
National Retail Properties, Inc.		29,790		842,759
Two Harbors Investment Corp.		102,729		1,064,272

				5,244,307

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Value Fund


	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Diversified — 3.1%
Coresite Realty Corp.		44,645	$	1,152,734
DuPont Fabros Technology, Inc.		32,597		930,970
Entertainment Properties Trust		35,447		1,457,226
PS Business Parks, Inc.		23,661		1,602,323

				5,143,253

Healthcare — 0.9%
LTC Properties, Inc.		25,381		920,823
Omega Healthcare Investors, Inc.		21,961		494,122

				1,414,945

Hotels & Resorts — 1.6%
DiamondRock Hospitality Co.		63,708		649,822
LaSalle Hotel Properties		32,291		940,960
Pebblebrook Hotel Trust		43,301		1,009,346

				2,600,128

Office Property — 0.6%
Hudson Pacific Properties, Inc.		59,238		1,031,333

Regional Malls — 0.6%
CBL & Associates Properties, Inc.		48,039		938,682

Storage & Warehousing — 0.5%
CubeSmart		66,094		771,317

Strip Centers — 0.6%
Acadia Realty Trust		38,995		903,904
Retail Opportunity Investments Corp.		12,913		155,731

				1,059,635

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $16,251,225)				19,933,360

WARRANTS — 0.0%
Magnum Hunter Resources Corp.~ (Cost $0)		6,348		0

SHORT-TERM INVESTMENTS — 2.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $3,253,109)		3,253,109		3,253,109

TOTAL INVESTMENTS — 100.0% (Cost $144,312,026)			$	164,124,586

†	See Security Valuation Note.

*	Non-income producing security.

~	Fair valued security. The total market value of fair valued securities at June 30, 2012 is $0.

ADR — American Depository Receipt.

Plc — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012			Level 1 Quoted Price			Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
COMMON STOCKS		$	140,938,117		$	140,938,117		$	—		$	—
REAL ESTATE INVESTMENT TRUSTS			19,933,360			19,933,360			—			—
SHORT-TERM INVESTMENTS			3,253,109			3,253,109			—			—

TOTAL INVESTMENTS		$	164,124,586		$	164,124,586		$	—		$	—

The accompanying notes are an integral part of these financial statements.

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — 89.9%
Advertising — 0.1%
Harte-Hanks, Inc.		978	$	8,939
Marchex, Inc., Class B		745		2,689
MDC Partners, Inc.		600		6,804
Millennial Media, Inc.*		700		9,233

				27,665

Aerospace & Defense — 1.2%
AAR Corp.		1,169		15,758
AeroVironment, Inc.*		418		10,998
Astronics Corp.*		331		9,348
Cubic Corp.		469		22,550
Curtiss-Wright Corp.		1,226		38,067
Esterline Technologies Corp.*		840		52,374
GenCorp, Inc.*		1,240		8,072
HEICO Corp.		1,412		55,802
Kaman Corp.		648		20,049
Kratos Defense & Security Solutions, Inc.*		922		5,385
LMI Aerospace, Inc.*		153		2,659
Moog, Inc., Class A*		1,191		49,248
National Presto Industries, Inc.		146		10,186
Orbital Sciences Corp.*		1,696		21,912
Teledyne Technologies, Inc.*		1,004		61,897

				384,305

Agriculture — 0.4%
Alico, Inc.		51		1,557
Alliance One International, Inc.*		2,256		7,806
Cadiz, Inc.*		157		1,132
Griffin Land & Nurseries, Inc.		40		1,120
Limoneira Co.		100		1,622
Star Scientific, Inc.*		4,044		18,441
Tejon Ranch Co.*		388		11,104
The Andersons, Inc.		455		19,410
Universal Corp.		755		34,979
Vector Group Ltd.		1,341		22,824

				119,995

Airlines — 0.7%
Alaska Air Group, Inc.*		1,874		67,277
Allegiant Travel Co.*		401		27,942
Hawaiian Holdings, Inc.*		1,326		8,632
JetBlue Airways Corp.*		6,228		33,008
Republic Airways Holdings, Inc.*		1,201		6,665
SkyWest, Inc.		1,281		8,365
Spirit Airlines, Inc.*		1,400		27,244
US Airways Group, Inc.*		4,718		62,891

				242,024

Apparel — 1.1%
Cherokee, Inc.		200		2,786
Columbia Sportswear Co.		311		16,676
Crocs, Inc.*		2,600		41,990
Delta Apparel, Inc.*		200		2,732
G-III Apparel Group Ltd.*		404		9,571
Iconix Brand Group, Inc.*		1,942		33,927
K-Swiss, Inc., Class A*		424		1,306


	Number of Shares		Value†

Apparel — (continued)
Maidenform Brands, Inc.*		538	$	10,717
Oxford Industries, Inc.		308		13,767
Perry Ellis International, Inc.*		414		8,590
Quiksilver, Inc.*		4,460		10,392
RG Barry Corp.		200		2,718
Skechers U.S.A., Inc., Class A*		1,116		22,733
Steven Madden Ltd.*		1,033		32,798
The Jones Group, Inc.		1,965		18,785
The Warnaco Group, Inc.*		1,060		45,135
True Religion Apparel, Inc.		626		18,141
Tumi Holdings, Inc.*		900		15,750
Unifi, Inc.*		360		4,079
Weyco Group, Inc.		100		2,318
Wolverine World Wide, Inc.		1,291		50,065

				364,976

Auto Manufacturers — 0.0%
Wabash National Corp.*		2,200		14,564

Auto Parts & Equipment — 0.9%
Accuride Corp.*		1,000		6,000
American Axle & Manufacturing Holdings, Inc.*		1,716		18,001
Amerigon, Inc.*		1,168		13,420
Commercial Vehicle Group, Inc.*		600		5,172
Cooper Tire & Rubber Co.		1,849		32,432
Dana Holding Corp.		3,996		51,189
Dorman Products, Inc.*		592		14,853
Douglas Dynamics, Inc.		500		7,125
Exide Technologies*		1,787		6,004
Federal-Mogul Corp.*		1,000		11,000
Fuel Systems Solutions, Inc.*		634		10,581
Meritor, Inc.*		2,645		13,807
Miller Industries, Inc.		443		7,057
Modine Manufacturing Co.*		1,077		7,464
Spartan Motors, Inc.		917		4,805
Standard Motor Products, Inc.		700		9,856
Superior Industries International, Inc.		519		8,496
Tenneco, Inc.*		1,700		45,594
Titan International, Inc.		1,213		29,755
Tower International, Inc.*		200		2,100

				304,711

Banks — 6.2%
1st Source Corp.		326		7,368
1st United Bancorp, Inc.*		400		2,484
Alliance Financial Corp.		73		2,507
American National Bankshares, Inc.		400		9,424
Ameris Bancorp*		447		5,632
Ames National Corp.		199		4,575
Arrow Financial Corp.		350		8,460
BancFirst Corp.		160		6,706
Banco Latinoamericano de Exportaciones S.A., Class E		1,110		23,787
Bancorp, Inc.*		512		4,838
BancorpSouth, Inc.		2,449		35,559
Bank of Kentucky Financial Corp.		200		5,328

100

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
Bank of Marin Bancorp		90	$	3,331
Bank of the Ozarks, Inc.		976		29,358
Banner Corp.		400		8,764
Bar Harbor Bankshares		200		7,200
Boston Private Financial Holdings, Inc.		2,858		25,522
Bridge Bancorp, Inc.		107		2,524
Bridge Capital Holdings*		300		4,845
Bryn Mawr Bank Corp.		232		4,888
Camden National Corp.		326		11,938
Capital City Bank Group, Inc.*		269		1,983
Cardinal Financial Corp.		618		7,589
Cass Information Systems, Inc.		231		9,298
Cathay General Bancorp		2,050		33,845
Center Bancorp, Inc.		400		4,500
CenterState Banks of Florida, Inc.		1,432		10,239
Central Pacific Financial Corp.*		400		5,648
Century Bancorp, Inc., Class A		69		2,051
Chemical Financial Corp.		666		14,319
Citizens & Northern Corp.		356		6,782
Citizens Republic Bancorp, Inc.*		1,400		23,982
City Holding Co.		348		11,724
CNB Financial Corp.		474		7,731
CoBiz Financial, Inc.		600		3,756
Columbia Banking System, Inc.		1,170		22,019
Community Bank System, Inc.		1,011		27,418
Community Trust Bancorp, Inc.		321		10,750
CVB Financial Corp.		2,592		30,197
Eagle Bancorp, Inc.*		385		6,064
Encore Bancshares, Inc.*		200		4,126
Enterprise Bancorp, Inc.		300		4,917
Enterprise Financial Services Corp.		382		4,187
F.N.B. Corp.		4,308		46,828
Financial Institutions, Inc.		340		5,739
First Bancorp		324		2,880
First Bancorp Puerto Rico*		3,100		12,276
First Bancorp, Inc.		234		3,978
First Busey Corp.		1,802		8,704
First California Financial Group, Inc.*		1,300		8,944
First Commonwealth Financial Corp.		2,621		17,639
First Community Bancshares, Inc.		326		4,704
First Connecticut Bancorp, Inc.		659		8,897
First Financial Bancorp		1,605		25,648
First Financial Bankshares, Inc.		826		28,547
First Financial Corp.		280		8,120
First Interstate Bancsystem, Inc.		400		5,696
First Merchants Corp.		538		6,703
First Midwest Bancorp, Inc.		2,414		26,506
FirstMerit Corp.		3,176		52,468
Franklin Financial Corp.*		400		6,580
German American Bancorp, Inc.		292		5,986
Glacier Bancorp, Inc.		2,021		31,305
Great Southern Bancorp, Inc.		171		4,716
Guaranty Bancorp*		4,500		9,495
Hancock Holding Co.		2,072		63,072
Hanmi Financial Corp*		813		8,520


	Number of Shares		Value†

Banks — (continued)
Heartland Financial USA, Inc.		317	$	7,608
Heritage Commerce Corp.*		600		3,900
Heritage Financial Corp.		508		7,442
Home Bancshares, Inc.		582		17,798
Hudson Valley Holding Corp.		462		8,362
Iberiabank Corp.		746		37,636
Independent Bank Corp.		771		22,521
International Bancshares Corp.		1,525		29,768
Lakeland Bancorp, Inc.		559		5,881
Lakeland Financial Corp.		494		13,254
MainSource Financial Group, Inc.		521		6,163
MB Financial, Inc.		1,349		29,057
Mercantile Bank Corp.*		500		9,225
Merchants Bancshares, Inc.		86		2,369
Metro Bancorp, Inc.*		263		3,164
Metrocorp Bancshares, Inc.*		900		9,603
Midsouth Bancorp, Inc.		186		2,619
MidWestOne Financial Group, Inc.		400		8,600
National Bankshares, Inc.		119		3,584
National Penn Bancshares, Inc.		3,387		32,414
NBT Bancorp, Inc.		811		17,509
Northrim BanCorp, Inc.		400		8,596
Old National Bancorp		2,586		31,058
OmniAmerican Bancorp, Inc.*		291		6,236
Oriental Financial Group, Inc.		1,010		11,191
Pacific Capital Bancorp*		100		4,573
Pacific Continental Corp.		262		2,324
PacWest Bancorp		723		17,113
Park National Corp.		324		22,599
Park Sterling Corp.*		800		3,768
Peapack-Gladstone Financial Corp.		500		7,755
Penns Woods Bancorp, Inc.		68		2,707
Peoples Bancorp, Inc.		272		5,979
Pinnacle Financial Partners, Inc.*		763		14,886
Preferred Bank Los Angeles CA*		700		9,352
PrivateBancorp, Inc.		1,898		28,014
Prosperity Bancshares, Inc.		1,226		51,529
Renasant Corp.		537		8,436
Republic Bancorp, Inc., Class A		387		8,611
S&T Bancorp, Inc.		659		12,172
S.Y. Bancorp, Inc.		445		10,658
Sandy Spring Bancorp, Inc.		785		14,130
SCBT Financial Corp.		596		21,009
Seacoast Banking Corp. of Florida*		2,200		3,322
Sierra Bancorp		212		2,099
Simmons First National Corp., Class A		400		9,300
Southside Bancshares, Inc.		351		7,890
Southwest Bancorp, Inc.*		436		4,103
State Bank Financial Corp.*		800		12,128
StellarOne Corp.		616		7,688
Sterling Bancorp		686		6,846
Sterling Financial Corp.*		700		13,223
Suffolk Bancorp*		143		1,855
Sun Bancorp, Inc.*		1,100		2,970

101

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
Susquehanna Bancshares, Inc.		5,633	$	58,020
Taylor Capital Group, Inc.*		233		3,819
Texas Capital Bancshares, Inc.*		973		39,299
The First of Long Island Corp.		195		5,649
Tompkins Financial Corp.		358		13,489
TowneBank		472		6,608
Trico Bancshares		304		4,682
TrustCo Bank Corp.		3,252		17,756
Trustmark Corp.		1,730		42,350
UMB Financial Corp.		881		45,134
Umpqua Holdings Corp.		3,162		41,612
Union First Market Bankshares Corp.		742		10,722
United Bankshares, Inc.		1,294		33,489
United Community Banks, Inc.*		978		8,381
Univest Corp. of Pennsylvania		300		4,959
Virginia Commerce Bancorp*		400		3,372
Walker & Dunlap*		400		5,140
Washington Banking Co.		475		6,603
Washington Trust Bancorp, Inc.		270		6,583
Webster Financial Corp.		1,928		41,760
WesBanco, Inc.		615		13,075
West Bancorporation, Inc.		268		2,549
West Coast Bancorp*		659		12,949
Westamerica Bancorporation		773		36,478
Western Alliance Bancorp*		1,575		14,742
Wilshire Bancorp, Inc.*		1,576		8,636
Wintrust Financial Corp.		1,042		36,991

				2,049,558

Beverages — 0.2%
Boston Beer Co., Inc., Class A*		210		25,410
Central European Distribution Corp.*		1,700		4,862
Coca-Cola Bottling Co. Consolidated		174		11,185
Farmers Brothers Co.*		204		1,624
National Beverage Corp.*		242		3,615
Peet’s Coffee & Tea, Inc.*		359		21,554

				68,250

Biotechnology — 2.4%
Acorda Therapeutics, Inc.*		1,231		29,002
Affymax, Inc.*		810		10,433
Alkermes plc		3,692		62,653
Alnylam Pharmaceuticals, Inc.*		1,339		15,626
AMAG Pharmaceuticals, Inc.*		556		8,562
Arena Pharmaceuticals, Inc.*		6,006		59,940
Arqule, Inc.*		1,796		10,650
Astex Pharmaceuticals, Inc.*		651		1,361
BioCryst Pharmaceuticals, Inc.*		597		2,376
Biotime, Inc.*		400		1,840
Cambrex Corp.*		667		6,276
Celldex Therapeutics, Inc.*		2,744		14,241
Cubist Pharmaceuticals, Inc.*		1,844		69,906
Curis, Inc.*		1,673		9,034
Dendreon Corp.*		4,900		36,260
Dynavax Technologies Corp.*		3,900		16,848
Emergent BioSolutions, Inc.*		758		11,484


	Number of Shares		Value†

Biotechnology — (continued)
Enzon Pharmaceuticals, Inc.*		905	$	6,217
Exact Sciences Corp.*		2,000		21,440
Exelixis, Inc.*		4,069		22,502
Geron Corp.*		2,750		4,730
GTx, Inc.*		1,000		3,530
Halozyme Therapeutics, Inc.*		2,389		21,167
Harvard Bioscience, Inc.*		700		2,639
Immunogen, Inc.*		2,063		34,617
Immunomedics, Inc.*		1,436		5,127
InterMune, Inc.*		2,243		26,804
Lexicon Pharmaceuticals, Inc.*		3,626		8,158
Ligand Pharmaceuticals, Inc.*		444		7,521
Maxygen, Inc.*		600		3,576
Momenta Pharmaceuticals, Inc.*		1,182		15,981
Newlink Genetics Corp.*		600		8,988
Novavax, Inc.*		1,329		2,073
NPS Pharmaceuticals, Inc.*		1,957		16,850
Omeros Corp.*		1,000		10,000
OncoGenex Pharmaceutical, Inc.*		300		4,032
Oncothyreon, Inc.*		1,000		4,680
Pacific Biosciences of California, Inc.*		800		1,736
PDL BioPharma, Inc.		3,717		24,644
RTI Biologics, Inc.*		2,035		7,652
Sangamo Biosciences, Inc.*		1,003		5,537
Seattle Genetics, Inc.*		2,506		63,627
Sequenom, Inc.*		2,897		11,762
The Medicines Co.*		1,492		34,226
Vical, Inc.*		2,121		7,636
Xoma Corp.*		3,600		10,800
ZIOPHARM Oncology, Inc.*		1,500		8,925

				773,669

Building & Real Estate — 0.0%
AV Homes, Inc.*		195		2,843

Building Materials — 1.1%
AAON, Inc.		438		8,256
Apogee Enterprises, Inc.		1,043		16,761
Builders FirstSource, Inc.*		1,273		6,034
Comfort Systems USA, Inc.		1,227		12,295
Drew Industries, Inc.*		491		13,674
Eagle Materials, Inc.		1,289		48,131
Gibraltar Industries, Inc.*		801		8,315
Interline Brands, Inc.*		1,050		26,324
Louisiana-Pacific Corp.*		4,294		46,719
LSI Industries, Inc.		314		2,236
NCI Building Systems, Inc.*		464		5,025
Nortek, Inc.*		300		15,012
Quanex Building Products Corp.		1,225		21,903
Simpson Manufacturing Co., Inc.		1,085		32,018
Texas Industries, Inc.*		633		24,693
Trex Co., Inc.*		331		9,960
Universal Forest Products, Inc.		483		18,827
USG Corp.*		2,200		41,910

				358,093

102

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Chemicals — 1.6%
A. Schulman, Inc.		788	$	15,642
Aceto Corp.		642		5,797
American Vanguard Corp.		878		23,346
Balchem Corp.		705		22,990
Chemtura Corp.*		2,644		38,338
Codexis, Inc.*		612		2,289
Ferro Corp.*		2,638		12,662
Georgia Gulf Corp.		1,000		25,670
H.B. Fuller Co.		1,280		39,296
Hawkins, Inc.		249		9,507
Innophos Holdings, Inc.		596		33,650
Innospec, Inc.*		600		17,766
KMG Chemicals, Inc.		200		3,856
Kraton Performance Polymers, Inc.*		1,041		22,808
Landec Corp.*		518		4,434
Minerals Technologies, Inc.		464		29,594
Olin Corp.		2,092		43,702
OM Group, Inc.*		754		14,326
Omnova Solutions, Inc.*		1,168		8,807
PolyOne Corp.		2,556		34,966
Quaker Chemical Corp.		311		14,371
Sensient Technologies Corp.		1,474		54,140
Spartech Corp.*		446		2,306
Stepan Co.		254		23,922
TPC Group, Inc.*		300		11,085
Zep, Inc.		592		8,128
Zoltek Cos., Inc.*		595		5,373

				528,771

Coal — 0.3%
Arch Coal, Inc.		6,700		46,163
Cloud Peak Energy, Inc.*		1,700		28,747
Patriot Coal Corp.*		2,594		3,165
SunCoke Energy, Inc.*		1,841		26,970
Westmoreland Coal Co.*		300		2,415

				107,460

Commercial Services — 6.6%
ABM Industries, Inc.		1,339		26,191
Acacia Research - Acacia Technologies*		1,480		55,115
Accretive Health, Inc.*		2,012		22,052
American Public Education, Inc.*		455		14,560
American Reprographics Co.*		736		3,702
AMN Healthcare Services, Inc.*		709		4,204
Arbitron, Inc.		771		26,985
Ascent Capital Group Inc., Class A*		331		17,129
Aveo Pharmaceuticals, Inc.*		800		9,728
Avis Budget Group, Inc.*		3,066		46,603
Barrett Business Services, Inc.		142		3,002
Bridgepoint Education, Inc.*		533		11,619
Capella Education Co.*		407		14,147
Cardtronics, Inc.*		1,163		35,134
Career Education Corp.*		2,300		15,387
CBIZ, Inc.*		1,340		7,960
CDI Corp.		241		3,952
Cenveo, Inc.*		1,299		2,507


	Number of Shares		Value†

Chemicals Services — (continued)
Chemed Corp.		529	$	31,973
Consolidated Graphics, Inc.*		242		7,030
Convergys Corp.		3,583		52,921
Corinthian Colleges, Inc.*		1,570		4,537
Corvel Corp.*		181		8,869
CoStar Group, Inc.*		762		61,874
CRA International, Inc.*		274		4,025
Cross Country Healthcare, Inc.*		584		2,552
Deluxe Corp.		1,307		32,597
Dfc Global Corp.*		1,180		21,747
Dollar Thrifty Automotive Group, Inc.*		803		65,011
Education Management Corp.*		1,500		10,425
Electro Rent Corp.		415		6,735
Euronet Worldwide, Inc.*		1,255		21,486
Examworks Group, Inc.*		600		7,938
ExlService Holdings, Inc.*		900		22,176
Firsthand Technology Value Fund, Inc.*		500		8,830
Forrester Research, Inc.		375		12,698
Franklin Covey Co.*		241		2,468
FTI Consulting, Inc.*		1,256		36,110
Global Cash Access Holdings, Inc.*		2,396		17,275
Grand Canyon Education, Inc.*		1,356		28,395
Great Lakes Dredge & Dock Corp.		1,351		9,619
Green Dot Corp.*		900		19,908
H&E Equipment Services, Inc.*		959		14,414
Healthcare Services Group		1,680		32,558
Heartland Payment Systems, Inc.		969		29,148
Heidrick & Struggles International, Inc.		369		6,458
Hill International, Inc.*		589		1,885
Hillenbrand, Inc.		1,674		30,768
HMS Holdings Corp.*		2,515		83,775
Hudson Global, Inc.*		600		2,502
Huron Consulting Group, Inc.*		528		16,711
ICF International, Inc.*		448		10,680
Insperity, Inc.		524		14,174
Intersections, Inc.		300		4,755
K12, Inc.*		752		17,522
Kelly Services, Inc., Class A		614		7,927
Kenexa Corp.*		734		21,308
Kforce, Inc.*		686		9,234
Korn/Ferry International*		1,090		15,642
Landauer, Inc.		280		16,052
Lincoln Educational Services Corp.		565		3,673
Live Nation Entertainment, Inc.*		3,771		34,618
Mac-Gray Corp.		199		2,804
Maximus, Inc.		1,044		54,027
McGrath Rentcorp		753		19,954
Medifast, Inc.*		231		4,546
Moneygram International Inc*		878		12,819
Monro Muffler Brake, Inc.		937		31,146
Monster Worldwide, Inc.*		3,900		33,150
Multi-Color Corp.		367		8,162
National American University Holdings, Inc.		400		1,720
National Research Corp.		29		1,518
Navigant Consulting, Inc.*		1,584		20,022

103

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Chemicals Services — (continued)
Odyssey Marine Exploration, Inc.*		1,800	$	6,732
On Assignment, Inc.*		1,452		23,174
Parexel International Corp.*		1,799		50,786
Pendrell Corp.*		3,700		4,144
PHH Corp.*		1,389		24,280
PRGX Global*		600		4,770
Quad Graphics, Inc.		600		8,628
Rent-A-Center, Inc.		1,653		55,772
Resources Connection, Inc.		1,022		12,571
RPX Corp.*		900		12,915
ServiceSource International, Inc.*		1,700		23,545
Sotheby’s		2,041		68,088
Standard Parking Corp.*		393		8,457
Steiner Leisure Ltd.		443		20,560
Stewart Enterprises, Inc., Class A		2,008		14,337
Strayer Education, Inc.		400		43,608
Swisher Hygiene, Inc.*		2,100		5,313
Team Health Holdings, Inc.*		672		16,188
Team, Inc.*		492		15,341
TeleTech Holdings, Inc.*		707		11,312
The Advisory Board Co.*		950		47,110
The Corporate Executive Board Co.		969		39,613
The GEO Group, Inc.*		1,973		44,827
The Hackett Group, Inc.*		516		2,874
The Providence Service Corp.*		200		2,742
TMS International Corp.*		300		2,991
TNS, Inc.*		642		11,517
TrueBlue, Inc.*		1,176		18,204
Universal Technical Institute, Inc.		525		7,093
Valassis Communications, Inc.*		1,366		29,710
Viad Corp.		471		9,420
VistaPrint N.V.		1,200		38,760
Wright Express Corp.*		1,057		65,238
Zillow, Inc.*		188		7,262
Zipcar, Inc.*		1,200		14,076

				2,152,806

Computers — 1.9%
3D Systems Corp.*		1,256		42,880
Acorn Energy, Inc.		1,000		8,320
Agilysys, Inc.*		376		3,260
CACI International, Inc., Class A*		750		41,265
Ciber, Inc.*		1,557		6,711
Computer Task Group, Inc.*		279		4,182
Cray, Inc.*		699		8,444
Datalink Corp.*		900		8,595
Digimarc Corp.		100		2,566
Easylink Services International Corp.*		1,500		10,860
Echelon Corp.*		705		2,453
Electronics for Imaging, Inc.*		1,324		21,515
iGate Corp.*		757		12,884
Imation Corp.*		584		3,451
Immersion Corp.*		842		4,740
Insight Enterprises, Inc.*		1,243		20,920
J2 Global Inc		1,174		31,017


	Number of Shares		Value†

Computers — (continued)
Keyw Holding Corp. (The)*		300	$	3,012
LivePerson, Inc.*		1,925		36,691
Manhattan Associates, Inc.*		517		23,632
Maxwell Technologies, Inc.*		666		4,369
Mentor Graphics Corp.*		2,876		43,140
Mercury Computer Systems, Inc.*		736		9,516
MTS Systems Corp.		560		21,588
NetScout Systems, Inc.*		1,265		27,311
OCZ Technology Group, Inc.*		1,700		9,010
Quantum Corp.*		5,361		10,883
RadiSys Corp.*		540		3,391
RealD, Inc.*		1,608		24,056
Silicon Graphics International Corp.*		666		4,276
Spansion, Inc., Class A*		1,200		13,176
STEC, Inc.*		899		7,012
Stratasys, Inc.*		521		25,816
Super Micro Computer, Inc.*		871		13,814
SYKES Enterprises, Inc.*		936		14,939
Synaptics, Inc.*		916		26,225
Syntel, Inc.		380		23,066
Unisys Corp.*		1,224		23,929
Virtusa Corp.*		289		3,858
Vocera Communications,Inc.*		400		10,716

				617,489

Cosmetics & Personal Care — 0.1%
Elizabeth Arden, Inc.*		714		27,710
Inter Parfums, Inc.		324		5,596
Revlon, Inc., Class A*		270		3,842

				37,148

Distribution & Wholesale — 1.2%
Beacon Roofing Supply, Inc.*		1,281		32,307
Brightpoint, Inc.*		1,615		8,737
Chindex International, Inc.*		314		3,077
Core-Mark Holding Co., Inc.		241		11,602
Houston Wire & Cable Co.		369		4,033
Jazz Pharmaceuticals plc		1,209		54,417
MWI Veterinary Supply, Inc.*		326		33,503
Owens & Minor, Inc.		1,676		51,336
Pool Corp.		1,276		51,627
Rentrak Corp.*		165		3,407
ScanSource, Inc.*		781		23,930
Titan Machinery, Inc.*		523		15,884
United Stationers, Inc.		1,119		30,157
Watsco, Inc.		838		61,844

				385,861

Diversified — 0.0%
GSV Capital Corp.*		1,000		9,300

Diversified Financial Services — 2.1%
Aircastle Ltd.		1,376		16,581
Apollo Residential Mortgage, Inc.		932		17,969
Artio Global Investors, Inc.		696		2,436
BGC Partners, Inc., Class A		3,507		20,586

104

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Diversified Financial Services — (continued)
Calamos Asset Management, Inc., Class A		469	$	5,370
Cohen & Steers, Inc.		517		17,842
Cowen Group, Inc., Class A*		2,090		5,559
Credit Acceptance Corp.*		226		19,081
Diamond Hill Investment Group, Inc.*		50		3,915
Doral Financial Corp.*		3,277		4,916
Duff & Phelps Corp., Class A		670		9,715
Edelman Financial Group, Inc.		682		5,933
Ellie Mae, Inc.*		500		9,000
Encore Capital Group, Inc.*		797		23,607
Epoch Holding Corp.		580		13,212
Evercore Partners, Inc., Class A		1,022		23,905
FBR Capital Markets Corp.*		1,108		3,069
Federal Agricultural Mortgage Corp., Class C		200		5,246
Financial Engines, Inc.*		1,200		25,740
FXCM, Inc.		600		7,056
GAMCO Investors, Inc., Class A		162		7,191
GFI Group, Inc.		1,724		6,138
Greenhill & Co., Inc.		900		32,085
Higher One Holdings, Inc.*		700		8,554
INTL FCstone, Inc.*		293		5,670
Investment Technology Group, Inc.*		1,000		9,200
JMP Group, Inc.		263		1,625
KBW, Inc.		921		15,151
Knight Capital Group, Inc., Class A*		2,825		33,731
Ladenburg Thalmann Financial Services, Inc.*		1,800		2,772
Manning & Napier, Inc.		300		4,269
MarketAxess Holdings, Inc.		1,199		31,941
Marlin Business Services Corp.		200		3,278
National Financial Partners Corp.*		1,015		13,601
Nationstar Mortgage Holdings, Inc.*		800		17,216
Nelnet, Inc., Class A		799		18,377
Netspend Holdings, Inc.*		700		6,433
NewStar Financial, Inc.*		500		6,480
Nicholas Financial, Inc.		300		3,846
Ocwen Financial Corp.*		3,260		61,223
Oppenheimer Holdings, Inc., Class A		238		3,741
Piper Jaffray Cos.*		387		9,067
Portfolio Recovery Associates, Inc.*		516		47,090
Pzena Investment Management, Inc., Class A		130		576
Seacube Container Leasing Ltd.		300		5,121
Solar Senior Capital Ltd.		100		1,690
Stifel Financial Corp.*		1,409		43,538
SWS Group, Inc.*		768		4,093
Teton Advisors, Inc., Class B~		2		26
The First Marblehead Corp.*		714		835
Virtus Investment Partners, Inc.*		172		13,932
Westwood Holdings Group, Inc.		111		4,136
WisdomTree Investments, Inc.*		2,300		15,111
World Acceptance Corp.*		262		17,240

				695,715


	Number of Shares		Value†

Electric — 2.2%
Allete, Inc.		1,151	$	48,112
Ameresco, Inc., Class A*		300		3,579
Atlantic Power Corp.*		2,927		37,495
Avista Corp.		1,539		41,091
Black Hills Corp.		1,348		43,365
CH Energy Group, Inc.		462		30,349
Cleco Corp.		1,671		69,898
El Paso Electric Co.		1,177		39,029
EnerNOC, Inc.*		700		5,068
Genie Energy Ltd		300		2,331
GenOn Energy Inc.*		25,000		42,750
IDACORP, Inc.		1,301		54,746
MGE Energy, Inc.		628		29,704
NorthWestern Corp.		980		35,966
Ormat Technologies, Inc.		400		8,556
Otter Tail Corp.		892		20,400
Pike Electric Corp.*		358		2,764
PNM Resources, Inc.		2,010		39,276
Portland General Electric Co.		1,956		52,147
The Empire District Electric Co.		1,219		25,721
UIL Holdings Corp.		1,491		53,467
Unitil Corp.		363		9,620
Uns Energy Corp.		1,027		39,447

				734,881

Electrical Components & Equipment — 1.0%
A123 Systems, Inc.*		1,700		2,142
Acuity Brands, Inc.		1,132		57,630
Advanced Energy Industries, Inc.*		1,393		18,694
American Superconductor Corp.*		1,090		5,123
Belden, Inc.		1,255		41,854
Capstone Turbine Corp.*		9,700		9,797
Coleman Cable, Inc.		300		2,607
Encore Wire Corp.		571		15,291
EnerSys*		1,223		42,891
Generac Holdings, Inc.*		649		15,615
Graham Corp.		266		4,953
InSteel Industries, Inc.		391		4,360
Littelfuse, Inc.		578		32,882
Powell Industries, Inc.*		229		8,555
Power-One, Inc.*		1,424		6,437
Sunpower Corp.*		2,100		10,101
Universal Display Corp.*		1,149		41,295
Vicor Corp.		422		2,929

				323,156

Electronics — 2.1%
American Science & Engineering, Inc.		278		15,693
Analogic Corp.		307		19,034
Badger Meter, Inc.		459		17,235
Bel Fuse, Inc., Class B		269		4,737
Benchmark Electronics, Inc.*		1,677		23,394
Brady Corp., Class A		1,257		34,580
Checkpoint Systems, Inc.*		945		8,231
Coherent, Inc.*		673		29,141

105

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Electronics — (continued)
CTS Corp.		863	$	8,129
Cymer, Inc.*		957		56,415
Daktronics, Inc.		709		4,899
Electro Scientific Industries, Inc.		693		8,191
FARO Technologies, Inc.*		420		17,674
FEI Co.		1,046		50,041
Fluidigm Corp.*		900		13,536
II-VI, Inc.*		1,556		25,938
InvenSense, Inc.*		1,400		15,820
Kemet Corp.*		1,100		6,611
Lecroy Corp.*		400		5,704
Measurement Specialties, Inc.*		370		12,029
Methode Electronics, Inc.		860		7,319
Multi-Fineline Electronix, Inc.*		152		3,745
Newport Corp.*		863		10,373
NVE Corp.*		109		5,859
OSI Systems, Inc.*		557		35,280
Park Electrochemical Corp.		633		16,382
Plexus Corp.*		903		25,465
Rofin-Sinar Technologies, Inc.*		686		12,986
Rogers Corp.*		460		18,221
Sanmina-SCI Corp.*		2,326		19,050
SRS Labs, Inc.*		221		1,989
Stoneridge, Inc.*		673		4,583
Taser International, Inc.*		1,711		8,966
TTM Technologies, Inc.*		1,259		11,847
Viasystems Group, Inc.*		100		1,700
Vishay Precision Group, Inc.*		300		4,185
Watts Water Technologies, Inc., Class A		917		30,573
Woodward, Inc.		2,023		79,787
Zagg, Inc.*		500		5,455
Zygo Corp.*		382		6,823

				687,620

Energy-Alternate Sources — 0.3%
Amyris, Inc.*		400		1,772
Clean Energy Fuels Corp.*		2,200		34,100
First Solar, Inc.*		2,000		30,120
FuelCell Energy, Inc.*		2,681		2,708
Futurefuel Corp.		500		5,255
Gevo, Inc.*		200		994
Green Plains Renewable Energy, Inc.*		467		2,914
Headwaters, Inc.*		1,480		7,622
Kior, Inc - Class A*		380		3,401
Rex Stores Corp.*		192		3,748
Solazyme, Inc.*		1,300		18,070

				110,704

Engineering & Construction — 0.6%
Argan, Inc.*		136		1,901
Dycom Industries, Inc.*		853		15,874
EMCOR Group, Inc.		1,763		49,047
Exponent, Inc.*		320		16,906
Granite Construction, Inc.		944		24,648
Layne Christensen Co.*		426		8,814


	Number of Shares		Value†

Engineering & Construction — (continued)
MasTec, Inc.*		1,964	$	29,539
Michael Baker Corp.*		191		4,983
Mistras Group, Inc.*		300		7,884
MYR Group, Inc.*		583		9,946
Orion Marine Group, Inc.*		437		3,041
Sterling Construction Co., Inc.*		353		3,608
Tutor Perini Corp.		997		12,632
VSE Corp.		104		2,474

				191,297

Entertainment — 1.0%
Carmike Cinemas, Inc.*		800		11,720
Churchill Downs, Inc.		320		18,813
International Speedway Corp.		700		18,326
Isle of Capri Casinos, Inc.*		241		1,487
Lions Gate Entertainment Corp.*		2,700		39,798
Marriott Vacations Worldwide Corp.*		900		27,882
Multimedia Games, Inc.*		1,070		14,980
National CineMedia, Inc.		1,474		22,361
Pinnacle Entertainment, Inc.*		1,782		17,143
Scientific Games Corp., Class A*		1,500		12,825
Shuffle Master, Inc.*		1,285		17,733
Six Flags Entertainment Corp.		1,057		57,268
Speedway Motorsports, Inc.		316		5,343
Vail Resorts, Inc.		946		47,376

				313,055

Environmental Control — 0.7%
Ada-Es, Inc.*		400		10,148
Calgon Carbon Corp.*		1,462		20,790
Casella Waste Systems, Inc., Class A*		600		3,510
Darling International, Inc.*		3,067		50,575
Energy Recovery, Inc.*		1,918		4,603
EnergySolutions, Inc.*		2,066		3,492
Heckmann Corp.*		4,413		14,916
Heritage-Crystal Clean, Inc.*		200		3,270
Met-Pro Corp.		452		4,163
Metalico, Inc.*		781		1,718
Mine Safety Appliances Co.		721		29,013
Rentech, Inc.*		7,187		14,805
Tetra Tech, Inc.*		1,664		43,397
TRC Cos., Inc.*		500		3,040
U.S. Ecology, Inc.		442		7,841

				215,281

Food — 2.0%
Annie’s, Inc.*		300		12,558
Arden Group, Inc., Class A		11		959
B&G Foods, Inc., Class A		1,372		36,495
Cal-Maine Foods, Inc.		323		12,629
Calavo Growers, Inc.		251		6,421
Chefs Warehouse Holdings, Inc.*		450		8,123
Chiquita Brands International, Inc.*		1,024		5,120
Diamond Foods, Inc.*		576		10,276
Dole Food Co., Inc.*		860		7,551
Fresh Del Monte Produce, Inc.		916		21,499

106

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Food — (continued)
Harris Teeter Supermarkets, Inc.		1,237	$	50,705
Ingles Markets, Inc., Class A		304		4,873
J&J Snack Foods Corp.		532		31,441
Lancaster Colony Corp.		472		33,611
Lifeway Foods, Inc.		87		902
Nash Finch Co.		240		5,155
Pilgrim’s Pride Corp.*		1,787		12,777
Post Holdings, Inc.*		900		27,675
Sanderson Farms, Inc.		734		33,632
Seaboard Corp.*		9		19,197
Seneca Foods Corp., Class A*		211		5,676
Smart Balance, Inc.*		1,879		17,644
Snyders-Lance, Inc.		1,279		32,269
Spartan Stores, Inc.		602		10,914
SUPERVALU, Inc.		6,900		35,742
The Hain Celestial Group, Inc.*		962		52,948
Tootsie Roll Industries, Inc.		560		13,362
TreeHouse Foods, Inc.*		1,114		69,391
United Natural Foods, Inc.*		1,400		76,804
Village Super Market, Inc., Class A		168		5,473
Weis Markets, Inc.		266		11,842

				673,664

Forest Products & Paper — 0.6%
Boise, Inc.*		2,425		15,957
Buckeye Technologies, Inc.		1,080		30,769
Clearwater Paper Corp.*		678		23,134
Deltic Timber Corp.		292		17,806
KapStone Paper and Packaging Corp.*		920		14,582
Neenah Paper, Inc.		574		15,320
P.H. Glatfelter Co.		1,059		17,336
Resolute Forest Products*		2,600		30,108
Schweitzer-Mauduit International, Inc.		438		29,845
Wausau Paper Corp.		1,581		15,383

				210,240

Gas — 1.2%
BBcn Bancorp Inc*		1,885		20,528
Chesapeake Utilities Corp.		257		11,236
Delta Natural Gas CO., Inc.		400		8,692
New Jersey Resources Corp.		1,232		53,728
Northwest Natural Gas Co.		850		40,460
Piedmont Natural Gas Co., Inc.		2,151		69,241
South Jersey Industries, Inc.		840		42,815
Southwest Gas Corp.		1,194		52,118
The Laclede Group, Inc.		556		22,134
WGL Holdings, Inc.		1,494		59,386

				380,338

Hand & Machine Tools — 0.1%
Franklin Electric Co., Inc.		585		29,911

Healthcare Products — 3.5%
Abaxis, Inc.*		629		23,273
Abiomed, Inc.*		789		18,005
Accuray, Inc.*		1,538		10,520
Affymetrix, Inc.*		2,371		11,120


	Number of Shares		Value†

Healthcare Products — (continued)
Align Technology, Inc.*		2,165	$	72,441
Alphatec Holdings, Inc.*		816		1,501
AngioDynamics, Inc.*		558		6,702
ArthroCare Corp.*		755		22,106
Atricure, Inc.*		400		3,844
Atrion Corp.		37		7,584
Cantel Medical Corp.		450		12,262
Cardiovascular Systems, Inc.*		400		3,916
Cepheid, Inc.*		1,980		88,605
Cerus Corp.*		800		2,656
Conceptus, Inc.*		792		15,697
CONMED Corp.		803		22,219
CryoLife, Inc.*		599		3,133
Cyberonics, Inc.*		732		32,896
Cynosure, Inc., Class A*		195		4,124
DexCom, Inc.*		2,242		29,056
Endologix, Inc.*		1,298		20,041
Exactech, Inc.*		209		3,505
Genomic Health, Inc.*		509		17,001
Greatbatch, Inc.*		693		15,738
Haemonetics Corp.*		673		49,876
Hanger Orthopedic Group, Inc.*		808		20,717
Hansen Medical, Inc.*		1,388		3,151
HeartWare International, Inc.*		389		34,543
ICU Medical, Inc.*		279		14,893
Insulet Corp.*		1,146		24,490
Integra LifeSciences Holdings Corp.*		526		19,557
Invacare Corp.		690		10,647
IRIS International, Inc.*		550		6,215
Luminex Corp.*		1,353		33,135
MAKO Surgical Corp.*		905		23,177
Masimo Corp.*		1,404		31,422
Medtox Scientific, Inc.*		200		5,392
Merge Healthcare, Inc.*		1,657		4,739
Meridian Bioscience, Inc.		1,160		23,734
Merit Medical Systems, Inc.*		1,075		14,846
Natus Medical, Inc.*		575		6,681
NuVasive, Inc.*		1,406		35,656
NxStage Medical, Inc.*		1,684		28,224
OraSure Technologies, Inc.*		1,201		13,499
Orthofix International NV*		471		19,429
Palomar Medical Technologies, Inc.*		361		3,068
Photomedex, Inc.*		700		8,505
PSS World Medical, Inc.*		1,485		31,170
Quidel Corp.*		651		10,208
Rockwell Medical Technologies, Inc.*		400		3,724
Solta Medical, Inc.*		1,200		3,516
Spectranetics Corp.*		765		8,736
STAAR Surgical Co.*		700		5,439
STERIS Corp.		1,532		48,059
SurModics, Inc.*		273		4,723
Symmetry Medical, Inc.*		944		8,100
The Female Health Co.		304		1,784
Tornier BV		300		6,726
Unilife Corp.*		1,910		6,456

107

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Healthcare Products — (continued)
Vascular Solutions, Inc.*		283	$	3,554
Volcano Corp.*		1,364		39,079
West Pharmaceutical Services, Inc.		889		44,886
Wright Medical Group, Inc.*		1,061		22,652
Young Innovations, Inc.		97		3,346

				1,135,699

Healthcare Services — 1.6%
Acadia Healthcare CO Inc*		900		15,786
Air Methods Corp.*		329		32,324
Almost Family, Inc.*		177		3,954
Amedisys, Inc.*		806		10,035
Amsurg Corp.*		1,023		30,670
Assisted Living Concepts, Inc., Class A		404		5,745
Bio-Reference Labs, Inc.*		707		18,580
Capital Senior Living Corp.*		436		4,622
Centene Corp.*		1,468		44,275
Emeritus Corp.*		683		11,495
Five Star Quality Care, Inc.*		800		2,456
Gentiva Health Services, Inc.*		623		4,317
HealthSouth Corp.*		2,536		58,987
Healthways, Inc.*		658		5,251
IPC The Hospitalist Co., Inc.*		447		20,258
Kindred Healthcare, Inc.*		1,586		15,590
LHC Group, Inc.*		382		6,479
Magellan Health Services, Inc.*		741		33,590
Metropolitan Health Networks, Inc.*		1,679		16,068
Molina Healthcare, Inc.*		868		20,363
National Healthcare Corp.		406		18,363
Select Medical Holdings Corp.*		1,300		13,143
Skilled Healthcare Group, Inc., Class A*		561		3,523
Sun Healthcare Group, Inc.*		518		4,336
Sunrise Senior Living, Inc.*		1,334		9,725
The Ensign Group, Inc.		540		15,266
Triple-S Management Corp., Class B*		691		12,631
U.S. Physical Therapy, Inc.		591		15,029
Vanguard Health Systems, Inc.*		987		8,774
WellCare Health Plans, Inc.*		1,126		59,678

				521,313

Holding Companies — 0.1%
Harbinger Group, Inc.*		1,775		13,827
Primoris Services Corp.		890		10,680

				24,507

Home Builders — 0.5%
Beazer Homes USA, Inc.*		1,421		4,618
Cavco Industries, Inc.*		169		8,666
Hovnanian Enterprises, Inc., Class A*		1,610		4,669
KB Home		2,400		23,520
M.D.C. Holdings, Inc.		1,300		42,471
M/I Homes, Inc.*		336		5,820
Meritage Homes Corp.*		690		23,419
Standard Pacific Corp.*		3,690		22,841
The Ryland Group, Inc.		1,346		34,431


	Number of Shares		Value†

Home Builders — (continued)
Winnebago Industries, Inc.*		722	$	7,357

				177,812

Home Furnishings — 0.4%
American Woodmark Corp.*		169		2,890
DTS, Inc.*		374		9,754
Ethan Allen Interiors, Inc.		628		12,516
Kimball International, Inc., Class B		744		5,729
La-Z-Boy, Inc.*		1,262		15,510
Sealy Corp.*		445		823
Select Comfort Corp.*		1,572		32,886
TiVo, Inc.*		4,055		33,535
Universal Electronics, Inc.*		300		3,951
Voxx International Corp*		825		7,689

				125,283

Hotels & Resorts — 0.1%
Caesars Entertainment Corp.*		1,300		14,820
Chatham Lodging Trust		200		2,856

				17,676

Household Products & Wares — 0.6%
ACCO Brands Corp.*		3,393		35,084
American Greetings Corp., Class A		1,043		15,249
At Cross Co. Class A*		300		2,961
Blyth, Inc.		282		9,746
Central Garden and Pet Co., Class A*		1,202		13,090
CSS Industries, Inc.		212		4,357
Ennis, Inc.		858		13,196
Helen of Troy Ltd.		895		30,331
Oil-Dri Corp. of America		97		2,124
Prestige Brands Holdings, Inc.*		1,372		21,691
Spectrum Brands Holdings, Inc.*		800		26,056
WD-40 Co.		446		22,215

				196,100

Housewares — 0.0%
Libbey, Inc.*		500		7,685
Lifetime Brands, Inc.		200		2,494

				10,179

Industrial — 0.1%
Aegion Corp*		1,155		20,663
Proto Labs Inc*		300		8,628
Rexnord Corp.*		1,000		20,040

				49,331

Insurance — 2.4%
Alterra Capital Holdings Ltd.		2,360		55,106
American Equity Investment Life Holding Co.		1,776		19,554
American Safety Insurance Holdings Ltd.		395		7,406
AMERISAFE, Inc.*		508		13,183
AmTrust Financial Services, Inc.		548		16,281
Argo Group International Holdings Ltd.		647		18,938
Baldwin & Lyons, Inc., Class B		125		2,905
Citizens, Inc.*		1,466		14,294

108

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — (continued)
CNO Financial Group, Inc.		5,893	$	45,965
Crawford & Co., Class B		338		1,382
Donegal Group, Inc., Class A		283		3,758
eHealth, Inc.*		520		8,377
EMC Insurance Group, Inc.		100		2,020
Employers Holdings, Inc.		882		15,911
Enstar Group Ltd.		274		27,110
FBL Financial Group, Inc., Class A		327		9,159
First American Financial Corp.		2,773		47,030
Flagstone Reinsurance Holdings SA		1,441		11,542
Global Indemnity Plc		383		7,756
Greenlight Capital Re Ltd., Class A		928		23,590
Hallmark Financial Services, Inc.*		255		1,989
Hilltop Holdings, Inc.*		792		8,166
Horace Mann Educators Corp.		1,509		26,377
Infinity Property & Casualty Corp.		320		18,454
Kansas City Life Insurance Co.		73		2,569
Maiden Holdings Ltd.		1,168		10,138
Meadowbrook Insurance Group, Inc.		1,518		13,343
MGIC Investment Corp.*		4,627		13,326
Montpelier Re Holdings Ltd.		1,707		36,342
National Interstate Corp.		102		2,712
National Western Life Insurance Co., Class A		52		7,380
Onebeacon Insurance Group Ltd.		600		7,812
Platinum Underwriters Holdings Ltd.		956		36,424
Presidential Life Corp.		410		4,030
Primerica, Inc.		1,500		40,095
Radian Group, Inc.		4,803		15,802
RLI Corp.		661		45,080
Safety Insurance Group, Inc.		382		15,525
SeaBright Insurance Holdings, Inc.		344		3,058
Selective Insurance Group		1,375		23,939
State Auto Financial Corp.		376		5,283
Stewart Information Services Corp.		608		9,333
Symetra Financial Corp.		2,500		31,550
The Navigators Group, Inc.*		295		14,765
The Phoenix Cos., Inc.*		2,923		5,408
Tower Group, Inc.		1,013		21,141
United Fire Group, Inc.		680		14,504
Universal American Corp.*		780		8,213
Universal Insurance Holdings, Inc.		251		856

				794,881

Internet — 2.9%
1-800-Flowers.com, Inc., Class A*		737		2,572
AboveNet, Inc.*		616		51,744
Ancestry.com, Inc.*		901		24,804
Angie’s List, Inc.*		1,300		20,592
Bankrate, Inc.*		1,523		28,008
Bazaarvoice, Inc.*		500		9,100
Blucora, Inc.*		896		11,039
Blue Nile, Inc.*		339		10,072
Boingo Wireless, Inc.*		900		10,458
BroadSoft, Inc.*		661		19,143
Cogent Communications Group, Inc.*		1,219		23,466


	Number of Shares		Value†

Internet — (continued)
comScore, Inc.*		959	$	15,785
Constant Contact, Inc.*		865		15,466
DealerTrack Holdings, Inc.*		1,296		39,022
Dice Holdings, Inc.*		1,163		10,921
Digital River, Inc.*		1,088		18,083
EarthLink, Inc.		3,116		23,183
ePlus, Inc.*		74		2,394
eResearchTechnology, Inc.*		950		7,590
ExactTarget, Inc.*		500		10,930
Global Sources Ltd.		372		2,455
HealthStream, Inc.*		400		10,400
ICG Group, Inc.*		1,228		11,359
Internap Network Services Corp.*		1,321		8,600
IntraLinks Holdings, Inc.*		800		3,504
Keynote Systems, Inc.		428		6,356
KIT Digital, Inc.*		1,229		5,272
Limelight Networks, Inc.*		1,172		3,434
Lionbridge Technologies, Inc.*		1,243		3,915
Liquidity Services, Inc.*		735		37,625
ModusLink Global Solutions, Inc.*		945		2,825
Move, Inc*		779		7,097
NIC, Inc.*		1,529		19,418
NutriSystem, Inc.		537		6,208
OpenTable, Inc.*		656		29,527
Orbitz Worldwide, Inc.*		476		1,737
Overstock.com, Inc.*		271		1,873
Perficient, Inc.*		745		8,366
QuinStreet, Inc.*		715		6,621
ReachLocal, Inc.*		200		2,200
Realnetworks, Inc.*		515		4,450
Responsys, Inc.*		1,400		16,968
Saba Software, Inc.*		752		6,979
Safeguard Scientifics, Inc.*		450		6,966
Sapient Corp.*		3,852		38,790
Shutterfly, Inc.*		1,190		36,521
Sourcefire, Inc.*		770		39,578
SPS Commerce, Inc.*		200		6,076
Stamps.com, Inc.*		362		8,930
support.com, Inc.*		1,139		3,633
TechTarget, Inc.*		500		2,520
The Active Network, Inc.*		1,400		21,546
Towerstream Corp.*		900		3,735
Travelzoo, Inc.*		111		2,522
U.S. Auto Parts Network, Inc.*		338		1,413
United Online, Inc.		2,790		11,774
Unwired Planet, Inc.*		1,814		4,172
ValueClick, Inc.*		2,090		34,255
VASCO Data Security International, Inc.*		728		5,955
VirnetX Holding Corp.*		1,283		45,226
Vitacost.com, Inc.*		1,300		7,670
Vocus, Inc.*		381		7,087
Web.com Group, Inc.*		1,200		21,984
Webmd Health Corp.*		1,600		32,816
Websense, Inc.*		999		18,711
XO Group, Inc.*		659		5,845

109

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Internet — (continued)
Yelp, Inc.*		500	$	11,365
Zix Corp.*		1,148		2,985

				943,636

Investment Companies — 1.1%
American Realty Capital Trust, Inc.		4,800		52,416
Apollo Investment Corp.		5,658		43,453
Arlington Asset Investment Corp., Class A		100		2,171
BlackRock Kelso Capital Corp.		1,936		18,895
Capital Southwest Corp.		59		6,068
Fifth Street Finance Corp.		2,293		22,884
Gladstone Capital Corp.		412		3,251
Gladstone Investment Corp.		879		6,496
Golub Capital BDC, Inc.		226		3,410
Harris & Harris Group, Inc.*		362		1,376
Hercules Technology Growth Capital, Inc.		1,281		14,527
Kohlberg Capital Corp.		552		4,007
Main Street Capital Corp.		791		19,142
MCG Capital Corp.		1,854		8,528
Medallion Financial Corp.		248		2,634
Medley Capital Group		438		5,273
MVC Capital, Inc.		481		6,229
New Mountain Finance Corp.		219		3,108
NGP Capital Resources Co.		314		2,223
PennantPark Investment Corp.		2,226		23,039
Prospect Capital Corp.		3,838		43,715
Solar Capital Ltd.		977		21,748
THL Credit, Inc.		200		2,694
TICC Capital Corp.		1,518		14,725
Triangle Capital Corp.		731		16,652

				348,664

Iron & Steel — 0.2%
AK Steel Holding Corp.		3,900		22,893
Metals USA Holdings Corp.*		200		3,182
Schnitzer Steel Industries, Inc., Class A		900		25,218
Universal Stainless & Alloy Products, Inc.*		133		5,466

				56,759

Leisure Time — 0.6%
Arctic Cat, Inc.*		444		16,233
Black Diamond, Inc.*		400		3,780
Brunswick Corp.		2,668		59,283
Callaway Golf Co.		2,146		12,683
Interval Leisure Group, Inc.		1,116		21,215
Life Time Fitness, Inc.*		1,159		53,905
Marine Products Corp.		160		973
Town Sports International Holdings, Inc.*		600		7,974
WMS Industries, Inc.*		1,800		35,910

				211,956

Lodging — 0.3%
Ameristar Casinos, Inc.		805		14,305
Boyd Gaming Corp.*		1,500		10,800
Gaylord Entertainment Co.*		823		31,735
Marcus Corp.		433		5,958


	Number of Shares		Value†

Lodging — (continued)
Monarch Casino & Resort, Inc.*		185	$	1,691
Morgans Hotel Group Co.*		394		1,852
Orient-Express Hotels Ltd., Class A*		3,345		27,998
Red Lion Hotels Corp.*		264		2,283

				96,622

Machinery — Construction & Mining — 0.1%
Astec Industries, Inc.*		598		18,347

Machinery — Diversified — 1.4%
Alamo Group, Inc.		117		3,670
Albany International Corp., Class A		632		11,825
Altra Holdings, Inc.		603		9,515
Applied Industrial Technologies, Inc.		1,082		39,872
Briggs & Stratton Corp.		1,336		23,367
Cascade Corp.		228		10,727
Chart Industries, Inc.*		777		53,426
Cognex Corp.		1,357		42,949
Columbus McKinnon Corp.*		485		7,319
DXP Enterprises, Inc.*		322		13,360
Flow International Corp.*		1,208		3,805
Global Power Equipment Group, Inc.		400		8,736
Hurco Cos., Inc.*		200		4,098
Intermec, Inc.*		1,435		8,897
Intevac, Inc.*		341		2,564
iRobot Corp.*		682		15,106
Kadant, Inc.*		299		7,012
Lindsay Corp.		353		22,910
Middleby Corp.*		495		49,307
NACCO Industries, Inc., Class A		122		14,182
Robbins & Myers, Inc.		1,179		49,306
Sauer-Danfoss, Inc.		319		11,143
Tennant Co.		536		21,413
The Gorman-Rupp Co.		401		11,950
Twin Disc, Inc.		235		4,345

				450,804

Media — 0.7%
Belo Corp., Class A		2,160		13,910
Central European Media Enterprises Ltd., Class A		900		4,572
Courier Corp.		247		3,273
Crown Media Holdings, Inc., Class A*		217		380
Cumulus Media, Inc., Class A*		700		2,107
Demand Media, Inc.*		1,300		14,560
Digital Generation Inc*		657		8,127
Dolan Media, Co.*		593		3,991
E.W. Scripps Co., Class A*		1,206		11,590
Entercom Communications Corp., Class A*		400		2,408
Entravision Communications Corp., Class A*		1,000		1,210
Fisher Communications, Inc.*		200		5,982
Journal Communications, Inc., Class A*		884		4,561
Knology, Inc.*		1,236		24,312
LIN TV Corp., Class A*		472		1,425
Martha Stewart Living Omnimedia, Inc., Class A*		562		1,911
Meredith Corp.		1,000		31,940

110

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Media — (continued)
Nexstar Broadcasting Group*		400	$	2,696
Outdoor Channel Holdings, Inc.*		626		4,576
Saga Communications, Inc.*		100		3,711
Scholastic Corp.		756		21,289
Sinclair Broadcast Group, Inc., Class A		1,117		10,120
The McClatchy Co., Class A*		1,100		2,420
The New York Times Co., Class A*		3,921		30,584
Value Line, Inc.		23		273
World Wrestling Entertainment, Inc., Class A		914		7,148

				219,076

Medical Instruments — 0.0%
Navidea Biopharmaceuticals, Inc.*		2,200		8,184

Metal Fabricate/Hardware — 0.7%
A.M. Castle & Co.*		435		4,620
Ampco-Pittsburgh Corp.		214		3,923
CIRCOR International, Inc.		435		14,829
Dynamic Materials Corp.		290		5,026
Furmanite Corp.*		954		4,636
Haynes International, Inc.		364		18,542
Kaydon Corp.		978		20,919
L.B. Foster Co., Class A		266		7,610
Mueller Industries, Inc.		794		33,816
Mueller Water Products, Inc., Class A		3,692		12,774
NN, Inc.*		400		4,084
Northwest Pipe Co.*		183		4,440
Olympic Steel, Inc.		231		3,793
Omega Flex, Inc.*		59		703
RBC Bearings, Inc.*		637		30,130
RTI International Metals, Inc.*		713		16,135
Sun Hydraulics Corp.		459		11,149
Worthington Industries, Inc.		1,584		32,425

				229,554

Mining — 0.9%
AMCOL International Corp.		598		16,929
Century Aluminum Co.*		1,254		9,192
Coeur d’Alene Mines Corp.*		2,528		44,391
Gaslog Ltd.		1,100		11,165
General Moly, Inc.*		1,499		4,707
Globe Specialty Metals, Inc.		1,714		23,019
Gold Reserve, Inc.*		2,500		8,725
Gold Resource Corp.		700		18,193
Golden Minerals Co.*		868		3,915
Golden Star Resources Ltd.*		6,200		7,192
Hecla Mining Co.		7,317		34,756
Horsehead Holding Corp.*		1,583		15,767
Kaiser Aluminum Corp.		616		31,933
Materion Corp.		457		10,525
Midway Gold Corp.*		2,200		3,058
Noranda Aluminium Holding Corp.		600		4,776
Paramount Gold and Silver Corp.*		2,900		6,960
Revett Minerals, Inc.*		800		2,632
Stillwater Mining Co.*		2,924		24,971
United States Lime & Minerals, Inc.*		29		1,353
Uranerz Energy Corp.*		1,700		2,465


	Number of Shares		Value†

Mining — (continued)
US Antimony Corp.*		2,500	$	10,100
US Silica Holdings, Inc.*		600		6,756
Vista Gold Corp.*		1,900		5,529

				309,009

Miscellaneous Manufacturing — 2.1%
A.O. Smith Corp.		1,161		56,761
Actuant Corp., Class A		1,806		49,051
American Railcar Industries, Inc.*		300		8,130
AZZ, Inc.		288		17,643
Barnes Group, Inc.		1,365		33,156
Blount International, Inc.*		1,395		20,437
Ceradyne, Inc.		618		15,852
Chase Corp.		200		2,640
CLARCOR, Inc.		1,498		72,144
EnPro Industries, Inc.*		617		23,057
ESCO Technologies, Inc.		834		30,391
Fabrinet		500		6,275
Federal Signal Corp.*		1,743		10,179
FreightCar America, Inc.		270		6,202
GP Strategies Corp.*		296		5,467
Griffon Corp.		1,156		9,918
Handy & Harman Ltd.*		200		2,696
Hexcel Corp.*		2,820		72,728
John Bean Technologies Corp.		629		8,536
Koppers Holdings, Inc.		620		21,080
LSB Industries, Inc.*		549		16,970
Lydall, Inc.*		300		4,056
Matthews International Corp., Class A		805		26,154
Movado Group, Inc.		360		9,007
Myers Industries, Inc.		725		12,441
NL Industries, Inc.		90		1,122
Park-Ohio Holdings Corp.*		200		3,806
PMFG, Inc.*		486		3,796
Raven Industries, Inc.		473		32,916
Smith & Wesson Holding Corp.*		1,279		10,628
Standex International Corp.		300		12,771
STR Holdings, Inc.*		725		3,306
Sturm Ruger & Co., Inc.		619		24,853
The Brink’s Co.		1,310		30,366
Tredegar Corp.		761		11,080
Trimas Corp.*		1,095		22,009

				697,624

Office Furnishings — 0.4%
Herman Miller, Inc.		1,432		26,521
HNI Corp.		1,243		32,007
Interface, Inc.		1,495		20,377
Knoll, Inc.		1,353		18,157
Steelcase, Inc., Class A		2,431		21,952

				119,014

Oil & Gas — 3.3%
Abraxas Petroleum Corp.*		2,000		6,380
Alon USA Energy, Inc.		152		1,286
Apco Oil and Gas International, Inc.		258		4,657

111

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas — (continued)
Approach Resources, Inc.*		941	$	24,033
Arabian American Development CO.*		1,000		9,690
ATP Oil & Gas Corp.*		1,193		4,032
Berry Petroleum Co., Class A		1,534		60,838
Bill Barrett Corp.*		1,225		26,239
Bonanza Creek Energy, Inc.*		500		8,315
BPZ Resources, Inc.*		2,283		5,776
C J Energy Services, Inc.*		1,430		26,455
Callon Petroleum Co.*		1,000		4,260
Carrizo Oil & Gas, Inc.*		1,065		25,038
Clayton Williams Energy, Inc.*		217		10,498
Comstock Resources, Inc.*		1,387		22,775
Contango Oil & Gas Co.*		303		17,938
CVR Energy, Inc.		600		15,948
Delek US Holdings, Inc.		498		8,760
Endeavour International Corp.*		1,352		11,357
Energy Partners Ltd.*		700		11,830
Energy XXI Bermuda Ltd.		2,362		73,907
Evolution Petroleum Corp.*		500		4,170
Forest Oil Corp.*		3,900		28,587
FX Energy, Inc.*		1,389		8,265
Gastar Exploration Ltd.*		1,500		2,895
Georesources, Inc.*		557		20,392
Goodrich Petroleum Corp.*		581		8,053
Gulfport Energy Corp.*		1,763		36,371
Halcon Resources Corp.*		2,400		22,656
Harvest Natural Resources, Inc.*		746		6,378
Hercules Offshore, Inc.*		3,605		12,762
Isramco, Inc.*		21		2,310
Kodiak Oil & Gas Corp.*		7,700		63,217
Magnum Hunter Resources Corp.*		5,200		21,736
Matador Resources Co.*		400		4,296
McMoran Exploration Co.*		2,654		33,626
Midstates Petroleum CO., Inc.*		1,100		10,681
Miller Energy Resources, Inc.*		400		2,000
Northern Oil & Gas, Inc.*		1,753		27,943
Oasis Petroleum, Inc.*		2,436		58,902
Panhandle Oil and Gas, Inc., Class A		117		3,526
Parker Drilling Co.*		2,917		13,156
PDC Energy, Inc.*		1,012		24,814
Penn Virginia Corp.		1,012		7,428
Petroquest Energy, Inc.*		1,539		7,695
Pioneer Drilling Co.*		1,550		12,353
Quicksilver Resources, Inc.*		4,600		24,932
Resolute Energy Corp.*		1,100		10,527
Rex Energy Corp.*		1,000		11,210
Rosetta Resources, Inc.*		1,537		56,316
Sanchez Energy Corp.*		500		10,400
Stone Energy Corp.*		1,279		32,410
Swift Energy Co.*		1,189		22,127
Triangle Petroleum Corp.*		1,100		6,138
Vaalco Energy, Inc.*		1,230		10,615
Vantage Drilling Co.		3,690		5,535
Venoco, Inc.*		686		6,867
Voyager Oil & Gas, Inc.*		1,400		2,464


	Number of Shares		Value†

Oil & Gas — (continued)
W&T Offshore, Inc.		1,043	$	15,958
Warren Resources, Inc.*		1,705		4,092
Western Refining, Inc.		1,637		36,456

				1,080,271

Oil & Gas Services — 1.5%
Basic Energy Services, Inc.*		588		6,068
Cal Dive International, Inc.*		2,189		6,348
Dawson Geophysical Co.*		215		5,121
Dril-Quip, Inc.*		1,160		76,084
Exterran Holdings, Inc.*		2,300		29,325
Flotek Industries, Inc.*		1,200		11,208
Forum Energy Technologies, Inc.*		800		15,752
Global Geophysical Services, Inc.*		500		3,060
Gulf Island Fabrication, Inc.		318		8,971
Helix Energy Solutions Group, Inc.*		2,901		47,606
Hornbeck Offshore Services, Inc.*		1,078		41,805
ION Geophysical Corp.*		3,765		24,811
Key Energy Services, Inc.*		4,724		35,902
Lufkin Industries, Inc.		872		47,367
Matrix Service Co.*		687		7,798
Mitcham Industries, Inc.*		300		5,091
Natural Gas Services Group, Inc.*		294		4,357
Newpark Resources, Inc.*		2,112		12,461
OYO Geospace Corp.*		188		16,918
Targa Resources Corp.		900		38,430
Tesco Corp.*		700		8,400
Tetra Technologies, Inc.*		2,279		16,249
TGC Industries, Inc.*		900		8,739
Thermon Group Holdings, Inc.*		300		6,213
Union Drilling, Inc.*		183		820
Willbros Group, Inc.*		1,017		6,570

				491,474

Packaging and Containers — 0.1%
AEP Industries, Inc.*		238		10,365
Graphic Packaging Holding Co.*		5,687		31,278

				41,643

Pharmaceuticals — 3.3%
Achillion Pharmaceuticals, Inc.*		1,700		10,540
Acura Pharmaceuticals, Inc.*		153		480
Aegrion Pharmaceuticals, Inc.*		900		13,356
Akorn, Inc.*		1,613		25,437
Allos Therapeutics, Inc.*		1,315		2,354
Amicus Therapeutics, Inc.*		500		2,750
Ampio Pharmaceuticals, Inc.*		600		3,048
Anacor Pharmaceuticals, Inc.*		500		3,245
Anika Therapeutics, Inc.*		700		9,513
Antares Pharma, Inc.*		1,400		5,096
Array Biopharma, Inc.*		2,248		7,801
Auxilium Pharmaceuticals, Inc.*		1,565		42,083
AVANIR Pharmaceuticals, Inc., Class A*		3,377		13,238
BioScrip, Inc.*		1,011		7,512
Biospecifics Technologies Corp.*		69		1,296
Cadence Pharmaceuticals, Inc.*		814		2,906

112

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — (continued)
Clovis Oncology, Inc.*		300	$	6,504
Corcept Therapeutics, Inc.*		700		3,143
Cornerstone Therapeutics, Inc.*		127		804
Cytori Therapeutics, Inc.*		810		2,187
Depomed, Inc.*		1,183		6,731
Dusa Pharmaceuticals, Inc.*		700		3,654
Dyax Corp.*		1,720		3,664
Endocyte, Inc.*		500		4,110
Furiex Pharmaceuticals, Inc.*		200		4,190
Hi-Tech Pharmacal Co, Inc.*		255		8,262
Idenix Pharmaceuticals, Inc.*		2,593		26,708
Impax Laboratories, Inc.*		1,737		35,209
Infinity Pharmaceuticals, Inc.*		328		4,448
Ironwood Pharmaceuticals, Inc.*		2,461		33,913
Isis Pharmaceuticals, Inc.*		2,810		33,720
Keryx Biopharmaceuticals, Inc.*		1,700		3,060
Lannett Co, Inc.*		197		835
MannKind Corp.*		1,904		4,360
MAP Pharmaceuticals, Inc.*		706		10,576
Medicis Pharmaceutical Corp., Class A		1,674		57,167
Nature’s Sunshine Products, Inc.		200		3,020
Nektar Therapeutics*		3,633		29,318
Neogen Corp.*		568		26,242
Neurocrine Biosciences, Inc.*		1,477		11,683
Nutraceutical International Corp.*		196		2,989
Obagi Medical Products, Inc.*		351		5,360
Omega Protein Corp.*		500		3,680
Opko Health, Inc.*		2,976		13,690
Optimer Pharmaceuticals, Inc.*		1,095		16,994
Orexigen Therapeutics, Inc.*		2,888		15,999
Osiris Therapeutics, Inc.*		373		4,092
Pacira Pharmaceuticals, Inc.*		800		12,832
Pain Therapeutics, Inc.*		779		3,653
Par Pharmaceutical Cos., Inc.*		982		35,489
Pharmacyclics, Inc.*		1,600		87,376
PharMerica Corp.*		820		8,954
Pozen, Inc.*		302		1,884
Progenics Pharmaceuticals, Inc.*		601		5,878
Questcor Pharmaceuticals, Inc.*		1,536		81,777
Raptor Pharmaceutical Corp.*		900		5,031
Rigel Pharmaceuticals, Inc.*		1,590		14,787
Sagent Pharmaceuticals, Inc.*		200		3,616
Santarus, Inc.*		1,297		9,196
Schiff Nutrition International, Inc.		157		2,818
Sciclone Pharmaceuticals, Inc.*		2,277		15,962
SIGA Technologies, Inc.*		685		1,966
Spectrum Pharmaceuticals, Inc.*		1,414		22,002
Sucampo Pharmaceuticals, Inc., Class A*		171		1,202
Synageva Biopharma Corp.*		400		16,224
Synergy Pharmaceuticals, Inc.*		2,100		9,975
Synta Pharmaceuticals Corp.*		721		3,944
Synutra International, Inc.*		311		1,679
Targacept, Inc.*		703		3,023
Theravance, Inc.*		1,816		40,351
Threshold Pharmaceuticals, Inc.*		2,000		14,800


	Number of Shares		Value†

Pharmaceuticals — (continued)
USANA Health Sciences, Inc.*		124	$	5,099
Vanda Pharmaceuticals, Inc.*		741		3,260
Viropharma, Inc.*		1,978		46,879
Vivus, Inc.*		2,870		81,910
XenoPort, Inc.*		827		4,995

				1,083,529

Pipelines — 0.2%
Crosstex Energy, Inc.		964		13,496
Semgroup Corp.*		1,300		41,509

				55,005

Precious Metals — 0.1%
McEwen Mining, Inc.*		7,023		21,139

Real Estate — 0.1%
Consolidated-Tomoka Land Co.		124		3,569
Forestar Real Estate Group, Inc.*		863		11,055
HFF, Inc., Class A*		700		9,758
Kennedy-Wilson Holdings, Inc.		781		10,942
Terreno Realty Corp.		175		2,644
Thomas Properties Group, Inc.		1,800		9,792

				47,760

Real Estate Investment Trusts — 0.5%
AG Mortgage Investment Trust, Inc		288		6,189
American Assets Trust, Inc.		800		19,400
American Capital Mortgage. Inc.		1,243		29,683
Armour Residential REIT, Inc.		5,500		39,105
RAIT Financial Trust,Inc.		906		4,186
RLJ Lodging Trust		3,200		58,016
STAG lndustrial, Inc.		400		5,832
Summitt Hotel Properties		700		5,859

				168,270

Retail — 6.3%
Aeropostale, Inc.*		2,284		40,724
AFC Enterprises*		559		12,935
America’s Car-Mart, Inc.*		227		8,819
ANN, Inc.*		1,385		35,304
Asbury Automotive Group, Inc.*		749		17,744
Barnes & Noble, Inc.*		700		11,522
Bebe Stores, Inc.		1,517		8,905
Benihana Inc		400		6,444
Big 5 Sporting Goods Corp.		381		2,880
Biglari Holdings, Inc.*		29		11,205
BJ’s Restaurants, Inc.*		620		23,560
Bob Evans Farms, Inc.		842		33,848
Body Central Corp.*		500		4,500
Bravo Brio Restaurant Group, Inc.*		500		8,915
Brown Shoe Co., Inc.		954		12,316
Buffalo Wild Wings, Inc.*		547		47,392
Cabela’s, Inc.*		1,208		45,674
Caribou Coffee Co., Inc.*		1,005		12,975
Carrols Restaurant Group, Inc.*		213		1,265
Casey’s General Stores, Inc.		1,040		61,350

113

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
Cash America International, Inc.		925	$	40,737
Casual Male Retail Group, Inc.*		800		2,904
CEC Entertainment, Inc.		572		20,804
Citi Trends, Inc.*		303		4,678
Coinstar, Inc.*		850		58,361
Collective Brands, Inc.*		1,782		38,170
Conn’s, Inc.*		804		11,899
Cost Plus, Inc.*		500		11,000
Cracker Barrel Old Country Store, Inc.		624		39,187
Denny’s Corp.*		2,352		10,443
Destination Maternity Corp.		578		12,485
DineEquity, Inc.*		371		16,561
Domino’s Pizza, Inc.		1,629		50,352
Einstein Noah Restaurant Group, Inc.		84		1,475
Express, Inc.*		2,754		50,040
Ezcorp, Inc., Class A*		1,266		29,700
Fiesta Restaurant Group, Inc.*		213		2,818
Fifth & Pacific CO., Inc.*		2,771		29,733
First Cash Financial Services, Inc.*		962		38,644
Francesca’s Holdings Corp.*		1,158		31,278
Fred’s, Inc., Class A		931		14,235
Genesco, Inc.*		795		47,819
Gordmans Stores, Inc.*		200		3,300
Group 1 Automotive, Inc.		607		27,685
Haverty Furniture Cos., Inc.		550		6,143
Hhgregg, Inc.*		662		7,487
Hibbett Sports, Inc.*		755		43,571
Hot Topic, Inc.		1,095		10,611
HSN, Inc.		1,079		43,538
Jack in the Box, Inc.*		1,214		33,846
Jamba, Inc.*		1,100		2,156
Jos. A. Bank Clothiers, Inc.*		699		29,680
Kenneth Cole Productions, Inc., Class A*		158		2,378
Kirkland’s, Inc.*		427		4,804
Krispy Kreme Doughnuts, Inc.*		1,322		8,448
Lithia Motors, Inc., Class A		494		11,387
Luby’s, Inc.*		600		4,020
Lumber Liquidators Holdings, Inc.*		933		31,526
MarineMax, Inc.*		400		3,804
Mattress Firm Holding Corp.*		500		15,155
New York & Co., Inc.*		583		2,029
Office Depot, Inc.*		8,800		19,008
OfficeMax, Inc.*		2,761		13,971
Papa John’s International, Inc.*		455		21,644
PC Connection, Inc.*		165		1,752
Penske Automotive Group, Inc.		1,276		27,102
PetMed Express, Inc.		413		5,022
PF Chang’s China Bistro, Inc.		525		27,022
Pier 1 Imports, Inc.		2,644		43,441
Pricesmart, Inc.		531		35,848
RadioShack Corp.		3,900		14,976
Red Robin Gourmet Burgers, Inc.*		320		9,763
Regis Corp.		1,532		27,515
Rite Aid Corp.*		17,672		24,741
Roundy’s, Inc.		900		9,189


	Number of Shares		Value†

Retail — (continued)
Ruby Tuesday, Inc.*		1,513	$	10,303
Rue21, Inc.*		379		9,566
Rush Enterprises, Inc., Class A*		1,035		16,922
Ruth’s Hospitality Group, Inc.*		1,695		11,187
Saks, Inc.*		3,241		34,517
Shoe Carnival, Inc.		358		7,693
Skullcandy, Inc*		407		5,759
Sonic Automotive, Inc., Class A		934		12,768
Sonic Corp.*		1,532		15,351
Stage Stores, Inc.		881		16,140
Stein Mart, Inc.		761		6,050
Steinway Musical Instruments, Inc.*		125		3,062
Susser Holdings Corp.*		302		11,225
Systemax, Inc.*		262		3,097
Talbots, Inc.*		1,494		3,765
Teavana Holdings, Inc.*		290		3,924
Texas Roadhouse, Inc.		1,970		36,307
The Bon-Ton Stores, Inc.		200		1,562
The Buckle, Inc.		849		33,595
The Cato Corp., Class A		804		24,490
The Cheesecake Factory, Inc.*		1,516		48,451
The Children’s Place Retail Stores, Inc.*		694		34,582
The Finish Line, Inc., Class A		1,393		29,128
The Men’s Wearhouse, Inc.		1,356		38,158
The Pantry, Inc.*		454		6,674
The Pep Boys - Manny, Moe, & Jack*		1,705		16,879
The Wet Seal, Inc., Class A*		2,604		8,229
Tuesday Morning Corp.*		1,129		4,843
Vera Bradley, Inc.*		500		10,540
Vitamin Shoppe, Inc.*		800		43,944
West Marine, Inc.*		264		3,102
Winmark Corp.		100		5,855
Zumiez, Inc.*		703		27,839

				2,089,669

Savings & Loans — 0.9%
Astoria Financial Corp.		2,201		21,570
Bank Mutual Corp.		632		2,787
BankFinancial Corp.		609		4,586
Beneficial Mutual Bancorp, Inc.*		649		5,601
Berkshire Hills Bancorp, Inc.		602		13,244
BofI Holding, Inc.*		100		1,976
Brookline Bancorp, Inc.		2,222		19,665
Cape Bancorp, Inc.*		300		2,493
Clifton Savings Bancorp, Inc.		150		1,561
Dime Community Bancshares Inc.		730		9,702
ESB Financial Corp.		194		2,561
ESSA Bancorp, Inc.		319		3,445
Everbank Financial Corp.*		1,000		10,870
First Defiance Financial Corp.		300		5,136
First Financial Holdings, Inc.		319		3,420
First Pactrust Bancorp, Inc.		200		2,372
Flushing Financial Corp.		638		8,696
Fox Chase Bancorp, Inc.		420		6,065
Home Federal Bancorp, Inc.		253		2,656
Home Loan Servicing Solutions Ltd.		700		9,380

114

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Savings & Loans — (continued)
Homestreet ,Inc.*		300	$	9,597
Investors Bancorp, Inc.*		1,156		17,444
Kearny Financial Corp.*		152		1,473
Meridian Interstate Bancorp, Inc.*		139		1,935
Northfield Bancorp, Inc.		423		6,011
Northwest Bancshares, Inc.		2,475		28,982
OceanFirst Financial Corp.		327		4,696
Oritani Financial Corp.		1,318		18,966
Provident Financial Services, Inc.		1,703		26,141
Provident New York Bancorp		951		7,218
Rockville Financial, Inc.		730		8,446
Roma Financial Corp.		126		1,074
Territorial Bancorp, Inc.		243		5,533
United Financial Bancorp, Inc.		440		6,327
Viewpoint Financial Group		866		13,544
Westfield Financial, Inc.		784		5,723
WSFS Financial Corp.		157		6,344

				307,240

Semiconductors — 3.2%
Aeroflex Holding Corp.*		500		3,025
Alpha & Omega Semiconductor, Ltd.		400		3,660
Amkor Technology, Inc.*		2,511		12,254
Anadigics, Inc.*		1,379		2,496
Applied Micro Circuits Corp.*		1,358		7,768
ATMI, Inc.*		928		19,089
AuthenTec, Inc.*		2,200		9,526
Axcelis Technologies, Inc.*		2,000		2,400
AXT, Inc.*		600		2,370
Brooks Automation, Inc.		1,977		18,663
Cabot Microelectronics Corp.*		661		19,308
Cavium, Inc.*		1,279		35,812
CEVA, Inc.*		671		11,816
Cirrus Logic, Inc.*		1,881		56,204
Cohu, Inc.		504		5,121
Diodes, Inc.*		999		18,751
DSP Group, Inc.*		557		3,531
Emulex Corp.*		2,606		18,763
Entegris, Inc.*		3,370		28,780
Entropic Communications, Inc.*		2,032		11,460
Exar Corp.*		732		5,973
FormFactor, Inc.*		1,172		7,583
FSI International, Inc.*		600		2,154
Gerber Scientific, Inc.~		500		0
GSI Technology, Inc.*		359		1,702
GSl Group, Inc.*		700		8,022
Gt Advanced Technologies, Inc*		3,599		19,003
Hittite Microwave Corp.*		866		44,270
Inphi Corp.*		500		4,740
Integrated Device Technology, Inc.*		4,293		24,127
Integrated Silicon Solution, Inc.*		500		5,045
International Rectifier Corp.*		2,200		43,978
Intersil Corp., Class A		4,000		42,600
IXYS Corp.*		566		6,322
Kopin Corp.*		1,507		5,184


	Number of Shares		Value†

Semiconductors — (continued)
Lattice Semiconductor Corp.*		3,824	$	14,416
LTX-Credence Corp.*		1,166		7,812
MaxLinear, Inc., Class A*		500		2,480
MEMC Electronic Materials, Inc.*		8,700		18,879
Micrel, Inc.		1,245		11,865
Microsemi Corp.*		2,393		44,247
Mindspeed Technologies, Inc.*		600		1,476
MIPS Technologies, Inc.*		1,058		7,057
MKS Instruments, Inc.		1,396		40,386
Monolithic Power Systems, Inc.*		767		15,240
MoSys, Inc.*		500		1,620
Nanometrics, Inc.*		500		7,680
Omnivision Technologies, Inc.*		1,619		21,630
Pericom Semiconductor Corp.*		646		5,814
Photronics, Inc.*		2,192		13,371
PLX Technology, Inc.*		1,260		8,001
Power Integrations, Inc.		895		33,383
QLogic Corp.*		3,000		41,070
Rambus, Inc.*		2,623		15,056
Richardson Electronics Ltd.		300		3,699
Rubicon Technology, Inc.*		323		3,295
Rudolph Technologies, Inc.*		854		7,447
Semtech Corp.*		1,909		46,427
Sigma Designs, Inc.*		777		4,957
Silicon Image, Inc.*		1,839		7,613
Standard Microsystems Corp.*		653		24,089
Supertex, Inc.*		389		7,333
Tessera Technologies, Inc.		1,623		24,946
TriQuint Semiconductor, Inc.*		4,777		26,274
Ultra Clean Holdings*		400		2,572
Ultratech, Inc.*		778		24,507
Veeco Instruments, Inc.*		1,093		37,555
Volterra Semiconductor Corp.*		691		16,204

				1,059,901

Software — 4.1%
Accelrys, Inc.*		1,566		12,669
ACI Worldwide, Inc.*		1,109		49,029
Actuate Corp.*		940		6,514
Acxiom Corp.*		2,067		31,232
Advent Software, Inc.*		935		25,348
American Software, Inc., Class A		593		4,714
Aspen Technology, Inc.*		2,753		63,732
athenahealth, Inc.*		956		75,687
Avid Technology, Inc.*		749		5,565
Blackbaud, Inc.		1,150		29,521
Bottomline Technologies, Inc.*		1,045		18,862
Callidus Software, Inc.*		800		3,984
CommVault Systems, Inc.*		1,348		66,820
Computer Programs & Systems, Inc.		347		19,855
Cornerstone Ondemand, Inc.*		1,200		28,572
CSG Systems International, Inc.*		781		13,496
Deltek, Inc.*		394		4,566
Demandware, Inc.*		300		7,107
Digi International, Inc.*		657		6,728
Ebix, Inc.		736		14,683

115

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Software — (continued)
Envestnet, Inc.*		600	$	7,200
EPIQ Systems, Inc.		668		8,183
ePocrates, Inc.*		200		1,604
Fair Isaac Corp.		988		41,773
FalconStor Software, Inc.*		626		1,634
Geeknet, Inc.*		100		1,982
Glu Mobile, Inc.*		1,100		6,105
Guidance Software, Inc.*		400		3,804
Guidewire Software, Inc.*		400		11,248
Imperva Inc*		400		11,528
inContact, Inc.*		900		4,509
Infoblox, Inc.*		500		11,465
InnerWorkings, Inc.*		1,124		15,208
Innodata Isogen, Inc.*		1,300		8,892
Interactive Intelligence Group, Inc.*		297		8,378
JDA Software Group, Inc.*		1,185		35,183
Jive Software, Inc.*		600		12,594
Mantech International Corp., Class A		739		17,344
MedAssets, Inc.*		2,048		27,546
Medidata Solutions, Inc.*		544		17,773
MicroStrategy, Inc., Class A*		218		28,310
MModal, Inc.*		800		10,384
Monotype Imaging Holdings, Inc.*		899		15,076
Omnicell, Inc.*		935		13,688
OPNET Technologies, Inc.		421		11,194
Parametric Technology Corp.*		3,225		67,596
PDF Solutions, Inc.*		500		4,935
PegaSystems, Inc.		430		14,181
Progress Software Corp.*		1,786		37,274
PROS Holdings, Inc.*		517		8,696
QAD, Inc.*		92		1,308
QLIK Technologies, Inc.*		2,541		56,207
Quality Systems, Inc.		1,004		27,620
Quest Software, Inc.*		1,509		42,026
RealPage, Inc.*		1,000		23,160
Rosetta Stone, Inc.*		202		2,796
Schawk, Inc.		187		2,375
Sciquest, Inc.*		300		5,388
Seachange International, Inc.*		773		6,362
SS&C Technologies Holdings, Inc.*		1,100		27,500
Synchronoss Technologies, Inc.*		746		13,779
SYNNEX Corp.*		794		27,385
Take-Two Interactive Software, Inc.*		1,844		17,444
Tangoe, Inc.*		1,069		22,780
The Ultimate Software Group, Inc.*		716		63,810
Tyler Technologies, Inc.*		852		34,378
Verint Systems, Inc.*		500		14,755

				1,343,044

Storage & Warehousing — 0.1%
Mobile Mini, Inc.*		877		12,629
Wesco Aircraft Holdings, Inc.*		740		9,420

				22,049


	Number of Shares		Value†

Telecommunications — 3.0%
8X8, Inc.*		1,600	$	6,720
ADTRAN, Inc.		1,705		51,474
Anaren, Inc.*		312		6,115
Anixter International, Inc.*		734		38,939
Arris Group, Inc.*		3,281		45,639
Aruba Networks, Inc.*		3,413		51,366
Atlantic Tele-Network, Inc.		249		8,399
Aviat Networks, Inc.*		1,462		4,094
Black Box Corp.		562		16,129
Calamp Corp.*		1,400		10,262
Calix, Inc.*		887		7,291
Cbeyond, Inc.*		568		3,845
Ciena Corp.*		3,000		49,110
Cincinnati Bell, Inc.*		5,985		22,264
Comtech Telecommunications Corp.		552		15,776
Comverse Technology, Inc.*		6,900		40,158
Consolidated Communications Holdings, Inc.		570		8,436
DigitalGlobe, Inc.*		845		12,810
Extreme Networks, Inc.*		1,947		6,698
Fairpoint Communications, Inc.*		600		3,690
Finisar Corp.*		2,521		37,714
General Communication, Inc., Class A*		986		8,194
GeoEye, Inc.*		547		8,468
Globecomm Systems, Inc.*		500		5,070
Harmonic, Inc.*		3,470		14,782
Hawaiian Telcom Holdco, Inc.*		500		9,755
HickoryTech Corp.		400		4,444
IDT Corp., Class B		300		2,943
Infinera Corp.*		2,494		17,059
InterDigital, Inc.		1,194		35,235
Iridium Communications, Inc.*		1,100		9,856
Ixia*		1,313		15,782
KVH Industries, Inc.*		354		4,425
Leap Wireless International, Inc.*		1,400		9,002
LogMeIn, Inc.*		581		17,732
Loral Space & Communications, Inc.*		346		23,303
Lumos Networks Corp		382		3,610
Magicjack Vocaltec Ltd.		700		13,300
NeoPhotonics Corp.*		300		1,482
Netgear, Inc.*		1,029		35,511
Neutral Tandem, Inc.*		926		12,205
Ntelos Holdings Corp		382		7,201
Oclaro, Inc.*		1,100		3,344
Oplink Communications, Inc.*		635		8,591
ORBCOMM, Inc.*		1,000		3,260
Parkervision, Inc.*		4,100		9,758
Plantronics, Inc.		1,267		42,318
Preformed Line Products Co.		45		2,606
Premiere Global Services, Inc.*		1,656		13,894
Primus Telecommunications Group, Inc.*		600		9,342
Procera Networks, Inc.*		700		17,017
RF Micro Devices, Inc.*		6,851		29,117
Rignet, Inc.*		200		3,478
Shenandoah Telecommunications Co.		559		7,608
ShoreTel, Inc.*		981		4,297

116

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Telecommunications — (continued)
Sonus Networks, Inc.*		4,915	$	10,567
SureWest Communications		400		8,428
Sycamore Networks, Inc.*		624		9,060
Symmetricom, Inc.*		959		5,744
Telenavinc*		300		1,839
Tellabs, Inc.		11,600		38,628
Ubiquiti Networks, Inc.*		200		2,850
USA Mobility, Inc.		512		6,584
Viasat, Inc.*		962		36,335
Vonage Holdings Corp.*		3,700		7,437
Westell Technologies, Inc.*		1,400		3,332

				991,722

Textiles — 0.1%
G&K Services, Inc., Class A		576		17,965
Unifirst Corp.		377		24,034

				41,999

Toys, Games & Hobbies — 0.1%
JAKKS Pacific, Inc.		584		9,350
Leapfrog Enterprises, Inc.*		1,876		19,248

				28,598

Transportation — 1.8%
Air Transport Services Group, Inc.*		2,085		10,842
Arkansas Best Corp.		795		10,017
Atlas Air Worldwide Holdings, Inc.*		848		36,896
Bristow Group, Inc.		950		38,636
CAI International, Inc.*		260		5,169
Celadon Group, Inc.		435		7,125
Echo Global Logistics, Inc.*		200		3,812
Forward Air Corp.		896		28,914
Frontline Ltd.		1,200		5,472
Genco Shipping & Trading Ltd.		511		1,559
Genesee & Wyoming, Inc., Class A*		1,226		64,782
Gulfmark Offshore, Inc., Class A*		879		29,921
Heartland Express, Inc.		1,167		16,700
HUB Group, Inc., Class A*		1,043		37,757
International Shipholding Corp.		141		2,659
Knight Transportation, Inc.		1,764		28,206
Knightsbridge Tankers Ltd.		574		4,672
Marten Transport Ltd.		434		9,227
Nordic American Tanker Shipping		1,367		18,550
Old Dominion Freight Line, Inc.*		1,406		60,866
Overseas Shipholding Group, Inc.*		600		6,666
Pacer International, Inc.*		687		3,724
Patriot Transportation Holding, Inc.*		69		1,624
PHI, Inc.*		293		8,148
Quality Distribution, Inc.*		400		4,436
RailAmerica, Inc.*		456		11,035
Rand Logistics, Inc.*		1,000		8,500
Roadrunner Transportation Systems, Inc.*		200		3,378
Saia, Inc.*		774		16,943
Scorpio Tankers, Inc.		600		3,834
Ship Finance International Ltd.		1,084		16,943
Swift Transportation Co.*		2,500		23,625


	Number of Shares		Value†

Transportation — (continued)
Teekay Tankers Ltd., Class A		3,193	$	14,560
Universal Truckload Services, Inc.*		100		1,513
Werner Enterprises, Inc.		1,252		29,910
Xpo Logistics, Inc.*		700		11,760

				588,381

Trucking and Leasing — 0.3%
Amerco, Inc.*		295		26,541
Greenbrier Cos., Inc.*		447		7,858
TAL International Group, Inc.		993		33,256
Textainer Group Holdings Ltd.		412		15,203

				82,858

Water — 0.3%
American States Water Co.		562		22,244
Artesian Resources Corp., Class A		113		2,434
California Water Service Group		1,166		21,536
Connecticut Water Service, Inc.		319		9,245
Consolidated Water Co., Inc.		312		2,586
Middlesex Water Co.		531		10,089
Pico Holdings, Inc.*		792		17,749
SJW Corp.		288		6,915
York Water Co.		297		5,313

				98,111

TOTAL COMMON STOCKS (Cost $25,381,181)				29,520,043

REAL ESTATE INVESTMENT TRUSTS — 6.5%
Apartments — 0.1%
Associated Estates Realty Corp.		956		14,292
Campus Crest Communities, Inc.		700		7,273
Education Realty Trust, Inc.		2,405		26,648

				48,213

Building & Real Estate — 1.7%
Agree Realty Corp.		196		4,338
Alexander’s, Inc.		57		24,573
Anworth Mortgage Asset Corp.		3,331		23,484
Apollo Commercial Real Estate Finance, Inc.		400		6,428
Capstead Mortgage Corp.		2,775		38,600
Colony Financial, Inc.		816		14,117
CreXus Investment Corp.		1,961		19,943
CYS Investments, Inc.		2,956		40,704
Dynex Capital, Inc.		1,407		14,605
Getty Realty Corp.		563		10,781
Government Properties Income Trust		944		21,353
Invesco Mortgage Capital, Inc.		3,007		55,148
iStar Financial, Inc.*		2,118		13,661
NorthStar Realty Finance Corp.		3,921		20,468
Pennymac Mortgage Investment Trust		1,392		27,464
Redwood Trust, Inc.		2,277		28,417
Resource Capital Corp.		1,700		9,061
Starwood Property Trust, Inc.		3,235		68,938
Sun Communities, Inc.		690		30,526
Two Harbors Investment Corp.		5,600		58,016

117

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Building & Real Estate — (continued)
UMH Properties, Inc.		168	$	1,803
Walter Investment Management Corp.*		653		15,306

				547,734

Diversified — 0.5%
Coresite Realty Corp.		500		12,910
DuPont Fabros Technology, Inc.		1,950		55,692
Entertainment Properties Trust		1,210		49,743
PS Business Parks, Inc.		465		31,490
Whitestone REIT		200		2,762

				152,597

Forest Products & Paper — 0.1%
Potlatch Corp.		1,078		34,432

Healthcare — 0.8%
Healthcare Realty Trust, Inc.		2,472		58,932
LTC Properties, Inc.		917		33,269
Medical Properties Trust, Inc.		3,607		34,699
National Health Investors, Inc.		657		33,454
Omega Healthcare Investors, Inc.		3,148		70,830
Sabra Healthcare Reit, Inc.		1,088		18,616
Universal Health Realty Income Trust		320		13,290

				263,090

Hotels & Resorts — 0.9%
Ashford Hospitality Trust, Inc.		1,120		9,442
Chesapeake Lodging Trust		789		13,586
DiamondRock Hospitality Co.		4,523		46,135
FelCor Lodging Trust, Inc.*		3,018		14,185
Hersha Hospitality Trust		4,269		22,540
LaSalle Hotel Properties		2,517		73,345
Pebblebrook Hotel Trust		1,409		32,844
Strategic Hotels & Resorts, Inc.*		5,012		32,377
Sunstone Hotel Investors, Inc.*		3,332		36,619

				281,073

Industrial — 0.5%
DCT Industrial Trust, Inc.		6,582		41,467
EastGroup Properties, Inc.		875		46,637
First Industrial Realty Trust, Inc.*		2,429		30,654
First Potomac Realty Trust		1,492		17,561
Monmouth Real Estate Investment Corp., Class A		1,149		13,466

				149,785

Mixed Industrial/Office — 0.6%
CapLease, Inc.		1,735		7,200
Colonial Properties Trust		2,616		57,918
Cousins Properties, Inc.		3,061		23,723
Gladstone Commercial Corp.		152		2,532
Investors Real Estate Trust		2,918		23,052
Lexington Realty Trust		3,015		25,537
Mission West Properties, Inc.		287		2,474
One Liberty Properties, Inc.		203		3,823


	Number of Shares		Value†

Mixed Industrial/Office — (continued)
Washington Real Estate Investment Trust		1,806	$	51,381
Winthrop Realty Trust		777		9,448

				207,088

Office Property — 0.3%
Franklin Street Properties Corp.		1,845		19,520
Highwoods Properties, Inc.		2,160		72,684
Hudson Pacific Properties, Inc.		900		15,669
Parkway Properties, Inc.		593		6,784

				114,657

Real Estate Investment Trusts — 0.1%
Select Income Reit*		500		11,880
Western Asset Mortgage Capital Corp.*		500		9,745

				21,625

Regional Malls — 0.2%
Glimcher Realty Trust		3,916		40,021
Pennsylvania Real Estate Investment Trust		1,715		25,691
Rouse Properties, Inc.		1,000		13,550

				79,262

Storage & Warehousing — 0.2%
CubeSmart		3,125		36,469
Sovran Self Storage, Inc.		882		44,179

				80,648

Strip Centers — 0.5%
Acadia Realty Trust		1,120		25,962
Cedar Shopping Centers, Inc.		1,026		5,181
Equity One, Inc.		1,554		32,945
Excel Trust, Inc.		900		10,764
Inland Real Estate Corp.		1,788		14,984
Kite Realty Group Trust		1,107		5,524
Ramco-Gershenson Properties Trust		1,641		20,627
Retail Opportunity Investments Corp.		1,300		15,678
Saul Centers, Inc.		151		6,473
Urstadt Biddle Properties, Inc., Class A		516		10,201

				148,339

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $1,768,466)				2,128,543

RIGHTS — 0.0%
Hampton Rts 07/31/12~ (Cost $2,177)		300		217

U.S. TREASURY OBLIGATIONS — 0.3%
U.S. Treasury Bills
0.060%, 07/12/12		37	$	36,999
0.060%, 09/06/12		25		24,997
0.070%, 08/09/12		30		29,998
0.075%, 09/06/12		20		19,998

TOTAL U.S. TREASURY OBLIGATIONS (Cost $111,991)				111,992

118

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund



	Number of Shares		Value†
WARRANTS — 0.0%
Clinical Data, Inc.~		354	$	0
CVR Energy, Inc.~		2,274		0
Magnum Hunter Resources Corp.~		260		0

TOTAL WARRANTS (Cost $0)				0
SHORT-TERM INVESTMENTS — 3.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,087,172)		1,087,172		1,087,172

TOTAL INVESTMENTS — 100.0% (Cost $28,350,987)			$	32,847,967

†	See Security Valuation Note.

*	Non-income producing security.

~	Fair valued security. The total market value of fair valued securities at June 30, 2012 is $243.

Plc — Public Limited Company.

REIT — Real Estate Investment Trust.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Advertising	$	27,665	$	27,665	$	—	$	—
Aerospace & Defense		384,305		384,305		—		—
Agriculture		119,995		119,995		—		—
Airlines		242,024		242,024		—		—
Apparel		364,976		364,976		—		—
Auto Manufacturers		14,564		14,564		—		—
Auto Parts & Equipment		304,711		304,711		—		—
Banks		2,049,558		2,049,558		—		—
Beverages		68,250		68,250		—		—
Biotechnology		773,669		773,669		—		—
Building & Real Estate		2,843		2,843		—		—
Building Materials		358,093		358,093		—		—
Chemicals		528,771		528,771		—		—
Coal		107,460		107,460		—		—
Commercial Services		2,152,806		2,152,806		—		—
Computers		617,489		617,489		—		—
Cosmetics & Personal Care		37,148		37,148		—		—
Distribution & Wholesale		385,861		385,861		—		—
Diversified		9,300		9,300		—		—
Diversified Financial Services		695,715		695,689		26		—
Electric		734,881		734,881		—		—


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
Electrical Components & Equipment	$	323,156	$	323,156	$	—	$	—
Electronics		687,620		687,620		—		—
Energy-Alternate Sources		110,704		110,704		—		—
Engineering & Construction		191,297		191,297		—		—
Entertainment		313,055		313,055		—		—
Environmental Control		215,281		215,281		—		—
Food		673,664		673,664		—		—
Forest Products & Paper		210,240		210,240		—		—
Gas		380,338		380,338		—		—
Hand & Machine Tools		29,911		29,911		—		—
Healthcare Products		1,135,699		1,135,699		—		—
Healthcare Services		521,313		521,313		—		—
Holding Companies		24,507		24,507		—		—
Home Builders		177,812		177,812		—		—
Home Furnishings		125,283		125,283		—		—
Hotels & Resorts		17,676		17,676		—		—
Household Products & Wares		196,100		196,100		—		—
Housewares		10,179		10,179		—		—
Industrial		49,331		49,331		—		—
Insurance		794,881		794,881		—		—
Internet		943,636		943,636		—		—
Investment Companies		348,664		348,664		—		—
Iron & Steel		56,759		56,759		—		—
Leisure Time		211,956		211,956		—		—
Lodging		96,622		96,622		—		—
Machinery - Construction & Mining		18,347		18,347		—		—
Machinery - Diversified		450,804		450,804		—		—
Media		219,076		219,076		—		—
Medical Instruments		8,184		8,184		—		—
Metal Fabricate/ Hardware		229,554		229,554		—		—
Mining		309,009		309,009		—		—
Miscellaneous Manufacturing		697,624		697,624		—		—
Office Furnishings		119,014		119,014		—		—
Oil & Gas		1,080,271		1,080,271		—		—
Oil & Gas Services		491,474		491,474		—		—
Packaging and Containers		41,643		41,643		—		—
Pharmaceuticals		1,083,529		1,083,529		—		—
Pipelines		55,005		55,005		—		—
Precious Metals		21,139		21,139		—		—
Real Estate		47,760		47,760		—		—
Real Estate Investment Trusts		168,270		168,270		—		—
Retail		2,089,669		2,089,669		—		—
Savings & Loans		307,240		307,240		—		—
Semiconductors		1,059,901		1,059,901		—		—

119

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Small Cap Index Fund


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS (continued)
Software	$	1,343,044	$	1,343,044	$	—	$	—
Storage & Warehousing		22,049		22,049		—		—
Telecomm unications		991,722		991,722		—		—
Textiles		41,999		41,999		—		—
Toys, Games & Hobbies		28,598		28,598		—		—
Transportation		588,381		588,381		—		—
Trucking and Leasing		82,858		82,858		—		—
Water		98,111		98,111		—		—
REAL ESTATE INVESTMENT TRUSTS		2,128,543		2,128,543		—		—
U.S. TREASURY OBLIGATIONS		111,992		—		111,992		—
RIGHTS		217		—		217		—
SHORT-TERM INVESTMENTS		1,087,172		1,087,172		—		—

TOTAL INVESTMENTS	$	32,847,967	$	32,735,732	$	112,235	$	—

The accompanying notes are an integral part of these financial statements.

120

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS — 97.0%
Australia — 8.5%
AGL Energy Ltd.		4,057	$	61,653
Alumina Ltd.		14,267		11,702
Amcor Ltd.		7,351		53,663
AMP Ltd.		19,572		77,883
APA Group		3,523		18,085
Asciano Group		6,617		29,721
ASX Ltd.		1,185		36,375
Australia & New Zealand Banking Group Ltd.		18,410		419,381
Bendigo & Adelaide Bank Ltd.		2,975		22,735
BHP Billiton Ltd.		21,918		713,920
Boral Ltd.		4,356		13,276
Brambles Ltd.		9,730		61,710
Caltex Australia Ltd.		1,064		14,861
Campbell Brothers Ltd.		432		24,219
Centro Retail Australia		8,457		17,165
CFS Retail Property Trust		10,914		21,783
Coca-Cola Amatil Ltd.		3,398		46,697
Cochlear Ltd.		303		20,578
Commonwealth Bank of Australia		10,776		590,144
Computershare Ltd.		2,605		19,912
Crown Ltd.		2,672		23,366
CSL Ltd.		3,476		140,992
Dexus Property Group		29,914		28,625
Echo Entertainment Group Ltd.*		5,022		22,142
Echo Entertainment NPV~		1,004		4,398
Fairfax Media Ltd.		8,585		4,925
Fortescue Metals Group Ltd.		10,696		54,653
Goodman Group		9,436		35,729
GPT Group		11,893		40,229
GPT Group, In Specie~		16,419		0
Harvey Norman Holdings Ltd.		3,095		6,223
Iluka Resources Ltd.		2,473		29,187
Incitec Pivot Ltd.		12,659		37,399
Insurance Australia Group Ltd.		13,497		48,409
Leighton Holdings Ltd.		960		16,170
Lend Lease Group		3,777		28,090
Lynas Corp Ltd.*		11,331		10,028
Macquarie Group Ltd.		2,450		66,159
Metcash Ltd.		4,753		16,466
Mirvac Group		24,107		31,676
National Australia Bank Ltd.		15,358		374,084
Newcrest Mining Ltd.		4,992		116,169
Orica Ltd.		2,596		66,125
Origin Energy Ltd.		7,062		88,939
OZ Minerals Ltd.		2,023		16,505
Qantas Airways Ltd.*		6,627		7,362
QBE Insurance Group Ltd.		8,277		114,394
QR National Ltd.		11,327		39,678
Ramsay Health Care Ltd.		980		22,770
Rio Tinto Ltd.		2,932		172,129
Santos Ltd.		5,816		64,054
Sims Metal Management Ltd.		1,296		12,747
Sonic Healthcare Ltd.		2,518		32,933
SP Ausnet		14,355		15,044
Stockland		15,423		48,951


	Number of Shares		Value†

Australia — (continued)
Suncorp-Metway Ltd.		8,453	$	70,634
Sydney Airport		3,363		10,023
TABCORP Holdings Ltd.		5,644		17,020
Tatts Group Ltd.		11,171		30,103
Telstra Corp. Ltd.		29,331		111,133
Toll Holdings Ltd.		4,043		16,623
Transurban Group		7,976		46,588
Wesfarmers Ltd.		1,001		32,546
Wesfarmers Ltd. PPS		5,445		167,606
Westfield Group		14,431		141,299
Westfield Retail Trust		21,490		63,034
Westpac Banking Corp.		20,980		458,124
Whitehaven Coal Ltd.		2,966		12,751
Woodside Petroleum Ltd.		4,236		135,747
Woolworths Ltd.		8,146		224,244
WorleyParsons Ltd.		1,385		35,964

				5,685,652

Austria — 0.3%
Andritz AG		483		24,838
Erste Group Bank AG*		1,805		34,280
Immoeast AG~		2,678		0
IMMOFINANZ AG		6,387		20,323
OMV AG		1,135		35,695
Raiffeisen International Bank-Holding AG		211		6,908
Telekom Austria AG		2,544		25,005
Verbund AG		303		6,941
Vienna Insurance Group		300		12,127
Voestalpine AG		642		17,051

				183,168

Belgium — 1.1%
Anheuser-Busch InBev NV		5,380		424,167
Belgacom S.A.		1,133		32,219
Colruyt S.A.		647		28,865
Delhaize Group S.A.		595		21,796
Fortis N.V.		16,326		32,421
Groupe Bruxelles Lambert S.A.		471		31,971
KBC Groep N.V.		1,139		24,087
Mobistar S.A.		172		5,891
Solvay S.A.		356		35,149
Telenet Group Holding N.V.*		377		16,497
UCB S.A.		734		37,078
Umicore		797		36,850

				726,991

Bermuda — 0.1%
Seadrill Ltd.		2,355		83,992

China — 0.1%
Foxconn International Holdings Ltd.*		17,000		6,211
Sands China Ltd.		14,800		47,612
Yangzijiang Shipbuilding Holdings Ltd.		19,000		15,237

				69,060

Denmark — 1.1%
A.P. Moller - Maersk A/S, B Shares		8		52,460
A.P. Moller - Maersk A/S, A Shares		5		31,122
Carlsberg A/S, B Shares		764		60,305

121

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Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Denmark — (continued)
Coloplast A/S, B Shares		151	$	27,151
Danske Bank A/S*		4,513		62,751
DSV A/S		1,300		25,776
Novo Nordisk A/S, B Shares*		2,704		392,180
Novozymes A/S		1,708		44,291
TDC A/S		2,500		17,374
TrygVesta A/S		303		17,033
William Demant Holding A/S*		138		12,404

				742,847

Finland — 0.7%
Elisa Oyj		1,000		20,137
Fortum Oyj		2,843		53,990
Kesko Oyj, B Shares		513		13,411
Kone Oyj, B Shares		992		59,910
Metso Oyj		844		29,100
Neste Oil Oyj		812		9,137
Nokia Oyj		23,448		47,834
Nokian Renkaat Oyj		755		28,680
Orion Oyj, Class B		750		14,206
Pohjola Bank Plc		1,500		17,505
Sampo Oyj, A Shares		2,681		69,558
Stora Enso Oyj, R Shares		2,865		17,639
UPM-Kymmene Oyj		3,605		40,782
Wartsila Oyj		1,200		39,315

				461,204

France — 8.5%
Accor S.A.		1,031		32,309
Aeroports de Paris		215		16,262
Air Liquide S.A.		2,107		240,891
Alcatel-Lucent*		15,694		25,831
Alstom S.A.		1,188		37,587
Arkema S.A.		334		21,900
AtoS Origin S.A.		326		19,496
AXA S.A.		12,427		166,133
BNP Paribas		6,824		263,098
Bouygues S.A.		1,339		35,930
Bureau Veritas SA		300		26,688
Cap Gemini S.A.		938		34,524
Carrefour S.A.		3,713		68,562
Casino Guichard Perracho S.A.		395		34,720
Christian Dior S.A.		328		45,109
Cie Generale d’Optique Essilor International SA		1,438		133,590
Cie Generale de Geophysique - Veritas*		1,072		27,727
CNP Assurances		572		6,986
Compagnie de Saint-Gobain		2,628		97,103
Compagnie Generale des Establissements Michelin, B Shares		1,222		79,951
Credit Agricole S.A.*		7,249		31,986
Danone		3,937		244,672
Dassault Systemes S.A.		480		45,035
Edenred		1,127		31,950
Electricite de France S.A.		1,431		31,839
Eurazeo		336		12,939
Eutelsat Communications S.A.		731		22,487
Fonciere Des Regions		114		8,196


	Number of Shares		Value†

France — (continued)
France Telecom S.A.		12,370	$	162,646
GDF Suez		8,553		203,971
Gecina S.A.		190		16,938
Groupe Eurotunnel S.A.		3,383		27,498
ICADE		156		11,798
Iliad S.A.		177		25,631
Imerys S.A.		213		10,859
JC Decaux S.A.		400		8,821
Klepierre		874		28,723
L’Oreal S.A.		1,633		191,070
Lafarge S.A.		1,450		64,755
Lagardere S.C.A.		642		17,921
Legrand S.A.		1,792		60,821
LVMH Moet Hennessy Louis Vuitton S.A.		1,709		260,093
Natixis		5,860		15,785
Pernod-Ricard S.A.		1,383		147,887
Peugeot S.A.*		1,186		11,696
PPR		467		66,562
Publicis Groupe S.A.		900		41,160
Remy Cointreau S.A.		148		16,260
Renault S.A.		1,218		48,638
Rexel S.A.		1,089		18,601
Safran S.A.		1,723		63,986
Sanofi S.A.		8,220		622,262
Schneider Electric S.A.		3,632		201,880
SCOR SE		1,095		26,546
Societe BIC S.A.		246		25,412
Societe Generale*		4,447		104,281
Sodexo		682		53,103
Suez Environment Co.		1,814		19,505
Technip S.A.		663		69,095
Thales S.A.		773		25,539
Total S.A.		14,447		650,245
Unibail-Rodamco SE		582		107,211
Vallourec S.A.		763		31,177
Veolia Environment S.A.		2,962		37,508
Vinci S.A.		3,096		144,692
Vivendi S.A.		8,613		160,038
Wendel S.A.		211		15,624
Zodiac Aerospace		227		23,092

				5,682,831

Germany — 7.2%
Adidas AG		1,451		104,005
Allianz SE		3,050		306,785
Axel Springer AG		327		14,049
BASF SE		6,123		425,760
Bayer AG		5,541		399,281
Bayerische Motoren Werke AG		2,205		159,572
Beiersdorf AG		631		40,906
Brenntag AG		300		33,200
Celesio AG		516		8,446
Commerzbank AG*		22,684		38,528
Continental AG		513		42,764
Daimler AG		6,083		273,367
Deutsche Bank AG		6,257		225,836
Deutsche Boerse AG		1,275		68,788

122

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Germany — (continued)
Deutsche Lufthansa AG		1,383	$	15,989
Deutsche Post AG		5,502		97,350
Deutsche Telekom AG		18,668		204,591
E.ON AG		12,134		262,206
Fraport AG Frankfurt Airport Services Worldwide		272		14,646
Fresenius Medical Care AG & Co. KGaA		1,369		96,690
Fresenius SE & Co. KGaA		896		92,770
GEA Group AG		1,218		32,463
Hannover Ruckversicherung AG		356		21,206
HeidelbergCement AG		964		46,281
Henkel AG & Co. KGaA		937		51,996
Hochtief AG*		206		9,986
Hugo Boss AG*		138		13,672
Infineon Technologies AG		6,887		46,613
K+S AG		1,027		47,017
Kabel Deutschland Holding AG		620		38,638
Lanxess AG		527		33,351
Linde AG		1,140		177,545
MAN SE		281		28,740
Merck KGaA		425		42,443
Metro AG		665		19,392
Muenchener Ruckversicherung AG		1,227		173,135
RWE AG		3,410		139,451
Salzgitter AG		183		7,533
SAP AG		6,159		364,709
Siemens AG		5,479		460,386
Suedzucker AG		700		24,833
ThyssenKrupp AG		2,318		37,759
United Internet AG		908		15,609
Volkswagen AG		196		29,618
Wacker Chemie AG		128		8,818

				4,796,723

Greece — 0.1%
Coca-Cola Hellenic Bottling Co. S.A.*		1,467		25,991
OPAP S.A.		1,080		6,760

				32,751

Guernsey — 0.0%
Resolution Ltd.		9,101		27,996

Hong Kong — 3.0%
AIA Group Ltd.		68,000		234,876
ASM Pacific Technology Ltd.		1,700		21,730
BOC Hong Kong Holdings Ltd.		24,500		75,422
Cathay Pacific Airways Ltd.		10,000		16,212
Cheung Kong Holdings Ltd.		9,000		111,117
Cheung Kong Infrastructure Holdings Ltd.		4,000		24,215
CLP Holdings Ltd.		12,000		101,986
First Pacific Co., Ltd.		14,000		14,522
Galaxy Entertainment Group Ltd.*		8,000		20,127
Genting Singapore Plc		44,000		49,429
Hang Lung Group Ltd.		6,000		37,099
Hang Lung Properties Ltd.		15,000		51,309
Hang Seng Bank Ltd.		5,100		70,115
Henderson Land Development Co., Ltd.		5,209		28,959
Hong Kong Exchanges & Clearing Ltd.		7,174		103,225


	Number of Shares		Value†

Hong Kong — (continued)
Hopewell Holdings Ltd.		3,500	$	10,020
Hutchison Whampoa Ltd.		14,000		121,435
Hysan Development Co., Ltd.		3,125		11,912
Kerry Properties Ltd.		4,009		17,251
Li & Fung Ltd.		38,000		73,578
Lifestyle International Holdings, Ltd.		4,500		9,916
MGM China Holdings Ltd.*		10,400		15,947
MTR Co., Ltd.		9,764		33,518
New World Development Ltd.		23,130		27,255
Noble Group Ltd.		22,484		20,090
NWS Holdings Ltd.		11,186		16,360
Orient Overseas International Ltd.*		2,000		9,809
PCCW Ltd.		32,000		11,802
Power Assets Holdings Ltd.		9,000		67,538
Shangri-La Asia Ltd.		8,666		16,646
Sino Land Co., Ltd.		18,298		27,785
SJM Holdings Ltd.		10,000		18,738
Sun Hung Kai Properties Ltd.		11,346		134,892
Swire Pacific Ltd., Class A		5,000		58,154
The Bank of East Asia Ltd.		10,114		36,453
The Hong Kong & China Gas Co., Ltd.		33,253		70,639
The Link Real Estate Investment Trust		15,143		62,069
Wharf Holdings Ltd.		10,000		55,610
Wheelock & Co., Ltd.		7,000		26,599
Wing Hang Bank Ltd.		2,046		19,895
Wynn Macau Ltd.*		12,400		29,260
Yue Yuen Industrial Holdings Ltd.		7,000		22,008

				1,985,522

Ireland — 0.7%
Anglo Irish Bank Corp. Plc~		3,146		0
CRH Plc*		5,239		100,370
Elan Corp. Plc*		3,335		48,910
Experian Plc		7,107		100,266
James Hardie Industries SE		3,154		26,005
Kerry Group Plc, Class A		1,174		51,467
Ryanair Holdings Plc*		59		1,794
Shire Plc		4,000		115,079

				443,891

Israel — 0.6%
The Israel Corp. Ltd.		16		9,048
Bank Hapoalim BM*		8,292		25,573
Bank Leumi Le-Israel BM*		8,478		20,712
Bezeq Israeli Telecommunication Corp. Ltd.		7,500		7,980
Elbit Systems Ltd.		300		10,330
Israel Chemicals Ltd.		3,410		37,730
Mizrahi Tefahot Bank Ltd*		783		6,109
NICE Systems Ltd.*		400		14,647
Teva Pharmaceutical Industries Ltd.		6,215		244,980

				377,109

Italy — 1.9%
Assicurazioni Generali SpA		7,864		106,627
Atlantia SpA		2,293		29,267
Autogrill SpA		1,200		10,888
Banca Monte dei Paschi di Siena SpA*		33,709		8,404
Banco Popolare Societa Cooperative*		7,862		10,556

123

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Italy — (continued)
Enel Green Power SpA		8,768	$	13,894
Enel SpA		42,514		137,272
ENI SpA		16,113		342,324
Exor SpA		457		9,825
Fiat Industrial SpA		5,555		54,678
Fiat SpA*		5,103		25,728
Finmeccanica SpA*		2,436		9,850
Intesa Sanpaolo SpA		63,856		90,883
Intesa Sanpaolo SpA		5,114		5,823
Luxottica Group SpA		649		22,662
Mediaset SpA		4,492		7,867
Mediobanco SpA		2,550		11,246
Pirelli & C SpA		1,674		17,655
Prysmian SpA		1,358		20,256
Saipem SpA		1,703		75,842
Snam Rete Gas SpA		10,185		45,630
Telecom Italia SpA		58,827		58,130
Telecom Italia SpA		37,646		30,507
Terna Rete Elettrica Nasionale SpA		8,545		30,878
Unicredit SpA*		25,652		97,262
Unione di Banche Italiane ScpA		6,094		19,910

				1,293,864

Japan — 21.5%
ABC-Mart, Inc.		200		7,483
Advantest Corp.		1,200		18,759
Aeon Co., Ltd.		4,100		51,099
Aeon Credit Service Co., Ltd.		700		12,985
Aeon Mall Co., Ltd.		500		10,654
Air Water, Inc.		1,000		12,125
Aisin Seiki Co., Ltd.		1,200		40,113
Ajinomoto Co., Inc.		4,000		55,670
Alfresa Holdings Corp.		200		10,624
All Nippon Airways Co., Ltd.		5,000		14,165
Amada Co., Ltd.		3,000		17,750
Aozora Bank Ltd.		5,000		11,907
Asahi Breweries Ltd.		2,700		58,008
Asahi Glass Co., Ltd.		7,000		47,223
Asahi Kasei Corp.		8,000		43,365
ASICS Corp.		1,000		12,686
Astellas Pharma, Inc.		3,000		130,916
Benesse Corp.		400		17,909
Bridgestone Corp.		4,200		96,449
Brother Industries Ltd.		1,500		17,174
Canon, Inc.		7,600		303,320
Casio Computer Co., Ltd.		1,500		9,836
Central Japan Railway Co.		11		86,635
Chiyoda Corp.		1,000		12,252
Chubu Electric Power Co., Inc.		4,400		71,349
Chugai Pharmaceutical Co., Ltd.		1,800		34,123
Citizen Holdings Co., Ltd.		800		4,692
Coca-Cola West Co., Ltd.		700		12,205
Cosmo Oil Co., Ltd.		6,000		15,272
Credit Saison Co., Ltd.		1,000		22,234
Dai Nippon Printing Co., Ltd.		3,000		23,502
Daicel Chemical Industries Ltd.		2,000		12,303
Daido Steel Co., Ltd.		2,000		12,463
Daihatsu Motor Co., Ltd.		1,000		17,507


	Number of Shares		Value†

Japan — (continued)
Daiichi Sankyo Co., Ltd.		4,300	$	72,506
Daikin Industries Ltd.		1,600		45,060
Dainippon Sumitomo Pharma Co., Ltd.		1,400		14,304
Daito Trust Construction Co., Ltd.		500		47,396
Daiwa House Industry Co., Ltd.		3,000		42,555
Daiwa Securities Group, Inc.		11,000		41,456
Dena Co., Ltd.		700		18,425
Denki Kagaku Kogyo KK		4,000		13,983
Denso Corp.		3,300		112,764
Dentsu, Inc.		1,300		38,533
East Japan Railway Co.		2,200		138,141
Eisai Co., Ltd.		1,600		70,066
Electric Power Development Co., Ltd.		1,000		26,279
FamilyMart Co., Ltd.		500		22,884
FANUC Corp., Ltd.		1,300		213,695
Fast Retailing Co., Ltd.		400		80,037
Fuji Electric Holdings Co., Ltd.		4,000		9,758
Fuji Heavy Industries Ltd.		4,000		32,408
FUJIFILM Holdings Corp.		2,800		53,049
Fujitsu Ltd.		12,000		57,429
Fukuoka Financial Group, Inc.		6,000		23,430
Furukawa Electric Co., Ltd.*		4,000		9,461
Gree, Inc.		800		15,914
GS Yuasa Corp.		2,000		9,144
Gunma Bank Ltd.		3,000		14,194
Hakuhodo Dy Holdings, Inc.		250		16,590
Hamamatsu Photonics KK		500		16,963
Hankyu Hanshin Holdings, Inc.		8,000		40,400
Hino Motors Ltd.		2,000		14,476
Hirose Electric Co., Ltd.		200		19,798
Hitachi Chemical Co., Ltd.		1,000		15,754
Hitachi Construction Machinery Co., Ltd.		1,000		18,886
Hitachi High-Technologies Corp.		500		12,312
Hitachi Ltd.		31,000		191,141
Hitachi Metals Ltd.		1,000		11,934
Hitamitsu Pharmaceutical Co., Ltd.		400		19,686
Hokkaido Electric Power Co., Inc.		900		11,632
Hokuriku Electric Power Co.		1,200		18,686
Honda Motor Co., Ltd.		10,900		380,361
Hoya Corp.		2,900		63,887
IBIDEN Co., Ltd.		500		9,057
Idemitsu Kosan Co., Ltd.		100		8,970
IHI Corp.		9,000		19,251
INPEX Holdings, Inc.		15		84,248
Isetan Mitsukoshi Holdings Ltd.		2,500		26,561
Isuzu Motors Ltd.		8,000		42,851
ITOCHU Corp.		10,600		111,413
Itochu Technology Solutions Corp.		300		14,479
J. Front Retailing Co., Ltd.		4,000		20,106
Japan Petroleum Exploration Co.		300		11,422
Japan Prime Realty Investment Corp.		5		14,074
Japan Real Estate Investment Corp.		3		27,506
Japan Retail Fund Investment Corp.		10		15,863
Japan Tobacco, Inc.		6,200		183,679
JFE Holdings, Inc.		2,900		48,538
JGC Corp.		2,000		57,983
Joyo Bank Ltd.		4,000		18,201
JS Group Corp.		1,800		37,988

124

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
JSR Corp.		900	$	15,616
JTEKT Corp.		1,500		15,530
Jupiter Telecommunications Co., Ltd.		12		12,235
JX Holdings, Inc.		13,890		71,589
Kajima Corp.		7,000		20,551
Kamigumi Co., Ltd.		1,000		7,955
Kaneka Corp.		2,000		11,061
Kansai Paint Co., Ltd.		2,000		21,432
Kao Corp.		3,700		102,040
Kawasaki Heavy Industries Ltd.		9,000		24,682
Kawasaki Kisen Kaisha Ltd.		4,000		7,945
KDDI Corp.		19		122,567
Keihin Electric Express Railway Co., Ltd.		4,000		36,394
Keio Corp.		3,000		21,744
Keisei Electric Railway Co., Ltd.		2,000		16,895
Keyence Corp.		341		84,354
Kikkoman Corp.		1,000		12,361
Kinden Corp.		1,000		6,549
Kintetsu Corp.		13,000		51,831
Kirin Holdings Co., Ltd.		6,000		70,716
Kobe Steel Ltd.		18,000		21,653
Koito Manufacturing Co. Ltd.		1,000		14,012
Komatsu Ltd.		6,200		148,002
Konami Corp.		600		13,595
Konica Minolta Holdings, Inc.		3,000		23,634
Kubota Corp.		8,000		73,931
Kuraray Co., Ltd.		2,400		31,103
Kurita Water Industries Ltd.		800		18,505
Kyocera Corp.		1,100		95,194
Kyowa Hakko Kirin Co., Ltd.		2,000		20,598
Kyushu Electric Power Co., Inc.		2,800		33,217
Lawson, Inc.		400		27,973
Mabuchi Motor Co., Ltd.		200		7,972
Makita Corp.		700		24,556
Marubeni Corp.		11,000		73,292
Marui Group Co., Ltd.		1,500		11,472
Maruichi Steel Tube Ltd.		300		6,457
Mazda Motor Corp.*		20,000		27,235
McDonald’s Holdings Co. (Japan), Ltd.		700		19,702
Medipal Holdings Corp.		1,500		21,248
MEIJI Holdings Co., Ltd.		500		22,960
Miraca Holdings, Inc.		400		16,607
Mitsubishi Chemical Holdings Corp.		9,500		41,879
Mitsubishi Corp.		9,300		187,993
Mitsubishi Electric Corp.		13,000		108,764
Mitsubishi Estate Co., Ltd.		9,000		161,467
Mitsubishi Gas Chemical Co., Inc.		3,000		17,055
Mitsubishi Heavy Industries Ltd.		21,000		85,368
Mitsubishi Logistics Corp		1,000		10,574
Mitsubishi Materials Corp.		7,000		20,299
Mitsubishi Motors Corp.*		21,000		21,176
Mitsubishi Tanabe Pharma Corp.		1,900		27,321
Mitsubishi UFJ Financial Group, Inc.		85,200		408,183
Mitsubishi UFJ Lease & Finance Co., Ltd.		460		19,134
Mitsui & Co., Ltd.		11,600		172,374
Mitsui Chemicals, Inc.		5,000		12,521


	Number of Shares		Value†

Japan — (continued)
Mitsui Fudosan Co., Ltd.		6,000	$	116,417
Mitsui OSK Lines Ltd.		6,000		21,629
Mizuho Financial Group, Inc.		151,280		255,549
MS&AD Insurance Group Holdings, Inc.		3,490		61,059
Murata Manufacturing Co., Ltd.		1,400		73,641
Nabtesco Corp.		700		15,613
Namco Bandai Holdings, Inc.		1,700		23,313
NEC Corp.		18,000		28,008
Nexon Co. Ltd.*		1,100		21,534
NGK Insulators Ltd.		2,000		22,147
NGK Spark Plug Co., Ltd.		1,000		13,208
NHK Spring Co., Ltd.		1,200		12,959
Nidec Corp.		700		53,224
Nikon Corp.		2,300		70,014
Nintendo Co., Ltd.		700		81,747
Nippon Building Fund, Inc.		4		38,675
Nippon Electric Glass Co., Ltd.		2,000		11,945
Nippon Express Co., Ltd.		5,000		20,647
Nippon Meat Packers, Inc.		1,000		13,237
Nippon Paper Group, Inc.		800		12,700
Nippon Steel Corp.		33,000		74,850
Nippon Telegraph & Telephone Corp.		2,900		135,229
Nippon Yusen K.K.		13,000		34,383
Nissan Motor Co., Ltd.		16,900		160,478
Nisshin Seifun Group, Inc.		1,500		17,561
Nisshin Steel Co., Ltd.		2,000		2,807
Nissin Food Products Co., Ltd.		500		19,014
Nitori Holdings Co., Ltd.		300		28,368
Nitto Denko Corp.		1,200		51,414
NKSJ Holdings, Inc.		2,625		55,881
NOK Corp.		1,000		21,351
Nomura Holdings, Inc.		24,900		93,090
Nomura Real Estate Holdings, Inc.		1,000		18,312
Nomura Real Estate Office Fund, Inc.		2		11,283
Nomura Research Institute Ltd.		1,000		22,006
NSK Ltd.		3,000		19,438
NTN Corp.		4,000		12,592
NTT Data Corp.		10		30,693
NTT DoCoMo, Inc.		99		164,736
Obayashi Corp.		4,000		17,565
Odakyu Electric Railway Co., Ltd.		4,000		39,769
Oji Paper Co., Ltd.		6,000		22,989
Olympus Corp.*		1,500		24,307
Omron Corp.		1,600		33,907
Ono Pharmaceutical Co., Ltd.		600		37,704
Oracle Corp. Japan		200		8,609
Oriental Land Co., Ltd.		300		34,303
ORIX Corp.		680		63,373
Osaka Gas Co., Ltd.		12,000		50,277
Otsuka Corp.		100		8,513
Otsuka Holdings Co., Ltd.		2,400		73,669
Panasonic Corp.		15,500		126,710
Rakuten, Inc.		4,600		47,558
Resona Holdings, Inc.		12,500		51,495
Ricoh Co., Ltd.		5,000		42,198
Rinnai Corp.		300		20,700
Rohm Co., Ltd.		500		19,267
Sankyo Co., Ltd.		400		19,520

125

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Sanrio Co., Ltd.		300	$	10,937
Santen Pharmaceutical Co., Ltd.		600		24,657
SBI Holdings, Inc.		101		7,505
Secom Co., Ltd.		1,400		64,203
Sega Sammy Holdings, Inc.		1,200		24,410
Seiko Epson Corp.		800		8,118
Sekisui Chemical Co., Ltd.		3,000		27,872
Sekisui House Ltd.		4,000		37,768
Seven & I Holdings Co., Ltd.		4,900		147,712
Seven Bank Ltd.		5,300		13,610
Sharp Corp.		7,000		35,665
Shikoku Electric Power Co., Inc.		1,300		27,635
Shimadzu Corp.		1,000		8,653
Shimamura Co., Ltd.		200		23,111
Shimano, Inc.		500		32,781
Shimizu Corp.		5,000		17,347
Shin-Etsu Chemical Co., Ltd.		2,800		154,190
Shinsei Bank Ltd.		9,000		10,949
Shionogi & Co., Ltd.		1,800		24,474
Shiseido Co., Ltd.		2,400		37,871
Showa Denko K.K.		9,000		17,485
Showa Shell Sekiyu K.K.		500		3,069
SMC Corp.		400		69,351
Softbank Corp.		5,900		219,620
Sojitz Corp.		9,400		15,553
Sony Corp.		6,800		97,235
Sony Financial Holdings, Inc.		1,200		19,586
Square Enix Holdings Co., Ltd.		400		6,300
Stanley Electric Co., Ltd.		1,300		20,189
SUMCO Corp.*		1,000		9,097
Sumitomo Chemical Co., Ltd.		9,000		27,665
Sumitomo Corp.		7,500		104,939
Sumitomo Electric Industries Ltd.		4,700		58,566
Sumitomo Heavy Industries Ltd.		3,000		13,509
Sumitomo Metal Industries Ltd.		22,000		36,291
Sumitomo Metal Mining Co., Ltd.		3,000		33,807
Sumitomo Mitsui Financial Group, Inc.		9,000		297,314
Sumitomo Mitsui Trust Holdings, Inc.		20,430		61,058
Sumitomo Realty & Development Co., Ltd.		3,000		73,789
Sumitomo Rubber Industries Ltd.		1,200		15,630
Suruga Bank Ltd.		1,000		10,242
Suzuken Co., Ltd.		400		13,503
Suzuki Motor Corp.		2,800		57,492
Sysmex Corp.		400		15,819
T&D Holdings, Inc.		3,900		41,546
Taiheiyo Cement Corp.		7,000		16,074
Taisei Corp.		8,000		21,442
Taisho Pharmaceutical Holdings Co., Ltd.		300		25,370
Taiyo Nippon Sanso Corp.		1,000		5,843
Takashimaya Co., Ltd.		1,000		7,686
Takeda Pharmaceutical Co., Ltd.		5,200		236,090
TDK Corp.		900		36,638
Teijin Ltd.		6,000		18,265
Terumo Corp.		1,100		45,206
The Bank of Kyoto Ltd.		3,000		22,730


	Number of Shares		Value†

Japan — (continued)
The Bank of Yokohama Ltd.		7,000	$	33,097
The Chiba Bank Ltd.		5,000		30,033
The Chugoku Bank Ltd.		1,000		13,032
The Chugoku Electric Power Co., Inc.		2,100		34,635
The Dai-ichi Life Insurance Co., Ltd.		60		69,488
The Hachijuni Bank Ltd.		4,000		20,793
The Iyo Bank Ltd.		1,000		7,986
The Japan Steel Works Ltd.		2,000		11,042
The Kansai Electric Power Co., Inc.		4,800		57,564
The Nishi-Nippon City Bank Ltd.		7,000		16,995
The Shizuoka Bank Ltd.		4,000		41,157
THK Co., Ltd.		1,000		18,905
Tobu Railway Co., Ltd.		7,000		36,802
Toho Co., Ltd.		900		15,570
Toho Gas Co., Ltd.		3,000		18,619
Tohoku Electric Power Co., Inc.		2,500		25,119
Tokio Marine Holdings, Inc.		4,900		122,956
Tokyo Electric Power Co., Inc.*		7,100		13,743
Tokyo Electron Ltd.		1,100		51,584
Tokyo Gas Co., Ltd.		16,000		81,776
Tokyu Corp.		8,000		37,658
Tokyu Land Corp.		3,000		14,891
TonenGeneral Sekiyu K.K.		2,000		17,783
Toppan Printing Co., Ltd.		4,000		26,719
Toray Industries, Inc.		9,000		61,370
Toshiba Corp.		27,000		102,772
Tosoh Corp.		6,000		16,363
TOTO Ltd.		2,000		14,913
Toyo Seikan Kaisha Ltd.		1,000		12,136
Toyo Suisan Kaisha Ltd.		1,000		26,667
Toyoda Gosei Co., Ltd.		400		9,221
Toyota Industries Corp.		1,200		34,405
Toyota Motor Corp.		18,700		754,774
Toyota Tsusho Corp.		1,100		21,027
Trend Micro, Inc.		500		14,730
Tsumura & Co.		200		5,297
Ube Industries Ltd.		7,000		16,282
Unicharm Corp.		800		45,537
Ushio, Inc.		700		8,676
USS Co., Ltd.		110		11,869
West Japan Railway Co.		1,000		41,138
Yahoo! Japan Corp.		106		34,319
Yakult Honsha Co., Ltd.		600		23,497
Yamada Denki Co., Ltd.		540		27,647
Yamaguchi Financial Group, Inc.		1,000		8,819
Yamaha Corp.		1,600		16,465
Yamaha Motor Co., Ltd.		1,400		13,406
Yamato Holdings Co., Ltd.		2,800		45,085
Yamato Kogyo Co., Ltd.		300		8,355
Yamazaki Baking Co., Ltd.		1,000		13,095
Yaskawa Electric Corp.		2,000		15,237
Yokogawa Electric Corp.		2,000		20,677

				14,371,775

126

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Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS —(continued)
Jersey — 0.1%
Randgold Resources Ltd.		592	$	53,151

Luxembourg — 0.4%
ArcelorMittal		6,745		103,195
Millicom International Cellular S.A.		489		46,150
SES S.A.		2,033		48,068
Tenaris S.A.		3,479		61,181

				258,594

Mexico — 0.0%
Fresnillo Plc		1,200		27,487

Netherlands — 4.8%
Aegon N.V.*		11,510		53,379
Akzo Nobel N.V.		1,530		72,009
ASML Holding N.V.		2,806		144,106
Corio N.V.		312		13,737
Delta Lloyd N.V.		819		11,390
European Aeronautic Defence & Sapce Co. N.V.		2,765		98,132
Fugro N.V.		506		30,693
Gemalto N.V.		526		37,779
Heineken Holdings N.V.		748		33,504
Heineken N.V.		1,679		87,554
ING Groep N.V.*		25,387		170,197
Koninklijke Ahold N.V.		7,594		94,069
Koninklijke Boskalis Westminster N.V.		452		14,915
Koninklijke DSM N.V.		936		46,144
Koninklijke KPN N.V.		9,600		91,795
Koninklijke Philips Electronics N.V.		6,966		137,270
Koninklijke Vopak N.V.		370		23,733
QIAGEN N.V.*		1,189		19,909
Randstad Holding N.V.		866		25,536
Reed Elsevier N.V.		4,586		52,319
Royal Dutch Shell Plc, A Shares		25,033		843,434
Royal Dutch Shell Plc, B Shares		18,116		632,677
SBM Offshore N.V.*		1,230		17,046
TNT Express N.V.		1,885		22,112
Unilever N.V.		10,922		364,855
Wolters Kluwer N.V.		2,234		35,520

				3,173,814

New Zealand — 0.1%
Auckland International Airport Ltd.		6,300		12,356
Contact Energy Ltd.*		2,919		11,294
Fletcher Building Ltd.		3,438		16,273
SKYCITY Entertainment Group Ltd.		4,623		12,629
Telecom Corp. of New Zealand Ltd.		13,589		25,875

				78,427

Norway — 0.7%
Aker Solutions ASA		800		11,351
DnB NOR ASA		6,092		60,576
Gjensidige Forsikring ASA		1,418		16,521
Norsk Hydro ASA		6,555		29,561
Orkla ASA		5,338		38,738


	Number of Shares		Value†

Norway — (continued)
StatoilHydro ASA		7,235	$	172,544
Telenor ASA		4,615		77,155
Veripos, Inc.~		195		0
Yara International ASA		1,267		55,446

				461,892

Portugal — 0.1%
Banco Espirito Santo S.A.		10,681		7,303
Energias de Portugal S.A.		12,468		29,494
Galp Energia SGPS, S.A., B Shares		1,326		16,811
Jeronimo Martins SGPS S.A.		1,200		20,288
Portugal Telecom SGPS, S.A.		4,543		19,897

				93,793

Singapore — 1.7%
Ascendas Real Estate Investment Trust		15,000		25,589
CapitaLand Ltd.		17,000		36,655
Capitamall Trust Management Ltd.		14,700		22,266
CapitaMalls Asia Ltd.		7,000		8,731
City Developments Ltd.		3,000		26,742
ComfortDelGro Corp. Ltd.		14,000		17,144
DBS Group Holdings Ltd.		12,107		133,730
Fraser & Neave Ltd.		6,000		33,410
Global Logistic Properties Ltd.		15,000		24,971
Golden Agri-Resources Ltd.		42,000		22,431
Hutchison Port Holdings Trust		35,100		24,921
Jardine Cycle & Carriage Ltd.		1,000		36,856
Keppel Corp. Ltd.		9,600		78,648
Keppel Land Ltd.		5,431		13,976
Olam International Ltd.		10,179		14,743
Oversea-Chinese Banking Corp. Ltd.		18,133		126,802
SembCorp Industries Ltd.		6,000		24,559
SembCorp Marine Ltd.		7,000		26,720
Singapore Airlines Ltd.		4,000		32,984
Singapore Exchange Ltd.		5,000		25,119
Singapore Press Holdings Ltd.		11,000		33,981
Singapore Technologies Engineering Ltd.		12,000		29,583
Singapore Telecommunications Ltd.		51,000		133,557
Starhub, Ltd.		5,000		13,552
United Overseas Bank Ltd.		8,345		123,919
UOL Group Ltd.		4,000		15,680
Wilmar International Ltd.		13,000		37,484

				1,144,753

Spain — 2.6%
Abertis Infraestructuras S.A.		2,542		34,354
Abertis Infraestructuras S.A.*~		127		1,711
Acciona S.A.		126		7,532
Acerinox S.A.		263		2,947
ACS Actividades de Construccion y Servicios S.A.		740		15,851
Amadeus IT Holding S.A.		2,087		44,216
Banco Bilbao Vizcaya Argentaria, Chile S.A.		30,921		220,818
Banco de Sabadell S.A.		13,619		26,449
Banco Popular Espanol 1 -12~		331		747
Banco Popular Espanol S.A.		6,965		15,754
Banco Santander S.A.		64,141		424,310
Bankia S.A.*		4,904		5,738

127

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Spain — (continued)
Caixabank I -12 Shares~		154	$	499
Criteria CaixaCorp S.A.		6,815		22,188
Distribuidora Internacional de Alimentacion S.A.		3,038		14,284
Enagas S.A.		1,161		21,184
Ferrovial S.A.		3,335		37,611
Gas Natural SDG S.A.		1,984		25,474
Grifols S.A.*		1,270		32,174
Iberdrola S.A.		25,252		119,221
Inditex S.A.		1,523		157,426
Mapfre S.A.		5,533		11,256
Red Electrica de Espana S.A.		686		29,941
Repson YPF S.A.		5,162		82,980
Telefonica S.A.		28,556		375,896
Zardoya Otis S.A.		1,360		15,119

				1,745,680

Sweden — 2.9%
Alfa Laval AB		1,900		32,556
Assa Abloy AB, B Shares		2,037		56,885
Atlas Copco AB, A Shares		4,329		93,164
Atlas Copco AB, B Shares		2,290		43,636
Boliden AB		1,883		26,275
Electrolux AB, B Shares		1,462		29,094
Elekta AB		608		27,783
Getinge AB, B Shares		1,453		36,056
Hennes & Mauritz AB, B Shares		6,304		226,275
Hexagon AB, B Shares		1,466		25,164
Holmen AB		500		13,614
Husqvarna AB, B Shares		2,834		13,367
Industrivarden AB		1,227		15,809
Investment AB Kinnevik, B Shares		1,200		24,087
Investor AB, B Shares		3,046		58,158
Lundin Petroleum AB*		1,393		26,077
Modern Times Group AB, B Shares		200		9,257
Nordea Bank AB		17,075		147,151
Ratos AB, B Shares		1,400		13,294
Sandvik AB		6,508		83,463
Scania AB, B Shares		2,380		40,787
Securitas AB, B Shares		1,984		15,427
Skandinaviska Enskilda Banken AB, A Shares		9,468		61,490
Skanska AB, B Shares		2,722		41,713
SKF AB, B Shares		2,481		48,905
Ssab Svenskt Stal AB, A Shares		1,400		11,636
Svenska Cellulosa AB, B Shares		4,140		62,114
Svenska Handelsbanken AB, A Shares		3,276		107,701
Swedbank AB, A Shares		5,589		88,049
Swedish Match AB		1,543		62,192
Tele2 AB, B Shares		2,200		34,088
Telefonaktiebolaget LM Ericsson, B Shares		20,085		183,772
TeliaSonera AB		13,846		88,458
Volvo AB, B Shares		8,801		100,626

				1,948,123


	Number of Shares		Value†

Switzerland — 8.5%
ABB Ltd.*		14,750	$	240,841
Actelion Ltd.*		616		25,337
Adecco S.A.*		883		39,267
Aryzta AG*		492		24,489
Baloise Holding AG		303		20,018
Banque Cantonale Vaudoise		32		16,959
Barry Callebaut AG*		11		10,007
Compagnie Financiere Richemont SA		3,630		199,322
Credit Suisse Group AG*		7,897		144,492
GAM Holding Ltd.*		1,619		18,075
Geberit AG*		256		50,503
Givaudan S.A.*		52		51,036
Glencore International Plc		8,976		41,623
Holcim Ltd.*		1,558		86,322
Julius Baer Group Ltd.*		1,367		49,563
Kuehne + Nagel International AG		317		33,584
Lindt & Spruengli AG*		1		36,724
Lindt & Spruengli AG, Participation Certificates*		7		21,634
Lonza Group AG*		223		9,278
Nestle SA		22,343		1,333,383
Novartis AG		15,616		873,111
Pargesa Holding S.A.		223		13,276
Partners Group Holding AG		84		14,940
Roche Holding AG		4,772		824,282
Schindler Holding AG		145		16,352
Schindler Holding AG, Participation Certificates		341		38,126
SGS S.A.		35		65,624
Sika AG*		15		28,965
Sonova Holding AG*		319		30,855
STMicroelectronics N.V.		4,919		26,768
Straumann Holding AG		19		2,794
Sulzer AG		151		17,903
Swiss Life Holding AG*		175		16,494
Swiss Prime Site AG*		325		27,109
Swiss Re Ltd.*		2,480		156,344
Swisscom AG		152		61,238
Syngenta AG		630		215,665
The Swatch Group AG		204		80,629
The Swatch Group AG, Registered Shares		282		19,619
UBS AG*		24,447		286,083
Xstrata Plc		14,013		176,191
Zurich Financial Services AG*		966		218,436

				5,663,261

United Kingdom — 19.6%
3i Group Plc		4,517		13,967
Aberdeen Asset Management Plc		5,701		23,220
Admiral Group Plc		1,092		20,370
Aggreko Plc		1,801		58,570
AMEC Plc		2,494		39,316
Anglo American Plc		8,991		295,491
Antofagasta Plc		2,513		42,987
ARM Holdings Plc		8,680		68,768
Associated British Foods Plc		2,553		51,370
AstraZeneca Plc		8,476		378,772
Aviva Plc		19,465		83,348

128

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
United Kingdom — (continued)
Babcock International Group Plc		1,997	$	26,746
BAE Systems Plc		21,719		98,466
Balfour Beatty Plc		4,201		19,643
Barclays Plc		77,421		197,830
BG Group Plc		22,600		462,654
BHP Billiton Plc		14,129		401,579
BP Plc		128,834		860,377
British American Tobacco Plc		13,393		680,898
British Land Co. Plc		6,570		52,609
British Sky Broadcasting Group Plc		7,355		80,183
BT Group Plc		52,408		173,655
Bunzl Plc		2,227		36,400
Burberry Group Plc		3,180		66,210
Carnival Plc		1,274		43,559
Centrica Plc		33,554		167,768
Cobham Plc		8,466		30,843
Compass Group Plc		13,394		140,597
Croda International Plc		898		31,906
Diageo Plc		16,898		435,545
Eurasian Natural Resources Corp.		1,476		9,633
Evraz Plc		3,717		15,244
G4S Plc		8,409		36,751
GKN Plc		10,137		28,740
GlaxoSmithKline Plc		33,745		766,483
Hammerson Plc		5,215		36,219
HSBC Holdings Plc		122,051		1,075,491
ICAP Plc		3,290		17,415
Imi Plc		2,132		27,853
Imperial Tobacco Group Plc		6,709		258,485
Inmarsat Plc		3,494		26,964
Intercontinental Hotels Group Plc		2,014		48,486
International Consolidated Airlines Group SA*		6,233		15,622
Intertek Group Plc		932		39,047
Invensys Plc		4,412		15,377
Investec Plc		3,627		21,173
ITV Plc		22,089		26,579
J. Sainsbury Plc		6,914		32,676
Johnson Matthey Plc		1,505		52,193
Kazakhmys Plc		1,454		16,485
Kingfisher Plc		15,956		71,978
Land Securities Group Plc		4,946		57,304
Legal & General Group Plc		37,514		75,000
Liberty International Plc		3,734		18,864
Lloyds Banking Group Plc*		272,213		132,978
London Stock Exchange Group Plc		1,386		21,880
Lonmin Plc		1,129		13,734
Man Group Plc		8,839		10,576
Marks & Spencer Group Plc		10,596		54,036
Meggitt Plc		4,952		29,965
National Grid Plc		24,307		257,606
Next Plc		1,167		58,597
Old Mutual Plc		30,757		73,148
Pearson Plc		5,413		107,403


	Number of Shares		Value†

United Kingdom — (continued)
Petrofac Ltd.		1,906	$	41,603
Prudential Plc		17,739		205,683
Reckitt Benckiser Group Plc		4,456		235,530
Reed Elsevier Plc		8,010		64,201
Rexam Plc		6,154		40,616
Rio Tinto Plc		8,940		424,860
Rolls-Royce Holdings Plc*		12,468		168,040
Royal Bank of Scotland Group Plc*		15,687		53,137
RSA Insurance Group Plc		27,278		46,307
SABMiller Plc		6,315		253,365
Schroders Plc		469		9,831
Scottish & Southern Energy Plc		6,263		136,630
Segro Plc		3,384		11,529
Serco Group Plc		3,127		26,261
Severn Trent Plc		1,688		43,758
Smith & Nephew Plc		5,964		59,655
Smiths Group Plc		2,700		42,880
Standard Chartered Plc		15,829		343,852
Standard Life Plc		16,660		60,999
Subsea 7 SA		1,946		38,512
Tate & Lyle Plc		2,925		29,706
TESCO Plc		54,004		262,449
The Capita Group Plc		4,147		42,613
The Sage Group Plc		9,331		40,611
The Weir Group Plc		1,436		34,507
TUI Travel Plc		1,308		3,477
Tullow Oil Plc		5,873		135,740
Unilever Plc		8,563		287,491
United Utilities Group Plc		4,841		51,282
Vedanta Resources Plc		511		7,324
Vodafone Group Plc		338,066		950,219
Whitbread Plc		1,256		39,935
WM Morrison Supermarkets Plc		14,652		61,139
Wolseley Plc		2,016		75,141
WPP Group Plc		8,141		98,829

				13,061,344

United States — 0.1%
Transocean Ltd.		2,097		93,799

TOTAL COMMON STOCKS (Cost $66,853,853)				64,769,494

PREFERRED STOCKS — 0.5%
Germany — 0.5%
Bayerische Motoren Werke AG		500		24,664
Henkel AG & Co. KGaA		1,172		77,875
Porsche Automobil Holding SE		1,017		50,589
ProSiebenSat.1 Media AG		587		13,159
RWE AG NV		206		7,649
Volkswagen AG		987		156,369

				330,305

129

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


	Number of Shares		Value†
PREFERRED STOCKS — (continued)
United Kingdom — 0.0%
Rolls-Royce Holdings Plc, Class C*~		1,257,690	$	1,970

TOTAL PREFERRED STOCKS (Cost $290,517)				332,275

RIGHTS — 0.0%
Spain — 0.0%
Zardoya Otis SA*		1,360		735
Repsol YPF SA*		5,162		3,620

TOTAL RIGHTS (Cost $3,599)				4,355

WARRANTS — 0.0%
Belgium — 0.0%
Anheuser-Busch InBev N.V.* 07/31/12 (Cost $0)		256		0

SHORT-TERM INVESTMENTS — 2.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,654,272)		1,654,272		1,654,272

TOTAL INVESTMENTS — 100.0% (Cost $68,802,241)			$	66,760,396

†	See Security Valuation Note.

*	Non-income producing security.

~	Fair valued security. The total market value of fair valued securities at June 30, 2012 is $9,325.

ADR — American Depository Receipt.

LP — Limited Partnership.

NVDR — Non Voting Depositary Receipt.

Plc — Public Limited Company.

PPS — Partially Protected Shares.


COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Advertising		0.2	%	$	105,104
Aerospace & Defense		0.6	%		390,203
Agriculture		1.9	%		1,245,169
Airlines		0.2	%		104,128
Apparel		0.4	%		263,690
Auto Manufacturers		3.5	%		2,253,468
Auto Parts & Equipment		1.0	%		662,187
Banks		13.1	%		8,480,705
Beverages		2.6	%		1,672,204
Biotechnology		0.3	%		185,283
Building Materials		1.1	%		722,670
Chemicals		3.8	%		2,485,861
Coal*		—	%+		12,751


COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Commercial Services		1.5	%	$	938,167
Computers		0.4	%		259,463
Cosmetics & Personal Care		0.6	%		417,424
Distribution & Wholesale		1.3	%		872,166
Diversified		—	%+		25,589
Diversified Financial Services		1.2	%		784,384
Diversified Operations		0.2	%		155,335
Electric		3.1	%		2,009,873
Electrical Components & Equipment		1.1	%		698,349
Electronics		1.2	%		772,217
Energy-Alternate Sources		—	%+		20,835
Engineering & Construction		1.4	%		883,294
Entertainment		0.2	%		143,588
Environmental Control		—	%+		18,505
Food		5.6	%		3,636,251
Food Service		0.2	%		140,597
Forest Products & Paper		0.3	%		169,838
Gas		0.7	%		481,367
Hand & Machine Tools		0.4	%		260,511
Healthcare Products		0.9	%		555,885
Healthcare Services		0.2	%		152,393
Holding Companies		0.9	%		611,800
Home Builders		0.2	%		108,195
Home Furnishings		0.4	%		288,704
Hotels & Resorts		0.1	%		73,636
Household Products & Wares		0.5	%		326,305
Industrial		0.3	%		168,040
Insurance		4.6	%		2,950,377
Internet		0.3	%		163,777
Investment Companies		0.3	%		207,934
Iron & Steel		0.7	%		466,909
Leisure Time		0.2	%		134,098
Lodging		0.5	%		289,797
Machinery - Construction & Mining		0.5	%		303,688
Machinery - Diversified		1.1	%		729,806
Media		1.2	%		763,945
Metal Fabricate/Hardware		0.5	%		301,575
Mining		4.3	%		2,793,102
Miscellaneous Manufacturing		1.2	%		807,274
Mixed Industrial/Office		0.6	%		415,197
Office & Business Equipment		0.5	%		353,636
Oil & Gas		7.7	%		5,002,952
Oil & Gas Services		0.5	%		301,322
Packaging and Containers		0.2	%		106,415
Pharmaceuticals		8.2	%		5,304,506
Pipelines		—	%+		18,085
Real Estate		1.8	%		1,147,352
Real Estate Investment Trusts		0.5	%		330,759
Retail		2.7	%		1,734,244
Semiconductors		0.6	%		387,933
Shipbuilding		0.1	%		41,957
Software		0.9	%		566,615
Storage & Warehousing		—	%+		10,574
Strip Centers		0.4	%		226,116
Telecommunications		5.9	%		3,813,413
Textiles		0.2	%		110,738
Toys, Games & Hobbies		0.2	%		115,997
Transportation		1.8	%		1,147,247

130

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Developed International Index Fund


COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Venture Capital		—	%+	$	13,967
Water		0.2	%		152,053

		100.0	%	$	64,769,494

Rounded.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012			Level 1 Quoted Price			Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
COMMON STOCKS		$	64,769,494		$	171,487		$	64,598,007		$	—
PREFERRED STOCKS			332,275			—			332,275			—
SHORT-TERM INVESTMENTS			1,654,272			1,654,272			—			—
RIGHTS			4,355			—			4,355			—

TOTAL INVESTMENTS		$	66,760,396		$	1,825,759		$	64,934,637		$	—

Following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Investments in Securities (Market Value)
Balance as of 12/31/2011	$	1,210
Sales		(1,200	)
Realized Gain (Loss)		(39	)
Change in Appreciation (Depreciation)		29

Balance as of 6/30/2012	$	—

It is the Fund’s policy to recognize transfers in and transfers in and transfers out at the fair value as of the beginning of period. The Fund did not have any transfers in and transfers out of the level 2 or level 3 fair value hierarchies during the reporting period.

The accompanying notes are an integral part of these financial statements.

131

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

International Equity Fund


	Number of Shares		Value†
COMMON STOCKS — 99.5%
Australia — 2.6%
Coca-Cola Amatil Ltd.		312,633	$	4,296,332
Newcrest Mining Ltd.		176,147		4,099,133

				8,395,465

Belgium — 3.0%
Anheuser-Busch InBev NV		123,544		9,740,384

Brazil — 2.5%
AES Tiete S.A. (Preference)		188,499		2,684,128
Cia Energetica de Minas Gerais ADR		157,211		2,895,827
Souza Cruz SA		174,939		2,541,558

				8,121,513

Canada — 5.5%
Goldcorp, Inc.		166,880		6,282,792
Valeant Pharmaceuticals International, Inc.*		257,194		11,537,226

				17,820,018

China — 2.5%
Baidu, Inc. ADR*		23,747		2,730,430
Sands China Ltd.		1,739,522		5,596,089

				8,326,519

Colombia — 1.1%
Ecopetrol SA		66,280		3,697,761

Denmark — 3.6%
Novo Nordisk A/S, B Shares		82,039		11,898,680

France — 6.3%
Bureau Veritas SA		77,886		6,928,795
Cie Generale d’Optique Essilor International SA		69,456		6,452,462
Hermes International		4,195		1,288,885
Pernod-Ricard SA		53,821		5,755,207

				20,425,349

Germany — 2.1%
SAP AG		114,437		6,776,450

Hong Kong — 1.5%
L’Occitane International SA		904,023		2,508,931
Wynn Macau Ltd.		1,077,427		2,542,409

				5,051,340

India — 13.0%
HDFC Bank Ltd.		1,181,910		12,038,122
HDFC Bank Ltd. ADR		13,291		433,286
Hindustan Unilever Ltd.		166,500		1,359,641
Housing Development Finance Corp.		1,162,827		13,712,229
ITC Ltd.		1,946,174		9,062,700
Nestle India Ltd.		34,248		2,787,613
Tata Consultancy Services Ltd.		133,600		3,083,114

				42,476,705

Ireland — 1.7%
Paddy Power PLC		83,742		5,460,752


	Number of Shares		Value†

Japan — 2.2%
Daito Trust Construction Co., Ltd.		38,100	$	3,611,579
Nitori Holdings Co., Ltd.		36,850		3,484,495

				7,096,074

Mexico — 2.5%
Fresnillo Plc		200,822		4,600,004
Wal-Mart de Mexico S.A.B de C.V., Series V		1,295,633		3,466,430

				8,066,434

Netherlands — 8.2%
Core Laboratories N.V.		62,087		7,195,884
Royal Dutch Shell Plc		133,643		4,510,552
Unilever N.V.		451,524		15,083,394

				26,789,830

Switzerland — 8.9%
DKSH Holding AG*		48,800		2,673,550
Lindt & Spruengli AG, Participation Certificates*		1,772		5,476,409
Nestle SA		230,710		13,768,281
UBS AG*		618,722		7,240,394

				29,158,634

United Kingdom — 25.3%
British American Tobacco Plc		417,512		21,226,247
Bunzl Plc		196,064		3,204,611
Diageo Plc		394,431		10,166,429
Domino’s Pizza UK & IRL Plc		561,807		4,530,026
GlaxoSmithKline Plc		103,633		2,353,918
HSBC Holdings Plc		912,664		8,042,226
Imperial Tobacco Group Plc		301,067		11,599,551
Rolls-Royce Holdings Plc — C Shares*~		40,290,494		63,101
Rolls-Royce Holdings Plc*		380,099		5,122,866
SABMiller Plc		250,337		10,043,807
Standard Chartered Plc		139,253		3,024,983
TESCO Plc		675,006		3,280,402

				82,658,167

United States — 7.0%
Philip Morris International, Inc.		262,646		22,918,490

TOTAL COMMON STOCKS (Cost $266,202,266)				324,878,565

SHORT-TERM INVESTMENTS — 0.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,554,311)		1,554,311		1,554,311

TOTAL INVESTMENTS — 100.0% (Cost $267,756,577)			$	326,432,876

†	See Security Valuation Note.

*	Non-income producing security.

~	Fair valued security. The total market value of fair valued securities at June 30, 2012 is $63,101.

ADR — American Depository Receipt.

Plc — Public Limited Company.

132

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

International Equity Fund


Country Weightings as of 06/30/2012††
United Kingdom	25	%
India	13
Switzerland	9
Netherlands	8
United States	8
Canada	6
France	6
Other	25

Total	100	%

† % of total investments as of June 30, 2012


COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Agriculture		20.7%	$	67,348,546
Apparel		0.4%		1,288,885
Banks		9.5%		30,779,011
Beverages		12.3%		40,002,159
Commercial Services		3.1%		10,133,406
Computers		1.0%		3,083,114
Cosmetics & Personal Care		0.8%		2,508,931
Diversified Financial Services		4.2%		13,712,229
Electric		1.7%		5,579,955
Entertainment		1.7%		5,460,752
Food		12.4%		40,396,099
Healthcare Products		2.0%		6,452,462
Household Products & Wares		0.4%		1,359,641
Industrial		3.5%		11,468,759
Internet		1.7%		5,403,980
Lodging		2.5%		8,138,498
Mining		2.7%		8,699,137
Oil & Gas		2.5%		8,208,313
Oil & Gas Services		2.2%		7,195,884
Pharmaceuticals		8.0%		25,789,824
Real Estate		1.1%		3,611,579
Retail		3.5%		11,480,951
Software		2.1%		6,776,450


		100.0%	$	324,878,565

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	324,878,565	$	69,057,362	$	255,821,203	$	—
SHORT-TERM INVESTMENTS		1,554,311		1,554,311		—		—

TOTAL INVESTMENTS	$	326,432,876	$	70,611,673	$	255,821,203	$	—

Following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Investments in Securities (Market Value)
Balance as of 12/31/2011	$	19,721
Sales		(20,207	)
Change in Appreciation/(Depreciation)		(486	)

Balance as of 6/30/2012		—

The accompanying notes are an integral part of these financial statements.

133

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Schedule of Investments — June 30, 2012 (Unaudited)

Emerging Markets Equity Fund


	Number of Shares		Value†
COMMON STOCKS — 96.2%
Brazil — 8.4%
Banco Bradesco S.A. (Preference)		85,600	$	1,269,616
BRF - Brasil Foods S.A.		104,200		1,569,355
BRF - Brasil Foods S.A. ADR		2,600		39,494
CIA de Bebidas das Americas ADR		52,500		2,012,325
Cielo S.A.		32,880		961,763
PDG Realty S.A. Empreendimentos e Participacoes		202,100		355,197
Petroleo Brasileiro S.A.		28,620		267,889
Petroleo Brasileiro S.A. (Preference)		61,500		556,363
Petroleo Brasileiro S.A. ADR		32,500		589,550
Petroleo Brasileiro S.A. ADR		37,200		698,244
Raia Drogasil S.A.		21,100		211,158
Ultrapar Participacoes S.A.		40,500		921,105
Vale S.A.		2,978		59,234
Vale S.A. ADR		17,600		349,360
Vale S.A. Preferred ADR		54,600		1,065,246

				10,925,899

Chile — 2.1%
Banco Santander Chile ADR		8,300		643,167
Cencosud S.A.		117,305		645,617
Empresa Nacional de Electricidad S.A.		312,130		529,421
Empresa Nacional de Electricidad S.A. ADR		1,500		76,545
S.A.C.I. Falabella		90,854		830,069

				2,724,819

China — 8.3%
China Construction Bank Corp., Class H		1,811,930		1,251,816
China Pacific Insurance Group Co. Ltd., Class H		348,000		1,135,656
China Telecom Corp. Ltd., Class H		2,480,000		1,088,584
China ZhengTong Auto Services Holdings Ltd.*		117,000		62,211
Hengan International Group Co. Ltd.		98,000		954,633
PetroChina Co. Ltd., Class H		1,116,000		1,444,396
Ping An Insurance Group Co. of China Ltd., Class H		165,000		1,334,167
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		390,100		490,355
Tencent Holdings Ltd.		74,900		2,211,893
Tingyi Cayman Islands Holding Corp.		136,000		350,391
Tsingtao Brewery Co. Ltd., Class H		94,000		537,142

				10,861,244

Cyprus — 0.3%
Eurasia Drilling Co. Ltd. GDR		17,910		456,705

Hong Kong — 2.5%
Ajisen China Holdings Ltd.		432,000		300,599
Belle International Holdings Ltd.		347,000		594,467
China Mengniu Dairy Co. Ltd.		610,000		1,615,277
China Resources Enterprise Ltd.		184,000		549,749
Chow Tai Fook Jewellery Group Ltd.		200,800		250,586

				3,310,678

Hungary — 0.8%
Richter Gedeon Nyrt		6,630		1,094,191


	Number of Shares		Value†

India — 7.9%
ACC Ltd.		32,737	$	747,291
Asian Paints Ltd.		9,258		646,274
Dr. Reddy’s Laboratories Ltd.		26,067		772,986
Glenmark Pharmaceuticals Ltd.		102,294		668,491
HDFC Bank Ltd.		129,552		1,319,528
HDFC Bank Ltd. ADR		3,730		121,598
IndusInd Bank Ltd.		109,946		673,528
ITC Ltd.		184,460		858,970
ITC Ltd. GDR*		67,502		314,492
Larsen & Toubro Ltd.		21,085		532,534
Reliance Industries Ltd.		27,516		366,457
Tata Consultancy Services Ltd.		35,413		817,233
Tata Motors Ltd.		237,401		1,040,219
Tata Steel Ltd.		91,371		729,709
Yes Bank Ltd.		105,100		643,705

				10,253,015

Indonesia — 5.2%
Astra International Tbk PT		1,828,500		1,347,968
Bank Central Asia Tbk PT		282,000		220,565
Bank Mandiri Persero Tbk PT		1,294,500		1,004,436
Indofood Sukses Makmur Tbk PT		1,296,000		674,077
Indosat Tbk PT		1,378,500		641,138
Kalbe Farma Tbk PT		1,582,000		639,786
Lippo Karawaci Tbk PT		13,599,500		1,165,793
Telekomunikasi Indonesia Persero Tbk PT		1,218,000		1,064,148

				6,757,911

Japan — 1.0%
Nexon Co. Ltd.*		65,400		1,280,299

Malaysia — 2.8%
AirAsia BHD		550,100		622,620
Axiata Group BHD		687,800		1,190,612
CIMB Group Holdings BHD		411,400		985,879
Gamuda BHD		82,900		92,059
Sime Darby BHD		264,600		827,966

				3,719,136

Mexico — 4.5%
Alfa S.A.B. de C.V.		31,300		500,248
Fomento Economico Mexicano S.A.B. de C.V. ADR		21,897		1,954,307
Grupo Televisa S.A.B. ADR		36,400		781,872
Mexichem S.A.B. de C.V.		144,026		619,520
Wal-Mart de Mexico S.A.B de C.V., Series V		733,100		1,961,389

				5,817,336

Peru — 1.6%
Cia de Minas Buenaventura S.A. ADR		23,400		888,732
Credicorp Ltd.		9,510		1,197,214

				2,085,946

Philippines — 5.2%
Ayala Corp.		74,698		836,514
Bloomberry Resorts Corp.*		998,500		226,815
DMCI Holdings Inc.		39,100		53,123

134

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Emerging Markets Equity Fund


	Number of Shares		Value†
COMMON STOCKS — (continued)
Philippines — (continued)
Metro Pacific Investments Corp.		13,004,000	$	1,295,541
Metropolitan Bank & Trust		671,792		1,482,723
Philippine Long Distance Telephone Co.		23,230		1,472,826
SM Investments Corp.		78,680		1,369,070

				6,736,612

Poland — 2.3%
Polskie Gomictwo Naftowe I Gazownictwo S.A.*		567,286		707,634
Powszechny Zaklad Ubezpieczen S.A.		10,970		1,103,145
Telekomunikacja Polska S.A.		260,140		1,215,728

				3,026,507

Portugal — 1.1%
Jeronimo Martins SGPS S.A.		83,992		1,420,037

Qatar — 0.5%
Industries Qatar QSC		18,500		642,461

Russia — 3.1%
Gazprom OAO ADR		91,011		862,839
Lukoil OAO ADR		38,785		2,175,063
Rosneft Oil Co. OJSC GDR		153,408		960,334

				3,998,236

South Africa — 4.0%
AngloGold Ashanti Ltd.		10,690		365,107
AngloGold Ashanti Ltd. ADR		3,950		135,643
AVI Ltd.		117,511		720,371
Clicks Group Ltd.		127,100		836,669
Life Healthcare Group Holdings Ltd		99,400		379,086
Naspers Ltd., N Shares		28,260		1,509,435
Pick n Pay Stores Ltd.		141,909		763,218
Sasol Ltd.		13,600		573,680

				5,283,209

South Korea — 15.4%
Cheil Industries, Inc.		6,557		578,547
Cheil Worldwide, Inc.		18,680		298,367
Hyundai Engineering & Construction Co. Ltd.		11,422		656,809
Hyundai Heavy Industries Co. Ltd.		3,796		866,166
Hyundai Motor Co.		11,861		2,434,997
Hyundai Steel Co.		87		6,477
KB Financial Group, Inc.		16,890		551,744
Korea Aerospace Industries Ltd.		19,550		506,098
Korean Air Lines Co. Ltd.*		12,727		564,628
LG Chem Ltd.		3,207		830,213
LG Household & Health Care Ltd.		1,107		597,247
Mando Corp.		2,293		342,271
NCSoft Corp.		4,220		1,012,378
NHN Corp.		3,780		829,083
S.M. Entertainment Co.*		11,023		469,111
Samsung Electronics Co. Ltd.		5,133		5,435,782
Samsung Electronics Co. Ltd. (Preference)		1,701		1,122,918
Samsung Fire & Marine Insurance Co. Ltd.		2,933		582,027
Samsung Life Insurance Co., Ltd.		4,070		332,589
Shinhan Financial Group Co. Ltd.		23,768		833,249
SK C&C Co. Ltd.		6,476		606,286


	Number of Shares		Value†

South Korea — (continued)
Woongjin Coway Co. Ltd.		22,770	$	710,979

				20,167,966

Switzerland — 0.5%
The Swatch Group AG		1,539		608,276

Taiwan — 6.8%
Advanced Semiconductor Engineering Inc.		18,000		14,776
Asustek Computer, Inc.		83,088		763,716
Catcher Technology Co. Ltd.		82,000		553,465
Chailease Holding Co. Ltd.		257,000		375,435
Formosa Plastics Corp.		160,000		431,190
Foxconn Technology Co. Ltd.		1,000		3,641
Fubon Financial Holding Co. Ltd.		443,632		448,981
Hon Hai Precision Industry Co. Ltd.		383,509		1,159,558
HTC Corp.		18,543		244,824
Lung Yen Life Service Corp.		84,000		242,852
MediaTek, Inc.		19,000		175,487
MStar Semiconductor Inc.		92,000		620,575
Taiwan Cement Corp.		426,000		509,474
Taiwan Semiconductor Manufacturing Co. Ltd.		898,769		2,460,351
Uni-President Enterprises Corp.		574,724		926,519

				8,930,844

Thailand — 3.7%
Bank of Ayudhya PCL		117,400		109,985
Banpu PCL		7,900		111,436
Banpu PCL NVDR		45,800		650,994
Kasikornbank PCL		63,100		331,123
Kasikornbank PCL NVDR		195,500		1,008,069
Land and Houses PCL NVDR		4,563,700		1,132,967
PTT PCL		50,000		508,501
Siam Cement PCL NVDR		50,600		507,125
Supalai PCL		56,900		30,914
Thai Airways International PCL*		327,800		222,937
Thai Airways International PCL NVDR*		300,400		205,497

				4,819,548

Turkey — 4.1%
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		114,042		1,460,316
Haci Omer Sabanci Holding A.S.		200,080		842,477
Turk Telekomunikasyon A.S.		197,014		806,261
Turkiye Garanti Bankasi A.S.		555,550		2,186,926

				5,295,980

United Kingdom — 1.3%
SABMiller PLC		41,963		1,698,441

United States — 2.8%
Mead Johnson Nutrition Co.		16,614		1,337,593
Samsonite International S.A.		542,400		906,103
Yum! Brands, Inc.		20,984		1,351,790

				3,595,486

TOTAL COMMON STOCKS (Cost $110,535,214)				125,510,782

135

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Emerging Markets Equity Fund


	Number of Shares		Value†
EXCHANGE TRADED FUNDS — 0.5%
Chile — 0.5%
Sociedad Quimica y Minera de Chile S.A. ADR (Cost $765,983)		13,000	$	723,710

RIGHTS — 0.0%
Chile — 0.0%
Cencosud S.A. Rights 07/20/12* (Cost $0)		12,590		4,149

SHORT-TERM INVESTMENTS — 3.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,269,667)		4,269,667		4,269,667

TOTAL INVESTMENTS — 100.0% (Cost $115,570,864)			$	130,508,308

†	See Security Valuation Note.

*	Non-income producing security.

ADR — American Depository Receipt.

GDR — Global Depository Receipt.

NVDR — Non Voting Depositary Receipt.

OJSC — Open Joint Stock Company

PCL — Public Company Limited.

Plc — Public Limited Company.


COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Advertising		0.2%	$	298,367
Aerospace & Defense		0.4%		506,098
Agriculture		0.9%		1,173,462
Airlines		1.3%		1,615,682
Auto Manufacturers		2.8%		3,475,216
Auto Parts & Equipment		0.3%		342,271
Banks		11.5%		14,449,878
Beverages		6.1%		7,662,531
Building Materials		1.0%		1,256,765
Chemicals		3.3%		4,090,763
Coal		0.6%		762,430
Commercial Services		1.0%		1,204,615
Computers		1.9%		2,435,700
Cosmetics & Personal Care		0.5%		597,247
Diversified Financial Services		1.5%		1,833,974
Electric		0.5%		605,966
Electrical Components & Equipment		0.2%		226,815
Electronics		0.9%		1,159,558
Engineering & Construction		1.1%		1,334,525
Entertainment		0.4%		469,111
Environmental Control		0.6%		710,979
Food		5.8%		7,240,767
Healthcare Products		0.8%		954,633


COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Healthcare Services		0.3%	$	379,086
Holding Companies		3.8%		4,784,450
Home Builders		0.9%		1,132,967
Household Products & Wares		0.7%		906,103
Insurance		3.6%		4,487,584
Internet		3.2%		4,053,354
Iron & Steel		0.6%		736,186
Media		1.8%		2,291,307
Metal Fabricate/Hardware		0.4%		553,465
Mining		2.3%		2,863,322
Miscellaneous Manufacturing		0.5%		578,547
Oil & Gas		7.7%		9,710,950
Oil & Gas Services		0.4%		456,705
Pharmaceuticals		3.6%		4,513,047
Real Estate		1.5%		1,927,339
Retail		8.7%		10,977,825
Semiconductors		7.8%		9,829,889
Shipbuilding		0.7%		866,166
Software		1.0%		1,280,299
Telecommunications		5.9%		7,479,297
Water		1.0%		1,295,541


		100.0%	$	125,510,782

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Brazil	$	10,925,899	$	10,925,899	$	—	$	—
Chile		2,724,819		2,724,819		—		—
China		10,861,244		—		10,861,244		—
Cyprus		456,705		456,705		—		—
Hong Kong		3,310,678		—		3,310,678		—
Hungary		1,094,191		—		1,094,191		—
India		10,253,015		436,090		9,816,925		—
Indonesia		6,757,911		—		6,757,911		—
Japan		1,280,299		—		1,280,299		—
Malaysia		3,719,136		—		3,719,136		—
Mexico		5,817,336		5,817,336		—		—
Peru		2,085,946		2,085,946		—		—
Philippines		6,736,612		—		6,736,612		—
Poland		3,026,507		1,215,728		1,810,779		—
Portugal		1,420,037		—		1,420,037		—
Qatar		642,461		—		642,461		—
Russia		3,998,236		3,998,236		—		—
South Africa		5,283,209		135,643		5,147,566		—
South Korea		20,167,966		—		20,167,966		—
Switzerland		608,276		—		608,276		—
Taiwan		8,930,844		—		8,930,844		—
Thailand		4,819,548		842,874		3,976,674		—
Turkey		5,295,980		—		5,295,980		—
United Kingdom		1,698,441		—		1,698,441		—
United States		3,595,486		3,595,486		—		—
EXCHANGE TRADED FUNDS		723,710		723,710		—		—

136

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Emerging Markets Equity Fund


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
RIGHTS	$	4,149	$	4,149	$	—	$	—
SHORT-TERM INVESTMENTS		4,269,667		4,269,667		—		—

TOTAL INVESTMENTS	$	130,508,308	$	37,232,288	$	93,276,020	$	—

The accompanying notes are an integral part of these financial statements.

137

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Real Estate Securities Fund


	Number of Shares		Value†
COMMON STOCKS — 6.7%
Diversified — 0.4%
Retail Properties of America, Inc. Class A		37,264	$	362,206

Healthcare Services — 0.7%
Brookdale Senior Living, Inc.*		36,723		651,466

Lodging — 3.2%
Hyatt Hotels Corp., Class A*		36,201		1,345,229
Orient-Express Hotels Ltd., Class A*		81,118		678,958
Starwood Hotels & Resorts Worldwide, Inc.		16,906		896,694

				2,920,881

Real Estate — 2.4%
Brookfield Properties Corp.		122,301		2,130,484

TOTAL COMMON STOCKS (Cost $6,238,893)				6,065,037

REAL ESTATE INVESTMENT TRUSTS — 90.6%
Apartments — 16.4%
American Campus Communities, Inc.		24,595		1,106,283
Apartment Investment & Management Co., Class A		70,449		1,904,236
AvalonBay Communities, Inc.		18,390		2,601,817
Education Realty Trust, Inc.		58,637		649,698
Equity Residential		72,064		4,493,911
Essex Property Trust, Inc.		8,403		1,293,390
Mid-America Apartment Communities, Inc.		23,373		1,594,974
UDR, Inc.		42,852		1,107,296

				14,751,605

Diversified — 14.3%
American Assets Trust, Inc.		27,240		660,570
American Tower Corp.		23,339		1,631,629
Colonial Properties Trust		41,314		914,692
Digital Realty Trust, Inc.		27,137		2,037,175
DuPont Fabros Technology, Inc.		28,881		824,841
Liberty Property Trust		32,720		1,205,405
Vornado Realty Trust		66,422		5,578,120

				12,852,432

Healthcare — 7.4%
HCP, Inc.		74,562		3,291,912
Health Care REIT, Inc.		7,545		439,873
Ventas, Inc.		45,656		2,881,807

				6,613,592

Hotels & Resorts — 3.5%
Hersha Hospitality Trust		133,493		704,843
Host Hotels & Resorts, Inc.		152,747		2,416,458

				3,121,301

Industrial — 6.3%
ProLogis, Inc.		170,665		5,671,198

Manufactured Homes — 1.0%
Equity Lifestyle Properties, Inc.		13,185		909,369


	Number of Shares		Value†

Office Property — 10.2%
Alexandria Real Estate Equities, Inc.		14,583	$	1,060,476
Boston Properties, Inc.		28,939		3,136,120
Corporate Office Properties Trust		48,171		1,132,500
Hudson Pacific Properties, Inc.		42,160		734,006
Kilroy Realty Corp.		9,307		450,552
Piedmont Office Realty Trust, Inc., Class A		47,597		819,144
SL Green Realty Corp.		23,164		1,858,679

				9,191,477

Regional Malls — 20.2%
General Growth Properties, Inc.		211,728		3,830,159
Simon Property Group, Inc.		67,051		10,437,159
Tanger Factory Outlet Centers, Inc.		36,879		1,181,972
Taubman Centers, Inc.		17,864		1,378,386
The Macerich Co.		22,255		1,314,158

				18,141,834

Storage & Warehousing — 7.2%
CubeSmart		72,221		842,819
Extra Space Storage, Inc.		47,509		1,453,775
Public Storage		28,948		4,180,381

				6,476,975

Strip Centers — 4.1%
Alexander’s, Inc.		1,446		623,385
Federal Realty Investment Trust		2,050		213,384
Regency Centers Corp.		37,184		1,768,843
Weingarten Realty Investors		39,170		1,031,738

				3,637,350

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $72,124,500)				81,367,133

SHORT-TERM INVESTMENTS — 2.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,393,631)		2,393,631		2,393,631

TOTAL INVESTMENTS — 100.0% (Cost $80,757,024)			$	89,825,801

†	See Security Valuation Note.

*	Non-income producing security.

REIT — Real Estate Investment Trust.

138

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Real Estate Securities Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	6,065,037	$	6,065,037	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		81,367,133		81,367,133		—		—
SHORT-TERM INVESTMENTS		2,393,631		2,393,631		—		—

TOTAL INVESTMENTS	$	89,825,801	$	89,825,801	$	—	$	—

The accompanying notes are an integral part of these financial statements.

139

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Aggressive Allocation Fund


	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 65.8%
Penn Series Flexibly Managed Fund*		50,131	$	1,366,060
Penn Series Index 500 Fund*		270,239		2,732,119
Penn Series Large Cap Growth Fund*		36,683		341,515
Penn Series Large Cap Value Fund*		212,561		3,073,634
Penn Series Large Core Growth Fund*		65,424		683,030
Penn Series Large Core Value Fund*		141,707		1,366,060
Penn Series Large Growth Stock Fund*		118,995		2,049,089
Penn Series Mid Cap Growth Fund*		104,120		1,024,545
Penn Series Mid Cap Value Fund*		81,313		1,024,545
Penn Series Mid Core Value Fund*		127,075		1,366,059
Penn Series Real Estate Securities Fund*		104,041		1,366,060
Penn Series Small Cap Growth Fund*		35,930		683,030
Penn Series Small Cap Index Fund*		89,558		1,024,545
Penn Series Small Cap Value Fund*		79,146		1,366,060
Penn Series SMID Cap Growth Fund*		129,166		1,707,575
Penn Series SMID Cap Value Fund*		109,460		1,366,060

TOTAL AFFILIATED EQUITY FUNDS (Cost $17,338,074)				22,539,986

AFFILIATED FIXED INCOME FUNDS — 4.0%
Penn Series Quality Bond Fund* (Cost $1,183,441)		105,082		1,366,060

AFFILIATED INTERNATIONAL EQUITY FUNDS — 29.9%
Penn Series Developed International Index Fund*		307,325		2,732,120
Penn Series Emerging Markets Equity Fund*		200,694		2,049,089
Penn Series International Equity Fund*		286,536		5,464,239

TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $8,867,054)				10,245,448

SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $93,402)		93,402		93,402

TOTAL INVESTMENTS — 100.0% (Cost $27,481,971)			$	34,244,896

†	See Security Valuation Note.

*	Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	22,539,986	$	22,539,986	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		1,366,060		1,366,060		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		10,245,448		10,245,448		—		—
SHORT-TERM INVESTMENTS		93,402		93,402		—		—

TOTAL INVESTMENTS	$	34,244,896	$	34,244,896	$	—	$	—

The accompanying notes are an integral part of these financial statements.

140

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Moderately Aggressive Allocation Fund


	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 56.8%
Penn Series Flexibly Managed Fund*		218,701	$	5,959,590
Penn Series Index 500 Fund*		1,031,581		10,429,283
Penn Series Large Cap Growth Fund*		160,032		1,489,897
Penn Series Large Cap Value Fund*		824,286		11,919,181
Penn Series Large Core Growth Fund*		285,421		2,979,795
Penn Series Large Core Value Fund*		618,215		5,959,590
Penn Series Large Growth Stock Fund*		432,607		7,449,488
Penn Series Mid Cap Growth Fund*		454,237		4,469,693
Penn Series Mid Cap Value Fund*		236,492		2,979,795
Penn Series Mid Core Value Fund*		554,380		5,959,590
Penn Series Real Estate Securities Fund*		340,418		4,469,693
Penn Series Small Cap Growth Fund*		78,374		1,489,898
Penn Series Small Cap Index Fund*		390,707		4,469,693
Penn Series Small Cap Value Fund*		258,962		4,469,693
Penn Series SMID Cap Growth Fund*		450,801		5,959,590
Penn Series SMID Cap Value Fund*		358,148		4,469,693

TOTAL AFFILIATED EQUITY FUNDS (Cost $63,248,256)				84,924,162

AFFILIATED FIXED INCOME FUNDS — 19.0%
Penn Series High Yield Bond Fund*		320,408		2,979,795
Penn Series Limited Maturity Bond Fund*		650,043		7,449,488
Penn Series Quality Bond Fund*		1,375,290		17,878,771

TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $24,789,846)				28,308,054

AFFILIATED INTERNATIONAL EQUITY FUNDS — 23.9%
Penn Series Developed International Index Fund*		1,005,555		8,939,386
Penn Series Emerging Markets Equity Fund*		583,701		5,959,590
Penn Series International Equity Fund*		1,093,790		20,858,566

TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $30,254,736)				35,757,542

SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $477,274)		477,274		477,274

TOTAL INVESTMENTS — 100.0% (Cost $118,770,112)			$	149,467,032

†	See Security Valuation Note.

*	Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note) :


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	84,924,162	$	84,924,162	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		28,308,054		28,308,054		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		35,757,542		35,757,542		—		—
SHORT-TERM INVESTMENTS		477,274		477,274		—		—

TOTAL INVESTMENTS	$	149,467,032	$	149,467,032	$	—	$	—

The accompanying notes are an integral part of these financial statements.

141

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Moderate Allocation Fund


	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 42.9%
Penn Series Flexibly Managed Fund*		468,922	$	12,778,119
Penn Series Index 500 Fund*		1,516,691		15,333,743
Penn Series Large Cap Growth Fund*		274,503		2,555,624
Penn Series Large Cap Value Fund*		883,687		12,778,119
Penn Series Large Core Growth Fund*		244,792		2,555,624
Penn Series Large Core Value Fund*		795,319		7,666,871
Penn Series Large Growth Stock Fund*		593,641		10,222,495
Penn Series Mid Cap Growth Fund*		519,436		5,111,248
Penn Series Mid Core Value Fund*		950,930		10,222,495
Penn Series Real Estate Securities Fund*		389,280		5,111,248
Penn Series Small Cap Growth Fund*		134,436		2,555,624
Penn Series Small Cap Index Fund*		446,787		5,111,248
Penn Series Small Cap Value Fund*		296,133		5,111,248
Penn Series SMID Cap Growth Fund*		386,630		5,111,248
Penn Series SMID Cap Value Fund*		614,333		7,666,872

TOTAL AFFILIATED EQUITY FUNDS (Cost $84,497,446)				109,891,826

AFFILIATED FIXED INCOME FUNDS — 36.0%
Penn Series High Yield Bond Fund*		824,395		7,666,872
Penn Series Limited Maturity Bond Fund*		2,676,046		30,667,487
Penn Series Quality Bond Fund*		4,128,316		53,668,101

TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $81,714,755)				92,002,460

AFFILIATED INTERNATIONAL EQUITY FUNDS — 18.0%
Penn Series Developed International Index Fund*		1,437,359		12,778,119
Penn Series Emerging Markets Equity Fund*		750,918		7,666,872
Penn Series International Equity Fund*		1,340,128		25,556,239

TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $39,454,608)				46,001,230

AFFILIATED MONEY MARKET FUND — 3.0%
Penn Series Money Market Fund (Cost $7,666,936)		7,666,936		7,666,936

SHORT-TERM INVESTMENTS — 0.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $283,027)		283,027		283,027

TOTAL INVESTMENTS — 100.0% (Cost $213,616,772)			$	255,845,479

†	See Security Valuation Note.

*	Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	109,891,826	$	109,891,826	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		92,002,460		92,002,460		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		46,001,230		46,001,230		—		—
AFFILIATED MONEY MARKET FUNDS		7,666,936		7,666,936		—		—
SHORT-TERM INVESTMENTS		283,027		283,027		—		—

TOTAL INVESTMENTS	$	255,845,479	$	255,845,479	$	—	$	—

The accompanying notes are an integral part of these financial statements.

142

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Moderately Conservative Allocation Fund


	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 32.0%
Penn Series Flexibly Managed Fund*		203,743	$	5,551,995
Penn Series Index 500 Fund*		549,159		5,551,996
Penn Series Large Cap Value Fund*		191,978		2,775,998
Penn Series Large Core Value Fund*		191,978		1,850,665
Penn Series Large Growth Stock Fund*		161,208		2,775,998
Penn Series Mid Core Value Fund*		344,310		3,701,330
Penn Series Real Estate Securities Fund*		140,949		1,850,665
Penn Series Small Cap Index Fund*		161,771		1,850,665
Penn Series SMID Cap Growth Fund*		139,990		1,850,665
Penn Series SMID Cap Value Fund*		148,290		1,850,665

TOTAL AFFILIATED EQUITY FUNDS (Cost $22,787,885)				29,610,642

AFFILIATED FIXED INCOME FUNDS — 53.0%
Penn Series High Yield Bond Fund*		497,491		4,626,663
Penn Series Limited Maturity Bond Fund*		1,614,891		18,506,651
Penn Series Quality Bond Fund*		1,993,024		25,909,312

TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $43,258,370)				49,042,626

AFFILIATED INTERNATIONAL EQUITY FUNDS — 10.0%
Penn Series Developed International Index Fund*		312,261		2,775,998
Penn Series International Equity Fund*		339,661		6,477,328

TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $7,414,202)				9,253,326

AFFILIATED MONEY MARKET FUND — 5.0%
Penn Series Money Market Fund (Cost $4,626,701)		4,626,701		4,626,701

TOTAL INVESTMENTS — 100.0% (Cost $78,087,158)			$	92,533,295

†	See Security Valuation Note.

*	Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note):


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	29,610,642	$	29,610,642	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		49,042,626		49,042,626		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		9,253,326		9,253,326		—		—
AFFILIATED MONEY MARKET FUNDS		4,626,701		4,626,701		—		—

TOTAL INVESTMENTS	$	92,533,295	$	92,533,295	$	—	$	—

The accompanying notes are an integral part of these financial statements.

143

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2012 (Unaudited)

Conservative Allocation Fund


	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 16.9%
Penn Series Flexibly Managed Fund*		154,345	$	4,205,906
Penn Series Index 500 Fund*		277,343		2,803,937
Penn Series Large Core Value Fund*		145,432		1,401,969
Penn Series Large Growth Stock Fund*		81,415		1,401,969
Penn Series Mid Core Value Fund*		195,624		2,102,953

TOTAL AFFILIATED EQUITY FUNDS (Cost $9,670,564)				11,916,734

AFFILIATED FIXED INCOME FUNDS — 67.7%
Penn Series High Yield Bond Fund*		452,248		4,205,906
Penn Series Limited Maturity Bond Fund*		1,529,198		17,524,610
Penn Series Quality Bond Fund*		1,995,109		25,936,422

TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $42,532,733)				47,666,938

AFFILIATED INTERNATIONAL EQUITY FUNDS — 5.0%
Penn Series Developed International Index Fund*		157,702		1,401,969
Penn Series International Equity Fund*		110,275		2,102,953

TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $2,856,837)				3,504,922

AFFILIATED MONEY MARKET FUND — 10.0%
Penn Series Money Market Fund (Cost $7,009,902)		7,009,902		7,009,902

SHORT-TERM INVESTMENTS — 0.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $259,617)		259,617		259,617

TOTAL INVESTMENTS — 100.0% (Cost $62,329,653)			$	70,358,113

†	See Security Valuation Note.

*	Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2012 are as follows (See Security Valuation Note) :


ASSETS TABLE
Description	Total Market Value at 06/30/2012		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	11,916,734	$	11,916,734	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		47,666,938		47,666,938		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		3,504,922		3,504,922		—		—
AFFILIATED MONEY MARKET FUNDS		7,009,902		7,009,902		—		—
SHORT-TERM INVESTMENTS		259,617		259,617		—		—

TOTAL INVESTMENTS	$	70,358,113	$	70,358,113	$	—	$	—

The accompanying notes are an integral part of these financial statements.

144

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2012


	Money Market Fund		Limited Maturity Bond Fund		Quality Bond Fund		High Yield Bond Fund
ASSETS
Investments at value	$	143,044,418	$	188,413,710	$	530,595,460	$	170,952,635
Foreign currency, at value		—		—		—		8,540
Interest, dividends and reclaims receivable		121,889		650,590		2,527,961		2,582,493
Receivable for investment securities sold		—		—		—		197,055
Receivable from investment adviser		7,585		—		—		—
Receivable for capital stock sold		60,731		7,725		403,644		26,595
Net unrealized appreciation of forward foreign currency contracts		—		—		—		10,836
Other assets		3,491		4,100		10,844		3,538

Total Assets		143,238,114		189,076,125		533,537,909		173,781,692


LIABILITIES
Payable for investment securities purchased		—		—		5,000,000		10,629,948
Payable for capital stock redeemed		237,273		1,423,223		3,189,310		3,934,070
Payable to investment adviser		—		46,300		133,210		65,326
Payable to The Penn Mutual Life Insurance Co.		44,102		68,799		192,321		59,127
Net unrealized depreciation of forward foreign currency contracts		—		—		—		66,613
Other liabilities		29,536		31,157		74,330		40,911

Total Liabilities		310,911		1,569,479		8,589,171		14,795,995

NET ASSETS	$	142,927,203	$	187,506,646	$	524,948,738	$	158,985,697

Investments at cost		143,044,418		185,797,708		498,095,144		166,859,458
Foreign currency at cost		—		—		—		8,386

COMPONENTS OF NET ASSETS:
Paid-in Capital	$	142,927,203	$	183,899,637	$	481,022,854	$	158,634,950
Undistributed net investment income (loss)		—		879,759		5,428,527		4,725,440
Accumulated net realized gain (loss) on investment transactions and foreign exchange		—		111,248		5,997,041		(8,411,060	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		—		2,616,002		32,500,316		4,036,367

NET ASSETS	$	142,927,203	$	187,506,646	$	524,948,738	$	158,985,697


Shares outstanding, $0.10 par value, 500 million shares authorized		142,911,277

Shares outstanding, $0.10 par value, 250 million shares authorized						40,393,453		17,099,218

Shares outstanding, $0.0001 par value, 250 million shares authorized				16,358,312

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	1.00	$	11.46	$	13.00	$	9.30

The accompanying notes are an integral part of these financial statements.

145

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2012


	Flexibly Managed Fund		Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
ASSETS
Investments of affiliated issuers at value	$	—	$	69,732,578		$	—		$	—
Investments of unaffiliated issuers at value		1,824,581,104		126,001			193,290,156			34,327,158
Interest, dividends and reclaims receivable		4,181,735		1			98,784			31,133
Receivable for investment securities sold		21,156,664		920,026			291,098			5,610,699
Receivable for capital stock sold		6,238,965		1,517			5,764,265			15,119
Other assets		41,304		1,598			4,538			915

Total Assets		1,856,199,772		70,781,721			199,448,841			39,985,024


LIABILITIES
Call options written, at value		13,885,113		—			—			—
Payable for investment securities purchased		15,419,034		901,984			229,644			414,693
Payable for capital stock redeemed		297,459		355			33,138			5,077,020
Payable to investment adviser		878,108		—			97,346			17,512
Payable to The Penn Mutual Life Insurance Co.		672,151		18,490			73,266			15,211
Other liabilities		206,034		9,493			42,748			7,865

Total Liabilities		31,357,899		930,322			476,142			5,532,301

NET ASSETS	$	1,824,841,873	$	69,851,399		$	198,972,699		$	34,452,723

Investments of affiliated issuers at cost		—		54,586,641			—			—
Investments of unaffiliated issuers at cost		1,657,740,192		126,001			137,601,542			31,214,641
Call options written, premiums received		12,799,208		—			—			—

COMPONENTS OF NET ASSETS:
Paid-in Capital	$	1,567,937,369	$	59,326,246		$	162,091,591		$	32,504,197
Undistributed net investment income (loss)		13,637,974		(65,660	)		(254,856	)		(31,333	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		77,512,302		(4,555,124	)		(18,552,654	)		(1,132,658	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		165,754,228		15,145,937			55,688,618			3,112,517

NET ASSETS	$	1,824,841,873	$	69,851,399		$	198,972,699		$	34,452,723


Shares outstanding, $0.10 par value, 250 million shares authorized		66,971,944					11,557,644

Shares outstanding, $0.0001 par value, 250 million shares authorized				5,755,947						3,699,021

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	27.25	$	12.14		$	17.22		$	9.31

The accompanying notes are an integral part of these financial statements.

146

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2012


	Large Core Growth Fund			Large Cap Value Fund			Large Core Value Fund			Index 500 Fund
ASSETS
Investments at value	$	106,890,114		$	164,608,294		$	151,117,477		$	283,537,182
Interest, dividends and reclaims receivable		52,239			184,474			374,788			362,851
Receivable for investment securities sold		2,002,897			9,518,949			1,052,810			254,594
Receivable for capital stock sold		147,642			17,863			749,368			6,388,654
Futures receivable		—			—			—			105,400
Other assets		2,756			4,252			3,601			14,905

Total Assets		109,095,648			174,333,832			153,298,044			290,663,586


LIABILITIES
Payable for investment securities purchased		1,954,286			4,661,910			1,515,248			452,763
Payable for capital stock redeemed		27,370			11,029,766			153,948			183,159
Payable to investment adviser		51,627			81,089			71,787			15,763
Payable to The Penn Mutual Life Insurance Co.		40,737			63,672			55,711			104,988
Other liabilities		21,467			31,131			28,929			54,156

Total Liabilities		2,095,487			15,867,568			1,825,623			810,829

NET ASSETS	$	107,000,161		$	158,466,264		$	151,472,421		$	289,852,757

Investments at cost		85,468,393			158,977,796			123,085,906			241,563,068

COMPONENTS OF NET ASSETS:
Paid-in Capital	$	109,399,745		$	179,484,587		$	157,857,338		$	268,960,558
Undistributed net investment income (loss)		(74,210	)		967,099			1,244,999			2,478,552
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(23,747,095	)		(27,615,920	)		(35,661,487	)		(23,689,882	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		21,421,721			5,630,498			28,031,571			42,103,529

NET ASSETS	$	107,000,161		$	158,466,264		$	151,472,421		$	289,852,757


Shares outstanding, $0.10 par value, 250 million shares authorized					10,959,238

Shares outstanding, $0.0001 par value, 250 million shares authorized		10,245,580						15,706,845			28,662,647

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	10.44		$	14.46		$	9.64		$	10.11

The accompanying notes are an integral part of these financial statements.

147

Penn Series Funds, Inc.

Statements of Assets And Liabilities (Unaudited)

June 30, 2012


	Mid Cap Growth Fund			Mid Cap Value Fund		Mid Core Value Fund			SMID Cap Growth Fund
ASSETS
Investments at value	$	101,057,772		$	99,821,356	$	62,149,167		$	32,167,026
Interest, dividends and reclaims receivable		63,734			230,423		68,658			3,069
Receivable for investment securities sold		2,010,140			—		669,056			375,731
Receivable for capital stock sold		566,126			390,622		1,773,609			3,043,519
Other assets		2,679			2,689		1,427			691

Total Assets		103,700,451			100,445,090		64,661,917			35,590,036


LIABILITIES
Payable for investment securities purchased		1,032,339			—		1,088,874			482,009
Payable for capital stock redeemed		1,790,601			15,063		20,543			8,186
Payable to investment adviser		57,298			43,418		35,389			16,557
Payable to The Penn Mutual Life Insurance Co.		36,790			37,597		23,331			11,782
Other liabilities		16,908			19,276		13,720			6,789

Total Liabilities		2,933,936			115,354		1,181,857			525,323

NET ASSETS	$	100,766,515		$	100,329,736	$	63,480,060		$	35,064,713

Investments at cost		90,166,052			94,749,669		57,277,001			29,376,269

COMPONENTS OF NET ASSETS:
Paid-in Capital	$	88,432,466		$	93,305,952	$	62,260,511		$	32,149,819
Undistributed net investment income (loss)		(230,434	)		604,423		235,497			(132,034	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		1,672,763			1,347,674		(3,888,114	)		256,171
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		10,891,720			5,071,687		4,872,166			2,790,757

NET ASSETS	$	100,766,515		$	100,329,736	$	63,480,060		$	35,064,713


Shares outstanding, $0.0001 par value, 250 million shares authorized		10,241,147			7,962,221		5,907,435			2,652,522

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	9.84		$	12.60	$	10.75		$	13.22

The accompanying notes are an integral part of these financial statements.

148

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2012


	SMID Cap Value Fund		Small Cap Growth Fund			Small Cap Value Fund		Small Cap Index Fund
ASSETS
Investments at value	$	37,257,715	$	78,748,592		$	164,124,586	$	32,847,967
Interest, dividends and reclaims receivable		53,020		2,231			273,478		37,138
Receivable for investment securities sold		671,753		726,825			1,371,323		134,645
Receivable for capital stock sold		417,210		275,239			160,007		1,955,627
Futures receivable		—		—			—		37,600
Other assets		793		2,125			3,992		713

Total Assets		38,400,491		79,755,012			165,933,386		35,013,690


LIABILITIES
Payable for investment securities purchased		157,614		764,725			331,520		—
Payable for capital stock redeemed		1,626,005		1,283,413			17,191		30,160
Payable to investment adviser		23,880		45,724			110,791		4,244
Payable to The Penn Mutual Life Insurance Co.		13,793		29,973			61,620		11,987
Other liabilities		7,823		14,643			29,441		37,516

Total Liabilities		1,829,115		2,138,478			550,563		83,907

NET ASSETS	$	36,571,376	$	77,616,534		$	165,382,823	$	34,929,783

Investments at cost		35,056,302		78,720,298			144,312,026		28,350,987

COMPONENTS OF NET ASSETS:
Paid-in Capital	$	32,940,170	$	78,472,300		$	144,307,315	$	29,453,795
Undistributed net investment income (loss)		85,707		(407,433	)		1,049,379		166,890
Accumulated net realized gain (loss) on investment transactions and foreign exchange		1,344,085		(476,626	)		213,569		766,876
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		2,201,414		28,293			19,812,560		4,542,222

NET ASSETS	$	36,571,376	$	77,616,534		$	165,382,823	$	34,929,783


Shares outstanding, $0.10 par value, 250 million shares authorized				4,082,264			9,581,852

Shares outstanding, $0.0001 par value, 250 million shares authorized		2,930,168							3,054,072

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	12.48	$	19.01		$	17.26	$	11.44

The accompanying notes are an integral part of these financial statements.

149

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2012


	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
ASSETS
Investments at value	$	66,760,396		$	326,432,876		$	130,508,308		$	89,825,801
Foreign currency, at value		672,737			307,780			300,142			—
Interest, dividends and reclaims receivable		220,682			1,550,485			380,903			157,069
Receivable for investment securities sold		67,396			1,098,137			975,953			1,096,374
Receivable from investment adviser		8,086			—			—			—
Receivable for capital stock sold		1,245,680			365,500			535,062			58,065
Net unrealized appreciation of forward foreign currency contracts		—			—			14,208			—
Other assets		630,082			7,938			3,311			1,894

Total Assets		69,605,059			329,762,716			132,717,887			91,139,203


LIABILITIES
Payable for investment securities purchased		352,091			409,139			361,756			1,073,936
Payable for capital stock redeemed		14,112			258,919			13,270			718,550
Payable to investment adviser		—			221,391			125,393			49,370
Payable to The Penn Mutual Life Insurance Co.		24,781			122,694			49,505			32,213
Deferred Indian capital gains tax		—			—			155,509			—
Other liabilities		62,317			117,246			191,061			12,315

Total Liabilities		453,301			1,129,389			896,494			1,886,384

NET ASSETS	$	69,151,758		$	328,633,327		$	131,821,393		$	89,252,819

Investments at cost		68,802,241			267,756,577			115,570,864			80,757,024
Foreign currency at cost		671,022			345,715			294,669			—

COMPONENTS OF NET ASSETS:
Paid-in Capital	$	70,883,795		$	324,777,816		$	129,850,371		$	76,266,173
Undistributed net investment income (loss)		1,313,782			(690,043	)		470,419			840,854
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(1,125,287	)		(54,062,927	)		(13,303,282	)		3,077,015
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		(1,920,532	)		58,608,481			14,803,885			9,068,777

NET ASSETS	$	69,151,758		$	328,633,327		$	131,821,393		$	89,252,819


Shares outstanding, $0.10 par value, 250 million shares authorized					17,235,797

Shares outstanding, $0.0001 par value, 250 million shares authorized		7,775,871						12,907,096			6,798,122


NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	8.89		$	19.07		$	10.21		$	13.13

The accompanying notes are an integral part of these financial statements.

150

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2012


	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	34,151,494		$	148,989,758		$	255,562,452		$	92,533,295
Investments of unaffiliated issuers at value		93,402			477,274			283,027			—
Interest, dividends and reclaims receivable		2			4			7			3
Receivable for investment securities sold		2,191,914			8,628,885			10,948,783			5,085,105
Receivable for capital stock sold		—			—			305,864			107,023
Other assets		713			3,464			5,615			2,107

Total Assets		36,437,525			158,099,385			267,105,748			97,727,533


LIABILITIES
Cash overdraft		—			—			—			94,960
Payable for investment securities purchased		2,224,791			8,783,381			10,919,281			4,705,372
Payable for capital stock redeemed		2,110			13,903			7			40
Payable to investment adviser		2,267			11,846			20,429			8,317
Payable to The Penn Mutual Life Insurance Co.		12,180			56,265			93,155			34,715
Other liabilities		6,477			16,393			26,125			11,612

Total Liabilities		2,247,825			8,881,788			11,058,997			4,855,016

NET ASSETS	$	34,189,700		$	149,217,597		$	256,046,751		$	92,872,517

Investments of affiliated issuers at cost		27,388,569			118,292,838			213,333,745			78,087,158
Investments of unaffiliated issuers at cost		93,402			477,274			283,027			—

COMPONENTS OF NET ASSETS:
Paid-in Capital	$	27,790,961		$	120,970,761		$	214,715,303		$	78,773,542
Undistributed net investment income (loss)		(52,269	)		(238,309	)		(388,830	)		(153,754	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(311,917	)		(2,211,775	)		(508,429	)		(193,408	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		6,762,925			30,696,920			42,228,707			14,446,137

NET ASSETS	$	34,189,700		$	149,217,597		$	256,046,751		$	92,872,517


Shares outstanding, $0.0001 par value, 250 million shares authorized		3,194,525			12,855,142			22,556,570			8,146,895

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	10.70		$	11.61		$	11.35		$	11.40

The accompanying notes are an integral part of these financial statements.

151

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2012


	Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	70,098,496
Investments of unaffiliated issuers at value		259,617
Interest, dividends and reclaims receivable		3
Receivable for investment securities sold		2,806,335
Receivable for capital stock sold		580
Other assets		1,388

Total Assets		73,166,419


LIABILITIES
Payable for investment securities purchased		2,744,738
Payable for capital stock redeemed		237
Payable to investment adviser		6,474
Payable to The Penn Mutual Life Insurance Co.		24,659
Other liabilities		9,048

Total Liabilities		2,785,156

NET ASSETS	$	70,381,263

Investments of affiliated issuers at cost		62,070,036
Investments of unaffiliated issuers at cost		259,617

COMPONENTS OF NET ASSETS:
Paid-in Capital	$	62,520,604
Undistributed net investment income (loss)		(106,779	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(61,022	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		8,028,460

NET ASSETS	$	70,381,263


Shares outstanding, $0.0001 par value, 250 million shares authorized		6,151,677

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	11.44

The accompanying notes are an integral part of these financial statements.

152

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For The Six Months Ended June 30, 2012


	Money Market Fund			Limited Maturity Bond Fund			Quality Bond Fund			High Yield Bond Fund
INVESTMENT INCOME:
Dividends	$	1,893		$	939		$	3,485		$	112,582
Interest		162,329			1,397,537			6,841,695			5,654,348

Total Investment Income		164,222			1,398,476			6,845,180			5,766,930


EXPENSES
Investment advisory fees		133,440			268,568			772,304			382,422
Administration fees		108,577			134,284			373,720			114,727
Accounting fees		46,138			54,707			114,526			48,188
Director fees and expenses		3,186			3,667			9,931			3,115
Custodian fees and expenses		24,586			10,966			28,047			21,248
Pricing fees		7,702			7,013			11,894			30,316
Professional fees		15,388			18,168			49,108			15,159
Printing fees		9,247			10,871			29,631			9,166
Other expenses		11,969			10,473			27,492			9,746

Total Expenses		360,233			518,717			1,416,653			634,087
Less: Waivers and reimbursement from advisor		133,440			—			—			—
Less: Waivers and reimbursement from administrator		69,825			—			—			—

Net Expenses		156,968			518,717			1,416,653			634,087

Net Investment Income (Loss)		7,254			879,759			5,428,527			5,132,843


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		—			360,778			6,728,771			(142,666	)
Net realized foreign currency exchange gain (loss)		—			—			—			143,676
Change in net unrealized appreciation (depreciation) of investments and foreign currency		—			(536,383	)		(1,508,587	)		4,361,541

Net Gain (Loss) on Investment Securities and Foreign Currency		—			(175,605	)		5,220,184			4,362,551


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	7,254		$	704,154		$	10,648,711		$	9,495,394


	Flexibly Managed Fund			Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
INVESTMENT INCOME:
Dividends	$	11,218,315		$	11		$	644,104		$	152,879
Interest		9,700,104			—			—			1
Foreign tax withheld		(13,864	)		—			(1,572	)		(730	)

Total Investment Income		20,904,555			11			642,532			152,150


EXPENSES
Investment advisory fees		5,316,413			—			609,589			112,871
Administration fees		1,329,103			51,359			146,182			30,783
Accounting fees		246,831			5,968			58,673			14,429
Director fees and expenses		36,546			1,426			3,993			828
Custodian fees and expenses		120,954			3,906			23,650			11,411
Pricing fees		18,617			1,950			12,201			3,706
Professional fees		177,374			6,828			19,369			4,163
Printing fees		107,679			4,191			11,790			2,489
Other expenses		104,265			4,610			11,941			2,803

Total Expenses		7,457,782			80,238			897,388			183,483
Less: Waivers and reimbursement from administrator		—			14,567			—			—

Net Expenses		7,457,782			65,671			897,388			183,483

Net investment income (loss)		13,446,773			(65,660	)		(254,856	)		(31,333	)


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		84,924,445			318,159			4,675,689			2,160,088
Net realized gain (loss) on options		3,766,983			—			—			—
Net realized foreign currency exchange gain (loss)		160,465			—			(288	)		—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		13,703,926			3,983,485			19,206,511			707,684

Net Gain (Loss) on Investment Securities and Foreign Currency		102,555,819			4,301,644			23,881,912			2,867,772


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	116,002,592		$	4,235,984		$	23,627,056		$	2,836,439

The accompanying notes are an integral part of these financial statements.

153

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For The Six Months Ended June 30, 2012


	Large Core Growth Fund			Large Cap Value Fund			Large Core Value Fund			Index 500 Fund

INVESTMENT INCOME:
Dividends	$	416,460		$	1,776,825		$	1,920,982		$	2,967,390
Interest		—			1			13			66
Foreign tax withheld		—			(7,998	)		(14,382	)		—

Total Investment Income		416,460			1,768,828			1,906,613			2,967,456


EXPENSES
Investment advisory fees		326,953			518,414			447,607			98,695
Administration fees		81,738			129,604			111,902			211,488
Accounting fees		37,192			53,147			47,246			80,440
Director fees and expenses		2,348			3,728			3,176			5,879
Custodian fees and expenses		14,270			14,508			14,309			19,609
Pricing fees		3,139			4,651			3,294			7,091
Professional fees		10,356			17,411			14,750			28,029
Printing fees		6,591			10,852			9,095			17,312
Other expenses		8,083			11,500			10,235			26,156

Total Expenses		490,670			763,815			661,614			494,699
Less: Waivers and reimbursement from administrator		—			—			—			2,570

Net Expenses		490,670			763,815			661,614			492,129

Net investment income (loss)		(74,210	)		1,005,013			1,244,999			2,475,327


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		8,793,068			115,079			3,192,850			818,896
Net realized gain (loss) on futures contracts		—			—			—			139,904
Change in net unrealized appreciation (depreciation) of investments and foreign currency		3,885,366			6,397,555			7,148,032			21,272,340
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			130,754

Net Gain (Loss) on Investment Securities and Foreign Currency		12,678,434			6,512,634			10,340,882			22,361,894


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	12,604,224		$	7,517,647		$	11,585,881		$	24,837,221


	Mid Cap Growth Fund			Mid Cap Value Fund			Mid Core Value Fund			SMID Cap Growth Fund

INVESTMENT INCOME:
Dividends	$	304,435		$	1,034,449		$	549,605		$	30,586
Interest		—			—			13			—
Foreign tax withheld		88			(9,784	)		(1	)		—

Total Investment Income		304,523			1,024,665			549,617			30,586


EXPENSES
Investment advisory fees		374,683			279,583			227,684			116,121
Administration fees		80,289			76,250			47,434			23,224
Accounting fees		36,693			35,266			22,136			13,675
Director fees and expenses		2,337			2,268			1,294			610
Custodian fees and expenses		10,529			9,538			20,004			8,682
Pricing fees		4,081			3,883			4,043			3,377
Professional fees		10,682			9,962			6,529			3,020
Printing fees		6,749			6,418			3,898			1,829
Other expenses		11,238			8,050			4,072			2,246

Total Expenses		537,281			431,218			337,094			172,784
Less: Waivers and reimbursement from advisor		—			—			—			10,164
Less: Waivers and reimbursement from administrator		2,324			—			—			—

Net Expenses		534,957			431,218			337,094			162,620

Net investment income (loss)		(230,434	)		593,447			212,523			(132,034	)


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		3,299,638			2,237,590			3,137,350			290,299
Change in net unrealized appreciation (depreciation) of investments and foreign currency		2,060,091			3,750,254			(1,132,457	)		2,790,396

Net Gain (Loss) on Investment Securities and Foreign Currency		5,359,729			5,987,844			2,004,893			3,080,695


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	5,129,295		$	6,581,291		$	2,217,416		$	2,948,661

The accompanying notes are an integral part of these financial statements.

154

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For The Six Months Ended June 30, 2012


	SMID Cap Value Fund			Small Cap Growth Fund			Small Cap Value Fund			Small Cap Index Fund
INVESTMENT INCOME:
Dividends	$	293,700		$	48,582		$	2,004,812		$	255,128
Interest		—			14			—			116
Foreign tax withheld		—			—			(139	)		(327	)

Total Investment Income		293,700			48,596			2,004,673			254,917


EXPENSES
Investment advisory fees		173,270			310,667			706,171			48,001
Administration fees		27,358			62,576			124,618			24,001
Accounting fees		13,676			29,202			51,485			13,675
Director fees and expenses		713			1,863			3,521			641
Custodian fees and expenses		6,529			27,629			24,246			17,680
Pricing fees		3,514			4,121			5,248			17,372
Professional fees		3,634			8,393			16,732			3,199
Printing fees		2,167			5,307			10,304			1,931
Other expenses		2,452			6,271			15,368			2,243

Total Expenses		233,313			456,029			957,693			128,743
Less: Waivers and reimbursement from advisor		25,320			—			2,399			40,716

Net Expenses		207,993			456,029			955,294			88,027

Net investment income (loss)		85,707			(407,433	)		1,049,379			166,890


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		1,719,215			2,657,712			8,307,377			997,793
Net realized gain (loss) on futures contracts		—			—			—			58,037
Change in net unrealized appreciation (depreciation) of investments and foreign currency		459,668			1,604,141			833,446			1,064,237
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			30,978

Net Gain (Loss) on Investment Securities and Foreign Currency		2,178,883			4,261,853			9,140,823			2,151,045


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,264,590		$	3,854,420		$	10,190,202		$	2,317,935


	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund

INVESTMENT INCOME:
Dividends	$	1,712,118		$	5,995,017		$	1,810,845		$	1,266,899
Interest		645			70			493			—
Foreign tax withheld		(135,955	)		(304,836	)		(199,149	)		(4,303	)

Total Investment Income		1,576,808			5,690,251			1,612,189			1,262,596


EXPENSES
Investment advisory fees		100,158			1,391,329			786,585			291,016
Administration fees		50,079			245,529			99,990			62,361
Accounting fees		26,709			108,157			49,941			29,102
Director fees and expenses		1,378			6,931			2,838			1,670
Custodian fees and expenses		30,883			88,390			192,804			15,861
Pricing fees		103,351			17,101			25,752			3,504
Professional fees		6,718			40,428			26,690			8,183
Printing fees		4,085			20,132			8,210			4,841
Other expenses		12,648			20,580			9,230			5,204

Total Expenses		336,009			1,938,577			1,202,040			421,742
Less: Waivers and reimbursement from advisor		139,007			—			82,405			—

Net Expenses		197,002			1,938,577			1,119,635			421,742

Net Investment Income (Loss)		1,379,806			3,751,674			492,554			840,854


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		(372,096	)		22,258,634			(2,370,075	)		4,719,160
Net realized gain (loss) on futures contracts		(45,492	)		—			—			—
Net realized foreign currency exchange gain (loss)		5,145			(364,588	)		(110,197	)		—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		1,070,721			(1,924,625	)		9,069,727			4,904,571
Change in net unrealized appreciation (depreciation) of futures contracts		94,828			—			—			—

Net Gain (Loss) on Investment Securities and Foreign Currency		753,106			19,969,421			6,589,455			9,623,731


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,132,912		$	23,721,095		$	7,082,009		$	10,464,585

The accompanying notes are an integral part of these financial statements.

155

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For The Six Months Ended June 30, 2012


	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund

INVESTMENT INCOME:
Dividends	$	7		$	32		$	407		$	255
Interest		—			7			9			—

Total Investment Income (Loss)		7			39			416			255


EXPENSES
Investment advisory fees		15,828			74,087			121,711			46,565
Administration fees		23,742			111,131			182,567			69,848
Accounting fees		5,968			7,409			12,171			5,968
Director fees and expenses		629			3,027			4,928			1,899
Custodian fees and expenses		2,208			7,917			12,743			5,173
Pricing fees		2,078			2,108			2,110			2,082
Professional fees		3,088			14,698			24,149			9,589
Printing fees		1,875			8,960			14,609			5,694
Other expenses		2,298			9,011			14,258			8,618

Total Expenses		57,714			238,348			389,246			155,436
Less: Waivers and reimbursement from advisor		5,438			—			—			1,427

Net Expenses		52,276			238,348			389,246			154,009

Net investment loss		(52,269	)		(238,309	)		(388,830	)		(153,754	)


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		53,538			(59,347	)		1,221,328			728,519
Change in net unrealized appreciation (depreciation) of investments and foreign currency		1,950,346			8,473,984			10,643,679			3,068,073

Net Gain (Loss) on Investment Securities and Foreign Currency		2,003,884			8,414,637			11,865,007			3,796,592


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,951,615		$	8,176,328		$	11,476,177		$	3,642,838


	Conservative Allocation Fund
INVESTMENT INCOME:
Dividends	$	346
Interest		—

Total Investment Income		346


EXPENSES
Investment advisory fees		32,433
Administration fees		48,650
Accounting fees		5,968
Director fees and expenses		1,286
Custodian fees and expenses		3,742
Pricing fees		2,044
Professional fees		6,774
Printing fees		3,920
Other expenses		3,714

Total Expenses		108,531
Less: Waivers and reimbursement from advisor		1,406

Net Expenses		107,125

Net investment loss		(106,779	)


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		470,014
Change in net unrealized appreciation (depreciation) of investments and foreign currency		1,462,163

Net Gain (Loss) on Investment Securities and Foreign Currency		1,932,177


NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,825,398

The accompanying notes are an integral part of these financial statements.

156

Penn Series Funds, Inc.

Statements of Changes in Net Assets


	Money Market Fund						Limited Maturity Bond Fund
	Six Months Ended 6/30/12			Year Ended 12/31/11			Six Months Ended 6/30/12			Year Ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	7,254		$	14,798		$	879,759		$	1,826,135
Net realized gains (loss) from investment transactions		—			998			360,778			99,174
Net realized foreign exchange gain (loss)		—			—			—			—
Capital gain distributions received from unaffiliated funds		—			—			—			28
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		—			—			(536,383	)		1,616,547

Net Increase (Decrease) in Net Assets Resulting from Operations		7,254			15,796			704,154			3,541,884

Distributions from:
Net investment income		(7,254	)		(14,798	)		—			—

Total Distributions		(7,254	)		(14,798	)		—			—

Capital Share Transactions (1):
Shares issued		29,300,688			126,009,815			26,445,714			53,650,091
Shares issued in lieu of cash distributions		7,254			14,800			—			—
Shares redeemed		(40,594,044	)		(111,800,282	)		(13,932,820	)		(35,349,861	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		(11,286,102	)		14,224,333			12,512,894			18,300,230

Total Increase (Decrease)		(11,286,102	)		14,225,331			13,217,048			21,842,114
Net Assets:
Beginning of period		154,213,305			139,987,974			174,289,598			152,447,484

End of Period	$	142,927,203		$	154,213,305		$	187,506,646		$	174,289,598

Undistributed net investment income (loss)	$	—		$	—		$	879,759		$	—

(1) Shares Issued and Redeemed:
Shares issued		29,300,688			125,986,265			2,311,588			4,734,426
Shares issued in lieu of cash distributions		7,254			14,800			—			—
Shares redeemed		(40,594,044	)		(111,776,732	)		(1,217,563	)		(3,121,589	)

		(11,286,102	)		14,224,333			1,094,025			1,612,837


	Quality Bond Fund						High Yield Bond Fund
	Six Months Ended 6/30/12			Year Ended 12/31/11			Six Months Ended 6/30/12			Year Ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	5,428,527		$	11,495,631		$	5,132,843		$	9,995,497
Net realized gains (loss) from investment transactions		6,728,771			5,477,423			(142,666	)		2,313,209
Net realized foreign exchange gain (loss)		—			—			143,676			52,901
Capital gain distributions received from unaffiliated funds		—			110			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(1,508,587	)		26,096,154			4,361,541			(8,256,729	)

Net Increase (Decrease) in Net Assets Resulting from Operations		10,648,711			43,069,318			9,495,394			4,104,878

Capital Share Transactions (1):
Shares issued		61,460,101			112,864,558			18,422,888			31,457,946
Shares issued in lieu of cash distributions		—			—			—			—
Shares redeemed		(24,766,012	)		(97,285,332	)		(10,222,888	)		(25,954,893	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		36,694,089			15,579,226			8,200,000			5,503,053

Total Increase (Decrease)		47,342,800			58,648,544			17,695,394			9,607,931
Net Assets:
Beginning of period		477,605,938			418,957,394			141,290,303			131,682,372

End of Period	$	524,948,738		$	477,605,938		$	158,985,697		$	141,290,303

Undistributed net investment income (loss)	$	5,428,527		$	—		$	4,725,440		$	(407,403	)
(1) Shares Issued and Redeemed:
Shares issued		4,806,488			9,314,487			2,016,916			3,622,513
Shares issued in lieu of cash distributions		—			—			—			—
Shares redeemed		(1,930,758	)		(8,035,835	)		(1,111,968	)		(3,000,344	)

		2,875,730			1,278,652			904,948			622,169

The accompanying notes are an integral part of these financial statements.

157

Penn Series Funds, Inc.

Statements of Changes in Net Assets


	Flexibly Managed Fund						Balanced Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	13,446,773		$	26,269,498		$	(65,660	)	$	(118,179	)
Net realized gains (loss) from investment transactions		84,924,445			78,336,144			318,159			468,755
Net realized gains (loss) on written options		3,766,983			(2,956,301	)		—			—
Net realized foreign exchange gain (loss)		160,465			16,088			—			—
Capital gain distributions received from other investment companies		—			—			—			1
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		17,416,195			(59,122,451	)		3,983,485			3,072,218
Net change in unrealized appreciation (depreciation) of written options		(3,712,269	)		5,962,832			—			—

Net Increase (Decrease) in Net Assets Resulting from Operations		116,002,592			48,505,810			4,235,984			3,422,795

Capital Share Transactions (1):
Shares issued		89,358,132			142,204,011			3,451,850			5,415,527
Shares redeemed		(35,773,320	)		(118,559,226	)		(3,178,169	)		(7,807,095	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		53,584,812			23,644,785			273,681			(2,391,568	)

Total Increase (Decrease)		169,587,404			72,150,595			4,509,665			1,031,227
Net Assets:
Beginning of period		1,655,254,469			1,583,103,874			65,341,734			64,310,507

End of Period	$	1,824,841,873		$	1,655,254,469		$	69,851,399		$	65,341,734

Undistributed net investment income (loss)	$	13,637,974		$	191,201		$	(65,660	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		3,287,004			5,644,780			288,368			484,688
Shares redeemed		(1,318,355	)		(4,705,250	)		(264,628	)		(707,207	)

		1,968,649			939,530			23,740			(222,519	)


	Large Growth Stock Fund						Large Cap Growth Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(254,856	)	$	(339,329	)	$	(31,333	)	$	(89,617	)
Net realized gains (loss) from investment transactions		4,675,689			7,026,841			2,160,088			1,601,561
Net realized foreign exchange gain (loss)		(288	)		(8,766	)		—			—
Capital gain distributions received from other investment companies		—			14			—			4
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		19,206,511			(9,012,901	)		707,684			(3,576,994	)

Net Increase (Decrease) in Net Assets Resulting from Operations		23,627,056			(2,334,141	)		2,836,439			(2,065,046	)

Capital Share Transactions (1):
Shares issued		14,652,701			27,607,858			2,690,552			11,662,499
Shares redeemed		(15,999,090	)		(22,953,942	)		(8,539,610	)		(5,674,092	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		(1,346,389	)		4,653,916			(5,849,058	)		5,988,407

Total Increase (Decrease)		22,280,667			2,319,775			(3,012,619	)		3,923,361
Net Assets:
Beginning of period		176,692,032			174,372,257			37,465,342			33,541,981

End of Period	$	198,972,699		$	176,692,032		$	34,452,723		$	37,465,342

Undistributed net investment income (loss)	$	(254,856	)	$	—		$	(31,333	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		849,956			1,797,646			280,820			1,329,859
Shares redeemed		(914,471	)		(1,468,001	)		(897,661	)		(617,821	)

		(64,515	)		329,645			(616,841	)		712,038

The accompanying notes are an integral part of these financial statements.

158

Penn Series Funds, Inc.

Statements of Changes in Net Assets


	Large Core Growth Fund						Large Cap Value Fund
	Six Months Ended 6/30/12			Year Ended 12/31/11			Six Months Ended 6/30/12			Year Ended 12/31/11
		(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(74,210	)	$	(123,224	)	$	1,005,013		$	2,132,088
Net realized gains (loss) from investment transactions		8,793,068			7,151,079			115,079			13,871,919
Capital gain distributions received from other investment companies		—			7			—			38
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		3,885,366			(13,029,979	)		6,397,555			(23,584,723	)

Net Increase (Decrease) in Net Assets Resulting from Operations		12,604,224			(6,002,117	)		7,517,647			(7,580,678	)

Capital Share Transactions (1):
Shares issued		2,538,675			6,881,273			7,261,992			27,399,098
Shares redeemed		(8,539,831	)		(23,635,513	)		(22,369,444	)		(21,679,867	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		(6,001,156	)		(16,754,240	)		(15,107,452	)		5,719,231

Total Increase (Decrease)		6,603,068			(22,756,357	)		(7,589,805	)		(1,861,447	)
Net Assets:
Beginning of period		100,397,093			123,153,450			166,056,069			167,917,516

End of Period	$	107,000,161		$	100,397,093		$	158,466,264		$	166,056,069

Undistributed net investment income (loss)	$	(74,210	)	$	—		$	967,099		$	(37,914	)
(1) Shares Issued and Redeemed:
Shares issued		243,550			702,548			494,433			1,915,541
Shares redeemed		(808,254	)		(2,478,819	)		(1,539,641	)		(1,517,983	)

		(564,704	)		(1,776,271	)		(1,045,208	)		397,558


	Large Core Value Fund						Index 500 Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,244,999		$	2,256,740		$	2,475,327		$	4,534,440
Net realized gains (loss) from investment transactions		3,192,850			1,514,874			818,896			(1,039,099	)
Net realized gains (loss) on futures contracts		—			—			139,904			(158,973	)
Capital gain distributions received from other investment companies		—			11			—			372
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		7,148,032			(10,136,876	)		21,403,094			1,510,026

Net Increase (Decrease) in Net Assets Resulting from Operations		11,585,881			(6,365,251	)		24,837,221			4,846,766

Capital Share Transactions (1):
Shares issued		4,597,211			21,731,745			21,955,355			40,995,407
Shares redeemed		(7,857,370	)		(31,205,152	)		(23,948,859	)		(42,556,815	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		(3,260,159	)		(9,473,407	)		(1,993,504	)		(1,561,408	)

Total Increase (Decrease)		8,325,722			(15,838,658	)		22,843,717			3,285,358
Net Assets:
Beginning of period		143,146,699			158,985,357			267,009,040			263,723,682

End of Period	$	151,472,421		$	143,146,699		$	289,852,757		$	267,009,040

Undistributed net investment income (loss)	$	1,244,999		$	—		$	2,478,552		$	3,225
(1) Shares Issued and Redeemed:
Shares issued		483,814			2,414,557			2,185,043			4,492,253
Shares redeemed		(831,724	)		(3,438,172	)		(2,381,042	)		(4,652,941	)

		(347,910	)		(1,023,615	)		(195,999	)		(160,688	)

The accompanying notes are an integral part of these financial statements.

159

Penn Series Funds, Inc.

Statements of Changes in Net Assets


	Mid Cap Growth Fund						Mid Cap Value Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(230,434	)	$	(470,247	)	$	593,447		$	783,545
Net realized gains (loss) from investment transactions		3,299,638			15,817,273			2,237,590			16,609,678
Capital gain distributions received from other investment companies		—			299			—			197
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		2,060,091			(23,690,557	)		3,750,254			(24,906,501	)

Net Increase (Decrease) in Net Assets Resulting from Operations		5,129,295			(8,343,232	)		6,581,291			(7,513,081	)

Capital Share Transactions (1):
Shares issued		7,096,666			26,475,051			3,332,007			13,222,693
Shares redeemed		(10,542,536	)		(26,112,684	)		(6,631,521	)		(27,892,724	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		(3,445,870	)		362,367			(3,299,514	)		(14,670,031	)

Total Increase (Decrease)		1,683,425			(7,980,865	)		3,281,777			(22,183,112	)
Net Assets:
Beginning of period		99,083,090			107,063,955			97,047,959			119,231,071

End of Period	$	100,766,515		$	99,083,090		$	100,329,736		$	97,047,959

Undistributed net investment income (loss)	$	(230,434	)	$	(470,247	)	$	604,423		$	10,976
(1) Shares Issued and Redeemed:
Shares issued		696,258			2,586,123			262,597			1,071,865
Shares redeemed		(1,024,369	)		(2,555,675	)		(524,994	)		(2,314,817	)

		(328,111	)		30,448			(262,397	)		(1,242,952	)


	Mid Core Value Fund						SMID Cap Growth Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	212,523		$	162,000		$	(132,034	)	$	(201,350	)
Net realized gains (loss) from investment transactions		3,137,350			4,468,362			290,299			4,928,639
Capital gain distributions received from other investment companies		—			101			—			8
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(1,132,457	)		(5,033,277	)		2,790,396			(5,952,164	)

Net Increase (Decrease) in Net Assets Resulting from Operations		2,217,416			(402,814	)		2,948,661			(1,224,867	)

Capital Share Transactions (1):
Shares issued		5,865,839			17,749,926			7,762,231			8,051,767
Shares redeemed		(4,782,600	)		(9,890,421	)		(2,642,438	)		(5,094,037	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		1,083,239			7,859,505			5,119,793			2,957,730

Total Increase (Decrease)		3,300,655			7,456,691			8,068,454			1,732,863
Net Assets:
Beginning of period		60,179,405			52,722,714			26,996,259			25,263,396

End of Period	$	63,480,060		$	60,179,405		$	35,064,713		$	26,996,259

Undistributed net investment income (loss)	$	235,497		$	22,974		$	(132,034	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		535,819			1,820,462			582,833			667,154
Shares redeemed		(433,719	)		(920,072	)		(195,849	)		(420,444	)

		102,100			900,390			386,984			246,710

The accompanying notes are an integral part of these financial statements.

160

Penn Series Funds, Inc.

Statements of Changes in Net Assets


	SMID Cap Value Fund						Small Cap Growth Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	85,707		$	78,242		$	(407,433	)	$	(620,333	)
Net realized gains (loss) from investment transactions		1,719,215			2,699,204			2,657,712			9,222,596
Net realized gains (loss) on futures contracts		—			—			—			—
Capital gain distributions received from other investment companies		—			2			—			275
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		459,668			(4,740,942	)		1,604,141			(17,791,439	)

Net Increase (Decrease) in Net Assets Resulting from Operations		2,264,590			(1,963,494	)		3,854,420			(9,188,901	)

Capital Share Transactions (1):
Shares issued		6,040,905			13,534,382			3,631,983			15,350,262
Shares redeemed		(4,682,852	)		(5,387,992	)		(8,316,583	)		(15,899,144	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		1,358,053			8,146,390			(4,684,600	)		(548,882	)

Total Increase (Decrease)		3,622,643			6,182,896			(830,180	)		(9,737,783	)
Net Assets:
Beginning of period		32,948,733			26,765,837			78,446,714			88,184,497

End of Period	$	36,571,376		$	32,948,733		$	77,616,534		$	78,446,714

Undistributed net investment income (loss)	$	85,707		$	—		$	(407,433	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		472,655			1,131,399			181,908			766,922
Shares redeemed		(369,374	)		(435,757	)		(418,616	)		(763,422	)

		103,281			695,642			(236,708	)		3,500


	Small Cap Value Fund						Small Cap Index Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,049,379		$	815,724		$	166,890		$	190,837
Net realized gains (loss) from investment transactions		8,307,377			10,081,174			997,793			1,463,996
Net realized gains (loss) on futures contracts		—			—			58,037			80,549
Capital gain distributions received from other investment companies		—			276			—			55
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		833,446			(9,152,921	)		1,095,215			(2,875,329	)

Net Increase (Decrease) in Net Assets Resulting from Operations		10,190,202			1,744,253			2,317,935			(1,139,892	)

Capital Share Transactions (1):
Shares issued		6,286,298			18,205,579			5,901,222			11,505,624
Shares redeemed		(10,458,542	)		(23,938,469	)		(2,491,190	)		(5,114,047	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		(4,172,244	)		(5,732,890	)		3,410,032			6,391,577

Total Increase (Decrease)		6,017,958			(3,988,637	)		5,727,967			5,251,685
Net Assets:
Beginning of period		159,364,865			163,353,502			29,201,816			23,950,131

End of Period	$	165,382,823		$	159,364,865		$	34,929,783		$	29,201,816

Undistributed net investment income (loss)	$	1,049,379		$	—		$	166,890		$	—
(1) Shares Issued and Redeemed:
Shares issued		360,351			1,153,191			515,507			1,064,653
Shares redeemed		(609,315	)		(1,489,454	)		(220,692	)		(466,411	)

		(248,964	)		(336,263	)		294,815			598,242

The accompanying notes are an integral part of these financial statements.

161

Penn Series Funds, Inc.

Statements of Changes in Net Assets


	Developed International Index Fund						International Equity Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
		(Unaudited	)					(Unaudited	)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,379,806		$	1,695,226		$	3,751,674		$	6,261,878
Net realized gains (loss) from investment transactions		(372,096	)		(271,784	)		22,258,634			6,482,081
Net realized gains (loss) on futures contracts		(45,492	)		(163,507	)		—			—
Net realized foreign exchange gain (loss)		5,145			936			(364,588	)		(5,246,874	)
Capital gain distributions received from other investment companies		—			2			—			84
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		1,165,549			(9,633,728	)		(1,924,625	)		(3,771,669	)

Net Increase (Decrease) in Net Assets Resulting from Operations		2,132,912			(8,372,855	)		23,721,095			3,725,500

Capital Share Transactions (1):
Shares issued		8,241,380			21,666,360			12,442,312			31,266,226
Shares redeemed		(3,080,218	)		(7,235,871	)		(17,450,455	)		(45,178,865	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		5,161,162			14,430,489			(5,008,143	)		(13,912,639	)

Total Increase (Decrease)		7,294,074			6,057,634			18,712,952			(10,187,139	)
Net Assets:
Beginning of period		61,857,684			55,800,050			309,920,375			320,107,514

End of Period	$	69,151,758		$	61,857,684		$	328,633,327		$	309,920,375

Undistributed net investment income (loss)	$	1,313,782		$	(66,024	)	$	(690,043	)	$	(4,441,717	)
(1) Shares Issued and Redeemed:
Shares issued		912,973			2,302,313			659,801			1,770,841
Shares redeemed		(341,273	)		(776,697	)		(923,925	)		(2,514,878	)

		571,700			1,525,616			(264,124	)		(744,037	)


	Emerging Markets Equity Fund						Real Estate Securities Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
		(Unaudited	)					(Unaudited	)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	492,554		$	837,729		$	840,854		$	801,373
Net realized gains (loss) from investment transactions		(2,370,075	)		1,214,389			4,719,160			7,433,978
Net realized gains (loss) on futures contracts		—			—			—			—
Net realized foreign exchange gain (loss)		(110,197	)		(534,753	)		—			—
Capital gain distributions received from other investment companies		—			10			—			3
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		9,069,727			(27,770,983	)		4,904,571			(3,273,429	)

Net Increase (Decrease) in Net Assets Resulting from Operations		7,082,009			(26,253,608	)		10,464,585			4,961,925

Capital Share Transactions (1):
Shares issued		10,687,383			27,555,524			7,362,441			12,712,049
Shares redeemed		(7,013,504	)		(22,088,937	)		(4,920,280	)		(9,747,478	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		3,673,879			5,466,587			2,442,161			2,964,571

Total Increase (Decrease)		10,755,888			(20,787,021	)		12,906,746			7,926,496
Net Assets:
Beginning of period		121,065,505			141,852,526			76,346,073			68,419,577

End of Period	$	131,821,393		$	121,065,505		$	89,252,819		$	76,346,073

Undistributed net investment income (loss)	$	470,419		$	(22,136	)	$	840,854		$	—
(1) Shares Issued and Redeemed:
Shares issued		1,026,214			2,579,492			586,932			1,130,708
Shares redeemed		(676,405	)		(2,026,110	)		(394,934	)		(860,104	)

		349,809			553,382			191,998			270,604

The accompanying notes are an integral part of these financial statements.

162

Penn Series Funds, Inc.

Statements of Changes in Net Assets


	Aggressive Allocation Fund						Moderately Aggressive Allocation Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(52,269	)	$	(89,262	)	$	(238,309	)	$	(428,830	)
Net realized gains (loss) from investment transactions		53,538			(35,049	)		(59,347	)		(273,400	)
Capital gain distributions received from other investment companies		—			1			—			2
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		1,950,346			(927,543	)		8,473,984			(2,384,516	)

Net Increase (Decrease) in Net Assets Resulting from Operations		1,951,615			(1,051,853	)		8,176,328			(3,086,744	)

Capital Share Transactions (1):
Shares issued		4,632,020			8,256,425			15,759,399			37,129,245
Shares redeemed		(576,393	)		(3,278,603	)		(9,685,830	)		(18,358,801	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		4,055,627			4,977,822			6,073,569			18,770,444

Total Increase (Decrease)		6,007,242			3,925,969			14,249,897			15,683,700
Net Assets:
Beginning of period		28,182,458			24,256,489			134,967,700			119,284,000

End of Period	$	34,189,700		$	28,182,458		$	149,217,597		$	134,967,700

Undistributed net investment income (loss)	$	(52,269	)	$	—		$	(238,309	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		432,346			793,723			1,351,771			3,318,376
Shares redeemed		(53,704	)		(312,759	)		(850,408	)		(1,680,334	)

		378,642			480,964			501,363			1,638,042


	Moderate Allocation Fund						Moderately Conservative Allocation Fund
	For the six months ended 6/30/12			For the year ended 12/31/11			For the six months ended 6/30/12			For the year ended 12/31/11
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(388,830	)	$	(686,767	)	$	(153,754	)	$	(265,534	)
Net realized gains (loss) from investment transactions		1,221,328			1,540,791			728,519			615,839
Capital gain distributions received from other investment companies		—			3			—			2
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		10,643,679			(160,260	)		3,068,073			1,722,254

Net Increase (Decrease) in Net Assets Resulting from Operations		11,476,177			693,767			3,642,838			2,072,561

Capital Share Transactions (1):
Shares issued		25,514,215			44,078,474			10,018,899			26,903,998
Shares redeemed		(5,199,280	)		(20,248,487	)		(10,466,411	)		(12,138,187	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		20,314,935			23,829,987			(447,512	)		14,765,811

Total Increase (Decrease)		31,791,112			24,523,754			3,195,326			16,838,372
Net Assets:
Beginning of period		224,255,639			199,731,885			89,677,191			72,838,819

End of Period	$	256,046,751		$	224,255,639		$	92,872,517		$	89,677,191

Undistributed net investment income (loss)	$	(388,830	)	$	—		$	(153,754	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		2,255,176			4,042,085			885,669			2,475,222
Shares redeemed		(460,677	)		(1,889,173	)		(922,301	)		(1,121,043	)

		1,794,499			2,152,912			(36,632	)		1,354,179

The accompanying notes are an integral part of these financial statements.

163

Penn Series Funds, Inc.

Statements of Changes in Net Assets


	Conservative Allocation Fund
	Six Months Ended 6/30/12			Year Ended 12/31/11
	(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(106,779	)	$	(173,485	)
Net realized gains (loss) from investment transactions		470,014			233,499
Capital gain distributions received from other investment companies		—			2
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		1,462,163			2,115,152

Net Increase (Decrease) in Net Assets Resulting from Operations		1,825,398			2,175,168

Capital Share Transactions (1):
Shares issued		11,476,250			30,482,170
Shares redeemed		(6,015,916	)		(15,089,803	)

Net Increase (Decrease) in Net Assets from Capital Share Transactions		5,460,334			15,392,367

Total Increase (Decrease)		7,285,732			17,567,535
Net Assets:
Beginning of period		63,095,531			45,527,996

End of Period	$	70,381,263		$	63,095,531

Undistributed net investment income (loss)	$	(106,779	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		1,012,316			2,794,967
Shares redeemed		(528,909	)		(1,378,710	)

		483,407			1,416,257

The accompanying notes are an integral part of these financial statements.

164

Penn Series Funds, Inc.

Financial Highlights

MONEY MARKET FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31
	Six Months Ended June 30, 2012¹ (Unaudited)			2011¹			2010 ¹			2009¹			2008¹			2007
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00

Income from investment operations:
Net investment income (loss)		—	^(a)		—	^(a)		—	^(a)		—	^(a)		0.03			0.05
Net realized and unrealized gain (loss) on investment transactions		—			—			—			—			—			—

Total from investment operations		—			—			—			—			0.03			0.05

Less distributions:
Net investment income		—	^(a)		—	^(a)		—	^(a)		—	^(a)		(0.03	)		(0.05	)

Total distributions		—			—			—			—			(0.03	)		(0.05	)

Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00

Total return ^{2, 3}		0.01%	#		0.01%			0.01%			0.44%			2.68%			4.98%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	142,927		$	154,213		$	139,988		$	168,500		$	213,973		$	96,017

Ratio of net expenses to average net assets		0.22%	*		0.22%			0.33%			0.43%			0.46%			0.49%

Ratio of total expenses to average net assets		0.50%	*		0.49%			0.47%			0.48%			0.46%			0.49%

Ratio of net investment income (loss) to average net assets		0.01%	*		0.01%			0.01%			0.47%			2.57%			4.88%

* Annualized # Non-annualized ¹ The average shares outstanding method has been applied for per share information. ² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. ³ The Fund’s total return calculation includes a payment by an affiliate. Excluding the effect of this payment from the Fund’s ending net asset value per share, total return for the year ended December 31, 2008 would have been 2.39%. ^(a)Distributions were less than one penny per share.

LIMITED MATURITY BOND FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011¹			2010 ¹			2009¹			2008¹			2007
Net asset value, beginning of period	$	11.42		$	11.17		$	10.76		$	10.57		$	10.41		$	10.28

Income from investment operations:
Net investment income (loss)		0.06			0.13			0.17			0.23			0.34			0.41
Net realized and unrealized gain (loss) on investment transactions		(0.02	)		0.12			0.24			(0.04	)		0.18			0.13

Total from investment operations		0.04			0.25			0.41			0.19			0.52			0.54

Less distributions:
Net investment income		—			—			—			—			(0.36	)		(0.41	)

Total distributions		—			—			—			—			(0.36	)		(0.41	)

Net asset value, end of period	$	11.46		$	11.42		$	11.17		$	10.76		$	10.57		$	10.41

Total return ²		0.35%	#		2.24%			3.71%			1.89%			5.03%			5.22%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	157,507		$	174,290		$	152,447		$	111,501		$	75,660		$	57,523

Ratio of total expenses to average net assets		0.58%	*		0.58%			0.58%			0.60%			0.60%			0.60%

Ratio of net investment income (loss) to average net assets		0.98%	*		1.14%			1.56%			2.20%			3.24%			4.55%

Portfolio turnover rate		15%	#		50%			38%			64%			106%			39%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

The accompanying notes are an integral part of these financial statements.

165

Penn Series Funds, Inc.

Financial Highlights

QUALITY BOND FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010 ¹		2009¹			2008¹			2007
Net asset value, beginning of period	$	12.73		$	11.56		$	10.90	$	10.36		$	10.50		$	10.31

Income from investment operations:
Net investment income (loss)		0.14			0.32			0.28		0.36			0.47			0.47
Net realized and unrealized gain (loss) on investment transactions		0.13			0.85			0.38		0.26			0.07			0.18

Total from investment operations		0.27			1.17			0.66		0.62			0.54			0.65

Less distributions:
Net investment income		—			—			—		—	^(a)		(0.50	)		(0.46	)
Net realized gains		—			—			—		(0.08	)		(0.18	)		—

Total distributions		—			—			—		(0.08	)		(0.68	)		(0.46	)

Net asset value, end of period	$	13.00		$	12.73		$	11.56	$	10.90		$	10.36		$	10.50

Total return ²		2.12%	#		10.12%			6.06%		6.02%			5.10%			6.33%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	524,949		$	477,606		$	418,957	$	327,724		$	221,730		$	183,611

Ratio of total expenses to average net assets		0.57%	*		0.57%			0.58%		0.61%			0.60%			0.59%

Ratio of net investment income (loss) to average net assets		2.18%	*		2.62%			2.48%		3.38%			4.44%			4.71%

Portfolio turnover rate		16%	#		44%			69%		87%			273%			55%

* Annualized # Non-annualized ¹The average shares outstanding method has been applied for per share information. ²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. ^(a)Distributions were less than one penny per share.

HIGH YIELD BOND FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010 ¹		2009¹			2008¹			2007
Net asset value, beginning of period	$	8.72		$	8.46		$	7.41	$	5.05		$	7.58		$	7.88

Income (loss) from investment operations:
Net investment income (loss)		0.30			0.62			0.61		0.56			0.58			0.58
Net realized and unrealized gain (loss) on investment transactions		0.28			(0.36	)		0.44		1.80			(2.40	)		(0.30	)

Total from investment operations		0.58			0.26			1.05		2.36			(1.82	)		0.28

Less distributions:
Net investment income		—			—			—		—			(0.71	)		(0.58	)

Total distributions		—			—			—		—			(0.71	)		—

Net asset value, end of period	$	9.30		$	8.72		$	8.46	$	7.41		$	5.05		$	7.58

Total return ²		6.65%	#		3.07%			14.17%		46.44%			(23.98%	)		3.57%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	158,986		$	141,290		$	131,682	$	103,574		$	57,995		$	86,451

Ratio of total expenses to average net assets		0.83%	*		0.83%			0.85%		0.87%			0.86%			0.84%

Ratio of net investment income (loss) to average net assets		6.71%	*		7.16%			7.73%		8.97%			8.29%			6.97%

Portfolio turnover rate		34%	#		58%			61%		59%			53%			67%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

166

Penn Series Funds, Inc.

Financial Highlights

FLEXIBLY MANAGED FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹		2010 ¹		2009¹			2008¹			2007
Net asset value, beginning of period	$	25.46		$	24.71	$	21.69	$	16.33		$	23.72		$	25.12

Income (loss) from investment operations:
Net investment income (loss)		0.20			0.40		0.35		0.41			0.46			0.59
Net realized and unrealized gain (loss) on investment transactions		1.59			0.35		2.67		4.95			(6.99	)		0.52

Total from investment operations		1.79			0.75		3.02		5.36			(6.53	)		1.11

Less distributions:
Net investment income		—			—		—		—	^(a)		(0.59	)		(0.58	)
Net realized gains		—			—		—		—			(0.27	)		(1.93	)

Total distributions		—			—		—		—			(0.86	)		(2.51	)

Net asset value, end of period	$	27.25		$	25.46	$	24.71	$	21.69		$	16.33		$	23.72

Total return ²		7.03%	#		3.04%		13.92%		32.92%			(27.83%	)		4.47%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	1,824,842		$	1,655,254	$	1,583,104	$	1,286,902		$	948,507		$	1,440,753

Ratio of total expenses to average net assets		0.84%	*		0.84%		0.85%		0.85%			0.85%			0.83%

Ratio of net investment income (loss) to average net assets		1.52%	*		1.60%		1.55%		2.22%			2.15%			2.34%

Portfolio turnover rate		36%	#		83%		67%		89%			103%			61%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

^(a)	Distributions were less than one penny per share.

BALANCED FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008 ¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010 ¹			2009¹			For the period August 25, 2008 through December 31, 2008 ¹
Net asset value, beginning of period	$	11.40		$	10.80		$	9.67		$	8.19		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		(0.02	)		(0.02	)		(0.01	)		0.28
Capital gain distributions received from affiliated funds		—			—			—			0.03			0.05
Net realized and unrealized gain (loss) on investment transactions		0.75			0.62			1.15			1.46			(1.81	)

Total from investment operations		0.74			0.60			1.13			1.48			(1.48	)

Less distributions:
Net investment income		—			—			—			—			(0.33	)

Total distributions		—			—			—			—			(0.33	)

Net asset value, end of period	$	12.14		$	11.40		$	10.80		$	9.67		$	8.19

Total return ²		6.49%	#		5.56%			11.69%			18.07%			(14.74%	)#

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	69,851		$	65,342		$	64,311		$	60,114		$	56,422

Ratio of net expenses to average net assets³		0.19%	*		0.18%			0.18%			0.17%			0.22%	*

Ratio of total expenses to average net assets ³		0.23%	*		0.24%			0.24%			0.24%			0.26%	*

Ratio of net investment income (loss) to average net assets		(0.19%	)*		(0.18%	)		(0.18%	)		(0.17%	)		9.09%	*

Portfolio turnover rate		8%	#		17%			18%			19%			23%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

³	The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio.

The accompanying notes are an integral part of these financial statements.

167

Penn Series Funds, Inc.

Financial Highlights

LARGE GROWTH STOCK FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			2008¹			2007
Net asset value, beginning of period	$	15.20		$	15.44		$	13.22		$	9.25		$	15.96		$	14.68

Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.03	)		(0.02	)		—	^(a)		0.03			0.06
Net realized and unrealized gain (loss) on investment transactions		2.04			(0.21	)		2.24			3.97			(6.71	)		1.28

Total from investment operations		2.02			(0.24	)		2.22			3.97			(6.68	)		1.34

Less distributions:
Net investment income		—			—			—			—	^(a)		(0.03	)		(0.06	)

Total distributions		—			—			—			—			(0.03	)		(0.06	)

Net asset value, end of period	$	17.22		$	15.20		$	15.44		$	13.22		$	9.25		$	15.96

Total return ²		13.29%	#		(1.55%	)		16.79%			42.93%			(41.87%	)		9.16%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	198,973		$	176,692		$	174,372		$	143,167		$	89,852		$	152,939

Ratio of total expenses to average net assets		0.92%	*		0.93%			0.94%			0.97%			0.98%			0.94%

Ratio of net investment income (loss) to average net assets		(0.26%	)*		(0.19%	)		(0.18%	)		0.02%			0.24%			0.37%

Portfolio turnover rate		18%	#		33%			43%			58%			54%			55%

* Annualized # Non-annualized ¹ The average shares outstanding method has been applied for per share information. ²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. ^(a)Distributions and net investment income were less than one penny per share.

LARGE CAP GROWTH FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			2008			2007
Net asset value, beginning of period	$	8.68		$	9.31		$	8.28		$	6.02		$	10.98		$	11.05

Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		(0.02	)		(0.01	)		0.02			0.02			0.06
Net realized and unrealized gain (loss) on investment transactions		0.64			(0.61	)		1.04			2.24			(4.79	)		0.45

Total from investment operations		0.63			(0.63	)		1.03			2.26			(4.77	)		0.51

Less distributions:
Net investment income		—			—			—			—			(0.03	)		(0.06	)
Net realized gains		—			—			—			—			(0.16	)		(0.52	)

Total distributions		—			—			—			—			(0.19	)		(0.58	)

Net asset value, end of period	$	9.31		$	8.68		$	9.31		$	8.28		$	6.02		$	10.98

Total return ²		7.26%	#		(6.77%	)		12.44%			37.54%			(43.82%	)		4.71%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	34,453		$	37,465		$	33,542		$	27,870		$	17,537		$	29,551

Ratio of net expenses to average net assets		0.89%	*		0.96%			1.00%			1.00%			0.96%			0.83%

Ratio of total expenses to average net assets		0.89%	*		0.96%			1.00%			1.12%			0.96%			0.87%

Ratio of net investment income (loss) to average net assets		(0.15%	)*		(0.25%	)		(0.10%	)		0.22%			0.19%			0.53%

Portfolio turnover rate		60%	#		153%			176%			121%			287%			55%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

168

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE GROWTH FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	9.29		$	9.78		$	8.34		$	6.14		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		(0.01	)		—			0.03			0.02
Net realized and unrealized gain (loss) on investment transactions		1.16			(0.48	)		1.44			2.17			(3.87	)

Total from investment operations		1.15			(0.49	)		1.44			2.20			(3.85	)

Less distributions:
Net investment income		—			—			—			—	^(a)		(0.01	)

Total distributions		—			—			—			—			(0.01	)

Net asset value, end of period	$	10.44		$	9.29		$	9.78		$	8.34		$	6.14

Total return ²		12.38%	#		(5.01%	)		17.27%			35.89%			(38.45%	)#

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	107,000		$	100,397		$	123,153		$	126,510		$	100,096

Ratio of net expenses to average net assets		0.90%	*		0.90%			0.71%			0.64%			0.64%	*

Ratio of total expenses to average net assets		0.90%	*		0.90%			0.85%			0.86%			0.90%	*

Ratio of net investment income (loss) to average net assets		(0.14%	)*		(0.11%	)		(0.01%	)		0.50%			0.69%	*

Portfolio turnover rate		57%	#		115%			115%			155%			55%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

^(a)	Distributions were less than one penny per share.

LARGE CAP VALUE FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010 ¹		2009¹		2008			2007
Net asset value, beginning of period	$	13.83		$	14.47		$	12.60	$	9.43	$	17.65		$	19.60

Income (loss) from investment operations:
Net investment income (loss)		0.08			0.18			0.11		0.16		0.20			0.26
Net realized and unrealized gain (loss) on investment transactions		0.55			(0.82	)		1.76		3.01		(8.05	)		0.45

Total from investment operations		0.63			(0.64	)		1.87		3.17		(7.85	)		0.71

Less distributions:
Net investment income		—			—			—		—		(0.25	)		(0.29	)
Net realized gains		—			—			—		—		(0.12	)		(2.37	)

Total distributions		—			—			—		—		(0.37	)		(2.66	)

Net asset value, end of period	$	14.46		$	13.83		$	14.47	$	12.60	$	9.43		$	17.65

Total return ²		4.56%	#		(4.42%	)		14.84%		33.62%		(44.62%	)		3.73%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	158,466		$	166,056		$	167,918	$	143,038	$	106,616		$	219,951

Ratio of net expenses to average net assets		0.88%	*		0.89%			0.89%		0.90%		0.90%			0.86%

Ratio of total expenses to average net assets		0.88%	*		0.89%			0.89%		0.90%		0.90%			0.87%

Ratio of net investment income (loss) to average net assets		1.16%	*		1.24%			0.86%		1.53%		1.42%			1.25%

Portfolio turnover rate		52%	#		87%			112%		120%		228%			92%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

169

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE VALUE FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,							For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹		2009¹		For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	8.92		$	9.31		$	8.43	$	7.22	$	10.00

Income (loss) from investment operations:
Net investment income (loss)		0.08			0.14			0.12		0.14		0.07
Net realized and unrealized gain (loss) on investment transactions		0.64			(0.53	)		0.76		1.07		(2.78	)

Total from investment operations		0.72			(0.39	)		0.88		1.21		(2.71	)

Less distributions:
Net investment income		—			—			—		—		(0.07	)

Total distributions		—			—			—		—		(0.07	)

Net asset value, end of period	$	9.64		$	8.92		$	9.31	$	8.43	$	7.22

Total return ²		8.07%	#		(4.19%	)		10.44%		16.76%		(27.05%	)#

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	151,472		$	143,147		$	158.985	$	149,973	$	114,167

Ratio of net expenses to average net assets		0.89%	*		0.89%			0.61%		0.54%		0.54%	*

Ratio of total expenses to average net assets		0.89%	*		0.89%			0.75%		0.75%		0.79%	*

Ratio of net investment income (loss) to average net assets		1.67%	*		1.52%			1.46%		1.94%		2.40%	*

Portfolio turnover rate		23%	#		51%			35%		62%		31%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

INDEX 500 FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹		2010¹		2009¹		2008			2007
Net asset value, beginning of period	$	9.25		$	9.09	$	7.92	$	6.28	$	10.11		$	9.78

Income (loss) from investment operations:
Net investment income (loss)		0.09			0.16		0.14		0.13		0.17			0.17
Net realized and unrealized gain (loss) on investment transactions		0.77			—		1.03		1.51		(3.82	)		0.33

Total from investment operations		0.86			0.16		1.17		1.64		(3.65	)		0.50

Less distributions:
Net investment income		—			—		—		—		(0.18	)		(0.17	)

Total distributions		—			—		—		—		(0.18	)		(0.17	)

Net asset value, end of period	$	10.11		$	9.25	$	9.09	$	7.92	$	6.28		$	10.11

Total return ²		9.30%	#		1.76%		14.77%		26.11%		(36.08%	)		5.09%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	289,853		$	267,009	$	263,724	$	249,284	$	195,078		$	254,462

Ratio of net expenses to average net assets		0.35%	*		0.35%		0.35%		0.35%		0.35%			0.35%

Ratio of total expenses to average net assets		0.35%	*		0.36%		0.36%		0.37%		0.37%			0.35%

Ratio of net investment income (loss) to average net assets		1.76%	*		1.71%		1.68%		1.97%		2.02%			1.64%

Portfolio turnover rate		1%	#		4%		5%		6%		6%			4%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

170

Penn Series Funds, Inc.

Financial Highlights

MID CAP GROWTH FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			2008¹			2007
Net asset value, beginning of period	$	9.37		$	10.16		$	8.01		$	5.42		$	10.60		$	8.47

Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.01	)		(0.01	)		(0.02	)		(0.04	)
Net realized and unrealized gain (loss) on investment transactions		0.49			(0.75	)		2.16			2.60			(5.16	)		2.17

Total from investment operations		0.47			(0.79	)		2.15			2.59			(5.18	)		2.13

Net asset value, end of period	$	9.84		$	9.37		$	10.16		$	8.01		$	5.42		$	10.60

Total return ²		5.02%	#		(7.78%	)		26.84%			47.79%			(48.87%	)		25.15%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	100,767		$	99,083		$	107,064		$	82,895		$	57,747		$	112,637

Ratio of net expenses to average net assets		1.00%	*		1.00%			1.00%			1.00%			1.00%			0.97%

Ratio of total expenses to average net assets		1.00%	*		1.00%			1.00%			1.01%			1.02%			1.00%

Ratio of net investment income (loss) to average net assets		(0.43%	)*		(0.42%	)		(0.14%	)		(0.22%	)		(0.20%	)		(0.46%	)

Portfolio turnover rate		70%	#		110%			106%			102%			162%			137%

* Annualized # Non-annualized ¹ The average shares outstanding method has been applied for per share information. ² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented.

MID CAP VALUE FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			2008¹			2007
Net asset value, beginning of period	$	11.80		$	12.59		$	10.01		$	6.81		$	13.12		$	13.59

Income (loss) from investment operations:
Net investment income (loss)		0.07			0.09			0.08			0.05			0.10			0.11
Net realized and unrealized gain (loss) on investment transactions		0.73			(0.88	)		2.50			3.15			(6.31	)		0.38

Total from investment operations		0.80			(0.79	)		2.58			3.20			(6.21	)		0.49

Less distributions:
Net investment income		—			—			—			—			(0.10	)		(0.13	)
Return of capital		—			—			—			—			—			(0.03	)
Net realized gains		—			—			—			—			—			(0.80	)

Total distributions		—			—			—			—			(0.10	)		(0.96	)

Net asset value, end of period	$	12.60		$	11.80		$	12.59		$	10.01		$	6.81		$	13.12

Total return ²		6.78%	#		(6.27%	)		25.77%			46.99%			(47.26%	)		3.77%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	100,330		$	97,048		$	119,231		$	92,662		$	60,507		$	125,718

Ratio of net expenses to average net assets		0.85%	*		0.84%			0.84%			0.85%			0.86%			0.79%

Ratio of total expenses to average net assets		0.85%	*		0.84%			0.84%			0.85%			0.86%			0.83%

Ratio of net investment income (loss) to average net assets		1.17	*		0.70%			0.71%			0.69%			0.89%			0.73%

Portfolio turnover rate		21%	#		106%			37%			43%			58%			73%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

171

Penn Series Funds, Inc.

Financial Highlights

MID CORE VALUE FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹		2009¹		2008¹			2007
Net asset value, beginning of period	$	10.37		$	10.75		$	8.57	$	6.80	$	11.78		$	13.23

Income (loss) from investment operations:
Net investment income (loss)		0.04			0.03			0.05		0.03		0.14			0.07
Net realized and unrealized gain (loss) on investment transactions		0.34			(0.41	)		2.13		1.74		(4.66	)		0.03

Total from investment operations		0.38			(0.38	)		2.18		1.77		(4.52	)		0.10

Less distributions:
Net investment income		—			—			—		—		(0.16	)		(0.07	)
Net realized gains		—			—			—		—		(0.30	)		(1.48	)

Total distributions		—			—			—		—		(0.46	)		(1.55	)

Net asset value, end of period	$	10.75		$	10.37		$	10.75	$	8.57	$	6.80		$	11.78

Total return ²		3.66%			(3.53%	)		25.44%		26.03%		(38.89%	)		0.85%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	63,480		$	60,179		$	52,723	$	40,508	$	29,895		$	48,465

Ratio of net expenses to average net assets		1.07%	*		1.08%			1.11%		1.20%		1.08%			1.04%

Ratio of total expenses to average net assets		1.07%	*		1.08%			1.11%		1.20%		1.08%			1.05%

Ratio of net investment income (loss) to average net assets		0.67%	*		0.29%			0.49%		0.43%		1.49%			0.57%

Portfolio turnover rate		42%	#		51%			75%		116%		39%			40%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

SMID CAP GROWTH FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	11.92		$	12.51		$	10.01		$	6.51		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		(0.06	)		(0.09	)		(0.04	)		(0.04	)		(0.01	)
Net realized and unrealized gain (loss) on investment transactions		1.36			(0.50	)		2.54			3.54			(3.48	)

Total from investment operations		1.30			(0.59	)		2.50			3.50			(3.49	)

Net asset value, end of period	$	13.22		$	11.92		$	12.51		$	10.01		$	6.51

Total return ²		10.91%	#		(4.72%	)		24.85%			54.15%			(35.00%	)#

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	35,065		$	26,996		$	25,263		$	21,806		$	4,250

Ratio of net expenses to average net assets		1.05%	*		1.05%			1.05%			1.05%			1.05%	*

Ratio of total expenses to average net assets		1.12%	*		1.13%			1.23%			1.41%			1.69%	*

Ratio of net investment income (loss) to average net assets		(0.85%	)*		(0.77%	)		(0.36%	)		(0.43%	)		(0.36%	)*

Portfolio turnover rate		54%	#		160%			95%			65%			21%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

172

Penn Series Funds, Inc.

Financial Highlights

SMID CAP VALUE FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,							For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹		2009¹		For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	11.66		$	12.56		$	9.90	$	6.80	$	10.00

Income (loss) from investment operations:
Net investment income (loss)		0.03			0.03			0.02		0.02		0.04
Net realized and unrealized gain (loss) on investment transactions		0.79			(0.93	)		2.64		3.08		(3.21	)

Total from investment operations		0.82			(0.90	)		2.66		3.10		(3.17	)

Less distributions:
Net investment income		—			—			—		—		(0.03	)

Total distributions		—			—			—		—		(0.03	)

Net asset value, end of period	$	12.48		$	11.66		$	12.56	$	9.90	$	6.80

Total return ¹		7.03%	#		(7.17%	)		26.87%		45.59%		(31.64%	)#

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	36,571		$	32,949		$	26,766	$	21,142	$	4,752

Ratio of net expenses to average net assets		1.14%	*		1.14%			1.14%		1.14%		1.14%	*

Ratio of total expenses to average net assets		1.28%	*		1.31%			1.36%		1.52%		1.83%	*

Ratio of net investment income (loss) to average net assets		0.47%	*		0.27%			0.22%		0.30%		1.37%	*

Portfolio turnover rate		28%	#		69%			81%		49%		14%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

SMALL CAP GROWTH FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			2008¹			2007
Net asset value, beginning of period	$	18.16		$	20.43		$	17.15		$	10.81		$	21.64		$	20.09

Income (loss) from investment operations:
Net investment income (loss)		(0.10	)		(0.15	)		(0.08	)		(0.09	)		(0.09	)		(0.11	)
Net realized and unrealized gain (loss) on investment transactions		0.95			(2.12	)		3.36			6.43			(10.74	)		1.66

Total from investment operations		0.85			(2.27	)		3.28			6.34			(10.83	)		1.55

Net asset value, end of period	$	19.01		$	18.16		$	20.43		$	17.15		$	10.81		$	21.64

Total return ²		4.68%	#		(11.11%	)		19.13%			58.65%			(50.05%	)		7.72%

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	77,617		$	78,447		$	88,184		$	76,180		$	48,008		$	99,593

Ratio of total expenses to average net assets		1.09%	*		1.08%			1.08%			1.11%			1.07%			1.02%

Ratio of net investment income (loss) to average net assets		(0.98%	)*		(0.71%	)		(0.45%	)		(0.67%	)		(0.59%	)		(0.50%	)

Portfolio turnover rate		59%	#		125%			125%			163%			190%			107%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

173

Penn Series Funds, Inc.

Financial Highlights

SMALL CAP VALUE FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹		2010¹		2009¹		2008¹			2007
Net asset value, beginning of period	$	16.21		$	16.07	$	12.68	$	9.99	$	14.07		$	17.70

Income (loss) from investment operations:
Net investment income (loss)		0.11			0.08		0.11		0.09		0.09			0.12
Net realized and unrealized gain (loss) on investment transactions		0.94			0.06		3.28		2.60		(3.88	)		(1.03	)

Total from investment operations		1.05			0.14		3.39		2.69		(3.79	)		(0.91	)

Less distributions:
Net investment income		—			—		—		—		(0.11	)		(0.12	)
Net realized gains		—			—		—		—		(0.18	)		(2.60	)

Total distributions		—			—		—		—		(0.29	)		(2.72	)

Net asset value, end of period	$	17.26		$	16.21	$	16.07	$	12.68	$	9.99		$	14.07

Total return ²		6.48%	#		0.87%		26.74%		26.93%		(27.15%	)		(5.30%	)

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	165,383		$	159,365	$	163,354	$	132,952	$	109,336		$	170,004

Ratio of net expenses to average net assets		1.15%	*		1.15%		1.15%		1.15%		1.15%			1.14%

Ratio of total expenses to average net assets		1.15%	*		1.15%		1.15%		1.17%		1.15%			1.14%

Ratio of net investment income (loss) to average net assets		1.26%	*		0.51%		0.80%		0.86%		0.66%			0.64%

Portfolio turnover rate		27%	#		47%		49%		60%		66%			67%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

SMALL CAP INDEX FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,							For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹		2009¹		For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	10.58		$	11.08		$	8.78	$	6.96	$	10.00

Income (loss) from investment operations:
Net investment income (loss)		0.06			0.08			0.08		0.07		0.04
Net realized and unrealized gain (loss) on investment transactions		0.80			(0.58	)		2.22		1.75		(3.04	)

Total from investment operations		0.86			(0.50	)		2.30		1.82		(3.00	)

Less distributions:
Net investment income		—			—			—		—		(0.04	)

Total distributions		—			—			—		—		(0.04	)

Net asset value, end of period	$	11.44		$	10.58		$	11.08	$	8.78	$	6.96

Total return ²		8.13%	#		(4.51%	)		26.20%		26.15%		(29.96%	)#

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	34,930		$	29,202		$	23,950	$	21,431	$	8,208

Ratio of net expenses to average net assets		0.55%	*		0.55%			0.55%		0.55%		0.55%	*

Ratio of total expenses to average net assets		0.80%	*		0.91%			1.30%		2.01%		2.09%	*

Ratio of net investment income (loss) to average net assets		1.04%	*		0.70%			0.89%		0.94%		1.59%	*

Portfolio turnover rate		15%	#		18%			56%		22%		3%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

174

Penn Series Funds, Inc.

Financial Highlights

DEVELOPED INTERNATIONAL INDEX FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,								For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹		2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	8.59		$	9.83		$	9.15	$	7.12		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		0.19			0.27			0.20		0.18			0.05
Net realized and unrealized gain (loss) on investment transactions		0.11			(1.51	)		0.48		1.85			(2.90	)

Total from investment operations		0.30			(1.24	)		0.68		2.03			(2.85	)

Less distributions:
Net investment income		—			—			—		—	^(a)		(0.03	)

Total distributions		—			—			—		—			(0.03	)

Net asset value, end of period	$	8.89		$	8.59		$	9.83	$	9.15		$	7.12

Total return²		3.49%	#		(12.61%	)		7.43%		28.52%			(28.50%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	69,152		$	61,858		$	55,800	$	38,491		$	12,201

Ratio of net expenses to average net assets		0.59%	*		0.59%			0.59%		0.59%			0.59%	*

Ratio of total expenses to average net assets		1.01%	*		1.01%			1.21%		2.15%			4.65%	*

Ratio of net investment income (loss) to average net assets		4.13%	*		2.80%			2.27%		2.27%			2.06%	*

Portfolio turnover rate		1%	#		1%			6%		1%			—	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

^(a)	Distributions were less than one penny per share.

INTERNATIONAL EQUITY FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹		2009¹			2008¹			2007
Net asset value, beginning of period	$	17.71		$	17.55		$	15.80	$	13.12		$	24.09		$	24.27

Income (loss) from investment operations:
Net investment income (loss)		0.22			0.35			0.29		0.26			0.25			0.31
Net realized and unrealized gain (loss) on investment transactions		1.14			(0.19	)		1.46		2.58			(10.01	)		4.33

Total from investment operations		1.36			0.16			1.75		2.84			(9.76	)		4.64

Less distributions:
Net investment income		—			—			—		(0.16	)		(0.43	)		(0.15	)
Net realized gains		—			—			—		—			(0.78	)		(4.67	)

Total distributions		—			—			—		(0.16	)		(1.21	)		(4.82	)

Net asset value, end of period	$	19.07		$	17.71		$	17.55	$	15.80		$	13.12		$	24.09

Total return ²		7.68%	#		0.91%			11.08%		21.74%			(41.28%	)		20.05%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	328,633		$	309,920		$	320,108	$	270,907		$	213,117		$	381,328

Ratio of net expenses to average net assets		1.18%	*		1.20%			1.24%		1.27%			1.27%			1.16%

Ratio of total expenses to average net assets		1.18%	*		1.20%			1.24%		1.27%			1.27%			1.18%

Ratio of net investment income (loss) to average net assets		2.29%	*		1.95%			1.77%		1.89%			1.33%			1.14%

Portfolio turnover rate		30%	#		30%			34%		48%			108%			95%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

The accompanying notes are an integral part of these financial statements.

175

Penn Series Funds, Inc.

Financial Highlights

EMERGING MARKETS EQUITY FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,								For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹		2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	9.64		$	11.82		$	9.92	$	5.99		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		0.04			0.07			0.02		0.03			—
Net realized and unrealized gain (loss) on investment transactions		0.53			(2.25	)		1.88		3.90			(3.99	)

Total from investment operations		0.57			(2.18	)		1.90		3.93			(3.99	)

Less distributions:
Net investment income		—			—			—		—	^(a)		(0.02	)

Total distributions		—			—			—		—			(0.02	)

Net asset value, end of period	$	10.21		$	9.64		$	11.82	$	9.92		$	5.99

Total return ²		5.91%	#		(18.44%	)		19.15%		65.64%			(39.86%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	131,821		$	121,066		$	141,853	$	102,834		$	52,204

Ratio of net expenses to average net assets		1.68%	*		1.68%			1.62%		1.58%			1.58%	*

Ratio of total expenses to average net assets		1.80%	*		1.91%			2.07%		2.20%			1.83%	*

Ratio of net investment income (loss) to average net assets		0.74%	*		0.63%			0.21%		0.37%			0.04%	*

Portfolio turnover rate		24%	#		60%			62%		70%			37%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

^(a)	Distributions were less than one penny per share.

REAL ESTATE SECURITIES FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ^1, 3		2010¹		2009¹		2008¹			2007
Net asset value, beginning of period	$	11.56		$	10.80	$	8.63	$	6.82	$	12.00		$	18.10

Income (loss) from investment operations:
Net investment income (loss)		0.13			0.12		0.12		0.19		0.25			0.30
Net realized and unrealized gain (loss) on investment transactions		1.44			0.64		2.05		1.62		(5.02	)		(3.49	)

Total from investment operations		1.57			0.76		2.17		1.81		(4.77	)		(3.19	)

Less distributions:
Net investment income		—			—		—		—		(0.25	)		(0.33	)
Return of capital		—			—		—		—		(0.16	)		(0.16	)
Net realized gains		—			—		—		—		—			(2.42	)

Total distributions		—			—		—		—		(0.41	)		(2.91	)

Net asset value, end of period	$	13.13		$	11.56	$	10.80	$	8.63	$	6.82		$	12.00

Total return ²		13.58%	#		7.04%		25.14%		26.54%		(39.38%	)		(17.87%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	89,253		$	76,346	$	68,420	$	50,107	$	33,240		$	53,684

Ratio of total expenses to average net assets		1.01%	*		1.00%		1.01%		1.03%		1.02%			0.99%

Ratio of net investment income (loss) to average net assets		2.02%	*		1.09%		1.26%		2.93%		2.30%			1.37%

Portfolio turnover rate		52%	#		144%		180%		163%		86%			85%

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

³	Prior to May 1, 2011, the Real Estate Securities Fund was named the REIT Fund.

The accompanying notes are an integral part of these financial statements.

176

Penn Series Funds, Inc.

Financial Highlights

AGGRESSIVE ALLOCATION FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	10.01		$	10.39		$	8.96		$	6.95		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.03	)		(0.03	)		(0.01	)		0.24
Capital gain distributions received from affiliated funds		—			—			—			—			0.03
Net realized and unrealized gain (loss) on investment transactions		0.71			(0.35	)		1.46			2.02			(3.21	)

Total from investment operations		0.69			(0.38	)		1.43			2.01			(2.94	)

Less distributions:
Net investment income		—			—			—			—			(0.10	)
Net realized gains		—			—			—			—	^(a)		(0.01	)

Total distributions		—			—			—			—			(0.11	)

Net asset value, end of period	$	10.70		$	10.01		$	10.39		$	8.96		$	6.95

Total return ²		6.89%	#		(3.66%	)		15.96%			28.94%			(29.39%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	34,190		$	28,182		$	24,256		$	13,875		$	1,509

Ratio of net expenses to average net assets ³		0.33%	*		0.33%			0.33%			0.33%			0.33%	*

Ratio of total expenses to average net assets ³		0.36%	*		0.38%			0.40%			0.48%			2.97%	*

Ratio of net investment income (loss) to average net assets		(0.33%	)*		(0.33%	)		(0.33%	)		(0.16%	)		9.66%	*

Portfolio turnover rate		9%	#		29%			28%			39%			21%	#

* Annualized # Non-annualized ¹ The average shares outstanding method has been applied for per share information. ² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. ³ The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio. ^(a) Distributions were less than one penny per share.

MODERATELY AGGRESSIVE ALLOCATION FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	10.93		$	11.13		$	9.72		$	7.64		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.03	)		(0.02	)		0.39
Capital gain distributions received from affiliated funds		—			—			—			0.01			0.05
Net realized and unrealized gain (loss) on investment transactions		0.70			(0.16	)		1.44			2.09			(2.65	)

Total from investment operations		0.68			(0.20	)		1.41			2.08			(2.21	)

Less distributions:
Net investment income		—			—			—			—			(0.15	)
Net realized gains		—			—			—			—	^(a)		—	^(a)

Total distributions		—			—			—			—			(0.15	)

Net asset value, end of period	$	11.61		$	10.93		$	11.13		$	9.72		$	7.64

Total return ²		6.22%	#		(1.80%	)		14.51%			27.25%			(22.06%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	149,218		$	134,968		$	119,284		$	61,800		$	11,656

Ratio of net expenses to average net assets ³		0.32%	*		0.32%			0.33%			0.33%			0.33%	*

Ratio of total expenses to average net assets ³		0.32%	*		0.32%			0.33%			0.34%			0.70%	*

Ratio of net investment income (loss) to average net assets		(0.32%	)*		(0.32%	)		(0.33%	)		(0.18%	)		14.72%	*

Portfolio turnover rate		15%	#		30%			26%			49%			21%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

³	The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio.

^(a)	Distributions were less than one penny per share.

The accompanying notes are an integral part of these financial statements.

177

Penn Series Funds, Inc.

Financial Highlights

MODERATE ALLOCATION FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	10.80		$	10.73		$	9.56		$	7.93		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.03	)		(0.03	)		(0.02	)		0.40
Capital gain distributions received from affiliated funds		—			—			—			0.01			0.06
Net realized and unrealized gain (loss) on investment transactions		0.57			0.10			1.20			1.64			(2.34	)

Total from investment operations		0.55			0.07			1.17			1.63			(1.88	)

Less distributions:
Net investment income		—			—			—			—			(0.19	)
Net realized gains		—			—			—			—	^(a)		—	^(a)

Total distributions		—			—			—			—			(0.19	)

Net asset value, end of period	$	11.35		$	10.80		$	10.73		$	9.56		$	7.93

Total return ²		5.09%	#		0.65%			12.24%			20.58%			(18.77%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	256,047		$	224,256		$	199,732		$	100,677		$	13,244

Ratio of net expenses to average net assets ³		0.32%	*		0.32%			0.32%			0.33%			0.33%	*

Ratio of total expenses to average net assets ³		0.32%	*		0.32%			0.32%			0.33%			0.59%	*

Ratio of net investment income (loss) to average net assets		(0.32%	)*		(0.32%	)		(0.32%	)		(0.20%	)		14.00%	*

Portfolio turnover rate		10%	#		26%			22%			30%			23%	#

* Annualized # Non-annualized ¹ The average shares outstanding method has been applied for per share information. ² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total returns do not reflect expenses associated with variable contracts such as administrative fees, account charges and surrender charges, which if reflected would reduce the total returns for all periods presented. ³ The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio. ^(a) Distributions were less than one penny per share.

MODERATELY CONSERVATIVE ALLOCATION FUND For a share outstanding throughout each period
	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	10.96		$	10.67		$	9.75		$	8.40		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.03	)		(0.02	)		0.34
Capital gain distributions received from affiliated funds		—			—			—			0.02			0.06
Net realized and unrealized gain (loss) on investment transactions		0.46			0.33			0.95			1.35			(1.74	)

Total from investment operations		0.44			0.29			0.92			1.35			(1.34	)

Less distributions:
Net investment income		—			—			—			—	^(a)		(0.24	)
Net realized gains		—			—			—			—			(0.02	)

Total distributions		—			—			—			—			(0.26	)

Net asset value, end of period	$	11.40		$	10.96		$	10.67		$	9.75		$	8.40

Total return ²		4.01%	#		2.72%			9.32%			16.19%			(13.48%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	92,873		$	89,677		$	72,839		$	45,014		$	8,313

Ratio of net expenses to average net assets ³		0.33%	*		0.33%			0.33%			0.33%			0.33%	*

Ratio of total expenses to average net assets ³		0.33%	*		0.33%			0.34%			0.36%			0.61%	*

Ratio of net investment income (loss) to average net assets		(0.33%	)*		(0.33%	)		(0.33%	)		(0.22%	)		11.40%	*

Portfolio turnover rate		18%	#		30%			35%			46%			38%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

³	The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio.

^(a)	Distributions were less than one penny per share.

The accompanying notes are an integral part of these financial statements.

178

Penn Series Funds, Inc.

Financial Highlights

CONSERVATIVE ALLOCATION FUND

For a share outstanding throughout each period


	Six Months Ended June 30, 2012¹ (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008¹
	Six Months Ended June 30, 2012¹ (Unaudited)			2011 ¹			2010¹			2009¹			For the period August 25, 2008 through December 31, 2008¹
Net asset value, beginning of period	$	11.13		$	10.71		$	10.01		$	9.05		$	10.00

Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.03	)		(0.02	)		0.43
Capital gain distributions received from affiliated funds		—			—			—			0.02			0.07
Net realized and unrealized gain (loss) on investment transactions		0.33			0.46			0.73			0.97			(1.17	)

Total from investment operations		0.31			0.42			0.70			0.97			(0.67	)

Less distributions:
Net investment income		—			—			—			—	^(a)		(0.28	)
Net realized gains		—			—			—			(0.01	)		—

Total distributions		—			—			—			(0.01	)		(0.28	)

Net asset value, end of period	$	11.44		$	11.13		$	10.71		$	10.01		$	9.05

Total return ²		2.79%	#		3.92%			6.89%			10.80%			(6.64%	)#

Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	70,381		$	63,096		$	45,528		$	31,405		$	8,139

Ratio of net expenses to average net assets ³		0.33%	*		0.33%			0.33%			0.33%			0.33%	*

Ratio of total expenses to average net assets ³		0.33%	*		0.34%			0.35%			0.38%			0.63%	*

Ratio of net investment income (loss) to average net assets		(0.33%	)*		(0.33%	)		(0.33%	)		(0.21%	)		13.26%	*

Portfolio turnover rate		15%	#		39%			46%			73%			27%	#

*	Annualized

#	Non-annualized

¹	The average shares outstanding method has been applied for per share information.

³	The Fund also will indirectly bear its prorated share of expenses of the underlying funds. Such expenses are not included in the calculation of this ratio.

^(a)	Distributions were less than one penny per share.

The accompanying notes are an integral part of these financial statements.

179

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

1 — ORGANIZATION

Penn Series Funds, Inc. (“Penn Series”) was incorporated in Maryland on April 22, 1982. Penn Series is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. Penn Series is open only to purchasers of The Penn Mutual Life Insurance Company (“Penn Mutual”) and The Penn Insurance and Annuity Company insurance contracts and certain of Penn Mutual’s employee benefit plans.

Penn Series is presently offering shares in its Money Market, Limited Maturity Bond, Quality Bond, High Yield Bond, Flexibly Managed, Balanced, Large Growth Stock, Large Cap Growth, Large Core Growth, Large Cap Value, Large Core Value, Index 500, Mid Cap Growth, Mid Cap Value, Mid Core Value, SMID Cap Growth, SMID Cap Value, Small Cap Growth, Small Cap Value, Small Cap Index, Developed International Index, International Equity, Emerging Markets Equity, Real Estate Securities, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation and Conservative Allocation Funds (each a “Fund” and collectively, the “Funds”). Penn Series also has the authority to issue shares in three additional funds, each of which would have their own investment objective and policies.

Fund of Funds (“FOF”) — Each Penn Series FOF seeks to achieve its investment objective by investing in other Penn Series Funds (“Underlying Funds”) and uses asset allocation strategies to determine how much to invest in the Underlying Funds. The Penn Series FOF are the following Funds: Balanced, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation and Conservative Allocation Funds.

2 — SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are followed by Penn Series in the preparation of its financial statements. The preparation of financial statements in accordance with the accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and those differences could be material.

SECURITY VALUATION:

Money Market Fund — Investments in securities are valued using the amortized cost method as permitted by Rule 2a-7 under the Investment Company Act of 1940, which involves initially valuing investments at cost and thereafter assuming a constant amortization to maturity of any premium or discount. This method approximates market value.

Limited Maturity Bond, Quality Bond, High Yield Bond, Flexibly Managed, Large Growth Stock, Large Cap Growth, Large Core Growth, Large Cap Value, Large Core Value, Index 500, Mid Cap Growth, Mid Cap Value, Mid Core Value, SMID Cap Growth, SMID Cap Value, Small Cap Growth, Small Cap Value, Small Cap Index, Developed International Index, International Equity, Emerging Markets Equity, Real Estate Securities Funds — Portfolio securities listed on a securities exchange or an automated quotation system for which quotations are readily available, including securities traded over the counter, are valued at the last quoted sale price on the principal exchange or market on which they are traded on the valuation date or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. Debt and fixed income securities may be valued by recognized independent third-party valuation services, employing methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other electronic data processing techniques. To the extent that bid prices are provided by the pricing service, the Funds will use the bid price. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.

Securities for which market quotations are not readily available are valued by methods deemed by the Board of Directors to represent fair value. The Penn Series Valuation Committee (the “Valuation Committee”) , established by and subject to oversight by the Board of Directors, develops pricing related policies and procedures and approves all fair value determinations. The Valuation Committee consists of representatives from the Advisor and Administrator. The Valuation Committee regularly makes good faith judgments, using sources and information obtained, including recommendations and supporting rationales and inputs from the Advisor or the applicable sub advisor, to establish and /or adjust fair valuations of securities as events occur and circumstances warrant. The information and inputs may include but are not limited to cost of the security, last sale price, private transaction trading prices, comparable publically traded security prices, illiquidity

180

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

premiums, publically disclosed news stories and regulatory filings, estimated cash flows and yield curves. As part of its procedures, the Valuation Committee monitors the fair valued securities, considers additional news or significant developments relative to the specific security, reviews the valuations with the Advisor or respective sub advisor on a regular basis and applies back testing procedures to valuations as applicable. Reasons for which securities may be valued in this manner include, but are not limited to, trading on an exchange for a security has been halted or suspended, a security has been de-listed from a national exchange, trading on a security’s primary market is temporarily closed at a time when under normal conditions it would be open or valuation by a third party pricing service is currently not available or is no longer available. Options are valued at the last traded price on the market where such options are principally traded or, if there was no trade on such day, at the last bid quote. Futures Contracts are valued at the last settlement price on the market where such futures contracts are principally traded.

To assess the continuing appropriateness of third party pricing service security valuations, the Advisor or sub advisor, as applicable, or the fund accounting service provider, who is subject to oversight by the Administrator, regularly monitor the prices and compare prices to alternate sources where applicable. Pricing challenges are issued for valuation differences exceeding certain tolerances or when considered not reflective of market by the Advisor or sub advisor, as applicable.

Certain events may occur between the time that foreign markets close, on which securities held by the Funds principally trade, and the time at which the Fund’s NAV is calculated. These securities are valued at a fair value utilizing an independent third-party valuation service in accordance with procedures adopted by the Fund’s Board of Directors. The methodology and procedures followed by the valuation service consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, ETFs, and certain indexes as well as prices for similar securities. Values from the valuation service are applied in the event that there is a movement in the U.S. market that exceeds a specific threshold that has been established by the Valuation Committee. The Valuation Committee has also established a “confidence interval,” which is used to determine the level of historical correlation between the value of a specific foreign security and movements in the U.S. market before a particular security will be fair valued when the threshold is exceeded. In the event that the threshold established by the Valuation Committee is exceeded on a specific day, the Funds shall value the non-U.S. securities in their portfolios that exceed the applicable “confidence interval” based upon the adjusted prices provided by the fair valuation service.

The determination of a security’s fair value price often involves the consideration of a number of subjective factors, and is therefore subject to the unavoidable risk that the value assigned to a security may be higher or lower than the security’s value would be if a reliable market quotation for the security was readily available.

Balanced, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation and Conservative Allocation Funds — The valuation of each Fund’s investment in its Underlying Funds is based on the net asset values of the Underlying Funds each business day.

Fair value measurements are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. Inputs refer broadly to the assumptions that market participants would use in pricing an asset. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. These inputs are summarized into three broad levels as follows:

•

Level 1 — quoted prices in active markets for identical securities

•

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

•

Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Transfers between levels 1 and 2 during the six month ended June 30, 2012, if any, are shown as notes on the Schedule of Investments of the individual fund.

181

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

Level 3 items at June 30, 2012 consist of $462,240 of equities which were not publically trading. The unobservable inputs used in valuing these securities include prices observed in private transactions by institutional investors involving institutional-sized trades, financial information including the price/sales multiple of publically traded securities determined to be comparable and illiquidity premiums used to discount the value. The valuation technique employed consists of discounting a value in the observed range of either (a) private party transaction prices for an acquisition or dispositions of the stock (or of a comparable class of the stock) or (b) performing an analysis based upon financial information including reference to the price/sales multiple of a comparable publically traded security, as applicable. The range of observed private party transactions for the valued securities subject to these inputs for fair valuation was $14.00-$17.50. The illiquidity premium utilized was 10% and was judgmentally established based on trading price ranges and /or particular terms of the security. Significant increases (decreases) in the prices of observed private party transactions or in financial information including the price/sales multiple would result in directionally similar and proportionate changes to the fair value. Also, changes to the illiquidity premium would cause directionally opposite and proportionate changes in the fair value.

New Accounting Pronouncement — In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-11, “Balance Sheet — Disclosures about Offsetting Assets and Liabilities”. This standard requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for interim and annual reporting periods beginning after January 1, 2013. At this time, management is evaluating the implications of ASU 2011-11 and its impact on the financial statements has not been determined.

Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis: market value of investment securities, assets and liabilities at the current rate of exchange; purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.

The Funds do not isolate the portion of realized and unrealized gains and losses on investments which is due to changes in the foreign exchange rate from that which is due to changes in market prices of equity securities. Such fluctuations are included with net realized and unrealized gain or loss from investments.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the level of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

Bank Loans — Certain Fund invests in U.S. dollar-denominated fixed- and floating-rate loans (“Loans”) arranged through private negotiations between a foreign sovereign entity and one or more financial institutions (“Lenders”). The Funds invest in such Loans in the form of participations in Loans (“Participations”) or assignments of all or a portion of Loans from third parties (“Assignments”). Participations typically result in the Funds having contractual relationships only with the Lender, not with the sovereign borrower. The Funds have the right to receive payments of principal, interest and any fees to which they are entitled from the Lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, the Funds generally have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the Loan, nor any rights of set-off against the borrower, and the Funds will not benefit directly from any collateral supporting the Loan in which they have purchased the Participation. As a result, the Funds assume the credit risk of both the borrower and the Lender that is selling the Participation.

SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES: Security transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date and interest income is accrued as earned. Discounts and premiums are accreted and amortized using the effective interest method. The cost of investment securities sold is determined by using the specific identification method for both financial reporting and income tax purposes. Expenses directly attributable to a Fund are directly charged. Common expenses of the Funds are allocated using methods approved by the Board of Directors, generally based on average net assets. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses associated with the Underlying Funds of the FOFs.

182

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

DIVIDENDS TO SHAREHOLDERS: Except for the Money Market Fund, all or a portion of each Fund’s undistributed net investment income and accumulated net realized gain on investment and foreign exchange transactions, if any, at December 31, 2011 were deemed distributed as consent dividends to each respective Fund’s shareholders in place of regular distributions. As consent dividends, shareholders of each Fund agree to treat their share of undistributed net investment income and accumulated net realized gain on investment and foreign exchange transactions, if any, at December 31, 2011, respectively, as dividend income and net capital gains for tax purposes. In the case of the Money Market Fund, dividends paid from undistributed net investment income and accumulated net realized gain on investments are declared daily and paid monthly.

Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations which may differ from net investment income and net realized capital gains recorded in accordance with accounting principles generally accepted in the United States. To the extent that these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification. Distributions from net realized gains may involve short-term capital gains, which are included as ordinary income for tax purposes.

The character of distributions received from real estate investment trusts (“REITs”) held by a Fund is generally comprised of net investment income, capital gains, and return of capital. It is the policy of the Funds to estimate the character of distributions received from the underlying REITs based on historical data provided by the REITs. As of year-end, differences between the estimated and actual amounts are reflected in a Fund’s records.

3 — INVESTMENT ADVISORY AND OTHER CORPORATE SERVICES

Investment Advisory Services

Independence Capital Management, Inc. (“ICMI”), a wholly owned subsidiary of The Penn Mutual Life Insurance Company, serves as investment adviser to each of the Funds. To provide investment management services to the Funds, ICMI has entered into sub-advisory agreements as follows:


Fund		Sub-adviser
High Yield Bond Fund		T. Rowe Price Associates, Inc.
Flexibly Managed Fund		T. Rowe Price Associates, Inc.
Large Growth Stock Fund		T. Rowe Price Associates, Inc.
Large Cap Growth Fund		Turner Investments L.P.
Large Core Growth Fund		Wells Capital Management, Inc.
Large Cap Value Fund		OppenheimerFunds, Inc.
Large Core Value Fund		Eaton Vance Management
Index 500 Fund		SSgA Fund Management, Inc.
Mid Cap Growth Fund		Turner Investments L.P.
Mid Cap Value Fund		Neuberger Berman Management, Inc.
Mid Core Value Fund		Lord, Abbett & Co. LLC
SMID Cap Growth Fund		Wells Capital Management, Inc.
SMID Cap Value Fund		Alliance Bernstein, LP
Small Cap Growth Fund		Allianz Global Investors Capital
Small Cap Value Fund		Goldman Sachs Asset Management, LP
Small Cap Index Fund		SSgA Fund Management, Inc.
Developed International Index Fund		SSgA Fund Management, Inc.
International Equity Fund		Vontobel Asset Management, Inc.
Emerging Markets Equity Fund		Morgan Stanley Investment Management, Inc.
Real Estate Securities Fund		Cohen & Steers Capital Management, Inc.

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Each of the Funds pay ICMI, on a monthly basis, an advisory fee based on the average daily net assets of each Fund, at the following rates pursuant to the investment advisory agreements: Money Market Fund: 0.20% for first $100 million and 0.15% thereafter; Limited Maturity Bond Fund: 0.30%; Quality Bond Fund: 0.35% for first $100 million and 0.30% thereafter; High Yield Bond Fund: 0.50%; Flexibly Managed Fund: 0.60%; Large Growth Stock Fund: 0.65% for the first $100 million and 0.60% thereafter; Large Cap Growth Fund: 0.55%; Large Core Growth Fund: 0.60%; Large Cap Value Fund: 0.60%; Large Core Value Fund: 0.60%; Index 500 Fund: 0.07%; Mid Cap Growth Fund: 0.70%; Mid Cap Value Fund: 0.55% for the first $250 million, 0.525% for next $250 million, 0.50% for next $250 million, 0.475% for next $250 million, 0.45% for next $500 million and 0.425% thereafter; Mid Core Value Fund: 0.72%; SMID Cap Growth Fund: 0.75%; SMID Cap Value Fund: 0.95%; Small Cap Growth Fund: 0.80% for the first $25 million, 0.75% for next $25 million and 0.70% thereafter; Small Cap Value Fund: 0.85%; Small Cap Index Fund: 0.30%; Developed International Index Fund: 0.30%; International Equity Fund: 0.85%; Emerging Markets Equity Fund: 1.18% for the first $2.5 billion and 1.00% thereafter; Real Estate Securities Fund: 0.70%, Aggressive Allocation Fund: 0.10%; Moderately Aggressive Allocation Fund: 0.10%; Moderate Allocation Fund: 0.10%; Moderately Conservative Allocation Fund: 0.10% and Conservative Allocation Fund: 0.10%. The Balanced Fund does not pay an investment advisory fee to ICMI.

For providing investment management services to the Funds, ICMI pays the sub-advisers, on a monthly basis, a sub-advisory fee.

Administrative and Corporate Services

Under an administrative and corporate service agreement, Penn Mutual serves as administrative and corporate services agent for Penn Series. Each of the Funds pays Penn Mutual, on a quarterly basis, an annual fee equal to 0.15% of each Fund’s average daily net assets.

Accounting Services

Under an accounting services agreement, BNY Mellon Investment Servicing (US), Inc. (“BNY Mellon”) serves as accounting agent for Penn Series. Each of the Funds, except the FOFs, International Equity Fund, Emerging Markets Equity Fund and Developed International Index Fund, pays BNY Mellon, on a monthly basis, an annual fee based on the average daily net assets of each Fund equal to 0.070% for the first $100 million, 0.050% for the next $200 million, 0.030% for the next $300 million and 0.020% thereafter. With the exception of the FOFs, International Equity, Emerging Markets Equity, Developed International Index and Money Market Fund, the minimum annual fee each Fund must pay is $27,500. The annual accounting fee for each of the FoFs shall be an asset based fee of 0.01% of each such portfolio’s average assets, exclusive of out-of-pocket expenses. Each FOF’s minimum annual fee is $12,000. Each international fund’s minimum annual fee is $48,000. The Money Market Fund pays no minimum annual fee. The International Equity, Emerging Markets Equity and Developed International Index Funds pay BNY Mellon 0.080% for the first $100 million, 0.060% for the next $300 million, 0.040% for the next $200 million, and 0.030% thereafter.

Transfer Agent Services

Under a transfer agency agreement, BNY Mellon serves as transfer agent for Penn Series.

Custodial Services

The Bank of New York Mellon, Inc., serves as custodian for Penn Series. In addition to transaction charges and out-of-pocket expenses, each of the Funds pay The Bank of New York Mellon, Inc., on a monthly basis, an annual custody fee of 0.01%. The Bank of New York Mellon, Inc. serves as foreign custodian for Penn Series. There is a separate custody fee schedule for foreign securities.

Expenses and Limitations Thereon

Each Fund bears all expenses of its operations other than those incurred by its investment adviser and sub-advisers under their respective investment advisory agreements and those incurred by Penn Mutual under its administrative and corporate services agreement. ICMI and Penn Mutual have agreed to waive fees or reimburse expenses to the extent the Fund’s total expense ratio (excluding interest, taxes, brokerage, other capitalized expenses and extraordinary expenses, but

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including investment advisory and administrative and corporate services fees) exceeds the applicable expense limitation for the Fund. The expense limitations for the Funds are as follows:


Fund	Expense Limitation		Fund	Expense Limitation
Money Market		0.80%	SMID Cap Growth		1.05%
Limited Maturity Bond		0.90%	SMID Cap Value		1.14%
Quality Bond		0.90%	Small Cap Growth		1.15%
High Yield Bond		0.90%	Small Cap Value		1.15%
Flexibly Managed		1.00%	Small Cap Index		0.55%
Balanced*		0.62%	Developed International Index		0.59%
Large Growth Stock		1.00%	International Equity		1.50%
Large Cap Growth		1.00%	Emerging Markets Equity		1.85%
Large Core Growth		1.00%	Real Estate Securities		1.25%
Large Cap Value		1.00%	Aggressive Allocation*		0.33%
Large Core Value		1.00%	Moderately Aggressive Allocation*		0.33%
Index 500		0.40%	Moderate Allocation*		0.33%
Mid Cap Growth		1.00%	Moderately Conservative Allocation*		0.33%
Mid Cap Value		1.00%	Conservative Allocation*		0.33%
Mid Core Value		1.25%

* For FoFs, with the exception of the Balanced Fund, the operating expense limit applies only at the Fund level and does not limit the fees indirectly incurred by the FOFs through their investments in the Underlying Funds.

Effective September 10, 2009, Penn Series, on behalf of its Money Market Fund, ICMI, and Penn Mutual, entered into an agreement whereby ICMI and Penn Mutual may temporarily and voluntarily waive fees and/or reimburse expenses in excess of their current fee waiver and expense reimbursement commitments in an effort to maintain a minimum net distribution yield for the Money Market Fund. Under the agreement, ICMI and Penn Mutual may, subject to certain minimum yield criteria, as well as a prospective three year reimbursement period, recapture from the Money Market Fund any fees or expenses waived and/or reimbursed under this arrangement. These reimbursement payments by the Fund to ICMI and/or Penn Mutual are considered “extraordinary expenses” and are not subject to any net operating expense limitations in effect at the time of such payment. This recapture could negatively affect the Fund’s future yield.

Penn Mutual currently intends to voluntarily waive its administrative and corporate services fees and reimburse expenses so that the Index 500 Fund’s total expenses do not exceed 0.35%. Penn Mutual may change or eliminate all or part of this voluntary waiver at any time. In addition, effective September 1, 2010, Penn Mutual and ICMI currently intend to voluntarily waive a portion of their fees and/or reimburse expenses so that the Emerging Markets Equity Fund’s total expenses do not exceed 1.68%.

If, at the end of each month, there is no liability of ICMI and Penn Mutual to pay the Funds such excess amount, and if payments of the advisory fee or administrative and corporate services fee at the end of prior months during the fiscal year have been reduced in excess of that required to maintain expenses within the expense limitation, such excess reduction shall be recaptured by ICMI and Penn Mutual and shall be payable by the Funds to ICMI and Penn Mutual along with the advisory fee or administrative and corporate services fee for that month.

Penn Mutual and ICMI may recover any administrative fees or advisory fees that were waived in the preceding three fiscal years as long as it would not cause the Fund to exceed its expense limitation.

As of June 30, 2012, the following Funds had waived and/or reimbursed administrative and corporate services fees that are subject to potential recapture by Penn Mutual through the periods stated below:


	Various Months Ending December 31, 2012		Various Months Ending December 31, 2013		Various Months Ending December 31, 2014		Various Months Ending December 31, 2015
Money Market Fund	$	3,272	$	721	$	128,050	$	69,825
Mid Cap Growth Fund		15,420		2,541		1,149		—
Balanced Fund		39,583		36,499		33,707		14,567

185

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

During the six months ended June 30, 2012, the following Funds recaptured administrative and corporate services fees paid to Penn Mutual and are included in other expenses on the statement of operations:


Mid Cap Growth Fund		$	3,617

As of June 30, 2012, the following Funds had waived and/or reimbursed advisory fees that are subject to potential recapture by ICMI through the periods stated below:


	Various Months Ending December 31, 2012		Various Months Ending December 31, 2013		Various Months Ending December 31, 2014		Various Months Ending December 31, 2015


Money Market Fund	$	87,849	$	234,908	$	272,008	$	133,440
Large Core Growth Fund		239,184		173,522		—		—
Large Core Value Fund		261,282		206,004
SMID Cap Growth Fund		44,102		36,023		20,314		10,164
SMID Cap Value Fund		44,109		47,247		48,883		25,320
Small Cap Value Fund		7,266		6,002		4,624		—
Small Cap Index Fund		192,617		157,501		97,702		40,716
Developed International Index Fund		345,131		282,565		257,004		139,007
Emerging Markets Equity Fund		459,043		448,789		115,934		—
Aggressive Allocation Fund		11,429		13,439		12,299		5,438
Moderately Conservative Allocation Fund		5,535		3,741		499		—
Conservative Allocation Fund		8,824		8,080		4,176		1,406

During the six months ended June 30, 2012, the following Funds recaptured advisory fees paid to ICMI and are included in other expenses on the statement of operations:


Small Cap Value Fund	$	4,462
Moderately Conservative Allocation Fund		2,715

Total fees of $102,000 were paid to Directors of Penn Series, who are not interested persons of Penn Series, for the six months ended June 30, 2012. Other than Penn Series’ Chief Compliance Officer, no person received compensation from Penn Series who is an officer, interested director, or employee of Penn Series, the investment adviser, sub-advisers, administrator, accounting agent or any parent or subsidiary thereof.

4 — RELATED PARTY TRANSACTIONS

Certain benefit plans of Penn Mutual own annuity contracts that are invested in the Penn Series Funds. The benefit plan assets that are invested in the Penn Series Funds at June 30, 2012 are as follows:


Money Market Fund	$	4,098,057
Quality Bond Fund		9,446,705
High Yield Bond Fund		4,624,510
Flexibly Managed Fund		42,275,816

186

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Notes to Financial Statements — June 30, 2012 (Unaudited)


Large Growth Stock Fund			34,784,217
Index 500 Fund			19,648,562
Mid Cap Growth Fund			4,856,249
Mid Core Value Fund			3,341,736
SMID Cap Growth Fund			4,549,775
SMID Cap Value Fund			4,289,478
Small Cap Growth Fund			3,786,622
Small Cap Value Fund			6,686,503
International Equity Fund			20,347,601
Large Core Value			30,732,214
Emerging Markets Equity			3,798,784
Small Cap Index Fund			3,113,235
Developed International Index			2,996,792

Certain Funds affect trades for security purchase and sale transactions through brokers that are affiliates of the adviser or the sub-advisers. Commissions paid on those trades from the Funds for the six months ended June 30, 2012 were as follows:


Large Growth Stock Fund	$	44
Mid Core Value Fund		303
Small Cap Value Fund		3,171
Emerging Markets Equity Fund		1,239

5 — PURCHASES AND SALES OF SECURITIES

During the six months ended June 30, 2012, the Funds made the following purchases and sales of portfolio securities, other than short-term securities:


	U.S. Government Securities				Other Investment Securities
	Purchases		Sales		Purchases		Sales
Limited Maturity Bond Fund	$	15,002,042	$	9,505,994	$	22,502,078	$	14,163,846
Quality Bond Fund		14,440,975		43,429,024		51,447,665		39,554,972
High Yield Bond Fund		—		—		58,700,014		48,479,905
Flexibly Managed Fund		—		—		536,985,185		566,913,570
Balanced Fund		—		—		5,866,878		5,606,185
Large Growth Stock Fund		—		—		34,519,773		44,546,849
Large Cap Growth Fund		—		—		23,703,191		29,923,036
Large Core Growth Fund		—		—		60,992,971		67,923,606
Large Cap Value Fund		—		—		85,939,979		95,741,083
Large Core Value Fund		—		—		33,531,484		39,161,273
Index 500 Fund		—		—		3,017,792		9,143,909
Mid Cap Growth Fund		—		—		73,551,584		75,468,426
Mid Cap Value Fund		—		—		22,512,710		21,064,834
Mid Core Value Fund		—		—		25,591,340		27,992,397
SMID Cap Growth Fund		—		—		18,209,611		15,817,434
SMID Cap Value Fund		—		—		13,336,888		9,969,618
Small Cap Growth Fund		—		—		49,059,755		53,823,564
Small Cap Value Fund		—		—		44,670,851		51,918,394
Small Cap Index Fund		—		—		5,630,495		4,606,898
Developed International Index Fund		—		—		4,889,465		743,986
International Equity Fund		—		—		96,251,623		102,673,862
Emerging Markets Equity Fund		—		—		32,118,426		30,567,827

187

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)


	U.S. Government Securities				Other Investment Securities
	Purchases		Sales		Purchases		Sales
Real Estate Securities Fund		—		—	$	46,900,025	$	42,465,839
Aggressive Allocation Fund		—		—		7,050,635		3,006,022
Moderately Aggressive Allocation Fund		—		—		27,846,538		21,721,989
Moderate Allocation Fund		—		—		44,699,907		24,605,952
Moderately Conservative Allocation Fund		—		—		17,197,768		17,310,977
Conservative Allocation Fund		—		—		15,538,824		10,111,106

6 — FEDERAL INCOME TAXES

Each Fund has qualified and intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code for federal income tax purposes. As such, each Fund is required to distribute all investment company taxable income and net capital gains, if any, to its shareholders in order to avoid the imposition of entity-level federal, state, and local income taxes as well as an entity-level excise tax. Except for the Money Market Fund, to the extent any Fund had undistributed investment company taxable income and net capital gains at December 31, 2011, such undistributed investment company taxable income and net capital gains were deemed distributed as consent dividends in place of regular distributions. Accordingly, no provision has been made for federal, state, or local income and excise taxes.

On December 22, 2010, The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law. The Act amended several tax rules impacting the Funds. Some highlights of the enacted provisions are as follows:

The Act allows for capital losses occurring in the taxable years beginning after December 22, 2010 (“post-enactment losses”) to be carried forward indefinitely. However, the Act requires any future gains to be first offset by post-enactment losses before using capital losses incurred in the taxable years beginning prior to the effective date of the Act (‘pre-enactment losses”). As a result of this ordering rule, pre-enactment loss carryforwards have an increased likelihood to expire unused. Furthermore, post-enactment losses will retain their character as either long-term capital losses or short-term capital losses rather than being considered all short-term capital losses as under previous law.

The Act provides that a Regulated Investment Company (“RIC”) may elect for any taxable year to treat any portion of any qualified late-year loss for such taxable year as arising on the first day of the following taxable year. The term “qualified late-year loss” means any post-October capital loss and any late-year ordinary loss.

The Act also contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests.

Reclassification of Capital Accounts:

Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States of America. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in capital or accumulated net realized gain or net investment income, as appropriate, in the period that the differences arise. Accordingly, the following permanent differences as of December 31, 2011, primarily attributable to consent dividends, interest accruals on the disposition of securities in default, income recognized from pass-through entities, the disallowance of net operating losses, the expiration of capital loss carryforwards, the tax treatment of Passive Foreign Investment Companies, the redesignation of dividend

188

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

distributions, the reclassification of net foreign currency exchange gains or losses, reclassification of dividends received to return of capital, and the reclassification of paydown losses were reclassed between the following accounts:


	Increase (Decrease) Undistributed Net Investment Income			Increase (Decrease) Accumulated Net Realized Gains			Increase (Decrease) Paid-in Capital
Money Market Fund		—		$	(998	)	$	998
Limited Maturity Bond Fund	$	(1,826,135	)		(332,969	)		2,159,104
Quality Bond Fund		(11,495,631	)		(4,798,239	)		16,293,870
High Yield Bond Fund		(10,344,952	)		(176,492	)		10,521,444
Flexibly Managed Fund		(26,042,063	)		(22,866,810	)		48,908,873
Balanced Fund		118,179			174,227			(292,406	)
Large Growth Stock Fund		339,329			2,806,333			(3,145,662	)
Large Cap Growth Fund		89,617			—			(89,617	)
Large Core Growth		123,224			—			(123,224	)
Large Cap Value Fund		(2,125,137	)		26,838			2,098,299
Large Core Value Fund		(2,256,740	)		—			2,256,740
Index 500 Fund		(4,531,215	)		—			4,531,215
Mid Cap Growth Fund		470,245			(2,932,829	)		2,462,582
Mid Cap Value Fund		(772,569	)		(2,729,015	)		3,501,584
Mid Core Value Fund		(152,960	)		—			152,960
SMID Cap Growth Fund		200,540			(4,704,270	)		4,503,730
SMID Cap Value Fund		(78,242	)		(3,042,941	)		3,121,183
Small Cap Growth Fund		620,333			(2,064,310	)		1,443,977
Small Cap Value Fund		(815,724	)		—			815,724
Small Cap Index Fund		(190,837	)		(1,532,607	)		1,723,444
Developed International Index Fund		(1,659,741	)		(936	)		1,660,677
International Equity Fund		(5,896,426	)		4,651,308			1,245,118
Emerging Markets Equity Fund		(744,555	)		557,713			186,842
Real Estate Securities Fund		(801,373	)		—			801,373
Aggressive Allocation Fund		89,262			(87,023	)		(2,239	)
Moderately Aggressive Allocation Fund		428,830			(289,359	)		(139,471	)
Moderate Allocation Fund		686,767			(2,217,556	)		1,530,789
Moderately Conservative Allocation Fund		265,534			(857,824	)		592,290
Conservative Allocation Fund		173,485			(380,428	)		206,943

These reclassifications had no effect on net assets or net asset value per share.

189

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

Tax character of distributions:

The tax character of dividends and distributions declared and paid or deemed distributed during the years ended December 31, 2011 and 2010 were as follows:


	Ordinary Income and Short-Term Capital Gains		Long-Term Capital Gains		Return of Capital		Total

Money Market Fund
2011	$	14,798		—		—	$	14,798
2010		16,846		—		—		16,846
Limited Maturity Bond Fund
2011		2,024,945	$	134,159		—		2,159,104
2010		2,042,945		183,340		—		2,226,285
Quality Bond Fund
2011		13,101,804		3,192,066		—		16,293,870
2010		11,975,898		1,547,373		—		13,523,271
High Yield Bond Fund
2011		10,521,444		—		—		10,521,444
2010		9,212,561		—		—		9,212,561
Flexibly Managed Fund
2011		26,051,118		22,857,755		—		48,908,873
2010		21,592,077		—		—		21,592,077
Balanced Fund
2011		1,260,675		—		—		1,260,675
2010		1,227,500		—		—		1,227,500
Large Growth Stock Fund
2011		—		—		—		—
2010		—		—		—		—
Large Cap Growth Fund
2011		—		—		—		—
2010		—		—		—		—
Large Core Growth Fund
2011		—		—		—		—
2010		—		—		—		—
Large Cap Value Fund
2011		2,098,299		—		—		2,098,299
2010		1,372,517		—		—		1,372,517
Large Core Value Fund
2011		2,256,740		—		—		2,256,740
2010		2,243,608		—		—		2,243,608
Index 500 Fund
2011		4,531,215		—		—		4,531,215
2010		4,175,516		—		—		4,175,516
Mid Cap Growth Fund
2011		—		2,928,178		—		2,928,178
2010		—		—		—		—
Mid Cap Value Fund
2011		772,569		2,729,015		—		3,501,584
2010		729,336		—		—		729,336

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Notes to Financial Statements — June 30, 2012 (Unaudited)


	Ordinary Income and Short-Term Capital Gains		Long-Term Capital Gains		Return of Capital		Total
Mid Core Value Fund
2011	$	152,960		—		—	$	152,960
2010		205,289		—		—		205,289
SMID Cap Growth Fund
2011		397,132	$	4,106,598		—		4,503,730
2010		1,694,840		700,229		—		2,395,069
SMID Cap Value Fund
2011		500,512		2,620,671		—		3,121,183
2010		1,215,070		1,134,943		—		2,350,013
Small Cap Growth Fund
2011		—		2,064,310		—		2,064,310
2010		—		—		—		—
Small Cap Value Fund
2011		815,724		—		—		815,724
2010		1,133,601		—		—		1,133,601
Small Cap Index Fund
2011		482,738		1,240,706		—		1,723,444
2010		591,226		—		—		591,226
Developed International Index Fund
2011		1,660,677		—		—		1,660,677
2010		1,252,982		8,355		—		1,261,337
International Equity Fund
2011		1,245,118		—		—		1,245,118
2010		9,361,023		—		—		9,361,023
Emerging Markets Equity Fund
2011		186,842		—		—		186,842
2010		56,851		—		—		56,851
Real Estate Securities Fund
2011		801,373		—		—		801,373
2010		759,192		—		—		759,192
Aggressive Allocation Fund
2011		198,066		476,564		—		674,630
2010		352,907		82,205		—		435,112
Moderately Aggressive Allocation Fund
2011		1,471,131		1,651,478		—		3,122,609
2010		2,158,865		351,182		—		2,510,047
Moderate Allocation Fund
2011		3,373,611		3,649,676		—		7,023,287
2010		4,029,335		510,686		—		4,540,021
Moderately Conservative Allocation Fund
2011		1,697,592		1,157,199		—		2,854,791
2010		1,742,540		269,099		—		2,011,639
Conservative Allocation Fund
2011		1,245,830		438,176		—		1,684,006
2010		1,086,356		102,472		—		1,188,828

Short-term gain distributions to shareholders are treated as ordinary income for tax purposes.

191

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Notes to Financial Statements — June 30, 2012 (Unaudited)

Components of distributable earnings:

As of December 31, 2011, the components of distributable earnings/(accumulated losses) on a tax basis were as follows:


	Capital Loss Carryforward			Total Net Distributable Earnings (Accumulated Losses)
High Yield Bond Fund	$	(7,893,376	)	$	(7,893,376	)
Balanced Fund		(1,032,695	)		(1,032,695	)
Large Growth Stock Fund		(21,426,799	)		(21,426,799	)
Large Cap Growth Fund		(3,156,229	)		(3,156,229	)
Large Core Growth Fund		(31,145,313	)		(31,145,313	)
Large Cap Value Fund		(25,469,839	)		(25,469,839	)
Large Core Value Fund		(36,698,562	)		(36,698,562	)
Index 500 Fund		(17,324,181	)		(17,324,181	)
Mid Core Value Fund		(6,542,618	)		(6,542,618	)
Small Cap Value Fund		(6,892,903	)		(6,892,903	)
Developed International Index Fund		(37,797	)		(37,797	)
International Equity Fund		(73,685,510	)		(73,685,510	)
Emerging Markets Equity Fund		(8,458,457	)		(8,458,457	)
Real Estate Securities Fund		(372,165	)		(372,165	)

Capital loss carryforwards:

At December 31, 2011, the following Funds had capital loss carryforwards (pre-enactment losses) available to offset future realized capital gains through the indicated expiration dates:


	Expires on December 31,
	2013		2014		2015		2016		2017		2018		Total
High Yield Bond Fund		—		—		—	$	2,802,248	$	5,091,128		—	$	7,893,376
Balanced Fund		—		—		—		—		1,030,476	$	2,219		1,032,695
Large Growth Stock Fund		—		—		—		3,795,667		17,631,132		—		21,426,799
Large Cap Growth Fund		—		—		—		—		3,156,229		—		3,156,229
Large Core Growth Fund		—		—		—		—		31,145,313		—		31,145,313
Large Cap Value Fund		—		—		—		—		25,469,839		—		25,469,839
Large Core Value Fund		—		—		—		8,134,825		28,563,737		—		36,698,562
Index 500 Fund	$	5,029,803	$	1,916,180	$	187,860		4,110,871		2,801,580		2,767,741		16,814,035
Mid Core Value Fund		—		—		—		—		6,542,618		—		6,542,618
Small Cap Value Fund		—		—		—		—		6,892,903		—		6,892,903
International Equity Fund		—		—		—		13,367,807		53,636,686		6,672,017		73,685,510
Emerging Markets Equity Fund		—		—		—		—		8,458,457		—		8,458,457
Real Estate Securities Fund		—		—		—		—		372,165		—		372,165

192

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

At December 31, 2011, the following Funds had capital loss carryforwards (post-enactment losses) available to offset future realized capital gains:


	Short-Term Capital Loss		Long-Term Capital Loss
Index 500 Fund		—	$	510,146
Developed International Index Fund	$	23,414		14,383

During the year ended December 31, 2011, the following Funds utilized capital loss carryforwards to offset realized capital gains for federal income tax purposes in the following approximate amounts:


High Yield Bond Fund	$	2,703,158
Flexibly Managed Fund		55,332,662
Balanced Fund		721,927
Large Growth Stock Fund		8,139,829
Large Cap Growth Fund		1,654,754
Large Core Growth Fund		8,438,490
Large Cap Value Fund		15,016,348
Large Core Value Fund		1,823,716
Mid Cap Growth Fund		14,366,860
Mid Cap Value Fund		13,388,384
Mid Core Value Fund		4,718,110
Small Cap Growth Fund		7,836,864
Small Cap Value Fund		10,498,926
International Equity Fund		5,778,339
Emerging Markets Equity Fund		2,119,788
Real Estate Securities Fund		7,439,836

Qualified Late-Year Losses:

The following Funds elected to treat the qualified late-year losses as having occurred on January 1, 2012:


	Late-Year Ordinary Losses		Post-October Capital Losses
Limited Maturity Bond Fund		—	$	249,530
Quality Bond Fund		—		498,354
High Yield Bond Fund		—		479,715
Flexibly Managed Fund	$	18,533		1,492,542
Balanced Fund		—		6,149
Large Growth Stock Fund		—		1,231,773
Large Cap Growth Fund		—		20,388
Large Core Growth Fund		—		1,013,457
Large Cap Value Fund		—		2,190,563
Large Core Value Fund		—		437,553
Index 500 Fund		—		684,886
Mid Cap Growth Fund		—		1,468,746
Mid Cap Value Fund		—		889,653
Mid Core Value Fund		—		190,733
SMID Cap Value Fund		—		325,283
Small Cap Growth Fund		—		1,039,131
Small Cap Value Fund		—		370,207
Developed International Index Fund		21,161		406,978
International Equity Fund		1,232,157		699,706

193

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)


	Late-Year Ordinary Losses		Post-October Capital Losses
Emerging Markets Equity Fund		22,201		934,661
Real Estate Securities Fund		—		139,367
Aggressive Allocation Fund		—		13,860
Moderate Allocation Fund		—		13,204

Tax cost of securities:

At December 31, 2011, the total cost of securities and net realized gains or losses on securities sold for federal income tax purposes were different from amounts reported for financial reporting purposes. The federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by each Fund at December 31, 2011 were as follows:


	Federal Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Money Market Fund	$	152,964,179		—		—			—
Limited Maturity Bond		172,250,075	$	3,461,601	$	(309,216	)	$	3,152,385
Quality Bond Fund		434,430,684		35,016,376		(1,240,849	)		33,775,527
High Yield Bond Fund		139,457,215		4,105,359		(4,869,337	)		(763,978	)
Flexibly Managed Fund		1,531,426,334		181,863,403		(42,073,173	)		139,790,230
Balanced Fund		58,015,599		11,162,452		(3,834,439	)		7,328,013
Large Growth Stock Fund		141,328,659		42,166,507		(6,253,883	)		35,912,624
Large Cap Growth Fund		35,246,987		3,607,420		(1,318,716	)		2,288,704
Large Core Growth Fund		84,873,287		19,137,832		(1,982,870	)		17,154,962
Large Cap Value Fund		168,517,518		13,938,417		(15,197,187	)		(1,258,770	)
Large Core Value Fund		124,548,578		21,996,257		(2,830,940	)		19,165,317
Index 500 Fund		255,708,161		64,960,860		(50,896,815	)		14,064,045
Mid Cap Growth Fund		89,364,656		12,536,991		(3,863,491	)		8,673,500
Mid Cap Value Fund		95,830,575		3,090,540		(1,758,393	)		1,332,147
Mid Core Value Fund		56,188,890		7,765,695		(2,030,211	)		5,735,484
SMID Cap Growth Fund		27,613,759		1,682,459		(1,716,226	)		(33,767	)
SMID Cap Value Fund		29,446,521		3,600,732		(1,908,833	)		1,691,899
Small Cap Growth Fund		82,432,779		8,392,930		(12,063,985	)		(3,671,055	)
Small Cap Value Fund		141,915,250		25,958,298		(7,809,882	)		18,148,416
Small Cap Index Fund		26,671,525		5,932,172		(2,774,119	)		3,158,053
Developed International Index Fund		64,036,913		5,244,162		(8,636,853	)		(3,392,691	)
International Equity Fund		253,728,865		68,402,051		(12,641,595	)		55,760,456
Emerging Markets Equity Fund		116,085,693		17,733,673		(13,329,289	)		4,404,384
Real Estate Securities Fund		73,059,590		6,149,712		(3,116,119	)		3,033,593
Aggressive Allocation Fund		23,738,921		4,830,429		(369,445	)		4,460,984
Moderately Aggressive Fund		114,926,799		22,308,318		(2,237,810	)		20,070,508
Moderate Allocation Fund		195,102,588		31,585,028		(1,716,553	)		29,868,475
Moderately Conservative Allocation Fund		78,843,847		11,378,064		(921,927	)		10,456,137
Conservative Allocation Fund		57,148,464		6,566,297		(531,036	)		6,035,261

The differences between book basis and tax basis appreciation are primarily due to wash sales, Passive Foreign Investment Companies, Partnership Investments, Trust Preferred Securities, real estate investment trust adjustments, and the treatment of certain corporate actions.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years and has concluded that as of December 31, 2011, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state department of revenue.

194

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

7 — DERIVATIVE FINANCIAL INSTRUMENTS

The Funds may trade derivative financial instruments in the normal course of investing activities to assist in managing exposure to market risks such as interest rates and foreign currency exchange rates. These financial instruments include written options, forward foreign currency exchange contracts and futures contracts.

The notional or contractual amounts of these instruments represent the investment the Funds have in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

Futures Contracts — A futures contract is a standardized contract between two parties to buy or sell a specified asset at a specified future date at a price agreed today (the future price). The party agreeing to buy the underlying asset in the future assumes a long position. The price is determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders on the exchange at the time of the purchase or sale of the contract.

To the extent permitted by the investment objective, restrictions and policies set forth in the Funds’ Prospectus and Statement of Additional Information, the Funds may participate in various derivative-based transactions. The Index 500, Developed International Index and Small Cap Index Funds employ futures to maintain market exposure and otherwise assist in attempting to replicate the performance of their respective indices. These derivatives offer unique characteristics and risks that assist the Funds in meeting their investment objectives. The Funds typically use derivatives in two ways: cash equitization and return enhancement. Cash equitization is a technique that may be used by the Funds through the use of futures contracts to earn “market-like” returns with the Funds’ excess and liquidity reserve cash balances and receivables. Return enhancement can be accomplished through the use of derivatives in the Funds. By purchasing these instruments, the Funds may more effectively achieve the desired fund characteristics that assist in meeting the Fund’s investment objectives.

Futures contracts involve a number of risks, such as possible default by the counterparty to the transaction, market movement and the potential of greater loss than if these techniques had not been used by a Fund. These investments can also increase the Fund’s share price and expose the Fund to significant additional costs.

The Index 500, Developed International Index and Small Cap Index Funds have entered into futures contracts during the six months ended June 30, 2012. Open futures contracts held by the Index 500, Developed International Index and Small Cap Index Funds at June 30, 2012 were as follows:


Fund	Type	Futures Contract	Expiration Date		Number Of Contracts		Units per Contract		Closing Price		Unrealized Appreciation (Depreciation)
Index 500	Buy/Long	E-Mini S&P 500 Index		9/21/2012		62		50	$	1,356	$	129,415
Small Cap Index	Buy/Long	Russell 2000 Mini Index		9/21/2012		16		100	$	795		45,242
Developed International Index	Buy/Long	E-Mini MSCI Eafe Index		9/21/2012		37		50	$	1,424		123,303

The total market value of futures contracts held in the Index 500, Developed International Index and Small Cap Index Funds as of June 30, 2012 are classified as Level 1.

Options — An option establishes a contract between two parties concerning the buying or selling of an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in some specific transaction on the asset, while the seller incurs the obligation to fulfill the transaction if so requested by the buyer. The price of an option derives from the difference between the reference price and the value of the underlying asset plus a premium based on the time remaining until the expiration of the option. The Funds may buy and sell options, or write options.

195

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operation.

The Flexibly Managed and Large Cap Value Funds have purchased options to decrease exposure to equity risk. The risk associated with purchased options is limited to premium paid. The Funds also received premiums for options written. The risk in writing a call option is that the Funds give up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Funds may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Funds pay a premium whether or not the option is exercised. The Funds also have the additional risk that there may be an illiquid market where the Funds are unable to close the contract.

Transactions in options written during the six months ended June 30, 2012 for the Flexibly Managed Fund were as follows:


Flexibly Managed Fund	Number of Contracts/ Notional Amount			Premium Received
Options outstanding at December 31, 2011		68,601		$	11,499,155
Options written		65,384			12,176,423
Options repurchased		(14,314	)		(2,104,299	)
Options expired		(19,685	)		(2,877,060	)
Options exercised		(33,813	)		(5,895,011	)

Options outstanding at June 30, 2012		66,173		$	12,799,208

The total market value of written options held in the Flexibly Managed Fund as of June 30, 2012 can be found in the summary of inputs on the Schedule of Investments.

Forward Foreign Currency Contracts — A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, which may be any number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are traded directly between currency traders and their customers. The contract is marked-to-market daily and the change in market value is recorded by each Fund as an unrealized gain or loss. When the contract is closed or offset with the same counterparty, the Fund records a realized gain or loss equal to the change in the value of the contract when it was opened and the value at the time it was closed or offset.

The High Yield Bond Fund entered into forward currency contracts in conjunction with the planned purchase or sale of foreign denominated securities in order to hedge the U.S. dollar cost or proceeds. The Funds hedge currencies in times of base currency weakness in order to reduce the volatility of returns for the local securities which the fund owns.

Foreign forward currency contracts involve a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the portfolio manager’s judgment as to certain market movements is incorrect, the risk of losses that are greater than if the investment technique had not been used. For example, there may be an imperfect correlation between the Fund’s portfolio holdings of securities denominated in a particular currency and the forward contracts entered into by the Fund. An imperfect correlation of this type may prevent the Fund from achieving the intended hedge or expose the Fund to the risk of currency exchange loss. These investment techniques also tend to limit any potential gain that might result from an increase in the value of the hedged position. These investments can also increase the volatility of the Fund’s share price and expose the Fund to significant additional costs.

196

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

Open forward foreign currency contracts held by the High Yield Bond Fund at June 30, 2012 were as follows:


	Currency	Counterparty	Settlement Date		Foreign Currency Contract			Forward Rate		U.S. Contract Amount			U.S. Contract Value			Unrealized Foreign Exchange Gain/(Loss)
Buy	Euro	Pershing		09/10/2012		36,500			0.78963	$	45,817		$	46,224		$	407
Buy	Euro	Deutsche Bank		09/10/2012		97,000			0.78963		121,679			122,842			1,163
Buy	Euro	Pershing		09/10/2012		397,000			0.78963		499,494			502,766			3,272
Sell	Euro	Goldman Sachs		09/10/2012		(3,812,000	)		0.78963		(4,762,065	)		(4,827,565	)		(65,500	)
Sell	Euro	Pershing		09/10/2012		(50,530	)		0.78963		(63,598	)		(63,992	)		(393	)
Buy	Pounds Sterling	Pershing		07/11/2012		2,000			0.63853		3,155			3,132			(23	)
Buy	Pounds Sterling	Pershing		07/11/2012		95,000			0.63853		149,301			148,780			(521	)
Buy	Pounds Sterling	Pershing		07/11/2012		3,000			0.63853		4,770			4,698			(72	)
Sell	Pounds Sterling	Pershing		07/11/2012		2,000			0.63853		3,203			3,132			(71	)
Sell	Pounds Sterling	Pershing		07/11/2012		2,000			0.63853		3,165			3,132			(33	)
Sell	Pounds Sterling	Pershing		07/11/2012		(4,000	)		0.63853		(6,477	)		(6,264	)		213
Sell	Pounds Sterling	Barclays Capital		07/11/2012		(198,000	)		0.63853		(315,869	)		(310,088	)		5,781

	Total															$	(55,777	)

Open forward foreign currency contracts held by the Emerging Markets Equity Fund at June 30, 2012 were as follows:


	Currency	Counterparty	Settlement Date		Foreign Currency Contract			Forward Rate		U.S. Contract Amount			U.S. Contract Value			Unrealized Foreign Exchange Gain/(Loss)
Sell	Japanese Yen	UBS		07/5/2012		(55,491,716	)		79.92793	$	(708,480	)	$	(694,272	)	$	14,208

	Total															$	14,208

The total market value of forward foreign currency contracts held in the High Yield Bond and Emerging Markets Equity Funds as of June 30, 2012 are classified as Level 2.

The following is a summary of the location of derivatives on the Fund’s Statements of Assets and Liabilities as of June 30, 2012:


	Location on the Statements of Assets and Liabilities
Derivative Type	Asset Derivatives	Liability Derivatives
Equity contracts	Investments at value* Net unrealized appreciation in value of investments, futures contracts and foreign currency related items**	Call options written, at value Net unrealized appreciation in value of investments, futures contracts and foreign currency related items**

Foreign currency contracts	Net unrealized appreciation of forward foreign currency contracts	Net unrealized depreciation of forward foreign currency contracts

197

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

The following is a summary of the Fund’s derivative instrument holdings categorized by primary risk exposure as of June 30, 2012:


Portfolio	Asset Derivative Value		Liability Derivative Value
	Equity contracts	Foreign currency contracts	Equity contracts	Foreign exchange contracts
High Yield Bond Fund	—	$10,836	—	$66,613
Flexibly Managed Fund	$7,080	—	$13,885,113	—
Large Cap Value Fund	30,485	—	—	—
Index 500 Fund	129,415	—	—	—
Small Cap Index Fund	45,242	—	—	—
Developed International Index Fund	123,303	—	—	—
Emerging Markets Equity Fund	—	14,208	—	—


Derivative Type		Location of Gain (Loss) on Derivatives Recognized in Income
Equity contracts		Net realized gain (loss) on futures contracts
		Net realized gain (loss) on options
		Change in net unrealized appreciation (depreciation) of investments and foreign currency*
		Change in net unrealized appreciation (depreciation) of futures contracts
		Change in net unrealized appreciation (depreciation) of written options

Foreign currency contracts		Net realized foreign currency exchange gain (loss)
		Change in net unrealized appreciation (depreciation) of investments and foreign currency


	Realized Gain (Loss) on Derivatives Recognized in Income
Portfolio	Equity contracts	Foreign currency contracts
High Yield Bond Fund	—	$383,096
Flexibly Managed Fund	$3,766,983	—
Large Cap Value Fund	(653,195)	—
Index 500 Fund	139,904	—
Small Cap Index Fund	58,037	—
Developed International Index Fund	(45,492)	—
Emerging Markets Equity Fund	—	(29,470)

	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Portfolio	Equity contracts	Foreign currency contracts
High Yield Bond Fund	—	$(225,429)
Flexibly Managed Fund	$(3,727,774)	—
Large Cap Value Fund	350,069	—
Index 500 Fund	130,754	—
Small Cap Index Fund	30,978	—
Developed International Index Fund	94,828	—
Emerging Markets Equity Fund	—	14,208

* includes purchased options

** includes cumulative appreciation/depreciation of futures contracts as reported in the footnotes. Only current day’s variation margin is reported with the Statements of Assets and Liabilities.

198

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2012 (Unaudited)

The table below summarizes the average balance of derivative holdings by fund during the six months ended June 30, 2012. The average balance of derivatives held is indicative of the trading volume of each Fund.


	Average Derivative Volume
Portfolio	Forward foreign currency contracts (Average Cost)			Futures contracts (Average Notional Value)		Purchased Options (Average Notional Cost)		Written Options (Premiums Received)
High Yield Bond Fund	$	(5,621,988	)		—		—		—
Flexibly Managed Fund		—			—		16,845	$	(10,328,660	)
Index 500 Fund		—		$	4,660,057		—		—
Large Cap Value Fund		—			—	$	141,686		—
Small Cap Index Fund		—			1,056,732		—		—
Developed International Index Fund		—			2,393,596		—		—
Emerging Markets Equity Fund		(539,714	)		—		—		—

8 — CREDIT AND MARKET RISK

The Funds may invest a portion of their assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Funds’ ability to dispose of them in a timely manner and at a fair price when it is necessary or preferable to do so.

The high yield securities in which the High Yield Bond Fund may invest are predominantly speculative as to the issuer’s continuing ability to meet principal and interest payments. The value of the lower quality securities in which the High Yield Bond Fund may invest will be affected by the credit worthiness of individual issuers, general economic and specific industry conditions, and will fluctuate inversely with changes in interest rates. In addition, the secondary trading market for lower quality bonds may be less active and less liquid than the trading market for higher quality bonds.

The Developed International Index, International Equity and the Emerging Markets Equity Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States, as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries.

9 — CONTRACTUAL OBLIGATIONS

In the general course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds and/or its affiliates that have not yet occurred. However, based on experience, management of the Funds expects the risk of loss to be remote.

10 — SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no additional subsequent events requiring recognition or disclosure in the financial statements.

199

Penn Series Funds, Inc.

June 30, 2012 (Unaudited)

Disclosure of Portfolio Holdings

The SEC has adopted a requirement that all Funds file a complete schedule of investments with the SEC for their first and third fiscal quarters on Form N-Q. For the Penn Series Funds, Inc., this would be for the fiscal quarters ending March 31 and September 30. The Form N-Q filing is made within 60 days after the end of the quarter. Penn Series Funds, Inc. filed its most recent Form N-Q with the SEC on May 22, 2012. It is available on the SEC’s website at http://www.sec.gov. or it may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (call 1-202-551-8090 for information on the operation of the Public Reference Room).

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund’s portfolios is available, without charge and upon request, on the Fund’s website at http://www.pennmutual.com or on the SEC’s website at http://www.sec.gov. Information regarding how the Fund voted proxies for the most recent twelve-month period ended June 30, 2012 is available on the Fund’s website at http://www.pennmutual.com and on the SEC’s website at http://www.sec.gov.

200

Penn Series Funds, Inc.

June 30, 2012

Board Approval of Investment Advisory and Sub-Advisory Agreements

The Penn Series Funds, Inc. (the “Company”) and Independence Capital Management, Inc. (“ICMI”) have entered into an investment advisory agreement (the “Advisory Agreement”). Pursuant to the Advisory Agreement, ICMI (i) provides day-to-day investment management services to the Money Market, Limited Maturity Bond, Quality Bond, Balanced, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation, and Conservative Allocation Funds (collectively, the “Directly Managed Funds”) and (ii) is responsible for selection and oversight of various investment sub-advisers who perform day-to-day investment management services for the High Yield Bond, Flexibly Managed, Large Growth Stock, Large Cap Value, Large Cap Growth, Index 500, Mid Cap Growth, Mid Cap Value, Mid Core Value, Small Cap Value, Small Cap Growth, International Equity, Real Estate Securities, Large Core Growth, Large Core Value, SMID Cap Growth, SMID Cap Value, Emerging Markets Equity, Small Cap Index and Developed International Index Funds (collectively, the “Sub-Advised Funds” and, together with the Directly Managed Funds, the “Penn Series Funds”).

ICMI acts as “manager of managers” for the Sub-Advised Funds. In this capacity, ICMI has entered into and the Company’s Board of Directors has approved separate sub-advisory agreements (the “Sub-Advisory Agreements” and, together with the Advisory Agreement, the “Investment Advisory Agreements”) with the sub-advisers (identified below). The sub-advisers provide their services to the Sub-Advised Funds under the supervision of ICMI and the Company’s Board of Directors. Sub-advisers are selected based primarily upon the research and recommendations of ICMI, which evaluates quantitatively and qualitatively each sub-adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies, as well as the sub-adviser’s regulatory compliance policies and procedures. ICMI oversees the sub-advisers to ensure compliance with the Sub-Advised Funds’ investment policies and guidelines, and monitors each sub-adviser’s adherence to its investment style.

The Investment Company Act of 1940, as amended (the “1940 Act”), requires that the initial approval of, as well as the continuation of, each Penn Series Fund’s Investment Advisory Agreement(s) be specifically approved by: (i) the vote of the Board or by a vote of the shareholders of the Fund; and (ii) the vote of a majority of the directors who are not parties to the Investment Advisory Agreement(s) or “interested persons” (as defined under the 1940 Act) of any party to the Investment Advisory Agreement(s) (the “Independent Directors”), cast in person at a meeting called for the purpose of voting on such approval. In connection with its consideration of such approvals, the Board must request and evaluate, and ICMI and the sub-advisers are required to furnish, such information as may be reasonably necessary to evaluate the terms of the Investment Advisory Agreements. In addition, the Securities and Exchange Commission takes the position that, as part of their fiduciary duties with respect to a mutual fund’s fees, mutual fund boards are required to evaluate the material factors applicable to a decision to approve an Investment Advisory Agreement.

Consistent with these responsibilities, the Company’s Board called and held a meeting on May 17, 2012 to consider whether to renew the Advisory Agreement between the Company and ICMI with respect to the Penn Series Funds. In preparation for this meeting, the Board provided ICMI with a written request for information and received and reviewed, in advance of the May 17, 2012 meeting, extensive written materials in response to that request, including information as to the performance of the Penn Series Funds versus benchmarks and peer universes, the level of the investment advisory fees charged to the Penn Series Funds, comparisons of such fees with the investment advisory fees incurred by comparable funds, including, in particular, funds acting as underlying investments for insurance products, the costs to ICMI of providing such services, including a profitability analysis, ICMI’s compliance program, and various other matters. In addition, at the May 17, 2012 meeting, the Board considered whether to renew the Sub-Advisory Agreements between ICMI and the investment sub-advisers listed in the table below (each, a “Sub-Adviser” and, collectively, the “Sub-Advisers”) on behalf of the respective Sub-Advised Funds.


Sub-Adviser		Fund
AllianceBernstein L.P.		SMID Cap Value Fund
Allianz Global Investors Capital LLC		Small Cap Growth Fund
Eaton Vance Management		Large Core Value Fund
Goldman Sachs Asset Management, L.P.		Small Cap Value Fund
Lord, Abbett & Co. LLC		Mid Core Value Fund
Morgan Stanley Investment Management, Inc.		Emerging Markets Equity Fund

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Sub-Adviser		Fund
Morgan Stanley Investment Management Company
Morgan Stanley Investment Management Limited
Neuberger Berman Management LLC		Mid Cap Value Fund
OppenheimerFunds Inc.		Large Cap Value Fund
SSgA Funds Management, Inc.		Index 500 Fund
SSgA Funds Management, Inc.		Small Cap Index Fund
SSgA Funds Management, Inc.		Developed International Index Fund
T. Rowe Price Associates, Inc.		Flexibly Managed Fund
T. Rowe Price Associates, Inc.		Large Growth Stock Fund
T. Rowe Price Associates, Inc.		High Yield Bond Fund
Turner Investments, L.P.		Mid Cap Growth Fund
Turner Investments, L.P.		Large Cap Growth Fund
Vontobel Asset Management, Inc.		International Equity Fund
Wells Capital Management Inc.		Large Core Growth Fund
Wells Capital Management Inc.		SMID Cap Growth Fund

In response to the Board’s written request for information, each of the Sub-Advisers submitted, in advance of the May 17, 2012 meeting, extensive written materials for consideration by the Board and the Independent Directors. The information provided by ICMI and the Sub-Advisers in connection with the Board meeting was in addition to the detailed information about the Penn Series Funds that the Board reviews during the course of each year, including information that relates to the funds’ operations and the funds’ performance and the services of ICMI and the Sub-Advisers. In connection with the meeting, the Board also received a memorandum from legal counsel regarding the responsibilities of the Board in connection with its consideration of whether to approve the Investment Advisory Agreements. In addition, the Independent Directors met in executive session outside the presence of Company management to discuss the information submitted to the Board in connection with the renewal of the Investment Advisory Agreements. The Independent Directors also met in executive session with senior representatives of ICMI to discuss the written materials provided by ICMI.

The written materials provided by ICMI and the Sub-Advisers addressed, among other matters, the following: (a) the quality of ICMI’s and the Sub-Advisers’ investment management and other services and, with respect to ICMI, its services as a “manager of managers” of the Sub-Advised Funds; (b) ICMI’s and the Sub-Advisers’ investment management personnel; (c) ICMI’s and the Sub-Advisers’ operations and financial condition; (d) ICMI’s and the Sub-Advisers’ brokerage practices (including best execution policies, evaluating execution quality, average commission rates on fund trades, soft dollar arrangements and affiliated and directed brokerage arrangements) and investment strategies; (e) the level of the advisory fees that ICMI and each Sub-Adviser charges a Fund, including breakpoints, compared with the fees each charges to comparable mutual funds and other types of accounts it manages, if any; (f) the level of ICMI’s and each Sub-Adviser’s cost of services provided and estimated profitability from its fund-related operations; (g) ICMI’s and the Sub-Advisers’ compliance program and, if applicable, a description of the material changes made to, and material compliance violations of, the compliance program; (h) ICMI’s and Sub-Advisers’ reputation, expertise and resources in domestic and/or international financial markets; and (i) each Penn Series Fund’s performance compared with similar mutual funds, other types of accounts and benchmark indices.

At the meeting, representatives from ICMI commented on the information delivered to the Board and answered questions from Board members to help the Board evaluate ICMI’s and the Sub-Advisers’ fees and other aspects of the Investment Advisory Agreements. The Directors discussed the written materials that the Board received before the meeting, and deliberated on the renewal of the Investment Advisory Agreements in light of this information.

At the May 17, 2012 meeting of the Board, the Directors, including the Independent Directors, unanimously approved the Investment Advisory Agreements and approved the selection of ICMI and the Sub-Advisers to act in their respective capacities for the Funds. The Board’s approval was based on its consideration and evaluation of a variety of specific factors discussed at the meeting and at prior meetings during the year, including:

•

the nature, extent and quality of the services provided to the Penn Series Funds under the Investment Advisory Agreements, including the resources of ICMI and the Sub-Advisers dedicated to the Penn Series Funds;

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•

each Penn Series Fund’s investment performance and how it compared to that of other comparable mutual funds and appropriate benchmarks/indices;

•

the fees charged to each Penn Series Fund under each Investment Advisory Agreement and how those fees compared to those of other comparable mutual funds and other types of accounts;

•

the cost of services provided by and the profitability of ICMI and the Sub-Advisers with respect to each Penn Series Fund, including both direct and indirect benefits accruing to ICMI and the Sub-Advisers and their affiliates, if any; and

•

the extent to which economies of scale would be realized as the Penn Series Funds grow and whether fee levels in the Investment Advisory Agreements reflect those economies of scale for the benefit of fund investors.

Nature, Extent and Quality of Services. The Board of Directors considered the nature, extent and quality of the services provided by ICMI and the Sub-Advisers to the Penn Series Funds and the resources of ICMI and the Sub-Advisers dedicated to the Funds. In this regard, the Directors evaluated, among other things, ICMI’s and the Sub-Advisers’ business, personnel, experience, investment decision process, track record, brokerage practices, any conflicts of interest and compliance program. Following evaluation, the Board concluded that, within the context of its full deliberations, the nature, extent and quality of services provided by ICMI and the Sub-Advisers to the Penn Series Funds and the resources of ICMI and the Sub-Advisers dedicated to the Penn Series Funds supported renewal of the Investment Advisory Agreements.

Fund Performance. The Board of Directors considered fund performance in determining whether to renew the Investment Advisory Agreements. Specifically, the Directors considered each Penn Series Fund’s recent and long-term performance relative to its peer group and appropriate indices/benchmarks, in light of total return, yield and economic and market trends. In evaluating performance, the Directors considered both market risk and shareholder risk expectations for a given Penn Series Fund. The Board of Directors also considered its discussions with ICMI regarding the underperformance of those Sub-Advisers on ICMI’s “watchlist”. Following evaluation, the Board concluded that, within the context of its full deliberations, the performance of the Penn Series Funds (both actual performance and comparable performance) supported renewal of the Investment Advisory Agreements.

Advisory Fees. The Directors considered the level of each Penn Series Fund’s investment advisory fees in light of the services provided and in comparison to those of other comparable mutual funds, including, in particular, mutual funds acting as underlying investments for insurance products, and other types of accounts. The Directors also considered ICMI’s and certain Sub-Adviser’s agreements to waive management and other fees to prevent total fund expenses from exceeding a specified cap and that ICMI and the Sub-Advisers, through waivers, have maintained the Penn Series Funds’ net operating expenses at competitive levels for their distribution channel. Following evaluation, the Board concluded that, within the context of its full deliberations, the fees charged to the Penn Series Funds are reasonable and supported renewal of the Investment Advisory Agreements.

Profitability. With regard to profitability, the Directors considered all compensation flowing, directly or indirectly, to ICMI and the Sub-Advisers and their affiliates, if any, from their relationship with the Penn Series Funds, including any benefits derived or to be derived by ICMI and the Sub-Advisers, such as soft dollar arrangements, as well as the cost of services provided to the Penn Series Funds. The Directors considered whether the varied levels of compensation and profitability under the Investment Advisory Agreements were reasonable and justified in light of the quality of all services rendered to the Penn Series Funds by ICMI and the Sub-Advisers and their affiliates, if any. When considering the profitability of the Sub-Advisers with respect to the sub-advisory services they provide to the Penn Series Funds, the Board took into account the fact that the Sub-Advisers are compensated by ICMI, and not by the Penn Series Funds directly, and such compensation with respect to any Sub-Adviser reflects an arms-length negotiation between the Sub-Adviser and ICMI. Based on this evaluation, the Board concluded that, within the context of its full deliberations, the profitability of ICMI and the Sub-Advisers is reasonable in relation to the quality of their respective services and supported renewal of the Investment Advisory Agreements.

Economies of Scale. The Directors considered the existence of any economies of scale and whether those were passed along to a Penn Series Fund’s shareholders through a graduated investment advisory fee schedule (such as breakpoints) or other means, including any fee waivers by ICMI and its affiliates or the Sub-Advisers. Based on this evaluation, the Board concluded

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that, within the context of its full deliberations, the Penn Series Funds and their shareholders obtain a reasonable benefit from any economies of scale being realized by ICMI and the Sub-Advisers.

Based on the Directors’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Directors, unanimously approved the continuation of the Investment Advisory Agreements and concluded that the compensation under the Investment Advisory Agreements is fair and reasonable in light of such services and such other matters as the Directors considered to be relevant in the exercise of their reasonable judgment. In the course of their deliberations, the Directors did not identify any particular information that was all-important or controlling.

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LOGO

Item 2. Code of Ethics

Not Applicable

Item 3. Audit Committee Financial Expert

Not Applicable

Item 4. Principal Accountant Fees and Services

Not Applicable

Item 5. Audit Committee of Listed Registrants

Not Applicable

Item 6. Schedule of Investments

The schedule is included as part of the report to shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not Applicable

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not Applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not Applicable

Item 10. Submission of Matters to a Vote of Security Holders

The Board of Directors of the Company has a Nominating Committee currently consisting of Messrs. Wright, Pudlin and Bay. The principal responsibility of the Nominating Committee is to consider the qualifications of and to nominate qualified individuals to stand for election to the Board. The Nominating Committee has adopted a charter governing its operations. The Nominating Committee would consider nominees recommended by shareholders, if such nominations were submitted in writing and addressed to the Nominating Committee at the Company’s office in conjunction with a shareholder meeting to consider the election of Directors.

The Nominating Committee may adopt from time to time specific, minimum qualifications that the Nominating Committee believes a director candidate must meet before being considered as a candidate. Currently, there are no minimum qualifications set forth by the Nominating Committee other than with respect to an independent director candidate’s independence from the investment advisers and other principal service providers for the Company.

In identifying potential nominees to the Board, the Nominating Committee considers candidates recommended by any of the following sources: (i) the current Directors; (ii) the Company’s officers; (iii) investment advisers to the Funds; (iv) shareholders; and (v) any other source the Nominating Committee deems appropriate. The Nominating Committee will take into account a wide variety of criteria in considering candidates including the following criteria: (i) knowledge in matters relating to the investment company industry; (ii) any experience as a director or senior officer of public companies; (iii) educational background; (iv) reputation for high ethical standards and personal and professional integrity; (v) any specific financial, technical or other expertise and the extent to which such expertise would complement the Board’s existing mix of skills and qualifications; (vi) the perceived ability to contribute to the ongoing functions of the Board; (vii) the ability to qualify as an independent director; and (viii) such other criteria as the Nominating Committee determines to be relevant. The Nominating Committee will consider and evaluate candidates nominated by shareholders on the basis of the same criteria used to consider and evaluate candidates recommended by other sources.

Item 11. Controls and Procedures

(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSRS was recorded, processed, summarized, and reported timely.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a)	(1) Code of ethics – not applicable to this semi-annual report.

(2)

Separate certification of Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached.

(b)

Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, are attached. These certifications are being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and are not filed as part of the Form N-CSRS with the commission.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Penn Series Funds, Inc.

/s/ Peter M. Sherman

By:		Peter M. Sherman
		President
Date:		September 6, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


/s/ Peter M. Sherman

By:		Peter M. Sherman
		President
Date:		September 6, 2012


/s/ Robert J. DellaCroce

By:		Robert J. DellaCroce
		Treasurer
Date:		September 6, 2012