UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

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, 2013

Form N-CSR 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-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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

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 moved higher in the first half of 2013 despite the uncertainty surrounding higher taxes, fiscal reductions known as the “sequester” and continued sluggish economic growth. Volatility returned in the second quarter and remained elevated as evidenced by the late-May through June sell-off. In addition, first-quarter U.S. economic growth was revised downward from earlier estimates, which also offered resistance to advancing share prices late in the second quarter. Once again, the aggressively easy monetary policy of the Federal Reserve proved to be a powerful tailwind for equities during the period. From a sector perspective, defensive sectors such as Utilities and Consumer Staples experienced relatively weaker returns during the second quarter in comparison to the Financial and Consumer Discretionary sectors, which both rose due to consumer optimism. In this environment, the U.S. stock market, as measured by the Wilshire 5000 Equity Index, returned a strong 13.97 percent during the six month period ending June 30.

On a relative basis, small capitalization stocks provided slightly higher returns than did mid and large capitalization stocks during the six month period. Small capitalization stocks, as measured by the Russell 2000 Index, returned 15.86 percent, while mid capitalization stocks, as measured by the Russell Midcap Index returned 15.45 percent and large capitalization stocks, as measured by the Russell 1000 Index, returned 13.91 percent during the six-month period. From a style perspective, value stocks outperformed growth stocks in the mid and large market capitalizations, while the opposite was true in the smaller capitalization ranges.

International markets, both developed and emerging, ended the six month period significantly behind U.S. equities. Developed international stocks, as measured by the MSCI EAFE Index, returned a modest 4.47 percent while emerging market stocks, as measured by the MSCI Emerging Markets Index, suffered a loss of 9.40 percent. Emerging markets steep losses can be attributable to concerns about slowing growth, rising interest rates, political unrest, and currency weakness. For instance, most Latin American markets posted double-digit losses in the second quarter, as weaker commodity prices arising from China’s slowdown and Europe’s recession dampened the outlook for the region’s resource-dependent markets. Political turmoil in Brazil, Turkey and more recently Egypt have all taken a toll and weighted down the returns of emerging markets.

Investment-grade fixed-income securities, coming under significant pressure during May and June, underperformed high yield bonds during the first six months of the year. Investment-grade bonds, as measured by the Barclays Capital U.S. Aggregate Index, returned -2.44 percent for the six month period. The Credit Suisse High Yield Bond Index, which began the year with a solid advance, also came under pressure during the last two months of the six-month period and has returned 1.52 percent so far in 2013. Much of the pressure stemmed from the uncertainty surrounding the U.S. monetary stimulus policy that took center stage late in the second quarter following the Federal Open Market Committee (FOMC) meeting. While the Fed’s monetary stance currently remains unchanged, Chairman Ben Bernanke noted that the committee would look to begin pulling back on the bond-buying program later this year and into 2014 if the economy continues to evolve in line with the Fed’s projections. The Fed’s more optimistic outlook for the U.S. economy has caused investors to sell Treasury bonds in anticipation of higher interest rates once the economy improves and the Fed begins to taper its purchases of bonds. Most surprising to investors was the speed and severity of the move in Treasury markets, where yields on the 10-year note went from 1.6% in the beginning of May to more than 2.5% at the end of June. That translated into unexpected losses across the fixed income spectrum.

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

Sincerely,

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	5
Flexibly Managed Fund	6
Balanced Fund	7
Large Growth Stock Fund	8
Large Cap Growth Fund	9
Large Core Growth Fund	11
Large Cap Value Fund	13
Large Core Value Fund	15
Index 500 Fund	17
Mid Cap Growth Fund	19
Mid Cap Value Fund	20
Mid Core Value Fund	21
SMID Cap Growth Fund	23
SMID Cap Value Fund	25
Small Cap Growth Fund	26
Small Cap Value Fund	28
Small Cap Index Fund	30
Developed International Index Fund	31
International Equity Fund	33
Emerging Markets Equity Fund	34
Real Estate Securities Fund	36
Aggressive Allocation Fund	38
Moderately Aggressive Allocation Fund	39
Moderate Allocation Fund	40
Moderately Conservative Allocation Fund	41
Conservative Allocation Fund	42
Important Information about Fund Expenses	43
Schedules of Investments	46
Statements of Assets and Liabilities	158
Statements of Operations	166
Statements of Changes in Net Assets	170
Financial Highlights	178
Notes to Financial Statements	193
Disclosure of Portfolio Holdings	213
Voting Proxies on Fund Portfolio Securities	213
Board Approval of Investment Advisory and Sub-Advisory Agreements	214

1

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 six-month period ending June 30, 2013. The Fund’s benchmark, the Barclays U.S. Government/Credit 1-3 year Bond Index, returned 0.07% during the same period.

Uncertainty surrounding the U.S. monetary stimulus policy took center stage late in the second quarter following the Federal Open Market Committee (FOMC) meeting. While the Fed’s monetary stance currently remains unchanged, Chairman Ben Bernanke noted that the committee would look to begin pulling back on the bond-buying program later this year and into 2014 if the economy continues to evolve in line with the Fed’s projections. As a result, markets reacted unfavorably with the Barclays Aggregate Bond Index dropping 1.8% for the week. As a reminder, the Fed has been carrying out its existing policy of purchasing $45 billion in Treasury bonds and $40 billion in mortgage-backed securities each month as part of its quantitative easing (QE). The Fed maybe is questioning the effectiveness of its purchase program. The Fed’s more optimistic outlook for the U.S. economy has caused investors to sell Treasury bonds in anticipation of higher interest rates once the economy improves and the Fed begins to taper its purchases of bonds. Most surprising to investors was the speed and severity of the move in Treasury markets, where yields on the 10-year note went from 1.6% in the beginning of May to more than 2.5% at the end of June. That translated into unexpected losses across the fixed income spectrum, including corporate bonds, mortgage-backed securities, municipal bonds, and emerging market debt. Nonetheless, the Fed’s “exit” plan will likely dominate market sentiment in the weeks and months ahead as the beginning of the end of the Fed’s QE program plays out.

In the second quarter of 2013, the broad fixed-income market as measured by the Barclays Capital U.S. Aggregate Index generated an overall return of –2.32%. This was the worst quarterly return since the second quarter of 2004, and just the third loss of more than 2% in the past 20 years. Major fixed income spread sectors performance was negative with investment grade corporate bonds (–3.31%), mortgage-backed securities (–1.96%), asset-backed securities (–0.80%), and commercial mortgage-backed securities (–1.44%). Asset-backed securities, the best performing sector during the quarter, benefited from lower duration, higher quality, and perceived relative safe-haven. With most low-risk assets continuing to offer

negligible current income, investors continue to seek higher-risk, higher-yielding issues. While high yield bonds dipped, returning –1.44% during the second quarter, they maintained their lead as the top performing fixed-income sector for the year (+1.42%).

As anticipated, the Fund’s more conservative, lower credit risk approach, that has historically met total return performance goals without exposing the investor to undue default risk, was a headwind during the first quarter of the year against peers assuming greater risk. However, with volatility increasing late in the second quarter, the Fund’s conservative posture proved to be beneficial as it ranked near the top decile against peers during the second quarter. In this current deleveraging economic environment, 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. 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. During the second quarter, we sought to add exposure to the short end of the yield curve by purchasing a higher yielding asset-backed security backed by personal loans as well as an agency multi-family secured mortgage bond. For now the Limited Bond Fund remains high quality and defensively positioned with duration approximately even with the index.

Independence Capital Management, Inc.

Investment Adviser

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
U.S. Treasury Obligations		52.5	%
Corporate bonds		23.0	%
Agency Obligations		11.0	%
Asset backed		6.8	%
Commercial Mortgage Backed		3.7	%
Residential Mortgage Backed		2.4	%
Municipal Notes		0.6	%
		100.0	%

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

2

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Quality Bond Fund

The Quality Bond Fund returned –3.04% for the six-month period ending June 30, 2013. The Fund’s index, the Barclays Capital U.S. Aggregate Bond Index, returned –2.44% over the same period.

Uncertainty surrounding the U.S. monetary stimulus policy took center stage late in the second quarter following the Federal Open Market Committee (FOMC) meeting. While the Fed’s monetary stance currently remains unchanged, Chairman Ben Bernanke noted that the committee would look to begin pulling back on the bond-buying program later this year and into 2014 if the economy continues to evolve in line with the Fed’s projections. As a result, markets reacted unfavorably with the Barclays Aggregate Bond Index dropping 1.8% for the week. As a reminder, the Fed has been carrying out its existing policy of purchasing $45 billion in Treasury bonds and $40 billion in mortgage-backed securities each month as part of its quantitative easing (QE). The Fed maybe is questioning the effectiveness of its purchase program. The Fed’s more optimistic outlook for the U.S. economy has caused investors to sell Treasury bonds in anticipation of higher interest rates once the economy improves and the Fed begins to taper its purchases of bonds. Most surprising to investors was the speed and severity of the move in Treasury markets, where yields on the 10-year note went from 1.6% in the beginning of May to more than 2.5% at the end of June. That translated into unexpected losses across the fixed income spectrum, including corporate bonds, mortgage-backed securities, municipal bonds, and emerging market debt. Nonetheless, the Fed’s “exit” plan will likely dominate market sentiment in the weeks and months ahead as the beginning of the end of the Fed’s QE program plays out.

In the second quarter of 2013, the broad fixed-income market as measured by the Barclays Capital U.S. Aggregate Index generated an overall return of –2.32%. This was the worst quarterly return since the second quarter of 2004, and just the third loss of more than 2% in the past 20 years. Major fixed income spread sectors performance was negative with investment grade corporate bonds (–3.31%), mortgage-backed securities (–1.96%), asset-backed securities (–0.80%), and commercial mortgage-backed securities (–1.44%). Asset-backed securities, the best performing sector during the quarter, benefited from lower duration, higher quality, and perceived relative safe-haven. With most low-risk assets continuing to offer negligible current income, investors continue to seek

higher-risk, higher-yielding issues. While high yield bonds dipped, returning –1.44% during the second quarter, they maintained their lead as the top performing fixed-income sector for the year (+1.42%).

As anticipated, the Fund’s more conservative, lower credit risk approach, that has historically met total return performance goals without exposing the investor to undue default risk, was a headwind during the first quarter of the year against peers assuming greater risk. In this current deleveraging economic environment, 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. 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. During the quarter, agency mortgages underperformed Treasuries and as a result, we scaled back some of the Fund’s underweight positioning in this sector to take advantage of the mortgage widening. We also added exposure to corporate bonds for most of April and May in higher quality exposure names such as Walmart and Northrop Grumman, a leading global security company. When the volatility increased in June following the FOMC meeting, we took this opportunity to increase the size of the Fund’s corporate bond allocation, including emerging market names. As we witnessed outflows in emerging market bond funds, we took advantage of this opportunity to buy high quality, large cap entities that operate as multinationals. During the quarter, we also purchased high quality credit assets in sectors such as Healthcare, Energy and Telecommunications. For now the Quality Bond Fund remains high quality and positioned with duration approximately even with the index.

Independence Capital Management, Inc.

Investment Adviser

3

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
U.S. Treasury Obligations		44.0	%
Residential Mortgage Backed		24.6	%
Corporate Bonds		23.5	%
Asset Backed Securities		3.3	%
Municipal Bonds		1.6	%
Agency Obligations		1.5	%
Commercial Mortgage Backed		1.0	%
Municipal Notes		0.5	%
		100.0	%

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

4

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

High Yield Bond Fund

The Penn Series High Yield Bond Fund returned 1.70% in the first half of 2013 while its benchmark, the Credit Suisse High Yield Bond Index, returned 1.52%.

Credit selection in aerospace and financials contributed to results, and a small but necessary reserves allocation detracted.

The high yield market began the second quarter on a high note, carrying over the positive momentum from the first three months. Investor sentiment shifted in the latter part of the six-month period. The change in sentiment was partly driven by misinterpretation of Federal Reserve (Fed) Chairman Ben Bernanke’s comments in May, which caused market participants to quickly adjust expectations regarding future Fed asset purchases. U.S. Treasury yields soared — pressuring the entire fixed income market — as the Fed more clearly defined the framework for normalizing monetary policy.

In May, the market was saturated with new deals that mostly favored bond issuers — including historically low coupons — and likely contributed to the pullback. Heavy supply may have drained portfolio managers’ cash positions, leading to selling pressure as high yield funds experienced redemptions. Industry outflows were modest in May but hit an all-time high in June.

Gains in the special situations portion of the Fund were substantial enough leading into the third week of May to counteract the impact of the sell-off later in the period. For example, we purchased AMR Corp. (American Airlines) stock over the first quarter. The stock subsequently traded up following the announcement that American Airlines would merge with U.S. Airways. We also took profits within our modest equity allocation at market highs in many cases.

Our allocation to bank debt provided ballast to the Fund. Investor demand for floating rate instruments — such as bank loans — was strong, seemingly in response to increased interest rate volatility. Similarly, relative returns were helped by our targeted underweight to higher-quality bonds, which are more susceptible to interest rate risk.

On a positive note, the sell-off in the secondary market provided us with opportunities to invest in fundamentally sound names at a discount or to purchase recently issued bonds that were difficult to source due to overwhelming demand. Our recent credit meeting discussions centered on secondary market opportunities, with a focus on

higher-quality securities that have experienced outsized underperformance. We also initiated positions in select emerging markets companies — such as Marfrig and Israel Electric — that became oversold as many investors focused on risk reduction.

With below investment-grade yields and credit spreads moving higher, we believe the market will eventually stabilize as value-conscious investors reallocate and buy on weakness. High yield issuers appear fundamentally sound, and we expect defaults to remain low over the next two years.

We expect the U.S. economy to continue its modest growth, creating a favorable operating environment for high yield companies. We also think uncertainty around the timing of the Fed’s tapering of asset purchases could cause additional volatility in the Treasury market.

We continue to broaden our scope outside of traditional U.S. high yield bonds by leveraging insights from the firm’s global research platform as we evaluate high yield bonds in emerging markets and Europe.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/13

	Percent of Total  Investments1
Bonds
BBB/BB Rated & Above		2.9	%
BB Rated		22.0	%
BB/B Rated		10.9	%
B Rated		36.9	%
B/CCC Rated		8.1	%
CCC and Below		15.9	%
Not rated		1.2	%
Equity securities		2.1	%
		100.0	%

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

5

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Flexibly Managed Fund

The Penn Series Flexibly Managed Fund returned 10.13% for the six-month period ending June 30, 2013, compared to its benchmarks the S&P 500 Index’s return of 13.82% and the Merrill Lynch Corporate/Government Index’s return of –2.85%.

Stocks were the strongest-performing asset class in the Fund, outperforming the S&P 500 Index. Our bond holdings also posted a positive return and outpaced. On an absolute basis, the financials and consumer discretionary sectors were sizable contributors to performance. No sectors detracted on an absolute basis.

The U.S. equity market continued its recent strength in the first half of the year, despite a June sell-off due to hints by the Federal Reserve that the tapering of its asset purchase program could begin later this year and even end by next year, barring continued economic improvement. Investors also reacted to further evidence of the ongoing recovery in the housing and labor markets, as well as supportive corporate earnings growth and diminished concerns about U.S. fiscal policy. The U.S. equity market continued to appear attractive relative to other asset classes, although that attractiveness diminished somewhat over the past few months due to the sell-off in fixed income assets and the continued strength in the equity market.

Our equity weight was flat quarter-over-quarter. We continued to focus the Fund on high-quality names with defensive characteristics, such as names with low earnings volatility. Over the past three months, we found opportunities in the consumer staples, health care, and industrials and business services sectors. Our fixed income weight increased as we added to our holdings in high-quality corporate issues with low duration. The Fund’s cash position fell during the quarter and is significantly down year-over-year.

The financials sector was a leading contributor to performance, driven by capital market companies. Rising interest rates and two consecutive strong quarterly results boosted global trust and custody bank State Street. Online broker TD Ameritrade also benefited from rising interest rates as well as increased investor trading activity in May and June, spurred on by increased equity and fixed income volatility.

On an absolute basis, no sectors detracted from performance. However, both Apple and Nestlé were notable detractors on the security level.

Looking across the asset class spectrum, we continue to believe the equity market looks attractive relative to other asset classes. We are finding opportunities in select consumer staples, health care, and industrials and business services names. Within the fixed income space, we continue to look to lower the duration of the Fund in light of rising interest rates. While the overall fixed income market still appears somewhat overvalued, negative investor flows in the asset class have created opportunities at the margins. As always, we remain focused on achieving our investment objective by finding the best risk-adjusted opportunities across the various asset classes.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/13

	Percent of Total  Investments1
Corporate bonds		17.8	%
Financials		13.0	%
Technology		11.5	%
Consumer Discretionary		11.0	%
Industrials		10.1	%
Health Care		9.8	%
Consumer Staples		8.2	%
Loan Agreements		7.5	%
Agency Obligations		4.1	%
Energy		3.2	%
Utilities		2.6	%
Preferred Stocks		0.8	%
Asset Backed Securities		0.5	%
Commercial Mortgage Backed		0.5	%
Options		–0.6	%
		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.

6

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Balanced Fund

The Penn Series Balanced Fund returned 6.67% for the six-month period ending June 30, 2013, compared to its benchmarks, the S&P 500 Index’s return of 13.82% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.44% for the same time period.

The Balanced Fund is comprised of a target allocation of 60% to an equity fund and 40% to a fixed income fund. The equity allocation of the Fund is comprised of the Penn Series Index 500 Fund which seeks a total return that corresponds to that of the S&P 500 Index. The fixed income allocation of the Fund consists of an allocation to the Penn Series Quality Bond Fund.

At the broad asset class level, the Balanced Fund’s equity allocation performed in line with its broad equity benchmark the S&P 500 Index for the one-year period. The Fund’s fixed income allocation slightly underperformed the Barclays Capital U.S. Aggregate Bond Index for the year-to-date time period. Weighing on the fixed income allocation of the Fund was the more conservative composition of the underlying individual fixed income fund versus the broad market Index.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/13

Index 500	60.0	%
Intermediate Bonds	40.0	%
	100.0	%

7

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Growth Stock Fund

The Penn Series Large Growth Stock Fund returned 11.02% for the six-month period ending June 30, 2013, compared to the 11.80% return for its benchmark, the Russell 1000 Growth Index.

Stock selection was the main reason for relative underperformance. The telecommunication services and health care sectors were the largest relative detractors. Energy, industrials and business services, and consumer discretionary were the leading outperformers.

U.S. equities soared in the first half of 2013, lifting several major indexes to multiyear or all-time highs by the end of May. The rally was supported by an improving economic and employment outlook despite federal tax increases and automatic spending cuts that went into effect during the first quarter. Investor sentiment was also lifted by good corporate earnings reports and accommodative monetary policies from major central banks. However, late in the period, stocks retreated from their best levels and long-term rates rose sharply, as the Federal Reserve signaled that it would begin tapering its asset purchases in the second half. Small-cap stocks outperformed large-caps. As measured by Russell indexes, value stocks outperformed growth among mid- and large-caps, while the opposite was true for small-caps.

Telecommunication services was the leading detractor on stock selection. A rise in the 10-year Treasuries rate negatively impacted tower companies, including Crown Castle International. Tower companies typically have longer-term contracts and cannot adjust quickly to a change in interest rates.

Health care underperformed due to stock selection and detrimental underweighting of the top-performing sector in the benchmark. In February, the U.S. Food and Drug Administration rejected an application from Novo Nordisk to sell its long-lasting insulin, Tresiba, saying the agency needed more information on the cardiovascular effects. Edwards Lifesciences, which designs and manufactures products to treat late-stage cardiovascular disease, reported earnings that missed expectations for the third consecutive quarter. The company attributed the setback to a lack of reimbursement for certain cardiovascular treatment procedures.

Energy was the leading outperformer due to stock selection. Early in the year, oil and gas producer EQT reported that production had grown 30% in 2012 and increased its estimated recovery rates for 2013. The

company benefited from higher gas and oil prices. Share prices of Range Resources rose with increased production and higher natural gas prices, combined with an improvement in company cost controls.

Industrials and business services outperformed on stock selection. Rail transport company Kansas City Southern Industries has benefitted from an increase in crude oil shipments to the Gulf of Mexico, as well as increased demand for intermodal transportation.

The U.S. economy continues to expand at a stronger pace than most of the developed world, while emerging markets are grappling with lower growth and renewed political turbulence in some countries. We believe the United States is transitioning from a stimulus-driven to a market-driven economic environment as the Fed begins to ratchet down its asset purchase program and eventually starts to raise interest rates. This change in dynamic should prove healthy over the long run, but we don’t expect the second half of the year to be as robust as the first half.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Portfolio Composition as of 6/30/13

	Percent of Total  Investments1
Consumer Discretionary		27.2	%
Technology		24.4	%
Industrials		11.9	%
Health Care		11.5	%
Consumer Staples		7.1	%
Financials		5.9	%
Energy		5.0	%
Materials & Processing		3.8	%
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.

8

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Cap Growth Fund

The Penn Series Large Cap Growth Fund returned 5.33% for the six-month period ending June 30, 2013, compared to the 11.80% return for its benchmark, the Russell 1000 Growth Index.

Investors have been moving back into stocks as their confidence in the current bull market increases, however they’ve especially rewarded slow-growth stocks. Investors generally avoided stocks with high valuations, preferring the relative safety of lower-priced, lower-growth stocks. Given this unfavorable environment, the Fund trailed the Index. Underperformance versus the benchmark was rooted in relative weakness in the technology and consumer-discretionary sectors. On the other hand, the health care and financial-services sectors added the most value versus the benchmark on a relative basis for the period.

In the technology sector, our holdings in Apple and Juniper Networks were among the largest detractors to performance. Apple is a core holding for the Fund, which we have owned for a number of years. We believe the recent decline has been driven by increased competition from Samsung in the smartphone market, a maturing high-end smartphone market, and concerns of margin erosion from offering lower priced products.

Underperformance in the consumer-discretionary sector was due largely to the poor results posted by both Facebook and lululemon athletica. Shares in Facebook, a social-networking service and website continued to underperform. Investors were alarmed by Mark Zuckerberg’s announcement of 2013 being an investment year, which could depress profit margins in the short term. Lululemon athletica, a long-term holding, designs and sells athletic apparel. Shares took hit on a March announcement that revealed design flaws in the company’s popular yoga wear.

On the positive side of things, in the health care sector outperformance versus the benchmark was largely due to the strong results provided by Biogen Idec and GNC Holdings.

Excess return in the financial-services sector was largely driven by the strong results in shares of CBRE Group, a global provider of commercial real-estate services to the office, retail, industrial, and multi-family industries.

The commentary provided above was from the former sub-adviser of the Fund, Turner Investments who was the manager of the Fund until May 1, 2013.

Contributing to performance during May and June was stock selection in the financial services sector and an overweight position and stock selection in industrial goods and services. Also contributing to performance during this period was an underweight position in Apple and avoiding Philip Morris International.

Detracting from performance during the last two months of the second quarter was stock selection in retailing and special products and services sectors as well as positions in Franklin Resources, Autodesk, Pernod Ricard and not owning Microsoft and Boeing.

The Fund aims to be a broadly diversified collection of large cap, high-quality companies with durable franchises, sustainable earnings and/or free cash flow growth, strong balance sheets, and strong management teams that is constructed based on a disciplined bottom-up stock selection process. We employ a long-term time horizon in seeking high quality, durable franchises that we believe will be able to generate above average growth sustainably for several years into the future. We look for near-term opportunities to acquire these companies at inexpensive valuations relative to the broad market.

Our conservative, valuation-focused growth approach led us to maintain an overweight in the consumer staples sector, as we have long favored stocks in this sector given the visibility and reliability of earnings growth. Within staples, we were overweight consumer products with a focus on companies with strong brands and diverse geographical footprints that we feel could enable them to grow at above-average rates, as well as strong balance sheets, good cash flow generation and reasonable valuations.

The commentary provided above was from the current sub-adviser of the Fund, MFS Investments who became the manager of the Fund on May 1, 2013.

Independence Capital Management, Inc.

Investment Adviser

MFS Investments

Investment Sub-Adviser

9

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total  Investments1
Technology		27.1	%
Consumer Discretionary		14.7	%
Healthcare		14.9	%
Industrials		17.6	%
Consumer Staples		15.6	%
Energy		4.2	%
Financials		3.5	%
Materials & Processing		2.4	%
		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.

10

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Core Growth Fund

The Penn Series Large Core Growth Fund returned 10.94% for the six-month period ending June 30, 2013, compared to the 11.80% return for its benchmark, the Russell 1000 Growth Index.

For most of 2013, there have been both negative and positive macro events impacting the industrial sector. For example, improvements in housing and manufacturing have been offset by weak demand in Europe and sequestration worries. In this type of environment, the ability to select stocks with the strongest secular growth opportunities can add meaningful contribution to the Fund. While railroads have historically not been front of mind when discussing secular growth opportunities, select railroads definitely fit that description in our opinion. Kansas City Southern gained over 27% during the period as the company continues to benefit from increased North American manufacturing activity, specifically via its rail lines in and out of Mexico. Union Pacific Corp. added over 23% as it has seen ancillary benefits of the real estate recovery though increased shipments of building supplies.

Despite a small overall weight in the Fund, the financial sector was an area of healthy stock selection during the period. IntercontinentalExchange continued to validate our thesis around increasingly diversified revenue streams and cost synergies resulting from the acquisition of NYSE Euronext. Additionally, Affiliated Managers Group was a contributor to the Fund. As a leading asset manager with a collection of boutique offerings, AMG is benefitting from strong underlying product performance and inflows into asset classes en vogue with global investors.

The main detractors for the Fund were from stock specific issues in the health care sector as security selection has been a frustrating proposition thus far in 2013. We have been caught in the middle of two trading patterns in the sector: 1) investor hype around biopharmaceutical companies with binary pipeline outcomes and 2) investors, in the midst of shifting assets out of fixed income, attracted to the dividend yields offered in the sector as a “bond proxy”. While the former group, biotechnology companies, offer strong potential earnings growth and exciting products, we have been careful to allocate to stocks whose upside depend solely on clinical test results and the timing of possible FDA approvals. The latter trade, high dividend payers, lacks relevance as most of the companies don’t have the earnings growth we require for our investment process.

Positioning in the consumer staples sector also negatively impacted performance. As we have stated previously, identifying candidates that meet our investment criteria in the sector is continually challenging given the general lack of true growth companies and the rich valuation levels. Therefore, we remain meaningfully underweight; a decision that hurt performance given the strong relative returns of the sector. Furthermore, weakness in one of the few staples names we own did not help matters. Whole Foods Markets declined over 2.6% as the company reported weaker than expected same store sales and provided conservative guidance on future sales and margin levels.

While rate sensitive and yield oriented strategies were called into question late in the quarter with talk of Quantitative Easing “tapering”, we have taken a different route. Our path is not predicated on accommodative monetary policy or high dividend “bond proxies”, but rather on the type of strong secular growth that will allow for a more complete and sustainable economic recovery. As performance in the quarter reflected, there are few better places to find this type of growth and innovation than among domestically oriented companies. To that point, we remain bullish on the U.S. economy and in particular, on the U.S. consumer who is benefiting from a robust housing recovery, a strengthening U.S. dollar and improving employment data. This powerful combination bodes well for consumer confidence and domestic consumption.

Independence Capital Management, Inc.

Investment Adviser

Wells Capital Management

Investment Sub-Adviser

11

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Consumer Discretionary		29.4	%
Technology		28.4	%
Industrials		13.6	%
Healthcare		11.1	%
Financials		5.5	%
Consumer Staples		5.2	%
Materials		4.0	%
Energy		1.4	%
Telecommunications		1.4	%
		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.

12

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Cap Value Fund

The Penn Series Large Cap Value Fund returned 13.98% for the six-month period ending June 30, 2013, compared to the 15.90% return for its benchmark, the Russell 1000 Value Index.

During the first quarter, among the top contributors to Fund performance were Walgreen, Honeywell International, and Verizon Communications. Shares of Walgreen, an operator of drug stores, performed particularly well in March after announcing a long-term deal with AmerisourceBergen, the third largest drug distributor in the United States. Honeywell is a diversified technology and manufacturing company that released positive 2012 results during the quarter. Verizon Communications’ stock benefited from increases in revenue and customer growth.

The most significant detractors from performance in the first quarter was Apple. Having realized strong investment returns earlier in 2012, Apple gave back some of its relative outperformance during the period as investors sought to lock in gains. Production Also detracting from performance was Celanese, which manufactures chemical products, traded lower after it announced it expected challenging economic conditions to persist in 2013.

During the month of April, the top contributors were managed health care company Humana, Citigroup, American International Group, Verizon Communications and The Walt Disney Co.

The most significant detractors from Fund performance included Industrials stocks General Electric, Honeywell International, Quanta Services and Navistar International. Outside of Industrials, MGM Resorts International detracted from performance.

The commentary provided above was from the former sub-adviser of the Fund, OppenheimerFunds who was the manager of the Fund until May 1, 2013.

Strong stock selection in the financials, industrials and materials sectors, combined with an overweight in the consumer discretionary space were the main contributors to outperformance. The strong performance of the financial services sector has been the real story in the overall markets as well as within the strategy over the past few months. Within the Fund, this sector was the largest outperformer on an absolute basis due to strong individual performance from Metlife, JP Morgan Chase and Wells Fargo, as many positive data points have boosted financial

stocks across the board. Within the industrials and materials sectors, Northrop Grumman and DuPont were strong contributors. Northrop, an Aerospace and Defense electronics company, reported strong earnings based on better operational performance. DuPont, a global chemical and life sciences company, reported better than first quarter consensus on higher revenues from both their Agricultural and Pigments businesses.

Detractors from overall performance included a technology holding, Motorola Solutions, as well as two names in the energy space, Hess Corp and Consol Energy. Lower enterprise volume production drove down shares of Motorola Solutions, a telecommunications equipment provider, however the long term story is still intact. In May, Hess’ five month proxy battle with Elliott Management came to a quiet resolution just ahead of the shareholder vote.

During the quarter, we made a few changes to the positioning of the Fund. In April, we took advantage of the recent pullback to add to a few names (i.e. Family Dollar, Sealed Air, Apple, Phillip Morris and EOG Resources) on weakness. We exited completely out of EBAY, as the stock has done more than we envisioned. We have also sold AT&T and started a new position in Verizon. AT&T had hit our base case target and we believe that Verizon is in a better fundamental situation. We also added Illinois Tool Workers as the new CEO is shifting ITW’s focus to divesting low-return businesses, dramatically consolidating the remaining portfolio, and managing certain aspects of that consolidated enterprise more tightly.

The commentary provided above was from the current sub-adviser of the Fund, Loomis, Sayles & Co,.who became the manager of the Fund on May 1, 2013.

Independence Capital Management, Inc.

Investment Adviser

Loomis, Sayles & Co.

Investment Sub-Adviser

13

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Financials		25.3	%
Healthcare		13.8	%
Consumer Discretionary		13.0	%
Energy		12.3	%
Industrials		9.9	%
Technology		8.8	%
Consumer Staples		6.7	%
Utilities		4.2	%
Materials		3.5	%
Telecommunications		2.5	%
		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.

14

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Core Value Fund

The Penn Series Large Core Value Fund returned 13.77% for the six-month period ending June 30, 2013, compared to the 15.90% return for its benchmark, the Russell 1000 Value Index.

The U.S. equity market posted robust gains during the first six months of 2013, with several major stock indexes setting or nearing record highs during the period. During the first quarter 2013, positive economic trends overcame headwinds ranging from recent tax hikes to renewed turmoil in Europe. In the U.S., encouraging news on the jobs front and surprisingly strong U.S. retail sales helped ease concerns that consumers might spend less amid higher taxes and still high energy prices. In the housing market, rising demand and more limited supply lifted home values, helping to boost consumer confidence and spending.

Equity market strength continued for much of the second quarter, before markets experienced increased volatility toward the end of the period as investors sold stocks after the Federal Reserve (the Fed) announced that a key component of its economic stimulus effort might be scaled back in the coming months. Also weighing on stocks were rising interest rates and an unsettled outlook for China’s massive economy. Equities bounced back near quarter end, recovering some of the ground they had lost. Despite the late period volatility, major U.S. stock indexes finished the period with strong gains.

The Fund’s underperformance versus the Index was primarily due to unfavorable stock selection results. Sector allocation overall had a modest positive impact on the Fund’s relative performance. Smaller-cap stocks generally outperformed the largest-cap stocks and lower quality stocks generally outpaced higher quality stocks during the period, creating a headwind to the Fund’s relative performance.

Nine of the ten Index sectors posted gains for the period, while all 10 of the sectors for the Fund were positive. Information technology and health care delivered the strongest performance results, while materials was the lone sector that generated a negative return over the period.

Unfavorable stock selection in the information technology sector was the main detractor from the Fund’s performance versus the Index during the period. Exposure to Apple, Oracle, and IBM weighed on relative performance results.

In telecommunication services, an overweight position in National Grid detracted. Other notable individual detractors over the period included the Fund’s holdings in Caterpillar, EMC, and Capital One Financial.

An underweight exposure to materials, coupled with avoiding some of the biggest laggards in the sector, aided relative performance. Industrials positions Boeing and Union Pacific contributed to results. Elsewhere, the Fund also benefited from overweight positions in Gilead Sciences, Microsoft, and Regions Financial.

The stock market’s recovery in the final days of the second quarter likely reflected diminished concerns about the prospect of scaled back government economic stimulus. A key test of market resilience may come later in 2013 if the Fed begins to put its plan into action. Equity investors will also be paying close attention to trends in interest rates, both short- and long-term. At the same time that it announced the possibility of reduced bond buying, the central bank reaffirmed its commitment to another key stimulus component: keeping short-term interest rates near zero until the unemployment rate falls significantly. Any sign of a change in this policy going forward could spark volatility in equity markets. Globally, a resolution of China’s credit crisis and stabilization of the country’s economic growth might be welcomed by investors.

Independence Capital Management, Inc.

Investment Adviser

Eaton Vance Management

Investment Sub-Adviser

15

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Financials		30.2	%
Energy		15.8	%
Healthcare		13.7	%
Industrials		11.1	%
Technology		8.6	%
Consumer Discretionary		6.5	%
Utilities		5.1	%
Consumer Staples		3.9	%
Telecommunications		2.7	%
Materials		2.4	%
		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.

16

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Index 500 Fund

The Penn Series Index 500 Fund returned 13.55% for the six-month period ending June 30, 2013, compared to the 13.82% return for its benchmark, the S&P 500 Index.

After lagging the vast majority of global stock markets amid the fiscal worries that preoccupied the final quarter of 2012, U.S. equity averages recovered strongly during the opening months of 2013. All ten sectors in the S&P 500 Index posted solid gains during the first quarter of 2013. Topping the charts was the health care sector, which added 6.4% for March and 15.8% for the first quarter. Shares in several biotechnology firms enjoyed gains more than twice that large. The utilities sector was also a big winner, adding 5.4% in March and 13.0% for the quarter. Ample dividend yields continued to attract money to the group, which paid little heed to jumpy bond yields as it bounced back from a choppy 2012.

Indeed, the weakest U.S. sectors in the first quarter were information technology and materials, each of which returned less than half as much as the S&P 500 Index during the period. Continued declines in device maker Apple weighed on the technology sector, but several networking names also lost value in the first quarter. Meanwhile, poor performance among metals names was a major drag on the materials sector. The weakest S&P 500 Index groups in March alone were the energy and industrials sectors, with respective monthly returns of 1.9% and 2.2%.

The adjustments to monetary policy rhetoric during the second quarter caused considerable volatility across the major sectors in the S&P 500 Index, and even though all ten sectors still show ample gains since the start of 2013, the leadership seems to be narrowing. Amid the broader fray, the industrial sector has served as a compelling fulcrum, returning within 10 basis points of the S&P for June, for the second quarter, and also for the full first half. The balanced results of the industrials seem to reflect quite appropriately the tension between building economic recovery and the policy pullback that better growth may foster. For dividend-oriented groups, like telecommunication services and utilities, the consequences of potentially tapered accommodation have been less ambiguous. After faring quite well in the first quarter, the utilities lost 2.7% during the second, even after a mild rebound in June. Telecommunications services also bounced in the latest month, recovering to post a 1.0% return for the second quarter, but now both

telecommunications and utilities lie well behind the S&P 500 on a year-to-date basis. The energy and materials sectors have been underperformers throughout 2013, suffering from sluggish global growth indicators and attendant declines in commodity prices. For June alone, the materials were the worst sector performer, losing 4.3%, but information technology was not far behind with a 3.6% decline.

On the sunnier side, health care and consumer discretionary stocks have been the most consistent S&P performers thus far in 2013. Led by big gains in several biotechnology names, the health care group tacked on 3.8% in the latest three months and its 20.3% advance in the first half was tops among all ten S&P sectors. Consumer discretionary did even better in the second quarter, climbing 6.8%, but its 19.8% year-to-date result leaves it just a touch behind healthcare for the full first half. Spearheading the discretionary advance thus far in 2013 have been a number of media and leisure-related names. The financials are not far behind, with a 19.5% gain since the start of the year. Despite a 1.7% loss in June when rising bond yields reawakened concerns about the health of European banks whose shareholders may have to bear greater burdens in future restructurings, the financial sector was the top quarterly performer in the S&P, posting a 7.3% three-month return.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

17

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Technology		17.8	%
Financials		16.7	%
Healthcare		12.7	%
Consumer Discretionary		12.2	%
Energy		10.5	%
Consumer Staples		10.5	%
Industrials		10.2	%
Materials & Processing		3.3	%
Utilities		3.3	%
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.

18

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Cap Growth Fund

The Penn Series Mid Cap Growth Fund returned 12.58% for the six-month period ending June 30, 2013, compared to the 14.70% return for its benchmark, the Russell Midcap Growth Index.

During the first half of 2013 investors have been moving back into stocks as their confidence in the current bull market increases; however, they’ve especially rewarded slow-growth stocks. Investors generally avoided stocks with high valuations, preferring the relative safety of lower-priced, lower-growth stocks. We prefer stocks that display the highest rate of earnings growth. Given this unfavorable environment, the Fund trailed its Index. Underperformance versus the benchmark was rooted in relative weakness in the consumer staples and producer durables sectors. On the other hand, the financial-services and consumer discretionary sectors added the most value versus the benchmark on a relative basis for the year-to-date period.

The consumer staples sector was the largest detractor to performance as specialty and retail food companies underperformed. Top detractors for the past six months were positions in Whole Foods, Beam Inc. and Hain Celestial Group as a result we sold out of Whole Foods and Hain Celestial Group and continue to own Beam Inc. Within the producer durables sector, our positions in Joy Global, Toll Brothers and Ultratech Inc. were among the largest detractors from relative results. We sold out of Joy Global and continue to hold Toll Brothers and Ultratech.

On the positive side, the Fund’s holdings in the financial sector outperformed those in the benchmark as overweight positions in IntercontinentalExchange, Brown & Brown and Affiliated Managers provided solid outperformance on an absolute and relative basis, as a result we continue to own all three companies. Along with financials, the consumer discretionary sector contributed to overall performance due to overweight positions in LinkedIn, HomeAway and Delta Air Lines. As a result we continue to hold all three positions as well.

Short-term volatility could continue as the Federal Reserve moves closer to the end of quantitative easing. But a portentous fact seems to be getting drowned out amongst the wailing and gnashing of teeth surrounding the end of quantitative easing — without significant economic progress, there’d be no reason to consider removing the Fed’s support system. Instead of worrying about the short-term, we think investors will soon see the bigger picture

and the improving conditions for economic growth. For example, the U.S. Congressional Budget Office expects the economy to grow 3.4% next year and 3.6% between 2015 and 2018. And as the Fed slowly winds down its bond-buying program, we believe it should encourage investors to focus on stocks with higher earnings prospects and those that reinvest more in their own businesses in order to maximize returns over time.

We continue to believe that stocks have more upward potential behind them. In the near term, we expect to see an increase in volatility as investors digest the implications of scaled back fiscal-stimulus policies. And, even if the Fed does begin phasing out the current $85-billion a month bond-purchasing program, we expect interest rates to remain low until unemployment reaches their 6.5% target. So as the caution and concern surrounding the loss of that quantitative crutch dissolves, we think investors may return their focus to the bright spots in the macroeconomic landscape that helped boost stock returns so far in 2013. These include the U.S. housing market, an improving jobs market, and the overall slow yet steady growth of the U.S. economy.

Independence Capital Management, Inc.

Investment Adviser

Turner Investments

Investment Sub-Adviser

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Consumer Discretionary		29.7	%
Technology		14.6	%
Healthcare		14.0	%
Financials		14.0	%
Industrials		9.3	%
Materials & Processing		6.6	%
Energy		5.7	%
Consumer Staples		4.5	%
Utilities		1.6	%
		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.

19

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Cap Value Fund

The Penn Series Mid Cap Value Fund returned 17.66% for the six-month period ending June 30, 2013, compared to the 16.10% return for its benchmark, the Russell Micap Value Index.

During the period, the Fund benefitted from several of our contrarian positions that underperformed in 2012, including three retail positions (Best Buy, Safeway and Staples). Our underweight in the financial services sector (especially REIT’s), together with strong stock picking (State Street, Fidelity National) also contributed to performance during the period. Merger and acquisition activity and corporate restructurings helped as well. Virgin Media agreed to be acquired by Liberty Global at a substantial premium, CenterPoint Energy announced the formation of an MLP, BMC Software agreed to be acquired by a private investor group led by two private equity firms, NV Energy agreed to be acquired by MidAmerican Energy Holdings, a subsidiary of Berkshire Hathaway, and Devon Energy announced plans to form a publicly traded midstream MLP, which we believe can create value when it trades in the public markets. Lastly, Safeway, our largest position, entered into a definitive agreement to sell its Canadian operations to Sobeys for C$5.8 billion.

Our overweight and stock selection in technology and producer durables detracted from performance. In technology, Verifone and Nuance both missed earnings estimates and we used the weakness in Nuance, a franchise company in voice recognition technology, to increase our position size. Activist investor, Carl Icahn, also announced that he has accumulated around 15% of the shares. Brinks’ (Producer Durables) shares also declined as earnings came in below expectations.

Volatility returned to the markets, especially toward the end of the period. Substantial price changes resulted in increased portfolio activity both on the buy and sell side in order to improve the Fund’s discount to our estimate of intrinsic value. We eliminated seven positions; ADT, Virgin Media, Humana, Sempra and Hospira, which achieved our price objectives, while Navistar and Constellation Brands were eliminated due to changes in the investment thesis. On the buy side, we initiated eight new positions; AES, Devon Energy, Ashland, Agrium, Checkpoint Systems, ADT, and Edison International.

Given the economic backdrop of slow growth and rising interest rates, we believe that future market gains will be dependent on earnings growth and that the meaningful

market multiple expansions prevalent through most of 2013 is over. We continue to position the Fund in cash generating, franchise companies selling at material discounts to our estimates of intrinsic value where management is returning cash to shareholders. We believe that these underappreciated franchises could become attractive takeover candidates given that the sluggish economic environment has hampered corporations’ ability to meaningfully grow their revenue base. Being flush with cash and with financing costs still attractive, these corporations may use acquisitions as an avenue to grow.

It appears that we are entering a new phase in the current economic recovery characterized, at some point, by less simulative monetary policy. As such, market interest rates will most likely trade towards a new, higher range. With higher interest rates, it is unlikely, in our opinion, to expect further multiple expansions, so increases in stock prices should be dependent on growth in earnings and cash flow. We continue to believe that our cash generating franchises represent excellent value and, given value creating catalysts, have the potential to achieve good returns moving forward.

Independence Capital Management, Inc.

Investment Adviser

Neuberger Berman Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Industrials		19.8	%
Technology		19.4	%
Financials		15.3	%
Consumer Discretionary		13.0	%
Utilities		9.2	%
Health Care		8.5	%
Consumer Staples		6.7	%
Energy		5.0	%
Materials		3.1	%
		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.

20

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Core Value Fund

The Penn Series Mid Core Value Fund returned 14.41% for the six-month period ending June 30, 2013, compared to the 16.10% return for its benchmark, the Russell Midcap Value Index.

Stock selection within the information technology and consumer staples sectors detracted from relative performance during the first quarter. Within information technology, shares of Broadcom Corporation, a global semiconductor company, fell in January following management’s announcement of disappointing guidance for the first quarter of 2013. Within consumer staples, shares of Bunge, a global agribusiness and food company, underperformed after the company reported fourth quarter results below consensus expectations.

Contributing to the Fund’s relative performance in the first quarter was strong stock selection within the materials and consumer discretionary sectors. Within materials, shares of Axiall, a global manufacturer of chemicals and building products, rose following the merger transaction and on the anticipation of a continued recovery in the U.S. housing market. Within consumer staples, shares of Tupperware Brands, a direct seller of products of multiple brands through an independent sales force worldwide, rose as strong organic sales growth resulted in better than expected fourth quarter results.

In April, defensive sectors of the market outperformed cyclical sectors due to global macroeconomic concerns. The Fund’s overweight in the materials and industrials sectors coupled with underweight allocations in the telecommunication services and utilities sectors detracted from relative performance. Stock selection within the financials sector also hurt the Fund’s relative performance. Shares of Raymond James Financial, a diversified financial services holding company engaged in investment and financial planning, investment banking, and asset management, fell after the company reported disappointing fiscal second quarter 2013 results that were below consensus expectations.

Contributing to relative performance in April was positive stock selection within the health care sector. Within health care, shares of Actavis, a generic and specialty pharmaceutical company, rose following the announcement of several positive generic opportunities in April.

The commentary provided above was from the former sub-adviser of the Fund, Lord, Abbett & Co. who was the manager of the Fund until May 1, 2013.

In the energy sector, the weakest sector in the benchmark, the Fund benefited from an underweight position. Security selection also enhanced results. The Fund had limited exposure to refining stocks, which underperformed as the spread (difference in price) between Brent crude and West Texas Intermediate crude collapsed.

Security selection and an underweight in financials contributed positively to relative performance. The Fund benefited from its underweight in real estate investment trusts (REITs). For some time, the team has believed that many REITs are overvalued. REITs, which have benefited from low interest rates, underperformed as rates began to rise.

The Fund’s stance in the health care sector boosted results. The Fund was overweight health care equipment companies, largely because the team expects utilization rates to increase as the U.S. economy improves and the Affordable Care Act is fully implemented. Many of these names performed well on improved earnings and utilization rates.

In materials, security selection in metals and mining hampered results. Though the team favors low-cost producers, even these names retreated as the global economy slowed and metals and commodities prices declined. A top detractor was gold miner Newmont Mining. The sharp drop in gold prices is likely to negatively impact Newmont Mining’s profitability and free cash flow.

The industrials sector was the source of a key detractor. ADT, the provider of home security systems, reported a drop in its core earnings, though second-quarter profits edged up and revenues increased slightly.

As of June 30, 2013, the team saw attractive opportunities in health care and industrials, reflected by overweight positions in these sectors relative to the benchmark. Fundamental analysis and valuation work have led to smaller relative weightings in financials, information technology, consumer discretionary, and materials stocks.

The commentary provided above was from the current sub-adviser of the Fund, American Century Investment Management who became the manager of the Fund on May 1, 2013.

Independence Capital Management, Inc.

Investment Adviser

American Century Investment Management

Investment Sub-Adviser

21

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Financials		24.5	%
Industrials		16.1	%
Health Care		13.6	%
Utilities		10.9	%
Energy		8.3	%
Technology		6.8	%
Consumer Discretionary		6.6	%
Consumer Staples		4.7	%
Materials & Processing		3.2	%
Miscellaneous		3.0	%
Telecommunications		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.

22

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

SMID Cap Growth Fund

The Penn Series SMID Cap Growth Fund returned 18.04% for the six-month period ending June 30, 2013, compared to the 15.82% return for its benchmark, the Russell 2500 Growth Index.

In the technology sector, shares of ExactTarget, a company with a leading cloud marketing platform, soared over 68% after it was announced that the company had entered a definitive agreement to be acquired by salesforce.com. As is typical of our process, we sold the position when the price reached levels very near our valuation target and the offer price. Another stellar performer was Angie’s List which increased over 121% after the company reported better than expected sales and earnings. Strong subscriber growth drove these results and is expected to continue as penetration in many existing markets remains very low. Increased membership levels are also a key to driving service provider growth. IT service provider Vantiv also contributed to strong performance. Vantiv, the largest single platform electronic payment processor, was formerly a part of Fifth Third Bancorp. The company is well positioned to grow as the usage of electronic payments accelerates and as they expand their service territory beyond the footprint of Fifth Third’s franchise. Since going public a year ago, Vantiv has expanded to the West Coast and has increased its market share with small and mid-sized merchants.

For most of 2013, there have been both negative and positive macro events impacting the industrial sector. For example, improvements in housing and manufacturing have been offset by weak demand in Europe and sequestration worries. Chart Industries posted a return in excess of 41% during the period. Chart is a manufacturer of highly engineered equipment used throughout the liquid gas supply chain for purification, liquefaction, distribution, and other energy-related applications. The industrialization of the emerging markets is causing increased global energy demand, with natural gas gaining share from other types of hydrocarbons. The safe and inexpensive transport of natural gas requires liquefaction infrastructure where Chart has the leading market share. Another strong performer for the period was Hertz Global Holdings. As rental car volumes in the U.S. continued to be strong, the recent acquisition of Dollar Thrifty Automotive has presented opportunities to increase pricing in the airport rental market and improve margins.

The main detractors for the portfolio were from stock specific issues in the health care sector as security selection has been a frustrating proposition thus far in 2013. In the most recent period, Auxillium Pharmaceuticals posted a weak quarter driven by enhanced competition for one of its therapies, while a weaker than expected market for testosterone replacement therapies, impacted sales of its other major drug, Testim.

During the quarter, we increased our allocation to various consumer related themes by initiating positions in select retailers, business services, and media holdings. Media in particular is an area we feel is poised for strong growth. New distribution platforms, reasonable content costs, industry consolidation and geographic expansion have, in our opinion, created a multitude of growth opportunities that are not fully reflected in current valuation levels.

We remain confident in our current positioning as it appears a number of market factors are changing in our favor. General investor demand for U.S. equities is on the rise as funds flow out of bonds and into stocks. While the initial demand appeared skewed towards passive strategies and bond proxies, it is our belief that the benefits of active equity management will become too powerful to ignore. Correlations have declined and as monetary stimulus is gradually removed, increasing attention will be paid to company specific fundamentals.

Independence Capital Management, Inc.

Investment Adviser

Wells Capital Management

Investment Sub-Adviser

23

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Industrials		27.8	%
Technology		23.1	%
Consumer Discretionary		17.8	%
Healthcare		14.2	%
Financials		5.5	%
Consumer Staples		4.4	%
Energy		2.9	%
Materials		2.8	%
Telecommunications		1.5	%
		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.

24

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

SMID Cap Value Fund

The Penn Series SMID Cap Value Fund returned 17.30% for the six-month period ending June 30, 2013, compared to the 15.10% return for its benchmark, the Russell 2500 Value Index.

During the first six months of 2013, the Fund rose in absolute terms and outperformed its benchmark. Strong stock selection was a key driver of the gains and was spread broadly across sectors.

Financials were a key contributor in the period, helped by the Fund’s regional bank holdings, which should benefit from higher interest rates, and our underweight in Real Estate Investment Trusts (REITs). The Fund also benefitted from merger and acquisition activity as financial buyers and strategic investors began to focus on the strong cash returns generated by a number of our holdings.

Technology stocks were standouts in the period as improving industry conditions helped holdings such as Micron and SunEdison. Other top individual contributors were: Thor Industries, Popular and Unum Group.

The Fund was negatively affected by stock selection in the industrial resources and capital equipment sectors. Underperformance generally came from holdings with greater global economic exposure as well as from those vulnerable to higher interest rates. Construction equipment supplier Terex experienced a stock price decline over concerns about weakness in Europe and emerging markets. Cliffs Natural Resources, a producer of iron ore, declined due to falling commodity prices and the announcement of a new capital spending plan that required a dividend cut and equity issuance. We have exited our position in Cliffs. Other detractors were AU Optronics, Royal Caribbean and ANN.

Our proprietary research has uncovered holdings where company level catalysts are driving improvements. The quality of these companies is evident in stronger balance sheets and robust cash flows. We have also added an array of undervalued companies that are industry leaders though relatively unknown in the marketplace. With these additions, we believe the Fund has an attractive mix of compelling valuation and strong quality.

Independence Capital Management, Inc.

Investment Adviser

AllianceBernstein

Investment Sub-Adviser

Portfolio Composition as of 6/30/13

	Percent of Total  Investments1
Financials		25.8	%
Consumer Discretionary		19.1	%
Technology		18.9	%
Industrials		10.9	%
Energy		7.6	%
Materials		7.4	%
Utilities		5.0	%
Healthcare		4.3	%
Consumer Staples		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.

25

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Growth Fund

The Penn Series Small Cap Growth Fund returned 8.91% for the six-month period ending June 30, 2013, compared to the 17.44% return for its benchmark, the Russell 2000 Growth Index.

Stock selection in the health care, materials and information technology sectors were the primary detractors from relative performance during the first quarter. The Fund benefited from stock selection in the energy and financials sectors.

Goodrich Petroleum posted strong performance during the quarter. It advanced on news of its favorable Tuscaloosa Marine Shale well results, which reignited interest in the company. WisdomTree Investments performed well as its net asset flows accelerated.

Software company BroadSoft underperformed as it delivered disappointing first quarter earnings estimates that raised questions about the sustainability of its historic growth rates. Oil and gas company Quicksilver Resources underperformed during the first quarter as the market was disappointed that the company did not monetize certain assets and partnerships that could have provided liquidity to exploit higher-margin emerging oil projects that the company has targeted.

Shares of Polypore International underperformed during the quarter following a tepid near-term outlook for the company’s lithium-ion business. Walter Energy, provider of low cost metallurgical coal lagged during the quarter. Despite the underlying strength in metallurgical coal pricing, sentiment on the name deteriorated towards the end of the quarter.

The commentary provided above was from the former sub-adviser of the Fund, Allianz Global Investors who was the manager of the Fund until May 1, 2013.

Our stock selection in the health care sector detracted from relative performance during the May and June. Two of our top detractors were Ironwood Pharmaceutical and athenahealth. Ironwood’s main product, Linzess, treats pain and symptoms of chronic constipation and we believe it could be a multibillion dollar drug over time. However, the drug is targeted toward the primary care physician market. To reach this broad, fragmented market, the company has had to increase spending to increase awareness of the product. The increased spending raised concerns the company would have to raise more capital,

and this negatively impacted the stock during the period. We still like the long-term potential of the drug, however.

While athenahealth fell during the period we continue to like the long-term outlook for the company. Athenahealth provides cloud-based business services for physician practices. We think its products have the potential to remove significant inefficiency from the health care system. Additionally, we believe the company’s best-in-class ability to exchange information and help physicians navigate complex changes to the regulatory landscape will add meaningfully to its sales.

Two consumer discretionary companies were among our top contributors to performance during the two-month period. Our top contributor was Carter Holdings. The company has a dominant market share in baby clothing, and is a trusted brand for new parents. We believe there is great growth potential as Carter further monetizes its brand by opening its own stores. We also think there is more stability to Carter’s business than most clothing companies because there is less fashion risk in infant clothing. Wolverine Worldwide was also a top contributor. We like the company for its ability to acquire and improve the management of brands, and then increase the sales of those brands through Wolverine’s strong global distribution network. The stock’s performance has been driven in recent months by the company’s acquisition of several new brands including Sperry. Sperry went through a period of disinvestment, and after the acquisition, Wolverine is reviving the brand and opening proprietary Sperry stores.

The commentary provided above was from the current sub-adviser of the Fund, Janus Capital who became the manager of the Fund on May 1, 2013.

Independence Capital Management, Inc.

Investment Adviser

Janus Capital

Investment Sub-Adviser

26

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total  Investments1
Technology		32.1	%
Industrials		23.0	%
Consumer Discretionary		18.3	%
Healthcare		11.4	%
Financials		7.7	%
Energy		6.6	%
Consumer Staples		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.

27

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Value Fund

The Penn Series Small Cap Value Fund returned 15.88% for the six-month period ending June 30, 2013, compared to the 14.39% return for its benchmark, the Russell 2000 Value Index.

During the first quarter of 2013, our investments in the information technology sector contributed to returns and, specifically, Monotype Imaging Holdings was a top performer. Shares of Monotype Imaging, a provider of text imaging solutions worldwide, were boosted during the quarter as the company announced stronger-than-expected fourth quarter 2012 earnings, driven by accretion from the recent acquisition of Bitstream’s font business. Within the materials sector, PolyOne was a top overall contributor to performance. Strong year-over-year revenue growth driven by contribution from acquired company ColorMatrix, a leader in liquid colorants, fueled a beat of consensus estimates for fourth quarter 2012, driving its shares higher.

On the negative side, our investments in the consumer discretionary sector detracted from relative returns during the first quarter, and specifically, Chico’s, was a large detractor. Its shares sold off along with the broader sector, driven by investor concerns surrounding the payroll tax cuts and further by seasonally weak spring sales. Within the financials sector as well as at the portfolio level, Texas Capital Bancshares was a top detracting stock. After a strong run, the stock sold off in late January 2013 as investors became concerned about the sustainability of growth in its mortgage warehouse lending business. Later in the quarter, the company indicated that the Office of the Comptroller of the Currency was reconsidering the capital treatment of its mortgage warehouse business. We continue to like Texas Capital’s evolving market share position in the faster-growing Texas economy.

During the second quarter of 2013, MarketAxess Holdings, one of the leading providers of electronic trading for the corporate bond market, was a top contributor to returns. During the quarter, investors reacted positively as the company gained market share and new business, as many large cap brokers reduced their fixed income inventory due to regulatory reasons. Within the energy sector, Lufkin Industries was a top contributor to returns. Shares of this global supplier of artificial lift technology to the oil and gas industry spiked after General Electric Co. announced it would acquire the company for $3.3 billion.

For the second quarter, Newport was a top detractor from returns. Shares of Newport, a supplier of advanced technology products used in a variety of industries, underperformed following the company’s first quarter earnings that showed lower than expected sales in its life sciences and defense segments. Within the consumer discretionary sector, Meritage Homes, a designer and builder of single-family homes, was a top detractor from returns during the second quarter. Shares of Meritage Homes fell following the Federal Reserve Board’s announcement of the potential “tapering” which drove interest rates higher and hurt housing related stocks.

As we enter the third quarter, we continue to be positive on the U.S. equity market. Despite a strong first half of 2013, we believe the case for investing in U.S. equities remains compelling. Signs of improving U.S. economic growth remain intact, supported by a continued recovery in the housing market and consumer confidence. However, some headwinds remain given market concerns about the Fed tapering asset purchases and rising rates, fiscal policy’s drag on growth and global weakness. We believe it is important to recognize that rising rates and advancing equity markets are not mutually exclusive. Equities have the potential to continue to rise in an increasing rate environment, driven by improving U.S. economic growth and given the absolute level of rates remains low by historical standards.

Independence Capital Management, Inc.

Investment Adviser

Goldman Sachs Asset Management

Investment Sub-Adviser

28

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Financials		37.5	%
Industrials		14.0	%
Technology		11.2	%
Consumer Discretionary		10.6	%
Energy		6.8	%
Materials		6.4	%
Utilities		6.0	%
Healthcare		4.2	%
Consumer Staples		2.7	%
Telecommunications		0.6	%
		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.

29

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Index Fund

The Penn Series Small Cap Index Fund returned 15.63% for the six-month period ending June 30, 2013, compared to the 15.86% return for its benchmark, the Russell 2000 Index.

U.S. equity returns were as broad as they were strong in the first quarter, with more than 85% of the names in the S&P 500 generating positive returns. Fully one third of the S&P membership enjoyed three-month gains of at least 15%. Similar prosperity extended across lower capitalization tiers. The S&P Midcap 400 Index^TM climbed 4.8% in March and 13.5% for the full first quarter, lifting medium-capitalization issues well into record territory. Smaller stocks were on a similar wavelength, as the Russell 2000^® Index ramped 5.1% in March and 13.2% for the quarter as a whole. One mild cautionary note: while the Russell 2000 did trade in record territory during March and closed close to those all-time highs, its actual peak during the first quarter occurred on March 15, just prior to the announcement of plans to tax depositors in Cyprus.

Although value-oriented portfolios continued to outpace growth-focused holdings during the first quarter, the outperformance was far from dramatic. Healthy returns for financials certainly helped the value cause, while consumer names provided plenty of lift on the growth side. But continued declines in the shares of heavily weighted Apple limited upside in growth portfolios and tipped the scales in favor of value for large-cap indexes. But without the large influence of Apple, roles were reversed in the small cap arena. Strong returns for health care issues boosted the Russell 2000^® Growth Index to a 5.1% March gain and a 13.2% advance for the first quarter as a whole. The Russell 2000^® Value Index could not quite keep up, adding 4.2% for March and finishing the first quarter with an 11.6% return.

Although the second quarter of 2013 confronted investors with numerous new sources of volatility, most notably a less straightforward monetary mantra that seemed unexpectedly hawkish relative to limited inflation and restrained global growth, the U.S. equity markets demonstrated an impressive resilience throughout the period.

Away from the largest equity issuers, share performance turned choppier in April when modest doubts arose as to the resilience of U.S. economic prospects. But second-tier stocks sought to rebuild their relative performance during May and June, and smaller names even managed to recoup in full the relative ground that they had lost earlier in the

second quarter. The Russell 2000^® Index only lost 0.5% in June, leaving it with a solid 3.1% return over the latest three months. Bolstered by strong appreciation across consumer-related issues, its year-to-date return of 15.86% represents its best first-half result since 2003.

Growth-oriented styles have found outperformance difficult in 2013, as financial stocks have traded higher in anticipation of more normal interest rates and technology investors have been served well by a value bias. Smaller financial names have underperformed their larger peers, and a value advantage for technology was not evident in second-tier stocks. While the 0.6% June decline in the Russell 2000 Growth Index was slightly greater than the 0.4% loss for the Russell 2000 Value Index, the former still achieved a 3.7% return for the second quarter as a whole, while the latter only added 2.5%. Thus far in 2013, Russell 2000 Growth has climbed 17.4%, while Russell 2000 Value is 300 basis points behind with a 14.4% year-to-date return.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Portfolio Composition as of 6/30/13

	Percent of Total  Investments1
Financials		23.1	%
Technology		17.4	%
Consumer Discretionary		14.4	%
Industrials		14.3	%
Healthcare		12.2	%
Energy		5.6	%
Materials		5.0	%
Consumer Staples		3.9	%
Utilities		3.3	%
Telecommunications		0.8	%
		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.

30

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Developed International Index Fund

The Penn Series Developed International Index Fund returned 3.15% for the six-month period ending June 30, 2013, compared to the 4.47% return for its benchmark, the MSCI EAFE Index.

Equity markets outside the U.S. zoomed out of the gate in early 2013, benefiting on the one hand from relief that fiscal constraints in the U.S. would not overwhelm consumer demand, and on the other from mounting confidence that the European Central Bank had more than enough ammunition to keep regional financial conditions stable. Only at the end of January, after the euro had enjoyed six solid months of steady appreciation, did investors begin to question whether the buoyant currency might act as an unwelcome headwind to already muted economic activity. The MSCI EAFE^® Index of developed market equities overcame the European dislocations associated with bank closures in Cyprus to achieve a 0.8% return during March on an unhedged basis, and for the first quarter as a whole, EAFE notched a solid 5.1% advance.

Prominent among the winners was MSCI Japan, which jumped 4.9% in March and finished the first quarter with an 11.6% gain on an unhedged basis. The monthly figure was tops among all EAFE constituents, and the quarterly result was all the more remarkable given a roughly 9% decline in the Japanese yen, but the promise of aggressive action to reverse deflation unleashed a powerful and consistent rally in equities.

Also demonstrating March resilience were MSCI Belgium, which added 2.4% for the month, and MSCI Switzerland, which gained 1.6%. Shares of brewer Anheuser-Busch InBev continued to flatter Belgian averages, while stock in Swiss food and drug makers benefited similarly from the appeal of recession-resistant growth.

While weak banking shares in Europe made the financial sector one of only three in EAFE to lose ground during March, the energy and materials sectors were the more conspicuous decliners for both March and the first quarter as a whole. Concern about Asian demand growth and ample inventories of raw materials kept resource-related names on the defensive through the winter, even though they participated nicely during the initial equity rally in January.

The clear sector winners for the first quarter were health care and consumer staples, which investors viewed as twin havens from uncertain prospects for corporate profitability

and economic growth. Steady demand for food, household products, and pharmaceuticals carried considerable appeal in a world where abnormally low interest rates and uncertain economic prospects obscured the outlook for more cyclical businesses.

The unrelenting combination of currency struggles and a foggy growth outlook ultimately took a grim toll on equity investments outside the U.S. during the second quarter. Only in Japan, where upcoming elections in July may provide fresh impetus to the economic initiatives of Prime Minister Shinzo Abe, did investors manage to find modest shelter from the international storms that squalled through equity markets towards the end of the first half. The only market that joined MSCI Japan in achievement of a positive June return in local currency terms was the often defensive MSCI Malaysia.

Stress in the European financial sector has contributed a key difference between EAFE and U.S. performance in the current year. In spite of solid gains for Japanese banking shares, EAFE financials slipped 4.5% during June and 1.2% for the second quarter, the latter result representing a substantial shortfall relative to their counterparts in the U.S., where policy prospects and less encumbered balance sheets seem to be boosting sentiment towards banks. The more conspicuous EAFE laggards in 2013 have been the energy and materials sectors, which have suffered amid prospects for moderation in Chinese expansion. Amid slumping copper and gold prices, metals names have stayed under heavy pressure.

Independence Capital Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

31

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Japan		22.4	%
United Kingdom		19.1	%
Switzerland		9.8	%
France		9.0	%
Germany		8.6	%
Australia		7.9	%
Netherlands		4.8	%
Sweden		3.2	%
Hong Kong		2.9	%
Spain		2.9	%
Italy		1.8	%
Singapore		1.6	%
Denmark		1.1	%
Belgium		1.1	%
Finland		0.8	%
Norway		0.7	%
Ireland		0.6	%
Israel		0.5	%
Luxembourg		0.3	%
Austria		0.3	%
Portugal		0.2	%
Bermuda		0.1	%
China		0.1	%
Guernsey		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.

32

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

International Equity Fund

The Penn Series International Equity Fund returned –0.33% for the six-month period ending June 30, 2013, compared to the 4.47% return for its benchmark, the MSCI EAFE Index.

The first half of 2013 has seen turbulence in the markets. We think this turbulence has been driven by changes in outlook for the world’s largest economies, and where they stand in the economic cycle. This fluctuating outlook combined with the specter of higher developed market interest rates has led to volatility across the fixed income and equity markets, as well as sharp falls in a number of emerging market currencies

Despite market turbulence, we do not believe there have been any significant changes that would negatively affect the quality growth companies we hold at the operating level. In the near term, valuations of companies with substantial exposure to weakening emerging market currencies should see income translation diluting reported earnings that will likely result in lower share prices. However, when the opportunities are viewed in a five-to-ten-year context, the near term sell-off has produced a number of investment opportunities, in our view. As the markets sell off, we sense more high quality investment opportunities are being created rather than destroyed.

We think the powerful long term secular drivers from growing consumption from the emerging markets will continue to support a number of growth opportunities across the globe, in particular within consumer staples and retail banking.

The Energy sector was a leading contributor to relative performance. Our energy holdings, as well as our underweight to the sector, contributed to performance during the first six months of the year. The Fund’s underweight exposure to utilities helped performance during the period, as the sector underperformed the benchmark as a whole.

The highly cyclical materials sector detracted from performance for the period. While the Fund’s underweight was positive, it was not enough to offset the negative impact from our selection of stocks within the space.

The Fund’s selection of financials names, as well as its underweight to the sector, hurt performance during the six-month period.

Valeant Pharmaceuticals, Core Laboratories, Persimmon, Domino’s Pizza Group and Rolls Royce Holdings helped performance during the period on an absolute basis. And on a relative basis, Core Laboratories, Valeant Pharmaceuticals, Persimmon, BHP Billiton and Domino’s Pizza Group contributed to performance during the period.

During the period, Newcrest Mining, Fresnillo, Goldcorp, Standard Chartered and HDFC Bank detracted from absolute performance during the period, while on a relative basis, Newcrest Mining, Fresnillo, Goldcorp, HDFC Bank and Standard Chartered hurt performance during the period.

Independence Capital Management, Inc.

Investment Adviser

Vontobel Asset Management

Investment Sub-Adviser

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
United Kingdom		23.9	%
Switzerland		16.5	%
India		12.7	%
France		8.9	%
Netherlands		8.2	%
Canada		6.0	%
United States		5.3	%
Hong Kong		3.4	%
Denmark		3.1	%
Ireland		3.0	%
Australia		2.6	%
Germany		2.4	%
Japan		1.3	%
Mexico		1.0	%
Belgium		1.0	%
Italy		0.7	%
		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.

33

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Emerging Markets Equity Fund

The Penn Series Emerging Markets Equity Fund returned –6.07% for the six-month period ending June 30, 2013, compared to its benchmarks the MSCI Emerging Markets Index’s return of –9.40%.

During the period in review, emerging market (EM) equities continued to face challenges as the largest economies are slowing and investors are adjusting their expectations to a leadership churn. Downward earnings revisions for many EM companies — particularly in the energy and materials sectors — have also contributed to negative investor sentiment, as have signals from the Federal Reserve that quantitative easing may be tapered in the future. With overall EM growth likely to moderate to 4.5%, we have positioned the Fund with overweight allocations to countries with higher-than-average projected growth as well as positive catalysts supporting equity returns. Such catalysts include constructive political regimes supporting reform agendas, manageable debt levels and the capacity for healthy future credit expansion coming from a low base, competitive currencies, and resilient domestic demand.

For the reporting period, emerging markets heavily underperformed both the developed markets and the frontier markets (as measured by the MSCI Emerging Markets Index, MSCI World Index and MSCI Frontier Markets Index, respectively), which have outperformed, showing their diversifying nature. In emerging Asia, the Philippines and Indonesia were the best-performing markets, demonstrating the leadership churn in emerging markets, whereby the mid-tier markets are leading performance while the largest economies are slowing down, creating pressure on the Index overall. China and Korea were the largest underperforming Asian markets. In emerging Europe, Middle East and Africa (EMEA), which declined during the period, Hungary was the outlier with positive performance. The Czech Republic, Egypt and South Africa were the biggest laggards within EMEA. In Latin America, Mexico performed relatively better than its neighbors. Peru continued to be the worst-performing market both in the region and in all of the emerging markets. Colombia and Brazil, where growth recovery has been disappointing, also underperformed the Latin America region.

Both the Fund’s country allocation and stock selection processes equally contributed to the preservation of capital during the period.

Within country allocation, the Fund’s Brazil underweight along with the Philippines overweight were the top contributors. Other top contributors were stock selection in China, Brazil, South Africa and India. Within Brazil, top contributors were an underweight (now zero weight) to a mining company and a long-held overweight to a food company. The portfolio’s overweight to Thailand along with stock selection in Korea also contributed. Slightly detracting from returns was the underweight to Taiwan and stock selection in Indonesia, which was partially offset by an overweight allocation to the country.

From a sector perspective, our stock selection of companies within financials, materials, industrials and consumer discretionary contributed most positively to absolute returns. Also contributing was the portfolio’s underweight allocation to companies in the materials sector as well as an overweight to and stock selection in the consumer staples and health care sectors. There were no meaningful sector-level detractors.

We remain overweight the Philippines, Indonesia, Thailand, Poland and India in the portfolio. The portfolio is weighted just slightly below the benchmark weight in South Korea, which continues to be the largest absolute weight in the portfolio. An important consideration affecting our country weights is the rate of credit expansion over the past three years. We generally favor countries where credit expansion has not kept pace with gross domestic product (GDP) growth, and conversely, have concerns (and stay underweight) countries where credit growth has exceeded GDP growth by 5% a year for three years.

Independence Capital Management, Inc.

Investment Adviser

Morgan Stanley Investment Management

Investment Sub-Adviser

34

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
South Korea		13.1	%
India		9.1	%
China		7.9	%
Brazil		7.3	%
Thailand		7.2	%
Taiwan		7.1	%
Mexico		5.7	%
Indonesia		5.2	%
Phillippines		5.0	%
Malaysia		3.5	%
Turkey		3.3	%
Hong Kong		3.2	%
Russia		2.8	%
Poland		2.8	%
South Africa		2.6	%
United States		2.0	%
Chile		1.8	%
Switzerland		1.6	%
United Kingdom		1.5	%
Portugal		1.2	%
Peru		1.1	%
Hungary		0.8	%
Japan		0.8	%
Panama		0.7	%
Netherlands		0.7	%
Columbia		0.6	%
Autria		0.6	%
Cyprus		0.4	%
Spain		0.3	%
Qatar		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.

35

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Real Estate Securities Fund

The Penn Series Real Estate Securities Fund returned 6.11% for the six-month period ending June 30, 2013, compared to the 6.49% return for its benchmark, the FTSE NAREIT Equity REIT Index.

U.S. real estate securities had solid gains in the first half of 2013, helped by improving demand and very little new supply in most property sectors. However, late in the period REITs declined sharply along with other income-oriented assets, as Treasury yields rose in response to news that the Federal Reserve might taper its bond purchasing program relatively soon. Despite the rise in yields, REITs maintained generally strong balance sheets, with low-rate debt typically structured at fixed, multi-year terms.

Commercial real estate benefited broadly from signs of a housing-led economic recovery. Property sectors with short lease terms and cyclically sensitive businesses generally fared well in this environment, including hotels and self storage. The residential market also provided a boost to shopping center and industrial REITs given their ties to local economic growth and housing-related businesses. By contrast, the apartment sector was hindered by concerns that rising home purchases, along with accelerating multifamily supply, would have a negative impact on cash flow growth.

Health care REITs continued to actively acquire properties, although the premium valuations placed on these properties limited their potential earnings benefit. Markets priced in a particularly favorable outlook for senior living centers, which historically have a strong correlation to housing and employment.

The office sector saw some aggressive bidding on New York properties. An investor took a 40% stake in the GM building, making it the most valuable office building in the U.S., with an estimated worth of $3.4 billion. Late in the quarter, an unidentified bidder offered to buy the Empire State Building for $2.1 billion, the second takeover proposal reported before a planned initial public offering that would include the building. These deals reflected a broader trend of rising real estate investment demand from sources eager for yield and inflation protection.

The Fund had a positive total return in the period, although it modestly underperformed its benchmark. Relative returns were hindered by stock selection in the regional mall, office and diversified sectors. Within the diversified sector, our position in Digital Realty Trust detracted, as it

struggled amid concerns regarding high capital expenditures and the lease-negotiating power of its large tenants. Our underweights in health care REITs and the free-standing retail sector also hampered relative performance.

Favorable stock selection in the apartment sector aided performance. In the hotel sector, returns were helped by our overweight in Strategic Hotels & Resorts, which rallied on speculation that the company might be acquired. Our overweight in shopping center owners was also beneficial.

We expect the Federal Reserve to moderate quantitative easing once stronger and more sustained economic growth is observed, which we expect in late 2013. In this scenario, we believe Treasury yields are likely to be higher in 2014, although we would emphasize that the path to higher interest rates runs through an improving economy. In our view, better growth could have a greater impact on investor sentiment than a move away from historically low rates.

Our focus is on REITs that we believe have the potential to outperform in an environment of greater economic growth. From a sector standpoint, we like the shopping center, industrial, self-storage and hotel sectors. We have sold some suburban office owners, as, in our view, the group’s valuation advantage has narrowed relative to central business district office companies. We believe that West Coast offices still offer strong fundamentals, although we are monitoring these companies for signs of slowing growth in rents and absorption.

Independence Capital Management, Inc.

Investment Adviser

Cohen & Steers Capital Management

Investment Sub-Adviser

36

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 6/30/13

	Percent of Total Investments1
Regional Malls		17.1	%
Apartments		14.7	%
Healthcare		11.6	%
Diversified		10.4	%
Office Property		9.6	%
Strip Centers		9.6	%
Storage & Warehousing		7.0	%
Hotels and Resorts		6.4	%
Industrial		5.7	%
Building & Real Estate		4.6	%
Manufactured Homes		1.8	%
Lodging		1.5	%
		100.0	%

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

37

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Aggressive Allocation Fund

The Penn Series Aggressive Allocation Fund returned 8.13% for the six-month period ending June 30, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 14.06% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.44% for the same time period.

The Aggressive Allocation Fund is comprised of a target allocation of 95% equity funds and 5% fixed income funds. The equity allocation of the Fund is comprised of domestic equity funds ranging from large capitalization funds to small capitalization funds as well as developed international and emerging markets equity funds and the fixed income portion is primarily allocated to intermediate-term bond funds.

At the broad asset class level, the Aggressive Allocation Fund’s equity allocation outperformed its broad equity benchmark, the Russell 3000 Index for the one-year period. Weighing on the Fund’s performance versus its benchmark was the Fund’s underlying fund allocation within the non-U.S. equities as non-U.S. equities significantly underperformed domestic equities.

The Fund’s fixed income allocation performed in line with the Barclays Capital U.S. Aggregate Bond Index for the one-year time period.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/13

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	%

38

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderately Aggressive Allocation Fund

The Penn Series Moderately Aggressive Allocation Fund returned 6.92% for the six-month period ending June 30, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 14.06% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.44% for the same time period.

The Moderately Aggressive Allocation Fund is comprised of a target allocation of 80% equity funds and 20% fixed income funds. The equity allocation of the Fund is comprised of domestic equity funds ranging from large capitalization funds to small capitalization funds as well as developed international and emerging markets equity funds and the fixed income portion is primarily allocated to intermediate-term and short-term bond funds.

At the broad asset class level, the Moderately Aggressive Allocation Fund’s equity allocation underperformed its broad equity benchmark, the Russell 3000 Index for the six-month period. Weighing on the Fund’s performance versus its benchmark was the Fund’s underlying fund allocation within the non-U.S. equities as non-U.S. equities significantly underperformed domestic equities.

The Fund’s fixed income allocation slightly outperformed the Barclays Capital U.S. Aggregate Bond Index for the six-month time period. Contributing to the fixed income allocation’s performance was its underlying exposure to high yield fixed income.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/13

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	%

39

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderate Allocation Fund

The Penn Series Moderate Allocation Fund returned 4.92% for the six-month period ending June 30, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 14.06% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.44% for the same time period.

The Moderate Allocation Fund is comprised of a target allocation of 60% equity funds and 40% fixed income funds. The equity allocation of the Fund is comprised of domestic equity funds ranging from large capitalization funds to small capitalization funds as well as developed international and emerging markets equity funds and the fixed income portion is primarily allocated to intermediate-term and short-term bond funds.

At the broad asset class level, the Moderate Allocation Fund’s equity allocation underperformed its broad equity benchmark, the Russell 3000 Index for the six-month period. Weighing on the Fund’s performance versus its benchmark was the Fund’s underlying fund allocation within the non-U.S. equities as non-U.S. equities significantly underperformed domestic equities.

At the broad asset class level, the Conservative Allocation Fund’s fixed income allocation slightly outperformed the Barclays Capital U.S. Aggregate Bond Index for the year-to-date time period. Aiding the Fund’s fixed income allocation performance was its cash, short-term bond and high yield bond allocations of the underlying individual fixed income funds versus the broad market Index.

The Fund’s fixed income allocation slightly outperformed the Barclays Capital U.S. Aggregate Bond Index for the year-to-date time period. Aiding the Fund’s fixed income allocation performance was its cash, short-term bond and high yield bond allocations of the underlying individual fixed income funds versus the broad market Index.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/13

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	%

40

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderately Conservative Allocation Fund

The Penn Series Moderately Conservative Allocation Fund returned 3.20% for the six-month period ending June 30, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 14.06% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.44% for the same time period.

The Moderately Conservative Allocation Fund is comprised of a target allocation of 40% equity funds and 60% fixed income funds. The equity allocation of the Fund is consists of domestic equity funds comprised of large capitalization and mid capitalization funds as well as developed international equity funds and the fixed income portion is mostly allocated to intermediate-term and short-term bond funds.

At the broad asset class level, the Moderately Conservative Allocation Fund’s fixed income allocation slightly outperformed the Barclays Capital U.S. Aggregate Bond Index for the year-to-date time period. Aiding the Fund’s fixed income allocation performance was its cash, short-term bond and high yield bond allocations of the underlying individual fixed income funds versus the broad market Index.

The Fund’s equity allocation performed in line with its broad equity benchmark, the Russell 3000 Index. The Fund’s underlying fund allocations within the large cap value space aided in its equity performance. Detracting from the Fund’s equity performance was the allocation to non-U.S. equity as this asset class underperformed U.S. equities.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/13

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	%

41

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Conservative Allocation Fund

The Penn Series Conservative Allocation Fund returned 1.02% for the six-month period ending June 30, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 14.06% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.44% for the same time period.

The Conservative Allocation Fund is comprised of a target allocation of 80% fixed income funds and a target allocation of 20% in domestic and international equity funds. The fixed income funds predominately consist of short-term and intermediate-term bonds and the equity fund allocations consist of mostly large capitalization funds with a small exposure to developed international equity funds.

At the broad asset class level, the Conservative Allocation Fund’s fixed income allocation slightly outperformed the Barclays Capital U.S. Aggregate Bond Index for the year-to-date time period. Aiding the Fund’s fixed income allocation performance was its cash, short-term bond and high yield bond allocations of the underlying individual fixed income funds versus the broad market Index.

The Fund’s equity allocation performed in line with its broad equity benchmark, the Russell 3000 Index. The Fund’s underlying fund allocations within the large cap value space aided in its equity performance. Detracting from the Fund’s equity performance was the allocation to non-U.S. equity as this asset class underperformed U.S. equities.

The Fund is continually reviewed to help ensure that it remains consistent with its investment objective by making adjustments, when necessary, of specific sub-accounts within an asset class as well as automatic rebalancing of the Fund on a quarterly basis.

Independence Capital Management, Inc.

Investment Adviser

Asset Allocation Target as of 6/30/13

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	%

42

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, 2013 and held through June 30, 2013. 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, 2013 to June 30, 2013

Expense Table

	Beginning Value January 1, 2013		Ending Value June 30, 2013		Annualized Expense Ratio		Expenses Paid During Period*
Money Market Fund
Actual		$1,000.00		$1,000.10		0.19%		$0.94
Hypothetical		$1,000.00		$1,023.84		0.19%		$0.95
Limited Maturity Bond Fund
Actual		$1,000.00		$996.50		0.57%		$2.82
Hypothetical		$1,000.00		$1,021.93		0.57%		$2.86

43

Important Information about Fund Expenses

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

	Beginning Value January 1, 2013		Ending Value June 30, 2013		Annualized Expense Ratio		Expenses Paid During Period*
Quality Bond Fund
Actual		$1,000.00		$969.60		0.56%		$2.73
Hypothetical		$1,000.00		$1,021.98		0.56%		$2.81
High Yield Bond Fund
Actual		$1,000.00		$1,017.00		0.81%		$4.05
Hypothetical		$1,000.00		$1,020.73		0.81%		$4.07
Flexibly Managed Fund
Actual		$1,000.00		$1,101.00		0.83%		$4.32
Hypothetical		$1,000.00		$1,020.63		0.83%		$4.17
Balanced Fund
Actual		$1,000.00		$1,066.70		0.20%		$1.02
Hypothetical		$1,000.00		$1,023.79		0.20%		$1.00
Large Growth Stock Fund
Actual		$1,000.00		$1,110.30		0.90%		$4.71
Hypothetical		$1,000.00		$1,020.28		0.90%		$4.52
Large Cap Growth Fund
Actual		$1,000.00		$1,053.30		0.90%		$4.58
Hypothetical		$1,000.00		$1,020.28		0.90%		$4.52
Large Core Growth Fund
Actual		$1,000.00		$1,109.40		0.88%		$4.60
Hypothetical		$1,000.00		$1,020.38		0.88%		$4.42
Large Cap Value Fund
Actual		$1,000.00		$1,139.90		0.87%		$4.62
Hypothetical		$1,000.00		$1,020.43		0.87%		$4.37
Large Core Value Fund
Actual		$1,000.00		$1,137.70		0.87%		$4.61
Hypothetical		$1,000.00		$1,020.43		0.87%		$4.37
Index 500 Fund
Actual		$1,000.00		$1,135.50		0.33%		$1.75
Hypothetical		$1,000.00		$1,023.14		0.33%		$1.66
Mid Cap Growth Fund
Actual		$1,000.00		$1,125.80		1.00%		$5.27
Hypothetical		$1,000.00		$1,019.77		1.00%		$5.02
Mid Cap Value Fund
Actual		$1,000.00		$1,176.60		0.82%		$4.43
Hypothetical		$1,000.00		$1,020.68		0.82%		$4.12
Mid Core Value Fund
Actual		$1,000.00		$1,144.10		1.07%		$5.69
Hypothetical		$1,000.00		$1,019.42		1.07%		$5.37
SMID Cap Growth Fund
Actual		$1,000.00		$1,180.40		1.05%		$5.68
Hypothetical		$1,000.00		$1,019.52		1.05%		$5.27

44

Important Information about Fund Expenses

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

	Beginning Value January 1, 2013		Ending Value June 30, 2013		Annualized Expense Ratio		Expenses Paid During Period*
SMID Cap Value Fund
Actual		$1,000.00		$1,173.00		1.14%		$6.14
Hypothetical		$1,000.00		$1,019.07		1.14%		$5.72
Small Cap Growth Fund
Actual		$1,000.00		$1,089.10		1.09%		$5.65
Hypothetical		$1,000.00		$1,019.32		1.09%		$5.47
Small Cap Value Fund
Actual		$1,000.00		$1,158.80		1.14%		$6.10
Hypothetical		$1,000.00		$1,019.07		1.14%		$5.72
Small Cap Index Fund
Actual		$1,000.00		$1,156.30		0.55%		$2.94
Hypothetical		$1,000.00		$1,022.03		0.55%		$2.76
Developed International Index Fund
Actual		$1,000.00		$1,031.50		0.59%		$2.97
Hypothetical		$1,000.00		$1,021.83		0.59%		$2.96
International Equity Fund
Actual		$1,000.00		$996.70		1.17%		$5.79
Hypothetical		$1,000.00		$1,018.92		1.17%		$5.87
Emerging Markets Equity Fund
Actual		$1,000.00		$939.30		1.68%		$8.08
Hypothetical		$1,000.00		$1,016.36		1.68%		$8.43
Real Estate Securities Fund
Actual		$1,000.00		$1,061.20		0.99%		$5.06
Hypothetical		$1,000.00		$1,019.82		0.99%		$4.97
Aggressive Allocation Fund
Actual		$1,000.00		$1,081.30		0.33%		$1.70
Hypothetical		$1,000.00		$1,023.14		0.33%		$1.66
Moderately Aggressive Allocation Fund
Actual		$1,000.00		$1,069.20		0.31%		$1.59
Hypothetical		$1,000.00		$1,023.24		0.31%		$1.56
Moderate Allocation Fund
Actual		$1,000.00		$1,049.20		0.31%		$1.58
Hypothetical		$1,000.00		$1,023.24		0.31%		$1.56
Moderately Conservative Allocation Fund
Actual		$1,000.00		$1,032.00		0.32%		$1.61
Hypothetical		$1,000.00		$1,023.19		0.32%		$1.61
Conservative Allocation Fund
Actual		$1,000.00		$1,010.20		0.33%		$1.64
Hypothetical		$1,000.00		$1,023.14		0.33%		$1.66

45

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Money Market Fund

	Par (000)		Value†
CERTIFICATES OF DEPOSIT — 1.5%
Banks — 1.5%
JP Morgan Chase 0.200%, 07/29/13 (Cost $2,000,075)	$	2,000	$	2,000,075
COMMERCIAL PAPER — 54.8%
Beverages — 2.6%
Brown Forman Corp.
0.170%, 07/09/13		500		499,981
0.150%, 07/11/13		350		349,985
0.170%, 07/18/13		2,000		1,999,840
0.200%, 07/26/13		600		599,917
				3,449,723
Chemicals — 3.4%
Syngenta AG
0.180%, 07/16/13		4,000		3,999,720
0.150%, 08/05/13		500		499,927
				4,499,647
Computers — 0.4%
Hewlett-Packard Co. 0.300%, 07/01/13		530		530,000
Diversified Financial Services — 13.2%
ABB Treasury 0.140%, 08/02/13		6,400		6,399,228
AGL Capital 0.280%, 07/08/13		640		639,970
BP Capital Markets
0.230%, 08/06/13		1,500		1,499,665
0.350%, 08/06/13		1,700		1,699,422
Reckitt & Benckiser Treasury Services PLC
0.500%, 07/02/13		2,000		1,999,971
0.400%, 01/06/14		1,300		1,297,284
Toyota Motor Credit 0.240%, 08/14/13		2,000		1,999,427
WGL Holdings, Inc. 0.180%, 07/15/13		2,000		1,999,870
				17,534,837
Electric — 18.0%
GDF Suez S.A.
0.200%, 07/15/13		2,050		2,049,852
0.190%, 07/22/13		2,650		2,649,720
IDACORP, Inc. 0.280%, 07/11/13		500		499,965
NSTAR Electrical Co. 0.100%, 07/01/13		5,900		5,900,000
Oglethorpe Power Corp.
0.170%, 07/08/13		900		899,970
0.180%, 07/08/13		550		549,984
0.200%, 08/20/13		4,950		4,948,652
Southern Co.
0.150%, 07/10/13		500		499,983
0.200%, 07/10/13		1,400		1,399,938

	Par (000)		Value†
Electric — (continued)
0.180%, 07/15/13	$	4,000	$	3,999,740
0.200%, 07/15/13		500		499,964
				23,897,768
Food — 4.5%
Wisconsin EL 0.120%, 07/01/13		6,000		6,000,000
Gas — 2.0%
Air Liquide USA LLC 0.150%, 07/26/13		2,200		2,199,780
Spectra Energy Corp. 0.320%, 07/11/13		410		409,967
				2,609,747
Healthcare Services — 1.7%
United Healthcare Corp.
0.220%, 07/01/13		1,200		1,200,000
0.240%, 07/01/13		1,000		1,000,000
				2,200,000
Oil & Gas — 8.5%
Baker Hughes, Inc. 0.160%, 08/29/13		6,000		5,998,454
Conocophillips 0.140%, 09/05/13		4,000		3,998,989
Enbridge Energy Co., Inc. 0.300%, 07/11/13		640		639,952
Kinder Morgan Energy Partners LP 0.280%, 07/12/13		640		639,950
				11,277,345
Retail — 0.5%
Kroger Co. 0.300%, 07/08/13		600		599,970
TOTAL COMMERCIAL PAPER (Cost $72,599,037)				72,599,037
CORPORATE BONDS — 3.4%
Aerospace & Defense — 0.5%
United Technologies Corp. 0.545%, 12/02/13•		660		660,876
Beverages — 0.3%
Pepsico, Inc. 0.875%, 10/25/13		400		400,721
Diversified Financial Services — 1.1%
Caterpillar Financial Services Corp 1.550%, 12/20/13		1,387		1,395,365
Electric — 1.5%
ITCTransmission 4.450%, 07/15/13 @		2,000		2,002,850
TOTAL CORPORATE BONDS (Cost $4,459,812)				4,459,812

46

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Money Market Fund

	Par (000)		Value†
MUNICIPAL NOTES — 38.7%
California Housing Finance Agency 0.060%, 08/01/36•	$	1,900	$	1,900,000
City of Minneapolis 0.060%, 12/01/27•		2,290		2,290,000
Colorado Housing & Finance Authority
0.070%, 10/01/30•		2,800		2,800,000
0.080%, 04/01/43•		1,145		1,145,000
Idaho Housing & Finance Association
0.070%, 01/01/38•		3,900		3,900,000
0.080%, 01/01/40•		4,020		4,020,000
Iowa Finance Authority
0.070%, 07/01/34•		1,320		1,320,000
0.070%, 01/01/39•		1,100		1,100,000
Kansas State Department of Transportation 0.060%, 09/01/22•		3,100		3,100,000
Michigan State Housing Development Authority 0.170%, 06/01/39•		4,700		4,700,000
Minnesota Housing Finance Agency 0.070%, 07/01/36•		4,000		4,000,000
Pennsylvania Turnpike Commission 0.160%, 07/15/41•		5,000		5,000,000
South Dakota Housing Development Authority 0.070%, 05/01/39•		5,000		5,000,000
State of Texas 0.080%, 12/01/29•		4,000		4,000,000
Triborough Bridge & Tunnel Authority 0.350%, 01/01/19•		2,900		2,900,000
Wisconsin Housing & Economic Development Authority 0.070%, 09/01/22•		4,000		4,000,000
TOTAL MUNICIPAL NOTES (Cost $51,175,000)				51,175,000
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.6%
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		2,155,629		2,155,629
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 $2,155,635)				2,155,635
TOTAL INVESTMENTS — 100.0% (Cost $132,389,559)			$	132,389,559

† 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.

LLC — Limited Liability Company.

LP — Limited Partnership.

PLC — Public Limited Company.

Maturity Schedule	Market Value		% of Portfolio		(Cumulative)
1 —     7 days	$	69,960,606		52.8%		52.8%
8 —   14 days		7,629,615		5.8%		58.6%
15 —   30 days		22,001,253		16.6%		75.2%
31 —   60 days		19,046,396		14.4%		89.6%
61 —   90 days		9,997,443		7.6%		97.2%
91 — 120 days		400,721		0.3%		97.5%
121 — 150 days		—		0.0%		97.5%
over 150 days		3,353,525		2.5%		100%
	$	132,389,559		100.0%

Average Weighted Maturity — 23 days

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
CERTIFICATES OF DEPOSIT	$	2,000,075	$	—	$	2,000,075	$	—
CORPORATE BONDS		4,459,812		—		4,459,812		—
MUNICIPAL NOTES		51,175,000		—		51,175,000		—
COMMERCIAL PAPER		72,599,037		—		72,599,037		—
SHORT-TERM INVESTMENTS		2,155,635		2,155,635		—		—
TOTAL INVESTMENTS	$	132,389,559	$	2,155,635	$	130,233,924	$	—

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 these financial statements.

47

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Limited Maturity Bond Fund

	Par (000)		Value†
AGENCY OBLIGATIONS — 10.6%
Federal Home Loan Mortgage Corporation — 1.0%
1.375%, 02/25/14	$	2,000	$	2,015,132
Federal National Mortgage Association — 9.6%
0.500%, 08/09/13		2,000		2,000,760
1.000%, 09/23/13		2,000		2,003,824
0.750%, 12/18/13		7,000		7,020,545
1.625%, 10/26/15		7,000		7,173,537
				18,198,666
TOTAL AGENCY OBLIGATIONS (Cost $20,186,446)				20,213,798
ASSET BACKED SECURITIES — 6.6%
Cabela’s Master Credit Card Trust 0.723%, 02/18/20 144A @,•		3,000		2,998,416
Chase Issuance Trust 07-B1, B1 0.443%, 04/15/19•		2,398		2,343,728
Conseco Financial Corp. 7.650%, 04/15/19		33		34,149
Equity One Mortgage Pass-Through Trust 2004-1 4.145%, 04/25/34•		13		12,768
Ford Credit Floorplan Master Owner Trust A 1.140%, 06/15/17		1,000		1,000,729
GE Capital Credit Card Master Note Trust
1.043%, 09/15/16•		1,400		1,400,622
0.950%, 06/15/18		2,000		2,005,624
Hyundai Auto Lease Securitization Trust 2012-A 0.920%, 08/17/15 144A @		1,500		1,502,756
Popular ABS Mortgage Pass-Through Trust 2004-4 4.628%, 09/25/34•		12		12,588
SACO I, Inc. 1.093%, 06/25/35 144A @,•		378		319,619
Springleaf Funding Trust 2013-A~ 2.580%, 09/15/21 144A @		1,000		996,641
TOTAL ASSET BACKED SECURITIES (Cost $12,676,379)				12,627,640
COMMERCIAL MORTGAGE BACKED SECURITIES — 3.6%
Bear Stearns Commercial Mortgage Securities 2006-PWR11 5.563%, 03/11/39•		265		266,927
EMAC Owner Trust 2000-1 8.210%, 01/15/27 144A @,•		382		278,320
FDIC Commercial Mortgage Trust 2012-C1 A~ 0.841%, 05/25/35 144A @,•		4,342		4,342,270
FHLMC Multifamily Structured Pass Through K501-A1 1.337%, 06/25/16		1,870		1,881,658
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $6,882,100)				6,769,175

	Par (000)		Value†
CORPORATE BONDS — 22.3%
Auto Manufacturers — 0.5%
Daimler Finance North America LLC 1.250%, 01/11/16 144A @	$	1,000	$	993,483
Banks — 3.2%
Bank of Montreal 2.850%, 06/09/15 144A @		1,000		1,041,300
Bank of Nova Scotia 1.050%, 03/20/15 144A @		1,000		1,007,400
Commonwealth Bank of Australia 3.492%, 08/13/14 144A @		1,000		1,034,109
The Toronto-Dominion Bank 1.625%, 09/14/16 144A @		2,000		2,031,400
Westpac Banking Corp. 3.585%, 08/14/14 144A @		1,000		1,034,880
				6,149,089
Beverages — 1.2%
Anheuser-Busch InBev Worldwide, Inc. 0.800%, 07/15/15		1,000		999,755
SABMiller Holdings Inc. 1.850%, 01/15/15 144A @		1,000		1,014,554
The Coca-Cola Co. 1.800%, 09/01/16		240		244,871
				2,259,180
Biotechnology — 0.5%
Celgene Corp. 2.450%, 10/15/15		1,000		1,029,843
Diversified Financial Services — 3.8%
Caisse Centrale Desjardins du Quebec 2.550%, 03/24/16 144A @		3,000		3,123,600
General Electric Capital Corp.
1.000%, 12/11/15		1,000		998,506
2.300%, 04/27/17		1,000		1,013,810
Toyota Motor Credit Corp. 1.000%, 02/17/15		1,000		1,006,574
USAA Capital Corp. 2.250%, 12/13/16 144A @		1,000		1,030,385
				7,172,875
Energy-Alternate Sources — 1.6%
Appalachian Power Co. 0.649%, 08/16/13•		1,000		1,000,329
BG Energy Capital PLC 2.500%, 12/09/15 144A @		1,000		1,032,983
BP Capital Markets PLC 1.700%, 12/05/14		1,000		1,013,524
				3,046,836
Food — 1.0%
ConAgra Foods, Inc. 1.300%, 01/25/16		1,000		1,001,649
Unilever Capital Corp. 0.450%, 07/30/15		1,000		993,585
				1,995,234

48

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Limited Maturity Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Gas — 0.6%
Florida Gas Transmission Co., LLC 4.000%, 07/15/15 144A @	$	1,000	$	1,054,373
Healthcare Products — 1.1%
Baxter International Inc. 0.950%, 06/01/16		1,000		995,306
Zimmer Holdings, Inc. 1.400%, 11/30/14		1,000		1,006,669
				2,001,975
Insurance — 1.1%
Metropolitan Life Global Funding I 2.000%, 01/09/15 144A @		1,000		1,015,588
Principal Life Global Funding II 1.000%, 12/11/15 144A @		1,000		1,000,187
				2,015,775
Internet — 0.5%
Google, Inc. 2.125%, 05/19/16		1,000		1,033,438
Media — 0.5%
NBCUniversal Media LLC 3.650%, 04/30/15		1,000		1,050,737
Mining — 1.1%
BHP Billiton Finance USA Ltd. 1.125%, 11/21/14		1,000		1,007,052
Rio Tinto Finance USA PLC 0.823%, 06/19/15•		1,000		999,991
				2,007,043
Pharmaceuticals — 3.4%
AbbVie, Inc. 1.200%, 11/06/15 144A @		2,000		2,002,198
Express Scripts Holding Co. 3.125%, 05/15/16		1,000		1,039,856
Mckesson Corp. 0.950%, 12/04/15		500		498,663
Merck & Co., Inc. 0.700%, 05/18/16		1,000		993,086
Takeda Pharmaceutical Co. Ltd. 1.031%, 03/17/15 144A @		2,000		2,010,788
				6,544,591
Pipelines — 0.5%
TransCanada PipeLines Ltd. 0.750%, 01/15/16		1,000		988,698
Telecommunications — 1.1%
America Movil S.A.B. de C.V. 2.375%, 09/08/16		1,000		1,013,209
British Telecommunications PLC 1.625%, 06/28/16		1,000		1,004,386
				2,017,595

	Par (000)		Value†
Trucking and Leasing — 0.6%
TTX Co. 5.400%, 02/15/16 144A @	$	1,000	$	1,081,062
TOTAL CORPORATE BONDS (Cost $42,153,804)				42,441,827
COMMERCIAL PAPER — 1.1%
Diversified Financial Services — 1.1%
ENI Finance USA 0.610%, 10/31/13		1,000		997,551
Ford Motor Credit 0.700%, 08/07/13		1,000		998,986
TOTAL COMMERCIAL PAPER (Cost $1,997,141)				1,996,537
MUNICIPAL NOTE — 0.6%
Regional — 0.6%
Province of British Columbia 2.850%, 06/15/15 (Cost $999,788)		1,000		1,045,300
RESIDENTIAL MORTGAGE BACKED SECURITIES — 2.3%
Collateralized Mortgage Obligations — 1.6%
Fannie Mae REMICS• 0.593%, 11/25/39		3,004		3,011,561
Fannie Mae Pool — 0.7%
4.000%, 06/01/20		348		367,257
2.996%, 12/01/33•		586		625,586
2.522%, 04/01/34•		187		198,504
2.815%, 07/01/36•		195		206,896
				1,398,243
TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $4,342,219)				4,409,804
U.S. TREASURY OBLIGATIONS — 50.8%
U.S. Treasury Note
0.500%, 10/15/13		2,250		2,252,549
4.250%, 11/15/13		3,100		3,147,591
0.250%, 11/30/13		5,000		5,002,930
0.125%, 12/31/13		5,000		5,000,000
1.750%, 01/31/14		2,000		2,018,906
1.750%, 03/31/14		5,000		5,059,180
1.875%, 04/30/14		5,650		5,729,451
2.375%, 09/30/14		3,000		3,080,391
4.250%, 11/15/14		12,100		12,765,500
2.250%, 01/31/15		730		752,727
4.000%, 02/15/15		7,850		8,320,388
0.375%, 04/15/15		870		870,781
0.250%, 12/15/15		5,000		4,969,920
2.000%, 04/30/16		19,000		19,730,322
United States Treasury Note Bond 0.500%, 06/15/16		18,000		17,924,058
TOTAL U.S. TREASURY OBLIGATIONS (Cost $95,912,768)				96,624,694

49

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Limited Maturity Bond Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 2.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		4,018,997	$	4,018,997
BlackRock Liquidity Funds TempFund - Institutional Shares		218		218
Federated Prime Obligations Fund - Class I		407		407
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		77		77
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 $4,020,921)				4,020,921
TOTAL INVESTMENTS — 100.0% (Cost $189,171,566)			$	190,149,696

† 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, 2013 is $5,338,911.

LLC — Limited Liability Company.

PLC — Public Limited Company.

REMICS — Real Estate Mortgage Investment Conduits.

Country Weightings as of 06/30/2013††
United States	90	%
Canada	5
United Kingdom	2
Australia	1
Japan	1
Mexico	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AGENCY OBLIGATIONS	$	20,213,798	$	—	$	20,213,798	$	—
ASSET BACKED SECURITIES		12,627,640		—		12,627,640		—
COMMERCIAL MORTGAGE BACKED SECURITIES		6,769,175		—		6,769,175		—
CORPORATE BONDS		42,441,827		—		42,441,827		—
COMMERICAL PAPER		1,996,537		—		1,996,537
MUNICIPAL NOTE		1,045,300		—		1,045,300
RESIDENTIAL MORTGAGE BACKED SECURITIES		4,409,804		—		4,409,804		—
U.S. TREASURY OBLIGATIONS		96,624,694		—		96,624,694		—
SHORT-TERM INVESTMENTS		4,020,921		4,020,921		—		—
TOTAL INVESTMENTS	$	190,149,696	$	4,020,921	$	186,128,775	$	—

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 these financial statements.

50

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Quality Bond Fund

	Par (000)		Value†
AGENCY OBLIGATION — 1.3%
Federal National Mortgage Association — 1.3%
Federal National Mortgage Association 5.000%, 04/15/15 (Cost $6,847,615)	$	6,750	$	7,303,723
ASSET BACKED SECURITIES — 2.9%
Conseco Financial Corp. 7.240%, 11/15/28•		473		240,082
GE Capital Credit Card Master Note Trust
1.043%, 09/15/16•		4,000		4,001,776
0.950%, 06/15/18		5,000		5,014,060
Hyundai Auto Lease Securitization Trust 2012-A 0.920%, 08/17/15 144A @		4,000		4,007,348
SACO I, Inc. 1.093%, 06/25/35 144A @,•		1,135		958,857
Springleaf Funding Trust 2013-A~ 2.580%, 09/15/21 144A @		2,000		1,993,281
TOTAL ASSET BACKED SECURITIES (Cost $16,549,891)				16,215,404
COMMERCIAL MORTGAGE BACKED SECURITIES — 0.9%
Bear Stearns Commercial Mortgage Securities 4.830%, 08/15/38		39		39,152
CFCRE Commercial Mortgage Trust 144A 4.961%, 04/15/44 144A @,•		1,000		1,094,446
Citigroup Deutsche Bank Commercial Mortgage Trust 5.322%, 12/11/49		1,500		1,651,254
EMAC Owner Trust 2000-1 8.210%, 01/15/27 144A @,•		765		556,641
JPMorgan Chase Commercial Mortgage Securities Corp. 5.420%, 01/15/49		1,500		1,660,761
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $4,775,290)				5,002,254
CORPORATE BONDS — 20.7%
Aerospace & Defense — 0.7%
Lockheed Martin Corp. 3.350%, 09/15/21		1,000		995,123
Northrop Grumman Corp. 3.250%, 08/01/23		1,000		946,309
United Technologies Corp. 4.500%, 06/01/42		2,000		1,972,206
				3,913,638
Agriculture — 0.4%
Altria Group, Inc. 4.750%, 05/05/21		1,000		1,070,960
Cargill, Inc. 6.125%, 09/15/36 144A @		1,000		1,150,795
				2,221,755

	Par (000)		Value†
Banks — 1.1%
Bank of America Corp. 5.650%, 05/01/18	$	1,000	$	1,110,982
Bank of Montreal 2.850%, 06/09/15 144A @		1,000		1,041,300
JPMorgan Chase & Co. 6.000%, 01/15/18		1,700		1,939,975
The Goldman Sachs Group, Inc.
5.250%, 07/27/21		1,000		1,069,899
5.750%, 01/24/22		1,000		1,103,013
				6,265,169
Beverages — 0.7%
Anheuser-Busch InBev Worldwide, Inc. 7.750%, 01/15/19		1,000		1,264,833
Fomento Economico Mexicano SAB de CV 4.375%, 05/10/43		1,000		870,511
Pepsico, Inc. 4.000%, 03/05/42		1,000		902,410
The Coca-Cola Co. 3.300%, 09/01/21		1,000		1,022,405
				4,060,159
Biotechnology — 0.8%
Amgen, Inc. 4.950%, 10/01/41		1,000		969,306
Biogen Idec, Inc. 6.875%, 03/01/18		1,000		1,189,250
Genentech, Inc. 5.250%, 07/15/35		1,000		1,098,647
Gilead Sciences, Inc. 4.400%, 12/01/21		1,000		1,073,835
				4,331,038
Chemicals — 0.3%
EI du Pont de Nemours & Co. 4.150%, 02/15/43		1,000		960,874
Praxair, Inc. 3.000%, 09/01/21		1,000		985,834
				1,946,708
Commercial Services — 0.8%
Safina Ltd. 2.000%, 12/30/23		4,708		4,633,205
Computers — 0.4%
Hewlett-Packard Co. 2.600%, 09/15/17		1,000		998,689
International Business Machines Corp. 6.500%, 01/15/28		1,000		1,258,514
				2,257,203
Diversified Financial Services — 2.2%
American Honda Finance Corp. 144A 3.800%, 09/20/21 144A @		1,000		1,046,077
Caisse Centrale Desjardins du Quebec 2.550%, 03/24/16 144A @		2,000		2,082,400
Carobao Leasing LLC 1.829%, 09/07/24		4,687		4,555,683

51

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Diversified Financial Services — (continued)
General Electric Capital Corp.
6.150%, 08/07/37	$	1,000	$	1,131,534
5.875%, 01/14/38		1,000		1,100,755
Northern Trust Corp. 3.375%, 08/23/21		500		506,993
Toyota Motor Credit Corp. 3.400%, 09/15/21		1,000		990,903
USAA Capital Corp. 2.250%, 12/13/16 144A @		1,000		1,030,385
				12,444,730
Electric — 1.2%
Commonwealth Edison Co. 6.150%, 09/15/17		500		582,896
DTE Electric Co. 4.000%, 04/01/43		1,000		920,397
Duke Energy Carolinas LLC 4.250%, 12/15/41		1,000		931,692
Duke Energy Progress, Inc. 2.800%, 05/15/22		1,000		959,707
Enel Finance International SA 6.250%, 09/15/17 144A @		1,000		1,097,080
Georgia Power Co. 4.300%, 03/15/42		1,000		917,078
PacifiCorp 6.250%, 10/15/37		1,000		1,216,837
				6,625,687
Electronics — 0.2%
Thermo Fisher Scientific, Inc. 3.600%, 08/15/21		1,000		980,753
Engineering & Construction — 0.2%
ABB Finance USA, Inc. 4.375%, 05/08/42		1,000		961,575
Food — 1.1%
ConAgra Foods, Inc. 1.900%, 01/25/18		1,000		983,081
Grupo Bimbo SAB de CV 4.500%, 01/25/22 144A @		1,000		1,000,098
Hillshire Brands Co. 2.750%, 09/15/15		1,000		1,027,551
Kraft Foods Group, Inc. 5.000%, 06/04/42		1,000		1,012,692
Mondelez Internatonal, Inc. 6.750%, 02/19/14		500		517,771
Unilever Capital Corp. 0.850%, 08/02/17		2,000		1,938,446
				6,479,639
Gas — 0.5%
Boston Gas Co. 4.487%, 02/15/42 144A @		1,000		960,995
Pacific Gas & Electric Co. 3.250%, 09/15/21		1,000		1,000,095

	Par (000)		Value†
Gas — (continued)
SEMCO Energy, Inc. 5.150%, 04/21/20 144A @	$	1,000	$	1,066,086
				3,027,176
Healthcare Products — 1.6%
Baxter International, Inc. 3.200%, 06/15/23		1,000		980,878
Becton Dickinson and Co. 3.125%, 11/08/21		1,000		985,267
CareFusion Corp. 3.300%, 03/01/23 144A @		1,103		1,047,705
Covidien International Finance SA
6.000%, 10/15/17		1,000		1,158,805
3.200%, 06/15/22		1,000		986,321
Medtronic, Inc. 4.000%, 04/01/43		1,000		903,669
St Jude Medical, Inc. 4.750%, 04/15/43		1,000		926,845
Stryker Corp. 2.000%, 09/30/16		1,000		1,026,503
Zimmer Holdings, Inc. 4.625%, 11/30/19		1,000		1,092,692
				9,108,685
Healthcare Services — 0.4%
Cigna Corp. 4.375%, 12/15/20		1,000		1,063,797
UnitedHealth Group, Inc. 4.625%, 11/15/41		1,000		959,958
				2,023,755
Insurance — 0.5%
American International Group, Inc. 4.875%, 06/01/22		1,000		1,065,924
Berkshire Hathaway, Inc. 4.500%, 02/11/43		1,000		950,222
The Travelers Cos., Inc. 5.350%, 11/01/40		1,000		1,093,331
				3,109,477
Media — 0.4%
Comcast Cable Holdings LLC 9.875%, 06/15/22		1,000		1,347,552
The Walt Disney Co. 3.700%, 12/01/42		1,000		879,554
				2,227,106
Mining — 0.2%
Corp Nacional del Cobre de Chile 3.000%, 07/17/22 144A @		1,000		904,998
Miscellaneous Manufacturing — 0.4%
Illinois Tool Works, Inc. 4.875%, 09/15/41		1,000		1,044,838

52

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Miscellaneous Manufacturing — (continued)
Siemens Financieringsmaatschappij NV  6.125%, 08/17/26 144A @	$	1,000	$	1,187,260
				2,232,098
Oil & Gas — 2.4%
Apache Corp. 3.250%, 04/15/22		1,000		985,054
BG Energy Capital PLC 4.000%, 10/15/21 144A @		1,000		1,039,422
BP Capital Markets PLC 4.500%, 10/01/20		1,000		1,084,888
Chevron Corp. 3.191%, 06/24/23		1,000		995,151
Devon Energy Corp. 4.750%, 05/15/42		1,000		933,484
Occidental Petroleum Corp. 3.125%, 02/15/22		1,000		968,791
Pemex Project Funding Master Trust 6.625%, 06/15/35		1,000		1,050,000
Petrobras International Finance Co. - Pifco 6.750%, 01/27/41		1,000		999,061
Petroleos Mexicanos
1.950%, 12/20/22 W.I.		1,890		1,874,440
2.000%, 12/20/22		2,868		2,851,107
Statoil, ASA 3.150%, 01/23/22		1,000		989,016
				13,770,414
Oil & Gas Services — 0.5%
Halliburton Co. 4.500%, 11/15/41		1,000		987,783
National Oilwell Varco, Inc. 3.950%, 12/01/42		1,000		897,679
Schlumberger Oilfield PLC 4.200%, 01/15/21 144A @		1,000		1,067,965
				2,953,427
Pharmaceuticals — 1.7%
AbbVie, Inc. 1.200%, 11/06/15 144A @		1,000		1,001,099
Express Scripts Holding Co. 3.900%, 02/15/22		1,000		1,012,528
GlaxoSmithKline Capital, Inc. 5.375%, 04/15/34		1,000		1,093,468
Merck Sharp & Dohme Corp. 6.400%, 03/01/28		1,000		1,237,925
Novartis Capital Corp. 2.900%, 04/24/15		1,000		1,042,368
Sanofi 4.000%, 03/29/21		1,000		1,066,558
Takeda Pharmaceutical Co., Ltd. 1.625%, 03/17/17 144A @		2,000		1,990,862
Teva Pharmaceutical Finance Co. BV 3.650%, 11/10/21		1,000		1,000,092
				9,444,900

	Par (000)		Value†
Pipelines — 0.4%
DCP Midstream LLC 6.750%, 09/15/37 144A @	$	1,000	$	1,083,273
Sunoco Logistics Partners Operations LP 4.950%, 01/15/43		1,000		895,116
				1,978,389
Retail — 0.5%
CVS Caremark Corp. 5.750%, 05/15/41		1,000		1,127,227
Wal-Mart Stores, Inc.
3.250%, 10/25/20		1,000		1,033,675
4.000%, 04/11/43		1,000		911,185
				3,072,087
Semiconductors — 0.2%
Intel Corp. 4.000%, 12/15/32		1,000		928,629
Telecommunications — 0.7%
America Movil SAB de CV 3.125%, 07/16/22		1,000		921,395
AT&T, Inc. 3.875%, 08/15/21		1,000		1,031,392
British Telecommunications PLC 1.625%, 06/28/16		1,000		1,004,386
Verizon Communications, Inc. 4.600%, 04/01/21		1,000		1,084,016
				4,041,189
Trucking and Leasing — 0.2%
TTX Co. 5.400%, 02/15/16 144A @		1,000		1,081,062
TOTAL CORPORATE BONDS (Cost $114,151,463)				117,024,651
MUNICIPAL NOTE — 0.4%
Province of British Columbia 2.850%, 06/15/15 (Cost $1,999,576)		2,000		2,090,600
MUNICIPAL BONDS — 1.4%
City of New York 6.271%, 12/01/37		1,750		2,059,452
Corpus Christi Independent School District 6.124%, 08/15/32		1,000		1,188,650
Metropolitan Water District of Southern California 6.947%, 07/01/40		1,000		1,170,610
Orange County Sanitation District 6.400%, 02/01/44		1,000		1,239,340
San Francisco City & County Public Utilities Commission 6.950%, 11/01/50		2,000		2,561,120
Total MUNICIPAL BONDS (Cost $6,752,193)				8,219,172

53

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Quality Bond Fund

	Par (000)		Value†
RESIDENTIAL MORTGAGE BACKED SECURITIES — 21.6%
Collateralized Mortgage Obligations — 1.2%
Fannie Mae REMICS 0.593%, 11/25/39•	$	3,004	$	3,011,560
Freddie Mac REMICs 0.533%, 05/15/37•		3,856		3,875,710
				6,887,270
Fannie Mae Pool — 13.1%
5.000%, 07/01/23		1,135		1,211,420
2.522%, 04/01/34•		560		595,512
2.815%, 07/01/36•		649		689,654
2.431%, 08/01/36•		627		667,260
2.960%, 05/01/37•		510		538,975
4.000%, 08/01/39		4,472		4,657,836
4.000%, 11/01/40		4,100		4,273,364
3.500%, 12/01/40		8,408		8,546,895
3.500%, 01/01/41		7,143		7,260,708
3.500%, 03/01/41		1,858		1,888,754
2.500%, 02/01/43		10,916		10,159,470
2.500%, 05/01/43		12,977		12,077,196
3.000%, 06/01/43~		22,000		21,470,625
				74,037,669
Freddie Mac Gold Pool — 2.7%
3.000%, 01/01/26		5,500		5,657,013
3.500%, 12/01/40		5,154		5,227,287
3.500%, 01/01/41		3,440		3,489,165
3.500%, 02/01/41		1,026		1,040,753
				15,414,218
Ginnie Mae Pool — 4.6%
6.000%, 10/15/38		878		973,887
6.000%, 10/15/38		747		828,668
4.000%, 04/15/39		5,535		5,820,486
4.000%, 06/15/39		4,160		4,373,674
4.500%, 02/15/40		6,242		6,640,674
3.500%, 10/20/41		7,373		7,579,740
9.000%, 10/15/30		8		8,072
				26,225,201
TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $119,493,279)				122,564,358
U.S. TREASURY OBLIGATIONS — 38.7%
U.S. Treasury Bond
6.250%, 08/15/23		1,350		1,811,531
5.500%, 08/15/28		2,800		3,643,500
3.500%, 02/15/39		3,320		3,373,950
4.375%, 05/15/40		100		117,281
3.125%, 11/15/41		9,000		8,437,500
2.750%, 11/15/42		450		387,985
U.S. Treasury Note
0.250%, 11/30/13		5,000		5,002,930
1.750%, 01/31/14		6,000		6,056,718
1.875%, 02/28/14		7,000		7,080,115
4.250%, 11/15/14		5,000		5,275,000
4.000%, 02/15/15		10,900		11,553,150

	Par (000)		Value†
U.S. Treasury Note — (continued)
2.125%, 12/31/15	$	11,100	$	11,544,866
2.625%, 02/29/16		5,000		5,273,830
1.500%, 07/31/16		3,050		3,122,675
0.875%, 12/31/16		3,750		3,747,656
0.625%, 08/31/17		12,000		11,753,436
0.625%, 11/30/17		52,000		50,695,944
0.750%, 03/31/18		13,000		12,653,667
2.375%, 06/30/18		4,300		4,506,938
2.750%, 02/15/19		9,800		10,430,875
3.125%, 05/15/19		6,550		7,108,283
3.375%, 11/15/19		475		522,648
1.000%, 11/30/19		11,100		10,575,347
2.000%, 11/15/21		2,200		2,162,015
2.000%, 02/15/22		4,400		4,303,407
1.625%, 08/15/22		6,000		5,629,218
1.625%, 11/15/22		18,000		16,803,288
U.S. Treasury Strip Principal 0.000%, 11/15/24+		7,800		5,652,075
TOTAL U.S. TREASURY OBLIGATIONS (Cost $217,592,093)				219,225,828
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 12.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		55,502,631		55,502,631
BlackRock Liquidity Funds TempFund - Institutional Shares		447		447
Federated Prime Obligations Fund - Class I		312		312
Fidelity Institutional Prime Money Market Portfolio		714		714
Fidelity Institutional Prime Money Market Portfolio - Class I		271		271
Wells Fargo Advantage Government Money Market Fund - Institutional Class		13,145,615		13,145,615
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 $68,649,992)				68,649,992
TOTAL INVESTMENTS — 100.0% (Cost $556,811,392)			$	566,295,982

† 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.

54

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Quality Bond Fund

~ Fair valued security. The total market value of fair valued securities at June 30, 2013 is $23,463,906.

+ 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.

LP — Limited Partnership.

PLC — Public Limited Company.

REMICS — Real Estate Mortgage Investment Conduits.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	219,225,828	$	—	$	219,225,828	$	—
AGENCY OBLIGATION		7,303,723		—		7,303,723		—
ASSET BACKED SECURITIES		16,215,404		—		16,215,404		—
COMMERCIAL MORTGAGE BACKED SECURITIES		5,002,254		—		5,002,254		—
CORPORATE BONDS		117,024,651		—		117,024,651		—
MUNICIPAL NOTE		2,090,600		—		2,090,600		—
MUNICIPAL BONDS		8,219,172		—		8,219,172		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		122,564,358		—		122,564,358		—
SHORT-TERM INVESTMENTS		68,649,992		68,649,992		—		—
TOTAL INVESTMENTS	$	566,295,982	$	68,649,992	$	497,645,990	$	—

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 these financial statements.

55

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Number of Shares		Value†
COMMON STOCKS — 1.4%
Airlines — 0.2%
AMR Corp.*		21,500	$	86,645
Delta Air Lines, Inc.*		11,200		209,552
				296,197
Auto Parts & Equipment — 0.2%
TRW Automotive Holdings Corp.*		5,125		340,505
Entertainment — 0.0%
New Cotai Participation Class B144A @^~		1		24,225
Media — 0.2%
Liberty Global PLC, Class A*		4,100		303,728
Oil & Gas — 0.3%
PBF Energy, Inc.		5,500		142,450
Range Resources Corp.		2,300		177,836
WPX Energy, Inc.*		9,300		176,142
				496,428
Packaging and Containers — 0.1%
Smurfit Kappa Group PLC*		11,850		193,731
Real Estate — 0.1%
Realogy Holdings Corp.*		5,000		240,200
Retail — 0.1%
Rite Aid Corp.*		83,900		239,954
Telecommunications — 0.2%
Crown Castle International Corp.*		1,750		126,683
NII Holdings, Inc.*		32,000		213,440
				340,123
TOTAL COMMON STOCKS (Cost $1,936,273)				2,475,091
PREFERRED STOCKS — 0.5%
Auto Manufacturers — 0.2%
General Motors Co. CONV.		8,300		399,728
Banks — 0.2%
Ally Financial, Inc.144A @		500		475,234
Media — 0.1%
Spanish Broadcasting System, Inc.^		182		132,860
Packaging and Containers — 0.0%
Smurfit-Stone Container Corp. (Escrow) CONV.*^~		725		0
TOTAL PREFERRED STOCKS (Cost $891,763)				1,007,822
	Par (000)		Value†
REAL ESTATE INVESTMENT TRUSTS — 0.3%
Diversified — 0.1%
American Tower Corp.	$	1,375		100,609
Healthcare — 0.2%
Omega Healthcare Investors, Inc.		350,000		361,375
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $444,399)				461,984

	Par (000)		Value†
CORPORATE BONDS — 92.5%
Advertising — 0.9%
Griffey Intermediate, Inc. 7.000%, 10/15/20 144A @	$	475	$	458,375
inVentiv Health, Inc.
10.750%, 08/15/18144A @		200		166,000
11.000%, 08/15/18 144A @		225		186,750
Lamar Media Corp. 5.000%, 05/01/23		275		264,000
MDC Partners, Inc. 6.750%, 04/01/20 144A @		425		423,937
The Interpublic Group of Cos., Inc. 10.000%, 07/15/17		125		131,588
				1,630,650
Aerospace & Defense — 0.9%
Ducommun, Inc. 9.750%, 07/15/18		300		327,750
Kratos Defense & Security Solutions, Inc. 10.000%, 06/01/17		350		374,500
Meccanica Holdings USA, Inc. 6.250%, 07/15/19 144A @		350		359,296
Silver II Borrower 7.750%, 12/15/20 144A @		225		226,125
TransDigm, Inc. 7.750%, 12/15/18		275		289,438
				1,577,109
Airlines — 0.9%
American Airlines 2013-1 Class A Pass Through Trust 4.000%, 07/15/25 144A @		70		66,150
American Airlines 2013-1 Class B Pass Through Trust 5.625%, 01/15/21 144A @		75		77,625
American Airlines 2013-1 Class C Pass Through Trust 6.125%, 07/15/18 144A @^		200		193,000
Continental Airlines 2009-2 Class A Pass Through Trust 7.250%, 11/10/19		43		49,804
Continental Airlines 2009-2 Class B Pass Through Trust 9.250%, 05/10/17^		33		37,231
Continental Airlines 2012-3 Class C Pass Thru Certificates 6.125%, 04/29/18		325		328,250
United Continental Holdings, Inc. 6.375%, 06/01/18		300		294,750
US Airways 2012-2 Class A Pass Through Trust 4.625%, 06/03/25		75		73,875
US Airways 2012-2 Class B Pass Through Trust 6.750%, 06/03/21		35		36,400
US Airways Group, Inc. 6.125%, 06/01/18		575		543,375
				1,700,460

56

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Apparel — 0.3%
Hanesbrands, Inc. 6.375%, 12/15/20	$	250	$	266,563
Levi Strauss & Co. 6.875%, 05/01/22		200		217,000
Wolverine World Wide, Inc. 6.125%, 10/15/20 144A @		100		103,250
				586,813
Auto Manufacturers — 1.3%
Chrysler Group LLC
8.000%, 06/15/19		400		436,500
8.250%, 06/15/21		925		1,020,969
Fiat Industrial Finance Europe S.A. 6.250%, 03/09/18		275		388,907
Jaguar Land Rover Automotive PLC 5.625%, 02/01/23 144A @		450		436,500
Navistar International Corp. 8.250%, 11/01/21		175		171,938
				2,454,814
Auto Parts & Equipment — 1.5%
Affinia Group, Inc. 7.750%, 05/01/21 144A @		75		75,562
Allison Transmission, Inc. 7.125%, 05/15/19 144A @		350		370,125
American Axle & Manufacturing, Inc.
6.250%, 03/15/21		200		203,250
6.625%, 10/15/22		175		177,625
Delphi Corp.
5.875%, 05/15/19		75		79,687
6.125%, 05/15/21		100		109,000
5.000%, 02/15/23		200		205,500
Gestamp Funding Luxembourg SA 5.625%, 05/31/20 144A @		300		285,000
Pittsburgh Glass Works LLC 8.500%, 04/15/16 144A @		100		99,000
Schaeffler Finance BV 4.750%, 05/15/21 144A @		400		380,000
The Goodyear Tire & Rubber Co.
8.250%, 08/15/20		250		273,750
8.750%, 08/15/20		100		116,500
6.500%, 03/01/21		300		305,250
TRW Automotive, Inc. 4.500%, 03/01/21 144A @		75		74,813
				2,755,062
Banks — 2.1%
Ally Financial, Inc.
7.500%, 09/15/20		325		374,562
8.000%, 11/01/31		300		360,750
CIT Group, Inc.
4.250%, 08/15/17		350		351,750
6.625%, 04/01/18 144A @		500		540,000
5.375%, 05/15/20		300		307,125
5.000%, 08/15/22		350		347,375

	Par (000)		Value†
Banks — (continued)
Provident Funding Associates LP
10.125%, 02/15/19 144A @	$	100	$	110,500
6.750%, 06/15/21 144A @		300		299,250
Synovus Financial Corp.
5.125%, 06/15/17		600		589,500
7.875%, 02/15/19		300		332,250
UniCredit SPA 6.375%, 05/02/23		200		195,500
				3,808,562
Beverages — 0.4%
Constellation Brands, Inc.
6.000%, 05/01/22		300		321,750
4.250%, 05/01/23		375		353,906
				675,656
Building Materials — 3.4%
Ainsworth Lumber Co. Ltd. 7.500%, 12/15/17 144A @		100		106,000
Associated Materials LLC
9.125%, 11/01/17		175		183,750
9.125%, 11/01/17		500		525,000
Builders Firstsource, Inc. 7.625%, 06/01/21 144A @		250		241,875
Building Materials Corp. of America 6.750%, 05/01/21 144A @		250		265,625
Cemex Finance LLC 9.375%, 10/12/22 144A @		625		681,250
Cemex S.A.B. de CV
9.000%, 01/11/18 144A @		425		446,250
5.875%, 03/25/19 144A @		750		727,500
Interline Brands, Inc. 10.000%, 11/15/18		125		134,375
Masco Corp.
6.125%, 10/03/16		150		162,000
5.850%, 03/15/17		200		211,000
Nortek, Inc.
10.000%, 12/01/18		300		325,500
8.500%, 04/15/21		350		374,500
Reliance Intermediate Holdings LP 9.500%, 12/15/19 144A @		225		243,000
Summit Materials LLC 10.500%, 01/31/20 144A @		250		267,500
Texas Industries, Inc. 9.250%, 08/15/20		200		215,500
USG Corp.
9.750%, 01/15/18		450		510,750
8.375%, 10/15/18 144A @		50		54,125
Vulcan Materials Co. 7.500%, 06/15/21		300		336,000
Wienerberger AG 6.500%, 12/29/49•		200		235,868
				6,247,368

57

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Chemicals — 3.0%
Ashland, Inc.
3.875%, 04/15/18 144A @	$	125	$	123,750
4.750%, 08/15/22 144A @		225		222,750
Celanese U.S. Holdings LLC 4.625%, 11/15/22		450		441,562
Ciech Group Financing AB 9.500%, 11/30/19 144A @		250		346,562
Eagle Spinco, Inc. 4.625%, 02/15/21 144A @		325		312,000
Hexion US Finance Corp.
8.875%, 02/01/18		200		204,000
8.875%, 02/01/18 144A @		250		255,000
6.625%, 04/15/20 144A @		275		274,313
9.000%, 11/15/20		100		95,500
Huntsman International LLC
8.625%, 03/15/20		75		81,563
4.875%, 11/15/20		125		123,438
Ineos Finance PLC 8.375%, 02/15/19 144A @		375		409,687
Ineos Group Holdings SA 6.125%, 08/15/18 144A @		200		191,000
Magnetation LLC 11.000%, 05/15/18 144A @		250		245,000
Momentive Performance Materials, Inc.
8.875%, 10/15/20		125		130,625
9.000%, 01/15/21		250		214,375
Petrologistics LP 6.250%, 04/01/20 144A @		175		171,500
PolyOne Corp.
7.375%, 09/15/20		150		162,000
5.250%, 03/15/23 144A @		250		246,250
PQ Corp. 8.750%, 05/01/18 144A @		475		486,875
Rockwood Specialties Group, Inc. 4.625%, 10/15/20		300		301,500
Tronox Finance LLC 6.375%, 08/15/20 144A @		275		259,188
US Coatings Acquisition, Inc.
5.750%, 02/01/21 144A @		100		130,164
7.375%, 05/01/21 144A @		150		153,000
				5,581,602
Coal — 1.3%
CONSOL Energy, Inc. 8.000%, 04/01/17		375		394,687
Foresight Energy LLC 9.625%, 08/15/17 144A @		550		577,500
Peabody Energy Corp.
7.375%, 11/01/16		300		333,000
6.000%, 11/15/18		75		75,188
Penn Virginia Resource Partners LP
8.250%, 04/15/18		150		156,375
8.375%, 06/01/20		375		395,625
6.500%, 05/15/21 144A @		500		481,250
				2,413,625

	Par (000)		Value†
Commercial Services — 3.5%
Alliance Data Systems Corp.
5.250%, 12/01/17 144A @	$	275	$	283,250
6.375%, 04/01/20 144A @		275		283,250
Ashtead Capital, Inc. 6.500%, 07/15/22 144A @		125		130,312
Ceridian Corp. 8.875%, 07/15/19 144A @		125		138,906
CoreLogic, Inc. 7.250%, 06/01/21		350		372,750
DP World Ltd. 6.850%, 07/02/37 144A @		210		216,825
Elior Finance & Co, SCA 6.500%, 05/01/20 144A @		100		132,117
Europcar Groupe S.A. 11.500%, 05/15/17 144A @		500		722,412
FTI Consulting, Inc.
6.750%, 10/01/20		75		78,938
6.000%, 11/15/22 144A @		200		202,500
Global A&T Electronics Ltd. 10.000%, 02/01/19 144A @		300		304,500
H&E Equipment Services, Inc. 7.000%, 09/01/22		150		156,375
HDTFS, Inc. 6.250%, 10/15/22		350		365,312
Igloo Holdings Corp. PIK 8.250%, 12/15/17 144A @		175		178,500
Iron Mountain, Inc. 5.750%, 08/15/24		175		164,062
Jaguar Holding Co. I PIK 9.375%, 10/15/17 144A @		100		104,500
Jaguar Holding Co. II 9.500%, 12/01/19 144A @		350		386,750
Laureate Education, Inc. 9.250%, 09/01/19 144A @		500		535,000
Nord Anglia Education UK Holdings PLC 10.250%, 04/01/17 144A @		425		454,750
Safway Group Holding LLC 7.000%, 05/15/18 144A @		125		122,500
ServiceMaster Co. 8.000%, 02/15/20		125		124,688
TransUnion Holding Co., Inc. PIK 8.125%, 06/15/18 144A @		150		158,812
United Rentals North America, Inc.
5.750%, 07/15/18		150		157,500
6.125%, 06/15/23		175		174,125
Verisure Holding AB 8.750%, 09/01/18 144A @		300		419,780
				6,368,414
Computers — 0.7%
iGate Corp. 9.000%, 05/01/16		750		780,000
NCR Corp 5.000%, 07/15/22		225		217,125
NCR Corp. 4.625%, 02/15/21		125		119,375

58

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Computers — (continued)
SunGard Data Systems, Inc. 6.625%, 11/01/19 144A @	$	250	$	251,250
				1,367,750
Cosmetics & Personal Care — 0.1%
Avon Products, Inc.
4.600%, 03/15/20		90		90,995
5.000%, 03/15/23		110		109,339
				200,334
Distribution & Wholesale — 0.8%
American Builders & Contractors Supply Co Inc. 5.625%, 04/15/21 144A @		150		147,375
HD Supply, Inc.
7.500%, 07/15/20 144A @		500		506,250
11.500%, 07/15/20		125		145,000
10.500%, 01/15/21		525		543,375
LKQ Corp. 4.750%, 05/15/23 144A @		125		119,375
				1,461,375
Diversified Financial Services — 4.0%
AerCap Aviation Solutions BV 6.375%, 05/30/17		225		236,250
Air Lease Corp.
4.500%, 01/15/16		250		251,250
6.125%, 04/01/17		375		388,125
Aircastle Ltd.
6.750%, 04/15/17		425		446,250
6.250%, 12/01/19		350		363,562
7.625%, 04/15/20		25		27,500
Cantor Commercial Real Estate Co. LP 7.750%, 02/15/18 144A @		275		276,375
E*TRADE Financial Corp.
6.750%, 06/01/16		450		462,375
6.375%, 11/15/19		350		355,250
Ford Motor Credit Co. LLC 5.000%, 05/15/18		375		399,909
General Motors Financial Co., Inc.
4.750%, 08/15/17 144A @		375		384,375
3.250%, 05/15/18 144A @		250		243,125
6.750%, 06/01/18		150		163,125
4.250%, 05/15/23 144A @		250		232,813
Globe Luxembourg SCA 9.625%, 05/01/18 144A @		200		195,120
International Lease Finance Corp. 5.750%, 05/15/16		175		179,836
Jefferies LoanCore LLC 6.875%, 06/01/20 144A @		400		388,000
Ladder Capital Finance Holdings LLLP 7.375%, 10/01/17 144A @		200		204,000
Nationstar Mortgage LLC
6.500%, 07/01/21		150		144,000
6.500%, 06/01/22		300		292,500

	Par (000)		Value†
Diversified Financial Services — (continued)
Neuberger Berman Group LLC
5.625%, 03/15/20 144A @	$	225	$	232,875
5.875%, 03/15/22 144A @		200		204,000
Numericable Finance & Co. SCA 12.375%, 02/15/19 144A @		425		644,476
Patriot Merger Corp. 9.000%, 07/15/21 144A @		275		268,812
Springleaf Finance Corp. 6.900%, 12/15/17		275		269,844
				7,253,747
Electric — 2.1%
Calpine Corp.
7.875%, 07/31/20 144A @		241		261,485
7.500%, 02/15/21 144A @		266		283,955
CMS Energy Corp. 5.050%, 03/15/22		130		140,452
DPL, Inc.
6.500%, 10/15/16		300		313,500
7.250%, 10/15/21		225		232,875
GenOn Energy, Inc.
7.875%, 06/15/17		550		584,375
9.500%, 10/15/18		850		943,500
Infinis PLC 7.000%, 02/15/19 144A @		300		455,147
Israel Electric Corp Ltd 5.625%, 06/21/18 144A @		375		380,329
NRG Energy, Inc. 6.625%, 03/15/23 144A @		275		275,000
				3,870,618
Electrical Components & Equipment — 0.2%
Coleman Cable, Inc. 9.000%, 02/15/18		200		212,000
General Cable Corp. 5.750%, 10/01/22 144A @		150		148,500
				360,500
Electronics — 0.4%
AES Corp. 4.875%, 05/15/23		225		209,813
Rexel S.A.
5.125%, 06/15/20 144A @		100		129,839
5.250%, 06/15/20 144A @		225		224,437
Techem GmbH 6.125%, 10/01/19 144A @		100		136,347
Trionista Holdco GmbH 5.000%, 04/30/20 144A @		100		128,863
				829,299
Engineering & Construction — 0.5%
Aguila 3 S.A.
7.875%, 01/31/18 144A @		325		334,750
7.875%, 01/31/18 144A @		300		325,075
Dycom Investments, Inc. 7.125%, 01/15/21		275		291,500
				951,325

59

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Entertainment — 2.3%
Cedar Fair LP
9.125%, 08/01/18	$	300	$	327,000
5.250%, 03/15/21 144A @		275		264,000
Cinemark USA, Inc.
5.125%, 12/15/22 144A @		150		144,750
4.875%, 06/01/23 144A @		200		192,000
Graton Economic Development Authority 9.625%, 09/01/19 144A @		400		438,000
Great Canadian Gaming Corp. 6.625%, 07/25/22 144A @		150		147,261
MU Finance PLC 8.375%, 02/01/17 144A @		223		237,074
National CineMedia LLC 6.000%, 04/15/22		175		179,594
New Cotai LLC 10.625%, 05/01/19 144A @		250		245,000
Palace Entertainment Holdings LLC 8.875%, 04/15/17 144A @		275		283,250
Seminole Indian Tribe of Florida 7.750%, 10/01/17 144A @		350		371,875
Seneca Gaming Corp. 8.250%, 12/01/18 144A @		450		479,250
Six Flags Entertainment Corp. 5.250%, 01/15/21 144A @		350		337,750
Travelport LLC PIK 13.875%, 03/01/16 144A @		225		230,062
WMG Acquisition Corp.
11.500%, 10/01/18		150		171,750
6.000%, 01/15/21 144A @		138		140,415
				4,189,031
Environmental Control — 0.5%
Clean Harbors, Inc.
5.250%, 08/01/20		125		126,875
5.125%, 06/01/21		175		176,313
Tervita Corp.
8.000%, 11/15/18 144A @		250		251,250
9.750%, 11/01/19 144A @		300		279,000
				833,438
Food — 2.7%
ARAMARK Corp. 5.750%, 03/15/20 144A @		200		204,500
Barry Callebaut Services NV 5.500%, 06/15/23 144A @		475		478,106
Bumble Bee Acquisition Corp. 9.000%, 12/15/17 144A @		165		175,313
Del Monte Corp. 7.625%, 02/15/19		825		847,687
ESAL GmbH 6.250%, 02/05/23 144A @		405		369,765
Hawk Acquisition Sub, Inc. 4.250%, 10/15/20 144A @		475		454,219
Land O’ Lakes Capital Trust I 7.450%, 03/15/28 144A @		275		269,500

	Par (000)		Value†
Food — (continued)
Marfrig Overseas Ltd 9.625%, 11/16/16 144A @	$	55	$	53,900
Michael Foods Holding, Inc. PIK 8.500%, 07/15/18 144A @		200		206,000
Minerva Luxembourg S.A. 12.250%, 02/10/22 144A @		200		239,000
Post Holdings, Inc. 7.375%, 02/15/22		100		107,000
R&R Ice Cream PLC
8.375%, 11/15/17 144A @		200		273,683
9.250%, 05/10/18 144A @		250		316,462
US Foods, Inc. 8.500%, 06/30/19		850		888,250
				4,883,385
Forest Products & Paper — 1.3%
Boise Paper Holdings LLC
9.000%, 11/01/17		100		105,500
8.000%, 04/01/20		125		133,125
Cascades, Inc. 7.875%, 01/15/20		500		522,500
Clearwater Paper Corp.
7.125%, 11/01/18		100		107,000
4.500%, 02/01/23 144A @		450		427,500
Mercer International, Inc. 9.500%, 12/01/17		325		347,750
Sappi Papier Holding GmbH
7.750%, 07/15/17 144A @		200		211,000
8.375%, 06/15/19 144A @		200		211,000
6.625%, 04/15/21 144A @		400		388,000
				2,453,375
Gas — 0.2%
Sabine Pass LNG LP 6.500%, 11/01/20 144A @		375		378,750
Hand & Machine Tools — 0.3%
BC Mountain LLC 7.000%, 02/01/21 144A @		175		178,500
Milacron LLC 7.750%, 02/15/21 144A @		325		324,188
				502,688
Healthcare Products — 0.9%
Biomet Inc 6.500%, 08/01/20		550		566,844
Hologic, Inc. 6.250%, 08/01/20		175		181,453
Kinetic Concepts, Inc.
10.500%, 11/01/18		325		349,375
12.500%, 11/01/19		150		154,500
Universal Hospital Services, Inc. 7.625%, 08/15/20		325		339,625
				1,591,797

60

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Healthcare Services — 3.5%
Aviv Healthcare Properties LP 7.750%, 02/15/19	$	100	$	106,750
Capella Healthcare, Inc. 9.250%, 07/01/17		350		371,000
Centene Corp. 5.750%, 06/01/17		225		235,688
Community Health Systems, Inc.
5.125%, 08/15/18		300		304,500
8.000%, 11/15/19		225		239,344
7.125%, 07/15/20		325		334,750
DaVita HealthCare Partners, Inc. 6.375%, 11/01/18		200		208,750
Fresenius Medical Care U.S. Finance II, Inc.
5.625%, 07/31/19 144A @		150		156,000
5.875%, 01/31/22 144A @		200		210,500
HCA Holdings, Inc. 6.250%, 02/15/21		275		280,500
HCA, Inc. 7.500%, 02/15/22		1,150		1,273,625
Health Management Associates, Inc. 7.375%, 01/15/20		50		54,813
IASIS Healthcare LLC 8.375%, 05/15/19		375		378,516
Kindred Healthcare, Inc. 8.250%, 06/01/19		250		256,250
LifePoint Hospitals, Inc. 6.625%, 10/01/20		100		106,250
Medi-Partenaires SAS 7.000%, 05/15/20 144A @		300		373,245
Multiplan, Inc. 9.875%, 09/01/18 144A @		325		353,437
Priory Group No. 3 PLC 7.000%, 02/15/18 144A @		100		153,617
Select Medical Corp. 6.375%, 06/01/21 144A @		350		332,500
Tenet Healthcare Corp. 4.500%, 04/01/21 144A @		275		256,437
Universal Health Services, Inc. 7.000%, 10/01/18		75		79,031
Vanguard Health Holding Co. II LLC 7.750%, 02/01/19		200		212,000
Voyage Care Bondco PLC 6.500%, 08/01/18 144A @		100		152,856
				6,430,359
Holding Companies — 0.4%
Harbinger Group, Inc. 7.875%, 07/15/19 144A @		300		306,750
KM Germany Holdings GmbH 8.750%, 12/15/20 144A @		250		333,871
WaveDivision Escrow LLC 8.125%, 09/01/20 144A @		75		77,625
				718,246

	Par (000)		Value†
Home Builders — 0.8%
Ashton Woods USA LLC 6.875%, 02/15/21 144A @	$	225	$	227,250
Beazer Homes USA, Inc. 7.250%, 02/01/23 144A @		100		101,000
Meritage Homes Corp. 7.000%, 04/01/22		100		110,000
Shea Homes LP 8.625%, 05/15/19		425		453,687
Standard Pacific Corp. 10.750%, 09/15/16		175		207,813
William Lyon Homes, Inc. 8.500%, 11/15/20 144A @		275		299,062
				1,398,812
Home Furnishings — 0.1%
Tempur-Pedic International, Inc. 6.875%, 12/15/20 144A @		175		184,625
Household Products & Wares — 1.2%
ACCO Brands Corp. 6.750%, 04/30/20		200		201,250
Central Garden & Pet Co. 8.250%, 03/01/18		150		151,875
Reynolds Group Issuer, Inc.
9.000%, 04/15/19		950		980,875
9.875%, 08/15/19		225		240,750
5.750%, 10/15/20		100		100,750
Spectrum Brands Escrow Corp.
6.375%, 11/15/20 144A @		100		104,750
6.625%, 11/15/22 144A @		100		104,750
The Scotts Miracle-Gro Co. 7.250%, 01/15/18		100		105,000
The Sun Products Corp. 7.750%, 03/15/21 144A @		225		223,312
				2,213,312
Housewares — 0.5%
Bormioli Rocco Holdings S.A. 10.000%, 08/01/18 144A @		475		627,554
RSI Home Products, Inc. 6.875%, 03/01/18 144A@		200		204,500
				832,054
Insurance — 0.7%
A-S Co-Issuer Subsidiary, Inc. 7.875%, 12/15/20 144A @		150		150,750
CNO Financial Group, Inc. 6.375%, 10/01/20 144A @		250		265,625
Hub International Ltd. 8.125%, 10/15/18 144A @		250		260,000
Onex USI Aquisition Corp. 7.750%, 01/15/21 144A @		225		221,625
Towergate Finance PLC
8.500%, 02/15/18 144A @		125		195,459
10.500%, 02/15/19 144A @		125		193,922
				1,287,381

61

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Internet — 0.7%
Cerved Technologies SpA 6.375%, 01/15/20 144A @	$	100	$	127,561
Equinix, Inc.
7.000%, 07/15/21		300		325,500
5.375%, 04/01/23		325		318,500
Netflix, Inc. 5.375%, 02/01/21 144A @		475		472,625
				1,244,186
Iron & Steel — 1.9%
AK Steel Corp. 7.625%, 05/15/20		200		170,000
ArcelorMittal
6.125%, 06/01/18		500		515,000
10.350%, 06/01/19		275		325,187
5.750%, 08/05/20		150		148,500
6.000%, 03/01/21		275		273,625
6.750%, 02/25/22		150		153,750
Bluescope Steel Ltd 7.125%, 05/01/18 144A @		175		177,625
Essar Steel Algoma, Inc. 9.875%, 06/15/15 144A @		175		134,750
Ryerson, Inc.
9.000%, 10/15/17 144A @		425		431,375
11.250%, 10/15/18 144A @		650		654,875
Steel Dynamics, Inc. 6.125%, 08/15/19 144A @		150		158,625
United States Steel Corp. 6.875%, 04/01/21		275		266,750
				3,410,062
Leisure Time — 0.5%
Cirsa Funding Luxembourg S.A. 8.750%, 05/15/18 144A @		200		261,891
Easton-Bell Sports, Inc. 9.750%, 12/01/16		50		53,563
NCL Corp. Ltd. 5.000%, 02/15/18 144A @		125		122,500
Royal Caribbean Cruises Ltd. 5.250%, 11/15/22		325		318,500
Travelport LLC 11.875%, 09/01/16		150		139,500
				895,954
Lodging — 1.5%
Boyd Acquisition Sub LLC 8.375%, 02/15/18 144A @		200		208,000
Choice Hotels International, Inc. 5.750%, 07/01/22		150		159,000
CityCenter Holdings LLC 10.750%, 01/15/17		200		216,000
Downstream Development Authority 10.500%, 07/01/19 144A @		150		159,000
MGM Resorts International
6.750%, 10/01/20		425		439,875
6.625%, 12/15/21		925		953,906

	Par (000)		Value†
Lodging — (continued)
Seminole Hard Rock Entertainment, Inc. 5.875%, 05/15/21 144A @	$	150	$	145,500
Station Casinos LLC 7.500%, 03/01/21 144A @		375		378,750
				2,660,031
Machinery — Construction & Mining — 0.4%
Terex Corp.
6.500%, 04/01/20		125		127,500
6.000%, 05/15/21		525		523,688
				651,188
Machinery — Diversified — 0.7%
Case New Holland, Inc. 7.875%, 12/01/17		250		283,125
Columbus McKinnon Corp. 7.875%, 02/01/19		275		291,500
Frigoglass Finance BV 8.250%, 05/15/18 144A @		200		268,138
Loxam SAS 7.375%, 01/24/20 144A @		100		128,863
The Manitowoc Co., Inc.
8.500%, 11/01/20		125		136,250
5.875%, 10/15/22		225		226,125
				1,334,001
Media — 8.2%
AMC Networks, Inc. 4.750%, 12/15/22		475		458,375
Arqiva Broadcast Finance PLC 9.500%, 03/31/20 144A @		275		430,812
Cablevision Systems Corp. 8.625%, 09/15/17		125		141,875
CCO Holdings LLC
6.625%, 01/31/22		250		260,625
5.250%, 09/30/22		400		380,000
5.125%, 02/15/23		1,525		1,429,687
Central European Media Enterprises Ltd. 11.625%, 09/15/16 144A @		450		625,277
Cequel Communications Holdings I LLC
6.375%, 09/15/20 144A @		375		381,562
5.125%, 12/15/21 144A @		650		611,000
Clear Channel Communications, Inc. 9.000%, 12/15/19 144A @		575		557,750
Clear Channel Worldwide Holdings, Inc.
7.625%, 03/15/20		75		77,250
7.625%, 03/15/20		350		362,250
Cogeco Cable, Inc. 4.875%, 05/01/20 144A @		150		145,875
CSC Holdings LLC 6.750%, 11/15/21		150		161,625
Dex Media, Inc. 7.000%, 01/29/17		75		49,500
DISH DBS Corp.
4.250%, 04/01/18 144A @		350		343,000
5.125%, 05/01/20 144A @		375		367,500

62

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Media — (continued)
5.875%, 07/15/22	$	200	$	203,000
5.000%, 03/15/23		350		336,875
ION Media Networks, Inc. 11.000%, 07/31/13¤		1		0
LIN Television Corp. 8.375%, 04/15/18		275		292,531
McGraw-Hill Global Education Holdings LLC 9.750%, 04/01/21 144A @		275		281,188
Mediacom Broadband LLC 6.375%, 04/01/23		250		248,750
MPL 2 Acquisition Canco, Inc. 9.875%, 08/15/18 144A @		200		198,500
Nara Cable Funding Ltd.
8.875%, 12/01/18 144A @		200		208,000
8.875%, 12/01/18 144A @		200		205,000
Nexstar Broadcasting, Inc. 8.875%, 04/15/17		125		133,750
Polish Television Holding BV STEP 11.250%, 05/15/17 144A @		275		370,480
Sinclair Television Group, Inc. 6.125%, 10/01/22		300		300,000
Sirius XM Radio, Inc.
4.250%, 05/15/20 144A @		50		47,000
4.625%, 05/15/23 144A @		250		231,250
Starz LLC / Starz Finance Corp. 5.000%, 09/15/19		250		248,125
Truven Health Analytics, Inc. 10.625%, 06/01/20 144A @		125		137,500
TVN Finance Corp. II AB 10.750%, 11/15/17 144A @		50		69,312
Unitymedia Hessen GmbH & Co. KG 7.500%, 03/15/19 144A @		125		172,752
Unitymedia KabelBW GmbH 9.500%, 03/15/21 144A@		450		650,171
Univision Communications, Inc.
6.875%, 05/15/19 144A @		175		183,750
7.875%, 11/01/20 144A @		950		1,028,375
8.500%, 05/15/21 144A @		850		903,125
6.750%, 09/15/22 144A @		325		341,250
5.125%, 05/15/23 144A @		550		519,750
Videotron Ltd. 6.875%, 07/15/21 144A @		325		332,973
WideOpenWest Finance LLC
10.250%, 07/15/19		400		425,000
13.375%, 10/15/19		125		138,125
				14,990,495
Metal Fabricate/Hardware — 0.3%
JMC Steel Group, Inc. 8.250%, 03/15/18 144A @		300		293,250
Severstal Columbus LLC 10.250%, 02/15/18		275		284,969
				578,219

	Par (000)		Value†
Mining — 0.8%
Aleris International, Inc. 7.875%, 11/01/20	$	225	$	230,625
ALROSA Finance SA 7.750%, 11/03/20 144A @		225		240,750
Eldorado Gold Corp. 6.125%, 12/15/20 144A @		600		579,000
FMG Resources August 2006 Pty Ltd. 7.000%, 11/01/15 144A @		150		151,500
Novelis, Inc. 8.750%, 12/15/20		175		187,688
				1,389,563
Miscellaneous Manufacturing — 0.3%
Amsted Industries, Inc. 8.125%, 03/15/18 144A @		225		237,375
Trinseo Materials Operating SCA 8.750%, 02/01/19 144A @		275		262,625
				500,000
Office & Business Equipment — 0.9%
CDW LLC
12.535%, 10/12/17		765		807,075
8.000%, 12/15/18		25		27,187
8.500%, 04/01/19		750		806,250
				1,640,512
Oil & Gas — 7.3%
Antero Resources Finance Corp.
7.250%, 08/01/19		625		651,562
6.000%, 12/01/20		675		664,875
Approach Resources, Inc. 7.000%, 06/15/21		225		226,688
Athlon Holdings LP 7.375%, 04/15/21 144A @		675		666,562
Atwood Oceanics, Inc. 6.500%, 02/01/20		150		155,625
Bill Barrett Corp.
7.625%, 10/01/19		650		672,750
7.000%, 10/15/22		500		500,000
Chesapeake Energy Corp.
3.250%, 03/15/16		150		149,250
5.375%, 06/15/21		175		174,125
5.750%, 03/15/23		500		506,250
Concho Resources, Inc.
7.000%, 01/15/21		150		161,250
5.500%, 04/01/23		700		689,500
Continental Resources, Inc.
5.000%, 09/15/22		250		254,375
4.500%, 04/15/23 144A @		575		559,187
Laredo Petroleum, Inc. 7.375%, 05/01/22		300		315,000
Newfield Exploration Co. 5.750%, 01/30/22		325		321,750
OGX Austria GmbH 8.500%, 06/01/18 144A @		800		252,000
Pacific Rubiales Energy Corp. 5.125%, 03/28/23 144A @		120		113,400

63

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Oil & Gas — (continued)
PBF Holding Co Llc 8.250%, 02/15/20	$	200	$	209,500
PDC Energy, Inc. 7.750%, 10/15/22 144A @		725		748,562
Penn Virginia Corp. 8.500%, 05/01/20 144A @		450		436,500
Precision Drilling Corp.
6.625%, 11/15/20		275		279,125
6.500%, 12/15/21		75		75,938
QEP Resources, Inc. 5.250%, 05/01/23		875		853,125
Range Resources Corp.
5.000%, 08/15/22		100		97,750
5.000%, 03/15/23		275		268,813
Rosetta Resources Inc 5.625%, 05/01/21		350		341,687
Samson Investment Co. 10.000%, 02/15/20 144A @		250		263,438
SandRidge Energy, Inc.
7.500%, 03/15/21		150		143,250
7.500%, 02/15/23		175		166,250
Seven Generations Energy Ltd 8.250%, 05/15/20 144A @		200		199,000
SM Energy Co.
6.625%, 02/15/19		250		261,875
6.500%, 11/15/21		150		157,500
6.500%, 01/01/23		225		236,250
5.000%, 01/15/24 144A @		350		334,250
Swift Energy Co.
8.875%, 01/15/20		225		233,156
7.875%, 03/01/22		675		671,625
Western Refining, Inc. 6.250%, 04/01/21 144A @		275		268,813
WPX Energy, Inc. 6.000%, 01/15/22		125		126,250
				13,406,806
Oil & Gas Services — 0.7%
Exterran Partners LP 6.000%, 04/01/21 144A @		275		270,875
Hercules Offshore, Inc. 8.750%, 07/15/21 144A @		225		225,000
Petroleum Geo-Services ASA 7.375%, 12/15/18 144A @		500		543,750
SESI LLC 7.125%, 12/15/21		300		324,000
				1,363,625
Packaging and Containers — 1.9%
AEP Industries, Inc. 8.250%, 04/15/19		150		161,438
ARD Finance S.A. 11.125%, 06/01/18 144A @		223		236,240
Ardagh Packaging Finance PLC
9.250%, 10/15/20 144A @		450		613,562
7.000%, 11/15/20 144A @		250		240,937

	Par (000)		Value†
Packaging and Containers — (continued)
Ball Corp. 7.375%, 09/01/19	$	100	$	108,000
BWAY Holding Co. 10.000%, 06/15/18		150		164,250
Consolidated Container Co. LLC 10.125%, 07/15/20 144A @		200		210,000
Crown Americas LLC 4.500%, 01/15/23 144A @		450		424,125
Exopack Holding Corp. 10.000%, 06/01/18		200		202,500
Graphic Packaging International, Inc.
7.875%, 10/01/18		200		216,000
4.750%, 04/15/21		175		169,312
Rexam PLC 6.750%, 06/29/67•		350		466,964
Rock Tenn Co.
4.450%, 03/01/19		60		63,526
4.900%, 03/01/22		40		41,227
Tekni-Plex, Inc. 9.750%, 06/01/19 144A @		166		176,375
				3,494,456
Pharmaceuticals — 1.0%
Capsugel Finance Co. SCA 9.875%, 08/01/19 144A @		200		287,923
Sky Growth Acquisition Corp. 7.375%, 10/15/20 144A @		100		102,500
Valent Pharmaceuticals International 6.375%, 10/15/20 144A @		1,025		1,013,469
Valent Pharmaceuticals International Escrow Corp. 6.750%, 08/15/18 144A @		450		461,250
				1,865,142
Pipelines — 1.8%
Access Midstream Partners LP 4.875%, 05/15/23		550		510,125
Crosstex Energy LP
8.875%, 02/15/18		125		132,500
7.125%, 06/01/22		75		75,750
El Paso Corp.
8.250%, 02/15/16		100		110,993
6.500%, 09/15/20		25		26,653
7.800%, 08/01/31		100		105,618
7.750%, 01/15/32		325		345,290
Inergy Midstream LP 6.000%, 12/15/20 144A @		100		96,500
Kinder Morgan Finance Co. LLC 6.000%, 01/15/18 144A @		150		157,485
Markwest Energy Partners LP 4.500%, 07/15/23		675		617,625
Regency Energy Partners LP
5.500%, 04/15/23		175		172,375
4.500%, 11/01/23 144A @		350		316,750
Rockies Express Pipeline LLC
6.850%, 07/15/18 144A @		25		23,750
6.000%, 01/15/19 144A @		350		313,250

64

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Pipelines — (continued)
Sabine Pass Liquefaction LLC 5.625%, 04/15/23 144A @	$	150	$	141,750
Targa Resources Partners LP 6.375%, 08/01/22		152		159,220
				3,305,634
Real Estate — 0.9%
CBRE Services, Inc. 5.000%, 03/15/23		625		592,187
iStar Financial, Inc. 7.125%, 02/15/18		125		129,688
MPT Operating Partnership LP
6.875%, 05/01/21		225		238,500
6.375%, 02/15/22		125		131,250
Realogy Group LLC
3.375%, 05/01/16 144A @		300		293,250
9.000%, 01/15/20 144A @		100		111,500
Reckson Operating Partnership LP 6.000%, 03/31/16		75		81,724
				1,578,099
Retail — 5.0%
99 Cents Only Stores 11.000%, 12/15/19		225		254,250
AmeriGas Finance LLC 7.000%, 05/20/22		225		230,063
CDR DB Sub, Inc. 7.750%, 10/15/20 144A @		275		275,688
CKE Restaurants, Inc. 11.375%, 07/15/18		29		29,979
Claire’s Stores, Inc.
9.000%, 03/15/19 144A @		500		550,000
6.125%, 03/15/20 144A @		150		147,375
7.750%, 06/01/20 144A @		150		145,125
Coinstar, Inc. 6.000%, 03/15/19 144A @		325		324,594
CST Brands, Inc 5.000%, 05/01/23 144A @		150		146,250
Ferrellgas LP 6.500%, 05/01/21		550		551,375
Fiesta Restaurant Group, Inc. 8.875%, 08/15/16		200		213,000
JC Penney Corp., Inc.
7.650%, 08/15/16		200		195,000
7.950%, 04/01/17		400		385,000
Jo-Ann Stores Holdings, Inc. PIK 9.750%, 10/15/19 144A @		325		333,938
Jo-Ann Stores, Inc. 8.125%, 03/15/19 144A @		300		306,000
New Academy Finance Co. LLC PIK 8.000%, 06/15/18 144A @		400		410,000
New Look Bondco I PLC. 8.375%, 05/14/18 144A @		200		194,000
Party City Holdings, Inc. 8.875%, 08/01/20 144A @		350		375,375

	Par (000)		Value†
Retail — (continued)
Penske Automotive Group, Inc. 5.750%, 10/01/22	$	200	$	204,000
PVH Corp. 4.500%, 12/15/22		250		240,000
RadioShack Corp.
2.500%, 08/01/13 144A @		175		172,156
6.750%, 05/15/19		25		18,000
Rite Aid Corp.
9.250%, 03/15/20		675		745,031
6.750%, 06/15/21 144A @		475		466,687
7.700%, 02/15/27		350		350,000
Sonic Automotive, Inc.
7.000%, 07/15/22		150		163,500
5.000%, 05/15/23 144A @		175		169,750
Suburban Propane Partners LP
7.375%, 03/15/20		50		52,000
7.375%, 08/01/21		100		104,000
The Gymboree Corp. 9.125%, 12/01/18		400		376,000
The Pantry, Inc. 8.375%, 08/01/20		175		187,906
Wok Acquisition Corp. 10.250%, 06/30/20 144A @		800		880,000
				9,196,042
Semiconductors — 1.0%
MEMC Electronic Materials, Inc. 7.750%, 04/01/19		1,125		1,065,937
NXP BV
5.750%, 02/15/21 144A @		200		202,500
5.750%, 03/15/23 144A @		250		251,875
Sensata Technologies BV 4.875%, 10/15/23 144A @		375		360,938
				1,881,250
Software — 1.8%
Eagle Midco, Inc. 9.000%, 06/15/18 144A @		425		414,375
Epicor Software Corp. 8.625%, 05/01/19		225		230,625
First Data Corp.
7.375%, 06/15/19 144A @		50		51,375
6.750%, 11/01/20 144A @		500		508,750
12.625%, 01/15/21		975		1,031,062
Infor U.S., Inc.
11.500%, 07/15/18		100		113,250
9.375%, 04/01/19		300		325,125
Interxion Holding NV 6.000%, 07/15/20 144A @		100		128,863
MedAssets, Inc. 8.000%, 11/15/18		325		344,500
Nuance Communications, Inc. 5.375%, 08/15/20 144A @		225		219,938
				3,367,863

65

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Storage & Warehousing — 0.2%
Algeco Scotsman Global Finance PLC 8.500%, 10/15/18 144A @	$	425	$	422,875
Telecommunications — 10.4%
Altice Financing S.A. 7.875%, 12/15/19 144A @		200		209,000
Altice Finco S.A.
9.875%, 12/15/20 144A @		400		428,000
9.000%, 06/15/23 144A @		175		225,510
CenturyLink, Inc. 5.625%, 04/01/20		725		732,250
Clearwire Communications LLC 12.000%, 12/01/17 144A @		225		260,437
CommScope, Inc. 8.250%, 01/15/19 144A @		550		587,125
Cricket Communications, Inc. 7.750%, 10/15/20		400		384,000
Crown Castle International Corp. 5.250%, 01/15/23		500		480,000
Digicel Group Ltd.
10.500%, 04/15/18 144A @		200		212,000
8.250%, 09/30/20 144A @		400		414,000
Digicel Ltd. 6.000%, 04/15/21 144A @		200		189,000
Earthlink, Inc.
8.875%, 05/15/19		150		145,875
7.375%, 06/01/20 144A @		100		96,000
Eileme 1 AB PIK 14.250%, 08/15/20 144A @		229		252,278
Eircom Finance Ltd. 9.250%, 05/15/20 144A @		125		150,502
GNET Escrow Corp. 12.125%, 07/01/18 144A @		100		105,000
Goodman Networks, Inc. 13.125%, 07/01/18 144A @		225		238,500
GTP Acquisition Partners I LLC 7.628%, 06/15/16 144A @		250		262,167
Hughes Satellite Systems Corp.
6.500%, 06/15/19		350		371,000
7.625%, 06/15/21		325		345,312
Intelsat Jackson Holdings SA 5.500%, 08/01/23 144A @		450		423,000
Intelsat Luxembourg S.A.
6.750%, 06/01/18 144A @		225		226,688
7.750%, 06/01/21 144A @		550		555,500
8.125%, 06/01/23 144A @		275		283,937
Level 3 Communications, Inc.
11.875%, 02/01/19		225		254,812
8.875%, 06/01/19		100		104,000
Level 3 Financing, Inc.
7.000%, 06/01/20		125		124,688
8.625%, 07/15/20		250		266,250
Matterhorn Financing & CY SCA PIK 9.000%, 04/15/19 144A @		350		441,908
Matterhorn Midco & CY SCA 7.750%, 02/15/20 144A @		325		414,573

	Par (000)		Value†
Telecommunications — (continued)
MetroPCS Wireless, Inc. 6.250%, 04/01/21 144A @	$	450	$	457,875
Millicom International Cellular SA 4.750%, 05/22/20 144A @		200		190,052
Mobile Challenger Intermediate Group SA PIK 8.750%, 03/15/19 144A @		150		154,042
NII Capital Corp.
10.000%, 08/15/16		275		266,750
8.875%, 12/15/19		125		105,625
7.625%, 04/01/21		325		252,688
NII International Telecom SCA 7.875%, 08/15/19 144A @		300		284,250
PAETEC Holding Corp. 9.875%, 12/01/18		150		165,750
Sable International Finance Ltd.
7.750%, 02/15/17 144A @		150		158,250
8.750%, 02/01/20 144A @		200		220,000
SBA Telecommunications, Inc. 8.250%, 08/15/19		70		75,775
Softbank Corp. 4.500%, 04/15/20 144A @		550		530,062
Sprint Capital Corp.
6.875%, 11/15/28		675		648,000
8.750%, 03/15/32		300		330,000
Sprint Nextel Corp.
9.000%, 11/15/18 144A @		1,025		1,199,250
11.500%, 11/15/21		200		266,000
6.000%, 11/15/22		400		392,000
Syniverse Holdings, Inc. 9.125%, 01/15/19		300		320,250
tw Telecom Holdings, Inc. 5.375%, 10/01/22		150		148,875
UPC Holding BV
8.375%, 08/15/20 144A @		125		173,200
6.750%, 03/15/23 144A @		375		385,144
6.750%, 03/15/23 144A @		200		252,579
UPCB Finance V Ltd. 7.250%, 11/15/21 144A @		150		158,625
UPCB Finance VI Ltd. 6.875%, 01/15/22 144A @		225		232,875
VimpelCom Holdings BV
5.200%, 02/13/19 144A @		200		195,000
7.504%, 03/01/22 144A @		450		465,750
West Corp.
8.625%, 10/01/18		475		507,656
7.875%, 01/15/19		175		182,000
Wind Acquisition Finance S.A.
11.750%, 07/15/17 144A @		775		806,000
6.500%, 04/30/20 144A @		275		272,937
Windstream Corp. 8.125%, 08/01/13		25		25,063
				19,005,635

66

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Textiles — 0.1%
Siwf Merger Sub, Inc. 6.250%, 06/01/21 144A @	$	150	$	147,000
Transportation — 0.4%
Florida East Coast Holdings Corp. PIK 11.250%, 08/01/17		135		141,939
Florida East Coast Railway Corp. 8.125%, 02/01/17		325		343,687
gategroup Finance (Luxembourg) S.A. 6.750%, 03/01/19 144A @		100		128,863
Kansas City Southern de Mexico S.A. de CV 6.125%, 06/15/21		23		25,764
Watco Cos. LLC 6.375%, 04/01/23 144A @		175		174,125
				814,378
Trucking and Leasing — 0.1%
Maxim Crane Works LP 12.250%, 04/15/15 144A @		125		131,250
TOTAL CORPORATE BONDS (Cost $167,658,531)				169,266,602
LOAN AGREEMENTS — 4.1%‡
Airlines — 0.1%
American Airlines 0.000%, 06/17/14		250		250,391
Auto Manufacturers — 0.1%
Navistar, Inc. 5.750%, 08/17/17		125		125,000
Chemicals — 0.5%
Ineos US Finance LLC 4.000%, 05/04/18•		491		480,826
Macdermid, Inc. 0.000%, 12/06/20		125		126,094
Univar, Inc. 0.000%, 06/30/17		300		293,458
				900,378
Diversified Financial Services — 0.2%
Nuveen Investments, Inc. 6.500%, 02/28/19		425		420,926
Entertainment — 0.2%
Peninsula Gaming LLC 4.250%, 11/20/17		398		397,105
Hotels & Resorts — 0.1%
Four Seasons Holdings, INC 0.000%, 06/24/20		100		100,625
Insurance — 0.2%
Asurion LLC 4.500%, 05/24/19		373		369,301
Media — 0.7%
Clear Channel Communications, Inc.
3.844%, 01/29/16•		82		75,036
6.944%, 01/30/19		243		221,677

	Par (000)		Value†
Media — (continued)
McGraw-Hill Global Education Holdings LLC 9.000%, 03/22/19	$	200	$	196,682
SuperMedia, Inc. 0.000%, 12/31/15		475		375,549
Twcc Holindgs Corp. 0.000%, 12/04/20		325		328,250
				1,197,194
Oil & Gas — 0.3%
BBTS Borrower LP 7.750%, 06/21/19		299		298,128
Chesapeake Energy Corp. 0.000%, 12/02/17		225		228,234
				526,362
Oil & Gas Services — 0.4%
Equipower Resources 6.000%, 12/21/19		700		693,875
Retail — 0.7%
JC Penney Corp. 6.000%, 05/21/18		600		600,426
PF Chang’s China, Inc. Bistro 5.250%, 06/22/19		496		502,453
The Gymboree Corp. 5.000%, 02/23/18		200		192,208
				1,295,087
Software — 0.1%
RP Crown Parent LLC 6.750%, 12/14/20		272		273,045
Telecommunications — 0.5%
Alcatel-Lucent 7.250%, 01/30/19•		199		200,576
Cricket Communications, Inc. 4.750%, 03/01/20		275		272,335
Syniverse Holdings, Inc. 5.000%, 04/23/19•		495		492,837
				965,748
TOTAL LOAN AGREEMENTS‡ (Cost $7,520,390)				7,515,037
	Number of Shares		Value†
PURCHASE OPTIONS — 0.1%
Call Option — 0.1%
US Air LLC, 01/17/15, $15.00 (Cost $182,554)		0		176,625

67

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

High Yield Bond Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		74,704	$	74,704
T. Rowe Price Reserve Investment Fund		2,010,201		2,010,201
TOTAL SHORT-TERM INVESTMENTS (Cost $2,084,905)				2,084,905
TOTAL INVESTMENTS — 100.0% (Cost $180,718,815)			$	182,988,066

‡ 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, 2013. 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.

@ 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.

^ Illiquid security. The total market value of illiquid securities at June 30, 2013 is $387,316.

• Variable Rate Security.

¤ Defaulted Security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2013 is $24,225.

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 06/30/2013††
United States	79%
Luxembourg	6
United Kingdom	3
Canada	2
Netherlands	2
Bermuda	1
Ireland	1
Other	6
Total	100%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	2,475,091	$	2,450,866	$	—	$	24,225
REAL ESTATE INVESTMENT TRUSTS		461,984		100,609		361,375		—
PREFERRED STOCKS
Auto Manufacturers		399,728		399,728		—		—
Banks		475,234		—		475,234		—
Media		132,860		—		132,860		—
Packaging and Containers		—		—		—		—
CORPORATE BONDS		169,266,602		—		169,266,602		—
LOAN AGREEMENTS		7,515,037		—		7,515,037		—
PURCHASED OPTIONS		176,625		176,625		—		—
SHORT-TERM INVESTMENTS		2,084,905		2,084,905		—		—
TOTAL INVESTMENTS	$	182,988,066	$	5,212,733	$	177,751,108	$	24,225

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 12/31/2012	$	—
Purchases		30,875
Change in Appreciation/(Depreciation)		(6,650	)
Balance as of 6/30/2013	$	24,225

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 significant 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.

68

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
AGENCY OBLIGATIONS — 3.7%
Federal Home Loan Mortgage Corporation — 1.3%
0.593%, 05/15/39•	$	6,408	$	6,442,528
0.693%, 06/15/42•		2,244		2,266,008
0.693%, 06/15/42•		3,417		3,443,985
0.573%, 07/15/42•		3,528		3,548,392
0.693%, 07/15/42•		1,865		1,883,042
0.693%, 07/15/42•		2,739		2,784,748
0.693%, 07/15/42•		1,853		1,871,748
0.643%, 08/15/42•		1,481		1,488,883
0.643%, 08/15/42•		5,713		5,759,475
0.693%, 08/15/42•		1,149		1,160,218
				30,649,027
Federal National Mortgage Association — 2.4%
0.593%, 04/25/39•		2,852		2,868,282
0.593%, 08/25/39•		5,541		5,568,593
0.743%, 03/25/42•		1,805		1,817,587
0.593%, 07/25/42•		2,605		2,618,266
0.643%, 07/25/42•		2,455		2,474,642
0.643%, 08/25/42•		2,851		2,887,795
0.693%, 08/25/42•		2,591		2,635,250
0.573%, 09/25/42•		1,474		1,482,607
0.593%, 09/25/42•		3,016		3,033,428
0.643%, 09/25/42•		5,498		5,542,287
0.643%, 09/25/42•		3,187		3,212,535
0.643%, 09/25/42•		900		907,789
0.643%, 09/25/42•		5,018		5,078,666
0.593%, 10/25/42•		5,701		5,736,676
0.593%, 10/25/42•		7,869		7,914,171
0.593%, 10/25/42•		4,436		4,462,522
				58,241,096
TOTAL AGENCY OBLIGATIONS (Cost $88,407,380)				88,890,123
ASSET BACKED SECURITIES — 0.5%
Ally Master Owner Trust 0.893%, 06/15/17•		8,755		8,775,758
Ford Credit Auto Owner Trust 2012 0.580%, 12/15/16		2,195		2,194,682
Honda Auto Receivables Owner Trust 0.560%, 05/15/16		2,135		2,131,603
TOTAL ASSET BACKED SECURITIES (Cost $13,084,903)				13,102,043
COLLATERALIZED MORTGAGE OBLIGATIONS — 0.5%
Government National Mortgage Association
0.593%, 07/16/41•		2,510		2,522,415
0.542%, 02/20/42•		2,171		2,178,690
0.593%, 03/16/42•		2,218		2,234,154
0.593%, 04/16/42•		4,102		4,132,168
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $11,021,776)				11,067,427

	Number of Shares		Value†
COMMON STOCKS — 60.8%
Advertising — 1.1%
Omnicom Group, Inc.		412,500	$	25,933,875
Aerospace & Defense — 3.8%
The Boeing Co.		93,100		9,537,164
United Technologies Corp.		881,900		81,963,786
				91,500,950
Agriculture — 1.4%
Philip Morris International, Inc.		373,300		32,335,246
Auto Manufacturers — 0.3%
General Motors Co.*		240,800		8,021,048
Auto Parts & Equipment — 3.2%
Delphi Automotive PLC		551,300		27,945,397
Johnson Controls, Inc.		367,600		13,156,404
TRW Automotive Holdings Corp.*		543,900		36,136,716
				77,238,517
Banks — 4.5%
JPMorgan Chase & Co.		262,300		13,846,817
State Street Corp.		726,400		47,368,544
U.S. Bancorp		1,284,000		46,416,600
				107,631,961
Beverages — 1.2%
PepsiCo, Inc.		343,900		28,127,581
Commercial Services — 0.2%
McGraw Hill Financial, Inc.		14,000		744,660
Tyco International Ltd.		106,900		3,522,355
				4,267,015
Computers — 1.6%
Accenture PLC, Class A		85,300		6,138,188
Cognizant Technology Solutions Corp., Class A*		169,200		10,593,612
International Business Machines Corp.		110,600		21,136,766
				37,868,566
Cosmetics & Personal Care — 1.6%
Avon Products, Inc.		219,800		4,622,394
The Procter & Gamble Co.		430,882		33,173,605
				37,795,999
Diversified Financial Services — 4.1%
Invesco Ltd.		1,676,608		53,316,134
TD Ameritrade Holding Corp.		1,804,400		43,828,876
				97,145,010
Electric — 2.3%
NRG Energy, Inc.		241,400		6,445,380
PG&E Corp.		709,100		32,427,143
Xcel Energy, Inc.		542,400		15,371,616
				54,244,139
Electronics — 4.7%
TE Connectivity Ltd.		859,125		39,124,552

69

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Flexibly Managed Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electronics — (continued)
Thermo Fisher Scientific, Inc.		875,500	$	74,093,565
				113,218,117
Food — 3.2%
General Mills, Inc.		466,528		22,640,604
Kellogg Co.		387,000		24,857,010
Nestle S.A.		434,314		28,499,859
				75,997,473
Healthcare Products — 1.0%
DENTSPLY International, Inc.		342,200		14,016,512
Henry Schein, Inc.*		107,278		10,271,869
				24,288,381
Healthcare Services — 1.5%
UnitedHealth Group, Inc.		555,400		36,367,592
Insurance — 2.5%
Marsh & McLennan Cos., Inc.		1,190,900		47,540,728
XL Group PLC		436,800		13,243,776
				60,784,504
Internet — 1.6%
Google, Inc., Class A*		43,600		38,384,132
Media — 0.7%
The Walt Disney Co.		256,700		16,210,605
Miscellaneous Manufacturing — 4.5%
Actuant Corp., Class A		322,578		10,635,397
Danaher Corp.		1,536,978		97,290,707
				107,926,104
Oil & Gas — 2.3%
Anadarko Petroleum Corp.		93,700		8,051,641
Apache Corp.		202,700		16,992,341
Chevron Corp.		50,700		5,999,838
Exxon Mobil Corp.		166,100		15,007,135
Pioneer Natural Resources Co.		12,200		1,765,950
Range Resources Corp.		87,500		6,765,500
				54,582,405
Pharmaceuticals — 3.1%
McKesson Corp.		89,100		10,201,950
Pfizer, Inc.		1,985,543		55,615,051
Zoetis, Inc.		226,287		6,990,001
				72,807,002
Pipelines — 0.6%
The Williams Cos., Inc.		439,870		14,282,579
Retail — 4.5%
AutoZone, Inc.*		82,900		35,123,901
Dollar General Corp.*		372,300		18,775,089
Dollar Tree, Inc.*		129,700		6,593,948
Kohl’s Corp.		33,700		1,702,187
L Brands, Inc.		343,800		16,932,150
Lowe’s Cos., Inc.		684,100		27,979,690
				107,106,965

	Number of Shares		Value†
Semiconductors — 2.3%
NXP Semiconductors N.V.*		356,200	$	11,035,076
Texas Instruments, Inc.		1,268,700		44,239,569
				55,274,645
Software — 3.0%
Fiserv, Inc.*		632,700		55,304,307
Oracle Corp.		567,000		17,418,240
				72,722,547
TOTAL COMMON STOCKS (Cost $1,082,307,764)				1,452,062,958
PREFERRED STOCKS — 0.7%
Banks — 0.1%
U.S. Bancorp		90,000		2,466,900
U.S. Bancorp Series F		71,000		1,995,100
				4,462,000
Diversified Financial Services — 0.4%
AMG Capital Trust I CONV		151,250		9,254,610
Electric — 0.1%
SCE Trust I		70,000		1,652,000
Food — 0.1%
Heinz Finance Co. (H.J.) CONV 144A @,^		17		1,721,782
TOTAL PREFERRED STOCKS (Cost $14,550,267)				17,090,392
	Par (000)		Value†
CORPORATE BONDS — 16.0%
Advertising — 0.2%
Lamar Media Corp. 9.750%, 04/01/14	$	4,230		4,441,500
Aerospace & Defense — 0.2%
United Technologies Corp. 0.775%, 06/01/15•		4,725		4,753,440
Agriculture — 0.0%
Reynolds American, Inc. 1.050%, 10/30/15		300		299,916
Airlines — 1.0%
American Airlines Pass Through Trust 2009-1A 10.375%, 07/02/19		360		381,245
Continental Airlines 2009-1 Class A Pass Through Trust 9.000%, 07/08/16		830		952,568
Continental Airlines 2009-2 Class A Pass Through Trust 7.250%, 11/10/19		698		816,793
Continental Airlines 2012-1 Class A Pass Through Trust 4.150%, 04/11/24		2,210		2,165,800

70

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Airlines — (continued)
Continental Airlines 2012-1 Class B Pass Through Trust 6.250%, 04/11/20	$	465	$	477,787
Continental Airlines, Inc. 6.750%, 09/15/15 144A @		890		914,475
Delta Air Lines 2011-1, Pass Through Trust 5.300%, 04/15/19		575		617,788
Delta Air Lines, Inc. 7.750%, 12/17/19		636		738,953
Hawaiian Airlines 2013-1 Class A Pass Through Certificates 3.900%, 01/15/26		1,815		1,715,175
United Airlines, Inc. 4.500%, 01/15/15		6,074		10,618,111
US Airways 2010-1 Class A, Pass Through Trust 6.250%, 04/22/23		2,151		2,274,770
US Airways 2010-1 Class B, Pass Through Trust^ 8.500%, 04/22/17		285		300,186
US Airways 2012-2 Class A Pass Through Trust 4.625%, 06/03/25		295		290,575
US Airways 2012-2 Class B Pass Through Trust 6.750%, 06/03/21		545		566,800
US Airways 2013-1 Class A Pass Through Trust 5.375%, 11/15/21		5		4,912
3.950%, 11/15/25		5		4,813
				22,840,751
Auto Parts & Equipment — 0.4%
Delphi Corp.
5.875%, 05/15/19		5,500		5,843,750
6.125%, 05/15/21		1,325		1,444,250
Schaeffler Finance BV
7.750%, 02/15/17 144A @		1,250		1,381,250
8.500%, 02/15/19 144A @		1,425		1,588,875
				10,258,125
Banks — 0.3%
CIT Group, Inc. 5.250%, 04/01/14 144A @,^		475		482,125
KFW 0.500%, 04/19/16		6,658		6,605,848
Regions Bank 7.500%, 05/15/18		90		104,977
Synovus Financial Corp. 5.125%, 06/15/17		105		103,162
				7,296,112
Beverages — 0.8%
Anheuser-Busch InBev Finance, Inc. 0.800%, 01/15/16		5,500		5,469,227

	Par (000)		Value†
Beverages — (continued)
Diageo Capital PLC 0.625%, 04/29/16	$	2,150	$	2,129,734
Heineken NV 0.800%, 10/01/15 144A @,^		1,515		1,507,213
PepsiCo, Inc.
0.483%, 02/26/16•		4,440		4,446,993
0.700%, 02/26/16		2,100		2,083,889
The Coca-Cola Co. 0.253%, 03/05/15•		3,000		3,000,030
				18,637,086
Computers — 0.7%
Apple, Inc.
0.323%, 05/03/16•		7,920		7,913,276
0.523%, 05/03/18•		3,150		3,136,499
International Business Machines Corp. 0.450%, 05/06/16		5,900		5,816,775
				16,866,550
Diversified Financial Services — 3.9%
American Honda Finance Corp.
0.353%, 08/02/13 144A @,•,^		1,935		1,935,306
0.405%, 04/08/14 144A @,•,^		900		900,735
0.375%, 11/13/14 144A @,^		1,350		1,349,444
1.000%, 08/11/15 144A @,^		2,585		2,589,183
0.648%, 05/26/16 144A @,^		4,775		4,767,441
Caterpillar Financial Services Corp.
0.700%, 11/06/15		1,585		1,581,616
0.513%, 02/26/16•		1,590		1,588,785
1.250%, 11/06/17		2,345		2,285,331
CNH Capital LLC
6.250%, 11/01/16		700		745,500
3.625%, 04/15/18 144A @		1,100		1,047,750
E*TRADE Financial Corp.
6.750%, 06/01/16		550		565,125
6.000%, 11/15/17		575		580,750
6.375%, 11/15/19		2,350		2,385,250
Ford Motor Credit Co. LLC
7.000%, 10/01/13		2,000		2,029,426
8.000%, 06/01/14		2,100		2,221,036
3.875%, 01/15/15		4,530		4,669,270
2.750%, 05/15/15		2,300		2,332,177
2.500%, 01/15/16		2,190		2,209,099
1.525%, 05/09/16•		3,755		3,781,251
4.250%, 02/03/17		1,340		1,400,067
6.625%, 08/15/17		1,675		1,895,753
5.000%, 05/15/18		1,800		1,919,563
International Lease Finance Corp.
6.500%, 09/01/14 144A @		8,130		8,455,200
2.224%, 06/15/16•		2,905		2,883,213
Janus Capital Group, Inc. STEP 6.700%, 06/15/17		1,850		2,065,669
John Deere Capital Corp.
0.380%, 10/08/14•		3,845		3,847,972
0.404%, 01/12/15•		4,475		4,473,009
0.700%, 09/04/15		1,800		1,796,823
0.750%, 01/22/16		1,845		1,834,127

71

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Diversified Financial Services — (continued)
Legg Mason, Inc. 5.500%, 05/21/19	$	4,160	$	4,286,743
PACCAR Financial Corp.
0.404%, 05/05/15•		1,085		1,084,403
0.545%, 02/08/16•		480		481,867
0.750%, 05/16/16		900		886,995
Toyota Motor Credit Corp.
0.353%, 08/22/14•		2,100		2,101,237
0.446%, 01/23/15•		2,305		2,305,747
0.424%, 03/10/15•		2,250		2,248,137
0.564%, 05/17/16•		5,300		5,290,926
0.800%, 05/17/16		3,425		3,407,163
				92,229,089
Electric — 0.4%
Calpine Corp. 7.500%, 02/15/21 144A @		1,145		1,222,287
CMS Energy Corp.
6.550%, 07/17/17		895		1,036,677
8.750%, 06/15/19		415		535,422
Duke Energy Florida, Inc. 0.650%, 11/15/15		1,695		1,685,406
NSTAR Electric Co. 0.514%, 05/17/16•		1,950		1,948,879
Otter Tail Corp. 9.000%, 12/15/16^		890		1,032,400
Xcel Energy, Inc. 0.750%, 05/09/16		2,160		2,127,203
				9,588,274
Food — 0.3%
Campbell Soup Co. 0.574%, 08/01/14•		2,630		2,630,923
General Mills, Inc.
0.576%, 01/29/16•		1,975		1,972,522
0.875%, 01/29/16		820		815,243
Kellogg Co. 0.505%, 02/13/15•		2,080		2,080,705
				7,499,393
Healthcare Products — 0.2%
Baxter International, Inc.
0.445%, 12/11/14•		2,715		2,714,202
0.950%, 06/01/16		1,660		1,652,208
				4,366,410
Healthcare Services — 0.1%
Fresenius Medical Care U.S. Finance II, Inc.
5.625%, 07/31/19 144A @		750		780,000
5.875%, 01/31/22 144A @		425		447,313
				1,227,313
Household Products & Wares — 0.0%
Kimberly-Clark Corp. 0.394%, 05/15/16•		1,110		1,110,942

	Par (000)		Value†
Internet — 0.3%
Amazon.Com, Inc. 0.650%, 11/27/15	$	7,505	$	7,481,457
Machinery — Diversified — 0.0%
Xylem, Inc. 4.875%, 10/01/21		145		153,950
Media — 0.5%
CCO Holdings LLC 7.250%, 10/30/17		850		902,063
NBCuniversal Enterprise, Inc.
0.817%, 04/15/16 144A @,•,^		2,655		2,662,877
0.965%, 04/15/18 144A @,•,^		1,140		1,149,923
The Walt Disney Co.
0.265%, 02/11/15•		4,135		4,131,766
0.450%, 12/01/15		1,475		1,468,230
Unitymedia Hessen GmbH & Co. KG
8.125%, 12/01/17 144A @,^		664		907,671
7.500%, 03/15/19 144A @,^		575		605,188
7.500%, 03/15/19 144A @		860		1,188,536
				13,016,254
Metal Fabricate/Hardware — 0.1%
Precision Castparts Corp. 0.700%, 12/20/15		1,775		1,764,556
Miscellaneous Manufacturing — 0.0%
Amsted Industries, Inc. 8.125%, 03/15/18 144A @		625		659,375
Oil & Gas — 1.9%
Concho Resources, Inc.
5.500%, 10/01/22		2,175		2,153,250
5.500%, 04/01/23		4,300		4,235,500
EQT Corp.
6.500%, 04/01/18		1,620		1,837,265
8.125%, 06/01/19		1,754		2,138,394
4.875%, 11/15/21		8,005		8,235,448
Laredo Petroleum, Inc.
9.500%, 02/15/19		850		935,000
7.375%, 05/01/22		500		525,000
Marathon Oil Corp. 0.900%, 11/01/15		395		392,808
QEP Resources, Inc. 6.800%, 03/01/20		265		292,825
Range Resources Corp.
8.000%, 05/15/19		2,250		2,396,250
5.750%, 06/01/21		1,250		1,287,500
5.000%, 08/15/22		5,775		5,645,062
5.000%, 03/15/23		2,600		2,541,500
Shell International Finance BV 0.625%, 12/04/15		3,100		3,096,497
SM Energy Co. 6.500%, 01/01/23		1,200		1,260,000
Statoil ASA 0.565%, 05/15/18•		1,745		1,745,850

72

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Oil & Gas — (continued)
Total Capital Canada Ltd. 0.657%, 01/15/16•	$	3,550	$	3,569,703
Total Capital International SA 0.750%, 01/25/16		2,775		2,753,019
				45,040,871
Packaging and Containers — 0.2%
Ball Corp. 7.375%, 09/01/19		1,250		1,350,000
Rexam PLC 6.750%, 06/29/67•		1,700		2,268,112
				3,618,112
Pharmaceuticals — 1.3%
Merck & Co., Inc.
0.464%, 05/18/16•		5,315		5,314,277
0.700%, 05/18/16		6,900		6,852,294
Pfizer, Inc.
0.900%, 01/15/17		6,825		6,749,038
0.575%, 06/15/18•		9,700		9,728,528
Takeda Pharmaceutical Co. Ltd. 1.031%, 03/17/15 144A @,^		1,820		1,829,817
Zoetis, Inc.
1.150%, 02/01/16 144A @,^		795		792,299
1.875%, 02/01/18 144A @,^		525		513,949
				31,780,202
Pipelines — 0.3%
Markwest Energy Partners LP 4.500%, 07/15/23		3,350		3,065,250
ONEOK Partners LP 2.000%, 10/01/17		830		816,248
TransCanada PipeLines Ltd. 0.750%, 01/15/16		3,050		3,015,529
				6,897,027
Real Estate — 0.1%
Host Hotels & Resorts LP
6.750%, 06/01/16		105		106,554
5.875%, 06/15/19		1,800		1,935,176
				2,041,730
Real Estate Investment Trusts — 0.0%
American Tower Corp. 4.625%, 04/01/15		200		211,351
Retail — 0.8%
Costco Wholesale Corp. 0.650%, 12/07/15		2,605		2,599,858
Dollar General Corp.
4.125%, 07/15/17		805		849,099
1.875%, 04/15/18		2,390		2,305,937
Rite Aid Corp. 8.000%, 08/15/20		3,700		4,097,750
Suburban Propane Partners LP/Suburban Energy Finance Corp. 7.500%, 10/01/18		75		78,750

	Par (000)		Value†
Retail — (continued)
The Home Depot, Inc. 5.400%, 03/01/16	$	1,000	$	1,114,286
Wal-Mart Stores, Inc. 0.600%, 04/11/16		4,340		4,311,004
Walgreen Co.
0.772%, 03/13/14•		1,840		1,841,724
1.000%, 03/13/15		1,840		1,845,800
				19,044,208
Semiconductors — 0.1%
NXP BV
5.750%, 02/15/21 144A @		1,275		1,290,937
5.750%, 03/15/23 144A @		1,200		1,209,000
				2,499,937
Software — 0.1%
Autodesk, Inc. 1.950%, 12/15/17		1,760		1,717,091
Telecommunications — 1.8%
AT&T, Inc.
0.800%, 12/01/15		4,435		4,414,741
0.660%, 02/12/16•		5,400		5,370,214
0.900%, 02/12/16		2,200		2,183,416
British Telecommunications PLC
1.397%, 12/20/13•		1,630		1,638,078
2.000%, 06/22/15		1,110		1,131,764
Cricket Communications, Inc. 7.750%, 10/15/20		1,470		1,411,200
Crown Castle International Corp. 7.125%, 11/01/19		2,840		3,031,700
Matterhorn Mobile S.A.
5.395%, 05/15/19 144A @,•,^		375		398,205
6.750%, 05/15/19 144A @		930		1,004,288
SBA Telecommunications, Inc. 8.250%, 08/15/19		133		143,973
Sprint Capital Corp. 6.900%, 05/01/19		300		312,000
Sprint Nextel Corp.
9.000%, 11/15/18 144A @		6,790		7,944,300
11.500%, 11/15/21		450		598,500
UPCB Finance III Ltd. 6.625%, 07/01/20 144A @		1,790		1,852,650
UPCB Finance V Ltd. 7.250%, 11/15/21 144A @		3,980		4,208,850
UPCB Finance VI Ltd. 6.875%, 01/15/22 144A @		3,700		3,829,500
Verizon Communications, Inc. 0.474%, 03/06/15 144A @,•,^		4,450		4,442,635
				43,916,014
TOTAL CORPORATE BONDS (Cost $374,864,997)				381,257,036
LOAN AGREEMENTS — 6.8%‡
Banks — 0.9%
Intelsat S.A. 4.250%, 04/02/18		21,890		21,890,000

73

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Flexibly Managed Fund

	Par (000)		Value†
LOAN AGREEMENTS — (continued)
Energy-Alternate Sources — 0.1%
Terra-Gen Finance Co., LLC 6.500%, 06/22/17•,^	$	1,176	$	1,174,329
Entertainment — 0.2%
Kasima LLC 3.250%, 05/17/21		775		771,125
Peninsula Gaming LLC 4.250%, 11/20/17•		3,781		3,772,493
				4,543,618
Food — 1.9%
H.J. Heinz Co. 3.500%, 06/05/20		43,125		43,075,837
Pinnacle Foods Finance LLC 3.250%, 04/29/20		1,995		1,980,038
				45,055,875
Healthcare Services — 0.1%
DaVita, Inc. 4.000%, 11/01/19•		1,318		1,317,900
HCA, Inc. 3.034%, 03/31/17		1,150		1,143,537
				2,461,437
Media — 0.2%
CCO Holdings LLC 2.694%, 09/06/14•		500		499,250
Cequel Communications LLC 3.500%, 02/14/19		1,396		1,383,589
Charter Communications Operating LLC
0.000%, 03/08/20		2,125		2,096,780
3.000%, 12/31/20		1,483		1,468,466
				5,448,085
Retail — 2.3%
Dunkin’ Brands, Inc. 3.753%, 02/14/20•		49,990		49,802,801
Wendy’s International, Inc. 3.250%, 05/15/19		5,600		5,575,024
				55,377,825
Telecommunications — 1.1%
Crown Castle Operating Co. 3.250%, 01/31/19		7,791		7,732,188
SBA Senior Finance II, LLC. 3.750%, 06/30/18•		343		343,619
Telesat Canada, Inc.
0.000%, 03/28/17•		804		761,009
3.500%, 03/28/19•		5,515		5,510,871
4.430%, 03/28/19^		3,750		3,556,741
UPC Financing Partnership 3.250%, 06/30/21		8,775		8,722,877
				26,627,305
TOTAL LOAN AGREEMENTS (Cost $163,280,980)				162,578,474

	Number of Shares			Value†
SHORT-TERM INVESTMENTS — 11.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		1,486,580		$	1,486,580
T. Rowe Price Reserve Investment Fund		260,309,187			260,309,187
TOTAL SHORT-TERM INVESTMENTS (Cost $261,795,767)					261,795,767
TOTAL INVESTMENTS — 99.5% (Cost $2,009,319,733)				$	2,387,844,220
	Number of Contracts			Value†
WRITTEN OPTIONS
Call Options
Accent $80.00, 01/18/14		(297	)		(53,460	)
Accent $82.5, 01/18/14		(426	)		(53,250	)
Accent $85.00, 01/18/14		(130	)		(11,700	)
Apache, $90.00, 01/18/14		(257	)		(102,800	)
Chevron, $125, 01/18/14		(169	)		(55,770	)
Chevron, $130, 01/18/14		(169	)		(32,279	)
Chevron, $135, 01/18/14		(169	)		(18,083	)
Disney $70.00, 01/18/14		(716	)		(138,904	)
Disney, $55.00, 01/18/14		(596	)		(643,680	)
Disney, $57.50, 01/18/14		(596	)		(521,500	)
Exxon $92.5, 01/18/14		(831	)		(241,821	)
Exxon $95.00, 01/18/14		(830	)		(169,320	)
GM $27.00, 01/18/14		(1,559	)		(1,114,685	)
GM $30.00, 01/18/14		(779	)		(389,500	)
Google, $850.00, 01/18/14		(60	)		(477,000	)
IBM, $200.00, 01/18/14		(131	)		(93,010	)
IBM, $210.00, 01/18/14		(131	)		(53,055	)
IBM, $230.00, 01/18/14		(844	)		(84,400	)
JPM $45.00, 01/18/14		(952	)		(828,240	)
JPM, $55.00, 01/18/14		(1,671	)		(391,014	)
KSS, $47.00, 01/18/14		(192	)		(107,520	)
KSS, $50.00, 01/18/14		(144	)		(58,176	)
Lowes $42.00, 10/19/13		(573	)		(93,972	)
Lowes $45.00, 01/18/14		(1,145	)		(148,850	)
Lowes, $46.00, 01/18 /4		(286	)		(31,746	)
NRG Energy, $25.00, 01/18/14		(482	)		(154,240	)
NRG, $27.00, 01/18/14		(482	)		(108,450	)
Oracle $32.00, 01/1814		(2,125	)		(318,750	)
Oracle $33.00, 01/18/14		(2,482	)		(280,466	)
Oracle $35.00, 01/18/14		(1,063	)		(65,906	)
PepsiCo, Inc, $75.00, 01/18/14		(1,019	)		(810,105	)
PepsiCo, Inc, $77.50, 01/18/14		(870	)		(530,700	)
Pfizer, $27.00, 01/18/14		(2,751	)		(563,955	)
Philip Morris $105, 01/18/14		(241	)		(9,399	)
Philip Morris Callopt1, $97.5, 01/18/14		(472	)		(51,448	)
Philip Morris, $ 100.00, 01/18/14		(713	)		(54,901	)
Philip Morris, $95.00, 01/18/14		(232	)		(35,728	)
Philip Morris, $97.50, 01/18/14		(232	)		(25,288	)
Procter and Gamble Co., $75.00, 01/18/14		(1,230	)		(639,600	)
UnitedHealth Group, Inc. $65.00, 01/18/14		(423	)		(215,730	)
UnitedHealth Group, Inc. $65.00, 09/21/13		(462	)		(147,840	)

74

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Flexibly Managed Fund

	Number of Contracts			Value†
WRITTEN OPTIONS — (continued)
Call Options — (continued)
USB $35.00, 06/22/13		(2,211	)	$	(552,750	)
USB, $37.00, 01/18/14		(3,914	)		(559,702	)
Williams $35.00, 01/18/14		(288	)		(46,080	)
Williams $40.00, 01/18/14		(751	)		(39,803	)
Williams $40.00, 08/07/13		(751	)		(6,008	)
Williams, $40.00, 01/18/14		(890	)		(47,170	)
Williams, $40.00, 08/17/13		(600	)		(4,800	)
Zoetis, $35.00, 10/19/13		(343	)		(19,208	)
TOTAL WRITTEN OPTIONS (Premiums $(6,845,906))					(11,201,762	)

† See Security Valuation Note.

* Non-income producing 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.

• Variable Rate Security.

^ Illiquid security. The total market value of illiquid securities at June 30, 2013 is $34,619,449.

‡ 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, 2013. 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.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	92	%
Switzerland	3
United Kingdom	2
Bermuda	1
Netherlands	1
Other	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	1,452,062,958	$	1,423,563,099	$	28,499,859	$	—
PREFERRED STOCKS		17,090,392		17,090,392		—		—
AGENCY OBLIGATIONS		88,890,123		—		88,890,123		—
ASSET BACKED SECURITIES		13,102,043		—		13,102,043		—
COLLATERALIZED MORTGAGE OBLIGATIONS		11,067,427		—		11,067,427		—
CORPORATE BONDS		381,257,036		—		381,257,036		—
LOAN AGREEMENTS		162,578,474		—		162,578,474		—
SHORT-TERM INVESTMENTS		261,795,767		261,795,767		—		—
TOTAL INVESTMENTS	$	2,387,844,220	$	1,702,449,258	$	685,394,962	$	—

LIABILITIES TABLE
Description	Total Market Value at 06/30/2013			Level 1 Quoted Price			Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
WRITTEN OPTIONS	$	(11,201,762	)	$	(5,035,445	)	$	(6,166,317	)	$	—
TOTAL LIABILITIES	$	(11,201,762	)	$	(5,035,445	)	$	(6,166,317	)	$	—

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 these financial statements.

75

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Balanced Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 59.8%
Penn Series Index 500 Fund* (Cost $27,356,551)		3,723,409	$	45,239,423
AFFILIATED FIXED INCOME FUNDS — 39.9%
Penn Series Quality Bond Fund* (Cost $26,312,583)		2,367,317		30,159,615
SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio -Institutional Shares (Cost $241,334)		241,334		241,334
TOTAL INVESTMENTS — 100.0% (Cost $53,910,468)			$	75,640,372

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	45,239,423	$	45,239,423	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		30,159,615		30,159,615		—		—
SHORT-TERM INVESTMENTS		241,334		241,334		—		—
TOTAL INVESTMENTS	$	75,640,372	$	75,640,372	$	—	$	—

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 these financial statements.

76

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Growth Stock Fund

	Number of Shares		Value†
COMMON STOCKS — 96.9%
Aerospace & Defense — 0.8%
The Boeing Co.		16,700	$	1,710,748
Airlines — 0.8%
Delta Air Lines, Inc.*		33,400		624,914
United Continental Holdings, Inc.*		34,500		1,079,505
				1,704,419
Apparel — 1.7%
NIKE, Inc., Class B		20,500		1,305,440
Prada S.p.A.		95,800		863,902
Ralph Lauren Corp.		4,000		694,960
Under Armour, Inc., Class A*		17,400		1,038,954
				3,903,256
Auto Manufacturers — 0.8%
Tesla Motors, Inc.*		17,500		1,880,025
Banks — 0.4%
JPMorgan Chase & Co.		17,200		907,988
Beverages — 2.9%
Anheuser-Busch InBev N.V.		9,531		858,102
Green Mountain Coffee Roasters, Inc.*		19,900		1,493,694
Monster Beverage Corp.*		13,700		832,549
PepsiCo, Inc.		17,500		1,431,325
Pernod-Ricard S.A.		6,704		744,099
The Coca-Cola Co.		30,500		1,223,355
				6,583,124
Biotechnology — 6.3%
Alexion Pharmaceuticals, Inc.*		13,700		1,263,688
Biogen Idec, Inc.*		17,900		3,852,080
Celgene Corp.*		16,300		1,905,633
Gilead Sciences, Inc.*		101,500		5,197,815
Regeneron Pharmaceuticals, Inc.*		4,800		1,079,424
Vertex Pharmaceuticals, Inc.*		10,300		822,661
				14,121,301
Building Materials — 0.3%
Martin Marietta Materials, Inc.		6,300		620,046
Chemicals — 3.5%
Ecolab, Inc.		26,500		2,257,535
FMC Corp.		13,600		830,416
Praxair, Inc.		20,400		2,349,264
The Sherwin-Williams Co.		13,700		2,419,420
				7,856,635
Commercial Services — 2.9%
Alliance Data Systems Corp.*		4,500		814,635
Mastercard, Inc., Class A		10,000		5,745,000
				6,559,635
Computers — 2.5%
Accenture PLC, Class A		25,700		1,849,372
Apple, Inc.		5,600		2,218,048
Cognizant Technology Solutions Corp., Class A*		23,400		1,465,074
				5,532,494

	Number of Shares		Value†
Cosmetics & Personal Care — 1.0%
Colgate-Palmolive Co.		17,600	$	1,008,304
The Procter & Gamble Co.		16,800		1,293,432
				2,301,736
Distribution & Wholesale — 1.5%
Fastenal Co.		57,600		2,640,960
W.W. Grainger, Inc.		2,600		655,668
				3,296,628
Diversified Financial Services — 6.3%
Affiliated Managers Group, Inc.*		3,600		590,184
American Express Co.		36,500		2,728,740
Franklin Resources, Inc.		8,800		1,196,976
IntercontinentalExchange, Inc.*		4,500		799,920
Invesco Ltd.		59,200		1,882,560
TD Ameritrade Holding Corp.		25,300		614,537
Visa, Inc., Class A		34,100		6,231,775
				14,044,692
Food — 1.4%
Nestle S.A.		14,110		925,904
Whole Foods Market, Inc.		41,300		2,126,124
				3,052,028
Healthcare Products — 1.1%
Edwards Lifesciences Corp.*		9,800		658,560
IDEXX Laboratories Inc.*		12,500		1,122,250
Stryker Corp.		10,900		705,012
				2,485,822
Healthcare Services — 0.5%
HCA Holdings, Inc.*		4,500		162,270
UnitedHealth Group, Inc.		14,300		936,364
				1,098,634
Home Builders — 0.9%
D.R. Horton, Inc.		46,900		998,032
Lennar Corp., Class A		27,700		998,308
				1,996,340
Internet — 18.8%
Amazon.com, Inc.*		36,100		10,024,609
Baidu, Inc. ADR*		12,300		1,162,719
Ctrip.com International Ltd. ADR*		17,900		584,077
eBay, Inc.*		98,400		5,089,248
Google, Inc., Class A*		14,900		13,117,513
LinkedIn Corp., Class A*		12,500		2,228,750
Netflix, Inc.*		9,700		2,047,573
priceline.com, Inc.*		7,000		5,789,910
Tencent Holdings Ltd.		15,600		609,137
TripAdvisor, Inc.*		20,800		1,266,096
Twitter, Inc.*^~		7,697		139,931
				42,059,563
Leisure Time — 0.8%
Carnival PLC		31,905		1,109,019
Harley-Davidson, Inc.		13,300		729,106
				1,838,125

77

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Growth Stock Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Lodging — 2.4%
Las Vegas Sands Corp.		42,600	$	2,254,818
Marriott International, Inc., Class A		21,397		863,797
MGM Resorts International*		56,300		832,114
Starwood Hotels & Resorts Worldwide, Inc.		24,000		1,516,560
				5,467,289
Machinery — Diversified — 1.1%
Roper Industries, Inc.		19,300		2,397,446
Media — 2.0%
Charter Communications, Inc., Class A*		5,900		730,715
Discovery Communications, Inc., Class C*		15,100		1,051,866
News Corp.*		40,500		1,174,095
The Walt Disney Co.		22,500		1,420,875
				4,377,551
Metal Fabricate/Hardware — 2.2%
Precision Castparts Corp.		21,700		4,904,417
Miscellaneous Manufacturing — 2.2%
Danaher Corp.		79,400		5,026,020
Oil & Gas — 3.7%
Cabot Oil & Gas Corp.		17,300		1,228,646
Concho Resources, Inc.*		10,000		837,200
EOG Resources, Inc.		7,900		1,040,272
EQT Corp.		13,100		1,039,747
Phillips 66		10,900		642,119
Pioneer Natural Resources Co.		10,400		1,505,400
Range Resources Corp.		25,700		1,987,124
				8,280,508
Oil & Gas Services — 1.2%
FMC Technologies, Inc.*		26,900		1,497,792
Schlumberger Ltd.		18,300		1,311,378
				2,809,170
Pharmaceuticals — 3.5%
Allergan, Inc.		5,600		471,744
Catamaran Corp.*		8,802		428,834
McKesson Corp.		24,400		2,793,800
Novo Nordisk A/S, B Shares		7,234		1,124,615
Onyx Pharmaceuticals, Inc.*		6,200		538,284
Pharmacyclics, Inc.*		7,400		588,078
Valeant Pharmaceuticals International, Inc.*		21,100		1,816,288
				7,761,643
Retail — 11.2%
AutoZone, Inc.*		4,800		2,033,712
CarMax, Inc.*		33,800		1,560,208
Chipotle Mexican Grill, Inc.*		5,900		2,149,665
Costco Wholesale Corp.		15,300		1,691,721
CVS Caremark Corp.		39,800		2,275,764
Dollar Tree, Inc.*		12,200		620,248
Lowe’s Cos., Inc.		30,900		1,263,810
Lululemon Athletica, Inc.*		27,600		1,808,352
Panera Bread Co., Class A*		4,400		818,136
Ross Stores, Inc.		16,900		1,095,289

	Number of Shares		Value†
Retail — (continued)
Starbucks Corp.		57,100	$	3,739,479
The Home Depot, Inc.		58,100		4,501,007
Tractor Supply Co.		12,800		1,505,408
				25,062,799
Semiconductors — 1.6%
Broadcom Corp., Class A		20,800		702,208
QUALCOMM, Inc.		48,500		2,962,380
				3,664,588
Software — 3.7%
Akamai Technologies, Inc.*		22,200		944,610
Autodesk, Inc.*		14,400		488,736
Fiserv, Inc.*		10,300		900,323
NetSuite, Inc.*		7,500		688,050
Red Hat, Inc.*		33,200		1,587,624
Salesforce.com, Inc.*		57,900		2,210,622
ServiceNow, Inc.*		18,400		743,176
Workday, Inc., Class A*		10,300		660,127
				8,223,268
Telecommunications — 3.6%
Crown Castle International Corp.*		84,500		6,116,955
Juniper Networks, Inc.*		56,800		1,096,808
SBA Communications Corp., Class A*		12,400		919,088
				8,132,851
Transportation — 3.3%
J.B. Hunt Transport Services, Inc.		13,500		975,240
Kansas City Southern		24,200		2,564,232
Union Pacific Corp.		13,900		2,144,492
United Parcel Service, Inc., Class B		18,600		1,608,528
				7,292,492
TOTAL COMMON STOCKS (Cost $156,807,708)				216,953,281
PREFERRED STOCKS — 0.2%
Internet — 0.2%
Livingsocial, Series F CONV*^~		15,066		16,874
Twitter, Inc. Series A CONV*^~		20		364
Twitter, Inc. Series B CONV*^~		312		5,672
Twitter, Inc. Series B CONV*^~		5,772		104,935
Twitter, Inc. Series C CONV*^~		80		1,454
Twitter, Inc. Series C CONV*^~		1,566		28,470
Twitter, Inc. Series D CONV*^~		2,954		53,704
Twitter, Inc. Series F CONV*^~		1,040		18,907
Twitter, Inc. Series G-2 CONV*^~		12,129		220,505
TOTAL PREFERRED STOCKS (Cost $499,276)				450,885
REAL ESTATE INVESTMENT TRUSTS — 2.0%
Diversified — 2.0%
American Tower Corp. (Cost $2,509,649)		61,200		4,478,004

78

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Growth Stock Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 0.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		1,967,647	$	1,967,647
T. Rowe Price Reserve Investment Fund		1,008		1,008
TOTAL SHORT-TERM INVESTMENTS (Cost $1,968,655)				1,968,655
TOTAL INVESTMENTS — 100.0% (Cost $161,785,288)			$	223,850,825

† See Security Valuation Note.

* Non-income producing security.

^ Illiquid security. The total market value of illiquid securities at June 30, 2013 is $590,816.

~ Fair valued security. The total market value of fair valued securities at June 30, 2013 is $590,816.

ADR — American Depository Receipt.

CONV — Convertible Security.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	94	%
Canada	1
China	1
Denmark	1
France	1
Ireland	1
Other	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Aerospace & Defense	$	1,710,748	$	1,710,748	$	—	$	—
Airlines		1,704,419		1,704,419		—		—
Apparel		3,903,256		3,039,354		863,902		—
Auto Manufacturers		1,880,025		1,880,025		—		—
Banks		907,988		907,988		—		—
Beverages		6,583,124		4,980,923		1,602,201		—
Biotechnology		14,121,301		14,121,301		—		—
Building Materials		620,046		620,046		—		—
Chemicals		7,856,635		7,856,635		—		—
Commercial Services		6,559,635		6,559,635		—		—
Computers		5,532,494		5,532,494		—		—
Cosmetics & Personal Care		2,301,736		2,301,736		—		—
Distribution & Wholesale		3,296,628		3,296,628		—		—

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS — (continued)
Diversified Financial Services	$	14,044,692	$	14,044,692	$	—	$	—
Food		3,052,028		2,126,124		925,904		—
Healthcare Products		2,485,822		2,485,822		—		—
Healthcare Services		1,098,634		1,098,634		—		—
Home Builders		1,996,340		1,996,340		—		—
Internet		42,059,563		41,310,495		609,137		139,931
Leisure Time		1,838,125		729,106		1,109,019		—
Lodging		5,467,289		5,467,289		—		—
Machinery — Diversified		2,397,446		2,397,446		—		—
Media		4,377,551		4,377,551		—		—
Metal Fabricate/Hardware		4,904,417		4,904,417		—		—
Miscellaneous Manufacturing		5,026,020		5,026,020		—		—
Oil & Gas		8,280,508		8,280,508		—		—
Oil & Gas Services		2,809,170		2,809,170		—		—
Pharmaceuticals		7,761,643		6,637,028		1,124,615		—
Retail		25,062,799		25,062,799		—		—
Semiconductors		3,664,588		3,664,588		—		—
Software		8,223,268		8,223,268		—		—
Telecommunications		8,132,851		8,132,851		—		—
Transportation		7,292,492		7,292,492		—		—
PREFERRED STOCKS		450,885		—		—		450,885
REAL ESTATE INVESTMENT TRUSTS		4,478,004		4,478,004		—		—
SHORT-TERM INVESTMENTS		1,968,655		1,968,655		—		—
TOTAL INVESTMENTS	$	223,850,825	$	217,025,231	$	6,234,778	$	590,816

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 12/31/2012	$	429,019
Change in Appreciation/(Depreciation)		161,797
Balance as of 6/30/2013	$	590,816

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 these financial statements.

79

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 100.0%
Advertising — 0.5%
Omnicom Group, Inc.		2,320	$	145,858
Aerospace & Defense — 3.8%
United Technologies Corp.		11,590		1,077,175
Apparel — 3.2%
LVMH Moet Hennessy Louis Vuitton S.A.		3,263		529,760
NIKE, Inc., Class B		6,020		383,353
				913,113
Auto Parts & Equipment — 1.1%
Johnson Controls, Inc.		8,450		302,426
Beverages — 2.7%
PepsiCo, Inc.		5,130		419,583
Pernod-Ricard S.A.		3,074		341,193
				760,776
Chemicals — 2.0%
Monsanto Co.		1,712		169,145
Praxair, Inc.		3,586		412,964
				582,109
Commercial Services — 2.0%
Mastercard, Inc., Class A		693		398,129
Verisk Analytics, Inc., Class A*		3,040		181,488
				579,617
Computers — 8.7%
Accenture PLC, Class A		11,550		831,139
Apple, Inc.		884		350,135
Cognizant Technology Solutions Corp., Class A*		2,560		160,281
EMC Corp.		32,210		760,800
International Business Machines Corp.		2,079		397,318
				2,499,673
Cosmetics & Personal Care — 6.4%
Colgate-Palmolive Co.		15,939		913,146
The Procter & Gamble Co.		12,090		930,809
				1,843,955
Distribution & Wholesale — 2.0%
W.W. Grainger, Inc.		2,267		571,692
Diversified Financial Services — 6.3%
CME Group, Inc.		2,320		176,274
Franklin Resources, Inc.		3,522		479,062
The Charles Schwab Corp.		8,740		185,550
Visa, Inc., Class A		5,276		964,189
				1,805,075
Electronics — 8.7%
Amphenol Corp., Class A		2,780		216,673
Mettler-Toledo International, Inc.*		1,983		398,980
Sensata Technologies Holding N.V.*		17,780		620,522
Thermo Fisher Scientific, Inc.		10,200		863,226
Waters Corp.*		3,890		389,194
				2,488,595

	Number of Shares		Value†
Food — 2.4%
Danone S.A.		9,236	$	695,175
Healthcare Products — 3.8%
Becton Dickinson & Co.		1,580		156,151
DENTSPLY International, Inc.		14,780		605,389
Patterson Cos., Inc.		3,830		144,008
St. Jude Medical, Inc.		4,060		185,258
				1,090,806
Household Products & Wares — 0.7%
Church & Dwight Co., Inc.		3,190		196,855
Internet — 5.2%
eBay, Inc.*		4,790		247,739
Google, Inc., Class A*		1,425		1,254,527
				1,502,266
Media — 5.7%
Discovery Communications, Inc., Class A*		3,440		265,602
The Walt Disney Co.		9,910		625,816
Time Warner, Inc.		8,100		468,342
Viacom, Inc., Class B		3,810		259,271
				1,619,031
Metal Fabricate/Hardware — 1.8%
Precision Castparts Corp.		2,331		526,829
Mining — 0.4%
Rio Tinto PLC		2,860		116,314
Miscellaneous Manufacturing — 3.8%
Danaher Corp.		16,980		1,074,834
Oil & Gas — 1.1%
Occidental Petroleum Corp.		3,630		323,905
Oil & Gas Services — 3.1%
National Oilwell Varco, Inc.		2,530		174,317
Schlumberger Ltd.		10,060		720,900
				895,217
Pharmaceuticals — 6.4%
Allergan, Inc.		2,089		175,977
Express Scripts Holding Co.*		11,410		703,883
Johnson & Johnson		7,290		625,919
Mead Johnson Nutrition Co.		4,070		322,466
Zoetis, Inc.		540		16,681
				1,844,926
Retail — 6.7%
CVS Caremark Corp.		11,770		673,009
Inditex S.A.		2,068		255,077
Kohl’s Corp.		3,250		164,157
McDonald’s Corp.		6,030		596,970
Target Corp.		3,160		217,598
				1,906,811

80

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Semiconductors — 3.6%
Microchip Technology, Inc.		18,660	$	695,085
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		18,890		346,065
				1,041,150
Software — 4.5%
Autodesk, Inc.*		10,770		365,534
MSCI, Inc., Class A*		5,120		170,342
Oracle Corp.		24,760		760,627
				1,296,503
Transportation — 3.4%
Expeditors International of Washington, Inc.		14,830		563,688
Kuehne + Nagel International AG		3,620		397,169
				960,857
TOTAL COMMON STOCKS (Cost $28,039,825)				28,661,543
TOTAL INVESTMENTS — 100.0% (Cost $28,039,825)			$	28,661,543

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	83	%
France	8
Ireland	3
Netherlands	2
Spain	1
Switzerland	1
Taiwan	1
Other	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	28,661,542	$	26,326,854	$	2,334,688	$	—
TOTAL INVESTMENTS	$	28,661,542	$	26,326,854	$	2,334,688	$	—

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 these financial statements.

81

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Core Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 98.8%
Apparel — 2.2%
Michael Kors Holdings Ltd.*		15,160	$	940,223
Ralph Lauren Corp.		8,330		1,447,254
				2,387,477
Auto Parts & Equipment — 1.2%
Delphi Automotive PLC		25,840		1,309,830
Beverages — 3.6%
Constellation Brands, Inc., Class A*		45,590		2,376,151
Green Mountain Coffee Roasters, Inc.*		19,130		1,435,898
				3,812,049
Biotechnology — 5.4%
Amgen, Inc.		21,233		2,094,848
Biogen Idec, Inc.*		5,360		1,153,472
Gilead Sciences, Inc.*		49,160		2,517,483
				5,765,803
Building Materials — 1.0%
Fortune Brands Home & Security, Inc.		26,210		1,015,375
Chemicals — 4.0%
Monsanto Co.		15,060		1,487,928
The Sherwin-Williams Co.		9,290		1,640,614
W.R. Grace & Co.*		13,558		1,139,414
				4,267,956
Commercial Services — 6.4%
Alliance Data Systems Corp.*		11,700		2,118,051
Hertz Global Holdings, Inc.*		63,970		1,586,456
Mastercard, Inc., Class A		3,960		2,275,020
United Rentals, Inc.*		18,270		911,856
				6,891,383
Computers — 6.1%
Accenture PLC, Class A		36,244		2,608,118
Apple, Inc.		9,965		3,946,937
				6,555,055
Distribution & Wholesale — 2.3%
LKQ Corp.*		32,817		845,038
W.W. Grainger, Inc.		6,522		1,644,718
				2,489,756
Diversified Financial Services — 6.8%
Affiliated Managers Group, Inc.*		8,577		1,406,113
Ameriprise Financial, Inc.		10,990		888,871
IntercontinentalExchange, Inc.*		10,790		1,918,031
Visa, Inc., Class A		16,570		3,028,168
				7,241,183
Diversified Operations — 1.8%
Eaton Corp. PLC		29,220		1,922,968
Healthcare Services — 0.5%
HCA Holdings, Inc.*		15,299		551,682
Internet — 14.5%
Amazon.com, Inc.*		12,044		3,344,498

	Number of Shares		Value†
Internet — (continued)
eBay, Inc.*		44,340	$	2,293,265
Facebook, Inc., Class A*		43,640		1,084,890
Google, Inc., Class A*		5,420		4,771,606
LinkedIn Corp., Class A*		9,080		1,618,964
MercadoLibre, Inc.		2,410		259,702
priceline.com, Inc.*		2,510		2,076,096
				15,449,021
Lodging — 1.1%
Starwood Hotels & Resorts Worldwide, Inc.		18,680		1,180,389
Machinery — Diversified — 0.6%
Cummins, Inc.		6,285		681,671
Media — 8.2%
CBS Corp., Class B		33,035		1,614,420
Discovery Communications, Inc., Class A*		22,840		1,763,476
Liberty Global PLC, Class A*		8,197		607,234
Liberty Global PLC, Series C*		20,666		1,403,015
Sirius XM Radio, Inc.		456,790		1,530,247
Viacom, Inc., Class B		26,910		1,831,225
				8,749,617
Metal Fabricate/Hardware — 2.1%
Precision Castparts Corp.		9,859		2,228,233
Oil & Gas — 1.4%
Pioneer Natural Resources Co.		10,190		1,475,003
Pharmaceuticals — 5.1%
Allergan, Inc.		9,160		771,639
Cardinal Health, Inc.		31,930		1,507,096
Novartis AG ADR		20,990		1,484,203
Sanofi		32,620		1,680,256
				5,443,194
Real Estate — 1.5%
CBRE Group, Inc., Class A*		66,940		1,563,718
Retail — 12.1%
Best Buy Co., Inc.		47,600		1,300,908
CVS Caremark Corp.		29,420		1,682,236
Dollar General Corp.*		28,648		1,444,719
PVH Corp.		12,950		1,619,397
Starbucks Corp.		31,930		2,091,096
The Home Depot, Inc.		42,180		3,267,684
TJX Cos., Inc.		29,470		1,475,268
				12,881,308
Semiconductors — 1.5%
ARM Holdings PLC ADR		23,300		842,994
ASML Holding NV		9,640		762,524
				1,605,518
Software — 4.1%
Microsoft Corp.		62,970		2,174,354
Salesforce.com, Inc.*		38,920		1,485,965
ServiceNow, Inc.*		18,740		756,909
				4,417,228

82

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Core Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Telecommunications — 1.3%
Crown Castle International Corp.*		19,830	$	1,435,494
Transportation — 4.0%
Kansas City Southern		15,860		1,680,525
Union Pacific Corp.		17,078		2,634,794
				4,315,319
TOTAL COMMON STOCKS (Cost $80,423,136)				105,636,230
SHORT-TERM INVESTMENTS — 1.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,289,836)		1,289,836		1,289,836
TOTAL INVESTMENTS — 100.0% (Cost $81,712,972)			$	106,926,066

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	89	%
Ireland	4
France	2
United Kingdom	2
Hong Kong	1
Netherlands	1
Switzerland	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	105,636,230	$	105,636,230	$	—	$	—
SHORT-TERM INVESTMENTS		1,289,836		1,289,836		—		—
TOTAL INVESTMENTS	$	106,926,066	$	106,926,066	$	—	$	—

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 these financial statements.

83

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 97.2%
Advertising — 1.1%
Omnicom Group, Inc.		33,406	$	2,100,235
Aerospace & Defense — 1.5%
Northrop Grumman Corp.		34,127		2,825,716
Agriculture — 1.4%
Philip Morris International, Inc.		29,468		2,552,518
Auto Manufacturers — 1.3%
General Motors Co.*		70,901		2,361,712
Banks — 13.9%
Bank of America Corp.		204,146		2,625,317
Citigroup, Inc.		63,385		3,040,578
Fifth Third Bancorp		115,092		2,077,411
JPMorgan Chase & Co.		97,028		5,122,108
State Street Corp.		54,291		3,540,316
The PNC Financial Services Group, Inc.		40,128		2,926,134
U.S. Bancorp		49,832		1,801,427
Wells Fargo & Co.		106,415		4,391,747
				25,525,038
Beverages — 2.6%
Coca-Cola Enterprises, Inc.		54,464		1,914,954
PepsiCo, Inc.		35,361		2,892,176
				4,807,130
Building Materials — 1.0%
Vulcan Materials Co.		36,405		1,762,366
Chemicals — 1.3%
E.I. du Pont de Nemours & Co.		45,795		2,404,238
Coal — 0.6%
CONSOL Energy, Inc.		42,584		1,154,026
Computers — 0.9%
Apple, Inc.		4,344		1,720,572
Cosmetics & Personal Care — 1.3%
The Procter & Gamble Co.		30,572		2,353,738
Diversified Financial Services — 4.0%
Ameriprise Financial, Inc.		39,118		3,163,864
Discover Financial Services		54,698		2,605,813
Legg Mason, Inc.		53,137		1,647,778
				7,417,455
Diversified Operations — 1.4%
Eaton Corp. PLC		37,745		2,483,998
Electric — 4.1%
Calpine Corp.*		78,344		1,663,243
FirstEnergy Corp.		53,358		1,992,388
NextEra Energy, Inc.		27,448		2,236,463
NRG Energy, Inc.		58,672		1,566,542
				7,458,636
Electronics — 1.3%
Honeywell International, Inc.		29,965		2,377,423

	Number of Shares		Value†
Healthcare Products — 2.6%
Baxter International, Inc.		34,641	$	2,399,582
Covidien PLC		38,916		2,445,482
				4,845,064
Healthcare Services — 2.5%
HCA Holdings, Inc.*		40,855		1,473,231
UnitedHealth Group, Inc.		47,720		3,124,706
				4,597,937
Insurance — 5.7%
American International Group, Inc.*		50,679		2,265,351
MetLife, Inc.		70,125		3,208,920
The Travelers Cos., Inc.		27,299		2,181,736
Unum Group		95,253		2,797,581
				10,453,588
Internet — 3.1%
AOL, Inc.*		45,895		1,674,250
Google, Inc., Class A*		1,803		1,587,307
Liberty Interactive Corp., Class A*		108,781		2,503,051
				5,764,608
Media — 4.7%
CBS Corp., Class B		37,278		1,821,776
Comcast Corp., Class A		63,152		2,644,806
DIRECTV*		30,315		1,868,010
Viacom, Inc., Class B		33,341		2,268,855
				8,603,447
Miscellaneous Manufacturing — 4.2%
Dover Corp.		28,420		2,207,097
General Electric Co.		135,060		3,132,042
Illinois Tool Works, Inc.		34,582		2,392,037
				7,731,176
Oil & Gas — 9.3%
Chevron Corp.		44,261		5,237,847
EOG Resources, Inc.		21,514		2,832,963
Exxon Mobil Corp.		39,354		3,555,634
Hess Corp.		39,282		2,611,860
Noble Energy, Inc.		46,347		2,782,674
				17,020,978
Oil & Gas Services — 2.2%
Schlumberger Ltd.		33,565		2,405,268
Transocean Ltd.		35,321		1,693,642
				4,098,910
Packaging and Containers — 1.3%
Sealed Air Corp.		97,552		2,336,370
Pharmaceuticals — 8.5%
Bristol-Myers Squibb Co.		47,933		2,142,126
Forest Laboratories, Inc.*		56,171		2,303,011
Merck & Co., Inc.		88,106		4,092,523
Pfizer, Inc.		148,197		4,150,998
Sanofi-ADR		55,745		2,871,425
				15,560,083

84

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — 5.6%
CVS Caremark Corp.		42,347	$	2,421,401
Family Dollar Stores, Inc.		41,340		2,575,895
Lowe’s Cos., Inc.		70,524		2,884,432
Target Corp.		36,122		2,487,361
				10,369,089
Semiconductors — 1.4%
Texas Instruments, Inc.		71,850		2,505,410
Software — 1.9%
Microsoft Corp.		54,992		1,898,874
Oracle Corp.		54,140		1,663,181
				3,562,055
Telecommunications — 5.1%
Cisco Systems, Inc.		93,023		2,261,389
Motorola Solutions, Inc.		44,734		2,582,494
Verizon Communications, Inc.		46,578		2,344,737
Vodafone Group PLC- ADR		78,980		2,269,885
				9,458,505
Transportation — 1.4%
Norfolk Southern Corp.		35,536		2,581,690
TOTAL COMMON STOCKS (Cost $172,789,501)				178,793,711
REAL ESTATE INVESTMENT TRUSTS — 1.3%
Real Estate Investment Trusts — 1.3%
Weyerhaeuser Co. (Cost $2,547,323)		84,565		2,409,257
SHORT-TERM INVESTMENTS — 1.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,817,771)		2,817,771		2,817,771
TOTAL INVESTMENTS — 100.0% (Cost $178,154,595)			$	184,020,739

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	92	%
France	3
Ireland	3
Switzerland	1
United Kingdom	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	178,793,711	$	178,793,711	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		2409,257		2,409,257		—		—
SHORT-TERM INVESTMENTS		2,817,771		2,817,771		—		—
TOTAL INVESTMENTS	$	184,020,739		184,020,739	$	—	$	—

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 these financial statements.

85

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — 95.2%
Aerospace & Defense — 2.5%
The Boeing Co.		22,766	$	2,332,149
United Technologies Corp.		24,431		2,270,617
				4,602,766
Apparel — 1.0%
Coach, Inc.		32,008		1,827,337
Banks — 17.6%
Citigroup, Inc.		107,842		5,173,181
JPMorgan Chase & Co.		102,537		5,412,928
KeyCorp		125,745		1,388,225
Morgan Stanley		142,369		3,478,075
Regions Financial Corp.		279,543		2,664,045
SunTrust Banks, Inc.		59,529		1,879,330
The Goldman Sachs Group, Inc.		12,235		1,850,544
The PNC Financial Services Group, Inc.		59,842		4,363,679
Wells Fargo & Co.		132,391		5,463,776
				31,673,783
Biotechnology — 1.4%
Gilead Sciences, Inc.*		50,607		2,591,584
Chemicals — 2.4%
E.I. du Pont de Nemours & Co.		25,601		1,344,052
LyondellBasell Industries N.V., Class A		43,972		2,913,585
				4,257,637
Computers — 2.8%
EMC Corp.		111,807		2,640,881
International Business Machines Corp.		12,878		2,461,115
				5,101,996
Diversified Financial Services — 3.9%
American Express Co.		35,511		2,654,802
Discover Financial Services		54,333		2,588,424
Invesco Ltd.		56,648		1,801,407
				7,044,633
Diversified Operations — 0.7%
Eaton Corp. PLC		17,922		1,179,447
Electric — 3.1%
American Electric Power Co., Inc.		50,550		2,263,629
NextEra Energy, Inc.		40,266		3,280,874
				5,544,503
Electronics — 2.1%
Honeywell International, Inc.		24,080		1,910,507
Thermo Fisher Scientific, Inc.		23,089		1,954,022
				3,864,529
Food — 2.1%
Kraft Foods Group, Inc.		19,187		1,071,978
Mondelez International, Inc., Class A		41,544		1,185,250
Nestle SA ADR		24,318		1,599,638
				3,856,866
Gas — 1.9%
Sempra Energy		41,509		3,393,776

	Number of Shares		Value†
Healthcare Products — 1.9%
Covidien PLC		23,165	$	1,455,689
Stryker Corp.		29,317		1,896,223
				3,351,912
Insurance — 5.3%
ACE Ltd.		23,206		2,076,473
Aflac, Inc.		42,129		2,448,537
MetLife, Inc.		35,831		1,639,627
The Travelers Cos., Inc.		32,090		2,564,633
XL Group PLC		30,470		923,850
				9,653,120
Internet — 0.9%
Google, Inc., Class A*		1,776		1,563,537
Machinery — Construction & Mining — 1.5%
Caterpillar, Inc.		32,812		2,706,662
Machinery — Diversified — 0.7%
Deere & Co.		14,657		1,190,881
Media — 3.0%
Comcast Corp., Class A		53,426		2,237,481
The Walt Disney Co.		50,075		3,162,236
				5,399,717
Miscellaneous Manufacturing — 2.4%
General Electric Co.		185,392		4,299,240
Oil & Gas — 13.6%
Anadarko Petroleum Corp.		24,162		2,076,241
Chevron Corp.		44,757		5,296,543
ConocoPhillips		54,952		3,324,596
EOG Resources, Inc.		21,371		2,814,133
Marathon Oil Corp.		90,846		3,141,455
Occidental Petroleum Corp.		53,114		4,739,362
Phillips 66		53,734		3,165,470
				24,557,800
Oil & Gas Services — 1.9%
National Oilwell Varco, Inc.		25,320		1,744,548
Schlumberger Ltd.		23,074		1,653,483
				3,398,031
Pharmaceuticals — 9.0%
AmerisourceBergen Corp.		23,192		1,294,810
Merck & Co., Inc.		88,524		4,111,940
Pfizer, Inc.		161,531		4,524,483
Roche Holding Ltd. AG ADR		47,909		2,963,890
Sanofi		46,069		2,373,014
Shire PLC ADR		10,623		1,010,354
				16,278,491
Retail — 4.0%
CVS Caremark Corp.		54,515		3,117,168
Dollar General Corp.*		18,097		912,632
Lowe’s Cos., Inc.		23,485		960,536
Macy’s, Inc.		48,364		2,321,472
				7,311,808

86

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Large Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Semiconductors — 1.0%
Intel Corp.		73,630	$	1,783,319
Software — 2.8%
Microsoft Corp.		96,470		3,331,109
Oracle Corp.		53,997		1,658,788
				4,989,897
Telecommunications — 3.6%
AT&T, Inc.		66,430		2,351,622
Cisco Systems, Inc.		74,585		1,813,161
Verizon Communications, Inc.		46,534		2,342,522
				6,507,305
Transportation — 2.1%
Union Pacific Corp.		24,415		3,766,746
TOTAL COMMON STOCKS (Cost $129,713,752)				171,697,323
REAL ESTATE INVESTMENT TRUSTS — 2.8%
Apartments — 1.1%
AvalonBay Communities, Inc.		14,922		2,013,127
Office Property — 0.8%
Boston Properties, Inc.		14,218		1,499,572
Storage & Warehousing — 0.9%
Public Storage		10,447		1,601,839
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,358,194)				5,114,538
SHORT-TERM INVESTMENTS — 2.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $3,576,718)		3,576,718		3,576,718
TOTAL INVESTMENTS — 100.0% (Cost $136,648,664)			$	180,388,579

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	90	%
Switzerland	4
France	2
Bermuda	1
Ireland	1
Netherlands	1
United Kingdom	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	171,697,323	$	171,697,323	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		5,114,538		5,114,538		—		—
SHORT-TERM INVESTMENTS		3,576,718		3,576,718		—		—
TOTAL INVESTMENTS	$	180,388,579	$	180,388,579	$	—	$	—

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 these financial statements.

87

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — 95.8%
Advertising — 0.2%
Omnicom Group, Inc.		6,467	$	406,580
The Interpublic Group of Cos., Inc.		10,134		147,450
				554,030
Aerospace & Defense — 1.8%
General Dynamics Corp.		8,197		642,071
L-3 Communications Holdings, Inc.		2,300		197,202
Lockheed Martin Corp.		6,437		698,157
Northrop Grumman Corp.		5,692		471,298
Raytheon Co.		7,776		514,149
Rockwell Collins, Inc.		3,245		205,765
The Boeing Co.		16,621		1,702,655
United Technologies Corp.		20,742		1,927,762
				6,359,059
Agriculture — 1.8%
Altria Group, Inc.		48,778		1,706,742
Archer-Daniels-Midland Co.		15,999		542,526
Lorillard, Inc.		9,009		393,513
Philip Morris International, Inc.		39,788		3,446,437
Reynolds American, Inc.		7,602		367,709
				6,456,927
Airlines — 0.1%
Southwest Airlines Co.		17,817		229,661
Apparel — 0.6%
Coach, Inc.		6,977		398,317
NIKE, Inc., Class B		17,546		1,117,329
Ralph Lauren Corp.		1,428		248,101
VF Corp.		2,108		406,970
				2,170,717
Auto Manufacturers — 0.7%
Ford Motor Co.		95,367		1,475,328
General Motors Co.*		18,800		626,228
PACCAR, Inc.		8,844		474,569
				2,576,125
Auto Parts & Equipment — 0.4%
BorgWarner, Inc.*		3,000		258,450
Delphi Automotive PLC		7,000		354,830
Johnson Controls, Inc.		17,011		608,823
The Goodyear Tire & Rubber Co.*		5,606		85,716
				1,307,819
Banks — 7.6%
Bank of America Corp.		262,235		3,372,342
BB&T Corp.		17,099		579,314
Capital One Financial Corp.		14,141		888,196
Citigroup, Inc.		73,981		3,548,869
Comerica, Inc.		4,344		173,022
Fifth Third Bancorp		20,946		378,075
Huntington Bancshares, Inc.		19,965		157,324
JPMorgan Chase & Co.		91,964		4,854,780
KeyCorp		21,599		238,453
M&T Bank Corp.		3,108		347,319

	Number of Shares		Value†
Banks — (continued)
Morgan Stanley		33,363	$	815,058
Northern Trust Corp.		5,247		303,801
Regions Financial Corp.		35,594		339,211
State Street Corp.		11,347		739,938
SunTrust Banks, Inc.		13,588		428,973
The Bank of New York Mellon Corp.		28,080		787,644
The Goldman Sachs Group, Inc.		10,443		1,579,504
The PNC Financial Services Group, Inc.		13,083		954,012
U.S. Bancorp		45,456		1,643,234
Wells Fargo & Co.		119,837		4,945,673
Zions Bancorporation		4,804		138,740
				27,213,482
Beverages — 2.3%
Beam, Inc.		3,807		240,260
Brown-Forman Corp., Class B		3,793		256,217
Coca-Cola Enterprises, Inc.		6,628		233,040
Constellation Brands, Inc., Class A*		3,723		194,043
Dr. Pepper Snapple Group, Inc.		5,000		229,650
Molson Coors Brewing Co., Class B		3,938		188,473
Monster Beverage Corp.*		3,500		212,695
PepsiCo, Inc.		37,561		3,072,114
The Coca-Cola Co.		93,170		3,737,049
				8,363,541
Biotechnology — 2.1%
Alexion Pharmaceuticals, Inc.*		4,700		433,528
Amgen, Inc.		18,445		1,819,784
Biogen Idec, Inc.*		5,833		1,255,262
Celgene Corp.		10,128		1,184,064
Gilead Sciences, Inc.*		36,998		1,894,667
Life Technologies Corp.*		4,359		322,610
Regeneron Pharmaceuticals, Inc.*		1,900		427,272
				7,337,187
Building Materials — 0.1%
Masco Corp.		9,077		176,911
Vulcan Materials Co.		3,041		147,215
				324,126
Chemicals — 2.4%
Air Products & Chemicals, Inc.		5,021		459,773
Airgas, Inc.		1,600		152,736
CF Industries Holdings, Inc.		1,500		257,250
E.I. du Pont de Nemours & Co.		22,323		1,171,957
Eastman Chemical Co.		3,682		257,777
Ecolab, Inc.		6,433		548,027
FMC Corp.		3,500		213,710
International Flavors & Fragrances, Inc.		1,875		140,925
LyondellBasell Industries N.V., Class A		9,400		622,844
Monsanto Co.		12,937		1,278,176
PPG Industries, Inc.		3,410		499,258
Praxair, Inc.		7,326		843,662
Sigma-Aldrich Corp.		3,022		242,848
The Dow Chemical Co.		29,904		962,012
The Mosaic Co.		6,800		365,908

88

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Chemicals — (continued)
The Sherwin-Williams Co.		2,134	$	376,864
				8,393,727
Coal — 0.1%
CONSOL Energy, Inc.		5,776		156,529
Peabody Energy Corp.		6,212		90,944
				247,473
Commercial Services — 1.4%
Automatic Data Processing, Inc.		12,043		829,281
Equifax, Inc.		3,034		178,794
H&R Block, Inc.		6,666		184,981
Iron Mountain, Inc.		4,381		116,578
Mastercard, Inc., Class A		2,500		1,436,250
McGraw Hill Financial, Inc.		6,886		366,266
Moody’s Corp.		4,873		296,912
Paychex, Inc.		7,775		283,943
Quanta Services, Inc.*		4,900		129,654
Robert Half International, Inc.		3,207		106,569
SAIC, Inc.		7,500		104,475
The ADT Corp.*		5,150		205,227
The Western Union Co.		13,778		235,742
Total System Services, Inc.		3,477		85,117
Tyco International Ltd.		11,500		378,925
				4,938,714
Computers — 5.6%
Accenture PLC, Class A		15,800		1,136,968
Apple, Inc.		22,826		9,040,922
Cognizant Technology Solutions Corp., Class A*		7,252		454,048
Computer Sciences Corp.		3,757		164,444
Dell, Inc.		36,442		486,501
EMC Corp.		51,848		1,224,650
Hewlett-Packard Co.		47,583		1,180,058
International Business Machines Corp.		25,358		4,846,167
NetApp, Inc.		9,021		340,813
SanDisk Corp.*		6,097		372,527
Seagate Technology PLC		7,600		340,708
Teradata Corp.		4,216		211,770
Western Digital Corp.		5,200		322,868
				20,122,444
Cosmetics & Personal Care — 2.0%
Avon Products, Inc.		10,950		230,279
Colgate-Palmolive Co.		21,470		1,230,016
The Estee Lauder Cos., Inc., Class A		5,874		386,333
The Procter & Gamble Co.		66,694		5,134,771
				6,981,399
Distribution & Wholesale — 0.3%
Fastenal Co.		6,700		307,195
Fossil Group, Inc.*		1,200		123,972
Genuine Parts Co.		3,805		297,056
W.W. Grainger, Inc.		1,472		371,209
				1,099,432

	Number of Shares		Value†
Diversified Financial Services — 2.6%
American Express Co.		23,480	$	1,755,365
Ameriprise Financial, Inc.		5,046		408,120
BlackRock, Inc.		3,099		795,978
CME Group, Inc.		7,560		574,409
Discover Financial Services		11,978		570,632
E*Trade Financial Corp.*		7,681		97,241
Franklin Resources, Inc.		3,452		469,541
IntercontinentalExchange, Inc.*		1,780		316,413
Invesco Ltd.		11,067		351,931
Legg Mason, Inc.		2,861		88,720
NYSE Euronext		5,785		239,499
SLM Corp.		11,534		263,667
T. Rowe Price Group, Inc.		6,281		459,455
The Charles Schwab Corp.		27,069		574,675
The NASDAQ OMX Group, Inc.		3,100		101,649
Visa, Inc., Class A		12,364		2,259,521
				9,326,816
Diversified Operations — 0.3%
Eaton Corp. PLC		11,406		750,629
Leucadia National Corp.		6,960		182,491
Pentair, Inc.		4,919		283,777
				1,216,897
Electric — 2.9%
AES Corp.		14,444		173,184
Ameren Corp.		6,198		213,459
American Electric Power Co., Inc.		11,757		526,479
CMS Energy Corp.		6,707		182,229
Consolidated Edison, Inc.		7,234		421,815
Dominion Resources, Inc.		14,009		795,991
DTE Energy Co.		4,092		274,205
Duke Energy Corp.		17,059		1,151,483
Edison International		8,174		393,660
Entergy Corp.		4,447		309,867
Exelon Corp.		21,210		654,965
FirstEnergy Corp.		9,956		371,757
Integrys Energy Group, Inc.		1,995		116,767
NextEra Energy, Inc.		10,485		854,318
Northeast Utilities		7,517		315,864
NRG Energy, Inc.		7,800		208,260
Pepco Holdings, Inc.		5,540		111,686
PG&E Corp.		11,050		505,317
Pinnacle West Capital Corp.		2,569		142,502
PPL Corp.		14,598		441,736
Public Service Enterprise Group, Inc.		12,349		403,318
SCANA Corp.		3,400		166,940
TECO Energy, Inc.		4,523		77,750
The Southern Co.		21,511		949,280
Wisconsin Energy Corp.		5,800		237,742
Xcel Energy, Inc.		12,530		355,100
				10,355,674
Electrical Components & Equipment — 0.3%
Emerson Electric Co.		17,376		947,687
Molex, Inc.		3,623		106,299
				1,053,986

89

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electronics — 1.1%
Agilent Technologies, Inc.		8,345	$	356,832
Amphenol Corp., Class A		4,000		311,760
FLIR Systems, Inc.		3,600		97,092
Garmin Ltd.		2,600		94,016
Honeywell International, Inc.		19,308		1,531,897
Jabil Circuit, Inc.		4,292		87,471
PerkinElmer, Inc.		3,016		98,020
TE Connectivity Ltd.		10,000		455,400
Thermo Fisher Scientific, Inc.		8,682		734,758
Waters Corp.*		2,158		215,908
				3,983,154
Engineering & Construction — 0.1%
Fluor Corp.		4,170		247,323
Jacobs Engineering Group, Inc.*		2,983		164,453
				411,776
Entertainment — 0.0%
International Game Technology		6,657		111,239
Environmental Control — 0.2%
Republic Services, Inc.		7,014		238,055
Stericycle, Inc.*		2,000		220,860
Waste Management, Inc.		10,500		423,465
				882,380
Food — 1.8%
Campbell Soup Co.		4,516		202,272
ConAgra Foods, Inc.		10,602		370,328
General Mills, Inc.		15,710		762,406
Hormel Foods Corp.		3,500		135,030
Kellogg Co.		6,366		408,888
Kraft Foods Group, Inc.		14,354		801,958
McCormick & Co., Inc.		3,208		225,715
Mondelez International, Inc., Class A		43,763		1,248,559
Safeway, Inc.		6,170		145,982
Sysco Corp.		14,252		486,848
The Hershey Co.		3,787		338,104
The J.M. Smucker Co.		2,534		261,382
The Kroger Co.		13,045		450,574
Tyson Foods, Inc., Class A		6,649		170,746
Whole Foods Market, Inc.		8,286		426,563
				6,435,355
Forest Products & Paper — 0.2%
International Paper Co.		10,967		485,948
MeadWestvaco Corp.		3,999		136,406
				622,354
Gas — 0.3%
AGL Resources, Inc.		2,600		111,436
CenterPoint Energy, Inc.		10,322		242,464
NiSource, Inc.		7,865		225,254
Sempra Energy		5,398		441,340
				1,020,494

	Number of Shares		Value†
Hand & Machine Tools — 0.1%
Snap-On, Inc.		1,328	$	118,697
Stanley Black & Decker, Inc.		3,940		304,562
				423,259
Healthcare Products — 1.8%
Baxter International, Inc.		13,275		919,559
Becton Dickinson & Co.		4,675		462,030
Boston Scientific Corp.*		31,948		296,158
C.R. Bard, Inc.		1,942		211,057
CareFusion Corp.*		5,241		193,131
Covidien PLC		11,700		735,228
DENTSPLY International, Inc.		3,200		131,072
Edwards Lifesciences Corp.*		2,900		194,880
Hospira, Inc.*		3,912		149,869
Intuitive Surgical, Inc.		1,007		510,126
Medtronic, Inc.		24,473		1,259,625
Patterson Cos., Inc.		1,974		74,222
St. Jude Medical, Inc.		6,730		307,090
Stryker Corp.		6,981		451,531
Varian Medical Systems, Inc.*		2,657		179,215
Zimmer Holdings, Inc.		4,029		301,933
				6,376,726
Healthcare Services — 1.3%
Aetna, Inc.		9,293		590,477
Cigna Corp.		6,894		499,746
DaVita HealthCare Partners, Inc.*		2,149		259,599
Humana, Inc.		4,010		338,364
Laboratory Corp. of America Holdings*		2,177		217,918
Quest Diagnostics, Inc.		3,987		241,732
Tenet Healthcare Corp.*		2,343		108,012
UnitedHealth Group, Inc.		24,741		1,620,041
WellPoint, Inc.		7,195		588,839
				4,464,728
Home Builders — 0.1%
D.R. Horton, Inc.		6,376		135,681
Lennar Corp., Class A		4,036		145,458
PulteGroup, Inc.*		8,034		152,405
				433,544
Home Furnishings — 0.1%
Harman International Industries, Inc.		1,438		77,939
Whirlpool Corp.		1,969		225,175
				303,114
Household Products & Wares — 0.4%
Avery Dennison Corp.		2,183		93,345
Kimberly-Clark Corp.		9,487		921,567
The Clorox Co.		3,297		274,113
				1,289,025
Housewares — 0.1%
Newell Rubbermaid, Inc.		7,317		192,071

90

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — 4.3%
ACE Ltd.		8,400	$	751,632
Aflac, Inc.		11,600		674,192
American International Group, Inc.*		36,285		1,621,940
AON PLC		7,744		498,326
Assurant, Inc.		2,073		105,536
Berkshire Hathaway, Inc., Class B*		44,350		4,963,652
Cincinnati Financial Corp.		3,692		169,463
Genworth Financial, Inc., Class A*		11,369		129,720
Hartford Financial Services Group, Inc.		11,357		351,158
Lincoln National Corp.		6,573		239,717
Loews Corp.		7,625		338,550
Marsh & McLennan Cos., Inc.		13,609		543,271
MetLife, Inc.		26,585		1,216,530
Principal Financial Group, Inc.		7,065		264,584
Prudential Financial, Inc.		11,230		820,127
The Allstate Corp.		11,276		542,601
The Chubb Corp.		6,451		546,077
The Progressive Corp.		13,856		352,220
The Travelers Cos., Inc.		9,131		729,750
Torchmark Corp.		2,235		145,588
Unum Group		6,676		196,074
XL Group PLC		7,449		225,854
				15,426,562
Internet — 3.5%
Amazon.com, Inc.*		8,875		2,464,498
eBay, Inc.*		28,628		1,480,640
Expedia, Inc.		2,094		125,954
F5 Networks, Inc.*		1,800		123,840
Google, Inc., Class A*		6,560		5,775,227
Netflix, Inc.*		1,400		295,526
priceline.com, Inc.*		1,252		1,035,567
Symantec Corp.		17,538		394,079
TripAdvisor, Inc.*		2,894		176,158
VeriSign, Inc.*		3,609		161,178
Yahoo!, Inc.*		23,417		588,001
				12,620,668
Iron & Steel — 0.1%
Allegheny Technologies, Inc.		2,278		59,934
Cliffs Natural Resources, Inc.		3,100		50,375
Nucor Corp.		7,735		335,080
United States Steel Corp.		3,203		56,149
				501,538
Leisure Time — 0.2%
Carnival Corp.		11,045		378,733
Harley-Davidson, Inc.		5,628		308,527
				687,260
Lodging — 0.3%
Marriott International, Inc., Class A		6,185		249,688
Starwood Hotels & Resorts Worldwide, Inc.		4,752		300,279
Wyndham Worldwide Corp.		3,160		180,847
Wynn Resorts Ltd.		2,000		256,000
				986,814

	Number of Shares		Value†
Machinery — Construction & Mining — 0.4%
Caterpillar, Inc.		15,928	$	1,313,901
Joy Global, Inc.		2,700		131,031
				1,444,932
Machinery — Diversified — 0.6%
Cummins, Inc.		4,374		474,404
Deere & Co.		9,532		774,475
Flowserve Corp.		3,300		178,233
Rockwell Automation, Inc.		3,471		288,579
Roper Industries, Inc.		2,400		298,128
Xylem, Inc.		4,854		130,767
				2,144,586
Media — 3.4%
Cablevision Systems Corp., Class A		5,000		84,100
CBS Corp., Class B		14,225		695,176
Comcast Corp., Class A		64,034		2,681,744
DIRECTV*		13,519		833,041
Discovery Communications, Inc., Class A*		6,100		470,981
Gannett Co., Inc.		5,374		131,448
News Corp., Class A		48,860		1,592,836
Scripps Networks Interactive, Inc., Class A		2,056		137,259
The Walt Disney Co.		43,776		2,764,454
The Washington Post Co., Class B		63		30,477
Time Warner Cable, Inc.		6,996		786,910
Time Warner, Inc.		22,604		1,306,963
Viacom, Inc., Class B		10,781		733,647
				12,249,036
Metal Fabricate/Hardware — 0.2%
Precision Castparts Corp.		3,625		819,286
Mining — 0.4%
Alcoa, Inc.		25,948		202,913
Freeport-McMoRan Copper & Gold, Inc.		25,896		714,989
Newmont Mining Corp.		12,383		370,871
				1,288,773
Miscellaneous Manufacturing — 3.0%
3M Co.		15,380		1,681,803
Danaher Corp.		14,068		890,505
Dover Corp.		4,105		318,794
General Electric Co.		251,725		5,837,503
Illinois Tool Works, Inc.		10,319		713,765
Ingersoll-Rand PLC		6,800		377,536
Leggett & Platt, Inc.		3,354		104,276
Pall Corp.		2,645		175,707
Parker Hannifin Corp.		3,781		360,707
Textron, Inc.		6,876		179,120
				10,639,716
Office & Business Equipment — 0.1%
Pitney Bowes, Inc.		4,261		62,551
Xerox Corp.		31,055		281,669
				344,220

91

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas — 8.3%
Anadarko Petroleum Corp.		12,359	$	1,062,009
Apache Corp.		9,723		815,079
Cabot Oil & Gas Corp.		5,044		358,225
Chesapeake Energy Corp.		12,410		252,916
Chevron Corp.		47,170		5,582,098
ConocoPhillips		29,680		1,795,640
Denbury Resources, Inc.*		8,500		147,220
Devon Energy Corp.		9,229		478,801
Diamond Offshore Drilling, Inc.		1,600		110,064
Ensco PLC ADR,Class A		5,800		337,096
EOG Resources, Inc.		6,758		889,893
EQT Corp.		3,600		285,732
Exxon Mobil Corp.		108,265		9,781,743
Helmerich & Payne, Inc.		2,400		149,880
Hess Corp.		7,397		491,827
Marathon Oil Corp.		17,051		589,624
Marathon Petroleum Corp.		8,025		570,256
Murphy Oil Corp.		4,317		262,862
Newfield Exploration Co.*		2,900		69,281
Noble Corp.		6,400		240,512
Noble Energy, Inc.		8,938		536,638
Occidental Petroleum Corp.		19,558		1,745,160
Phillips 66		15,240		897,788
Pioneer Natural Resources Co.		3,400		492,150
QEP Resources, Inc.		4,590		127,510
Range Resources Corp.		3,923		303,326
Southwestern Energy Co.*		8,490		310,140
Tesoro Corp.		3,494		182,806
Valero Energy Corp.		13,540		470,786
WPX Energy, Inc.*		4,344		82,275
				29,419,337
Oil & Gas Services — 1.5%
Baker Hughes, Inc.		10,628		490,270
Cameron International Corp.*		5,939		363,229
FMC Technologies, Inc.*		5,700		317,376
Halliburton Co.		22,969		958,267
Nabors Industries Ltd.		7,608		116,478
National Oilwell Varco, Inc.		10,423		718,145
Rowan Cos., Inc., Class A*		3,203		109,126
Schlumberger Ltd.		32,259		2,311,680
				5,384,571
Packaging and Containers — 0.1%
Ball Corp.		3,726		154,778
Bemis Co., Inc.		2,549		99,768
Owens-Illinois, Inc.*		4,000		111,160
Sealed Air Corp.		5,033		120,540
				486,246
Pharmaceuticals — 7.0%
Abbott Laboratories		37,796		1,318,325
AbbVie, Inc.		38,396		1,587,291
Actavis, Inc.*		3,243		409,331
Allergan, Inc.		7,116		599,452
AmerisourceBergen Corp.		5,500		307,065

	Number of Shares		Value†
Pharmaceuticals — (continued)
Bristol-Myers Squibb Co.		39,897	$	1,782,997
Cardinal Health, Inc.		8,182		386,190
Eli Lilly & Co.		24,454		1,201,180
Express Scripts Holding Co.*		19,764		1,219,241
Forest Laboratories, Inc.*		6,062		248,542
Johnson & Johnson		68,341		5,867,758
McKesson Corp.		5,625		644,063
Mead Johnson Nutrition Co.		5,068		401,538
Merck & Co., Inc.		73,454		3,411,938
Mylan, Inc.*		9,756		302,729
Perrigo Co.		2,100		254,100
Pfizer, Inc.		162,405		4,548,970
Zoetis, Inc.		10,407		321,485
				24,812,195
Pipelines — 0.5%
Kinder Morgan, Inc.		15,636		596,513
ONEOK, Inc.		4,800		198,288
Spectra Energy Corp.		16,384		564,593
The Williams Cos., Inc.		16,434		533,612
				1,893,006
Real Estate — 0.0%
CBRE Group, Inc., Class A*		7,201		168,215
Retail — 6.4%
Abercrombie & Fitch Co., Class A		1,900		85,975
AutoNation, Inc.*		1,219		52,892
AutoZone, Inc.*		841		356,323
Bed Bath & Beyond, Inc.*		5,366		380,449
Best Buy Co., Inc.		6,468		176,770
CarMax, Inc.*		5,800		267,728
Chipotle Mexican Grill, Inc.*		700		255,045
Costco Wholesale Corp.		10,677		1,180,556
CVS Caremark Corp.		29,767		1,702,077
Darden Restaurants, Inc.		2,940		148,411
Dollar General Corp.*		7,400		373,182
Dollar Tree, Inc.*		5,400		274,536
Family Dollar Stores, Inc.		2,233		139,138
GameStop Corp., Class A		3,164		132,983
J.C. Penney Co., Inc.*		3,144		53,700
Kohl’s Corp.		5,001		252,600
L Brands, Inc.		6,060		298,455
Lowe’s Cos., Inc.		25,940		1,060,946
Macy’s, Inc.		9,227		442,896
McDonald’s Corp.		24,378		2,413,422
Nordstrom, Inc.		3,737		223,996
O’Reilly Automotive, Inc.*		2,700		304,074
PetSmart, Inc.		2,600		174,174
PVH Corp.		1,900		237,595
Ross Stores, Inc.		5,600		362,936
Staples, Inc.		17,037		270,207
Starbucks Corp.		18,144		1,188,251
Target Corp.		15,532		1,069,534
The Gap, Inc.		6,882		287,186
The Home Depot, Inc.		35,504		2,750,495

92

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
Tiffany & Co.		2,764	$	201,330
TJX Cos., Inc.		17,418		871,945
Urban Outfitters, Inc.*		2,500		100,550
Wal-Mart Stores, Inc.		39,847		2,968,203
Walgreen Co.		20,879		922,852
Yum! Brands, Inc.		10,969		760,590
				22,742,002
Savings & Loans — 0.1%
Hudson City Bancorp, Inc.		11,257		103,114
People’s United Financial, Inc.		7,700		114,730
				217,844
Semiconductors — 2.8%
Advanced Micro Devices, Inc.		13,368		54,541
Altera Corp.		8,065		266,064
Analog Devices, Inc.		7,676		345,881
Applied Materials, Inc.		29,321		437,176
Broadcom Corp., Class A		12,808		432,398
First Solar, Inc.*		1,800		80,514
Intel Corp.		120,875		2,927,593
KLA-Tencor Corp.		4,127		229,998
Lam Research Corp.*		3,859		171,108
Linear Technology Corp.		5,541		204,130
LSI Corp.		12,772		91,192
Microchip Technology, Inc.		5,018		186,921
Micron Technology, Inc.*		24,586		352,317
NVIDIA Corp.		13,554		190,163
QUALCOMM, Inc.		41,999		2,565,299
Teradyne, Inc.*		4,957		87,094
Texas Instruments, Inc.		26,793		934,272
Xilinx, Inc.		6,364		252,078
				9,808,739
Software — 3.7%
Adobe Systems, Inc.*		12,305		560,616
Akamai Technologies, Inc.*		4,591		195,347
Autodesk, Inc.*		5,681		192,813
BMC Software, Inc.*		3,037		137,090
CA, Inc.		8,439		241,609
Cerner Corp.*		3,500		336,315
Citrix Systems, Inc.*		4,691		283,008
Electronic Arts, Inc.*		7,730		177,558
Fidelity National Information Services, Inc.		7,059		302,407
Fiserv, Inc.*		3,207		280,324
Intuit, Inc.		6,792		414,516
Microsoft Corp.		183,015		6,319,508
Oracle Corp.		89,317		2,743,818
Red Hat, Inc.*		4,600		219,972
Salesforce.com, Inc.*		13,200		503,976
The Dun & Bradstreet Corp.		1,100		107,195
				13,016,072
Telecommunications — 4.0%
AT&T, Inc.		130,943		4,635,382
CenturyLink, Inc.		14,626		517,029

	Number of Shares		Value†
Telecommunications — (continued)
Cisco Systems, Inc.		129,980	$	3,159,814
Corning, Inc.		35,615		506,801
Crown Castle International Corp.*		7,100		513,969
Frontier Communications Corp.		21,472		86,962
Harris Corp.		2,600		128,050
JDS Uniphase Corp.*		6,196		89,098
Juniper Networks, Inc.*		12,071		233,091
Motorola Solutions, Inc.		6,746		389,447
Sprint Nextel Corp.*		74,983		526,381
Verizon Communications, Inc.		69,576		3,502,456
Windstream Corp.		13,351		102,936
				14,391,416
Textiles — 0.0%
Cintas Corp.		2,455		111,801
Toys, Games & Hobbies — 0.1%
Hasbro, Inc.		2,612		117,096
Mattel, Inc.		8,281		375,212
				492,308
Transportation — 1.6%
C.H. Robinson Worldwide, Inc.		3,739		210,543
CSX Corp.		24,966		578,962
Expeditors International of Washington, Inc.		4,973		189,024
FedEx Corp.		7,166		706,424
Kansas City Southern		2,700		286,092
Norfolk Southern Corp.		7,852		570,448
Ryder System, Inc.		1,125		68,389
Union Pacific Corp.		11,310		1,744,907
United Parcel Service, Inc., Class B		17,274		1,493,855
				5,848,644
TOTAL COMMON STOCKS (Cost $250,675,419)				341,524,242
REAL ESTATE INVESTMENT TRUSTS — 2.1%
Apartments — 0.3%
Apartment Investment & Management Co., Class A		3,662		110,006
AvalonBay Communities, Inc.		2,892		390,160
Equity Residential		7,892		458,210
				958,376
Diversified — 0.5%
American Tower Corp.		9,859		721,383
Plum Creek Timber Co., Inc.		3,847		179,539
Vornado Realty Trust		4,087		338,608
Weyerhaeuser Co.		13,608		387,692
				1,627,222
Healthcare — 0.4%
HCP, Inc.		11,440		519,834
Health Care REIT, Inc.		7,100		475,913
Ventas, Inc.		7,253		503,793
				1,499,540

93

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Index 500 Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Hotels & Resorts — 0.1%
Host Hotels & Resorts, Inc.		18,876	$	318,438
Industrial — 0.1%
ProLogis, Inc.		12,499		471,462
Office Property — 0.1%
Boston Properties, Inc.		3,742		394,669
Regional Malls — 0.4%
Simon Property Group, Inc.		7,528		1,188,822
The Macerich Co.		3,400		207,298
				1,396,120
Storage & Warehousing — 0.1%
Public Storage		3,516		539,108
Strip Centers — 0.1%
Kimco Realty Corp.		9,564		204,957
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $5,701,680)				7,409,892
	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U S Treasury Bill 0.050%, 07/05/13+ (Cost $434,998)		435		434,998
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 2.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $7,208,229)		7,208,229		7,208,229
TOTAL INVESTMENTS — 100.0% (Cost $264,020,326)			$	356,577,361

† See Security Valuation Note.

* Non-income producing security.

+ Collateral pledged for derivatives.

ADR — American Depository Receipt.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
TOTAL COMMON STOCKS	$	341,524,242	$	341,524,242	$	—	$	—
TOTAL REAL ESTATE INVESTMENT TRUSTS		7,409,892		7,409,892		—		—
U.S. TREASURY OBLIGATIONS		434,998		—		434,998		—
SHORT-TERM INVESTMENTS		7,208,229		7,208,229		—		—
TOTAL INVESTMENTS	$	356,577,361	$	356,142,363	$	434,998	$	—

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 these financial statements.

94

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Mid Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 100.0%
Airlines — 1.5%
Delta Air Lines, Inc.*		82,880	$	1,550,685
Apparel — 5.6%
Michael Kors Holdings Ltd.*		36,470		2,261,869
Ralph Lauren Corp.		10,240		1,779,098
VF Corp.		9,230		1,781,944
				5,822,911
Auto Parts & Equipment — 2.1%
BorgWarner, Inc.*		25,500		2,196,825
Banks — 1.1%
Signature Bank*		13,360		1,109,147
Beverages — 1.6%
Beam, Inc.		25,740		1,624,451
Biotechnology — 3.5%
Alexion Pharmaceuticals, Inc.*		9,170		845,841
Cubist Pharmaceuticals, Inc.*		15,480		747,684
NPS Pharmaceuticals, Inc.*		44,700		674,970
Regeneron Pharmaceuticals, Inc.*		5,830		1,311,050
				3,579,545
Chemicals — 4.7%
Eastman Chemical Co.		26,960		1,887,470
International Flavors & Fragrances, Inc.		15,400		1,157,464
Methanex Corp.		12,270		525,033
PPG Industries, Inc.		8,520		1,247,413
				4,817,380
Commercial Services — 5.0%
Alliance Data Systems Corp.*		9,560		1,730,647
Cardtronics, Inc.*		54,910		1,515,516
Equifax, Inc.		10,580		623,479
Robert Half International, Inc.		39,060		1,297,964
				5,167,606
Distribution & Wholesale — 1.9%
Fossil Group, Inc.*		12,080		1,247,985
WESCO International, Inc.*		10,460		710,861
				1,958,846
Diversified Financial Services — 5.6%
Affiliated Managers Group, Inc.*		11,250		1,844,325
IntercontinentalExchange, Inc.*		13,870		2,465,531
Raymond James Financial, Inc.		34,110		1,466,048
				5,775,904
Electronics — 0.5%
Trimble Navigation Ltd.*		20,960		545,170
Engineering & Construction — 2.2%
KBR, Inc.		25,170		818,025
MasTec, Inc.*		44,360		1,459,444
				2,277,469
Food — 1.8%
The Kroger Co.		54,550		1,884,157

	Number of Shares		Value†
Healthcare Products — 1.1%
The Cooper Cos., Inc.		9,200	$	1,095,260
Healthcare Services — 3.0%
Covance, Inc.*		12,570		957,080
DaVita HealthCare Partners, Inc.*		11,160		1,348,128
HCA Holdings, Inc.*		23,670		853,540
				3,158,748
Home Builders — 1.7%
Toll Brothers, Inc.*		54,120		1,765,936
Insurance — 2.5%
Brown & Brown, Inc.		40,620		1,309,589
Markel Corp.*		2,340		1,233,063
				2,542,652
Internet — 5.6%
HomeAway, Inc.*		61,570		1,991,174
LinkedIn Corp., Class A*		11,000		1,961,300
Shutterfly, Inc.*		9,030		503,784
Splunk, Inc.*		15,010		695,863
TripAdvisor, Inc.*		10,810		658,005
				5,810,126
Leisure Time — 2.8%
Harley-Davidson, Inc.		24,660		1,351,861
Polaris Industries, Inc.		15,960		1,516,200
				2,868,061
Lodging — 3.4%
Starwood Hotels & Resorts Worldwide, Inc.		21,190		1,338,996
Wynn Resorts Ltd.		16,770		2,146,560
				3,485,556
Machinery — Diversified — 1.5%
Roper Industries, Inc.		12,140		1,508,031
Media — 1.6%
Liberty Global PLC, Class A*		22,920		1,697,914
Oil & Gas — 4.8%
Cabot Oil & Gas Corp.		26,000		1,846,520
Cobalt International Energy, Inc.*		36,190		961,568
Concho Resources, Inc.*		16,310		1,365,473
Rosetta Resources, Inc.*		19,500		829,140
				5,002,701
Oil & Gas Services — 0.9%
FMC Technologies, Inc.*		16,120		897,562
Packaging and Containers — 0.9%
Crown Holdings, Inc.*		21,990		904,449
Pharmaceuticals — 5.4%
Actavis, Inc.*		11,690		1,475,512
BioMarin Pharmaceutical, Inc.*		16,680		930,577
Catamaran Corp.*		35,670		1,737,842
Onyx Pharmaceuticals, Inc.*		16,890		1,466,390
				5,610,321

95

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Mid Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Real Estate — 1.1%
CBRE Group, Inc., Class A*		51,160	$	1,195,098
Retail — 6.2%
Dunkin’ Brands Group, Inc.		41,520		1,777,886
Fifth & Pacific Cos., Inc.*		53,810		1,202,115
Tractor Supply Co.		17,220		2,025,244
Urban Outfitters, Inc.*		34,680		1,394,830
				6,400,075
Semiconductors — 9.0%
Avago Technologies Ltd.		38,350		1,433,523
Cavium, Inc.*		58,640		2,074,097
KLA-Tencor Corp.		18,730		1,043,823
Maxim Integrated Products, Inc.		32,450		901,461
NXP Semiconductors N.V.*		74,980		2,322,880
Ultratech, Inc.*		41,890		1,538,201
				9,313,985
Software — 5.1%
Cerner Corp.*		10,850		1,042,577
Citrix Systems, Inc.*		25,680		1,549,274
ServiceNow, Inc.*		41,280		1,667,299
Workday, Inc., Class A*		15,990		1,024,799
				5,283,949
Telecommunications — 5.0%
Ciena Corp.*		91,210		1,771,298
JDS Uniphase Corp.*		55,510		798,234
Palo Alto Networks, Inc.*		20,870		879,879
SBA Communications Corp., Class A*		23,520		1,743,302
				5,192,713
Transportation — 1.3%
Genesee & Wyoming, Inc., Class A*		16,520		1,401,557
TOTAL COMMON STOCKS (Cost $87,845,567)				103,444,790
TOTAL INVESTMENTS — 100.0% (Cost $87,845,567)			$	103,444,790

† See Security Valuation Note.

* Non-income producing security.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	103,444,790	$	103,444,790	$	—	$	—
TOTAL INVESTMENTS	$	103,444,790	$	103,444,790	$	—	$	—

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 these financial statements.

96

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Mid Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 87.9%
Aerospace & Defense — 5.7%
General Dynamics Corp.		41,550	$	3,254,612
Rockwell Collins, Inc.		47,700		3,024,657
Spirit Aerosystems Holdings, Inc., Class A*		99,600		2,139,408
				8,418,677
Auto Parts & Equipment — 1.2%
Lear Corp.		28,500		1,723,110
Banks — 6.6%
BB&T Corp.		49,000		1,660,120
Comerica, Inc.		49,500		1,971,585
Huntington Bancshares, Inc.		317,200		2,499,536
State Street Corp.		55,800		3,638,718
				9,769,959
Chemicals — 2.9%
Agrium, Inc.		23,500		2,043,560
Ashland, Inc.		25,800		2,154,300
				4,197,860
Commercial Services — 5.8%
The ADT Corp.*		36,300		1,446,555
The Brink’s Co.		83,600		2,132,636
The Western Union Co.		187,000		3,199,570
Tyco International Ltd.		54,700		1,802,365
				8,581,126
Electric — 6.4%
AES Corp.		210,300		2,521,497
Edison International		31,400		1,512,224
NV Energy, Inc.		126,300		2,962,998
Pinnacle West Capital Corp.		43,100		2,390,757
				9,387,476
Electronics — 3.3%
Dolby Laboratories, Inc., Class A*		74,800		2,502,060
Flextronics International Ltd.*		300,000		2,322,000
				4,824,060
Engineering & Construction — 2.0%
KBR, Inc.		88,800		2,886,000
Environmental Control — 3.0%
Covanta Holding Corp.		129,400		2,590,588
Republic Services, Inc.		53,500		1,815,790
				4,406,378
Food — 3.9%
Safeway, Inc.		240,600		5,692,596
Gas — 2.1%
CenterPoint Energy, Inc.		130,400		3,063,096
Healthcare Products — 4.1%
Covidien PLC		46,000		2,890,640
Zimmer Holdings, Inc.		41,600		3,117,504
				6,008,144
Household Products & Wares — 1.9%
Avery Dennison Corp.		64,900		2,775,124

	Number of Shares		Value†
Internet — 1.8%
Symantec Corp.		118,000	$	2,651,460
Lodging — 1.0%
Wyndham Worldwide Corp.		25,600		1,465,088
Miscellaneous Manufacturing — 2.0%
ITT Corp.		100,400		2,952,764
Oil & Gas — 2.6%
Devon Energy Corp.		49,900		2,588,812
Southwestern Energy Co.*		34,200		1,249,326
				3,838,138
Oil & Gas Services — 1.5%
Cameron International Corp.*		36,100		2,207,876
Pharmaceuticals — 3.6%
Cardinal Health, Inc.		59,700		2,817,840
Omnicare, Inc.		53,200		2,538,172
				5,356,012
Pipelines — 0.5%
Energy Transfer Partners, LP		13,775		696,189
Retail — 12.0%
Best Buy Co., Inc.		212,100		5,796,692
CVS Caremark Corp.		58,200		3,327,876
Express, Inc.*		105,100		2,203,947
Kohl’s Corp.		60,900		3,076,059
Staples, Inc.		208,500		3,306,810
				17,711,384
Savings & Loans — 3.3%
BankUnited, Inc.		81,400		2,117,214
People’s United Financial, Inc.		181,800		2,708,820
				4,826,034
Software — 8.8%
Allscripts Healthcare Solutions, Inc.*		6,900		89,286
BMC Software, Inc.*		63,200		2,852,848
Check Point Software Technologies Ltd.*		46,200		2,295,216
Fidelity National Information Services, Inc.		68,300		2,925,972
Nuance Communications, Inc.*		164,788		3,028,803
VeriFone Systems, Inc.*		103,600		1,741,516
				12,933,641
Telecommunications — 1.9%
Amdocs Ltd.		74,600		2,766,914
TOTAL COMMON STOCKS (Cost $105,948,134)				129,139,106
REAL ESTATE INVESTMENT TRUSTS — 4.1%
Building & Real Estate — 2.1%
Starwood Property Trust, Inc.		123,100		3,046,725
Diversified — 2.0%
Corrections Corporation of America		89,417		3,028,554
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $5,525,680)				6,075,279

97

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Mid Cap Value Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 8.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $11,690,027)		11,690,027	$	11,690,027
TOTAL INVESTMENTS — 100.0% (Cost $123,163,841)			$	146,904,412

† See Security Valuation Note.

* Non-income producing security.

LP — Limited Partnership.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	92	%
Ireland	2
Israel	2
Singapore	2
Bermuda	1
Canada	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	129,139,107	$	129,139,107	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		6,075,279		6,075,279		—		—
SHORT-TERM INVESTMENTS		11,690,027		11,690,027		—		—
TOTAL INVESTMENTS	$	146,904,413	$	146,904,413	$	—	$	—

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 these financial statements.

98

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Mid Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — 91.1%
Aerospace & Defense — 3.2%
General Dynamics Corp.		11,120	$	871,030
Northrop Grumman Corp.		8,040		665,712
Raytheon Co.		8,550		565,326
				2,102,068
Airlines — 0.6%
Southwest Airlines Co.		31,820		410,160
Apparel — 0.3%
Coach, Inc.		2,870		163,848
Auto Parts & Equipment — 0.5%
Autoliv, Inc.		4,030		311,882
Banks — 8.7%
Comerica, Inc.		10,770		428,969
Commerce Bancshares, Inc.		17,810		775,803
Cullen/Frost Bankers, Inc.		6,580		439,347
KeyCorp		24,500		270,480
Northern Trust Corp.		31,020		1,796,058
State Street Corp.		3,860		251,711
SunTrust Banks, Inc.		12,150		383,575
The PNC Financial Services Group, Inc.		10,840		790,453
Westamerica Bancorporation		10,920		498,935
				5,635,331
Beverages — 0.9%
Dr. Pepper Snapple Group, Inc.		12,970		595,712
Coal — 0.2%
Peabody Energy Corp.		7,050		103,212
Commercial Services — 3.0%
The ADT Corp.*		28,180		1,122,973
Tyco International Ltd.		25,110		827,374
				1,950,347
Computers — 1.0%
SanDisk Corp.*		3,740		228,514
Western Digital Corp.		6,290		390,546
				619,060
Diversified Financial Services — 1.4%
Franklin Resources, Inc.		2,900		394,458
The Charles Schwab Corp.		25,350		538,180
				932,638
Electric — 8.7%
Consolidated Edison, Inc.		11,170		651,323
Great Plains Energy, Inc.		44,400		1,000,776
IDACORP, Inc.		5,690		271,754
Northeast Utilities		6,690		281,114
NV Energy, Inc.		9,720		228,031
PG&E Corp.		17,270		789,757
Portland General Electric Co.		16,580		507,182
The Empire District Electric Co.		20,755		463,044
Westar Energy, Inc.		25,230		806,351
Xcel Energy, Inc.		23,180		656,921
				5,656,253

	Number of Shares		Value†
Electrical Components & Equipment — 0.5%
Molex Inc		13,182	$	327,705
Electronics — 4.1%
Agilent Technologies, Inc.		18,901		808,207
Brady Corp., Class A		7,860		241,538
Koninklijke Philips Electronics N.V.		30,834		840,564
TE Connectivity Ltd.		10,850		494,109
Woodward, Inc.		6,408		256,320
				2,640,738
Engineering & Construction — 0.7%
ABB Ltd. ADR*		19,620		424,969
Entertainment — 1.0%
International Game Technology		30,160		503,974
International Speedway Corp.		3,930		123,677
				627,651
Environmental Control — 3.8%
Republic Services, Inc.		63,779		2,164,659
Waste Management, Inc.		8,150		328,690
				2,493,349
Food — 3.8%
ConAgra Foods, Inc.		4,630		161,726
General Mills, Inc.		6,710		325,636
Kellogg Co.		6,240		400,795
Kraft Foods Group, Inc.		2,400		134,088
Mondelez International, Inc., Class A		15,420		439,933
Sysco Corp.		29,170		996,447
				2,458,625
Gas — 2.0%
AGL Resources, Inc.		18,170		778,766
The Laclede Group, Inc.		11,500		525,090
				1,303,856
Hand & Machine Tools — 0.4%
Regal-Beloit Corp.		4,450		288,538
Healthcare Products — 8.7%
Becton Dickinson & Co.		4,910		485,255
Boston Scientific Corp.*		40,000		370,800
CareFusion Corp.*		24,760		912,406
Hospira, Inc.*		17,050		653,186
Medtronic, Inc.		12,520		644,404
Patterson Cos., Inc.		12,770		480,152
STERIS Corp.		8,990		385,491
Stryker Corp.		13,010		841,487
Varian Medical Systems, Inc.*		2,830		190,884
Zimmer Holdings, Inc.		9,250		693,195
				5,657,260
Healthcare Services — 3.3%
Cigna Corp.		3,970		287,785
Humana, Inc.		6,470		545,939
LifePoint Hospitals, Inc.*		15,610		762,392
Quest Diagnostics, Inc.		9,170		555,977
				2,152,093

99

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Mid Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — 7.2%
ACE Ltd.		5,500	$	492,140
AON PLC		5,060		325,611
HCC Insurance Holdings, Inc.		12,770		550,515
Marsh & McLennan Cos., Inc.		14,300		570,856
Reinsurance Group of America, Inc.		9,520		657,927
Symetra Financial Corp.		23,860		381,521
The Allstate Corp.		5,940		285,833
The Chubb Corp.		7,720		653,498
The Travelers Cos., Inc.		4,450		355,644
Unum Group		13,000		381,810
				4,655,355
Iron & Steel — 0.8%
Nucor Corp.		11,190		484,751
Leisure Time — 0.8%
Carnival Corp.		15,970		547,611
Machinery — Diversified — 0.5%
Rockwell Automation, Inc.		4,160		345,862
Media — 0.6%
Time Warner Cable, Inc.		3,320		373,434
Metal Fabricate/Hardware — 0.6%
Kaydon Corp.		14,650		403,608
Mining — 1.1%
Newmont Mining Corp.		23,650		708,318
Oil & Gas — 7.1%
Apache Corp.		8,980		752,794
Devon Energy Corp.		11,950		619,966
Helmerich & Payne, Inc.		6,981		435,964
Imperial Oil Ltd		42,070		1,606,076
Murphy Oil Corp.		9,060		551,663
Southwestern Energy Co.*		18,000		657,540
				4,624,003
Packaging and Containers — 1.3%
Bemis Co., Inc.		11,340		443,848
Sonoco Products Co.		11,660		403,086
				846,934
Pharmaceuticals — 0.2%
Mallinckrodt PLC*		2,170		98,583
Pipelines — 0.9%
Spectra Energy Partners LP		1,640		75,440
Williams Partners LP		10,240		528,384
				603,824
Retail — 3.2%
Bed Bath & Beyond, Inc.*		2,150		152,435
CEC Entertainment, Inc.		10,000		410,400
Lowe’s Cos., Inc.		24,440		999,596
Target Corp.		7,050		485,463
				2,047,894

	Number of Shares		Value†
Savings & Loans — 1.9%
Capitol Federal Financial Inc		33,500	$	406,690
People’s United Financial, Inc.		55,700		829,930
				1,236,620
Semiconductors — 4.4%
Analog Devices, Inc.		4,680		210,881
Applied Materials, Inc.		54,360		810,508
Avago Technologies Ltd.		8,790		328,570
KLA-Tencor Corp.		5,660		315,432
Maxim Integrated Products, Inc.		6,640		184,459
Microchip Technology, Inc.		8,900		331,525
Teradyne, Inc.*		39,050		686,108
				2,867,483
Telecommunications — 2.4%
CenturyLink, Inc.		17,840		630,644
Harris Corp.		1,580		77,815
Rogers Communications Inc		8,830		345,912
tw telecom, inc.*		17,460		491,325
				1,545,696
Toys, Games & Hobbies — 0.3%
Hasbro, Inc.		3,610		161,836
Transportation — 1.0%
Heartland Express, Inc.		44,690		619,850
TOTAL COMMON STOCKS (Cost $56,938,435)				59,026,957
REAL ESTATE INVESTMENT TRUSTS — 5.0%
Building & Real Estate — 1.0%
Annaly Capital Management, Inc.		51,510		647,481
Diversified — 2.0%
American Tower Corp.		8,850		647,554
Corrections Corporation of America		19,200		650,304
				1,297,858
Office Property — 1.5%
Boston Properties, Inc.		1,530		161,369
Piedmont Office Realty Trust, Inc., Class A		45,330		810,501
				971,870
Strip Centers — 0.5%
Federal Realty Investment Trust		3,130		324,518
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,550,441)				3,241,727
EXCHANGE TRADED FUNDS — 3.0%
Ishares Russell Midcap Value Index Fund (Cost $1,928,247)		33,500		1,940,320

100

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Mid Core Value Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 0.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $606,094)		606,094	$	606,094
TOTAL INVESTMENTS — 100.0% (Cost $63,023,217)			$	64,815,098

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

LP — Limited Partnership.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	91	%
Canada	3
Switzerland	2
Bermuda	1
Netherlands	1
Sweden	1
United Kingdom	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	59,026,957	$	58,186,393	$	840,564	$	—
REAL ESTATE INVESTMENT TRUSTS		3,241,727		3,241,727		—		—
EXCHANGE TRADED FUNDS		1,940,320		1,940,320		—		—
SHORT-TERM INVESTMENTS		606,094		606,094		—		—
TOTAL INVESTMENTS	$	64,815,098	$	63,974,534	$	840,564	$	—

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 these financial statements.

101

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

SMID Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 97.2%
Aerospace & Defense — 2.8%
TransDigm Group, Inc.*		5,150	$	807,365
Triumph Group, Inc.		7,510		594,417
				1,401,782
Airlines — 2.8%
Allegiant Travel Co.*		5,382		570,438
Copa Holdings S.A., Class A		6,460		847,035
				1,417,473
Apparel — 1.4%
Under Armour, Inc., Class A*		12,040		718,908
Auto Parts & Equipment — 0.8%
BorgWarner, Inc.*		4,640		399,736
Banks — 1.2%
Texas Capital Bancshares, Inc.*		13,320		590,875
Beverages — 2.6%
Constellation Brands, Inc., Class A*		17,310		902,197
Green Mountain Coffee Roasters, Inc.*		5,320		399,319
				1,301,516
Biotechnology — 1.8%
Alnylam Pharmaceuticals, Inc.*		9,710		301,107
Cubist Pharmaceuticals, Inc.*		12,347		596,360
				897,467
Building Materials — 3.3%
Fortune Brands Home & Security, Inc.		19,730		764,340
Headwaters, Inc.*		49,197		434,902
Owens Corning*		11,590		452,937
				1,652,179
Chemicals — 1.8%
Airgas, Inc.		4,886		466,417
WR Grace & Co.*		5,422		455,665
				922,082
Commercial Services — 14.7%
Alliance Data Systems Corp.*		4,720		854,462
CoStar Group, Inc.*		5,420		699,559
Hertz Global Holdings, Inc.*		33,830		838,984
Quanta Services, Inc.*		23,130		612,020
Team Health Holdings, Inc.*		17,360		712,975
The Advisory Board Co.*		13,100		715,915
Towers Watson & Co., Class A		6,350		520,319
United Rentals, Inc.*		10,570		527,549
Vantiv, Inc.*		42,007		1,159,393
Verisk Analytics, Inc., Class A*		12,520		747,444
				7,388,620
Computers — 0.9%
Stratasys Ltd.*		5,679		475,559
Distribution & Wholesale — 0.8%
LKQ Corp.*		14,776		380,482

	Number of Shares		Value†
Diversified Financial Services — 2.8%
Affiliated Managers Group, Inc.*		4,060	$	665,596
IntercontinentalExchange, Inc.*		4,160		739,482
				1,405,078
Electronics — 1.3%
FEI Co.		8,630		629,904
Environmental Control — 1.2%
Clean Harbors, Inc.*		12,179		615,405
Food — 1.7%
Annie’s, Inc.*		14,186		606,310
Boulder Brands, Inc.*		20,780		250,399
				856,709
Healthcare Products — 5.0%
Bruker Corp.*		32,510		525,037
Cepheid, Inc.*		17,818		613,296
HeartWare International, Inc.*		2,640		251,090
Sirona Dental Systems, Inc.*		6,350		418,338
Thoratec Corp.*		6,378		199,695
Wright Medical Group, Inc.*		18,757		491,621
				2,499,077
Internet — 6.1%
Angie’s List, Inc.*		16,140		428,517
BroadSoft, Inc.*		15,046		415,270
Expedia, Inc.		8,790		528,718
MercadoLibre, Inc.		4,520		487,075
Netflix, Inc.*		1,950		411,626
Splunk, Inc.*		11,038		511,722
Zillow, Inc. Class A*		5,300		298,390
				3,081,318
Machinery — Diversified — 5.5%
Chart Industries, Inc.*		6,400		602,176
Graco, Inc.		11,970		756,624
Nordson Corp.		9,080		629,335
Wabtec Corp.		15,000		801,450
				2,789,585
Media — 1.7%
AMC Networks, Inc. Class A*		12,940		846,405
Miscellaneous Manufacturing — 1.9%
Colfax Corp.*		10,096		526,103
Movado Group, Inc.		11,050		373,821
Proto Labs, Inc.*		1,228		79,783
				979,707
Oil & Gas — 2.8%
Gulfport Energy Corp.*		12,380		582,727
Oasis Petroleum, Inc.*		9,080		352,940
PDC Energy, Inc.*		8,980		462,290
				1,397,957
Oil & Gas Services — 0.5%
Mrc Global Inc*		8,840		244,161

102

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

SMID Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — 5.2%
Achillion Pharmaceuticals, Inc.*		25,350	$	207,363
Alkermes PLC*		8,970		257,260
BioMarin Pharmaceutical, Inc.*		8,461		472,039
Isis Pharmaceuticals, Inc.*		9,475		254,593
Onyx Pharmaceuticals, Inc.*		7,890		685,010
Orexigen Therapeutics, Inc.*		4,068		23,798
Santarus, Inc.*		18,680		393,214
Synageva BioPharma Corp.*		2,290		96,180
Theravance, Inc.*		5,680		218,850
				2,608,307
Real Estate — 1.4%
CBRE Group, Inc., Class A*		29,920		698,931
Retail — 9.1%
Chico’s FAS, Inc.		30,530		520,842
DSW, Inc., Class A		8,928		655,940
GNC Holdings, Inc., Class A		14,954		661,116
Lumber Liquidators Holdings, Inc.*		6,160		479,679
Panera Bread Co., Class A*		3,825		711,221
PVH Corp.		5,630		704,032
Restoration Hardware Holdings, Inc.*		6,141		460,575
The Finish Line, Inc., Class A		17,143		374,746
				4,568,151
Semiconductors — 0.9%
Cavium, Inc.*		12,360		437,173
Software — 8.3%
ACI Worldwide, Inc.*		13,720		637,706
Aspen Technology, Inc.*		23,820		685,778
athenahealth, Inc.*		2,400		203,328
CommVault Systems, Inc.*		11,950		906,885
Cornerstone OnDemand, Inc.*		11,950		517,316
Guidewire Software, Inc.*		15,620		656,821
ServiceNow, Inc.*		14,255		575,759
				4,183,593
Telecommunications — 4.4%
DigitalGlobe, Inc.*		18,736		581,003
Gogo Inc*		14,408		201,280
IPG Photonics Corp.*		11,670		708,719
SBA Communications Corp., Class A*		9,946		737,198
				2,228,200
Toys, Games & Hobbies — 1.0%
LeapFrog Enterprises, Inc.*		50,500		496,920
Transportation — 1.5%
Kansas City Southern		7,150		757,614
TOTAL COMMON STOCKS (Cost $39,266,518)				48,870,874

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 2.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,392,060)		1,392,060	$	1,392,060
TOTAL INVESTMENTS — 100.0% (Cost $40,658,578)			$	50,262,934

† See Security Valuation Note.

* Non-income producing security.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	48,870,874	$	48,870,874	$	—	$	—
SHORT-TERM INVESTMENTS		1,392,060		1,392,060		—		—
TOTAL INVESTMENTS	$	50,262,934	$	50,262,934	$	—	$	—

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 these financial statements.

103

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

SMID Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 92.1%
Apparel — 1.3%
The Jones Group, Inc.		48,580	$	667,975
Auto Parts & Equipment — 4.6%
Dana Holding Corp.		25,300		487,278
Lear Corp.		10,920		660,223
Tenneco, Inc.*		10,970		496,722
TRW Automotive Holdings Corp.*		11,920		791,965
				2,436,188
Banks — 8.6%
Associated Banc-Corp.		25,380		394,659
CapitalSource, Inc.		51,500		483,070
Comerica, Inc.		17,695		704,792
Huntington Bancshares, Inc.		95,790		754,825
Popular, Inc.		24,819		752,760
Susquehanna Bancshares, Inc.		29,270		376,120
Webster Financial Corp.		11,590		297,631
Zions Bancorporation		27,490		793,911
				4,557,768
Chemicals — 3.2%
Axiall Corp.		11,880		505,850
Chemtura Corp.*		29,120		591,136
Huntsman Corp.		37,340		618,351
				1,715,337
Commercial Services — 0.9%
Convergys Corp.		27,280		475,490
Computers — 0.9%
Insight Enterprises, Inc.*		26,790		475,255
Distribution & Wholesale — 1.5%
Arrow Electronics, Inc.*		20,260		807,361
Diversified Financial Services — 2.1%
Aircastle Ltd.		32,880		525,751
E*Trade Financial Corp.*		46,180		584,639
				1,110,390
Electric — 2.5%
NV Energy, Inc.		31,960		749,782
PNM Resources, Inc.		26,670		591,807
				1,341,589
Electrical Components & Equipment — 1.8%
EnerSys,Inc.		6,800		333,472
General Cable Corp.		19,390		596,242
				929,714
Electronics — 5.5%
AU Optronics Corp.-ADR*		82,960		287,042
Avnet, Inc.*		20,800		698,880
Flextronics International Ltd.*		44,690		345,901
Jabil Circuit, Inc.		28,620		583,275
TTM Technologies, Inc.*		42,390		356,076
Vishay Intertechnology, Inc.*		48,420		672,554
				2,943,728

	Number of Shares		Value†
Engineering & Construction — 1.8%
Granite Construction, Inc.		19,560	$	582,105
Tutor Perini Corp.*		20,420		369,398
				951,503
Entertainment — 1.4%
Regal Entertainment Group, Class A		40,550		725,845
Food — 0.9%
Dole Food Co., Inc.*		38,750		494,063
Gas — 2.4%
Atmos Energy Corp.		14,505		595,575
UGI Corp.		16,890		660,568
				1,256,143
Healthcare Services — 4.2%
Health Net, Inc.*		24,110		767,180
LifePoint Hospitals, Inc.*		14,750		720,390
Universal Health Services, Inc., Class B		11,130		745,265
				2,232,835
Home Builders — 4.6%
Meritage Homes Corp.*		14,170		614,411
NVR, Inc.*		480		442,560
PulteGroup, Inc.*		35,160		666,985
Thor Industries, Inc.		14,100		693,438
				2,417,394
Household Products & Wares — 1.1%
Avery Dennison Corp.		13,890		593,936
Housewares — 0.6%
Newell Rubbermaid, Inc.		11,690		306,863
Insurance — 8.4%
Aspen Insurance Holdings Ltd.		19,360		718,062
Fidelity National Financial, Inc., Class A		28,350		675,014
Genworth Financial, Inc., Class A*		55,170		629,490
Reinsurance Group of America, Inc.		7,905		546,315
Torchmark Corp.		9,980		650,097
Unum Group		20,305		596,358
Validus Holdings Ltd.		18,270		659,912
				4,475,248
Iron & Steel — 3.3%
Commercial Metals Co.		40,550		598,923
Reliance Steel & Aluminum Co.		8,260		541,526
Steel Dynamics, Inc.		39,830		593,865
				1,734,314
Leisure Time — 1.0%
Royal Caribbean Cruises Ltd.		16,100		536,774
Lodging — 1.2%
MGM Resorts International*		42,000		620,760
Machinery — Construction & Mining — 1.1%
Terex Corp.*		22,920		602,796
Media — 0.7%
Gannett Co., Inc.		14,560		356,138

104

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Schedule of Investments — June 30, 2013 (Unaudited)

SMID Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Metal Fabricate/Hardware — 1.4%
Timken Co.		12,990	$	731,077
Office Furnishings — 1.1%
Steelcase, Inc., Class A		40,340		588,157
Oil & Gas — 4.7%
Bill Barrett Corp.*		22,930		463,645
Cimarex Energy Co.		9,870		641,451
Helmerich & Payne, Inc.		9,070		566,421
Stone Energy Corp.*		13,510		297,625
Western Refining, Inc.		18,040		506,383
				2,475,525
Oil & Gas Services — 1.2%
Helix Energy Solutions Group, Inc.*		28,250		650,880
Packaging and Containers — 0.7%
Graphic Packaging Holding Co.*		50,970		394,508
Retail — 3.5%
Abercrombie & Fitch Co., Class A		3,000		135,750
GameStop Corp., Class A		8,630		362,719
Office Depot, Inc.*		131,300		508,131
The Men’s Wearhouse, Inc.		22,200		840,270
				1,846,870
Savings & Loans — 1.3%
First Niagara Financial Group, Inc.		69,460		699,462
Semiconductors — 5.4%
Amkor Technology, Inc.*		40,100		168,821
Entegris, Inc.*		59,360		557,390
Lam Research Corp.*		14,380		637,609
Micron Technology, Inc.*		34,400		492,952
MKS Instruments, Inc.		13,710		363,863
SunEdison, Inc.*		78,520		641,509
				2,862,144
Software — 1.3%
Electronic Arts, Inc.*		29,370		674,629
Telecommunications — 3.0%
Amdocs Ltd.		19,285		715,281
Anixter International, Inc.*		6,610		501,104
Harris Corp.		7,560		372,330
				1,588,715
Transportation — 2.9%
Bristow Group, Inc.		7,445		486,307
Con-way, Inc.		18,180		708,293
Teekay Corp.		7,890		320,571
				1,515,171
TOTAL COMMON STOCKS (Cost $38,450,701)				48,792,545

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — 5.8%
Apartments — 1.2%
Camden Property Trust		4,690	$	324,267
Mid-America Apartment Communities, Inc.		4,400		298,188
				622,455
Diversified — 0.7%
Plum Creek Timber Co., Inc.		8,110		378,494
Healthcare — 1.8%
LTC Properties, Inc.		12,810		500,231
Medical Properties Trust, Inc.		33,020		472,846
				973,077
Hotels & Resorts — 1.3%
RLJ Lodging Trust		32,070		721,254
Office Property — 0.8%
BioMed Realty Trust, Inc.		20,080		406,218
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $2,832,353)				3,101,498
SHORT-TERM INVESTMENTS — 2.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,107,998)		1,107,998		1,107,998
TOTAL INVESTMENTS — 100.0% (Cost $42,391,052)			$	53,002,041

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

Country Weightings as of 06/30/2013††
United States	94	%
Bermuda	2
Canada	1
Puerto Rico	1
Singapore	1
Taiwan	1
Total	100	%

†† % of total investments as of June 30, 2013

105

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

SMID Cap Value Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	48,792,545	$	48,792,545	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		3,101,498		3,101,498		—		—
SHORT-TERM INVESTMENTS		1,107,998		1,107,998		—		—
TOTAL INVESTMENTS	$	53,002,041	$	53,002,041	$	—	$	—

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 these financial statements.

106

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Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 98.1%
Aerospace & Defense — 2.3%
Heico Corp., Class A		31,580	$	1,165,618
TransDigm Group, Inc.*		3,585		562,020
				1,727,638
Apparel — 9.4%
Carter’s, Inc.		38,230		2,831,696
Deckers Outdoor Corp.*		6,185		312,404
Gildan Activewear, Inc.		9,810		397,403
Quiksilver, Inc.*		144,895		933,124
Wolverine World Wide, Inc.		47,955		2,618,823
				7,093,450
Banks — 1.8%
SVB Financial Group*		16,435		1,369,364
Biotechnology — 1.3%
Ariad Pharmaceuticals, Inc.*		22,240		388,977
Incyte Corp. Ltd.*		17,470		384,340
Seattle Genetics, Inc.*		6,610		207,951
				981,268
Commercial Services — 8.2%
CoStar Group, Inc.*		4,925		635,670
Euronet Worldwide, Inc.*		54,855		1,747,680
Gartner, Inc.*		7,360		419,594
Monro Muffler Brake, Inc.		32,930		1,582,286
Ritchie Bros. Auctioneers, Inc.		33,910		651,750
Standard Parking Corp.*		11,165		239,601
VistaPrint N.V.*		17,925		884,957
				6,161,538
Computers — 5.9%
Cadence Design Systems, Inc.*		97,580		1,412,958
Jack Henry & Associates, Inc.		35,525		1,674,293
RealD, Inc.*		45,495		632,381
Stratasys Ltd.*		9,085		760,778
				4,480,410
Distribution & Wholesale — 2.0%
WESCO International, Inc.*		22,240		1,511,430
Diversified Financial Services — 3.9%
Artisan Partners Asset Management, Inc.*		1,035		51,657
Eaton Vance Corp.		9,895		371,953
Financial Engines, Inc.		12,640		576,257
LPL Financial Holdings, Inc.		25,509		963,220
MarketAxess Holdings, Inc.		20,300		949,025
				2,912,112
Electrical Components & Equipment — 1.4%
GrafTech International Ltd.*		144,435		1,051,487
Electronics — 2.5%
Measurement Specialties, Inc.*		14,115		656,771
Sensata Technologies Holding N.V.*		23,600		823,640
Trimble Navigation Ltd.*		16,965		441,260
				1,921,671

	Number of Shares		Value†
Entertainment — 1.4%
National CineMedia, Inc.		60,520	$	1,022,183
Environmental Control — 2.0%
Clean Harbors, Inc.*		29,205		1,475,729
Hand & Machine Tools — 2.7%
Kennametal, Inc.		51,620		2,004,405
Healthcare Products — 6.3%
Endologix, Inc.*		71,620		951,114
IDEXX Laboratories Inc.*		3,560		319,617
Masimo Corp.*		49,770		1,055,124
Quidel Corp.*		26,515		676,928
Techne Corp.		14,240		983,414
Varian Medical Systems, Inc.*		6,005		405,037
Volcano Corp.*		20,710		375,472
				4,766,706
Home Furnishings — 0.5%
DTS, Inc.*		18,910		389,168
Leisure Time — 0.7%
Polaris Industries, Inc.		5,925		562,875
Machinery — Construction & Mining — 0.4%
Joy Global, Inc.		6,710		325,636
Machinery — Diversified — 2.5%
Nordson Corp.		5,570		386,057
Tennant Co.		18,175		877,307
Wabtec Corp./DE		11,360		606,965
				1,870,329
Miscellaneous Manufacturing — 3.7%
Polypore International, Inc.*		56,635		2,282,390
Sodastream International Ltd.*		6,540		475,131
				2,757,521
Oil & Gas — 1.4%
Ultra Petroleum Corp.*		52,440		1,039,361
Oil & Gas Services — 4.1%
Core Laboratories N.V.		2,885		437,539
Dresser-Rand Group, Inc.*		16,285		976,774
Dril-Quip, Inc.*		12,850		1,160,227
Targa Resources Corp.		8,355		537,477
				3,112,017
Pharmaceuticals — 2.3%
Alkermes PLC*		8,175		234,459
BioMarin Pharmaceutical, Inc.*		4,485		250,218
Endo Pharmaceuticals Holdings, Inc.*		2,010		73,948
Ironwood Pharmaceuticals, Inc.*		31,860		317,007
Medivation, Inc.*		7,340		361,128
Pharmacyclics, Inc.*		2,470		196,291
Synageva BioPharma Corp.*		7,485		314,370
				1,747,421
Real Estate — 0.5%
Jones Lang LaSalle, Inc.		3,910		356,357

107

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — 5.5%
Biglari Holdings, Inc.*		199	$	81,670
Casey’s General Stores, Inc.		10,560		635,289
Dunkin’ Brands Group, Inc.		4,985		213,458
Hibbett Sports, Inc.*		30,620		1,699,410
Sally Beauty Holdings, Inc.*		14,460		449,706
Ulta Salon Cosmetics & Fragrance, Inc.*		3,355		336,037
World Fuel Services Corp.		19,255		769,815
				4,185,385
Semiconductors — 3.2%
Atmel Corp.*		197,575		1,452,176
ON Semiconductor Corp.*		122,095		986,528
				2,438,704
Software — 18.2%
athenahealth, Inc.*		11,175		946,746
Blackbaud, Inc.		69,970		2,278,923
Broadridge Financial Solutions, Inc.		79,785		2,120,685
Guidewire Software, Inc.*		11,780		495,349
Informatica Corp.*		50,530		1,767,539
MSCI, Inc.*		30,865		1,026,879
RealPage, Inc.*		70,565		1,294,162
Solera Holdings, Inc.		27,015		1,503,385
SS&C Technologies Holdings, Inc.*		70,610		2,323,069
				13,756,737
Transportation — 4.0%
Expeditors International of Washington, Inc.		11,415		433,884
Landstar System, Inc.		26,870		1,383,805
Old Dominion Freight Line, Inc.*		20,505		853,418
Saia, Inc.*		12,480		374,026
				3,045,133
TOTAL COMMON STOCKS (Cost $71,671,040)				74,066,035
SHORT-TERM INVESTMENTS — 1.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,398,884)		1,398,884		1,398,884
TOTAL INVESTMENTS — 100.0% (Cost $73,069,924)			$	75,464,919

† See Security Valuation Note.

* Non-income producing security.

PLC — Public Limited Company.

Country Weightings as of 06/30/2013††
United States	95	%
Netherlands	3
Canada	1
Israel	1
Total	100	%

†† % of total investments as of June 30, 2013

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	74,066,035	$	74,066,035	$	—	$	—
SHORT-TERM INVESTMENTS		1,398,884		1,398,884		—		—
TOTAL INVESTMENTS	$	75,464,919	$	75,464,919	$	—	$	—

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 these financial statements.

108

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Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 84.7%
Aerospace & Defense — 2.6%
Cubic Corp.		19,702	$	947,666
Kaman Corp.		36,850		1,273,536
Moog, Inc., Class A*		28,359		1,461,339
Teledyne Technologies, Inc.*		13,809		1,068,126
Triumph Group, Inc.		7,689		608,585
				5,359,252
Apparel — 1.5%
Carter’s, Inc.		11,773		872,026
Hanesbrands Inc.		20,472		1,052,670
Steven Madden Ltd.*		25,323		1,225,127
				3,149,823
Auto Parts & Equipment — 1.2%
American Axle & Manufacturing Holdings, Inc.*		77,584		1,445,390
Tenneco, Inc.*		22,991		1,041,032
				2,486,422
Banks — 13.2%
BancorpSouth, Inc.		52,793		934,436
Bank of the Ozarks, Inc.		39,347		1,704,906
Banner Corp.		20,175		681,713
Boston Private Financial Holdings, Inc.		69,116		735,394
Bridge Capital Holdings*		13,631		216,188
CoBiz Financial, Inc.		35,903		297,995
Community Bank System, Inc.		29,685		915,782
First Financial Bankshares, Inc.		19,935		1,109,582
First Midwest Bancorp, Inc.		47,952		657,901
Glacier Bancorp, Inc.		47,126		1,045,726
Hancock Holding Co.		8,934		268,645
Heritage Financial Corp.		15,920		233,228
Home BancShares, Inc.		37,192		965,876
Independent Bank Corp.		19,118		659,571
Independent Bank Group, Inc.*		8,218		249,827
Lakeland Financial Corp.		12,402		344,156
MB Financial, Inc.		44,323		1,187,856
Pinnacle Financial Partners, Inc.*		31,861		819,146
PrivateBancorp, Inc.		62,455		1,324,671
Prosperity Bancshares, Inc.		35,697		1,848,748
Sandy Spring Bancorp, Inc.		16,409		354,763
SCBT Financial Corp.		16,711		842,067
Sierra Bancorp		7,523		111,340
Signature Bank*		26,254		2,179,607
Southcoast Financial Corp.*		14,112		74,088
Sterling Financial Corp.		38,689		920,024
Summit State Bank		8,016		74,389
Texas Capital Bancshares, Inc.*		41,487		1,840,363
The First of Long Island Corp.		8,267		274,382
Trico Bancshares		16,575		353,545
UMB Financial Corp.		31,384		1,747,147
ViewPoint Financial Group, Inc.		42,923		893,228
Webster Financial Corp.		47,895		1,229,944
				27,096,234

	Number of Shares		Value†
Biotechnology — 1.3%
Acorda Therapeutics, Inc.*		17,775	$	586,397
Exact Sciences Corp.*		54,801		762,282
Myriad Genetics, Inc.*		46,136		1,239,674
				2,588,353
Building Materials — 0.5%
Comfort Systems USA, Inc.		73,611		1,098,276
Chemicals — 3.3%
H.B. Fuller Co.		31,130		1,177,025
Methanex Corp.		39,080		1,672,233
PolyOne Corp.		77,780		1,927,388
Quaker Chemical Corp.		7,797		483,492
W.R. Grace & Co.*		10,742		902,758
Westlake Chemical Corp.		6,228		600,442
				6,763,338
Commercial Services — 1.6%
Aaron’s Inc.*		36,744		1,029,199
Convergys Corp.		62,465		1,088,765
Monro Muffler Brake, Inc.		11,231		539,650
TrueBlue, Inc.*		29,928		629,984
				3,287,598
Computers — 1.4%
Electronics for Imaging, Inc.*		40,508		1,145,972
Mentor Graphics Corp.		49,878		975,115
NetScout Systems, Inc.*		26,792		625,325
				2,746,412
Cosmetics & Personal Care — 0.3%
Elizabeth Arden, Inc.*		14,973		674,833
Distribution & Wholesale — 0.3%
Watsco, Inc.		6,023		505,691
Diversified Financial Services — 2.8%
Cohen & Steers, Inc.		7,352		249,821
E*Trade Financial Corp.*		73,228		927,067
Manning & Napier, Inc.		10,901		193,602
MarketAxess Holdings, Inc.		18,775		877,731
Ocwen Financial Corp.*		23,803		981,160
Piper Jaffray Cos.*		5,477		173,128
Stifel Financial Corp.*		40,227		1,434,897
Walter Investment Management Corp.*		21,799		737,024
WisdomTree Investments, Inc.*		17,283		199,964
				5,774,394
Electric — 4.4%
ALLETE, Inc.		15,649		780,103
Black Hills Corp.		8,951		436,361
Cleco Corp.		43,995		2,042,688
El Paso Electric Co.		64,408		2,274,247
IDACORP, Inc.		41,030		1,959,593
NorthWestern Corp.		12,996		518,540
UNS Energy Corp.		22,195		992,782
				9,004,314

109

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Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electrical Components & Equipment — 1.7%
Acuity Brands, Inc.		8,506	$	642,373
Advanced Energy Industries, Inc.*		37,676		655,939
Belden, Inc.		23,762		1,186,437
Littelfuse, Inc.		8,863		661,268
Powell Industries, Inc.*		6,144		317,338
				3,463,355
Electronics — 1.7%
Coherent, Inc.*		11,825		651,203
Newport Corp.*		71,022		989,336
PerkinElmer, Inc.		54,162		1,760,265
				3,400,804
Engineering & Construction — 0.4%
Michael Baker Corp.		8,460		229,351
MYR Group, Inc.*		29,380		571,441
				800,792
Entertainment — 1.1%
Marriott Vacations Worldwide Corp.*		25,029		1,082,254
Six Flags Entertainment Corp.		14,546		511,437
Vail Resorts, Inc.		11,886		731,227
				2,324,918
Environmental Control — 0.3%
Waste Connections, Inc.		16,781		690,370
Food — 0.6%
The Hain Celestial Group, Inc.*		18,159		1,179,790
Forest Products & Paper — 0.7%
KapStone Paper and Packaging Corp.*		35,645		1,432,216
Gas — 1.4%
Southwest Gas Corp.		62,173		2,909,075
Hand & Machine Tools — 0.3%
Regal-Beloit Corp.		10,578		685,878
Healthcare Products — 0.2%
Teleflex, Inc.		5,483		424,878
Healthcare Services — 0.9%
HealthSouth Corp.*		35,767		1,030,090
ICON PLC*		23,971		849,292
				1,879,382
Holding Companies — 0.2%
Primoris Services Corp.		19,277		380,142
Home Builders — 1.5%
Meritage Homes Corp.*		27,423		1,189,061
Standard Pacific Corp.*		105,638		879,965
William Lyon Homes*		36,456		919,056
				2,988,082
Home Furnishings — 0.2%
Harman International Industries, Inc.		8,962		485,740
Household Products & Wares — 1.2%
Prestige Brands Holdings, Inc.*		31,080		905,671
Spectrum Brands Holdings, Inc.		27,092		1,540,722
				2,446,393

	Number of Shares		Value†
Insurance — 4.6%
American Equity Investment Life Holding Co.		146,071	$	2,293,315
Aspen Insurance Holdings Ltd.		27,999		1,038,483
Enstar Group Ltd.*		5,349		711,310
Maiden Holdings Ltd.		63,813		715,982
Markel Corp.*		1,070		563,836
Meadowbrook Insurance Group, Inc.		123,254		989,730
ProAssurance Corp.		32,240		1,681,638
Radian Group, Inc.		85,779		996,752
RLI Corp.		5,741		438,670
				9,429,716
Investment Companies — 1.0%
Golub Capital BDC, Inc.		19,376		339,080
New Mountain Finance Corp.		24,913		352,768
PennantPark Investment Corp.		37,013		408,994
Solar Capital Ltd.		17,153		396,063
Solar Senior Capital Ltd.		11,291		207,867
THL Credit, Inc.		20,183		306,580
				2,011,352
Iron & Steel — 0.6%
Carpenter Technology Corp.		13,737		619,126
Commercial Metals Co.		43,544		643,145
				1,262,271
Leisure Time — 1.0%
Arctic Cat, Inc.		15,817		711,449
Brunswick Corp.		15,318		489,410
Polaris Industries, Inc.		7,795		740,525
				1,941,384
Machinery — Diversified — 2.0%
Altra Holdings, Inc.		20,859		571,120
Applied Industrial Technologies, Inc.		28,722		1,388,134
Edwards Group Ltd. ADR*		79,504		675,784
Graco, Inc.		14,503		916,735
Twin Disc, Inc.		19,126		453,286
				4,005,059
Media — 0.4%
Sinclair Broadcast Group, Inc., Class A		28,596		840,150
Metal Fabricate/Hardware — 0.9%
CIRCOR International, Inc.		16,048		816,201
Olympic Steel, Inc.		12,124		297,038
RBC Bearings, Inc.*		15,188		789,017
				1,902,256
Mining — 0.9%
Kaiser Aluminum Corp.		28,169		1,744,788
Miscellaneous Manufacturing — 3.0%
A.O. Smith Corp.		16,668		604,715
Actuant Corp., Class A		34,135		1,125,431
Barnes Group, Inc.		34,335		1,029,707
Carlisle Cos., Inc.		28,017		1,745,739
Crane Co.		12,199		730,964

110

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Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — (continued)
Koppers Holdings, Inc.		7,893	$	301,355
Movado Group, Inc.		8,672		293,374
Raven Industries, Inc.		7,540		226,049
				6,057,334
Oil & Gas — 3.3%
Approach Resources, Inc.*		69,644		1,711,153
Diamondback Energy, Inc.*		24,095		802,845
Laredo Petroleum Holdings, Inc.*		89,265		1,835,288
Rex Energy Corp.*		130,932		2,301,785
				6,651,071
Oil & Gas Services — 3.2%
Dril-Quip, Inc.*		20,889		1,886,068
Forum Energy Technologies, Inc.*		55,228		1,680,588
Newpark Resources, Inc.*		137,191		1,507,729
TETRA Technologies, Inc.*		75,892		778,652
Thermon Group Holdings, Inc.*		33,908		691,723
				6,544,760
Packaging and Containers — 0.5%
Graphic Packaging Holding Co.*		142,165		1,100,357
Pharmaceuticals — 0.3%
Infinity Pharmaceuticals, Inc.*		37,239		605,134
Retail — 3.3%
Asbury Automotive Group, Inc.*		19,664		788,526
Cabela’s, Inc.*		10,513		680,822
Chico’s FAS, Inc.		22,141		377,726
First Cash Financial Services, Inc.*		10,475		515,475
Francesca’s Holdings Corp.*		13,168		365,939
GNC Holdings, Inc., Class A		20,002		884,288
OfficeMax, Inc.		88,337		903,688
Shoe Carnival, Inc.		28,710		689,327
Susser Holdings Corp.*		24,297		1,163,340
Vitamin Shoppe, Inc.*		10,137		454,543
				6,823,674
Savings & Loans — 1.8%
Brookline Bancorp, Inc.		41,849		363,249
Dime Community Bancshares, Inc.		24,931		381,943
Flushing Financial Corp.		35,284		580,422
Home Loan Servicing Solutions Ltd.		36,239		868,649
Oritani Financial Corp.		31,649		496,256
Provident Financial Services, Inc.		43,798		691,133
WSFS Financial Corp.		6,429		336,815
				3,718,467
Semiconductors — 3.4%
Cabot Microelectronics Corp.*		32,464		1,071,637
Fairchild Semiconductor International, Inc.*		95,158		1,313,180
Intersil Corp., Class A		124,058		970,134
Micrel, Inc.		41,699		411,986
MKS Instruments, Inc.		41,648		1,105,338
Semtech Corp.*		45,815		1,604,899
Silicon Laboratories, Inc.*		13,655		565,454
				7,042,628

	Number of Shares		Value†
Software — 3.6%
Allscripts Healthcare Solutions, Inc.*		96,229	$	1,245,203
Digi International, Inc.*		33,588		314,720
Monotype Imaging Holdings, Inc.		30,001		762,325
Progress Software Corp.*		8,860		203,869
PTC, Inc.*		65,096		1,596,805
SS&C Technologies Holdings, Inc.*		44,196		1,454,048
SYNNEX Corp.*		21,402		904,877
Verint Systems, Inc.*		27,150		963,010
				7,444,857
Telecommunications — 2.3%
ADTRAN, Inc.		32,264		794,017
Anixter International, Inc.*		19,552		1,482,237
Plantronics, Inc.		2,229		97,898
Premiere Global Services, Inc.*		90,390		1,091,007
West Corp.		55,866		1,236,873
				4,702,032
Textiles — 0.6%
G&K Services, Inc., Class A		26,142		1,244,359
Transportation — 1.2%
Celadon Group, Inc.		18,986		346,495
Forward Air Corp.		28,880		1,105,526
Gulfmark Offshore, Inc., Class A		23,853		1,075,532
				2,527,553
TOTAL COMMON STOCKS (Cost $136,448,325)				173,625,957
REAL ESTATE INVESTMENT TRUSTS — 12.9%
Apartments — 0.9%
American Campus Communities, Inc.		18,069		734,686
Mid-America Apartment Communities, Inc.		17,137		1,161,374
				1,896,060
Building & Real Estate — 4.1%
Apollo Commercial Real Estate Finance, Inc.		80,321		1,275,497
Blackstone Mortgage Trust, Inc., Class A		59,352		1,465,994
CYS Investments, Inc.		125,700		1,157,697
Kennedy-Wilson Holdings, Inc.		62,144		1,034,076
MFA Financial, Inc.		180,862		1,528,284
National Retail Properties, Inc.		28,769		989,654
Two Harbors Investment Corp.		97,750		1,001,938
				8,453,140
Diversified — 2.8%
Coresite Realty Corp.		25,966		825,978
DuPont Fabros Technology, Inc.		63,970		1,544,876
EPR Properties		33,296		1,673,790
PS Business Parks, Inc.		22,934		1,655,147
				5,699,791
Healthcare — 0.9%
Healthcare Trust of America, Inc.*		47,293		531,100
LTC Properties, Inc.		31,859		1,244,094
				1,775,194

111

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Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Value Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Hotels & Resorts — 1.6%
LaSalle Hotel Properties		48,539	$	1,198,913
Pebblebrook Hotel Trust		40,037		1,034,957
Strategic Hotels & Resorts, Inc.		113,540		1,005,964
				3,239,834
Office Property — 1.0%
Highwoods Properties, Inc.		25,590		911,260
Hudson Pacific Properties, Inc.		56,988		1,212,705
				2,123,965
Regional Malls — 0.5%
CBL & Associates Properties, Inc.		45,721		979,344
Storage & Warehousing — 0.7%
CubeSmart		88,790		1,418,864
Strip Centers — 0.4%
Acadia Realty Trust		37,829		933,998
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $22,439,121)				26,520,190
WARRANTS — 0.0%
Magnum Hunter Resources Corp. (Cost $0)		6,348		889
SHORT-TERM INVESTMENTS — 2.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,964,739)		4,964,739		4,964,739
TOTAL INVESTMENTS — 100.0% (Cost $163,852,185)			$	205,111,775

† 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 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	173,625,957	$	173,625,957	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		26,520,190		26,520,190		—		—
WARRANTS		889		—		889		—
SHORT-TERM INVESTMENTS		4,964,739		4,964,739		—		—
TOTAL INVESTMENTS	$	205,111,775	$	205,110,886	$	889	$	—

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 significant 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.

112

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Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — 89.9%
Advertising — 0.1%
Harte-Hanks, Inc.		1,678	$	14,431
Marchex, Inc., Class B		745		4,485
MDC Partners, Inc.		1,200		21,648
Millennial Media, Inc.*		1,400		12,194
Valuevision Media, Inc.*		1,700		8,687
				61,445
Aerospace & Defense — 1.3%
AAR Corp.		1,569		34,487
AeroVironment, Inc.*		718		14,489
Astronics Corp.*		531		21,702
Cubic Corp.		669		32,179
Curtiss-Wright Corp.		1,726		63,966
Ducommun, Inc.*		400		8,504
Esterline Technologies Corp.*		1,140		82,411
GenCorp, Inc.*		2,440		39,674
HEICO Corp.		2,012		101,344
Kaman Corp.		1,048		36,219
Kratos Defense & Security Solutions, Inc.*		922		5,975
LMI Aerospace, Inc.*		153		2,867
M/A-COM Technology Solutions Holdings, Inc.*		500		7,300
Moog, Inc., Class A*		1,691		87,137
National Presto Industries, Inc.		146		10,516
Orbital Sciences Corp.*		2,196		38,145
Teledyne Technologies, Inc.*		1,404		108,599
				695,514
Agriculture — 0.3%
Alico, Inc.		51		2,046
Alliance One International, Inc.*		2,256		8,573
Griffin Land & Nurseries, Inc.		40		1,141
Limoneira Co.		600		12,438
Tejon Ranch Co.*		388		11,054
The Andersons, Inc.		755		40,158
Universal Corp.		855		49,462
Vector Group Ltd.		2,038		33,056
				157,928
Airlines — 0.6%
Allegiant Travel Co.*		501		53,101
Hawaiian Holdings, Inc.*		1,326		8,102
JetBlue Airways Corp.*		8,128		51,206
Republic Airways Holdings, Inc.*		1,901		21,538
SkyWest, Inc.		1,881		25,469
Spirit Airlines, Inc.*		2,300		73,071
US Airways Group, Inc.*		6,218		102,100
				334,587
Apparel — 1.1%
Columbia Sportswear Co.		511		32,014
Crocs, Inc.*		3,200		52,800
G-III Apparel Group Ltd.*		704		33,877
Iconix Brand Group, Inc.*		2,142		62,996
Maidenform Brands, Inc.*		738		12,790
Oxford Industries, Inc.		508		31,699

	Number of Shares		Value†
Apparel — (continued)
Perry Ellis International, Inc.*		414	$	8,408
Quiksilver, Inc.*		4,460		28,722
RG Barry Corp.		200		3,248
Skechers U.S.A., Inc., Class A*		1,616		38,800
Steven Madden Ltd.*		1,433		69,329
The Jones Group, Inc.		3,165		43,519
True Religion Apparel, Inc.		1,026		32,483
Unifi, Inc.*		360		7,441
Weyco Group, Inc.		100		2,520
Wolverine World Wide, Inc.		1,891		103,268
				563,914
Auto Manufacturers — 0.0%
Wabash National Corp.*		2,200		22,396
Auto Parts & Equipment — 1.1%
Accuride Corp.*		1,000		5,060
American Axle & Manufacturing Holdings, Inc.*		2,416		45,010
Commercial Vehicle Group, Inc.*		600		4,476
Cooper Tire & Rubber Co.		2,249		74,599
Dana Holding Corp.		5,396		103,927
Dorman Products, Inc.*		892		40,702
Douglas Dynamics, Inc.		500		6,490
Federal-Mogul Corp.*		1,516		15,479
Fuel Systems Solutions, Inc.*		634		11,342
Gentherm, Inc.*		1,168		21,690
Meritor, Inc.*		3,645		25,697
Miller Industries, Inc.		443		6,813
Modine Manufacturing Co.*		2,077		22,598
Remy International Inc		600		11,142
Spartan Motors, Inc.		917		5,612
Standard Motor Products, Inc.		700		24,038
Superior Industries International, Inc.		1,119		19,258
Tenneco, Inc.*		2,300		104,144
Titan International, Inc.		1,913		32,272
Tower International, Inc.*		200		3,958
				584,307
Banks — 6.7%
1st Source Corp.		626		14,874
1st United Bancorp, Inc.		400		2,688
American National Bankshares, Inc.		400		9,296
Ameris Bancorp*		947		15,957
Ames National Corp.		199		4,529
Arrow Financial Corp.		357		8,836
Bancfirst Corp.		160		7,448
Banco Latinoamericano de Exportaciones S.A., Class E		1,110		24,853
Bancorp, Inc.*		1,412		21,166
BancorpSouth, Inc.		3,449		61,047
Bank of Kentucky Financial Corp.		200		5,688
Bank of Marin Bancorp		90		3,600
Bank of the Ozarks, Inc.		1,076		46,623
Banner Corp.		800		27,032
Bar Harbor Bankshares		200		7,310

113

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Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
BBCN Bancorp, Inc.		3,185	$	45,291
BNC Bancorp		800		9,136
Boston Private Financial Holdings, Inc.		2,858		30,409
Bridge Bancorp, Inc.		307		6,908
Bridge Capital Holdings*		300		4,758
Bryn Mawr Bank Corp.		532		12,731
C&F Financial Corp		100		5,573
Camden National Corp.		326		11,563
Capital Bank Financial Corp., Class A*		1,000		18,990
Capital City Bank Group, Inc.*		269		3,102
Cardinal Financial Corp.		918		13,440
Cass Information Systems, Inc.		454		20,929
Cathay General Bancorp		3,050		62,067
Center Bancorp, Inc.		400		5,076
Centerstate Banks of Florida, Inc.		1,432		12,430
Central Pacific Financial Corp.*		800		14,400
Century Bancorp, Inc., Class A		69		2,415
Chemical Financial Corp.		1,066		27,705
Citizens & Northern Corp.		356		6,878
City Holding Co.		648		25,240
CNB Financial Corp.		474		8,030
CoBiz Financial, Inc.		1,700		14,110
Columbia Banking System, Inc.		1,914		45,572
Community Bank System, Inc.		1,511		46,614
Community Trust Bancorp, Inc.		621		22,120
CU Bancorp*		400		6,320
Customers Bancorp Inc*		800		13,000
CVB Financial Corp.		3,592		42,242
Eagle Bancorp, Inc.*		973		21,776
Enterprise Bancorp, Inc.		300		5,547
Enterprise Financial Services Corp.		382		6,097
F.N.B. Corp.		5,308		64,121
Farmers Capital Bank Corp.*		300		6,507
Financial Institutions, Inc.		340		6,259
First Bancorp		824		11,618
First Bancorp Puerto Rico*		3,100		21,948
First Bancorp, Inc.		234		4,090
First Busey Corp.		1,802		8,109
First Commonwealth Financial Corp.		4,021		29,635
First Community Bancshares, Inc.		626		9,816
First Connecticut Bancorp, Inc.		659		9,173
First Financial Bancorp		2,205		32,855
First Financial Bankshares, Inc.		1,126		62,673
First Financial Corp.		280		8,677
First Interstate Bancsystem, Inc.		600		12,438
First Merchants Corp.		1,238		21,232
First Midwest Bancorp, Inc.		2,814		38,608
FirstMerit Corp.		6,294		126,069
Franklin Financial Corp.*		400		7,204
German American Bancorp, Inc.		292		6,576
Glacier Bancorp, Inc.		2,721		60,379
Great Southern Bancorp, Inc.		471		12,698
Guaranty Bancorp		900		10,215
Hancock Holding Co.		2,972		89,368
Hanmi Financial Corp*		1,213		21,434
Heartland Financial USA, Inc.		717		19,710

	Number of Shares		Value†
Banks — (continued)
Heritage Commerce Corp.*		600	$	4,200
Heritage Financial Corp.		508		7,442
Home BancShares, Inc.		1,764		45,811
Horizon Bancorp		400		8,164
Hudson Valley Holding Corp.		462		7,845
Iberiabank Corp.		1,046		56,076
Independent Bank Corp.		771		26,600
International Bancshares Corp.		1,925		43,466
Lakeland Bancorp, Inc.		1,059		11,045
Lakeland Financial Corp.		494		13,709
MainSource Financial Group, Inc.		521		6,997
MB Financial, Inc.		2,049		54,913
Mercantile Bank Corp.		500		8,985
Merchants Bancshares, Inc.		86		2,543
Metro Bancorp, Inc.*		563		11,277
Metrocorp Bancshares, Inc.		900		8,784
MidSouth Bancorp, Inc.		186		2,889
MidWestOne Financial Group, Inc.		400		9,624
National Bankshares, Inc.		119		4,228
National Penn Bancshares, Inc.		4,487		45,588
NBT Bancorp, Inc.		1,469		31,099
Newbridge Bancorp*		1,100		6,589
Northrim BanCorp, Inc.		400		9,676
OFG Bancorp		1,810		32,779
Old National Bancorp		3,786		52,360
OmniAmerican Bancorp, Inc.*		291		6,411
Pacific Continental Corp.		262		3,092
PacWest Bancorp		1,408		43,155
Park National Corp.		424		29,167
Park Sterling Corp.*		1,600		9,456
Peapack-Gladstone Financial Corp.		500		8,750
Penns Woods Bancorp, Inc.		68		2,846
Peoples Bancorp, Inc.		272		5,734
Pinnacle Financial Partners, Inc.*		1,463		37,614
Preferred Bank Los Angeles CA*		700		11,536
PrivateBancorp, Inc.		2,598		55,104
Prosperity Bancshares, Inc.		2,226		115,285
Renasant Corp.		1,037		25,241
Republic Bancorp, Inc., Class A		387		8,483
S&T Bancorp, Inc.		1,259		24,676
S.Y. Bancorp, Inc.		445		10,916
Sandy Spring Bancorp, Inc.		785		16,972
SCBT Financial Corp.		596		30,032
Seacoast Banking Corp. of Florida*		2,200		4,840
Sierra Bancorp		212		3,138
Simmons First National Corp., Class A		800		20,872
Southside Bancshares, Inc.		693		16,549
Southwest Bancorp, Inc.*		436		5,755
State Bank Financial Corp.		1,500		22,545
StellarOne Corp.		616		12,104
Sterling Bancorp		1,486		17,267
Sterling Financial Corp.		1,200		28,536
Suffolk Bancorp*		443		7,239
Sun Bancorp, Inc.*		1,100		3,729
Susquehanna Bancshares, Inc.		6,833		87,804
Taylor Capital Group, Inc.*		833		14,069

114

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Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
Texas Capital Bancshares, Inc.*		1,573	$	69,778
The First of Long Island Corp.		195		6,472
Tompkins Financial Corp.		558		25,216
TowneBank		972		14,308
Trico Bancshares		604		12,883
TrustCo Bank Corp.		3,252		17,691
Trustmark Corp.		2,430		59,729
UMB Financial Corp.		1,281		71,313
Umpqua Holdings Corp.		3,962		59,470
Union First Market Bankshares Corp.		742		15,278
United Bankshares, Inc.		1,894		50,096
United Community Banks, Inc.*		1,878		23,325
Univest Corp. of Pennsylvania		600		11,442
ViewPoint Financial Group, Inc.		1,366		28,426
Virginia Commerce Bancorp*		1,100		15,356
Walker & Dunlap*		400		7,000
Washington Banking Co.		475		6,745
Washington Trust Bancorp, Inc.		670		19,108
Webster Financial Corp.		3,328		85,463
WesBanco, Inc.		1,115		29,469
West Bancorporation, Inc.		268		3,149
Westamerica Bancorporation		973		44,456
Western Alliance Bancorp*		2,775		43,928
Wilshire Bancorp, Inc.		1,576		10,433
Wintrust Financial Corp.		1,342		51,372
Yadkin Valley Financial Corp*		600		8,424
				3,524,764
Beverages — 0.1%
Coca-Cola Bottling Co. Consolidated		174		10,640
Farmers Brothers Co.*		204		2,868
National Beverage Corp.*		242		4,228
The Boston Beer Co., Inc., Class A*		310		52,898
				70,634
Biotechnology — 2.0%
Acorda Therapeutics, Inc.*		1,531		50,508
Alnylam Pharmaceuticals, Inc.*		2,139		66,330
AMAG Pharmaceuticals, Inc.*		856		19,046
Arena Pharmaceuticals, Inc.*		8,506		65,496
Arqule, Inc.*		1,796		4,167
Astex Pharmaceuticals, Inc.*		3,951		16,239
Biotime, Inc.*		400		1,584
Cambrex Corp.*		1,167		16,303
Cell Therapeutics Inc*		5,000		5,250
Celldex Therapeutics, Inc.*		2,744		42,834
Coronado Biosciences, Inc.*		800		6,880
Curis, Inc.*		2,973		9,484
Cytokinetics Inc*		1,000		11,570
Dendreon Corp.*		4,900		20,188
Dynavax Technologies Corp.*		7,500		8,250
Emergent BioSolutions, Inc.*		758		10,930
Enzon Pharmaceuticals, Inc.*		905		1,810
Epizyme Inc*		300		8,439
Exact Sciences Corp.*		2,400		33,384
Exelixis, Inc.*		6,969		31,639

	Number of Shares		Value†
Biotechnology — (continued)
Galena Biopharma, Inc.*		3,600	$	7,992
Geron Corp.*		2,750		4,125
GTx, Inc.*		1,000		6,600
Halozyme Therapeutics, Inc.*		3,589		28,497
Harvard Bioscience, Inc.*		700		3,311
ImmunoGen, Inc.*		3,263		54,133
Immunomedics, Inc.*		2,936		15,972
Insmed, Inc.*		1,100		13,156
Intercept Pharmaceuticals, Inc.*		200		8,968
InterMune, Inc.*		3,143		30,236
KYTHERA Biopharmaceuticals, Inc.*		200		5,410
Lexicon Pharmaceuticals, Inc.*		8,826		19,152
Ligand Pharmaceuticals, Inc.*		644		24,099
Merrimack Pharmaceuticals Inc*		3,500		23,590
Momenta Pharmaceuticals, Inc.*		1,882		28,343
Nanosphere, Inc.*		1,800		5,526
NeoGenomics Inc*		1,200		4,776
Newlink Genetics Corp.*		600		11,832
Novavax, Inc.*		4,729		9,694
NPS Pharmaceuticals, Inc.*		3,557		53,711
Omeros Corp.*		1,000		5,040
OncoGenex Pharmaceutical, Inc.*		300		2,940
Pacific Biosciences of California, Inc.*		800		2,016
PDL BioPharma, Inc.		5,117		39,503
Peregrine Pharmaceuticals, Inc.*		5,800		7,482
Prothena Corp. PLC*		500		6,455
Puma Biotechnology Inc*		800		35,496
Repligen Corp.*		1,300		10,712
RTI Biologics, Inc.*		2,035		7,652
Sangamo Biosciences, Inc.*		2,103		16,424
Sequenom, Inc.*		5,097		21,458
Stemline Therapeutics Inc*		400		9,536
Sunesis Pharmaceuticals, Inc.*		1,400		7,294
The Medicines Co.*		2,092		64,350
Trius Therapeutics, Inc.*		1,200		9,744
Verastem Inc*		600		8,328
Vical, Inc.*		2,121		6,639
XOMA Corp.*		3,600		13,068
ZIOPHARM Oncology, Inc.*		1,500		3,150
				1,066,741
Building & Real Estate — 0.0%
AV Homes, Inc.*		195		3,457
Building Materials — 1.1%
AAON, Inc.		838		27,721
Apogee Enterprises, Inc.		1,043		25,032
Boise Cascade Co.*		500		12,705
Builders FirstSource, Inc.*		1,273		7,612
Comfort Systems USA, Inc.		1,227		18,307
Drew Industries, Inc.*		791		31,102
Gibraltar Industries, Inc.*		1,101		16,031
Headwaters, Inc.*		2,880		25,459
Louisiana-Pacific Corp.*		5,194		76,819
LSI Industries, Inc.		314		2,540
NCI Building Systems, Inc.*		764		11,682

115

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Building Materials — (continued)
Nortek, Inc.*		300	$	19,329
Patrick Industries, Inc.*		300		6,237
PGT, Inc.*		1,700		14,739
Ply Gem Holdings Inc*		600		12,036
Quanex Building Products Corp.		1,225		20,629
Simpson Manufacturing Co., Inc.		1,485		43,689
Texas Industries, Inc.*		833		54,262
Trex Co., Inc.*		631		29,966
Universal Forest Products, Inc.		783		31,257
US Concrete Inc*		600		9,852
USG Corp.*		3,000		69,150
				566,156
Chemicals — 2.0%
A. Schulman, Inc.		1,188		31,862
Aceto Corp.		1,042		14,515
American Pacific Corp.*		300		8,505
American Vanguard Corp.		1,078		25,258
Axiall Corp.		2,600		110,708
Balchem Corp.		1,105		49,449
Chemtura Corp.*		3,644		73,973
Ferro Corp.*		2,638		18,334
H.B. Fuller Co.		1,780		67,302
Hawkins, Inc.		249		9,808
Innophos Holdings, Inc.		796		37,547
Innospec, Inc.		900		36,162
Intrepid Potash, Inc.*		2,100		40,005
KMG Chemicals, Inc.		200		4,220
Kraton Performance Polymers, Inc.*		1,041		22,069
Landec Corp.*		1,218		16,090
Minerals Technologies, Inc.		1,328		54,899
Olin Corp.		2,992		71,569
OM Group, Inc.*		1,254		38,774
OMNOVA Solutions, Inc.*		1,168		9,356
PolyOne Corp.		3,755		93,049
Quaker Chemical Corp.		511		31,687
Rentech, Inc.*		7,187		15,093
Sensient Technologies Corp.		1,774		71,794
Stepan Co.		708		39,372
Taminco Corp*		600		12,234
Zep, Inc.		592		9,371
Zoltek Cos., Inc.*		1,395		18,009
				1,031,014
Coal — 0.3%
Alpha Natural Resources, Inc.*		8,300		43,492
Arch Coal, Inc.		7,900		29,862
Cloud Peak Energy, Inc.*		2,200		36,256
SunCoke Energy, Inc.*		2,441		34,223
Walter Energy, Inc.		2,400		24,960
Westmoreland Coal Co.*		300		3,369
				172,162
Commercial Services — 6.1%
ABM Industries, Inc.		2,139		52,427
Acacia Research Corp.		1,880		42,018

	Number of Shares		Value†
Commercial Services — (continued)
Accretive Health, Inc.*		2,012	$	21,750
Albany Molecular Research, Inc.*		900		10,683
American Public Education, Inc.*		755		28,056
AMN Healthcare Services, Inc.*		1,909		27,337
Arbitron, Inc.		1,071		49,748
ARC Document Solutions, Inc.*		736		2,944
Ascent Capital Group Inc., Class A*		531		41,455
AVEO Pharmaceuticals, Inc.*		1,400		3,500
Barrett Business Services, Inc.		342		17,856
Bridgepoint Education, Inc.*		533		6,492
Bright Horizons Family Solutions Inc*		400		13,884
Capella Education Co.*		407		16,951
Cardtronics, Inc.*		1,763		48,659
Career Education Corp.*		2,300		6,670
Carriage Services, Inc.		600		10,170
CBIZ, Inc.*		1,340		8,991
CDI Corp.		241		3,413
Cenveo, Inc.*		1,299		2,767
Chemed Corp.		729		52,801
Consolidated Graphics, Inc.*		242		11,376
Convergys Corp.		3,883		67,681
Corinthian Colleges, Inc.*		1,570		3,517
Corvel Corp.*		362		10,596
CoStar Group, Inc.*		1,062		137,072
CRA International, Inc.*		274		5,061
Cross Country Healthcare, Inc.*		584		3,013
Deluxe Corp.		1,907		66,077
Education Management Corp.*		1,500		8,430
Electro Rent Corp.		715		12,005
Ennis, Inc.		858		14,835
Euronet Worldwide, Inc.*		1,855		59,100
EVERTEC, Inc.*		1,100		24,167
Examworks Group, Inc.*		1,200		25,476
ExlService Holdings, Inc.*		1,200		35,472
Forrester Research, Inc.		575		21,097
Franklin Covey Co.*		241		3,244
FTI Consulting, Inc.*		1,556		51,177
Global Cash Access Holdings, Inc.*		2,396		14,999
Grand Canyon Education, Inc.*		1,756		56,596
Great Lakes Dredge & Dock Corp.		2,751		21,513
Green Dot Corp.*		900		17,955
H&E Equipment Services, Inc.*		959		20,206
Healthcare Services Group		2,480		60,810
Heartland Payment Systems, Inc.		1,469		54,720
Heidrick & Struggles International, Inc.		669		11,186
Hillenbrand, Inc.		2,174		51,545
HMS Holdings Corp.*		3,115		72,579
Huron Consulting Group, Inc.*		928		42,911
ICF International, Inc.*		748		23,569
Insperity, Inc.		924		27,997
Intersections, Inc.		300		2,631
ITT Educational Services, Inc.*		900		21,960
K12, Inc.*		1,152		30,263
Kelly Services, Inc., Class A		1,014		17,715
Kforce, Inc.*		1,086		15,856
Korn/Ferry International*		1,790		33,545

116

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Commercial Services — (continued)
Landauer, Inc.		280	$	13,527
LifeLock, Inc.*		2,300		26,933
Lincoln Educational Services Corp.		565		2,978
Live Nation Entertainment, Inc.*		4,971		77,050
Mac-Gray Corp.		199		2,826
MAXIMUS, Inc.		1,244		92,653
McGrath Rentcorp		953		32,554
Medifast, Inc.*		631		16,255
MoneyGram International Inc*		878		19,887
Monro Muffler Brake, Inc.		1,237		59,438
Monster Worldwide, Inc.*		3,900		19,149
Multi-Color Corp.		367		11,135
National Research Corp*		87		1,566
Navigant Consulting, Inc.*		1,984		23,808
Odyssey Marine Exploration, Inc.*		1,800		5,328
On Assignment, Inc.*		1,752		46,813
PAREXEL International Corp.*		2,099		96,428
Pendrell Corp.*		5,800		15,196
Performant Financial Corp*		900		10,431
PHH Corp.*		2,289		46,650
PRGX Global*		600		3,294
Quad /Graphics, Inc.		1,000		24,100
Rent-A-Center, Inc.		2,253		84,600
Resources Connection, Inc.		1,822		21,135
RPX Corp.*		900		15,120
ServiceSource International, Inc.*		2,400		22,368
Sotheby’s		2,441		92,538
Standard Parking Corp.*		393		8,434
Stewart Enterprises, Inc., Class A		2,708		35,448
Strayer Education, Inc.		400		19,532
Swisher Hygiene, Inc.*		2,100		1,806
Team Health Holdings, Inc.*		2,572		105,632
Team, Inc.*		792		29,977
TeleTech Holdings, Inc.*		707		16,565
The Advisory Board Co.*		1,350		73,777
The Brink’s Co.		1,610		41,071
The Corporate Executive Board Co.		1,269		80,226
The Hackett Group, Inc.		516		2,678
The Providence Service Corp.*		400		11,636
TMS International Corp.		300		4,449
TrueBlue, Inc.*		1,576		33,175
Universal Technical Institute, Inc.		525		5,423
Valassis Communications, Inc.		1,366		33,590
Viad Corp.		771		18,905
VistaPrint NV*		1,200		59,244
WEX, Inc.*		1,457		111,752
Xoom Corp*		300		6,876
				3,210,480
Computers — 1.7%
Acorn Energy, Inc.		1,000		8,440
Agilysys, Inc.*		376		4,245
CACI International, Inc., Class A*		850		53,967
Carbonite Inc*		800		9,912
CIBER, Inc.*		3,557		11,880
Computer Task Group, Inc.		579		13,300

	Number of Shares		Value†
Computers — (continued)
Cray, Inc.*		1,299	$	25,512
Datalink Corp.*		900		9,576
Digimarc Corp.		100		2,077
Electronics for Imaging, Inc.*		1,724		48,772
Fusion-io, Inc.*		2,900		41,296
iGate Corp.*		1,157		18,998
Imation Corp.*		584		2,470
Immersion Corp.*		842		11,157
Insight Enterprises, Inc.*		1,843		32,695
j2 Global, Inc.		1,674		71,162
LivePerson, Inc.*		1,925		17,238
Manhattan Associates, Inc.*		717		55,324
Maxwell Technologies, Inc.*		666		4,762
Mentor Graphics Corp.		3,576		69,911
Mercury Computer Systems, Inc.*		736		6,786
Mitek Systems, Inc.*		1,000		5,780
MTS Systems Corp.		560		31,696
NetScout Systems, Inc.*		1,265		29,525
Quantum Corp.*		8,761		12,003
RadiSys Corp.*		540		2,597
RealD, Inc.*		1,608		22,351
Silicon Graphics International Corp.*		1,366		18,277
Silver Spring Networks Inc*		200		4,988
Spansion, Inc., Class A*		2,100		26,292
STEC, Inc.*		899		6,041
Super Micro Computer, Inc.*		871		9,267
Sykes Enterprises, Inc.*		1,736		27,359
Synaptics, Inc.*		1,316		50,745
Syntel, Inc.		580		36,465
The KEYW Holding Corp.*		1,300		17,225
Uni-Pixel Inc*		400		5,864
Unisys Corp.*		1,824		40,256
Virtusa Corp.*		889		19,700
Vocera Communications, Inc.*		800		11,760
				897,671
Cosmetics & Personal Care — 0.1%
Elizabeth Arden, Inc.*		1,014		45,701
Inter Parfums, Inc.		624		17,797
Revlon, Inc., Class A*		270		5,956
				69,454
Distribution & Wholesale — 0.9%
Beacon Roofing Supply, Inc.*		1,681		63,676
Core-Mark Holding Co., Inc.		441		28,004
Houston Wire & Cable Co.		369		5,107
MWI Veterinary Supply, Inc.*		426		52,500
Owens & Minor, Inc.		2,276		76,997
Pool Corp.		1,776		93,080
Rentrak Corp.*		165		3,312
ScanSource, Inc.*		981		31,392
Titan Machinery, Inc.*		523		10,267
United Stationers, Inc.		1,519		50,962
Watsco, Inc.		938		78,754
				494,051

117

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Diversified Financial Services — 2.4%
Aircastle Ltd.		2,576	$	41,190
Altisource Residential Corp.*		1,000		16,690
BGC Partners, Inc., Class A		4,907		28,902
Blackhawk Network Holdings*		500		11,600
Calamos Asset Management, Inc., Class A		469		4,924
Cohen & Steers, Inc.		817		27,762
Cowen Group, Inc., Class A*		2,090		6,061
Credit Acceptance Corp.*		224		23,531
DFC Global Corp.*		1,780		24,582
Diamond Hill Investment Group, Inc.*		50		4,252
Doral Financial Corp.*		3,277		2,720
Ellie Mae, Inc.*		800		18,464
Encore Capital Group, Inc.*		797		26,389
Evercore Partners, Inc., Class A		1,222		48,000
FBR & Co.*		277		6,997
Federal Agricultural Mortgage Corp., Class C		300		8,664
Financial Engines, Inc.		1,800		82,062
FXCM, Inc.		1,400		22,974
GAMCO Investors, Inc., Class A		162		8,976
GFI Group, Inc.		1,724		6,741
Greenhill & Co., Inc.		1,100		50,314
GSV Capital Corp.*		1,000		7,860
Hannon Armstrong Sustainable Infrastructure Capital, Inc.*		600		7,128
Higher One Holdings, Inc.*		1,500		17,460
Home Loan Servicing Solutions Ltd.		2,200		52,734
INTL FCstone, Inc.*		293		5,113
Investment Technology Group, Inc.*		1,500		20,970
Janus Capital Group, Inc.		5,600		47,656
JMP Group, Inc.		263		1,746
Knight Capital Group, Inc., Class A*		7,025		25,220
Ladenburg Thalmann Financial Services, Inc.*		1,800		2,970
Manning & Napier, Inc.		300		5,328
MarketAxess Holdings, Inc.		1,399		65,403
Marlin Business Services Corp.		200		4,556
National Financial Partners Corp.*		1,515		38,345
Nelnet, Inc., Class A		799		28,836
Netspend Holdings, Inc.*		1,300		20,761
NewStar Financial, Inc.*		1,300		17,316
Nicholas Financial, Inc.		300		4,536
Oppenheimer Holdings, Inc., Class A		238		4,532
PennyMac Financial Service*		500		10,635
Piper Jaffray Cos.*		687		21,716
Portfolio Recovery Associates, Inc.*		616		94,636
Pzena Investment Management, Inc., Class A		130		848
Regional Management Corp*		200		5,000
Stifel Financial Corp.*		2,206		78,688
SWS Group, Inc.*		768		4,186
Teton Advisors, Inc., Class B~		2		40
The First Marblehead Corp.*		714		843
Virtus Investment Partners, Inc.*		172		30,318
Wageworks, Inc.*		1,000		34,450
Walter Investment Management Corp.*		1,353		45,745
Westwood Holdings Group, Inc.		311		13,348
WisdomTree Investments, Inc.*		3,800		43,966

	Number of Shares		Value†
Diversified Financial Services — (continued)
World Acceptance Corp.*		362	$	31,472
				1,266,156
Electric — 2.0%
ALLETE, Inc.		1,451		72,332
Ameresco, Inc., Class A*		300		2,703
Atlantic Power Corp.*		4,127		16,260
Avista Corp.		2,139		57,796
Black Hills Corp.		1,648		80,340
Cleco Corp.		2,271		105,443
Dynegy Inc*		3,700		83,435
El Paso Electric Co.		1,477		52,153
EnerNOC, Inc.*		700		9,282
Genie Energy Ltd.		300		2,745
IDACORP, Inc.		1,901		90,792
MGE Energy, Inc.		828		45,341
NorthWestern Corp.		1,280		51,072
Ormat Technologies, Inc.		700		16,464
Otter Tail Corp.		1,292		36,693
Pike Electric Corp.*		1,058		13,013
PNM Resources, Inc.		2,910		64,573
Portland General Electric Co.		2,756		84,306
The Empire District Electric Co.		1,719		38,351
UIL Holdings Corp.		1,791		68,506
Unitil Corp.		363		10,483
UNS Energy Corp.		1,427		63,830
				1,065,913
Electrical Components & Equipment — 1.4%
Acuity Brands, Inc.		1,632		123,249
Advanced Energy Industries, Inc.*		1,393		24,252
American Superconductor Corp.*		1,090		2,878
Belden, Inc.		1,655		82,634
Capstone Turbine Corp.*		9,700		11,349
Coleman Cable, Inc.		300		5,418
Encore Wire Corp.		771		26,291
EnerSys,Inc.		1,723		84,496
Generac Holdings, Inc.*		1,949		72,132
General Cable Corp.		1,900		58,425
GrafTech International Ltd.*		4,400		32,032
Graham Corp.		266		7,988
Insteel Industries, Inc.		691		12,106
Littelfuse, Inc.		778		58,047
Powell Industries, Inc.*		429		22,158
Power-One, Inc.*		2,924		18,480
PowerSecure International, Inc.*		800		12,024
Sunpower Corp.*		1,600		33,120
Universal Display Corp.*		1,549		43,542
Vicor Corp.*		422		2,891
				733,512
Electronics — 2.0%
American Science & Engineering, Inc.		278		15,568
Analogic Corp.		507		36,925
Badger Meter, Inc.		459		20,448
Bel Fuse, Inc., Class B		269		3,618

118

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electronics — (continued)
Benchmark Electronics, Inc.*		2,077	$	41,748
Brady Corp., Class A		1,857		57,066
Checkpoint Systems, Inc.*		1,545		21,923
Coherent, Inc.*		873		48,076
CTS Corp.		1,263		17,227
Daktronics, Inc.		1,209		12,404
Electro Scientific Industries, Inc.		693		7,457
FARO Technologies, Inc.*		620		20,968
FEI Co.		1,446		105,543
Fluidigm Corp.*		900		15,714
II-VI, Inc.*		2,056		33,431
InvenSense, Inc.*		2,200		33,836
Itron, Inc.*		1,500		63,645
Kemet Corp.*		1,100		4,521
Measurement Specialties, Inc.*		670		31,175
Mesa Laboratories, Inc.		100		5,413
Methode Electronics, Inc.		1,460		24,835
Multi-Fineline Electronix, Inc.*		152		2,251
Newport Corp.*		1,463		20,380
NVE Corp.*		109		5,103
OSI Systems, Inc.*		757		48,766
Park Electrochemical Corp.		633		15,198
Plexus Corp.*		1,203		35,958
Rofin-Sinar Technologies, Inc.*		1,186		29,579
Rogers Corp.*		660		31,231
Sanmina Corp.*		3,326		47,728
Sparton Corp.*		400		6,896
Stoneridge, Inc.*		673		7,834
Taser International, Inc.*		1,711		14,578
TTM Technologies, Inc.*		2,359		19,816
Viasystems Group, Inc.*		100		1,153
Vishay Precision Group, Inc.*		300		4,542
Watts Water Technologies, Inc., Class A		1,117		50,645
Woodward, Inc.		2,623		104,920
Zagg, Inc.*		500		2,675
Zygo Corp.*		382		6,039
				1,076,833
Energy-Alternate Sources — 0.2%
Amyris, Inc.*		400		1,156
Clean Energy Fuels Corp.*		2,200		29,040
FuelCell Energy, Inc.*		2,681		3,405
FutureFuel Corp.		500		7,085
Green Plains Renewable Energy, Inc.*		1,267		16,876
KiOR, Inc — Class A*		1,880		10,735
Renewable Energy Group Inc*		900		12,807
Rex American Resources Corp.*		192		5,524
Solazyme, Inc.*		1,800		21,096
				107,724
Engineering & Construction — 0.8%
Argan, Inc.*		536		8,362
Dycom Industries, Inc.*		1,153		26,680
EMCOR Group, Inc.		2,463		100,121
Engility Holdings Inc*		700		19,894
Exponent, Inc.		520		30,737

	Number of Shares		Value†
Engineering & Construction — (continued)
Granite Construction, Inc.		1,444	$	42,974
Layne Christensen Co.*		926		18,066
MasTec, Inc.*		2,264		74,486
Michael Baker Corp.		191		5,178
Mistras Group, Inc.*		800		14,064
MYR Group, Inc.*		583		11,339
Orion Marine Group, Inc.*		1,137		13,746
Sterling Construction Co., Inc.*		353		3,198
Tutor Perini Corp.*		1,397		25,272
VSE Corp.		104		4,271
				398,388
Entertainment — 0.7%
Carmike Cinemas, Inc.*		800		15,488
Churchill Downs, Inc.		520		41,002
International Speedway Corp.		1,100		34,617
Isle of Capri Casinos, Inc.*		241		1,808
Marriott Vacations Worldwide Corp.*		1,100		47,564
Multimedia Games, Inc.*		1,070		27,895
National CineMedia, Inc.		1,974		33,341
Pinnacle Entertainment, Inc.*		2,182		42,920
Scientific Games Corp., Class A*		1,900		21,375
SHFL Entertainment, Inc.*		2,085		36,925
Speedway Motorsports, Inc.		316		5,498
Vail Resorts, Inc.		1,346		82,806
				391,239
Environmental Control — 0.6%
ADA-ES, Inc.*		400		16,848
Calgon Carbon Corp.*		2,162		36,062
Casella Waste Systems, Inc., Class A*		600		2,586
Darling International, Inc.*		4,467		83,354
Energy Recovery, Inc.*		1,918		7,921
Heritage-Crystal Clean, Inc.*		200		2,922
Met-Pro Corp.		452		6,075
Mine Safety Appliances Co.		1,021		47,528
Nuverra Environmental Solutions Inc*		4,413		12,798
Tetra Tech, Inc.*		2,264		53,227
TRC Cos., Inc.*		500		3,500
U.S. Ecology, Inc.		742		20,360
				293,181
Food — 2.1%
Annie’s, Inc.*		500		21,370
Arden Group, Inc., Class A		11		1,214
B&G Foods, Inc., Class A		1,972		67,147
Boulder Brands, Inc.*		1,879		22,642
Cal-Maine Foods, Inc.		623		28,976
Calavo Growers, Inc.		451		12,263
Chefs Warehouse Holdings, Inc.*		450		7,740
Chiquita Brands International, Inc.*		1,824		19,918
Diamond Foods, Inc.*		776		16,102
Dole Food Co., Inc.*		1,660		21,165
Fairway Group Holdings Corp.*		600		14,502
Fresh Del Monte Produce, Inc.		1,516		42,266
Harris Teeter Supermarkets, Inc.		1,837		86,082

119

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Food — (continued)
Ingles Markets, Inc., Class A		304	$	7,676
J&J Snack Foods Corp.		532		41,390
John B. Sanfilippo & Son, Inc.		400		8,064
Lancaster Colony Corp.		672		52,409
Lifeway Foods, Inc.		87		1,510
Nash Finch Co.		440		9,684
Pilgrim’s Pride Corp.*		2,287		34,168
Post Holdings, Inc.*		1,200		52,392
Sanderson Farms, Inc.		834		55,394
Seaboard Corp.		11		29,788
Seneca Foods Corp., Class A*		211		6,473
Snyders-Lance, Inc.		1,679		47,700
Spartan Stores, Inc.		602		11,101
SUPERVALU, Inc.		7,400		46,028
The Hain Celestial Group, Inc.*		1,462		94,986
Tootsie Roll Industries, Inc.		788		25,043
TreeHouse Foods, Inc.*		1,314		86,120
United Natural Foods, Inc.*		1,800		97,182
Village Super Market, Inc., Class A		268		8,868
Weis Markets, Inc.		466		21,003
				1,098,366
Forest Products & Paper — 0.7%
Boise, Inc.*		3,725		31,812
Buckeye Technologies, Inc.		1,380		51,115
Clearwater Paper Corp.*		878		41,319
Deltic Timber Corp.		392		22,665
KapStone Paper and Packaging Corp.*		1,620		65,092
Neenah Paper, Inc.		574		18,236
Orchids Paper Products Co.		400		10,500
P.H. Glatfelter Co.		1,659		41,641
Resolute Forest Products*		2,700		35,559
Schweitzer-Mauduit International, Inc.		1,176		58,659
Wausau Paper Corp.		1,581		18,023
				394,621
Gas — 1.0%
Chesapeake Utilities Corp.		357		18,382
Delta Natural Gas Co., Inc.		400		8,500
New Jersey Resources Corp.		1,632		67,777
Northwest Natural Gas Co.		1,050		44,604
Piedmont Natural Gas Co., Inc.		2,851		96,193
South Jersey Industries, Inc.		1,140		65,447
Southwest Gas Corp.		1,794		83,941
The Laclede Group, Inc.		1,156		52,783
WGL Holdings, Inc.		1,994		86,181
				523,808
Hand & Machine Tools — 0.1%
Franklin Electric Co., Inc.		1,770		59,560
Hardinge, Inc.		500		7,390
				66,950
Healthcare Products — 3.5%
Abaxis, Inc.*		829		39,386
ABIOMED, Inc.*		1,489		32,103

	Number of Shares		Value†
Healthcare Products — (continued)
Accuray, Inc.*		2,738	$	15,716
Affymetrix, Inc.*		2,371		10,527
Align Technology, Inc.*		2,765		102,416
Alphatec Holdings, Inc.*		816		1,673
AngioDynamics, Inc.*		558		6,294
ArthroCare Corp.*		1,155		39,882
AtriCure, Inc.*		400		3,800
Atrion Corp.		37		8,092
Biolase, Inc.*		4		14
Cantel Medical Corp.		850		28,790
Cardiovascular Systems, Inc.*		900		19,080
Cepheid, Inc.*		2,380		81,920
Cerus Corp.*		3,600		15,912
CONMED Corp.		1,003		31,334
CryoLife, Inc.		599		3,750
Cutera, Inc.*		500		4,400
Cyberonics, Inc.*		1,032		53,623
Cynosure, Inc., Class A*		694		18,033
DexCom, Inc.*		2,542		57,068
Endologix, Inc.*		2,298		30,517
Exactech, Inc.*		209		4,128
GenMark Diagnostics, Inc.*		1,200		12,418
Genomic Health, Inc.*		509		16,140
Globus Medical, Inc.*		2,100		35,406
Greatbatch, Inc.*		993		32,560
Haemonetics Corp.*		1,946		80,467
Hanger, Inc.*		1,408		44,535
HeartWare International, Inc.*		589		56,020
ICU Medical, Inc.*		479		34,517
Insulet Corp.*		1,846		57,983
Integra LifeSciences Holdings Corp.*		826		30,256
Invacare Corp.		1,190		17,088
Luminex Corp.*		1,353		27,885
MAKO Surgical Corp.*		1,705		20,545
Masimo Corp.*		1,904		40,365
Merge Healthcare, Inc.*		1,657		5,965
Meridian Bioscience, Inc.		1,360		29,240
Merit Medical Systems, Inc.*		1,375		15,331
MiMedx Group, Inc.*		3,200		22,592
Natus Medical, Inc.*		1,475		20,134
NuVasive, Inc.*		1,706		42,292
NxStage Medical, Inc.*		2,284		32,616
OraSure Technologies, Inc.*		2,201		8,540
Orthofix International N.V.*		671		18,050
Photomedex, Inc.*		700		11,158
Quidel Corp.*		1,051		26,832
Rochester Medical Corp.*		400		5,892
Rockwell Medical Technologies, Inc.*		400		1,444
Solta Medical, Inc.*		1,200		2,736
Spectranetics Corp.*		1,265		23,630
Staar Surgical Co.*		1,400		14,210
STERIS Corp.		2,232		95,708
SurModics, Inc.*		773		15,468
Symmetry Medical, Inc.*		1,744		14,684
TearLab Corp.*		1,000		10,620
The Female Health Co.		904		8,913

120

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Healthcare Products — (continued)
Thoratec Corp.*		2,100	$	65,751
Tornier NV*		800		14,000
Unilife Corp.*		3,410		10,810
Utah Medical Products, Inc.		200		10,860
Vascular Solutions, Inc.*		883		12,989
Volcano Corp.*		1,964		35,607
West Pharmaceutical Services, Inc.		1,289		90,565
Wright Medical Group, Inc.*		1,661		43,535
				1,824,815
Healthcare Services — 1.6%
Acadia Healthcare Co., Inc.*		1,300		42,991
Air Methods Corp.*		1,387		46,992
Almost Family, Inc.*		177		3,363
Amedisys, Inc.*		806		9,366
Amsurg Corp.*		1,223		42,927
Assisted Living Concepts, Inc., Class A		404		4,832
Bio-Reference Labs, Inc.*		1,007		28,951
Capital Senior Living Corp.*		1,036		24,760
Centene Corp.*		1,968		103,241
Chindex International, Inc.*		314		5,093
Emeritus Corp.*		1,483		34,376
Five Star Quality Care, Inc.*		800		4,488
Gentiva Health Services, Inc.*		1,623		16,165
HealthSouth Corp.*		3,236		93,197
Healthways, Inc.*		1,558		27,078
IPC The Hospitalist Co., Inc.*		647		33,230
Kindred Healthcare, Inc.*		1,986		26,076
LHC Group, Inc.*		382		7,480
Magellan Health Services, Inc.*		1,041		58,379
Molina Healthcare, Inc.*		1,168		43,426
National Healthcare Corp.		406		19,407
Select Medical Holdings Corp.		1,300		10,660
Skilled Healthcare Group, Inc., Class A*		561		3,748
The Ensign Group, Inc.		740		26,063
Triple-S Management Corp., Class B*		691		14,836
U.S. Physical Therapy, Inc.		591		16,335
Vanguard Health Systems, Inc.*		987		20,470
WellCare Health Plans, Inc.*		1,626		90,324
				858,254
Holding Companies — 0.2%
Harbinger Group, Inc.*		1,775		13,383
Horizon Pharma, Inc.*		1,000		2,460
National Bank Holdings Corp.		2,000		39,400
Primoris Services Corp.		1,290		25,439
				80,682
Home Builders — 0.8%
Beazer Homes USA, Inc.*		924		16,188
Cavco Industries, Inc.*		169		8,526
Hovnanian Enterprises, Inc., Class A*		4,810		26,984
KB Home		2,900		56,927
M.D.C. Holdings, Inc.		1,400		45,514
M/I Homes, Inc.*		836		19,195
Meritage Homes Corp.*		1,390		60,270

	Number of Shares		Value†
Home Builders — (continued)
Standard Pacific Corp.*		5,590	$	46,565
The Ryland Group, Inc.		1,746		70,015
TRI Pointe Homes, Inc.*		600		9,948
William Lyon Homes*		600		15,126
Winnebago Industries, Inc.*		1,122		23,551
				398,809
Home Furnishings — 0.5%
American Woodmark Corp.*		369		12,804
Bassett Furniture Industries, Inc.		600		9,318
DTS, Inc.*		703		14,468
Ethan Allen Interiors, Inc.		1,028		29,606
Hooker Furniture Corp.		600		9,756
Kimball International, Inc., Class B		1,244		12,079
La-Z-Boy, Inc.		1,962		39,770
Select Comfort Corp.*		1,972		49,418
Skullcandy, Inc.*		407		2,222
TiVo, Inc.*		4,855		53,648
Universal Electronics, Inc.*		700		19,691
VOXX International Corp*		825		10,123
				262,903
Household Products & Wares — 0.6%
ACCO Brands Corp.*		4,393		27,940
American Greetings Corp., Class A		1,043		19,003
AT Cross Co. Class A*		300		5,085
Blyth, Inc.		282		3,937
Central Garden & Pet Co., Class A*		1,202		8,294
CSS Industries, Inc.		212		5,285
Helen of Troy Ltd.*		1,195		45,852
Oil-Dri Corp. of America		97		2,665
Prestige Brands Holdings, Inc.*		1,972		57,464
Spectrum Brands Holdings, Inc.		800		45,496
Tumi Holdings, Inc.*		1,800		43,200
WD-40 Co.		646		35,194
				299,415
Housewares — 0.0%
Libbey, Inc.*		800		19,176
Lifetime Brands, Inc.		200		2,716
				21,892
Industrial — 0.1%
Aegion Corp*		1,555		35,003
Rexnord Corp.*		1,000		16,850
				51,853
Insurance — 2.6%
AMBAC Financial Group, Inc.*		1,700		40,511
American Equity Investment Life Holding Co.		2,576		40,443
American Safety Insurance Holdings Ltd.*		395		11,435
AMERISAFE, Inc.		708		22,932
AmTrust Financial Services, Inc.		1,152		41,126
Argo Group International Holdings Ltd.		1,041		44,128
Baldwin & Lyons, Inc., Class B		325		7,891
Citizens, Inc.*		1,466		8,767

121

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — (continued)
CNO Financial Group, Inc.		8,293	$	107,477
Crawford & Co., Class B		338		1,900
Donegal Group, Inc., Class A		283		3,953
eHealth, Inc.*		720		16,358
EMC Insurance Group, Inc.		100		2,626
Employers Holdings, Inc.		1,282		31,345
Enstar Group Ltd.*		374		49,735
FBL Financial Group, Inc., Class A		327		14,228
First American Financial Corp.		4,073		89,769
Global Indemnity PLC*		383		9,020
Greenlight Capital Re Ltd., Class A*		928		22,764
Hallmark Financial Services, Inc.*		255		2,331
HCI Group, Inc.		500		15,360
Hilltop Holdings, Inc.*		2,392		39,229
Horace Mann Educators Corp.		1,509		36,789
Infinity Property & Casualty Corp.		420		25,099
Kansas City Life Insurance Co.		73		2,794
Maiden Holdings Ltd.		2,268		25,447
Meadowbrook Insurance Group, Inc.		1,518		12,190
MGIC Investment Corp.*		11,427		69,362
Montpelier Re Holdings Ltd.		1,707		42,692
National Interstate Corp.		102		2,983
National Western Life Insurance Co., Class A		52		9,872
Onebeacon Insurance Group Ltd., Class A		600		8,688
Platinum Underwriters Holdings Ltd.		1,156		66,146
Primerica, Inc.		2,100		78,624
Radian Group, Inc.		6,303		73,241
RLI Corp.		761		58,148
Safety Insurance Group, Inc.		382		18,531
Selective Insurance Group		2,175		50,068
State Auto Financial Corp.		376		6,832
Stewart Information Services Corp.		808		21,162
Symetra Financial Corp.		3,200		51,168
The Navigators Group, Inc.*		395		22,531
The Phoenix Cos., Inc.*		146		6,278
Tower Group International Ltd.		2,147		44,035
United Fire Group, Inc.		680		16,884
Universal American Corp.*		1,780		15,824
Universal Insurance Holdings, Inc.		1,251		8,857
				1,397,573
Internet — 2.7%
1-800-Flowers.com, Inc., Class A*		737		4,562
Angie’s List, Inc.*		1,600		42,480
Bankrate, Inc.*		1,523		21,870
Bazaarvoice, Inc.*		1,900		17,898
Blucora, Inc.*		1,496		27,736
Blue Nile, Inc.*		439		16,586
Boingo Wireless, Inc.*		900		5,589
Brightcove, Inc.*		1,200		10,512
BroadSoft, Inc.*		961		26,524
Cogent Communications Group, Inc.		1,719		48,390
comScore, Inc.*		1,359		33,146
Constant Contact, Inc.*		865		13,901
CyrusOne, Inc.		700		14,518
DealerTrack Holdings, Inc.*		1,696		60,089

	Number of Shares		Value†
Internet — (continued)
Dice Holdings, Inc.*		1,163	$	10,711
ePlus, Inc.*		74		4,432
ExactTarget, Inc.*		1,600		53,952
Global Eagle Entertainment, Inc.*		900		9,054
Global Sources Ltd.*		372		2,496
HealthStream, Inc.*		600		15,192
ICG Group, Inc.*		1,228		13,999
Internap Network Services Corp.*		1,921		15,887
IntraLinks Holdings, Inc.*		800		5,808
Keynote Systems, Inc.		428		8,457
Limelight Networks, Inc.*		1,172		2,637
Lionbridge Technologies, Inc.*		1,243		3,605
Liquidity Services, Inc.*		1,035		35,884
Marketo, Inc.*		300		7,461
ModusLink Global Solutions, Inc.*		945		3,005
Move, Inc*		1,879		24,089
NIC, Inc.*		2,629		43,457
NutriSystem, Inc.		1,037		12,216
OpenTable, Inc.*		856		54,741
Orbitz Worldwide, Inc.*		476		3,822
Overstock.com, Inc.*		271		7,642
PC-Tel, Inc.		1,200		10,176
Perficient, Inc.*		1,245		16,608
QuinStreet, Inc.*		715		6,171
ReachLocal, Inc.*		200		2,452
RealNetworks, Inc.*		515		3,893
Reis, Inc.*		400		7,396
Responsys, Inc.*		1,400		20,034
Safeguard Scientifics, Inc.*		1,050		16,853
Sapient Corp.*		4,152		54,225
Shutterfly, Inc.*		1,390		77,548
Shutterstock, Inc.*		300		16,734
Sourcefire, Inc.*		1,170		64,994
Spark Networks, Inc.*		800		6,760
SPS Commerce, Inc.*		500		27,500
Stamps.com, Inc.*		462		18,198
support.com, Inc.*		1,139		5,205
TechTarget, Inc.*		500		2,235
The Active Network, Inc.*		1,400		10,598
Towerstream Corp.*		900		2,295
Travelzoo, Inc.*		311		8,478
Trulia, Inc.*		900		27,981
United Online, Inc.		2,790		21,148
Unwired Planet, Inc.*		1,814		3,537
ValueClick, Inc.*		2,790		68,857
VASCO Data Security International, Inc.*		728		6,050
VirnetX Holding Corp.*		1,583		31,644
Vitacost.com, Inc.*		1,300		10,985
Vocus, Inc.*		881		9,268
Web.com Group, Inc.*		1,600		40,960
WebMD Health Corp.*		1,300		38,181
XO Group, Inc.*		659		7,381
Yelp, Inc.*		1,100		38,247
Zillow, Inc. Class A*		788		44,364
Zix Corp.*		1,148		4,856
				1,414,160

122

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Investment Companies — 1.1%
Apollo Investment Corp.		8,379	$	64,853
Arlington Asset Investment Corp., Class A		500		13,370
BlackRock Kelso Capital Corp.		2,684		25,122
Capital Southwest Corp.		159		21,915
Fifth Street Finance Corp.		4,330		45,249
Firsthand Technology Value Fund, Inc.*		500		9,930
Gladstone Capital Corp.		412		3,366
Golub Capital BDC, Inc.		1,368		23,940
KCAP Financial, Inc.		614		6,914
Main Street Capital Corp.		1,349		37,354
MCG Capital Corp.		1,854		9,659
Medallion Financial Corp.		748		10,405
Medley Capital Group		1,242		16,866
MVC Capital, Inc.		1,281		16,128
New Mountain Finance Corp.		979		13,863
NGP Capital Resources Co.		338		2,072
PennantPark Floating Rate Capital Ltd.		500		7,070
PennantPark Investment Corp.		2,463		27,216
Prospect Capital Corp.		9,178		99,122
Solar Capital Ltd.		1,511		34,889
Solar Senior Capital Ltd.		513		9,444
Stellus Capital Investment Corp.		600		9,030
TCP Capital Corp.		1,000		16,770
THL Credit, Inc.		1,000		15,190
TICC Capital Corp.		1,705		16,402
Triangle Capital Corp.		1,000		27,510
				583,649
Iron & Steel — 0.2%
AK Steel Holding Corp.		3,900		11,856
Commercial Metals Co.		4,400		64,988
Schnitzer Steel Industries, Inc., Class A		900		21,042
Universal Stainless & Alloy Products, Inc.*		133		3,921
				101,807
Leisure Time — 0.6%
Arctic Cat, Inc.		444		19,971
Black Diamond, Inc.*		400		3,760
Brunswick Corp.		3,468		110,803
Callaway Golf Co.		2,146		14,121
Interval Leisure Group, Inc.		1,416		28,207
Johnson Outdoors, Inc.*		200		4,980
Life Time Fitness, Inc.*		1,659		83,132
Marine Products Corp.		160		1,283
Nautilus, Inc.*		1,300		11,297
Town Sports International Holdings, Inc.*		600		6,462
WMS Industries, Inc.*		2,100		53,571
				337,587
Lodging — 0.2%
Ameristar Casinos, Inc.		1,205		31,679
Boyd Gaming Corp.*		2,300		25,990
Marcus Corp.		433		5,508
Monarch Casino & Resort, Inc.*		185		3,119
Morgans Hotel Group Co.*		394		3,176
Orient-Express Hotels Ltd., Class A*		3,345		40,675
				110,147

	Number of Shares		Value†
Machinery — Construction & Mining — 0.1%
Astec Industries, Inc.		698	$	23,934
Hyster-Yale Materials Handling, Inc.		344		21,600
				45,534
Machinery — Diversified — 1.4%
Alamo Group, Inc.		317		12,940
Albany International Corp., Class A		1,132		37,333
Altra Holdings, Inc.		1,003		27,462
Applied Industrial Technologies, Inc.		1,582		76,458
Briggs & Stratton Corp.		1,936		38,333
Chart Industries, Inc.*		1,077		101,335
Cognex Corp.		1,557		70,408
Columbus McKinnon Corp.*		685		14,604
DXP Enterprises, Inc.*		322		21,445
ExOne Co. The*		200		12,344
Flow International Corp.*		1,208		4,457
Global Power Equipment Group, Inc.		400		6,448
Hurco Cos., Inc.		200		5,754
Intermec, Inc.*		2,235		21,970
iRobot Corp.*		1,082		43,031
Kadant, Inc.		299		9,021
Lindsay Corp.		453		33,966
Manitex International, Inc.*		500		5,475
Middleby Corp.*		695		118,213
NACCO Industries, Inc., Class A		222		12,716
Tecumseh Products Co., Class A*		800		8,744
Tennant Co.		736		35,527
The Gorman-Rupp Co.		401		12,768
Twin Disc, Inc.		235		5,569
				736,321
Media — 0.9%
Belo Corp., Class A		3,560		49,662
Central European Media Enterprises Ltd., Class A*		3,100		10,261
Courier Corp.		247		3,527
Crown Media Holdings, Inc., Class A*		217		536
Cumulus Media, Inc., Class A*		2,800		9,492
Demand Media, Inc.*		1,300		7,800
Dex Media, Inc.*		700		12,299
Digital Generation, Inc.*		657		4,842
E.W. Scripps Co., Class A*		1,206		18,790
Entercom Communications Corp., Class A*		1,400		13,216
Entravision Communications Corp., Class A*		2,800		17,220
Fisher Communications, Inc.		400		16,432
Gray Television, Inc.*		2,000		14,400
Journal Communications, Inc., Class A*		1,784		13,362
LIN TV Corp., Class A*		1,072		16,402
Martha Stewart Living Omnimedia, Inc., Class A*		562		1,354
Media General, Inc., Class A*		800		8,824
Meredith Corp.		1,300		62,010
Nexstar Broadcasting Group		1,100		39,006
Saga Communications, Inc.*		133		6,106
Scholastic Corp.		956		28,001
Sinclair Broadcast Group, Inc., Class A		2,517		73,950

123

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Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Media — (continued)
The McClatchy Co., Class A*		1,100	$	2,508
The New York Times Co., Class A*		4,821		53,320
World Wrestling Entertainment, Inc.,Class A		914		9,423
				492,743
Medical Instruments — 0.0%
Navidea Biopharmaceuticals, Inc.*		6,000		16,020
Metal Fabricate/Hardware — 0.8%
A.M. Castle & Co.*		435		6,856
Ampco-Pittsburgh Corp.		214		4,017
CIRCOR International, Inc.		735		37,382
Dynamic Materials Corp.		290		4,788
Furmanite Corp.*		954		6,382
Haynes International, Inc.		364		17,425
Kaydon Corp.		1,178		32,454
L.B. Foster Co., Class A		366		15,800
Mueller Industries, Inc.		1,094		55,170
Mueller Water Products, Inc., Class A		6,192		42,787
NN, Inc.		400		4,564
Northwest Pipe Co.*		183		5,106
Olympic Steel, Inc.		231		5,659
Omega Flex, Inc.*		59		877
RBC Bearings, Inc.*		837		43,482
RTI International Metals, Inc.*		1,113		30,841
Sun Hydraulics Corp.		859		26,870
Worthington Industries, Inc.		1,984		62,913
				403,373
Mining — 0.8%
Allied Nevada Gold Corp.*		4,000		25,920
AMCOL International Corp.		1,098		34,796
Century Aluminum Co.*		2,254		20,917
Coeur d’Alene Mines Corp.*		3,828		50,912
General Moly, Inc.*		1,499		2,803
Globe Specialty Metals, Inc.		2,414		26,240
Gold Resource Corp.		1,300		11,323
Hecla Mining Co.		12,817		38,195
Horsehead Holding Corp.*		1,583		20,278
Kaiser Aluminum Corp.		716		44,349
Materion Corp.		857		23,216
Midway Gold Corp.*		2,200		2,075
Molycorp, Inc.*		4,800		29,760
Noranda Aluminium Holding Corp.		600		1,938
Paramount Gold and Silver Corp.*		2,900		3,451
Stillwater Mining Co.*		4,524		48,588
United States Lime & Minerals, Inc.*		29		1,515
Ur-Energy, Inc.*		5,400		7,236
Uranium Energy Corp.*		2,400		4,296
US Silica Holdings, Inc.		600		12,468
				410,276
Miscellaneous Manufacturing — 1.8%
Actuant Corp., Class A		2,806		92,514
American Railcar Industries, Inc.		300		10,053
AZZ, Inc.		976		37,635

	Number of Shares		Value†
Miscellaneous Manufacturing — (continued)
Barnes Group, Inc.		1,965	$	58,930
Blount International, Inc.*		1,995		23,581
Chase Corp.		200		4,472
CLARCOR, Inc.		1,898		99,095
EnPro Industries, Inc.*		717		36,395
ESCO Technologies, Inc.		1,034		33,481
Fabrinet*		1,100		15,400
Federal Signal Corp.*		2,343		20,501
FreightCar America, Inc.		270		4,587
GP Strategies Corp.*		696		16,579
Griffon Corp.		1,956		22,005
Handy & Harman Ltd.*		200		3,576
John Bean Technologies Corp.		1,229		25,821
Koppers Holdings, Inc.		820		31,308
LSB Industries, Inc.*		749		22,777
Lydall, Inc.*		600		8,760
Matthews International Corp., Class A		1,105		41,658
Movado Group, Inc.		760		25,711
Myers Industries, Inc.		1,125		16,886
NL Industries, Inc.		90		1,017
Park-Ohio Holdings Corp.*		200		6,596
PMFG, Inc.*		486		3,363
Polypore International, Inc.*		1,700		68,510
Proto Labs, Inc.*		600		38,982
Raven Industries, Inc.		1,346		40,353
Smith & Wesson Holding Corp.*		1,979		19,750
Standex International Corp.		500		26,375
Sturm Ruger & Co., Inc.		619		29,737
Tredegar Corp.		761		19,558
Trimas Corp.*		1,495		55,734
				961,700
Office Furnishings — 0.4%
Herman Miller, Inc.		2,232		60,420
HNI Corp.		1,643		59,263
Interface, Inc.		2,195		37,249
Knoll, Inc.		1,953		27,752
Steelcase, Inc., Class A		3,131		45,650
				230,334
Oil & Gas — 2.5%
Abraxas Petroleum Corp.*		2,000		4,200
Adams Resources & Energy, Inc.		100		6,889
Alon USA Energy, Inc.		952		13,766
Apco Oil and Gas International, Inc.*		258		2,975
Approach Resources, Inc.*		1,341		32,948
Arabian American Development Co.*		1,000		8,700
Berry Petroleum Co., Class A		2,034		86,079
Bill Barrett Corp.*		1,725		34,879
Bonanza Creek Energy, Inc.*		1,100		39,006
BPZ Resources, Inc.*		2,283		4,087
Callon Petroleum Co.*		1,000		3,370
Carrizo Oil & Gas, Inc.*		1,465		41,503
Clayton Williams Energy, Inc.*		217		9,439
Comstock Resources, Inc.		1,987		31,256
Contango Oil & Gas Co.*		503		16,976

124

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas — (continued)
Delek US Holdings, Inc.		1,398	$	40,234
Diamondback Energy, Inc.*		700		23,324
Emerald Oil, Inc.*		1,500		10,290
Endeavour International Corp.*		1,352		5,192
Energy XXI Bermuda Ltd.		3,062		67,915
EPL Oil & Gas, Inc.*		1,200		35,232
Equal Energy Ltd		1,600		6,464
Evolution Petroleum Corp.*		500		5,455
EXCO Resources, Inc.		5,100		38,964
Forest Oil Corp.*		3,900		15,951
FX Energy, Inc.*		1,389		4,459
Gastar Exploration Ltd.*		1,500		4,005
Goodrich Petroleum Corp.*		1,281		16,397
Halcon Resources Corp.*		7,776		44,090
Hercules Offshore, Inc.*		6,105		42,979
Isramco, Inc.*		21		1,957
Kodiak Oil & Gas Corp.*		9,900		88,011
Magnum Hunter Resources Corp.*		5,200		18,980
Matador Resources Co.*		1,900		22,762
Midstates Petroleum Co., Inc.*		1,100		5,951
Miller Energy Resources, Inc.*		400		1,600
Northern Oil & Gas, Inc.*		2,253		30,055
Panhandle Oil and Gas, Inc., Class A		117		3,335
Parker Drilling Co.*		5,217		25,981
PDC Energy, Inc.*		1,112		57,246
Penn Virginia Corp.		2,012		9,456
PetroQuest Energy, Inc.*		1,539		6,094
Quicksilver Resources, Inc.*		4,600		7,728
Resolute Energy Corp.*		2,200		17,556
Rex Energy Corp.*		1,800		31,644
Rosetta Resources, Inc.*		2,237		95,117
Sanchez Energy Corp.*		1,100		25,256
Stone Energy Corp.*		1,879		41,394
Swift Energy Co.*		1,889		22,649
Synergy Resources Corp.*		2,000		14,640
Triangle Petroleum Corp.*		1,100		7,711
Vaalco Energy, Inc.*		2,430		13,900
W&T Offshore, Inc.		1,043		14,904
Warren Resources, Inc.*		1,705		4,348
Western Refining, Inc.		2,037		57,179
				1,322,478
Oil & Gas Services — 1.8%
Basic Energy Services, Inc.*		1,488		17,990
Bolt Technology Corp.		400		6,832
C J Energy Services, Inc.*		1,430		27,699
Cal Dive International, Inc.*		2,189		4,115
CARBO Ceramics, Inc.		700		47,201
Dawson Geophysical Co.*		215		7,925
Exterran Holdings, Inc.*		2,100		59,052
Flotek Industries, Inc.*		1,800		32,292
Forum Energy Technologies, Inc.*		1,500		45,645
Geospace Technologies Corp.*		476		32,882
Global Geophysical Services, Inc.*		500		2,360
Gulf Island Fabrication, Inc.		318		6,090
Helix Energy Solutions Group, Inc.*		4,001		92,183

	Number of Shares		Value†
Oil & Gas Services — (continued)
Hornbeck Offshore Services, Inc.*		1,378	$	73,723
ION Geophysical Corp.*		5,465		32,899
Key Energy Services, Inc.*		6,024		35,843
Lufkin Industries, Inc.		1,272		112,534
Matrix Service Co.*		687		10,703
Mitcham Industries, Inc.*		300		5,034
Natural Gas Services Group, Inc.*		294		6,906
Newpark Resources, Inc.*		3,512		38,597
Pioneer Energy Services Corp.*		2,650		17,543
SEACOR Holdings, Inc.*		800		66,440
Targa Resources Corp.		1,200		77,196
Tesco Corp.*		1,400		18,550
TETRA Technologies, Inc.*		2,979		30,565
TGC Industries, Inc.		945		7,768
Thermon Group Holdings, Inc.*		1,100		22,440
Vantage Drilling Co.*		9,090		18,544
Willbros Group, Inc.*		1,017		6,244
				963,795
Packaging and Containers — 0.2%
AEP Industries, Inc.*		138		10,266
Berry Plastics Group, Inc.*		2,100		46,347
Graphic Packaging Holding Co.*		7,887		61,045
				117,658
Pharmaceuticals — 3.1%
ACADIA Pharmaceuticals, Inc.*		2,600		47,190
AcelRx Pharmaceuticals, Inc.*		900		8,343
Achillion Pharmaceuticals, Inc.*		3,300		26,994
Aegerion Pharmaceuticals, Inc.*		1,100		69,674
Akorn, Inc.*		2,413		32,624
Amicus Therapeutics, Inc.*		500		1,165
Ampio Pharmaceuticals, Inc.*		600		3,462
Anacor Pharmaceuticals, Inc.*		500		2,795
Anika Therapeutics, Inc.*		700		11,900
Antares Pharma, Inc.*		5,200		21,632
Array BioPharma, Inc.*		3,948		17,924
Auxilium Pharmaceuticals, Inc.*		1,565		26,026
AVANIR Pharmaceuticals, Inc., Class A*		5,777		26,574
BioDelivery Sciences International, Inc.*		1,200		4,872
BioScrip, Inc.*		2,011		33,181
Cadence Pharmaceuticals, Inc.*		2,414		16,463
Chelsea Therapeutics International, Inc.*		2,900		6,670
ChemoCentryx, Inc.*		1,000		14,140
Chimerix, Inc.*		400		9,696
Clovis Oncology, Inc.*		500		33,490
Corcept Therapeutics, Inc.*		700		1,211
Cornerstone Therapeutics, Inc.*		127		1,016
Cytori Therapeutics, Inc.*		810		1,863
Depomed, Inc.*		2,583		14,491
Derma Sciences, Inc.*		700		9,345
Dyax Corp.*		5,020		17,369
Endocyte, Inc.*		1,500		19,695
Furiex Pharmaceuticals, Inc.*		200		6,814
Hi-Tech Pharmacal Co, Inc.*		455		15,106
Hyperion Therapeutics, Inc.*		400		8,800

125

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — (continued)
Idenix Pharmaceuticals, Inc.*		2,593	$	9,361
Impax Laboratories, Inc.*		2,437		48,618
Infinity Pharmaceuticals, Inc.*		1,828		29,705
Ironwood Pharmaceuticals, Inc.*		3,561		35,432
Isis Pharmaceuticals, Inc.*		4,210		113,123
Keryx Biopharmaceuticals, Inc.*		3,500		26,145
Lannett Co, Inc.*		197		2,346
Lifevantage Corp.*		4,600		10,672
MannKind Corp.*		5,504		35,776
Natural Grocers By Vitamin Cottage, Inc.*		400		12,400
Nature’s Sunshine Products, Inc.		200		3,270
Nektar Therapeutics*		4,333		50,046
Neogen Corp.*		868		48,226
Neurocrine Biosciences, Inc.*		2,777		37,156
Nutraceutical International Corp.*		196		4,006
Omega Protein Corp.*		500		4,490
Opko Health, Inc.*		4,776		33,910
Optimer Pharmaceuticals, Inc.*		1,995		28,868
Orexigen Therapeutics, Inc.*		2,888		16,895
Osiris Therapeutics, Inc.*		373		3,756
Pacira Pharmaceuticals, Inc.*		1,100		31,900
PharMerica Corp.*		820		11,365
Portola Pharmaceuticals, Inc.*		400		9,828
Pozen, Inc.*		302		1,513
Progenics Pharmaceuticals, Inc.*		2,601		11,600
Questcor Pharmaceuticals, Inc.		1,936		88,011
Raptor Pharmaceutical Corp.*		2,000		18,700
Repros Therapeutics, Inc.*		900		16,605
Rigel Pharmaceuticals, Inc.*		2,690		8,985
Sagent Pharmaceuticals, Inc.*		700		14,686
Santarus, Inc.*		2,097		44,142
Sarepta Therapeutics, Inc.*		1,200		45,647
Sciclone Pharmaceuticals, Inc.*		2,277		11,294
SIGA Technologies, Inc.*		685		1,945
Spectrum Pharmaceuticals, Inc.*		2,414		18,008
Star Scientific, Inc.*		4,044		5,621
Sucampo Pharmaceuticals, Inc., Class A*		171		1,125
Synageva BioPharma Corp.*		700		29,400
Synergy Pharmaceuticals, Inc.*		2,100		9,072
Synta Pharmaceuticals Corp.*		1,921		9,586
Synutra International, Inc.*		311		1,583
Targacept, Inc.*		703		3,002
TESARO, Inc.*		400		13,096
TherapeuticsMD, Inc.*		3,200		9,696
Threshold Pharmaceuticals, Inc.*		2,000		10,520
USANA Health Sciences, Inc.*		224		16,213
Vanda Pharmaceuticals, Inc.*		741		5,987
ViroPharma, Inc.*		2,378		68,130
Vivus, Inc.*		3,770		47,427
XenoPort, Inc.*		1,927		9,539
Zogenix, Inc.*		2,800		4,788
				1,643,740

	Number of Shares		Value†
Pipelines — 0.2%
Crosstex Energy, Inc.		1,564	$	30,905
SemGroup Corp.		1,600		86,176
				117,081
Private Equity — 0.1%
Fidus Investment Corp.		639		11,956
Gladstone Investment Corp.		879		6,460
Hercules Technology Growth Capital, Inc.		2,433		33,916
				52,332
Real Estate — 0.3%
Alexander & Baldwin, Inc.*		1,600		63,600
Consolidated-Tomoka Land Co.		124		4,732
Forestar Group, Inc.*		1,163		23,329
HFF, Inc., Class A*		1,400		24,878
Kennedy-Wilson Holdings, Inc.		1,781		29,636
Thomas Properties Group, Inc.		1,800		9,540
				155,715
Retail — 6.5%
Aeropostale, Inc.*		3,184		43,939
AFC Enterprises*		959		34,466
America’s Car-Mart, Inc.*		227		9,815
ANN, Inc.*		1,785		59,262
Asbury Automotive Group, Inc.*		1,049		42,065
Barnes & Noble, Inc.*		1,400		22,344
bebe Stores, Inc.		1,517		8,510
Big 5 Sporting Goods Corp.		581		12,753
Biglari Holdings, Inc.*		49		20,110
BJ’s Restaurants, Inc.*		820		30,422
Bloomin’ Brands, Inc.*		2,100		52,248
Bob Evans Farms, Inc.		1,042		48,953
Body Central Corp.*		500		6,660
Bravo Brio Restaurant Group, Inc.*		500		8,910
Brown Shoe Co., Inc.		1,654		35,611
Buffalo Wild Wings, Inc.*		647		63,510
Carrols Restaurant Group, Inc.*		213		1,376
Casey’s General Stores, Inc.		1,440		86,630
Cash America International, Inc.		1,125		51,142
CEC Entertainment, Inc.		572		23,475
Christopher & Banks Corp.*		1,500		10,110
Chuy’s Holdings, Inc.*		600		23,004
Citi Trends, Inc.*		303		4,403
Coinstar, Inc.*		1,050		61,603
Conn’s, Inc.*		804		41,615
Cracker Barrel Old Country Store, Inc.		724		68,534
Del Frisco’s Restaurant Group, Inc.*		400		8,564
Denny’s Corp.*		3,552		19,962
Destination Maternity Corp.		578		14,219
Destination XL Group, Inc.*		1,500		9,510
DineEquity, Inc.		571		39,325
Einstein Noah Restaurant Group, Inc.		84		1,193
Express, Inc.*		3,154		66,139
Ezcorp, Inc., Class A*		1,766		29,810
Fiesta Restaurant Group, Inc.*		813		27,959
Fifth & Pacific Cos., Inc.*		4,571		102,116
First Cash Financial Services, Inc.*		1,062		52,261

126

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
Five Below, Inc.*		1,200	$	44,112
Francesca’s Holdings Corp.*		1,658		46,076
Fred’s, Inc., Class A		1,431		22,166
Genesco, Inc.*		895		59,956
Gordmans Stores, Inc.*		200		2,722
Group 1 Automotive, Inc.		807		51,914
Haverty Furniture Cos., Inc.		550		12,656
hhgregg, Inc.*		662		10,572
Hibbett Sports, Inc.*		955		53,002
HSN, Inc.		1,279		68,708
Ignite Restaurant Group, Inc.*		300		5,661
Jack in the Box, Inc.*		1,614		63,414
Jamba, Inc.*		940		14,034
Jos. A. Bank Clothiers, Inc.*		1,099		45,411
Kirkland’s, Inc.*		427		7,366
Krispy Kreme Doughnuts, Inc.*		2,622		45,754
Lithia Motors, Inc., Class A		794		42,328
Luby’s, Inc.*		600		5,070
Lumber Liquidators Holdings, Inc.*		1,033		80,440
MarineMax, Inc.*		1,000		11,330
Mattress Firm Holding Corp.*		500		20,150
Nathan’s Famous, Inc.*		100		5,225
New York & Co., Inc.*		583		3,702
Office Depot, Inc.*		9,300		35,991
OfficeMax, Inc.		3,461		35,406
Pacific Sunwear of California, Inc.*		2,100		7,602
Papa John’s International, Inc.*		655		42,817
PC Connection, Inc.*		165		2,549
Penske Automotive Group, Inc.		1,676		51,185
PetMed Express, Inc.		413		5,204
Pier 1 Imports, Inc.		3,644		85,598
Pricesmart, Inc.		731		64,058
RadioShack Corp.		3,900		12,324
Red Robin Gourmet Burgers, Inc.*		520		28,694
Regis Corp.		1,832		30,081
Restoration Hardware Holdings, Inc.*		700		52,500
Rite Aid Corp.*		27,172		77,712
Roundy’s, Inc.		900		7,497
Ruby Tuesday, Inc.*		2,213		20,426
rue21, Inc.*		579		24,092
Rush Enterprises, Inc., Class A*		1,235		30,566
Ruth’s Hospitality Group, Inc.		1,695		20,459
Saks, Inc.*		3,841		52,391
Sears Hometown and Outlet Stores, Inc.*		300		13,116
Shoe Carnival, Inc.		358		8,596
Sonic Automotive, Inc., Class A		1,534		32,429
Sonic Corp.*		2,132		31,042
Stage Stores, Inc.		1,381		32,453
Stein Mart, Inc.		761		10,388
Steiner Leisure Ltd.*		543		28,703
Steinway Musical Instruments, Inc.*		125		3,804
Susser Holdings Corp.*		702		33,612
Systemax, Inc.*		262		2,465
Texas Roadhouse, Inc.		2,470		61,799
The Bon-Ton Stores, Inc.		500		9,025
The Buckle, Inc.		1,049		54,569

	Number of Shares		Value†
Retail — (continued)
The Cato Corp., Class A		1,104	$	27,556
The Cheesecake Factory, Inc.		2,016		84,450
The Children’s Place Retail Stores, Inc.*		894		48,991
The Finish Line, Inc., Class A		1,793		39,195
The Men’s Wearhouse, Inc.		1,956		74,035
The Pantry, Inc.*		1,254		15,274
The Pep Boys — Manny, Moe, & Jack*		1,705		19,744
The Wet Seal, Inc., Class A*		2,604		12,265
Tile Shop Holdings, Inc.*		700		20,272
Tilly’s, Inc.*		400		6,400
Tuesday Morning Corp.*		1,129		11,708
Vera Bradley, Inc.*		800		17,328
Vitamin Shoppe, Inc.*		1,200		53,808
West Marine, Inc.*		264		2,904
Winmark Corp.		100		6,487
Zale Corp.*		1,300		11,830
Zumiez, Inc.*		703		20,211
				3,445,908
Savings & Loans — 1.3%
Astoria Financial Corp.		3,201		34,507
Bank Mutual Corp.		2,432		13,717
BankFinancial Corp.		609		5,177
Beneficial Mutual Bancorp, Inc.*		1,749		14,692
Berkshire Hills Bancorp, Inc.		1,102		30,592
BofI Holding, Inc.*		500		22,910
Brookline Bancorp, Inc.		2,222		19,287
Capitol Federal Financial Inc		5,600		67,984
Charter Financial Corp.		900		9,072
Clifton Savings Bancorp, Inc.		150		1,778
Dime Community Bancshares, Inc.		1,030		15,780
ESB Financial Corp.		232		2,814
ESSA Bancorp, Inc.		319		3,496
EverBank Financial Corp.		3,000		49,680
First Defiance Financial Corp.		300		6,765
First Financial Holdings, Inc.		619		13,129
First Financial Northwest, Inc.		600		6,186
First Pactrust Bancorp, Inc.		200		2,716
Flagstar Bancorp, Inc.*		800		11,168
Flushing Financial Corp.		1,338		22,010
Fox Chase Bancorp, Inc.		420		7,140
Home Bancorp, Inc.*		200		3,700
Home Federal Bancorp, Inc.		253		3,223
Homestreet, Inc.		600		12,870
Hometrust Bancshares, Inc.*		900		15,264
Investors Bancorp, Inc.		1,756		37,017
Kearny Financial Corp.*		152		1,594
Meridian Interstate Bancorp, Inc.*		139		2,617
Meta Financial Group, Inc.		200		5,256
Northfield Bancorp, Inc.		2,193		25,702
Northwest Bancshares, Inc.		3,775		51,000
OceanFirst Financial Corp.		327		5,085
Oritani Financial Corp.		1,718		26,938
Pacific Premier Bancorp, Inc.*		700		8,554
Provident Financial Holdings, Inc.		400		6,352
Provident Financial Services, Inc.		2,403		37,919

127

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Savings & Loans — (continued)
Provident New York Bancorp		1,751	$	16,354
Rockville Financial, Inc.		730		9,548
Roma Financial Corp.		126		2,288
Territorial Bancorp, Inc.		243		5,494
United Community Financial Corp.*		1,700		7,905
United Financial Bancorp, Inc.		440		6,666
Westfield Financial, Inc.		784		5,488
WSFS Financial Corp.		357		18,703
				676,137
Semiconductors — 3.0%
Aeroflex Holding Corp.*		500		3,945
Alpha & Omega Semiconductor Ltd.*		400		3,056
Ambarella, Inc.		700		11,781
Amkor Technology, Inc.*		2,511		10,571
ANADIGICS, Inc.*		1,379		3,034
Applied Micro Circuits Corp.*		2,958		26,030
ATMI, Inc.*		1,228		29,042
Axcelis Technologies, Inc.*		2,000		3,640
Brooks Automation, Inc.		2,477		24,101
Cabot Microelectronics Corp.*		961		31,723
Cavium, Inc.*		1,779		62,923
CEVA, Inc.*		671		12,991
Cirrus Logic, Inc.*		2,481		43,070
Cohu, Inc.		904		11,300
Cypress Semiconductor Corp.*		5,500		59,015
Diodes, Inc.*		1,399		36,332
DSP Group, Inc.*		557		4,629
Emulex Corp.*		2,606		16,991
Entegris, Inc.*		5,270		49,485
Entropic Communications, Inc.*		3,832		16,363
Exar Corp.*		1,532		16,500
FormFactor, Inc.*		2,172		14,661
Gerber Scientific, Inc.~		500		0
GSI Technology, Inc.*		359		2,269
GSl Group, Inc.*		700		5,628
Gt Advanced Technologies, Inc*		3,599		14,936
Hittite Microwave Corp.*		1,166		67,628
Inphi Corp.*		1,100		12,100
Integrated Device Technology, Inc.*		4,793		38,056
Integrated Silicon Solution, Inc.*		1,000		10,960
Intermolecular, Inc.*		900		6,543
International Rectifier Corp.*		2,500		52,350
Intersil Corp., Class A		5,100		39,882
IXYS Corp.		566		6,260
Kopin Corp.*		1,507		5,591
Lattice Semiconductor Corp.*		3,824		19,388
LTX-Credence Corp.*		1,166		6,984
MaxLinear, Inc., Class A*		500		3,500
Micrel, Inc.		1,845		18,229
Microsemi Corp.*		3,293		74,916
Mindspeed Technologies, Inc.*		600		1,944
MKS Instruments, Inc.		1,996		52,974
Monolithic Power Systems, Inc.*		1,267		30,547
MoSys, Inc.*		2,000		8,040
Nanometrics, Inc.*		900		13,203

	Number of Shares		Value†
Semiconductors — (continued)
Omnivision Technologies, Inc.*		1,919	$	35,789
Peregrine Semiconductor Corp.*		1,100		12,001
Pericom Semiconductor Corp.*		646		4,600
Photronics, Inc.*		2,192		17,667
PLX Technology, Inc.*		1,260		5,998
PMC-Sierra, Inc.*		7,700		48,933
Power Integrations, Inc.		1,095		44,413
QLogic Corp.*		3,200		30,592
Rambus, Inc.*		4,623		39,712
Richardson Electronics Ltd.		300		3,522
Rubicon Technology, Inc.*		323		2,587
Rudolph Technologies, Inc.*		854		9,565
Semtech Corp.*		2,409		84,387
Sigma Designs, Inc.*		777		3,924
Silicon Image, Inc.*		2,739		16,023
SunEdison, Inc.*		8,700		71,079
Supertex, Inc.*		389		9,301
Tessera Technologies, Inc.		2,123		44,158
TriQuint Semiconductor, Inc.*		6,177		42,807
Ultra Clean Holdings*		400		2,420
Ultratech, Inc.*		978		35,912
Veeco Instruments, Inc.*		1,393		49,340
Volterra Semiconductor Corp.*		691		9,757
				1,607,598
Software — 4.7%
Accelrys, Inc.*		2,566		21,554
ACI Worldwide, Inc.*		1,509		70,138
Actuate Corp.*		1,940		12,882
Acxiom Corp.*		2,767		62,756
Advent Software, Inc.*		1,335		46,805
American Software, Inc., Class A		593		5,153
Aspen Technology, Inc.*		3,553		102,291
athenahealth, Inc.*		1,356		114,880
Audience, Inc.*		400		5,284
AVG Technologies NV*		900		17,505
Avid Technology, Inc.*		749		4,404
Blackbaud, Inc.		1,750		56,997
Bottomline Technologies, Inc.*		1,345		34,015
Callidus Software, Inc.*		800		5,272
CommVault Systems, Inc.*		1,748		132,656
Computer Programs & Systems, Inc.		347		17,052
Cornerstone OnDemand, Inc.*		1,500		64,935
CSG Systems International, Inc.		1,281		27,798
Demandware, Inc.*		600		25,446
Digi International, Inc.*		657		6,156
Digital River, Inc.*		1,388		26,053
E2open, Inc.*		600		10,500
Ebix, Inc.		1,336		12,371
Envestnet, Inc.*		900		22,140
EPAM Systems, Inc.*		800		21,744
EPIQ Systems, Inc.		1,168		15,733
Fair Isaac Corp.		1,388		63,612
Fleetmatics Group PLC*		600		19,938
Glu Mobile, Inc.*		1,100		2,420
Greenway Medical Technologies*		400		4,936

128

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Software — (continued)
Guidance Software, Inc.*		400	$	3,496
Guidewire Software, Inc.*		1,600		67,280
Imperva Inc*		800		36,032
inContact, Inc.*		2,100		17,262
Infoblox, Inc.*		1,900		55,594
InnerWorkings, Inc.*		1,724		18,705
Interactive Intelligence Group, Inc.*		597		30,805
Jive Software, Inc.*		1,500		27,255
ManTech International Corp., Class A		739		19,303
Market Leader, Inc.*		1,200		12,840
MedAssets, Inc.*		2,048		36,331
Medidata Solutions, Inc.*		1,044		80,858
MicroStrategy, Inc., Class A*		318		27,653
Model N Inc.*		300		7,008
Monotype Imaging Holdings, Inc.		1,599		40,631
Omnicell, Inc.*		1,435		29,489
PDF Solutions, Inc.*		1,200		22,116
Pegasystems, Inc.		630		20,866
Progress Software Corp.*		1,986		45,698
Proofpoint, Inc.*		800		19,384
PROS Holdings, Inc.*		917		27,464
PTC, Inc.*		4,525		110,998
QAD, Inc.		92		1,056
QLIK Technologies, Inc.*		3,141		88,796
Quality Systems, Inc.		1,304		24,398
Qualys, Inc.*		600		9,672
Rally Software Development Corp.*		300		7,446
RealPage, Inc.*		1,500		27,510
Rosetta Stone, Inc.*		202		2,977
Schawk, Inc.		187		2,455
SciQuest, Inc.*		700		17,535
Seachange International, Inc.*		1,273		14,907
SS&C Technologies Holdings, Inc.*		2,200		72,380
Synchronoss Technologies, Inc.*		1,146		35,377
SYNNEX Corp.*		994		42,026
Take-Two Interactive Software, Inc.*		2,944		44,072
Tangoe, Inc.*		1,069		16,495
The Ultimate Software Group, Inc.*		1,016		119,167
Tyler Technologies, Inc.*		1,152		78,970
Verint Systems, Inc.*		1,995		70,763
				2,466,496
Storage & Warehousing — 0.2%
Mobile Mini, Inc.*		1,477		48,962
Wesco Aircraft Holdings, Inc.*		1,540		28,598
				77,560
Telecommunications — 3.1%
8X8, Inc.*		2,800		23,072
ADTRAN, Inc.		2,205		54,265
Anaren, Inc.*		312		7,157
Anixter International, Inc.*		1,034		78,388
ARRIS Group, Inc.*		4,081		58,562
Aruba Networks, Inc.*		4,213		64,712
Atlantic Tele-Network, Inc.		249		12,365
Aviat Networks, Inc.*		1,462		3,830

	Number of Shares		Value†
Telecommunications — (continued)
Black Box Corp.		562	$	14,230
CalAmp Corp.*		1,400		20,440
Calix, Inc.*		1,487		15,019
Cbeyond, Inc.*		568		4,453
Ciena Corp.*		3,900		75,738
Cincinnati Bell, Inc.*		7,785		23,822
Comtech Telecommunications Corp.		552		14,843
Comverse, Inc.*		690		20,534
Consolidated Communications Holdings, Inc.		1,745		30,380
DigitalGlobe, Inc.*		2,769		85,867
EarthLink, Inc.		4,016		24,939
Extreme Networks, Inc.*		3,147		10,857
Fairpoint Communications, Inc.*		600		5,010
Finisar Corp.*		3,221		54,596
General Communication, Inc., Class A*		986		7,720
Globecomm Systems, Inc.*		900		11,376
Harmonic, Inc.*		4,270		27,115
Hawaiian Telcom Holdco, Inc.*		500		12,580
HickoryTech Corp.		400		4,252
IDT Corp., Class B*		800		14,952
Infinera Corp.*		4,694		50,085
InterDigital, Inc.		1,494		66,707
Iridium Communications, Inc.*		2,500		19,400
Ixia*		2,113		38,879
KVH Industries, Inc.*		354		4,712
Leap Wireless International, Inc.*		1,400		9,422
LogMeIn, Inc.*		1,081		26,441
Loral Space & Communications, Inc.*		546		32,749
Lumos Networks Corp		382		6,532
MagicJack VocalTec Ltd.*		700		9,933
Neonode, Inc.*		1,600		9,520
NeoPhotonics Corp.*		300		2,607
NETGEAR, Inc.*		1,329		40,588
Neutral Tandem, Inc.		926		5,325
NII Holdings, Inc.*		6,500		43,355
NTELOS Holdings Corp		382		6,288
Numerex Corp.*		800		8,928
Oplink Communications, Inc.*		635		11,030
ORBCOMM, Inc.*		1,000		4,490
Parkervision, Inc.*		4,100		18,655
Plantronics, Inc.		1,567		68,823
Preformed Line Products Co.		45		2,984
Premiere Global Services, Inc.*		1,656		19,988
Primus Telecommunications Group, Inc.*		600		7,164
Procera Networks, Inc.*		700		9,611
RF Micro Devices, Inc.*		10,551		56,448
RigNet, Inc.*		500		12,740
Ruckus Wireless, Inc.*		1,700		21,777
Shenandoah Telecommunications Co.		1,159		19,332
ShoreTel, Inc.*		981		3,953
Sonus Networks, Inc.*		9,215		27,737
Symmetricom, Inc.*		959		4,306
Telenav, Inc.*		300		1,569
Tellabs, Inc.		11,600		22,968
Tessco Technologies, Inc.		400		10,560
Ubiquiti Networks, Inc.*		200		3,508

129

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Telecommunications — (continued)
USA Mobility, Inc.		512	$	6,948
ViaSat, Inc.*		1,462		104,475
Vonage Holdings Corp.*		6,100		17,263
Vringo, Inc.*		2,800		8,876
West Corp.		800		17,712
Westell Technologies, Inc.*		1,400		3,346
				1,648,808
Textiles — 0.2%
Culp, Inc.		300		5,217
G&K Services, Inc., Class A		776		36,938
UniFirst Corp.		577		52,651
				94,806
Toys, Games & Hobbies — 0.1%
JAKKS Pacific, Inc.		584		6,570
LeapFrog Enterprises, Inc.*		1,876		18,460
				25,030
Transportation — 1.7%
Air Transport Services Group, Inc.*		2,085		13,782
Arkansas Best Corp.		795		18,245
Atlas Air Worldwide Holdings, Inc.*		1,048		45,860
Bristow Group, Inc.		1,350		88,182
CAI International, Inc.*		460		10,842
Celadon Group, Inc.		935		17,064
Echo Global Logistics, Inc.*		500		9,745
Era Group, Inc.*		800		20,920
Forward Air Corp.		1,196		45,783
Frontline Ltd.*		1,200		2,124
Gaslog Ltd.		1,100		14,080
Gulfmark Offshore, Inc., Class A		979		44,143
Heartland Express, Inc.		1,967		27,282
Hub Group, Inc., Class A*		1,343		48,912
International Shipholding Corp.		141		3,290
Knight Transportation, Inc.		2,264		38,080
Knightsbridge Tankers Ltd.		574		4,225
Marten Transport Ltd.		651		10,201
Matson, Inc.		1,600		40,000
Nordic American Tankers Ltd.		2,667		20,189
Pacer International, Inc.*		687		4,335
Patriot Transportation Holding, Inc.*		369		11,085
PHI, Inc.*		593		20,340
Quality Distribution, Inc.*		400		3,536
Roadrunner Transportation Systems, Inc.*		500		13,920
Saia, Inc.*		961		28,801
Scorpio Tankers, Inc.		6,100		54,778
Ship Finance International Ltd.		1,684		24,991
Swift Transportation Co.*		3,300		54,582
Teekay Tankers Ltd., Class A		3,193		8,398
Universal Truckload Services, Inc.*		100		2,411
UTi Worldwide, Inc.		3,400		55,998
Werner Enterprises, Inc.		1,752		42,346
XPO Logistics, Inc.*		700		12,663
YRC Worldwide, Inc.*		400		11,500
				872,633

	Number of Shares		Value†
Trucking and Leasing — 0.2%
Greenbrier Cos., Inc.*		1,047	$	25,516
TAL International Group, Inc.*		1,293		56,336
Textainer Group Holdings Ltd.		812		31,213
				113,065
Water — 0.3%
American States Water Co.		762		40,897
Artesian Resources Corp., Class A		113		2,518
California Water Service Group		1,766		34,455
Connecticut Water Service, Inc.		319		9,155
Consolidated Water Co., Inc.		312		3,566
Middlesex Water Co.		531		10,577
PICO Holdings, Inc.*		792		16,600
SJW Corp.		488		12,786
York Water Co.		297		5,652
				136,206
TOTAL COMMON STOCKS (Cost $36,935,424)				47,520,259
REAL ESTATE INVESTMENT TRUSTS — 8.0%
Apartments — 0.4%
American Residential Properties, Inc.*		600		10,320
Associated Estates Realty Corp.		2,156		34,668
Campus Crest Communities, Inc.		2,300		26,542
Colonial Properties Trust		3,116		75,158
Education Realty Trust, Inc.		4,005		40,971
Select Income REIT		500		14,020
Silver Bay Realty Trust Corp.		637		10,549
				212,228
Building & Real Estate — 1.5%
Agree Realty Corp.		596		17,594
Alexander’s, Inc.		57		16,741
Anworth Mortgage Asset Corp.		5,431		30,414
Apollo Commercial Real Estate Finance, Inc.		1,100		17,468
Capstead Mortgage Corp.		3,475		42,048
Colony Financial, Inc.		2,616		52,032
CYS Investments, Inc.		6,756		62,223
Dynex Capital, Inc.		2,307		23,508
Getty Realty Corp.		1,163		24,016
Government Properties Income Trust		1,844		46,506
Gramercy Property Trust, Inc.*		1,500		6,750
Invesco Mortgage Capital, Inc.		5,007		82,916
iStar Financial, Inc.*		3,318		37,460
New York Mortgage Trust, Inc.		2,400		16,248
NorthStar Realty Finance Corp.		6,821		62,071
PennyMac Mortgage Investment Trust		2,192		46,142
Redwood Trust, Inc.		2,977		50,609
Resource Capital Corp.		4,700		28,905
Spirit Realty Capital, Inc.		2,200		38,984
Sun Communities, Inc.		1,390		69,166
				771,801

130

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Diversified — 0.8%
AG Mortgage Investment Trust, Inc		1,188	$	22,346
Armada Hoffler Properties, Inc.		800		9,424
Coresite Realty Corp.		700		22,267
DuPont Fabros Technology, Inc.		2,450		59,168
EPR Properties		1,810		90,989
New Residential Investment Corp.		9,500		64,030
PS Business Parks, Inc.		665		47,993
The GEO Group, Inc.		2,768		93,974
UMH Properties, Inc.		168		1,725
Whitestone REIT		800		12,608
				424,524
Diversified Financial Services — 0.3%
American Capital Mortgage. Inc.		2,043		36,713
Apollo Residential Mortgage, Inc.		1,332		21,951
ARMOUR Residential REIT, Inc.		13,200		62,172
JAVELIN Mortgage Investment Corp.		200		2,818
RAIT Financial Trust,Inc.		2,706		20,349
Western Asset Mortgage Capital Corp.		1,000		17,460
				161,463
Forest Products & Paper — 0.1%
Potlatch Corp.		1,578		63,814
Healthcare — 0.7%
Aviv REIT, Inc.		500		12,645
Healthcare Realty Trust, Inc.		3,272		83,436
LTC Properties, Inc.		1,317		51,429
Medical Properties Trust, Inc.		5,707		81,724
National Health Investors, Inc.		857		51,300
Sabra Healthcare Reit, Inc.		1,488		38,852
Universal Health Realty Income Trust		520		22,427
				341,813
Hotels & Resorts — 1.3%
Ashford Hospitality Trust, Inc.		2,320		26,564
Caesars Entertainment Corp.*		1,300		17,810
Chatham Lodging Trust		700		12,026
Chesapeake Lodging Trust		1,689		35,114
DiamondRock Hospitality Co.		7,523		70,114
FelCor Lodging Trust, Inc.*		5,018		29,657
Hersha Hospitality Trust		7,669		43,253
LaSalle Hotel Properties		3,617		89,340
Pebblebrook Hotel Trust		2,209		57,103
RLJ Lodging Trust		4,600		103,454
Ryman Hospitality Properties		1,612		62,884
Strategic Hotels & Resorts, Inc.*		6,812		60,354
Summitt Hotel Properties		2,700		25,515
Sunstone Hotel Investors, Inc.*		5,732		69,243
				702,431
Industrial — 0.7%
Chambers Street Properties*		9,300		93,000
DCT Industrial Trust, Inc.		10,382		74,231
EastGroup Properties, Inc.		1,075		60,490
First Industrial Realty Trust, Inc.		4,029		61,120
First Potomac Realty Trust		2,392		31,239

	Number of Shares		Value†
Industrial — (continued)
Monmouth Real Estate Investment Corp., Class A		1,149	$	11,341
STAG lndustrial, Inc.		1,600		31,920
Terreno Realty Corp.		675		12,508
				375,849
Mixed Industrial/Office — 0.5%
CapLease, Inc.		3,335		28,148
Cousins Properties, Inc.		3,861		38,996
Gladstone Commercial Corp.		652		12,153
Investors Real Estate Trust		3,618		31,115
Lexington Realty Trust		6,015		70,255
One Liberty Properties, Inc.		503		11,046
Washington Real Estate Investment Trust		2,406		64,746
Winthrop Realty Trust		777		9,347
				265,806
Office Property — 0.6%
American Assets Trust, Inc.		1,100		33,946
American Realty Capital Properties, Inc.		5,800		88,508
Franklin Street Properties Corp.		3,245		42,834
Highwoods Properties, Inc.		2,960		105,405
Hudson Pacific Properties, Inc.		1,400		29,792
MPG Office Trust, Inc.*		2,400		7,536
Parkway Properties, Inc.		1,693		28,375
				336,396
Regional Malls — 0.2%
Glimcher Realty Trust		4,916		53,683
Pennsylvania Real Estate Investment Trust		2,315		43,707
Rouse Properties, Inc.		1,000		19,620
				117,010
Storage & Warehousing — 0.3%
CubeSmart		4,925		78,701
Sovran Self Storage, Inc.		1,082		70,103
				148,804
Strip Centers — 0.6%
Acadia Realty Trust		2,120		52,343
AmREIT, Inc.		700		13,538
Cedar Realty Trust, Inc.		2,826		14,639
Equity One, Inc.		2,054		46,483
Excel Trust, Inc.		1,500		19,215
Inland Real Estate Corp.		2,988		30,537
Kite Realty Group Trust		2,907		17,529
Ramco-Gershenson Properties Trust		2,141		33,250
Retail Opportunity Investments Corp.		2,500		34,750
Saul Centers, Inc.		251		11,159
Urstadt Biddle Properties, Inc., Class A		816		16,459
				289,902
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,590,122)				4,211,841

131

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

	Number of Shares		Value†
RIGHTS — 0.0%
CVR Energy, Inc.~ (Cost $0)		2,274	$	0
	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U.S. Treasury Bill
0.035%, 08/08/13+	$	30		29,999
0.040%, 09/12/13+		45		44,998
TOTAL U.S. TREASURY OBLIGATIONS (Cost $74,996)				74,997
	Number of Shares		Value†
WARRANTS — 0.0%
Clinical Data, Inc.~		354		0
Magnum Hunter Resources Corp.*		260		36
TOTAL WARRANTS (Cost $0)				36
SHORT-TERM INVESTMENTS — 2.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,070,988)		1,070,988		1,070,988
TOTAL INVESTMENTS — 100.0% (Cost $41,671,530)			$	52,878,121

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2013 is $40.

+ Collateral pledged for derivatives.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Advertising	$	61,445	$	61,445	$	—	$	—
Aerospace & Defense		695,514		695,514		—		—
Agriculture		157,928		157,928		—		—
Airlines		334,587		334,587		—		—
Apparel		563,914		563,914		—		—
Auto Manufacturers		22,396		22,396		—		—
Auto Parts & Equipment		584,307		584,307		—		—
Banks		3,524,764		3,524,764		—		—
Beverages		70,634		70,634		—		—
Biotechnology		1,066,741		1,066,741		—		—

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS (continued)
Building & Real Estate	$	3,457	$	3,457	$	—	$	—
Building Materials		566,156		566,156		—		—
Chemicals		1,031,014		1,031,014		—		—
Coal		172,162		172,162		—		—
Commercial Services		3,210,480		3,210,480		—		—
Computers		897,671		897,671		—		—
Cosmetics & Personal Care		69,454		69,454		—		—
Distribution & Wholesale		494,051		494,051		—		—
Diversified Financial Services		1,266,156		1,266,116		40		—
Electric		1,065,913		1,065,913		—		—
Electrical Components & Equipment		733,512		733,512		—		—
Electronics		1,076,833		1,076,833		—		—
Energy-Alternate Sources		107,724		107,724		—		—
Engineering & Construction		398,388		398,388		—		—
Entertainment		391,239		391,239		—		—
Environmental Control		293,181		293,181		—		—
Food		1,098,366		1,098,366		—		—
Forest Products & Paper		394,621		394,621		—		—
Gas		523,808		523,808		—		—
Hand & Machine Tools		66,950		66,950		—		—
Healthcare Products		1,824,815		1,824,815		—		—
Healthcare Services		858,254		858,254		—		—
Holding Companies		80,682		80,682		—		—
Home Builders		398,809		398,809		—		—
Home Furnishings		262,903		262,903		—		—
Household Products & Wares		299,415		299,415		—		—
Housewares		21,892		21,892		—		—
Industrial		51,853		51,853		—		—
Insurance		1,397,573		1,397,573		—		—
Internet		1,414,160		1,414,160		—		—
Investment Companies		583,649		583,649		—		—
Iron & Steel		101,807		101,807		—		—
Leisure Time		337,587		337,587		—		—
Lodging		110,147		110,147		—		—
Machinery — Construction & Mining		45,534		45,534		—		—
Machinery — Diversified		736,321		736,321		—		—
Media		492,743		492,743		—		—
Medical Instruments		16,020		16,020		—		—
Metal Fabricate/Hardware		403,373		403,373		—		—
Mining		410,276		410,276		—		—
Miscellaneous Manufacturing		961,700		961,700		—		—
Office Furnishings		230,334		230,334		—		—
Oil & Gas		1,322,478		1,322,478		—		—
Oil & Gas Services		963,795		963,795		—		—
Packaging and Containers		117,658		117,658		—		—
Pharmaceuticals		1,643,740		1,643,740		—		—
Pipelines		117,081		117,081		—		—
Private Equity		52,332		52,332		—		—
Real Estate		155,715		155,715		—		—
Retail		3,445,908		3,445,908		—		—
Savings & Loans		676,137		676,137		—		—

132

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Small Cap Index Fund

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS (continued)
Semiconductors	$	1,607,598	$	1,607,598	$	—	$	—
Software		2,466,496		2,466,496		—		—
Storage & Warehousing		77,560		77,560		—		—
Telecommunications		1,648,808		1,648,808		—		—
Textiles		94,806		94,806		—		—
Toys, Games & Hobbies		25,030		25,030		—		—
Transportation		872,633		872,633		—		—
Trucking and Leasing		113,065		113,065		—		—
Water		136,206		136,206		—		—
REAL ESTATE INVESTMENT TRUSTS		4,211,841		4,211,841		—		—
U.S. TREASURY OBLIGATIONS		74,997		—		74,997		—
RIGHTS		—		—		—		—
WARRANTS		36		—		36		—
SHORT-TERM INVESTMENTS		1,070,988		1,070,988		—		—
TOTAL INVESTMENTS	$	52,878,121	$	52,803,048	$	75,073	$	—

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 significant 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.

133

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — 97.7%
Australia — 7.8%
AGL Energy Ltd.		4,960	$	65,631
ALS Ltd.		2,210		19,239
Alumina Ltd.*		25,078		22,319
Amcor Ltd.		9,532		88,094
AMP Ltd.		25,193		97,432
APA Group		8,266		45,297
Asciano Ltd.		8,927		40,830
ASX Ltd.		1,709		51,536
Aurizon Holdings Ltd.		15,495		58,858
Australia & New Zealand Banking Group Ltd.		23,289		604,570
Bendigo & Adelaide Bank Ltd.		3,188		29,233
BHP Billiton Ltd.		26,956		775,873
Boral Ltd.		7,130		27,282
Brambles Ltd.		13,675		116,486
Caltex Australia Ltd.		1,064		17,501
CFS Retail Property Trust		18,683		34,062
Coca-Cola Amatil Ltd.		4,528		52,462
Cochlear Ltd.		507		28,455
Commonwealth Bank of Australia		13,539		852,230
Computershare Ltd.		4,425		41,489
Crown Ltd.		3,677		40,535
CSL Ltd.		4,194		235,605
Dexus Property Group		41,009		39,992
Echo Entertainment Group Ltd.		6,026		16,891
Federation Centres Ltd.		13,277		28,776
Flight Centre Ltd.		439		15,720
Fortescue Metals Group Ltd.		10,696		29,445
Goodman Group		13,631		60,603
GPT Group		14,881		52,252
GPT Group, In Specie*~		16,419		0
Harvey Norman Holdings Ltd.		3,095		7,183
Iluka Resources Ltd.		4,046		36,463
Incitec Pivot Ltd.		12,659		32,960
Insurance Australia Group Ltd.		17,661		87,664
Leighton Holdings Ltd.		960		13,453
Lend Lease Group		3,966		30,238
Macquarie Group Ltd.		2,652		101,150
Metcash Ltd.		9,070		29,097
Mirvac Group		31,429		46,012
National Australia Bank Ltd.		20,325		549,793
Newcrest Mining Ltd.		6,279		57,963
Orica Ltd.		3,366		63,451
Origin Energy Ltd.		9,524		109,140
Qantas Airways Ltd.*		6,627		8,140
QBE Insurance Group Ltd.		9,779		135,396
Ramsay Health Care Ltd.		980		32,032
Rio Tinto Ltd.		3,797		181,973
Santos Ltd.		8,221		93,622
Seek Ltd.		2,700		22,350
Sonic Healthcare Ltd.		3,466		47,087
SP AusNet		15,433		16,558
Stockland		19,881		63,259
Suncorp Group Ltd.		10,950		118,929
Sydney Airport		3,363		10,377
Tabcorp Holdings Ltd.		6,064		16,888
Tatts Group Ltd.		11,982		34,612

	Number of Shares		Value†
Australia — (continued)
Telstra Corp. Ltd.		35,607	$	154,801
Toll Holdings Ltd.		7,078		34,257
Transurban Group		10,736		66,301
Treasury Wine Estates Ltd.		5,165		27,445
Wesfarmers Ltd.		1,001		36,908
Wesfarmers Ltd. PPS		6,631		239,951
Westfield Group		17,462		182,891
Westfield Retail Trust		25,556		72,275
Westpac Banking Corp.		26,029		683,391
Whitehaven Coal Ltd.		2,966		6,240
Woodside Petroleum Ltd.		5,335		169,909
Woolworths Ltd.		10,607		317,751
WorleyParsons Ltd.		1,882		33,340
				7,559,948
Austria — 0.3%
Andritz AG		668		34,273
Erste Group Bank AG		1,805		48,110
Immoeast AG~		2,678		0
IMMOFINANZ AG*		6,387		23,833
OMV AG		1,135		51,201
Raiffeisen Bank International AG		500		14,557
Telekom Austria AG		2,544		16,099
Verbund AG		303		5,747
Vienna Insurance Group AG Wiener Versicherung Gruppe		300		13,916
Voestalpine AG		1,009		35,681
				243,417
Belgium — 1.1%
Ageas		2,135		74,913
Anheuser-Busch InBev N.V.		6,795		611,772
Belgacom S.A.		1,133		25,368
Colruyt S.A.		647		34,044
Delhaize Group S.A.		994		61,451
Groupe Bruxelles Lambert S.A.		667		50,237
KBC Groep N.V.		2,035		75,863
Solvay S.A.		480		62,851
Telenet Group Holding N.V.		377		17,303
UCB S.A.		997		53,520
Umicore S.A.		1,061		44,058
				1,111,380
Bermuda — 0.1%
Seadrill Ltd.		3,158		127,193
China — 0.1%
AAC Technologies Holdings, Inc.		6,199		34,779
Yangzijiang Shipbuilding Holdings Ltd.		19,000		12,401
				47,180
Denmark — 1.1%
A.P. Moller — Maersk A/S, B Shares		11		78,690
A.P. Moller — Maersk A/S, A Shares		5		33,665
Carlsberg A/S, B Shares		940		84,051
Coloplast A/S, B Shares		1,009		56,498
Danske Bank A/S*		5,451		92,988

134

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Denmark — (continued)
DSV A/S		1,802	$	43,897
Novo Nordisk A/S, B Shares		3,479		540,854
Novozymes A/S, B Shares		2,117		67,808
TDC A/S		6,200		50,248
Tryg A/S		303		24,963
William Demant Holding A/S*		138		11,402
				1,085,064
Finland — 0.8%
Elisa OYJ		1,000		19,526
Fortum OYJ		3,817		71,505
Kesko OYJ, B Shares		513		14,251
Kone OYJ, B Shares		1,368		108,508
Metso OYJ		1,133		38,378
Neste Oil OYJ		812		11,849
Nokia OYJ*		32,880		122,574
Nokian Renkaat OYJ		1,035		42,115
Orion OYJ, B Shares		750		17,574
Pohjola Bank PLC, A Shares		1,500		22,041
Sampo OYJ, A Shares		3,553		138,352
Stora Enso OYJ, R Shares		5,326		35,664
UPM-Kymmene OYJ		4,612		45,202
Wartsila OYJ Abp		1,483		64,429
				751,968
France — 8.9%
Accor S.A.		1,400		49,211
Aeroports de Paris		215		20,900
Air Liquide S.A.		2,594		320,357
Alstom S.A.		1,930		63,311
Arkema S.A.		505		46,291
AtoS Origin S.A.		511		37,976
AXA S.A.		14,942		294,546
BNP Paribas S.A.		8,361		457,721
Bouygues S.A.		1,778		45,307
Bureau Veritas S.A.		1,772		45,886
Cap Gemini S.A.		1,311		63,664
Carrefour S.A.		5,443		149,500
Casino Guichard Perrachon S.A.		516		48,352
Christian Dior S.A.		493		79,645
Cie Generale de Geophysique - Veritas*		1,240		27,475
CNP Assurances		1,881		27,007
Compagnie de Saint-Gobain		3,400		137,769
Compagnie Generale des Establissements Michelin, B Shares		1,552		138,773
Credit Agricole S.A.*		8,542		73,519
Danone S.A.		4,804		361,587
Dassault Systemes S.A.		484		59,158
Edenred		1,643		50,308
Electricite de France S.A.		2,177		50,521
Essilor International S.A.		1,761		187,612
Eurazeo		352		18,875
Eutelsat Communications S.A.		1,230		34,896
Fonciere Des Regions		262		19,637
France Telecom S.A.		16,204		153,441
GDF Suez		11,378		223,176

	Number of Shares		Value†
France — (continued)
Gecina S.A.		190	$	21,000
Groupe Eurotunnel S.A.		5,556		42,247
Groupe Fnac*		79		1,676
ICADE		156		12,868
Iliad S.A.		177		38,240
Imerys S.A.		213		13,078
JCDecaux S.A.		400		10,888
Kering		633		128,807
Klepierre		874		34,444
L’Oreal S.A.		2,021		332,219
Lafarge S.A.		1,644		100,946
Lagardere S.C.A.		1,203		33,566
Legrand S.A.		2,075		96,207
LVMH Moet Hennessy Louis Vuitton S.A.		2,181		354,093
Natixis		9,049		37,994
Pernod-Ricard S.A.		1,810		200,898
Publicis Groupe S.A.		1,556		110,816
Remy Cointreau S.A.		152		16,129
Renault S.A.		1,688		113,699
Rexel S.A.		1,144		25,775
Safran S.A.		2,007		104,778
Sanofi S.A.		10,051		1,039,073
Schneider Electric S.A.		4,371		317,450
SCOR SE		1,528		46,898
Societe BIC S.A.		246		24,678
Societe Generale S.A.		6,204		213,513
Sodexo		822		68,477
Suez Environment Co.		2,747		35,503
Technip S.A.		838		85,167
Thales S.A.		773		36,071
Total S.A.		17,915		875,021
Unibail-Rodamco SE		817		190,283
Vallourec S.A.		777		39,430
Veolia Environment S.A.		3,205		36,592
Vinci S.A.		3,951		198,183
Vivendi S.A.		10,022		189,932
Wendel S.A.		326		33,620
Zodiac Aerospace		329		43,563
				8,590,243
Germany — 7.9%
Adidas AG		1,711		184,956
Allianz SE		3,789		553,045
Axel Springer AG		327		13,915
BASF SE		7,728		689,284
Bayer AG		6,958		740,819
Bayerische Motoren Werke AG		2,820		246,118
Beiersdorf AG		876		76,307
Brenntag AG		479		72,804
Celesio AG		516		11,201
Commerzbank AG*		6,232		54,139
Continental AG		878		117,045
Daimler AG		8,084		488,020
Deutsche Bank AG		8,578		359,698
Deutsche Boerse AG		1,623		106,725
Deutsche Lufthansa AG*		2,080		42,135

135

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Germany — (continued)
Deutsche Post AG		7,622	$	189,162
Deutsche Telekom AG		23,749		276,688
E.ON SE		15,115		247,713
Fraport AG Frankfurt Airport Services Worldwide		272		16,436
Fresenius Medical Care AG & Co. KGaA		1,765		125,105
Fresenius SE & Co. KGaA		1,042		128,249
Fuchs Petrolub AG (Preference)		299		23,705
GEA Group AG		1,598		56,581
Hannover Ruckversicherung SE		585		42,066
HeidelbergCement AG		1,250		83,751
Henkel AG & Co. KGaA		1,114		87,248
Hochtief AG		206		13,419
Hugo Boss AG*		248		27,270
Infineon Technologies AG		9,503		79,548
K+S AG		1,330		49,153
Kabel Deutschland Holding AG		813		89,268
Lanxess AG		727		43,781
Linde AG		1,550		288,837
MAN SE		297		32,379
Merck KGaA		557		84,708
Metro AG		1,156		36,527
Muenchener Ruckversicherungs AG		1,509		277,221
RWE AG		4,273		136,214
SAP AG		7,868		574,542
Siemens AG		6,671		675,525
Suedzucker AG		700		21,671
Telefonica Deutschland Holding AG		2,349		16,995
ThyssenKrupp AG*		3,081		60,394
United Internet AG		908		25,596
Volkswagen AG		258		50,161
				7,616,124
Greece — 0.0%
Hellenic Telecommunications Organization S.A.*		2,062		16,127
OPAP S.A.		2,453		20,528
				36,655
Guernsey — 0.1%
Resolution Ltd.		13,216		57,248
Hong Kong — 2.9%
AIA Group Ltd.		101,000		425,513
ASM Pacific Technology Ltd.		1,700		18,662
Bank of East Asia Ltd.		10,490		37,547
BOC Hong Kong Holdings Ltd.		31,000		94,832
Cathay Pacific Airways Ltd.		10,000		17,401
Cheung Kong Holdings Ltd.		12,000		161,813
Cheung Kong Infrastructure Holdings Ltd.		4,000		26,653
CLP Holdings Ltd.		15,000		121,257
First Pacific Co., Ltd.		15,750		16,837
Galaxy Entertainment Group Ltd.*		16,000		77,719
Hang Lung Properties Ltd.		19,000		65,813
Hang Seng Bank Ltd.		6,400		94,250
Henderson Land Development Co., Ltd.		8,078		47,977

	Number of Shares		Value†
Hong Kong — (continued)
HKT Trust & HKT Ltd.		18,000	$	17,208
Hong Kong & China Gas Co., Ltd.		48,678		118,778
Hong Kong Exchanges & Clearing Ltd.		9,402		141,212
Hopewell Holdings Ltd.		3,500		11,616
Hutchison Whampoa Ltd.		18,000		188,321
Hysan Development Co., Ltd.		7,140		30,824
Kerry Properties Ltd.		7,009		27,324
Li & Fung Ltd.		50,000		68,150
MGM China Holdings Ltd.*		10,400		27,598
MTR Corp., Ltd.		13,764		50,580
New World Development Co., Ltd.		34,232		47,020
Noble Group Ltd.		37,484		28,508
NWS Holdings Ltd.		11,677		17,902
Orient Overseas International Ltd.		2,000		12,811
PCCW Ltd.		32,000		14,935
Power Assets Holdings Ltd.		11,500		98,992
Sands China Ltd.		21,200		99,069
Shangri-La Asia Ltd.		16,666		28,650
Sino Land Co., Ltd.		27,246		38,095
SJM Holdings Ltd.		17,000		41,256
Sun Hung Kai Properties Ltd.		13,721		176,206
Swire Pacific Ltd., A Shares		6,000		72,290
Swire Properties Ltd.		9,336		27,486
The Link REIT		19,289		94,664
Wharf Holdings Ltd.		13,000		108,503
Wheelock & Co., Ltd.		7,000		34,926
Wing Hang Bank Ltd.		46		411
Yue Yuen Industrial Holdings Ltd.		7,000		18,090
				2,847,699
Ireland — 0.6%
Anglo Irish Bank Corp. PLC*~		3,146		0
Bank of Ireland*		177,465		36,188
CRH PLC*		6,328		128,032
Elan Corp. PLC*		4,549		63,836
Experian PLC		8,268		143,697
James Hardie Industries PLC		3,154		27,083
Kerry Group PLC, A Shares		1,174		64,793
Ryanair Holdings PLC ADR*		59		3,040
Shire PLC		4,615		146,251
				612,920
Israel — 0.5%
The Israel Corp., Ltd.*		16		9,539
Bank Hapoalim BM*		8,292		37,422
Bank Leumi Le-Israel BM*		12,033		39,750
Bezeq The Israeli Telecommunication Corp., Ltd.		21,340		28,372
Delek Group Ltd.		36		9,294
Israel Chemicals Ltd.		3,410		33,488
Mellanox Technologies Ltd.*		251		12,479
Mizrahi Tefahot Bank Ltd.*		783		7,839
NICE Systems Ltd.		400		14,707
Teva Pharmaceutical Industries Ltd.		7,146		279,679
				472,569

136

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Italy — 1.8%
Assicurazioni Generali SpA		9,560	$	167,105
Atlantia SpA		3,065		49,991
Banca Monte dei Paschi di Siena SpA*		33,709		8,539
Enel Green Power SpA		17,403		36,117
Enel SpA		57,195		179,475
ENI SpA		21,315		437,466
Exor SpA		457		13,534
Fiat Industrial SpA		7,320		81,485
Fiat SpA*		7,996		55,764
Finmeccanica SpA*		2,436		12,187
Intesa Sanpaolo SpA		93,573		149,767
Intesa Sanpaolo SpA, RSP		5,114		6,847
Luxottica Group SpA		1,314		66,482
Mediobanca SpA		5,402		28,094
Pirelli & C SpA		1,674		19,352
Prysmian SpA		1,977		36,880
Saipem SpA		2,015		32,705
Snam Rete Gas SpA		17,071		77,730
Telecom Italia SpA		73,498		51,228
Telecom Italia SpA, RSP		55,911		31,171
Terna Rete Elettrica Nasionale SpA		11,628		48,318
Unicredit SpA		36,518		170,717
Unione di Banche Italiane ScpA		6,094		22,038
				1,782,992
Japan — 22.1%
ABC-Mart, Inc.		200		7,795
Acom Co., Ltd.*		320		10,180
Advantest Corp.		1,200		19,772
Aeon Co., Ltd.		5,500		72,277
AEON Financial Service Co., Ltd.		700		19,829
Aeon Mall Co., Ltd.		500		12,404
Air Water, Inc.		1,000		14,058
Aisin Seiki Co., Ltd.		1,700		64,910
Ajinomoto Co., Inc.		5,000		73,346
Alfresa Holdings Corp.		400		21,418
Amada Co., Ltd.		3,000		19,751
ANA Holdings, Ltd.		11,000		22,873
Aozora Bank Ltd.		10,000		31,231
Asahi Glass Co., Ltd.		9,000		58,336
Asahi Group Holdings Ltd.		3,400		84,224
Asahi Kasei Corp.		11,000		72,579
Asics Corp.		1,000		15,760
Astellas Pharma, Inc.		3,800		206,432
Benesse Holdings, Inc.		400		14,431
Bridgestone Corp.		5,500		187,551
Brother Industries Ltd.		1,500		16,832
Calbee, Inc.		100		9,491
Canon, Inc.		9,400		308,069
Casio Computer Co., Ltd.		1,500		13,212
Central Japan Railway Co.		1,200		146,256
Chiyoda Corp.		1,000		11,794
Chubu Electric Power Co., Inc.		5,700		80,741
Chugai Pharmaceutical Co., Ltd.		1,800		37,259
Citizen Holdings Co., Ltd.		3,100		17,291
Coca-Cola West Co., Ltd.		700		12,413

	Number of Shares		Value†
Japan — (continued)
Cosmo Oil Co., Ltd.*		6,000	$	11,035
Credit Saison Co., Ltd.		1,500		37,691
Dai Nippon Printing Co., Ltd.		5,000		45,624
Daicel Corp.		2,000		17,480
Daido Steel Co., Ltd.		2,000		10,096
Daihatsu Motor Co., Ltd.		2,000		37,881
Daiichi Sankyo Co., Ltd.		5,900		98,322
Daikin Industries Ltd.		2,100		84,882
Dainippon Sumitomo Pharma Co., Ltd.		1,400		18,516
Daito Trust Construction Co., Ltd.		700		65,954
Daiwa House Industry Co., Ltd.		4,000		74,508
Daiwa Securities Group, Inc.		15,000		125,624
Dena Co., Ltd.		700		13,705
Denso Corp.		4,000		188,053
Dentsu, Inc.		1,300		44,973
Don Quijote Co., Ltd.		400		19,418
East Japan Railway Co.		2,800		217,931
Eisai Co., Ltd.		2,200		89,659
Electric Power Development Co., Ltd.		1,000		31,265
FamilyMart Co., Ltd.		500		21,334
FANUC Corp., Ltd.		1,600		231,563
Fast Retailing Co., Ltd.		400		135,002
Fuji Electric Holdings Co., Ltd.		4,000		14,064
Fuji Heavy Industries Ltd.		5,000		123,471
FUJIFILM Holdings Corp.		4,100		90,174
Fujitsu Ltd.		16,000		66,192
Fukuoka Financial Group, Inc.		6,000		25,519
Furukawa Electric Co., Ltd.		4,000		9,254
Gree, Inc.		800		7,098
GungHo Online Entertainment, Inc.*		30		32,776
Hakuhodo DY Holdings, Inc.		250		17,510
Hamamatsu Photonics K.K.		500		18,057
Hankyu Hanshin Holdings, Inc.		10,000		56,916
Hino Motors Ltd.		2,000		29,348
Hirose Electric Co., Ltd.		200		26,342
Hitachi Chemical Co., Ltd.		1,000		15,655
Hitachi Construction Machinery Co., Ltd.		1,000		20,170
Hitachi High-Technologies Corp.		500		12,058
Hitachi Ltd.		41,000		262,707
Hitachi Metals Ltd.		1,000		11,201
Hitamitsu Pharmaceutical Co., Ltd.		400		20,298
Hokkaido Electric Power Co., Inc.*		900		12,282
Hokuhoku Financial Group, Inc.		10,000		20,420
Hokuriku Electric Power Co.		1,200		18,830
Honda Motor Co., Ltd.		13,700		508,947
Hoya Corp.		3,700		76,102
Hulic Co., Ltd.		2,800		30,039
Ibiden Co., Ltd.		1,300		20,234
Idemitsu Kosan Co., Ltd.		100		7,666
IHI Corp.		9,000		34,052
Inpex Corp.		18		74,812
Isetan Mitsukoshi Holdings Ltd.		2,500		33,197
Isuzu Motors Ltd.		11,000		75,195
ITOCHU Corp.		12,400		143,392
Itochu Technology Solutions Corp.		300		12,419

137

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
J. Front Retailing Co., Ltd.		4,000	$	31,899
Japan Airlines Co., Ltd.		1,000		51,481
Japan Exchange Group, Inc.		400		40,403
Japan Petroleum Exploration Co.		300		12,147
Japan Prime Realty Investment Corp.		5		15,300
Japan Real Estate Investment Corp.		5		55,854
Japan Retail Fund Investment Corp.		20		41,783
Japan Tobacco, Inc.		9,200		324,737
JFE Holdings, Inc.		4,300		94,204
JGC Corp.		2,000		72,025
JSR Corp.		1,900		38,444
JTEKT Corp.		1,500		16,813
JX Holdings, Inc.		18,990		91,691
Kajima Corp.		7,000		23,207
Kamigumi Co., Ltd.		2,000		16,096
Kaneka Corp.		2,000		13,187
Kansai Paint Co., Ltd.		2,000		25,530
Kao Corp.		4,300		146,379
Kawasaki Heavy Industries Ltd.		13,000		39,897
KDDI Corp.		4,400		229,123
Keikyu Corp.		4,000		34,340
Keio Corp.		5,000		34,352
Keisei Electric Railway Co., Ltd.		2,000		18,737
Keyence Corp.		341		108,646
Kikkoman Corp.		1,000		16,635
Kinden Corp.		1,000		8,605
Kintetsu Corp.		13,000		57,070
Kirin Holdings Co., Ltd.		7,000		109,650
Kobe Steel Ltd.*		18,000		22,260
Koito Manufacturing Co., Ltd.		1,000		19,063
Komatsu Ltd.		7,600		175,043
Konami Corp.		600		12,738
Konica Minolta, Inc.		3,000		22,580
Kubota Corp.		9,000		130,980
Kuraray Co., Ltd.		2,400		33,636
Kurita Water Industries Ltd.		800		16,933
Kyocera Corp.		1,300		132,270
Kyowa Hakko Kirin Co., Ltd.		2,000		22,607
Kyushu Electric Power Co., Inc.*		4,000		60,285
Lawson, Inc.		600		45,786
LIXIL Group Corp.		2,300		56,007
M3, Inc.		5		11,215
Mabuchi Motor Co., Ltd.		200		10,669
Makita Corp.		1,100		59,138
Marubeni Corp.		14,000		93,567
Marui Group Co., Ltd.		1,500		14,942
Maruichi Steel Tube Ltd.		300		7,666
Mazda Motor Corp.*		24,000		94,882
McDonald’s Holdings Co. (Japan), Ltd.		700		19,425
Medipal Holdings Corp.		1,500		20,337
MEIJI Holdings Co., Ltd.		500		24,011
Miraca Holdings, Inc.		400		18,381
Mitsubishi Chemical Holdings Corp.		12,000		56,240
Mitsubishi Corp.		12,000		205,004
Mitsubishi Electric Corp.		16,000		149,506
Mitsubishi Estate Co., Ltd.		11,000		292,863

	Number of Shares		Value†
Japan — (continued)
Mitsubishi Gas Chemical Co., Inc.		3,000	$	21,995
Mitsubishi Heavy Industries Ltd.		25,000		138,989
Mitsubishi Logistics Corp.		1,000		13,954
Mitsubishi Materials Corp.		7,000		24,644
Mitsubishi Motors Corp.*		37,000		50,645
Mitsubishi Tanabe Pharma Corp.		1,900		24,583
Mitsubishi UFJ Financial Group, Inc.		107,800		665,759
Mitsubishi UFJ Lease & Finance Co., Ltd.		4,600		21,825
Mitsui & Co., Ltd.		15,000		188,103
Mitsui Chemicals, Inc.		5,000		11,255
Mitsui Fudosan Co., Ltd.		7,000		205,800
Mitsui OSK Lines Ltd.*		10,000		38,861
Mizuho Financial Group, Inc.		189,280		393,076
MS&AD Insurance Group Holdings, Inc.		4,390		111,200
Murata Manufacturing Co., Ltd.		1,700		129,310
Nabtesco Corp.		700		14,534
Namco Bandai Holdings, Inc.		1,700		27,553
NEC Corp.		23,000		50,367
Nexon Co., Ltd.		1,100		12,150
NGK Insulators Ltd.		2,000		24,715
NGK Spark Plug Co., Ltd.		2,000		40,030
NHK Spring Co., Ltd.		1,200		13,855
Nidec Corp.		900		62,966
Nikon Corp.		2,900		67,756
Nintendo Co., Ltd.		900		105,965
Nippon Building Fund, Inc.		6		69,489
Nippon Electric Glass Co., Ltd.		2,000		9,736
Nippon Express Co., Ltd.		8,000		37,989
Nippon Meat Packers, Inc.		1,000		15,296
Nippon Steel & Sumitomo Metal Corp.		64,170		172,890
Nippon Telegraph & Telephone Corp.		3,500		182,423
Nippon Yusen K.K.		13,000		34,396
Nissan Motor Co., Ltd.		20,200		202,457
Nisshin Seifun Group, Inc.		1,500		17,974
Nissin Foods Holdings Co., Ltd.		500		20,220
Nitori Holdings Co., Ltd.		300		24,153
Nitto Denko Corp.		1,500		96,203
NKSJ Holdings, Inc.		2,825		67,135
NOK Corp.		1,000		15,855
Nomura Holdings, Inc.		30,100		221,559
Nomura Real Estate Holdings, Inc.		1,000		22,090
Nomura Real Estate Office Fund, Inc.		2		8,771
Nomura Research Institute Ltd.		1,000		32,477
NSK Ltd.		3,000		28,620
NTT Data Corp.		10		35,620
NTT DOCOMO, Inc.		132		205,353
NTT Urban Development Corp.		10		12,274
Obayashi Corp.		6,000		31,111
Odakyu Electric Railway Co., Ltd.		5,000		48,828
Oji Holdings Corp.		6,000		24,185
Olympus Corp.*		1,500		45,581
Omron Corp.		1,600		47,701
Ono Pharmaceutical Co., Ltd.		600		40,842
Oracle Corp. Japan		200		8,284
Oriental Land Co., Ltd.		400		61,902
ORIX Corp.		8,800		120,091

138

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Osaka Gas Co., Ltd.		16,000	$	67,558
Otsuka Corp.		100		11,153
Otsuka Holdings Co., Ltd.		3,000		99,057
Panasonic Corp.		18,200		146,547
Park24 Co., Ltd.		800		14,514
Rakuten, Inc.		6,300		74,497
Resona Holdings, Inc.		16,200		78,897
Ricoh Co., Ltd.		5,000		59,252
Rinnai Corp.		300		21,332
Rohm Co., Ltd.		900		36,550
Sankyo Co., Ltd.		400		18,901
Sanrio Co., Ltd.		300		13,916
Santen Pharmaceutical Co., Ltd.		600		25,965
SBI Holdings, Inc.		1,710		18,800
Secom Co., Ltd.		1,800		97,867
Sega Sammy Holdings, Inc.		1,900		47,610
Sekisui Chemical Co., Ltd.		3,000		31,856
Sekisui House Ltd.		5,000		72,242
Seven & I Holdings Co., Ltd.		6,500		238,052
Seven Bank Ltd.		5,300		19,213
Sharp Corp.*		7,000		28,185
Shikoku Electric Power Co., Inc.*		1,300		23,476
Shimadzu Corp.		1,000		8,050
Shimamura Co., Ltd.		200		24,278
Shimano, Inc.		700		59,629
Shimizu Corp.		5,000		20,100
Shin-Etsu Chemical Co., Ltd.		3,500		231,648
Shinsei Bank Ltd.		14,000		31,792
Shionogi & Co., Ltd.		2,800		58,390
Shiseido Co., Ltd.		3,300		49,100
Showa Denko K.K.		9,000		11,869
Showa Shell Sekiyu K.K.		2,200		18,050
SMC Corp.		500		100,238
Softbank Corp.		8,100		471,501
Sojitz Corp.		9,400		15,596
Sony Corp.		8,400		177,460
Sony Financial Holdings, Inc.		1,200		18,893
Stanley Electric Co., Ltd.		1,300		25,256
Sumco Corp.		1,000		10,954
Sumitomo Chemical Co., Ltd.		15,000		47,047
Sumitomo Corp.		9,900		123,390
Sumitomo Electric Industries Ltd.		5,900		70,234
Sumitomo Heavy Industries Ltd.		3,000		12,597
Sumitomo Metal Mining Co., Ltd.		4,000		44,555
Sumitomo Mitsui Financial Group, Inc.		10,700		489,772
Sumitomo Mitsui Trust Holdings, Inc.		26,430		123,319
Sumitomo Realty & Development Co., Ltd.		3,000		119,562
Sumitomo Rubber Industries Ltd.		1,200		19,589
Suruga Bank Ltd.		2,000		36,269
Suzuken Co., Ltd.		400		13,462
Suzuki Motor Corp.		2,800		64,541
Sysmex Corp.		700		45,847
T&D Holdings, Inc.		5,400		72,233
Taiheiyo Cement Corp.		7,000		22,338
Taisei Corp.		8,000		28,880
Taisho Pharmaceutical Holdings Co., Ltd.		300		21,293

	Number of Shares		Value†
Japan — (continued)
Taiyo Nippon Sanso Corp.		1,000	$	6,896
Takashimaya Co., Ltd.		3,000		30,406
Takeda Pharmaceutical Co., Ltd.		6,600		297,620
TDK Corp.		900		31,014
Teijin Ltd.		6,000		13,143
Terumo Corp.		1,100		54,678
The Bank of Kyoto Ltd.		3,000		24,984
The Bank of Yokohama Ltd.		10,000		51,586
The Chiba Bank Ltd.		7,000		47,760
The Chugoku Bank Ltd.		2,000		28,025
The Chugoku Electric Power Co., Inc.		2,100		32,928
The Dai-ichi Life Insurance Co., Ltd.		74		106,230
The Gunma Bank Ltd.		3,000		16,587
The Hachijuni Bank Ltd.		4,000		23,338
The Hiroshima Bank Ltd.		4,000		17,025
The Iyo Bank Ltd.		3,000		28,673
The Japan Steel Works Ltd.		2,000		10,975
The Joyo Bank Ltd.		6,000		32,769
The Kansai Electric Power Co., Inc.*		5,900		80,761
The Nishi-Nippon City Bank Ltd.		7,000		18,253
The Shizuoka Bank Ltd.		4,000		43,143
The Yokohama Rubber Co., Ltd.		2,000		20,082
THK Co., Ltd.		1,000		20,983
Tobu Railway Co., Ltd.		9,000		46,383
Toho Co., Ltd.		900		18,511
Toho Gas Co., Ltd.		3,000		15,514
Tohoku Electric Power Co., Inc.*		4,400		54,938
Tokio Marine Holdings, Inc.		5,900		186,174
Tokyo Electric Power Co., Inc.*		12,200		62,981
Tokyo Electron Ltd.		1,500		75,839
Tokyo Gas Co., Ltd.		21,000		115,858
Tokyo Tatemono Co., Ltd.		3,000		24,963
Tokyu Corp.		10,000		65,478
Tokyu Land Corp.		3,000		27,462
TonenGeneral Sekiyu K.K.		2,000		19,353
Toppan Printing Co., Ltd.		4,000		27,748
Toray Industries, Inc.		13,000		84,001
Toshiba Corp.		33,000		158,188
TOTO Ltd.		2,000		20,336
Toyo Seikan Kaisha Group Holdings Ltd.		1,000		15,393
Toyo Suisan Kaisha Ltd.		1,000		33,273
Toyoda Gosei Co., Ltd.		400		9,780
Toyota Boshoku Corp		900		12,941
Toyota Industries Corp.		1,200		49,006
Toyota Motor Corp.		23,300		1,405,406
Toyota Tsusho Corp.		1,800		46,283
Trend Micro, Inc.		1,100		34,972
Tsumura & Co.		600		17,682
Ube Industries Ltd.		7,000		12,950
Unicharm Corp.		1,000		56,558
United Urban Investment Corp		19		25,650
USS Co., Ltd.		220		27,890
West Japan Railway Co.		1,300		55,133
Yahoo! Japan Corp.		106		52,196
Yakult Honsha Co., Ltd.		900		37,320
Yamada Denki Co., Ltd.		830		33,606

139

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Yamaguchi Financial Group, Inc.		2,000	$	19,678
Yamaha Corp.		1,600		18,332
Yamaha Motor Co., Ltd.		2,400		31,085
Yamato Holdings Co., Ltd.		2,800		58,969
Yamato Kogyo Co., Ltd.		300		9,163
Yamazaki Baking Co., Ltd.		1,000		11,736
Yaskawa Electric Corp.		2,000		24,273
Yokogawa Electric Corp.		2,000		23,910
				21,345,035
Jersey — 0.0%
Randgold Resources Ltd.		735		46,575
Luxembourg — 0.3%
ArcelorMittal		8,713		97,518
Millicom International Cellular S.A.		489		35,219
SES S.A.		2,610		74,780
Tenaris S.A.		4,127		82,657
				290,174
Macau — 0.0%
Wynn Macau Ltd.		12,400		33,353
Netherlands — 4.7%
Aegon N.V.		14,942		100,246
Akzo Nobel N.V.		2,031		114,601
ASML Holding N.V.		2,619		206,745
Corio N.V.		732		29,132
DE Master Blenders 1753 N.V.*		4,627		74,079
Delta Lloyd N.V.		1,495		29,960
European Aeronautic Defence & Sapce Co. N.V.		4,895		261,885
Fugro N.V.		528		28,689
Gemalto N.V.		710		64,285
Heineken Holdings N.V.		933		52,291
Heineken N.V.		1,938		123,356
ING Groep N.V.*		32,429		296,370
Koninklijke Ahold N.V.		8,855		131,699
Koninklijke Boskalis Westminster N.V.		785		28,596
Koninklijke DSM N.V.		1,342		87,489
Koninklijke KPN N.V.*		27,099		56,225
Koninklijke Philips N.V.		8,673		236,434
Koninklijke Vopak N.V.		584		34,470
QIAGEN N.V.*		1,994		39,017
Randstad Holding N.V.		903		37,121
Reed Elsevier N.V.		5,974		99,493
Royal Dutch Shell PLC, A Shares		32,462		1,036,973
Royal Dutch Shell PLC, B Shares		21,881		724,680
TNT Express N.V.		3,428		25,684
Unilever N.V.		14,022		551,963
Wolters Kluwer N.V.		2,773		58,736
Ziggo N.V.		1,430		57,439
				4,587,658
New Zealand — 0.1%
Auckland International Airport Ltd.		6,300		14,490
Contact Energy Ltd.		2,990		11,833

	Number of Shares		Value†
New Zealand — (continued)
Fletcher Building Ltd.		6,425	$	41,843
SKYCITY Entertainment Group Ltd.		4,623		15,596
Telecom Corp. of New Zealand Ltd.		14,881		25,913
				109,675
Norway — 0.7%
Aker Solutions ASA		1,631		22,266
DNB ASA		8,532		123,771
Gjensidige Forsikring ASA		1,418		20,890
Norsk Hydro ASA		6,555		26,285
Orkla ASA		6,430		52,646
Statoil ASA		9,516		196,582
Telenor ASA		6,166		122,475
Yara International ASA		1,592		63,488
				628,403
Portugal — 0.2%
Banco Espirito Santo S.A.*		19,299		15,472
EDP — Energias de Portugal S.A.		16,826		54,277
Galp Energia SGPS, S.A., B Shares		2,276		33,739
Jeronimo Martins SGPS, S.A.		2,107		44,408
Portugal Telecom SGPS, S.A.		4,543		17,674
				165,570
Singapore — 1.6%
Ascendas Real Estate Investment Trust		15,000		26,287
CapitaCommercial Trust		16,000		18,458
CapitaLand Ltd.		23,000		55,568
CapitaMall Trust		21,700		34,052
CapitaMalls Asia Ltd.		7,000		10,040
City Developments Ltd.		3,000		25,238
ComfortDelGro Corp. Ltd.		14,000		20,120
DBS Group Holdings Ltd.		14,827		180,413
Genting Singapore PLC		55,000		57,032
Global Logistic Properties Ltd.		26,000		56,240
Golden Agri-Resources Ltd.		65,000		28,615
Hutchison Port Holdings Trust		35,100		25,799
Jardine Cycle & Carriage Ltd.		1,000		33,434
Keppel Corp. Ltd.		11,600		94,880
Keppel Land Ltd.		5,431		14,282
Olam International Ltd.		10,179		13,102
Oversea-Chinese Banking Corp. Ltd.		21,133		166,129
SembCorp Industries Ltd.		9,000		35,014
SembCorp Marine Ltd.		7,000		23,721
Singapore Airlines Ltd.		4,000		31,928
Singapore Exchange Ltd.		8,000		44,219
Singapore Press Holdings Ltd.		15,000		49,301
Singapore Technologies Engineering Ltd.		12,000		39,530
Singapore Telecommunications Ltd.		65,000		192,518
StarHub, Ltd.		5,000		16,440
United Overseas Bank Ltd.		10,345		161,549
UOL Group Ltd.		4,000		21,146
Wilmar International Ltd.		18,000		44,518
				1,519,573

140

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Spain — 2.8%
Abertis Infraestructuras S.A.		3,395	$	59,153
Acciona S.A.		126		6,643
ACS Actividades de Construccion y Servicios S.A.		1,331		35,210
Amadeus IT Holding S.A.		3,201		102,448
Banco Bilbao Vizcaya Argentaria S.A.		46,022		386,760
Banco de Sabadell S.A.		24,455		40,570
Banco Popular Espanol S.A.*		9,749		29,844
Banco Santander S.A.		91,835		587,672
Bankia S.A.*		33,916		26,274
CaixaBank		10,934		33,584
Distribuidora Internacional de Alimentacion S.A.		5,983		45,197
Enagas S.A.		1,741		43,030
Ferrovial S.A.		3,335		53,243
Gas Natural SDG S.A.		2,920		58,831
Grifols S.A.		1,270		46,659
Iberdrola S.A.		40,906		216,171
Inditex S.A.		1,858		229,174
Mapfre S.A.		5,533		18,002
Red Electrica de Espana S.A.		1,008		55,427
Repsol S.A.		7,114		150,140
Telefonica S.A.*		35,056		451,007
Zardoya Otis S.A.		1,428		20,222
				2,695,261
Sweden — 3.1%
Alfa Laval AB		2,688		54,903
Assa Abloy AB, B Shares		2,855		111,578
Atlas Copco AB, A Shares		5,624		135,549
Atlas Copco AB, B Shares		3,512		75,159
Boliden AB		1,883		23,340
Electrolux AB, B Shares		2,141		54,028
Elekta AB, B Shares		3,250		49,395
Getinge AB, B Shares		1,862		56,532
Hennes & Mauritz AB, B Shares		7,954		261,698
Hexagon AB, B Shares		2,213		59,157
Husqvarna AB, B Shares		2,834		14,967
Industrivarden AB, C Shares		1,227		20,489
Investment AB Kinnevik, B Shares		1,915		49,095
Investor AB, B Shares		3,851		103,364
Lundin Petroleum AB*		2,072		40,981
Nordea Bank AB		22,401		250,158
Ratos AB, B Shares		1,400		10,857
Sandvik AB		8,368		99,942
Scania AB, B Shares		2,955		59,120
Securitas AB, B Shares		1,984		17,345
Skandinaviska Enskilda Banken AB, A Shares		12,780		122,011
Skanska AB, B Shares		3,416		56,611
SKF AB, B Shares		3,364		78,809
Svenska Cellulosa AB, B Shares		4,990		125,143
Svenska Handelsbanken AB, A Shares		4,170		167,069
Swedbank AB, A Shares		7,619		174,510
Swedish Match AB		1,891		67,120
Tele2 AB, B Shares*		2,927		34,362
Telefonaktiebolaget LM Ericsson, B Shares		25,280		286,671

	Number of Shares		Value†
Sweden — (continued)
TeliaSonera AB		20,037	$	130,575
Volvo AB, B Shares		13,105		174,879
				2,965,417
Switzerland — 9.6%
ABB Ltd.*		18,855		408,436
Actelion Ltd.*		893		53,792
Adecco S.A.*		1,194		68,001
Aryzta AG*		816		45,805
Baloise Holding AG		439		42,638
Banque Cantonale Vaudoise		32		15,862
Barry Callebaut AG*		11		10,068
Coca-Cola HBC AG*		1,858		43,491
Coca-Cola HBC AG*		1,187		27,177
Compagnie Financiere Richemont S.A.		4,358		384,325
Credit Suisse Group AG*		12,606		333,732
EMS-Chemie Holding AG		65		19,252
Geberit AG*		325		80,510
Givaudan S.A.*		72		92,777
Glencore Xstrata PLC*		84,088		348,083
Holcim Ltd.*		1,887		131,347
Julius Baer Group Ltd.*		1,980		77,276
Kuehne + Nagel International AG		442		48,494
Lindt & Spruengli AG		1		43,511
Lindt & Spruengli AG, Participation Certificates		7		26,276
Lonza Group AG*		511		38,395
Nestle S.A.		27,132		1,780,413
Novartis AG		19,353		1,370,784
Pargesa Holding S.A.		223		14,859
Partners Group Holding AG		138		37,354
Roche Holding AG		5,911		1,467,094
Schindler Holding AG		145		19,638
Schindler Holding AG, Participation Certificates		453		63,030
SGS S.A.		47		100,905
Sika AG		20		51,715
Sonova Holding AG*		465		49,195
STMicroelectronics N.V.		4,919		44,206
Sulzer AG		224		35,769
Swiss Life Holding AG*		300		48,697
Swiss Prime Site AG*		430		31,611
Swiss Re AG*		3,014		224,244
Swisscom AG		198		86,679
Syngenta AG		789		307,678
The Swatch Group AG		257		140,383
The Swatch Group AG, Registered Shares		408		38,366
Transocean Ltd.		2,097		100,551
Transocean Ltd.		928		44,560
UBS AG*		30,519		518,025
Wolseley PLC		2,276		105,014
Zurich Insurance Group AG*		1,224		317,272
				9,337,290
United Kingdom — 18.5%
3i Group PLC		8,442		43,347
Aberdeen Asset Management PLC		7,687		44,736
Admiral Group PLC		1,957		39,422

141

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Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
United Kingdom — (continued)
Aggreko PLC		2,267	$	56,663
AMEC PLC		2,494		38,144
Anglo American PLC		11,557		222,712
Antofagasta PLC		3,403		41,235
ARM Holdings PLC		11,679		141,283
Associated British Foods PLC		3,044		80,301
AstraZeneca PLC		10,552		498,889
Aviva PLC		24,226		124,865
Babcock International Group PLC		3,027		50,826
BAE Systems PLC		27,534		160,345
Barclays PLC		102,794		437,776
BG Group PLC		28,500		484,333
BHP Billiton PLC		17,687		450,983
BP PLC		160,799		1,115,943
British American Tobacco PLC		16,237		832,794
British Land Co. PLC		8,292		71,433
British Sky Broadcasting Group PLC		9,078		109,363
BT Group PLC		66,035		310,020
Bunzl PLC		2,940		57,342
Burberry Group PLC		3,783		77,826
Carnival PLC		1,577		54,817
Centrica PLC		43,989		240,609
Cobham PLC		8,466		33,755
Compass Group PLC		15,226		194,553
Croda International PLC		1,228		46,308
Diageo PLC		21,198		607,884
Direct Line Insurance Group PLC		6,941		24,664
easyjet PLC		1,334		26,294
Fresnillo PLC		1,200		16,201
G4S PLC		12,521		44,149
GKN PLC		14,782		67,663
GlaxoSmithKline PLC		41,280		1,031,851
Hammerson PLC		5,215		38,668
Hargreaves Lansdown PLC		1,892		25,556
HSBC Holdings PLC		156,409		1,619,179
ICAP PLC		3,290		18,165
IMI PLC		2,841		53,549
Imperial Tobacco Group PLC		8,326		288,703
Inmarsat PLC		3,494		35,782
Intercontinental Hotels Group PLC		2,355		64,721
International Consolidated Airlines Group S.A. (London Main Market Exchange)*		2,764		11,085
International Consolidated Airlines Group S.A. (Spanish Stock Exchange)*		3,469		13,927
Intertek Group PLC		1,257		55,876
Intu Properties PLC		6,425		30,542
Invensys PLC		5,914		37,031
Investec PLC		3,627		22,825
ITV PLC		33,457		71,333
J. Sainsbury PLC		9,762		52,762
Johnson Matthey PLC		1,762		70,401
Kingfisher PLC		19,993		104,240
Land Securities Group PLC		6,977		93,707
Legal & General Group PLC		50,239		130,941
Lloyds Banking Group PLC*		384,695		369,429

	Number of Shares		Value†
United Kingdom — (continued)
London Stock Exchange Group PLC		1,386	$	28,172
Marks & Spencer Group PLC		13,650		89,316
Meggitt PLC		7,306		57,562
National Grid PLC		30,788		349,003
New Melrose PLC*		9,971		37,793
Next PLC		1,440		99,750
Old Mutual PLC		40,891		112,251
Pearson PLC		6,846		121,752
Persimmon PLC*		2,549		45,757
Petrofac Ltd.		1,906		34,696
Prudential PLC		21,974		358,679
Reckitt Benckiser Group PLC		5,396		381,696
Reed Elsevier PLC		10,172		115,678
Rexam PLC		7,158		51,948
Rio Tinto PLC		10,484		426,376
Rolls-Royce Holdings PLC*~		1,893,409		2,880
Royal Bank of Scotland Group PLC*		18,564		77,037
RSA Insurance Group PLC		27,278		49,488
SABMiller PLC		8,207		393,474
Schroders PLC		1,114		36,982
Segro PLC		7,540		31,987
Serco Group PLC		4,866		45,760
Severn Trent PLC		2,174		55,050
Smith & Nephew PLC		7,583		84,929
Smiths Group PLC		3,398		67,603
SSE PLC		8,214		190,217
Standard Chartered PLC		20,624		447,758
Standard Life PLC		20,288		106,770
Subsea 7 S.A.		2,461		43,297
Tate & Lyle PLC		4,356		54,654
Tesco PLC		68,988		347,413
The Capita PLC		5,623		82,653
The Sage Group PLC		8,870		45,842
The Weir Group PLC		1,862		60,886
Travis Perkins PLC		2,061		45,635
TUI Travel PLC		5,421		29,392
Tullow Oil PLC		7,372		112,223
Unilever PLC		10,989		444,861
United Utilities Group PLC		5,902		61,406
Vedanta Resources PLC		511		7,942
Vodafone Group PLC		414,750		1,188,547
W.M. Morrison Supermarkets PLC		17,966		71,513
Whitbread PLC		1,592		74,060
William Hill PLC		7,259		48,678
WPP PLC		10,309		176,211
				17,883,328
TOTAL COMMON STOCKS (Cost $85,589,197)				94,549,912
PREFERRED STOCKS — 0.9%
Germany — 0.6%
Bayerische Motoren Werke AG		500		34,148
Henkel AG & Co. KGaA		1,550		145,559
Porsche Automobil Holding SE		1,303		100,621

142

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Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

	Number of Shares		Value†
PREFERRED STOCKS — (continued)
Germany — (continued)
ProSiebenSat.1 Media AG*		983	$	42,161
RWE AG		206		6,358
Volkswagen AG		1,232		248,843
				577,690
United Kingdom — 0.3%
Rolls-Royce Holdings PLC, Series C*		15,911		273,963
TOTAL PREFERRED STOCKS (Cost $547,721)				851,653
RIGHTS — 0.0%
Spain — 0.0%
Repsol S.A.* (Cost $4,248)		7,106		3,959
WARRANTS — 0.0%
Belgium — 0.0%
Anheuser-Busch InBev N.V.* 02/27/13 (Cost $0)		256		0
SHORT-TERM INVESTMENTS — 1.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,403,051)		1,403,051		1,403,051
TOTAL INVESTMENTS — 100.0% (Cost $87,544,217)			$	96,808,575

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2013 is $55,132.

ADR — American Depository Receipt.

PLC — Public Limited Company.

PPS — Partially Protected Shares.

REIT — Real Estate Investment Trust.

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Advertising		0.4%	$	360,398
Aerospace & Defense		0.8%		710,146
Agriculture		1.7%		1,586,487
Airlines		0.2%		228,304
Apparel		0.8%		757,640
Auto Manufacturers		4.1%		3,862,019
Auto Parts & Equipment		1.2%		1,137,966
Banks		14.4%		13,617,894
Beverages		2.7%		2,520,796
Biotechnology		0.3%		303,413
Building & Real Estate		0.1%		45,757

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Building Materials		1.2%	$	1,086,587
Chemicals		4.1%		3,914,050
Coal		—%		6,240
Commercial Services		1.5%		1,433,220
Computers		0.4%		363,812
Cosmetics & Personal Care		0.7%		660,563
Distribution & Wholesale		1.1%		1,021,933
Diversified		—%		26,287
Diversified Financial Services		1.5%		1,401,669
Diversified Operations		0.2%		157,798
Electric		2.7%		2,594,775
Electrical Components & Equipment		1.0%		975,683
Electronics		1.2%		1,166,611
Energy-Alternate Sources		—%		41,864
Engineering & Construction		1.3%		1,236,799
Entertainment		0.2%		178,440
Environmental Control		—%		16,933
Food		5.5%		5,149,721
Food Service		0.2%		194,553
Forest Products & Paper		0.2%		230,194
Gas		0.8%		737,908
Hand & Machine Tools		0.4%		377,033
Healthcare Products		0.9%		866,341
Healthcare Services		0.2%		204,224
Holding Companies		0.6%		555,962
Home Builders		0.2%		178,606
Home Furnishings		0.4%		406,220
Hotels & Resorts		0.3%		264,861
Household Products & Wares		0.5%		508,589
Industrial		—%		2,880
Insurance		5.2%		4,901,050
Internet		0.3%		291,571
Investment Companies		0.3%		325,583
Iron & Steel		0.6%		542,852
Leisure Time		0.3%		256,585
Lodging		0.4%		360,686
Machinery — Construction & Mining		0.4%		405,921
Machinery — Diversified		1.1%		1,050,452
Media		1.0%		952,337
Metal Fabricate/Hardware		0.4%		348,760
Mining		3.0%		2,861,031
Miscellaneous Manufacturing		1.3%		1,271,932
Mixed Industrial/Office		0.5%		436,182
Office & Business Equipment		0.4%		367,321
Oil & Gas		6.5%		6,134,812
Oil & Gas Services		0.4%		347,427
Packaging and Containers		0.2%		155,435
Pharmaceuticals		8.3%		7,857,888
Pipelines		0.1%		45,297
Real Estate		1.8%		1,734,240
Real Estate Investment Trusts		0.8%		783,663
Retail		2.9%		2,723,420
Semiconductors		0.7%		626,266
Shipbuilding		—%		36,122
Software		0.9%		880,415
Storage & Warehousing		—%		13,954
Strip Centers		0.3%		289,228
Telecommunications		5.6%		5,272,413

143

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Schedule of Investments — June 30, 2013 (Unaudited)

Developed International Index Fund

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Textiles		0.1%	$	130,780
Toys, Games & Hobbies		0.2%		147,434
Transportation		1.8%		1,675,781
Venture Capital		—%		43,347
Water		0.2%		188,551
		100.0%	$	94,549,912

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Australia	$	7,559,948	$	—	$	7,559,948	$	—
Austria		243,417		—		243,417		—
Belgium		1,111,380		17,303		1,094,077		—
Bermuda		127,193		—		127,193		—
China		47,180		—		47,180		—
Denmark		1,085,064		50,248		1,034,816		—
Finland		751,968		—		751,968		—
France		8,590,243		70,153		8,520,090		—
Germany		7,616,124		—		7,616,124		—
Greece		36,655		—		36,655		—
Guernsey		57,248		—		57,248		—
Hong Kong		2,847,699		—		2,847,699		—
Ireland		612,920		67,833		545,087		—
Israel		472,569		—		472,569		—
Italy		1,782,992		—		1,782,992		—
Japan		21,345,035		7,098		21,337,937		—
Jersey		46,575		—		46,575		—
Luxembourg		290,174		—		290,174		—
Macau		33,353		—		33,353		—
Netherlands		4,587,658		138,364		4,449,294		—
New Zealand		109,675		—		109,675		—
Norway		628,403		—		628,403		—
Portugal		165,570		—		165,570		—
Singapore		1,519,573		25,799		1,493,774		—
Spain		2,695,261		—		2,695,261		—
Sweden		2,965,417		—		2,965,417		—
Switzerland		9,337,290		171,219		9,166,071		—
United Kingdom		17,883,328		—		17,883,328		—
PREFERRED STOCKS		851,653		—		851,653		—
RIGHTS		3,959		3,959		—		—
SHORT-TERM INVESTMENTS		1,403,051		1,403,051		—		—
TOTAL INVESTMENTS	$	96,808,575	$	1,955,027	$	94,853,548	$	—

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 significant 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.

144

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Schedule of Investments — June 30, 2013 (Unaudited)

International Equity Fund

	Number of Shares		Value†
COMMON STOCKS — 95.2%
Australia — 2.5%
Newcrest Mining Ltd.		456,562	$	4,214,627
Ramsay Health Care Ltd.		138,821		4,537,465
				8,752,092
Belgium — 1.0%
Anheuser-Busch InBev N.V.		39,445		3,551,340
Canada — 5.8%
Bank of Nova Scotia		104,487		5,585,489
Enbridge, Inc.		157,673		6,628,053
Goldcorp, Inc.		314,537		7,811,835
				20,025,377
Denmark — 3.0%
Novo Nordisk A/S, B Shares		66,447		10,330,013
France — 8.6%
Bureau Veritas S.A.		379,916		9,838,010
Essilor International S.A.		54,009		5,753,974
Hermes International		8,771		2,830,986
L’Oreal S.A.		35,372		5,814,576
Pernod-Ricard S.A.		49,945		5,543,564
				29,781,110
Germany — 2.3%
SAP AG		112,184		8,191,973
Hong Kong — 3.3%
Cheung Kong Infrastructure Holdings Ltd.		201,321		1,341,475
L’Occitane International SA		1,027,495		2,760,180
Sands China Ltd.		831,930		3,887,666
The Link REIT		724,163		3,553,959
				11,543,280
India — 12.3%
HDFC Bank Ltd.		998,059		11,181,626
HDFC Bank Ltd. ADR		696		25,223
Hindustan Unilever Ltd.		439,058		4,323,345
Housing Development Finance Corp.		1,113,486		16,392,518
ITC Ltd.		1,968,479		10,713,003
				42,635,715
Ireland — 2.9%
Accenture PLC, Class A		67,859		4,883,133
Paddy Power PLC		59,325		5,119,683
				10,002,816
Italy — 0.7%
Luxottica Group SpA		47,444		2,400,435
Japan — 1.3%
Daito Trust Construction Co., Ltd.		47,700		4,494,282
Mexico — 1.0%
Wal-Mart de Mexico S.A.B de C.V., Series V		1,263,611		3,541,928
Netherlands — 8.0%
Core Laboratories N.V.		76,762		11,641,725
Unilever N.V.		409,528		16,120,701
				27,762,426

	Number of Shares		Value†
Switzerland — 16.0%
DKSH Holding AG*		80,483	$	6,605,717
Lindt & Spruengli AG, Participation Certificates		1,672		6,276,294
Nestle S.A.		229,232		15,042,296
Novartis AG		12,022		851,525
Roche Holding AG		3,224		800,188
SGS S.A.		4,688		10,064,770
UBS AG*		950,809		16,138,879
				55,779,669
United Kingdom — 21.4%
Barratt Developments PLC*		731,607		3,441,787
British American Tobacco PLC		393,630		20,189,236
Diageo PLC		339,097		9,724,109
Domino’s Pizza UK & IRL PLC		462,324		4,713,112
Fresnillo PLC		389,078		5,252,910
HSBC Holdings PLC		838,937		8,684,852
Persimmon PLC*		243,862		4,377,567
Rolls-Royce Holdings PLC*~		43,562,330		66,256
SABMiller PLC		232,935		11,167,756
Standard Chartered PLC		321,051		6,970,182
				74,587,767
United States — 5.1%
Philip Morris International, Inc.		204,177		17,685,812
TOTAL COMMON STOCKS (Cost $267,940,790)				331,066,035
PREFERRED STOCKS — 1.8%
United Kingdom — 1.8%
Rolls-Royce Holdings PLC, Series C* (Cost $4,334,430)		366,070		6,303,173
SHORT-TERM INVESTMENTS — 3.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $10,448,322)		10,448,322		10,448,322
TOTAL INVESTMENTS — 100.0% (Cost $282,723,542)			$	347,817,530

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2013 is $66,256.

ADR — American Depository Receipt.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

145

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Schedule of Investments — June 30, 2013 (Unaudited)

International Equity Fund

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Agriculture		14.7%	$	48,588,051
Apparel		0.8%		2,830,986
Banks		13.0%		43,000,762
Beverages		9.0%		29,986,769
Building & Real Estate		2.4%		7,819,354
Commercial Services		6.0%		19,902,780
Computers		1.5%		4,883,133
Cosmetics & Personal Care		2.6%		8,574,756
Diversified Financial Services		4.9%		16,392,518
Entertainment		1.5%		5,119,683
Food		11.3%		37,439,291
Healthcare Products		2.5%		8,154,409
Healthcare Services		1.4%		4,537,465
Household Products & Wares		1.3%		4,323,345
Industrial		2.4%		7,878,091
Internet		2.0%		6,605,717
Investment Companies		0.4%		1,341,475
Lodging		1.2%		3,887,666
Mining		2.9%		9,467,537
Oil & Gas Services		5.5%		18,269,778
Pharmaceuticals		3.6%		11,981,726
Real Estate		1.3%		4,494,282
Real Estate Investment Trusts		1.1%		3,553,959
Retail		2.5%		8,255,040
Software		2.5%		8,191,973
Miscellaneous		1.7%		5,585,489
		100.0%	$	331,066,035

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Australia	$	8,752,092	$	—	$	8,752,092	$	—
Belgium		3,551,340		—		3,551,340		—
Canada		20,025,377		20,025,377		—		—
Denmark		10,330,013		—		10,330,013		—
France		29,781,110		—		29,781,110		—
Germany		8,191,973		—		8,191,973		—
Hong Kong		11,543,280		—		11,543,280		—
India		42,635,715		4,348,568		38,287,147		—
Ireland		10,002,816		10,002,816		—		—
Italy		2,400,435		—		2,400,435		—
Japan		4,494,282		—		4,494,282		—
Mexico		3,541,928		3,541,928		—		—
Netherlands		27,762,426		11,641,725		16,120,701		—
Switzerland		55,779,669		—		55,779,669		—
United Kingdom		74,587,767		—		74,587,767		—
United States		17,685,812		17,685,812		—		—
PREFERRED STOCKS		6,303,173		—		6,303,173		—
SHORT-TERM INVESTMENTS		10,448,322		10,448,322		—		—
TOTAL INVESTMENTS	$	347,817,530	$	77,694,548	$	270,122,982	$	—

Fair Value of Level 2 investments at 12/31/12 was $282,816,186 which was a result of valuing investments using third-party vendor modeling tools. An amount of $8,633,714 was transferred from Level 2 into Level 1 at 06/30/2013 as a result of using quoted prices in active market for such foreign securities.

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 3 fair value hierarchies during the reporting period.

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

146

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Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — 93.4%
Austria — 0.6%
Vienna Insurance Group AG Wiener Versicherung Gruppe		18,910	$	877,219
Brazil — 4.6%
BRF — S.A.		125,200		2,705,041
BRF — S.A. ADR		2,600		56,446
CCR S.A.		129,300		1,029,138
PDG Realty S.A. Empreendimentos e Participacoes*		277,600		258,771
Petroleo Brasileiro S.A.		43,349		288,689
Petroleo Brasileiro S.A. ADR		28,100		411,946
Petroleo Brasileiro S.A. ADR		39,800		534,116
Raia Drogasil S.A.		58,500		566,818
Ultrapar Participacoes S.A.		37,700		900,029
				6,750,994
Chile — 1.2%
Empresa Nacional de Electricidad S.A.		328,957		483,675
Empresa Nacional de Electricidad S.A. ADR		1,500		66,255
S.A.C.I. Falabella		115,985		1,255,619
				1,805,549
China — 7.8%
Bank of China Ltd., Class H		5,920,000		2,425,217
Baoxin Auto Group Ltd.		210,500		133,933
China Construction Bank Corp., Class H		2,067,930		1,453,173
China Oilfield Services Ltd., Class H		390,000		758,506
China Pacific Insurance Group Co. Ltd., Class H		456,400		1,446,916
China Petroleum & Chemical Corp.,Class H		806,000		564,010
China Shenhua Energy Co. Ltd., Class H		23,500		59,739
Qihoo 360 Technology Co. Ltd. ADR*		16,541		763,698
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		177,000		330,881
Sihuan Pharmaceutical Holdings Group Ltd		340,000		222,590
Tencent Holdings Ltd.		51,800		2,022,647
Tsingtao Brewery Co. Ltd., Class H		104,000		741,085
Uni-President China Holdings Ltd.		562,500		569,159
				11,491,554
Colombia — 0.3%
Grupo de Inversiones Suramericana S.A.		20,600		400,919
Cyprus — 0.4%
Eurasia Drilling Co. Ltd. GDR		17,910		668,580
Hong Kong — 3.2%
Beijing Enterprises Holdings Ltd.		73,000		525,810
Belle International Holdings Ltd.		193,000		263,846
China Mengniu Dairy Co. Ltd.		254,000		906,673
China Mobile Ltd.		160,000		1,657,097
China Overseas Grand Oceans Group Ltd.		196,000		248,285
China Overseas Land & Investment Ltd.		248,000		645,656
Sino Biopharmaceutical		860,000		555,561
				4,802,928
Hungary — 0.8%
Richter Gedeon Nyrt		7,988		1,194,056

	Number of Shares		Value†
India — 9.0%
ACC Ltd.		40,019	$	820,763
Asian Paints Ltd.		10,751		836,592
Glenmark Pharmaceuticals Ltd.		105,850		973,176
HCL Technologies Ltd.		53,218		692,727
HDFC Bank Ltd.		139,356		1,561,257
HDFC Bank Ltd. ADR		3,730		135,175
Idea Cellular Ltd.*		319,400		760,108
IndusInd Bank Ltd.		134,946		1,057,499
ING Vysya Bank Ltd.~		51,568		535,943
ITC Ltd.		213,799		1,163,553
ITC Ltd. GDR		47,905		261,034
Larsen & Toubro Ltd.		26,007		613,782
Reliance Industries Ltd.		37,817		546,510
Sun Pharmaceutical Industries Ltd.		56,696		963,609
Tata Consultancy Services Ltd.		47,190		1,203,549
Tata Steel Ltd.		65,906		302,761
Zee Entertainment Enterprises Ltd.		212,179		842,003
				13,270,041
Indonesia — 5.1%
Adaro Energy Tbk PT		3,909,000		336,076
Bank Rakyat Indonesia Tbk PT		850,000		659,940
Bank Tabungan Negara Persero Tbk PT		4,956,198		572,111
Gudang Garam Tbk PT		184,000		935,485
Harum Energy Tbk PT		1,067,000		323,402
Indosat Tbk PT		2,100,500		1,108,352
Kalbe Farma Tbk PT		6,325,500		913,130
Lippo Karawaci Tbk PT		7,458,000		1,139,449
Matahari Department Store Tbk PT*		706,000		825,519
Semen Indonesia Persero Tbk PT		409,000		702,456
				7,515,920
Japan — 0.8%
Nexon Co., Ltd.		104,600		1,155,313
Malaysia — 3.4%
Astro Malaysia Holdings Bhd		858,500		821,145
CIMB Group Holdings Bhd		524,300		1,366,763
Gamuda Bhd		672,700		1,007,856
IHH Healthcare Bhd*		576,000		720,053
IJM Corp. Bhd		585,200		1,045,164
				4,960,981
Mexico — 4.6%
Alfa S.A.B. de C.V.		500,500		1,203,599
Fomento Economico Mexicano S.A.B. de C.V. ADR		14,800		1,527,212
Grupo Financiero Banorte S.A.B. de C.V., Series O		88,900		531,035
Grupo Financiero Santander Mexico S.A.B. de C.V. ADR*		96,400		1,369,844
Mexichem S.A.B. de C.V.		188,326		780,922
Wal-Mart de Mexico S.A.B de C.V., Series V		496,500		1,391,700
				6,804,312
Netherlands — 0.7%
Yandex N.V.*		37,300		1,030,599

147

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Schedule of Investments — June 30, 2013 (Unaudited)

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Panama — 0.7%
Copa Holdings S.A., Class A		7,500	$	983,400
Peru — 1.1%
Credicorp Ltd.		13,010		1,664,760
Philippines — 4.9%
BDO Unibank, Inc.		708,800		1,389,297
Bloomberry Resorts Corp.*		2,069,300		429,965
DMCI Holdings, Inc.		800,020		952,046
International Container Terminal Services, Inc.		436,570		875,075
LT Group Inc.		1,065,100		556,267
Metro Pacific Investments Corp.		10,182,900		1,239,686
Philippine Long Distance Telephone Co.		12,405		842,479
SM Investments Corp.		37,440		922,274
				7,207,089
Poland — 2.7%
Bank Pekao S.A.		17,834		804,933
Bank Zachodni WBK S.A.		18,241		1,535,772
Polskie Gomictwo Naftowe i Gazownictwo S.A.*		584,840		1,021,724
Telekomunikacja Polska S.A.		266,700		611,902
				3,974,331
Portugal — 1.2%
Jeronimo Martins SGPS, S.A.		86,969		1,832,996
Qatar — 0.1%
Industries Qatar QSC		5,351		232,552
Russia — 2.7%
Gazprom OAO ADR		61,086		401,335
Lukoil OAO ADR		30,965		1,785,132
Mail.Ru Group Ltd. GDR		20,277		581,139
MegaFon OAO GDR*		28,117		868,228
MMC Norilsk Nickel OJSC ADR		25,766		370,257
				4,006,091
South Africa — 2.6%
AngloGold Ashanti Ltd.		16,502		235,902
AngloGold Ashanti Ltd. ADR		3,840		54,912
Life Healthcare Group Holdings Ltd.		156,300		592,822
Naspers Ltd., N Shares		18,925		1,396,886
Pick n Pay Stores Ltd.		133,836		536,132
Sasol Ltd.		23,000		1,001,369
				3,818,023
South Korea — 12.1%
Cheil Industries, Inc.		6,557		512,078
Cheil Worldwide, Inc.*		14,200		304,827
Cosmax, Inc.		5,778		230,054
Coway Co. Ltd.		16,106		782,659
GSretail Co. Ltd.		14,390		367,473
Hotel Shilla Co. Ltd.		9,909		527,524
Hyundai Engineering & Construction Co. Ltd.		21,563		1,048,582
Hyundai Glovis Co. Ltd.		4,278		723,353
Hyundai Motor Co.		11,655		2,285,902
KT Corp.		6,510		203,540

	Number of Shares		Value†
South Korea — (continued)
LG Display Co. Ltd.*		11,700	$	279,160
LG Household & Health Care Ltd.		1,281		623,970
LG Uplus Corp.*		56,550		591,265
NCSoft Corp.		4,554		641,862
Orion Corp.		476		396,615
Paradise Co. Ltd.		12,566		253,640
Samsung Electronics Co. Ltd.		5,515		6,446,066
Samsung Fire & Marine Insurance Co. Ltd.		1,273		259,246
Shinhan Financial Group Co. Ltd.		18,018		590,774
SK C&C Co. Ltd.		3,630		315,940
SK Telecom Co. Ltd.		2,428		446,522
				17,831,052
Spain — 0.3%
Cemex Latam Holdings S.A.*		77,101		513,556
Switzerland — 1.6%
Coca-Cola HBC AG*		47,791		1,118,670
The Swatch Group AG		2,259		1,233,954
				2,352,624
Taiwan — 7.0%
Asustek Computer, Inc.		38,088		325,835
Chailease Holding Co. Ltd.		397,000		929,191
CHC Healthcare Group		35,000		92,645
China Life Insurance Co. Ltd.*		592,007		582,031
Cleanaway Co. Ltd.*		58,000		440,911
Eclat Textile Co. Ltd.		37,000		271,577
Gourmet Master Co. Ltd.		27,000		155,012
Hon Hai Precision Industry Co. Ltd.		110,859		270,943
Lung Yen Life Service Corp.		80,000		259,849
MediaTek, Inc.		53,000		611,015
MStar Semiconductor, Inc.		15,000		107,535
Siliconware Precision Industries Co.		423,000		532,546
Synnex Technology International Corp.		172,000		223,447
Taiwan Cement Corp.		448,000		548,900
Taiwan Semiconductor Manufacturing Co. Ltd.		988,769		3,579,439
TPK Holding Co. Ltd.		9,000		143,170
Uni-President Enterprises Corp.		641,954		1,247,874
				10,321,920
Thailand — 7.1%
Advanced Info Service PCL NVDR		149,300		1,349,737
Bangkok Bank PCL NVDR		247,100		1,612,991
Bank of Ayudhya PCL NVDR		1,589,900		1,808,170
Banpu PCL		6,800		52,839
Banpu PCL NVDR		93,500		724,147
BTS Rail Mass Transit Growth Infrastructure Fund*		2,381,800		913,862
Land and Houses PCL NVDR		3,112,700		1,131,558
Minor International PCL		623,300		494,998
Robinson Department Store PCL		78,900		154,197
Robinson Department Store PCL NVDR		318,500		626,423
Supalai PCL		33,900		19,346
Supalai PCL NVDR		1,242,100		705,046
Total Access Communication PCL NVDR		236,400		871,247
				10,464,561

148

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Schedule of Investments — June 30, 2013 (Unaudited)

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Turkey — 3.3%
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		108,829	$	1,578,720
Haci Omer Sabanci Holding A.S.		175,444		922,385
Tupras Turkiye Petrol Rafinerilieri A.S.		27,228		664,856
Turkiye Garanti Bankasi A.S.		378,505		1,649,898
				4,815,859
United Kingdom — 1.5%
Mondi PLC		79,257		992,450
SABMiller PLC		25,581		1,239,338
				2,231,788
United States — 2.0%
Samsonite International S.A.		579,600		1,395,933
Yum! Brands, Inc.		22,440		1,555,990
				2,951,923
TOTAL COMMON STOCKS (Cost $124,568,485)				137,931,490
PREFERRED STOCKS — 3.7%
Brazil — 2.6%
Banco Bradesco S.A.		122,030		1,575,039
Cia de Bebidas das Americas ADR		44,100		1,647,135
Petroleo Brasileiro S.A.		80,800		587,709
				3,809,883
Colombia — 0.3%
Grupo de Inversiones Suramericana S.A.		25,300		499,500
South Korea — 0.8%
Samsung Electronics Co. Ltd.		1,551		1,196,097
TOTAL PREFERRED STOCKS (Cost $4,541,437)				5,505,480
EXCHANGE TRADED FUNDS — 1.6%
Chile — 0.6%
Sociedad Quimica y Minera de Chile S.A. ADR		19,900		803,960
Mexico — 1.0%
Cemex S.A.B. de C.V. ADR*		142,896		1,511,840
TOTAL EXCHANGE TRADED FUNDS (Cost $2,343,981)				2,315,800
SHORT-TERM INVESTMENTS — 1.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,895,475)		1,895,475		1,895,475
TOTAL INVESTMENTS — 100.0% (Cost $133,349,378)			$	147,648,245

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at June 30, 2013 is $535,943.

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%	$	304,827
Agriculture		1.7%		2,360,072
Airlines		0.7%		983,400
Apparel		0.2%		271,577
Auto Manufacturers		1.7%		2,285,902
Banks		16.0%		22,133,778
Beverages		4.9%		6,761,292
Building Materials		1.9%		2,585,675
Chemicals		2.0%		2,750,095
Coal		1.0%		1,436,464
Commercial Services		1.6%		2,164,062
Computers		1.3%		1,845,324
Cosmetics & Personal Care		0.6%		854,024
Distribution & Wholesale		0.3%		367,473
Diversified Financial Services		0.4%		590,774
Electric		0.4%		549,930
Electrical Components & Equipment		0.3%		429,965
Electronics		0.7%		916,720
Engineering & Construction		2.6%		3,622,266
Entertainment		0.2%		253,640
Environmental Control		0.9%		1,223,570
Food		5.6%		7,714,804
Forest Products & Paper		0.7%		992,450
Gas		0.4%		525,810
Healthcare Products		0.1%		92,645
Healthcare Services		1.0%		1,312,875
Holding Companies		2.3%		3,171,148
Home Builders		0.8%		1,131,558
Hotels & Resorts		0.4%		527,524
Household Products & Wares		1.0%		1,395,933
Industrial		—%		59,739
Insurance		2.3%		3,165,412
Internet		3.7%		5,039,945
Investment Companies		0.3%		400,919
Iron & Steel		0.2%		302,761
Media		2.2%		3,060,034
Mining		0.5%		661,071
Miscellaneous Manufacturing		0.4%		512,078
Oil & Gas		5.2%		7,219,687
Oil & Gas Services		1.0%		1,427,086
Pharmaceuticals		3.5%		4,822,122
Real Estate		2.9%		3,945,744
Retail		7.6%		10,447,296
Semiconductors		8.2%		11,276,601
Software		1.3%		1,848,040
Telecommunications		6.7%		9,310,477
Transportation		1.2%		1,637,215
Water		0.9%		1,239,686
		100.0%	$	137,931,490

149

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Emerging Markets Equity Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Austria	$	877,219	$	—	$	877,219	$	—
Brazil		6,750,994		6,750,994		—		—
Chile		1,805,549		1,805,549		—		—
China		11,491,554		763,698		10,727,856		—
Colombia		400,919		400,919		—		—
Cyprus		668,580		668,580		—		—
Hong Kong		4,802,928		—		4,802,928		—
Hungary		1,194,056		—		1,194,056		—
India		13,270,041		396,209		12,873,832		—
Indonesia		7,515,920		—		7,515,920		—
Japan		1,155,313		—		1,155,313		—
Malaysia		4,960,981		—		4,960,981		—
Mexico		6,804,312		6,804,312		—		—
Netherlands		1,030,599		1,030,599		—		—
Panama		983,400		983,400		—		—
Peru		1,664,760		1,664,760		—		—
Philippines		7,207,089		—		7,207,089		—
Poland		3,974,331		—		3,974,331		—
Portugal		1,832,996		—		1,832,996		—
Qatar		232,552		—		232,552		—
Russia		4,006,091		4,006,091		—		—
South Africa		3,818,023		54,912		3,763,111		—
South Korea		17,831,052		—		17,831,052		—
Spain		513,556		513,556		—		—
Switzerland		2,352,624		1,118,670		1,233,954		—
Taiwan		10,321,920		—		10,321,920		—
Thailand		10,464,561		1,612,470		8,852,091		—
Turkey		4,815,859		—		4,815,859		—
United Kingdom		2,231,788		—		2,231,788		—
United States		2,951,923		2,951,923		—		—
PREFERRED STOCKS		5,505,480		4,309,383		1,196,097		—
EXCHANGE TRADED FUNDS		2,315,800		2,315,800		—		—
SHORT-TERM INVESTMENTS		1,895,475		1,895,475		—		—
TOTAL INVESTMENTS	$	147,648,245	$	40,047,300	$	107,600,945	$	—

Fair Value of Level 2 investments at 12/31/12 was $109,968,879 which was a result of valuing investments using third-party vendor modeling tools. An amount of $2,460,451 was transferred from Level 1 into Level 2 at 06/30/13 as a result of fair valuing such foreign securities using third-party vendor modeling tools. Such fair values are used to reflect the impact of significant market movements between the time at which the Fund values its securities and the earlier closing of foreign markets.

An amount of $103,863 was transferred from Level 2 into Level 1 at 06/30/2013 as a result of using quoted prices in active market for such foreign securities.

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 3 fair value hierarchies during the reporting period.

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

150

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Schedule of Investments — June 30, 2013 (Unaudited)

Real Estate Securities Fund

	Number of Shares		Value†
COMMON STOCKS — 2.4%
Lodging — 1.5%
Hyatt Hotels Corp., Class A*		21,751	$	877,870
Orient-Express Hotels Ltd., Class A*		61,692		750,175
				1,628,045
Real Estate — 0.9%
Forest City Enterprises, Inc., Class A*		56,381		1,009,784
TOTAL COMMON STOCKS (Cost $2,363,230)				2,637,829
REAL ESTATE INVESTMENT TRUSTS — 95.8%
Apartments — 14.4%
Apartment Investment & Management Co., Class A		68,643		2,062,036
BRE Properties, Inc.		34,007		1,701,030
Equity Residential		82,552		4,792,969
Essex Property Trust, Inc.		10,849		1,724,123
Home Properties, Inc.		31,714		2,073,144
UDR, Inc.		137,971		3,516,881
				15,870,183
Building & Real Estate — 3.6%
Colony Financial, Inc.		14,394		286,297
National Retail Properties, Inc.		39,769		1,368,054
Realty Income Corp.		36,148		1,515,324
WP Carey, Inc.		13,050		863,518
				4,033,193
Diversified — 10.2%
American Assets Trust, Inc.		25,340		781,992
Cousins Properties, Inc.		57,298		578,710
Digital Realty Trust, Inc.		24,861		1,516,521
Duke Realty Corp		126,808		1,976,937
PS Business Parks, Inc.		7,063		509,737
Retail Properties of America, Inc. Class A		70,025		999,957
Vornado Realty Trust		59,683		4,944,736
				11,308,590
Healthcare — 11.4%
HCP, Inc.		37,197		1,690,232
Health Care REIT, Inc.		70,524		4,727,224
Healthcare Trust of America, Inc.*		71,047		797,858
Ventas, Inc.		77,505		5,383,497
				12,598,811
Hotels & Resorts — 6.3%
Hersha Hospitality Trust		132,956		749,872
Host Hotels & Resorts, Inc.		191,279		3,226,877
RLJ Lodging Trust		49,100		1,104,259
Strategic Hotels & Resorts, Inc.*		126,198		1,118,114
Sunstone Hotel Investors, Inc.*		66,963		808,913
				7,008,035
Industrial — 5.6%
First Industrial Realty Trust, Inc.		45,285		686,974
ProLogis, Inc.		146,074		5,509,911
				6,196,885

	Number of Shares		Value†
Manufactured Homes — 1.8%
Equity Lifestyle Properties, Inc.		18,032	$	1,417,135
Sun Communities, Inc.		10,790		536,910
				1,954,045
Office Property — 9.4%
Alexandria Real Estate Equities, Inc.		24,000		1,577,280
Boston Properties, Inc.		10,689		1,127,369
Corporate Office Properties Trust		40,896		1,042,848
Douglas Emmett, Inc.		72,095		1,798,770
Hudson Pacific Properties, Inc.		49,728		1,058,212
Mack-Cali Realty Corp.		38,187		935,200
SL Green Realty Corp.		31,918		2,814,848
				10,354,527
Regional Malls — 16.8%
CBL & Associates Properties, Inc.		59,500		1,274,490
General Growth Properties, Inc.		176,765		3,512,321
Glimcher Realty Trust		117,609		1,284,290
Simon Property Group, Inc.		79,345		12,530,162
				18,601,263
Storage & Warehousing — 6.9%
CubeSmart		81,314		1,299,398
Extra Space Storage, Inc.		27,957		1,172,237
Public Storage		25,453		3,902,708
Sovran Self Storage, Inc.		18,883		1,223,430
				7,597,773
Strip Centers — 9.4%
Alexander’s, Inc.		473		138,925
Cedar Realty Trust, Inc.		38,422		199,026
DDR Corp.		99,610		1,658,506
Kimco Realty Corp.		142,197		3,047,282
Ramco-Gershenson Properties Trust		52,931		822,018
Regency Centers Corp.		54,838		2,786,319
Weingarten Realty Investors		58,043		1,785,983
				10,438,059
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $98,606,263)				105,961,364
SHORT-TERM INVESTMENTS — 1.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,950,660)		1,950,660		1,950,660
TOTAL INVESTMENTS — 100.0% (Cost $102,920,153)			$	110,549,853

† See Security Valuation Note.

* Non-income producing security.

REIT — Real Estate Investment Trust.

151

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Real Estate Securities Fund

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	2,637,829	$	2,637,829	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		105,961,364		105,961,364		—		—
SHORT-TERM INVESTMENTS		1,950,660		1,950,660		—		—
TOTAL INVESTMENTS	$	110,549,853	$	110,549,853	$	—	$	—

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 these financial statements.

152

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Aggressive Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 65.7%
Penn Series Flexibly Managed Fund*		59,745	$	1,921,985
Penn Series Index 500 Fund*		276,829		3,363,475
Penn Series Large Cap Growth Fund*		190,673		1,921,986
Penn Series Large Cap Value Fund*		269,186		4,804,964
Penn Series Large Core Growth Fund*		40,142		480,496
Penn Series Large Core Value Fund*		204,815		2,402,482
Penn Series Large Growth Stock Fund*		71,931		1,441,489
Penn Series Mid Cap Growth Fund*		128,819		1,441,489
Penn Series Mid Cap Value Fund*		120,199		1,921,985
Penn Series Mid Core Value Fund*		106,148		1,441,489
Penn Series Real Estate Securities Fund*		135,066		1,921,986
Penn Series Small Cap Growth Fund*		22,979		480,496
Penn Series Small Cap Index Fund*		102,016		1,441,489
Penn Series Small Cap Value Fund*		88,084		1,921,986
Penn Series SMID Cap Growth Fund*		148,027		2,402,482
Penn Series SMID Cap Value Fund*		147,663		2,402,482
TOTAL AFFILIATED EQUITY FUNDS (Cost $21,983,323)				31,712,761
AFFILIATED FIXED INCOME FUNDS — 4.0%
Penn Series Quality Bond Fund* (Cost $1,779,914)		150,862		1,921,985
AFFILIATED INTERNATIONAL EQUITY FUNDS — 29.8%
Penn Series Developed International Index Fund*		413,034		4,324,468
Penn Series Emerging Markets Equity Fund*		310,570		3,363,475
Penn Series International Equity Fund*		314,785		6,726,949
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $11,760,506)				14,414,892
SHORT-TERM INVESTMENTS — 0.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $236,308)		236,308		236,308
TOTAL INVESTMENTS — 100.0% (Cost $35,760,051)			$	48,285,946

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	31,712,761	$	31,712,761	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		1,921,985		1,921,985		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		14,414,892		14,414,892		—		—
SHORT-TERM INVESTMENTS		236,308		236,308		—		—
TOTAL INVESTMENTS	$	48,285,946	$	48,285,946	$	—	$	—

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 these financial statements.

153

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Moderately Aggressive Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 56.0%
Penn Series Flexibly Managed Fund*		244,432	$	7,863,366
Penn Series Index 500 Fund*		970,786		11,795,049
Penn Series Large Cap Growth Fund*		585,072		5,897,524
Penn Series Large Cap Value Fund*		991,181		17,692,573
Penn Series Large Core Growth Fund*		164,231		1,965,841
Penn Series Large Core Value Fund*		670,364		7,863,365
Penn Series Large Growth Stock Fund*		294,288		5,897,524
Penn Series Mid Cap Growth Fund*		351,357		3,931,683
Penn Series Mid Cap Value Fund*		491,768		7,863,366
Penn Series Mid Core Value Fund*		434,280		5,897,524
Penn Series Real Estate Securities Fund*		414,443		5,897,524
Penn Series Small Cap Growth Fund*		94,014		1,965,842
Penn Series Small Cap Index Fund*		417,376		5,897,524
Penn Series Small Cap Value Fund*		270,281		5,897,524
Penn Series SMID Cap Growth Fund*		484,496		7,863,366
Penn Series SMID Cap Value Fund*		362,478		5,897,524
TOTAL AFFILIATED EQUITY FUNDS (Cost $72,110,624)				110,087,119
AFFILIATED FIXED INCOME FUNDS — 19.0%
Penn Series High Yield Bond Fund*		386,977		3,931,683
Penn Series Limited Maturity Bond Fund*		858,446		9,829,207
Penn Series Quality Bond Fund*		1,851,656		23,590,097
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $34,055,016)				37,350,987
AFFILIATED INTERNATIONAL EQUITY FUNDS — 25.0%
Penn Series Developed International Index Fund*		1,502,076		15,726,731
Penn Series Emerging Markets Equity Fund*		907,591		9,829,207
Penn Series International Equity Fund*		1,103,888		23,590,097
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $39,366,563)				49,146,035
TOTAL INVESTMENTS — 100.0% (Cost $145,532,203)			$	196,584,141

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	110,087,119	$	110,087,119	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		37,350,987		37,350,987		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		49,146,035		49,146,035		—		—
TOTAL INVESTMENTS	$	196,584,141	$	196,584,141	$	—	$	—

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 these financial statements.

154

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Moderate Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 44.0%
Penn Series Flexibly Managed Fund*		592,451	$	19,059,154
Penn Series Index 500 Fund*		1,307,212		15,882,628
Penn Series Large Cap Growth Fund*		945,395		9,529,577
Penn Series Large Cap Value Fund*		1,067,740		19,059,154
Penn Series Large Core Value Fund*		812,411		9,529,577
Penn Series Large Growth Stock Fund*		317,019		6,353,051
Penn Series Mid Cap Growth Fund*		283,872		3,176,526
Penn Series Mid Cap Value Fund*		595,971		9,529,577
Penn Series Mid Core Value Fund*		467,824		6,353,051
Penn Series Real Estate Securities Fund*		446,455		6,353,051
Penn Series Small Cap Growth Fund*		151,914		3,176,526
Penn Series Small Cap Index Fund*		449,614		6,353,051
Penn Series Small Cap Value Fund*		291,157		6,353,051
Penn Series SMID Cap Growth Fund*		587,158		9,529,577
Penn Series SMID Cap Value Fund*		585,715		9,529,577
TOTAL AFFILIATED EQUITY FUNDS (Cost $95,824,769)				139,767,128
AFFILIATED FIXED INCOME FUNDS — 36.0%
Penn Series High Yield Bond Fund*		1,250,601		12,706,102
Penn Series Limited Maturity Bond Fund*		3,329,110		38,118,308
Penn Series Quality Bond Fund*		4,986,696		63,530,515
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $104,561,610)				114,354,925
AFFILIATED INTERNATIONAL EQUITY FUNDS — 18.0%
Penn Series Developed International Index Fund*		1,820,359		19,059,154
Penn Series Emerging Markets Equity Fund*		879,924		9,529,577
Penn Series International Equity Fund*		1,337,797		28,588,730
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $44,887,986)				57,177,461
AFFILIATED MONEY MARKET FUND — 2.0%
Penn Series Money Market Fund (Cost $6,353,104)		6,353,104		6,353,104
SHORT-TERM INVESTMENTS — 0.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $144,996)		144,996		144,996
TOTAL INVESTMENTS — 100.0% (Cost $251,772,465)			$	317,797,614

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	139,767,130	$	139,767,130	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		114,354,923		114,354,923		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		57,177,461		57,177,461		—		—
AFFILIATED MONEY MARKET FUNDS		6,353,104		6,353,104		—		—
SHORT-TERM INVESTMENTS		144,996		144,996		—		—
TOTAL INVESTMENTS	$	317,797,614	$	317,797,614	$	—	$	—

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 these financial statements.

155

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Moderately Conservative Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 32.8%
Penn Series Flexibly Managed Fund*		230,849	$	7,426,404
Penn Series Index 500 Fund*		349,272		4,243,659
Penn Series Large Cap Growth Fund*		210,499		2,121,830
Penn Series Large Cap Value Fund*		237,740		4,243,659
Penn Series Large Core Value Fund*		271,334		3,182,744
Penn Series Large Growth Stock Fund*		52,940		1,060,915
Penn Series Mid Cap Value Fund*		132,697		2,121,829
Penn Series Mid Core Value Fund*		156,247		2,121,830
Penn Series Real Estate Securities Fund*		149,110		2,121,830
Penn Series Small Cap Index Fund*		150,165		2,121,830
Penn Series SMID Cap Growth Fund*		130,735		2,121,830
Penn Series SMID Cap Value Fund*		130,414		2,121,830
TOTAL AFFILIATED EQUITY FUNDS (Cost $23,710,684)				35,010,190
AFFILIATED FIXED INCOME FUNDS — 52.7%
Penn Series High Yield Bond Fund*		626,525		6,365,489
Penn Series Limited Maturity Bond Fund*		1,853,126		21,218,297
Penn Series Quality Bond Fund*		2,248,407		28,644,701
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $50,584,664)				56,228,487
AFFILIATED INTERNATIONAL EQUITY FUNDS — 9.9%
Penn Series Developed International Index Fund*		405,316		4,243,660
Penn Series Emerging Markets Equity Fund*		97,961		1,060,915
Penn Series International Equity Fund*		248,225		5,304,574
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $8,007,322)				10,609,149
AFFILIATED MONEY MARKET FUND — 4.0%
Penn Series Money Market Fund (Cost $4,243,695)		4,243,695		4,243,695
SHORT-TERM INVESTMENTS — 0.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $660,264)		660,264		660,264
TOTAL INVESTMENTS — 100.0% (Cost $87,206,629)			$	106,751,785

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	35,010,190	$	35,010,190	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		56,228,487		56,228,487		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		10,609,149		10,609,149		—		—
AFFILIATED MONEY MARKET FUNDS		4,243,695		4,243,695		—		—
SHORT-TERM INVESTMENTS		660,264		660,264		—		—
TOTAL INVESTMENTS	$	106,751,785	$	106,751,785	$	—	$	—

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 these financial statements.

156

Penn Series Funds, Inc.

Schedule of Investments — June 30, 2013 (Unaudited)

Conservative Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 17.8%
Penn Series Flexibly Managed Fund*		177,326	$	5,704,565
Penn Series Index 500 Fund*		117,378		1,426,141
Penn Series Large Cap Growth Fund*		141,482		1,426,141
Penn Series Large Cap Value Fund*		79,896		1,426,142
Penn Series Large Core Value Fund*		60,790		713,071
Penn Series Mid Cap Value Fund*		89,190		1,426,141
Penn Series Mid Core Value Fund*		52,509		713,071
TOTAL AFFILIATED EQUITY FUNDS (Cost $9,753,443)				12,835,272
AFFILIATED FIXED INCOME FUNDS — 67.4%
Penn Series High Yield Bond Fund*		491,289		4,991,494
Penn Series Limited Maturity Bond Fund*		1,556,923		17,826,766
Penn Series Quality Bond Fund*		2,014,956		25,670,543
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $43,512,702)				48,488,803
AFFILIATED INTERNATIONAL EQUITY FUNDS — 5.0%
Penn Series Developed International Index Fund*		204,318		2,139,212
Penn Series International Equity Fund*		66,736		1,426,141
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $2,586,760)				3,565,353
AFFILIATED MONEY MARKET FUND — 8.9%
Penn Series Money Market Fund (Cost $6,417,688)		6,417,688		6,417,688
SHORT-TERM INVESTMENTS — 0.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $676,214)		676,214		676,214
TOTAL INVESTMENTS — 100.0% (Cost $62,946,807)			$	71,983,330

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 06/30/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 06/30/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	12,835,272	$	12,835,272	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		48,488,803		48,488,803		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		3,565,353		3,565,353		—		—
AFFILIATED MONEY MARKET FUNDS		6,417,688		6,417,688		—		—
SHORT-TERM INVESTMENTS		676,214		676,214		—		—
TOTAL INVESTMENTS	$	71,983,330	$	71,983,330	$	—	$	—

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 these financial statements.

157

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2013

	Money Market Fund		Limited Maturity Bond Fund		Quality Bond Fund		High Yield Bond Fund
ASSETS
Investments at value	$	132,389,559	$	190,149,696	$	566,295,982	$	182,988,066
Foreign currency, at value		—		—		—		10,895
Cash		—		—		—		331,317
Interest, dividends and reclaims receivable		61,630		613,968		2,659,341		3,154,414
Receivable for investment securities sold		—		—		—		1,325,600
Receivable from investment adviser		15,762		—		—		—
Receivable for capital stock sold		2,011		192,747		4,947,606		330,441
Net unrealized appreciation of forward foreign currency contracts		—		—		—		227,535
Other assets		2,707		4,065		11,348		3,640
Total Assets		132,471,669		190,960,476		573,914,277		188,371,908
LIABILITIES
Payable for investment securities purchased		—		—		44,506,209		5,934,016
Payable for capital stock redeemed		2,224,094		312,572		734,184		215,479
Payable to investment adviser		—		47,233		135,450		76,910
Payable to The Penn Mutual Life Insurance Co.		27,246		72,249		204,112		71,607
Net unrealized depreciation of forward foreign currency contracts		—		—		—		29,792
Other liabilities		31,106		19,240		35,445		25,184
Total Liabilities		2,282,446		451,294		45,615,400		6,352,988
NET ASSETS	$	130,189,223	$	190,509,182	$	528,298,877	$	182,018,920
Investments at cost	$	132,389,559	$	189,171,566	$	556,811,392	$	180,718,815
Foreign currency at cost		—		—		—		11,246
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	130,189,223	$	188,788,969	$	513,408,688	$	176,869,554
Undistributed net investment income (loss)		—		582,756		4,693,219		5,339,388
Accumulated net realized gain (loss) on investment transactions and foreign exchange		—		159,327		712,380		(2,659,254	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		—		978,130		9,484,590		2,469,232
NET ASSETS	$	130,189,223	$	190,509,182	$	528,298,877	$	182,018,920
Shares outstanding, $0.10 par value, 500 million shares authorized		130,173,297
Shares outstanding, $0.10 par value, 250 million shares authorized						41,463,183		17,906,767
Shares outstanding, $0.0001 par value, 250 million shares authorized				16,634,604
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	1.00	$	11.45	$	12.74	$	10.16

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

158

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2013

	Flexibly Managed Fund		Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
ASSETS
Investments of affiliated issuers at value	$	—	$	75,399,038		$	—		$	—
Investments of unaffiliated issuers at value		2,387,844,220		241,334			223,850,825			28,661,543
Foreign currency, at value		18,327		—			—			—
Cash		132,054		—			—			—
Interest, dividends and reclaims receivable		5,054,459		21			89,236			23,441
Receivable for investment securities sold		23,188,016		1,148,384			13,994,549			316,114
Receivable for capital stock sold		311,621		—			1,892			20,950,069
Other assets		42,148		1,516			4,406			647
Total Assets		2,416,590,845		76,790,293			237,940,908			49,951,814
LIABILITIES
Cash overdraft		—		—			—			98,535
Call options written, at value		11,201,762		—			—			—
Payable for investment securities purchased		48,696,724		1,109,723			183,110			—
Payable for capital stock redeemed		1,346,720		44,253			14,469,330			62,839
Payable to investment adviser		1,157,243		—			121,556			13,432
Payable to The Penn Mutual Life Insurance Co.		866,206		24,362			88,647			11,220
Other liabilities		78,715		4,121			23,468			11,206
Total Liabilities		63,347,370		1,182,459			14,886,111			197,232
NET ASSETS	$	2,353,243,475	$	75,607,834		$	223,054,797		$	49,754,582
Investments of affiliated issuers at cost	$	—	$	53,669,134		$	—		$	—
Investments of unaffiliated issuers at cost		2,009,319,733		241,334			161,785,288			28,039,825
Foreign currency at cost		18,974		—			—			—
Call options written, premiums received		6,845,909		—			—			—
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	1,902,360,309	$	57,149,258		$	153,073,904		$	45,212,239
Undistributed net investment income (loss)		11,139,982		(75,477	)		(159,269	)		32,091
Accumulated net realized gain (loss) on investment transactions and foreign exchange		65,453,641		(3,195,850	)		8,074,723			3,888,434
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		374,289,543		21,729,903			62,065,439			621,818
NET ASSETS	$	2,353,243,475	$	75,607,834		$	223,054,797		$	49,754,582
Shares outstanding, $0.10 par value, 250 million shares authorized		73,153,370					11,130,954
Shares outstanding, $0.0001 par value, 250 million shares authorized				5,627,465						4,936,830
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	32.17	$	13.44		$	20.04		$	10.08

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

159

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2013

	Large Core Growth Fund			Large Cap Value Fund		Large Core Value Fund			Index 500 Fund
ASSETS
Investments at value	$	106,926,066		$	184,020,739	$	180,388,579		$	356,577,361
Cash		—			—		—			190,851
Interest, dividends and reclaims receivable		42,620			308,568		300,056			434,364
Receivable for investment securities sold		8,924,466			—		2,375,327			4,724,590
Receivable for capital stock sold		463			6,741,569		313,146			315,667
Other assets		2,234			3,497		3,364			14,886
Total Assets		115,895,849			191,074,373		183,380,472			362,257,719
LIABILITIES
Payable for investment securities purchased		1,828,019			388,736		1,692,851			219,767
Payable for capital stock redeemed		5,886,480			187,595		1,725,087			10,126,781
Future variation margin payable		—			—		—			13,505
Payable to investment adviser		56,613			91,387		90,144			20,904
Payable to The Penn Mutual Life Insurance Co.		43,105			68,863		67,542			134,640
Other liabilities		16,343			12,000		17,544			26,805
Total Liabilities		7,830,560			748,581		3,593,168			10,542,402
NET ASSETS	$	108,065,289		$	190,325,792	$	179,787,304		$	351,715,317
Investments at cost	$	81,712,972		$	178,154,595	$	136,648,664		$	264,020,326
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	95,577,878		$	177,452,993	$	156,433,918		$	276,589,803
Undistributed net investment income (loss)		69,215			1,148,521		1,202,914			3,004,170
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(12,794,898	)		5,858,134		(21,589,443	)		(20,371,830	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		25,213,094			5,866,144		43,739,915			92,493,174
NET ASSETS	$	108,065,289		$	190,325,792	$	179,787,304		$	351,715,317
Shares outstanding, $0.10 par value, 250 million shares authorized					10,664,995
Shares outstanding, $0.0001 par value, 250 million shares authorized		9,024,879					15,325,186			28,936,897
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	11.97		$	17.85	$	11.73		$	12.15

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

160

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2013

	Mid Cap Growth Fund			Mid Cap Value Fund		Mid Core Value Fund		SMID Cap Growth Fund
ASSETS
Investments at value	$	103,444,790		$	146,904,412	$	64,815,098	$	50,262,934
Interest, dividends and reclaims receivable		22,890			311,923		132,003		4,023
Receivable for investment securities sold		7,689,145			—		2,238,540		945,337
Receivable for capital stock sold		244,448			37,412		230,951		2,873,700
Net unrealized appreciation of forward foreign currency contracts		—			—		4,858		—
Other assets		2,120			2,521		1,269		837
Total Assets		111,403,393			147,256,268		67,422,719		54,086,831
LIABILITIES
Cash overdraft		14,832			—		—		—
Payable for investment securities purchased		1,793,125			238,003		2,273,269		1,249,846
Payable for capital stock redeemed		5,420,728			907,173		483,080		686,505
Payable to investment adviser		63,079			66,074		38,365		29,568
Payable to The Penn Mutual Life Insurance Co.		51,802			54,084		24,015		17,998
Net unrealized depreciation of forward foreign currency contracts		—			—		457		—
Other liabilities		16,845			13,594		20,316		9,677
Total Liabilities		7,360,411			1,278,928		2,839,502		1,993,594
NET ASSETS	$	104,042,982		$	145,977,340	$	64,583,217	$	52,093,237
Investments at cost	$	87,845,567		$	123,163,841	$	63,023,217	$	40,658,578
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	82,084,546		$	116,291,068	$	49,435,907	$	40,323,279
Undistributed net investment income (loss)		(382,430	)		1,073,769		256,948		(201,881	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		6,741,643			4,871,932		13,094,176		2,367,483
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		15,599,223			23,740,571		1,796,186		9,604,356
NET ASSETS	$	104,042,982		$	145,977,340	$	64,583,217	$	52,093,237
Shares outstanding, $0.0001 par value, 250 million shares authorized		9,299,439			9,127,273		4,756,136		3,210,214
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	11.19		$	15.99	$	13.58	$	16.23

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

161

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2013

	SMID Cap Value Fund		Small Cap Growth Fund			Small Cap Value Fund		Small Cap Index Fund
ASSETS
Investments at value	$	53,002,041	$	75,464,919		$	205,111,775	$	52,878,121
Interest, dividends and reclaims receivable		51,201		49,608			454,639		68,352
Receivable for investment securities sold		113,270		1,015,112			1,242,840		4,944,853
Receivable for capital stock sold		54,890		264,755			448,390		335,684
Other assets		906		1,577			3,681		865
Total Assets		53,222,308		76,795,971			207,261,325		58,227,875
LIABILITIES
Payable for investment securities purchased		291,495		521,451			2,639,277		4,574,029
Payable for capital stock redeemed		639,515		18,003			455,900		520,556
Future variation margin payable		—		—			—		1,980
Payable to investment adviser		37,389		47,657			142,549		6,379
Payable to The Penn Mutual Life Insurance Co.		19,845		29,227			75,075		19,295
Other liabilities		6,420		17,772			19,951		18,866
Total Liabilities		994,664		634,110			3,332,752		5,141,105
NET ASSETS	$	52,227,644	$	76,161,861		$	203,928,573	$	53,086,770
Investments at cost	$	42,391,052	$	73,069,924		$	163,852,185	$	41,671,530
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	39,134,801	$	68,744,075		$	149,161,732	$	40,113,252
Undistributed net investment income (loss)		106,770		(282,461	)		484,272		179,959
Accumulated net realized gain (loss) on investment transactions and foreign exchange		2,375,084		5,305,252			13,022,979		1,591,822
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		10,610,989		2,394,995			41,259,590		11,201,737
NET ASSETS	$	52,227,644	$	76,161,861		$	203,928,573	$	53,086,770
Shares outstanding, $0.10 par value, 250 million shares authorized				3,641,832			9,347,290
Shares outstanding, $0.0001 par value, 250 million shares authorized		3,210,159							3,755,955
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	16.27	$	20.91		$	21.82	$	14.13

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

162

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2013

	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
ASSETS
Investments at value	$	96,808,575		$	347,817,530		$	147,648,245		$	110,549,853
Foreign currency, at value		1,213,752			347,318			342,474			—
Interest, dividends and reclaims receivable		322,209			1,463,897			607,683			269,664
Receivable for investment securities sold		—			284,527			1,201,565			1,316,488
Receivable from investment adviser		697			—			—			—
Receivable for capital stock sold		321,236			3,281,843			1,591,308			473,162
Futures receivable		200,467			—			—			—
Net unrealized appreciation of forward foreign currency contracts		—			—			10,542			—
Other assets		102,662			7,234			3,012			2,077
Total Assets		98,969,598			353,202,349			151,404,829			112,611,244
LIABILITIES
Payable for investment securities purchased		6,279			361,135			1,389,749			603,272
Payable for capital stock redeemed		130,160			387,437			139,115			49,241
Payable to investment adviser		—			251,130			129,580			64,049
Payable to The Penn Mutual Life Insurance Co.		37,933			138,489			58,898			43,306
Deferred Indian capital gains tax		—			—			197,481			—
Other liabilities		57,454			55,755			15,575			12,668
Total Liabilities		231,826			1,193,946			1,930,398			772,536
NET ASSETS	$	98,737,772		$	352,008,403		$	149,474,431		$	111,838,708
Investments at cost	$	87,544,217		$	282,723,542		$	133,349,378		$	102,920,153
Foreign currency at cost		1,215,546			344,344			349,189			—
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	89,032,090		$	315,301,495		$	140,214,069		$	99,479,896
Undistributed net investment income (loss)		1,581,152			(2,885,535	)		230,842			1,189,395
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(1,061,854	)		(25,476,857	)		(5,068,113	)		3,539,717
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		9,186,384			65,069,300			14,097,633			7,629,700
NET ASSETS	$	98,737,772		$	352,008,403		$	149,474,431		$	111,838,708
Shares outstanding, $0.10 par value, 250 million shares authorized					16,473,995
Shares outstanding, $0.0001 par value, 250 million shares authorized		9,428,049						13,799,673			7,862,119
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	10.47		$	21.37		$	10.83		$	14.23

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

163

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2013

	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	48,049,638		$	196,584,141		$	317,652,618		$	106,091,521
Investments of unaffiliated issuers at value		236,308			—			144,996			660,264
Interest, dividends and reclaims receivable		15			64			65			42
Receivable for investment securities sold		3,096,464			11,461,988			20,166,459			4,269,943
Receivable for capital stock sold		—			—			—			52,328
Other assets		837			3,648			6,000			2,102
Total Assets		51,383,262			208,049,841			337,970,138			111,076,200
LIABILITIES
Cash overdraft		—			133,868			—			—
Payable for investment securities purchased		3,142,783			10,509,131			19,381,470			4,320,209
Payable for capital stock redeemed		12,744			99,314			124,239			67
Payable to investment adviser		3,742			16,374			26,417			8,878
Payable to The Penn Mutual Life Insurance Co.		17,933			75,114			121,124			40,585
Other liabilities		2,747			3,889			5,877			3,908
Total Liabilities		3,179,949			10,837,690			19,659,127			4,373,647
NET ASSETS	$	48,203,313		$	197,212,151		$	318,311,011		$	106,702,553
Investments of affiliated issuers at cost	$	35,523,743		$	145,532,203		$	251,627,469		$	86,546,365
Investments of unaffiliated issuers at cost		236,308			—			144,996			660,264
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	35,651,452		$	146,165,424		$	249,879,054		$	86,991,435
Undistributed net investment income (loss)		(75,756	)		(301,899	)		(483,366	)		(164,857	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		101,722			296,688			2,890,173			330,821
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		12,525,895			51,051,938			66,025,150			19,545,154
NET ASSETS	$	48,203,313		$	197,212,151		$	318,311,011		$	106,702,553
Shares outstanding, $0.0001 par value, 250 million shares authorized		3,855,194			14,850,711			25,318,969			8,710,227
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	12.50		$	13.28		$	12.57		$	12.25

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

164

Penn Series Funds, Inc.

Statements of Assets and Liabilities (Unaudited)

June 30, 2013

	Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	71,307,116
Investments of unaffiliated issuers at value		676,214
Interest, dividends and reclaims receivable		52
Receivable for investment securities sold		3,525,063
Other assets		1,468
Total Assets		75,509,913
LIABILITIES
Payable for investment securities purchased		3,481,279
Payable for capital stock redeemed		16,738
Payable to investment adviser		6,098
Payable to The Penn Mutual Life Insurance Co.		26,960
Other liabilities		3,781
Total Liabilities		3,534,856
NET ASSETS	$	71,975,057
Investments of affiliated issuers at cost	$	62,270,593
Investments of unaffiliated issuers at cost		676,214
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	62,310,894
Undistributed net investment income (loss)		(116,167	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		743,807
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		9,036,523
NET ASSETS	$	71,975,057
Shares outstanding, $0.0001 par value, 250 million shares authorized		6,069,251
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	11.86

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

165

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2013

	Money Market Fund			Limited Maturity Bond Fund			Quality Bond Fund			High Yield Bond Fund
INVESTMENT INCOME:
Dividends	$	997		$	680		$	3,644		$	53,295
Interest		127,788			1,129,323			6,220,475			6,221,011
Total Investment Income		128,785			1,130,003			6,224,119			6,274,306
EXPENSES
Investment advisory fees		122,456			287,988			845,543			465,640
Administration fees		97,662			143,994			410,375			139,692
Accounting fees		42,472			57,916			121,746			56,482
Director fees and expenses		2,707			3,902			11,120			3,646
Custodian fees and expenses		16,604			10,235			28,902			23,296
Pricing fees		6,979			6,889			11,520			34,154
Professional fees		9,355			14,048			39,948			13,452
Printing fees		6,129			9,015			25,599			8,434
Other expenses		12,510			13,260			36,147			11,508
Total Expenses		316,874			547,247			1,530,900			756,304
Less: Waivers and reimbursement from advisor		122,456			—			—			—
Less: Waivers and reimbursement from administrator		72,139			—			—			—
Net Expenses		122,279			547,247			1,530,900			756,304
Net Investment Income (Loss)		6,506			582,756			4,693,219			5,518,002
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		—			159,327			1,003,631			4,037,342
Net realized foreign currency exchange gain (loss)		—			—			—			(101,861	)
Change in net unrealized appreciation (depreciation) of investments and foreign currency		—			(1,381,028	)		(22,274,365	)		(6,374,871	)
Net Gain (Loss) on Investment Securities and Foreign Currency		—			(1,221,701	)		(21,270,734	)		(2,439,390	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	6,506		$	(638,945	)	$	(16,577,515	)	$	3,078,612
	Flexibly Managed Fund			Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
INVESTMENT INCOME:
Dividends	$	12,992,777		$	32		$	882,403		$	170,628
Interest		7,308,737			—			—			53
Foreign tax withheld		(31,426	)		—			(14,417	)		(3,200	)
Total Investment Income		20,270,088			32			867,986			167,481
EXPENSES
Investment advisory fees		6,628,781			—			708,498			82,393
Administration fees		1,657,195			56,670			170,926			22,471
Accounting fees		290,384			5,951			66,893			13,637
Director fees and expenses		41,917			1,473			4,361			600
Custodian fees and expenses		132,306			3,820			24,474			6,793
Pricing fees		22,595			1,859			12,070			3,513
Professional fees		152,363			5,159			15,607			1,892
Printing fees		96,017			3,339			9,900			1,276
Other expenses		124,155			5,093			13,604			2,815
Total Expenses		9,145,713			83,364			1,026,333			135,390
Less: Waivers and reimbursement from administrator		—			7,855			—			—
Net Expenses		9,145,713			75,509			1,026,333			135,390
Net Investment Income (Loss)		11,124,375			(75,477	)		(158,347	)		32,091
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		71,028,480			866,097			21,412,640			4,363,147
Net realized gain (loss) on options		(134,436	)		—			—			—
Net realized foreign currency exchange gain (loss)		8,868			—			(5,990	)		927
Change in net unrealized appreciation (depreciation) of investments and foreign currency		125,435,887			4,011,357			2,181,046			(2,837,647	)
Net Gain (Loss) on Investment Securities and Foreign Currency		196,338,799			4,877,454			23,587,696			1,526,427
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	207,463,174		$	4,801,977		$	23,429,349		$	1,558,518

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

166

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2013

	Large Core Growth Fund			Large Cap Value Fund			Large Core Value Fund			Index 500 Fund
INVESTMENT INCOME:
Dividends	$	582,976		$	1,954,457		$	1,992,549		$	3,581,190
Interest		—			23			—			192
Foreign tax withheld		(18,118	)		(26,369	)		(40,595	)		(1,090	)
Total Investment Income		564,858			1,928,111			1,951,954			3,580,292
EXPENSES
Investment advisory fees		337,095			536,375			518,459			120,780
Administration fees		84,274			134,094			129,615			258,814
Accounting fees		38,009			54,616			53,123			91,434
Director fees and expenses		2,189			3,464			3,296			6,559
Custodian fees and expenses		11,451			15,630			11,940			22,554
Pricing fees		2,994			4,446			3,133			6,797
Professional fees		7,646			11,935			11,780			23,221
Printing fees		4,905			7,784			7,479			14,937
Other expenses		7,080			11,246			10,215			31,026
Total Expenses		495,643			779,590			749,040			576,122
Net Expenses		495,643			779,590			749,040			576,122
Net Investment Income (Loss)		69,215			1,148,521			1,202,914			3,004,170
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		9,733,318			29,490,204			10,654,466			788,322
Net realized gain (loss) on futures contracts		—			—			—			1,178,036
Change in net unrealized appreciation (depreciation) of investments and foreign currency		1,731,818			(7,583,536	)		9,941,001			38,097,247
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			(56,907	)
Net Gain (Loss) on Investment Securities and Foreign Currency		11,465,136			21,906,668			20,595,467			40,006,698
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	11,534,351		$	23,055,189		$	21,798,381		$	43,010,868
	Mid Cap Growth Fund			Mid Cap Value Fund			Mid Core Value Fund			SMID Cap Growth Fund
INVESTMENT INCOME:
Dividends	$	153,464		$	1,633,223		$	573,917		$	39,100
Interest		—			—			9			—
Foreign tax withheld		—			(2,565	)		(1,270	)		—
Total Investment Income		153,464			1,630,658			572,656			39,100
EXPENSES
Investment advisory fees		375,923			382,039			224,907			172,055
Administration fees		80,555			104,192			46,856			34,411
Accounting fees		36,769			44,649			21,866			16,059
Director fees and expenses		2,098			2,644			1,206			859
Custodian fees and expenses		11,057			8,617			24,857			11,165
Pricing fees		3,886			3,524			3,857			3,246
Professional fees		7,141			9,827			4,095			3,167
Printing fees		4,671			6,123			2,664			1,975
Other expenses		7,044			7,585			4,550			3,001
Recaptured administration fees		6,750			—			—			—
Total Expenses		535,894			569,200			334,858			245,938
Less: Waivers and reimbursement from advisor		—			—			—			4,957
Net Expenses		535,894			569,200			334,858			240,981
Net Investment Income (Loss)		(382,430	)		1,061,458			237,798			(201,881	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		6,875,768			4,871,932			13,247,764			2,443,672
Net realized foreign currency exchange gain (loss)		—			—			69,712			—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		6,063,222			16,191,192			(5,342,084	)		5,191,445
Net Gain (Loss) on Investment Securities and Foreign Currency		12,938,990			21,063,124			7,975,392			7,635,117
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	12,556,560		$	22,124,582		$	8,213,190		$	7,433,236

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

167

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2013

	SMID Cap Value Fund			Small Cap Growth Fund			Small Cap Value Fund			Small Cap Index Fund
INVESTMENT INCOME:
Dividends	$	396,147		$	148,543		$	1,589,374		$	312,552
Interest		—			1			—			69
Foreign tax withheld		—			(1,338	)		(1,692	)		(360	)
Total Investment Income		396,147			147,206			1,587,682			312,261
EXPENSES
Investment advisory fees		241,105			295,334			823,127			73,355
Administration fees		38,069			59,301			145,258			36,677
Accounting fees		17,766			27,674			58,337			17,116
Director fees and expenses		951			1,590			3,695			907
Custodian fees and expenses		5,909			27,483			26,217			14,555
Pricing fees		3,359			3,853			5,023			16,726
Professional fees		3,491			5,458			13,151			3,323
Printing fees		2,187			3,524			8,357			2,097
Other expenses		3,304			5,450			11,415			6,580
Recaptured advisory fees		—			—			8,830			—
Total Expenses		316,141			429,667			1,003,410			171,336
Less: Waivers and reimbursement from advisor		26,764			—			—			36,792
Net Expenses		289,377			429,667			1,103,410			134,544
Net Investment Income (Loss)		106,770			(282,461	)		484,272			177,717
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		2,586,774			9,829,894			13,777,925			1,610,128
Net realized gain (loss) on futures contracts		—			—			—			282,151
Change in net unrealized appreciation (depreciation) of investments and foreign currency		5,039,234			(2,738,052	)		13,687,597			4,854,538
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			(46,101	)
Net Gain (Loss) on Investment Securities and Foreign Currency		7,626,008			7,091,842			27,465,522			6,700,716
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	7,732,778		$	6,809,381		$	27,949,794		$	6,878,433
	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
INVESTMENT INCOME:
Dividends	$	2,237,135		$	5,844,211		$	2,120,098		$	1,731,923
Interest		3,365			88			—			—
Foreign tax withheld		(189,086	)		(320,188	)		(236,080	)		—
Total Investment Income		2,051,414			5,524,111			1,884,018			1,731,923
EXPENSES
Investment advisory fees		145,593			1,545,206			915,464			383,418
Administration fees		72,797			272,683			116,373			82,161
Accounting fees		38,725			118,991			56,467			37,302
Director fees and expenses		1,860			7,173			3,081			2,053
Custodian fees and expenses		37,804			96,518			179,323			15,441
Pricing fees		98,092			16,531			25,243			3,358
Professional fees		6,969			28,427			19,101			7,500
Printing fees		4,377			16,393			7,104			4,712
Other expenses		28,104			22,474			9,623			6,583
Total Expenses		434,321			2,124,396			1,331,779			542,528
Less: Waivers and reimbursement from advisor		147,976			—			28,791			—
Net Expenses		286,345			2,124,396			1,302,988			542,528
Net Investment Income (Loss)		1,765,069			3,399,715			581,030			1,189,395
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		(292,486	)		16,534,318			3,922,378			4,266,652
Net realized gain (loss) on futures contracts		99,976			—			—			—
Net realized foreign currency exchange gain (loss)		(27,230	)		(316,605	)		(2,739	)		—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		1,331,664			(20,873,872	)		(14,158,711	)		424,001
Change in net unrealized appreciation (depreciation) of futures contracts		(114,454	)		—			—			—
Net Gain (Loss) on Investment Securities and Foreign Currency		997,470			(4,656,159	)		(10,239,072	)		4,690,653
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,762,539		$	(1,256,444	)	$	(9,658,042	)	$	5,880,048

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

168

Penn Series Funds, Inc.

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2013

	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
INVESTMENT INCOME:
Dividends	$	25		$	32		$	409		$	265
Interest		1			69			—			—
Total Investment Income		26			101			409			265
EXPENSES
Investment advisory fees		22,959			97,227			156,256			51,924
Administration fees		34,439			145,841			234,384			77,886
Accounting fees		5,951			9,723			15,626			5,951
Director fees and expenses		872			3,746			6,010			1,983
Custodian fees and expenses		2,342			9,767			15,672			5,235
Pricing fees		1,979			2,008			2,011			1,980
Professional fees		3,207			13,652			21,713			6,922
Printing fees		2,029			8,671			13,850			4,487
Other expenses		3,033			11,365			18,253			6,936
Recaptured advisory fees		—			—			—			1,818
Total Expenses		76,811			302,000			483,775			165,122
Less: Waivers and reimbursement from advisor		1,029			—			—			—
Net Expenses		75,782			302,000			483,775			165,122
Net Investment Loss		(75,756	)		(301,899	)		(483,366	)		(164,857	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		457,940			2,456,247			4,579,759			1,077,271
Change in net unrealized appreciation (depreciation) of investments and foreign currency		3,035,122			10,545,967			10,596,715			2,188,684
Net Gain (Loss) on Investment Securities and Foreign Currency		3,493,062			13,002,214			15,176,474			3,265,955
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	3,417,306		$	12,700,315		$	14,693,108		$	3,101,098
	Conservative Allocation Fund
INVESTMENT INCOME:
Dividends	$	392
Interest		—
Total Investment Income		392
EXPENSES
Investment advisory fees		35,319
Administration fees		52,978
Accounting fees		5,951
Director fees and expenses		1,393
Custodian fees and expenses		3,575
Pricing fees		1,946
Professional fees		4,918
Printing fees		3,179
Other expenses		5,193
Recaptured advisory fees		2,107
Total Expenses		116,559
Net Expenses		116,559
Net Investment Loss		(116,167	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		1,189,819
Change in net unrealized appreciation (depreciation) of investments and foreign currency		(379,984	)
Net Gain (Loss) on Investment Securities and Foreign Currency		809,835
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	693,668

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

169

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Money Market Fund						Limited Maturity Bond Fund
	Six Months Ended 6/30/13			Year Ended 12/31/12			Six Months Ended 6/30/13			Year Ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	6,506		$	14,219		$	582,756		$	1,514,652
Net realized gains (loss) from investment transactions		—			—			159,327			448,630
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		—			—			(1,381,028	)		(793,227	)
Net Increase (Decrease) in Net Assets Resulting from Operations		6,506			14,219			(638,945	)		1,170,055
Distributions from:
Net investment income		(6,506	)		(14,219	)		—			—
Total Distributions		(6,506	)		(14,219	)		—			—
Capital Share Transactions (1):
Shares issued		35,138,957			67,395,153			22,544,524			59,463,883
Shares issued in lieu of cash distributions		6,506			14,221			—			—
Shares redeemed		(46,681,104	)		(79,897,815	)		(33,781,853	)		(32,538,080	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(11,535,641	)		(12,488,441	)		(11,237,329	)		26,925,803
Total Increase (Decrease)		(11,535,641	)		(12,488,441	)		(11,876,274	)		28,095,858
Net Assets:
Beginning of period		141,724,864			154,213,305			202,385,456			174,289,598
End of Period	$	130,189,223		$	141,724,864		$	190,509,182		$	202,385,456
Undistributed net investment income (loss)	$	—		$	—		$	582,756		$	—
(1) Shares Issued and Redeemed:
Shares issued		35,138,956			67,395,153			1,962,672			5,185,945
Shares issued in lieu of cash distributions		6,507			14,220			—			—
Shares redeemed		(46,681,104	)		(79,897,815	)		(2,940,968	)		(2,837,332	)
		(11,535,641	)		(12,488,442	)		(978,296	)		2,348,613
	Quality Bond Fund						High Yield Bond Fund
	Six Months Ended 6/30/13			Year Ended 12/31/12			Six Months Ended 6/30/13			Year Ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	4,693,219		$	10,780,160		$	5,518,002		$	10,524,826
Net realized gains (loss) from investment transactions		1,003,631			7,891,403			4,037,342			1,979,645
Net realized foreign exchange gain (loss)		—			—			(101,861	)		(59,891	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(22,274,365	)		(2,249,948	)		(6,374,871	)		9,169,277
Net Increase (Decrease) in Net Assets Resulting from Operations		(16,577,515	)		16,421,615			3,078,612			21,613,857
Capital Share Transactions (1):
Shares issued		52,205,023			127,855,036			16,280,065			38,921,761
Shares issued in lieu of cash distributions		—			—			—			—
Shares redeemed		(75,728,158	)		(53,483,062	)		(17,059,983	)		(22,105,695	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(23,523,135	)		74,371,974			(779,918	)		16,816,066
Total Increase (Decrease)		(40,100,650	)		90,793,589			2,298,694			38,429,923
Net Assets:
Beginning of period		568,399,527			477,605,938			179,720,226			141,290,303
End of Period	$	528,298,877		$	568,399,527		$	182,018,920		$	179,720,226
Undistributed net investment income (loss)	$	4,693,219		$	—		$	5,339,388		$	(407,403	)
(1) Shares Issued and Redeemed:
Shares issued		4,001,455			9,864,734			1,583,773			4,130,067
Shares redeemed		(5,799,869	)		(4,120,860	)		(1,659,796	)		(2,341,547	)
		(1,798,414	)		5,743,874			(76,023	)		1,788,520

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

170

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Flexibly Managed Fund						Balanced Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	11,124,375		$	29,514,838		$	(75,477	)	$	(136,275	)
Net realized gains (loss) from investment transactions		71,028,480			119,656,433			866,097			489,045
Net realized gains (loss) on written options		(134,436	)		3,124,180			—			—
Net realized foreign exchange gain (loss)		8,868			176,998			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		125,427,150			99,438,455			4,011,357			6,556,094
Net change in unrealized appreciation (depreciation) of written options		8,737			(2,635,101	)		—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		207,463,174			249,275,803			4,801,977			6,908,864
Capital Share Transactions (1):
Shares issued		170,535,308			186,656,248			4,651,421			7,830,866
Shares redeemed		(35,166,844	)		(80,774,683	)		(5,446,563	)		(8,480,465	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		135,368,464			105,881,565			(795,142	)		(649,599	)
Total Increase (Decrease)		342,831,638			355,157,368			4,006,835			6,259,265
Net Assets:
Beginning of period		2,010,411,837			1,655,254,469			71,600,999			65,341,734
End of Period	$	2,353,243,475		$	2,010,411,837		$	75,607,834		$	71,600,999
Undistributed net investment income (loss)	$	11,139,982		$	15,607		$	(75,477	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		5,456,947			6,711,343			352,433			640,305
Shares redeemed		(1,117,556	)		(2,900,659	)		(408,053	)		(689,427	)
		4,339,391			3,810,684			(55,620	)		(49,122	)
	Large Growth Stock Fund						Large Cap Growth Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(158,347	)	$	59,893		$	32,091		$	20,386
Net realized gains (loss) from investment transactions		21,412,640			9,896,129			4,363,147			2,817,106
Net realized foreign exchange gain (loss)		(5,990	)		224			927			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		2,181,046			23,402,286			(2,837,647	)		1,054,632
Net change in unrealized appreciation (depreciation) of written options		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		23,429,349			33,358,532			1,558,518			3,892,124
Capital Share Transactions (1):
Shares issued		13,120,300			27,175,685			22,494,371			5,177,817
Shares redeemed		(24,493,517	)		(26,227,584	)		(4,049,087	)		(16,784,503	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(11,373,217	)		948,101			18,445,284			(11,606,686	)
Total Increase (Decrease)		12,056,132			34,306,633			20,003,802			(7,714,562	)
Net Assets:
Beginning of period		210,998,665			176,692,032			29,750,780			37,465,342
End of Period	$	223,054,797		$	210,998,665		$	49,754,582		$	29,750,780
Undistributed net investment income (loss)	$	(159,269	)	$	(922	)	$	32,091		$	—
(1) Shares Issued and Redeemed:
Shares issued		677,428			1,555,229			2,231,977			543,518
Shares redeemed		(1,236,508	)		(1,487,354	)		(403,185	)		(1,751,342	)
		(559,080	)		67,875			1,828,792			(1,207,824	)

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

171

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Large Core Growth Fund						Large Cap Value Fund
	For the Six Months  Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	69,215		$	181,137		$	1,148,521		$	2,226,798
Net realized gains (loss) from investment transactions		9,733,318			10,011,947			29,490,204			4,136,843
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		1,731,818			5,944,921			(7,583,536	)		14,216,737
Net Increase (Decrease) in Net Assets Resulting from Operations		11,534,351			16,138,005			23,055,189			20,580,378
Capital Share Transactions (1):
Shares issued		2,903,976			5,520,091			13,711,435			14,197,878
Shares redeemed		(12,425,608	)		(16,002,619	)		(13,396,041	)		(33,879,116	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(9,521,632	)		(10,482,528	)		315,394			(19,681,238	)
Total Increase (Decrease)		2,012,719			5,655,477			23,370,583			899,140
Net Assets:
Beginning of period		106,052,570			100,397,093			166,955,209			166,056,069
End of Period	$	108,065,289		$	106,052,570		$	190,325,792		$	166,955,209
Undistributed net investment income (loss)	$	69,215		$	—		$	1,148,521		$	(37,914	)
(1) Shares Issued and Redeemed:
Shares issued		248,867			521,680			780,614			951,186
Shares redeemed		(1,049,337	)		(1,506,615	)		(777,086	)		(2,294,165	)
		(800,470	)		(984,935	)		3,528			(1,342,979	)
	Large Core Value Fund						Index 500 Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,202,914		$	2,524,594		$	3,004,170		$	5,654,080
Net realized gains (loss) from investment transactions		10,654,466			6,610,428			788,322			1,507,044
Net realized gains (loss) on futures contracts		—			—			1,178,036			803,450
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		9,941,001			12,915,375			38,040,340			33,752,398
Net Increase (Decrease) in Net Assets Resulting from Operations		21,798,381			22,050,397			43,010,868			41,716,972
Capital Share Transactions (1):
Shares issued		10,500,536			11,302,178			25,058,049			45,964,219
Shares redeemed		(11,100,938	)		(17,909,949	)		(28,500,025	)		(42,543,806	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(600,402	)		(6,607,771	)		(3,441,976	)		3,420,413
Total Increase (Decrease)		21,197,979			15,442,626			39,568,892			45,137,385
Net Assets:
Beginning of period		158,589,325			143,146,699			312,146,425			267,009,040
End of Period	$	179,787,304		$	158,589,325		$	351,715,317		$	312,146,425
Undistributed net investment income (loss)	$	1,202,914		$	—		$	3,004,170		$	3,225
(1) Shares Issued and Redeemed:
Shares issued		919,779			1,147,547			2,134,706			4,463,705
Shares redeemed		(975,280	)		(1,821,615	)		(2,382,927	)		(4,137,233	)
		(55,501	)		(674,068	)		(248,221	)		326,472

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

172

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Mid Cap Growth Fund						Mid Cap Value Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(382,430	)	$	(129,521	)	$	1,061,458		$	1,599,526
Net realized gains (loss) from investment transactions		6,875,768			5,565,293			4,871,932			6,991,823
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		6,063,222			704,370			16,191,192			6,227,947
Net Increase (Decrease) in Net Assets Resulting from Operations		12,556,560			6,140,142			22,124,582			14,819,296
Capital Share Transactions (1):
Shares issued		4,261,938			13,356,693			8,064,765			24,175,248
Shares redeemed		(14,068,045	)		(17,287,396	)		(8,862,798	)		(11,391,712	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(9,806,107	)		(3,930,703	)		(798,033	)		12,783,536
Total Increase (Decrease)		2,750,453			2,209,439			21,326,549			27,602,832
Net Assets:
Beginning of period		101,292,529			99,083,090			124,650,791			97,047,959
End of Period	$	104,042,982		$	101,292,529		$	145,977,340		$	124,650,791
Undistributed net investment income (loss)	$	(382,430	)	$	—		$	1,073,769		$	10,976
(1) Shares Issued and Redeemed:
Shares issued		391,696			1,328,357			526,827			1,835,763
Shares redeemed		(1,279,936	)		(1,709,936	)		(574,321	)		(885,614	)
		(888,240	)		(381,579	)		(47,494	)		950,149
	Mid Core Value Fund						SMID Cap Growth Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	237,798		$	422,678		$	(201,881	)	$	(157,280	)
Net realized gains (loss) from investment transactions		13,247,764			6,803,793			2,443,672			145,328
Net realized foreign exchange gain (loss)		69,712			—			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(5,342,084	)		1,133,647			5,191,445			4,412,550
Net Increase (Decrease) in Net Assets Resulting from Operations		8,213,190			8,360,118			7,433,236			4,400,598
Capital Share Transactions (1):
Shares issued		4,655,810			10,151,047			8,927,817			14,560,438
Shares redeemed		(5,453,488	)		(21,522,865	)		(4,845,434	)		(5,379,677	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(797,678	)		(11,371,818	)		4,082,383			9,180,761
Total Increase (Decrease)		7,415,512			(3,011,700	)		11,515,619			13,581,359
Net Assets:
Beginning of period		57,167,705			60,179,405			40,577,618			26,996,259
End of Period	$	64,583,217		$	57,167,705		$	52,093,237		$	40,577,618
Undistributed net investment income (loss)	$	256,948		$	19,150		$	(201,881	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		353,285			918,859			569,399			1,085,665
Shares redeemed		(412,739	)		(1,908,604	)		(310,520	)		(399,868	)
		(59,454	)		(989,745	)		258,879			685,797

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

173

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	SMID Cap Value Fund						Small Cap Growth Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	106,770		$	194,601		$	(282,461	)	$	(745,209	)
Net realized gains (loss) from investment transactions		2,586,774			2,545,081			9,829,894			(1,390,305	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		5,039,234			3,830,008			(2,738,052	)		6,708,897
Net Increase (Decrease) in Net Assets Resulting from Operations		7,732,778			6,569,690			6,809,381			4,573,383
Capital Share Transactions (1):
Shares issued		7,690,201			11,793,130			2,617,290			8,278,394
Shares redeemed		(6,770,595	)		(7,736,293	)		(10,984,499	)		(13,578,802	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		919,606			4,056,837			(8,367,209	)		(5,300,408	)
Total Increase (Decrease)		8,652,384			10,626,527			(1,557,828	)		(727,025	)
Net Assets:
Beginning of period		43,575,260			32,948,733			77,719,689			78,446,714
End of Period	$	52,227,644		$	43,575,260		$	76,161,861		$	77,719,689
Undistributed net investment income (loss)	$	106,770		$	—		$	(282,461	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		494,766			913,084			126,138			426,080
Shares redeemed		(425,942	)		(598,636	)		(531,487	)		(697,871	)
		68,824			314,448			(405,349	)		(271,791	)
	Small Cap Value Fund						Small Cap Index Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	484,272		$	2,296,543		$	177,717		$	497,350
Net realized gains (loss) from investment transactions		13,777,925			14,150,682			1,610,128			1,353,181
Net realized gains (loss) on futures contracts		—			—			282,151			133,346
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		13,687,597			8,592,880			4,808,437			2,946,293
Net Increase (Decrease) in Net Assets Resulting from Operations		27,949,794			25,040,105			6,878,433			4,930,170
Capital Share Transactions (1):
Shares issued		11,286,289			11,629,172			7,522,921			12,599,427
Shares redeemed		(11,148,099	)		(20,193,553	)		(3,758,071	)		(4,287,926	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		138,190			(8,564,381	)		3,764,850			8,311,501
Total Increase (Decrease)		28,087,984			16,475,724			10,643,283			13,241,671
Net Assets:
Beginning of period		175,840,589			159,364,865			42,443,487			29,201,816
End of Period	$	203,928,573		$	175,840,589		$	53,086,770		$	42,443,487
Undistributed net investment income (loss)	$	484,272		$	—		$	179,959		$	2,242
(1) Shares Issued and Redeemed:
Shares issued		536,674			655,178			556,719			1,085,853
Shares redeemed		(529,871	)		(1,145,507	)		(273,161	)		(372,713	)
		6,803			(490,329	)		283,558			713,140

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

174

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Developed International Index Fund						International Equity Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,765,069		$	2,009,071		$	3,399,715		$	4,371,238
Net realized gains (loss) from investment transactions		(292,486	)		(638,972	)		16,534,318			34,808,106
Net realized gains (loss) on futures contracts		99,976			513,145			—			—
Net realized foreign exchange gain (loss)		(27,230	)		946			(316,605	)		(575,643	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		1,217,210			11,055,255			(20,873,872	)		25,410,066
Net Increase (Decrease) in Net Assets Resulting from Operations		2,762,539			12,939,445			(1,256,444	)		64,013,767
Capital Share Transactions (1):
Shares issued		11,036,277			24,926,970			20,977,944			25,174,799
Shares redeemed		(4,847,290	)		(9,937,853	)		(16,311,976	)		(50,510,062	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		6,188,987			14,989,117			4,665,968			(25,335,263	)
Total Increase (Decrease)		8,951,526			27,928,562			3,409,524			38,678,504
Net Assets:
Beginning of period		89,786,246			61,857,684			348,598,879			309,920,375
End of Period	$	98,737,772		$	89,786,246		$	352,008,403		$	348,598,879
Undistributed net investment income (loss)	$	1,581,152		$	(183,917	)	$	(2,885,535	)	$	(6,285,250	)
(1) Shares Issued and Redeemed:
Shares issued		1,035,329			2,681,964			939,838			1,285,142
Shares redeemed		(451,849	)		(1,041,566	)		(725,889	)		(2,525,017	)
		583,480			1,640,398			213,949			(1,239,875	)
	Emerging Markets Equity Fund						Real Estate Securities Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	581,030		$	428,550		$	1,189,395		$	1,123,977
Net realized gains (loss) from investment transactions		3,922,378			1,700,979			4,266,652			8,371,943
Net realized foreign exchange gain (loss)		(2,739	)		(159,316	)		—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(14,158,711	)		22,522,186			424,001			3,041,493
Net Increase (Decrease) in Net Assets Resulting from Operations		(9,658,042	)		24,492,399			5,880,048			12,537,413
Capital Share Transactions (1):
Shares issued		13,781,032			23,131,801			13,026,391			18,676,255
Shares redeemed		(7,506,930	)		(15,831,334	)		(5,214,203	)		(9,413,269	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		6,274,102			7,300,467			7,812,188			9,262,986
Total Increase (Decrease)		(3,383,940	)		31,792,866			13,692,236			21,800,399
Net Assets:
Beginning of period		152,858,371			121,065,505			98,146,472			76,346,073
End of Period	$	149,474,431		$	152,858,371		$	111,838,708		$	98,146,472
Undistributed net investment income (loss)	$	230,841		$	(350,189	)	$	1,189,395		$	—
(1) Shares Issued and Redeemed:
Shares issued		1,196,588			2,180,214			905,582			1,446,966
Shares redeemed		(650,410	)		(1,484,006	)		(361,073	)		(735,480	)
		546,178			696,208			544,509			711,486

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

175

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Aggressive Allocation Fund						Moderately Aggressive Allocation Fund
	For the Six Months  Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(75,756	)	$	(114,722	)	$	(301,899	)	$	(493,987	)
Net realized gains (loss) from investment transactions		457,940			322,644			2,456,247			1,335,273
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		3,035,122			4,678,194			10,545,967			18,283,036
Net Increase (Decrease) in Net Assets Resulting from Operations		3,417,306			4,886,116			12,700,315			19,124,322
Capital Share Transactions (1):
Shares issued		8,185,124			11,208,887			21,685,835			41,901,069
Shares redeemed		(4,633,029	)		(3,043,549	)		(16,403,058	)		(16,764,032	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		3,552,095			8,165,338			5,282,777			25,137,037
Total Increase (Decrease)		6,969,401			13,051,454			17,983,092			44,261,359
Net Assets:
Beginning of period		41,233,912			28,182,458			179,229,059			134,967,700
End of Period	$	48,203,313		$	41,233,912		$	197,212,151		$	179,229,059
Undistributed net investment income (loss)	$	(75,756	)	$	—		$	(301,899	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		658,382			1,024,830			1,636,961			3,509,638
Shares redeemed		(371,203	)		(272,698	)		(1,218,006	)		(1,431,661	)
		287,179			752,132			418,955			2,077,977
	Moderate Allocation Fund						Moderately Conservative Allocation Fund
	For the Six Months Ended 6/30/13			For the year ended 12/31/12			For the Six Months Ended 6/30/13			For the year ended 12/31/12
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(483,366	)	$	(812,609	)	$	(164,857	)	$	(313,208	)
Net realized gains (loss) from investment transactions		4,579,759			3,023,537			1,077,271			1,729,941
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		10,596,715			23,843,407			2,188,684			5,978,406
Net Increase (Decrease) in Net Assets Resulting from Operations		14,693,108			26,054,335			3,101,098			7,395,139
Capital Share Transactions (1):
Shares issued		26,372,760			51,969,701			16,999,712			20,379,256
Shares redeemed		(13,705,546	)		(11,328,986	)		(9,426,171	)		(21,423,672	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		12,667,214			40,640,715			7,573,541			(1,044,416	)
Total Increase (Decrease)		27,360,322			66,695,050			10,674,639			6,350,723
Net Assets:
Beginning of period		290,950,689			224,255,639			96,027,914			89,677,191
End of Period	$	318,311,011		$	290,950,689		$	106,702,553		$	96,027,914
Undistributed net investment income (loss)	$	(483,366	)	$	—		$	(164,857	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		2,108,393			4,517,924			1,388,391			1,771,883
Shares redeemed		(1,084,059	)		(985,360	)		(768,908	)		(1,864,666	)
		1,024,334			3,532,564			619,483			(92,783	)

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

176

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Conservative Allocation Fund
	Six Months Ended 6/30/13			Year Ended 12/31/12
	(Unaudited)
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(116,167	)	$	(222,597	)
Net realized gains (loss) from investment transactions		1,189,819			1,072,025
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(379,984	)		2,850,210
Net Increase (Decrease) in Net Assets Resulting from Operations		693,668			3,699,638
Capital Share Transactions (1):
Shares issued		11,395,764			24,661,261
Shares redeemed		(10,718,562	)		(20,852,243	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		677,202			3,809,018
Total Increase (Decrease)		1,370,870			7,508,656
Net Assets:
Beginning of period		70,604,187			63,095,531
End of Period	$	71,975,057		$	70,604,187
Undistributed net investment income (loss)	$	(116,167	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		953,136			2,146,560
Shares redeemed		(897,106	)		(1,801,609	)
		56,030			344,951

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

177

Penn Series Funds, Inc.

Financial Highlights

MONEY MARKET FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31
				2012			2011			2010			2009			2008
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)		—	(a)		0.03
Total from investment operations		—			—			—			—			—			0.03
Less distributions:
Net investment income		—	(a)		—	(a)		—	(a)		—	(a)		—	(a)		(0.03	)
Total distributions		—			—			—			—			—			(0.03	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return 1, 2		0.01%	#		0.01%			0.01%			0.01%			0.44%			2.68%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	130,189		$	141,725		$	154,213		$	139,988		$	168,500		$	213,973
Ratio of net expenses to average net assets		0.19%	*		0.22%			0.22%			0.33%			0.43%			0.46%
Ratio of total expenses to average net assets		0.49%	*		0.49%			0.49%			0.47%			0.48%			0.46%
Ratio of net investment income (loss) to average net assets		0.01%	*		0.01%			0.01%			0.01%			0.47%			2.57%
*   Annualized #   Non-annualized 1     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. 2    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, 2013 (Unaudited)			Year Ended December 31,
				2012			2011			2010			2009			2008
Net asset value, beginning of period	$	11.49		$	11.42		$	11.17		$	10.76		$	10.57		$	10.41
Income from investment operations:
Net investment income (loss)		0.03			0.09			0.13			0.17			0.23			0.34
Net realized and unrealized gain (loss) on investment transactions		(0.07	)		(0.02	)		0.12			0.24			(0.04	)		0.18
Total from investment operations		(0.04	)		0.07			0.25			0.41			0.19			0.52
Less distributions:
Net investment income		—			—			—			—			—			(0.36	)
Total distributions		—			—			—			—			—			(0.36	)
Net asset value, end of period	$	11.45		$	11.49		$	11.42		$	11.17		$	10.76		$	10.57
Total return 1		(0.35%	)#		0.61%			2.24%			3.71%			1.89%			5.03%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	190,509		$	202,385		$	174,290		$	152,447		$	111,501		$	75,660
Ratio of total expenses to average net assets		0.57%	*		0.57%			0.58%			0.58%			0.60%			0.60%
Ratio of net investment income (loss) to average net assets		0.61%	*		0.81%			1.14%			1.56%			2.20%			3.24%
Portfolio turnover rate		31%	#		31%			50%			38%			64%			106%

* Annualized

# Non-annualized

¹  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.

178

Penn Series Funds, Inc.

Financial Highlights

QUALITY BOND FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012		2011			2010		2009			2008
Net asset value, beginning of period	$	13.14		$	12.73	$	11.56		$	10.90	$	10.36		$	10.50
Income from investment operations:
Net investment income (loss)		0.11			0.27		0.32			0.28		0.36			0.47
Net realized and unrealized gain (loss) on investment transactions		(0.51	)		0.14		0.85			0.38		0.26			0.07
Total from investment operations		(0.40	)		0.41		1.17			0.66		0.62			0.54
Less distributions:
Net investment income		—			—		—			—		—	(a)		(0.50	)
Net realized gains		—			—		—			—		(0.08	)		(0.18	)
Total distributions		—			—		—			—		(0.08	)		(0.68	)
Net asset value, end of period	$	12.74		$	13.14	$	12.73		$	11.56	$	10.90		$	10.36
Total return 1		(3.04%	)#		3.22%		10.12%			6.06%		6.02%			5.10%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	528,299		$	568,400	$	477,606		$	418,957	$	327,724		$	221,730
Ratio of total expenses to average net assets		0.56%	*		0.56%		0.57%			0.58%		0.61%			0.60%
Ratio of net investment income (loss) to average net assets		1.72%	*		2.06%		2.62%			2.48%		3.38%			4.44%
Portfolio turnover rate		10%	#		32%		44%			69%		87%			273%
*   Annualized #   Non-annualized 1    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. (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, 2013 (Unaudited)			Year Ended December 31,
				2012		2011			2010		2009			2008
Net asset value, beginning of period	$	9.99		$	8.72	$	8.46		$	7.41	$	5.05		$	7.58
Income (loss) from investment operations:
Net investment income (loss)		0.30			0.61		0.62			0.61		0.56			0.58
Net realized and unrealized gain (loss) on investment transactions		(0.13	)		0.66		(0.36	)		0.44		1.80			(2.40	)
Total from investment operations		0.17			1.27		0.26			1.05		2.36			(1.82	)
Less distributions:
Net investment income		—			—		—			—		—			(0.71	)
Total distributions		—			—		—			—		—			(0.71	)
Net asset value, end of period	$	10.16		$	9.99	$	8.72		$	8.46	$	7.41		$	5.05
Total return 1		1.70%	#		14.56%		3.07%			14.17%		46.44%			(23.98%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	182,019		$	179,720	$	141,290		$	131,682	$	103,574		$	57,995
Ratio of total expenses to average net assets		0.81%	*		0.82%		0.83%			0.85%		0.87%			0.86%
Ratio of net investment income (loss) to average net assets		5.93%	*		6.52%		7.16%			7.73%		8.97%			8.29%
Portfolio turnover rate		38%	#		69%		58%			61%		59%			53%

* Annualized

# Non-annualized

¹ 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.

179

Penn Series Funds, Inc.

Financial Highlights

FLEXIBLY MANAGED FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012		2011		2010		2009			2008
Net asset value, beginning of period	$	29.22		$	25.46	$	24.71	$	21.69	$	16.33		$	23.72
Income (loss) from investment operations:
Net investment income (loss)		0.16			0.44		0.40		0.35		0.41			0.46
Net realized and unrealized gain (loss) on investment transactions		2.79			3.32		0.35		2.67		4.95			(6.99	)
Total from investment operations		2.95			3.76		0.75		3.02		5.36			(6.53	)
Less distributions:
Net investment income		—			—		—		—		—	(a)		(0.59	)
Net realized gains		—			—		—		—		—			(0.27	)
Total distributions		—			—		—		—		—			(0.86	)
Net asset value, end of period	$	32.17		$	29.22	$	25.46	$	24.71	$	21.69		$	16.33
Total return 1		10.13%	#		14.77%		3.04%		13.92%		32.92%			(27.83%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	2,353,243		$	2,010,412	$	1,655,254	$	1,583,104	$	1,286,902		$	948,507
Ratio of total expenses to average net assets		0.83%	*		0.84%		0.84%		0.85%		0.85%			0.85%
Ratio of net investment income (loss) to average net assets		1.01%	*		1.59%		1.60%		1.55%		2.22%			2.15%
Portfolio turnover rate		31%	#		65%		83%		67%		89%			103%

* Annualized

# Non-annualized

¹  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. Total returns may reflect adjustments to conform with generally accepted accounting principles.

^(a) Distributions were less than one penny per share.

BALANCED FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,												For the period August 25, 2008 through December 31,  2008
				2012			2011			2010			2009
Net asset value, beginning of period	$	12.60		$	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	)		(0.02	)		(0.01	)		0.28
Capital gain distributions received from affiliated funds		—			—			—			—			0.03			0.05
Net realized and unrealized gain (loss) on investment transactions		0.85			1.22			0.62			1.15			1.46			(1.81	)
Total from investment operations		0.84			1.20			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	$	13.44		$	12.60		$	11.40		$	10.80		$	9.67		$	8.19
Total return 1		6.67%	#		10.53%			5.56%			11.69%			18.07%			(14.74%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	75,608		$	71,601		$	65,342		$	64,311		$	60,114		$	56,422
Ratio of net expenses to average net assets 2		0.20%	*		0.19%			0.18%			0.18%			0.17%			0.22%	*
Ratio of total expenses to average net assets 2		0.22%	*		0.23%			0.24%			0.24%			0.24%			0.26%	*
Ratio of net investment income (loss) to average net assets		(0.20%	)*		(0.19%	)		(0.18%	)		(0.18%	)		(0.17%	)		9.09%	*
Portfolio turnover rate		10%	#		15%			17%			18%			19%			23%	#

* Annualized

# Non-annualized

¹  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.

² 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.

180

Penn Series Funds, Inc.

Financial Highlights

LARGE GROWTH STOCK FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012		2011			2010			2009			2008
Net asset value, beginning of period	$	18.05		$	15.20	$	15.44		$	13.22		$	9.25		$	15.96
Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		0.01		(0.03	)		(0.02	)		—	(a)		0.03
Net realized and unrealized gain (loss) on investment transactions		2.00			2.84		(0.21	)		2.24			3.97			(6.71	)
Total from investment operations		1.99			2.85		(0.24	)		2.22			3.97			(6.68	)
Less distributions:
Net investment income		—			—		—			—			—	(a)		(0.03	)
Total distributions		—			—		—			—			—			(0.03	)
Net asset value, end of period	$	20.04		$	18.05	$	15.20		$	15.44		$	13.22		$	9.25
Total return 1		11.02%	#		18.75%		(1.55%	)		16.79%			42.93%			(41.87%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	223,055		$	210,999	$	176,692		$	174,372		$	143,167		$	89,852
Ratio of total expenses to average net assets		0.90%	*		0.91%		0.93%			0.94%			0.97%			0.98%
Ratio of net investment income (loss) to average net assets		(0.14%	)*		0.03%		(0.19%	)		(0.18%	)		0.02%			0.24%
Portfolio turnover rate		25%	#		35%		33%			43%			58%			54%
*   Annualized #   Non-annualized 1     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. (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, 2013 (Unaudited)			Year Ended December 31,
				2012		2011			2010			2009			2008
Net asset value, beginning of period	$	9.57		$	8.68	$	9.31		$	8.28		$	6.02		$	10.98
Income (loss) from investment operations:
Net investment income (loss)		0.01			0.01		(0.02	)		(0.01	)		0.02			0.02
Net realized and unrealized gain (loss) on investment transactions		0.50			0.88		(0.61	)		1.04			2.24			(4.79	)
Total from investment operations		0.51			0.89		(0.63	)		1.03			2.26			(4.77	)
Less distributions:
Net investment income		—			—		—			—			—			(0.03	)
Net realized gains		—			—		—			—			—			(0.16	)
Total distributions		—			—		—			—			—			(0.19	)
Net asset value, end of period	$	10.08		$	9.57	$	8.68		$	9.31		$	8.28		$	6.02
Total return 1		5.33%	#		10.25%		(6.77%	)		12.44%			37.54%			(43.82%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	49,755		$	29,751	$	37,465		$	33,542		$	27,870		$	17,537
Ratio of net expenses to average net assets		0.90%	*		0.90%		0.96%			1.00%			1.00%			0.96%
Ratio of total expenses to average net assets		0.90%	*		0.90%		0.96%			1.00%			1.12%			0.96%
Ratio of net investment income (loss) to average net assets		0.21%	*		0.06%		(0.25%	)		(0.10%	)		0.22%			0.19%
Portfolio turnover rate		109%	#		97%		153%			176%			121%			287%

* Annualized

# Non-annualized

¹  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.

181

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE GROWTH FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,											For the period August 25, 2008 through December 31, 2008
				2012		2011			2010			2009
Net asset value, beginning of period	$	10.79		$	9.29	$	9.78		$	8.34		$	6.14		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		0.01			0.02		(0.01	)		—			0.03			0.02
Net realized and unrealized gain (loss) on investment transactions		1.17			1.48		(0.48	)		1.44			2.17			(3.87	)
Total from investment operations		1.18			1.50		(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	$	11.97		$	10.79	$	9.29		$	9.78		$	8.34		$	6.14
Total return 1		10.94%	#		16.15%		(5.01%	)		17.27%			35.89%			(38.45%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	108,065		$	106,053	$	100,397		$	123,153		$	126,510		$	100,096
Ratio of net expenses to average net assets		0.88%	*		0.89%		0.90%			0.71%			0.64%			0.64%	*
Ratio of total expenses to average net assets		0.88%	*		0.89%		0.90%			0.85%			0.86%			0.90%	*
Ratio of net investment income (loss) to average net assets		0.12%	*		0.17%		(0.11%	)		(0.01%	)		0.50%			0.69%	*
Portfolio turnover rate		59%	#		105%		115%			115%			155%			55%	#

* Annualized

# Non-annualized

¹ 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.

^(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, 2013 (Unaudited)			Year Ended December 31,
				2012		2011			2010		2009		2008
Net asset value, beginning of period	$	15.66		$	13.83	$	14.47		$	12.60	$	9.43	$	17.65
Income (loss) from investment operations:
Net investment income (loss)		0.11			0.20		0.18			0.11		0.16		0.20
Net realized and unrealized gain (loss) on investment transactions		2.08			1.63		(0.82	)		1.76		3.01		(8.05	)
Total from investment operations		2.19			1.83		(0.64	)		1.87		3.17		(7.85	)
Less distributions:
Net investment income		—			—		—			—		—		(0.25	)
Net realized gains		—			—		—			—		—		(0.12	)
Total distributions		—			—		—			—		—		(0.37	)
Net asset value, end of period	$	17.85		$	15.66	$	13.83		$	14.47	$	12.60	$	9.43
Total return 1		13.98%	#		13.23%		(4.42%	)		14.84%		33.62%		(44.62%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	190,326		$	166,955	$	166,056		$	167,918	$	143,038	$	106,616
Ratio of total expenses to average net assets		0.87%	*		0.88%		0.89%			0.89%		0.90%		0.90%
Ratio of net investment income (loss) to average net assets		1.28%	*		1.32%		1.24%			0.86%		1.53%		1.42%
Portfolio turnover rate		181%	#		90%		87%			112%		120%		228%

* Annualized

# Non-annualized

¹  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.

182

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE VALUE FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008
				2012		2011			2010		2009
Net asset value, beginning of period	$	10.31		$	8.92	$	9.31		$	8.43	$	7.22	$	10.00
Income (loss) from investment operations:
Net investment income (loss)		0.08			0.16		0.14			0.12		0.14		0.07
Net realized and unrealized gain (loss) on investment transactions		1.34			1.23		(0.53	)		0.76		1.07		(2.78	)
Total from investment operations		1.42			1.39		(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		11.73		$	10.31	$	8.92		$	9.31	$	8.43	$	7.22
Total return 1		13.77%	#		15.58%		(4.19%	)		10.44%		16.76%		(27.05%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	179.787		$	158,589	$	143,147		$	158.985	$	149,973	$	114,167
Ratio of net expenses to average net assets		0.87%	*		0.88%		0.89%			0.61%		0.54%		0.54%	*
Ratio of total expenses to average net assets		0.87%	*		0.88%		0.89%			0.75%		0.75%		0.79%	*
Ratio of net investment income (loss) to average net assets		1.39%	*		1.64%		1.52%			1.46%		1.94%		2.40%	*
Portfolio turnover rate		33%	#		38%		51%			35%		62%		31%	#

* Annualized

# Non-annualized

¹ 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.

INDEX 500 FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012		2011		2010		2009		2008
Net asset value, beginning of period	$	10.70		$	9.25	$	9.09	$	7.92	$	6.28	$	10.11
Income (loss) from investment operations:
Net investment income (loss)		0.10			0.20		0.16		0.14		0.13		0.17
Net realized and unrealized gain (loss) on investment transactions		1.35			1.25		—		1.03		1.51		(3.82	)
Total from investment operations		1.45			1.45		0.16		1.17		1.64		(3.65	)
Less distributions:
Net investment income		—			—		—		—		—		(0.18	)
Total distributions		—			—		—		—		—		(0.18	)
Net asset value, end of period	$	12.15		$	10.70	$	9.25	$	9.09	$	7.92	$	6.28
Total return 1		13.55%	#		15.68%		1.76%		14.77%		26.11%		(36.08%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	351,715		$	312,146	$	267,009	$	263,724	$	249,284	$	195,078
Ratio of net expenses to average net assets		0.33%	*		0.34%		0.35%		0.35%		0.35%		0.35%
Ratio of total expenses to average net assets		0.33%	*		0.34%		0.36%		0.36%		0.37%		0.37%
Ratio of net investment income (loss) to average net assets		1.74%	*		1.93%		1.71%		1.68%		1.97%		2.02%
Portfolio turnover rate		3%	#		4%		4%		5%		6%		6%

* Annualized

# Non-annualized

¹ 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.

183

Penn Series Funds, Inc.

Financial Highlights

MID CAP GROWTH FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012			2011			2010			2009			2008
Net asset value, beginning of period	$	9.94		$	9.37		$	10.16		$	8.01		$	5.42		$	10.60
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.01	)		(0.04	)		(0.01	)		(0.01	)		(0.02	)
Net realized and unrealized gain (loss) on investment transactions		1.29			0.58			(0.75	)		2.16			2.60			(5.16	)
Total from investment operations		1.25			0.57			(0.79	)		2.15			2.59			(5.18	)
Net asset value, end of period	$	11.19		$	9.94		$	9.37		$	10.16		$	8.01		$	5.42
Total return 1		12.58%	#		6.08%			(7.78%	)		26.84%			47.79%			(48.87%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	104,043		$	101,293		$	99,083		$	107,064		$	82,895		$	57,747
Ratio of net expenses to average net assets		1.00%	*		1.00%			1.00%			1.00%			1.00%			1.00%
Ratio of total expenses to average net assets		0.99%	*		1.00%			1.00%			1.00%			1.01%			1.02%
Ratio of net investment income (loss) to average net assets		(0.71%	)*		(0.12%	)		(0.42%	)		(0.14%	)		(0.22%	)		(0.20%	)
Portfolio turnover rate		50%	#		129%			110%			106%			102%			162%
*   Annualized #   Non-annualized 1     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, 2013 (Unaudited)			Year Ended December 31,
				2012			2011			2010			2009			2008
Net asset value, beginning of period	$	13.59		$	11.80		$	12.59		$	10.01		$	6.81		$	13.12
Income (loss) from investment operations:
Net investment income (loss)		0.12			0.19			0.09			0.08			0.05			0.10
Net realized and unrealized gain (loss) on investment transactions		2.28			1.60			(0.88	)		2.50			3.15			(6.31	)
Total from investment operations		2.40			1.79			(0.79	)		2.58			3.20			(6.21	)
Less distributions:
Net investment income		—			—			—			—			—			(0.10	)
Total distributions		—			—			—			—			—			(0.10	)
Net asset value, end of period	$	15.99		$	13.59		$	11.80		$	12.59		$	10.01		$	6.81
Total return 1		17.66%	#		15.17%			(6.27%	)		25.77%			46.99%			(47.26%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	145,977		$	124,651		$	97,048		$	119,231		$	92,662		$	60,507
Ratio of total expenses to average net assets		0.82%	*		0.84%			0.84%			0.84%			0.85%			0.86%
Ratio of net investment income (loss) to average net assets		1.53%	*		1.49%			0.70%			0.71%			0.69%			0.89%
Portfolio turnover rate		21%	#		43%			106%			37%			43%			58%

* Annualized

# Non-annualized

¹ 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.

184

Penn Series Funds, Inc.

Financial Highlights

MID CORE VALUE FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012		2011			2010		2009		2008
Net asset value, beginning of period	$	11.87		$	10.37	$	10.75		$	8.57	$	6.80	$	11.78
Income (loss) from investment operations:
Net investment income (loss)		0.05			0.08		0.03			0.05		0.03		0.14
Net realized and unrealized gain (loss) on investment transactions		1.66			1.42		(0.41	)		2.13		1.74		(4.66	)
Total from investment operations		1.71			1.50		(0.38	)		2.18		1.77		(4.52	)
Less distributions:
Net investment income		—			—		—			—		—		(0.16	)
Net realized gains		—			—		—			—		—		(0.30	)
Total distributions		—			—		—			—		—		(0.46	)
Net asset value, end of period	$	13.58		$	11.87	$	10.37		$	10.75	$	8.57	$	6.80
Total return 1		14.41%	#		14.46%		(3.53%	)		25.44%		26.03%		(38.89%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	64,583		$	57,168	$	60,179		$	52,723	$	40,508	$	29,895
Ratio of total expenses to average net assets		1.07%	*		1.08%		1.08%			1.11%		1.20%		1.08%
Ratio of net investment income (loss) to average net assets		0.76%	*		0.68%		0.29%			0.49%		0.43%		1.49%
Portfolio turnover rate		133%	*		75%		51%			75%		116%		39%

* Annualized

# Non-annualized

¹  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.

SMID CAP GROWTH FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,												For the period August 25, 2008 through December 31, 2008
				2012			2011			2010			2009
Net asset value, beginning of period	$	13.75		$	11.92		$	12.51		$	10.01		$	6.51		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.07	)		(0.06	)		(0.09	)		(0.04	)		(0.04	)		(0.01	)
Net realized and unrealized gain (loss) on investment transactions		2.55			1.89			(0.50	)		2.54			3.54			(3.48	)
Total from investment operations		2.48			1.83			(0.59	)		2.50			3.50			(3.49	)
Net asset value, end of period	$	16.23		$	13.75		$	11.92		$	12.51		$	10.01		$	6.51
Total return 1		18.04%	#		15.35%			(4.72%	)		24.85%			54.15%			(35.00%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	52,093		$	40,578		$	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%			1.05%	*
Ratio of total expenses to average net assets		1.07%	*		1.12%			1.13%			1.23%			1.41%			1.69%	*
Ratio of net investment income (loss) to average net assets		(0.88%	)*		(0.46%	)		(0.77%	)		(0.36%	)		(0.43%	)		(0.36%	)*
Portfolio turnover rate		46%	#		95%			160%			95%			65%			21%	#

* Annualized

# Non-annualized

¹ 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.

185

Penn Series Funds, Inc.

Financial Highlights

SMID CAP VALUE FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008
				2012		2011			2010		2009
Net asset value, beginning of period	$	13.87		$	11.66	$	12.56		$	9.90	$	6.80	$	10.00
Income (loss) from investment operations:
Net investment income (loss)		0.03			0.07		0.03			0.02		0.02		0.04
Net realized and unrealized gain (loss) on investment transactions		2.37			2.14		(0.93	)		2.64		3.08		(3.21	)
Total from investment operations		2.40			2.21		(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	$	16.27		$	13.87	$	11.66		$	12.56	$	9.90	$	6.80
Total return 1		17.30%	#		18.95%		(7.17%	)		26.87%		45.59%		(31.64%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	52,228		$	43,575	$	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%		1.14%	*
Ratio of total expenses to average net assets		1.25%	*		1.27%		1.31%			1.36%		1.52%		1.83%	*
Ratio of net investment income (loss) to average net assets		0.42%	*		0.51%		0.27%			0.22%		0.30%		1.37%	*
Portfolio turnover rate		32%	#		52%		69%			81%		49%		14%	#

* Annualized

# Non-annualized

¹ 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.

SMALL CAP GROWTH FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012			2011			2010			2009			2008
Net asset value, beginning of period	$	19.20		$	18.16		$	20.43		$	17.15		$	10.81		$	21.64
Income (loss) from investment operations:
Net investment income (loss)		(0.07	)		(0.18	)		(0.15	)		(0.08	)		(0.09	)		(0.09	)
Net realized and unrealized gain (loss) on investment transactions		1.78			1.22			(2.12	)		3.36			6.43			(10.74	)
Total from investment operations		1.71			1.04			(2.27	)		3.28			6.34			(10.83	)
Net asset value, end of period	$	20.91		$	19.20		$	18.16		$	20.43		$	17.15		$	10.81
Total return 1		8.91%	#		5.73%			(11.11%	)		19.13%			58.65%			(50.05%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	76,162		$	77,720		$	78,447		$	88,184		$	76,180		$	48,008
Ratio of total expenses to average net assets		1.09%	*		1.10%			1.08%			1.08%			1.11%			1.07%
Ratio of net investment income (loss) to average net assets		(0.71%	)*		(0.92%	)		(0.71%	)		(0.45%	)		(0.67%	)		(0.59%	)
Portfolio turnover rate		125%	#		103%			125%			125%			163%			190%

* Annualized

# Non-annualized

¹ 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.

186

Penn Series Funds, Inc.

Financial Highlights

SMALL CAP VALUE FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012		2011		2010		2009		2008
Net asset value, beginning of period	$	18.83		$	16.21	$	16.07	$	12.68	$	9.99	$	14.07
Income (loss) from investment operations:
Net investment income (loss)		0.05			0.24		0.08		0.11		0.09		0.09
Net realized and unrealized gain (loss) on investment transactions		2.94			2.38		0.06		3.28		2.60		(3.88	)
Total from investment operations		2.99			2.62		0.14		3.39		2.69		(3.79	)
Less distributions:
Net investment income		—			—		—		—		—		(0.11	)
Net realized gains		—			—		—		—		—		(0.18	)
Total distributions		—			—		—		—		—		(0.29	)
Net asset value, end of period	$	21.82		$	18.83	$	16.21	$	16.07	$	12.68	$	9.99
Total return 1		15.88%	#		16.16%		0.87%		26.74%		26.93%		(27.15%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	203,929		$	175,841	$	159,365	$	163,354	$	132,952	$	109,336
Ratio of net expenses to average net assets		1.14%	*		1.15%		1.15%		1.15%		1.15%		1.15%
Ratio of total expenses to average net assets		1.13%	*		1.15%		1.15%		1.15%		1.17%		1.15%
Ratio of net investment income (loss) to average net assets		0.50%	*		1.36%		0.51%		0.80%		0.86%		0.66%
Portfolio turnover rate		31%	#		50%		47%		49%		60%		66%

* Annualized

# Non-annualized

¹  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.

SMALL CAP INDEX FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,									For the period August 25, 2008 through December 31, 2008
				2012		2011			2010		2009
Net asset value, beginning of period	$	12.22		$	10.58	$	11.08		$	8.78	$	6.96	$	10.00
Income (loss) from investment operations:
Net investment income (loss)		0.05			0.16		0.08			0.08		0.07		0.04
Net realized and unrealized gain (loss) on investment transactions		1.86			1.48		(0.58	)		2.22		1.75		(3.04	)
Total from investment operations		1.91			1.64		(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	$	14.13		$	12.22	$	10.58		$	11.08	$	8.78	$	6.96
Total return 1		15.63%	#		15.50%		(4.51%	)		26.20%		26.15%		(29.96%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	53,087		$	42,443	$	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%		0.55%	*
Ratio of total expenses to average net assets		0.70%	*		0.70%		0.91%			1.30%		2.01%		2.09%	*
Ratio of net investment income (loss) to average net assets		0.73%	*		1.42%		0.70%			0.89%		0.94%		1.59%	*
Portfolio turnover rate		14%	#		18%		18%			56%		22%		3%	#

* Annualized

# Non-annualized

¹ 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.

187

Penn Series Funds, Inc.

Financial Highlights

DEVELOPED INTERNATIONAL INDEX FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,										For the period August 25, 2008 through December 31, 2008
				2012		2011			2010		2009
Net asset value, beginning of period	$	10.15		$	8.59	$	9.83		$	9.15	$	7.12		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		0.19			0.25		0.27			0.20		0.18			0.05
Net realized and unrealized gain (loss) on investment transactions		0.13			1.31		(1.51	)		0.48		1.85			(2.90	)
Total from investment operations		0.32			1.56		(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	$	10.47		$	10.15	$	8.59		$	9.83	$	9.15		$	7.12
Total return 1		3.15%	#		18.16%		(12.61%	)		7.43%		28.52%			(28.50%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	98,738		$	89,786	$	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%			0.59%	*
Ratio of total expenses to average net assets		0.89%	*		1.00%		1.01%			1.21%		2.15%			4.65%	*
Ratio of net investment income (loss) to average net assets		3.64%	*		2.73%		2.80%			2.27%		2.27%			2.06%	*
Portfolio turnover rate		1%	#		2%		1%			6%		1%			—	#

* Annualized

# Non-annualized

¹ 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.

^(a) Distributions were less than one penny per share.

INTERNATIONAL EQUITY FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,
				2012		2011			2010		2009			2008
Net asset value, beginning of period	$	21.44		$	17.71	$	17.55		$	15.80	$	13.12		$	24.09
Income (loss) from investment operations:
Net investment income (loss)		0.21			0.25		0.35			0.29		0.26			0.25
Net realized and unrealized gain (loss) on investment transactions		(0.28	)		3.48		(0.19	)		1.46		2.58			(10.01	)
Total from investment operations		(0.07	)		3.73		0.16			1.75		2.84			(9.76	)
Less distributions:
Net investment income		—			—		—			—		(0.16	)		(0.43	)
Net realized gains		—			—		—			—		—			(0.78	)
Total distributions		—			—		—			—		(0.16	)		(1.21	)
Net asset value, end of period	$	21.37		$	21.44	$	17.71		$	17.55	$	15.80		$	13.12
Total return 1		(0.33%	)#		21.06%		0.91%			11.08%		21.74%			(41.28%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	352,008		$	348,599	$	309,920		$	320,108	$	270,907		$	213,117
Ratio of total expenses to average net assets		1.17%	*		1.17%		1.20%			1.24%		1.27%			1.27%
Ratio of net investment income (loss) to average net assets		1.87%	*		1.30%		1.95%			1.77%		1.89%			1.33%
Portfolio turnover rate		22%	#		43%		30%			34%		48%			108%

* Annualized

# Non-annualized

¹ 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.

188

Penn Series Funds, Inc.

Financial Highlights

EMERGING MARKETS EQUITY FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,										For the period August 25, 2008 through December 31, 2008
				2012		2011			2010		2009
Net asset value, beginning of period	$	11.53		$	9.64	$	11.82		$	9.92	$	5.99		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		0.04			0.03		0.07			0.02		0.03			—
Net realized and unrealized gain (loss) on investment transactions		(0.74	)		1.86		(2.25	)		1.88		3.90			(3.99	)
Total from investment operations		(0.70	)		1.89		(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	$	10.83		$	11.53	$	9.64		$	11.82	$	9.92		$	5.99
Total return 1		(6.07%	)#		19.61%		(18.44%	)		19.15%		65.64%			(39.86%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	149,474		$	152,858	$	121,066		$	141,853	$	102,834		$	52,204
Ratio of net expenses to average net assets		1.68%	*		1.68%		1.68%			1.62%		1.58%			1.58%	*
Ratio of total expenses to average net assets		1.72%	*		1.72%		1.91%			2.07%		2.20%			1.83%	*
Ratio of net investment income (loss) to average net assets		0.75%	*		0.31%		0.63%			0.21%		0.37%			0.04%	*
Portfolio turnover rate		25%	#		47%		60%			62%		70%			37%	#

* Annualized

# Non-annualized

¹  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.

^(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, 2013 (Unaudited)			Year Ended December 31,
				2012		2011 2		2010		2009		2008
Net asset value, beginning of period	$	13.41		$	11.56	$	10.80	$	8.63	$	6.82	$	12.00
Income (loss) from investment operations:
Net investment income (loss)		0.16			0.16		0.12		0.12		0.19		0.25
Net realized and unrealized gain (loss) on investment transactions		0.66			1.69		0.64		2.05		1.62		(5.02	)
Total from investment operations		0.82			1.85		0.76		2.17		1.81		(4.77	)
Less distributions:
Net investment income		—			—		—		—		—		(0.25	)
Return of capital		—			—		—		—		—		(0.16	)
Total distributions		—			—		—		—		—		(0.41	)
Net asset value, end of period	$	14.23		$	13.41	$	11.56	$	10.80	$	8.63	$	6.82
Total return 1		6.11%	#		16.00%		7.04%		25.14%		26.54%		(39.38%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	111,839		$	98,146	$	76,346	$	68,420	$	50,107	$	33,240
Ratio of total expenses to average net assets		0.99%	*		1.01%		1.00%		1.01%		1.03%		1.02%
Ratio of net investment income (loss) to average net assets		2.17%	*		1.27%		1.09%		1.26%		2.93%		2.30%
Portfolio turnover rate		44%	#		85%		144%		180%		163%		86%

* Annualized

# Non-annualized

¹ 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.

² 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.

189

Penn Series Funds, Inc.

Financial Highlights

AGGRESSIVE ALLOCATION FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,												For the period August 25, 2008 through December 31, 2008
				2012			2011			2010			2009
Net asset value, beginning of period	$	11.56		$	10.01		$	10.39		$	8.96		$	6.95		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(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		0.96			1.59			(0.35	)		1.46			2.02			(3.21	)
Total from investment operations		0.94			1.55			(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	$	12.50		$	11.56		$	10.01		$	10.39		$	8.96		$	6.95
Total return 1		8.13%	#		15.48%			(3.66%	)		15.96%			28.94%			(29.39%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	48,203		$	41,234		$	28,182		$	24,256		$	13,875		$	1,509
Ratio of net expenses to average net assets 2		0.33%	*		0.33%			0.33%			0.33%			0.33%			0.33%	*
Ratio of total expenses to average net assets 2		0.33%	*		0.35%			0.38%			0.40%			0.48%			2.97%	*
Ratio of net investment income (loss) to average net assets		(0.33%	)*		(0.33%	)		(0.33%	)		(0.33%	)		(0.16%	)		9.66%	*
Portfolio turnover rate		18%	#		24%			29%			28%			39%			21%	#
*   Annualized #   Non-annualized 1    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. 2    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, 2013 (Unaudited)			Year Ended December 31,												For the period August 25, 2008 through December 31, 2008
				2012			2011			2010			2009
Net asset value, beginning of period	$	12.42		$	10.93		$	11.13		$	9.72		$	7.64		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(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		0.88			1.53			(0.16	)		1.44			2.09			(2.65	)
Total from investment operations		0.86			1.49			(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	$	13.28		$	12.42		$	10.93		$	11.13		$	9.72		$	7.64
Total return 1		6.92%	#		13.63%			(1.80%	)		14.51%			27.25%			(22.06%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	197,212		$	179,229		$	134,968		$	119,284		$	61,800		$	11,656
Ratio of net expenses to average net assets 2		0.31%	*		0.32%			0.32%			0.33%			0.33%			0.33%	*
Ratio of total expenses to average net assets 2		0.31%	*		0.32%			0.32%			0.33%			0.34%			0.70%	*
Ratio of net investment income (loss) to average net assets		(0.31%	)*		(0.32%	)		(0.32%	)		(0.33%	)		(0.18%	)		14.72%	*
Portfolio turnover rate		16%	#		25%			30%			26%			49%			21%	#

* Annualized

# Non-annualized

¹ 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.

² 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.

190

Penn Series Funds, Inc.

Financial Highlights

MODERATE ALLOCATION FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,												For the period August 25, 2008 through December 31, 2008
				2012			2011			2010			2009
Net asset value, beginning of period	$	11.98		$	10.80		$	10.73		$	9.56		$	7.93		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(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		0.61			1.22			0.10			1.20			1.64			(2.34	)
Total from investment operations		0.59			1.18			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	$	12.57		$	11.98		$	10.80		$	10.73		$	9.56		$	7.93
Total return 1		4.92%	#		10.93%			0.65%			12.24%			20.58%			(18.77%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	318,311		$	290,951		$	224,256		$	199,732		$	100,677		$	13,244
Ratio of net expenses to average net assets 2		0.31%	*		0.31%			0.32%			0.32%			0.33%			0.33%	*
Ratio of total expenses to average net assets 2		0.31%	*		0.31%			0.32%			0.32%			0.33%			0.59%	*
Ratio of net investment income (loss) to average net assets		(0.31%	)*		(0.31%	)		(0.32%	)		(0.32%	)		(0.20%	)		14.00%	*
Portfolio turnover rate		13%	#		20%			26%			22%			30%			23%	#
*   Annualized #   Non-annualized 1    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. 2    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, 2013 (Unaudited)			Year Ended December 31,												For the period August 25, 2008 through December 31, 2008
				2012			2011			2010			2009
Net asset value, beginning of period	$	11.87		$	10.96		$	10.67		$	9.75		$	8.40		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(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		0.40			0.95			0.33			0.95			1.35			(1.74	)
Total from investment operations		0.38			0.91			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	$	12.25		$	11.87		$	10.96		$	10.67		$	9.75		$	8.40
Total return 1		3.20%	#		8.30%			2.72%			9.32%			16.19%			(13.48%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	106,703		$	96,028		$	89,677		$	72,839		$	45,014		$	8,313
Ratio of net expenses to average net assets 2		0.32%	*		0.33%			0.33%			0.33%			0.33%			0.33%	*
Ratio of total expenses to average net assets 2		0.31%	*		0.33%			0.33%			0.34%			0.36%			0.61%	*
Ratio of net investment income (loss) to average net assets		(0.32%	)*		(0.33%	)		(0.33%	)		(0.33%	)		(0.22%	)		11.40%	*
Portfolio turnover rate		15%	#		37%			30%			35%			46%			38%	#

* Annualized

# Non-annualized

¹ 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.

² 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.

191

Penn Series Funds, Inc.

Financial Highlights

CONSERVATIVE ALLOCATION FUND

For a share outstanding throughout each period

	Six Months Ended June 30, 2013 (Unaudited)			Year Ended December 31,												For the period August 25, 2008 through December 31, 2008
				2012			2011			2010			2009
Net asset value, beginning of period	$	11.74		$	11.13		$	10.71		$	10.01		$	9.05		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(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		0.14			0.65			0.46			0.73			0.97			(1.17	)
Total from investment operations		0.12			0.61			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	$	11.86		$	11.74		$	11.13		$	10.71		$	10.01		$	9.05
Total return 1		1.02%	#		5.48%			3.92%			6.89%			10.80%			(6.64%	)#
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	71,975		$	70,604		$	63,096		$	45,528		$	31,405		$	8,139
Ratio of net expenses to average net assets 2		0.33%	*		0.33%			0.33%			0.33%			0.33%			0.33%	*
Ratio of total expenses to average net assets 2		0.32%	*		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%	)		(0.33%	)		(0.21%	)		13.26%	*
Portfolio turnover rate		22%	#		44%			39%			46%			73%			27%	#

* Annualized

# Non-annualized

¹ 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.

² 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.

192

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (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 (“FOFs”) — 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 FOFs 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 (“U.S. GAAP”) 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 are valued by recognized independent third-party valuation services, employing evaluation methodologies that utilize actual market transactions, broker-dealer supplied valuations, and matrix pricing. Matrix pricing for corporate bonds, floating rate notes, municipal securities and U.S. government and government agency obligations considers yield or price of bonds of comparable quality, coupon, maturity and type and, for asset backed securities, commercial mortgage securities and U.S. government agency mortgage securities, also considers prepayment speed assumptions and attributes and performance of the underlying collateral. Securities valued according to these evaluation methods are generally categorized as level 2 in the fair value hierarchy described below. 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.

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. Although derivatives may be subject to netting provisions, as discussed further in Note 7, derivatives held are carried at their gross amounts.

193

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

To assess the continuing appropriateness of third party pricing service security valuations, the Adviser or sub-adviser, 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 Adviser or sub-adviser, as applicable.

Securities for which market quotations are not readily available are valued at fair value prices determined using methods approved by the Board of Directors. The Penn Series Valuation Committee (the “Valuation Committee”), established by and subject to oversight by the Board of Directors, monitors pricing related policies and procedures and approves all fair value determinations. The Valuation Committee consists of representatives from Independence Capital Management, Inc. (“ICMI” or the “Adviser”), the investment adviser to each of the Funds, and Penn Mutual, the administrator to the Funds (the “Administrator”). The Valuation Committee regularly makes good faith judgments, using sources and information obtained, including recommendations and supporting rationales and inputs from the Adviser or the applicable sub-adviser, 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, discount rates, 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 Adviser or respective sub-adviser 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, suspended or has not begun, 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.

Certain events may occur between the time that foreign markets close, on which securities held by the Fund 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. Securities valued using such valuation service are classified as Level 2 of the fair value hierarchy as these adjustment factors are considered other observable inputs to the valuation. 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. One June 30, 2013 and December 31, 2012, the Large Growth Stock, Large Cap Growth, Mid Core Value, Developed International Index, International Equity and Emerging Markets Equity Funds utilized fair value pricing for their foreign common stocks.

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

194

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

• 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 months ended June 30, 2013, if any, are shown as notes on the Schedule of Investments of the individual fund.

Level 3 items at June 30, 2013 consist of $590,816 of equities in the Large Growth Stock Fund which were not publically trading. The unobservable inputs used in valuing these securities include financial results of the company, the price/sales multiple of publically traded securities determined to be comparable, projections and discount amounts. The valuation technique employed consists of a sub-adviser valuation model which estimates an enterprise value based upon financial results, projections and price/sales multiples of comparable publically traded securities, as applicable and then applying a rate of discount. Significant increases (decreases) in financial results, projections and the price/sales multiple would result in directionally similar changes to the fair value. Also, changes to the rate of discount would cause directionally opposite 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. The expanded disclosures required by this guidance are discussed further in Note 7. Adoption of this guidance did not have a material effect on the Funds’ financial position or results of operations.

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.

Loan Agreements — Certain Funds may invest in loan agreements, also known as bank loans, which represent an interest in amounts owed by a borrower to a syndication of lenders. Bank loans may involve multiple loans with the same borrower under a single credit agreement (each loan, a tranche), and each tranche may have different terms and associated risks. A bank or other financial institution typically acts as the agent and administers a bank loan in accordance with the associated credit agreement. Bank loans are generally noninvestment grade and often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Funds may buy and sell bank loans in the form of either loan assignments or loan participations. A loan assignment transfers all legal, beneficial, and economic rights to the buyer. Although loan assignments continue to be administered by the agent, the buyer acquires direct rights against the borrower. In many cases, a loan assignment requires the consent of both the borrower and the agent. In contrast, a loan participation generally entitles the buyer to receive the cash flows from principal, interest, and any fee payments that the seller is entitled to receive from the borrower; however, the seller continues to hold legal title to the loan. As a result, with loan participations, the buyer generally has no right to enforce compliance with terms of the credit agreement against the borrower, and the buyer is subject to the credit risk of both the borrower and the seller. Bank loans often have extended settlement periods, during which the fund is subject to nonperformance by the counterparty.

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

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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.

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, 2012 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, 2012, 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

ICMI, a wholly owned subsidiary of Penn Mutual Life, 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	Massachusetts Financial Services Company
Large Core Growth Fund	Wells Capital Management, Inc.
Large Cap Value Fund	Loomis, Sayles & Company, LP
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	American Century Investment Management, Inc.
SMID Cap Growth Fund	Wells Capital Management, Inc.
SMID Cap Value Fund	Alliance Bernstein, LP
Small Cap Growth Fund	Janus Capital Management LLC
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 the 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 each sub-adviser, 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 the 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 the 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 Fund, Emerging Markets Equity Fund, Developed International Index Fund 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 FOF’s average assets, exclusive of out-of-pocket expenses. Each FOF’s minimum annual fee is $12,000. The minimum annual fee is $48,000 for each of the International Equity Fund, Emerging Markets Equity Fund and Developed International Index Fund. 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.

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Expenses and Limitations Thereon

Each Fund bears all expenses of its operations other than those incurred by ICMI and its sub-adviser under its respective investment advisory agreement 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 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%. Penn Mutual may change or eliminate all or part of this voluntary waiver at any time.

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 preceding three fiscal years have been reduced in excess of that required to maintain expenses within the expense limitation, such excess reduction is eligible to be recaptured by ICMI and Penn Mutual and, if recaptured, would become payable by the Funds to ICMI and Penn Mutual along with the advisory fee or administrative and corporate services fee for that month, as applicable. Penn Mutual and/or ICMI’s election not to recapture the amount of any reduction and reimbursement to which it is entitled in no way impairs the rights of Penn Mutual and/or ICMI to subsequently recapture such amount, provided that such amount remains eligible for recapture and would not cause the Fund to exceed its expense limit for that fee payment period.

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Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

As of June 30, 2013, 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. If not recaptured, the waiver and/or reimbursed administrative and corporate services fees will expire according to the table below:

	December 31, 2013		December 31, 2014		December 31, 2015		December 31, 2016
Money Market Fund	$	721	$	128,050	$	122,590	$	72,139
Balanced Fund		36,499		33,707		22,964		7,855

As of June 30, 2013, the following Funds had waived and/or reimbursed advisory fees that are subject to potential recapture by ICMI through the periods stated below. If not recaptured, the waived and/or reimbursed advisory fees will expire according to the table below:

	December 31, 2013		December 31, 2014		December 31, 2015		December 31, 2016
Money Market Fund	$	234,908	$	272,008	$	262,764	$	122,456
Large Core Growth Fund		173,522		—		—		—
Large Core Value Fund		206,004		—		—		—
SMID Cap Growth Fund		36,023		20,314		23,866		4,957
SMID Cap Value Fund		47,247		48,883		49,667		26,764
Small Cap Index Fund		157,501		97,702		54,153		36,792
Developed International Index Fund		282,565		257,004		302,369		147,976
Emerging Markets Equity Fund		448,789		115,934		33,809		—
Aggressive Allocation Fund		13,439		12,299		6,353		1,029
Conservative Allocation Fund		5,973		4,176		2,344		—

Total fees of $149,250 were paid to Directors of Penn Series, who are not interested persons of Penn Series, for the six months ended June 30, 2013. 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 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, 2013 are as follows:

Money Market Fund	$	4,247,201
Quality Bond Fund		7,498,055
High Yield Bond Fund		5,442,569
Flexibly Managed Fund		47,192,331
Large Growth Stock Fund		39,875,864
Index 500 Fund		23,613,260
Mid Cap Growth Fund		4,089,374
Mid Core Value Fund		3,413,618
SMID Cap Growth Fund		5,585,692
SMID Cap Value Fund		5,592,128
Small Cap Growth Fund		3,113,039
Small Cap Value Fund		7,962,254
International Equity Fund		21,332,149
Large Core Value		35,945,860
Emerging Markets Equity		3,517,690
Small Cap Index Fund		3,845,281
Developed International Index		3,529,406

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Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

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, 2013 were as follows:

Large Growth Stock Fund	$	161
Mid Core Value Fund		94
Small Cap Value Fund		4,201
Emerging Markets Equity Fund		3,941

5 — PURCHASES AND SALES OF SECURITIES

During the six months ended June 30, 2013, 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	$	49,150,387	$	49,319,691	$	17,407,590	$	7,272,175
Quality Bond Fund		122,492,361		40,387,037		24,990,556		7,440,386
High Yield Bond Fund		—		—		80,584,283		68,881,432
Flexibly Managed Fund		—		3,868,167		781,492,202		592,269,488
Balanced Fund		—		—		7,238,781		7,928,966
Large Growth Stock Fund		—		—		55,188,657		63,512,681
Large Cap Growth Fund		—		—		32,258,103		34,362,825
Large Core Growth Fund		—		—		64,726,766		75,337,403
Large Cap Value Fund		—		—		317,268,945		323,906,291
Large Core Value Fund		—		—		58,267,705		55,039,125
Index 500 Fund		—		—		16,044,730		8,702,532
Mid Cap Growth Fund		—		—		52,921,076		62,475,938
Mid Cap Value Fund		—		—		27,439,451		26,134,554
Mid Core Value Fund		—		—		81,559,585		81,244,718
SMID Cap Growth Fund		—		—		22,177,060		20,507,402
SMID Cap Value Fund		—		—		17,016,413		15,872,716
Small Cap Growth Fund		—		—		95,680,884		105,783,814
Small Cap Value Fund		—		—		60,331,032		60,114,068
Small Cap Index Fund		—		—		10,520,085		6,533,125
Developed International Index Fund		—		—		6,232,737		778,075
International Equity Fund		—		—		79,466,503		86,625,799
Emerging Markets Equity Fund		—		—		43,017,429		38,509,667
Real Estate Securities Fund		—		—		54,157,406		46,782,034
Aggressive Allocation Fund		—		—		11,925,316		8,296,635
Moderately Aggressive Allocation Fund		—		—		35,230,600		30,721,480
Moderate Allocation Fund		—		—		51,291,185		39,052,514
Moderately Conservative Allocation Fund		—		—		22,942,886		15,738,407
Conservative Allocation Fund		—		—		15,665,757		15,518,590

6 — FEDERAL INCOME TAXES

Each Fund has qualified and intends to continue to qualify as a regulated investment company (“RIC”) 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, 2012, 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.

200

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

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 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 U.S. GAAP. 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, 2012, primarily attributable to consent dividends, reclass of capital gains tax income recognized from pass-through entities, the disallowance of net operating losses, the tax treatment of Passive Foreign Investment Companies, the redesignation of dividend distributions, the reclassification of net foreign currency exchange gains or losses 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
Limited Maturity Bond Fund	$	(1,514,652	)	$	(199,100	)	$	1,713,752
Quality Bond Fund		(10,780,160	)		(7,450,924	)		18,231,084
High Yield Bond Fund		(10,296,037	)		(102,419	)		10,398,456
Flexibly Managed Fund		(29,690,432	)		(117,067,291	)		146,757,723
Balanced Fund		136,275			322,291			(458,566	)
Large Growth Stock Fund		(60,815	)		(225	)		61,040
Large Cap Growth Fund		(20,386	)		—			20,386
Large Core Growth		(181,137	)		—			181,137
Large Cap Value Fund		(2,188,884	)		(37,914	)		2,226,798
Large Core Value Fund		(2,524,594	)		—			2,524,594
Index 500 Fund		(5,657,305	)		—			5,657,305
Mid Cap Growth Fund		129,521			(4,072,542	)		3,943,021
Mid Cap Value Fund		(1,598,191	)		(6,101,908	)		7,700,099
Mid Core Value Fund		(426,502	)		(1,629	)		428,131
SMID Cap Growth Fund		157,280			(187,389	)		30,109
SMID Cap Value Fund		(194,601	)		(2,381,640	)		2,576,241
Small Cap Growth Fund		745,209			—			(745,209	)
Small Cap Value Fund		(2,296,543	)		(6,811,820	)		9,108,363
Small Cap Index Fund		(495,107	)		(1,498,031	)		1,993,138

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Notes to Financial Statements — June 30, 2013 (Unaudited)

	Increase (Decrease) Undistributed Net Investment Income			Increase (Decrease) Accumulated Net Realized Gains			Increase (Decrease) Paid-in Capital
Developed International Index Fund	$	(2,126,964	)	$	(4,389	)	$	2,131,353
International Equity Fund		(6,214,771	)		29,940			6,184,831
Emerging Markets Equity Fund		(756,603	)		293,594			463,009
Real Estate Securities Fund		(1,123,977	)		(7,456,733	)		8,580,710
Aggressive Allocation Fund		114,722			(313,407	)		198,685
Moderately Aggressive Allocation Fund		493,987			(1,342,405	)		848,418
Moderate Allocation Fund		812,609			(2,983,366	)		2,170,757
Moderately Conservative Allocation Fund		313,208			(1,554,464	)		1,241,256
Conservative Allocation Fund		222,597			(987,001	)		764,404

These reclassifications had no effect on net assets or net asset value per share.

Tax character of distributions:

The tax character of dividends and distributions declared and paid or deemed distributed during the years ended December 31, 2012 and 2011 were as follows:

	Ordinary Income and Short-Term Capital  Gains		Long-Term Capital Gains		Return of Capital		Total
Money Market Fund
2012	$	14,219		—		—	$	14,219
2011		14,798		—		—		14,798
Limited Maturity Bond Fund
2012		1,713,752		—		—		1,713,752
2011		2,024,945	$	134,159		—		2,159,104
Quality Bond Fund
2012		11,799,258		6,431,826		—		18,231,084
2011		13,101,804		3,192,066		—		16,293,870
High Yield Bond Fund
2012		10,398,456		—		—		10,398,456
2011		10,521,444		—		—		10,521,444
Flexibly Managed Fund
2012		75,169,181		71,588,542		—		146,757,723
2011		26,051,118		22,857,755		—		48,908,873
Balanced Fund
2012		1,229,018		—		—		1,229,018
2011		1,260,675		—		—		1,260,675
Large Growth Stock Fund
2012		61,040		—		—		61,040
2011		—		—		—		—
Large Cap Growth Fund
2012		20,386		—		—		20,386
2011		—		—		—		—
Large Core Growth Fund
2012		181,137		—		—		181,137
2011		—		—		—		—

202

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

	Ordinary Income and Short-Term Capital  Gains		Long-Term Capital Gains		Return of Capital		Total
Large Cap Value Fund
2012	$	2,226,798		—		—	$	2,226,798
2011		2,098,299		—		—		2,098,299
Large Core Value Fund
2012		2,524,594		—		—		2,524,594
2011		2,256,740		—		—		2,256,740
Index 500 Fund
2012		5,657,305		—		—		5,657,305
2011		4,531,215		—		—		4,531,215
Mid Cap Growth Fund
2012		—	$	4,072,542		—		4,072,542
2011		—		2,928,178		—		2,928,178
Mid Cap Value Fund
2012		6,866,376		833,723		—		7,700,099
2011		772,569		2,729,015		—		3,501,584
Mid Core Value Fund
2012		426,502		1,629		—		428,131
2011		152,960		—		—		152,960
SMID Cap Growth Fund
2012		—		187,389		—		187,389
2011		397,132		4,106,598		—		4,503,730
SMID Cap Value Fund
2012		1,335,452		1,240,789		—		2,576,241
2011		500,512		2,620,671		—		3,121,183
Small Cap Growth Fund
2012		—		—		—		—
2011		—		2,064,310		—		2,064,310
Small Cap Value Fund
2012		2,296,543		6,811,820		—		9,108,363
2011		815,724		—		—		815,724
Small Cap Index Fund
2012		743,524		1,249,614		—		1,993,138
2011		482,738		1,240,706		—		1,723,444
Developed International Index Fund
2012		2,131,353		—		—		2,131,353
2011		1,660,677		—		—		1,660,677
International Equity Fund
2012		6,184,831		—		—		6,184,831
2011		1,245,118		—		—		1,245,118
Emerging Markets Equity Fund
2012		463,009		—		—		463,009
2011		186,842		—		—		186,842
Real Estate Securities Fund
2012		4,388,925		4,191,785		—		8,580,710
2011		801,373		—		—		801,373
Aggressive Allocation Fund
2012		753,119		520,308		—		1,273,427
2011		198,066		476,564		—		674,630

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	Ordinary Income and Short-Term Capital  Gains		Long-Term Capital Gains		Return of Capital		Total
Moderately Aggressive Allocation Fund
2012	$	3,387,195	$	2,294,973		—	$	5,682,168
2011		1,471,131		1,651,478		—		3,122,609
Moderate Allocation Fund
2012		6,792,268		3,475,273		—		10,267,541
2011		3,373,611		3,649,676		—		7,023,287
Moderately Conservative Allocation Fund
2012		2,705,745		1,222,922		—		3,928,667
2011		1,697,592		1,157,199		—		2,854,791
Conservative Allocation Fund
2012		1,785,772		864,602		—		2,650,374
2011		1,245,830		438,176		—		1,684,006

Short-term gain distributions to shareholders are treated as ordinary income for tax purposes.

Capital loss carryforwards:

At December 31, 2012, 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		—		—		—	$	1,410,298	$	5,091,128		—	$	6,501,426
Balanced Fund		—		—		—		—		225,811	$	2,219		228,030
Large Growth Stock Fund		—		—		—		—		12,851,437		—		12,851,437
Large Cap Growth Fund		—		—		—		—		125,931		—		125,931
Large Core Growth Fund		—		—		—		—		21,974,043		—		21,974,043
Large Cap Value Fund		—		—		—		—		21,369,689		—		21,369,689
Large Core Value Fund		—		—		—		2,509,138		28,563,737		—		31,072,875
Index 500 Fund	$	3,721,649	$	1,916,180	$	187,860		4,110,871		2,801,580		2,767,741		15,505,881
International Equity Fund		—		—		—		—		34,153,862		6,672,017		40,825,879
Emerging Markets Equity Fund		—		—		—		—		7,807,157		—		7,807,157

At December 31, 2012, 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
Small Cap Growth Fund		—	$	557,059
Developed International Index Fund		—		477,762

During the year ended December 31, 2012, 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	$	1,391,950
Balanced Fund		804,665
Large Growth Stock Fund		8,575,362
Large Cap Growth Fund		3,030,298
Large Core Growth Fund		9,171,270
Large Cap Value Fund		4,100,150
Large Core Value Fund		5,625,687
Index 500 Fund		1,308,154

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Mid Core Value Fund	$	6,542,618
Small Cap Value Fund		6,892,903
Developed International Index Fund		23,414
International Equity Fund		32,859,631
Emerging Markets Equity Fund		651,300
Real Estate Securities Fund		372,165

Qualified Late-Year Losses:

The following Funds elected to treat the qualified late-year losses as having occurred on January 1, 2013:

	Late-Year Ordinary Losses		Late-Year Capital Losses
Quality Bond Fund		—	$	54,103
High Yield Bond Fund	$	176,805		—
Large Growth Stock Fund		922		47,258
Large Cap Growth Fund		—		176,097
Large Core Growth Fund		—		385,682
Large Cap Value Fund		—		200,444
Mid Core Value Fund		—		45,770
SMID Cap Growth Fund		—		16,574
SMID Cap Value Fund		—		125,972
Small Cap Growth Fund		—		1,312,448
Small Cap Value Fund		—		68,554
Developed International Index Fund		—		79,447
International Equity Fund		—		143,058
Emerging Markets Equity Fund		72,753		190,139

Tax cost of securities:

At June 30, 2013, 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 June 30, 2013 were as follows:

	Federal Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Money Market Fund	$	132,389,559		—		—			—
Limited Maturity Bond Fund		189,171,566	$	1,512,814	$	(534,684	)	$	978,130
Quality Bond Fund		557,048,540		16,541,582		(7,294,140	)		9,247,442
High Yield Bond Fund		180,812,925		5,069,486		(2,894,345	)		2,175,141
Flexibly Managed Fund		2,014,512,066		382,959,422		(9,627,268	)		373,332,154
Balanced Fund		57,757,050		21,729,904		(3,846,582	)		17,883,322
Large Growth Stock Fund		162,153,844		63,254,152		(1,557,171	)		61,696,981
Large Cap Growth Fund		28,102,265		1,347,259		(787,982	)		559,277
Large Core Growth Fund		81,920,153		26,465,775		(1,459,862	)		25,005,913
Large Cap Value Fund		178,661,583		9,600,521		(4,241,365	)		5,359,156
Large Core Value Fund		137,844,045		44,311,645		(1,767,111	)		42,544,534
Index 500 Fund		272,027,299		115,264,165		(30,714,103	)		84,550,062
Mid Cap Growth Fund		87,941,871		16,502,455		(999,536	)		15,502,919
Mid Cap Value Fund		123,163,841		24,750,397		(1,009,825	)		23,740,572
Mid Core Value Fund		63,060,741		3,053,310		(1,298,953	)		1,754,357
SMID Cap Growth Fund		40,709,488		10,186,222		(632,776	)		9,553,446

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Notes to Financial Statements — June 30, 2013 (Unaudited)

	Federal Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
SMID Cap Value Fund	$	42,531,765	$	11,295,136	$	(824,860	)	$	10,470,276
Small Cap Growth Fund		73,400,086		3,635,593		(1,570,760	)		2,064,833
Small Cap Value Fund		164,456,559		44,877,550		(4,222,334	)		40,655,216
Small Cap Index Fund		41,948,706		13,228,551		(2,299,136	)		10,929,415
Developed International Index Fund		87,784,028		16,531,206		(7,506,659	)		9,024,547
International Equity Fund		283,841,544		79,432,486		(15,456,500	)		63,975,986
Emerging Markets Equity Fund		134,032,822		26,978,595		(13,363,172	)		13,615,423
Real Estate Securities Fund		103,286,995		8,811,807		(1,548,949	)		7,262,858
Aggressive Allocation Fund		36,144,400		12,525,895		(384,349	)		12,141,546
Moderately Aggressive Allocation Fund		147,645,764		51,051,938		(2,113,561	)		48,938,377
Moderate Allocation Fund		253,405,833		66,025,149		(1,633,368	)		64,391,781
Moderately Conservative Allocation Fund		87,956,883		19,560,436		(765,534	)		18,794,902
Conservative Allocation Fund		63,396,028		9,036,523		(449,221	)		8,587,302

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 June 30, 2013, 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.

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 Funds’ investment objectives.

Futures contracts involve a number of risks, such as possible default by the counterparty to the transaction, credit risk with respect to initial and variation margins held in a brokerage account, 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.

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Notes to Financial Statements — June 30, 2013 (Unaudited)

The Index 500, Developed International Index and Small Cap Index Funds have entered into futures contracts during the six months ended June 30, 2013. Open futures contracts held by the Index 500, Developed International Index and Small Cap Index Funds at June 30, 2013 were as follows:

Fund	Type		Expiration Date		Number Of Contracts		Units per Contract		Closing Price		Unrealized Appreciation (Depreciation)
Index 500	Buy/Long	E-Mini S&P 500 Index		9/15/2013		37		50	$	1,599	$	(63,861	)
Small Cap Index	Buy/Long	Russell 2000 Mini Index		9/15/2013		11		100	$	974		(4,854	)
Developed International Index	Buy/Long	E-Mini MSCI Eafe Index		9/15/2013		36		50	$	1,640		(69,133	)

The total market value of futures contracts held in the Index 500, Developed International Index and Small Cap Index Funds as of June 30, 2013 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.

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 High Yield Bond 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, 2013 for the Flexibly Managed Fund were as follows:

Flexibly Managed Fund	Number of Contracts/ Notional Amount			Premium Received
Options outstanding at December 31, 2012		43,402		$	7,123,163
Options written		42,258			6,769,590
Options repurchased		(20,705	)		(3,042,291	)
Options expired		(10,246	)		(1,393,707	)
Options exercised		(16,029	)		(2,610,847	)
Options outstanding at June 30, 2013		38,680		$	6,845,909

The total market value of written options held in the Flexibly Managed Fund as of June 30, 2013 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

207

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

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, Mid Core Value and Emerging Market Equity Funds 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.

Open forward foreign currency contracts held by the High Yield Bond Fund at June 30, 2013 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		09/12/2013	$	105,000			0.76799	$	140,768		$	136,720		$	(4,048	)
Sell	Euro	Goldman Sachs		09/12/2013		(195,711	)		0.76799		(262,199	)		(254,835	)		7,364
Sell	Euro	Barclays Capital		09/12/2013		(61,705	)		0.76799		(80,968	)		(80,345	)		623
Sell	Euro	State Street		09/12/2013		(165,333	)		0.76799		(215,599	)		(215,279	)		320
Sell	Euro	State Street		09/12/2013		(8,679,424	)		0.76799		(11,504,186	)		(11,301,448	)		202,738
Buy	Pounds Sterling	Barclays Capital		07/10/2013		310,108			0.65754		481,817			471,622			(10,195	)
Sell	Pounds Sterling	Pershing		07/10/2013		(132,290	)		0.65754		(202,763	)		(201,190	)		1,573
Sell	Pounds Sterling	Royal Bank of Scotland		07/10/2013		(670,000	)		0.65754		(1,021,281	)		(1,018,956	)		2,325
Sell	Pounds Sterling	Royal Bank		07/10/2013		(210,178	)		0.65754		(322,315	)		(319,645	)		2,670
Sell	Pounds Sterling	Pershing		07/10/2013		(273,271	)		0.65754		(425,521	)		(415,598	)		9,923
Sell	Pounds Sterling	Pershing		07/10/2013		(103,789	)		0.65754		(157,728	)		(157,845	)		(117	)
Buy	Swiss Francs	Pershing		08/12/2013		41,000			0.94418		44,565			43,424			(1,141	)
Sell	Swiss Francs	Morgan Stanley		08/12/2013		(700,000	)		0.94418		(732,000	)		(741,380	)		(9,380	)
Sell	Swiss Francs	Morgan Stanley		08/12/2013		(186,659	)		0.94418		(192,784	)		(197,694	)		(4,910	)
Total																$	197,743

Open forward foreign currency contracts held by the Mid Core Value Fund at June 30, 2013 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	Canadian Dollar	JPMorgan		07/31/2013	$	(50,449	)		1.05255	$	(48,092	)	$	(47,930	)	$	162
Sell	Canadian Dollar	JPMorgan		07/31/2013		(1,683,659	)		1.05255		(1,599,152	)		(1,599,593	)		(441	)
Sell	Euro	UBS Securities		07/31/2013		(23,024	)		0.76815		(30,035	)		(29,973	)		62
Sell	Euro	UBS Securities		07/31/2013		(514,923	)		0.76815		(674,415	)		(670,339	)		4,076
Sell	Swiss Francs	CSFB		07/31/2013		(10,525	)		0.94429		(11,130	)		(11,146	)		(16	)
Sell	Swiss Francs	CSFB		07/31/2013		(325,041	)		0.94429		(344,776	)		(344,218	)		558
Total																$	4,401

208

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

Open forward foreign currency contracts held by the Emerging Markets Equity Fund at June 30, 2013 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	State Street		07/11/2013	$	(22,817,450	)		99.17506	$	(233,333	)	$	(230,072	)	$	3,261
Sell	Japanese Yen	State Street		07/11/2013		(67,086,250	)		99.17506		(683,724	)		(676,443	)		7,281
Total																$	10,542

The total market value of forward foreign currency contracts held in the High Yield Bond, Mid Core Value and Emerging Markets Equity Funds as of June 30, 2013 are classified as Level 2.

The following is a summary of the location of derivatives on the Funds’ Statements of Assets and Liabilities as of June 30, 2013:

	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

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities. The following is a summary of the gross amount of each Fund’s derivative instrument holdings categorized by primary risk exposure as of June 30, 2013:

Portfolio	Asset Derivative Value		Liability Derivative Value
	Equity contracts	Foreign currency contracts	Equity contracts	Foreign exchange contracts
High Yield Bond Fund	$176,625	$227,535	—	$29,792
Flexibly Managed Fund	—	—	$11,201,762	—
Index 500 Fund	—	—	63,861	—
Small Cap Index Fund	—	—	4,854	—
Developed International Index Fund	—	—	69,133	—
Mid Core Value Fund	—	4,858	—	457
Emerging Markets Equity Fund	—	10,542	—	—

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may participate in International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement” or “ISDA”) with derivative contract counterparties or enter into similar agreements covering foreign exchange contracts (“Fx Letters”). An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs Over The Counter (“OTC”) traded derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a fund may, under certain circumstances, offset with the counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting) including the bankruptcy or insolvency of the counterparty. Also, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

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An Fx Letter is also a bilateral agreement between a Fund and a counterparty and is limited to cover only foreign exchange contracts. Fx Letters typically contain netting provisions covering events of default and do not require collateral to be posted. ISDAs and Fx Letters containing netting provisions may be referred to as Master Netting Agreements (“MNA”).

Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker for OTC traded derivatives or by the clearing house for exchange traded derivatives. Brokers can ask for margining in excess of the minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (foreign currency exchange contracts and options). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold before a transfer has to be made. To the extent amounts due to a Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

The following table presents derivative assets and liabilities net of amounts available for offset under a MNA and, as applicable, the related collateral and potential loss exposure to each Fund as of June 30, 2013:

		Gross Amounts Presented on Statements of Assets and Liabilities
Fund and Counterparty	Form of Master Netting Agreement	Value of Asset		Value of Liability			Net Amount Due (to)/from Counterparty			Collateral Pledged (Received) by Fund		Loss Exposure, After Collateral (not less than $0)
High Yield Bond Fund
Pershing	Fx Letter	$	11,496	$	(6,168	)	$	5,328			—	$	5,328
Goldman Sachs	Fx Letter		7,364		—			7,364			—		7,364
State Street	Fx Letter		203,058		—			203,058			—		203,058
Royal Bank of Scotland	Fx Letter		4,995		—			4,995			—		4,995
Barclays Capital	Fx Letter		623		(10,195	)		(9,573	)		—		—
Morgan Stanley & Co.	Fx Letter		—		(13,429	)		(13,429	)		—		—
Total			227,535		(29,792	)		197,743			—		220,744
Exchange Traded			176,625		—			176,625			—		176,625
Total			176,625		—			176,625			—		176,625
Flexibly Managed Fund
Bank of America Merrill Lynch	ISDA		—		(3,235,363	)		(3,235,363	)		—		—
Citigroup Global Markets	ISDA		—		(2,268,617	)		(2,268,617	)		—		—
JPMorgan Chase	ISDA		—		(516,272	)		(516,272	)		—		—
Morgan Stanley & Co.	ISDA		—		(146,065	)		(146,065	)		—		—
Exchange Traded			—		(5,035,445	)		(5,035,445	)		—		—
Total			—		(11,201,762	)		(11,201,762	)		—		—
Index 500 Fund
Exchange Traded			—		(13,505	)		(13,505	)	$	434,998		—
Mid Core Value Fund
UBS Securities	ISDA		4,138		—			4,138			—		4,138
Small Cap Index Fund
Exchange Traded			—		(1,980	)		(1,980	)		74,997		—
Developed International Index Fund
Exchange Traded			—		(5,400	)		(5,400	)		276,173		—
Emerging Markets Equity Fund
State Street	Fx Letter		10,542		—			10,542			—		10,542

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Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

The following is a summary of the location of derivatives on the Funds’ Statements of Operations as of June 30, 2013:

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

Portfolio	Realized Gain (Loss) on Derivatives Recognized in Income
	Equity contracts	Foreign currency contracts
High Yield Bond Fund	—	$(203,966)
Flexibly Managed Fund	$(157,021)	—
Index 500 Fund	1,178,036	—
Small Cap Index Fund	282,151	—
Developed International Index Fund	99,976	—
Mid Core Value	—	69,076
Emerging Markets Equity Fund	—	85,736

Portfolio	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
	Equity contracts	Foreign currency contracts
High Yield Bond Fund	$       (5,929)	$373,484
Flexibly Managed Fund	(4,347,119)	—
Index 500 Fund	(56,907)	—
Small Cap Index Fund	(46,101)	—
Developed International Index Fund	(114,454)	—
Mid Core Value	—	4,401
Emerging Markets Equity Fund	—	(1,046)

* 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.

The table below summarizes the average balance of derivative holdings by Fund during the six months ended June 30, 2013. 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	$	(9,518,835	)		—	$	62,138		—
Flexibly Managed Fund		—			—		2,271	$	(5,051,794	)
Index 500 Fund		—		$	6,716,371		—		—
Small Cap Index Fund		—			1,086,441		—		—
Developed International Index Fund		—			1,765,278		—		—
Mid Core Value Fund		(843,989	)		—		—		—
Emerging Markets Equity Fund		(547,183	)		—		—		—

211

Penn Series Funds, Inc.

Notes to Financial Statements — June 30, 2013 (Unaudited)

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 Large Growth Stock, Large Cap Growth, Mid Core Value, 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 — PENDING LEGAL MATTERS

Penn Series has been named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons (In re Tribune Co.), No. 12-cv-02652 (WHP) (S.D.N.Y.), as a result of the Penn Series Index 500 Fund’s ownership of shares in the Tribune Company (“Tribune”) in 2007. The plaintiff in this action is seeking recoveries on behalf of certain Tribune creditors based on its assertions that the leveraged buy-out rendered Tribune insolvent, that there was no consideration for the redemptions, and therefore the redemptions are voidable as an intentional fraudulent transfer. The lawsuit does not allege any wrongdoing on the part of Penn Series or the Index 500 Fund. The value of the proceeds received by the Index 500 Fund was just in excess of $50,000. At this stage in the proceedings, Penn Series is not able to assess with any reasonable certainty the probable outcomes of the pending lawsuit or the effect, if any, on the Index 500 Fund’s net asset value.

11 — 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 subsequent events requiring recognition or disclosure in the financial statements.

212

Penn Series Funds, Inc.

June 30, 2013 (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, 2013. 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, 2013 is available on the Fund’s website at http://www.pennmutual.com and on the SEC’s website at http://www.sec.gov.

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June 30, 2013

Board Approval of New Investment 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 certain portfolios of the Company and (ii) is responsible for selection and oversight of various investment sub-advisers who perform day-to-day investment management services for certain portfolios of the Company, including the Large Cap Growth Fund, the Large Cap Value Fund, the Mid Core Value Fund and the Small Cap Growth Fund (the “Funds”). At a meeting of the Company’s Board of Directors held on February 20, 2013, ICMI recommended, and the Board of Directors, including all of the Directors who are not “interested persons,” as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), of the Company (collectively, the “Independent Directors”), approved, the following sub-adviser changes:

Fund	Replaced Sub-Adviser	New Sub-Adviser
Large Cap Growth Fund	Turner Investments, LP	Massachusetts Financial Services Company
Large Cap Value Fund	OppenheimerFunds, Inc.	Loomis, Sayles & Co., L.P.
Mid Core Value Fund	Lord, Abbett & Co. LLC	American Century Investment Management, Inc.
Small Cap Growth Fund	Allianz Global Investors Capital LLC	Janus Capital Management LLC

Each of Massachusetts Financial Services Company, Loomis, Sayles & Co., L.P., American Century Investment Management, Inc., and Janus Capital Management LLC (the “New Sub-Advisers”) began providing day-to-day investment management services to their respective Funds on May 1, 2013. Each New Sub-Adviser serves under an investment sub-advisory agreement with ICMI (the “Investment Sub-Advisory Agreements”). Under the Investment Sub-Advisory Agreements, the New Sub-Advisers make investment decisions for the assets of their respective Funds, and continuously review, supervise and administer each Fund’s investment program. Each New Sub-Adviser is independent of ICMI and discharges its responsibilities subject to the supervision of ICMI and the Directors of the Company, and in a manner consistent with its respective Fund’s investment objectives, policies and limitations.

Directors’ Considerations of the Investment Sub-Advisory Agreements. In evaluating the New Sub-Advisers, the Directors received written and oral information from ICMI and the New Sub-Advisers. ICMI recommended the selection of the New Sub-Advisers and reviewed with the Directors the considerations and the search process that led to their recommendation. The Directors also met with representatives of ICMI and the New Sub-Advisers and considered information about portfolio managers, investment philosophies, strategies and processes, brokerage practices and compliance processes, as well as other factors. As further outlined below, in approving each New Sub-Adviser as sub-adviser to its respective Fund, the Directors carefully evaluated: (1) the nature, extent and quality of the services expected to be rendered to the Fund; (2) the performance record of the New Sub-Adviser; and (3) the costs of the services expected to be rendered to the Fund. The Directors discussed the written materials that the Board received before the meeting and the New Sub-Advisers’ oral presentations and any other information that the Board received at the meeting, and deliberated on approving the Investment Sub-Advisory Agreements in light of this information. The Directors used the foregoing information, as well as such other information as the Directors considered to be relevant in the exercise of their reasonable judgment, in their decision to approve each New Sub-Adviser as sub-adviser to its respective Fund.

Nature, Extent and Quality of Sub-Advisory Services. In considering the nature, extent and quality of the services to be provided by each of the New Sub-Advisers, the Board evaluated, among other things, its business, personnel, experience, investment decision process, track record, brokerage practices, including soft dollar practices, any conflicts of interest, compliance program and the resources to be dedicated to the Fund, and, based on such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services to be provided to the Fund and the resources to be dedicated to the Fund supported approval of each Investment Sub-Advisory Agreement.

Performance Record. In considering the past performance record of each New Sub-Adviser, the Board evaluated the recent and long-term performance of the similar accounts managed by the New Sub-Adviser relative to their respective peer group and appropriate indices/benchmarks, in light of total return, yield and economic and market trends and both market risk and

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Penn Series Funds, Inc.

June 30, 2013

shareholder risk expectations, and, based on such evaluation, the Board concluded, within the context of its full deliberations, that the New Sub-Advisers’ performance (both actual performance and comparable performance) supported approval of the Investment Sub-Advisory Agreements.

Costs of Sub-Advisory Services. In considering the costs of the sub-advisory services to be provided by the New Sub-Advisers, the Board evaluated (a) the services to be provided; (b) the sub-advisory fees to be charged to each Fund; (c) the sub-advisory fees to be charged to each Fund in comparison to sub-advisory fees charged to other comparable mutual funds, including, in particular, mutual funds acting as underlying investments for insurance products, and other types of comparable accounts; and (d) the fact that the New Sub-Advisers will be compensated by ICMI and not by the Fund directly and that such compensation reflects an arms-length negotiation between each New Sub-Adviser and ICMI, and, based on such evaluation, the Board concluded, within the context of its full deliberations, that the sub-advisory fees charged under the Investment Sub-Advisory Agreements are reasonable and supported approval of the Investment Sub-Advisory Agreements.

Profitability. Because it was not possible to determine the profitability that the New Sub-Advisers might achieve with respect to the services they will provide to the Fund, the Board did not make any conclusions regarding their profitability, but did take into account the fact that each New Sub-Adviser will be compensated by ICMI and not by the Funds directly and that such compensation reflects an arms-length negotiation between each New Sub-Adviser and ICMI.

Economies of Scale. The Directors considered the existence of any economies of scale and whether those would be passed along to the Funds’ shareholders. The Directors took note of ICMI and its affiliates’ commitment to continuing the expense limitation arrangements in place for the Funds as well as the negotiated sub-advisory fee rates for each Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, the Funds and their shareholders should obtain a reasonable benefit from economies of scale, if any, that may be realized by ICMI and the New Sub-Advisers.

Based on the Directors’ deliberations and their evaluation of the information described above, the Board, including all of the Independent Directors, unanimously approved the Investment Sub-Advisory Agreements and concluded that the compensation under the Investment Sub-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.

Board Approval of the Continuance 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.

215

Penn Series Funds, Inc.

June 30, 2013

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 16, 2013 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 16, 2013 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 16, 2013 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
Cohen & Steers Capital Management, Inc.	Real Estate Securities Fund
Eaton Vance Management	Large Core Value Fund
Goldman Sachs Asset Management, L.P.	Small Cap Value Fund
Morgan Stanley Investment Management, Inc.	Emerging Markets Equity Fund
Morgan Stanley Investment Management Company
Morgan Stanley Investment Management Limited
Neuberger Berman Management LLC	Mid 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
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 16, 2013 meeting, extensive written materials for consideration by the Board and the Independent Directors. In addition, Cohen & Steers Capital Management Inc. (“Cohen”) provided information to ICMI in advance of the Board’s February 20, 2013 meeting sufficient to enable the Board to extend at that meeting Cohen’s Sub-Advisory Agreement through May 31, 2013 so that the Board could more fully consider Cohen’s services at the May 16, 2013 meeting, at which meeting the Company’s other Sub-Advisers would be considered. The information provided by ICMI and the Sub-Advisers in connection with the May 16, 2013 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

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Penn Series Funds, Inc.

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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 16, 2013 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;

• 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

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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 and its affiliates’ agreement to waive management and other fees to prevent total fund expenses from exceeding a specified cap and that ICMI, 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 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.

218

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 Mr. Bay, Mr. MacKinlay, Ms. Matthias and Ms. Mack. 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-CSR 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-CSR 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 5, 2013

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 5, 2013
/s/ Robert J. DellaCroce
By:	Robert J. DellaCroce
	Treasurer
Date:	September 5, 2013