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: December 31, 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 recorded stellar gains in the fourth quarter, bringing most major indexes to record highs. Signs that the U.S. economy had regained some traction following its slowdown in late 2012 and early 2013 were key in driving the market’s strong performance. From a sector perspective, defensive sectors such as Utilities, Telecommunications and Consumer Staples experienced relatively weaker returns in the final quarter and for the full year in comparison to the Consumer Discretionary, Health Care, and Industrials sectors which all experienced significant gains (+40 percent) over the 12-month period ending December 31, 2013. The U.S. stock market, as measured by the Wilshire 5000 Equity Index, returned 10.11 percent in the fourth quarter and 33.06 percent for the full 12-month period.

On a relative basis, small capitalization stocks provided higher returns than did mid and large capitalization stocks for the year. Small capitalization stocks, as measured by the Russell 2000 Index, returned an impressive 38.82 percent, while mid capitalization stocks, as measured by the Russell Midcap Index, returned 34.76 percent and large capitalization stocks, as measured by the Russell 1000 Index, returned 33.11 percent for the full year. From a style perspective, growth stocks outperformed value stocks across all market capitalizations with the largest disparity being in small capitalization stocks. For instance, the Russell 2000 Growth Index returned 43.30 percent for the year versus the Russell 2000 Value Index which produced a 34.52 percent return. Some of the relative outperformance within growth stocks can be attributed to the relatively strong performance within the Technology sector.

International markets, both developed and emerging, ended 2013 behind U.S. equities. Developed international stocks, as measured by the MSCI EAFE Index, returned 23.29 percent while emerging market stocks, as measured by the MSCI Emerging Markets Index, returned a negative 2.27 percent. While the European economy is still struggling, the region is showing signs of improvement. Benefiting from reduced emphasis on austerity measures and signs that the region’s recession had ended, European stocks generated particularly strong gains in the fourth quarter. While most of Asia’s developed markets produced lackluster returns for the year, Japan was the exception with an annual return slightly in excess of 27 percent. Disappointing economic data as well as various political crises dampened emerging markets’ appeal in 2013.

Investment-grade fixed-income securities turned in their first negative calendar year return since 1999, underperforming high yield bonds by a sizeable margin. Investment-grade bonds, as measured by the Barclays Capital U.S. Aggregate Index, returned a negative 2.02 percent for the full year. The Credit Suisse First Boston High Yield Bond Index, which finished the year on a strong note, returned 7.53 percent in 2013 – about half of what it returned in 2012. With most low-risk assets offering negligible current income, investors continued to seek higher-risk, higher-yielding issues in 2013. In addition to the strong investor demand, high yield bonds were boosted by the general good financial health of many U.S. corporations. While the U.S. Federal Reserve remains committed to an accommodative policy by keeping its key interest rate low, they did signal late in the year the commencement of their long-awaited “taper” by announcing plans to modestly trim their monthly bond-buying program. Whereas the 10-year Treasury note started the year with a yield of just 1.76 percent, it ended 2013 with a yield of 3.03%

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

Sincerely,

Peter M. Sherman

Executive Vice President and Chief Investment Officer

The Penn Mutual Life Insurance Company

President

Penn Series Funds, Inc.

Source: This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are subject to change as subsequent conditions vary. All economic and performance information is historical and not indicative of future results.

Table of Contents

Penn Series Funds, Inc. Annual Report

Management’s Discussion of Fund Performance (Unaudited)
Limited Maturity Bond Fund	2
Quality Bond Fund	4
High Yield Bond Fund	6
Flexibly Managed Fund	8
Balanced Fund	10
Large Growth Stock Fund	11
Large Cap Growth Fund	13
Large Core Growth Fund	15
Large Cap Value Fund	17
Large Core Value Fund	19
Index 500 Fund	21
Mid Cap Growth Fund	23
Mid Cap Value Fund	25
Mid Core Value Fund	27
SMID Cap Growth Fund	29
SMID Cap Value Fund	31
Small Cap Growth Fund	33
Small Cap Value Fund	35
Small Cap Index Fund	37
Developed International Index Fund	39
International Equity Fund	41
Emerging Markets Equity Fund	43
Real Estate Securities Fund	45
Aggressive Allocation Fund	47
Moderately Aggressive Allocation Fund	49
Moderate Allocation Fund	51
Moderately Conservative Allocation Fund	53
Conservative Allocation Fund	55
Important Information about Fund Expenses	56
Schedules of Investments	59
Statements of Assets and Liabilities	173
Statements of Operations	181
Statements of Changes in Net Assets	185
Financial Highlights	193
Notes to Financial Statements	208
Report of Independent Registered Public Accounting Firm	228
Tax Information	229
Disclosure of Portfolio Holdings	230
Voting Proxies on Fund Portfolio Securities	230
Special Meeting of Shareholders	230
Board Approval of Amended Investment Advisory Agreement	231
Fund Management	233

1

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Limited Maturity Bond Fund

The Penn Series Limited Maturity Bond Fund returned –0.09% for the twelve-month period ending December 31, 2013, compared to the 0.64% return for its benchmark, the Barclays Capital U.S. Government/Credit 1-3 Year Bond Index, for the same time period.

The U.S. economy entered 2013 still wrapped in a cloud of uncertainty and with little momentum after a weak fourth quarter 2012 Gross Domestic Product (GDP) growth rate of 0.4%. We had just gone through the Fiscal Cliff debacle, the much-hyped and dreaded fiscal reductions known as the “sequester” were looming, and the outlook for U.S. and global economic growth looked uncertain. During the second half of the year, we witnessed more uncertainty as U.S. lawmakers could not reach agreement on a bill to keep the government funded beyond September 30, which in turn led to the first partial shutdown in 17 years. In mid December, some of the uncertainty that clouded the start of the fourth quarter was resolved when Congress passed a two-year budget agreement which moderately increases government spending, eases automatic spending cuts and reduces the risk of future government shutdowns. While considered a positive overall, the agreement did fail to address several key issues such as the debt ceiling, tax reform, and long-term entitlement reform. However, the debt ceiling issue will return in late February, when the U.S. approaches the expiration of its borrowing authority.

Mid December also brought some clarity to the Federal Reserve’s decision to begin making measured changes to its stimulus program. On December 18, the Fed signaled the commencement of its long-awaited “taper” by announcing plans to trim its bond-buying program starting in January 2014. The central bank sought to temper the move by suggesting its key interest rate would stay lower for longer than previously forecast. Immediate reaction to the news from financial markets was favorable and far different from the upset caused when the Federal Reserve first made mention of the possibility in May. The Fed had been waiting for clear signs of improvement in U.S. economic strength before beginning its monthly reductions, signs that were still lacking when the bank decided to delay acting back in September. It is important to note that “tapering” does not mean an end to the Fed’s accommodative policies any time soon; rather, it means continuing the asset purchase program, but at a lower monthly rate.

As anticipated, in the current environment, the traditionally more conservative nature of the management of the Fund has proved to be a headwind to relative performance. Over

the longer-term, the Fund continues to perform on par with its Index. During the second half of the year, we saw spreads in structured products tighten in a bit from the widening they experienced late in the second quarter, and then drift slightly wider. After a quiet beginning, the latter half of the third quarter saw issuance by some infrequent asset-backed securities (ABS) that we believe offered relatively good value. The Fund also participated in some other deals that we thought provided excellent collateral, stable structures and attractive yields. The structured market purchases during the fourth quarter included consumer ABS, agency and non-agency commercial mortgage-backed securities, and agency risk-transfer residential mortgage-backed securities. Over 75% of the structured purchases were in consumer ABS and included sectors such as Auto, Equipment, Rate-Reduction, Railcar, and Credit Cards. These purchases were driven by the three investment goals of staying low in duration, picking up yield, and ensuring high-quality collateral. In addition, we have been opportunistically adding to slightly lower credit quality corporate bonds in lower beta sectors that offer attractive carry. The portfolio continued to add 2-3 year investment grade corporate bonds as rates have been at more compelling levels. We were finding attractive opportunities in the Food & Beverage, Healthcare, and high quality Retail sectors, among others. We also invested in the tier 2 and 3 commercial paper market with 1-2 month commercial paper yielding as much as 3-year Treasuries in some cases. Throughout the year, we bought approximately $142 million resulting in a 1.17% yield to the Fund and sold approximately $61 million with 0.16% yield. The relative yield of the Limited Maturity Bond Fund compared to its Index increased 0.23% over 2013.

Independence Capital Management, Inc.

Investment Adviser

2

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Limited Maturity Bond Fund on December 31, 2003 would have grown to $13,106. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Barclays Capital U.S. Government/Credit 1-3 Year Bond Index, during the same period. A $10,000 investment in the Barclays Capital U.S. Government/Credit 1-3 Year Bond Index on December 31, 2003 would have grown to $13,317.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Limited Maturity Bond Fund		(0.09	)%		1.67	%		2.74	%
Barclays Capital U.S. Government/Credit 1-3 year Bond Index		0.64	%		2.02	%		2.91	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Corporate bonds		39.6	%
U.S. Treasury Obligations		36.9	%
Asset backed		12.6	%
Agency Obligations		4.2	%
Commercial Mortgage Backed		4.8	%
Residential Mortgage Backed		1.5	%
Municipal Notes		0.4	%
		100.0	%

²  Portfolio holdings are presented as a percentage of total investments before short-term investments.

3

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Quality Bond Fund

The Penn Series Quality Bond Fund returned –2.97% for the twelve-month period ending December 31, 2013, compared to the –2.02% return for its benchmark, the Barclays Capital U.S. Aggregate Bond Index, for the same time period.

The U.S. economy entered 2013 still wrapped in a cloud of uncertainty and with little momentum after a weak fourth quarter 2012 Gross Domestic Product (GDP) growth rate of 0.4%. We had just gone through the Fiscal Cliff debacle, the much-hyped and dreaded fiscal reductions known as the “sequester” were looming, and the outlook for U.S. and global economic growth looked uncertain. During the second half of the year, we witnessed more uncertainty as U.S. lawmakers could not reach agreement on a bill to keep the government funded beyond September 30, which in turn led to the first partial shutdown in 17 years. In mid December, some of the uncertainty that clouded the start of the fourth quarter was resolved when Congress passed a two-year budget agreement which moderately increases government spending, eases automatic spending cuts and reduces the risk of future government shutdowns. While considered a positive overall, the agreement did fail to address several key issues such as the debt ceiling, tax reform, and long-term entitlement reform. However, the debt ceiling issue will return in late February, when the U.S. approaches the expiration of its borrowing authority.

Mid December also brought some clarity to the Federal Reserve’s decision to begin making measured changes to its stimulus program. On December 18, the Fed signaled the commencement of its long-awaited “taper” by announcing plans to trim its bond-buying program starting in January 2014. The central bank sought to temper the move by suggesting its key interest rate would stay lower for longer than previously forecast. Immediate reaction to the news from financial markets was favorable and far different from the upset caused when the Federal Reserve first made mention of the possibility in May. The Fed had been waiting for clear signs of improvement in U.S. economic strength before beginning its monthly reductions, signs that were still lacking when the bank decided to delay acting back in September. It is important to note that “tapering” does not mean an end to the Fed’s accommodative policies any time soon; rather, it means continuing the asset purchase program, but at a lower monthly rate.

As anticipated, in the current environment, the traditionally more conservative nature of the management of the Fund

has proved to be a headwind to relative performance. Over the longer-term, the Fund continues to outperform both its Index and peers on a relative basis. During the second half of the year, we added subordinate and senior multi-family housing paper issued by Freddie Mac, which has an implicit U.S. government guaranty. We also purchased commercial mortgage-backed securities (CMBS), split evenly between agency and non-agency. The agency CMBS purchases have continued to provide attractive returns at low risk levels. The non-agency CMBS purchases included a short floater and a high-quality, moderate-duration fixed bond. All sales during the final quarter of the year in the structured products were of lower-coupon agency pass-through securities and were made to adjust our duration bets in the portfolio. We also saw risk premiums in investment grade move lower for the most part during the third quarter, though the lows were witnessed in August. We rotated into the Telecommunications and Pipeline sectors as we saw good relative value. The $40 billion Verizon new issue placed a significant amount of pressure on risk premiums in the telecommunications and media space, so in addition to participating in the Verizon deal, we also opportunistically bought other issuers in these sectors. Telecommunications had been the second largest underweight risk sector in terms of beta duration. We closed the gap that we had held due to the poor relative value after adding about 5% of the corporate portfolio in this sector with slightly lower quality. Risk premiums in this industry now better reflect the risk of leveraging activity. Pipelines are one of our favored long-term focuses based on fundamentals. Lastly, we started to trim exposure to emerging market credits that we had added in June to realize a decrease in risk premiums. At this point, we have sold the same amount of emerging markets exposure in the Fund as we purchased on the sell-off back in June and July. We also de-risked the corporate portfolio within the Fund a bit in October by selling some of the Fund’s outperformers in higher beta sectors such as Telecommunications and Energy.

Duration has been kept to a neutral basis relative to the benchmark and the credit quality of the portfolio remains relatively high to both the benchmark and our peers.

Independence Capital Management, Inc.

Investment Adviser

4

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Quality Bond Fund on December 31, 2003 would have grown to $15,638. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Barclays Capital U.S. Aggregate Bond Index, during the same period. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on December 31, 2003 would have grown to $15,599.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Quality Bond Fund		(2.97	)%		4.40	%		4.57	%
Barclays Capital U.S. Aggregate Bond Index		(2.02	)%		4.44	%		4.55	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total  Investments2
U.S. Treasury Obligations		46.9	%
Corporate Bonds		25.7	%
Residential Mortgage Backed		16.9	%
Commercial Mortgage Backed		4.7	%
Asset Backed Securities		2.4	%
Municipal Bonds		1.6	%
Agency Obligations		1.4	%
Municipal Notes		0.4	%
		100.0	%

²  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

High Yield Bond Fund

The Penn Series High Yield Bond Fund returned 7.91% for the twelve-month period ending December 31, 2013, compared to the 7.53% return for its benchmark, the CSFB High Yield Bond Index, for the same time period.

High yield bonds produced strong returns in 2013 and outperformed most other fixed income assets. There were several external macro developments that weighed on high yield bond performance in 2013, such as U.S. political wrangling and looming changes in Fed policy, but each period of elevated volatility was short lived. Recognizing the health of below investment-grade companies, dedicated high yield investors quickly stepped in to buy during times of weakness.

High yield bonds and leveraged loans both set new annual records for primary market activity. According to J.P. Morgan, $398.5 billion of new high yield bonds came to the market in 2013, surpassing the previous record of $368 billion that was set in 2012.

Valuations were somewhat stretched at times this year, particularly for higher-rated bonds, leading us to focus some of our efforts on special situations. Many of our investments outside of traditional high yield bonds boosted relative returns in 2013. Our modest equity-related positions in the airlines sector were especially rewarding.

We benefited from a number of balance sheet repair stories, such as First Data, Rite Aid, and MEMC Electronic Materials. Each of these companies took advantage of favorable capital market conditions to refinance or extend debt maturities, significantly reducing near-term default risk.

Our small cash reserve position weighed on relative results during the year as the broad market rallied. An overweight allocation media/telecom also hurt as this sector lagged for the period, but this was more than offset by positive credit selection in this space.

While we are encouraged that high yield was one of the few fixed income markets to generate positive results in 2013, capital appreciation potential is limited for the coming year, with most bonds at a premium to par value. In our view, the most promising total return opportunities are outside the traditional U.S. BB rated bond space, but we maintain a positive outlook on the overall asset class. We believe high yield is still one of the best places to invest within the fixed income universe as demand for yield shows no sign of abating. Many of the setbacks that high

yield bonds faced over the last few years were related to challenges outside of the asset class that have since diminished.

Following a surge in refinancing activity over the past several years, many companies have pushed out near-term maturities and locked in low debt costs for an extended period. The limited amount of high yield bonds that are set to mature over the next two years is highly supportive of the low default environment.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the High Yield Bond Fund on December 31, 2003 would have grown to $21,055. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the CSFB High Yield Bond Index, during the same period. A $10,000 investment in the CSFB High Yield Bond Index on December 31, 2003 would have grown to $22,018.

6

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
High Yield Bond Fund		7.91	%		16.33	%		7.73	%
CSFB High Yield Bond Index		7.53	%		18.08	%		8.35	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Bonds
BBB/BB Rated & Above		1.6	%
BB Rated		22.6	%
BB/B Rated		13.3	%
B Rated		35.6	%
B/CCC Rated		9.0	%
CCC and Below		14.9	%
Not rated		0.8	%
Equity securities		2.2	%
		100.0	%

²  Portfolio holdings are presented as a percentage of total investments before short-term investments.

7

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Flexibly Managed Fund

The Penn Series Flexibly Managed Fund returned 22.25% for the twelve-month period ending December 31, 2013, compared to the 32.39% return for its benchmark, the S&P 500 Index, for the same time period.

The U.S. equity market continued this year’s impressive rally into the fourth quarter, with economically sensitive sectors outpacing more traditionally defensive ones. Economic data continued to strengthen, and unemployment fell to its lowest level since 2008 as the year came to an end. Corporate fundamentals moderated from a strong level, but investors remained optimistic about the economy despite uncertainty about fiscal and monetary policies. Markets took the federal government shutdown and debt ceiling brinkmanship of October in stride, and they reacted positively to the Federal Reserve’s announcement that it would begin to curtail its monetary stimulus in January. U.S. bond returns were mixed as longer-term interest rates increased, with long-term Treasury yields rising above 3%, their highest level in more than two years.

Our equity weight increased over the course of the year. We found attractive opportunities in the higher-yielding utilities, health care, and telecommunication services sectors, which were generally left behind in this year’s equity rally. Meanwhile, we trimmed selected holdings in the cyclical information technology and consumer discretionary sectors. We continued to maintain significant exposure to covered calls, which give us the benefits of owning a stock while providing downside protection.

Our fixed income allocation also grew, as we purchased U.S. Treasuries and high yield bonds and decreased our corporate bond weight. We believe that the high yield market offers relatively attractive valuations compared to other fixed income assets, along with solid underlying corporate fundamentals. Our weight in bank loans held steady as we favor their priority in a company’s capital structure; their yields, which are comparable to high yield funds; and their floating rate coupons. We reduced our exposure to mortgage-backed securities, which we were using as a proxy for cash, and deployed the proceeds into U.S. Treasuries.

The financials sector helped absolute returns, particularly our holdings in TD Ameritrade Holding, State Street, and Marsh & McLennan. Health care also boosted results, with Thermo Fisher Scientific and UnitedHealth Group among the leading performers.

After a year of nearly uninterrupted strength in the U.S. equity market, we are tempering our expectations for continued gains. The U.S. economy continued its pace of moderate growth over the past few years, but returns appear to have outpaced corporate fundamentals. We would therefore not be surprised to encounter a cyclical pullback in the near term.

Across asset classes, we are finding less compelling value in equities than we did a year ago. We continue to look for opportunities to add to equity positions on market pullbacks, and we are currently finding attractive options in defensive sectors that were left behind in the current rally. Within fixed income, we took the opportunity to add to U.S. Treasuries along with higher-yielding securities as interest rates rose. With the considerable market advance, we positioned the portfolio defensively as a reflection of our commitment to capital preservation.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Flexibly Managed Fund on December 31, 2003 would have grown to $24,350. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the S&P 500 Index, during the same period. A $10,000 investment in the S&P 500 Index on December 31, 2003 would have grown to $20,424.

8

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Flexibly Managed Fund		22.25	%		16.96	%		9.31	%
S&P 500 Index		32.39	%		17.94	%		7.41	%
Bank of America ML Corporate/Government Index		(2.68	)%		4.47	%		4.50	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total  Investments2
Fixed Income		30.9	%
Financials		12.6	%
Health Care		12.3	%
Industrials		10.8	%
Technology		8.7	%
Consumer Discretionary		8.2	%
Consumer Staples		7.4	%
Utilities		5.7	%
Energy		2.1	%
Telecommunications		1.8	%
Options		(0.5	)%
		100.0	%

²  Portfolio holdings are presented as a percentage of total investments before short-term investments.

9

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Balanced Fund

The Penn Series Balanced Fund returned 16.75% for the twelve-month period ending December 31, 2013, compared to its benchmarks, the S&P 500 Index’s return of 32.39% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.02%, 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 underperformed the Barclays Capital U.S. Aggregate Bond Index for the one-year 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

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Balanced Fund on August 25, 2008 would have grown to $15,316. For the purpose of comparison, the graph also shows the change in the Fund’s benchmarks, the S&P 500 Index and the Barclay’s Capital U.S. Aggregate Bond Index, during the same period. A $10,000 investment in the S&P 500 Index on August 25, 2008 would have grown to $16,111. A $10,000 investment in the Barclay’s Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $12,888.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Balanced Fund		16.75	%		12.43	%		8.28	%
S&P 500 Index		32.39	%		17.94	%		9.30	%
Barclays Capital U.S. Aggregate Bond Index		(2.02	)%		4.44	%		4.85	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

Asset Allocation Target as of 12/31/13

Index 500	60.0	%
Intermediate Bonds	40.0	%
	100.0	%

10

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Growth Stock Fund

The Penn Series Large Growth Stock Fund returned 39.11% for the twelve-month period ending December 31, 2013, compared to the 33.48% return for its benchmark, the Russell 1000 Growth Index, for the same time period.

Major U.S. stock markets generated excellent returns in 2013, as investors remained optimistic about the economy despite moderating corporate fundamentals and uncertainty about fiscal and monetary policies. Investors welcomed the Federal Reserve Bank’s December announcement that it would reduce its asset purchases by $10 billion in January and would keep short-term interest rates low if unemployment fell below 6.5%, provided inflation remained contained.

Consumer discretionary was the leading relative outperformer, primarily due to stock selection, but significant overweighting also helped results. Shares of online travel company priceline.com benefited from increased travel-related spending, particularly on rental cars through its subsidiary, rentalcars.com. The company continues to gain market share, aided by its Smartphone apps that provide useful information for frequent travelers. Shares of Amazon.com moved higher during the second half of the year, led by investor optimism for a strong holiday shopping season, particularly in online retail sales that continue to gain market share from in-store shopping. The company is also experiencing growth in the cloud-computing and storage market through its Amazon Web Services division.

Information technology was a robust outperformer, driven by stock selection. Internet giant Google contributed strongly, benefiting from the popularity of smart phones running on its Android operating system and a higher sales volume of advertising in both the traditional and mobile marketplace. Global payment networks MasterCard and Visa both saw gains from better cost controls and from an increase in consumer credit card use outside the United States, particularly in Europe, Asia, and Latin America.

Health care, the best-performing sector in the Index, contributed positively due to stock selection. The biotechnology industry holdings notably outperformed. Gilead Sciences benefited from broader approval of its HIV treatment, Stribild, notably in Europe.

Telecommunication services was the leading relative detractor, due to combined stock selection and detrimental overweighting against the index. A rise in interest rates over the year negatively affected

communication tower companies, including Crown Castle International, as investors turned to securities with a lower risk profile that offered comparable yields.

Stock selection was the primary cause of relative underperformance by the industrials and business services sector. Fastenal, an industrial supply company, faltered as construction and mining industries, which make up a large portion of its customers, struggled amid a slow construction recovery and a decline in mining activity due to weak commodity prices.

Equities were driven higher in 2013 as investors moved out of safer assets and into riskier areas of the market. We see a continuation of this trend in 2014, although on a more moderate scale. We are generally optimistic about the environment for equities. Improving global economic growth, attractive stock valuations despite 2013’s notable performance, and restrained inflation should permit large-cap growth stocks to perform strongly. While a moderate market correction is always a possibility, we do not anticipate a significant sell-off.

Independence Capital Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Large Growth Stock Fund on December 31, 2003 would have grown to $23,122. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 1000 Growth Index, during the same period. A $10,000 investment in the Russell 1000 Growth Index on December 31, 2003 would have grown to $21,242.

11

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Large Growth Stock Fund		39.11	%		22.11	%		8.74	%
Russell 1000 Growth Index		33.48	%		20.39	%		7.83	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Consumer Discretionary		27.7	%
Technology		27.1	%
Industrials		12.4	%
Health Care		11.7	%
Financials		5.5	%
Energy		4.8	%
Consumer Staples		4.2	%
Materials & Processing		3.4	%
Telecommunications		3.2	%
		100.0	%

²  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 Growth Fund

The Penn Series Large Cap Growth Fund returned 23.09% for the twelve-month period ending December 31, 2013, compared to the 33.48% return for its benchmark, the Russell 1000 Growth Index, for the same time period.

From the start of the year through to the end of April, 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. Underperformance in the consumer-discretionary sector was due largely to the poor results posted by both Facebook and lululemon athletica.

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.

During the period of May to the end of the year, stock selection in the consumer discretionary sector was a primary detractor from performance relative to the Index. The Fund’s underweight position in strong-performing internet retailer Amazon.com held back relative results.

In the health care sector, weak stock selection hampered relative performance. The Fund’s underweight position in biotech firm Gilead Sciences weighed on relative results as the stock outpaced the benchmark during the reporting period.

Stock selection in the informational technology sector also dampened relative returns. Within this sector, an underweight position in online social networking provider Facebook hurt relative results. An overweight position in management consulting firm Accenture (Ireland) and holdings of Taiwan Semiconductor (Taiwan) were also among the Fund’s top relative detractors.

Elsewhere, holdings of international food producer Danone (France) and wine and alcoholic beverage producer Pernod Ricard (France), an overweight position in household products maker Procter & Gamble held back relative

returns. Not owning shares of strong-performing aerospace company Boeing was another top relative detractor within this sector.

The Fund’s cash and/or cash equivalent position during the period also weakened relative performance. Under normal market conditions, the Fund strives to be fully invested and generally holds cash to buy new holdings and provide liquidity. In a period when equity markets rose, as measured by the Fund’s benchmark, holding cash hurt performance versus the benchmark, which has no cash position.

Stock selection and, to a lesser extent, an underweight position in the financials sector was a positive factor for relative performance. There were no individual securities within this sector that were among the portfolio’s top relative contributors for the period.

The Fund’s avoidance of the telecommunications services sector also aided relative results. Here, not owing shares of telecommunications services provider Verizon Communications supported relative performance as the stock posted weak results over the reporting period.

Elsewhere, holdings of life sciences supply company Thermo Fisher Scientific and automotive components supplier Johnson Controls, and the Fund’s avoidance of weak-performing tobacco company Phillip Morris International and beverage manufacturer The Coca-Cola Company, supported relative returns. An underweight position in shares of computer products and services provider International Business Machines (IBM), and overweight positions in global payments technology company VISA, industrial and consumer products manufacturer Danaher, industrial goods and metal fabrication company Precision Castparts and internet search giant Google, were also among the portfolio’s top relative contributors.

During the reporting period, the Fund’s relative currency exposure, resulting primarily from differences between the Fund’s and the benchmark’s exposures to holdings of securities denominated in foreign currencies, was another contributor to relative performance.

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

Massachusetts Financial Services Company

Investment Sub-Adviser

13

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Large Cap Growth Fund on December 31, 2003 would have grown to $13,125. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 1000 Growth Index, during the same period. A $10,000 investment in the Russell 1000 Growth Index on December 31, 2003 would have grown to $21,242.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Large Cap Growth Fund		23.09	%		14.37	%		2.76	%
Russell 1000 Growth Index		33.48	%		20.39	%		7.83	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Technology		27.6	%
Healthcare		17.0	%
Consumer Staples		15.4	%
Consumer Discretionary		14.8	%
Industrials		14.3	%
Financials		4.0	%
Materials & Processing		3.7	%
Energy		3.2	%
		100.0	%

²  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 Growth Fund

The Penn Series Large Core Growth Fund returned 37.91% for the twelve-month period ending December 31, 2013, compared to the 33.48% return for its benchmark, the Russell 1000 Growth Index, for the same time period.

In technology, the online professional networking company Linkedin Corporation reported strong revenue and earnings growth, above even the most aggressive estimates. The company also saw a re-acceleration of growth in member and usage data. With over 200 million members, the company has quickly become the largest, most effective offering of its kind and yet has only enlisted about 30% of the total professional workforce. Specific strength was also visible among credit card related IT services firms. Alliance Data Systems gained as the company’s Canadian loyalty business enjoyed improved business trends. The issuer of private label credit cards is less sensitive to overall consumer sentiment given the higher credit scores of its cardholders.

In the financials sector, Intercontinental Exchange completed the acquisition of NYSE/Euronext during the year. We purchased the stock in late 2012 soon after the merger was announced. Despite the recent surge, we continue to feel that valuation is reasonable given the firm’s significant growth potential and high quality management team. Additionally within the sector, capital markets exposed firms garnered investor attention in light of the aforementioned strong equity market performance. Affiliated Managers Group, a leading asset manager with a collection of boutique offerings and Ameriprise Financial, were both strong contributors during the year.

Opportunities in the consumer staples sector have historically been limited as many of these firms do not possess the organic growth profile that is a prerequisite for portfolio inclusion. We have identified select companies that have a strong growth profile and the ability to improve margins and gain market share. Constellation Brands is just such a holding and proved to be the largest contributor to quarterly returns. We purchased the stock with the thesis that Constellation’s acquisition of the U.S. distribution rights and production facilities of certain beer brands owned by Groupo Modelo, (including Corona) materially improved the growth profile of the company.

The main detractor from Fund performance was from stock specific issues in the materials space. W.R. Grace & Co. shares declined during the third quarter after the company announced lower than expected sales and

earnings. The decline was partly due to pricing and competitive issues in their value-added products in the refinery market. As a result, the company reduced future guidance and we eliminated the position for better opportunities.

Many investors are questioning the durability of the rally in U.S. equities. We acknowledge that several constructive developments — the resurgence of U.S. manufacturing, strength in durable goods, and a stronger housing market — are currently “in” equity valuations. Indeed, based on historical valuations, U.S. stocks still look very reasonably priced. In addition, we believe there are several potentially positive factors that are “not in” current equity valuations. The U.S. economy is gaining strength just at the time where many global economies are facing stiff challenges.

Independence Capital Management, Inc.

Investment Adviser

Wells Capital Management, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Large Core Growth Fund on August 25, 2008 would have grown to $14,924. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 1000 Growth Index, during the same period. A $10,000 investment in the Russell 1000 Growth Index on August 25, 2008 would have grown to $17,026.

15

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Large Core Growth Fund		37.91	%		19.38	%		7.76	%
Russell 1000 Growth Index		33.48	%		20.39	%		10.45	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

Portfolio Composition as of 12/31/13

	Percent of Total Investments3
Technology		29.3	%
Consumer Discretionary		24.8	%
Healthcare		16.6	%
Industrials		11.6	%
Financials		9.0	%
Energy		3.5	%
Consumer Staples		2.4	%
Materials & Processing		1.4	%
Telecommunications		1.4	%
		100.0	%

³  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

Large Cap Value Fund

The Penn Series Large Cap Value Fund returned 33.21% for the twelve-month period ending December 31, 2013, compared to the 32.53% return for its benchmark, the Russell 1000 Value Index, for the same time period.

During the first quarter, among the top contributors to Fund performance were Walgreen, Honeywell International, and Verizon Communications. 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 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. The most significant detractors from Fund performance from the start of the year through to the end of April 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.

The Fund had a very good year, not only in absolute performance, but also relative to the Benchmark and other large cap value managers. Strong stock selection in the health care and financials sectors were the main contributors to outperformance. A position in Forest Laboratories, which develops, manufactures and sells branded forms of ethical drugs, or those requiring a doctor’s prescription, contributed to performance. After a review of business operations in December, the CEO announced a new strategy, which includes a $500 million cost savings program, the acquisition of Saphris, a schizophrenia/bipolar disorder drug from Merck, an accelerated share repurchase program and the addition of a $1.2 billion debt offering.

Ameriprise Financial, a financial planning and services firm, performed well in the fourth quarter due to solid market growth and lower outflows from Columbia Management, an asset management firm acquired by Ameriprise Financial in 2010. In addition, outperformer Northrop Grumman, a global security company, reported strong earnings and plans to redistribute cash to shareholders.

Individual detractors from performance included FirstEnergy Corp, Transocean, and Philip Morris International. First Energy, a public utility holding company, announced at a November conference an acceleration of spending in their regulated transmission operations to be funded through an equity raise. This increase in spending sparked fears of a near term dividend cut in order to reduce future equity issuance, which pressured the stock lower. Transocean, an offshore drilling contractor, underperformed due to concerns regarding the deepwater rig cycle in the midst of burgeoning U.S. onshore production. We sold Transocean for Valero, which we believe has better risk-reward. The turnaround at Philip Morris, which produces, sells, distributes, and markets a wide range of branded cigarettes and tobacco products, is taking longer to materialize. We are concerned that some of the country-specific challenges will continue into 2014. Near-term results have been challenged by unemployment and tax policies globally. However, we feel the company is well positioned longer term with 73% and 71% of sales and operating income, respectively, coming from developing markets.

As we enter 2014, the values are not as wide spread as they were a few years ago, but there are still values to be found. We do not believe the market is overvalued. Earnings and cash flow generation from corporations have been very good, and we believe this will continue to be the case. Interest rates are likely to rise in the coming months due to the Federal Reserve (the Fed) reducing its bond purchasing program as the economy strengthens. We do not think a rise in rates will derail the economy, as the Fed is likely to gradually step away from its recent policies. Having said this, we do not expect the equity market to return another 20% in 2014, but returns can still be respectable.

The Fund maintains broad diversification and an eye toward the risks incurred in each of our holdings as well as the overall Portfolio. We believe managing risk is always important, and is particularly important now after such strong movement in the stock markets.

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

Independence Capital Management, Inc.

Investment Adviser

Loomis, Sayles & Company, LP

Investment Sub-Adviser

17

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Large Cap Value Fund on December 31, 2003 would have grown to $17,470. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 1000 Value Index, during the same period. A $10,000 investment in the Russell 1000 Value Index on December 31, 2003 would have grown to $20,774.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Large Cap Value Fund		33.21	%		17.21	%		5.74	%
Russell 1000 Value Index		32.53	%		16.67	%		7.58	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total  Investments2
Financials		25.3	%
Healthcare		14.0	%
Consumer Discretionary		12.5	%
Energy		11.9	%
Industrials		11.5	%
Technology		9.5	%
Consumer Staples		5.8	%
Materials & Processing		3.9	%
Utilities		2.9	%
Telecommunications		2.7	%
		100.0	%

²  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

Large Core Value Fund

The Penn Series Large Core Value Fund returned 29.78% for the twelve-month period ending December 31, 2013, compared to the 32.53% return for its benchmark, the Russell 1000 Value Index, for the same time period.

Following a strong performance in the equity markets in calendar year 2012, equities continued their ascent in calendar year 2013, posting robust gains during the period. Despite a backdrop of political gridlock resulting in mandatory government spending “sequester” cuts initiated during the first quarter and a 16-day government shutdown in October, positive economic trends supported further market appreciation as investors received generally encouraging economic data regarding housing, employment, and manufacturing.

Given the Fed’s unprecedented accommodative measures in place during 2013 and their broader impact on market performance, investors were keenly focused on monetary policy, attempting to ascertain the Fed’s intentions regarding the timing and magnitude of the eventual pullback in its easy-money policies. Equity markets retreated in both June and August with concerns of a possible Fed pullback, only to rebound sharply in July and September. When the Fed finally made its long anticipated move in mid-December, many equity investors shrugged off earlier fears and pushed the key U.S. indexes to record highs. Market participants were buoyed by the relatively modest bond purchase reduction, along with the Fed’s accompanying assurance that it would keep short-term interest rates near zero for an extended period.

During the year, the Fund underperformed its benchmark due to unfavorable stock selection, primarily in the information technology sector. The Fund’s larger-cap bias relative to the Index served as a headwind to performance as large-caps underperformed both mid and small-cap stocks during the period.

Within information technology, the Fund’s underweight exposure to Apple, which was added to the Index during the third quarter, detracted from relative performance. Overweight positions in IBM, EMC, and Oracle also weighed on relative results. In industrials, overweight exposure to global construction and mining equipment manufacturer Caterpillar detracted.

Elsewhere, positions in financials companies AvalonBay Communities, Public Storage, and Capital One Financial were a drag on relative performance. The Fund’s modest

cash position weighed on relative performance during a period in which the Index was up over 30%.

A modest underweight to the underperforming utilities sector aided relative performance along with effective stock selection results within the sector. The Fund’s top-contributing holding during the period was an overweight position in biopharmaceutical company Gilead Sciences. Other notable contributors included overweight positions in Boeing, American Express, Thermo Fisher Scientific, and an underweight to Exxon Mobil, which lagged the broader market.

Many investors viewed the Fed’s decision to begin scaling back its bond buying program as a vote of confidence in the U.S. economy. Perhaps even more important for the equity market outlook was the Fed’s pledge to keep short-term interest rates at historically low levels for the foreseeable future in an effort to ensure sustained economic growth.

In the coming months, investors will be monitoring both the pace and magnitude of additional Fed tapering steps. On the cautionary side, the Fed has expressed concern about the persistently low U.S. inflation rate. Continued low inflation or, worse, deflation could pose a threat to the U.S. economy. Investors will also be paying close attention to economic trends in Europe and Japan, as well as in China and other emerging markets that have been grappling with elevated inflation. Finally, developments in Washington could again impact equity markets in the period ahead.

Independence Capital Management, Inc.

Investment Adviser

Eaton Vance Management

Investment Sub-Adviser

19

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Large Core Value Fund on August 25, 2008 would have grown to $13,519. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 1000 Value Index, during the same period. A $10,000 investment in the Russell 1000 Value Index on August 25, 2008 would have grown to $15,628.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Large Core Value Fund		29.78	%		13.13	%		5.79	%
Russell 1000 Value Index		32.53	%		16.67	%		8.70	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

Portfolio Composition as of 12/31/13

	Percent of Total Investments3
Financials		31.1	%
Energy		14.7	%
Healthcare		14.3	%
Industrials		11.8	%
Technology		8.4	%
Consumer Discretionary		6.4	%
Consumer Staples		4.4	%
Utilities		3.9	%
Materials & Processing		3.1	%
Telecommunications		1.9	%
		100.0	%

³  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

Index 500 Fund

The Penn Series Index 500 Fund returned 31.87% for the twelve-month period ending December 31, 2013, compared to the 32.39% return for its benchmark, the S&P 500 Index, for the same time period.

Relieved by the orderly mitigation of a fearsome fiscal retrenchment in the U.S., global equities surged as trading opened in 2013. The turn of the calendar brought renewal of risk appetites and resumption of investment flows, fueled by fresh optimism that economic activity might steadily reaccelerate through the course of the year. Continued weakness in the yen signaled the approach of new dynamism at the Bank of Japan, while the euro rallied progressively to one-year highs on further decreases of sovereign financial strains. Growth prospects looked buoyant enough to inspire visions of a great rotation out of bonds and into equities.

Despite electoral indecision in Italy and banking turmoil in Cyprus during the opening months of 2013, global financial markets rode renascent optimism on U.S. and Japanese growth to broadly positive investment performance. With weak U.S. employment figures reassuring investors that any retracement of monetary accommodation remained a distant prospect, both bonds and stocks appreciated nicely. The watershed event of the second quarter arrived on May 22, when U.S. Federal Reserve Chairman Ben Bernanke suggested during congressional testimony that asset purchases might slow if economic conditions continued to improve.

During the third quarter, affection for the U.S. dollar began slipping well before the Fed failed to follow through with reduced accommodation, allowing energy and metal prices to lead commodities to their best quarter of 2013. While the approach of potentially bitter U.S. fiscal negotiations brought September to a cautious close, the month and the quarter wound up with plenty of positive returns. Perhaps the most notable result was outperformance of non-U.S. assets, which have recently regained considerable relative ground after lagging starkly during the first half of the year.

As the year came to a close, the developed equity markets chalked up one of their best years in recent memory. In the U.S., the Dow Jones Industrial Average scored its largest annual gain since 1995. Japan’s Nikkei Stock Average surged more than 50% in yen terms, a milestone last achieved in 1972. Stocks overcame early December jitters to finish the year as strong as it had begun, capping 2013

with four consecutive months of positive performance. On December 18, investors took kindly to the formal Fed decision to slow asset purchases, as the associated statement implied that actual rate hikes may be delayed even longer. The dovish tone served to corroborate the resiliently accommodative stance of all the major central banks, which had already drawn fresh attention in early November, when the European Central Bank cut rates quickly in response to a starkly lower inflation reading for October. Share prices had little choice but to flourish against the backdrop of bountiful financial conditions and restrained volatility.

Independence Capital Management, Inc.

Investment Adviser

SSgA Fund Management, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Index 500 Fund on December 31, 2003 would have grown to $20,097. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the S&P 500 Index, during the same period. A $10,000 investment in the S&P 500 Index on December 31, 2003 would have grown to $20,424.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Index 500 Fund		31.87	%		17.57	%		7.23	%
S&P 500 Index		32.39	%		17.94	%		7.41	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

21

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Technology		18.7	%
Financials		16.2	%
Healthcare		12.9	%
Consumer Discretionary		12.5	%
Industrials		10.9	%
Energy		10.3	%
Consumer Staples		9.8	%
Materials & Processing		3.5	%
Utilities		2.9	%
Telecommunications		2.3	%
		100.0	%

²  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

Mid Cap Growth Fund

The Penn Series Mid Cap Growth Fund returned 36.72% for the twelve-month period ending December 31, 2013, compared to the 35.74% return for its benchmark, the Russell Midcap Growth Index, for the same time period.

Despite all of the noise in 2013, which included the U.S. government shutdown, tapering fears, the threat of military action in Syria, and the small European country of Cyprus looking for a bailout, markets showed tremendous resiliency. Despite all of the macroeconomic concerns, investors chose to focus on the prospects of a growing global economy led by the U.S. In fact, U.S. corporate earnings increased for a fourth consecutive year. For 2013, all global indices, with the exception of emerging markets, posted strong gains led by the S&P 500 Index, which had its best year since 1997.

As for the Fund, the financial sector led performance on both a relative and absolute basis for 2013 followed by the consumer discretionary and health care sectors. Relative outperformance in the financial sector was a result of strong stock selection such as overweight positions in Cardtronics, IntercontinentalExchange and Affiliated Managers Group; we continue to own all three companies. The consumer discretionary sector contributed to overall performance as well due to overweight positions in Internet services and airlines such as LinkedIn, HomeAway and Delta Air Lines as a result we continue to own all three companies. The bio-tech industry generated significant gains for most of 2013 aside from some underperformance due to profit taking in the fourth quarter. Top performers on a relative basis were NPS Pharmaceuticals, Onyx Pharmaceuticals and Regeneron Pharmaceuticals.

The producer durables sector was by far the largest detractor to relative performance. The main culprit was Ultratech whose stock came under severe pressure during the second quarter as the semiconductor space came to a halt due to a new node design used in smartphones and tablets. With lack of clarity as to which design industry leaders such as Apple and Qualcomm would choose, all companies in this space were punished. We view any weakness in price as a buying opportunity and continue to hold the stock. Toll Brothers was another holding that weighed on relative performance as the stock took investors for a rollercoaster ride over the past 12 months. The stock suffered after lowering 2013 guidance earlier in the year but was a top contributor in the fourth quarter as confidence in the overall economy has increased along

with clarity that interest rates should remain low for the time being. Another underperformer was Joy Global, a manufacturer of mining equipment for the extraction of coal, copper, iron ore, oil sands, gold, and other minerals. We sold the stock mid-year after a negative earnings revision and poor performance in the first half of 2013.

While we do not expect equity markets to replicate the 2013 success achieved by the S&P 500 Index, we do believe equity markets will continue to move higher in 2014 supported by an expanding global economy and an accommodative fiscal policy by global central banks. In the U.S., the consumer appears to be gaining confidence with improvements occurring in the labor market and an uptick in GDP growth. Europe continues to rebound from its sovereign debt issues and looks to stabilize its economic footprint in 2014. In China, we expect to see sustainable growth in 2014 as the country looks to build its economy on domestic consumer demand and less on its export business. We believe equities will be an appealing investment in 2014 as investors continue to shift exposures out of bonds and into stocks in light of a rising interest rate environment.

Independence Capital Management, Inc.

Investment Adviser

Turner Investments L.P.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Mid Cap Growth Fund on December 31, 2003 would have grown to $21,466. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell Midcap Growth Index, during the same period. A $10,000 investment in the Russell Midcap Growth Index on December 31, 2003 would have grown to $25,405.

23

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Mid Cap Growth Fund		36.72	%		20.18	%		7.94	%
Russell Midcap Growth Index		35.74	%		23.37	%		9.77	%

¹ The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Consumer Discretionary		25.1	%
Technology		22.5	%
Healthcare		13.6	%
Industrials		10.1	%
Financials		9.1	%
Materials & Processing		8.1	%
Consumer Staples		5.5	%
Energy		5.0	%
Telecommunications		1.0	%
		100.0	%

² 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

Mid Cap Value Fund

The Penn Series Mid Cap Value Fund returned 36.20% for the twelve-month period ending December 31, 2013, compared to the 33.46% return for its benchmark, the Russell Midcap Value Index, for the same time period.

Throughout the past year the backdrop for equity investing was very favorable, given low rates of inflation, accommodative monetary policy with interest rates at historically low levels, a slowly growing but expanding domestic economy and stabilization (for the most part) of international economies.

The recent announcement by the Fed to reduce its purchases of treasuries and mortgage securities by $5 billion each, validated, in our opinion, that the domestic economic recovery is self-sustaining. Recent economic indicators such as durable goods orders, consumer spending, payrolls, and housing data confirm this point of view. It is also important to point out that the Fed is only tapering and is expected to continue to grow its balance sheet during 2014. At the same time, the Fed also committed to keeping the Federal Funds rate near 0% for an extended period of time. As we look ahead to 2014, monetary policy will remain a tailwind and continues to be a positive factor for equity investing. While the equity markets are way overdue for a meaningful correction after almost two years without one, it is rare to have a bear market with prolonged accommodative monetary policy and economic activity accelerating.

For the year, the Fund’s outperformance was led by last year’s underperformers (primarily Safeway and Best Buy) bouncing back from very depressed levels, based on improving financial results and corporate actions. The Fund also benefited from takeovers in Virgin Media, NV Energy and BMC Software. Our overweight position in the consumer sectors and our underweight in the utilities sector also added to performance. Detracting from performance during the year was Nuance, which continued to report disappointing earnings. Agrium, Brinks, and Cablevision also hurt performance during the year. We sold our positions in these companies after the investment thesis had changed. Our underweight in the financial services sector also hurt our relative performance.

It appears that U.S. economic growth has finally reached the point where monetary stimulus can be reduced and eventually reversed. Stronger economic activity has led to higher interest rates, ending the multi-year run in the bond market. With less risk to the global economies, money has

moved back into the equity markets, which has had above trend performance over the last several years. As a result, equity valuations have recovered to more normal valuation levels and the value cushion has been substantially reduced. However, we believe that given the recent sluggishness in earnings growth the merger and acquisition market could accelerate during 2014 and some of our companies could become targets for activist investors or merger overtures which could benefit the Fund. Unlike the last few years, where we were concerned about the sustainability of economic activity and deflation, we are now more concerned about an over acceleration of economic growth to the point where inflation accelerates and the Fed has to reverse course in a much more meaningful way than has currently been announced. This could lead to a spike in interest rates and, in our opinion, an end to the current bull market.

Independence Capital Management, Inc.

Investment Adviser

Neuberger Berman Management, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Mid Cap Value Fund on December 31, 2003 would have grown to $22,930. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell Midcap Value Index, during the same period. A $10,000 investment in the Russell Midcap Value Index on December 31, 2003 would have grown to $26,552.

25

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Mid Cap Value Fund		36.20	%		22.14	%		8.65	%
Russell Midcap Value Index		33.46	%		21.16	%		10.25	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Industrials		23.7	%
Technology		18.3	%
Financials		15.2	%
Consumer Discretionary		10.7	%
Health Care		7.9	%
Consumer Staples		7.4	%
Utilities		7.1	%
Energy		6.0	%
Materials & Processing		3.7	%
		100.0	%

²  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.

26

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Core Value Fund

The Penn Series Mid Core Value Fund returned 29.15% for the twelve-month period ending December 31, 2013, compared to the 33.46% return for its benchmark, the Russell Midcap Value Index, for the same time period.

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 and 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. 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, 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. Contributing to relative performance in April was positive stock selection within the health care sector.

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.

During the period of May through year end, the Fund received positive results in absolute terms from eight of the 10 sectors in which it was invested. Relative to the benchmark, positions in the materials and telecommunication services sectors detracted. The Fund benefited from positions in the financials and utilities sectors.

In materials, an underweight position relative to the benchmark and security selection hampered results. More specifically, the Fund was hampered by its modest exposure to metals and mining stocks, which advanced during the period. An overweight position in Newmont Mining, a gold producer, detracted. A sharp drop in gold prices during 2013 seemed likely to negatively impact Newmont’s profitability and free-cash flow.

In telecommunication services, an overweight position relative to the benchmark in CenturyLink dampened

relative performance. This high-yielding security underperformed during the period, as lower-yielding assets outperformed. In addition, CenturyLink reported weaker-than-expected results, as its growth business is not ramping up as fast as expected and its legacy businesses have contracted more quickly than expected.

In industrials, an overweight position in Republic Services detracted from relative performance. Although the waste management company reported solid third-quarter results and a positive outlook for the rest of 2013, it faces a number of challenges in 2014, including flat pricing — many of its contracts with municipalities link pricing to inflation — and higher cash taxes if bonus depreciation benefits expire. The Fund was also hindered by an overweight position in ADT, a provider of home security systems. Competition appears to be increasing, particularly from telecommunications companies, which may lead to higher churn and subscriber acquisition costs. The investment team believes the impact on ADT will prove minimal given the company’s strength in these very fragmented markets.

In the financials sector, an underweight position in REITs contributed positively to relative returns. In general, valuation of REITs has appeared unattractive. REITs have benefited from the low interest-rate and credit-spread environment. As interest rates increased, the REITs industry underperformed. The Fund also benefited from its underweight position in the utilities sector, which posted the second-weakest performance of the benchmark during the period since inception.

The team continues to follow its disciplined, bottom-up process, selecting companies one at a time for the portfolio. As of December 31, 2013, the team sees opportunity in consumer staples, health care, industrials, and energy, reflected by the Fund’s overweight positions in these sectors relative to the benchmark. Fundamental analysis and valuation work have led to smaller relative weightings in financials, consumer discretionary, materials, and information technology 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, Inc.

Investment Sub-Adviser

27

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Mid Core Value Fund on December 31, 2003 would have grown to $20,964. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell Midcap Value Index, during the same period. A $10,000 investment in the Russell Midcap Value Index on December 31, 2003 would have grown to $26,552.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Mid Core Value Fund		29.15	%		17.65	%		7.68	%
Russell Midcap Value Index		33.46	%		21.16	%		10.25	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Financials		24.5	%
Industrials		14.2	%
Health Care		12.5	%
Utilities		10.6	%
Technology		9.3	%
Energy		8.5	%
Consumer Staples		6.9	%
Consumer Discretionary		6.1	%
Miscellaneous		3.2	%
Materials & Processing		2.8	%
Telecommunications		1.4	%
		100.0	%

²  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.

28

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

SMID Cap Growth Fund

The Penn Series SMID Cap Growth Fund returned 42.84% for the twelve-month period ending December 31, 2013, compared to the 40.65% return for its benchmark, the Russell 2500 Growth Index, for the same time period.

Security selection in the information technology sector contributed significantly to annual returns. Specific strength was visible among internet software and services firms, especially those that were exposed to an improving real estate market. Our position in Zillow added to annual performance as the rebound in the housing market helped the company’s site traffic rise materially. Zillow, which operates the largest online residential real estate marketplace, has moved to an advertising model that charges realtors per number of page views and has recently started to gain traction in the rental housing market. Within the commercial real estate market, Co-Star Group, a provider of market analytics and comparable sales information, enjoyed a strong return as funding for transactions improved throughout the year. Additionally within the sector, Alliance Data Systems rose sharply after the company posted better than expected earnings growth. The issuer of private label credit cards continues to diversify its revenue stream. Finally, within the software industry Service Now, which operates a cloud-computing based solution for IT service management, reported a dramatic rise in revenue that was well ahead of consensus estimates. The company is quickly growing its customer base as it faces very little competition and has been successful in providing significant cost savings compared to the traditional IT “helpdesk” model.

Security selection within the industrial sector also contributed to annual performance. Railroad Kansas City Southern rose sharply in 2013 as the company continues to benefit from stronger North American manufacturing activity via its rail lines in and out of Mexico. Additionally, the company has benefitted from the increased transportation of oil via rail. The majority of the shale regions in the U.S. do not have pipeline connectivity so the oil found in these areas is transported via rail car. Within the airline industry, Copa Holdings continues to grow rapidly as it expands its fleet, adds new routes and enjoys very strong customer demand. Shares of the airline rose sharply during the year.

Positioning in consumer discretionary modestly detracted from relative returns in 2013. Specific weakness was visible in certain specialty retailers. We purchased shares of Ulta Salon during the third quarter. Our thesis centered on a

new management team that was focused on brand development and continued new store openings. After posting a strong second quarter, their third quarter results came in below expectations due to lighter store traffic. The company also guided future results lower and suspended long term guidance. Given the reduced earnings visibility and the lack of adequate explanation as to store traffic patterns, we exited the stock for better opportunities. Also within the space, our position in Chico’s FAS weighed on returns after the company tempered its guidance for future growth.

As we move into 2014, many investors are questioning the durability of the rally in U.S. equities. While our view remains optimistic for U.S. equities, we are keeping a steady balance in the portfolios. With much of the recent rally being driven by multiple expansions, the superior earnings growth profile of the Fund has yet to be fully valued. The overall backdrop remains constructive, yet the Fund stands to benefit as the market shifts into a more discerning phase. So we are not making significant shifts to active risk exposures in the Fund. We are executing our process with consistency and constructing portfolios one stock at a time based on a bottom-up conviction.

Independence Capital Management, Inc.

Investment Adviser

Wells Capital Management, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the SMID Cap Growth Fund on August 25, 2008 would have grown to $19,639. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 2500 Growth Index, during the same period. A $10,000 investment in the Russell 2500 Growth Index on August 25, 2008 would have grown to $18,381.

29

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
SMID Cap Growth Fund		42.84	%		24.75	%		13.43	%
Russell 2500 Growth Index		40.65	%		24.03	%		12.04	%

¹ The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

² The Fund’s inception date was August 25, 2008.

Portfolio Composition as of 12/31/13

	Percent of Total Investments3
Industrials		25.2	%
Technology		24.0	%
Consumer Discretionary		20.3	%
Healthcare		14.8	%
Consumer Staples		4.9	%
Financials		4.3	%
Energy		3.6	%
Telecommunications		1.6	%
Materials & Processing		1.3	%
		100.0	%

³  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

SMID Cap Value Fund

The Penn Series SMID Cap Value Fund returned 38.00% for the twelve-month period ending December 31, 2013, compared to the 33.32% return for its benchmark, the Russell 2500 Value Index, for the same time period.

The last three months of 2013 marked the fourth consecutive quarter of positive returns for smaller cap equities, capping the best year in a decade for the Russell 2500 Value Index. This continued a broader theme that began to emerge approximately 18 months ago — the U.S. economy is on the mend. As 2013 came to a close, investor confidence was boosted by the federal budget agreement and declining unemployment numbers.

As was the case in the latter half of 2012, investors began to revalue stocks in 2013 based on company-specific fundamentals, creating a more favorable environment for our value investing approach. Against this backdrop, the Fund significantly outperformed its benchmark, the Russell 2500 Value Index, for the year. The premium was driven primarily by strong stock selection, which was positive across most sectors. Our holdings in the financial and energy sectors were the greatest contributors. The common thread across many of these successful investments was the fact that these companies were proactive in their efforts to unlock shareholder value. For example, commercial lender CapitalSource agreed to be acquired by regional bank PacWest. Other contributors included Micron Technology, SunEdison, Cimarex Energy and Men’s Wearhouse.

Overall by sector, our industrial resources and consumer staples holdings detracted. On an individual stock basis some of our more defensive holdings, including real estate company LTC Properties, were among the largest detractors in 2013. Additional detractors included Cliffs Natural Resources, AU Optronics, General Cable and Jabil Circuit.

Even after outperforming bonds dramatically in 2013, equity valuations remain decidedly more attractive into the New Year. The Fund continues to have provocative overweights in cyclical industries. In each case, our positioning decisions focus on company-specific perspectives rather than a more bullish view of the broader economy.

Independence Capital Management, Inc.

Investment Adviser

AllianceBernstein, LP

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the SMID Cap Value Fund on August 25, 2008 would have grown to $19,241. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 2500 Value Index, during the same period. A $10,000 investment in the Russell 2500 Value Index on August 25, 2008 would have grown to $17,306.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
SMID Cap Value Fund		38.00	%		22.99	%		13.00	%
Russell 2500 Value Index		33.32	%		19.61	%		10.79	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

31

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 12/31/13

	Percent of Total Investments3
Financials		32.0	%
Consumer Discretionary		21.3	%
Technology		13.6	%
Industrials		10.8	%
Materials & Processing		8.3	%
Energy		5.4	%
Utilities		4.9	%
Healthcare		2.9	%
Consumer Staples		0.8	%
		100.0	%

³  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.

32

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Growth Fund

The Penn Series Small Cap Growth Fund returned 37.60% for the twelve-month period ending December 31, 2013, compared to the 43.30% return for its benchmark, the Russell 2000 Growth Index, for the same time period.

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 as did the holding in WisdomTree Investments.

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.

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.

Strong stock selection in the financials and consumer discretionary sectors were the largest contributors to relative results from May through to year end. Our stock selection in the industrials sector detracted from relative performance, as did the Fund’s cash position.

Euronet Services was the largest contributor to the Fund’s performance during the period. Euronet owns the infrastructure that consumers in Europe use to make payments for their prepaid mobile phone service. We believe this business creates a steady revenue stream as customers continue to use the infrastructure to make payments to continue their phone service. Finally, Euronet Services also operates a money transfer business, which saw improved results for money transfers in the U.S.-Mexico corridor. The stock was up significantly in the second quarter as all three business units performed well.

Broadridge Financial Solutions was another top contributor to the performance. Broadridge provides investor communications and technology-driven solutions to banks, broker-dealers, mutual funds and corporations globally. Among a number of services, the company is responsible for distributing proxy information on behalf of corporations to a wide network of broker dealers, financial advisors and mutual funds. We believe the wide network Broadridge has set up among these investor bases is a competitive advantage for the company. The stock was up after the SEC approved fees for Broadridge’s proxy services at a rate higher than the market had expected.

RealD was our largest detractor. The company makes 3-D technology for the theater industry. The portion of total box office revenues going to 3-D movies has been falling, however, which has weighed on the stock. We are monitoring the position due to those concerns.

Sodastream was another large detractor. The company creates products that allow consumers to make their own carbonated beverages at home at a much lower cost than buying those drinks at a grocery or convenience store. U.S. growth has been slower than expected in recent months, which has negatively impacted the stock, but we continue to have conviction in the company’s long-term growth potential.

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

Independence Capital Management, Inc.

Investment Adviser

Janus Capital Management LLC

Investment Sub-Adviser

33

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Small Cap Growth Fund on December 31, 2003 would have grown to $15,115. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 2000 Growth Index, during the same period. A $10,000 investment in the Russell 2000 Growth Index on December 31, 2003 would have grown to $24,571.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Small Cap Growth Fund		37.60	%		19.57	%		4.22	%
Russell 2000 Growth Index		43.30	%		22.58	%		9.41	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Technology		32.1	%
Industrials		21.4	%
Consumer Discretionary		16.0	%
Healthcare		15.2	%
Financials		6.5	%
Energy		6.0	%
Materials & Processing		1.3	%
Consumer Staples		1.2	%
Telecommunications		0.3	%
		100.0	%

²  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.

34

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Value Fund

The Penn Series Small Cap Value Fund returned 38.93% for the twelve-month period ending December 31, 2013, compared to the 34.52% return for its benchmark, the Russell 2000 Value Index, for the same time period.

In the Fund for the year, investments in the financials and materials sectors contributed positively to results, whereas the consumer discretionary and health care sectors detracted from performance.

For the year, within the financials sector, American Equity Investment Life Holding was a top contributor to relative returns. During the year, American Equity, a leading underwriter of fixed index and fixed rate annuities, reported earnings supported by stronger annuity sales and a rise in assets under management. Shares continued to gradually trade higher throughout the fourth quarter as investors were positive on third quarter earnings which exceeded expectations. As American Equity is highly levered to an improving U.S. economy, the company appears to be well positioned to benefit in a rising interest rate environment and we’re positive on its opportunity to take advantage of a potentially steepening yield curve.

During the year, we initiated a position in Esterline Technologies, a specialized manufacturer of engineered technology serving the aerospace and defense markets. We are positive on the new management team’s opportunity to build shareholder value, specifically by improving internal operations and integrating recent acquisitions. As a result, we believe the company has significant opportunities for operating margin expansion, and additionally we believe that the shares are attractive by a number of different valuation metrics. We also started a position in Spectrum Brands, a consumer products company which manufacturers various items ranging from hearing aid batteries and portable lighting to pet supplies and bug repellants. Spectrum has been steadily improving its balance sheet through debt reduction and lower interest expense, and we believe this should drive higher free cash flow and capital returns to shareholders going forward.

During the year, we exited our position in Ocwen Financial, a financial services company specializing in the servicing of non-prime mortgage loans, and a stock that has performed well in the portfolio over the past several years. Overall our fundamental thesis, supported by the company’s unique low-cost business model, its commitment to efficiency, and above-average return profile, remained intact; however,

strict to our discipline, we exited the stock after its strong performance run and appreciation in market capitalization. We also sold out of our position in EPR Properties, a real estate investment trust (REIT) focused on entertainment related properties. Although EPR Properties has a premium yield and trades at a discount compared to the sector overall, we exited the position in order to reduce our exposure to yield-oriented names as we believe they may underperform in rising interest rate environments. We currently see more attractive opportunities in more economically sensitive REITs, and thus have transitioned capital into these types of stocks.

Despite strong 2013 performance, we believe U.S. equities have further upside as the U.S. economy accelerates and as real earnings growth serves as a fundamental driver of performance going forward. We believe that U.S. corporate fundamentals remain solid, evidenced by both healthy balance sheets and earnings resilience, and should provide companies with a number of options to increase shareholder value. While we acknowledge that the potential for headwinds remain, such as geopolitical risks associated with developments in the Middle East, or political gridlock in Washington D.C., we ultimately remain constructive on the direction of U.S. equity markets, and believe that there are ample tailwinds including the strengthening U.S. housing and employment markets, which should continue to provide a favorable backdrop for equities.

Independence Capital Management, Inc.

Investment Adviser

Goldman Sachs Asset Management, LP

Investment Sub-Adviser

35

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Small Cap Value Fund on December 31, 2003 would have grown to $25,265. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 2000 Value Index, during the same period. A $10,000 investment in the Russell 2000 Value Index on December 31, 2003 would have grown to $22,836.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Small Cap Value Fund		38.93	%		21.23	%		9.71	%
Russell 2000 Value Index		34.52	%		17.64	%		8.61	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total  Investments2
Financials		37.2	%
Industrials		14.0	%
Technology		10.7	%
Consumer Discretionary		10.0	%
Materials & Processing & Processing		7.3	%
Energy		6.8	%
Healthcare		5.7	%
Utilities		5.6	%
Consumer Staples		2.1	%
Telecommunications		0.6	%
		100.0	%

²  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.

36

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Index Fund

The Penn Series Small Cap Index Fund returned 38.13% for the twelve-month period ending December 31, 2013, compared to the 38.82% return for its benchmark, the Russell 2000 Index, for the same time period.

Relieved by the orderly mitigation of a fearsome fiscal retrenchment in the U.S., global equities surged as trading opened in 2013. The turn of the calendar brought renewal of risk appetites and resumption of investment flows, fueled by fresh optimism that economic activity might steadily reaccelerate through the course of the year. Continued weakness in the yen signaled the approach of new dynamism at the Bank of Japan, while the euro rallied progressively to one-year highs on further decreases of sovereign financial strains. Growth prospects looked buoyant enough to inspire visions of a great rotation out of bonds and into equities.

Despite electoral indecision in Italy and banking turmoil in Cyprus during the opening months of 2013, global financial markets rode renascent optimism on U.S. and Japanese growth to broadly positive investment performance. With weak U.S. employment figures reassuring investors that any retracement of monetary accommodation remained a distant prospect, both bonds and stocks appreciated nicely. The watershed event of the second quarter arrived on May 22, when U.S. Federal Reserve Chairman Ben Bernanke suggested during congressional testimony that asset purchases might slow if economic conditions continued to improve.

During the third quarter, affection for the U.S. dollar began slipping well before the Fed failed to follow through with reduced accommodation, allowing energy and metal prices to lead commodities to their best quarter of 2013. While the approach of potentially bitter U.S. fiscal negotiations brought September to a cautious close, the month and the quarter wound up with plenty of positive returns. Perhaps the most notable result was outperformance of non-U.S. assets, which have recently regained considerable relative ground after lagging starkly during the first half of the year.

As the year came to a close, the developed equity markets chalked up one of their best years in recent memory. In the U.S., the Dow Jones Industrial Average scored its largest annual gain since 1995. Japan’s Nikkei Stock Average surged more than 50% in yen terms, a milestone last achieved in 1972. Stocks overcame early December jitters to finish the year as strong as it had begun, capping 2013

with four consecutive months of positive performance. On December 18, investors took kindly to the formal Fed decision to slow asset purchases, as the associated statement implied that actual rate hikes may be delayed even longer. The dovish tone served to corroborate the resiliently accommodative stance of all the major central banks, which had already drawn fresh attention in early November, when the European Central Bank cut rates quickly in response to a starkly lower inflation reading for October. Share prices had little choice but to flourish against the backdrop of bountiful financial conditions and restrained volatility.

Independence Capital Management, Inc.

Investment Adviser

SSgA Fund Management, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Small Cap Index Fund on August 25, 2008 would have grown to $16,987. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the Russell 2000 Index, during the same period. A $10,000 investment in the Russell 2000 Index on August 25, 2008 would have grown to $17,024.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Small Cap Index Fund		38.13	%		19.39	%		10.40	%
Russell 2000 Index		38.82	%		20.08	%		10.45	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

37

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 12/31/13

	Percent of Total Investments3
Financials		22.6	%
Technology		17.9	%
Industrials		14.5	%
Consumer Discretionary		13.8	%
Healthcare		13.2	%
Energy		5.5	%
Materials & Processing		4.9	%
Consumer Staples		3.8	%
Utilities		3.0	%
Telecommunications		0.8	%
		100.0	%

³  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.

38

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Developed International Index Fund

The Penn Series Developed International Index Fund returned 21.08% for the twelve-month period ending December 31, 2013, compared to the 23.29% return for its benchmark, the MSCI EAFE Index, for the same time period.

The turn of the calendar brought renewal of risk appetites and resumption of investment flows, fueled by fresh optimism that economic activity might steadily reaccelerate through the course of the year. Continued weakness in the yen signaled the approach of new dynamism at the Bank of Japan, while the euro rallied progressively to one-year highs on further reductions of sovereign financial strains. Even in January, the troubles of the yen began to infect emerging market currencies, and by early February, equity traders could no longer neglect the burden of an appreciated euro. Graft allegations in Spain and unsettled elections in Italy made it even easier for European shares to surrender momentum, while an accommodative Bank of England and a credit downgrade of the UK weighed heavily on the British pound. A revived U.S. dollar and worries over tighter property rules in China took their toll on commodity prices, but sentiment stabilized in early March with the affirmation of an official 7.5% objective for Chinese growth in 2013.

Despite electoral indecision in Italy and banking turmoil in Cyprus during the opening months of 2013, global financial markets rode renewed optimism on U.S. and Japanese growth to broadly positive investment performance. That constructive momentum carried easily into April, as the formal announcement of aggressive policy measures in Japan delivered an additional boost to the economic outlook and falling bond yields on the eurozone periphery relieved concerns about regional financial contagion. With weak U.S. employment figures reassuring investors that any retracement of monetary accommodation remained a distant prospect, both bonds and stocks appreciated nicely. Commodities faltered, however, after Chinese growth data failed to meet expectations, and the arrival of much firmer U.S. payroll data in early May achieved little more than stabilization for metals prices. But the better jobs numbers jolted bond yields from their slumber, with Japanese government debt selling off abruptly when the yen sank to four-year lows against the U.S. dollar.

Undergirded by the ongoing support of major central banks, financial assets worldwide delivered healthy returns across a broad front during the third quarter of 2013. Muted inflation pressures and signs of stability in Europe

helped equity valuations ratchet higher, outweighing mixed earnings prospects and heightened tensions in the Middle East. The most notable result was outperformance of non-US assets, which have recently regained considerable relative ground after lagging starkly during the first half of the year.

Casually defying uninspired global activity trends and persistent retrenchment in profit estimates, developed equity markets during 2013 chalked up one of their best years in recent memory. In the US, the Dow Jones Industrial Average scored its largest annual gain since 1995. Japan’s Nikkei Stock Average surged more than 50% in yen terms, a milestone last achieved in 1972. Share prices around the world rallied hard as 2013 began, and the MSCI World Index never once revisited its 2012 close. Stocks overcame early December jitters to finish the year as strong as it had begun, capping 2013 with four consecutive months of positive performance.

Independence Capital Management, Inc.

Investment Adviser

SSgA Fund Management, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Developed International Index Fund on August 25, 2008 would have grown to $12,343. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the MSCI EAFE Index, during the same period. A $10,000 investment in the MSCI EAFE Index on August 25, 2008 would have grown to $12,844.

39

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Developed International Index Fund		21.08	%		11.54	%		4.01	%
MSCI EAFE Index		23.29	%		12.96	%		4.78	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

Portfolio Composition as of 12/31/13

	Percent of Total Investments3
Japan		21.1	%
United Kingdom		19.2	%
France		9.4	%
Germany		9.4	%
Switzerland		9.4	%
Australia		7.4	%
Netherlands		5.0	%
Spain		3.3	%
Sweden		3.2	%
Hong Kong		2.9	%
Italy		2.0	%
Singapore		1.4	%
Belgium		1.2	%
Denmark		1.1	%
Finland		0.9	%
Norway		0.7	%
Ireland		0.6	%
Israel		0.4	%
Luxembourg		0.4	%
Austria		0.3	%
Portugal		0.2	%
Bermuda		0.1	%
Guernsey		0.1	%
Jersey		0.1	%
Macau		0.1	%
New Zealand		0.1	%
		100.0	%

³  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.

40

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

International Equity Fund

The Penn Series International Equity Fund returned 5.97% for the twelve-month period ending December 31, 2013, compared to the 23.29% return for its benchmark, the MSCI EAFE Index, for the same time period.

Relative performance during the year was negatively affected by our out-of-index holdings in India and stock selection in the United Kingdom. Performance was supported by our lack of exposure to Singapore and our stock selection in Hong Kong.

On a sector level, the Fund’s stock selection in energy, combined with its underweight exposure to the sector, contributed positively to relative performance. Detracting from results for the year was our selection of Financials and Materials names.

We find it helpful to revisit constantly the foundations on which we invest. Our investment philosophy is built on the premise that long-term returns are driven by the underlying profit growth of the companies we invest in. We believe an important driver of growth into the future will be derived from the creation of wealth and national assets across the Emerging Markets (EM).

Of course, identifying individual franchises in which to invest involves a lot more than just thinking about broad trends. The bulk of our research team’s effort involves assessing individual firms’ micro-fundamentals and management quality; not every company selling to the EM consumer is going to do well. But, all else being equal, leverage to the growth of EM middle classes should be a positive, not a negative.

In our view, the market may be getting ahead of itself in assuming that a strong European recovery is around the corner. Since the summer of 2012 — when many commentators were predicting the break-up of the euro — the sentiment has swung to the other extreme. Discussions of the system’s structural flaws, such as high unemployment in the periphery, German reliance on exports to Asia and arguably inappropriate monetary policy elsewhere, seem to have stopped. While the “muddling through” scenario seems the most likely for the eurozone, it will probably come at the cost of slower growth for an extended period. Without a substantial improvement in credit availability, it would be irresponsible, in our view, to assume a sharp economic recovery in the eurozone.

In the fourth quarter, relative performance was negatively affected by our stock selection in Switzerland and France. Performance was supported by our underweight exposures to Japan and Brazil. Our stock selection in Brazil also contributed positively to relative results. The strategy’s stock selection in energy and consumer discretionary contributed positively to relative performance for the fourth quarter, while our selection of materials and financials names detracted.

A new position for the Fund during the quarter was Roche Holding in the health care sector. Roche is a leading pharmaceutical company with a dominant oncology franchise. The company traditionally has been quite productive in terms of new drug development, driven by a scientific culture and strong commitment to R&D. In addition, Roche’s stronghold in cancer gives it better understanding of the disease biology, while the in-house diagnostic business provides synergies with drug development. Over the past year, Roche has made significant progress in introducing next generation products to extend its core Herceptin and Rituxan franchises, providing greater visibility into the company’s ability to grow its base business longer term. Roche is also a leader in the emerging class of immu-notherapy drugs, which has the potential to become another major franchise for the company.

Names that contributed to relative performance include: Sands China, Core Laboratories, Rolls-Royce Holdings, HDFC Bank and Persimmon. Names that detracted from relative performance were: UBS, Fresnillo, Goldcorp, Bureau Veritas and Newcrest Mining.

Independence Capital Management, Inc.

Investment Adviser

Vontobel Asset Management, Inc.

Investment Sub-Adviser

41

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the International Equity Fund on December 31, 2003 would have grown to $24,419. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the MSCI EAFE Index, during the same period. A $10,000 investment in the MSCI EAFE Index on December 31, 2003 would have grown to $20,409.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
International Equity Fund		5.97	%		11.85	%		9.34	%
MSCI EAFE Index		23.29	%		12.96	%		7.39	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
United Kingdom		22.8	%
Switzerland		18.2	%
India		9.7	%
France		8.3	%
Canada		7.5	%
Netherlands		6.8	%
United States		5.0	%
Denmark		3.3	%
Ireland		3.0	%
Australia		2.4	%
Mexico		2.3	%
Hong Kong		1.9	%
Germany		1.7	%
China		1.6	%
Spain		1.3	%
Japan		1.2	%
Brazil		0.9	%
Italy		0.8	%
Sweeden		0.7	%
Indonesia		0.5	%
Thailand		0.1	%
		100.0	%

²  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.

42

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Emerging Markets Equity Fund

The Penn Series Emerging Markets Equity Fund returned –1.13% for the twelve-month period ending December 31, 2013, compared to the –2.27% return for its benchmark, the MSCI Emerging Markets Index, for the same time period.

Since mid-2011, emerging markets equities have underperformed those of developed markets as emerging markets’ economic growth has been reset downward, which has disappointed investor expectations. We think two main fault lines will continue to negatively affect emerging market returns: China’s excessive credit expansion over the last four years and growing investor concerns about countries with current account deficits that are vulnerable to the tapering of quantitative easing (QE) in the U.S. In countries affected by a Chinese slowdown — particularly Brazil, Russia and South Africa — earnings have been weaker than consensus expected. Countries with large current account deficits, such as Indonesia and Turkey, will continue to remain a concern.

Our stock selection in China and South Africa were among the primary contributors to performance during the year. An underweight allocation to Brazil, along with stock selection in Eastern Europe, Russia and India, also benefited performance.

The main detractors from results were our stock selection in Indonesia, and an overweight allocation to and stock selection in Thailand. Our stock selection and underweight allocation to Taiwan also dampened performance, as did stock selection in Korea.

As mentioned above, we believe two major fault lines will continue to negatively affect emerging market equities. First, China’s credit growth has been excessive and could contribute to an eventual economic slowdown that is likely to surprise consensus expectations. Second, current account deficits in various countries are likely to remain a concern. However, we note there are nuanced differences in the drivers and direction of each country’s current account situation and we think investors will eventually consider such differentiation.

In the Fund, we remain confident in our underweight to China and China-related plays via commodities and commodities-oriented markets such as Brazil, Russia and South Africa. In regard to the challenges from rising U.S. bond yields, we remain focused on being overweight those countries that we believe are fundamentally sound but had suffered collateral damage in 2013 — including the

Philippines, Mexico, Thailand and Poland. These are countries that have not experienced excessive credit growth since the global financial crisis and whose balance of payments is improving. We consider Eastern Europe a well-placed region to benefit from a European growth recovery. German economic growth continues to create positive spillover effects for Poland and the rest of Eastern Europe, where industrial indicators continue to signal expansion. The Philippines remains an underpenetrated market for financial products and we expect gross domestic product (GDP) growth to continue to be buoyant, driven in part by healthy investment and infrastructure spending. In these cases, we have added to our positions and bought on weakness. We have a preference for countries that exhibit constructive reform agendas, sustainable levels of investment-to-GDP and compelling earnings prospects.

Independence Capital Management, Inc.

Investment Adviser

Morgan Stanley Investment Management, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Emerging Markets Equity Fund on August 25, 2008 would have grown to $11,448. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the MSCI Emerging Markets Index, during the same period. A $10,000 investment in the MSCI Emerging Markets Index on August 25, 2008 would have grown to $11,702.

43

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Emerging Markets Equity Fund		(1.13	)%		13.74	%		2.56	%
MSCI Emerging Markets Index		(2.27	)%		15.15	%		3.63	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

Portfolio Composition as of 12/31/13

	Percent of Total Investments3
South Korea		16.8	%
China		10.2	%
India		7.2	%
Mexico		7.2	%
Taiwan		7.1	%
Brazil		7.0	%
Phillippines		5.0	%
Thailand		4.4	%
Malaysia		3.5	%
Hong Kong		3.3	%
Poland		2.8	%
Russia		2.8	%
South Africa		2.6	%
United States		2.3	%
Switzerland		2.0	%
Autria		1.8	%
Turkey		1.7	%
Indonesia		1.6	%
United Kingdom		1.6	%
Spain		1.3	%
Portugal		1.2	%
Peru		1.1	%
Hungary		1.0	%
Czech Republic		0.8	%
Columbia		0.7	%
Netherlands		0.7	%
Panama		0.7	%
Chile		0.6	%
Japan		0.5	%
Cyprus		0.4	%
Qatar		0.1	%
		100.0	%

³  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.

44

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Real Estate Securities Fund

The Penn Series Real Estate Securities Fund returned 3.13% for the twelve-month period ending December 31, 2013, compared to the 2.47% return for its benchmark, the FTSE NAREIT Equity REIT Index, for the same time period.

In 2013, U.S. commercial real estate continued to see strengthening demand across all property sectors, driven by an improving labor market, a housing recovery, increased corporate spending and a stronger global economy. At the same time, new supply remained at a multi-decade low, giving many commercial landlords the leverage to raise rents as existing space was absorbed. As a result, REITs reported generally strong growth in cash flows and, as of the third quarter, had raised dividend payouts by an average of 9% from the prior year.

Against this positive fundamental backdrop, REIT shares were negatively affected by a sharp rise in Treasury yields and concerns of higher interest rates in the near term. On May 22nd, the Federal Reserve said it could begin to taper its quantitative easing (QE) program if data continued to show improvements in employment and broader economic growth. Investors responded by selling any asset they perceived as being sensitive to interest rates, including REITs. After rising 20% year to date through May 21st, REITs fell 15% through the remainder of the year.

Stock selection in the apartment sector was the largest contributor to relative performance, as we had underweight positions or did not invest in several securities that underperformed. We were also overweight BRE Properties, which received a takeover bid from Essex Property Trust in December. Stock selection was also a positive factor in the diversified sector, due largely to our overweight in Vornado. In the hotel sector, our stock selection and overweight contributed to relative performance, helped by out-of-index allocations to several non-REIT lodging corporations, which were relatively unaffected by interest-rate concerns. Among these were two notable IPOs from the fourth quarter — Hilton Worldwide and Extended Stay America — which performed well after their debut.

Factors that detracted from relative performance included our underweights in both free standing REITs and the relatively small manufactured home sector. Stock selection in the health care sector also detracted from returns, although this was more than offset by the benefit of our underweight. The positive effect from our overweight in shopping center REITs compensated for the negative impact of stock selection in the sector.

While there may be periods of volatility as QE tapering commences, we expect REITs’ performance profile to improve in 2014, as strengthening real estate fundamentals should outweigh further headwinds from rising Treasury yields. Furthermore, if the public market continues to price REIT properties below what they are worth to private investors, more REITs could look for strategic alternatives to realize the value of their assets, potentially providing a backstop to REIT valuations.

While we expect all property sectors to benefit from rising employment, our focus is on those we believe are the most attractively valued in the context of rising employment and consumer spending. In particular, we favor owners of high quality retail assets, many of which trade at compelling valuations and continue to see healthy demand from national and regional retailers. We also see attractive value in offices located in urban markets benefiting from job growth in technology, media and life sciences. In the apartment sector, we expect household formation to accelerate as new jobs are added to the economy, releasing pent up demand for all forms of housing. By contrast, we have become more cautious toward industrial REITs, as we believe the market has underestimated the potential for increased supply. We remain cautious toward companies that own health care facilities and suburban offices.

Independence Capital Management, Inc.

Investment Adviser

Cohen & Steers Capital Management, Inc.

Investment Sub-Adviser

45

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2003 — December 31, 2013

An investment of $10,000 in the Real Estate Securities Fund on December 31, 2003 would have grown to $20,467. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the FTSE NAREIT Equity REIT Index, during the same period. A $10,000 investment in the FTSE NAREIT Equity REIT Index on December 31, 2003 would have grown to $22,452.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			10 Year
Real Estate Securities Fund		3.13	%		15.19	%		7.42	%
FTSE NAREIT Equity REIT Index		2.47	%		16.50	%		8.42	%

¹ The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

Portfolio Composition as of 12/31/13

	Percent of Total Investments2
Regional Malls		17.9	%
Apartments		14.6	%
Office Property		12.5	%
Diversified		10.1	%
Healthcare		9.4	%
Strip Centers		8.6	%
Storage & Warehousing		7.0	%
Hotels and Resorts		6.2	%
Building & Real Estate		6.1	%
Industrial		5.7	%
Lodging		1.9	%
		100.0	%

²  Portfolio holdings are presented as a percentage of total investments before short-term investments.

46

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Aggressive Allocation Fund

The Penn Series Aggressive Allocation Fund returned 22.49% for the twelve-month period ending December 31, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 33.55% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.02%, 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 underperformed its broad equity benchmark, the Russell 3000 Index for the one-year period. Contributing to this underperformance versus its benchmark was the Fund’s underlying fund allocation within the developed international and emerging market equity funds.

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

As a result of the annual analysis of the asset class allocations of the Fund, performed each year following the end of the third quarter, the overall asset classes remained unchanged and will continue to be effective until the next annual review. However, 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

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Aggressive Allocation Fund on August 25, 2008 would have grown to $14,389. For the purpose of comparison, the graph also shows the change in the Fund’s benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, during the same period. A $10,000 investment in the Russell 3000 Index on August 25, 2008 would have grown to $16,866. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $12,888.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Aggressive Allocation Fund		22.49	%		15.30	%		7.03	%
Russell 3000 Index		33.55	%		18.71	%		9.69	%
Barclays Capital U.S. Aggregate Bond Index		(2.02	)%		4.44	%		4.85	%

¹ The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

² The Fund’s inception date was August 25, 2008.

47

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Asset Allocation Target as of 12/31/13

International Stocks	22.0	%
Large Cap Value Stocks	17.0	%
Large Growth Stocks	15.0	%
Emerging Markets	10.0	%
Mid Cap Value Stocks	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	%

48

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderately Aggressive Allocation Fund

The Penn Series Moderately Aggressive Allocation Fund returned 19.16% for the twelve-month period ending December 31, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 33.55% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.02%, 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 one-year period. Hindering the Fund’s equity performance versus its benchmark was the Fund’s underlying fund allocation within the developed international and emerging market equity funds.

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

As a result of the annual analysis of the asset class allocations of the Fund, performed each year following the end of the third quarter, the overall asset classes remained unchanged and will continue to be effective until the next annual review. However, 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

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Moderately Aggressive Allocation Fund on August 25, 2008 would have grown to $15,101. For the purpose of comparison, the graph also shows the change in the Fund’s benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, during the same period. A $10,000 investment in the Russell 3000 Index on August 25, 2008 would have grown to $16,866. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $12,888.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Moderately Aggressive Allocation Fund		19.16	%		14.14	%		8.00	%
Russell 3000 Index		33.55	%		18.71	%		9.69	%
Barclays Capital U.S. Aggregate Bond Index		(2.02	)%		4.44	%		4.85	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

49

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Asset Allocation Target as of 12/31/13

International Stocks	19.0	%
Large Cap Value Stocks	15.0	%
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	%

50

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderate Allocation Fund

The Penn Series Moderate Allocation Fund returned 14.11% for the twelve-month period ending December 31, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 33.55% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.02%, 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 one-year period. Contributing to this underperformance versus its benchmark was the Fund’s underlying fund allocation within the developed international and emerging market equity funds.

The Fund’s fixed income allocation outperformed the Barclays Capital U.S. Aggregate Bond Index for the one-year time period. Aiding the fixed income allocation’s performance was the underlying fund allocation to high yield fixed income.

As a result of the annual analysis of the asset class allocations of the Fund, performed each year following the end of the third quarter, the overall asset classes remained unchanged and will continue to be effective until the next annual review. However, 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

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Moderate Allocation Fund on August 25, 2008 would have grown to $14,006. For the purpose of comparison, the graph also shows the change in the Fund’s benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, during the same period. A $10,000 investment in the Russell 3000 Index on August 25, 2008 would have grown to $16,866. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $12,888.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Moderate Allocation Fund		14.11	%		11.51	%		6.49	%
Russell 3000 Index		33.55	%		18.71	%		9.69	%
Barclays Capital U.S. Aggregate Bond Index		(2.02	)%		4.44	%		4.85	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

51

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Asset Allocation Target as of 12/31/13

Intermediate Bonds	21.0	%
International Stocks	14.0	%
Large Cap Value Stocks	12.0	%
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	%

52

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderately Conservative Allocation Fund

The Penn Series Moderately Conservative Allocation Fund returned 9.35% for the twelve-month period ending December 31, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 33.55% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.02%, 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.

The Moderately Conservative Allocation Fund’s fixed income allocation performed in line with the Barclays Capital U.S. Aggregate Bond Index for the one-year time period. Aiding the fixed income asset allocation performance was the Fund’s underlying fund allocation to high yield.

At the broad asset class level, the performance of the Fund’s equity allocation underperformed its broad equity benchmark, the Russell 3000 Index for the one-year period. Hindering the Fund’s equity asset allocation performance versus its benchmark was the Fund’s underlying fund allocation within the developed international and emerging market equity funds.

As a result of the annual analysis of the asset class allocations of the Fund, performed each year following the end of the third quarter, the overall asset classes remained unchanged and will continue to be effective until the next annual review. However, 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

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Moderately Conservative Allocation Fund on August 25, 2008 would have grown to $13,369. For the purpose of comparison, the graph also shows the change in the Fund’s benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, during the same period. A $10,000 investment in the Russell 3000 Index on August 25, 2008 would have grown to $16,866. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $12,888.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Moderately Conservative Allocation Fund		9.35	%		9.09	%		5.57	%
Russell 3000 Index		33.55	%		18.71	%		9.69	%
Barclays Capital U.S. Aggregate Bond Index		(2.02	)%		4.44	%		4.85	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

53

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Asset Allocation Target as of 12/31/13

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	%

54

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Conservative Allocation Fund

The Penn Series Conservative Allocation Fund returned 4.43% for the twelve-month period ending December 31, 2013, compared to its benchmarks, the Russell 3000 Index’s return of 33.55% and the Barclays Capital U.S. Aggregate Bond Index’s return of –2.02%, 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 asset class exposure to high yield, short term bonds and cash outperformed the Barclays Capital U.S. Aggregate Bond Index for the one-year period, thus, asset allocation had a positive contribution on performance during the period.

The Fund’s equity allocation underperformed its broad equity benchmark, the Russell 3000 Index. The Fund’s underlying fund allocations within the international equity space hindered its equity performance during the period.

As a result of the annual analysis of the asset class allocations of the Fund, performed each year following the end of the third quarter, the overall asset classes remained unchanged and will continue to be effective until the next annual review. However, 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

Cumulative Performance Comparison

August 25, 2008 — December 31, 2013

An investment of $10,000 in the Conservative Allocation Fund on August 25, 2008 would have grown to $12,657. For the purpose of comparison, the graph also shows the change in the Fund’s benchmarks, the Russell 3000 Index and the Barclays Capital U.S. Aggregate Bond Index, during the same period. A $10,000 investment in the Russell 3000 Index on August 25, 2008 would have grown to $16,866. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $12,888.

Average Annual Total Returns¹ as of 12/31/13

	1 Year			5 Year			Since Inception2
Conservative Allocation Fund		4.43	%		6.27	%		4.50	%
Russell 3000 Index		33.55	%		18.71	%		9.69	%
Barclays Capital U.S. Aggregate Bond Index		(2.02	)%		4.44	%		4.85	%

¹  The performance information shown here does not reflect variable account charges and fees. Past performance is not predictive of future performance. Shares may be worth more or less when redeemed than when purchased. Assumes reinvestment of all dividends.

²  The Fund’s inception date was August 25, 2008.

Asset Allocation Target as of 12/31/13

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	%

55

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 July 1, 2013 and held through December 31, 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 and will be different from the expense ratio in the Financial Highlights which is for the year ended December 31, 2013.

Disclosure of Fund Expenses

For the Period July 1, 2013 to December 31, 2013

Expense Table

	Beginning Value July 1, 2013		Ending Value December 31, 2013		Annualized Expense Ratio		Expenses Paid During Period *
Money Market Fund
Actual		$1,000.00		$1,000.10		0.13%		$0.66
Hypothetical		$1,000.00		$1,024.54		0.13%		$0.66
Limited Maturity Bond Fund
Actual		$1,000.00		$1,002.60		0.57%		$2.88
Hypothetical		$1,000.00		$1,022.30		0.57%		$2.91

56

Important Information about Fund Expenses

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

	Beginning Value July 1, 2013		Ending Value December 31, 2013		Annualized Expense Ratio		Expenses Paid During Period *
Quality Bond Fund
Actual		$1,000.00		$1,000.80		0.56%		$2.82
Hypothetical		$1,000.00		$1,022.35		0.56%		$2.86
High Yield Bond Fund
Actual		$1,000.00		$1,062.02		0.85%		$4.42
Hypothetical		$1,000.00		$1,020.87		0.85%		$4.34
Flexibly Managed Fund
Actual		$1,000.00		$1,110.40		0.83%		$4.42
Hypothetical		$1,000.00		$1,020.97		0.83%		$4.24
Balanced Fund
Actual		$1,000.00		$1,094.50		0.19%		$1.00
Hypothetical		$1,000.00		$1,024.24		0.19%		$0.97
Large Growth Stock Fund
Actual		$1,000.00		$1,253.00		0.90%		$5.11
Hypothetical		$1,000.00		$1,020.61		0.90%		$4.59
Large Cap Growth Fund
Actual		$1,000.00		$1,168.70		0.89%		$4.87
Hypothetical		$1,000.00		$1,020.66		0.89%		$4.54
Large Core Growth Fund
Actual		$1,000.00		$1,243.10		0.88%		$4.98
Hypothetical		$1,000.00		$1,020.71		0.88%		$4.49
Large Cap Value Fund
Actual		$1,000.00		$1,168.60		0.88%		$4.81
Hypothetical		$1,000.00		$1,020.71		0.88%		$4.49
Large Core Value Fund
Actual		$1,000.00		$1,140.70		0.87%		$4.59
Hypothetical		$1,000.00		$1,020.76		0.87%		$4.44
Index 500 Fund
Actual		$1,000.00		$1,161.30		0.35%		$1.91
Hypothetical		$1,000.00		$1,023.42		0.35%		$1.79
Mid Cap Growth Fund
Actual		$1,000.00		$1,214.50		0.98%		$5.47
Hypothetical		$1,000.00		$1,020.20		0.98%		$5.00
Mid Cap Value Fund
Actual		$1,000.00		$1,157.60		0.82%		$4.46
Hypothetical		$1,000.00		$1,020.02		0.82%		$4.19
Mid Core Value Fund
Actual		$1,000.00		$1,128.90		1.08%		$5.80
Hypothetical		$1,000.00		$1,019.69		1.08%		$5.51
SMID Cap Growth Fund
Actual		$1,000.00		$1,210.10		1.05%		$5.85
Hypothetical		$1,000.00		$1,019.85		1.05%		$5.36

57

Important Information about Fund Expenses

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

	Beginning Value July 1, 2013		Ending Value December 31, 2013		Annualized Expense Ratio		Expenses Paid During Period *
SMID Cap Value Fund
Actual		$1,000.00		$1,176.40		1.14%		$6.25
Hypothetical		$1,000.00		$1,019.39		1.14%		$5.82
Small Cap Growth Fund
Actual		$1,000.00		$1,263.50		1.06%		$6.05
Hypothetical		$1,000.00		$1,019.79		1.06%		$5.41
Small Cap Value Fund
Actual		$1,000.00		$1,198.90		1.13%		$6.26
Hypothetical		$1,000.00		$1,019.44		1.13%		$5.77
Small Cap Index Fund
Actual		$1,000.00		$1,194.60		0.55%		$3.04
Hypothetical		$1,000.00		$1,022.40		0.55%		$2.81
Developed International Index Fund
Actual		$1,000.00		$1,173.80		0.59%		$3.23
Hypothetical		$1,000.00		$1,022.19		0.59%		$3.01
International Equity Fund
Actual		$1,000.00		$1,063.20		1.18%		$6.14
Hypothetical		$1,000.00		$1,019.18		1.18%		$6.02
Emerging Markets Equity Fund
Actual		$1,000.00		$1,052.60		1.68%		$8.69
Hypothetical		$1,000.00		$1,016.63		1.68%		$8.58
Real Estate Securities Fund
Actual		$1,000.00		$971.90		1.00%		$4.97
Hypothetical		$1,000.00		$1,020.10		1.00%		$5.10
Aggressive Allocation Fund
Actual		$1,000.00		$1,132.80		0.33%		$1.77
Hypothetical		$1,000.00		$1,023.52		0.33%		$1.68
Moderately Aggressive Allocation Fund
Actual		$1,000.00		$1,114.50		0.31%		$1.65
Hypothetical		$1,000.00		$1,023.62		0.31%		$1.58
Moderate Allocation Fund
Actual		$1,000.00		$1,087.50		0.31%		$1.63
Hypothetical		$1,000.00		$1,023.62		0.31%		$1.58
Moderately Conservative Allocation Fund
Actual		$1,000.00		$1,059.60		0.32%		$1.66
Hypothetical		$1,000.00		$1,023.57		0.32%		$1.68
Conservative Allocation Fund
Actual		$1,000.00		$1,033.70		0.33%		$1.69
Hypothetical		$1,000.00		$1,023.52		0.33%		$1.68

58

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Money Market Fund

	Par (000)		Value†
COMMERCIAL PAPER — 66.8%
Aerospace & Defense — 3.5%
Rockwell Collins, Inc.
0.160%, 01/07/14	$	2,000	$	1,999,956
0.180%, 01/16/14		2,300		2,299,839
				4,299,795
Beverages — 4.8%
Brown Forman Corp.
0.110%, 01/09/14		1,000		999,978
0.120%, 01/16/14		5,000		4,999,767
				5,999,745
Chemicals — 0.6%
Air Products & Chemicals Corp. 0.150%, 02/19/14		755		754,849
Commercial Services — 0.5%
Tyco International Ltd. 0.240%, 01/17/14		620		619,938
Diversified Financial Services — 13.5%
Queensland Treasury Corp.
0.130%, 01/29/14		1,500		1,499,854
0.120%, 02/20/14		1,800		1,799,706
0.140%, 03/10/14		2,500		2,499,349
Reckitt & Benckiser Treasury Services PLC
0.400%, 01/06/14		1,300		1,299,942
0.300%, 05/19/14		500		499,429
0.270%, 05/28/14		1,000		998,905
0.310%, 09/03/14		1,200		1,197,479
0.340%, 09/08/14		1,000		997,648
WGL Holdings, Inc.
0.150%, 01/10/14		800		799,973
0.140%, 01/16/14		1,755		1,754,905
0.140%, 01/24/14		2,000		1,999,829
0.150%, 01/29/14		1,500		1,499,831
				16,846,850
Diversified Operations — 1.6%
Koch Industries, Inc. 0.110%, 01/31/14		2,000		1,999,823
Electric — 22.3%
Basin Electric Power 0.100%, 02/04/14		6,200		6,199,432
IDACORP, Inc. 0.250%, 01/22/14		315		314,956
NSTAR Electrical Co. 0.060%, 01/02/14		6,000		6,000,000
Oglethorpe Power Corp.
0.150%, 01/13/14		4,556		4,555,791
0.170%, 01/15/14		500		499,969
0.200%, 01/15/14		427		426,969
0.200%, 01/21/14		745		744,922
Southern Co. 0.150%, 01/30/14		6,000		5,999,300
Wisconsin Power and Light Co. 0.060%, 01/02/14		3,000		3,000,000
				27,741,339

	Par (000)		Value†
Healthcare Services — 5.0%
United Healthcare Corp. 0.130%, 01/06/14	$	6,200	$	6,199,910
Machinery — Diversified — 5.0%
Rockwell Automation, Inc.
0.130%, 01/06/14		1,200		1,199,983
0.140%, 01/14/14		5,000		4,999,766
				6,199,749
Media — 2.4%
The Walt Disney Co. 0.120%, 04/08/14		3,000		2,999,040
Miscellaneous Manufacturing — 1.9%
Illinois Tool Works, Inc. 0.090%, 02/05/14		2,000		1,999,830
Pall Corp. 0.260%, 01/08/14		400		399,983
				2,399,813
Oil & Gas — 5.7%
Enbridge Energy Co., Inc. 0.280%, 01/17/14		500		499,942
Exxon Mobil Corp. 0.010%, 01/02/14		6,000		6,000,000
Northern Illinois Gas Co. 0.220%, 01/08/14		600		599,978
				7,099,920
TOTAL COMMERCIAL PAPER (Cost $83,160,771)				83,160,771
CORPORATE BONDS — 2.1%
Beverages — 1.6%
Anheuser-Busch Inbev Worldwide, Inc. 1.500%, 07/14/14		2,000		2,012,495
Diversified Financial Services — 0.5%
General Electric Capital Corp. 1.093%, 01/07/14•		650		650,083
TOTAL CORPORATE BONDS (Cost $2,662,578)				2,662,578
MUNICIPAL NOTES — 29.2%
City of Minneapolis 0.060%, 12/01/27•		2,290		2,290,000
Colorado Housing & Finance Authority
0.050%, 10/01/30•		2,800		2,800,000
0.060%, 04/01/43•		1,145		1,145,000
Iowa Finance Authority
0.060%, 07/01/34•		1,165		1,165,000
0.060%, 01/01/39•		900		900,000
Kansas State Department of Transportation 0.040%, 09/01/22•		3,100		3,100,000
Minnesota Housing Finance Agency 0.060%, 07/01/36•		4,000		4,000,000

59

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Money Market Fund

	Par (000)		Value†
MUNICIPAL NOTES — (continued)
Pennsylvania Turnpike Commission 0.120%, 07/15/41•	$	5,000	$	5,000,000
South Dakota Housing Development Authority 0.060%, 05/01/39•		5,000		5,000,000
State of Texas 0.060%, 12/01/29•		4,000		4,000,000
Triborough Bridge & Tunnel Authority 0.250%, 01/01/19•		2,900		2,900,000
Wisconsin Housing & Economic Development Authority 0.060%, 09/01/22•		4,000		4,000,000
TOTAL MUNICIPAL NOTES (Cost $36,300,000)				36,300,000
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.9%
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		2,396,574		2,396,574
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 $2,396,580)				2,396,580
TOTAL INVESTMENTS — 100.0% (Cost $124,519,929)			$	124,519,929

† See Security Valuation Note.

• Variable Rate Security. Rates shown represents rates in effect as of 12/31/2013.

PLC — Public Limited Company.

Maturity Schedule	Market Value		% of Portfolio		(Cumulative)
1 —     7 days	$	65,046,455		52.3%		52.3%
8 —   14 days		12,355,468		9.9%		62.2%
15 —   30 days		23,160,021		18.6%		80.8%
31 —   60 days		12,753,640		10.2%		91.0%
61 —   90 days		2,499,349		2.0%		93.0%
91 — 120 days		2,999,040		2.4%		95.4%
121 — 150 days		1,498,334		1.2%		96.6%
over 150 days		4,207,622		3.4%		100%
	$	124,519,929		100.0%

Average Weighted Maturity — 25 days

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMERCIAL PAPER	$	83,160,771	$	—	$	83,160,771	$	—
CORPORATE BONDS		2,662,578		—		2,662,578		—
MUNICIPAL NOTES		36,300,000		__		36,300,000		__
SHORT-TERM INVESTMENTS		2,396,580		2,396,580		—		—
TOTAL INVESTMENTS	$	124,519,929	$	2,396,580	$	122,123,349	$	—

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.

60

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Limited Maturity Bond Fund

	Par (000)		Value†
AGENCY OBLIGATIONS — 3.8%
Federal Home Loan Mortgage Corporation — 0.8%
1.375%, 02/25/14	$	2,000	$	2,003,664
Federal National Mortgage Association — 3.0%
1.625%, 10/26/15		7,000		7,152,957
TOTAL AGENCY OBLIGATIONS (Cost $9,147,452)				9,156,621
ASSET BACKED SECURITIES — 11.4%
Ally Master Owner Trust 1.540%, 09/15/19		1,000		992,846
Americredit Automobile Receivables Trust 2013-5 2.290%, 11/08/19		1,000		1,000,028
Cabela’s Master Credit Card Trust 0.697%, 02/18/20 144A @,•		3,000		3,011,124
Capital One Multi-Asset Execution Trust 0.960%, 09/16/19		1,050		1,044,809
Chase Issuance Trust 07-B1, B1 0.417%, 04/15/19•		2,398		2,369,092
Citibank Credit Card Issuance Trust 1.110%, 07/23/18		2,000		2,007,188
Conseco Financial Corp. 7.650%, 04/15/19		22		22,552
Discover Card Execution Note Trust 1.040%, 04/15/19		735		734,307
Entergy Arkansas Restoration Funding LLC 2.300%, 08/01/21		961		984,529
Equity One Mortgage Pass-Through Trust 2004-1 4.145%, 04/25/34•		13		12,710
Ford Credit Auto Owner Trust 1.970%, 05/15/19		1,800		1,804,484
Ford Credit Floorplan Master Owner Trust A 1.490%, 09/15/19		1,000		994,251
FRS I LLC 1.800%, 04/15/43 144A @		895		888,377
GE Capital Credit Card Master Note Trust 0.950%, 06/15/18		2,000		2,007,476
GE Equipment Transportation LLC Series 2013-1 1.540%, 03/24/21		1,000		984,978
Golden Credit Card Trust 1.390%, 07/15/19 144A @		2,000		1,997,842
Hyundai Auto Lease Securitization Trust 2012-A 0.920%, 08/17/15 144A @		1,500		1,503,277
NYCTL 2013-A Trust 1.190%, 11/10/26 144A @		688		688,307
Popular ABS Mortgage Pass-Through Trust 2004-4 4.628%, 09/25/34•		12		12,519
SACO I, Inc. 1.065%, 06/25/35 144A @,•		321		305,285
Springleaf Funding Trust 2013-A 2.580%, 09/15/21 144A @		1,000		998,545
Volvo Financial Equipment LLC Series 2013-1 1.620%, 08/17/20 144A @		1,000		996,149

	Par (000)		Value†
World Financial Network Credit Card Master Trust 1.760%, 05/17/21	$	1,782	$	1,778,860
TOTAL ASSET BACKED SECURITIES (Cost $27,230,729)				27,139,535
COMMERCIAL MORTGAGE BACKED SECURITIES — 4.4%
Bear Stearns Commercial Mortgage Securities Trust 2006-PWR11 5.391%, 03/11/39•		2		1,769
Boca Hotel Portfolio Trust 2013-BOCA 1.917%, 08/15/26 144A @,•		1,000		1,001,699
EMAC Owner Trust 2000-1 7.459%, 01/15/27 144A @,•		360		262,162
Fannie Mae Connecticut Avenue Securities 2.165%, 10/25/23•		975		979,625
FDIC Commercial Mortgage Trust 2012-C1 A 0.841%, 05/25/35 144A @,•		2,465		2,468,511
FHLMC Multifamily Structured Pass Through K501-A1 1.337%, 06/25/16		1,621		1,634,121
FREMF Mortgage Trust Series 2013-KF02 Class C 4.165%, 12/25/45 144A @		1,998		2,027,982
Hilton USA Trust 2013-HLF 2.919%, 11/05/30 144A @,•		1,000		1,000,072
JPMorgan Chase Commercial Mortgage Securities Trust 2013-INN 2.317%, 10/15/30 144A @,•		1,000		1,000,982
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $10,431,250)				10,376,923
CORPORATE BONDS — 35.9%
Aerospace & Defense — 0.9%
BAE Systems PLC 3.500%, 10/11/16 144A @		1,000		1,045,350
Lockheed Martin Corp. 2.125%, 09/15/16		1,000		1,025,988
				2,071,338
Agriculture — 0.4%
Altria Group, Inc. 4.125%, 09/11/15		1,000		1,055,244
Airlines — 0.5%
Continental Airlines 2009-1 Pass Through Trust 9.000%, 07/08/16		1,044		1,189,767
Auto Manufacturers — 0.4%
Daimler Finance North America LLC 1.250%, 01/11/16 144A @		1,000		1,000,706
Auto Parts & Equipment — 0.5%
Johnson Controls, Inc. 2.600%, 12/01/16		1,105		1,142,545

61

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Limited Maturity Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Banks — 3.0%
Bank of Montreal 2.850%, 06/09/15 144A @	$	1,000	$	1,033,800
Bank of Nova Scotia 1.050%, 03/20/15 144A @		1,000		1,007,900
Commonwealth Bank of Australia 3.492%, 08/13/14 144A @		1,000		1,020,337
Royal Bank of Canada 1.450%, 09/09/16		1,000		1,014,159
The Toronto-Dominion Bank 1.625%, 09/14/16 144A @		2,000		2,035,400
Westpac Banking Corp. 3.585%, 08/14/14 144A @		1,000		1,019,843
				7,131,439
Beverages — 2.0%
Anheuser-Busch InBev Worldwide, Inc. 0.800%, 07/15/15		1,000		1,004,977
Brown-Forman Corp. 2.500%, 01/15/16		1,400		1,446,050
Coca-Cola Enterprises, Inc. 2.125%, 09/15/15		1,000		1,019,356
SABMiller Holdings, Inc. 1.850%, 01/15/15 144A @		1,000		1,011,987
The Coca-Cola Co. 1.800%, 09/01/16		240		245,765
				4,728,135
Biotechnology — 0.9%
Amgen, Inc. 2.500%, 11/15/16		1,000		1,034,955
Celgene Corp. 2.450%, 10/15/15		1,000		1,027,285
				2,062,240
Chemicals — 0.5%
Ecolab, Inc. 1.000%, 08/09/15		1,200		1,203,733
Diversified Financial Services — 3.9%
American Honda Finance Corp. 1.125%, 10/07/16		1,000		1,004,087
Caisse Centrale Desjardins du Quebec 2.550%, 03/24/16 144A @		3,000		3,121,500
General Electric Capital Corp.
1.000%, 12/11/15		1,000		1,008,011
2.300%, 04/27/17		1,000		1,027,873
John Deere Capital Corp. 1.050%, 10/11/16		1,000		1,002,877
Toyota Motor Credit Corp. 1.000%, 02/17/15		1,000		1,006,772
USAA Capital Corp. 2.250%, 12/13/16 144A @		1,000		1,025,179
				9,196,299

	Par (000)		Value†
Electric — 1.7%
Duke Energy Corp. 2.150%, 11/15/16	$	1,000	$	1,024,846
LG&E and KU Energy LLC 2.125%, 11/15/15		1,000		1,017,505
NextEra Energy Capital Holdings, Inc. 1.339%, 09/01/15		1,000		1,006,660
Peco Energy Co. 1.200%, 10/15/16		1,000		1,002,878
				4,051,889
Electronics — 0.4%
Thermo Fisher Scientific, Inc. 1.300%, 02/01/17		1,000		995,655
Energy-Alternate Sources — 0.4%
BP Capital Markets PLC 1.700%, 12/05/14		1,000		1,012,613
Environmental Control — 0.4%
Waste Management, Inc. 2.600%, 09/01/16		1,000		1,032,171
Food — 1.5%
ConAgra Foods, Inc. 1.300%, 01/25/16		1,000		1,001,733
Mondelez International, Inc. 4.125%, 02/09/16		1,000		1,060,158
Unilever Capital Corp. 0.450%, 07/30/15		1,000		1,000,253
WM Wrigley Jr. Co. 1.400%, 10/21/16 144A @		500		500,757
				3,562,901
Gas — 0.4%
Florida Gas Transmission Co., LLC 4.000%, 07/15/15 144A @		1,000		1,042,663
Healthcare Products — 1.4%
Baxter International, Inc. 0.950%, 06/01/16		1,000		999,892
Covidien International Finance S.A. 1.350%, 05/29/15		1,317		1,326,662
Zimmer Holdings, Inc. 1.400%, 11/30/14		1,000		1,006,472
				3,333,026
Healthcare Services — 0.9%
Quest Diagnostics, Inc. 5.450%, 11/01/15		1,000		1,077,843
WellPoint, Inc. 1.250%, 09/10/15		1,000		1,006,951
				2,084,794
Insurance — 0.9%
Metropolitan Life Global Funding I 2.000%, 01/09/15 144A @		1,000		1,016,178
Principal Life Global Funding II 1.000%, 12/11/15 144A @		1,000		1,002,035
				2,018,213

62

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Limited Maturity Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Internet — 0.4%
Google, Inc. 2.125%, 05/19/16	$	1,000	$	1,033,193
Machinery — Diversified — 0.5%
Xylem, Inc. 3.550%, 09/20/16		1,165		1,223,665
Media — 1.8%
NBCUniversal Media LLC 3.650%, 04/30/15		1,000		1,039,999
Thomson Reuters Corp
0.875%, 05/23/16		1,000		992,963
1.300%, 02/23/17		1,000		995,589
Time Warner, Inc. 5.875%, 11/15/16		1,000		1,128,173
				4,156,724
Mining — 0.8%
BHP Billiton Finance USA Ltd. 1.125%, 11/21/14		1,000		1,007,200
Rio Tinto Finance USA PLC 0.794%, 06/19/15•		1,000		1,002,375
				2,009,575
Oil & Gas — 0.4%
BG Energy Capital PLC 2.500%, 12/09/15 144A @		1,000		1,032,081
Oil & Gas Services — 0.9%
Cameron International Corp. 1.150%, 12/15/16		1,000		996,694
Schlumberger Investment SA 1.950%, 09/14/16 144A @		1,035		1,055,964
				2,052,658
Pharmaceuticals — 3.6%
AbbVie, Inc. 1.200%, 11/06/15		2,000		2,020,328
Express Scripts Holding Co. 3.125%, 05/15/16		1,000		1,043,713
Mckesson Corp. 0.950%, 12/04/15		500		499,678
Mead Johnson Nutrition Co. 3.500%, 11/01/14		1,000		1,021,932
Merck & Co., Inc. 0.700%, 05/18/16		1,000		998,249
Perrigo Co., PLC 1.300%, 11/08/16 144A @		1,000		996,534
Takeda Pharmaceutical Co., Ltd. 1.031%, 03/17/15 144A @		2,000		2,010,002
				8,590,436
Pipelines — 1.3%
Enbridge, Inc. 4.900%, 03/01/15		1,000		1,045,685
Kinder Morgan Energy Partners LP 3.500%, 03/01/16		1,000		1,045,967

	Par (000)		Value†
Pipelines — (continued)
TransCanada PipeLines Ltd. 0.750%, 01/15/16	$	1,000	$	997,496
				3,089,148
Retail — 0.9%
Costco Wholesale Corp. 5.500%, 03/15/17		1,000		1,123,290
CVS Caremark Corp. 1.200%, 12/05/16		1,000		1,001,015
				2,124,305
Semiconductors — 0.8%
Micron Semiconductor Asia Pte Ltd. 1.258%, 01/15/19		1,000		996,507
Samsung Electronics America, Inc. 1.750%, 04/10/17 144A @		1,000		993,596
				1,990,103
Telecommunications — 2.1%
America Movil S.A.B. de C.V. 2.375%, 09/08/16		1,000		1,029,170
AT&T, Inc. 0.900%, 02/12/16		1,000		994,919
British Telecommunications PLC 1.625%, 06/28/16		1,000		1,008,812
Deutsche Telekom International Finance B.V. 3.125%, 04/11/16 144A @		1,000		1,041,532
Verizon Communications, Inc. 2.500%, 09/15/16		1,000		1,034,036
				5,108,469
Transportation — 0.9%
Burlington Northern Santa Fe LLC 5.650%, 05/01/17		1,000		1,121,511
Canadian National Railway Co. 1.450%, 12/15/16		1,000		1,007,092
				2,128,603
Trucking and Leasing — 0.5%
TTX Co. 5.400%, 02/15/16 144A @		1,000		1,071,294
TOTAL CORPORATE BONDS (Cost $85,138,206)				85,525,625
COMMERCIAL PAPER — 0.8%
Gas — 0.4%
Nisource Finance 0.700%, 01/14/14		1,000		999,747
Pipelines — 0.4%
DCP Midstream 0.800%, 01/07/14		1,000		999,867
TOTAL COMMERCIAL PAPER (Cost $1,999,614)				1,999,614

63

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Limited Maturity Bond Fund

	Par (000)		Value†
MUNICIPAL NOTES — 0.4%
Regional — 0.4%
Province of British Columbia 2.850%, 06/15/15 (Cost $999,842)	$	1,000	$	1,035,950
RESIDENTIAL MORTGAGE BACKED SECURITIES — 1.4%
Collateralized Mortgage Obligations — 0.8%
Fannie Mae REMICS 0.565%, 11/25/39•		1,994		1,994,590
Fannie Mae Pool — 0.6%
4.000%, 06/01/20		286		303,482
2.577%, 12/01/33•		575		613,943
2.522%, 04/01/34•		183		194,527
2.440%, 07/01/36•		167		176,778
				1,288,730
TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $3,224,051)				3,283,320
U.S. TREASURY OBLIGATIONS — 33.5%
U.S. Treasury Note
1.750%, 01/31/14		2,000		2,002,656
1.750%, 03/31/14		5,000		5,020,115
1.875%, 04/30/14		5,650		5,682,442
2.375%, 09/30/14		3,000		3,049,806
4.250%, 11/15/14		12,100		12,526,804
2.250%, 01/31/15		730		746,254
4.000%, 02/15/15		7,850		8,183,013
0.250%, 12/15/15		5,000		4,988,865
2.000%, 04/30/16		19,000		19,656,089
0.500%, 06/15/16		18,000		17,981,712
TOTAL U.S. TREASURY OBLIGATIONS (Cost $79,337,062)				79,837,756
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 8.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		20,029,247		20,029,247
BlackRock Liquidity Funds TempFund - Institutional Shares		218		218
Federated Prime Obligations Fund - Class I		407		407
Fidelity Institutional Prime Money Market Portfolio		1,020		1,020
Fidelity Institutional Prime Money Market Portfolio - Class I		198		198
Wells Fargo Advantage Government Money Market Fund - Institutional Class		77		77

	Number of Shares		Value†
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 $20,031,173)				20,031,173
TOTAL INVESTMENTS — 100.0% (Cost $237,539,379)			$	238,386,517

† 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.

Ÿ Variable Rate Security. Rates shown represents rates in effect as of 12/31/2013.

LLC — Limited Liability Company.

LP — Limited Partnership.

PLC — Public Limited Company.

REMICS — Real Estate Mortgage Investment Conduits.

Country Weightings as of 12/31/2013††
United States	86	%
Canada	7
United Kingdom	2
Australia	1
Japan	1
Luxembourg	1
Netherlands	1
Other	1
Total	100	%

†† % of total investments as of December 31, 2013

64

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Limited Maturity Bond Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	79,837,756	$	—	$	79,837,756	$	—
AGENCY OBLIGATIONS		9,156,621		—		9,156,621		—
ASSET BACKED SECURITIES		27,139,535		—		27,139,535		—
COMMERCIAL MORTGAGE BACKED SECURITIES		10,376,923		—		10,376,923		—
CORPORATE BONDS		85,525,625		—		85,525,625		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		3,283,320		—		3,283,320		—
COMMERCIAL PAPER		1,999,614		—		1,999,614		—
MUNICIPAL NOTES		1,035,950		—		1,035,950		—
SHORT-TERM INVESTMENTS		20,031,173		20,031,173		—		—
TOTAL INVESTMENTS	$	238,386,517	$	20,013,173	$	218,355,344	$	—

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.

65

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Quality Bond Fund

	Par (000)		Value†
AGENCY OBLIGATION — 1.3%
Federal National Mortgage Association — 1.3%
5.000%, 04/15/15 144A @
(Cost $6,820,624)	$	6,750	$	7,159,064
ASSET BACKED SECURITIES — 2.3%
Conseco Financial Corp. 7.240%, 11/15/28•		461		246,170
GE Capital Credit Card Master Note Trust 0.950%, 06/15/18		5,000		5,018,690
Hyundai Auto Lease Securitization Trust 2012-A 0.920%, 08/17/15 144A @		4,000		4,008,740
SACO I, Inc. 1.065%, 06/25/35 144A @,•		963		915,854
Springleaf Funding Trust 2013-A 2.580%, 09/15/21 144A @		2,000		1,997,090
TOTAL ASSET BACKED SECURITIES (Cost $12,400,827)				12,186,544
COMMERCIAL MORTGAGE BACKED SECURITIES — 4.4%
Boca Hotel Portfolio Trust 2013-BOCA
1.317%, 08/15/26 144A @,•		777		778,808
1.917%, 08/15/26 144A @,•		1,000		1,001,699
CFCRE Commercial Mortgage Trust 4.961%, 04/15/44 144A @,•		1,000		1,076,833
Citigroup Deutsche Bank Commercial Mortgage Trust 5.322%, 12/11/49		1,500		1,642,662
EMAC Owner Trust 2000-1 7.463%, 01/15/27 144A @,•		721		524,325
FHLMC Multifamily Structured Pass Through Trust Series K032 3.310%, 05/25/23		10,000		9,880,640
FREMF Mortgage Trust Series 2013-K28 Class C 3.494%, 03/25/23 144A @,•		1,000		807,792
FREMF Mortgage Trust Series 2013-K35 Class C 3.947%, 12/15/45 144A @,•		1,000		836,074
FREMF Mortgage Trust Series 2013-KF02 Class C 4.165%, 12/25/45 144A @,•		1,998		2,027,982
Hilton USA Trust 2013-HLT 4.407%, 11/05/30 144A @		1,000		1,000,816
JP Morgan Chase Commercial Mortgage Securities Trust 2013-INN 1.567%, 10/15/30 144A @,•		2,000		2,003,810
JPMorgan Chase Commercial Mortgage Securities Corp. 5.420%, 01/15/49		1,500		1,645,443
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $22,876,862)				23,226,884

	Par (000)		Value†
CORPORATE BONDS — 24.3%
Aerospace & Defense — 0.5%
Lockheed Martin Corp. 3.350%, 09/15/21	$	1,000	$	992,201
Northrop Grumman Corp. 3.250%, 08/01/23		1,000		932,755
United Technologies Corp. 3.100%, 06/01/22		1,000		977,782
				2,902,738
Agriculture — 0.6%
Altria Group, Inc. 4.750%, 05/05/21		1,000		1,073,161
Cargill, Inc. 6.125%, 09/15/36 144A @		1,000		1,130,278
Japan Tobacco, Inc. 2.100%, 07/23/18 144A @		1,000		997,235
				3,200,674
Airlines — 0.5%
American Airlines 2013-1 Class A Pass Through Trust 4.000%, 07/15/25 144A @		1,000		967,500
Continental Airlines 2009-1 Pass Through Trust 9.000%, 07/08/16		401		457,603
Delta Air Lines 2007-1 Class A Pass Through Trust 6.821%, 08/10/22		1,009		1,137,788
				2,562,891
Banks — 1.7%
Bank of America Corp. 5.650%, 05/01/18		1,000		1,138,269
Bank of Montreal 2.850%, 06/09/15 144A @		1,000		1,033,800
JPMorgan Chase & Co. 6.000%, 01/15/18		1,700		1,957,511
Northern Trust Corp. 3.375%, 08/23/21		500		507,376
Royal Bank of Canada 1.450%, 09/09/16		1,000		1,014,159
The Bank of New York Mellon Corp. 2.100%, 08/01/18		1,000		996,260
The Goldman Sachs Group, Inc. 5.250%, 07/27/21		1,000		1,094,842
5.750%, 01/24/22		1,000		1,125,688
				8,867,905
Beverages — 0.4%
Anheuser-Busch InBev Worldwide, Inc. 7.750%, 01/15/19		1,000		1,248,659
The Coca-Cola Co. 3.300%, 09/01/21		1,000		1,001,601
				2,250,260

66

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Biotechnology — 0.8%
Amgen, Inc. 4.950%, 10/01/41	$	1,000	$	950,064
Biogen Idec, Inc. 6.875%, 03/01/18		1,000		1,178,941
Genentech, Inc. 5.250%, 07/15/35		1,000		1,053,771
Gilead Sciences, Inc. 4.400%, 12/01/21		1,000		1,067,949
				4,250,725
Chemicals — 0.3%
EI du Pont de Nemours & Co. 4.150%, 02/15/43		1,000		882,182
Praxair, Inc. 3.000%, 09/01/21		1,000		980,757
				1,862,939
Computers — 0.4%
Hewlett-Packard Co. 2.600%, 09/15/17		1,000		1,016,045
International Business Machines Corp. 6.500%, 01/15/28		1,000		1,218,624
				2,234,669
Diversified Financial Services — 3.0%
American Honda Finance Corp. 3.800%, 09/20/21 144A @		1,000		1,016,310
Caisse Centrale Desjardins du Quebec 2.550%, 03/24/16 144A @		2,000		2,081,000
Carobao Leasing LLC 1.829%, 09/07/24		4,479		4,306,105
General Electric Capital Corp. 6.150%, 08/07/37		1,000		1,166,680
5.875%, 01/14/38		1,000		1,139,114
Safina Ltd. 2.000%, 12/30/23		4,413		4,299,049
Toyota Motor Credit Corp. 3.400%, 09/15/21		1,000		1,015,179
USAA Capital Corp. 2.250%, 12/13/16 144A @		1,000		1,025,179
				16,048,616
Electric — 1.1%
Commonwealth Edison Co. 6.150%, 09/15/17		500		577,770
Duke Energy Progress, Inc. 2.800%, 05/15/22		1,000		952,682
Enel Finance International NV 6.250%, 09/15/17 144A @		1,000		1,116,822
Georgia Power Co. 4.300%, 03/15/42		1,000		899,610
International Transmission Co. 4.625%, 08/15/43 144A @		1,000		976,321
PacifiCorp 6.250%, 10/15/37		1,000		1,192,270
				5,715,475

	Par (000)		Value†
Electronics — 0.2%
Thermo Fisher Scientific, Inc. 3.600%, 08/15/21	$	1,000	$	991,043
Engineering & Construction — 0.2%
ABB Finance USA, Inc. 4.375%, 05/08/42		1,000		916,404
Food — 1.2%
ConAgra Foods,Inc. 1.900%, 01/25/18		1,000		981,665
Hillshire Brands Co. 2.750%, 09/15/15		1,000		1,028,324
Kraft Foods Group, Inc. 5.000%, 06/04/42		1,000		985,792
Mondelez Internatonal, Inc. 6.750%, 02/19/14		500		503,875
Unilever Capital Corp. 0.850%, 08/02/17		2,000		1,946,936
WM Wrigley Jr. Co. 2.400%, 10/21/18 144A @		1,000		993,867
				6,440,459
Gas — 0.7%
Boston Gas Co. 4.487%, 02/15/42 144A @		1,000		945,311
Centrica PLC 5.375%, 10/16/43 144A @		1,000		1,007,051
Pacific Gas & Electric Co. 3.250%, 09/15/21		1,000		982,174
SEMCO Energy, Inc. 5.150%, 04/21/20 144A @		1,000		1,037,703
				3,972,239
Healthcare Products — 1.9%
Baxter International, Inc. 3.200%, 06/15/23		1,000		955,349
Becton Dickinson and Co. 3.125%, 11/08/21		1,000		969,364
CareFusion Corp. 3.300%, 03/01/23 144A @		1,103		1,007,922
Covidien International Finance SA 6.000%, 10/15/17		1,000		1,145,562
3.200%, 06/15/22		1,000		964,286
Edwards Lifesciences Corp. 2.875%, 10/15/18		1,000		994,164
Medtronic, Inc. 4.000%, 04/01/43		1,000		881,352
St Jude Medical, Inc. 4.750%, 04/15/43		1,000		947,748
Stryker Corp. 2.000%, 09/30/16		1,000		1,027,397
Zimmer Holdings, Inc. 4.625%, 11/30/19		1,000		1,089,275
				9,982,419

67

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Healthcare Services — 0.2%
Cigna Corp. 4.375%, 12/15/20	$	1,000	$	1,063,954
Insurance — 0.4%
American International Group, Inc. 4.875%, 06/01/22		1,000		1,074,823
Berkshire Hathaway, Inc. 4.500%, 02/11/43		1,000		924,446
				1,999,269
Investment Companies — 0.2%
Ares Capital Corp. 4.875%, 11/30/18		1,000		1,023,566
Media — 0.8%
Comcast Cable Holdings LLC 9.875%, 06/15/22		1,000		1,332,125
NBCUniversal Media LLC 4.375%, 04/01/21		1,000		1,058,422
Time Warner Cable, Inc. 8.750%, 02/14/19		700		834,989
Viacom, Inc. 5.850%, 09/01/43		1,000		1,051,222
				4,276,758
Mining — 0.4%
BHP Billiton Finance (USA) Ltd. 5.000%, 09/30/43		1,000		1,016,741
Corp Nacional del Cobre de Chile 3.000%, 07/17/22 144A @		1,000		899,516
				1,916,257
Miscellaneous Manufacturing — 0.4%
Illinois Tool Works, Inc. 4.875%, 09/15/41		1,000		984,998
Siemens Financieringsmaatschappij NV 6.125%, 08/17/26 144A @		1,000		1,153,930
				2,138,928
Oil & Gas — 2.3%
BG Energy Capital PLC 4.000%, 10/15/21 144A @		1,000		1,025,821
BP Capital Markets PLC 4.500%, 10/01/20		1,000		1,080,415
Chevron Corp 2.355%, 12/05/22		1,000		909,588
Occidental Petroleum Corp. 3.125%, 02/15/22		1,000		973,971
Petrobras International Finance Co. 6.750%, 01/27/41		1,000		930,433
Petroleos Mexicanos 1.950%, 12/20/22 W.I.		1,900		1,867,533
2.000%, 12/20/22		2,700		2,659,856
Shell International Finance BV 4.550%, 08/12/43		1,000		975,343
Statoil, ASA 3.150%, 01/23/22		1,000		976,581

	Par (000)		Value†
Oil & Gas — (continued)
Total Capital International SA 3.700%, 01/15/24	$	1,000	$	988,774
				12,388,315
Oil & Gas Services — 0.4%
Halliburton Co. 4.500%, 11/15/41		1,000		950,447
Schlumberger Oilfield PLC 4.200%, 01/15/21 144A @		1,000		1,056,987
				2,007,434
Pharmaceuticals — 1.9%
AbbVie, Inc. 1.200%, 11/06/15		1,000		1,010,164
Express Scripts Holding Co. 3.900%, 02/15/22		1,000		1,000,950
GlaxoSmithKline Capital, Inc. 5.375%, 04/15/34		1,000		1,088,272
Merck Sharp & Dohme Corp. 6.400%, 03/01/28		1,000		1,209,552
Novartis Capital Corp. 2.900%, 04/24/15		1,000		1,033,337
Perrigo Co. PLC 4.000%, 11/15/23 144A @		1,000		981,095
Sanofi 4.000%, 03/29/21		1,000		1,047,613
Takeda Pharmaceutical Co., Ltd. 1.625%, 03/17/17 144A @		2,000		1,995,564
Teva Pharmaceutical Finance Co. BV 3.650%, 11/10/21		1,000		980,820
				10,347,367
Pipelines — 0.6%
DCP Midstream LLC 6.750%, 09/15/37 144A @		1,000		1,068,380
Energy Transfer Partners LP 5.950%, 10/01/43		1,000		1,014,514
Kinder Morgan Energy Partners LP 5.000%, 03/01/43		1,000		922,953
				3,005,847
Retail — 0.6%
CVS Caremark Corp. 5.750%, 05/15/41		1,000		1,091,368
5.300%, 12/05/43		1,000		1,034,163
Wal-Mart Stores, Inc. 3.250%, 10/25/20		1,000		1,021,106
				3,146,637
Semiconductors — 0.2%
Intel Corp. 4.000%, 12/15/32		1,000		921,675
Software — 0.4%
Microsoft Corp. 3.625%, 12/15/23		1,000		1,001,563

68

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Software — (continued)
Oracle Corp. 3.625%, 07/15/23	$	1,000	$	991,967
				1,993,530
Telecommunications — 1.2%
America Movil SAB de CV 3.125%, 07/16/22		1,000		923,148
AT&T, Inc.
3.875%, 08/15/21		1,000		1,013,100
5.350%, 09/01/40		1,000		989,432
British Telecommunications PLC 1.625%, 06/28/16		1,000		1,008,812
Verizon Communications, Inc.
4.600%, 04/01/21		1,000		1,056,309
6.400%, 09/15/33		1,000		1,150,121
				6,140,922
Transportation — 0.6%
Burlington Northern Santa Fe LLC 5.150%, 09/01/43		1,000		1,015,883
Federal Express Corp 1999 Pass Through Trust 7.650%, 01/15/22		1,215		1,469,587
Union Pacific Corp. 2.950%, 01/15/23		1,000		924,219
				3,409,689
Trucking and Leasing — 0.2%
TTX Co. 5.400%, 02/15/16 144A @		1,000		1,071,294
TOTAL CORPORATE BONDS (Cost $126,036,319)				129,050,898
MUNICIPAL NOTES — 0.4%
Province of British Columbia 2.850%, 06/15/15 (Cost $1,999,683)		2,000		2,071,900
MUNICIPAL BONDS — 1.5%
Corpus Christi Independent School District 6.124%, 08/15/32		1,000		1,104,830
Metropolitan Water District of Southern California 6.947%, 07/01/40		1,000		1,113,400
Orange County Sanitation District 6.400%, 02/01/44		1,000		1,158,680
San Francisco City & County Public Utilities Commission 6.950%, 11/01/50		2,000		2,521,020
South Carolina State Public Service Authority 5.784%, 12/01/41		2,000		2,030,140
Total MUNICIPAL BONDS (Cost $7,002,228)				7,928,070

	Par (000)		Value†
RESIDENTIAL MORTGAGE BACKED SECURITIES — 16.0%
Collateralized Mortgage Obligations — 1.0%
Fannie Mae REMICS 0.566%, 11/25/39•	$	1,994	$	1,994,590
Freddie Mac REMICS 0.508%, 05/15/37•		3,374		3,379,159
				5,373,749
Fannie Mae Pool — 8.1%
5.000%, 07/01/23		911		970,970
2.522%, 04/01/34•		549		583,582
2.440%, 07/01/36•		555		589,259
2.382%, 08/01/36•		498		530,715
2.853%, 05/01/37•		503		530,146
4.000%, 08/01/39		3,931		4,047,591
4.000%, 11/01/40		3,709		3,820,355
3.500%, 03/01/41		1,715		1,705,282
2.500%, 01/01/43		3,680		3,334,265
2.500%, 02/01/43		10,694		9,690,636
2.500%, 05/01/43		12,681		11,490,271
4.000%, 08/01/43		3,143		3,238,092
3.500%, 09/01/43		2,236		2,223,211
				42,754,375
Freddie Mac Gold Pool — 2.6%
3.000%, 01/01/26		4,981		5,077,760
3.500%, 12/01/40		4,846		4,813,568
3.500%, 01/01/41		3,182		3,160,495
3.500%, 02/01/41		944		937,919
				13,989,742
Ginnie Mae Pool — 4.3%
6.000%, 10/15/38		736		816,625
6.000%, 10/15/38		627		696,465
4.000%, 04/15/39		4,786		4,981,226
4.000%, 06/15/39		3,559		3,702,679
4.500%, 02/15/40		5,475		5,850,822
3.500%, 10/20/41		6,860		6,931,004
9.000%, 10/15/30		8		7,924
				22,986,745
TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $84,322,778)				85,104,611
U.S. TREASURY OBLIGATIONS — 44.4%
U.S. Treasury Bond
5.500%, 08/15/28		2,800		3,451,437
3.500%, 02/15/39		3,320		3,126,507
4.375%, 05/15/40		100		108,625
3.125%, 11/15/41		3,900		3,368,625
2.750%, 11/15/42		450		355,781
3.125%, 02/15/43		3,685		3,155,281
2.875%, 05/15/43		3,425		2,776,658
3.625%, 08/15/43		4,450		4,203,510
3.750%, 11/15/43		5,670		5,481,297
U.S. Treasury Note
1.750%, 01/31/14		6,000		6,007,968
1.875%, 02/28/14		7,000		7,019,684

69

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Quality Bond Fund

	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — (continued)
U.S. Treasury Note — (continued)
4.250%, 11/15/14	$	5,000	$	5,176,365
4.000%, 02/15/15		10,900		11,362,400
0.250%, 07/31/15		1,000		999,961
0.375%, 08/31/15		3,700		3,705,635
2.125%, 12/31/15		10,270		10,623,031
2.625%, 02/29/16		5,000		5,237,500
1.500%, 07/31/16		3,050		3,119,577
0.625%, 08/15/16		1,150		1,150,269
0.625%, 12/15/16		33,300		33,164,735
0.875%, 12/31/16		3,750		3,758,205
0.625%, 08/31/17		12,000		11,775,000
0.625%, 11/30/17		52,000		50,700,000
0.750%, 03/31/18		4,900		4,760,654
2.375%, 06/30/18		2,350		2,437,206
1.500%, 08/31/18		11,400		11,342,111
2.750%, 02/15/19		9,100		9,535,089
3.125%, 05/15/19		5,300		5,647,812
3.375%, 11/15/19		475		510,922
1.000%, 11/30/19		11,100		10,429,660
2.000%, 11/15/21		2,200		2,099,797
1.750%, 05/15/23		875		788,662
2.500%, 08/15/23		3,300		3,169,030
U.S. Treasury Strip Principal 0.000%, 11/15/24+		7,800		5,451,919
TOTAL U.S. TREASURY OBLIGATIONS (Cost $235,811,074)				236,000,913
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 5.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		28,646,819		28,646,819
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		272		272
Wells Fargo Advantage Government Money Market Fund - Institutional Class		52		52
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 $28,648,618)				28,648,618
TOTAL INVESTMENTS — 100.0% (Cost $525,919,013)			$	531,377,502

† 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.

Ÿ Variable Rate Security. Rates shown represents rates in effect as of 12/31/2013.

+ 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.

Country Weightings as of 12/31/2013††
United States	94	%
Canada	1
Japan	1
Luxembourg	1
Mexico	1
United Kingdom	1
Other	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	236,000,913	$	—	$	236,000,913	$	—
AGENCY OBLIGATION		7,159,064		—		7,159,064		—
ASSET BACKED SECURITIES		12,186,544		—		12,186,544		—
COMMERCIAL MORTGAGE BACKED SECURITIES		23,226,884		—		23,226,884		—
CORPORATE BONDS		129,050,898		—		129,050,898		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		85,104,611		—		85,104,611		—
MUNICIPAL NOTES		2,071,900		—		2,071,900		—
MUNICIPAL BONDS		7,928,070		—		7,928,070		—
SHORT-TERM INVESTMENTS		28,648,618		28,648,618		—		—
TOTAL INVESTMENTS	$	531,377,502	$	28,648,618	$	502,728,884	$	—

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.

70

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
ASSET BACKED SECURITIES — 0.4%
Continental Airlines 2009-2 Class A, Pass Through Trust 7.25%, 11/10/19	$	41	$	47,293
Continental Airlines 2009-2 Class B Pass Through Trust 9.250%, 05/10/17 144A @^		30		33,758
Continental Airlines 2012-3 Class C Pass Through Certificates 6.125%, 04/29/18		325		339,625
GTP Acquisition Partners I LLC 7.628%, 06/15/16 144A @		250		268,193
TOTAL ASSET BACKED SECURITIES (Cost $646,785)				688,869
	Number of Shares		Value†
COMMON STOCKS — 1.5%
Airlines — 0.2%
Delta Air Lines, Inc.		11,200		307,664
Auto Manufacturers — 0.2%
General Motors Co.*		9,300		380,091
Auto Parts & Equipment — 0.1%
TRW Automotive Holdings Corp.*		3,825		284,542
Electric — 0.0%
NRG Yield, Inc., Class A		2,200		88,022
Entertainment — 0.0%
New Cotai Participation Class B*144A @^~		1		24,557
Media — 0.2%
Liberty Global PLC, Class A*		4,100		364,859
Oil & Gas — 0.4%
Antero Resources Corp.*		4,500		285,480
PBF Energy, Inc.		6,100		191,906
Range Resources Corp.		2,300		193,913
				671,299
Packaging and Containers — 0.2%
Smurfit Kappa Group PLC		11,850		291,645
Real Estate — 0.1%
The Howard Hughes Corp.*		1,600		192,160
Telecommunications — 0.1%
Crown Castle International Corp.*		1,750		128,502
TOTAL COMMON STOCKS (Cost $1,952,944)				2,733,341
PREFERRED STOCKS — 0.7%
Banks — 0.5%
Ally Financial, Inc.144A @		500		478,750
GMAC Capital Trust I		18,100		483,994
				962,744
Media — 0.1%
Spanish Broadcasting System, Inc.*^		179		143,200

	Number of Shares		Value†
Packaging and Containers — 0.0%
Smurfit-Stone Container Corp. (Escrow) CONV.*^~		725	$	0
Telecommunications — 0.1%
Crown Castle International Corp.*		2,450		245,098
TOTAL PREFERRED STOCKS (Cost $1,290,439)				1,351,042
	Par (000)		Value†
REAL ESTATE INVESTMENT TRUSTS — 0.1%
Diversified — 0.1%
American Tower Corp. (Cost $73,106)	$	1,375		109,753
CORPORATE BONDS — 91.7%
Advertising — 0.3%
MDC Partners, Inc. 6.750%, 04/01/20 144A @		525		549,281
Aerospace & Defense — 0.5%
Accudyne Industries LLC 7.750%, 12/15/20 144A @		225		238,500
Ducommun, Inc. 9.750%, 07/15/18		300		333,750
Kratos Defense & Security Solutions, Inc. 10.000%, 06/01/17		350		377,562
				949,812
Airlines — 1.3%
American Airlines 2013-1 Class A Pass Through Trust 4.000%, 07/15/25 144A @		70		67,725
American Airlines 2013-1 Class B Pass Through Trust 5.625%, 01/15/21 144A @		75		75,188
American Airlines 2013-1 Class C Pass Through Trust 6.125%, 07/15/18 144A @^		200		201,500
United Continental Holdings, Inc.
6.375%, 06/01/18		325		339,625
6.000%, 12/01/20		375		374,063
8.000%, 07/15/24		275		275,825
6.000%, 07/15/26		75		64,500
6.000%, 07/15/28		100		84,250
US Airways 2012-2 Class A, Pass Through Trust 4.625%, 06/03/25		75		75,957
US Airways 2012-2 Class B, Pass Through Trust 6.750%, 06/03/21		35		37,129
US Airways Group, Inc. 6.125%, 06/01/18		725		730,437
				2,326,199

71

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Apparel — 0.9%
Hanesbrands, Inc. 6.375%, 12/15/20	$	250	$	273,125
Levi Strauss & Co. 6.875%, 05/01/22		200		220,000
QS Wholesale, Inc.
7.875%, 08/01/18 144A @		175		189,875
10.000%, 08/01/20		325		367,250
The William Carter Co. 5.250%, 08/15/21 144A @		500		507,500
Wolverine World Wide, Inc. 6.125%, 10/15/20		100		107,000
				1,664,750
Auto Manufacturers — 1.5%
Chrysler Group LLC 8.250%, 06/15/21		1,125		1,279,687
CNH Finance Europe S.A. 6.250%, 03/09/18		275		428,919
General Motors Co. 6.250%, 10/02/43 144A @		250		259,688
Jaguar Land Rover Automotive PLC 5.625%, 02/01/23 144A @		600		600,000
Navistar International Corp. 8.250%, 11/01/21		175		181,125
				2,749,419
Auto Parts & Equipment — 1.9%
Affinia Group, Inc. 7.750%, 05/01/21		75		78,750
Allison Transmission, Inc. 7.125%, 05/15/19 144A @		350		377,125
American Axle & Manufacturing, Inc.
5.125%, 02/15/19		100		102,750
6.250%, 03/15/21		200		212,500
6.625%, 10/15/22		175		184,187
Dana Holding Corp. 5.375%, 09/15/21		375		376,406
Delphi Corp.
5.875%, 05/15/19		75		79,313
6.125%, 05/15/21		100		110,875
5.000%, 02/15/23		200		205,750
Gestamp Funding Luxembourg S.A. 5.625%, 05/31/20 144A @		300		305,250
Pittsburgh Glass Works LLC 8.000%, 11/15/18 144A @		175		184,188
Schaeffler Finance BV 4.750%, 05/15/21 144A @		400		399,000
Schaeffler Holding Finance BV PIK (Cash coupon 6.875%, PIK 7.625%) 08/15/18 144A @		250		265,000
The Goodyear Tire & Rubber Co.
8.250%, 08/15/20		250		279,375
8.750%, 08/15/20		100		117,000
6.500%, 03/01/21		300		318,000
				3,595,469

	Par (000)		Value†
Banks — 2.7%
ABN AMRO Bank NV 4.310%, 03/29/49•	$	350	$	478,849
Ally Financial, Inc.
7.500%, 09/15/20		325		378,625
8.000%, 11/01/31		225		269,156
Barclays PLC
8.000%, 12/15/49•		200		277,092
8.250%, 12/31/49•		475		489,250
CIT Group, Inc.
4.250%, 08/15/17		350		364,437
6.625%, 04/01/18 144A @		500		561,875
5.375%, 05/15/20		300		318,750
5.000%, 08/15/22		225		219,375
Credit Suisse Group AG 7.500%, 12/11/49 144A @ •		250		264,063
Provident Funding Associates LP
10.125%, 02/15/19 144A @		100		109,000
6.750%, 06/15/21 144A @		300		298,500
Synovus Financial Corp.
5.125%, 06/15/17		600		619,500
7.875%, 02/15/19		300		336,750
				4,985,222
Beverages — 0.2%
Constellation Brands, Inc. 6.000%, 05/01/22		300		320,250
Building Materials — 3.2%
Ainsworth Lumber Co. Ltd. 7.500%, 12/15/17 144A @		92		98,900
Associated Materials LLC 9.125%, 11/01/17		675		720,562
Builders FirstSource, Inc. 7.625%, 06/01/21 144A @		250		261,250
Building Materials Corp. of America 6.750%, 05/01/21 144A @		250		270,625
Cemex Finance LLC 9.375%, 10/12/22 144A @		295		332,613
Cemex S.A.B. de CV 9.000%, 01/11/18 144A @		765		839,587
Euramax International, Inc. 9.500%, 04/01/16		325		325,813
Interline Brands, Inc. PIK 10.000%, 11/15/18		125		136,563
Nortek, Inc.
10.000%, 12/01/18		300		331,125
8.500%, 04/15/21		350		387,625
Reliance Intermediate Holdings LP 9.500%, 12/15/19 144A @		225		245,250
Summit Materials LLC 10.500%, 01/31/20		250		275,000
Texas Industries, Inc. 9.250%, 08/15/20		200		222,750
USG Corp.
9.750%, 01/15/18		450		532,125
8.375%, 10/15/18 144A @		50		54,375
5.875%, 11/01/21 144A @		100		104,000

72

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Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Building Materials — (continued)
Vulcan Materials Co. 7.500%, 06/15/21	$	300	$	342,000
Wienerberger AG 6.500%, 12/29/49•		325		438,497
				5,918,660
Chemicals — 2.8%
Celanese U.S. Holdings LLC 4.625%, 11/15/22		450		430,875
Ciech Group Financing AB 9.500%, 11/30/19 144A @		250		392,110
Hexion US Finance Corp.
8.875%, 02/01/18		600		623,250
6.625%, 04/15/20		575		589,375
Huntsman International LLC
8.625%, 03/15/20		50		55,313
4.875%, 11/15/20		125		123,125
Ineos Finance PLC 8.375%, 02/15/19 144A @		375		417,187
Ineos Group Holdings S.A. 6.125%, 08/15/18 144A @		200		201,000
Kerling PLC 10.625%, 02/01/17 144A @		200		291,649
Momentive Performance Materials, Inc.
8.875%, 10/15/20		125		131,563
9.000%, 01/15/21		750		658,125
PolyOne Corp.
7.375%, 09/15/20		150		165,750
5.250%, 03/15/23		250		243,750
PQ Corp. 8.750%, 05/01/18 144A @		475		517,750
US Coatings Acquisition, Inc.
5.750%, 02/01/21 144A @		100		143,772
7.375%, 05/01/21 144A @		150		159,938
				5,144,532
Coal — 0.4%
Foresight Energy LLC 7.875%, 08/15/21 144A @		275		282,562
Murray Energy Corp. 8.625%, 06/15/21 144A @		375		388,125
Peabody Energy Corp. 6.000%, 11/15/18		75		79,875
				750,562
Commercial Services — 2.9%
Alliance Data Systems Corp. 6.375%, 04/01/20 144A @		275		288,063
American Capital Ltd. 6.500%, 09/15/18 144A @		325		338,812
Ashtead Capital, Inc. 6.500%, 07/15/22 144A @		125		133,281
Ceridian Corp. 8.875%, 07/15/19 144A @		125		143,750
CoreLogic, Inc. 7.250%, 06/01/21		350		379,750
Europcar Groupe S.A. 11.500%, 05/15/17 144A @		225		360,669

	Par (000)		Value†
Commercial Services — (continued)
FTI Consulting, Inc.
6.750%, 10/01/20	$	75	$	81,000
6.000%, 11/15/22		200		202,500
H&E Equipment Services, Inc. 7.000%, 09/01/22		150		163,500
Igloo Holdings Corp. PIK (Cash coupon 8.250%, PIK 9.000%) 12/15/17 144A @		175		178,281
Jaguar Holding Co. I PIK (Cash coupon 9.375%, PIK 10.125%) 10/15/17 144A @		100		105,750
Jaguar Holding Co. II 9.500%, 12/01/19 144A @		350		393,750
Laureate Education, Inc. 9.250%, 09/01/19 144A @		500		543,750
Lender Processing Services, Inc. 5.750%, 04/15/23		425		439,875
Nord Anglia Education UK Holdings PLC 10.250%, 04/01/17 144A @		425		466,437
Safway Group Holding LLC 7.000%, 05/15/18 144A @		125		131,875
ServiceMaster Co. 8.000%, 02/15/20		125		127,500
TransUnion Holding Co, Inc. PIK (Cash coupon 8.125%, PIK 8.875%) 06/15/18		150		158,250
Truven Health Analytics, Inc. 10.625%, 06/01/20		125		141,406
United Rentals North America, Inc. 6.125%, 06/15/23		175		177,625
Verisure Holding AB 8.750%, 09/01/18 144A @		300		451,317
				5,407,141
Computers — 1.0%
Dell, Inc.
5.650%, 04/15/18		175		178,719
5.875%, 06/15/19		275		277,062
4.625%, 04/01/21		100		89,750
7.100%, 04/15/28		275		242,000
iGATE Corp. 9.000%, 05/01/16		750		796,875
SunGard Data Systems, Inc. 6.625%, 11/01/19		250		262,500
				1,846,906
Cosmetics & Personal Care — 0.0%
Avon Products, Inc. 4.600%, 03/15/20		90		89,248
Distribution & Wholesale — 0.4%
American Builders & Contractors Supply Co., Inc. 5.625%, 04/15/21 144A @		150		150,750
HD Supply, Inc.
7.500%, 07/15/20		500		538,750
11.500%, 07/15/20		125		149,219
				838,719

73

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Diversified Financial Services — 4.3%
AerCap Aviation Solutions BV 6.375%, 05/30/17	$	225	$	243,563
Aircastle Ltd.
6.750%, 04/15/17		425		473,875
6.250%, 12/01/19		350		374,937
7.625%, 04/15/20		25		28,063
Cantor Commercial Real Estate Co. LP 7.750%, 02/15/18 144A @		275		290,813
DBP Holding Corp. 7.750%, 10/15/20 144A @		275		273,625
Denali Borrower LLC 5.625%, 10/15/20 144A @		450		446,062
E*TRADE Financial Corp.
6.750%, 06/01/16		450		488,250
6.375%, 11/15/19		350		375,812
General Motors Financial Co., Inc.
4.750%, 08/15/17 144A @		375		397,969
3.250%, 05/15/18 144A @		250		250,000
6.750%, 06/01/18		75		85,500
Icahn Enterprises LP 6.000%, 08/01/20 144A @		225		231,750
International Lease Finance Corp. 5.750%, 05/15/16		175		187,469
Jefferies LoanCore LLC 6.875%, 06/01/20 144A @		400		396,000
Ladder Capital Finance Holdings LLLP. 7.375%, 10/01/17		200		210,000
MPH Intermediate Holding Co. 2 PIK (Cash coupon 8.375%, PIK 9.125%) 08/01/18 144A @		175		182,000
Nationstar Mortgage LLC
6.500%, 07/01/21		300		285,750
6.500%, 06/01/22		300		281,250
Neuberger Berman Group LLC
5.625%, 03/15/20 144A @		225		236,250
5.875%, 03/15/22 144A @		200		206,000
Numericable Finance & Co. SCA 12.375%, 02/15/19 144A @		276		463,647
Outerwall, Inc. 6.000%, 03/15/19		450		459,000
Patriot Merger Corp. 9.000%, 07/15/21 144A @		275		288,750
Springleaf Finance Corp. 6.900%, 12/15/17		275		300,575
Walter Investment Management Corp. 7.875%, 12/15/21 144A @		425		430,312
				7,887,222
Electric — 1.9%
Calpine Corp.
7.875%, 07/31/20 144A @		221		241,995
7.500%, 02/15/21 144A @		252		274,995
CMS Energy Corp. 5.050%, 03/15/22		130		140,344
DPL, Inc. 7.250%, 10/15/21		125		126,563

	Par (000)		Value†
Electric — (continued)
GenOn Energy, Inc. 9.500%, 10/15/18	$	1,375	$	1,557,187
Infinis PLC 7.000%, 02/15/19 144A @		300		530,321
Israel Electric Corp. Ltd. 5.625%, 06/21/18 144A @		375		396,656
NRG Energy, Inc. 6.625%, 03/15/23		275		277,062
				3,545,123
Electrical Components & Equipment — 0.0%
General Cable Corp. 6.500%, 10/01/22 144A @		50		49,000
Electronics — 0.3%
Rexel S.A. 5.250%, 06/15/20 144A @		225		226,125
Techem GmbH 6.125%, 10/01/19 144A @		100		149,883
Trionista Holdco GmbH 5.000%, 04/30/20 144A @		100		140,735
				516,743
Engineering & Construction — 0.6%
Aguila 3 S.A.
7.875%, 01/31/18 144A @		325		344,500
7.875%, 01/31/18 144A @		300		356,913
Deutsche Raststaetten Gruppe IV GmbH 6.750%, 12/30/20 144A @		100		144,105
Dycom Investments, Inc. 7.125%, 01/15/21		275		296,312
				1,141,830
Entertainment — 2.4%
Cedar Fair LP 5.250%, 03/15/21		275		271,562
DreamWorks Animation SKG, Inc. 6.875%, 08/15/20 144A @		275		290,812
Graton Economic Development Authority 9.625%, 09/01/19 144A @		400		464,000
Great Canadian Gaming Corp. 6.625%, 07/25/22 144A @		150		148,094
Intralot Finance Luxembourg S.A. 9.750%, 08/15/18 144A @		125		188,085
Isle of Capri Casinos, Inc. 5.875%, 03/15/21		50		49,125
MU Finance PLC 8.375%, 02/01/17 144A @		223		232,622
National CineMedia LLC 6.000%, 04/15/22		175		180,687
New Cotai LLC PIK 10.625%, 05/01/19 144A @		264		270,770
Peninsula Gaming LLC 8.375%, 02/15/18 144A @		200		218,000
Pinnacle Entertainment, Inc. 7.500%, 04/15/21		375		406,875
PNK Finance Corp. 6.375%, 08/01/21 144A @		325		332,312

74

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Entertainment — (continued)
PortAventura Entertainment Barcelona BV 7.250%, 12/01/20 144A @	$	100	$	140,322
Seneca Gaming Corp. 8.250%, 12/01/18 144A @		450		483,750
Six Flags Entertainment Corp. 5.250%, 01/15/21 144A @		350		342,125
Vougeot Bidco PLC 7.875%, 07/15/20 144A @		100		177,519
WMG Acquisition Corp.
11.500%, 10/01/18		150		172,500
6.000%, 01/15/21 144A @		138		143,348
				4,512,508
Environmental Control — 0.7%
Clean Harbors, Inc.
5.250%, 08/01/20		125		128,750
5.125%, 06/01/21		175		176,750
Darling Escrow Corp. 5.375%, 01/15/22 144A @		175		176,312
Tervita Corp.
10.875%, 02/15/18 144A @		250		254,375
8.000%, 11/15/18 144A @		350		361,375
9.750%, 11/01/19 144A @		150		147,000
				1,244,562
Food — 3.0%
ARAMARK Corp. 5.750%, 03/15/20 144A @		200		209,000
Barry Callebaut Services NV 5.500%, 06/15/23 144A @		475		484,500
BI-LO LLC PIK (Cash coupon 8.625%, PIK 9.375%) 09/15/18 144A @		175		182,875
Bumble Bee Holdings, Inc. 9.000%, 12/15/17 144A @		161		176,295
Del Monte Corp. 7.625%, 02/15/19		825		856,969
Elior Finance & Co. SCA 6.500%, 05/01/20 144A @		100		149,952
ESAL GmbH 6.250%, 02/05/23 144A @		605		542,987
JBS Investments GmbH 7.750%, 10/28/20 144A @		200		202,000
Land O’ Lakes Capital Trust I 7.450%, 03/15/28 144A @		200		192,000
Marfrig Holding Europe BV 11.250%, 09/20/21 144A @		350		334,250
Michael Foods Holding, Inc. PIK (Cash coupon 8.500%, PIK 9.250%) 07/15/18 144A @		200		211,500
Minerva Luxembourg S.A. 12.250%, 02/10/22 144A @		200		230,000
Post Holdings, Inc.
7.375%, 02/15/22		100		107,000
7.375%, 02/15/22 144A @		125		133,750

	Par (000)		Value†
Food — (continued)
R&R Ice Cream PLC
8.375%, 11/15/17 144A @	$	200	$	292,959
9.250%, 05/15/18 144A @		250		354,244
US Foods, Inc. 8.500%, 06/30/19		825		903,375
				5,563,656
Forest Products & Paper — 0.8%
Clearwater Paper Corp. 7.125%, 11/01/18		100		106,750
Mercer International, Inc. 9.500%, 12/01/17		500		545,000
Sappi Papier Holding GmbH
7.750%, 07/15/17 144A @		200		219,000
8.375%, 06/15/19 144A @		200		219,500
6.625%, 04/15/21 144A @		400		394,000
				1,484,250
Gas — 0.2%
Sabine Pass LNG LP 6.500%, 11/01/20		375		389,063
Hand & Machine Tools — 0.3%
BC Mountain LLC 7.000%, 02/01/21 144A @		175		176,750
Milacron LLC 7.750%, 02/15/21 144A @		325		341,250
				518,000
Healthcare Products — 0.9%
Biomet, Inc. 6.500%, 08/01/20		550		577,500
Hologic, Inc. 6.250%, 08/01/20		175		184,625
Kinetic Concepts, Inc.
10.500%, 11/01/18		325		373,750
12.500%, 11/01/19		150		168,750
Universal Hospital Services, Inc. 7.625%, 08/15/20		325		342,875
				1,647,500
Healthcare Services — 2.7%
Aviv Healthcare Properties LP 7.750%, 02/15/19		100		107,500
Capella Healthcare, Inc. 9.250%, 07/01/17		350		372,750
Centene Corp. 5.750%, 06/01/17		225		239,063
Community Health Systems, Inc.
8.000%, 11/15/19		225		244,125
7.125%, 07/15/20		375		389,062
Fresenius Medical Care U.S. Finance II, Inc.
5.625%, 07/31/19 144A @		250		270,000
5.875%, 01/31/22 144A @		100		105,500
HCA Holdings, Inc. 6.250%, 02/15/21		275		287,719
IASIS Healthcare LLC 8.375%, 05/15/19		375		397,500
Kindred Healthcare, Inc. 8.250%, 06/01/19		250		266,250

75

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Healthcare Services — (continued)
Medi-Partenaires SAS 7.000%, 05/15/20 144A @	$	300	$	423,157
Priory Group No. 3 PLC 7.000%, 02/15/18 144A @		100		174,290
Select Medical Corp. 6.375%, 06/01/21		350		342,125
Tenet Healthcare Corp.
6.000%, 10/01/20 144A @		275		287,031
4.500%, 04/01/21		600		568,500
Universal Health Services, Inc. 7.000%, 10/01/18		75		80,063
Voyage Care Bondco PLC 6.500%, 08/01/18 144A @		100		170,481
Wellcare Health Plans, Inc. 5.750%, 11/15/20		275		281,187
				5,006,303
Holding Companies — 1.1%
CeramTec Group GmbH 8.250%, 08/15/21 144A @		275		410,476
Harbinger Group, Inc. 7.875%, 07/15/19 144A @		425		456,344
KraussMaffei Group GmbH 8.750%, 12/15/20 144A @		250		383,478
Opal Acquisition, Inc. 8.875%, 12/15/21 144A @		350		348,250
Polish Television Holding Bv 11.000%, 01/15/21 144A @		200		295,281
WaveDivision Escrow LLC 8.125%, 09/01/20 144A @		75		79,500
				1,973,329
Home Builders — 0.9%
KB Home 7.000%, 12/15/21		375		390,937
Meritage Homes Corp. 7.000%, 04/01/22		100		105,750
Shea Homes LP 8.625%, 05/15/19		425		470,687
Standard Pacific Corp. 10.750%, 09/15/16		175		210,875
William Lyon Homes, Inc.
8.500%, 11/15/20		275		297,688
8.500%, 11/15/20 144A @		125		135,313
				1,611,250
Home Furnishings — 0.1%
Tempur Sealy International, Inc. 6.875%, 12/15/20		175		190,750
Household Products & Wares — 0.9%
Reynolds Group Issuer, Inc.
9.000%, 04/15/19		950		1,018,875
9.875%, 08/15/19		225		250,312
5.750%, 10/15/20		100		102,000
Spectrum Brands Escrow Corp.
6.375%, 11/15/20 144A @		100		106,750
6.625%, 11/15/22 144A @		100		106,375

	Par (000)		Value†
Household Products & Wares — (continued)
The Scotts Miracle-Gro Co. 7.250%, 01/15/18	$	100	$	104,000
				1,688,312
Housewares — 0.5%
Bormioli Rocco Holdings S.A. 10.000%, 08/01/18 144A @		475		714,068
RSI Home Products, Inc. 6.875%, 03/01/18 144A @		200		209,500
				923,568
Insurance — 0.6%
A-S Co-Issuer Subsidiary, Inc. 7.875%, 12/15/20 144A @		150		157,500
CNO Financial Group, Inc. 6.375%, 10/01/20 144A @		250		266,250
Onex USI Aquisition Corp. 7.750%, 01/15/21 144A @		225		230,062
Towergate Finance PLC
8.500%, 02/15/18 144A @		125		218,897
10.500%, 02/15/19 144A @		125		217,655
				1,090,364
Internet — 1.0%
Ancestry.Com, Inc. PIK (Cash coupon 9.625%, PIK 10.375%) 10/15/18 144A @		300		310,500
Cerved Technologies SpA 6.375%, 01/15/20 144A @		100		145,233
Equinix, Inc.
7.000%, 07/15/21		300		327,750
5.375%, 04/01/23		325		317,688
Netflix, Inc. 5.375%, 02/01/21 144A @		475		480,937
Pacnet Ltd. 9.000%, 12/12/18 144A @		200		203,750
				1,785,858
Investment Companies — 0.3%
Ares Capital Corp. 4.875%, 11/30/18		475		486,194
Iron & Steel — 2.0%
AK Steel Corp. 7.625%, 05/15/20		200		199,500
ArcelorMittal
6.125%, 06/01/18		500		548,750
10.350%, 06/01/19		275		347,875
5.750%, 08/05/20		150		159,375
6.000%, 03/01/21		275		291,500
6.750%, 02/25/22		150		163,125
Bluescope Steel Finance Ltd. 7.125%, 05/01/18 144A @		350		366,625
Essar Steel Algoma, Inc. 9.875%, 06/15/15 144A @		175		106,750
Ryerson, Inc.
9.000%, 10/15/17		425		450,500
11.250%, 10/15/18		650		689,000

76

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Iron & Steel — (continued)
Steel Dynamics, Inc. 6.125%, 08/15/19	$	150	$	162,375
United States Steel Corp. 6.875%, 04/01/21		275		289,437
				3,774,812
Leisure Time — 0.5%
Cirsa Funding Luxembourg S.A. 8.750%, 05/15/18 144A @		200		291,649
Easton-Bell Sports, Inc. 9.750%, 12/01/16		50		52,376
NCL Corp Ltd. 5.000%, 02/15/18		125		128,750
Travelport LLC 11.875%, 09/01/16		150		152,250
Travelport LLC CAP (Cap Bond. 11.375%, Cash 2.500%) 03/01/16 144A @		228		241,249
				866,274
Lodging — 1.6%
Caesars Entertainment Operating Co., Inc. 8.500%, 02/15/20		400		385,000
Chester Downs & Marina LLC 9.250%, 02/01/20 144A @		400		401,000
Downstream Development Authority of the Quapaw Tribe of Oklahoma 10.500%, 07/01/19 144A @		150		151,500
MGM Resorts International
6.750%, 10/01/20		425		454,750
6.625%, 12/15/21		875		925,312
Playa Resorts Holding BV 8.000%, 08/15/20 144A @		150		159,188
Seminole Hard Rock Entertainment, Inc. 5.875%, 05/15/21 144A @		150		147,375
Station Casinos LLC 7.500%, 03/01/21		375		399,375
				3,023,500
Machinery — Construction & Mining — 0.4%
Terex Corp.
6.500%, 04/01/20		125		133,750
6.000%, 05/15/21		525		542,719
				676,469
Machinery — Diversified — 0.8%
Columbus McKinnon Corp. 7.875%, 02/01/19		275		296,313
Frigoglass Finance BV 8.250%, 05/15/18 144A @		375		539,104
Gardner Denver, Inc. 6.875%, 08/15/21 144A @		325		324,187
The Manitowoc Co., Inc.
8.500%, 11/01/20		125		141,875
5.875%, 10/15/22		225		227,250
				1,528,729

	Par (000)		Value†
Media — 8.3%
AMC Networks, Inc. 4.750%, 12/15/22	$	475	$	452,437
Arqiva Broadcast Finance PLC 9.500%, 03/31/20 144A @		375		689,293
Cable Communications Systems NV 7.500%, 11/01/20 144A @		300		423,029
Cablevision Systems Corp. 8.625%, 09/15/17		125		145,625
CCO Holdings LLC
6.625%, 01/31/22		625		643,750
5.250%, 09/30/22		400		373,500
5.125%, 02/15/23		410		380,275
Central European Media Enterprises Ltd. 11.625%, 09/15/16 144A @		450		617,520
Cequel Communications Holdings I LLC
6.375%, 09/15/20 144A @		925		948,125
5.125%, 12/15/21 144A @		650		609,375
Clear Channel Communications, Inc. 9.000%, 12/15/19		575		586,500
Clear Channel Worldwide Holdings, Inc.
7.625%, 03/15/20		50		52,000
7.625%, 03/15/20		75		78,844
6.500%, 11/15/22		50		50,688
6.500%, 11/15/22		250		255,312
Cogeco Cable, Inc. 4.875%, 05/01/20 144A @		150		144,750
CSC Holdings LLC 6.750%, 11/15/21		150		161,625
Dex Media, Inc. CAP (Cap Bond. 7.000% Cash 7.000% Cap) 01/29/17		358		186,095
DISH DBS Corp.
4.250%, 04/01/18		350		357,000
5.125%, 05/01/20		375		375,937
5.875%, 07/15/22		200		200,000
Gannett Co, Inc.
5.125%, 10/15/19 144A @		200		208,000
6.375%, 10/15/23 144A @		125		129,375
ION Media Networks, Inc. 11.000%, 07/31/15~		1		0
McGraw-Hill Global Education Holdings LLC 9.750%, 04/01/21 144A @		275		303,875
Mediacom Broadband LLC 6.375%, 04/01/23		250		255,625
MPL 2 Acquisition Canco, Inc. 9.875%, 08/15/18 144A @		200		209,000
Nara Cable Funding Ltd.
8.875%, 12/01/18 144A @		200		215,000
8.875%, 12/01/18 144A @		200		213,000
Sinclair Television Group, Inc. 6.125%, 10/01/22		300		303,000
Sirius XM Radio, Inc.
4.250%, 05/15/20 144A @		225		212,625
5.750%, 08/01/21 144A @		275		277,750
4.625%, 05/15/23 144A @		225		203,625

77

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Media — (continued)
Starz LLC 5.000%, 09/15/19	$	250	$	255,625
Townsquare Radio LLC 9.000%, 04/01/19 144A @		200		216,500
TVN Finance Corp. III AB 7.375%, 12/15/20 144A @		125		185,290
Unitymedia Hessen GmbH & Co. KG 7.500%, 03/15/19 144A @		125		187,020
Unitymedia KabelBW GmbH 9.500%, 03/15/21 144A @		450		718,681
Univision Communications, Inc.
7.875%, 11/01/20 144A @		325		357,094
8.500%, 05/15/21 144A @		850		935,000
6.750%, 09/15/22 144A @		550		602,250
5.125%, 05/15/23 144A @		725		724,094
Videotron Ltd. 6.875%, 07/15/21 144A @		325		335,785
WideOpenWest Finance LLC
10.250%, 07/15/19		275		305,250
13.375%, 10/15/19		300		347,250
				15,432,394
Metal Fabricate/Hardware — 0.3%
JMC Steel Group, Inc. 8.250%, 03/15/18 144A @		300		303,000
Severstal Columbus LLC 10.250%, 02/15/18		275		291,500
				594,500
Mining — 0.8%
Aleris International, Inc. 7.875%, 11/01/20		225		239,063
ALROSA Finance S.A. 7.750%, 11/03/20 144A @		225		249,412
Eldorado Gold Corp. 6.125%, 12/15/20 144A @		475		457,187
FMG Resources August 2006 Pty Ltd. 7.000%, 11/01/15 144A @		76		78,850
Magnetation LLC 11.000%, 05/15/18 144A @		250		272,500
Novelis, Inc. 8.750%, 12/15/20		175		194,688
				1,491,700
Miscellaneous Manufacturing — 0.2%
Trinseo Materials Operating SCA 8.750%, 02/01/19 144A @		275		283,938
Office & Business Equipment — 0.6%
CDW LLC
12.535%, 10/12/17		47		49,115
8.000%, 12/15/18		17		18,530
8.500%, 04/01/19		750		828,750
Magnolia S.A. 9.000%, 08/01/20 144A @		175		252,064
				1,148,459

	Par (000)		Value†
Oil & Gas — 6.9%
Antero Resources Finance Corp.
7.250%, 08/01/19	$	389	$	418,175
6.000%, 12/01/20		700		735,000
5.375%, 11/01/21 144A @		325		328,250
Athlon Holdings LP 7.375%, 04/15/21 144A @		800		840,000
Atwood Oceanics, Inc. 6.500%, 02/01/20		150		160,125
Bill Barrett Corp.
7.625%, 10/01/19		650		698,750
7.000%, 10/15/22		700		726,250
Chesapeake Energy Corp.
5.375%, 06/15/21		175		181,125
5.750%, 03/15/23		500		515,000
Concho Resources, Inc.
7.000%, 01/15/21		150		165,000
5.500%, 04/01/23		1,025		1,055,750
Continental Resources, Inc. 5.000%, 09/15/22		250		259,688
Halcon Resources Corp. 9.750%, 07/15/20 144A @		150		156,188
Laredo Petroleum, Inc. 7.375%, 05/01/22		300		325,500
Offshore Drilling Holding S.A. 8.375%, 09/20/20 144A @		250		266,250
PBF Holding Co LLC 8.250%, 02/15/20		375		406,875
PDC Energy, Inc. 7.750%, 10/15/22		725		783,000
Penn Virginia Corp. 8.500%, 05/01/20		450		483,750
Precision Drilling Corp.
6.625%, 11/15/20		275		293,562
6.500%, 12/15/21		75		79,875
Range Resources Corp.
5.000%, 08/15/22		100		98,250
5.000%, 03/15/23		275		268,812
Samson Investment Co. 10.500%, 02/15/20 144A @		500		545,000
Seven Generations Energy Ltd. 8.250%, 05/15/20 144A @		200		216,000
SM Energy Co.
6.625%, 02/15/19		250		265,625
6.500%, 11/15/21		150		159,000
6.500%, 01/01/23		225		235,969
5.000%, 01/15/24 144A @		350		333,375
Swift Energy Co.
8.875%, 01/15/20		225		234,000
7.875%, 03/01/22		625		618,750
Tullow Oil PLC 6.000%, 11/01/20 144A @		200		203,000
Western Refining, Inc. 6.250%, 04/01/21		275		277,062
WPX Energy, Inc. 6.000%, 01/15/22		450		450,000
				12,782,956

78

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Oil & Gas Services — 0.1%
Exterran Partners LP 6.000%, 04/01/21 144A @	$	275	$	272,938
Packaging and Containers — 1.6%
AEP Industries, Inc. 8.250%, 04/15/19		150		161,250
ARD Finance S.A. PIK (Ist coupon is PIK, then Cash or PIK till 06/2016, then cash after) 11.125%, 06/01/18 144A @		235		251,734
Ardagh Packaging Finance PLC
9.250%, 10/15/20 144A @		450		673,236
7.000%, 11/15/20 144A @		250		252,500
Ball Corp. 7.375%, 09/01/19		100		108,000
Beverage Packaging Holdings Luxembourg II SA
5.625%, 12/15/16 144A @		225		229,500
6.000%, 06/15/17 144A @		125		126,562
BWAY Holding Co. 10.000%, 06/15/18		150		162,750
Consolidated Container Co. LLC 10.125%, 07/15/20 144A @		200		213,000
Exopack Holding Corp. 10.000%, 06/01/18 144A @		200		217,000
Graphic Packaging International, Inc. 4.750%, 04/15/21		175		173,250
Rexam PLC 6.750%, 06/29/67•		175		258,804
Tekni-Plex, Inc. 9.750%, 06/01/19 144A @		140		158,900
				2,986,486
Pharmaceuticals — 0.9%
Capsugel Finance Co. SCA 9.875%, 08/01/19 144A @		200		307,470
Capsugel S.A. PIK (Cash coupon 7.000%, PIK 7.750%) 05/15/19 144A @		200		203,750
Par Pharmaceutical Cos, Inc. 7.375%, 10/15/20		100		103,375
Valeant Pharmaceuticals International 6.375%, 10/15/20 144A @		500		526,875
Valeant Pharmaceuticals International Escrow Corp. 6.750%, 08/15/18 144A @		450		494,438
				1,635,908
Pipelines — 2.3%
El Paso LLC
8.250%, 02/15/16		100		109,037
6.500%, 09/15/20		25		26,808
7.800%, 08/01/31		100		101,477
7.750%, 01/15/32		325		329,893
Energy Transfer Equity LP 5.875%, 01/15/24		425		420,750
Kinder Morgan Finance Co. LLC 6.000%, 01/15/18 144A @		150		164,367

	Par (000)		Value†
Pipelines — (continued)
MarkWest Energy Partners LP 4.500%, 07/15/23	$	850	$	796,875
NuStar Logistics LP 6.750%, 02/01/21		250		257,979
Penn Virginia Resource Partners LP
8.250%, 04/15/18		150		159,000
8.375%, 06/01/20		305		336,262
6.500%, 05/15/21 144A @		100		103,500
Regency Energy Partners LP 5.500%, 04/15/23		175		170,625
Rockies Express Pipeline LLC
6.850%, 07/15/18 144A @		25		24,313
6.000%, 01/15/19 144A @		325		300,625
Sabine Pass Liquefaction LLC 5.625%, 04/15/23 144A @		150		140,250
Targa Resources Partners LP
5.250%, 05/01/23		50		48,438
4.250%, 11/15/23 144A @		875		783,125
				4,273,324
Real Estate — 1.2%
CBRE Services, Inc. 5.000%, 03/15/23		625		600,781
Dupont Fabros Technology LP 5.875%, 09/15/21		275		283,937
iStar Financial, Inc. 7.125%, 02/15/18		125		137,813
MPT Operating Partnership LP
6.875%, 05/01/21		225		240,750
6.375%, 02/15/22		125		129,375
Omega Healthcare Investors, Inc. 5.875%, 03/15/24		75		75,750
Realogy Group LLC 9.000%, 01/15/20 144A @		100		116,500
Reckson Operating Partnership LP 6.000%, 03/31/16		75		81,269
The Howard Hughes Corp. 6.875%, 10/01/21 144A @		625		650,000
				2,316,175
Retail — 4.3%
99 Cents Only Stores 11.000%, 12/15/19		225		255,375
AmeriGas Finance LLC 7.000%, 05/20/22		225		244,125
Building Materials Holding Corp. 9.000%, 09/15/18 144A @		350		377,125
Chinos Intermediate Holdings A, Inc. 7.750%, 05/01/19 144A @		375		383,437
Claire’s Stores, Inc.
9.000%, 03/15/19 144A @		325		352,625
6.125%, 03/15/20 144A @		150		144,750
CST Brands, Inc. 5.000%, 05/01/23		150		144,750
Ferrellgas LP
6.500%, 05/01/21		550		561,000
6.750%, 01/15/22 144A @		200		203,000

79

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Retail — (continued)
Jo-Ann Stores Holdings, Inc. PIK (Cash coupon 9.750%, PIK 10.500%) 10/15/19 144A @	$	200	$	209,250
Jo-Ann Stores, Inc. 8.125%, 03/15/19 144A @		400		418,500
New Academy Finance Co. LLC PIK (Cash coupon 8.000%, PIK 8.750%) 06/15/18 144A @		400		410,004
New Look Bondco I PLC 8.375%, 05/14/18 144A @		725		750,375
PC Nextco Holdings LLC PIK (Cash coupon 8.750%, PIK 9.500%) 08/15/19 144A @		350		359,187
Penske Automotive Group, Inc. 5.750%, 10/01/22		200		204,500
Rite Aid Corp.
6.750%, 06/15/21		475		498,156
7.700%, 02/15/27		350		361,375
rue21, Inc. 9.000%, 10/15/21 144A @		250		181,250
Sears Holdings Corp. 6.625%, 10/15/18		200		181,000
Sonic Automotive, Inc.
7.000%, 07/15/22		150		162,938
5.000%, 05/15/23		175		164,063
The Gymboree Corp. 9.125%, 12/01/18		400		368,500
The Pantry, Inc. 8.375%, 08/01/20		175		185,938
Wok Acquisition Corp. 10.250%, 06/30/20 144A @		800		869,000
				7,990,223
Semiconductors — 0.8%
NXP BV
5.750%, 02/15/21 144A @		200		209,000
5.750%, 03/15/23 144A @		250		254,375
Sensata Technologies BV 4.875%, 10/15/23 144A @		375		352,500
SunEdison, Inc. 2.750%, 01/01/21 144A @		262		291,095
SunEdison, Inc. CONV 7.750%, 04/01/19		350		375,375
				1,482,345
Software — 3.0%
ACI Worldwide, Inc. 6.375%, 08/15/20 144A @		125		130,625
Activision Blizzard, Inc.
5.625%, 09/15/21 144A @		700		724,500
6.125%, 09/15/23 144A @		175		182,438
BMC Software Finance, Inc. 8.125%, 07/15/21 144A @		350		360,500
Eagle Midco, Inc. PIK (Cash coupon 9.000%, PIK 9.750%) 06/15/18 144A @		425		443,062

	Par (000)		Value†
Software — (continued)
Epicor Software Corp. 8.625%, 05/01/19	$	225	$	244,125
First Data Corp.
6.750%, 11/01/20 144A @		525		546,000
12.625%, 01/15/21		1,425		1,672,594
Healthcare Technology Intermediate, Inc. PIK (Cash coupon 7.375%, PIK 8.125%) 09/01/18 144A @		225		234,000
Infor U.S., Inc.
11.500%, 07/15/18		100		115,250
9.375%, 04/01/19		300		337,500
InterXion Holding NV 6.000%, 07/15/20 144A @		100		144,870
MedAssets, Inc. 8.000%, 11/15/18		325		351,000
				5,486,464
Telecommunications — 11.1%
Alcatel-Lucent USA, Inc.
8.875%, 01/01/20 144A @		225		250,875
6.750%, 11/15/20 144A @		200		207,750
Altice Finco S.A.
9.875%, 12/15/20 144A @		400		450,000
9.000%, 06/15/23 144A @		325		488,461
8.125%, 01/15/24 144A @		200		207,500
CenturyLink, Inc. 5.625%, 04/01/20		725		737,687
Crown Castle International Corp. 5.250%, 01/15/23		850		833,000
Digicel Group Ltd.
10.500%, 04/15/18 144A @		200		214,000
8.250%, 09/30/20 144A @		400		414,500
Digicel Ltd. 6.000%, 04/15/21 144A @		200		193,000
EarthLink, Inc.
8.875%, 05/15/19		150		147,750
7.375%, 06/01/20		100		99,750
Eileme 1 AB PIK 14.250%, 08/15/20 144A @		246		267,796
Goodman Networks, Inc.
12.125%, 07/01/18 144A @		100		105,500
13.125%, 07/01/18 144A @		225		237,375
Hughes Satellite Systems Corp.
6.500%, 06/15/19		350		378,875
7.625%, 06/15/21		325		362,375
Intelsat Jackson Holdings S.A.
6.625%, 12/15/22 144A@		225		231,750
6.625%, 12/15/22		300		309,000
5.500%, 08/01/23 144A @		700		665,875
Intelsat Luxembourg S.A.
7.750%, 06/01/21 144A @		675		723,937
8.125%, 06/01/23 144A @		275		294,938
Level 3 Communications, Inc.
11.875%, 02/01/19		225		258,750
8.875%, 06/01/19		100		109,250

80

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Telecommunications — (continued)
Level 3 Financing, Inc.
7.000%, 06/01/20	$	125	$	132,500
8.625%, 07/15/20		250		280,000
Matterhorn Financing & CY SCA PIK 9.000%, 04/15/19 144A @		350		494,738
Matterhorn Midco & CY SCA 7.750%, 02/15/20 144A @		325		461,420
MetroPCS Wireless, Inc. 6.250%, 04/01/21 144A @		450		466,875
Millicom International Cellular SA 6.625%, 10/15/21 144A @		200		206,900
Mobile Challenger Intermediate Group SA PIK 8.750%, 03/15/19 144A @		150		174,458
NII Capital Corp.
10.000%, 08/15/16		675		357,750
7.625%, 04/01/21		275		112,750
Sable International Finance Ltd. 8.750%, 02/01/20 144A @		200		225,000
SBA Telecommunications, Inc. 8.250%, 08/15/19		70		75,075
Softbank Corp. 4.500%, 04/15/20 144A @		750		731,250
Sprint Communications, Inc. 11.500%, 11/15/21		500		655,000
Sprint Corp. 7.125%, 06/15/24 144A @		1,575		1,598,625
Syniverse Holdings, Inc. 9.125%, 01/15/19		300		327,750
T-Mobile USA, Inc.
6.464%, 04/28/19		450		478,125
6.633%, 04/28/21		450		473,625
6.731%, 04/28/22		550		573,375
6.836%, 04/28/23		225		233,438
Telecom Italia SpA 6.375%, 06/24/19		350		605,319
tw telecom Holdings, Inc.
5.375%, 10/01/22		150		147,375
5.375%, 10/01/22 144A @		250		245,625
UPC Holding BV
8.375%, 08/15/20 144A @		125		189,159
6.750%, 03/15/23 144A @		375		429,334
6.750%, 03/15/23 144A @		200		281,257
UPCB Finance V Ltd. 7.250%, 11/15/21 144A @		150		162,750
UPCB Finance VI Ltd. 6.875%, 01/15/22 144A @		225		239,063
VimpelCom Holdings BV
5.200%, 02/13/19 144A @		200		200,000
7.504%, 03/01/22 144A @		450		470,079
West Corp. 7.875%, 01/15/19		175		189,000
Wind Acquisition Finance S.A.
11.750%, 07/15/17 144A @		775		824,406
6.500%, 04/30/20 144A @		275		292,875
				20,524,590

	Par (000)		Value†
Textiles — 0.1%
SIWF Merger Sub, Inc. 6.250%, 06/01/21 144A @	$	150	$	151,313
Transportation — 0.4%
Florida East Coast Holdings Corp. PIK 10.500%, 08/01/17		135		139,235
Florida East Coast Railway Corp. 8.125%, 02/01/17		325		339,219
gategroup Finance (Luxembourg) S.A. 6.750%, 03/01/19 144A @		100		145,756
Watco Cos. LLC 6.375%, 04/01/23 144A @		175		173,250
				797,460
TOTAL CORPORATE BONDS (Cost $163,146,010)				169,912,513
LOAN AGREEMENTS — 4.4%‡
Airlines — 0.3%
American Airlines 4.750%, 06/27/19•		648		653,123
Auto Manufacturers — 0.1%
Navistar, Inc. 5.750%, 08/17/17•		125		126,680
Electirc — 0.4%
Equipower Resources Holding LLC 4.250%, 12/31/19•		697		698,242
Chemicals — 0.4%
Ineos US Finance LLC 4.000%, 05/04/18•		489		490,161
Univar, Inc. 5.000%, 06/30/17•		298		295,862
				786,023
Computers — 0.3%
Dell, Inc. 4.500%, 04/29/20		525		525,940
Diversified Financial Services — 0.1%
Nuveen Investments, Inc. 6.500%, 02/28/19•		200		198,400
Entertainment — 0.2%
Peninsula Gaming LLC 4.250%, 11/20/17•		380		382,703
Holding Companies — 0.1%
CeramTec GmbH 4.250%, 08/30/20		100		100,458
Machinery — Diversified — 0.1%
Gardner Denver, Inc. 4.250%, 07/30/20•		175		174,945
Media — 0.5%
McGraw-Hill Global Education Holdings LLC 9.000%, 03/22/19•		179		182,106

81

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

	Par (000)		Value†
LOAN AGREEMENTS‡ — (continued)
Media — (continued)
SuperMedia, Inc. PIK 11.600%, 12/30/16•	$	449	$	336,269
TWCC Holdings Corp. 7.000%, 06/26/20		325		334,752
				853,127
Oil & Gas — 0.5%
Chesapeake Energy Corp. 5.750%, 12/02/17•		350		357,850
Foresight Energy LLC 5.500%, 08/21/20•		274		277,399
Philadelphia Energy Solutions Refining and Marketing LLC 0.000%, 04/04/18•		100		87,945
TGGT Holdings 6.500%, 11/15/18		250		251,250
				974,444
Oil & Gas Services — 0.1%
Murray Energy Corp. 0.000%, 12/05/19		175		177,106
Real Estate Investment Trusts — 0.4%
CityCenter Holdings LLC 5.000%, 10/16/20		725		737,060
Retail — 0.7%
JC Penney Corp. 0.000%, 05/22/18		597		583,269
PF Chang’s China Bistro, Inc. 4.500%, 06/22/19•		494		494,061
The Gymboree Corp. 5.000%, 02/23/18•		200		186,584
				1,263,914
Telecommunications — 0.2%
Alcatel-Lucent USA, Inc. 5.750%, 01/30/19•		198		198,693
Cricket Communications, Inc. 4.750%, 03/08/20•		274		274,536
				473,229
TOTAL LOAN AGREEMENTS‡ (Cost $8,126,244)				8,125,394
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		200,672		200,672
T. Rowe Price Reserve Investment Fund		2,053,627		2,053,627
TOTAL SHORT-TERM INVESTMENTS (Cost $2,254,299)				2,254,299
TOTAL INVESTMENTS — 100.0% (Cost $177,489,826)			$	185,175,211

‡ 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 December 31, 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 December 31, 2013 is $403,015.

• Variable Rate Security. Rates shown represents rates in effect as of 12/31/2013.

~ Fair valued security. The total market value of fair valued securities at December 31, 2013 is $24,557.

CAP — Capitalization Bond.

CONV — Convertible Security.

LLC — Limited Liability Company.

LP — Limited Partnership.

PIK — Payment in Kind Security – Interest may be paid-in-kind only or cash or both.

PLC — Public Limited Company.

Country Weightings as of 12/31/2013††
United States	76	%
Luxembourg	7
United Kingdom	4
Netherlands	3
Canada	2
Bermuda	1
Germany	1
Other	6
Total	100	%

†† % of total investments as of December 31, 2013

82

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

High Yield Bond Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	2,733,341	$	2,708,784	$	—	$	24,557
REAL ESTATE INVESTMENT TRUSTS		109,753		109,753
PREFERRED STOCKS
Banks		962,744		483,994		478,750		—
Media		143,200		—		143,200		—
Packaging and Containers		—		—		—		—
Telecommunications		245,098		245,098		—		—
ASSET BACKED SECURITIES		688,869		—		688,869		—
CORPORATE BONDS		169,912,513		—		169,912,513		—
LOAN AGREEMENTS		8,125,394		—		8,125,394		—
SHORT-TERM INVESTMENTS		2,254,299		2,254,299		—		—
TOTAL INVESTMENTS	$	185,175,211	$	5,801,928	$	179,348,726	$	24,557

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		24,225
Change in Unrealized Appreciation/(Depreciation)		332
Balance as of 12/31/2013	$	24,557

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.

83

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Flexibly Managed Fund

	Par (000)		Value†
AGENCY OBLIGATIONS — 1.6%
Banks — 0.3%
KFW 0.500%, 04/19/16	$	6,658	$	6,580,554
Federal Home Loan Mortgage Corporation REMICS — 0.5%
0.667%, 06/15/42•		2,116		2,112,640
0.667%, 06/15/42•		3,250		3,244,958
0.667%, 07/15/42•		1,771		1,768,027
0.667%, 07/15/42•		2,614		2,609,202
0.667%, 07/15/42•		1,791		1,789,157
0.617%, 08/15/42•		1,423		1,433,401
0.667%, 08/15/42•		1,069		1,067,499
				14,024,884
Federal National Mortgage Association REMICS — 0.8%
0.715%, 03/25/42•		1,717		1,730,087
0.615%, 08/25/42•		2,747		2,738,556
0.665%, 08/25/42•		2,485		2,482,229
0.565%, 09/25/42•		2,882		2,868,852
0.615%, 09/25/42•		3,017		3,006,950
0.615%, 09/25/42•		869		856,728
0.615%, 09/25/42•		4,815		4,804,439
0.565%, 10/25/42•		4,076		4,053,568
				22,541,409
TOTAL AGENCY OBLIGATIONS (Cost $43,378,108)				43,146,847
ASSET BACKED SECURITIES — 0.7%
Ally Master Owner Trust 0.867%, 06/15/17•		8,755		8,793,566
Continental Airlines 2009-1 Pass Through Trust 9.000%, 07/08/16		803		915,205
Continental Airlines 2009-2 Class A, Pass Through Trust 7.250%, 11/10/19		677		775,603
Continental Airlines 2012-1 Class A, Pass Through Trust 4.150%, 04/11/24		2,156		2,166,392
Continental Airlines 2012-1 Class B, Pass Through Trust 6.250%, 04/11/20		441		461,300
Ford Credit Auto Owner Trust 2012 0.580%, 12/15/16		2,195		2,196,769
Hawaiian Airlines 2013-1 Class A Pass Through Certificates 3.900%, 01/15/26		1,815		1,678,875
Honda Auto Receivables Owner Trust 0.560%, 05/15/16		2,135		2,137,767
TOTAL ASSET BACKED SECURITIES (Cost $19,012,549)				19,125,477
COLLATERALIZED MORTGAGE OBLIGATION — 0.1%
Government National Mortgage Association 0.567%, 03/16/42• (Cost $2,095,649)		2,092		2,092,698

	Number of Shares		Value†
COMMON STOCKS — 64.8%
Aerospace & Defense — 3.8%
The Boeing Co.		151,000	$	20,609,990
United Technologies Corp.		733,900		83,517,820
				104,127,810
Agriculture — 1.2%
Philip Morris International, Inc.		360,500		31,410,365
Auto Manufacturers — 0.3%
General Motors Co.*		233,800		9,555,406
Auto Parts & Equipment — 2.1%
Delphi Automotive PLC		460,300		27,677,839
Johnson Controls, Inc.		121,500		6,232,950
TRW Automotive Holdings Corp.*		297,300		22,116,147
				56,026,936
Banks — 4.3%
JPMorgan Chase & Co.		509,000		29,766,320
State Street Corp.		719,400		52,796,766
The PNC Financial Services Group, Inc.		106,400		8,254,512
U.S. Bancorp		629,000		25,411,600
				116,229,198
Beverages — 0.4%
PepsiCo, Inc.		146,900		12,183,886
Commercial Services — 1.5%
Iron Mountain, Inc.		580,400		17,615,140
Tyco International Ltd.		551,100		22,617,144
				40,232,284
Computers — 1.0%
Accenture PLC, Class A		85,300		7,013,366
International Business Machines Corp.		104,500		19,601,065
				26,614,431
Cosmetics & Personal Care — 1.7%
Avon Products, Inc.		302,900		5,215,938
The Procter & Gamble Co.		485,982		39,563,795
				44,779,733
Diversified Financial Services — 2.8%
Invesco Ltd.		635,708		23,139,771
TD Ameritrade Holding Corp.		1,734,900		53,157,336
				76,297,107
Electric — 5.5%
Consolidated Edison, Inc.		121,300		6,705,464
Edison International		216,800		10,037,840
Entergy Corp.		421,700		26,680,959
NRG Energy, Inc.		315,500		9,061,160
PG&E Corp.		1,299,600		52,347,888
Xcel Energy, Inc.		1,535,800		42,910,252
				147,743,563
Electronics — 4.4%
TE Connectivity Ltd.		438,925		24,189,157
Thermo Fisher Scientific, Inc.		844,700		94,057,345
				118,246,502

84

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Flexibly Managed Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Food — 3.8%
General Mills, Inc.		709,328	$	35,402,561
Mondelez International, Inc., Class A		724,200		25,564,260
Nestle S.A.		560,699		41,044,386
				102,011,207
Healthcare Products — 1.5%
DENTSPLY International, Inc.		566,800		27,478,464
Henry Schein, Inc.*		103,878		11,869,100
				39,347,564
Healthcare Services — 3.0%
DaVita HealthCare Partners, Inc.*		103,400		6,552,458
Humana, Inc.		87,100		8,990,462
UnitedHealth Group, Inc.		870,500		65,548,650
				81,091,570
Insurance — 3.4%
Marsh & McLennan Cos., Inc.		1,369,700		66,238,692
XL Group PLC		806,435		25,676,890
				91,915,582
Internet — 1.5%
Google, Inc., Class A*		37,000		41,466,270
Machinery — Diversified — 0.4%
Roper Industries, Inc.		69,700		9,665,996
Media — 0.3%
The Walt Disney Co.		109,600		8,373,440
Miscellaneous Manufacturing — 4.3%
Actuant Corp., Class A		94,278		3,454,346
Danaher Corp.		1,470,278		113,505,462
				116,959,808
Oil & Gas — 2.0%
Anadarko Petroleum Corp.		93,700		7,432,284
Apache Corp.		263,600		22,653,784
Imperial Oil Ltd.		68,900		3,047,447
Pioneer Natural Resources Co.		43,300		7,970,231
Range Resources Corp.		156,897		13,227,986
				54,331,732
Pharmaceuticals — 3.9%
Allergan, Inc.		355,300		39,466,724
Perrigo Co. PLC		53,600		8,225,456
Pfizer, Inc.		1,422,343		43,566,366
Zoetis, Inc.		432,586		14,141,236
				105,399,782
Retail — 5.1%
AutoZone, Inc.*		119,600		57,161,624
Dollar General Corp.*		155,600		9,385,792
Dollar Tree, Inc.*		357,800		20,187,076
Kohl’s Corp.		14,500		822,875
L Brands, Inc.		95,200		5,888,120
Lowe’s Cos., Inc.		384,400		19,047,020

	Number of Shares		Value†
Retail — (continued)
O’Reilly Automotive, Inc.*		193,500	$	24,905,385
				137,397,892
Semiconductors — 2.2%
NXP Semiconductors N.V.*		524,300		24,081,099
Texas Instruments, Inc.		837,500		36,774,625
				60,855,724
Software — 2.7%
Fiserv, Inc.*		1,215,400		71,769,370
Telecommunications — 1.7%
Crown Castle International Corp.*		468,000		34,365,240
SBA Communications Corp., Class A*		144,800		13,008,832
				47,374,072
TOTAL COMMON STOCKS (Cost $1,242,034,213)				1,751,407,230
	Par (000)		Value†
REAL ESTATE INVESTMENT TRUSTS — 1.6%
Diversified — 1.3%
American Tower Corp.	$	446,097		35,607,463
Regional Malls — 0.3%
Simon Property Group, Inc.		51,800		7,881,888
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $40,201,972)				43,489,351
	Number of Shares		Value†
PREFERRED STOCKS — 0.2%
Banks — 0.1%
U.S. Bancorp Series F		71,000		1,867,300
U.S. Bancorp Series G		90,000		2,463,300
				4,330,600
Electric — 0.1%
SCE Trust I		70,000		1,407,000
TOTAL PREFERRED STOCKS (Cost $5,775,000)				5,737,600
	Par (000)		Value†
CORPORATE BONDS — 14.4%
Advertising — 0.1%
Lamar Media Corp. 7.875%, 04/15/18	$	525		554,531
5.875%, 02/01/22		900		922,500
5.000%, 05/01/23		850		807,500
				2,284,531

85

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Aerospace & Defense — 0.2%
United Technologies Corp. 0.739%, 06/01/15•	$	4,725	$	4,754,631
Airlines — 0.6%
Continental Airlines, Inc. 6.750%, 09/15/15 144A @		890		917,813
Delta Air Lines 2009-1, Class A Pass Through Trust 7.750%, 12/17/19		590		678,697
Delta Air Lines 2011-1, Class A Pass Through Trust 5.300%, 04/15/19		545		597,189
United Airlines, Inc. 4.500%, 01/15/15		4,640		9,483,000
US Airways 2010-1 Class A, Pass Through Trust 6.250%, 04/22/23		2,071		2,262,951
US Airways 2010-1 Class B, Pass Through Trust 8.500%, 04/22/17^		262		285,494
US Airways 2012-2 Class A, Pass Through Trust 4.625%, 06/03/25		294		298,765
US Airways 2012-2 Class B, Pass Through Trust 6.750%, 06/03/21		543		578,159
US Airways 2013-1 Class A, Pass Through Trust 3.950%, 11/15/25		5		4,875
US Airways 2013-1 Class B, Pass Through Trust 5.375%, 11/15/21		5		4,969
				15,111,912
Auto Manufacturers — 0.1%
Daimler Finance North America LLC 1.102%, 08/01/18 144A @,•,^		1,525		1,533,209
Auto Parts & Equipment — 0.6%
Delphi Corp. 5.875%, 05/15/19		6,250		6,609,375
6.125%, 05/15/21		2,225		2,466,969
5.000%, 02/15/23		3,450		3,549,187
Schaeffler Finance BV 7.750%, 02/15/17 144A @		1,250		1,418,750
8.500%, 02/15/19 144A @		1,425		1,603,125
TRW Automotive, Inc. 4.500%, 03/01/21 144A @,^		1,000		1,010,000
				16,657,406
Banks — 0.0%
CIT Group, Inc. 5.250%, 04/01/14 144A @,^		475		479,750
Regions Bank 7.500%, 05/15/18		90		106,496
Synovus Financial Corp. 5.125%, 06/15/17		105		108,412
				694,658
Beverages — 0.3%
Heineken NV 0.800%, 10/01/15 144A @,^		1,515		1,515,421
SABMiller Holdings, Inc. 0.932%, 08/01/18 144A @,•,^		3,455		3,472,109

	Par (000)		Value†
Beverages — (continued)
2.200%, 08/01/18 144A @,^	$	3,000	$	2,995,290
				7,982,820
Cosmetics & Personal Care — 0.3%
The Procter & Gamble Co. 3.100%, 08/15/23		9,700		9,327,006
Diversified Financial Services — 2.6%
American Honda Finance Corp. 0.368%, 04/08/14 144A @,•,^		900		900,270
0.339%, 11/13/14 144A @,•,^		1,350		1,351,197
Caterpillar Financial Services Corp. 0.700%, 11/06/15		1,585		1,586,916
1.250%, 11/06/17		2,345		2,311,406
E*TRADE Financial Corp. 6.750%, 06/01/16		2,800		3,038,000
6.000%, 11/15/17		7,300		7,756,250
6.375%, 11/15/19		4,500		4,831,875
Ford Motor Credit Co. LLC 8.000%, 06/01/14		2,100		2,164,109
3.875%, 01/15/15		4,530		4,674,299
2.750%, 05/15/15		2,300		2,359,437
2.500%, 01/15/16		2,190		2,246,815
1.489%, 05/09/16•		3,755		3,810,097
4.250%, 02/03/17		1,340		1,441,529
6.625%, 08/15/17		1,675		1,940,375
5.000%, 05/15/18		1,800		2,005,036
International Lease Finance Corp. 2.193%, 06/15/16•		2,905		2,919,525
John Deere Capital Corp. 0.343%, 10/08/14•		3,845		3,847,142
0.314%, 01/12/15•		4,475		4,478,034
0.700%, 09/04/15		1,800		1,807,060
Legg Mason, Inc. 5.500%, 05/21/19		4,160		4,550,720
PACCAR Financial Corp. 0.378%, 05/05/15•		1,085		1,086,303
0.509%, 02/08/16•		480		479,920
0.750%, 05/16/16		900		895,697
Toyota Motor Credit Corp. 0.318%, 08/22/14•		2,100		2,101,193
0.409%, 01/23/15•		2,305		2,308,227
0.391%, 03/10/15•		2,250		2,253,078
				69,144,510
Electric — 0.3%
Calpine Corp. 7.500%, 02/15/21 144A @		1,035		1,129,444
CMS Energy Corp. 6.550%, 07/17/17		895		1,025,655
8.750%, 06/15/19		415		524,922
NSTAR Electric Co. 0.479%, 05/17/16•		1,950		1,947,301
Otter Tail Corp. 9.000%, 12/15/16^		890		1,072,450
Xcel Energy, Inc. 0.750%, 05/09/16		2,160		2,141,785
				7,841,557

86

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Entertainment — 0.1%
Cedar Fair LP 9.125%, 08/01/18	$	2,550	$	2,766,750
Cedar Fair LP 5.250%, 03/15/21		1,175		1,160,313
				3,927,063
Food — 0.3%
B&G Foods, Inc. 4.625%, 06/01/21		1,525		1,464,000
Campbell Soup Co. 0.542%, 08/01/14•		2,630		2,633,453
General Mills, Inc. 0.537%, 01/29/16•		1,975		1,976,711
0.875%, 01/29/16		820		817,659
				6,891,823
Healthcare Products — 0.1%
Baxter International, Inc. 0.413%, 12/11/14•		2,715		2,718,432
Healthcare Services — 0.0%
Fresenius Medical Care U.S. Finance II, Inc. 5.625%, 07/31/19 144A @		750		810,000
5.875%, 01/31/22 144A @		425		448,375
				1,258,375
Machinery — Diversified — 0.3%
CNH Capital LLC 3.875%, 11/01/15		1,400		1,445,500
6.250%, 11/01/16		2,650		2,924,938
3.625%, 04/15/18		3,150		3,193,312
Xylem, Inc. 3.550%, 09/20/16		950		997,838
4.875%, 10/01/21		415		432,612
				8,994,200
Media — 0.6%
CCO Holdings LLC 7.250%, 10/30/17		850		899,938
Unitymedia Hessen GmbH & Co. KG 7.500%, 03/15/19 144A @,^		2,225		2,419,687
7.500%, 03/15/19 144A @		860		1,286,699
5.500%, 01/15/23 144A @,^		1,950		1,891,500
Univision Communications, Inc. 6.875%, 05/15/19 144A @,^		3,275		3,500,156
7.875%, 11/01/20 144A @		1,075		1,181,156
6.750%, 09/15/22 144A @		3,275		3,586,125
5.125%, 05/15/23 144A @		2,050		2,047,438
				16,812,699
Miscellaneous Manufacturing — 0.0%
Actuant Corp. 5.625%, 06/15/22		125		126,562
Amsted Industries, Inc. 8.125%, 03/15/18 144A @		625		658,594
				785,156

	Par (000)		Value†
Oil & Gas — 2.1%
Antero Resources Finance Corp. 7.250%, 08/01/19	$	226	$	242,950
6.000%, 12/01/20		2,125		2,231,250
Concho Resources, Inc. 7.000%, 01/15/21		2,875		3,162,500
6.500%, 01/15/22		1,425		1,542,563
5.500%, 10/01/22		2,425		2,503,812
5.500%, 04/01/23		5,600		5,768,000
EQT Corp. 6.500%, 04/01/18		1,620		1,830,080
8.125%, 06/01/19		1,754		2,127,907
4.875%, 11/15/21		8,005		8,209,208
Laredo Petroleum, Inc. 9.500%, 02/15/19		850		949,875
7.375%, 05/01/22		500		542,500
Range Resources Corp. 8.000%, 05/15/19		3,150		3,358,687
6.750%, 08/01/20		1,225		1,326,063
5.750%, 06/01/21		6,950		7,367,000
5.000%, 08/15/22		7,200		7,074,000
5.000%, 03/15/23		6,425		6,280,437
SM Energy Co. 6.500%, 01/01/23		1,200		1,258,500
				55,775,332
Packaging and Containers — 0.1%
Ball Corp. 7.375%, 09/01/19		1,525		1,647,000
Rexam PLC 6.750%, 06/29/67		1,700		2,514,101
				4,161,101
Pharmaceuticals — 0.3%
Merck & Co., Inc. 0.429%, 05/18/16•		3,075		3,084,151
Pfizer, Inc. 0.900%, 01/15/17		3,250		3,233,922
Zoetis, Inc. 1.150%, 02/01/16		795		795,902
1.875%, 02/01/18		525		520,686
				7,634,661
Pipelines — 1.2%
Energy Transfer Partners LP 4.150%, 10/01/20		1,925		1,953,068
4.900%, 02/01/24		2,465		2,502,406
Markwest Energy Partners LP 6.750%, 11/01/20		900		976,500
6.500%, 08/15/21		4,450		4,783,750
6.250%, 06/15/22		5,350		5,657,625
5.500%, 02/15/23		4,160		4,191,200
MarkWest Energy Partners LP 4.500%, 07/15/23		6,075		5,695,312
ONEOK Partners LP 2.000%, 10/01/17		830		825,944

87

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Pipelines — (continued)
Spectra Energy Partners LP 4.750%, 03/15/24	$	2,555	$	2,604,575
Targa Resources Partners LP 5.250%, 05/01/23		150		145,313
4.250%, 11/15/23 144A @		3,325		2,975,875
				32,311,568
Real Estate — 0.1%
CBRE Services, Inc.
6.625%, 10/15/20		1,675		1,792,250
5.000%, 03/15/23		750		720,938
				2,513,188
Real Estate Investment Trusts — 0.2%
American Tower Corp. 4.625%, 04/01/15		200		209,186
3.500%, 01/31/23		925		843,364
5.000%, 02/15/24		1,535		1,546,350
Host Hotels & Resorts LP 6.750%, 06/01/16		52		52,750
5.875%, 06/15/19		1,800		1,953,455
				4,605,105
Retail — 1.0%
AmeriGas Finance LLC 6.250%, 08/20/19		600		645,000
6.750%, 05/20/20		675		737,438
7.000%, 05/20/22		1,525		1,654,625
Dollar General Corp. 4.125%, 07/15/17		805		854,686
1.875%, 04/15/18		2,390		2,312,019
L Brands, Inc. 6.900%, 07/15/17		1,400		1,610,000
8.500%, 06/15/19		900		1,080,000
7.000%, 05/01/20		900		1,010,250
6.625%, 04/01/21		1,925		2,112,687
5.625%, 02/15/22		1,000		1,022,500
5.625%, 10/15/23		5,775		5,861,625
Rite Aid Corp. 8.000%, 08/15/20		3,700		4,162,500
Suburban Propane Partners LP 7.500%, 10/01/18		1,575		1,689,188
7.375%, 08/01/21		750		817,500
Walgreen Co. 0.744%, 03/13/14•		1,840		1,841,836
				27,411,854
Semiconductors — 0.3%
NXP BV 3.750%, 06/01/18 144A @,^		1,750		1,763,125
5.750%, 02/15/21 144A @		2,625		2,743,125
5.750%, 03/15/23 144A @		4,900		4,985,750
				9,492,000

	Par (000)		Value†
Telecommunications — 2.3%
Crown Castle International Corp. 7.125%, 11/01/19	$	4,165	$	4,487,788
5.250%, 01/15/23		1,650		1,617,000
Intelsat Jackson Holdings SA 7.250%, 04/01/19		2,175		2,349,000
8.500%, 11/01/19		2,525		2,755,406
7.250%, 10/15/20		4,830		5,282,812
7.500%, 04/01/21		1,350		1,488,375
5.500%, 08/01/23 144A @		2,840		2,701,550
Matterhorn Mobile SA 5.396%, 05/15/19 144A @,^		250		283,056
6.750%, 05/15/19 144A @		930		1,131,159
SBA Communications Corp. 5.625%, 10/01/19		950		978,500
SBA Telecommunications, Inc. 8.250%, 08/15/19		133		142,643
5.750%, 07/15/20		875		910,000
Sprint Capital Corp. 6.900%, 05/01/19		300		327,750
Sprint Communications, Inc. 9.000%, 11/15/18 144A @		6,790		8,181,950
11.500%, 11/15/21		450		589,500
Telesat Canada 6.000%, 05/15/17 144A @^		2,595		2,698,800
UPC Holding BV 9.875%, 04/15/18 144A @		2,600		2,788,500
UPCB Finance III Ltd. 6.625%, 07/01/20 144A @		4,545		4,829,062
UPCB Finance V Ltd. 7.250%, 11/15/21 144A @		7,155		7,763,175
UPCB Finance VI Ltd. 6.875%, 01/15/22 144A @		6,150		6,534,375
Verizon Communications, Inc. 0.442%, 03/06/15 144A @•^		4,450		4,442,457
				62,282,858
Transportation — 0.3%
Burlington Northern Santa Fe LLC 3.850%, 09/01/23		7,075		6,959,253
TOTAL CORPORATE BONDS (Cost $379,122,576)				389,866,908
LOAN AGREEMENTS — 7.6%‡
Diversified Financial Services — 0.3%
Hilton Worldwide Finance LLC 3.750%, 10/26/20•		5,526		5,567,763
Terra-Gen Finance Co., LLC 6.500%, 06/22/17•^		2,355		2,354,518
				7,922,281
Entertainment — 0.2%
Kasima LLC 3.250%, 05/17/21 144A •		775		770,156
Peninsula Gaming LLC 4.250%, 11/20/17•		3,615		3,635,679
				4,405,835

88

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Flexibly Managed Fund

	Par (000)		Value†
LOAN AGREEMENTS‡ — (continued)
Food — 1.9%
H.J. Heinz Co. 3.500%, 06/05/20•	$	42,909	$	43,208,024
Pinnacle Foods Finance LLC• 3.250%, 04/29/20		4,873		4,863,914
3.250%, 04/29/20		3,840		3,832,925
				51,904,863
Healthcare Services — 0.1%
DaVita, Inc. 4.000%, 11/01/19•		1,312		1,319,949
HCA, Inc. 2.919%, 03/31/17•		1,147		1,146,769
				2,466,718
Holding Companies — 0.8%
Intelsat Jackson Holdings 3.750%, 06/30/19		21,096		21,238,113
Media — 0.3%
CCO Holdings LLC 2.669%, 09/06/14•		500		499,680
Cequel Communications LLC 3.500%, 02/14/19•		4,573		4,576,987
Charter Communications Operating LLC 3.000%, 07/01/20•		2,114		2,097,862
3.000%, 12/31/20•		1,476		1,462,762
				8,637,291
Retail — 2.1%
Dunkin’ Brands, Inc. 3.750%, 02/14/20•		49,718		49,847,686
Wendy’s International, Inc. 3.250%, 05/15/19•		5,572		5,574,006
				55,421,692
Telecommunications — 1.9%
Crown Castle Operating Co. 3.250%, 01/31/19•		21,111		21,130,893
3.250%, 01/31/21		4,250		4,257,990
SBA Senior Finance II, LLC 3.750%, 06/30/18•		343		344,079
Telesat Canada 3.500%, 03/28/17•		784		738,743
3.500%, 03/28/19^•		3,722		3,503,766
3.500%, 03/28/19•		5,488		5,499,217
UPC Financing Partnership 3.250%, 06/30/21•		16,800		16,766,400
				52,241,088
TOTAL LOAN AGREEMENTS (Cost $203,659,721)				204,237,881

	Par (000)			Value†
U.S. TREASURY OBLIGATIONS — 5.2%
U.S. Treasury Note
2.500%, 08/15/23	$	53,875		$	51,736,809
2.750%, 11/15/23		91,475			89,488,254
TOTAL U.S. TREASURY OBLIGATIONS (Cost $141,733,256)					141,225,063
	Number of Shares			Value†
SHORT-TERM INVESTMENTS — 3.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		26,673,515		$	26,673,515
T. Rowe Price Reserve Investment Fund		75,565,157			75,565,157
TOTAL SHORT-TERM INVESTMENTS (Cost $102,238,672)					102,238,672
TOTAL INVESTMENTS — 100.0% (Cost $2,179,251,716)				$	2,702,567,727
	Number of Contracts			Value†
WRITTEN OPTIONS
Call Options
Accent, $80.00, 01/17/15		(404	)		(307,848	)
Accent, $85.00, 01/17/15		(404	)		(206,040	)
Apache, $100.00, 01/17/15		(280	)		(92,400	)
Apache, $105.00, 01/17/15		(140	)		(32,200	)
Apache, $90.00, 01/18/14		(257	)		(5,654	)
Apache, $95.00, 01/17/15		(114	)		(52,554	)
Apache, $97.50, 01/17/15		(140	)		(55,300	)
Danaher Corp., $72.50, 01/18/14		(876	)		(420,480	)
Danaher Corp., $70.00, 01/ 18/ 14		(228	)		(165,528	)
Disney, $55.00, 01/18/14		(1	)		(2,130	)
Disney, $57.50, 01/18/14		(3	)		(5,640	)
Disney, $70.00, 01/18/14		(1,092	)		(716,352	)
Edison International, $60.00, 01/ 17/15		(542	)		(62,330	)
Edison International, $60.00, 01/18/14		(541	)		(2,705	)
GM, $27.00, 01/18/14		(1,559	)		(2,140,507	)
GM, $30.00, 01/18/14		(779	)		(849,110	)
Google, $1250.00, 01/17/15		(87	)		(474,150	)
Google, $850.00, 01/18/14		(60	)		(1,617,120	)
IBM, $185.00, 01/17/15		(522	)		(775,170	)
IBM, $190.00, 01/17/15		(523	)		(651,135	)
JPM, $45.00, 01/18/14		(4	)		(5,400	)
JPM, $65.00, 01/17/15		(924	)		(219,912	)
JPM, $67.50, 01/17/15		(924	)		(162,624	)
JPM, $70.00, 01/17/15		(924	)		(118,272	)
Kohls, $50.00, 01/18/14		(144	)		(93,024	)
Lowes, $45.00, 01/18/14		(1,145	)		(512,960	)
Lowes, $46.00, 01/18 /4		(286	)		(104,676	)
Lowes, $55.00, 01/17/15		(765	)		(199,665	)
NRG Energy, $25.00, 01/18/14		(482	)		(173,520	)
NRG Energy, $27.00, 01/18/14		(482	)		(86,760	)
Pfizer, $27.00, 01/18/14		(59	)		(21,830	)
PG&E, $90.00, 01/17/15		(853	)		(153,540	)

89

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Flexibly Managed Fund

	Number of Contracts			Value†
WRITTEN OPTIONS — (continued)
Call Options — (continued)
Phillip Morris, $95.00 01/17/15		(1,288	)	$	(227,976	)
Phillip Morris, $95.00, 01/17/15		(219	)		(38,763	)
Phillip Morris, $97.50, 01/17/15		(591	)		(67,965	)
Phillip Morris, $97.50, 01/17/15		(676	)		(77,740	)
Procter & Gamble Co., $75.00, 01/18/14		(1,230	)		(804,420	)
Proctor & Gamble Co., $92.50, 01/17/15		(210	)		(28,770	)
Proctor & Gamble Co., $95.00, 01/17/15		(210	)		(19,950	)
Proctor & Gamble, Corp. $85.00, 01/ 17/ 15		(1,286	)		(424,380	)
SPG, $165.00, 01/17/15		(109	)		(57,225	)
SPG, $170 .00, 01/17/15		(192	)		(76,800	)
SPG, $175.00, 01/17/15		(109	)		(34,335	)
SPG, $180.00, 01/17/15		(108	)		(22,572	)
TXN, $45.00, 01/17/15		(2,511	)		(685,503	)
United Technologies Corp., $105.00, 01/18/14		(533	)		(453,050	)
United Technologies Corp., $120 .00, 01/17/15		(594	)		(314,820	)
United Technologies Corp., $125.00, 01/17/15		(594	)		(210,870	)
UnitedHealth Group, Inc., $65.00, 01/18/14		(423	)		(427,230	)
USB, $35.00, 01/18/14		(11	)		(5,962	)
USB, $37.00, 01/18/14		(1	)		(345	)
USB, $42.00, 01/17/15		(1,665	)		(269,730	)
Zoetis, $34.00, 01/18/14		(385	)		(3,850	)
Zoetis, $35.00, 01/18/14		(769	)		(3,076	)
TOTAL WRITTEN OPTIONS (Premiums $(7,233,242))					(14,741,868	)

† 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. Rates shown represents rates in effect as of 12/31/2013.

^ Illiquid security. The total market value of illiquid securities at December 31, 2013 is $37,472,255.

‡ 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 December 31, 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.

LLC — Limited Liability Company.

LP — Limited Partnership.

PLC — Public Limited Company.

REMICS — Real Estate Mortgage Investment Conduits.

Country Weightings as of 12/31/2013††
United States	91	%
Bermuda	2
Netherlands	2
Switzerland	2
Cayman Islands	1
Luxembourg	1
United Kingdom	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	1,751,407,230	$	1,751,407,230	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		43,489,351		43,489,351		—		—
PREFERRED STOCKS		5,737,600		5,737,600		—		—
U.S. TREASURY OBLIGATIONS		141,225,063		—		141,225,063		—
AGENCY OBLIGATIONS		43,146,847		—		43,146,847		—
ASSET BACKED SECURITIES		19,125,477		—		19,125,477		—
COLLATERALIZED MORTGAGE OBLIGATION		2,092,698		—		2,092,698		—
CORPORATE BONDS		389,866,908		—		389,866,908		—
LOAN AGREEMENTS		204,237,881		—		204,237,881		—
SHORT-TERM INVESTMENTS		102,238,672		102,238,672		—		—
TOTAL INVESTMENTS	$	2,702,567,727	$	1,902,872,853	$	799,694,874	$	—

LIABILITIES TABLE
Description	Total Market Value at 12/31/2013			Level 1 Quoted Price			Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
WRITTEN OPTIONS	$	(14,741,868	)	$	(2,343,773	)	$	(12,398,095	)	$	—
TOTAL LIABILITIES	$	(14,741,868	)	$	(2,343,773	)	$	(12,398,095	)	$	—

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.

90

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Balanced Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 59.8%
Penn Series Index 500 Fund* (Cost $23,917,978)		3,333,990	$	47,042,599
AFFILIATED FIXED INCOME FUNDS — 39.9%
Penn Series Quality Bond Fund* (Cost $27,444,945)		2,459,744		31,361,732
SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $232,858)		232,858		232,858
TOTAL INVESTMENTS — 100.0% (Cost $51,595,781)			$	78,637,189

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	47,042,599	$	47,042,599	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		31,361,732		31,361,732		—		—
SHORT-TERM INVESTMENTS		232,858		232,858		—		—
TOTAL INVESTMENTS	$	78,637,189	$	78,637,189	$	—	$	—

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.

91

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Growth Stock Fund

	Number of Shares		Value†
COMMON STOCKS — 97.2%
Aerospace & Defense — 1.6%
The Boeing Co.		30,400	$	4,149,296
Airlines — 0.7%
Delta Air Lines, Inc.		33,400		917,498
United Continental Holdings, Inc.*		26,700		1,010,061
				1,927,559
Apparel — 1.5%
NIKE, Inc., Class B		18,800		1,478,432
Prada S.p.A.		88,400		786,609
Under Armour, Inc., Class A*		18,500		1,615,050
				3,880,091
Auto Manufacturers — 0.4%
Tesla Motors, Inc.*		6,900		1,037,622
Beverages — 1.0%
Green Mountain Coffee Roasters, Inc.*		7,900		597,082
Monster Beverage Corp.*		12,600		853,902
PepsiCo, Inc.		14,400		1,194,336
				2,645,320
Biotechnology — 7.3%
Alexion Pharmaceuticals, Inc.*		11,900		1,583,414
Biogen Idec, Inc.*		16,900		4,727,775
Celgene Corp.*		17,100		2,889,216
Gilead Sciences, Inc.*		97,900		7,357,185
Incyte Corp. Ltd.*		16,700		845,521
Regeneron Pharmaceuticals, Inc.*		4,300		1,183,532
Vertex Pharmaceuticals, Inc.*		11,400		847,020
				19,433,663
Building Materials — 0.3%
Martin Marietta Materials, Inc.		6,700		669,598
Chemicals — 3.1%
Ecolab, Inc.		26,500		2,763,155
FMC Corp.		12,200		920,612
Praxair, Inc.		16,700		2,171,501
The Sherwin-Williams Co.		13,700		2,513,950
				8,369,218
Commercial Services — 3.4%
Alliance Data Systems Corp.*		4,300		1,130,599
Mastercard, Inc., Class A		9,600		8,020,416
				9,151,015
Computers — 3.7%
Apple, Inc.		13,500		7,574,985
Cognizant Technology Solutions Corp., Class A*		23,000		2,322,540
				9,897,525
Cosmetics & Personal Care — 0.3%
The Procter & Gamble Co.		9,400		765,254
Distribution & Wholesale — 1.2%
Fastenal Co.		55,200		2,622,552
W.W. Grainger, Inc.		2,600		664,092
				3,286,644

	Number of Shares		Value†
Diversified Financial Services — 6.4%
Affiliated Managers Group, Inc.*		4,800	$	1,041,024
American Express Co.		31,300		2,839,849
BlackRock, Inc.		4,400		1,392,468
Franklin Resources, Inc.		15,000		865,950
IntercontinentalExchange Group, Inc.*		4,500		1,012,140
Invesco Ltd.		34,000		1,237,600
TD Ameritrade Holding Corp.		38,400		1,176,576
Visa, Inc., Class A		33,500		7,459,780
				17,025,387
Food — 1.2%
Nestle S.A.		11,416		835,676
Whole Foods Market, Inc.		39,800		2,301,634
				3,137,310
Healthcare Products — 0.7%
IDEXX Laboratories, Inc.*		11,300		1,201,981
Stryker Corp.		8,400		631,176
				1,833,157
Healthcare Services — 0.4%
UnitedHealth Group, Inc.		14,300		1,076,790
Home Builders — 0.8%
D.R. Horton, Inc.		45,800		1,022,256
Lennar Corp., Class A		26,100		1,032,516
				2,054,772
Internet — 21.7%
Amazon.com, Inc.*		35,300		14,077,287
Baidu, Inc. ADR*		18,000		3,201,840
Ctrip.com International Ltd. ADR*		22,200		1,101,564
eBay, Inc.*		59,300		3,254,977
Facebook, Inc., Class A*		27,000		1,475,820
Google, Inc., Class A*		14,600		16,362,366
LinkedIn Corp., Class A*		8,000		1,734,640
NAVER Corp.*		2,432		1,668,421
Netflix, Inc.*		6,700		2,466,739
priceline.com, Inc.*		6,800		7,904,320
Tencent Holdings Ltd.		13,800		880,219
TripAdvisor, Inc.*		15,100		1,250,733
Twitter, Inc.*,^,~		31,570		1,908,959
Twitter, Inc.*		5,600		356,440
				57,644,325
Leisure Time — 0.9%
Carnival PLC		29,966		1,241,057
Harley-Davidson, Inc.		15,500		1,073,220
				2,314,277
Lodging — 3.3%
Las Vegas Sands Corp.		41,300		3,257,331
Marriott International, Inc., Class A		17,797		878,460
MGM Resorts International*		63,000		1,481,760
Starwood Hotels & Resorts Worldwide, Inc.		23,100		1,835,295
Wynn Macau Ltd.		276,000		1,251,099
				8,703,945

92

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Growth Stock Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Machinery — Diversified — 1.6%
Flowserve Corp.		11,800	$	930,194
Roper Industries, Inc.		18,700		2,593,316
Wabtec Corp.		11,300		839,251
				4,362,761
Media — 2.0%
Charter Communications, Inc., Class A*		5,500		752,180
Discovery Communications, Inc., Class C*		15,100		1,266,286
The Walt Disney Co.		21,800		1,665,520
Twenty-First Century Fox, Inc., Class A		45,800		1,611,244
				5,295,230
Metal Fabricate/Hardware — 2.2%
Precision Castparts Corp.		21,500		5,789,950
Miscellaneous Manufacturing — 2.2%
Danaher Corp.		76,400		5,898,080
Oil & Gas — 3.8%
Antero Resources Corp.*		3,200		203,008
Cabot Oil & Gas Corp.		43,100		1,670,556
Concho Resources, Inc.*		10,700		1,155,600
EOG Resources, Inc.		7,000		1,174,880
EQT Corp.		12,700		1,140,206
Pioneer Natural Resources Co.		15,100		2,779,457
Range Resources Corp.		25,000		2,107,750
				10,231,457
Oil & Gas Services — 0.9%
FMC Technologies, Inc.*		20,000		1,044,200
Schlumberger Ltd.		14,800		1,333,628
				2,377,828
Pharmaceuticals — 3.2%
McKesson Corp.		27,900		4,503,060
Novo Nordisk A/S, B Shares		3,969		727,525
Pharmacyclics, Inc.*		8,300		877,974
Valeant Pharmaceuticals International, Inc.*		20,500		2,406,700
				8,515,259
Retail — 10.3%
AutoZone, Inc.*		4,600		2,198,524
CarMax, Inc.*		32,800		1,542,256
Chipotle Mexican Grill, Inc.*		5,900		3,143,402
Costco Wholesale Corp.		14,800		1,761,348
CVS Caremark Corp.		38,200		2,733,974
Dollar Tree, Inc.*		12,200		688,324
Lowe’s Cos., Inc.		48,100		2,383,355
Lululemon Athletica, Inc.*		2,900		171,187
Ross Stores, Inc.		16,900		1,266,317
Starbucks Corp.		58,600		4,593,654
The Home Depot, Inc.		60,300		4,965,102
Tractor Supply Co.		25,000		1,939,500
				27,386,943
Semiconductors — 1.2%
QUALCOMM, Inc.		44,700		3,318,975

	Number of Shares		Value†
Software — 3.7%
Akamai Technologies, Inc.*		17,200	$	811,496
Concur Technologies, Inc.*		7,700		794,486
Fiserv, Inc.*		18,600		1,098,330
NetSuite, Inc.*		7,500		772,650
Red Hat, Inc.*		21,200		1,188,048
Salesforce.com, Inc.*		54,300		2,996,817
ServiceNow, Inc.*		22,800		1,277,028
Workday, Inc., Class A*		10,300		856,548
				9,795,403
Telecommunications — 3.5%
Crown Castle International Corp.*		82,300		6,043,289
Juniper Networks, Inc.*		33,600		758,352
SBA Communications Corp., Class A*		12,600		1,131,984
SoftBank Corp.		14,300		1,249,264
				9,182,889
Transportation — 2.7%
J.B. Hunt Transport Services, Inc.		10,600		819,380
Kansas City Southern		25,100		3,108,133
Union Pacific Corp.		7,800		1,310,400
United Parcel Service, Inc., Class B		18,100		1,901,948
				7,139,861
TOTAL COMMON STOCKS (Cost $155,971,309)				258,297,404
PREFERRED STOCKS — 0.0%
Internet — 0.0%
Livingsocial, Series F, CONV*,^,~ (Cost $115,858)		15,066		9,491
REAL ESTATE INVESTMENT TRUSTS — 1.8%
Diversified — 1.8%
American Tower Corp. (Cost $2,731,467)		61,500		4,908,930
SHORT-TERM INVESTMENTS — 1.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		2,521,052		2,521,052
T. Rowe Price Reserve Investment Fund		1,008		1,008
TOTAL SHORT-TERM INVESTMENTS (Cost $2,522,060)				2,522,060
TOTAL INVESTMENTS — 100.0% (Cost $161,340,694)			$	265,737,885

^ Illiquid security. The total market value of illiquid securities at December 31, 2013 is $1,918,450.

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at December 31, 2013 is $1,918,450.

ADR — American Depository Receipt.

CONV — Convertible Security.

PLC — Public Limited Company.

93

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Growth Stock Fund

Country Weightings as of 12/31/2013††
United States	94	%
China	2
Canada	1
France	1
South Korea	1
Other	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Aerospace & Defense	$	4,149,296	$	4,149,296	$	—	$	—
Airlines		1,927,559		1,927,559		—		—
Apparel		3,880,091		3,880,091		—		—
Auto Manufacturers		1,037,622		1,037,622		—		—
Beverages		2,645,320		2,645,320		—		—
Biotechnology		19,433,663		19,433,663		—		—
Building Materials		669,598		669,598		—		—
Chemicals		8,369,218		8,369,218		—		—
Commercial Services		9,151,015		9,151,015		—		—
Computers		9,897,525		9,897,525		—		—
Cosmetics & Personal Care		765,254		765,254		—		—
Distribution & Wholesale		3,286,644		3,286,644		—		—
Diversified Financial Services		17,025,387		17,025,387		—		—
Food		3,137,310		3,137,310		—		—
Healthcare Products		1,833,157		1,833,157		—		—
Healthcare Services		1,076,790		1,076,790		—		—
Home Builders		2,054,772		2,054,772		—		—
Internet		57,644,325		55,735,366		1,908,959		—
Leisure Time		2,314,277		2,314,277		—		—
Lodging		8,703,945		8,703,945		—		—
Machinery — Diversified		4,362,761		4,362,761		—		—
Media		5,295,230		5,295,230		—		—
Metal Fabricate/Hardware		5,789,950		5,789,950		—		—
Miscellaneous Manufacturing		5,898,080		5,898,080		—		—
Oil & Gas		10,231,457		10,231,457		—		—
Oil & Gas Services		2,377,828		2,377,828		—		—
Pharmaceuticals		8,515,259		8,515,259		—		—
Retail		27,386,943		27,386,943		—		—
Semiconductors		3,318,975		3,318,975		—		—
Software		9,795,403		9,795,403		—		—
Telecommunications		9,182,889		9,182,889		—		—
Transportation		7,139,861		7,139,861		—		—
REAL ESTATE INVESTMENT TRUSTS
Diversified		4,908,930		4,908,930		—		—
PREFERRED STOCKS		9,491		—		—		9,491
SHORT-TERM INVESTMENTS		2,522,060		2,522,060		—		—
TOTAL INVESTMENTS	$	265,737,885	$	263,819,435	$	1,908,959	$	9,491

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
Transfers out of level 3		(402,202	)
Change in Unrealized Appreciation/(Depreciation)		(17,326	)
Balance as of 12/31/2013	$	9,491

It is the Fund’s policy to recognize transfers in and transfers in and transfers out at the fair value as of the beginning of period.

Fair Value of Level 2 investments at 12/31/12 was $7,338,072 which was a result of valuing investments using third-party vendor modeling tools. An amount of $4,758,172 was transferred from Level 2 into Level 1 at 12/31/2013 as a result of using quoted prices in active market for such foreign securities.

Fair Value of Level 3 investments at 12/31/12 was $429,019. An amount of $402,202 was transferred from Level 3 into Level 2 at 12/31/13 as a result of changes in significant observable inputs.

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

94

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 99.5%
Advertising — 0.8%
Omnicom Group, Inc.		6,313	$	469,498
Aerospace & Defense — 3.0%
United Technologies Corp.		14,710		1,673,998
Apparel — 3.8%
LVMH Moet Hennessy Louis Vuitton S.A.		6,726		1,226,947
NIKE, Inc., Class B		7,732		608,044
VF Corp.		4,625		288,323
				2,123,314
Auto Parts & Equipment — 1.1%
Johnson Controls, Inc.		11,335		581,485
Beverages — 3.1%
Beam, Inc.		4,000		272,240
PepsiCo, Inc.		6,602		547,570
Pernod Ricard S.A.		8,083		920,832
				1,740,642
Chemicals — 3.2%
Monsanto Co.		4,248		495,104
Praxair, Inc.		7,563		983,417
The Sherwin-Williams Co.		1,738		318,923
				1,797,444
Commercial Services — 1.7%
Mastercard, Inc., Class A		1,133		946,576
Computers — 9.8%
Accenture PLC, Class A		27,061		2,224,955
Apple, Inc.		995		558,305
Cognizant Technology Solutions Corp., Class A*		5,571		562,560
EMC Corp.		57,222		1,439,133
International Business Machines Corp.		3,400		637,738
				5,422,691
Cosmetics & Personal Care — 5.5%
Colgate-Palmolive Co.		26,073		1,700,220
The Procter & Gamble Co.		16,595		1,350,999
				3,051,219
Distribution & Wholesale — 1.7%
W.W. Grainger, Inc.		3,791		968,297
Diversified Financial Services — 6.9%
CME Group, Inc.		3,803		298,383
Franklin Resources, Inc.		20,797		1,200,611
The Charles Schwab Corp.		14,301		371,826
Visa, Inc., Class A		8,629		1,921,506
				3,792,326
Electronics — 6.4%
Amphenol Corp., Class A		4,538		404,699
Mettler-Toledo International, Inc.*		3,245		787,204
Thermo Fisher Scientific, Inc.		14,576		1,623,038
Waters Corp.*		7,456		745,600
				3,560,541

	Number of Shares		Value†
Food — 2.0%
Danone S.A.		15,033	$	1,082,028
Healthcare Products — 3.3%
DENTSPLY International, Inc.		24,165		1,171,519
Patterson Cos., Inc.		6,256		257,747
St. Jude Medical, Inc.		6,634		410,977
				1,840,243
Household Products & Wares — 0.6%
Church & Dwight Co., Inc.		5,203		344,855
Internet — 5.3%
eBay, Inc.*		7,845		430,612
Google, Inc., Class A*		2,223		2,491,338
				2,921,950
Media — 5.9%
Discovery Communications, Inc., Class A*		4,760		430,399
The Walt Disney Co.		17,799		1,359,844
Time Warner, Inc.		15,159		1,056,885
Viacom, Inc., Class B		4,677		408,489
				3,255,617
Metal Fabricate/Hardware — 1.2%
Precision Castparts Corp.		2,373		639,049
Mining — 0.5%
Rio Tinto PLC		4,720		266,491
Miscellaneous Manufacturing — 3.4%
Danaher Corp.		24,060		1,857,432
Oil & Gas — 0.8%
Occidental Petroleum Corp.		4,899		465,895
Oil & Gas Services — 2.4%
Schlumberger Ltd.		14,687		1,323,446
Pharmaceuticals — 9.6%
Abbott Laboratories		19,000		728,270
Allergan, Inc.		3,415		379,338
Express Scripts Holding Co.*		19,912		1,398,619
Johnson & Johnson		9,158		838,781
Mead Johnson Nutrition Co.		11,226		940,290
Zoetis, Inc.		31,923		1,043,563
				5,328,861
Retail — 5.5%
CVS Caremark Corp.		18,239		1,305,365
Inditex S.A.		2,659		438,228
McDonald’s Corp.		9,863		957,007
Target Corp.		5,143		325,398
				3,025,998
Semiconductors — 5.5%
Microchip Technology, Inc.		24,292		1,087,067
Sensata Technologies Holding N.V.*		31,931		1,237,965
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		39,770		693,589
				3,018,621

95

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Software — 3.8%
Autodesk, Inc.*		4,769	$	240,024
MSCI, Inc.*		7,122		311,374
Oracle Corp.		40,504		1,549,683
				2,101,081
Transportation — 2.7%
Expeditors International of Washington, Inc.		18,545		820,616
Kuehne + Nagel International AG		5,060		664,230
				1,484,846
TOTAL COMMON STOCKS (Cost $47,373,936)				55,084,444
SHORT-TERM INVESTMENTS — 0.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $283,292)		283,292		283,292
TOTAL INVESTMENTS — 100.0% (Cost $47,657,228)			$	55,367,736

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 12/31/2013 ††
United States	82	%
France	8
Ireland	4
Netherlands	2
Spain	1
Switzerland	1
Taiwan	1
Other	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	55,084,444	$	55,084,444	$	—	$	—
SHORT-TERM INVESTMENTS		283,292		283,292		—		—
TOTAL INVESTMENTS	$	55,367,736	$	55,367,736	$	—	$	—

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 — December 31, 2013

Large Core Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 99.9%
Aerospace & Defense — 1.3%
B/E Aerospace, Inc.*		18,500	$	1,610,055
Airlines — 1.6%
Delta Air Lines, Inc.		73,830		2,028,110
Apparel — 3.1%
Michael Kors Holdings Ltd.		25,390		2,061,414
NIKE, Inc., Class B		25,280		1,988,019
				4,049,433
Auto Parts & Equipment — 0.9%
Delphi Automotive PLC		19,210		1,155,097
Banks — 1.2%
JPMorgan Chase & Co.		27,420		1,603,522
Beverages — 2.4%
Constellation Brands, Inc., Class A*		44,170		3,108,685
Biotechnology — 7.9%
Alexion Pharmaceuticals, Inc.*		17,510		2,329,881
Biogen Idec, Inc.*		7,880		2,204,430
Celgene Corp.*		16,910		2,857,113
Gilead Sciences, Inc.*		37,600		2,825,640
				10,217,064
Building Materials — 1.4%
Fortune Brands Home & Security, Inc.		38,310		1,750,767
Chemicals — 1.4%
Monsanto Co.		15,490		1,805,360
Commercial Services — 7.5%
Alliance Data Systems Corp.*		11,220		2,950,075
Mastercard, Inc., Class A		3,432		2,867,299
United Rentals, Inc.*		25,230		1,966,678
Vantiv, Inc., Class A*		57,910		1,888,445
				9,672,497
Computers — 3.7%
Apple, Inc.		8,395		4,710,518
Distribution & Wholesale — 1.1%
LKQ Corp.*		42,057		1,383,675
Diversified Financial Services — 8.8%
Affiliated Managers Group, Inc.*		8,737		1,894,881
American Express Co.		19,920		1,807,342
Ameriprise Financial, Inc.		5,940		683,397
IntercontinentalExchange Group, Inc.*		15,160		3,409,787
Visa, Inc., Class A		16,030		3,569,560
				11,364,967
Diversified Operations — 1.4%
Eaton Corp. PLC		23,310		1,774,357
Healthcare Products — 1.2%
Boston Scientific Corp.*		131,360		1,578,947
Insurance — 1.7%
Aon PLC		26,490		2,222,246
Internet — 16.1%
Amazon.com, Inc.*		10,484		4,180,914
Baidu, Inc. ADR*		7,550		1,342,994

	Number of Shares		Value†
Internet — (continued)
Facebook, Inc., Class A*		57,740	$	3,156,069
Google, Inc., Class A*		5,030		5,637,171
LinkedIn Corp., Class A*		8,750		1,897,263
Netflix, Inc.*		4,920		1,811,396
priceline.com, Inc.*		2,290		2,661,896
Twitter, Inc.*		744		47,356
				20,735,059
Machinery — Diversified — 1.1%
Cummins, Inc.		9,635		1,358,246
Media — 6.2%
CBS Corp., Class B		35,025		2,232,494
Discovery Communications, Inc., Class A*		21,400		1,934,988
Liberty Global PLC, Class A		7,897		702,754
Liberty Global PLC, Series C*		23,726		2,000,576
Sirius XM Holdings, Inc.*		319,670		1,115,648
				7,986,460
Metal Fabricate/Hardware — 1.8%
Precision Castparts Corp.		8,779		2,364,185
Oil & Gas — 3.5%
Antero Resources Corp.*		21,598		1,370,177
Marathon Petroleum Corp.		10,930		1,002,609
Pioneer Natural Resources Co.		11,430		2,103,920
				4,476,706
Pharmaceuticals — 7.4%
AbbVie, Inc.		23,640		1,248,429
Actavis PLC		8,240		1,384,320
Bristol-Myers Squibb Co.		37,220		1,978,243
Cardinal Health, Inc.		13,890		927,991
McKesson Corp.		9,850		1,589,790
Novartis AG ADR		11,450		920,351
Shire PLC ADR		10,670		1,507,564
				9,556,688
Retail — 6.8%
Best Buy Co., Inc.		39,790		1,586,825
Starbucks Corp.		29,220		2,290,556
The Home Depot, Inc.		31,520		2,595,357
TJX Cos., Inc.		34,750		2,214,617
				8,687,355
Semiconductors — 3.1%
ARM Holdings PLC ADR		37,820		2,070,267
ASML Holding N.V.		20,300		1,902,110
				3,972,377
Software — 4.3%
Adobe Systems, Inc.*		32,400		1,940,112
Salesforce.com, Inc.*		33,550		1,851,624
ServiceNow, Inc.*		30,050		1,683,101
				5,474,837
Telecommunications — 1.4%
SBA Communications Corp., Class A*		20,360		1,829,142

97

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Core Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (Continued)
Transportation — 1.6%
Kansas City Southern		16,740	$	2,072,914
TOTAL COMMON STOCKS (Cost $85,587,071)				128,549,269
SHORT-TERM INVESTMENTS — 0.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $131,700)		131,700		131,700
TOTAL INVESTMENTS — 100.0% (Cost $85,718,771)			$	128,680,969

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 12/31/2013††
United States	87	%
United Kingdom	5
Hong Kong	2
Ireland	2
Netherlands	2
China	1
Switzerland	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	128,549,269	$	128,549,269	$	—	$	—
SHORT-TERM INVESTMENTS		131,700		131,700		—		—
TOTAL INVESTMENTS	$	128,680,969	$	128,680,969	$	—	$	—

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 — December 31, 2013

Large Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 95.8%
Advertising — 1.4%
Omnicom Group, Inc.		42,427	$	3,155,296
Aerospace & Defense — 1.5%
Northrop Grumman Corp.		29,049		3,329,306
Agriculture — 1.3%
Philip Morris International, Inc.		33,750		2,940,637
Auto Manufacturers — 1.3%
General Motors Co.*		72,358		2,957,271
Banks — 13.2%
Bank of America Corp.		208,341		3,243,869
Citigroup, Inc.		64,687		3,370,840
Fifth Third Bancorp		117,457		2,470,121
JPMorgan Chase & Co.		99,022		5,790,807
State Street Corp.		55,407		4,066,320
The PNC Financial Services Group, Inc.		40,952		3,177,056
U.S. Bancorp		50,856		2,054,582
Wells Fargo & Co.		108,601		4,930,485
				29,104,080
Beverages — 1.1%
PepsiCo, Inc.		30,015		2,489,444
Building Materials — 1.1%
Vulcan Materials Co.		42,002		2,495,759
Chemicals — 1.4%
E.I. du Pont de Nemours & Co.		46,736		3,036,438
Coal — 0.8%
CONSOL Energy, Inc.		43,459		1,653,180
Computers — 2.3%
Apple, Inc.		4,433		2,487,400
EMC Corp.		103,319		2,598,473
				5,085,873
Cosmetics & Personal Care — 0.6%
The Procter & Gamble Co.		17,169		1,397,728
Diversified Financial Services — 4.3%
Ameriprise Financial, Inc.		34,761		3,999,253
Discover Financial Services		55,822		3,123,241
Legg Mason, Inc.		54,229		2,357,877
				9,480,371
Diversified Operations — 1.4%
Eaton Corp. PLC		40,867		3,110,796
Electric — 2.8%
Calpine Corp.*		102,178		1,993,493
FirstEnergy Corp.		47,100		1,553,358
NextEra Energy, Inc.		30,787		2,635,983
				6,182,834
Electronics — 1.2%
Honeywell International, Inc.		27,861		2,545,660
Food — 1.2%
Mondelez International, Inc., Class A		77,543		2,737,268

	Number of Shares		Value†
Healthcare Products — 1.3%
Covidien PLC		42,890	$	2,920,809
Healthcare Services — 2.5%
HCA Holdings, Inc.*		44,701		2,132,685
UnitedHealth Group, Inc.		44,207		3,328,787
				5,461,472
Insurance — 5.8%
American International Group, Inc.		60,155		3,070,913
MetLife, Inc.		63,738		3,436,753
The Travelers Cos., Inc.		31,208		2,825,572
Unum Group		97,210		3,410,127
				12,743,365
Internet — 2.4%
AOL, Inc.*		43,510		2,028,436
Liberty Interactive Corp., Class A*		111,016		3,258,320
				5,286,756
Machinery — Construction & Mining — 0.9%
Terex Corp.		45,021		1,890,432
Machinery — Diversified — 0.9%
Deere & Co.		21,382		1,952,818
Media — 4.6%
Comcast Corp., Class A		64,450		3,349,145
DIRECTV*		27,467		1,897,695
Liberty Global PLC, Class A*		22,093		1,966,056
Viacom, Inc., Class B		34,027		2,971,918
				10,184,814
Miscellaneous Manufacturing — 4.0%
Dover Corp.		17,118		1,652,572
General Electric Co.		128,733		3,608,386
Illinois Tool Works, Inc.		41,320		3,474,185
				8,735,143
Oil & Gas — 9.3%
Chevron Corp.		39,615		4,948,310
Exxon Mobil Corp.		40,163		4,064,496
Hess Corp.		36,059		2,992,897
Marathon Oil Corp.		89,151		3,147,030
Noble Energy, Inc.		44,414		3,025,037
Valero Energy Corp.		47,328		2,385,331
				20,563,101
Oil & Gas Services — 1.4%
Schlumberger Ltd.		34,255		3,086,718
Packaging and Containers — 1.4%
Sealed Air Corp.		92,972		3,165,697
Pharmaceuticals — 9.8%
Bristol-Myers Squibb Co.		48,408		2,572,885
Eli Lilly & Co.		61,149		3,118,599
Forest Laboratories, Inc.*		58,581		3,516,617
Merck & Co., Inc.		89,916		4,500,296
Pfizer, Inc.		147,122		4,506,347

99

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — (continued)
Sanofi ADR		64,455	$	3,456,722
				21,671,466
Retail — 4.6%
AutoNation, Inc.*		26,420		1,312,810
CVS Caremark Corp.		40,102		2,870,100
Family Dollar Stores, Inc.		42,190		2,741,084
Lowe’s Cos., Inc.		63,481		3,145,484
				10,069,478
Semiconductors — 1.3%
Texas Instruments, Inc.		67,418		2,960,324
Software — 1.9%
Microsoft Corp.		79,906		2,990,881
Oracle Corp.		31,157		1,192,067
				4,182,948
Telecommunications — 5.2%
Cisco Systems, Inc.		105,263		2,363,154
Motorola Solutions, Inc.		49,633		3,350,228
Verizon Communications, Inc.		54,192		2,662,995
Vodafone Group PLC- ADR		80,603		3,168,504
				11,544,881
Transportation — 1.4%
Norfolk Southern Corp.		33,444		3,104,607
TOTAL COMMON STOCKS (Cost $177,505,699)				211,226,770
REAL ESTATE INVESTMENT TRUSTS — 1.3%
Diversified — 1.3%
Weyerhaeuser Co. (Cost $2,787,678)		93,188		2,941,945
SHORT-TERM INVESTMENTS — 2.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $6,287,883)		6,287,883		6,287,883
TOTAL INVESTMENTS — 100.0% (Cost $186,581,260)			$	220,456,598

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 12/31/2013††
United States	93	%
France	3
Ireland	3
United Kingdom	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	211,226,770	$	211,226,770	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		2,941,945		2,941945		—		—
SHORT-TERM INVESTMENTS		6,287,883		6,287,883		—		—
TOTAL INVESTMENTS	$	220,456,598	$	220,456,598	$	—	$	—

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.

100

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — 95.6%
Aerospace & Defense — 3.1%
The Boeing Co.	$	22,766	$	3,107,331
United Technologies Corp.		23,362		2,658,596
				5,765,927
Agriculture — 1.2%
Reynolds American, Inc.		43,253		2,162,217
Airlines — 1.0%
Delta Air Lines, Inc.		70,109		1,925,894
Apparel — 0.5%
Coach, Inc.		16,998		954,098
Auto Manufacturers — 0.9%
Volkswagen AG ADR		30,770		1,736,659
Banks — 17.5%
Bank of America Corp.		239,747		3,732,861
Citigroup, Inc.		103,832		5,410,685
JPMorgan Chase & Co.		95,396		5,578,758
Morgan Stanley		139,524		4,375,473
Regions Financial Corp.		215,434		2,130,642
SunTrust Banks, Inc.		61,384		2,259,545
The Goldman Sachs Group, Inc.		11,681		2,070,574
The PNC Financial Services Group, Inc.		23,083		1,790,779
Wells Fargo & Co.		122,652		5,568,401
				32,917,718
Biotechnology — 2.2%
Gilead Sciences, Inc.*		53,614		4,029,092
Chemicals — 3.0%
CF Industries Holdings, Inc.		7,398		1,724,030
LyondellBasell Industries N.V., Class A		49,374		3,963,745
				5,687,775
Commercial Services — 0.7%
The ADT Corp.*		31,875		1,289,981
Computers — 3.7%
Apple, Inc.		6,386		3,583,249
EMC Corp.		82,100		2,064,815
NCR Corp.*		38,288		1,304,089
				6,952,153
Diversified Financial Services — 5.4%
American Express Co.		31,721		2,878,046
Blackstone Group LP		76,848		2,420,712
Discover Financial Services		47,958		2,683,250
Invesco Ltd.		58,146		2,116,515
				10,098,523
Diversified Operations — 0.7%
Eaton Corp. PLC		17,002		1,294,192
Electric — 1.8%
NextEra Energy, Inc.		40,266		3,447,575

	Number of Shares		Value†
Electronics — 2.2%
Honeywell International, Inc.	$	19,962	$	1,823,928
Thermo Fisher Scientific, Inc.		21,415		2,384,560
				4,208,488
Food — 0.9%
Nestle SA ADR		24,079		1,771,973
Gas — 2.0%
Sempra Energy		41,509		3,725,848
Healthcare Products — 1.8%
Covidien PLC		22,583		1,537,902
Stryker Corp.		24,660		1,852,953
				3,390,855
Insurance — 4.7%
ACE Ltd.		21,286		2,203,740
Aflac, Inc.		32,188		2,150,158
MetLife, Inc.		65,544		3,534,133
The Allstate Corp.		16,943		924,071
				8,812,102
Internet — 1.0%
Google, Inc., Class A*		1,661		1,861,499
Machinery — Construction & Mining — 1.3%
Caterpillar, Inc.		25,828		2,345,441
Media — 3.3%
Comcast Corp., Class A		47,633		2,475,249
The Walt Disney Co.		49,190		3,758,116
				6,233,365
Miscellaneous Manufacturing — 2.2%
General Electric Co.		148,610		4,165,538
Oil & Gas — 13.8%
Anadarko Petroleum Corp.		23,362		1,853,074
Chevron Corp.		41,792		5,220,239
ConocoPhillips		50,229		3,548,679
Exxon Mobil Corp.		52,240		5,286,688
Marathon Oil Corp.		74,586		2,632,886
Occidental Petroleum Corp.		47,633		4,529,898
Phillips 66		35,555		2,742,357
				25,813,821
Oil & Gas Services — 0.6%
Cameron International Corp.*		17,534		1,043,799
Pharmaceuticals — 8.7%
Merck & Co., Inc.		70,346		3,520,817
Pfizer, Inc.		161,589		4,949,471
Roche Holding Ltd. AG ADR		47,909		3,363,212
Sanofi ADR		49,468		2,652,969
Shire PLC ADR		13,475		1,903,883
				16,390,352

101

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Large Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — 3.7%
CVS Caremark Corp.	$	54,515	$	3,901,639
Dollar General Corp.*		18,097		1,091,611
Macy’s, Inc.		36,601		1,954,493
				6,947,743
Semiconductors — 2.3%
Intel Corp.		73,331		1,903,673
QUALCOMM, Inc.		33,659		2,499,180
				4,402,853
Telecommunications — 3.0%
AT&T, Inc.		49,839		1,752,339
Corning, Inc.		120,962		2,155,543
Verizon Communications, Inc.		35,043		1,722,013
				5,629,895
Textiles — 0.8%
Mohawk Industries, Inc.*		9,590		1,427,951
Transportation — 1.6%
Union Pacific Corp.		17,648		2,964,864
TOTAL COMMON STOCKS (Cost $126,540,026)				179,398,191
REAL ESTATE INVESTMENT TRUSTS — 2.6%
Diversified — 0.5%
American Tower Corp.		11,823		943,712
Regional Malls — 1.0%
Simon Property Group, Inc.		12,979		1,974,885
Storage & Warehousing — 1.1%
Public Storage		13,498		2,031,719
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $4,914,963)				4,950,316
SHORT-TERM INVESTMENTS — 1.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $3,284,782)		3,284,782		3,284,782
TOTAL INVESTMENTS — 100.0% (Cost $134,739,771)			$	187,633,289

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

LP — Limited Partnership.

PLC — Public Limited Company.

Country Weightings as of 12/31/2013††
United States	89%
Switzerland	4
Ireland	2
Netherlands	2
France	1
Germany	1
United Kingdom	1
Total	100%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	179,398,191	$	179,398,191	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		4,950,316		4,950,316		—		—
SHORT-TERM INVESTMENTS		3,284,782		3,284,782		—		—
TOTAL INVESTMENTS	$	187,633,289	$	187,633,289	$	—	$	—

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.

102

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — 97.4%
Advertising — 0.2%
Omnicom Group, Inc.		6,067	$	451,203
The Interpublic Group of Cos., Inc.		10,134		179,372
				630,575
Aerospace & Defense — 2.0%
General Dynamics Corp.		8,197		783,223
L-3 Communications Holdings, Inc.		2,100		224,406
Lockheed Martin Corp.		6,537		971,791
Northrop Grumman Corp.		5,392		617,977
Raytheon Co.		7,776		705,283
Rockwell Collins, Inc.		3,245		239,870
The Boeing Co.		16,621		2,268,600
United Technologies Corp.		20,342		2,314,920
				8,126,070
Agriculture — 1.7%
Altria Group, Inc.		48,078		1,845,714
Archer-Daniels-Midland Co.		15,999		694,357
Lorillard, Inc.		9,009		456,576
Philip Morris International, Inc.		38,588		3,362,173
Reynolds American, Inc.		7,602		380,024
				6,738,844
Airlines — 0.2%
Delta Air Lines, Inc.		20,400		560,388
Southwest Airlines Co.		16,417		309,296
				869,684
Apparel — 0.7%
Coach, Inc.		6,977		391,619
Michael Kors Holdings Ltd.*		4,300		349,117
NIKE, Inc., Class B		17,946		1,411,273
Ralph Lauren Corp.		1,428		252,142
VF Corp.		8,432		525,651
				2,929,802
Auto Manufacturers — 0.8%
Ford Motor Co.		95,967		1,480,771
General Motors Co.*		27,300		1,115,751
PACCAR, Inc.		8,544		505,548
				3,102,070
Auto Parts & Equipment — 0.4%
BorgWarner, Inc.		5,400		301,914
Delphi Automotive PLC		7,000		420,910
Johnson Controls, Inc.		16,411		841,884
The Goodyear Tire & Rubber Co.		5,606		133,703
				1,698,411
Banks — 7.5%
Bank of America Corp.		256,935		4,000,478
BB&T Corp.		17,099		638,135
Capital One Financial Corp.		13,841		1,060,359
Citigroup, Inc.		73,081		3,808,251
Comerica, Inc.		4,344		206,514
Fifth Third Bancorp		20,946		440,494
Huntington Bancshares, Inc.		19,965		192,662
JPMorgan Chase & Co.		90,564		5,296,183

	Number of Shares		Value†
Banks — (continued)
KeyCorp		21,599	$	289,859
M&T Bank Corp.		3,108		361,833
Morgan Stanley		33,763		1,058,808
Northern Trust Corp.		5,247		324,737
Regions Financial Corp.		32,894		325,322
State Street Corp.		10,447		766,705
SunTrust Banks, Inc.		12,888		474,407
The Bank of New York Mellon Corp.		28,080		981,115
The Goldman Sachs Group, Inc.		10,143		1,797,948
The PNC Financial Services Group, Inc.		12,883		999,463
U.S. Bancorp		43,856		1,771,782
Wells Fargo & Co.		115,537		5,245,380
Zions Bancorporation		4,804		143,928
				30,184,363
Beverages — 2.2%
Beam, Inc.		3,807		259,104
Brown-Forman Corp., Class B		3,793		286,637
Coca-Cola Enterprises, Inc.		5,928		261,603
Constellation Brands, Inc., Class A*		4,223		297,215
Dr. Pepper Snapple Group, Inc.		5,000		243,600
Molson Coors Brewing Co., Class B		3,938		221,119
Monster Beverage Corp.*		3,500		237,195
PepsiCo, Inc.		36,961		3,065,545
The Coca-Cola Co.		91,470		3,778,626
				8,650,644
Biotechnology — 2.5%
Alexion Pharmaceuticals, Inc.*		4,700		625,382
Amgen, Inc.		18,145		2,071,433
Biogen Idec, Inc.*		5,733		1,603,807
Celgene Corp.*		9,928		1,677,435
Gilead Sciences, Inc.*		36,898		2,772,885
Life Technologies Corp.*		4,359		330,412
Regeneron Pharmaceuticals, Inc.*		1,900		522,956
Vertex Pharmaceuticals, Inc.*		5,500		408,650
				10,012,960
Building Materials — 0.1%
Masco Corp.		9,077		206,684
Vulcan Materials Co.		3,041		180,696
				387,380
Chemicals — 2.5%
Air Products & Chemicals, Inc.		5,021		561,247
Airgas, Inc.		1,600		178,960
CF Industries Holdings, Inc.		1,400		326,256
E.I. du Pont de Nemours & Co.		22,523		1,463,319
Eastman Chemical Co.		3,682		297,137
Ecolab, Inc.		6,533		681,196
FMC Corp.		3,100		233,926
International Flavors & Fragrances, Inc.		1,875		161,213
LyondellBasell Industries N.V., Class A		10,600		850,968
Monsanto Co.		12,637		1,472,842
PPG Industries, Inc.		3,410		646,741
Praxair, Inc.		7,126		926,594
Sigma-Aldrich Corp.		3,022		284,098

103

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Chemicals — (continued)
The Dow Chemical Co.		29,404	$	1,305,538
The Mosaic Co.		8,100		382,887
The Sherwin-Williams Co.		2,134		391,589
				10,164,511
Coal — 0.1%
CONSOL Energy, Inc.		5,776		219,719
Peabody Energy Corp.		6,212		121,320
				341,039
Commercial Services — 1.7%
Allegion PLC*		2,266		100,135
Alliance Data Systems Corp.*		1,200		315,516
Automatic Data Processing, Inc.		11,743		948,952
Cintas Corp.		2,455		146,293
Equifax, Inc.		3,034		209,619
H&R Block, Inc.		6,666		193,581
Iron Mountain, Inc.		4,381		132,963
Mastercard, Inc., Class A		2,500		2,088,650
McGraw Hill Financial, Inc.		6,486		507,205
Moody’s Corp.		4,473		350,996
Paychex, Inc.		7,775		353,996
Quanta Services, Inc.*		4,900		154,644
Robert Half International, Inc.		3,207		134,662
The ADT Corp.*		5,150		208,421
The Western Union Co.		13,778		237,670
Total System Services, Inc.		4,377		145,667
Tyco International Ltd.		11,500		471,960
				6,700,930
Computers — 5.8%
Accenture PLC, Class A		15,400		1,266,188
Apple, Inc.		21,726		12,190,676
Cognizant Technology Solutions Corp., Class A*		7,252		732,307
Computer Sciences Corp.		3,757		209,941
EMC Corp.		49,348		1,241,102
Hewlett-Packard Co.		46,683		1,306,190
International Business Machines Corp.		24,558		4,606,344
NetApp, Inc.		8,121		334,098
SanDisk Corp.		5,397		380,705
Seagate Technology PLC		7,700		432,432
Teradata Corp.*		4,216		191,786
Western Digital Corp.		5,200		436,280
				23,328,049
Cosmetics & Personal Care — 1.8%
Avon Products, Inc.		10,950		188,559
Colgate-Palmolive Co.		21,070		1,373,975
The Estee Lauder Cos., Inc., Class A		6,074		457,494
The Procter & Gamble Co.		65,494		5,331,866
				7,351,894
Distribution & Wholesale — 0.3%
Fastenal Co.		6,700		318,317
Fossil Group, Inc.*		1,200		143,928
Genuine Parts Co.		3,805		316,538

	Number of Shares		Value†
Distribution & Wholesale — (continued)
W.W. Grainger, Inc.		1,472	$	375,978
				1,154,761
Diversified Financial Services — 2.7%
American Express Co.		22,180		2,012,391
Ameriprise Financial, Inc.		4,746		546,027
BlackRock, Inc.		3,099		980,741
CME Group, Inc.		7,560		593,158
Discover Financial Services		11,378		636,599
E*TRADE Financial Corp.*		7,681		150,855
Franklin Resources, Inc.		9,556		551,668
IntercontinentalExchange Group, Inc.*		2,770		623,028
Invesco Ltd.		11,067		402,839
Legg Mason, Inc.		2,861		124,396
SLM Corp.		10,434		274,206
T. Rowe Price Group, Inc.		6,281		526,159
The Charles Schwab Corp.		27,669		719,394
The NASDAQ OMX Group, Inc.		3,100		123,380
Visa, Inc., Class A		12,264		2,730,948
				10,995,789
Diversified Operations — 0.4%
Eaton Corp. PLC		11,306		860,613
Leucadia National Corp.		8,060		228,420
Pentair, Ltd.		4,919		382,059
				1,471,092
Electric — 2.5%
AES Corp.		14,444		209,582
Ameren Corp.		6,198		224,120
American Electric Power Co., Inc.		11,757		549,522
CMS Energy Corp.		6,707		179,546
Consolidated Edison, Inc.		7,234		399,895
Dominion Resources, Inc.		13,909		899,773
DTE Energy Co.		4,092		271,668
Duke Energy Corp.		17,159		1,184,143
Edison International		8,174		378,456
Entergy Corp.		4,447		281,362
Exelon Corp.		21,210		580,942
FirstEnergy Corp.		9,956		328,349
Integrys Energy Group, Inc.		1,995		108,548
NextEra Energy, Inc.		10,285		880,602
Northeast Utilities		7,517		318,646
NRG Energy, Inc.		7,800		224,016
Pepco Holdings, Inc.		5,540		105,980
PG&E Corp.		10,650		428,982
Pinnacle West Capital Corp.		2,569		135,951
PPL Corp.		15,098		454,299
Public Service Enterprise Group, Inc.		12,349		395,662
SCANA Corp.		3,400		159,562
TECO Energy, Inc.		4,523		77,977
The Southern Co.		21,111		867,873
Wisconsin Energy Corp.		5,800		239,772
Xcel Energy, Inc.		12,530		350,088
				10,235,316

104

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electrical Components & Equipment — 0.4%
AMETEK, Inc.		5,800	$	305,486
Emerson Electric Co.		16,876		1,184,358
				1,489,844
Electronics — 1.2%
Agilent Technologies, Inc.		7,845		448,655
Amphenol Corp., Class A		4,000		356,720
FLIR Systems, Inc.		3,600		108,360
Garmin Ltd.		3,200		147,904
Honeywell International, Inc.		19,108		1,745,898
Jabil Circuit, Inc.		4,292		74,852
PerkinElmer, Inc.		3,016		124,350
TE Connectivity Ltd.		10,000		551,100
Thermo Fisher Scientific, Inc.		8,682		966,741
Waters Corp.*		2,158		215,800
				4,740,380
Engineering & Construction — 0.1%
Fluor Corp.		3,870		310,722
Jacobs Engineering Group, Inc.*		2,983		187,899
				498,621
Entertainment — 0.0%
International Game Technology		6,657		120,891
Environmental Control — 0.2%
Republic Services, Inc.		6,314		209,625
Stericycle, Inc.*		2,000		232,340
Waste Management, Inc.		10,500		471,135
				913,100
Food — 1.7%
Campbell Soup Co.		4,516		195,452
ConAgra Foods, Inc.		9,902		333,697
General Mills, Inc.		15,110		754,140
Hormel Foods Corp.		3,500		158,095
Kellogg Co.		6,466		394,879
Kraft Foods Group, Inc.		14,254		768,576
McCormick & Co., Inc.		3,208		221,095
Mondelez International, Inc., Class A		42,663		1,506,004
Safeway, Inc.		6,170		200,957
Sysco Corp.		14,252		514,497
The Hershey Co.		3,487		339,041
The J.M. Smucker Co.		2,534		262,573
The Kroger Co.		12,445		491,951
Tyson Foods, Inc., Class A		6,649		222,476
Whole Foods Market, Inc.		8,986		519,660
				6,883,093
Forest Products & Paper — 0.2%
International Paper Co.		10,967		537,712
MeadWestvaco Corp.		3,999		147,683
				685,395
Gas — 0.3%
AGL Resources, Inc.		2,600		122,798
CenterPoint Energy, Inc.		10,322		239,264
NiSource, Inc.		7,865		258,601

	Number of Shares		Value†
Gas — (continued)
Sempra Energy		5,398	$	484,525
				1,105,188
Hand & Machine Tools — 0.1%
Snap-On, Inc.		1,328		145,442
Stanley Black & Decker, Inc.		3,940		317,919
				463,361
Healthcare Products — 1.7%
Baxter International, Inc.		13,275		923,276
Becton Dickinson & Co.		4,675		516,541
Boston Scientific Corp.*		31,948		384,015
C.R. Bard, Inc.		1,842		246,717
CareFusion Corp.*		5,241		208,697
Covidien PLC		11,300		769,530
DENTSPLY International, Inc.		3,200		155,136
Edwards Lifesciences Corp.*		2,500		164,400
Hospira, Inc.*		3,912		161,487
Intuitive Surgical, Inc.*		907		348,361
Medtronic, Inc.		23,973		1,375,810
Patterson Cos., Inc.		1,974		81,329
St. Jude Medical, Inc.		7,230		447,899
Stryker Corp.		6,981		524,552
Varian Medical Systems, Inc.*		2,657		206,422
Zimmer Holdings, Inc.		4,029		375,463
				6,889,635
Healthcare Services — 1.2%
Aetna, Inc.		8,893		609,971
Cigna Corp.		6,594		576,843
DaVita HealthCare Partners, Inc.*		4,298		272,364
Humana, Inc.		3,710		382,946
Laboratory Corp. of America Holdings*		2,177		198,913
Quest Diagnostics, Inc.		3,387		181,340
Tenet Healthcare Corp.*		2,343		98,687
UnitedHealth Group, Inc.		24,141		1,817,817
WellPoint, Inc.		7,095		655,507
				4,794,388
Home Builders — 0.1%
D.R. Horton, Inc.		6,376		142,312
Lennar Corp., Class A		4,036		159,664
PulteGroup, Inc.		8,034		163,653
				465,629
Home Furnishings — 0.1%
Harman International Industries, Inc.		1,738		142,255
Whirlpool Corp.		1,969		308,858
				451,113
Household Products & Wares — 0.3%
Avery Dennison Corp.		2,183		109,565
Kimberly-Clark Corp.		9,287		970,120
The Clorox Co.		2,997		278,002
				1,357,687
Housewares — 0.1%
Newell Rubbermaid, Inc.		7,317		237,144

105

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Schedule of Investments — December 31, 2013

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — 4.3%
ACE Ltd.		8,100	$	838,593
Aflac, Inc.		11,100		741,480
American International Group, Inc.		35,385		1,806,404
Aon PLC		7,444		624,477
Assurant, Inc.		1,673		111,037
Berkshire Hathaway, Inc., Class B*		43,350		5,139,576
Cincinnati Financial Corp.		3,692		193,350
Genworth Financial, Inc., Class A*		11,369		176,561
Hartford Financial Services Group, Inc.		10,557		382,480
Lincoln National Corp.		6,573		339,299
Loews Corp.		7,625		367,830
Marsh & McLennan Cos., Inc.		13,109		633,951
MetLife, Inc.		26,885		1,449,639
Principal Financial Group, Inc.		6,465		318,789
Prudential Financial, Inc.		11,330		1,044,853
The Allstate Corp.		11,276		614,993
The Chubb Corp.		5,951		575,045
The Progressive Corp.		13,856		377,853
The Travelers Cos., Inc.		8,831		799,559
Torchmark Corp.		2,235		174,665
Unum Group		6,676		234,194
XL Group PLC		6,549		208,520
				17,153,148
Internet — 4.7%
Amazon.com, Inc.*		8,975		3,579,140
eBay, Inc.*		28,328		1,554,924
Expedia, Inc.		2,494		173,732
F5 Networks, Inc.*		1,800		163,548
Facebook, Inc., Class A*		39,600		2,164,536
Google, Inc., Class A*		6,765		7,581,603
Netflix, Inc.*		1,400		515,438
priceline.com, Inc.*		1,252		1,455,325
Symantec Corp.		16,638		392,324
TripAdvisor, Inc.*		2,594		214,861
VeriSign, Inc.*		3,009		179,878
Yahoo!, Inc.*		22,617		914,632
				18,889,941
Iron & Steel — 0.2%
Allegheny Technologies, Inc.		2,278		81,165
Cliffs Natural Resources, Inc.		4,100		107,461
Nucor Corp.		7,735		412,894
United States Steel Corp.		3,203		94,489
				696,009
Leisure Time — 0.2%
Carnival Corp.		10,345		415,558
Harley-Davidson, Inc.		5,228		361,987
				777,545
Lodging — 0.3%
Marriott International, Inc., Class A		5,685		280,612
Starwood Hotels & Resorts Worldwide, Inc.		4,752		377,546
Wyndham Worldwide Corp.		3,160		232,860
Wynn Resorts Ltd.		2,000		388,420
				1,279,438

	Number of Shares		Value†
Machinery — Construction & Mining — 0.4%
Caterpillar, Inc.		15,428	$	1,401,017
Joy Global, Inc.		2,700		157,923
				1,558,940
Machinery — Diversified — 0.6%
Cummins, Inc.		4,174		588,409
Deere & Co.		9,132		834,026
Flowserve Corp.		3,300		260,139
Rockwell Automation, Inc.		3,471		410,133
Roper Industries, Inc.		2,400		332,832
Xylem, Inc.		4,854		167,948
				2,593,487
Media — 3.6%
Cablevision Systems Corp., Class A		5,000		89,650
CBS Corp., Class B		13,725		874,831
Comcast Corp., Class A		62,734		3,259,972
DIRECTV*		11,819		816,575
Discovery Communications, Inc., Class A*		5,600		506,352
Gannett Co., Inc.		5,374		158,963
Graham Holdings Co.		63		41,789
News Corp., Class A*		12,215		220,114
Nielsen Holdings NV		5,100		234,039
Scripps Networks Interactive, Inc., Class A		2,556		220,864
The Walt Disney Co.		39,376		3,008,326
Time Warner Cable, Inc.		6,696		907,308
Time Warner, Inc.		22,004		1,534,119
Twenty-First Century Fox, Inc., Class A		47,160		1,659,089
Viacom, Inc., Class B		9,781		854,273
				14,386,264
Metal Fabricate/Hardware — 0.2%
Precision Castparts Corp.		3,525		949,282
Mining — 0.4%
Alcoa, Inc.		25,948		275,827
Freeport-McMoRan Copper & Gold, Inc.		25,196		950,897
Newmont Mining Corp.		12,383		285,181
				1,511,905
Miscellaneous Manufacturing — 3.2%
3M Co.		15,380		2,157,045
Danaher Corp.		14,368		1,109,209
Dover Corp.		4,105		396,297
General Electric Co.		243,825		6,834,415
Illinois Tool Works, Inc.		10,019		842,397
Ingersoll-Rand PLC		6,300		388,080
Leggett & Platt, Inc.		3,354		103,773
Pall Corp.		2,645		225,751
Parker Hannifin Corp.		3,581		460,660
Textron, Inc.		6,876		252,762
				12,770,389
Office & Business Equipment — 0.1%
Pitney Bowes, Inc.		4,261		99,281
Xerox Corp.		27,655		336,562
				435,843

106

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Schedule of Investments — December 31, 2013

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas — 8.0%
Anadarko Petroleum Corp.		12,259	$	972,384
Apache Corp.		9,623		827,001
Cabot Oil & Gas Corp.		10,088		391,011
Chesapeake Energy Corp.		12,410		336,807
Chevron Corp.		46,370		5,792,077
ConocoPhillips		29,780		2,103,957
Denbury Resources, Inc.*		8,500		139,655
Devon Energy Corp.		9,229		570,998
Diamond Offshore Drilling, Inc.		1,600		91,072
Ensco PLC ADR,Class A		5,800		331,644
EOG Resources, Inc.		6,558		1,100,695
EQT Corp.		3,600		323,208
Exxon Mobil Corp.		105,365		10,662,938
Helmerich & Payne, Inc.		2,700		227,016
Hess Corp.		6,997		580,751
Marathon Oil Corp.		16,751		591,310
Marathon Petroleum Corp.		7,225		662,749
Murphy Oil Corp.		4,317		280,087
Newfield Exploration Co.*		2,900		71,427
Noble Energy, Inc.		8,538		581,523
Occidental Petroleum Corp.		19,358		1,840,946
Phillips 66		14,340		1,106,044
Pioneer Natural Resources Co.		3,400		625,838
QEP Resources, Inc.		4,590		140,683
Range Resources Corp.		3,923		330,748
Southwestern Energy Co.*		8,490		333,912
Tesoro Corp.		3,094		180,999
Valero Energy Corp.		12,840		647,136
WPX Energy, Inc.*		4,344		88,531
				31,933,147
Oil & Gas Services — 1.7%
Baker Hughes, Inc.		10,528		581,777
Cameron International Corp.*		5,939		353,549
FMC Technologies, Inc.*		5,700		297,597
Halliburton Co.		20,269		1,028,652
Nabors Industries Ltd.		5,908		100,377
National Oilwell Varco, Inc.		10,423		828,941
Noble Corp. PLC		6,400		239,808
Rowan Cos., Inc., Class A*		3,203		113,258
Schlumberger Ltd.		31,659		2,852,792
Transocean Ltd.*		8,300		410,186
				6,806,937
Packaging and Containers — 0.2%
Ball Corp.		3,726		192,485
Bemis Co., Inc.		2,549		104,407
Owens-Illinois, Inc.*		4,000		143,120
Sealed Air Corp.		5,033		171,374
				611,386
Pharmaceuticals — 7.0%
Abbott Laboratories		37,096		1,421,890
AbbVie, Inc.		38,596		2,038,255
Actavis PLC*		4,243		712,824
Allergan, Inc.		7,116		790,445
AmerisourceBergen Corp.		5,500		386,705

	Number of Shares		Value†
Pharmaceuticals — (continued)
Bristol-Myers Squibb Co.		39,597	$	2,104,581
Cardinal Health, Inc.		8,182		546,639
Eli Lilly & Co.		24,154		1,231,854
Express Scripts Holding Co.*		19,364		1,360,127
Forest Laboratories, Inc.*		5,562		333,887
Johnson & Johnson		68,041		6,231,875
McKesson Corp.		5,525		891,735
Mead Johnson Nutrition Co.		5,068		424,496
Merck & Co., Inc.		70,354		3,521,218
Mylan, Inc.*		9,056		393,030
Perrigo Co. PLC		3,300		506,418
Pfizer, Inc.		156,105		4,781,496
Zoetis, Inc.		12,107		395,778
				28,073,253
Pipelines — 0.5%
Kinder Morgan, Inc.		16,236		584,496
ONEOK, Inc.		4,800		298,464
Spectra Energy Corp.		16,384		583,598
The Williams Cos., Inc.		16,434		633,859
				2,100,417
Real Estate — 0.0%
CBRE Group, Inc., Class A*		7,201		189,386
Retail — 6.1%
AutoNation, Inc.*		1,719		85,417
AutoZone, Inc.*		841		401,947
Bed Bath & Beyond, Inc.*		5,366		430,890
Best Buy Co., Inc.		6,468		257,944
CarMax, Inc.*		5,300		249,206
Chipotle Mexican Grill, Inc.*		700		372,946
Costco Wholesale Corp.		10,677		1,270,670
CVS Caremark Corp.		28,567		2,044,540
Darden Restaurants, Inc.		2,940		159,848
Dollar General Corp.*		7,000		422,240
Dollar Tree, Inc.*		4,900		276,458
Family Dollar Stores, Inc.		2,233		145,078
GameStop Corp., Class A		2,664		131,229
Kohl’s Corp.		5,001		283,807
L Brands, Inc.		6,060		374,811
Lowe’s Cos., Inc.		25,440		1,260,552
Macy’s, Inc.		8,727		466,022
McDonald’s Corp.		23,978		2,326,585
Nordstrom, Inc.		3,337		206,227
O’Reilly Automotive, Inc.*		2,700		347,517
PetSmart, Inc.		2,600		189,150
PVH Corp.		1,900		258,438
Ross Stores, Inc.		5,200		389,636
Staples, Inc.		15,637		248,472
Starbucks Corp.		18,244		1,430,147
Target Corp.		15,132		957,402
The Gap, Inc.		6,182		241,592
The Home Depot, Inc.		33,904		2,791,655
Tiffany & Co.		2,764		256,444
TJX Cos., Inc.		17,018		1,084,557
Urban Outfitters, Inc.*		2,500		92,750

107

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
Wal-Mart Stores, Inc.		38,947	$	3,064,739
Walgreen Co.		21,179		1,216,522
Yum! Brands, Inc.		10,669		806,683
				24,542,121
Savings & Loans — 0.1%
Hudson City Bancorp, Inc.		11,257		106,154
People’s United Financial, Inc.		7,700		116,424
				222,578
Semiconductors — 2.8%
Altera Corp.		8,065		262,354
Analog Devices, Inc.		7,676		390,939
Applied Materials, Inc.		29,321		518,688
Broadcom Corp., Class A		12,908		382,722
First Solar, Inc.*		1,800		98,352
Intel Corp.		119,675		3,106,763
KLA-Tencor Corp.		4,127		266,026
Lam Research Corp.*		3,859		210,123
Linear Technology Corp.		5,541		252,393
LSI Corp.		12,772		140,747
Microchip Technology, Inc.		5,018		224,556
Micron Technology, Inc.*		26,086		567,631
NVIDIA Corp.		13,554		217,135
QUALCOMM, Inc.		40,699		3,021,901
Texas Instruments, Inc.		26,193		1,150,135
Xilinx, Inc.		6,364		292,235
				11,102,700
Software — 3.7%
Adobe Systems, Inc.*		11,405		682,931
Akamai Technologies, Inc.*		4,591		216,603
Autodesk, Inc.*		5,681		285,925
CA, Inc.		7,639		257,052
Cerner Corp.*		7,000		390,180
Citrix Systems, Inc.*		4,691		296,706
Electronic Arts, Inc.*		7,730		177,326
Fidelity National Information Services, Inc.		7,059		378,927
Fiserv, Inc.*		6,414		378,747
Intuit, Inc.		6,892		525,998
Microsoft Corp.		183,115		6,853,995
Oracle Corp.		84,517		3,233,620
Red Hat, Inc.*		4,600		257,784
Salesforce.com, Inc.*		13,200		728,508
The Dun & Bradstreet Corp.		900		110,475
				14,774,777
Telecommunications — 3.4%
AT&T, Inc.		126,943		4,463,316
CenturyLink, Inc.		14,626		465,838
Cisco Systems, Inc.		128,680		2,888,866
Corning, Inc.		35,615		634,659
Crown Castle International Corp.*		8,000		587,440
Frontier Communications Corp.		21,472		99,845
Harris Corp.		2,600		181,506
Juniper Networks, Inc.*		12,071		272,442
Motorola Solutions, Inc.		5,746		387,855

	Number of Shares		Value†
Telecommunications — (continued)
Verizon Communications, Inc.		68,876	$	3,384,567
Windstream Holdings, Inc.		13,351		106,541
				13,472,875
Textiles — 0.1%
Mohawk Industries, Inc.*		1,500		223,350
Toys, Games & Hobbies — 0.1%
Hasbro, Inc.		2,612		143,686
Mattel, Inc.		8,281		394,010
				537,696
Transportation — 1.7%
C.H. Robinson Worldwide, Inc.		3,739		218,133
CSX Corp.		24,966		718,272
Expeditors International of Washington, Inc.		4,973		220,055
FedEx Corp.		7,166		1,030,256
Kansas City Southern		2,700		334,341
Norfolk Southern Corp.		7,552		701,052
Ryder System, Inc.		1,125		83,003
Union Pacific Corp.		11,110		1,866,480
United Parcel Service, Inc., Class B		17,374		1,825,660
				6,997,252
TOTAL COMMON STOCKS (Cost $246,589,587)				390,759,719
REAL ESTATE INVESTMENT TRUSTS — 1.8%
Apartments — 0.2%
Apartment Investment & Management Co., Class A		3,662		94,883
AvalonBay Communities, Inc.		2,892		341,921
Equity Residential		7,892		409,358
				846,162
Diversified — 0.4%
American Tower Corp.		9,559		762,999
Plum Creek Timber Co., Inc.		4,547		211,481
Vornado Realty Trust		4,087		362,885
Weyerhaeuser Co.		13,808		435,919
				1,773,284
Healthcare — 0.3%
HCP, Inc.		10,840		393,709
Health Care REIT, Inc.		7,100		380,347
Ventas, Inc.		7,253		415,452
				1,189,508
Hotels & Resorts — 0.1%
Host Hotels & Resorts, Inc.		17,676		343,621
Industrial — 0.1%
Prologis, Inc.		11,899		439,668
Office Property — 0.1%
Boston Properties, Inc.		3,742		375,585
Regional Malls — 0.4%
General Growth Properties, Inc.		13,500		270,945
Simon Property Group, Inc.		7,528		1,145,460

108

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Regional Malls — (continued)
The Macerich Co.		3,400	$	200,226
				1,616,631
Storage & Warehousing — 0.1%
Public Storage		3,516		529,228
Strip Centers — 0.1%
Kimco Realty Corp.		9,564		188,889
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $5,956,503)				7,302,576
	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U.S. Treasury Bill
0.000%, 01/16/14+	$	35		34,999
0.035%, 01/16/14+		150		149,997
0.000%, 02/20/14+		200		200,000
TOTAL U.S. TREASURY OBLIGATIONS (Cost $384,998)				384,996
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 0.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,609,162)		2,609,162		2,609,162
TOTAL INVESTMENTS — 100.0% (Cost $255,540,250)			$	401,056,453

† 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 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	390,759,719	$	390,759,719	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		7,302,576		7,302,576		—		—
U.S. TREASURY OBLIGATIONS		384,996		—		384,996		—
SHORT-TERM INVESTMENTS		2,609,162		2,609,162		—		—
TOTAL INVESTMENTS	$	401,056,453	$	400,671,457	$	384,996	$	—

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.

109

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Mid Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 99.2%
Airlines — 1.3%
Delta Air Lines, Inc.		58,880	$	1,617,434
Apparel — 3.0%
Michael Kors Holdings Ltd.		17,100		1,388,349
Ralph Lauren Corp.		12,440		2,196,531
				3,584,880
Auto Parts & Equipment — 2.2%
BorgWarner, Inc.		47,740		2,669,143
Banks — 1.2%
Signature Bank*		13,360		1,435,131
Beverages — 2.1%
Beam, Inc.		36,750		2,501,205
Biotechnology — 4.4%
Alexion Pharmaceuticals, Inc.*		10,320		1,373,179
Cubist Pharmaceuticals, Inc.*		21,480		1,479,328
NPS Pharmaceuticals, Inc.*		36,620		1,111,783
Regeneron Pharmaceuticals, Inc.*		5,120		1,409,229
				5,373,519
Chemicals — 5.3%
Eastman Chemical Co.		25,590		2,065,113
International Flavors & Fragrances, Inc.		19,570		1,682,629
Methanex Corp.		18,400		1,090,016
PPG Industries, Inc.		8,520		1,615,903
				6,453,661
Commercial Services — 5.0%
Alliance Data Systems Corp.*		10,440		2,744,989
Cardtronics, Inc.*		32,530		1,413,429
Robert Half International, Inc.		21,260		892,707
Verisk Analytics, Inc., Class A*		15,280		1,004,202
				6,055,327
Distribution & Wholesale — 2.1%
Fossil Group, Inc.*		9,510		1,140,630
WESCO International, Inc.*		14,790		1,346,925
				2,487,555
Diversified Financial Services — 4.8%
Affiliated Managers Group, Inc.*		9,530		2,066,866
IntercontinentalExchange Group, Inc.*		13,020		2,928,459
Ocwen Financial Corp.*		13,560		751,902
				5,747,227
Diversified Operations — 0.9%
Pentair, Ltd.		14,210		1,103,691
Engineering & Construction — 0.9%
MasTec, Inc.*		31,630		1,034,934
Food — 2.2%
The Kroger Co.		45,050		1,780,826
WhiteWave Foods Co., Class A*		39,900		915,306
				2,696,132

	Number of Shares		Value†
Healthcare Products — 1.2%
The Cooper Cos., Inc.		11,520	$	1,426,637
Healthcare Services — 1.6%
Covance, Inc.*		9,640		848,898
HCA Holdings, Inc.*		23,670		1,129,296
				1,978,194
Home Builders — 0.9%
Toll Brothers, Inc.*		27,950		1,034,150
Household Products & Wares — 1.2%
Church & Dwight Co., Inc.		21,050		1,395,194
Insurance — 3.1%
Aon PLC		26,750		2,244,057
Markel Corp.*		2,630		1,526,321
				3,770,378
Internet — 9.1%
HomeAway, Inc.*		51,450		2,103,276
LinkedIn Corp., Class A*		12,400		2,688,692
Shutterfly, Inc.*		35,080		1,786,624
Splunk, Inc.*		24,310		1,669,368
TripAdvisor, Inc.*		19,210		1,591,164
Yelp, Inc.*		17,300		1,192,835
				11,031,959
Leisure Time — 2.4%
Harley-Davidson, Inc.		19,730		1,366,105
Polaris Industries, Inc.		10,610		1,545,240
				2,911,345
Lodging — 3.6%
Starwood Hotels & Resorts Worldwide, Inc.		23,620		1,876,609
Wynn Resorts Ltd.		12,940		2,513,077
				4,389,686
Machinery — Diversified — 3.0%
Rockwell Automation, Inc.		15,730		1,858,657
Roper Industries, Inc.		13,030		1,807,000
				3,665,657
Media — 1.6%
Liberty Global PLC, Class A		22,310		1,985,367
Oil & Gas — 5.0%
Cabot Oil & Gas Corp.		46,440		1,800,014
Concho Resources, Inc.*		16,310		1,761,480
Gulfport Energy Corp.*		24,850		1,569,278
Rosetta Resources, Inc.*		19,500		936,780
				6,067,552
Packaging and Containers — 2.7%
Crown Holdings, Inc.*		39,220		1,748,035
Rock-Tenn Co., Class A		13,950		1,464,890
				3,212,925

110

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Schedule of Investments — December 31, 2013

Mid Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — 4.4%
Actavis PLC		11,690	$	1,963,920
AmerisourceBergen Corp.		21,440		1,507,446
BioMarin Pharmaceutical, Inc.*		11,310		794,754
Perrigo Co. PLC		6,860		1,052,736
				5,318,856
Retail — 5.7%
Dunkin’ Brands Group, Inc.		35,940		1,732,308
Fifth & Pacific Cos., Inc.*		48,440		1,553,471
PVH Corp.		11,580		1,575,112
Tractor Supply Co.		26,980		2,093,108
				6,953,999
Semiconductors — 8.4%
Avago Technologies Ltd.		38,470		2,034,678
Cavium, Inc.*		73,440		2,534,415
KLA-Tencor Corp.		23,810		1,534,793
Maxim Integrated Products, Inc.		39,110		1,091,560
NXP Semiconductors N.V.*		48,110		2,209,692
Ultratech, Inc.*		25,020		725,580
				10,130,718
Software — 7.1%
Cerner Corp.*		26,510		1,477,667
Cornerstone OnDemand, Inc.*		22,090		1,178,281
ServiceNow, Inc.*		39,270		2,199,513
Tableau Software, Inc., Class A*		17,830		1,229,022
Veeva Systems, Inc.*		23,300		747,930
Workday, Inc., Class A*		20,960		1,743,033
				8,575,446
Telecommunications — 1.6%
Ciena Corp.*		34,600		827,978
SBA Communications Corp., Class A*		12,740		1,144,562
				1,972,540
Transportation — 1.2%
Genesee & Wyoming, Inc., Class A*		15,330		1,472,446
TOTAL COMMON STOCKS (Cost $90,907,717)				120,052,888
SHORT-TERM INVESTMENTS — 0.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,009,035)		1,009,035		1,009,035
TOTAL INVESTMENTS — 100.0% (Cost $91,916,752)			$	121,061,923

† See Security Valuation Note.

* Non-income producing security.

PLC — Public Limited Company.

Country Weightings as of 12/31/2013††
United States	93	%
Netherlands	2
United Kingdom	2
Canada	1
Hong Kong	1
Ireland	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	120,052,888	$	120,052,888	$	—	$	—
SHORT-TERM INVESTMENTS		1,009,035		1,009,035		—		—
TOTAL INVESTMENTS	$	121,061,923	$	121,061,923	$	—	$	—

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.

111

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Schedule of Investments — December 31, 2013

Mid Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 88.1%
Aerospace & Defense — 6.5%
General Dynamics Corp.		44,150	$	4,218,532
Rockwell Collins, Inc.		45,800		3,385,536
Spirit Aerosystems Holdings, Inc., Class A*		106,100		3,615,888
				11,219,956
Auto Parts & Equipment — 1.4%
Lear Corp.		30,400		2,461,488
Banks — 5.7%
BB&T Corp.		52,200		1,948,104
Comerica, Inc.		52,700		2,505,358
Huntington Bancshares, Inc.		192,200		1,854,730
State Street Corp.		47,600		3,493,364
				9,801,556
Chemicals — 2.5%
Ashland, Inc.		44,000		4,269,760
Commercial Services — 8.4%
Avis Budget Group, Inc.*		75,000		3,031,500
Hertz Global Holdings, Inc.*		76,000		2,175,120
The ADT Corp.*		85,000		3,439,950
The Western Union Co.		199,100		3,434,475
Tyco International Ltd.		58,300		2,392,632
				14,473,677
Computers — 2.5%
Cadence Design Systems, Inc.*		125,700		1,762,314
Teradata Corp.*		55,900		2,542,891
				4,305,205
Electric — 4.7%
AES Corp.		223,900		3,248,789
Edison International		54,700		2,532,610
Pinnacle West Capital Corp.		45,900		2,429,028
				8,210,427
Electronics — 3.2%
Dolby Laboratories, Inc., Class A*		79,800		3,077,088
Flextronics International Ltd.*		319,400		2,481,738
				5,558,826
Engineering & Construction — 1.7%
KBR, Inc.		94,500		3,013,605
Environmental Control — 3.0%
Covanta Holding Corp.		186,400		3,308,600
Republic Services, Inc.		57,000		1,892,400
				5,201,000
Food — 4.3%
Safeway, Inc.		230,600		7,510,642
Gas — 1.9%
CenterPoint Energy, Inc.		138,900		3,219,702
Hand & Machine Tools — 1.0%
Regal-Beloit Corp.		24,700		1,820,884

	Number of Shares		Value†
Healthcare Products — 3.6%
Covidien PLC		49,000	$	3,336,900
Zimmer Holdings, Inc.		32,100		2,991,399
				6,328,299
Household Products & Wares — 1.0%
Avery Dennison Corp.		34,200		1,716,498
Internet — 1.7%
Symantec Corp.		125,600		2,961,648
Lodging — 1.2%
Wyndham Worldwide Corp.		27,300		2,011,737
Miscellaneous Manufacturing — 3.4%
Textron, Inc.		90,900		3,341,484
Valmont Industries, Inc.		17,400		2,594,688
				5,936,172
Oil & Gas — 3.7%
Devon Energy Corp.		66,600		4,120,542
Energy Transfer Partners, LP		14,775		845,869
Southwestern Energy Co.*		36,400		1,431,612
				6,398,023
Oil & Gas Services — 1.9%
Cameron International Corp.*		54,700		3,256,291
Pharmaceuticals — 3.7%
Cardinal Health, Inc.		39,200		2,618,952
Mallinckrodt PLC		6,150		321,399
Omnicare, Inc.		56,700		3,422,412
				6,362,763
Retail — 9.9%
Best Buy Co., Inc.		55,700		2,221,316
CVS Caremark Corp.		62,000		4,437,340
Express, Inc.*		177,400		3,312,058
Kohl’s Corp.		64,800		3,677,400
Staples, Inc.		222,000		3,527,580
				17,175,694
Savings & Loans — 3.6%
BankUnited, Inc.		86,700		2,854,164
People’s United Financial, Inc.		222,400		3,362,688
				6,216,852
Semiconductors — 1.7%
Skyworks Solutions, Inc.*		102,300		2,921,688
Software — 4.0%
Check Point Software Technologies Ltd.*		49,200		3,174,384
Nuance Communications, Inc.*		247,788		3,766,378
				6,940,762
Telecommunications — 1.9%
Amdocs Ltd.		79,500		3,278,580
TOTAL COMMON STOCKS (Cost $116,749,008)				152,571,735

112

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Schedule of Investments — December 31, 2013

Mid Cap Value Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — 4.9%
Building & Real Estate — 2.1%
Starwood Property Trust, Inc.		131,100	$	3,631,470
Diversified — 2.8%
Corrections Corporation of America		150,017		4,811,045
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $7,704,948)				8,442,515
SHORT-TERM INVESTMENTS — 7.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $12,095,531)		12,095,531		12,095,531
TOTAL INVESTMENTS — 100.0% (Cost $136,549,487)			$	173,109,781

† See Security Valuation Note.

* Non-income producing security.

LP — Limited Partnership.

PLC — Public Limited Company.

Country Weightings as of 12/31/2013††
United States	93	%
Ireland	2
Israel	2
Singapore	2
Bermuda	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	152,571,735	$	152,571,735	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		8,442,515		8,442,515		—		—
SHORT-TERM INVESTMENTS		12,095,531		12,095,531		—		—
TOTAL INVESTMENTS	$	173,109,781	$	173,109,781	$	—	$	—

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.

113

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Schedule of Investments — December 31, 2013

Mid Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — 89.9%
Aerospace & Defense — 2.3%
General Dynamics Corp.		9,890	$	944,989
Northrop Grumman Corp.		2,970		340,392
Rockwell Collins, Inc.		5,510		407,299
				1,692,680
Airlines — 0.7%
Southwest Airlines Co.		25,440		479,290
Apparel — 0.3%
Coach, Inc.		3,840		215,539
Auto Parts & Equipment — 0.4%
Autoliv, Inc.		3,330		305,694
Banks — 8.9%
Comerica, Inc.		8,930		424,532
Commerce Bancshares, Inc.		17,703		795,042
Cullen/Frost Bankers, Inc.		7,255		539,990
KeyCorp		16,710		224,248
Northern Trust Corp.		35,140		2,174,815
State Street Corp.		2,490		182,741
SunTrust Banks, Inc.		14,460		532,273
The PNC Financial Services Group, Inc.		13,980		1,084,568
Westamerica Bancorporation		9,570		540,322
				6,498,531
Beverages — 0.6%
Dr. Pepper Snapple Group, Inc.		8,341		406,374
Biotechnology — 0.5%
Bio-Rad Laboratories, Inc., Class A*		2,830		349,816
Commercial Services — 3.1%
The ADT Corp.*		36,426		1,474,160
Tyco International Ltd.		19,360		794,535
				2,268,695
Computers — 2.2%
SanDisk Corp.		9,680		682,827
Western Digital Corp.		10,779		904,358
				1,587,185
Diversified Financial Services — 1.7%
Franklin Resources, Inc.		9,138		527,537
LPL Financial Holdings, Inc.		10,400		489,112
The Charles Schwab Corp.		7,400		192,400
				1,209,049
Electric — 8.0%
Ameren Corp.		10,880		393,421
Consolidated Edison, Inc.		12,620		697,634
Empire District Electric Co.		13,580		308,130
Great Plains Energy, Inc.		36,690		889,365
IDACORP, Inc.		1,171		60,705
Northeast Utilities		7,690		325,979
NorthWestern Corp.		7,810		338,329
PG&E Corp.		13,270		534,516

	Number of Shares		Value†
Electric — (continued)
Portland General Electric Co.		12,581	$	379,946
Westar Energy, Inc.		34,129		1,097,930
Xcel Energy, Inc.		27,680		773,379
				5,799,334
Electronics — 3.0%
Agilent Technologies, Inc.		8,951		511,907
Brady Corp., Class A		10,400		321,672
Koninklijke Philips NV		16,894		619,261
TE Connectivity Ltd.		11,090		611,170
Woodward, Inc.		2,100		95,781
				2,159,791
Entertainment — 0.7%
International Game Technology		27,680		502,669
Environmental Control — 3.7%
Republic Services, Inc.		71,130		2,361,516
Waste Management, Inc.		7,700		345,499
				2,707,015
Food — 6.1%
Campbell Soup Co.		5,440		235,443
ConAgra Foods, Inc.		12,249		412,791
General Mills, Inc.		8,920		445,197
Hillshire Brands Co.		27,659		924,917
Kellogg Co.		5,900		360,313
Kraft Foods Group, Inc.		8,020		432,439
Mondelez International, Inc., Class A		15,491		546,832
Sysco Corp.		30,600		1,104,660
				4,462,592
Gas — 2.3%
AGL Resources, Inc.		7,414		350,163
Southwest Gas Corp.		7,455		416,809
The Laclede Group, Inc.		12,080		550,123
WGL Holdings, Inc.		8,900		356,534
				1,673,629
Hand & Machine Tools — 1.1%
Regal-Beloit Corp.		4,958		365,504
Stanley Black & Decker, Inc.		5,010		404,257
				769,761
Healthcare Products — 7.7%
Becton Dickinson & Co.		3,650		403,289
Boston Scientific Corp.*		36,420		437,768
CareFusion Corp.*		21,000		836,220
Hospira, Inc.*		15,288		631,089
Medtronic, Inc.		13,150		754,678
Patterson Cos., Inc.		10,950		451,140
STERIS Corp.		7,160		344,038
Stryker Corp.		11,070		831,800
Varian Medical Systems, Inc.*		2,680		208,209
Zimmer Holdings, Inc.		7,290		679,355
				5,577,586

114

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Schedule of Investments — December 31, 2013

Mid Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Healthcare Services — 2.8%
Cigna Corp.		3,420	$	299,182
Humana, Inc.		364		37,572
LifePoint Hospitals, Inc.*		17,000		898,280
Quest Diagnostics, Inc.		14,500		776,330
				2,011,364
Insurance — 7.7%
ACE Ltd.		6,920		716,428
Aflac, Inc.		3,600		240,480
Arthur J Gallagher & Co.		8,550		401,252
HCC Insurance Holdings, Inc.		13,681		631,241
Marsh & McLennan Cos., Inc.		8,660		418,798
MetLife, Inc.		4,840		260,973
Reinsurance Group of America, Inc.		10,180		788,034
Symetra Financial Corp.		16,250		308,100
The Allstate Corp.		8,720		475,589
The Chubb Corp.		6,650		642,589
The Travelers Cos., Inc.		3,180		287,917
Unum Group		11,880		416,750
				5,588,151
Iron & Steel — 0.8%
Nucor Corp.		10,720		572,234
Leisure Time — 0.9%
Carnival Corp.		16,460		661,198
Mining — 0.8%
Newmont Mining Corp.		23,840		549,035
Miscellaneous Manufacturing — 0.7%
Textron, Inc.		14,550		534,858
Oil & Gas — 7.7%
Apache Corp.		11,270		968,544
Devon Energy Corp.		12,070		746,771
Imperial Oil Ltd		45,190		2,001,165
Murphy Oil Corp.		8,920		578,730
Southwestern Energy Co.*		18,240		717,379
Williams Partners LP		10,979		558,392
				5,570,981
Oil & Gas Services — 0.6%
Cameron International Corp.*		7,269		432,724
Packaging and Containers — 1.2%
Bemis Co., Inc.		10,610		434,585
Sonoco Products Co.		10,490		437,643
				872,228
Pharmaceuticals — 0.5%
Mallinckrodt PLC		6,809		355,838
Retail — 3.6%
Bed Bath & Beyond, Inc.*		2,240		179,872
CEC Entertainment, Inc.		7,817		346,137
CST Brands, Inc.		6,871		252,303

	Number of Shares		Value†
Retail — (continued)
Lowe’s Cos., Inc.		20,680	$	1,024,694
Target Corp.		12,620		798,467
				2,601,473
Savings & Loans — 1.4%
Capitol Federal Financial, Inc.		13,770		166,755
People’s United Financial, Inc.		58,020		877,262
				1,044,017
Semiconductors — 5.5%
Analog Devices, Inc.		6,660		339,194
Applied Materials, Inc.		74,010		1,309,237
KLA-Tencor Corp.		6,880		443,485
Maxim Integrated Products, Inc.		19,706		549,994
Microchip Technology, Inc.		7,970		356,657
Teradyne, Inc.*		56,082		988,165
				3,986,732
Telecommunications — 1.8%
CenturyLink, Inc.		22,480		715,988
Harris Corp.		4,878		340,533
Rogers Communications, Inc., Class B		5,936		268,622
				1,325,143
Transportation — 0.7%
Heartland Express, Inc.		27,720		543,866
TOTAL COMMON STOCKS (Cost $58,780,706)				65,315,072
REAL ESTATE INVESTMENT TRUSTS — 4.1%
Building & Real Estate — 1.1%
Annaly Capital Management, Inc.		61,020		608,369
Capstead Mortgage Corp.		14,410		174,073
				782,442
Diversified — 1.0%
Corrections Corporation of America		22,218		712,532
Office Property — 1.6%
Empire State Realty Trust, Inc.		23,100		353,430
Piedmont Office Realty Trust, Inc., Class A		47,110		778,257
				1,131,687
Strip Centers — 0.4%
Federal Realty Investment Trust		2,580		261,638
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,333,786)				2,888,299
EXCHANGE TRADED FUNDS — 3.1%
Investment Companies — 3.1%
Ishares Russell MidCap Value Index Fund (Cost $2,128,464)		34,620		2,274,880

115

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Schedule of Investments — December 31, 2013

Mid Core Value Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 2.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,134,675)		2,134,675	$	2,134,675
TOTAL INVESTMENTS — 100.0% (Cost $66,377,631)			$	72,612,926

† See Security Valuation Note.

* Non-income producing security.

LP — Limited Partnership.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	65,315,072	$	65,315,072	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		2,888,299		2,888,299		—		—
EXCHANGE TRADED FUNDS		2,274,880		2,274,880		—		—
SHORT-TERM INVESTMENTS		2,134,675		2,134,675		—		—
TOTAL INVESTMENTS	$	72,612,926	$	72,612,926	$	—	$	—

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.

116

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Schedule of Investments — December 31, 2013

SMID Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 96.2%
Aerospace & Defense — 1.9%
B/E Aerospace, Inc.*		13,910	$	1,210,587
Airlines — 2.9%
Allegiant Travel Co.		7,147		753,579
Copa Holdings S.A., Class A		6,880		1,101,557
				1,855,136
Apparel — 2.3%
Skechers U.S.A., Inc., Class A*		16,688		552,873
Under Armour, Inc., Class A*		10,510		917,523
				1,470,396
Auto Parts & Equipment — 1.4%
BorgWarner, Inc.		16,020		895,678
Banks — 1.5%
Texas Capital Bancshares, Inc.*		15,240		947,928
Beverages — 2.0%
Constellation Brands, Inc., Class A*		18,340		1,290,769
Biotechnology — 3.8%
Alkermes PLC*		14,030		570,460
Alnylam Pharmaceuticals, Inc.*		8,480		545,518
Cubist Pharmaceuticals, Inc.*		5,612		386,499
Insmed, Inc.*		21,540		366,395
NPS Pharmaceuticals, Inc.*		9,891		300,291
Puma Biotechnology, Inc.*		3,080		318,872
				2,488,035
Building Materials — 1.6%
Fortune Brands Home & Security, Inc.		22,591		1,032,409
Chemicals — 1.3%
WR Grace & Co.*		8,804		870,451
Commercial Services — 12.9%
Alliance Data Systems Corp.*		4,960		1,304,133
CoStar Group, Inc.*		4,620		852,760
Quanta Services, Inc.*		24,510		773,536
Team Health Holdings, Inc.*		11,775		536,351
The Advisory Board Co.*		13,025		829,302
Towers Watson & Co., Class A		7,770		991,530
United Rentals, Inc.*		13,430		1,046,868
Vantiv, Inc., Class A*		44,127		1,438,981
Verisk Analytics, Inc., Class A*		9,150		601,338
				8,374,799
Computers — 1.3%
Stratasys Ltd.*		6,458		869,893
Distribution & Wholesale — 1.8%
LKQ Corp.*		35,307		1,161,600
Diversified Financial Services — 1.6%
Affiliated Managers Group, Inc.*		4,720		1,023,674
Electronics — 1.2%
FEI Co.		8,455		755,539

	Number of Shares		Value†
Food — 2.0%
Annie’s, Inc.*		15,556	$	669,530
United Natural Foods, Inc.*		8,230		620,460
				1,289,990
Healthcare Products — 4.4%
Bruker Corp.*		28,455		562,555
Cepheid, Inc.*		17,648		824,515
The Cooper Cos., Inc.		6,160		762,854
Wright Medical Group, Inc.*		21,967		674,607
				2,824,531
Healthcare Services — 1.2%
Envision Healthcare Holdings Inc*		21,090		749,117
Insurance — 0.6%
eHealth, Inc.*		9,020		419,340
Internet — 3.5%
Groupon Inc.*		57,200		673,244
HomeAway, Inc.*		19,395		792,867
Shutterstock, Inc.*		6,206		519,008
Splunk, Inc.*		4,443		305,101
				2,290,220
Machinery — Diversified — 5.2%
Chart Industries, Inc.*		8,090		773,728
Cognex Corp.		13,350		509,703
Graco, Inc.		11,915		930,800
Wabtec Corp.		15,960		1,185,349
				3,399,580
Media — 1.6%
AMC Networks, Inc. Class A*		15,550		1,059,111
Miscellaneous Manufacturing — 3.2%
Colfax Corp.*		10,711		682,184
Movado Group, Inc.		15,850		697,558
Proto Labs, Inc.*		10,003		712,014
				2,091,756
Oil & Gas — 3.4%
Bonanza Creek Energy, Inc.*		6,385		277,556
Delek US Holdings, Inc.		11,327		389,762
Diamondback Energy, Inc.*		5,460		288,616
Gulfport Energy Corp.*		10,620		670,653
Oasis Petroleum, Inc.*		12,935		607,557
				2,234,144
Pharmaceuticals — 3.1%
BioMarin Pharmaceutical, Inc.*		9,833		690,965
Isis Pharmaceuticals, Inc.*		3,995		159,161
Keryx Biopharmaceuticals, Inc.*		18,430		238,668
Salix Pharmaceuticals Ltd.*		9,410		846,335
Vanda Pharmaceuticals, Inc.*		7,429		92,194
				2,027,323
Real Estate — 0.5%
CBRE Group, Inc., Class A*		13,500		355,050

117

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SMID Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — 9.8%
Conn’s, Inc.*		7,355	$	579,501
DSW, Inc., Class A		18,436		787,770
GNC Holdings, Inc., Class A		13,134		767,682
Krispy Kreme Doughnuts, Inc.*		22,500		434,025
Lithia Motors, Inc., Class A		8,915		618,879
Lumber Liquidators Holdings, Inc.*		7,135		734,120
PVH Corp.		5,370		730,428
Restoration Hardware Holdings, Inc.*		10,321		694,603
Rite Aid Corp.*		94,300		477,158
The Finish Line, Inc., Class A		19,100		538,047
				6,362,213
Semiconductors — 1.8%
Cavium, Inc.*		15,915		549,227
Cree, Inc.*		9,380		586,906
				1,136,133
Software — 10.7%
ACI Worldwide, Inc.*		10,185		662,025
Aspen Technology, Inc.*		25,155		1,051,479
athenahealth, Inc.*		4,390		590,455
CommVault Systems, Inc.*		14,025		1,050,192
Cornerstone OnDemand, Inc.*		17,685		943,318
Fleetmatics Group PLC*		16,419		710,122
Guidewire Software, Inc.*		14,130		693,359
ServiceNow, Inc.*		14,735		825,307
Tableau Software, Inc., Class A*		5,680		391,522
				6,917,779
Telecommunications — 4.9%
DigitalGlobe, Inc.*		30,776		1,266,433
IPG Photonics Corp.*		7,220		560,344
SBA Communications Corp., Class A*		10,486		942,062
Ubiquiti Networks, Inc.*		8,520		391,579
				3,160,418
Transportation — 2.8%
Kansas City Southern		7,860		973,304
Old Dominion Freight Line, Inc.*		16,150		856,273
				1,829,577
TOTAL COMMON STOCKS (Cost $45,243,018)				62,393,176

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 3.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,469,449)		2,469,449	$	2,469,449
TOTAL INVESTMENTS — 100.0% (Cost $47,712,467)			$	64,862,625

† See Security Valuation Note.

* Non-income producing security.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	62,393,176	$	62,393,176	$	—	$	—
SHORT-TERM INVESTMENTS		2,469,449		2,469,449		—		—
TOTAL INVESTMENTS	$	64,862,625	$	64,862,625	$	—	$	—

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.

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SMID Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 90.3%
Apparel — 1.0%
The Jones Group, Inc.		41,980	$	628,021
Auto Parts & Equipment — 4.9%
Dana Holding Corp.		35,440		695,333
Lear Corp.		10,950		886,621
Tenneco, Inc.*		15,050		851,378
TRW Automotive Holdings Corp.*		10,330		768,449
				3,201,781
Banks — 9.1%
Associated Banc-Corp.		33,240		578,376
CapitalSource, Inc.		53,900		774,543
Comerica, Inc.		18,305		870,220
Huntington Bancshares, Inc.		99,080		956,122
Popular, Inc.*		24,819		713,050
Susquehanna Bancshares, Inc.		31,450		403,818
Webster Financial Corp.		20,560		641,061
Zions Bancorporation		31,140		932,954
				5,870,144
Chemicals — 2.7%
Chemtura Corp.*		30,350		847,372
Huntsman Corp.		36,610		900,606
				1,747,978
Commercial Services — 1.2%
Convergys Corp.		35,790		753,380
Computers — 0.8%
Insight Enterprises, Inc.*		23,630		536,637
Distribution & Wholesale — 1.4%
Arrow Electronics, Inc.*		16,590		900,007
Diversified Financial Services — 2.1%
Aircastle Ltd.		22,000		421,520
E*Trade Financial Corp.*		46,180		906,975
				1,328,495
Electric — 1.2%
PNM Resources, Inc.		30,540		736,625
Westar Energy, Inc.		1,400		45,038
				781,663
Electrical Components & Equipment — 0.9%
General Cable Corp.		19,340		568,789
Electronics — 4.7%
Avnet, Inc.		21,200		935,132
Flextronics International Ltd.*		36,540		283,916
Jabil Circuit, Inc.		28,540		497,738
TTM Technologies, Inc.*		53,780		461,432
Vishay Intertechnology, Inc.*		66,630		883,514
				3,061,732
Engineering & Construction — 2.3%
Granite Construction, Inc.		15,690		548,836
Tutor Perini Corp.*		35,030		921,289
				1,470,125

	Number of Shares		Value†
Entertainment — 1.3%
Regal Entertainment Group, Class A		43,630	$	848,603
Food — 0.8%
Dean Foods Co.*		29,745		511,317
Gas — 3.6%
Atmos Energy Corp.		17,105		776,909
Southwest Gas Corp.		14,500		810,695
UGI Corp.		18,220		755,401
				2,343,005
Hand & Machine Tools — 1.1%
Kennametal, Inc.		14,300		744,601
Healthcare Services — 4.5%
Health Net, Inc.*		25,030		742,640
LifePoint Hospitals, Inc.*		15,350		811,094
Molina Healthcare, Inc.*		14,290		496,578
Universal Health Services, Inc., Class B		10,770		875,170
				2,925,482
Home Builders — 4.7%
Meritage Homes Corp.*		15,290		733,767
NVR, Inc.*		610		625,866
PulteGroup, Inc.		46,880		954,946
Thor Industries, Inc.		13,570		749,471
				3,064,050
Household Products & Wares — 1.1%
Avery Dennison Corp.		13,890		697,139
Insurance — 9.1%
American Financial Group, Inc.		16,020		924,674
Aspen Insurance Holdings Ltd.		21,450		886,100
Essent Group Ltd.*		4,180		100,571
Genworth Financial, Inc., Class A*		59,880		929,936
PartnerRe Ltd.		5,810		612,548
Reinsurance Group of America, Inc.		7,905		611,926
Torchmark Corp.		4,100		320,415
Unum Group		21,145		741,767
Validus Holdings Ltd.*		18,830		758,661
				5,886,598
Internet — 0.9%
CDW Corp.		24,270		566,947
Iron & Steel — 3.5%
Commercial Metals Co.		40,550		824,381
Reliance Steel & Aluminum Co.		8,320		630,989
Steel Dynamics, Inc.		41,620		813,255
				2,268,625
Lodging — 0.4%
MGM Resorts International*		10,602		249,359
Machinery — Construction & Mining — 1.5%
Terex Corp.		22,840		959,052
Media — 1.6%
Gannett Co., Inc.		34,300		1,014,594

119

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SMID Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Office Furnishings — 0.8%
Steelcase, Inc., Class A		32,160	$	510,058
Oil & Gas — 4.6%
Bill Barrett Corp.*		26,210		701,904
Cimarex Energy Co.		6,890		722,830
Stone Energy Corp.*		18,260		631,613
Western Refining, Inc.		21,760		922,842
				2,979,189
Oil & Gas Services — 0.7%
Helix Energy Solutions Group, Inc.*		19,280		446,910
Packaging and Containers — 1.3%
Graphic Packaging Holding Co.*		90,700		870,720
Retail — 5.1%
DineEquity, Inc.		6,230		520,517
GameStop Corp., Class A		8,550		421,173
Office Depot, Inc.*		152,980		809,264
The Children’s Place Retail Stores, Inc.*		13,550		771,944
The Men’s Wearhouse, Inc.		14,830		757,516
				3,280,414
Savings & Loans — 1.1%
First Niagara Financial Group, Inc.		68,360		725,983
Semiconductors — 3.8%
Entegris, Inc.*		60,040		696,464
Lam Research Corp.*		14,380		782,991
Micron Technology, Inc.*		25,870		562,931
MKS Instruments, Inc.		13,710		410,478
				2,452,864
Software — 0.8%
Electronic Arts, Inc.*		22,260		510,644
Telecommunications — 3.5%
Amdocs Ltd.		20,185		832,430
Anixter International, Inc.		5,930		532,751
Genpact Ltd.*		6,800		124,916
Harris Corp.		10,810		754,646
				2,244,743
Transportation — 2.2%
Con-way, Inc.		18,130		719,942
Ryder System, Inc.		9,610		709,026
				1,428,968
TOTAL COMMON STOCKS (Cost $41,778,742)				58,378,617
REAL ESTATE INVESTMENT TRUSTS — 7.7%
Apartments — 1.3%
Camden Property Trust		4,080		232,070
Mid-America Apartment Communities, Inc.		9,920		602,541
				834,611
Diversified — 0.6%
STAG lndustrial, Inc.		17,660		360,087

	Number of Shares		Value†
Healthcare — 1.8%
LTC Properties, Inc.		17,200	$	608,708
Medical Properties Trust, Inc.		47,110		575,684
				1,184,392
Hotels & Resorts — 1.4%
DiamondRock Hospitality Co.		61,670		712,288
RLJ Lodging Trust		8,180		198,938
				911,226
Office Property — 1.8%
BioMed Realty Trust, Inc.		23,970		434,336
Parkway Properties, Inc.		38,960		751,539
				1,185,875
Strip Centers — 0.8%
DDR Corp.		32,580		500,755
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $4,933,245)				4,976,946
SHORT-TERM INVESTMENTS — 2.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,315,958)		1,315,958		1,315,958
TOTAL INVESTMENTS — 100.0% (Cost $48,027,945)			$	64,671,521

† See Security Valuation Note.

* Non-income producing security.

Country Weightings as of 12/31/2013††
United States	95	%
Bermuda	4
Puerto Rico	1
Total	100	%

†† % of total investments as of December 31, 2013

120

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Schedule of Investments — December 31, 2013

SMID Cap Value Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	58,378,617	$	58,378,617	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		4,976,946		4,976,946		—		—
SHORT-TERM INVESTMENTS		1,315,958		1,315,958		—		—
TOTAL INVESTMENTS	$	64,671,521	$	64,671,521	$	—	$	—

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.

121

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Schedule of Investments — December 31, 2013

Small Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 97.4%
Aerospace & Defense — 2.9%
HEICO Corp., Class A		48,818	$	2,056,214
TransDigm Group, Inc.		3,520		566,790
				2,623,004
Apparel — 6.4%
Carter’s, Inc.		26,885		1,930,074
Gildan Activewear, Inc.		12,754		679,916
Quiksilver, Inc.*		54,420		477,263
Vince Holding Corp.*		21,870		670,753
Wolverine World Wide, Inc.		58,550		1,988,358
				5,746,364
Banks — 2.1%
Bank of the Ozarks, Inc.		10,405		588,819
City National Corp.		6,070		480,865
SVB Financial Group*		8,060		845,172
				1,914,856
Biotechnology — 2.3%
Alkermes PLC*		16,655		677,192
Incyte Corp. Ltd.*		15,995		809,827
NPS Pharmaceuticals, Inc.*		20,113		610,631
				2,097,650
Chemicals — 1.2%
Sensient Technologies Corp.		22,310		1,082,481
Commercial Services — 9.7%
Ascent Capital Group Inc., Class A*		5,025		429,939
CoStar Group, Inc.*		4,835		892,444
Euronet Worldwide, Inc.*		49,845		2,385,083
Gartner, Inc.*		7,225		513,300
HMS Holdings Corp.*		7,980		181,385
Monro Muffler Brake, Inc.		11,557		651,353
Ritchie Bros. Auctioneers, Inc.		29,170		668,868
Rollins, Inc.		12,285		372,113
SP Plus Corp.*		21,060		548,403
Team Health Holdings, Inc.*		6,040		275,122
The Corporate Executive Board Co.		10,675		826,565
VistaPrint N.V.		17,405		989,474
				8,734,049
Computers — 4.6%
Cadence Design Systems, Inc.*		85,790		1,202,776
Jack Henry & Associates, Inc.		28,405		1,681,860
RealD, Inc.*		44,670		381,482
Stratasys Ltd.*		6,855		923,368
				4,189,486
Distribution & Wholesale — 2.0%
WESCO International, Inc.*		19,710		1,794,990
Diversified Financial Services — 3.0%
Artisan Partners Asset Management, Inc.		5,475		356,915
Financial Engines, Inc.		12,410		862,247
LPL Financial Holdings, Inc.		13,535		636,551
MarketAxess Holdings, Inc.		13,010		869,979
				2,725,692

	Number of Shares		Value†
Electrical Components & Equipment — 1.7%
Belden, Inc.		1,245	$	87,710
GrafTech International Ltd.*		125,100		1,404,873
				1,492,583
Electronics — 2.1%
Measurement Specialties, Inc.*		13,860		841,163
National Instruments Corp.		14,375		460,288
Trimble Navigation Ltd.*		16,660		578,102
				1,879,553
Entertainment — 1.9%
AMC Entertainment Holdings, Inc.*		13,270		272,698
National CineMedia, Inc.		59,425		1,186,123
SFX Entertainment, Inc.*		20,600		247,200
				1,706,021
Environmental Control — 1.7%
Clean Harbors, Inc.*		25,910		1,553,564
Hand & Machine Tools — 2.5%
Kennametal, Inc.		43,480		2,264,004
Healthcare Products — 6.9%
Endologix, Inc.*		70,325		1,226,468
IDEXX Laboratories, Inc.*		3,495		371,763
LDR Holding Corp.*		26,235		619,146
Masimo Corp.*		39,780		1,162,769
Quidel Corp.*		31,545		974,425
Techne Corp.		13,980		1,323,487
Volcano Corp.*		24,335		531,720
				6,209,778
Home Furnishings — 0.4%
DTS, Inc.*		14,280		342,434
Household Products & Wares — 0.8%
Prestige Brands Holdings, Inc.*		20,645		739,091
Internet — 1.3%
ChannelAdvisor Corp.*		13,500		563,085
RingCentral, Inc., Class A*		14,180		260,487
Zillow, Inc. Class A*		4,685		382,905
				1,206,477
Leisure Time — 0.7%
Arctic Cat, Inc.		11,085		631,623
Machinery — Diversified — 2.5%
Nordson Corp.		5,470		406,421
Tennant Co.		15,650		1,061,226
Wabtec Corp.		11,155		828,482
				2,296,129
Miscellaneous Manufacturing — 1.6%
Polypore International, Inc.*		28,330		1,102,037
Sodastream International Ltd.*		7,650		379,746
				1,481,783

122

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Schedule of Investments — December 31, 2013

Small Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas — 1.7%
Athlon Energy, Inc.*		30,645	$	927,011
Phillips 66 Partners LP		15,945		604,794
				1,531,805
Oil & Gas Services — 4.1%
Core Laboratories N.V.		2,325		443,959
Dresser-Rand Group, Inc.*		15,990		953,484
Dril-Quip, Inc.*		12,620		1,387,316
Targa Resources Corp.		10,525		927,989
				3,712,748
Pharmaceuticals — 2.5%
Ironwood Pharmaceuticals, Inc.*		37,200		431,892
Medivation, Inc.*		9,590		612,034
Pharmacyclics, Inc.*		2,425		256,516
Swedish Orphan Biovitrum AB*		46,486		482,434
Synageva BioPharma Corp.*		7,654		495,367
				2,278,243
Real Estate — 0.9%
Jones Lang LaSalle, Inc.		3,840		393,178
The St. Joe Co.*		23,895		458,545
				851,723
Retail — 6.0%
Biglari Holdings, Inc.*		1,850		937,284
Casey’s General Stores, Inc.		16,150		1,134,538
Container Store Group, Inc. (The)*		6,680		311,355
Dunkin’ Brands Group, Inc.		4,895		235,939
Hibbett Sports, Inc.*		30,065		2,020,669
Sally Beauty Holdings, Inc.*		14,200		429,266
Ulta Salon Cosmetics & Fragrance, Inc.*		3,295		318,033
World Fuel Services Corp.		627		27,061
				5,414,145
Semiconductors — 2.9%
Atmel Corp.*		161,250		1,262,587
ON Semiconductor Corp.*		84,590		697,022
Sensata Technologies Holding N.V.		16,700		647,459
				2,607,068
Software — 16.8%
Advent Software, Inc.		20,465		716,070
athenahealth, Inc.*		10,975		1,476,137
Blackbaud, Inc.		62,175		2,340,889
Broadridge Financial Solutions, Inc.		41,760		1,650,355
Guidewire Software, Inc.*		11,565		567,495
Informatica Corp.*		37,580		1,559,570
RealPage, Inc.*		77,355		1,808,560
Solera Holdings, Inc.		26,525		1,876,909
SS&C Technologies Holdings, Inc.*		69,335		3,068,767
Veeva Systems, Inc.*		3,355		107,696
				15,172,448

	Number of Shares		Value†
Telecommunications — 0.6%
NICE Systems, Ltd. ADR		12,325	$	504,524
Transportation — 3.6%
Expeditors International of Washington, Inc.		9,280		410,640
Landstar System, Inc.		20,470		1,176,001
Old Dominion Freight Line, Inc.*		20,135		1,067,558
Saia, Inc.*		18,975		608,149
				3,262,348
TOTAL COMMON STOCKS (Cost $69,404,036)				88,046,664
SHORT-TERM INVESTMENTS — 2.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,321,011)		2,321,011		2,321,011
TOTAL INVESTMENTS — 100.0% (Cost $71,725,047)			$	90,367,675

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

LP — Limited Partnership.

PLC — Public Limited Company.

Country Weightings as of 12/31/2013††
United States	94	%
Netherlands	2
Canada	1
Ireland	1
Israel	1
Sweden	1
Total	100	%

†† % of total investments as of December 31, 2013

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	88,046,664	$	88,046,664	$	—	$	—
SHORT-TERM INVESTMENTS		2,321,011		2,321,011		—		—
TOTAL INVESTMENTS	$	90,367,675	$	90,367,675	$	—	$	—

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.

123

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Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 87.3%
Aerospace & Defense — 3.3%
Cubic Corp.		19,702	$	1,037,507
Esterline Technologies Corp.*		22,975		2,342,531
Kaman Corp.		36,850		1,464,051
Moog, Inc., Class A*		26,442		1,796,469
Teledyne Technologies, Inc.*		13,809		1,268,495
				7,909,053
Apparel — 0.7%
Carter’s, Inc.		14,502		1,041,099
Steven Madden Ltd.*		16,538		605,125
				1,646,224
Auto Parts & Equipment — 1.0%
American Axle & Manufacturing Holdings, Inc.*		61,349		1,254,587
Tenneco, Inc.*		19,311		1,092,423
				2,347,010
Banks — 15.2%
BancorpSouth, Inc.		74,901		1,903,983
Bank of the Ozarks, Inc.		40,854		2,311,928
Banner Corp.		24,286		1,088,498
Boston Private Financial Holdings, Inc.		83,609		1,055,146
Bridge Capital Holdings*		16,154		331,803
CoBiz Financial, Inc.		33,535		401,079
Community Bank System, Inc.		29,685		1,177,901
First Financial Bankshares, Inc.		19,971		1,324,477
First Financial Holdings, Inc.		18,347		1,220,259
First Midwest Bancorp, Inc.		47,952		840,599
Glacier Bancorp, Inc.		57,010		1,698,328
Heritage Financial Corp.		15,920		272,391
Home BancShares, Inc.		37,192		1,389,121
Independent Bank Corp.		19,118		749,234
Independent Bank Group, Inc.		10,430		517,954
Lakeland Financial Corp.		12,402		483,678
MB Financial, Inc.		49,217		1,579,374
PacWest Bancorp		36,225		1,529,419
Pinnacle Financial Partners, Inc.		33,706		1,096,456
PrivateBancorp, Inc.		67,885		1,963,913
Prosperity Bancshares, Inc.		25,119		1,592,293
Sandy Spring Bancorp, Inc.		16,409		462,570
Sierra Bancorp		7,523		121,045
Signature Bank*		21,551		2,315,008
Southcoast Financial Corp.*		14,113		83,972
Southwest Bancorp, Inc.*		25,605		407,632
Sterling Financial Corp.		15,662		533,761
Summit State Bank		8,016		84,569
Texas Capital Bancshares, Inc.*		36,884		2,294,185
The First of Long Island Corp.		8,267		354,406
Trico Bancshares		16,575		470,233
UMB Financial Corp.		31,384		2,017,363
ViewPoint Financial Group, Inc.		51,244		1,406,648
Webster Financial Corp.		46,126		1,438,209
				36,517,435

	Number of Shares		Value†
Biotechnology — 0.9%
Acorda Therapeutics, Inc.*		34,144	$	997,005
Exact Sciences Corp.*		92,854		1,085,463
				2,082,468
Building Materials — 0.7%
Comfort Systems USA, Inc.		37,379		724,779
Trex Co., Inc.*		11,055		879,204
				1,603,983
Chemicals — 3.7%
Axiall Corp.		9,326		442,425
H.B. Fuller Co.		8,461		440,310
Methanex Corp.		24,241		1,436,037
PolyOne Corp.		75,422		2,666,168
Quaker Chemical Corp.		8,815		679,372
Taminco Corp.*		44,996		909,369
Westlake Chemical Corp.		7,150		872,801
WR Grace & Co.*		14,748		1,458,135
				8,904,617
Coal — 0.2%
SunCoke Energy, Inc.*		20,663		471,323
Commercial Services — 1.1%
Convergys Corp.		62,465		1,314,888
Monro Muffler Brake, Inc.		11,231		632,979
TrueBlue, Inc.*		24,993		644,320
				2,592,187
Computers — 0.6%
Electronics for Imaging, Inc.*		23,468		908,915
NetScout Systems, Inc.*		21,964		649,915
				1,558,830
Distribution & Wholesale — 0.2%
Watsco, Inc.		6,023		578,569
Diversified Financial Services — 2.7%
Cohen & Steers, Inc.		9,075		363,544
E*TRADE Financial Corp.*		59,153		1,161,765
Home Loan Servicing Solutions Ltd.		36,239		832,410
Manning & Napier, Inc.		10,901		192,403
MarketAxess Holdings, Inc.		11,442		765,127
Piper Jaffray Cos.*		6,168		243,944
Stifel Financial Corp.*		30,281		1,451,065
Virtus Investment Partners, Inc.*		4,574		915,029
Walter Investment Management Corp.*		15,127		534,891
				6,460,178
Electric — 4.3%
ALLETE, Inc.		24,072		1,200,711
Black Hills Corp.		8,951		470,017
Cleco Corp.		54,089		2,521,629
El Paso Electric Co.		43,560		1,529,392
IDACORP, Inc.		44,673		2,315,848
NorthWestern Corp.		23,221		1,005,934
Portland General Electric Co.		42,323		1,278,155
				10,321,686

124

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Schedule of Investments — December 31, 2013

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electrical Components & Equipment — 1.1%
Belden, Inc.		14,976	$	1,055,059
Littelfuse, Inc.		10,476		973,535
Powell Industries, Inc.		8,449		565,998
				2,594,592
Electronics — 1.5%
CTS Corp.		44,384		883,685
Newport Corp.*		67,517		1,220,032
PerkinElmer, Inc.		35,029		1,444,246
				3,547,963
Engineering & Construction — 0.9%
EMCOR Group, Inc.		35,439		1,504,031
MYR Group, Inc.*		29,380		736,851
				2,240,882
Entertainment — 1.1%
Marriott Vacations Worldwide Corp.*		21,215		1,119,303
Pinnacle Entertainment, Inc.*		17,843		463,740
Vail Resorts, Inc.		14,519		1,092,264
				2,675,307
Environmental Control — 0.5%
Ceco Environmental Corp.		27,104		438,272
Progressive Waste Solutions Ltd.		30,912		765,072
				1,203,344
Food — 0.7%
The Hain Celestial Group, Inc.*		18,159		1,648,474
Forest Products & Paper — 0.8%
KapStone Paper and Packaging Corp.*		36,087		2,015,820
Gas — 1.2%
Southwest Gas Corp.		50,096		2,800,867
Healthcare Products — 1.0%
Alere, Inc.*		15,439		558,892
Hill-Rom Holdings, Inc.		18,555		767,064
Teleflex, Inc.		10,376		973,891
				2,299,847
Healthcare Services — 1.3%
HealthSouth Corp.		29,594		986,072
Surgical Care Affiliates, Inc.*		14,162		493,404
WellCare Health Plans, Inc.*		22,607		1,591,985
				3,071,461
Home Builders — 1.4%
Meritage Homes Corp.*		28,957		1,389,646
Standard Pacific Corp.*		139,290		1,260,575
William Lyon Homes, Class A*		28,093		621,979
				3,272,200
Household Products & Wares — 1.3%
Prestige Brands Holdings, Inc.*		33,654		1,204,813
Spectrum Brands Holdings, Inc.		27,421		1,934,552
				3,139,365

	Number of Shares		Value†
Insurance — 5.0%
American Equity Investment Life Holding Co.		103,577	$	2,732,361
CNO Financial Group, Inc.		121,972		2,157,685
Endurance Specialty Holdings Ltd.		16,456		965,473
Enstar Group Ltd.		5,349		743,030
Fidelity & Guaranty Life*		20,424		386,830
Maiden Holdings Ltd.		83,229		909,693
Meadowbrook Insurance Group, Inc.		84,896		590,876
ProAssurance Corp.		29,810		1,445,189
Radian Group, Inc.		90,423		1,276,773
RLI Corp.		7,444		724,897
				11,932,807
Investment Companies — 0.9%
Golub Capital BDC, Inc.		19,659		375,684
New Mountain Finance Corp.		27,916		419,857
PennantPark Investment Corp.		29,799		345,668
Solar Capital Ltd.		19,633		442,724
Solar Senior Capital Ltd.		11,291		205,722
THL Credit, Inc.		18,190		299,953
				2,089,608
Iron & Steel — 0.5%
Carpenter Technology Corp.		10,551		656,272
Commercial Metals Co.		30,281		615,613
				1,271,885
Leisure Time — 1.1%
Arctic Cat, Inc.		18,965		1,080,626
Brunswick Corp.		16,834		775,374
Diamond Resorts International, Inc.*		38,858		717,318
				2,573,318
Machinery — Diversified — 1.4%
Applied Industrial Technologies, Inc.		28,722		1,409,963
Edwards Group Ltd. ADR*		79,313		807,406
Graco, Inc.		8,751		683,628
Twin Disc, Inc.		18,966		491,030
				3,392,027
Metal Fabricate/Hardware — 1.0%
CIRCOR International, Inc.		16,048		1,296,357
Olympic Steel, Inc.		9,925		287,627
RBC Bearings, Inc.*		13,411		948,828
				2,532,812
Mining — 1.0%
Globe Specialty Metals, Inc.		48,062		865,597
Kaiser Aluminum Corp.		22,897		1,608,285
				2,473,882
Miscellaneous Manufacturing — 3.3%
Actuant Corp., Class A		39,217		1,436,911
Barnes Group, Inc.		47,882		1,834,360
Carlisle Cos., Inc.		23,826		1,891,784
Crane Co.		17,695		1,189,989

125

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Schedule of Investments — December 31, 2013

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — (continued)
Koppers Holdings, Inc.		5,352	$	244,854
Movado Group, Inc.		33,000		1,452,330
				8,050,228
Oil & Gas — 4.0%
Approach Resources, Inc.*		31,941		616,142
Delek US Holdings, Inc.		11,417		392,859
Diamondback Energy, Inc.*		25,913		1,369,761
Laredo Petroleum Holdings, Inc.*		62,705		1,736,301
Rex Energy Corp.*		144,270		2,843,562
Western Refining, Inc.		63,220		2,681,160
				9,639,785
Oil & Gas Services — 2.6%
Dril-Quip, Inc.*		8,564		941,440
Forum Energy Technologies, Inc.*		60,884		1,720,582
Newpark Resources, Inc.*		131,338		1,614,144
TETRA Technologies, Inc.*		75,892		938,025
Thermon Group Holdings, Inc.*		33,908		926,706
				6,140,897
Packaging and Containers — 0.6%
Graphic Packaging Holding Co.*		139,916		1,343,194
Pharmaceuticals — 0.7%
Infinity Pharmaceuticals, Inc.*		85,909		1,186,403
Mallinckrodt PLC		9,086		474,835
				1,661,238
Real Estate — 0.6%
Kennedy-Wilson Holdings, Inc.		62,144		1,382,704
Retail — 4.5%
Asbury Automotive Group, Inc.*		20,750		1,115,105
Bloomin’ Brands, Inc.*		37,622		903,304
Chico’s FAS, Inc.		22,141		417,137
First Cash Financial Services, Inc.*		11,251		695,762
GNC Holdings, Inc., Class A		22,297		1,303,260
HSN, Inc.		19,000		1,183,700
Jos. A. Bank Clothiers, Inc.*		21,492		1,176,257
Office Depot, Inc.*		135,538		716,996
Shoe Carnival, Inc.		24,441		709,033
Susser Holdings Corp.*		19,502		1,277,186
The Men’s Wearhouse, Inc.		15,677		800,781
Vitamin Shoppe, Inc.*		10,137		527,225
				10,825,746
Savings & Loans — 1.4%
Brookline Bancorp, Inc.		36,161		346,061
Dime Community Bancshares, Inc.		24,931		421,832
Flushing Financial Corp.		35,284		730,379
Oritani Financial Corp.		31,649		507,966
Provident Financial Services, Inc.		45,462		878,326
WSFS Financial Corp.		6,758		523,948
				3,408,512

	Number of Shares		Value†
Semiconductors — 3.1%
Cabot Microelectronics Corp.*		28,063	$	1,282,479
Fairchild Semiconductor International, Inc.*		72,843		972,454
Intersil Corp., Class A		116,982		1,341,784
Micrel, Inc.		41,699		411,569
MKS Instruments, Inc.		41,648		1,246,941
PMC-Sierra, Inc.*		114,661		737,270
Semtech Corp.*		36,732		928,585
TriQuint Semiconductor, Inc.*		66,934		558,230
				7,479,312
Software — 3.5%
Allscripts Healthcare Solutions, Inc.*		103,233		1,595,982
Digi International, Inc.*		33,588		407,087
Monotype Imaging Holdings, Inc.		27,640		880,610
PTC, Inc.*		49,404		1,748,408
RADWARE Ltd.*		50,887		914,948
SS&C Technologies Holdings, Inc.*		33,695		1,491,341
Verint Systems, Inc.*		30,849		1,324,656
				8,363,032
Storage & Warehousing — 0.5%
Mobile Mini, Inc.		31,430		1,294,287
Telecommunications — 2.6%
ADTRAN, Inc.		32,501		877,852
Anixter International, Inc.*		21,104		1,895,984
CommScope Holding Co., Inc.*		60,123		1,137,527
Premiere Global Services, Inc.*		124,766		1,446,038
West Corp.		31,958		821,640
				6,179,041
Textiles — 0.5%
G&K Services, Inc., Class A		20,849		1,297,433
Transportation — 1.1%
Celadon Group, Inc.		18,986		369,847
Forward Air Corp.		28,126		1,235,013
Gulfmark Offshore, Inc., Class A		23,853		1,124,192
				2,729,052
TOTAL COMMON STOCKS (Cost $149,803,111)				209,564,485
REAL ESTATE INVESTMENT TRUSTS — 10.3%
Apartments — 1.3%
American Campus Communities, Inc.		63,293		2,038,668
Mid-America Apartment Communities, Inc.		17,137		1,040,901
				3,079,569
Building & Real Estate — 2.2%
Apollo Commercial Real Estate Finance, Inc.		85,735		1,393,194
Blackstone Mortgage Trust, Inc., Class A		59,352		1,610,220
MFA Financial, Inc.		180,862		1,276,886
Two Harbors Investment Corp.		113,288		1,051,312
				5,331,612
Diversified — 1.3%
CoreSite Realty Corp.		16,505		531,296

126

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Schedule of Investments — December 31, 2013

Small Cap Value Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Diversified — (continued)
DuPont Fabros Technology, Inc.		49,084	$	1,212,866
PS Business Parks, Inc.		18,812		1,437,613
				3,181,775
Healthcare — 0.8%
Healthcare Trust of America, Inc.*		69,967		688,475
National Health Investors, Inc.		20,105		1,127,891
				1,816,366
Hotels & Resorts — 2.1%
Chesapeake Lodging Trust		43,784		1,107,297
LaSalle Hotel Properties		48,539		1,497,914
Pebblebrook Hotel Trust		40,037		1,231,538
Strategic Hotels & Resorts, Inc.*		113,540		1,072,953
				4,909,702
Office Property — 1.3%
Highwoods Properties, Inc.		48,369		1,749,506
Hudson Pacific Properties, Inc.		65,563		1,433,863
				3,183,369
Regional Malls — 0.3%
CBL & Associates Properties, Inc.		45,721		821,149
Storage & Warehousing — 0.6%
CubeSmart		88,790		1,415,313
Strip Centers — 0.4%
Acadia Realty Trust		37,829		939,294
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $22,315,753)				24,678,149
SHORT-TERM INVESTMENTS — 2.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $5,780,901)		5,780,901		5,780,901
TOTAL INVESTMENTS — 100.0% (Cost $177,899,765)			$	240,023,535

† 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 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	209,564,485	$	209,564,485	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		24,678,149		24,678,149		—		—
SHORT-TERM INVESTMENTS		5,780,901		5,780,901		—		—
TOTAL INVESTMENTS	$	240,023,535	$	240,023,535	$	—	$	—

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.

127

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — 91.3%
Advertising — 0.1%
Harte-Hanks, Inc.		1,678	$	13,122
Marchex, Inc., Class B*		745		6,444
Marin Software, Inc.*		700		7,168
MDC Partners, Inc.,Class A		1,500		38,265
Millennial Media, Inc.*		1,400		10,178
Valuevision Media, Inc.*		1,700		11,883
				87,060
Aerospace & Defense — 1.5%
AAR Corp.		1,569		43,948
AeroVironment, Inc.*		718		20,915
Astronics Corp.*		637		32,487
Cubic Corp.		869		45,762
Curtiss-Wright Corp.		1,826		113,632
Ducommun, Inc.*		400		11,924
Esterline Technologies Corp.*		1,240		126,430
GenCorp, Inc.*		2,440		43,969
HEICO Corp.		2,515		145,744
Kaman Corp.		1,048		41,637
Kratos Defense & Security Solutions, Inc.*		2,422		18,601
LMI Aerospace, Inc.*		653		9,625
M/A-COM Technology Solutions Holdings, Inc.*		500		8,495
Moog, Inc., Class A*		1,791		121,681
National Presto Industries, Inc.*		146		11,753
Orbital Sciences Corp.*		2,196		51,167
Teledyne Technologies, Inc.*		1,504		138,157
				985,927
Agriculture — 0.3%
Alico, Inc.		51		1,982
Alliance One International, Inc.*		2,256		6,881
Griffin Land & Nurseries, Inc.		40		1,335
Limoneira Co.		600		15,954
Tejon Ranch Co.*		688		25,291
The Andersons, Inc.		755		67,323
Universal Corp.		855		46,683
Vector Group Ltd.		2,769		45,329
				210,778
Airlines — 0.5%
Allegiant Travel Co.		601		63,370
Hawaiian Holdings, Inc.*		2,526		24,325
JetBlue Airways Corp.*		9,528		81,464
Republic Airways Holdings, Inc.*		1,901		20,322
SkyWest, Inc.		1,881		27,895
Spirit Airlines, Inc.*		2,300		104,443
				321,819
Apparel — 1.0%
Columbia Sportswear Co.		511		40,241
Crocs, Inc.*		3,200		50,944
G-III Apparel Group Ltd.*		704		51,948
Iconix Brand Group, Inc.*		2,142		85,038
Oxford Industries, Inc.		508		40,980
Perry Ellis International, Inc.*		414		6,537

	Number of Shares		Value†
Apparel — (continued)
Quiksilver, Inc.*		5,560	$	48,761
RG Barry Corp.		200		3,860
Skechers U.S.A., Inc., Class A*		1,616		53,538
Steven Madden Ltd.*		2,449		89,609
The Jones Group, Inc.		3,165		47,349
Unifi, Inc.*		760		20,702
Vince Holding Corp.*		400		12,268
Weyco Group, Inc.		100		2,943
Wolverine World Wide, Inc.		3,782		128,437
				683,155
Auto Manufacturers — 0.1%
Wabash National Corp.*		3,100		38,285
Auto Parts & Equipment — 1.0%
Accuride Corp.*		1,000		3,730
American Axle & Manufacturing Holdings, Inc.*		2,416		49,407
Commercial Vehicle Group, Inc.*		600		4,362
Cooper Tire & Rubber Co.		2,549		61,278
Dana Holding Corp.		5,896		115,680
Dorman Products, Inc.*		892		50,014
Douglas Dynamics, Inc.		1,200		20,184
Federal-Mogul Corp.*		916		18,027
Fuel Systems Solutions, Inc.*		634		8,794
Gentherm, Inc.*		1,168		31,314
Meritor, Inc.*		3,645		38,017
Miller Industries, Inc.		443		8,253
Modine Manufacturing Co.*		2,077		26,627
Remy International, Inc.		600		13,992
Spartan Motors, Inc.		917		6,144
Standard Motor Products, Inc.		700		25,760
Superior Industries International, Inc.		1,119		23,085
Tenneco, Inc.*		2,300		130,111
Titan International, Inc.		1,913		34,396
Tower International, Inc.*		200		4,280
				673,455
Banks — 7.2%
1st Source Corp.		626		19,994
1st United Bancorp, Inc.		1,500		11,415
Access National Corp.		600		8,970
American National Bankshares, Inc.		400		10,500
Ameris Bancorp*		947		19,991
Ames National Corp.		199		4,456
Arrow Financial Corp.		364		9,668
Bancfirst Corp.		360		20,182
Banco Latinoamericano de Exportaciones S.A., Class E		1,110		31,102
Bancorp, Inc.*		1,412		25,289
BancorpSouth, Inc.		3,649		92,758
Bank of Kentucky Financial Corp.		200		7,380
Bank of Marin Bancorp		290		12,583
Bank of the Ozarks, Inc.		1,276		72,209
Banner Corp.		800		35,856
Bar Harbor Bankshares		200		7,998

128

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
BBCN Bancorp, Inc.		3,185	$	52,839
BNC Bancorp		800		13,712
Boston Private Financial Holdings, Inc.		2,858		36,068
Bridge Bancorp, Inc.		307		7,982
Bridge Capital Holdings*		300		6,162
Bryn Mawr Bank Corp.		532		16,056
C&F Financial Corp.		100		4,567
Camden National Corp.		326		13,764
Capital Bank Financial Corp., Class A*		1,000		22,750
Capital City Bank Group, Inc.*		269		3,166
Cardinal Financial Corp.		918		16,524
Cass Information Systems, Inc.		454		30,577
Cathay General Bancorp		3,050		81,526
Center Bancorp, Inc.		400		7,504
Centerstate Banks, Inc.		1,432		14,535
Central Pacific Financial Corp.		800		16,064
Century Bancorp, Inc., Class A		69		2,294
Chemical Financial Corp.		1,066		33,760
Chemung Financial Corp.		300		10,251
Citizens & Northern Corp.		356		7,344
City Holding Co.		648		30,022
CNB Financial Corp.		474		9,006
CoBiz Financial, Inc.		1,700		20,332
Columbia Banking System, Inc.		1,914		52,654
Community Bank System, Inc.		1,511		59,956
Community Trust Bancorp, Inc.		621		28,044
CU Bancorp*		400		6,992
Customers Bancorp, Inc.*		800		16,368
CVB Financial Corp.		3,592		61,315
Eagle Bancorp, Inc.*		973		29,803
Enterprise Bancorp, Inc.		300		6,351
Enterprise Financial Services Corp.		782		15,968
F.N.B. Corp.		6,208		78,345
Farmers Capital Bank Corp.*		300		6,525
Fidelity Southern Corp.		605		10,049
Financial Institutions, Inc.		340		8,401
First Bancorp		824		13,695
First Bancorp Puerto Rico*		3,100		19,189
First Bancorp, Inc.		234		4,076
First Busey Corp.		3,602		20,892
First Commonwealth Financial Corp.		4,021		35,465
First Community Bancshares, Inc.		626		10,454
First Connecticut Bancorp, Inc.		659		10,623
First Financial Bancorp		2,205		38,433
First Financial Bankshares, Inc.		1,226		81,308
First Financial Corp.		580		21,205
First Financial Holdings, Inc.		858		57,066
First Interstate Bancsystem, Inc.		600		17,022
First Merchants Corp.		1,238		28,177
First Midwest Bancorp, Inc.		2,814		49,329
First Security Group, Inc.*		3,400		7,820
FirstMerit Corp.		6,294		139,916
Franklin Financial Corp.*		400		7,912
German American Bancorp, Inc.		692		19,722
Glacier Bancorp, Inc.		2,721		81,059

	Number of Shares		Value†
Banks — (continued)
Great Southern Bancorp, Inc.		471	$	14,323
Guaranty Bancorp		900		12,645
Hancock Holding Co.		3,272		120,017
Hanmi Financial Corp		1,213		26,553
Heartland Financial USA, Inc.		717		20,642
Heritage Commerce Corp.		600		4,944
Heritage Financial Corp.		508		8,692
Heritage Oaks Bancorp*		1,500		11,250
Home BancShares, Inc.		1,764		65,885
Horizon Bancorp		400		10,132
Hudson Valley Holding Corp.		462		9,402
Iberiabank Corp.		1,246		78,311
Independent Bank Corp.		771		30,215
Independent Bank Group, Inc.		100		4,966
International Bancshares Corp.		1,925		50,801
Intervest Bancshares Corp.*		1,400		10,514
Lakeland Bancorp, Inc.		1,059		13,100
Lakeland Financial Corp.		794		30,966
LCNB Corp.		300		5,361
Macatawa Bank Corp.*		1,900		9,500
MainSource Financial Group, Inc.		521		9,394
MB Financial, Inc.		2,049		65,752
Mercantile Bank Corp.		500		10,790
Merchants Bancshares, Inc.		86		2,881
Metro Bancorp, Inc.*		563		12,127
Metrocorp Bancshares, Inc.		900		13,563
MidSouth Bancorp, Inc.		186		3,322
MidWestOne Financial Group, Inc.		400		10,880
National Bankshares, Inc.		319		11,768
National Penn Bancshares, Inc.		4,487		50,838
NBT Bancorp, Inc.		1,869		48,407
Newbridge Bancorp*		1,100		8,250
Northrim BanCorp, Inc.		400		10,496
OFG Bancorp		1,810		31,385
Old National Bancorp		3,786		58,191
OmniAmerican Bancorp, Inc.*		291		6,222
Pacific Continental Corp.		862		13,740
PacWest Bancorp		1,408		59,446
Park National Corp.		424		36,070
Park Sterling Corp.		1,600		11,424
Peapack-Gladstone Financial Corp.		636		12,148
Penns Woods Bancorp, Inc.		268		13,668
Peoples Bancorp, Inc.		272		6,123
Pinnacle Financial Partners, Inc.		1,463		47,591
Preferred Bank Los Angeles CA*		700		14,035
PrivateBancorp, Inc.		2,598		75,160
Prosperity Bancshares, Inc.		2,426		153,784
Renasant Corp.		1,358		42,723
Republic Bancorp, Inc., Class A		387		9,497
S&T Bancorp, Inc.		1,259		31,865
S.Y. Bancorp, Inc.		445		14,204
Sandy Spring Bancorp, Inc.		1,085		30,586
Seacoast Banking Corp of Florida*		440		5,368
Sierra Bancorp		212		3,411
Simmons First National Corp., Class A		800		29,720

129

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
Southside Bancshares, Inc.		693	$	18,947
Southwest Bancorp, Inc.*		1,036		16,493
State Bank Financial Corp.		1,500		27,285
StellarOne Corp.		1,116		26,862
Sterling Financial Corp.		1,200		40,896
Suffolk Bancorp*		443		9,214
Sun Bancorp, Inc.*		1,100		3,872
Susquehanna Bancshares, Inc.		7,633		98,008
Taylor Capital Group, Inc.*		833		22,141
Texas Capital Bancshares, Inc.*		1,573		97,841
The First of Long Island Corp.		195		8,360
Tompkins Financial Corp.		558		28,676
TowneBank		972		14,959
Trico Bancshares		604		17,135
TrustCo Bank Corp.		3,252		23,349
Trustmark Corp.		2,830		75,957
UMB Financial Corp.		1,381		88,771
Umpqua Holdings Corp.		4,462		85,403
Union First Market Bankshares Corp.		742		18,409
United Bankshares, Inc.		1,894		59,566
United Community Banks, Inc.*		1,878		33,335
Univest Corp. of Pennsylvania		600		12,408
ViewPoint Financial Group, Inc.		1,366		37,497
Virginia Commerce Bancorp*		1,100		18,689
Walker & Dunlop*		400		6,468
Washington Banking Co.		475		8,422
Washington Trust Bancorp, Inc.		670		24,937
Webster Financial Corp.		3,528		110,003
WesBanco, Inc.		1,115		35,680
West Bancorporation, Inc.		268		4,240
Westamerica Bancorporation		973		54,936
Western Alliance Bancorp*		2,775		66,212
Wilshire Bancorp, Inc.		2,676		29,249
Wintrust Financial Corp.		1,542		71,117
Yadkin Valley Financial Corp.*		600		10,224
				4,699,899
Beverages — 0.2%
Coca-Cola Bottling Co. Consolidated		174		12,735
Craft Brew Alliance, Inc.*		700		11,494
Farmers Brothers Co.*		204		4,745
National Beverage Corp.*		242		4,879
The Boston Beer Co., Inc., Class A*		310		74,955
				108,808
Biotechnology — 2.4%
Acorda Therapeutics, Inc.*		1,531		44,705
Alnylam Pharmaceuticals, Inc.*		2,339		150,468
AMAG Pharmaceuticals, Inc.*		856		20,775
Arena Pharmaceuticals, Inc.*		8,506		49,760
Arqule, Inc.*		1,796		3,861
Biotime, Inc.*		400		1,440
Bluebird Bio, Inc.*		400		8,392
Cambrex Corp.*		1,167		20,808
Cell Therapeutics, Inc.*		5,000		9,600
Celldex Therapeutics, Inc.*		3,244		78,537

	Number of Shares		Value†
Biotechnology — (continued)
Chelsea Therapeutics International, Inc.*		2,900	$	12,847
Coronado Biosciences, Inc.*		800		2,104
Cubist Pharmaceuticals, Inc.		3,195		4,313
Curis, Inc.*		2,973		8,384
Cytokinetics, Inc.*		1,000		6,500
Dendreon Corp.*		6,900		20,631
Dynavax Technologies Corp.*		7,500		14,700
Emergent BioSolutions, Inc.*		1,058		24,323
Enzon Pharmaceuticals, Inc.		905		1,050
Epizyme, Inc.*		300		6,240
Exact Sciences Corp.*		2,400		28,056
Exelixis, Inc.*		6,969		42,720
Galena Biopharma, Inc.*		3,600		17,856
Geron Corp.*		5,050		23,937
GTx, Inc.*		1,000		1,650
Halozyme Therapeutics, Inc.*		3,589		53,799
Harvard Bioscience, Inc.*		700		3,290
ImmunoGen, Inc.*		3,263		47,868
Immunomedics, Inc.*		2,936		13,506
Insmed, Inc.*		1,100		18,711
Intercept Pharmaceuticals, Inc.*		300		20,484
InterMune, Inc.*		3,143		46,296
Intrexon Corp.*		600		14,280
KYTHERA Biopharmaceuticals, Inc.*		600		22,350
Lexicon Pharmaceuticals, Inc.*		8,826		15,887
Ligand Pharmaceuticals, Inc.*		644		33,874
Merrimack Pharmaceuticals Inc*		3,500		18,690
Momenta Pharmaceuticals, Inc.*		1,882		33,274
Nanosphere, Inc.*		1,800		4,122
NeoGenomics, Inc.*		1,200		4,344
Newlink Genetics Corp.*		600		13,206
Novavax, Inc.*		7,229		37,012
NPS Pharmaceuticals, Inc.*		3,957		120,135
Omeros Corp.*		1,000		11,290
OncoGenex Pharmaceutical, Inc.*		300		2,502
Onconova Therapeutics, Inc.*		300		3,444
Pacific Biosciences of California, Inc.*		2,400		12,552
PDL BioPharma, Inc.		5,117		43,187
Peregrine Pharmaceuticals, Inc.*		5,800		8,062
Prothena Corp. PLC*		500		13,260
PTC Therapeutics, Inc.*		500		8,485
Puma Biotechnology, Inc.*		800		82,824
Repligen Corp.*		1,300		17,732
Rigel Pharmaceuticals, Inc.*		2,690		7,667
RTI Surgical, Inc.*		2,035		7,204
Sangamo Biosciences, Inc.*		2,103		29,211
Sequenom, Inc.*		5,097		11,927
Spectrum Pharmaceuticals, Inc.*		2,414		21,364
Stemline Therapeutics, Inc.*		400		7,840
Sunesis Pharmaceuticals, Inc.*		1,400		6,636
The Medicines Co.*		2,392		92,379
Verastem, Inc.*		600		6,840
Vical, Inc.*		2,121		2,503
XOMA Corp.*		3,600		24,228
ZIOPHARM Oncology, Inc.*		3,700		16,058
				1,561,980

130

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Building Materials — 1.1%
AAON, Inc.		1,257	$	40,161
Apogee Enterprises, Inc.		1,043		37,454
Boise Cascade Co.*		500		14,740
Builders FirstSource, Inc.*		1,273		9,089
Comfort Systems USA, Inc.		1,227		23,792
Drew Industries, Inc.		991		50,739
Gibraltar Industries, Inc.*		1,101		20,468
Griffon Corp.		1,956		25,839
Headwaters, Inc.*		2,880		28,195
Louisiana-Pacific Corp.*		5,194		96,141
LSI Industries, Inc.		1,314		11,392
NCI Building Systems, Inc.*		764		13,401
Nortek, Inc.*		300		22,380
Patrick Industries, Inc.*		300		8,679
PGT, Inc.*		1,700		17,204
Ply Gem Holdings, Inc.*		600		10,818
Quanex Building Products Corp.		1,225		24,402
Simpson Manufacturing Co., Inc.		1,485		54,544
Texas Industries, Inc.*		833		57,294
Trex Co., Inc.*		631		50,183
Universal Forest Products, Inc.		783		40,826
US Concrete, Inc.*		600		13,578
USG Corp.*		3,000		85,140
				756,459
Chemicals — 2.0%
A. Schulman, Inc.		1,188		41,889
Aceto Corp.		1,042		26,060
American Pacific Corp.*		300		11,178
American Vanguard Corp.		1,078		26,185
Axiall Corp.		2,800		132,832
Balchem Corp.		1,105		64,864
Chemtura Corp.*		3,944		110,117
Ferro Corp.*		2,638		33,846
H.B. Fuller Co.		1,980		103,039
Hawkins, Inc.		249		9,260
Innophos Holdings, Inc.		796		38,686
Innospec, Inc.		900		41,598
Intrepid Potash, Inc.*		2,100		33,264
KMG Chemicals, Inc.		200		3,378
Kraton Performance Polymers, Inc.*		1,041		23,995
Landec Corp.*		1,218		14,762
Minerals Technologies, Inc.		1,328		79,773
Oil-Dri Corp. of America		97		3,670
Olin Corp.		2,992		86,319
OM Group, Inc.*		1,254		45,658
OMNOVA Solutions, Inc.*		2,368		21,572
Penford Corp.*		500		6,425
PolyOne Corp.		3,755		132,739
Quaker Chemical Corp.		511		39,383
Rentech, Inc.*		7,187		12,577
Sensient Technologies Corp.		1,974		95,779
Stepan Co.		708		46,466
Taminco Corp.*		600		12,126
Zep, Inc.		1,092		19,831
Zoltek Cos., Inc.*		1,395		23,366
				1,340,637

	Number of Shares		Value†
Coal — 0.4%
Alpha Natural Resources, Inc.*		8,300	$	59,262
Arch Coal, Inc.		7,900		35,155
Cloud Peak Energy, Inc.*		2,200		39,600
SunCoke Energy, Inc.*		2,941		67,084
Walter Energy, Inc.		2,400		39,912
Westmoreland Coal Co.*		300		5,787
				246,800
Commercial Services — 6.1%
ABM Industries, Inc.		2,139		61,154
Acacia Research Corp.		1,880		27,335
Accretive Health, Inc.*		2,012		18,430
Albany Molecular Research, Inc.*		900		9,072
American Public Education, Inc.*		755		32,820
AMN Healthcare Services, Inc.*		1,909		28,062
ARC Document Solutions, Inc.*		736		6,050
Ascent Capital Group Inc., Class A*		531		45,432
AVEO Pharmaceuticals, Inc.*		1,400		2,576
Barrett Business Services, Inc.		342		31,717
Bridgepoint Education, Inc.*		480		8,501
Bright Horizons Family Solutions, Inc.*		400		14,696
Capella Education Co.		407		27,041
Cardtronics, Inc.*		1,763		76,602
Career Education Corp.*		2,300		13,110
Carriage Services, Inc.		600		11,718
CBIZ, Inc.*		1,340		12,221
CDI Corp.		741		13,731
Cenveo, Inc.*		1,299		4,469
Chemed Corp.		729		55,856
Consolidated Graphics, Inc.*		242		16,320
Convergys Corp.		3,883		81,737
Corinthian Colleges, Inc.*		1,570		2,795
Corvel Corp.*		362		16,905
CoStar Group, Inc.*		1,062		196,024
CRA International, Inc.*		274		5,425
Cross Country Healthcare, Inc.*		584		5,828
Deluxe Corp.		1,907		99,526
Education Management Corp.*		1,500		15,135
Electro Rent Corp.		715		13,242
Ennis, Inc.		858		15,187
Euronet Worldwide, Inc.*		1,855		88,762
EVERTEC, Inc.		1,100		27,126
Examworks Group, Inc.*		1,200		35,844
ExlService Holdings, Inc.*		1,200		33,144
Firsthand Technology Value Fund, Inc.*		500		11,585
Forrester Research, Inc.		575		22,000
Franklin Covey Co.*		241		4,791
FTI Consulting, Inc.*		1,556		64,014
Global Cash Access Holdings, Inc.*		2,396		23,936
Grand Canyon Education, Inc.*		1,756		76,562
Great Lakes Dredge & Dock Corp.*		2,751		25,309
Green Dot Corp.*		900		22,635
H&E Equipment Services, Inc.*		1,359		40,267
Healthcare Services Group		2,680		76,032
Heartland Payment Systems, Inc.		1,469		73,215
Heidrick & Struggles International, Inc.		669		13,474

131

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Commercial Services — (continued)
HMS Holdings Corp.*		3,415	$	77,623
Huron Consulting Group, Inc.*		928		58,204
ICF International, Inc.*		748		25,963
Insperity, Inc.		924		33,384
Intersections, Inc.		300		2,337
ITT Educational Services, Inc.*		900		30,222
K12, Inc.*		1,152		25,056
Kelly Services, Inc., Class A		1,014		25,289
Kforce, Inc.		1,086		22,220
Korn/Ferry International*		1,790		46,755
Landauer, Inc.		280		14,731
LifeLock, Inc.*		2,300		37,743
Lincoln Educational Services Corp.		565		2,814
Live Nation Entertainment, Inc.*		5,571		110,083
Mac-Gray Corp.		699		14,840
Matthews International Corp., Class A		1,105		47,084
MAXIMUS, Inc.		2,688		118,245
McGrath Rentcorp		953		37,929
Medifast, Inc.*		631		16,488
MoneyGram International Inc*		878		18,245
Monro Muffler Brake, Inc.		1,237		69,717
Monster Worldwide, Inc.*		3,900		27,807
Multi-Color Corp.		367		13,851
National Research Corp.*		687		12,929
Navigant Consulting, Inc.*		1,984		38,093
Odyssey Marine Exploration, Inc.*		1,800		3,636
On Assignment, Inc.*		1,752		61,180
PAREXEL International Corp.*		2,299		103,869
Pendrell Corp.*		5,800		11,658
Performant Financial Corp.*		900		9,270
PHH Corp.*		2,289		55,737
PRGX Global*		600		4,032
Quad /Graphics, Inc.		1,000		27,230
Rent-A-Center, Inc.		2,253		75,115
Resources Connection, Inc.		1,822		26,109
RPX Corp.*		1,300		21,970
ServiceSource International, Inc.*		2,400		20,112
SFX Entertainment, Inc.*		800		9,600
Sotheby’s		2,641		140,501
SP Plus Corp.*		793		20,650
Steiner Leisure Ltd.*		543		26,710
Strayer Education, Inc.*		400		13,788
Swisher Hygiene, Inc.*		2,100		1,080
Team Health Holdings, Inc.*		2,772		126,265
Team, Inc.*		792		33,533
TeleTech Holdings, Inc.*		707		16,926
The Advisory Board Co.*		1,350		85,954
The Brink’s Co.		2,010		68,621
The Corporate Executive Board Co.		1,269		98,259
The Hackett Group, Inc.		516		3,204
The Providence Service Corp.*		400		10,288
Tree.com, Inc.*		400		13,136
TrueBlue, Inc.*		1,576		40,629
Universal Technical Institute, Inc.		525		7,303
Valassis Communications, Inc.		1,666		57,060

	Number of Shares		Value†
Commercial Services — (continued)
Viad Corp.		771	$	21,418
VistaPrint N.V.*		1,200		68,220
WEX, Inc.*		1,557		154,190
Xoom Corp.*		300		8,211
				3,980,529
Computers — 1.8%
Acorn Energy, Inc.		1,000		4,070
Agilysys, Inc.*		376		5,234
CACI International, Inc., Class A*		850		62,237
Carbonite, Inc.*		800		9,464
CIBER, Inc.*		3,557		14,726
Computer Task Group, Inc.		579		10,943
Cray, Inc.*		1,699		46,655
Datalink Corp.*		900		9,810
Digimarc Corp.		100		1,926
Electronics for Imaging, Inc.*		1,724		66,771
Fusion-io, Inc.*		2,900		25,839
Hutchinson Technology, Inc.*		1,700		5,440
iGATE Corp.*		1,457		58,513
Imation Corp.*		584		2,733
Immersion Corp.*		842		8,740
Insight Enterprises, Inc.*		1,843		41,855
j2 Global, Inc.		1,874		93,719
LivePerson, Inc.*		1,925		28,528
Manhattan Associates, Inc.*		717		84,233
Maxwell Technologies, Inc.*		666		5,175
Mentor Graphics Corp.		3,576		86,074
Mercury Systems, Inc.*		1,736		19,009
Mitek Systems, Inc.*		1,000		5,940
MTS Systems Corp.		560		39,900
NetScout Systems, Inc.*		1,265		37,431
Qualys, Inc.*		600		13,866
Quantum Corp.*		8,761		10,513
RadiSys Corp.*		540		1,237
RealD, Inc.*		1,608		13,732
Silicon Graphics International Corp.*		1,366		18,318
Silver Spring Networks, Inc.*		200		4,200
Spansion, Inc., Class A*		2,100		29,169
Super Micro Computer, Inc.*		1,571		26,958
Sykes Enterprises, Inc.*		1,736		37,862
Synaptics, Inc.*		1,316		68,182
Syntel, Inc.*		580		52,751
The KEYW Holding Corp.*		1,300		17,472
Uni-Pixel, Inc.*		400		4,004
Unisys Corp.*		1,824		61,232
Virtusa Corp.*		889		33,862
Vocera Communications, Inc.*		800		12,488
				1,180,811
Cosmetics & Personal Care — 0.1%
Elizabeth Arden, Inc.*		1,014		35,946
Inter Parfums, Inc.		624		22,346
Revlon, Inc., Class A*		570		14,227
				72,519

132

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Distribution & Wholesale — 1.0%
Beacon Roofing Supply, Inc.*		1,981	$	79,795
Core-Mark Holding Co., Inc.		441		33,485
Houston Wire & Cable Co.		369		4,937
MWI Veterinary Supply, Inc.*		526		89,730
Owens & Minor, Inc.		2,576		94,178
Pool Corp.		1,776		103,257
Rentrak Corp.*		365		13,830
ScanSource, Inc.*		981		41,624
Speed Commerce, Inc.*		2,800		13,076
Titan Machinery, Inc.*		523		9,320
United Stationers, Inc.		1,519		69,707
Watsco, Inc.		1,038		99,710
				652,649
Diversified Financial Services — 2.6%
Aircastle Ltd.		2,576		49,356
BGC Partners, Inc., Class A		4,907		29,736
Blackhawk Network Holdings, Inc.*		500		12,630
Calamos Asset Management, Inc., Class A		469		5,553
Cohen & Steers, Inc.		817		32,729
Consumer Portfolio Services, Inc.*		1,100		10,329
Cowen Group, Inc., Class A*		5,390		21,075
Credit Acceptance Corp.*		324		42,117
DFC Global Corp.*		1,780		20,381
Diamond Hill Investment Group, Inc.		150		17,751
Doral Financial Corp.*		163		2,553
Ellie Mae, Inc.*		1,200		32,244
Encore Capital Group, Inc.*		997		50,109
Evercore Partners, Inc., Class A		1,222		73,051
FBR & Co.*		277		7,307
Federal Agricultural Mortgage Corp., Class C		300		10,275
Financial Engines, Inc.		1,900		132,012
FXCM, Inc.		1,400		24,976
Gain Capital Holdings, Inc.		800		6,008
GAMCO Investors, Inc., Class A		262		22,786
GFI Group, Inc.		1,724		6,741
Greenhill & Co., Inc.		1,100		63,734
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		600		8,376
Higher One Holdings, Inc.*		1,500		14,640
Imperial Holdings, Inc.*		1,300		8,502
INTL FCstone, Inc.*		793		14,702
Investment Technology Group, Inc.*		1,500		30,840
Janus Capital Group, Inc.		5,600		69,272
JMP Group, Inc.		263		1,946
KCG Holdings, Inc.*		2,875		34,385
Ladenburg Thalmann Financial Services, Inc.*		1,800		5,634
Manning & Napier, Inc.		300		5,295
MarketAxess Holdings, Inc.		1,399		93,551
Marlin Business Services Corp.		200		5,040
Nelnet, Inc., Class A		799		33,670
NewStar Financial, Inc.*		1,300		23,101
Nicholas Financial, Inc.		300		4,722
Oppenheimer Holdings, Inc., Class A		238		5,898

	Number of Shares		Value†
Diversified Financial Services — (continued)
Outerwall, Inc.*		1,050	$	70,633
PennyMac Financial Service*		500		8,775
Piper Jaffray Cos.*		687		27,171
Portfolio Recovery Associates, Inc.*		2,048		108,216
Pzena Investment Management, Inc., Class A		130		1,529
Regional Management Corp.*		200		6,786
Springleaf Holdings, Inc.*		900		22,752
Stifel Financial Corp.*		2,506		120,088
SWS Group, Inc.*		768		4,669
Teton Advisors, Inc., Class B~		2		62
The First Marblehead Corp.*		581		4,294
Virtus Investment Partners, Inc.*		272		54,414
Wageworks, Inc.*		1,000		59,440
Walter Investment Management Corp.*		1,353		47,842
Westwood Holdings Group, Inc.		311		19,254
WisdomTree Investments, Inc.*		3,800		67,298
World Acceptance Corp.*		362		31,686
				1,687,936
Electric — 1.9%
ALLETE, Inc.		1,651		82,352
Ameresco, Inc., Class A*		1,100		10,626
Atlantic Power Corp.*		4,127		14,362
Avista Corp.		2,539		71,574
Black Hills Corp.		1,748		91,788
Cleco Corp.		2,271		105,874
Dynegy, Inc.*		3,700		79,624
El Paso Electric Co.		1,477		51,857
Empire District Electric Co.		1,719		39,004
EnerNOC, Inc.*		1,300		22,373
Genie Energy Ltd.*		300		3,063
IDACORP, Inc.		1,901		98,548
MGE Energy, Inc.		828		47,941
NorthWestern Corp.		1,480		64,114
NRG Yield, Inc.,Class A		1,000		40,010
Ormat Technologies, Inc.		700		19,047
Otter Tail Corp.		1,292		37,817
Pike Electric Corp.*		1,058		11,183
PNM Resources, Inc.		3,210		77,425
Portland General Electric Co.		2,956		89,271
UIL Holdings Corp.		1,991		77,151
Unitil Corp.		663		20,215
UNS Energy Corp.		1,627		97,376
				1,252,595
Electrical Components & Equipment — 1.5%
Acuity Brands, Inc.		1,632		178,410
Advanced Energy Industries, Inc.*		1,393		31,844
American Superconductor Corp.*		1,090		1,788
Belden, Inc.		1,755		123,640
Capstone Turbine Corp.*		9,700		12,513
Coleman Cable, Inc.		300		7,866
Encore Wire Corp.		771		41,788
EnerSys,Inc.		1,923		134,783
Generac Holdings, Inc.*		1,949		110,391

133

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electrical Components & Equipment — (continued)
General Cable Corp.		1,900	$	55,879
GrafTech International Ltd.*		4,400		49,412
Graham Corp.		466		16,911
Insteel Industries, Inc.		691		15,706
Littelfuse, Inc.		878		81,593
Powell Industries, Inc.		429		28,739
PowerSecure International, Inc.*		800		13,736
Revolution Lighting Technologies, Inc.*		2,200		7,535
Sunpower Corp.*		1,600		47,696
Universal Display Corp.*		1,549		53,224
Vicor Corp.*		422		5,663
				1,019,117
Electronics — 2.2%
American Science & Engineering, Inc.		278		19,991
Analogic Corp.		507		44,900
Badger Meter, Inc.		659		35,915
Bel Fuse, Inc., Class B		269		5,732
Benchmark Electronics, Inc.*		2,077		47,937
Brady Corp., Class A		1,857		57,437
Checkpoint Systems, Inc.*		1,545		24,365
Coherent, Inc.*		973		72,381
CTS Corp.		1,263		25,146
Electro Scientific Industries, Inc.		693		7,249
ESCO Technologies, Inc.		1,034		35,425
FARO Technologies, Inc.*		620		36,146
FEI Co.		1,646		147,087
Fluidigm Corp.*		900		34,488
II-VI, Inc.*		2,056		36,186
InvenSense, Inc.*		2,200		45,716
Itron, Inc.*		1,500		62,145
Kemet Corp.*		1,100		6,204
Measurement Specialties, Inc.*		670		40,662
Mesa Laboratories, Inc.		100		7,858
Methode Electronics, Inc.		1,460		49,917
Multi-Fineline Electronix, Inc.*		152		2,111
Newport Corp.*		1,463		26,436
NVE Corp.*		109		6,353
OSI Systems, Inc.*		757		40,204
Park Electrochemical Corp.		1,033		29,668
Plexus Corp.*		1,403		60,736
Rofin-Sinar Technologies, Inc.*		1,186		32,046
Rogers Corp.*		660		40,590
Sanmina Corp.*		3,326		55,544
Sparton Corp.*		400		11,180
Stoneridge, Inc.*		1,473		18,781
Taser International, Inc.*		1,711		27,171
TTM Technologies, Inc.*		2,359		20,240
Viasystems Group, Inc.*		100		1,368
Vishay Precision Group, Inc.*		300		4,467
Watts Water Technologies, Inc., Class A		1,117		69,109
Woodward, Inc.		2,623		119,635
Zagg, Inc.*		500		2,175
Zygo Corp.*		382		5,646
				1,416,347

	Number of Shares		Value†
Energy-Alternate Sources — 0.2%
Amyris, Inc.*		400	$	2,116
Clean Energy Fuels Corp.*		2,900		37,352
Enphase Energy, Inc.*		1,300		8,242
FuelCell Energy, Inc.*		2,681		3,780
FutureFuel Corp.		1,100		17,380
Green Plains Renewable Energy, Inc.		1,267		24,567
KiOR, Inc — Class A*		1,880		3,159
Pattern Energy Group, Inc.		700		21,217
Renewable Energy Group, Inc.*		900		10,314
REX American Resources Corp.*		192		8,584
Solazyme, Inc.*		1,800		19,602
				156,313
Engineering & Construction — 0.8%
Aegion Corp.*		1,555		34,039
Argan, Inc.		536		14,772
Dycom Industries, Inc.*		1,153		32,042
EMCOR Group, Inc.		2,663		113,018
Engility Holdings, Inc.*		700		23,380
Exponent, Inc.		520		40,269
Granite Construction, Inc.		1,444		50,511
Layne Christensen Co.*		926		15,816
MasTec, Inc.*		2,264		74,078
Mistras Group, Inc.*		800		16,704
MYR Group, Inc.*		983		24,653
Orion Marine Group, Inc.*		1,137		13,678
Sterling Construction Co., Inc.*		353		4,141
Tutor Perini Corp.*		1,397		36,741
VSE Corp.		104		4,993
				498,835
Entertainment — 0.7%
Carmike Cinemas, Inc.*		800		22,272
Churchill Downs, Inc.		520		46,618
International Speedway Corp.		1,100		39,039
Isle of Capri Casinos, Inc.*		241		2,169
Marriott Vacations Worldwide Corp.*		1,100		58,036
Multimedia Games Holding Co., Inc.*		1,070		33,555
National CineMedia, Inc.		2,374		47,385
Pinnacle Entertainment, Inc.*		2,182		56,710
Scientific Games Corp., Class A*		1,900		32,167
Speedway Motorsports, Inc.		316		6,273
Vail Resorts, Inc.		1,346		101,260
				445,484
Environmental Control — 0.6%
Advanced Emissions Solutions, Inc.*		400		21,692
Calgon Carbon Corp.*		2,162		44,472
Casella Waste Systems, Inc., Class A*		2,300		13,340
Ceco Environmental Corp.		709		11,465
Darling International, Inc.*		6,067		126,679
Energy Recovery, Inc.*		1,918		10,664
Heritage-Crystal Clean, Inc.*		200		4,098
Mine Safety Appliances Co.		1,021		52,285
Nuverra Environmental Solutions, Inc.*		441		7,404
Tetra Tech, Inc.*		2,664		74,539

134

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Environmental Control — (continued)
TRC Cos., Inc.*		500	$	3,570
U.S. Ecology, Inc.		742		27,595
				397,803
Food — 2.0%
Annie’s, Inc.*		500		21,520
Arden Group, Inc., Class A		11		1,392
B&G Foods, Inc., Class A		1,972		66,870
Boulder Brands, Inc.*		2,579		40,903
Cal-Maine Foods, Inc.		623		37,523
Calavo Growers, Inc.		451		13,647
Chiquita Brands International, Inc.*		1,824		21,341
Diamond Foods, Inc.*		776		20,052
Fairway Group Holdings Corp.*		600		10,872
Fresh Del Monte Produce, Inc.		1,516		42,903
Harris Teeter Supermarkets, Inc.		2,037		100,526
Ingles Markets, Inc., Class A		604		16,368
Inventure Foods, Inc.*		500		6,630
J&J Snack Foods Corp.		532		47,130
John B. Sanfilippo & Son, Inc.		400		9,872
Lancaster Colony Corp.		672		59,237
Lifeway Foods, Inc.		87		1,390
NutriSystem, Inc.		1,037		17,048
Pilgrim’s Pride Corp.*		2,287		37,164
Post Holdings, Inc.*		1,200		59,124
Sanderson Farms, Inc.		834		60,323
Seaboard Corp.*		11		30,745
Seneca Foods Corp., Class A*		211		6,729
Snyders-Lance, Inc.		1,879		53,965
Spartan Stores, Inc.		1,530		37,148
SUPERVALU, Inc.*		7,400		53,946
The Chefs’ Warehouse Holdings, Inc.*		750		21,870
The Hain Celestial Group, Inc.*		1,462		132,720
Tootsie Roll Industries, Inc.		788		25,642
TreeHouse Foods, Inc.*		1,414		97,453
United Natural Foods, Inc.*		1,900		143,241
Village Super Market, Inc., Class A		268		8,311
Weis Markets, Inc.		466		24,493
				1,328,098
Forest Products & Paper — 0.6%
Clearwater Paper Corp.*		878		46,095
Deltic Timber Corp.		392		26,632
KapStone Paper and Packaging Corp.*		1,620		90,493
Neenah Paper, Inc.		574		24,550
Orchids Paper Products Co.		400		13,136
P.H. Glatfelter Co.		1,659		45,855
Resolute Forest Products*		2,700		43,254
Schweitzer-Mauduit International, Inc.		1,176		60,529
Wausau Paper Corp.		1,581		20,047
Xerium Technologies, Inc.*		800		13,192
				383,783
Gas — 0.9%
Chesapeake Utilities Corp.		357		21,427
Delta Natural Gas Co., Inc.		400		8,952

	Number of Shares		Value†
Gas — (continued)
New Jersey Resources Corp.		1,632	$	75,464
Northwest Natural Gas Co.		1,050		44,961
Piedmont Natural Gas Co., Inc.		2,851		94,539
South Jersey Industries, Inc.		1,340		74,986
Southwest Gas Corp.		1,794		100,303
The Laclede Group, Inc.		1,356		61,752
WGL Holdings, Inc.		1,994		79,880
				562,264
Hand & Machine Tools — 0.1%
Franklin Electric Co., Inc.		1,770		79,013
Hardinge, Inc.		500		7,235
				86,248
Healthcare Products — 3.7%
Abaxis, Inc.*		829		33,177
ABIOMED, Inc.*		1,489		39,816
Accelerate Diagnostics, Inc.*		800		9,760
Accuray, Inc.*		2,738		23,848
Affymetrix, Inc.*		2,371		20,320
Align Technology, Inc.*		2,865		163,735
Alphatec Holdings, Inc.*		816		1,640
AngioDynamics, Inc.*		958		16,468
ArthroCare Corp.*		1,155		46,477
AtriCure, Inc.*		1,200		22,416
Atrion Corp.		37		10,961
Biolase, Inc.*		6		17
Cantel Medical Corp.		1,275		43,235
Cardiovascular Systems, Inc.*		900		30,861
Cepheid, Inc.*		2,680		125,210
Cerus Corp.*		3,600		23,220
Chindex International, Inc.*		314		5,473
CONMED Corp.		1,003		42,628
CryoLife, Inc.		599		6,643
Cutera, Inc.*		500		5,090
Cyberonics, Inc.*		1,032		67,606
Cynosure, Inc., Class A*		694		18,516
DexCom, Inc.*		2,742		97,094
Endologix, Inc.*		2,298		40,077
Exactech, Inc.*		209		4,966
GenMark Diagnostics, Inc.*		1,200		15,972
Genomic Health, Inc.*		509		14,898
Globus Medical, Inc.*		2,100		42,378
Greatbatch, Inc.*		993		43,930
Haemonetics Corp.*		1,946		81,985
Hanger, Inc.*		1,408		55,391
Harvard Apparatus Regenerative Technology, Inc.*		175		831
HeartWare International, Inc.*		589		55,342
ICU Medical, Inc.*		479		30,517
Insulet Corp.*		2,146		79,617
Integra LifeSciences Holdings Corp.*		826		39,408
Invacare Corp.		1,190		27,620
Luminex Corp.*		1,353		26,248
Masimo Corp.*		1,904		55,654
Medical Action Industries, Inc.*		1,200		10,272

135

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Healthcare Products — (continued)
Merge Healthcare, Inc.*		1,657	$	3,844
Meridian Bioscience, Inc.		1,760		46,693
Merit Medical Systems, Inc.*		1,375		21,643
MiMedx Group, Inc.*		3,200		27,968
Natus Medical, Inc.*		1,175		26,438
Navidea Biopharmaceuticals, Inc.*		6,000		12,420
NuVasive, Inc.*		1,706		55,155
NxStage Medical, Inc.*		2,284		22,840
OraSure Technologies, Inc.*		2,201		13,844
Orthofix International N.V.*		671		15,312
PhotoMedex, Inc.*		700		9,065
Quidel Corp.*		1,051		32,465
Rockwell Medical, Inc.*		1,800		18,792
Solta Medical, Inc.*		1,200		3,540
Spectranetics Corp.*		1,765		44,125
Staar Surgical Co.*		1,400		22,666
STERIS Corp.		2,232		107,248
SurModics, Inc.*		773		18,854
Symmetry Medical, Inc.*		1,744		17,580
Tandem Diabetes Care, Inc.*		400		10,308
TearLab Corp.*		1,000		9,340
The Female Health Co.		904		7,684
Thoratec Corp.*		2,200		80,520
Tornier NV*		800		15,032
Unilife Corp.*		3,410		15,004
Utah Medical Products, Inc.		200		11,432
Vascular Solutions, Inc.*		883		20,441
Volcano Corp.*		1,964		42,913
West Pharmaceutical Services, Inc.		2,778		136,289
Wright Medical Group, Inc.*		1,661		51,009
Zeltiq Aesthetics, Inc.*		700		13,237
				2,413,018
Healthcare Services — 1.7%
Acadia Healthcare Co., Inc.*		1,300		61,529
Addus Homecare Corp.*		400		8,980
Air Methods Corp.*		1,487		86,737
Alliance Healthcare Services, Inc.*		400		9,896
Almost Family, Inc.*		177		5,722
Amedisys, Inc.*		1,306		19,107
Amsurg Corp.*		1,223		56,160
Bio-Reference Labs, Inc.*		1,007		25,719
Capital Senior Living Corp.*		1,036		24,854
Centene Corp.*		2,168		127,804
Emeritus Corp.*		1,483		32,077
Five Star Quality Care, Inc.*		2,500		13,725
Gentiva Health Services, Inc.*		1,623		20,141
HealthSouth Corp.		3,536		117,820
Healthways, Inc.*		1,558		23,915
IPC The Hospitalist Co., Inc.*		647		38,425
Kindred Healthcare, Inc.		1,986		39,204
LHC Group, Inc.*		382		9,183
Magellan Health Services, Inc.*		1,041		62,366
Molina Healthcare, Inc.*		1,168		40,588
National Healthcare Corp.		406		21,887
Select Medical Holdings Corp.		2,300		26,703

	Number of Shares		Value†
Healthcare Services — (continued)
Skilled Healthcare Group, Inc., Class A*		561	$	2,698
Surgical Care Affiliates, Inc.*		400		13,936
The Ensign Group, Inc.		740		32,760
Triple-S Management Corp., Class B*		691		13,433
U.S. Physical Therapy, Inc.		591		20,839
Universal American Corp.*		1,780		12,994
WellCare Health Plans, Inc.*		1,726		121,545
				1,090,747
Holding Companies — 0.1%
Harbinger Group, Inc.*		1,775		21,034
Horizon Pharma, Inc.*		1,000		7,620
National Bank Holdings Corp.		2,000		42,800
				71,454
Home Builders — 0.7%
Beazer Homes USA, Inc.*		924		22,564
Cavco Industries, Inc.*		269		18,480
Hovnanian Enterprises, Inc., Class A*		4,810		31,842
KB Home		3,400		62,152
M/I Homes, Inc.*		836		21,276
MDC Holdings, Inc.*		1,400		45,136
Meritage Homes Corp.*		1,390		66,706
Standard Pacific Corp.*		5,590		50,590
The Ryland Group, Inc.		1,746		75,794
TRI Pointe Homes, Inc.*		600		11,958
WCI Communities, Inc.*		400		7,636
William Lyon Homes, Class A*		600		13,284
Winnebago Industries, Inc.*		1,122		30,799
				458,217
Home Furnishings — 0.6%
American Woodmark Corp.*		369		14,587
Bassett Furniture Industries, Inc.		600		9,168
Daktronics, Inc.		1,209		18,957
DTS, Inc.*		703		16,858
Ethan Allen Interiors, Inc.		1,028		31,272
Flexsteel Industries, Inc.		400		12,292
Hooker Furniture Corp.		600		10,008
iRobot Corp.*		1,082		37,621
Kimball International, Inc., Class B		1,244		18,697
La-Z-Boy, Inc.		1,962		60,822
Select Comfort Corp.*		2,372		50,025
Skullcandy, Inc.*		407		2,934
TiVo, Inc.*		4,855		63,698
Universal Electronics, Inc.*		700		26,677
VOXX International Corp.*		825		13,778
				387,394
Hotels & Resorts — 0.0%
Caesars Entertainment Corp.*		1,300		28,002
Household Products & Wares — 0.5%
ACCO Brands Corp.*		4,393		29,521
Blyth, Inc.		282		3,068
Central Garden & Pet Co., Class A*		1,202		8,114
Costa, Inc.*		500		10,865

136

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Household Products & Wares — (continued)
CSS Industries, Inc.		212	$	6,080
Helen of Troy Ltd.*		1,195		59,164
Prestige Brands Holdings, Inc.*		1,972		70,598
Spectrum Brands Holdings, Inc.		800		56,440
Tumi Holdings, Inc.*		1,800		40,590
WD-40 Co.		646		48,243
				332,683
Housewares — 0.0%
EveryWare Global, Inc.*		800		6,624
Libbey, Inc.*		800		16,800
Lifetime Brands, Inc.		200		3,146
				26,570
Insurance — 2.7%
Ambac Financial Group, Inc.*		1,700		41,752
American Equity Investment Life Holding Co.		2,576		67,955
AMERISAFE, Inc.		708		29,906
Amtrust Financial Services, Inc.		1,267		41,418
Argo Group International Holdings Ltd.		1,041		48,396
Baldwin & Lyons, Inc., Class B		325		8,879
Citizens, Inc.*		1,466		12,828
CNO Financial Group, Inc.		8,593		152,010
Crawford & Co., Class B		1,538		14,211
Donegal Group, Inc., Class A		283		4,500
Eastern Insurance Holdings, Inc.		500		12,245
eHealth, Inc.*		720		33,473
EMC Insurance Group, Inc.		100		3,062
Employers Holdings, Inc.		1,282		40,575
Enstar Group Ltd.*		374		51,952
Essent Group Ltd.*		900		21,654
FBL Financial Group, Inc., Class A		327		14,646
First American Financial Corp.		4,073		114,859
Global Indemnity PLC*		383		9,690
Greenlight Capital Re, Ltd., Class A*		1,128		38,025
Hallmark Financial Services, Inc.*		255		2,266
HCI Group, Inc.		500		26,750
Hilltop Holdings, Inc.*		2,392		55,327
Horace Mann Educators Corp.		1,509		47,594
Infinity Property & Casualty Corp.		420		30,135
Kansas City Life Insurance Co.		73		3,485
Maiden Holdings Ltd.		2,268		24,789
Meadowbrook Insurance Group, Inc.		1,518		10,565
MGIC Investment Corp.*		12,827		108,260
Montpelier Re Holdings Ltd.		1,707		49,674
National Interstate Corp.		402		9,246
National Western Life Insurance Co., Class A		52		11,625
OneBeacon Insurance Group Ltd., Class A		600		9,492
Platinum Underwriters Holdings Ltd.		1,156		70,840
Primerica, Inc.		2,300		98,693
Radian Group, Inc.		7,003		98,882
RLI Corp.		861		83,844
Safety Insurance Group, Inc.		582		32,767
Selective Insurance Group, Inc.		2,175		58,855

	Number of Shares		Value†
Insurance — (continued)
State Auto Financial Corp.		376	$	7,986
Stewart Information Services Corp.		808		26,074
Symetra Financial Corp.		3,200		60,672
The Navigators Group, Inc.*		395		24,948
The Phoenix Cos., Inc.*		146		8,964
Third Point Reinsurance Ltd.*		1,200		22,236
Tower Group International Ltd.		2,147		7,257
United Fire Group, Inc.		680		19,489
Universal Insurance Holdings, Inc.		1,251		18,114
				1,790,865
Internet — 2.7%
1-800-Flowers.com, Inc., Class A*		737		3,987
Angie’s List, Inc.*		1,600		24,240
Bankrate, Inc.*		2,023		36,293
Bazaarvoice, Inc.*		1,900		15,048
Blucora, Inc.*		1,496		43,623
Blue Nile, Inc.*		439		20,672
Boingo Wireless, Inc.*		900		5,769
Brightcove, Inc.*		1,200		16,968
BroadSoft, Inc.*		1,261		34,476
ChannelAdvisor Corp.*		300		12,513
Cogent Communications Group, Inc.		1,719		69,465
comScore, Inc.*		1,359		38,881
Constant Contact, Inc.*		1,165		36,197
CyrusOne, Inc.		700		15,631
Dealer Technologies, Inc.*		1,696		81,544
Dice Holdings, Inc.*		1,163		8,432
eGain Corp.*		1,000		10,240
Endurance International Group Holdings, Inc.*		800		11,344
ePlus, Inc.*		74		4,206
FTD Cos, Inc.*		818		26,650
Global Eagle Entertainment, Inc.*		900		13,383
Global Sources Ltd.*		372		3,024
HealthStream, Inc.*		900		29,493
ICG Group, Inc.*		1,228		22,878
Internap Network Services Corp.*		1,921		14,446
IntraLinks Holdings, Inc.*		1,700		20,587
Limelight Networks, Inc.*		1,172		2,321
Lionbridge Technologies, Inc.*		1,243		7,408
Liquidity Services, Inc.*		1,035		23,453
Marketo, Inc.*		300		11,121
ModusLink Global Solutions, Inc.*		945		5,415
Move, Inc*		1,879		30,045
NIC, Inc.*		2,629		65,383
OpenTable, Inc.*		856		67,941
Orbitz Worldwide, Inc.*		1,476		10,598
Overstock.com, Inc.*		571		17,581
PC-Tel, Inc.		1,200		11,484
Perficient, Inc.*		1,245		29,158
QuinStreet, Inc.*		1,815		15,772
ReachLocal, Inc.*		200		2,542
RealNetworks, Inc.*		515		3,888
Reis, Inc.*		400		7,692
Responsys, Inc.*		1,400		38,374

137

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Internet — (continued)
RetailMeNot, Inc.*		400	$	11,516
Safeguard Scientifics, Inc.*		1,050		21,094
Sapient Corp.*		4,152		72,079
Shutterfly, Inc.*		1,590		80,979
Shutterstock, Inc.*		300		25,089
Spark Networks, Inc.*		800		4,928
SPS Commerce, Inc.*		700		45,710
Stamps.com, Inc.*		462		19,450
support.com, Inc.*		2,439		9,244
TechTarget, Inc.*		500		3,430
TeleCommunication Systems, Inc., Class A*		3,800		8,816
Textura Corp.*		300		8,982
Towerstream Corp.*		4,200		12,432
Travelzoo, Inc.*		311		6,631
Trulia, Inc.*		1,086		38,303
United Online, Inc.*		584		8,036
Unwired Planet, Inc.*		1,950		2,691
ValueClick, Inc.*		2,790		65,202
VASCO Data Security International, Inc.*		728		5,627
VirnetX Holding Corp.*		1,583		30,726
Vitacost.com, Inc.*		1,300		7,527
Vocus, Inc.*		881		10,035
Web.com Group, Inc.*		1,600		50,864
WebMD Health Corp.*		1,186		46,847
Wix.com Ltd.*		300		8,055
XO Group, Inc.*		1,359		20,195
Yelp, Inc.*		1,300		89,635
Zillow, Inc. Class A*		888		72,576
Zix Corp.*		3,548		16,179
				1,773,044
Investment Companies — 1.0%
Apollo Investment Corp.		8,796		74,590
Arlington Asset Investment Corp., Class A		500		13,195
BlackRock Kelso Capital Corp.		2,858		26,665
Capital Southwest Corp.		636		22,177
Fifth Street Finance Corp.		5,650		52,263
Gladstone Capital Corp.		412		3,955
Golub Capital BDC, Inc.		1,410		26,945
KCAP Financial, Inc.		1,573		12,694
Main Street Capital Corp.		1,390		45,439
MCG Capital Corp.		3,854		16,958
Medallion Financial Corp.		748		10,734
Medley Capital Group		1,277		17,686
MVC Capital, Inc.		1,281		17,294
New Mountain Finance Corp.		1,653		24,861
NGP Capital Resources Co.		352		2,629
PennantPark Floating Rate Capital Ltd.		512		7,030
PennantPark Investment Corp.		2,587		30,009
Prospect Capital Corp.		10,135		113,715
Solar Capital Ltd.		1,577		35,561
Solar Senior Capital Ltd.		533		9,711
Stellus Capital Investment Corp.		600		8,970
TCP Capital Corp.		1,000		16,780
THL Credit, Inc.		1,600		26,384

	Number of Shares		Value†
Investment Companies — (continued)
TICC Capital Corp.		1,814	$	18,757
Triangle Capital Corp.		1,041		28,784
				663,786
Iron & Steel — 0.3%
AK Steel Holding Corp.*		5,300		43,460
Commercial Metals Co.		4,400		89,452
Schnitzer Steel Industries, Inc., Class A		900		29,403
Universal Stainless & Alloy Products, Inc.*		133		4,796
				167,111
Leisure Time — 0.6%
Arctic Cat, Inc.		444		25,299
Black Diamond, Inc.*		1,300		17,329
Brunswick Corp.		3,468		159,736
Callaway Golf Co.		2,146		18,091
ClubCorp Holdings, Inc.		800		14,192
Diamond Resorts International, Inc.*		800		14,768
Fox Factory Holding Corp.*		500		8,810
Interval Leisure Group, Inc.		1,416		43,754
Johnson Outdoors, Inc.		200		5,390
Life Time Fitness, Inc.*		1,659		77,973
Marine Products Corp.		160		1,608
Nautilus, Inc.*		1,300		10,959
Town Sports International Holdings, Inc.		600		8,856
				406,765
Lodging — 0.2%
Boyd Gaming Corp.*		3,000		33,780
Marcus Corp.		433		5,820
Monarch Casino & Resort, Inc.*		185		3,715
Morgans Hotel Group Co.*		1,494		12,146
Orient-Express Hotels Ltd., Class A*		3,745		56,587
				112,048
Machinery — Construction & Mining — 0.1%
Astec Industries, Inc.		698		26,964
Hyster-Yale Materials Handling, Inc.		444		41,363
				68,327
Machinery — Diversified — 1.4%
Alamo Group, Inc.		317		19,239
Albany International Corp., Class A		1,132		40,673
Altra Holdings, Inc.		1,003		34,323
Applied Industrial Technologies, Inc.		1,582		77,660
Briggs & Stratton Corp.		1,936		42,127
Chart Industries, Inc.*		1,177		112,568
Cognex Corp.*		3,514		134,165
Columbus McKinnon Corp.*		685		18,591
DXP Enterprises, Inc.*		322		37,094
Flow International Corp.*		1,208		4,880
Global Power Equipment Group, Inc.		900		17,613
Hurco Cos., Inc.		200		5,002
Kadant, Inc.		499		20,220
Lindsay Corp.		453		37,486
Manitex International, Inc.*		500		7,940

138

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Machinery — Diversified — (continued)
NACCO Industries, Inc., Class A		222	$	13,806
Power Solutions International, Inc.*		100		7,510
Tecumseh Products Co., Class A*		800		7,240
Tennant Co.		736		49,908
The ExOne Co.*		200		12,092
The Gorman-Rupp Co.		751		25,106
The Middleby Corp.*		695		166,779
Twin Disc, Inc.		235		6,084
				898,106
Media — 0.9%
A.H. Belo Corp., Class A		1,100		8,217
Central European Media Enterprises Ltd., Class A*		3,100		11,904
Courier Corp.		247		4,468
Crown Media Holdings, Inc., Class A*		217		766
Cumulus Media, Inc., Class A*		2,800		21,644
Daily Journal Corp.*		1		185
Demand Media, Inc.*		1,300		7,501
Dex Media, Inc.*		700		4,746
Digital Generation, Inc.*		657		8,377
E.W. Scripps Co., Class A*		1,206		26,194
Entercom Communications Corp., Class A*		1,400		14,714
Entravision Communications Corp., Class A		2,800		17,052
Gray Television, Inc.*		2,000		29,760
Hemisphere Media Group, Inc.*		600		7,122
Houghton Mifflin Harcourt Co.*		800		13,568
Journal Communications, Inc., Class A*		1,784		16,609
Martha Stewart Living Omnimedia, Inc., Class A*		562		2,360
Media General, Inc., Class A*		800		18,080
Meredith Corp.		1,500		77,700
Nexstar Broadcasting Group		1,100		61,303
Saga Communications, Inc.*		133		6,690
Scholastic Corp.		956		32,514
Sinclair Broadcast Group, Inc., Class A		2,817		100,652
The McClatchy Co., Class A*		1,100		3,740
The New York Times Co., Class A		4,821		76,509
World Wrestling Entertainment, Inc.,Class A		914		15,154
				587,529
Metal Fabricate/Hardware — 0.9%
A.M. Castle & Co.*		435		6,425
Ampco-Pittsburgh Corp.		214		4,162
CIRCOR International, Inc.		735		59,373
Dynamic Materials Corp.		690		15,001
Furmanite Corp.*		2,054		21,814
Global Brass & Copper Holdings, Inc.		600		9,930
Haynes International, Inc.		564		31,155
L.B. Foster Co., Class A		366		17,308
Mueller Industries, Inc.		1,094		68,933
Mueller Water Products, Inc., Class A		6,192		58,019
NN, Inc.		400		8,076
Northwest Pipe Co.*		483		18,238
Olympic Steel, Inc.		231		6,694

	Number of Shares		Value†
Metal Fabricate/Hardware — (continued)
Omega Flex, Inc.		59	$	1,207
RBC Bearings, Inc.*		837		59,218
Rexnord Corp.*		1,000		27,010
RTI International Metals, Inc.*		1,113		38,076
Sun Hydraulics Corp.		859		35,073
Worthington Industries, Inc.		1,984		83,487
				569,199
Mining — 0.7%
Allied Nevada Gold Corp.*		4,000		14,200
AMCOL International Corp.		1,098		37,310
Century Aluminum Co.*		2,254		23,577
Coeur Mining, Inc.*		3,828		41,534
General Moly, Inc.*		1,499		2,009
Globe Specialty Metals, Inc.		2,414		43,476
Gold Resource Corp.		1,300		5,889
Hecla Mining Co.		12,817		39,476
Horsehead Holding Corp.*		1,583		25,660
Kaiser Aluminum Corp.		716		50,292
Materion Corp.		857		26,439
Midway Gold Corp.*		2,200		1,782
Molycorp, Inc.*		4,800		26,976
Noranda Aluminium Holding Corp.		600		1,974
Paramount Gold and Silver Corp.*		2,900		2,702
Stillwater Mining Co.*		4,524		55,826
United States Lime & Minerals, Inc.*		29		1,774
Ur-Energy, Inc.*		5,400		7,452
Uranium Energy Corp.*		2,400		4,800
US Silica Holdings, Inc.		1,000		34,110
				447,258
Miscellaneous Manufacturing — 1.8%
Actuant Corp., Class A		2,806		102,812
American Railcar Industries, Inc.		300		13,725
AZZ, Inc.		976		47,687
Barnes Group, Inc.		2,065		79,110
Blount International, Inc.*		1,995		28,868
Chase Corp.		200		7,060
CLARCOR, Inc.		1,898		122,136
EnPro Industries, Inc.*		817		47,100
Fabrinet*		1,100		22,616
Federal Signal Corp.*		2,343		34,325
FreightCar America, Inc.		270		7,187
GP Strategies Corp.*		696		20,734
Handy & Harman Ltd.*		200		4,842
Hillenbrand, Inc.		2,174		63,959
John Bean Technologies Corp.		1,229		36,047
Koppers Holdings, Inc.		820		37,515
LSB Industries, Inc.*		749		30,724
Lydall, Inc.*		600		10,572
Movado Group, Inc.		760		33,448
Myers Industries, Inc.		1,125		23,760
NL Industries, Inc.		90		1,006
Park-Ohio Holdings Corp.*		400		20,960
PMFG, Inc.*		486		4,398
Polypore International, Inc.*		1,900		73,910

139

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — (continued)
Proto Labs, Inc.*		700	$	49,826
Raven Industries, Inc.		1,346		55,374
Smith & Wesson Holding Corp.*		2,179		29,395
Standex International Corp.		500		31,440
Sturm Ruger & Co., Inc.		819		59,861
Tredegar Corp.		1,061		30,567
Trimas Corp.*		1,795		71,603
				1,202,567
Office Furnishings — 0.4%
Herman Miller, Inc.		2,232		65,889
HNI Corp.		1,843		71,564
Interface, Inc.		2,195		48,202
Knoll, Inc.		1,953		35,759
Steelcase, Inc., Class A		3,131		49,658
				271,072
Oil & Gas — 2.6%
Abraxas Petroleum Corp.*		2,000		6,560
Adams Resources & Energy, Inc.		100		6,850
Alon USA Energy, Inc.		952		15,746
Apco Oil and Gas International, Inc.*		258		4,022
Approach Resources, Inc.*		1,341		25,868
Arabian American Development Co.*		1,000		12,550
Athlon Energy, Inc.*		800		24,200
Bill Barrett Corp.*		2,025		54,229
Bonanza Creek Energy, Inc.*		1,100		47,817
BPZ Resources, Inc.*		6,783		12,345
Callon Petroleum Co.*		1,000		6,530
Carrizo Oil & Gas, Inc.*		1,665		74,542
Clayton Williams Energy, Inc.*		217		17,783
Comstock Resources, Inc.		1,987		36,342
Contango Oil & Gas Co.*		503		23,772
Delek US Holdings, Inc.		1,398		48,105
Diamondback Energy, Inc.*		700		37,002
Emerald Oil, Inc.*		1,500		11,490
Endeavour International Corp.*		1,352		7,098
Energy XXI Bermuda Ltd.		3,062		82,858
EPL Oil & Gas, Inc.*		1,200		34,200
Equal Energy Ltd.		1,600		8,544
Evolution Petroleum Corp.		500		6,170
EXCO Resources, Inc.		5,100		27,081
Forest Oil Corp.*		3,900		14,079
FX Energy, Inc.*		1,389		5,084
Gastar Exploration Ltd.*		1,500		10,380
Goodrich Petroleum Corp.*		1,281		21,803
Halcon Resources Corp.*		9,876		38,121
Hercules Offshore, Inc.*		6,105		39,866
Isramco, Inc.*		21		2,668
Jones Energy, Inc.*		600		8,688
Kodiak Oil & Gas Corp.*		10,700		119,947
Magnum Hunter Resources Corp.*		6,600		48,246
Matador Resources Co.*		2,400		44,736
Midstates Petroleum Co., Inc.*		1,100		7,282
Miller Energy Resources, Inc.*		1,900		13,376
Northern Oil & Gas, Inc.*		2,253		33,953

	Number of Shares		Value†
Oil & Gas — (continued)
Panhandle Oil and Gas, Inc., Class A		417	$	13,932
Parker Drilling Co.*		5,217		42,414
PDC Energy, Inc.*		1,412		75,147
Penn Virginia Corp.*		2,012		18,973
PetroQuest Energy, Inc.*		1,539		6,648
Quicksilver Resources, Inc.*		4,600		14,122
Resolute Energy Corp.*		2,200		19,866
Rex Energy Corp.*		1,800		35,478
Rosetta Resources, Inc.*		2,437		117,073
Sanchez Energy Corp.*		1,600		39,216
Stone Energy Corp.*		1,879		64,995
Swift Energy Co.*		1,889		25,502
Synergy Resources Corp.*		2,000		18,520
Triangle Petroleum Corp.*		2,300		19,136
Vaalco Energy, Inc.*		2,430		16,743
W&T Offshore, Inc.		1,643		26,288
Warren Resources, Inc.*		1,705		5,354
Western Refining, Inc.		2,037		86,389
				1,685,729
Oil & Gas Services — 1.6%
Basic Energy Services, Inc.*		1,488		23,481
Bolt Technology Corp.		400		8,804
C J Energy Services, Inc.*		1,930		44,583
Cal Dive International, Inc.*		2,189		4,400
CARBO Ceramics, Inc.		800		93,224
Dawson Geophysical Co.*		215		7,271
Exterran Holdings, Inc.*		2,100		71,820
Flotek Industries, Inc.*		1,800		36,126
Forum Energy Technologies, Inc.*		1,500		42,390
Geospace Technologies Corp.*		476		45,139
Global Geophysical Services, Inc.*		500		805
Gulf Island Fabrication, Inc.		818		18,994
Helix Energy Solutions Group, Inc.*		4,001		92,743
Hornbeck Offshore Services, Inc.*		1,378		67,839
ION Geophysical Corp.*		5,465		18,034
Key Energy Services, Inc.*		6,024		47,590
Matrix Service Co.*		1,287		31,493
Mitcham Industries, Inc.*		300		5,313
Natural Gas Services Group, Inc.*		594		16,377
Newpark Resources, Inc.*		3,512		43,162
Pioneer Energy Services Corp.*		2,650		21,226
SEACOR Holdings, Inc.*		800		72,960
Targa Resources Corp.		1,300		114,621
Tesco Corp.*		1,400		27,692
TETRA Technologies, Inc.*		2,979		36,820
TGC Industries, Inc.*		945		6,899
Thermon Group Holdings, Inc.*		1,100		30,063
Vantage Drilling Co.*		9,090		16,726
Willbros Group, Inc.*		2,017		19,000
				1,065,595
Packaging and Containers — 0.2%
AEP Industries, Inc.*		138		7,291
Berry Plastics Group, Inc.*		2,100		49,959
Graphic Packaging Holding Co.*		7,887		75,715

140

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Packaging and Containers — (continued)
UFP Technologies, Inc.*		200	$	5,044
				138,009
Pharmaceuticals — 3.3%
ACADIA Pharmaceuticals, Inc.*		2,600		64,974
AcelRx Pharmaceuticals, Inc.*		900		10,179
Achillion Pharmaceuticals, Inc.*		3,300		10,956
Aegerion Pharmaceuticals, Inc.*		1,100		78,056
Agios Pharmaceuticals, Inc.*		400		9,580
Akorn, Inc.*		2,413		59,432
Amicus Therapeutics, Inc.*		500		1,175
Ampio Pharmaceuticals, Inc.*		600		4,278
Anacor Pharmaceuticals, Inc.*		1,000		16,780
Anika Therapeutics, Inc.*		500		19,080
Antares Pharma, Inc.*		5,200		23,296
Aratana Therapeutics, Inc.*		400		7,640
Array BioPharma, Inc.*		3,948		19,780
Auxilium Pharmaceuticals, Inc.*		2,165		44,902
AVANIR Pharmaceuticals, Inc., Class A*		5,777		19,411
BioDelivery Sciences International, Inc.*		1,200		7,068
BioScrip, Inc.*		2,011		14,881
Cadence Pharmaceuticals, Inc.*		2,414		21,847
Cempra, Inc.*		1,200		14,868
ChemoCentryx, Inc.*		1,000		5,790
Chimerix, Inc.*		400		6,044
Clovis Oncology, Inc.*		600		36,162
Corcept Therapeutics, Inc.*		700		2,254
Cornerstone Therapeutics, Inc.*		127		1,205
Cytori Therapeutics, Inc.*		810		2,082
Depomed, Inc.*		2,583		27,328
Derma Sciences, Inc.*		700		7,574
Dyax Corp.*		5,020		37,801
Endocyte, Inc.*		1,500		16,035
Furiex Pharmaceuticals, Inc.*		200		8,402
Hi-Tech Pharmacal Co, Inc.*		455		19,743
Hyperion Therapeutics, Inc.*		400		8,088
Idenix Pharmaceuticals, Inc.*		4,793		28,662
Impax Laboratories, Inc.*		2,837		71,322
Infinity Pharmaceuticals, Inc.*		1,828		25,245
Insys Therapeutics, Inc.*		200		7,742
Ironwood Pharmaceuticals, Inc.*		3,561		41,343
Isis Pharmaceuticals, Inc.*		4,310		171,710
Keryx Biopharmaceuticals, Inc.*		3,500		45,325
Lannett Co, Inc.*		797		26,381
Lifevantage Corp.*		4,600		7,590
MannKind Corp.*		5,504		28,676
Natural Grocers By Vitamin Cottage, Inc.*		400		16,980
Nature’s Sunshine Products, Inc.		200		3,464
Nektar Therapeutics*		4,333		49,180
Neogen Corp.*		1,302		59,501
Neurocrine Biosciences, Inc.*		2,777		25,937
Nutraceutical International Corp.*		196		5,249
Omega Protein Corp.*		500		6,145
Ophthotech Corp.*		300		9,705
Opko Health, Inc.*		7,176		60,565
Orexigen Therapeutics, Inc.*		4,188		23,578

	Number of Shares		Value†
Pharmaceuticals — (continued)
Osiris Therapeutics, Inc.*		773	$	12,430
Pacira Pharmaceuticals, Inc.*		1,100		63,239
PharMerica Corp.*		1,420		30,530
Portola Pharmaceuticals, Inc.*		400		10,300
Pozen, Inc.*		302		2,428
Progenics Pharmaceuticals, Inc.*		2,601		13,863
Questcor Pharmaceuticals, Inc.		2,036		110,860
Raptor Pharmaceutical Corp.*		2,600		33,852
Receptos, Inc.*		400		11,596
Repros Therapeutics, Inc.*		900		16,470
Sagent Pharmaceuticals, Inc.*		700		17,766
Santarus, Inc.*		2,097		67,020
Sarepta Therapeutics, Inc.*		1,400		28,518
Sciclone Pharmaceuticals, Inc.*		2,277		11,476
SIGA Technologies, Inc.*		685		2,240
Star Scientific, Inc.*		8,244		9,563
Sucampo Pharmaceuticals, Inc., Class A*		171		1,607
Synageva BioPharma Corp.*		700		45,304
Synergy Pharmaceuticals, Inc.*		4,300		24,209
Synta Pharmaceuticals Corp.*		1,921		10,066
Synutra International, Inc.*		311		2,762
Targacept, Inc.*		703		2,918
TESARO, Inc.*		600		16,944
Tetraphase Pharmaceuticals, Inc.*		900		12,168
TherapeuticsMD, Inc.*		3,200		16,672
Threshold Pharmaceuticals, Inc.*		2,000		9,340
USANA Health Sciences, Inc.*		224		16,930
Vanda Pharmaceuticals, Inc.*		1,241		15,401
ViroPharma, Inc.*		2,578		128,513
Vivus, Inc.*		3,770		34,232
XenoPort, Inc.*		1,927		11,080
Zogenix, Inc.*		2,800		9,632
				2,140,920
Pipelines — 0.3%
Crosstex Energy, Inc.		1,964		71,018
Primoris Services Corp.		1,290		40,158
SemGroup Corp.		1,600		104,368
				215,544
Private Equity — 0.1%
Fidus Investment Corp.		665		14,457
Gladstone Investment Corp.		879		7,085
GSV Capital Corp.*		1,000		12,090
Hercules Technology Growth Capital, Inc.		2,479		40,655
				74,287
Real Estate — 0.3%
Alexander & Baldwin, Inc.		1,600		66,768
AV Homes, Inc.*		195		3,543
Consolidated-Tomoka Land Co.		124		4,500
Forestar Group, Inc.*		1,163		24,737
HFF, Inc., Class A*		1,400		37,590
Kennedy-Wilson Holdings, Inc.		2,281		50,752
RE/MAX Holdings, Inc.*		400		12,828
				200,718

141

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Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — 6.2%
Aeropostale, Inc.*		3,184	$	28,943
AFC Enterprises*		959		36,922
America’s Car-Mart, Inc.*		227		9,586
ANN, Inc.*		1,785		65,260
Asbury Automotive Group, Inc.*		1,249		67,121
Barnes & Noble, Inc.*		1,400		20,930
bebe Stores, Inc.		1,517		8,070
Big 5 Sporting Goods Corp.		581		11,515
Biglari Holdings, Inc.*		59		29,892
BJ’s Restaurants, Inc.*		820		25,469
Bloomin’ Brands, Inc.*		2,100		50,421
Bob Evans Farms, Inc.		1,042		52,715
Body Central Corp.*		500		1,970
Bravo Brio Restaurant Group, Inc.*		500		8,135
Brown Shoe Co., Inc.		1,654		46,544
Buffalo Wild Wings, Inc.*		747		109,958
Burlington Stores, Inc.*		600		19,200
Carrols Restaurant Group, Inc.*		1,713		11,323
Casey’s General Stores, Inc.		1,440		101,160
Cash America International, Inc.		1,125		43,088
CEC Entertainment, Inc.		772		34,184
Christopher & Banks Corp.*		1,500		12,810
Chuy’s Holdings, Inc.*		600		21,612
Citi Trends, Inc.*		903		15,351
Conn’s, Inc.*		804		63,347
Container Store Group, Inc. (The)*		600		27,966
Cracker Barrel Old Country Store, Inc.		724		79,691
Del Frisco’s Restaurant Group, Inc.*		400		9,428
Denny’s Corp.*		3,552		25,539
Destination Maternity Corp.		578		17,271
Destination XL Group, Inc.*		1,500		9,855
DineEquity, Inc.		671		56,062
Einstein Noah Restaurant Group, Inc.		84		1,218
Express, Inc.*		3,154		58,885
Ezcorp, Inc., Class A*		1,766		20,645
Fiesta Restaurant Group, Inc.*		813		42,471
Fifth & Pacific Cos., Inc.*		4,571		146,592
First Cash Financial Services, Inc.*		1,162		71,858
Five Below, Inc.*		1,200		51,840
Francesca’s Holdings Corp.*		1,658		30,524
Fred’s, Inc., Class A		1,431		26,502
Genesco, Inc.*		895		65,389
Gordmans Stores, Inc.		200		1,534
Group 1 Automotive, Inc.		807		57,313
Haverty Furniture Cos., Inc.		950		29,735
hhgregg, Inc.*		662		9,248
Hibbett Sports, Inc.*		955		64,186
HSN, Inc.		1,279		79,682
Ignite Restaurant Group, Inc.*		300		3,750
Jack in the Box, Inc.*		1,814		90,736
Jamba, Inc.*		940		11,684
Jos. A. Bank Clothiers, Inc.*		1,099		60,148
Kirkland’s, Inc.*		427		10,107
Krispy Kreme Doughnuts, Inc.*		2,622		50,578
Lithia Motors, Inc., Class A		894		62,061

	Number of Shares		Value†
Retail — (continued)
Luby’s, Inc.*		600	$	4,632
Lumber Liquidators Holdings, Inc.*		1,033		106,285
MarineMax, Inc.*		1,000		16,080
Mattress Firm Holding Corp.*		500		21,520
Nathan’s Famous, Inc.*		100		5,041
New York & Co., Inc.*		583		2,548
Noodles & Co.*		300		10,776
Office Depot, Inc.*		18,610		98,447
Pacific Sunwear of California, Inc.*		2,100		7,014
Papa John’s International, Inc.		1,310		59,474
PC Connection, Inc.*		165		4,100
Penske Automotive Group, Inc.		1,676		79,040
PetMed Express, Inc.		1,113		18,509
Pier 1 Imports, Inc.		3,644		84,104
Potbelly Corp.*		300		7,284
Pricesmart, Inc.		731		84,460
RadioShack Corp.*		3,900		10,140
Red Robin Gourmet Burgers, Inc.*		520		38,241
Regis Corp.		1,832		26,582
Restoration Hardware Holdings, Inc.*		700		47,110
Rite Aid Corp.*		28,272		143,056
Roundy’s, Inc.		900		8,874
Ruby Tuesday, Inc.*		2,213		15,336
Rush Enterprises, Inc., Class A*		1,235		36,618
Ruth’s Hospitality Group, Inc.		1,695		24,086
Sears Hometown and Outlet Stores, Inc.*		300		7,650
Shoe Carnival, Inc.		758		21,990
Sonic Automotive, Inc., Class A		1,534		37,552
Sonic Corp.*		2,132		43,045
Stage Stores, Inc.		1,381		30,686
Stein Mart, Inc.		1,261		16,960
Susser Holdings Corp.*		702		45,974
Systemax, Inc.*		262		2,948
Texas Roadhouse, Inc.		2,470		68,666
The Bon-Ton Stores, Inc.		500		8,140
The Buckle, Inc.		1,049		55,135
The Cato Corp., Class A		1,104		35,107
The Cheesecake Factory, Inc.		2,016		97,312
The Children’s Place Retail Stores, Inc.*		894		50,931
The Finish Line, Inc., Class A		1,793		50,509
The Men’s Wearhouse, Inc.		1,956		99,912
The Pantry, Inc.*		1,254		21,042
The Pep Boys - Manny, Moe, & Jack*		2,305		27,983
The Wet Seal, Inc., Class A*		2,604		7,109
Tile Shop Holdings, Inc.*		700		12,649
Tilly’s, Inc.*		400		4,580
Tuesday Morning Corp.*		2,029		32,383
Vera Bradley, Inc.*		800		19,232
Vitamin Shoppe, Inc.*		1,200		62,412
West Marine, Inc.*		664		9,449
Winmark Corp.		100		9,262
Zale Corp.*		1,300		20,501
Zumiez, Inc.*		703		18,278
				4,044,778

142

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Savings & Loans — 1.4%
Astoria Financial Corp.		3,201	$	44,270
Banc of California, Inc.		800		10,728
Bank Mutual Corp.		2,432		17,048
BankFinancial Corp.		609		5,578
Beneficial Mutual Bancorp, Inc.*		1,749		19,099
Berkshire Hills Bancorp, Inc.		1,102		30,051
BofI Holding, Inc.*		500		39,215
Brookline Bancorp, Inc.		3,222		30,834
Capitol Federal Financial, Inc.		5,600		67,816
Charter Financial Corp.		900		9,693
Clifton Savings Bancorp, Inc.		150		1,920
Dime Community Bancshares, Inc.		1,030		17,428
ESB Financial Corp.		232		3,294
ESSA Bancorp, Inc.		319		3,688
EverBank Financial Corp.		3,000		55,020
First Defiance Financial Corp.		300		7,791
First Financial Northwest, Inc.		600		6,222
Flagstar Bancorp, Inc.*		800		15,696
Flushing Financial Corp.		1,338		27,697
Fox Chase Bancorp, Inc.		420		7,300
Home Bancorp, Inc.*		200		3,770
Home Federal Bancorp, Inc.		253		3,770
Home Loan Servicing Solutions Ltd.		2,800		64,316
Homestreet, Inc.		600		12,000
Hometrust Bancshares, Inc.*		900		14,391
Investors Bancorp, Inc.		1,865		47,707
Kearny Financial Corp.*		152		1,768
Meridian Interstate Bancorp, Inc.*		139		3,139
Meta Financial Group, Inc.		200		8,066
NASB Financial, Inc.*		200		6,040
Northfield Bancorp, Inc.		2,193		28,947
Northwest Bancshares, Inc.		3,775		55,794
OceanFirst Financial Corp.		327		5,601
Oritani Financial Corp.		1,718		27,574
Pacific Premier Bancorp, Inc.*		700		11,018
Provident Financial Holdings, Inc.		400		6,000
Provident Financial Services, Inc.		2,403		46,426
Rockville Financial, Inc.		730		10,373
Sterling Bancorp, Inc.		3,627		48,493
Territorial Bancorp, Inc.		243		5,638
United Community Financial Corp.*		1,700		6,069
United Financial Bancorp, Inc.		1,040		19,646
Westfield Financial, Inc.		784		5,849
WSFS Financial Corp.		357		27,678
				890,461
Semiconductors — 3.0%
Aeroflex Holding Corp.*		500		3,250
Alpha & Omega Semiconductor Ltd.*		400		3,084
Ambarella, Inc.*		700		23,751
Amkor Technology, Inc.*		2,511		15,392
ANADIGICS, Inc.*		1,379		2,537
Applied Micro Circuits Corp.*		2,958		39,578
ATMI, Inc.*		1,228		37,098
Axcelis Technologies, Inc.*		6,100		14,884
Brooks Automation, Inc.		2,477		25,984

	Number of Shares		Value†
Semiconductors — (continued)
Cabot Microelectronics Corp.*		961	$	43,918
Cavium, Inc.*		2,079		71,746
Ceva, Inc.*		671		10,213
Cirrus Logic, Inc.*		2,481		50,687
Cohu, Inc.		904		9,492
Cypress Semiconductor Corp.*		5,500		57,750
Diodes, Inc.*		1,399		32,960
DSP Group, Inc.*		557		5,409
Emulex Corp.*		3,706		26,535
Entegris, Inc.*		5,270		61,132
Entropic Communications, Inc.*		3,832		18,049
Exar Corp.*		1,532		18,062
FormFactor, Inc.*		2,172		13,075
Gerber Scientific, Inc.~		500		0
GSI Technology, Inc.*		359		2,384
GSl Group, Inc.*		1,500		16,860
GT Advanced Technologies, Inc*		5,299		46,207
Hittite Microwave Corp.*		1,166		71,977
Inphi Corp.*		1,100		14,190
Integrated Device Technology, Inc.*		4,793		48,841
Integrated Silicon Solution, Inc.*		1,000		12,090
Intermolecular, Inc.*		900		4,428
International Rectifier Corp.*		2,900		75,603
Intersil Corp., Class A		5,100		58,497
IXYS Corp.		566		7,341
Kopin Corp.*		1,507		6,360
Lattice Semiconductor Corp.*		3,824		21,070
LTX-Credence Corp.*		2,466		19,703
MaxLinear, Inc., Class A*		500		5,215
Micrel, Inc.		1,845		18,210
Microsemi Corp.*		3,693		92,140
MKS Instruments, Inc.		1,996		59,760
Monolithic Power Systems, Inc.*		1,567		54,312
MoSys, Inc.*		2,000		11,040
Nanometrics, Inc.*		900		17,145
Omnivision Technologies, Inc.*		1,919		33,007
Peregrine Semiconductor Corp.*		1,100		8,151
Pericom Semiconductor Corp.*		646		5,724
Photronics, Inc.*		2,192		19,794
PLX Technology, Inc.*		1,260		8,291
PMC-Sierra, Inc.*		7,700		49,511
Power Integrations, Inc.		1,095		61,123
QLogic Corp.*		3,200		37,856
Rambus, Inc.*		4,623		43,780
Richardson Electronics Ltd.		300		3,408
Rubicon Technology, Inc.*		1,123		11,174
Rudolph Technologies, Inc.*		1,654		19,418
Semtech Corp.*		2,809		71,012
Sigma Designs, Inc.*		777		3,667
Silicon Image, Inc.*		2,739		16,845
SunEdison, Inc.*		10,700		139,635
Supertex, Inc.*		389		9,744
Tessera Technologies, Inc.		2,123		41,844
TriQuint Semiconductor, Inc.*		6,177		51,516
Ultra Clean Holdings*		400		4,012

143

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Semiconductors — (continued)
Ultratech, Inc.*		978	$	28,362
Veeco Instruments, Inc.*		1,693		55,717
				1,971,550
Software — 5.0%
Accelrys, Inc.*		2,566		24,480
ACI Worldwide, Inc.*		1,509		98,085
Actuate Corp.*		1,940		14,957
Acxiom Corp.*		2,767		102,324
Advent Software, Inc.		1,335		46,712
American Software, Inc., Class A		593		5,853
Aspen Technology, Inc.*		3,553		148,515
athenahealth, Inc.*		1,456		195,832
Audience, Inc.*		400		4,656
AVG Technologies NV*		900		15,489
Avid Technology, Inc.*		749		6,104
Benefitfocus, Inc.*		200		11,548
Blackbaud, Inc.		1,750		65,888
Bottomline Technologies, Inc.*		1,345		48,635
Callidus Software, Inc.*		2,000		27,460
CommVault Systems, Inc.*		1,848		138,378
Computer Programs & Systems, Inc.		447		27,629
Cornerstone OnDemand, Inc.*		1,500		80,010
CSG Systems International, Inc.		1,281		37,661
Cvent, Inc.*		300		10,917
Demandware, Inc.*		600		38,472
Digi International, Inc.*		657		7,963
Digital River, Inc.*		1,388		25,678
E2open, Inc.*		600		14,346
Ebix, Inc.		1,336		19,666
Envestnet, Inc.*		900		36,270
EPAM Systems, Inc.*		800		27,952
Epiq Systems, Inc.		1,168		18,933
Fair Isaac Corp.		1,388		87,222
Fleetmatics Group PLC*		600		25,950
Glu Mobile, Inc.*		1,100		4,279
Guidance Software, Inc.*		400		4,040
Guidewire Software, Inc.*		1,900		93,233
Imperva Inc*		800		38,504
inContact, Inc.*		2,100		16,401
Infoblox, Inc.*		1,900		62,738
InnerWorkings, Inc.*		1,724		13,430
Interactive Intelligence Group, Inc.*		597		40,214
Jive Software, Inc.*		1,500		16,875
Luxoft Holding, Inc.*		300		11,394
ManTech International Corp., Class A		1,039		31,097
MedAssets, Inc.*		2,448		48,544
Medidata Solutions, Inc.*		2,088		126,470
MicroStrategy, Inc., Class A*		318		39,508
Model N, Inc.*		300		3,537
Monotype Imaging Holdings, Inc.		1,599		50,944
Omnicell, Inc.*		1,435		36,636
PDF Solutions, Inc.*		1,200		30,744
Pegasystems, Inc.		630		30,983
Progress Software Corp.*		1,986		51,298
Proofpoint, Inc.*		800		26,536

	Number of Shares		Value†
Software — (continued)
PROS Holdings, Inc.*		917	$	36,588
PTC, Inc.*		4,525		160,140
QAD, Inc.		92		1,625
Qlik Technologies, Inc.*		3,441		91,634
Quality Systems, Inc.		1,704		35,886
Rally Software Development Corp.*		300		5,835
RealPage, Inc.*		2,000		46,760
Rocket Fuel, Inc.*		200		12,298
Rosetta Stone, Inc.*		202		2,468
Schawk, Inc.		887		13,190
SciQuest, Inc.*		700		19,936
Seachange International, Inc.*		1,273		15,480
SS&C Technologies Holdings, Inc.*		2,200		97,372
Synchronoss Technologies, Inc.*		1,146		35,606
SYNNEX Corp.*		994		66,996
Take-Two Interactive Software, Inc.*		2,944		51,137
Tangoe, Inc.*		1,069		19,253
The Ultimate Software Group, Inc.*		1,116		170,994
Tyler Technologies, Inc.*		1,252		127,867
Verint Systems, Inc.*		1,995		85,665
				3,287,720
Storage & Warehousing — 0.1%
Mobile Mini, Inc.		1,477		60,823
Wesco Aircraft Holdings, Inc.*		1,540		33,757
				94,580
Telecommunications — 3.0%
8X8, Inc.*		2,800		28,448
ADTRAN, Inc.		2,205		59,557
Alliance Fiber Optic Products, Inc.		600		9,030
Anaren, Inc.*		312		8,733
Anixter International, Inc.		1,034		92,895
ARRIS Group, Inc.*		4,681		114,053
Aruba Networks, Inc.*		4,213		75,413
Atlantic Tele-Network, Inc.		449		25,400
Aviat Networks, Inc.*		1,462		3,304
Black Box Corp.		562		16,748
CalAmp Corp.*		1,400		39,158
Calix, Inc.*		1,487		14,335
Cbeyond, Inc.*		568		3,919
Ciena Corp.*		3,900		93,327
Cincinnati Bell, Inc.*		7,785		27,715
Comtech Telecommunications Corp.		552		17,399
Comverse, Inc.*		990		38,412
Consolidated Communications Holdings, Inc.		1,745		34,254
DigitalGlobe, Inc.*		2,769		113,944
EarthLink, Inc.		4,016		20,361
Extreme Networks, Inc.*		3,147		22,029
Fairpoint Communications, Inc.*		600		6,786
Finisar Corp.*		3,821		91,398
General Communication, Inc., Class A*		986		10,994
Gigamon, Inc.*		400		11,232
Gogo Inc*		600		14,886
Harmonic, Inc.*		4,270		31,513

144

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Telecommunications — (continued)
Hawaiian Telcom Holdco, Inc.*		500	$	14,685
HickoryTech Corp.		400		5,132
IDT Corp., Class B		800		14,296
Infinera Corp.*		4,694		45,907
Inteliquent, Inc.		926		10,575
InterDigital, Inc.		1,494		44,058
Iridium Communications, Inc.*		2,500		15,650
Ixia*		2,113		28,124
KVH Industries, Inc.*		354		4,613
Leap Wireless International, Inc.*		2,300		40,020
LogMeIn, Inc.*		1,081		36,268
Loral Space & Communications, Inc.*		546		44,215
Lumos Networks Corp		782		16,422
MagicJack VocalTec Ltd.*		700		8,344
Neonode, Inc.*		1,600		10,112
NeoPhotonics Corp.*		300		2,118
NETGEAR, Inc.*		1,629		53,659
NII Holdings, Inc.*		6,500		17,875
NTELOS Holdings Corp		382		7,728
Numerex Corp.*		800		10,360
Oplink Communications, Inc.*		635		11,811
ORBCOMM, Inc.*		1,000		6,340
Parkervision, Inc.*		4,100		18,655
Plantronics, Inc.		1,767		82,077
Preformed Line Products Co.		45		3,292
Premiere Global Services, Inc.*		1,656		19,193
Procera Networks, Inc.*		700		10,514
RF Micro Devices, Inc.*		10,551		54,443
RigNet, Inc.*		500		23,965
Ruckus Wireless, Inc.*		1,700		24,140
Shenandoah Telecommunications Co.		1,159		29,751
ShoreTel, Inc.*		2,281		21,168
Sonus Networks, Inc.*		9,215		29,027
Straight Path Communications, Inc.*		400		3,276
Telenav, Inc.*		300		1,977
Tessco Technologies, Inc.		200		8,064
Ubiquiti Networks, Inc.*		600		27,576
USA Mobility, Inc.		1,112		15,879
ViaSat, Inc.*		1,562		97,859
Vonage Holdings Corp.*		6,100		20,313
Vringo, Inc.*		2,800		8,288
West Corp.		800		20,568
Westell Technologies, Inc.*		1,400		5,670
				1,999,250
Textiles — 0.2%
Culp, Inc.		300		6,135
G&K Services, Inc., Class A		776		48,290
UniFirst Corp.		577		61,739
				116,164
Toys, Games & Hobbies — 0.0%
JAKKS Pacific, Inc.		584		3,930
LeapFrog Enterprises, Inc.*		2,776		22,042
				25,972

	Number of Shares		Value†
Transportation — 1.7%
Air Transport Services Group, Inc.*		2,085	$	16,868
Arkansas Best Corp.		995		33,512
Atlas Air Worldwide Holdings, Inc.*		1,048		43,125
Bristow Group, Inc.		1,450		108,837
CAI International, Inc.*		860		20,270
Celadon Group, Inc.		935		18,214
Echo Global Logistics, Inc.*		500		10,740
Era Group, Inc.*		800		24,688
Forward Air Corp.		1,196		52,516
Frontline Ltd.*		1,200		4,488
GasLog Ltd.		1,100		18,799
Gulfmark Offshore, Inc., Class A		979		46,140
Heartland Express, Inc.		1,967		38,593
Hub Group, Inc., Class A*		1,343		53,559
International Shipholding Corp.		141		4,159
Knight Transportation, Inc.		2,264		41,522
Knightsbridge Tankers Ltd.		574		5,275
Marten Transport Ltd.		1,151		23,239
Matson, Inc.		1,600		41,776
Nordic American Tankers Ltd.		2,667		25,870
Pacer International, Inc.*		687		5,675
Patriot Transportation Holding, Inc.*		369		15,317
PHI, Inc.*		593		25,736
Quality Distribution, Inc.*		400		5,132
Roadrunner Transportation Systems, Inc.*		800		21,560
Saia, Inc.*		961		30,800
Scorpio Tankers, Inc.		7,100		83,709
Ship Finance International Ltd.		2,284		37,412
Swift Transportation Co.*		3,300		73,293
Teekay Tankers Ltd., Class A		3,193		12,548
Universal Truckload Services, Inc.		100		3,051
UTi Worldwide, Inc.		3,400		59,704
Werner Enterprises, Inc.		1,752		43,327
XPO Logistics, Inc.*		1,100		28,919
YRC Worldwide, Inc.*		400		6,948
				1,085,321
Trucking and Leasing — 0.2%
Greenbrier Cos., Inc.*		1,047		34,383
TAL International Group, Inc.*		1,293		74,154
Textainer Group Holdings Ltd.		812		32,659
				141,196
Water — 0.2%
American States Water Co.		1,524		43,784
Artesian Resources Corp., Class A		113		2,593
California Water Service Group		1,766		40,742
Connecticut Water Service, Inc.		319		11,328
Consolidated Water Co., Inc.		312		4,399
Middlesex Water Co.		531		11,119
PICO Holdings, Inc.*		792		18,303
SJW Corp.		488		14,538
York Water Co.		297		6,216
				153,022
TOTAL COMMON STOCKS (Cost $39,908,047)				59,932,971

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — 7.0%
Apartments — 0.2%
American Residential Properties, Inc.*		600	$	10,296
Associated Estates Realty Corp.		2,156		34,604
Campus Crest Communities, Inc.		2,300		21,643
Education Realty Trust, Inc.		4,005		35,324
Silver Bay Realty Trust Corp.		637		10,185
				112,052
Building & Real Estate — 1.3%
Agree Realty Corp.		596		17,296
Altisource Residential Corp.		1,600		48,176
Anworth Mortgage Asset Corp.		5,431		22,865
Apollo Commercial Real Estate Finance, Inc.		1,600		26,000
Ares Commercial Real Estate Corp.		1,000		13,100
Capstead Mortgage Corp.		3,475		41,978
Colony Financial, Inc.		2,616		53,079
CYS Investments, Inc.		6,756		50,062
Dynex Capital, Inc.		2,307		18,456
Getty Realty Corp.		1,163		21,364
Gramercy Property Trust, Inc.*		1,500		8,625
Invesco Mortgage Capital, Inc.		5,007		73,503
iStar Financial, Inc.*		3,318		47,348
New York Mortgage Trust, Inc.		2,400		16,776
NorthStar Realty Finance Corp.		11,221		150,922
PennyMac Mortgage Investment Trust		2,692		61,808
Redwood Trust, Inc.		2,977		57,664
Resource Capital Corp.		4,700		27,871
Select Income REIT		900		24,066
Sun Communities, Inc.		1,390		59,270
				840,229
Diversified — 0.7%
AG Mortgage Investment Trust, Inc		1,188		18,580
Armada Hoffler Properties, Inc.		800		7,424
CoreSite Realty Corp.		700		22,533
DuPont Fabros Technology, Inc.		2,450		60,539
EPR Properties		2,010		98,812
New Residential Investment Corp.		9,500		63,460
PS Business Parks, Inc.		665		50,819
STAG lndustrial, Inc.		1,600		32,624
The Geo Group, Inc.		2,768		89,185
UMH Properties, Inc.		168		1,583
Whitestone REIT		800		10,696
				456,255
Diversified Financial Services — 0.2%
American Capital Mortgage. Inc.		2,043		35,671
Apollo Residential Mortgage, Inc.		1,332		19,687
ARMOUR Residential REIT, Inc.		15,700		62,957
JAVELIN Mortgage Investment Corp.		200		2,786
RAIT Financial Trust,Inc.		2,706		24,273
Western Asset Mortgage Capital Corp.		1,000		14,880
				160,254
Forest Products & Paper — 0.1%
Potlatch Corp.		1,578		65,866

	Number of Shares		Value†
Healthcare — 0.5%
Aviv REIT, Inc.		500	$	11,850
Healthcare Realty Trust, Inc.		3,672		78,250
LTC Properties, Inc.		1,317		46,609
Medical Properties Trust, Inc.		6,607		80,738
National Health Investors, Inc.		1,057		59,298
Physicians Realty Trust		700		8,918
Sabra Healthcare REIT, Inc.		1,488		38,896
Universal Health Realty Income Trust		520		20,831
				345,390
Hotels & Resorts — 1.3%
Ashford Hospitality Prime, Inc.		464		8,445
Ashford Hospitality Trust, Inc.		2,320		19,209
Chatham Lodging Trust		700		14,315
Chesapeake Lodging Trust		2,089		52,831
DiamondRock Hospitality Co.		7,523		86,891
FelCor Lodging Trust, Inc.		5,018		40,947
Hersha Hospitality Trust		7,669		42,716
LaSalle Hotel Properties		4,017		123,965
Pebblebrook Hotel Trust		2,409		74,101
RLJ Lodging Trust		5,000		121,600
Ryman Hospitality Properties		1,612		67,349
Strategic Hotels & Resorts, Inc.*		6,812		64,373
Summitt Hotel Properties		2,700		24,300
Sunstone Hotel Investors, Inc.		7,032		94,229
				835,271
Industrial — 0.6%
Chambers Street Properties*		9,300		71,145
DCT Industrial Trust, Inc.		11,682		83,293
EastGroup Properties, Inc.		1,175		68,068
First Industrial Realty Trust, Inc.		4,029		70,306
First Potomac Realty Trust		2,392		27,819
Monmouth Real Estate Investment Corp., Class A		2,049		18,625
QTS Realty Trust, Inc.		500		12,390
Rexford Industrial Realty, Inc.		900		11,880
Terreno Realty Corp.		1,175		20,797
				384,323
Mixed Industrial/Office — 0.4%
Cousins Properties, Inc.		6,461		66,548
Gladstone Commercial Corp.		652		11,717
Investors Real Estate Trust		3,618		31,043
Lexington Realty Trust		6,815		69,581
One Liberty Properties, Inc.		503		10,125
Washington Real Estate Investment Trust		2,806		65,548
Winthrop Realty Trust		777		8,586
				263,148
Office Property — 0.7%
American Assets Trust, Inc.		1,400		44,002
American Realty Capital Properties, Inc.		5,800		74,588
Empire State Realty Trust, Inc.		3,200		48,960
Franklin Street Properties Corp.		3,245		38,778
Government Properties Income Trust		2,244		55,764

146

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Office Property — (continued)
Highwoods Properties, Inc.		3,460	$	125,148
Hudson Pacific Properties, Inc.		1,900		41,553
Parkway Properties, Inc.		2,380		45,910
				474,703
Regional Malls — 0.2%
Glimcher Realty Trust		5,816		54,438
Pennsylvania Real Estate Investment Trust		2,715		51,530
Rouse Properties, Inc.		1,000		22,190
				128,158
Storage & Warehousing — 0.3%
CubeSmart		5,425		86,474
Sovran Self Storage, Inc.		1,282		83,548
				170,022
Strip Centers — 0.5%
Acadia Realty Trust		2,120		52,640
Alexander’s, Inc.		57		18,810
AmREIT, Inc.		700		11,760
Cedar Realty Trust, Inc.		2,826		17,691
Equity One, Inc.		2,454		55,068
Excel Trust, Inc.		1,500		17,085
Inland Real Estate Corp.		2,988		31,434
Kite Realty Group Trust		5,007		32,896
Ramco-Gershenson Properties Trust		2,141		33,699
Retail Opportunity Investments Corp.		2,500		36,800
Saul Centers, Inc.		251		11,980
Urstadt Biddle Properties, Inc., Class A		816		15,055
				334,918
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,984,478)				4,570,589
RIGHTS — 0.0%
Exco Resources, Inc.* (Cost $0)		5,100		816
	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U.S. Treasury Bill 0.050%, 02/20/14+ (Cost $44,997)	$	45		44,998
	Number of Shares		Value†
WARRANTS — 0.0%
Clinical Data, Inc.~		354		0
Magnum Hunter Resources Corp.~		780		0
Tejon Ranch Co.		102	$	546
TOTAL WARRANTS (Cost $613)				546

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,051,216)		1,051,216	$	1,051,216
TOTAL INVESTMENTS — 100.0% (Cost $44,989,351)			$	65,601,136

† See Security Valuation Note.

~ Fair valued security. The total market value of fair valued securities at December 31, 2013 is $62.

* Non-income producing security.

+ Collateral pledge for derivatives

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Advertising	$	87,060	$	87,060	$	—	$	—
Aerospace & Defense		985,927		985,927		—		—
Agriculture		210,778		210,778		—		—
Airlines		321,819		321,819		—		—
Apparel		683,155		683,155		—		—
Auto Manufacturers		38,285		38,285		—		—
Auto Parts & Equipment		673,455		673,455		—		—
Banks		4,699,899		4,699,899		—		—
Beverages		108,808		108,808		—		—
Biotechnology		1,561,980		1,561,980		—		—
Building Materials		756,459		756,459		—		—
Chemicals		1,340,637		1,340,637		—		—
Coal		246,800		246,800		—		—
Commercial Services		3,980,529		3,980,529		—		—
Computers		1,180,811		1,180,811		—		—
Cosmetics & Personal Care		72,519		72,519		—		—
Distribution & Wholesale		652,649		652,649		—		—
Diversified Financial Services		1,687,936		1,687,874		62		—
Electric		1,252,595		1,252,595		—		—
Electrical Components & Equipment		1,019,117		1,019,117		—		—
Electronics		1,416,347		1,416,347		—		—
Energy-Alternate Sources		156,313		156,313		—		—
Engineering & Construction		498,835		498,835		—		—
Entertainment		445,484		445,484		—		—
Environmental Control		397,803		397,803		—		—
Food		1,328,098		1,328,098		—		—
Forest Products & Paper		383,783		383,783		—		—
Gas		562,264		562,264		—		—
Hand & Machine Tools		86,248		86,248		—		—
Healthcare Products		2,413,018		2,413,018		—		—

147

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Schedule of Investments — December 31, 2013

Small Cap Index Fund

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS (continued)
Healthcare Services	$	1,090,747	$	1,090,747	$	—	$	—
Holding Companies		71,454		71,454		—		—
Home Builders		458,217		458,217		—		—
Home Furnishings		387,394		387,394		—		—
Hotels & Resorts		28,002		28,002		—		—
Household Products & Wares		332,683		332,683		—		—
Housewares		26,570		26,570		—		—
Insurance		1,790,865		1,790,865		—		—
Internet		1,773,044		1,773,044		—		—
Investment Companies		663,786		663,786		—		—
Iron & Steel		167,111		167,111		—		—
Leisure Time		406,765		406,765		—		—
Lodging		112,048		112,048		—		—
Machinery —Construction & Mining		68,327		68,327		—		—
Machinery — Diversified		898,106		898,106		—		—
Media		587,529		587,529		—		—
Metal Fabricate/Hardware		569,199		569,199		—		—
Mining		447,258		447,258		—		—
Miscellaneous Manufacturing		1,202,567		1,202,567		—		—
Office Furnishings		271,072		271,072		—		—
Oil & Gas		1,685,729		1,685,729		—		—
Oil & Gas Services		1,065,595		1,065,595		—		—
Packaging and Containers		138,009		138,009		—		—
Pharmaceuticals		2,140,920		2,140,920		—		—
Pipelines		215,544		215,544		—		—
Private Equity		74,287		74,287		—		—
Real Estate		200,718		200,718		—		—
Retail		4,044,778		4,044,778		—		—
Savings & Loans		890,461		890,461		—		—
Semiconductors		1,971,550		1,971,550		—		—
Software		3,287,720		3,287,720		—		—
Storage & Warehousing		94,580		94,580		—		—
Telecommunications		1,999,250		1,999,250		—		—
Textiles		116,164		116,164		—		—
Toys, Games & Hobbies		25,972		25,972		—		—
Transportation		1,085,321		1,085,321		—		—
Trucking and Leasing		141,196		141,196		—		—
Water		153,022		153,022		—		—
REAL ESTATE INVESTMENT TRUSTS		4,570,589		4,570,589		—		—
U.S. TREASURY OBLIGATIONS		44,998		—		44,998		—
RIGHTS		816		—		816		—
WARRANTS		546		546		—		—
SHORT-TERM INVESTMENTS		1,051,216		1,051,216		—		—
TOTAL INVESTMENTS	$	65,601,136	$	65,555,260	$	45,876	$	—

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.

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Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — 97.5%
Australia — 7.3%
AGL Energy Ltd.		4,144	$	55,613
ALS Ltd.		2,543		20,004
Alumina Ltd.		15,015		14,949
Amcor Ltd.		9,713		91,497
AMP Ltd.		22,891		89,728
APA Group		5,321		28,507
Asciano Ltd.		6,807		35,009
ASX Ltd.		1,401		45,985
Aurizon Holdings Ltd.		15,495		67,517
Australia & New Zealand Banking Group Ltd.		21,504		618,844
Bank of Queensland Ltd.		2,426		26,341
Bendigo & Adelaide Bank Ltd.		3,285		34,465
BHP Billiton Ltd.		24,523		831,848
Boral Ltd.		4,994		21,270
Brambles Ltd.		11,651		95,189
Caltex Australia Ltd.		1,064		19,048
CFS Retail Property Trust		14,452		25,099
Coca-Cola Amatil Ltd.		4,626		49,690
Cochlear Ltd.		371		19,518
Commonwealth Bank of Australia		12,308		855,005
Computershare Ltd.		3,303		33,562
Crown Ltd.		2,801		42,142
CSL Ltd.		3,695		227,517
Dexus Property Group		41,009		36,800
Echo Entertainment Group Ltd.		6,070		13,333
Federation Centres Ltd.		9,200		19,222
Flight Centre Ltd.		439		18,639
Fortescue Metals Group Ltd.		10,928		56,789
Goodman Group		13,631		57,569
GPT Group		14,881		45,176
GPT Group, In Specie*~		16,419		0
Harvey Norman Holdings Ltd.		3,095		8,733
Iluka Resources Ltd.		2,885		22,231
Incitec Pivot Ltd.		12,959		31,010
Insurance Australia Group Ltd.		16,446		85,464
Leighton Holdings Ltd.		960		13,809
Lend Lease Group		4,045		40,235
Macquarie Group Ltd.		2,236		109,749
Metcash Ltd.		5,653		15,950
Mirvac Group		26,294		39,443
National Australia Bank Ltd.		18,350		570,678
Newcrest Mining Ltd.		6,279		43,731
Orica Ltd.		2,716		57,863
Origin Energy Ltd.		8,491		106,673
Orora Ltd.*		9,713		10,060
Qantas Airways Ltd.*		6,627		6,479
QBE Insurance Group Ltd.		9,394		96,544
Ramsay Health Care Ltd.		980		37,854
REA Group Ltd.		400		13,486
Recall Holdings Ltd.*		2,330		8,447
Rio Tinto Ltd.		3,416		207,958
Santos Ltd.		7,404		96,719
Seek Ltd.		2,700		32,329
Sonic Healthcare Ltd.		2,656		39,320
SP AusNet		15,993		17,779

	Number of Shares		Value†
Australia — (continued)
Stockland		16,235	$	52,331
Suncorp Group Ltd.		10,290		120,362
Sydney Airport		8,825		29,943
Tabcorp Holdings Ltd.		6,217		20,151
Tatts Group Ltd.		12,276		33,980
Telstra Corp. Ltd.		33,844		158,651
Toll Holdings Ltd.		4,477		22,706
Transurban Group		10,981		67,065
Treasury Wine Estates Ltd.		5,165		22,229
Wesfarmers Ltd.*		7,543		296,615
Westfield Group		16,513		148,771
Westfield Retail Trust		22,788		60,432
Westpac Banking Corp.		24,394		705,279
Woodside Petroleum Ltd.		5,093		176,899
Woolworths Ltd.		9,392		283,869
WorleyParsons Ltd.		1,418		21,018
				7,528,720
Austria — 0.3%
Andritz AG		668		41,896
Erste Group Bank AG		1,965		68,474
Immoeast AG~		2,678		0
IMMOFINANZ AG*		6,387		29,593
OMV AG		1,135		54,322
Raiffeisen Bank International AG		500		17,623
Telekom Austria AG		2,544		19,263
Vienna Insurance Group AG Wiener Versicherung Gruppe		300		14,950
Voestalpine AG		1,009		48,486
				294,607
Belgium — 1.2%
Ageas		1,719		73,192
Anheuser-Busch InBev N.V.		6,123		650,795
Belgacom S.A.		1,133		33,519
Colruyt S.A.		647		36,120
Delhaize Group S.A.		732		43,503
Groupe Bruxelles Lambert S.A.		667		61,231
KBC Groep N.V.		1,898		107,707
Solvay S.A.		480		75,939
Telenet Group Holding N.V.		377		22,496
UCB S.A.		766		57,052
Umicore S.A.		773		36,109
				1,197,663
Bermuda — 0.1%
Seadrill Ltd.		2,776		113,323
China — 0.0%
Yangzijiang Shipbuilding Holdings Ltd.		19,000		17,841
Denmark — 1.1%
A.P. Moller - Maersk A/S, B Shares		10		108,524
A.P. Moller - Maersk A/S, A Shares		5		51,542
Carlsberg A/S, B Shares		775		85,750
Coloplast A/S, B Shares		770		50,976
Danske Bank A/S*		4,831		110,825

149

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Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Denmark — (continued)
DSV A/S		1,264	$	41,444
Novo Nordisk A/S, B Shares		3,030		555,405
Novozymes A/S, B Shares		1,688		71,252
TDC A/S		6,200		60,139
Tryg A/S		121		11,704
William Demant Holding A/S*		138		13,411
				1,160,972
Finland — 0.9%
Elisa OYJ		1,000		26,496
Fortum OYJ		3,198		73,164
Kone OYJ, B Shares		2,314		104,415
Metso OYJ		1,133		48,350
Neste Oil OYJ		812		16,052
Nokia OYJ*		29,091		232,920
Nokian Renkaat OYJ		765		36,698
Orion OYJ, B Shares		750		21,069
Pohjola Bank PLC, A Shares		1,500		30,169
Sampo OYJ, A Shares		3,107		152,678
Stora Enso OYJ, R Shares		3,659		36,721
UPM-Kymmene OYJ		3,715		62,760
Wartsila OYJ Abp		1,483		72,977
				914,469
France — 9.2%
Accor S.A.		1,114		52,566
Aeroports de Paris		215		24,402
Air Liquide S.A.		2,352		332,626
Alcatel-Lucent*		21,121		94,665
Alstom S.A.		1,487		54,159
Arkema S.A.		505		58,906
AtoS S.A.		511		46,249
AXA S.A.		13,612		378,454
BNP Paribas S.A.		7,541		587,698
Bouygues S.A.		1,281		48,322
Bureau Veritas S.A.		1,772		51,790
Cap Gemini S.A.		1,053		71,171
Carrefour S.A.		4,734		187,628
Casino Guichard Perrachon S.A.		373		42,986
Christian Dior S.A.		408		77,093
Cie Generale de Geophysique - Veritas*		1,240		21,460
CNP Assurances		1,617		33,145
Compagnie de Saint-Gobain		3,044		167,401
Compagnie Generale des Establissements Michelin, B Shares		1,396		148,357
Credit Agricole S.A.*		7,130		91,271
Danone S.A.		4,424		318,426
Dassault Systemes S.A.		484		60,079
Edenred		1,643		54,993
Electricite de France S.A.		1,622		57,313
Essilor International S.A.		1,615		171,698
Eurazeo S.A.		129		10,112
Eutelsat Communications S.A.		1,230		38,352
Fonciere Des Regions		262		22,617
GDF Suez		10,001		235,200
Gecina S.A.		190		25,101

	Number of Shares		Value†
France — (continued)
Groupe Eurotunnel S.A.		3,588	$	37,711
ICADE		313		29,138
Iliad S.A.		177		36,257
Imerys S.A.		213		18,522
JCDecaux S.A.		400		16,492
Kering		567		119,851
Klepierre		874		40,502
L’Oreal S.A.		1,835		322,368
Lafarge S.A.		1,428		107,007
Lagardere S.C.A.		672		24,979
Legrand S.A.		2,075		114,355
LVMH Moet Hennessy Louis Vuitton S.A.		1,969		359,182
Natixis		6,160		36,219
Orange S.A.		14,564		180,322
Pernod Ricard S.A.		1,689		192,415
Publicis Groupe S.A.		1,342		122,791
Remy Cointreau S.A.		152		12,753
Renault S.A.		1,493		120,052
Rexel S.A.		1,778		46,658
Safran S.A.		2,007		139,460
Sanofi S.A.		9,105		965,989
Schneider Electric S.A.		3,985		347,571
SCOR SE		1,035		37,825
Societe BIC S.A.		246		30,140
Societe Generale S.A.		5,297		307,662
Sodexo		663		67,166
Suez Environment Co.		2,507		44,922
Technip S.A.		838		80,537
Thales S.A.		773		49,768
Total S.A.		16,346		1,001,358
Unibail-Rodamco SE		753		192,937
Valeo S.A.		573		63,401
Vallourec S.A.		777		42,329
Veolia Environment S.A.		2,819		45,975
Vinci S.A.		3,690		242,244
Vivendi S.A.		9,237		243,410
Wendel S.A.		202		29,443
Zodiac Aerospace		230		40,738
				9,474,689
Germany — 8.5%
Adidas AG		1,595		203,275
Allianz SE		3,471		622,431
Axel Springer AG		327		21,008
BASF SE		7,004		746,650
Bayer AG		6,310		884,997
Bayerische Motoren Werke AG		2,498		292,859
Beiersdorf AG		718		72,738
Brenntag AG		380		70,443
Celesio AG		516		16,327
Commerzbank AG*		7,156		115,280
Continental AG		878		192,534
Daimler AG		7,327		634,019
Deutsche Bank AG		7,735		368,979
Deutsche Boerse AG		1,426		118,098
Deutsche Lufthansa AG*		1,458		30,929

150

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Germany — (continued)
Deutsche Post AG		7,036	$	256,506
Deutsche Telekom AG		21,723		371,464
Deutsche Wohnen AG		2,258		43,598
E.ON SE		14,054		259,368
Fraport AG Frankfurt Airport Services Worldwide		272		20,352
Fresenius Medical Care AG & Co. KGaA		1,568		111,587
Fresenius SE & Co. KGaA		934		143,396
GEA Group AG		1,255		59,737
Hannover Rueck SE		398		34,155
HeidelbergCement AG		1,060		80,422
Henkel AG & Co. KGaA		941		97,919
Hochtief AG		206		17,588
Hugo Boss AG		248		35,312
Infineon Technologies AG		7,775		83,002
K+S AG		1,330		40,939
Kabel Deutschland Holding AG		172		22,294
LANXESS AG		541		36,078
Linde AG		1,452		303,724
MAN SE		297		36,466
Merck KGaA		467		83,680
Metro AG		808		39,127
Muenchener Ruckversicherungs AG		1,406		309,769
OSRAM Licht AG*		667		37,621
RWE AG		3,801		139,119
SAP AG		7,011		600,984
Siemens AG		6,050		826,392
Sky Deutschland AG*		3,328		36,627
Suedzucker AG		700		18,894
Telefonica Deutschland Holding AG		2,349		19,389
ThyssenKrupp AG*		3,081		74,980
United Internet AG		908		38,623
Volkswagen AG		200		54,175
				8,723,854
Guernsey — 0.1%
Resolution Ltd.		10,186		59,711
Hong Kong — 2.8%
AIA Group Ltd.		91,400		458,515
ASM Pacific Technology Ltd.		1,700		14,228
Bank of East Asia Ltd.		10,645		45,096
BOC Hong Kong Holdings Ltd.		27,000		86,526
Cathay Pacific Airways Ltd.		10,000		21,150
Cheung Kong Holdings Ltd.		11,000		173,633
Cheung Kong Infrastructure Holdings Ltd.		4,000		25,250
CLP Holdings Ltd.		13,000		102,769
First Pacific Co., Ltd.		15,750		17,915
Galaxy Entertainment Group Ltd.*		16,000		143,507
Hang Lung Properties Ltd.		19,000		60,031
Hang Seng Bank Ltd.		5,600		90,778
Henderson Land Development Co., Ltd.		8,250		47,079
HKT Trust & HKT Ltd.		18,000		17,781
Hong Kong & China Gas Co., Ltd.		41,678		95,564
Hong Kong Exchanges & Clearing Ltd.		8,427		140,517
Hopewell Holdings Ltd.		3,500		11,848

	Number of Shares		Value†
Hong Kong — (continued)
Hutchison Whampoa Ltd.		16,000	$	217,479
Hysan Development Co., Ltd.		3,140		13,525
Kerry Logistics Network Ltd.*		1,754		2,493
Kerry Properties Ltd.		3,509		12,173
Li & Fung Ltd.		50,000		64,480
MGM China Holdings Ltd.		4,800		20,489
MTR Corp., Ltd.		9,264		35,064
New World Development Co., Ltd.		24,938		31,485
Noble Group Ltd.		38,270		32,449
NWS Holdings Ltd.		11,948		18,212
PCCW Ltd.		32,000		14,320
Power Assets Holdings Ltd.		11,500		91,430
Sands China Ltd.		18,000		147,054
Shangri-La Asia Ltd.		8,666		16,898
Sino Land Co., Ltd.		28,212		38,565
SJM Holdings Ltd.		17,000		57,001
Sun Hung Kai Properties Ltd.		13,027		165,225
Swire Pacific Ltd., A Shares		5,000		58,613
Swire Properties Ltd.		9,336		23,598
The Link REIT		16,676		80,861
Wharf Holdings Ltd.		11,000		84,121
Wheelock & Co., Ltd.		7,000		32,182
Yue Yuen Industrial Holdings Ltd.		7,000		23,381
				2,833,285
Ireland — 0.6%
Anglo Irish Bank Corp. PLC*~		3,146		0
Bank of Ireland*		177,465		61,523
CRH PLC*		5,642		142,040
Experian PLC		7,502		138,392
James Hardie Industries PLC		3,154		36,442
Kerry Group PLC, A Shares		1,174		81,561
Ryanair Holdings PLC ADR*		59		2,769
Shire PLC		4,169		196,893
				659,620
Israel — 0.4%
The Israel Corp., Ltd.*		16		8,419
Bank Hapoalim BM		8,292		46,451
Bank Leumi Le-Israel BM*		8,330		34,021
Bezeq The Israeli Telecommunication Corp., Ltd.*		10,597		17,962
Delek Group Ltd.		36		13,749
Israel Chemicals Ltd.		3,410		28,413
Mizrahi Tefahot Bank Ltd.		783		10,248
NICE Systems Ltd.		400		16,382
Teva Pharmaceutical Industries Ltd.		6,654		266,007
				441,652
Italy — 2.0%
Assicurazioni Generali SpA		8,727		205,299
Atlantia SpA		2,305		51,719
Banca Monte dei Paschi di Siena SpA*		33,709		8,134
Enel Green Power SpA		11,018		27,753
Enel SpA		52,111		227,542
Eni SpA		19,328		465,053

151

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Italy — (continued)
Exor SpA		848	$	33,726
Fiat SpA*		6,118		50,037
Finmeccanica SpA*		2,436		18,448
Intesa Sanpaolo SpA		86,825		214,285
Luxottica Group SpA		1,314		70,409
Mediobanca SpA*		3,061		26,782
Pirelli & C. SpA		1,674		28,971
Prysmian SpA		1,369		35,237
Saipem SpA		2,015		43,133
Snam Rete Gas SpA		17,071		95,489
Telecom Italia SpA		73,498		72,901
Telecom Italia SpA, RSP		55,911		43,766
Terna Rete Elettrica Nasionale SpA		11,628		58,100
UniCredit SpA		33,558		248,373
Unione di Banche Italiane SCPA		6,094		41,381
				2,066,538
Japan — 20.7%
ABC-Mart, Inc.		200		8,727
Acom Co., Ltd.*		3,200		10,848
Advantest Corp.		1,200		14,893
Aeon Co., Ltd.		4,900		66,304
AEON Financial Service Co., Ltd.		700		18,745
Aeon Mall Co., Ltd.		710		19,896
Air Water, Inc.		1,000		13,522
Aisin Seiki Co., Ltd.		1,400		56,766
Ajinomoto Co., Inc.		5,000		72,263
Alfresa Holdings Corp.		400		19,827
Amada Co., Ltd.		3,000		26,408
ANA Holdings, Ltd.		11,000		21,935
Aozora Bank Ltd.		10,000		28,297
Asahi Glass Co., Ltd.		7,000		43,472
Asahi Group Holdings Ltd.		3,200		90,066
Asahi Kasei Corp.		9,000		70,421
Asics Corp.		1,000		17,045
Astellas Pharma, Inc.		3,200		189,308
Benesse Holdings, Inc.		400		16,048
Bridgestone Corp.		5,000		188,966
Brother Industries Ltd.		1,500		20,468
Calbee, Inc.		400		9,705
Canon, Inc.		8,900		281,426
Casio Computer Co., Ltd.		1,500		18,332
Central Japan Railway Co.		1,100		129,313
Chiyoda Corp.		1,000		14,491
Chubu Electric Power Co., Inc.		4,500		58,071
Chugai Pharmaceutical Co., Ltd.		1,800		39,740
Citizen Holdings Co., Ltd.		3,100		26,081
Coca-Cola West Co., Ltd.		700		14,803
Credit Saison Co., Ltd.		1,500		39,398
Dai Nippon Printing Co., Ltd.		5,000		52,986
Daicel Corp.		2,000		16,257
Daido Steel Co., Ltd.		2,000		9,914
Daihatsu Motor Co., Ltd.		1,000		16,921
Daiichi Sankyo Co., Ltd.		5,000		91,302
Daikin Industries Ltd.		1,700		105,735
Dainippon Sumitomo Pharma Co., Ltd.		1,400		21,869

	Number of Shares		Value†
Japan — (continued)
Daito Trust Construction Co., Ltd.		500	$	46,672
Daiwa House Industry Co., Ltd.		5,000		96,619
Daiwa Securities Group, Inc.		13,000		129,617
Dena Co., Ltd.		700		14,703
Denso Corp.		3,700		194,996
Dentsu, Inc.		1,800		73,497
Don Quijote Holdings Co., Ltd.		400		24,195
East Japan Railway Co.		2,500		198,936
Eisai Co., Ltd.		1,800		69,651
Electric Power Development Co., Ltd.		1,000		29,105
FamilyMart Co., Ltd.		500		22,814
FANUC Corp.		1,500		274,190
Fast Retailing Co., Ltd.		400		164,847
Fuji Electric Co., Ltd.		4,000		18,688
Fuji Heavy Industries Ltd.		4,500		128,834
FUJIFILM Holdings Corp.		3,400		96,243
Fujitsu Ltd.*		16,000		82,651
Fukuoka Financial Group, Inc.		6,000		26,265
Gree, Inc.		800		7,893
GungHo Online Entertainment, Inc.*		3,000		21,565
Hakuhodo DY Holdings, Inc.		2,500		19,348
Hamamatsu Photonics K.K.		500		19,965
Hankyu Hanshin Holdings, Inc.		10,000		53,936
Hino Motors Ltd.		2,000		31,374
Hirose Electric Co., Ltd.		200		28,449
Hitachi Chemical Co., Ltd.		1,000		15,924
Hitachi Construction Machinery Co., Ltd.		1,000		21,318
Hitachi High-Technologies Corp.		500		12,539
Hitachi Ltd.		38,000		287,228
Hitachi Metals Ltd.		1,000		14,111
Hitamitsu Pharmaceutical Co., Ltd.		400		20,131
Hokkaido Electric Power Co., Inc.*		1,900		21,813
Hokuhoku Financial Group, Inc.		10,000		19,941
Hokuriku Electric Power Co.		1,200		16,261
Honda Motor Co., Ltd.		12,400		509,847
Hoya Corp.		3,100		86,015
Hulic Co., Ltd.		1,600		23,625
Ibiden Co., Ltd.		1,300		24,269
Idemitsu Kosan Co., Ltd.		400		9,089
IHI Corp.		12,000		51,733
Iida Group Holdings CO Ltd.*		1,000		19,960
Inpex Corp.		7,200		92,162
Isetan Mitsukoshi Holdings Ltd.		2,500		35,490
Isuzu Motors Ltd.		9,000		55,892
ITOCHU Corp.		11,200		138,152
Itochu Technology Solutions Corp.		300		12,150
J. Front Retailing Co., Ltd.		4,000		30,235
Japan Exchange Group, Inc.		2,000		56,766
Japan Petroleum Exploration Co.		300		11,352
Japan Prime Realty Investment Corp.		5		16,000
Japan Real Estate Investment Corp.		10		53,556
Japan Retail Fund Investment Corp.		20		40,680
Japan Tobacco, Inc.		8,300		269,547
JFE Holdings, Inc.		3,700		87,906
JGC Corp.		2,000		78,340

152

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
JSR Corp.		1,100	$	21,267
JTEKT Corp.		1,500		25,496
JX Holdings, Inc.		16,290		83,685
Kajima Corp.		7,000		26,256
Kakaku.Com, Inc.		1,100		19,293
Kamigumi Co., Ltd.		2,000		18,308
Kaneka Corp.		2,000		13,104
Kansai Paint Co., Ltd.		2,000		29,532
Kao Corp.		3,900		122,581
Kawasaki Heavy Industries Ltd.		10,000		41,876
KDDI Corp.		4,200		258,038
Keikyu Corp.		4,000		32,931
Keio Corp.		5,000		33,283
Keisei Electric Railway Co., Ltd.		2,000		18,365
Keyence Corp.		341		145,713
Kikkoman Corp.		1,000		18,859
Kinden Corp.		1,000		10,445
Kintetsu Corp.		13,000		45,551
Kirin Holdings Co., Ltd.		7,000		100,570
Kobe Steel Ltd.*		18,000		30,766
Koito Manufacturing Co., Ltd.		1,000		19,058
Komatsu Ltd.		7,000		142,047
Konami Corp.		600		13,839
Konica Minolta, Inc.		3,000		29,883
Kubota Corp.		8,000		132,105
Kuraray Co., Ltd.		2,400		28,556
Kurita Water Industries Ltd.		800		16,576
Kyocera Corp.		2,400		119,647
Kyowa Hakko Kirin Co., Ltd.		2,000		22,011
Kyushu Electric Power Co., Inc.*		2,900		36,956
Lawson, Inc.		600		44,839
LIXIL Group Corp.		2,300		62,966
M3, Inc.		5		12,511
Mabuchi Motor Co., Ltd.		200		11,870
Makita Corp.		800		41,933
Marubeni Corp.		12,000		86,146
Marui Group Co., Ltd.		1,500		15,212
Maruichi Steel Tube Ltd.		300		7,566
Mazda Motor Corp.*		20,000		103,314
McDonald’s Holdings Co. (Japan), Ltd.		700		17,861
Medipal Holdings Corp.		1,500		19,770
MEIJI Holdings Co., Ltd.		500		32,096
Miraca Holdings, Inc.		400		18,840
Mitsubishi Chemical Holdings Corp.		12,000		55,379
Mitsubishi Corp.		10,900		208,767
Mitsubishi Electric Corp.		15,000		188,016
Mitsubishi Estate Co., Ltd.		9,000		268,778
Mitsubishi Gas Chemical Co., Inc.		3,000		22,049
Mitsubishi Heavy Industries Ltd.		22,000		135,998
Mitsubishi Logistics Corp.		1,000		15,772
Mitsubishi Materials Corp.		7,000		25,791
Mitsubishi Motors Corp.*		3,700		39,667
Mitsubishi Tanabe Pharma Corp.		1,900		26,450
Mitsubishi UFJ Financial Group, Inc.		97,100		639,896
Mitsubishi UFJ Lease & Finance Co., Ltd.		4,600		28,174

	Number of Shares		Value†
Japan — (continued)
Mitsui & Co., Ltd.		13,500	$	187,803
Mitsui Chemicals, Inc.		5,000		12,060
Mitsui Fudosan Co., Ltd.		6,000		215,649
Mitsui OSK Lines Ltd.		10,000		45,010
Mizuho Financial Group, Inc.		174,180		377,106
MS&AD Insurance Group Holdings, Inc.		3,790		101,561
Murata Manufacturing Co., Ltd.		1,500		133,036
Nabtesco Corp.		700		16,119
Namco Bandai Holdings, Inc.		1,700		37,677
NEC Corp.		16,000		36,008
Nexon Co. Ltd.		1,100		10,153
NGK Insulators Ltd.		2,000		37,945
NGK Spark Plug Co., Ltd.		1,000		23,644
NHK Spring Co., Ltd.		1,200		13,514
Nidec Corp.		700		68,465
Nikon Corp.		2,900		55,323
Nintendo Co., Ltd.		800		106,429
Nippon Building Fund, Inc.		10		58,114
Nippon Electric Glass Co., Ltd.		2,000		10,483
Nippon Express Co., Ltd.		5,000		24,167
Nippon Meat Packers, Inc.		1,000		17,149
Nippon Paint Co., Ltd.		1,000		16,608
Nippon Prologis REIT, Inc.		2		19,105
Nippon Steel & Sumitomo Metal Corp.		59,170		197,776
Nippon Telegraph & Telephone Corp.		2,800		150,489
Nippon Yusen K.K.		13,000		41,478
Nissan Motor Co., Ltd.		19,400		162,849
Nisshin Seifun Group, Inc.		1,650		17,031
Nissin Foods Holdings Co., Ltd.		500		21,081
Nitori Holdings Co., Ltd.		300		28,402
Nitto Denko Corp.		1,200		50,536
NKSJ Holdings, Inc.		2,825		78,438
NOK Corp.		1,000		16,333
Nomura Holdings, Inc.		27,300		209,721
Nomura Real Estate Holdings, Inc.		1,000		22,486
Nomura Real Estate Office Fund, Inc.		2		9,287
Nomura Research Institute Ltd.		600		18,887
NSK Ltd.		4,000		49,682
NTT Data Corp.		1,000		36,844
NTT DOCOMO, Inc.		11,800		193,286
NTT Urban Development Corp.		1,000		11,480
Obayashi Corp.		6,000		34,128
Odakyu Electric Railway Co., Ltd.		5,000		45,152
Oji Holdings Corp.		6,000		30,709
Olympus Corp.*		2,000		63,242
Omron Corp.		1,600		70,573
Ono Pharmaceutical Co., Ltd.		600		52,474
Oracle Corp. Japan		200		7,302
Oriental Land Co., Ltd.		400		57,620
ORIX Corp.		10,000		175,387
Osaka Gas Co., Ltd.		16,000		62,748
Otsuka Corp.		100		12,734
Otsuka Holdings Co., Ltd.		3,000		86,601
Panasonic Corp.		16,500		191,777
Park24 Co., Ltd.		800		15,064

153

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Rakuten, Inc.		5,300	$	78,712
Resona Holdings, Inc.		13,500		68,711
Ricoh Co., Ltd.		5,000		53,081
Rinnai Corp.		300		23,331
Rohm Co., Ltd.		900		43,757
Sankyo Co., Ltd.		400		18,422
Sanrio Co., Ltd.		300		12,606
Santen Pharmaceutical Co., Ltd.		600		27,946
SBI Holdings, Inc.		1,710		25,818
Secom Co., Ltd.		1,700		102,345
Sega Sammy Holdings, Inc.		1,200		30,504
Sekisui Chemical Co., Ltd.		3,000		36,749
Sekisui House Ltd.		4,000		55,835
Seven & I Holdings Co., Ltd.		5,900		234,185
Seven Bank Ltd.		5,300		20,685
Sharp Corp.*		11,000		34,887
Shikoku Electric Power Co., Inc.*		1,300		19,443
Shimadzu Corp.		1,000		8,689
Shimamura Co., Ltd.		200		18,726
Shimano, Inc.		600		51,448
Shimizu Corp.		5,000		25,211
Shin-Etsu Chemical Co., Ltd.		3,200		186,573
Shinsei Bank Ltd.		14,000		34,166
Shionogi & Co., Ltd.		2,100		45,466
Shiseido Co., Ltd.		2,500		40,143
Showa Denko K.K.		9,000		12,734
Showa Shell Sekiyu K.K.		1,000		10,141
SMC Corp.		400		100,655
SoftBank Corp.		7,300		637,736
Sojitz Corp.		9,400		16,692
Sony Corp.		7,600		131,779
Sony Financial Holdings, Inc.		1,200		21,810
Stanley Electric Co., Ltd.		1,300		29,726
Sumco Corp.*		1,000		8,812
Sumitomo Chemical Co., Ltd.		10,000		39,123
Sumitomo Corp.		8,500		106,623
Sumitomo Electric Industries Ltd.		5,900		98,268
Sumitomo Heavy Industries Ltd.		3,000		13,788
Sumitomo Metal Mining Co., Ltd.		4,000		52,303
Sumitomo Mitsui Financial Group, Inc.		9,700		499,231
Sumitomo Mitsui Trust Holdings, Inc.		25,430		133,779
Sumitomo Realty & Development Co., Ltd.		3,000		148,989
Sumitomo Rubber Industries Ltd.		1,200		17,024
Suntory Beverage & Food Ltd.		1,000		31,858
Suruga Bank Ltd.		1,000		17,909
Suzuken Co., Ltd.		400		12,933
Suzuki Motor Corp.		2,800		75,191
Sysmex Corp.		500		29,484
T&D Holdings, Inc.		4,100		57,192
Taiheiyo Cement Corp.		8,000		30,690
Taisei Corp.		8,000		36,312
Taisho Pharmaceutical Holdings Co., Ltd.		300		20,596
Taiyo Nippon Sanso Corp.		1,000		7,103
Takashimaya Co., Ltd.		2,000		19,884
Takeda Pharmaceutical Co., Ltd.		6,000		274,903

	Number of Shares		Value†
Japan — (continued)
TDK Corp.		900	$	43,073
Teijin Ltd.		6,000		13,332
Terumo Corp.		1,100		52,958
The Bank of Kyoto Ltd.		3,000		25,012
The Bank of Yokohama Ltd.		10,000		55,645
The Chiba Bank Ltd.		5,000		33,663
The Chugoku Bank Ltd.		1,000		12,686
The Chugoku Electric Power Co., Inc.		2,100		32,624
The Dai-ichi Life Insurance Co., Ltd.		6,300		105,110
The Gunma Bank Ltd.		3,000		16,722
The Hachijuni Bank Ltd.		4,000		23,284
The Hiroshima Bank Ltd.		4,000		16,523
The Iyo Bank Ltd.		2,000		19,580
The Japan Steel Works Ltd.		2,000		11,167
The Joyo Bank Ltd.		6,000		30,595
The Kansai Electric Power Co., Inc.*		5,900		67,734
The Nishi-Nippon City Bank Ltd.		7,000		18,811
The Shizuoka Bank Ltd.		5,000		53,271
The Yokohama Rubber Co., Ltd.		2,000		19,618
THK Co., Ltd.		1,000		24,917
Tobu Railway Co., Ltd.		9,000		43,586
Toho Co., Ltd.		900		19,767
Toho Gas Co., Ltd.		3,000		14,585
Tohoku Electric Power Co., Inc.*		3,100		34,824
Tokio Marine Holdings, Inc.		5,400		180,239
Tokyo Electric Power Co., Inc.*		12,200		59,894
Tokyo Electron Ltd.		1,200		65,635
Tokyo Gas Co., Ltd.		18,000		88,539
Tokyo Tatemono Co., Ltd.		3,000		33,273
Tokyu Corp.		8,000		51,733
Tokyu Fudosan Holdings Corp.*		4,000		37,603
TonenGeneral Sekiyu K.K.		2,000		18,327
Toppan Printing Co., Ltd.		4,000		31,944
Toray Industries, Inc.		11,000		76,042
Toshiba Corp.		30,000		125,914
TOTO Ltd.		2,000		31,659
Toyo Seikan Group Holdings Ltd.		1,000		21,451
Toyo Suisan Kaisha Ltd.		1,000		30,007
Toyoda Gosei Co., Ltd.		400		9,294
Toyota Boshoku Corp.		900		11,221
Toyota Industries Corp.		1,200		54,069
Toyota Motor Corp.		20,900		1,274,124
Toyota Tsusho Corp.		1,800		44,491
Trend Micro, Inc.*		600		20,967
Tsumura & Co.		600		15,885
Ube Industries Ltd.		7,000		14,956
Unicharm Corp.		1,000		56,975
United Urban Investment Corp.		19		27,297
USS Co., Ltd.		2,200		30,166
West Japan Railway Co.		1,300		56,291
Yahoo! Japan Corp.		10,400		57,772
Yakult Honsha Co., Ltd.		700		35,296
Yamada Denki Co., Ltd.		8,300		27,112
Yamaguchi Financial Group, Inc.		2,000		18,498
Yamaha Corp.		1,600		25,357

154

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Yamaha Motor Co., Ltd.		2,400	$	35,940
Yamato Holdings Co., Ltd.		2,800		56,526
Yamato Kogyo Co., Ltd.		300		9,572
Yamazaki Baking Co., Ltd.		1,000		10,246
Yaskawa Electric Corp.		2,000		31,583
Yokogawa Electric Corp.		2,000		30,671
				21,185,000
Jersey — 0.1%
Randgold Resources Ltd.		735		46,129
Luxembourg — 0.4%
ArcelorMittal		7,474		133,358
Millicom International Cellular S.A.		489		48,696
RTL Group S.A.		294		37,990
SES S.A.		2,171		70,276
Tenaris S.A.		3,422		74,758
				365,078
Macau — 0.1%
Wynn Macau Ltd.		12,400		56,209
Netherlands — 4.9%
Aegon N.V.		13,127		123,920
Akzo Nobel N.V.		1,830		141,838
ASML Holding N.V.		2,696		252,354
CNH Industrial N.V.*		7,320		83,431
Corio N.V.		385		17,253
Delta Lloyd N.V.		1,538		38,170
European Aeronautic Defence & Sapce Co. N.V.		4,553		349,571
Fugro N.V.		528		31,463
Gemalto N.V.		668		73,527
Heineken Holdings N.V.		663		41,943
Heineken N.V.		1,880		126,937
ING Groep N.V.*		28,926		401,916
Koninklijke Ahold N.V.		7,876		141,397
Koninklijke Boskalis Westminster N.V.		475		25,096
Koninklijke DSM N.V.		1,104		86,813
Koninklijke KPN N.V. *		23,141		74,590
Koninklijke Philips NV		7,202		263,994
Koninklijke Vopak N.V.		584		34,161
OCI N.V.*		783		35,261
QIAGEN N.V.*		1,994		46,455
Randstad Holding N.V.		903		58,573
Reed Elsevier N.V.		5,023		106,417
Royal Dutch Shell PLC, A Shares		29,678		1,063,018
Royal Dutch Shell PLC, B Shares		19,061		719,664
TNT Express N.V.		3,439		31,925
Unilever N.V.		12,458		501,730
Wolters Kluwer N.V.		2,184		62,329
Ziggo N.V.		1,033		47,181
				4,980,927
New Zealand — 0.1%
Auckland International Airport Ltd.		6,300		18,289
Contact Energy Ltd.		2,990		12,615

	Number of Shares		Value†
New Zealand — (continued)
Fletcher Building Ltd.		4,795	$	33,558
Ryman Healthcare Ltd.		2,831		18,277
Telecom Corp. of New Zealand Ltd.		15,474		29,333
				112,072
Norway — 0.7%
Aker Solutions ASA		1,631		29,150
DNB ASA		7,620		136,312
Gjensidige Forsikring ASA		1,418		27,049
Norsk Hydro ASA		10,203		45,537
Orkla ASA		6,430		50,165
Statoil ASA		8,879		215,194
Telenor ASA		5,454		130,026
Yara International ASA		1,592		68,506
				701,939
Portugal — 0.2%
Banco Espirito Santo S.A.*		19,299		27,585
EDP — Energias de Portugal S.A.		16,826		61,804
Galp Energia SGPS, S.A.		2,276		37,307
Jeronimo Martins SGPS, S.A.		2,107		41,204
Portugal Telecom SGPS, S.A.		4,543		19,750
				187,650
Singapore — 1.4%
Ascendas Real Estate Investment Trust		15,000		26,150
CapitaCommercial Trust		16,000		18,384
CapitaLand Ltd.		18,000		43,219
CapitaMall Trust		21,700		32,758
CapitaMalls Asia Ltd.		7,000		10,872
City Developments Ltd.		3,000		22,822
ComfortDelGro Corp. Ltd.		14,000		22,299
DBS Group Holdings Ltd.		13,038		176,671
Genting Singapore PLC		43,000		50,941
Global Logistic Properties Ltd.		26,000		59,543
Golden Agri-Resources Ltd.		65,000		28,072
Hutchison Port Holdings Trust		35,100		23,692
Jardine Cycle & Carriage Ltd.		1,000		28,488
Keppel Corp. Ltd.		11,600		102,860
Keppel Land Ltd.		5,431		14,374
Olam International Ltd.		10,179		12,381
Oversea-Chinese Banking Corp. Ltd.		19,133		154,647
SembCorp Industries Ltd.		9,000		39,154
SembCorp Marine Ltd.		7,000		24,684
Singapore Airlines Ltd.		4,000		32,996
Singapore Exchange Ltd.		6,000		34,518
Singapore Press Holdings Ltd.		11,000		35,913
Singapore Technologies Engineering Ltd.		12,000		37,656
Singapore Telecommunications Ltd.		60,000		174,016
StarHub, Ltd.		5,000		16,997
United Overseas Bank Ltd.		9,345		157,287
UOL Group Ltd.		4,000		19,620
Wilmar International Ltd.		13,000		35,231
				1,436,245

155

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Spain — 3.2%
Abertis Infraestructuras S.A.		2,753	$	61,165
ACS Actividades de Construccion y Servicios S.A.		923		31,770
Amadeus IT Holding S.A.		2,792		119,473
Banco Bilbao Vizcaya Argentaria S.A.		43,649		537,311
Banco de Sabadell S.A.		25,785		67,256
Banco Popular Espanol S.A.*		9,748		58,804
Banco Santander S.A.		86,207		771,582
Bankia S.A.*		36,141		61,354
CaixaBank		13,139		68,470
Distribuidora Internacional de Alimentacion S.A.		4,084		36,519
Enagas S.A.		1,205		31,488
Ferrovial S.A.		2,766		53,520
Gas Natural SDG S.A.		2,403		61,802
Grifols S.A.		1,001		47,874
Iberdrola S.A.		35,506		226,400
Inditex S.A.		1,675		276,056
Mapfre S.A.		8,177		35,019
Red Electrica Corporacion S.A.		723		48,240
Repsol S.A.		6,567		165,508
Telefonica S.A.		31,064		505,768
Zardoya Otis S.A.		1,485		26,864
				3,292,243
Sweden — 3.1%
Alfa Laval AB		2,688		68,957
Assa Abloy AB, B Shares		2,535		133,926
Atlas Copco AB, A Shares		5,003		138,690
Atlas Copco AB, B Shares		2,902		73,635
Boliden AB		1,883		28,822
Electrolux AB, B Shares		2,141		56,089
Elekta AB, B Shares		3,250		49,696
Getinge AB, B Shares		1,448		49,529
Hennes & Mauritz AB, B Shares		7,439		342,581
Hexagon AB, B Shares		1,706		53,924
Husqvarna AB, B Shares		2,834		17,061
Industrivarden AB, C Shares		1,227		23,331
Investment AB Kinnevik, B Shares		1,832		84,852
Investor AB, B Shares		3,307		113,784
Lundin Petroleum AB*		1,488		29,011
Nordea Bank AB		22,413		301,948
Sandvik AB		8,213		115,817
Scania AB, B Shares		2,293		44,884
Securitas AB, B Shares		1,984		21,084
Skandinaviska Enskilda Banken AB, A Shares		11,173		147,309
Skanska AB, B Shares		2,668		54,506
SKF AB, B Shares		2,791		73,205
Svenska Cellulosa AB SCA, B Shares		4,261		131,172
Svenska Handelsbanken AB, A Shares		3,728		183,158
Swedbank AB, A Shares		6,752		190,009
Swedish Match AB		1,496		48,077
Tele2 AB, B Shares*		2,927		33,153
Telefonaktiebolaget LM Ericsson, B Shares		23,862		291,233

	Number of Shares		Value†
Sweden — (continued)
TeliaSonera AB		17,692	$	147,299
Volvo AB, B Shares		11,928		156,614
				3,203,356
Switzerland — 9.2%
ABB Ltd.*		16,684		439,146
Actelion Ltd.*		742		62,676
Adecco S.A.*		978		77,402
Aryzta AG*		570		43,706
Baloise Holding AG		308		39,223
Barry Callebaut AG*		11		13,786
Cie Financiere Richemont SA		3,961		394,302
Coca-Cola HBC AG, CDI*		1,371		40,003
Credit Suisse Group AG*		11,701		357,700
EMS-Chemie Holding AG		65		23,098
Geberit AG*		281		85,209
Givaudan S.A.*		61		87,118
Glencore Xstrata PLC*		80,611		417,418
Holcim Ltd.*		1,722		128,853
Julius Baer Group Ltd.*		1,616		77,607
Kuehne + Nagel International AG		366		48,045
Lindt & Spruengli AG		1		53,921
Lindt & Spruengli AG, Participation Certificates		5		22,538
Lonza Group AG*		320		30,348
Nestle S.A.		24,466		1,790,964
Novartis AG		17,452		1,392,952
Pargesa Holding S.A.		109		8,786
Partners Group Holding AG		138		36,803
Roche Holding AG		5,330		1,488,970
Schindler Holding AG		145		21,391
Schindler Holding AG, Participation Certificates		349		51,369
SGS S.A.		40		92,013
Sika AG		14		49,766
Sonova Holding AG*		330		44,392
STMicroelectronics N.V.		4,919		39,520
Sulzer AG		139		22,423
Swiss Life Holding AG*		213		44,221
Swiss Prime Site AG*		430		33,285
Swiss Re AG*		2,653		244,021
Swisscom AG		169		89,213
Syngenta AG		724		288,285
The Swatch Group AG		233		153,975
The Swatch Group AG, Registered Shares		272		30,614
Transocean Ltd.		2,710		131,968
UBS AG*		27,760		526,539
Wolseley PLC		1,945		110,314
Zurich Insurance Group AG*		1,155		334,698
				9,468,581
United Kingdom — 18.9%
3i Group PLC		8,442		53,835
Aberdeen Asset Management PLC		7,687		63,647
Admiral Group PLC		1,234		26,769
Aggreko PLC		2,267		64,157

156

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
United Kingdom — (continued)
AMEC PLC		2,494	$	44,934
Anglo American PLC		10,508		229,691
Antofagasta PLC		3,403		46,434
ARM Holdings PLC		10,405		189,360
Associated British Foods PLC		2,540		102,840
AstraZeneca PLC		9,524		563,747
Aviva PLC		21,883		162,959
Babcock International Group PLC		3,027		67,920
BAE Systems PLC		25,041		180,381
Barclays PLC		116,949		526,666
BG Group PLC		25,830		554,985
BHP Billiton PLC		16,332		505,473
BP PLC		144,797		1,170,235
British American Tobacco PLC		14,437		774,111
British Land Co. PLC		6,543		68,152
British Sky Broadcasting Group PLC		7,899		110,399
BT Group PLC		59,496		373,796
Bunzl PLC		2,254		54,122
Burberry Group PLC		3,151		79,104
Capita PLC		4,671		80,289
Carnival PLC		1,577		65,312
Centrica PLC		40,557		233,518
Cobham PLC		8,466		38,483
Compass Group PLC		13,821		221,546
Croda International PLC		933		37,961
Diageo PLC		19,128		633,503
Direct Line Insurance Group PLC		6,941		28,689
easyJet PLC		1,334		33,931
Fresnillo PLC		1,200		14,814
G4S PLC		12,521		54,427
GKN PLC		11,997		74,162
GlaxoSmithKline PLC		37,166		991,803
Hammerson PLC		5,215		43,352
Hargreaves Lansdown PLC		1,892		42,422
HSBC Holdings PLC		142,839		1,566,810
ICAP PLC		3,290		24,604
IMI PLC		2,238		56,517
Imperial Tobacco Group PLC		7,351		284,603
Inmarsat PLC		3,494		43,741
InterContinental Hotels Group PLC		1,849		61,635
International Consolidated Airlines Group S.A. (London Main Market Exchange)*		2,764		18,372
International Consolidated Airlines Group S.A. (Spanish Stock Exchange)*		3,469		23,093
Intertek Group PLC		1,257		65,527
Intu Properties PLC		6,425		32,972
Invensys PLC		5,913		49,791
Investec PLC		3,627		26,283
ITV PLC		27,613		88,708
J. Sainsbury PLC		9,762		59,004
Johnson Matthey PLC		1,471		79,898
Kingfisher PLC		17,378		110,706
Land Securities Group PLC		5,937		94,726
Legal & General Group PLC		43,875		161,803
Lloyds Banking Group PLC*		379,016		495,078
London Stock Exchange Group PLC		1,386		39,775

	Number of Shares		Value†
United Kingdom — (continued)
Marks & Spencer Group PLC		11,638	$	83,371
Meggitt PLC		5,580		48,742
National Grid PLC		27,680		361,195
New Melrose PLC*		9,971		50,476
Next PLC		1,232		111,188
Old Mutual PLC		35,897		112,408
Pearson PLC		6,056		134,482
Persimmon PLC*		2,549		52,299
Petrofac Ltd.		1,906		38,633
Prudential PLC		19,670		436,474
Reckitt Benckiser Group PLC		4,902		389,072
Reed Elsevier PLC		8,798		130,976
Rexam PLC		5,188		45,576
Rio Tinto PLC		9,819		554,380
Rolls-Royce Holdings PLC, Series C*		14,173		299,241
Royal Bank of Scotland Group PLC*		17,660		98,875
RSA Insurance Group PLC		27,278		41,286
SABMiller PLC		7,290		374,351
Schroders PLC		648		27,878
Segro PLC		4,487		24,817
Serco Group PLC		3,324		27,478
Severn Trent PLC		1,595		45,033
Smith & Nephew PLC		6,571		93,688
Smiths Group PLC		2,809		68,843
SSE PLC		7,612		172,691
Standard Chartered PLC		18,391		414,184
Standard Life PLC		17,226		102,578
Subsea 7 S.A.		1,806		34,570
Tate & Lyle PLC		3,269		43,794
Tesco PLC		61,225		338,984
The Sage Group PLC		8,870		59,297
The Weir Group PLC		1,509		53,275
Travis Perkins PLC		2,061		63,890
TUI Travel PLC		2,394		16,377
Tullow Oil PLC		7,372		104,376
Unilever PLC		9,900		406,899
United Utilities Group PLC		5,902		65,629
Vodafone Group PLC*		367,585		1,442,632
W.M. Morrison Supermarkets PLC		17,966		77,650
Whitbread PLC		1,260		78,265
William Hill PLC		7,259		48,311
WPP PLC		10,309		235,584
				19,401,323
United States — 0.0%
Perrigo Co. PLC		267		40,967
TOTAL COMMON STOCKS (Cost $74,745,460)				99,964,663
PREFERRED STOCKS — 0.7%
Germany — 0.7%
Bayerische Motoren Werke AG		325		27,761
Fuchs Petrolub AG		299		29,221
Henkel AG & Co. KGaA		1,395		161,800
Porsche Automobil Holding SE		1,127		117,305

157

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Developed International Index Fund

	Number of Shares		Value†
PREFERRED STOCKS — (continued)
Germany — (continued)
ProSiebenSat.1 Media AG		1,411	$	69,880
Volkswagen AG		1,117		313,710
				719,677
United Kingdom — 0.0%
Rolls-Royce Holdings PLC, Series C~		1,218,878		2,018
TOTAL PREFERRED STOCKS (Cost $371,923)				721,695
WARRANTS — 0.0%
Belgium — 0.0%
Anheuser-Busch InBev N.V.02/27/13*		256		0
Spain — 0.0%
Repsol SA12/23/13*		6,567		4,481
TOTAL WARRANTS (Cost $4,402)				4,481
SHORT-TERM INVESTMENTS — 1.8%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,839,261)		1,839,261	$	1,839,261
TOTAL INVESTMENTS — 100.0% (Cost $76,961,046)			$	102,530,100

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at December 31, 2013 is $2,018.

ADR — American Depository Receipt.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Advertising		0.5%	$	467,712
Aerospace & Defense		0.9%		865,591
Agriculture		1.4%		1,439,641
Airlines		0.2%		191,654
Apparel		0.8%		794,392
Auto Manufacturers		3.8%		3,750,653
Auto Parts & Equipment		1.3%		1,322,116
Banks		14.9%		14,885,106
Beverages		2.5%		2,467,666
Biotechnology		0.3%		298,769
Building & Real Estate		0.1%		52,299
Building Materials		1.2%		1,168,343
Chemicals		4.1%		4,069,391
Commercial Services		1.5%		1,487,166
Computers		0.4%		411,961
Cosmetics & Personal Care		0.6%		614,805

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Distribution & Wholesale		0.9	%	$	881,642
Diversified		—	%+		26,150
Diversified Financial Services		1.4	%		1,450,064
Diversified Operations		0.2	%		190,371
Electric		2.6	%		2,577,067
Electrical Components & Equipment		1.1	%		1,129,163
Electronics		1.2	%		1,225,816
Energy-Alternate Sources		—	%+		27,753
Engineering & Construction		1.3	%		1,341,205
Entertainment		0.2	%		157,833
Environmental Control		—	%+		16,576
Food		5.0	%		5,032,760
Food Service		0.2	%		221,546
Forest Products & Paper		0.3	%		261,362
Gas		0.7	%		683,733
Hand & Machine Tools		0.4	%		374,770
Healthcare Products		0.8	%		844,299
Healthcare Services		0.2	%		188,761
Holding Companies		0.6	%		561,285
Home Builders		0.2	%		189,203
Home Furnishings		0.4	%		414,532
Hotels & Resorts		0.3	%		323,787
Household Products & Wares		0.5	%		534,192
Industrial		0.3	%		299,241
Insurance		5.4	%		5,396,998
Internet		0.3	%		317,692
Investment Companies		0.3	%		348,355
Iron & Steel		0.7	%		663,658
Leisure Time		0.2	%		243,577
Lodging		0.4	%		409,121
Machinery — Construction & Mining		0.4	%		375,690
Machinery — Diversified		1.2	%		1,206,164
Media		1.0	%		980,915
Metal Fabricate/Hardware		0.4	%		381,466
Mining		3.2	%		3,181,481
Miscellaneous		0.5	%		510,846
Miscellaneous Manufacturing		1.5	%		1,481,071
Mixed Industrial/Office		0.4	%		418,376
Office & Business Equipment		0.3	%		334,507
Oil & Gas		6.5	%		6,500,039
Oil & Gas Services		0.3	%		260,160
Packaging and Containers		0.2	%		158,524
Pharmaceuticals		7.8	%		7,827,114
Pipelines		—	%+		28,507
Real Estate		1.7	%		1,660,220
Real Estate Investment Trusts		0.8	%		770,487
Retail		2.9	%		2,921,746
Semiconductors		0.7	%		696,668
Shipbuilding		—	%+		42,525
Software		0.9	%		911,579
Storage & Warehousing		—	%+		15,772
Strip Centers		0.2	%		234,302
Telecommunications		6.2	%		6,218,037
Textiles		0.1	%		117,930
Toys, Games & Hobbies		0.2	%		156,712
Transportation		1.7	%		1,698,654
Venture Capital		0.1	%		53,835

158

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Schedule of Investments — December 31, 2013

Developed International Index Fund

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Water		0.2%	$	201,559
		100.0%	$	99,964,663

+ Rounded.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	99,964,663	$	99,964,663	$	—	$	—
PREFERRED STOCKS
Germany		719,677		719,677
United Kingdom		2,018		—		2,018		—
WARRANTS		4,481		—		4,481		—
SHORT-TERM INVESTMENTS		1,839,261		1,839,261		—		—
TOTAL INVESTMENTS	$	102,530,100	$	102,523,601	$	6,499	$	—

Fair Value of Level 2 investments at 12/31/12 was $88,524,287 which was a result of valuing foreign securities using third-party vendor modeling tools. An amount of $86,232,682 was transferred from Level 2 into Level 1 at 12/31/2013 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.

159

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Schedule of Investments — December 31, 2013

International Equity Fund

	Number of Shares		Value†
COMMON STOCKS — 99.8%
Australia — 2.4%
CSL Ltd.		55,401	$	3,411,271
Ramsay Health Care Ltd.		138,821		5,362,201
				8,773,472
Brazil — 0.9%
Cielo S.A.		127,177		3,538,909
Canada — 7.5%
Alimentation Couche Tard, Inc.		50,043		3,763,177
Bank of Nova Scotia		106,650		6,669,578
Enbridge, Inc.		160,008		6,990,794
Goldcorp, Inc.		314,537		6,822,248
Shaw Communications, Inc., Class B		78,013		1,898,457
Silver Wheaton Corp.		90,037		1,818,116
				27,962,370
China — 1.6%
Sands China Ltd.		731,251		5,974,073
Denmark — 3.3%
Novo Nordisk A/S, B Shares		66,447		12,179,857
France — 8.3%
Bureau Veritas S.A.		348,882		10,196,723
Essilor International S.A.		54,009		5,741,939
Hermes International		8,771		3,179,472
L’Oreal S.A.		35,372		6,214,066
Pernod Ricard S.A.		49,945		5,689,841
				31,022,041
Germany — 1.7%
SAP AG		72,411		6,207,084
Hong Kong — 1.9%
Cheung Kong Infrastructure Holdings Ltd.		243,662		1,538,147
L’Occitane International SA		991,995		2,110,818
The Link REIT		735,035		3,564,128
				7,213,093
India — 9.7%
HDFC Bank Ltd.~		1,012,818		11,121,758
HDFC Bank Ltd. ADR		696		23,970
Hindustan Unilever Ltd.		257,303		2,373,777
Housing Development Finance Corp.		1,013,855		13,024,976
ITC Ltd.		1,860,381		9,680,117
				36,224,598
Indonesia — 0.5%
Telekomunikasi Indonesia Persero Tbk PT		9,775,283		1,726,940
Ireland — 3.0%
Covidien PLC		93,500		6,367,350
Paddy Power PLC		56,225		4,795,639
				11,162,989
Italy — 0.8%
Luxottica Group SpA		52,648		2,821,075
Japan — 1.2%
Daito Trust Construction Co., Ltd.		47,700		4,452,483

	Number of Shares		Value†
Mexico — 2.3%
Fresnillo PLC		401,123	$	4,951,931
Wal-Mart de Mexico S.A.B de C.V., Series V		1,390,931		3,649,775
				8,601,706
Netherlands — 6.8%
Core Laboratories N.V.		44,548		8,506,440
Unilever N.V.		416,078		16,757,028
				25,263,468
Spain — 1.3%
Grifols S.A.		97,573		4,666,564
Sweden — 0.7%
Elekta AB, B Shares		173,608		2,654,656
Switzerland — 18.1%
DKSH Holding AG*		80,483		6,252,421
Lindt & Spruengli AG, Participation Certificates		1,672		7,536,699
Nestle S.A.		229,232		16,780,281
Novartis AG		32,756		2,614,458
Roche Holding AG		29,541		8,252,471
SGS S.A.		4,484		10,314,633
UBS AG*		820,856		15,569,624
				67,320,587
Thailand — 0.1%
Advanced Info Service PCL		90,400		548,837
United Kingdom — 22.7%
Barratt Developments PLC		510,242		2,948,838
British American Tobacco PLC		398,995		21,394,082
Diageo PLC		344,148		11,397,894
Domino’s Pizza UK & IRL PLC		417,563		3,547,225
HSBC Holdings PLC		769,893		8,445,008
Intertek Group PLC		10,089		525,935
Persimmon PLC*		243,862		5,003,395
Reckitt Benckiser Group PLC		58,135		4,614,179
Rolls-Royce Holdings PLC*		366,070		7,729,007
SABMiller PLC		224,355		11,520,912
Standard Chartered PLC		324,891		7,316,880
				84,443,355
United States — 5.0%
Philip Morris International, Inc.		212,933		18,552,852
TOTAL COMMON STOCKS (Cost $289,778,705)				371,311,009
PREFERRED STOCKS — 0.0%
United Kingdom — 0.0%
Rolls-Royce Holdings PLC, Series C*~ (Cost $51,040)		31,482,020		52,133

160

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Schedule of Investments — December 31, 2013

International Equity Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 0.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $748,449)		748,449	$	748,449
TOTAL INVESTMENTS — 100.0% (Cost $290,578,194)			$	372,111,591

† See Security Valuation Note.

~ Fair valued security. The total market value of fair valued securities at December 31, 2013 is $11,173,891.

* Non-income producing security.

ADR — American Depository Receipt.

PCL — Public Company Limited.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

Country Weightings as of 12/31/2013†
United Kingdom	23	%
Switzerland	18
India	10
France	8
Canada	7
Netherlands	7
United States	5
Other	22
Total	100	%

† % of total investments as of December 31, 2013

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Agriculture		13.4%	$	49,627,051
Apparel		0.9%		3,179,472
Banks		13.2%		49,146,818
Beverages		7.7%		28,608,647
Biotechnology		0.9%		3,411,271
Building & Real Estate		2.1%		7,952,233
Commercial Services		6.6%		24,576,200
Cosmetics & Personal Care		2.2%		8,324,884
Diversified Financial Services		3.5%		13,024,976
Entertainment		1.3%		4,795,639
Food		11.1%		41,074,008
Healthcare Products		4.7%		17,585,020
Healthcare Services		1.4%		5,362,201
Household Products & Wares		1.9%		6,987,956
Industrial		3.9%		14,551,255
Internet		1.7%		6,252,421
Investment Companies		0.4%		1,538,147
Lodging		1.6%		5,974,073
Media		0.5%		1,898,457
Mining		1.8%		6,770,047
Oil & Gas Services		4.2%		15,497,234
Pharmaceuticals		7.5%		27,713,350

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Real Estate		1.2%	$	4,452,483
Real Estate Investment Trusts		1.0%		3,564,128
Retail		3.0%		10,960,177
Software		1.7%		6,207,084
Telecommunications		0.6%		2,275,777
		100.0%	$	371,311,009

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Australia	$	8,773,472	$	8,773,472	$	—	$	—
Brazil		3,538,909		3,538,909		—		—
Canada		27,962,370		27,962,370		—		—
China		5,974,073		5,974,073		—		—
Denmark		12,179,857		12,179,857		—		—
France		31,022,041		31,022,041		—		—
Germany		6,207,084		6,207,084		—		—
Hong Kong		7,213,093		7,213,093		—		—
India		36,224,598		25,102,840		11,121,758		—
Indonesia		1,726,940		1,726,940		—		—
Ireland		11,162,989		11,162,989		—		—
Italy		2,821,075		2,821,075		—		—
Japan		4,452,483		4,452,483		—		—
Mexico		8,601,706		8,601,706		—		—
Netherlands		25,263,468		25,263,468		—		—
Spain		4,666,564		4,666,564		—		—
Sweden		2,654,656		2,654,656		—		—
Switzerland		67,320,587		67,320,587		—		—
Thailand		548,837		548,837		—		—
United Kingdom		84,443,355		84,443,355		—		—
United States		18,552,852		18,552,852		—		—
PREFERRED STOCKS		52,133		—		52,133		—
SHORT-TERM INVESTMENTS		748,449		748,449		—		—
TOTAL INVESTMENTS	$	372,111,591	$	360,937,700	$	11,173,891	$	—

Fair Value of Level 2 investments at 12/31/12 was $282,816,186 which was a result of valuing foreign securities using third-party vendor modeling tools. An amount of $234,927,196 was transferred from Level 2 into Level 1 at 12/31/2013 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.

161

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Schedule of Investments — December 31, 2013

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — 94.2%
Austria — 1.8%
Erste Group Bank AG		47,853	$	1,667,515
Vienna Insurance Group AG Wiener Versicherung Gruppe		24,353		1,213,630
				2,881,145
Brazil — 5.1%
AMBEV S.A. ADR		227,563		1,672,588
BRF - S.A.		132,000		2,755,537
CCR S.A.		130,660		984,138
Petroleo Brasileiro S.A.		64,371		436,279
Petroleo Brasileiro S.A. ADR		40,579		559,179
Petroleo Brasileiro S.A. ADR		28,100		412,789
Raia Drogasil S.A.		59,300		371,497
Ultrapar Participacoes S.A.		42,570		1,009,555
				8,201,562
Chile — 0.6%
S.A.C.I. Falabella		115,985		1,040,322
China — 10.0%
Bank of China Ltd., Class H		6,855,000		3,155,971
Baoxin Auto Group Ltd.		225,500		218,977
China Conch Venture Holdings Ltd.*		70,000		191,829
China Construction Bank Corp., Class H		2,511,930		1,895,051
China Oilfield Services Ltd., Class H		404,000		1,253,008
China Pacific Insurance Group Co. Ltd., Class H		417,000		1,634,809
China Petroleum & Chemical Corp.,Class H		806,000		657,955
NetEase.com, Inc. ADR*		2,900		227,940
Qihoo 360 Technology Co. Ltd. ADR*		13,841		1,135,654
Sihuan Pharmaceutical Holdings Group Ltd.		718,000		655,564
Tencent Holdings Ltd.		57,300		3,654,821
Tsingtao Brewery Co. Ltd., Class H		94,000		794,617
Uni-President China Holdings Ltd.		534,000		544,034
				16,020,230
Colombia — 0.3%
Grupo de Inversiones Suramericana S.A.		28,300		494,150
Cyprus — 0.4%
Eurasia Drilling Co. Ltd. GDR		14,750		663,750
Czech Republic — 0.8%
Komercni Banka, A.S.		5,748		1,279,594
Hong Kong — 3.2%
Beijing Enterprises Holdings Ltd.		68,000		674,361
China Mengniu Dairy Co. Ltd.		237,000		1,124,744
China Mobile Ltd.		185,500		1,923,346
China Overseas Grand Oceans Group Ltd.		221,000		210,617
China Overseas Land & Investment Ltd.		248,000		697,213
Sino Biopharmaceutical Ltd.		736,000		583,728
				5,214,009
Hungary — 1.1%
Richter Gedeon Nyrt		82,695		1,683,528

	Number of Shares		Value†
India — 7.1%
Asian Paints Ltd.		89,591	$	709,718
Glenmark Pharmaceuticals Ltd.		120,419		1,039,296
HDFC Bank Ltd.~		106,784		1,172,595
HDFC Bank Ltd. ADR		3,730		128,461
Idea Cellular Ltd.		366,127		987,901
IndusInd Bank Ltd.		93,375		635,080
Infosys Ltd.		18,772		1,057,839
ING Vysya Bank Ltd.~		55,871		556,461
ITC Ltd.		184,973		962,470
ITC Ltd. GDR		47,905		249,202
Oil & Natural Gas Corp. Ltd.		76,421		356,932
Sun Pharmaceutical Industries Ltd.		113,392		1,040,244
Tata Consultancy Services Ltd.		45,739		1,606,133
Zee Entertainment Enterprises Ltd.		212,179		948,811
				11,451,143
Indonesia — 1.6%
Bank Tabungan Negara Persero Tbk PT		6,016,698		430,117
Indosat Tbk PT		745,000		254,047
Kalbe Farma Tbk PT		6,489,500		666,547
Matahari Department Store Tbk PT*		736,000		665,242
Semen Indonesia Persero Tbk PT		420,000		488,332
				2,504,285
Japan — 0.5%
Nexon Co. Ltd.		86,900		802,078
Malaysia — 2.9%
Astro Malaysia Holdings Bhd		880,800		806,717
CIMB Group Holdings Bhd		558,589		1,299,480
Gamuda Bhd		607,900		890,832
IHH Healthcare Bhd*		472,300		556,580
IJM Corp. Bhd		600,400		1,077,806
				4,631,415
Mexico — 5.8%
Alfa S.A.B. de C.V.		706,603		1,981,833
America Movil S.A.B. de C.V., Series L ADR		58,881		1,376,049
Fomento Economico Mexicano S.A.B. de C.V. ADR		14,913		1,459,535
Grupo Financiero Banorte S.A.B. de C.V., Series O		307,806		2,153,805
Grupo Financiero Santander Mexico S.A.B. de C.V. ADR		62,171		848,013
Mexichem S.A.B. de C.V.		174,896		720,132
Wal-Mart de Mexico S.A.B de C.V., Series V		299,412		785,651
				9,325,018
Netherlands — 0.9%
Yandex N.V.*		32,604		1,406,863
Panama — 0.8%
Copa Holdings S.A., Class A		7,785		1,246,456
Peru — 1.1%
Credicorp Ltd.		13,428		1,782,298

162

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Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Philippines — 3.7%
BDO Unibank, Inc.		919,660	$	1,421,476
Bloomberry Resorts Corp.*		1,415,900		274,678
DMCI Holdings, Inc.		843,130		1,063,827
International Container Terminal Services, Inc.		358,730		824,435
LT Group, Inc.		1,102,900		383,682
Metro Pacific Investments Corp.		10,182,900		991,159
SM Investments Corp.		59,550		953,981
				5,913,238
Poland — 3.2%
Bank Pekao S.A.		32,786		1,948,027
Bank Zachodni WBK S.A.		17,801		2,283,864
Telekomunikacja Polska S.A.		293,657		952,596
				5,184,487
Portugal — 1.1%
Jeronimo Martins SGPS, S.A.		91,301		1,785,450
Qatar — 0.5%
Ooredoo QSC		21,028		792,267
Russia — 2.9%
Lukoil OAO ADR		18,621		1,175,357
Mail.Ru Group Ltd. GDR		22,315		995,249
MegaFon OAO GDR		18,519		624,100
NovaTek OAO GDR		11,900		1,629,110
Sistema JSFC GDR		6,902		221,692
				4,645,508
South Africa — 2.8%
Life Healthcare Group Holdings Ltd.		150,437		600,314
Naspers Ltd., N Shares		21,225		2,217,618
Pick n Pay Stores Ltd.		133,836		663,439
Sasol Ltd.		15,369		753,799
Vodacom Group Ltd.		18,083		229,269
				4,464,439
South Korea — 15.8%
Cheil Worldwide, Inc.*		19,020		495,618
Cosmax, Inc.		8,480		400,155
Coway Co. Ltd.		19,309		1,214,874
GS Retail Co. Ltd.		14,390		381,788
Hana Financial Group, Inc.		23,290		968,808
Hotel Shilla Co. Ltd.		9,401		592,378
Hyundai Department Store Co. Ltd		3,067		467,889
Hyundai Engineering & Construction Co. Ltd.		21,145		1,216,186
Hyundai Glovis Co. Ltd.		4,278		936,389
Hyundai Heavy Industries Co. Ltd.		3,495		851,106
Hyundai Motor Co.		13,035		2,921,095
Hyundai Rotem Co. Ltd.*		460		12,553
Kolao Holdings*~		42,584		545,742
KT Skylife Co. Ltd.		7,880		220,641
LG Household & Health Care Ltd.		1,281		665,171
LG Uplus Corp.*		30,860		314,346
NAVER Corp.		1,434		983,765
NCSoft Corp.		4,554		1,072,316
Orion Corp.		438		393,862

	Number of Shares		Value†
South Korea — (continued)
Paradise Co. Ltd.		19,884	$	498,348
Samsung Electronics Co. Ltd.		5,147		6,691,319
Shinhan Financial Group Co. Ltd.		36,738		1,646,570
SK Hynix, Inc.*		23,670		825,372
SK Telecom Co. Ltd.ADR		6,000		147,720
SK Telecom Co. Ltd.		4,399		958,706
				25,422,717
Spain — 1.3%
Cemex Latam Holdings S.A.*		99,528		763,220
Telefonica S.A.		76,897		1,251,996
				2,015,216
Switzerland — 2.0%
Coca-Cola HBC AG*		61,783		1,802,703
The Swatch Group AG		2,227		1,471,685
				3,274,388
Taiwan — 7.0%
Chailease Holding Co. Ltd.		393,500		1,035,127
China Life Insurance Co. Ltd.		482,227		488,642
Cleanaway Co. Ltd.		46,000		300,200
Delta Electronics, Inc.		96,000		547,587
Eclat Textile Co. Ltd.		53,120		598,867
Fubon Financial Holding Co. Ltd.		577,310		844,556
Ginko International Co. Ltd.		23,000		434,479
Hermes Microvision, Inc. GDR*~		14,012		455,101
MediaTek, Inc.		113,000		1,681,531
Siliconware Precision Industries Co.		205,000		244,870
St Shine Optical Co. Ltd.		16,000		456,859
Taiwan Cement Corp.		67,000		103,973
Taiwan Semiconductor Manufacturing Co. Ltd.		896,769		3,174,430
Uni-President Enterprises Corp.		473,531		853,209
				11,219,431
Thailand — 4.3%
Advanced Info Service PCL NVDR		156,000		947,109
Bangkok Bank PCL NVDR		264,100		1,430,609
BTS Rail Mass Transit Growth Infrastructure Fund		2,508,800		656,594
Kasikornbank PCL NVDR		172,700		819,878
Land and Houses PCL NVDR		3,213,500		875,253
Minor International PCL NVDR		778,000		490,097
Robinson Department Store PCL		69,200		101,083
Robinson Department Store PCL NVDR		318,500		465,247
Supalai PCL		33,900		15,062
Supalai PCL NVDR		1,220,800		542,413
Total Access Communication PCL NVDR		204,400		603,372
				6,946,717
Turkey — 1.7%
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		60,115		650,383
Pegasus Hava Tasimaciligi A.S.*		27,796		469,518
Turkcell Iletisim Hizmet A.S.*		91,199		481,670
Turkiye Sise Ve Cam Fabrikalari A.S.		483,783		612,327
Ulker Biskuvi Sanayi AS		67,908		480,317
				2,694,215

163

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Schedule of Investments — December 31, 2013

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
United Kingdom — 1.6%
Mondi PLC		80,920	$	1,397,702
SABMiller PLC		22,467		1,141,020
				2,538,722
United States — 2.3%
Samsonite International S.A.		619,500		1,885,431
Yum! Brands, Inc.		23,095		1,746,213
				3,631,644
TOTAL COMMON STOCKS (Cost $125,203,207)				151,156,285
PREFERRED STOCKS — 2.8%
Brazil — 1.8%
Banco Bradesco S.A.		143,715		1,772,033
Petroleo Brasileiro S.A.		154,000		1,114,897
				2,886,930
Colombia — 0.4%
Grupo de Inversiones Suramericana S.A.		31,900		578,167
South Korea — 0.6%
Samsung Electronics Co. Ltd.		1,086		1,042,420
TOTAL PREFERRED STOCKS (Cost $4,973,669)				4,507,517
EXCHANGE TRADED FUNDS — 1.5%
Mexico — 1.5%
Cemex S.A.B. de C.V. ADR* (Cost $1,849,103)		200,727		2,374,600
SHORT-TERM INVESTMENTS — 1.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,453,799)		2,453,799		2,453,799
TOTAL INVESTMENTS — 100.0% (Cost $134,479,778)			$	160,492,201

~ Fair valued security. The total market value of fair valued securities at December 31, 2013 is $2,729,899.

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

GDR — Global Depository Receipt

NVDR — Non Voting Depositary Receipt.

PCL — Public Company Limited.

PLC — Public Limited Company.

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Advertising		0.3%	$	495,618
Agriculture		0.8%		1,211,672
Airlines		1.1%		1,715,974
Apparel		0.4%		598,867
Auto Manufacturers		1.9%		2,933,648
Auto Parts & Equipment		0.4%		545,742
Banks		16.5%		24,908,295
Beverages		5.2%		7,904,528
Building Materials		0.9%		1,355,525
Chemicals		1.6%		2,439,405
Commercial Services		1.3%		2,000,402
Computers		1.8%		2,663,972
Cosmetics & Personal Care		0.7%		1,065,326
Distribution & Wholesale		0.3%		381,788
Diversified Financial Services		2.3%		3,459,934
Electrical Components & Equipment		0.5%		822,265
Engineering & Construction		2.1%		3,170,845
Entertainment		0.3%		498,348
Environmental Control		1.0%		1,515,074
Food		5.3%		7,937,153
Forest Products & Paper		0.9%		1,397,702
Gas		0.4%		674,361
Healthcare Products		0.6%		891,338
Healthcare Services		0.8%		1,156,894
Holding Companies		2.0%		3,059,639
Home Builders		0.6%		875,253
Hotels & Resorts		0.4%		592,378
Household Products & Wares		1.2%		1,885,431
Housewares		0.4%		612,327
Insurance		2.2%		3,337,081
Internet		6.3%		9,476,608
Investment Companies		0.3%		494,150
Media		2.8%		4,193,787
Oil & Gas		4.0%		5,981,400
Oil & Gas Services		1.3%		1,916,758
Pharmaceuticals		3.7%		5,668,907
Real Estate		1.7%		2,500,432
Retail		6.2%		9,441,323
Semiconductors		8.6%		13,072,623
Shipbuilding		0.6%		851,106
Software		0.5%		802,078
Telecommunications		8.0%		12,066,186
Transportation		1.1%		1,592,983
Water		0.7%		991,159
		100.0%	$	151,156,285

164

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Emerging Markets Equity Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Austria	$	2,881,145	$	2,881,145	$	—	$	—
Brazil		8,201,562		8,201,562		—		—
Chile		1,040,322		1,040,322		—		—
China		16,020,230		16,020,230		—		—
Colombia		494,150		494,150		—		—
Cyprus		663,750		663,750		—		—
Czech Republic		1,279,594		1,279,594		—		—
Hong Kong		5,214,009		5,214,009		—		—
Hungary		1,683,528		1,683,528		—		—
India		11,451,143		9,722,087		1,729,056		—
Indonesia		2,504,285		2,504,285		—		—
Japan		802,078		802,078		—		—
Malaysia		4,631,415		4,631,415		—		—
Mexico		9,325,018		9,325,018		—		—
Netherlands		1,406,863		1,406,863		—		—
Panama		1,246,456		1,246,456		—		—
Peru		1,782,298		1,782,298		—		—
Philippines		5,913,238		5,913,238		—		—
Poland		5,184,487		5,184,487		—		—
Portugal		1,785,450		1,785,450		—		—
Qatar		792,267		792,267		—		—
Russia		4,645,508		4,645,508		—		—
South Africa		4,464,439		4,464,439		—		—
South Korea		25,422,717		24,876,975		545,742		—
Spain		2,015,216		2,015,216		—		—
Switzerland		3,274,388		3,274,388		—		—
Taiwan		11,219,431		10,764,330		455,101		—
Thailand		6,946,717		6,946,717		—		—
Turkey		2,694,215		2,694,215		—		—
United Kingdom		2,538,722		2,538,722		—		—
United States		3,631,644		3,631,644		—		—
EXCHANGE TRADED FUNDS		2,374,600		2,374,600		—		—
PREFERRED STOCKS		4,507,517		4,507,517		—		—
SHORT-TERM INVESTMENTS		2,453,799		2,453,799		—		—
TOTAL INVESTMENTS	$	160,492,201	$	157,762,302	$	2,729,899	$	—

Fair Value of Level 2 investments at 12/31/12 was $109,968,879 which was a result of valuing foreign securities using third-party vendor modeling tools. An amount of $67,749,969 was transferred from Level 2 into Level 1 at 12/31/2013 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.

165

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Real Estate Securities Fund

	Number of Shares		Value†
COMMON STOCKS — 5.9%
Home Builders — 0.7%
Toll Brothers, Inc.*		19,931	$	737,447
Lodging — 1.9%
Hilton Worldwide Holdings Inc*		28,284		629,319
Hyatt Hotels Corp., Class A*		10,176		503,305
Orient-Express Hotels Ltd., Class A		61,692		932,166
				2,064,790
Office Property — 0.8%
Empire State Realty Trust Inc		61,498		940,919
Real Estate — 2.5%
Forest City Enterprises, Inc., Class A*		59,834		1,142,829
Healthcare Trust of America, Inc.*		106,866		1,051,562
QTS Realty Trust Inc		25,741		637,862
				2,832,253
TOTAL COMMON STOCKS (Cost $5,429,994)				6,575,409
REAL ESTATE INVESTMENT TRUSTS — 93.1%
Apartments — 14.5%
Apartment Investment & Management Co., Class A		73,491		1,904,152
BRE Properties, Inc.		24,480		1,339,301
Equity Residential		113,612		5,893,054
Essex Property Trust, Inc.		7,409		1,063,266
Home Properties, Inc.		36,981		1,982,921
UDR, Inc.		169,219		3,951,264
				16,133,958
Building & Real Estate — 2.8%
National Retail Properties, Inc.		39,769		1,206,194
Spirit Realty Capital Inc		112,365		1,104,548
WP Carey, Inc.		13,050		800,617
				3,111,359
Diversified — 10.0%
American Assets Trust, Inc.		35,886		1,127,897
Cousins Properties, Inc.		108,824		1,120,887
Digital Realty Trust, Inc.		9,128		448,367
Duke Realty Corp.		55,846		839,924
PS Business Parks, Inc.		9,030		690,073
Retail Properties of America, Inc. Class A		65,813		837,142
Vornado Realty Trust		68,313		6,065,511
				11,129,801
Healthcare — 9.3%
HCP, Inc.		46,073		1,673,371
Health Care REIT, Inc.		51,086		2,736,677
Omega Healthcare Investors, Inc.		34,944		1,041,331
Ventas, Inc.		85,403		4,891,884
				10,343,263
Hotels & Resorts — 6.2%
DiamondRock Hospitality Co.		104,943		1,212,092
Hersha Hospitality Trust		102,527		571,075

	Number of Shares		Value†
Hotels & Resorts — (continued)
Host Hotels & Resorts, Inc.		138,002	$	2,682,759
Strategic Hotels & Resorts, Inc.*		162,859		1,539,018
Sunstone Hotel Investors, Inc.		66,963		897,304
				6,902,248
Industrial — 5.6%
First Industrial Realty Trust, Inc.		48,293		842,713
Prologis, Inc.		147,688		5,457,071
				6,299,784
Office Property — 11.6%
Boston Properties, Inc.		42,228		4,238,424
Corporate Office Properties Trust		54,684		1,295,464
Douglas Emmett, Inc.		68,739		1,600,931
Hudson Pacific Properties, Inc.		42,941		939,120
SL Green Realty Corp.		52,094		4,812,444
				12,886,383
Regional Malls — 17.7%
General Growth Properties, Inc.		151,023		3,031,032
Glimcher Realty Trust		137,793		1,289,742
Simon Property Group, Inc.		83,494		12,704,447
Tanger Factory Outlet Centers		34,703		1,111,190
Taubman Centers, Inc.		25,556		1,633,540
				19,769,951
Storage & Warehousing — 6.9%
CubeSmart		99,350		1,583,639
Extra Space Storage, Inc.		29,726		1,252,356
Public Storage		26,208		3,944,828
Sovran Self Storage, Inc.		14,433		940,599
				7,721,422
Strip Centers — 8.5%
DDR Corp.		123,330		1,895,582
Federal Realty Investment Trust		22,006		2,231,628
Ramco-Gershenson Properties Trust		73,051		1,149,823
Regency Centers Corp.		51,867		2,401,442
Weingarten Realty Investors		66,637		1,827,187
				9,505,662
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $102,666,660)				103,803,831
SHORT-TERM INVESTMENTS — 1.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,084,327)		1,084,327		1,084,327
TOTAL INVESTMENTS — 100.0% (Cost $109,180,981)			$	111,463,567

† See Security Valuation Note.

* Non-income producing security.

REIT — Real Estate Investment Trust.

166

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Real Estate Securities Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	6,575,409	$	6,575,409	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		103,803,831		103,803,831		—		—
SHORT-TERM INVESTMENTS		1,084,327		1,084,327		—		—
TOTAL INVESTMENTS	$	111,463,567	$	111,463,567	$	—	$	—

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.

167

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Aggressive Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 65.7%
Penn Series Flexibly Managed Fund*		63,330	$	2,262,156
Penn Series Index 500 Fund*		280,565		3,958,773
Penn Series Large Cap Growth Fund*		144,025		1,696,617
Penn Series Large Cap Value Fund*		271,112		5,655,389
Penn Series Large Core Growth Fund		38,007		565,539
Penn Series Large Core Value Fund*		211,337		2,827,695
Penn Series Large Growth Stock Fund*		67,567		1,696,616
Penn Series Mid Cap Growth Fund*		124,843		1,696,617
Penn Series Mid Cap Value Fund*		152,766		2,827,695
Penn Series Mid Core Value Fund*		110,673		1,696,617
Penn Series Real Estate Securities Fund*		163,569		2,262,156
Penn Series Small Cap Growth Fund*		21,406		565,539
Penn Series Small Cap Index Fund*		100,510		1,696,617
Penn Series Small Cap Value Fund*		86,474		2,262,156
Penn Series SMID Cap Growth Fund*		143,976		2,827,695
Penn Series SMID Cap Value Fund*		147,737		2,827,695
TOTAL AFFILIATED EQUITY FUNDS (Cost $22,683,545)				37,325,572
AFFILIATED FIXED INCOME FUNDS — 4.0%
Penn Series Quality Bond Fund* (Cost $2,114,317)		177,424		2,262,156
AFFILIATED INTERNATIONAL EQUITY FUNDS — 29.8%
Penn Series Developed International Index Fund*		414,146		5,089,850
Penn Series Emerging Markets Equity Fund*		347,261		3,958,773
Penn Series International Equity Fund*		348,484		7,917,546
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $12,948,138)				16,966,169
SHORT-TERM INVESTMENTS — 0.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $288,449)		288,449		288,449
TOTAL INVESTMENTS — 100.0% (Cost $38,034,449)			$	56,842,346

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	37,325,572	$	37,325,572	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		2,262,156		2,262,156		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		16,966,169		16,966,169		—		—
SHORT-TERM INVESTMENTS		288,449		288,449		—		—
TOTAL INVESTMENTS	$	56,842,346	$	56,842,346	$	—	$	—

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.

168

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Moderately Aggressive Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 56.7%
Penn Series Flexibly Managed Fund*		257,804	$	9,208,754
Penn Series Index 500 Fund*		978,960		13,813,132
Penn Series Large Cap Growth Fund*		586,296		6,906,566
Penn Series Large Cap Value Fund*		993,274		20,719,698
Penn Series Large Core Growth Fund*		154,717		2,302,189
Penn Series Large Core Value Fund*		688,248		9,208,754
Penn Series Large Growth Stock Fund*		275,052		6,906,566
Penn Series Mid Cap Growth Fund*		338,806		4,604,377
Penn Series Mid Cap Value Fund*		621,877		11,510,943
Penn Series Mid Core Value Fund*		450,526		6,906,566
Penn Series Real Estate Securities Fund*		499,390		6,906,566
Penn Series Small Cap Growth Fund*		87,138		2,302,189
Penn Series Small Cap Index Fund*		409,157		6,906,566
Penn Series Small Cap Value Fund*		264,012		6,906,566
Penn Series SMID Cap Growth Fund*		468,878		9,208,755
Penn Series SMID Cap Value Fund*		360,845		6,906,566
TOTAL AFFILIATED EQUITY FUNDS (Cost $75,633,021)				131,224,753
AFFILIATED FIXED INCOME FUNDS — 18.9%
Penn Series High Yield Bond Fund*		427,122		4,604,377
Penn Series Limited Maturity Bond Fund*		1,002,695		11,510,944
Penn Series Quality Bond Fund*		2,166,766		27,626,264
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $40,132,491)				43,741,585
AFFILIATED INTERNATIONAL EQUITY FUNDS — 23.8%
Penn Series Developed International Index Fund*		1,498,577		18,417,509
Penn Series Emerging Markets Equity Fund*		1,009,732		11,510,943
Penn Series International Equity Fund*		1,114,616		25,324,076
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $40,815,060)				55,252,528
SHORT-TERM INVESTMENTS — 0.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,328,500)		1,328,500		1,328,500
TOTAL INVESTMENTS — 100.0% (Cost $157,909,072)			$	231,547,366

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	131,224,753	$	131,224,753	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		43,741,585		43,741,585		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		55,252,528		55,252,528		—		—
SHORT-TERM INVESTMENTS		1,328,500		1,328,500		—		—
TOTAL INVESTMENTS	$	231,547,366	$	231,547,366	$	—	$	—

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.

169

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Moderate Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 43.9%
Penn Series Flexibly Managed Fund*		589,368	$	21,052,208
Penn Series Index 500 Fund*		1,243,339		17,543,507
Penn Series Large Cap Growth Fund*		893,557		10,526,104
Penn Series Large Cap Value Fund*		1,009,214		21,052,208
Penn Series Large Core Value Fund*		786,704		10,526,104
Penn Series Large Growth Stock Fund*		279,466		7,017,402
Penn Series Mid Cap Growth Fund*		258,183		3,508,701
Penn Series Mid Cap Value Fund*		568,671		10,526,104
Penn Series Mid Core Value Fund*		457,756		7,017,403
Penn Series Real Estate Securities Fund*		507,404		7,017,403
Penn Series Small Cap Growth Fund*		132,805		3,508,701
Penn Series Small Cap Index Fund*		415,723		7,017,403
Penn Series Small Cap Value Fund*		268,249		7,017,403
Penn Series SMID Cap Growth Fund*		535,952		10,526,104
Penn Series SMID Cap Value Fund*		549,953		10,526,104
TOTAL AFFILIATED EQUITY FUNDS (Cost $90,547,261)				154,382,859
AFFILIATED FIXED INCOME FUNDS — 35.9%
Penn Series High Yield Bond Fund*		1,301,930		14,034,805
Penn Series Limited Maturity Bond Fund*		3,667,632		42,104,416
Penn Series Quality Bond Fund*		5,503,845		70,174,027
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $115,516,097)				126,313,248
AFFILIATED INTERNATIONAL EQUITY FUNDS — 17.9%
Penn Series Developed International Index Fund*		1,712,954		21,052,208
Penn Series Emerging Markets Equity Fund*		923,342		10,526,104
Penn Series International Equity Fund*		1,389,890		31,578,312
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $45,407,667)				63,156,624
AFFILIATED MONEY MARKET FUND — 2.0%
Penn Series Money Market Fund (Cost $7,017,460)		7,017,460		7,017,460
SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,055,507)		1,055,507		1,055,507
TOTAL INVESTMENTS — 100.0% (Cost $259,543,992)			$	351,925,698

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	154,382,859	$	154,382,859	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		126,313,248		126,313,248		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		63,156,624		63,156,624		—		—
AFFILIATED MONEY MARKET FUNDS		7,017,460		7,017,460		—		—
SHORT-TERM INVESTMENTS		1,055,507		1,055,507		—		—
TOTAL INVESTMENTS	$	351,925,698	$	351,925,698	$	—	$	—

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.

170

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Moderately Conservative Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 32.8%
Penn Series Flexibly Managed Fund*		216,886	$	7,747,174
Penn Series Index 500 Fund*		235,310		3,320,218
Penn Series Large Cap Growth Fund*		187,901		2,213,479
Penn Series Large Cap Value Fund*		265,278		5,533,696
Penn Series Large Core Value Fund*		165,432		2,213,478
Penn Series Large Growth Stock Fund*		44,076		1,106,739
Penn Series Mid Cap Value Fund*		179,374		3,320,218
Penn Series Mid Core Value Fund*		144,389		2,213,478
Penn Series Real Estate Securities Fund*		160,049		2,213,478
Penn Series Small Cap Index Fund*		131,130		2,213,478
Penn Series SMID Cap Growth Fund*		112,703		2,213,479
Penn Series SMID Cap Value Fund*		115,647		2,213,479
TOTAL AFFILIATED EQUITY FUNDS (Cost $21,900,970)				36,522,394
AFFILIATED FIXED INCOME FUNDS — 52.7%
Penn Series High Yield Bond Fund*		615,996		6,640,435
Penn Series Limited Maturity Bond Fund*		1,928,117		22,134,784
Penn Series Quality Bond Fund*		2,343,683		29,881,959
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $52,495,335)				58,657,178
AFFILIATED INTERNATIONAL EQUITY FUNDS — 9.9%
Penn Series Developed International Index Fund*		360,208		4,426,957
Penn Series Emerging Markets Equity Fund*		97,082		1,106,739
Penn Series International Equity Fund*		243,561		5,533,696
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $7,429,045)				11,067,392
AFFILIATED MONEY MARKET FUND — 4.0%
Penn Series Money Market Fund (Cost $4,426,993)		4,426,993		4,426,993
SHORT-TERM INVESTMENTS — 0.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $639,633)		639,633		639,633
TOTAL INVESTMENTS — 100.0% (Cost $86,891,976)			$	111,313,590

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	36,522,394	$	36,522,394	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		58,657,178		58,657,178		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		11,067,392		11,067,392		—		—
AFFILIATED MONEY MARKET FUNDS		4,426,993		4,426,993		—		—
SHORT-TERM INVESTMENTS		639,633		639,633		—		—
TOTAL INVESTMENTS	$	111,313,590	$	111,313,590	$	—	$	—

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.

171

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2013

Conservative Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 17.8%
Penn Series Flexibly Managed Fund*		150,976	$	5,392,869
Penn Series Index 500 Fund*		95,550		1,348,217
Penn Series Large Cap Growth Fund*		114,450		1,348,217
Penn Series Large Cap Value Fund*		64,632		1,348,217
Penn Series Large Core Value Fund*		50,382		674,109
Penn Series Mid Cap Value Fund*		72,837		1,348,218
Penn Series Mid Core Value Fund*		43,973		674,109
TOTAL AFFILIATED EQUITY FUNDS (Cost $7,949,659)				12,133,956
AFFILIATED FIXED INCOME FUNDS — 67.3%
Penn Series High Yield Bond Fund*		500,266		5,392,869
Penn Series Limited Maturity Bond Fund*		1,468,007		16,852,717
Penn Series Quality Bond Fund*		1,850,494		23,593,803
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $40,450,241)				45,839,389
AFFILIATED INTERNATIONAL EQUITY FUNDS — 4.9%
Penn Series Developed International Index Fund*		164,551		2,022,326
Penn Series International Equity Fund*		59,341		1,348,217
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $2,057,176)				3,370,543
AFFILIATED MONEY MARKET FUND — 8.9%
Penn Series Money Market Fund (Cost $6,067,029)		6,067,029		6,067,029
SHORT-TERM INVESTMENTS — 1.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $722,918)		722,918		722,918
TOTAL INVESTMENTS — 100.0% (Cost $57,247,023)			$	68,133,835

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2013 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2013		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	12,133,956	$	12,133,956	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		45,839,389		45,839,389		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		3,370,543		3,370,543		—		—
AFFILIATED MONEY MARKET FUNDS		6,067,029		6,067,029		—		—
SHORT-TERM INVESTMENTS		722,918		722,918		—		—
TOTAL INVESTMENTS	$	68,133,835	$	68,133,835	$	—	$	—

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.

172

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2013

	Money Market Fund		Limited Maturity Bond Fund		Quality Bond Fund			High Yield Bond Fund
ASSETS
Investments at value	$	124,519,929	$	238,386,517	$	531,377,502		$	185,175,211
Foreign currency, at value		—		—		—			217,272
Cash		—		—		—			14,652
Interest, dividends and reclaims receivable		24,777		892,962		2,856,896			3,172,962
Receivable for investment securities sold		—		—		99,247			351,916
Receivable from The Penn Mutual Life Insurance Co.		1,450		—		—			—
Receivable for capital stock sold		638,336		4,605,400		12,949,145			959,614
Net unrealized appreciation of forward foreign currency contracts		—		—		—			6,085
Other assets		3,806		5,266		10,839			5,090
Total Assets		125,188,298		243,890,145		547,293,629			189,902,802
LIABILITIES
Payable for investment securities purchased		—		—		—			651,125
Payable for capital stock redeemed		275,239		45,567		84,805			153,832
Payable to investment adviser		—		58,897		142,519			79,667
Payable to The Penn Mutual Life Insurance Co.		—		78,043		210,147			70,650
Net unrealized depreciation of forward foreign currency contracts		—		—		—			109,516
Other liabilities		32,043		40,482		97,492			50,077
Total Liabilities		307,282		222,989		534,963			1,114,867
NET ASSETS	$	124,881,016	$	243,667,156	$	546,758,666		$	188,787,935
Investments at cost	$	124,519,929	$	237,539,379	$	525,919,013		$	177,489,826
Foreign currency at cost		—		—		—			214,993
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	124,881,016	$	242,820,018	$	541,594,427		$	183,262,122
Undistributed net investment income (loss)		—		—		—			(246,879	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		—		—		(294,250	)		(1,817,790	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		—		847,138		5,458,489			7,590,482
NET ASSETS	$	124,881,016	$	243,667,156	$	546,758,666		$	188,787,935
Shares outstanding, $0.10 par value, 500 million shares authorized		124,865,090
Shares outstanding, $0.10 par value, 250 million shares authorized						42,898,591			17,512,298
Shares outstanding, $0.0001 par value, 250 million shares authorized				21,216,585
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	1.00	$	11.48	$	12.75		$	10.78

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

173

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2013

	Flexibly Managed Fund			Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
ASSETS
Investments of affiliated issuers at value	$	—		$	78,404,331		$	—		$	—
Investments of unaffiliated issuers at value		2,702,567,727			232,858			265,737,885			55,367,736
Foreign currency, at value		989,522			—			2,522			—
Cash		191,094			—			—			500
Interest, dividends and reclaims receivable		8,669,837			2			79,922			62,070
Receivable for investment securities sold		11,144,194			1,977,604			188,029			1,383,875
Receivable for capital stock sold		203,226			40,364			16,205			9,358
Other assets		68,619			2,098			58,555			1,408
Total Assets		2,723,834,219			80,657,257			266,083,118			56,824,947
LIABILITIES
Call options written, at value		14,741,868			—			—			—
Payable for investment securities purchased		17,794,025			1,930,461			—			—
Payable for capital stock redeemed		3,085,173			50,025			3,445,599			2,004,272
Payable to investment adviser		1,347,462			—			136,569			25,809
Payable to The Penn Mutual Life Insurance Co.		980,978			22,300			97,067			20,557
Other liabilities		380,331			12,438			46,133			12,432
Total Liabilities		38,329,837			2,015,224			3,725,368			2,063,070
NET ASSETS	$	2,685,504,382		$	78,642,033		$	262,357,750		$	54,761,877
Investments of affiliated issuers at cost	$	—		$	51,362,923		$	—		$	—
Investments of unaffiliated issuers at cost		2,179,251,716			232,858			161,340,694			47,657,228
Foreign currency at cost		991,293			—			2,573			—
Call options written, premiums received		(7,233,242	)		—			—			—
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	2,175,607,650		$	55,479,612		$	158,318,358		$	47,135,118
Undistributed net investment income (loss)		(668,781	)		—			—			(116	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(5,243,744	)		(3,878,987	)		(358,130	)		(83,559	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		515,809,257			27,041,408			104,397,522			7,710,434
NET ASSETS	$	2,685,504,382		$	78,642,033		$	262,357,750		$	54,761,877
Shares outstanding, $0.10 par value, 250 million shares authorized		75,189,222						10,450,081
Shares outstanding, $0.0001 par value, 250 million shares authorized					5,347,327						4,650,331
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	35.72		$	14.71		$	25.11		$	11.78

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

174

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2013

	Large Core Growth Fund			Large Cap Value Fund			Large Core Value Fund			Index 500 Fund
ASSETS
Investments at value	$	128,680,969		$	220,456,598		$	187,633,289		$	401,056,453
Cash		—			—			—			838
Interest, dividends and reclaims receivable		33,441			332,401			238,477			541,869
Receivable for investment securities sold		—			—			—			5,071,401
Receivable for capital stock sold		3,119			798,464			13,996			18,851
Futures receivable		—			—			—			12,160
Other assets		3,269			7,466			5,097			13,826
Total Assets		128,720,798			221,594,929			187,890,859			406,715,398
LIABILITIES
Payable for capital stock redeemed		826,754			4,012,185			2,059,094			7,929,572
Payable to investment adviser		64,538			109,581			93,585			23,607
Payable to The Penn Mutual Life Insurance Co.		46,808			79,404			70,553			148,015
Other liabilities		26,189			42,708			37,300			76,993
Total Liabilities		964,289			4,243,878			2,260,532			8,178,187
NET ASSETS	$	127,756,509		$	217,351,051		$	185,630,327		$	398,537,211
Investments at cost	$	85,718,771		$	186,581,260		$	134,739,771		$	255,540,250
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	89,430,571		$	183,972,626		$	140,118,113		$	272,943,123
Undistributed net investment income (loss)		—			—			7,956			(5,712	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(4,636,260	)		(496,912	)		(7,389,260	)		(19,924,584	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		42,962,198			33,875,337			52,893,518			145,524,384
NET ASSETS	$	127,756,509		$	217,351,051		$	185,630,327		$	398,537,211
Shares outstanding, $0.10 par value, 250 million shares authorized					10,421,704
Shares outstanding, $0.0001 par value, 250 million shares authorized		8,586,201						13,871,686			28,240,861
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	14.88		$	20.86		$	13.38		$	14.11

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

175

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2013

	Mid Cap Growth Fund			Mid Cap Value Fund		Mid Core Value Fund			SMID Cap Growth Fund
ASSETS
Investments at value	$	121,061,923		$	173,109,781	$	72,612,926		$	64,862,625
Cash		3,128			—		500			—
Interest, dividends and reclaims receivable		22,190			350,141		164,031			18,953
Receivable for investment securities sold		—			—		312,326			55,090
Receivable for capital stock sold		7,296			564,749		9,358			12,612
Net unrealized appreciation of forward foreign currency contracts		—			—		223			—
Other assets		3,143			4,351		5,122			1,620
Total Assets		121,097,680			174,029,022		73,104,486			64,950,900
LIABILITIES
Payable for investment securities purchased		—			—		238,818			422,653
Payable for capital stock redeemed		394,670			862,116		878,584			825,863
Payable to investment adviser		70,303			78,997		43,546			37,657
Payable to The Penn Mutual Life Insurance Co.		44,123			62,648		26,543			23,207
Net unrealized depreciation of forward foreign currency contracts		—			—		18,631			—
Other liabilities		25,913			31,159		24,150			14,961
Total Liabilities		535,009			1,034,920		1,230,272			1,324,341
NET ASSETS	$	120,562,671		$	172,994,102	$	71,874,214		$	63,626,559
Investments at cost	$	91,916,752		$	136,549,487	$	66,377,631		$	47,712,467
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	91,451,913		$	136,375,725	$	65,773,674		$	46,534,351
Undistributed net investment income (loss)		—			58,083		29,853			—
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(34,413	)		—		(146,182	)		(57,950	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		29,145,171			36,560,294		6,216,869			17,150,158
NET ASSETS	$	120,562,671		$	172,994,102	$	71,874,214		$	63,626,559
Shares outstanding, $0.0001 par value, 250 million shares authorized		8,869,891			9,345,450		4,689,469			3,240,059
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	13.59		$	18.51	$	15.33		$	19.64

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

176

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2013

	SMID Cap Value Fund			Small Cap Growth Fund			Small Cap Value Fund			Small Cap Index Fund
ASSETS
Investments at value	$	64,671,521		$	90,367,675		$	240,023,535		$	65,601,136
Cash		—			—			3,636			—
Interest, dividends and reclaims receivable		104,146			42,759			447,312			77,716
Receivable for investment securities sold		236,417			181,449			499,467			1,104
Receivable for capital stock sold		9,627			3,945			9,493			9,358
Futures receivable		—			—			—			2,400
Other assets		1,595			2,296			15,811			3,416
Total Assets		65,023,306			90,598,124			240,999,254			65,695,130
LIABILITIES
Payable for investment securities purchased		237,183			—			446,637			—
Payable for capital stock redeemed		1,161,427			942,040			1,477,374			782,005
Payable to investment adviser		42,976			55,522			169,419			5,959
Payable to The Penn Mutual Life Insurance Co.		22,966			32,568			86,615			23,773
Other liabilities		14,990			29,008			47,638			23,170
Total Liabilities		1,479,542			1,059,138			2,227,683			834,907
NET ASSETS	$	63,543,764		$	89,538,986		$	238,771,571		$	64,860,223
Investments at cost	$	48,027,945		$	71,725,047		$	177,899,765		$	44,989,351
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	47,030,877		$	71,015,354		$	177,334,140		$	44,531,056
Undistributed net investment income (loss)		—			2,468			(145,426	)		(9,158	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(130,688	)		(121,464	)		(540,913	)		(297,039	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		16,643,575			18,642,628			62,123,770			20,635,364
NET ASSETS	$	63,543,764		$	89,538,986		$	238,771,571		$	64,860,223
Shares outstanding, $0.10 par value, 250 million shares authorized					3,389,047			9,128,471
Shares outstanding, $0.0001 par value, 250 million shares authorized		3,320,396									3,843,353
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	19.14		$	26.42		$	26.16		$	16.88

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

177

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2013

	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
ASSETS
Investments at value	$	102,530,100		$	372,111,591		$	160,492,201		$	111,463,567
Foreign currency, at value		447,609			—			800,648			—
Cash		—			—			10,285			—
Interest, dividends and reclaims receivable		219,217			611,544			131,565			466,959
Receivable for investment securities sold		—			—			386,459			33,089
Receivable from investment adviser		8,658			—			—			—
Receivable for capital stock sold		366,448			5,986,697			2,611,913			2,464,513
Futures receivable		49,332			—			—			—
Net unrealized appreciation of forward foreign currency contracts		—			—			16,844			—
Other assets		145,185			10,226			4,413			3,132
Total Assets		103,766,549			378,720,058			164,454,328			114,431,260
LIABILITIES
Payable for investment securities purchased		—			—			838,451			—
Payable for capital stock redeemed		429,823			22,066			7,535			4,340
Payable to investment adviser		—			262,901			128,053			66,288
Payable to The Penn Mutual Life Insurance Co.		37,571			139,664			61,131			43,070
Deferred Indian capital gains tax		—			—			93,667			—
Other liabilities		66,416			106,734			146,658			27,368
Total Liabilities		533,810			531,365			1,275,495			141,066
NET ASSETS	$	103,232,739		$	378,188,693		$	163,178,833		$	114,290,194
Investments at cost	$	76,961,046		$	290,578,194		$	134,479,778		$	109,180,981
Foreign currency at cost		446,655			—			801,790			—
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	80,323,347		$	321,060,729		$	146,520,737		$	112,237,799
Undistributed net investment income (loss)		(421,083	)		(4,404,305	)		(542,509	)		—
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(2,345,297	)		(20,014,517	)		(8,736,825	)		(230,192	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		25,675,772			81,546,786			25,937,430			2,282,587
NET ASSETS	$	103,232,739		$	378,188,693		$	163,178,833		$	114,290,194
Shares outstanding, $0.10 par value, 250 million shares authorized					16,643,924
Shares outstanding, $0.0001 par value, 250 million shares authorized		8,401,948						14,319,866			8,265,293
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	12.29		$	22.72		$	11.40		$	13.83

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

178

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2013

	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	56,553,897		$	230,218,866		$	350,870,191		$	110,673,957
Investments of unaffiliated issuers at value		288,449			1,328,500			1,055,507			639,633
Interest, dividends and reclaims receivable		8			29			43			4
Receivable for investment securities sold		1,428,141			4,113,949			6,922,644			2,888,879
Receivable for capital stock sold		82,431			64,131			2,351			99,385
Other assets		1,410			5,897			9,264			3,054
Total Assets		58,354,336			235,731,372			358,860,000			114,304,912
LIABILITIES
Payable for investment securities purchased		1,441,595			4,412,437			6,811,145			2,784,500
Payable for capital stock redeemed		—			2			1,678,060			13
Payable to investment adviser		4,269			19,218			29,431			9,378
Payable to The Penn Mutual Life Insurance Co.		20,354			84,123			130,072			42,009
Other liabilities		8,890			30,209			47,051			16,549
Total Liabilities		1,475,108			4,545,989			8,695,759			2,852,449
NET ASSETS	$	56,879,228		$	231,185,383		$	350,164,241		$	111,452,463
Investments of affiliated issuers at cost	$	37,746,000		$	156,580,572		$	258,488,485		$	86,252,343
Investments of unaffiliated issuers at cost		288,449			1,328,500			1,055,507			639,633
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	38,491,575		$	159,696,815		$	259,478,806		$	87,817,206
Undistributed net investment income (loss)		—			—			—			—
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(420,245	)		(2,149,728	)		(1,696,271	)		(786,356	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		18,807,898			73,638,296			92,381,706			24,421,613
NET ASSETS	$	56,879,228		$	231,185,383		$	350,164,241		$	111,452,463
Shares outstanding, $0.0001 par value, 250 million shares authorized		4,017,045			15,624,573			25,610,311			8,588,095
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	14.16		$	14.80		$	13.67		$	12.98

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

179

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2013

	Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	67,410,917
Investments of unaffiliated issuers at value		722,918
Interest, dividends and reclaims receivable		1
Receivable for investment securities sold		991,934
Receivable for capital stock sold		52,584
Other assets		1,928
Total Assets		69,180,282
LIABILITIES
Payable for investment securities purchased		950,848
Payable to investment adviser		6,547
Payable to The Penn Mutual Life Insurance Co.		26,319
Other liabilities		11,688
Total Liabilities		995,402
NET ASSETS	$	68,184,880
Investments of affiliated issuers at cost	$	56,524,105
Investments of unaffiliated issuers at cost		722,918
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	57,755,332
Undistributed net investment income (loss)		—
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(457,264	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		10,886,812
NET ASSETS	$	68,184,880
Shares outstanding, $0.0001 par value, 250 million shares authorized		5,560,398
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	12.26

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

180

Penn Series Funds, Inc.

Statements of Operations

For The Year Ended December 31, 2013

	Money Market Fund			Limited Maturity Bond Fund			Quality Bond Fund			High Yield Bond Fund
INVESTMENT INCOME:
Dividends	$	1,829		$	1,135		$	6,049		$	95,507
Interest		220,257			2,296,629			13,517,549			12,542,570
Total Investment Income		222,086			2,297,764			13,523,598			12,638,077
EXPENSES
Investment advisory fees		247,479			587,683			1,689,978			931,570
Administration fees		197,479			293,842			819,989			279,471
Accounting fees		85,826			117,947			243,998			113,157
Director fees and expenses		6,132			8,915			25,351			8,583
Custodian fees and expenses		31,024			20,589			58,293			49,943
Pricing fees		10,060			12,869			23,220			68,309
Professional fees		17,701			27,686			78,895			31,494
Printing fees		11,265			17,518			49,502			17,547
Other expenses		26,052			28,047			78,665			25,666
Total Expenses		633,018			1,115,096			3,067,891			1,525,740
Less: Waivers and reimbursement from advisor		247,479			—			—			—
Less: Waivers and reimbursement from administrator		176,604			—			—			—
Net Expenses		208,935			1,115,096			3,067,891			1,525,740
Net investment income (loss)		13,151			1,182,668			10,455,707			11,112,337
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		—			167,105			162,217			4,828,712
Net realized foreign currency exchange gain (loss)		—			—			—			(720,976	)
Change in net unrealized appreciation (depreciation) of investments and foreign currency		—			(1,512,020	)		(26,300,466	)		(1,253,621	)
Net Gain (Loss) on Investment Securities and Foreign Currency		—			(1,344,915	)		(26,138,249	)		2,854,115
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	13,151		$	(162,247	)	$	(15,682,542	)	$	13,966,452
	Flexibly Managed Fund			Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
INVESTMENT INCOME:
Dividends	$	27,008,531		$	26		$	1,672,915		$	552,546
Interest		17,517,164			—			—			274
Foreign tax withheld		(28,598	)		—			(15,841	)		(10,417	)
Total Investment Income		44,497,097			26			1,657,074			542,403
EXPENSES
Investment advisory fees		14,262,311			—			1,481,227			229,649
Administration fees		3,565,578			114,896			357,807			62,631
Accounting fees		615,410			12,001			139,269			32,398
Director fees and expenses		107,585			3,539			10,788			1,914
Custodian fees and expenses		280,607			7,647			53,634			19,939
Pricing fees		42,295			3,346			21,007			13,051
Professional fees		338,030			10,664			33,533			4,588
Printing fees		214,681			6,983			21,593			2,894
Other expenses		261,917			10,869			30,128			7,739
Total Expenses		19,688,414			169,945			2,148,986			374,803
Less: Waivers and reimbursement from administrator		—			20,510			—			—
Net Expenses		19,688,414			149,435			2,148,986			374,803
Net investment income (loss)		24,808,683			(149,409	)		(491,912	)		167,600
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		176,932,010			2,571,982			34,772,193			5,420,481
Net realized gain (loss) on options		1,661,726			—			—			—
Net realized foreign currency exchange gain (loss)		167,635			—			(6,530	)		(1,828	)
Change in net unrealized appreciation (depreciation) of investments and foreign currency		274,455,490			9,322,862			44,513,129			4,250,969
Change in net unrealized appreciation (depreciation) of written options		(7,499,889	)		—			—			—
Net Gain (Loss) on Investment Securities and Foreign Currency		445,716,972			11,894,844			79,278,792			9,669,622
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	470,525,655		$	11,745,435		$	78,786,880		$	9,837,222

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

181

Penn Series Funds, Inc.

Statements of Operations

For The Year Ended December 31, 2013

	Large Core Growth Fund			Large Cap Value Fund			Large Core Value Fund			Index 500 Fund
INVESTMENT INCOME:
Dividends	$	952,187		$	3,942,992		$	3,849,725		$	7,501,769
Interest		—			23			—			238
Foreign tax withheld		(18,118	)		(26,369	)		(40,595	)		(1,396	)
Total Investment Income		934,069			3,916,646			3,809,130			7,500,611
EXPENSES
Investment advisory fees		697,369			1,154,828			1,080,795			254,872
Administration fees		174,342			288,707			270,199			546,155
Accounting fees		78,114			116,236			110,066			189,231
Director fees and expenses		5,275			8,768			8,267			16,518
Custodian fees and expenses		22,475			39,413			23,725			49,366
Pricing fees		4,496			7,635			4,610			11,738
Professional fees		15,818			25,503			25,467			71,913
Printing fees		10,271			16,737			16,447			33,073
Other expenses		15,912			24,676			22,766			68,919
Total Expenses		1,024,072			1,682,503			1,562,342			1,241,785
Net investment income (loss)		(90,003	)		2,234,143			2,246,788			6,258,827
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		17,891,956			32,258,514			24,854,649			380,831
Net realized gain (loss) on futures contracts		—			—			—			2,032,773
Change in net unrealized appreciation (depreciation) of investments and foreign currency		19,480,922			20,425,657			19,094,604			91,056,416
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			15,134
Net Gain (Loss) on Investment Securities and Foreign Currency		37,372,878			52,684,171			43,949,253			93,485,154
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	37,282,875		$	54,918,314		$	46,196,041		$	99,743,981
	Mid Cap Growth Fund			Mid Cap Value Fund			Mid Core Value Fund			SMID Cap Growth Fund
INVESTMENT INCOME:
Dividends	$	550,081		$	3,044,802		$	1,347,950		$	232,190
Interest		—			—			9			—
Foreign tax withheld		(1,104	)		(2,565	)		(3,599	)		—
Total Investment Income		548,977			3,042,237			1,344,360			232,190
EXPENSES
Investment advisory fees		778,485			825,236			473,719			395,634
Administration fees		166,818			225,064			98,692			79,127
Accounting fees		75,606			95,021			46,056			36,926
Director fees and expenses		5,110			6,794			3,011			2,386
Custodian fees and expenses		18,577			16,900			46,855			24,336
Pricing fees		5,763			5,510			13,380			4,823
Professional fees		14,966			21,985			8,593			7,516
Printing fees		9,739			13,688			5,661			4,671
Recaptured administration fees		6,750			—			—			—
Other expenses		16,169			18,179			11,437			8,902
Total Expenses		1,097,983			1,228,377			707,404			564,321
Less: Waivers and reimbursement from advisor		—			—			—			10,433
Net Expenses		1,097,983			1,228,377			707,404			553,888
Net investment income (loss)		(549,006	)		1,813,860			636,956			(321,698	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		15,386,864			14,415,162			16,721,213			6,092,451
Net realized foreign currency exchange gain (loss)		—			—			53,040			—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		19,609,170			29,010,915			(921,401	)		12,737,247
Net Gain (Loss) on Investment Securities and Foreign Currency		34,996,034			43,426,077			15,852,852			18,829,698
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	34,447,028		$	45,239,937		$	16,489,808		$	18,508,000

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

182

Penn Series Funds, Inc.

Statements of Operations

For The Year Ended December 31, 2013

	SMID Cap Value Fund			Small Cap Growth Fund			Small Cap Value Fund			Small Cap Index Fund
INVESTMENT INCOME:
Dividends	$	851,124		$	473,315		$	3,338,425		$	693,895
Interest		—			1			1			107
Foreign tax withheld		—			(3,596	)		(4,281	)		(604	)
Total Investment Income		851,124			469,720			3,334,145			693,398
EXPENSES
Investment advisory fees		521,020			610,087			1,776,997			164,698
Administration fees		82,266			122,697			313,588			82,349
Accounting fees		38,391			57,259			124,529			38,429
Director fees and expenses		2,479			3,780			9,517			2,472
Custodian fees and expenses		15,574			46,555			58,318			38,577
Pricing fees		4,902			6,363			8,260			29,047
Professional fees		7,926			10,946			28,970			7,928
Printing fees		5,015			6,948			18,544			4,981
Recaptured advisory fees		—			—			8,830			—
Other expenses		9,545			12,864			25,849			18,907
Total Expenses		687,118			877,499			2,373,402			387,388
Less: Waivers and reimbursement from advisor		61,894			—			—			85,442
Net Expenses		625,224			877,499			2,373,402			301,946
Net investment income (loss)		225,900			(407,779	)		960,743			391,452
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		5,808,126			13,175,499			32,584,526			2,344,619
Net realized gain (loss) on futures contracts		—			—			—			413,036
Net realized foreign currency exchange gain (loss)		—			(342	)		—			—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		11,071,821			13,509,581			34,551,777			14,259,731
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			(17,667	)
Net Gain (Loss) on Investment Securities and Foreign Currency		16,879,947			26,684,738			67,136,303			16,999,719
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	17,105,847		$	26,276,959		$	68,097,046		$	17,391,171
	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
INVESTMENT INCOME:
Dividends	$	3,280,708		$	8,710,064		$	3,411,810		$	2,614,258
Interest		3,551			—			—			—
Foreign tax withheld		(239,994	)		(402,935	)		(384,536	)		—
Total Investment Income		3,044,265			8,307,129			3,027,274			2,614,258
EXPENSES
Investment advisory fees		295,549			3,125,051			1,853,404			781,795
Administration fees		147,775			551,480			235,602			167,528
Accounting fees		78,632			240,592			114,241			75,840
Director fees and expenses		4,564			17,062			7,219			5,111
Custodian fees and expenses		101,178			218,579			494,850			31,903
Pricing fees		192,664			29,627			49,152			5,332
Professional fees		15,043			54,332			72,601			16,475
Printing fees		9,634			33,680			14,569			10,671
Other expenses		65,684			47,106			21,469			16,243
Total Expenses		910,723			4,317,509			2,863,107			1,110,898
Less: Waivers and reimbursement from advisor		329,477			—			224,362			—
Net Expenses		581,246			4,317,509			2,638,745			1,110,898
Net investment income (loss)		2,463,019			3,989,620			388,529			1,503,360
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		(1,802,237	)		22,058,244			222,312			6,127,089
Net realized gain (loss) on futures contracts		305,533			—			—			—
Net realized foreign currency exchange gain (loss)		(9,919	)		(491,798	)		(115,528	)		—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		17,652,308			(4,396,386	)		(2,318,916	)		(4,923,112	)
Change in net unrealized appreciation (depreciation) of futures contracts		54,290			—			—			—
Net Gain (Loss) on Investment Securities and Foreign Currency		16,199,975			17,170,060			(2,212,132	)		1,203,977
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	18,662,994		$	21,159,680		$	(1,823,603	)	$	2,707,337

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

183

Penn Series Funds, Inc.

Statements of Operations

For The Year Ended December 31, 2013

	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
INVESTMENT INCOME:
Dividends	$	25		$	119		$	770		$	480
Interest		—			4			—			—
Total Investment Income		25			123			770			480
EXPENSES
Investment advisory fees		49,147			205,833			326,238			107,556
Administration fees		73,720			308,749			489,357			161,333
Accounting fees		12,001			20,583			32,624			12,001
Director fees and expenses		2,223			9,355			14,924			4,935
Custodian fees and expenses		4,911			20,575			32,619			10,744
Pricing fees		3,634			3,655			3,669			3,610
Professional fees		7,136			29,699			46,852			14,789
Printing fees		4,550			18,819			30,033			9,775
Recaptured advisory fees		—			—			—			1,818
Other expenses		7,224			24,858			39,034			14,901
Total Expenses		164,546			642,126			1,015,350			341,462
Less: Waivers and reimbursement from advisor		2,362			—			—			—
Net Expenses		162,184			642,126			1,015,350			341,462
Net investment income (loss)		(162,159	)		(642,003	)		(1,014,580	)		(340,982	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		700,038			3,319,129			6,848,949			2,737,934
Change in net unrealized appreciation (depreciation) of investments and foreign currency		9,317,125			33,132,324			36,953,271			7,065,143
Net Gain (Loss) on Investment Securities and Foreign Currency		10,017,163			36,451,453			43,802,220			9,803,077
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	9,855,004		$	35,809,450		$	42,787,640		$	9,462,095
	Conservative Allocation Fund
INVESTMENT INCOME:
Dividends	$	688
Total Investment Income		688
EXPENSES
Investment advisory fees		70,653
Administration fees		105,979
Accounting fees		12,001
Director fees and expenses		3,291
Custodian fees and expenses		7,052
Pricing fees		3,498
Professional fees		9,975
Printing fees		6,469
Recaptured advisory fees		3,097
Other expenses		11,170
Total Expenses		233,185
Less: Waivers and reimbursement from advisor		31
Net Expenses		233,154
Net investment income (loss)		(232,466	)
NET REALIZED GAINS (LOSSES) ON INVESTMENT TRANSACTIONS
Net realized gains (losses) on investment transactions		1,818,220
Change in net unrealized appreciation (depreciation) of investments and foreign currency		1,470,305
Net Gain (Loss) on Investment Securities and Foreign Currency		3,288,525
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	3,056,059

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

184

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Money Market Fund						Limited Maturity Bond Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	13,151		$	14,219		$	1,182,668		$	1,514,652
Net realized gains (loss) from investment transactions		—			—			167,105			448,630
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		—			—			(1,512,020	)		(793,227	)
Net Increase (Decrease) in Net Assets Resulting from Operations		13,151			14,219			(162,247	)		1,170,055
Distributions from:
Net investment income		(13,151	)		(14,219	)		—			—
Total Distributions		(13,151	)		(14,219	)		—			—
Capital Share Transactions (1):
Shares issued		134,904,829			67,395,153			93,163,341			59,463,883
Shares issued in lieu of cash distributions		13,153			14,221			—			—
Shares redeemed		(151,761,830	)		(79,897,815	)		(51,719,394	)		(32,538,080	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(16,843,848	)		(12,488,441	)		41,443,947			26,925,803
Total Increase (Decrease)		(16,843,848	)		(12,488,441	)		41,281,700			28,095,858
Net Assets:
Beginning of period		141,724,864			154,213,305			202,385,456			174,289,598
End of Period	$	124,881,016		$	141,724,864		$	243,667,156		$	202,385,456
Undistributed net investment income (loss)	$	—		$	—		$	—		$	—
(1) Shares Issued and Redeemed:
Shares issued		134,904,829			67,395,153			8,107,656			5,185,945
Shares issued in lieu of cash distributions		13,153			14,220			—			—
Shares redeemed		(151,761,830	)		(79,897,815	)		(4,503,971	)		(2,837,332	)
		(16,843,848	)		(12,488,442	)		3,603,685			2,348,613
	Quality Bond Fund						High Yield Bond Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	10,455,707		$	10,780,160		$	11,112,337		$	10,524,826
Net realized gains (loss) from investment transactions		162,217			7,891,403			4,828,712			1,979,645
Net realized foreign currency exchange gain (loss)		—			—			(720,976	)		(59,891	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(26,300,466	)		(2,249,948	)		(1,253,621	)		9,169,277
Net Increase (Decrease) in Net Assets Resulting from Operations		(15,682,542	)		16,421,615			13,966,452			21,613,857
Capital Share Transactions (1):
Shares issued		138,595,418			127,855,036			27,295,243			38,921,761
Shares redeemed		(144,553,737	)		(53,483,062	)		(32,193,986	)		(22,105,695	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(5,958,319	)		74,371,974			(4,898,743	)		16,816,066
Total Increase (Decrease)		(21,640,861	)		90,793,589			9,067,709			38,429,923
Net Assets:
Beginning of period		568,399,527			477,605,938			179,720,226			141,290,303
End of Period	$	546,758,666		$	568,399,527		$	188,787,935		$	179,720,226
Undistributed net investment income (loss)	$	—		$	—		$	(246,879	)	$	(178,614	)
(1) Shares Issued and Redeemed:
Shares issued		10,832,965			9,864,734			2,636,071			4,130,067
Shares redeemed		(11,195,971	)		(4,120,860	)		(3,106,563	)		(2,341,547	)
		(363,006	)		5,743,874			(470,492	)		1,788,520

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

185

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Flexibly Managed Fund						Balanced Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	24,808,683		$	29,514,838		$	(149,409	)	$	(136,275	)
Net realized gains (loss) from investment transactions		176,932,010			119,656,433			2,571,982			489,045
Net realized gains (loss) on options		1,661,726			3,124,180			—			—
Net realized foreign currency exchange gain (loss)		167,635			176,998			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		274,455,490			99,438,455			9,322,862			6,556,094
Net change in unrealized appreciation (depreciation) of written options		(7,499,889	)		(2,635,101	)		—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		470,525,655			249,275,803			11,745,435			6,908,864
Capital Share Transactions (1):
Shares issued		289,558,729			186,656,248			7,405,477			7,830,866
Shares redeemed		(84,991,839	)		(80,774,683	)		(12,109,877	)		(8,480,465	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		204,566,890			105,881,565			(4,704,400	)		(649,599	)
Total Increase (Decrease)		675,092,545			355,157,368			7,041,035			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	$	2,685,504,382		$	2,010,411,837		$	78,642,033		$	71,600,999
Undistributed net investment income (loss)	$	(668,781	)	$	15,607		$	—		$	—
(1) Shares Issued and Redeemed:
Shares issued		8,961,273			6,711,343			549,274			640,305
Shares redeemed		(2,586,030	)		(2,900,659	)		(885,032	)		(689,427	)
		6,375,243			3,810,684			(335,758	)		(49,122	)
	Large Growth Stock Fund						Large Cap Growth Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(491,912	)	$	59,893		$	167,600		$	20,386
Net realized gains (loss) from investment transactions		34,772,193			9,896,129			5,420,481			2,817,106
Net realized foreign currency exchange gain (loss)		(6,530	)		224			(1,828	)		—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		44,513,129			23,402,286			4,250,969			1,054,632
Net Increase (Decrease) in Net Assets Resulting from Operations		78,786,880			33,358,532			9,837,222			3,892,124
Capital Share Transactions (1):
Shares issued		24,914,584			27,175,685			25,458,062			5,177,817
Shares redeemed		(52,342,379	)		(26,227,584	)		(10,284,187	)		(16,784,503	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(27,427,795	)		948,101			15,173,875			(11,606,686	)
Total Increase (Decrease)		51,359,085			34,306,633			25,011,097			(7,714,562	)
Net Assets:
Beginning of period		210,998,665			176,692,032			29,750,780			37,465,342
End of Period	$	262,357,750		$	210,998,665		$	54,761,877		$	29,750,780
Undistributed net investment income (loss)	$	—		$	(922	)	$	(116	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		1,205,104			1,555,229			2,504,914			543,518
Shares redeemed		(2,445,057	)		(1,487,354	)		(962,621	)		(1,751,342	)
		(1,239,953	)		67,875			1,542,293			(1,207,824	)

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

186

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Large Core Growth Fund						Large Cap Value Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(90,003	)	$	181,137		$	2,234,143		$	2,226,798
Net realized gains (loss) from investment transactions		17,891,956			10,011,947			32,258,514			4,136,843
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		19,480,922			5,944,921			20,425,657			14,216,737
Net Increase (Decrease) in Net Assets Resulting from Operations		37,282,875			16,138,005			54,918,314			20,580,378
Capital Share Transactions (1):
Shares issued		5,819,055			5,520,091			23,655,160			14,197,878
Shares redeemed		(21,397,991	)		(16,002,619	)		(28,177,632	)		(33,879,116	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(15,578,936	)		(10,482,528	)		(4,522,472	)		(19,681,238	)
Total Increase (Decrease)		21,703,939			5,655,477			50,395,842			899,140
Net Assets:
Beginning of period		106,052,570			100,397,093			166,955,209			166,056,069
End of Period	$	127,756,509		$	106,052,570		$	217,351,051		$	166,955,209
Undistributed net investment income (loss)	$	—		$	—		$	—		$	—
(1) Shares Issued and Redeemed:
Shares issued		466,936			521,680			1,291,817			951,186
Shares redeemed		(1,706,084	)		(1,506,615	)		(1,531,580	)		(2,294,165	)
		(1,239,148	)		(984,935	)		(239,763	)		(1,342,979	)
	Large Core Value Fund						Index 500 Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	2,246,788		$	2,524,594		$	6,258,827		$	5,654,080
Net realized gains (loss) from investment transactions		24,854,649			6,610,428			380,831			1,507,044
Net realized gains (loss) on futures contracts		—			—			2,032,773			803,450
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		19,094,604			12,915,375			91,071,550			33,752,398
Net Increase (Decrease) in Net Assets Resulting from Operations		46,196,041			22,050,397			99,743,981			41,716,972
Capital Share Transactions (1):
Shares issued		16,345,085			11,302,178			46,832,775			45,964,219
Shares redeemed		(35,500,124	)		(17,909,949	)		(60,185,970	)		(42,543,806	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(19,155,039	)		(6,607,771	)		(13,353,195	)		3,420,413
Total Increase (Decrease)		27,041,002			15,442,626			86,390,786			45,137,385
Net Assets:
Beginning of period		158,589,325			143,146,699			312,146,425			267,009,040
End of Period	$	185,630,327		$	158,589,325		$	398,537,211		$	312,146,425
Undistributed net investment income (loss)	$	7,956		$	—		$	(5,712	)	$	—
(1) Shares Issued and Redeemed:
Shares issued		1,389,827			1,147,547			3,809,166			4,463,705
Shares redeemed		(2,898,829	)		(1,821,615	)		(4,753,423	)		(4,137,233	)
		(1,509,002	)		(674,068	)		(944,257	)		326,472

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

187

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Mid Cap Growth Fund						Mid Cap Value Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(549,006	)	$	(129,521	)	$	1,813,860		$	1,599,526
Net realized gains (loss) from investment transactions		15,386,864			5,565,293			14,415,162			6,991,823
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		19,609,170			704,370			29,010,915			6,227,947
Net Increase (Decrease) in Net Assets Resulting from Operations		34,447,028			6,140,142			45,239,937			14,819,296
Capital Share Transactions (1):
Shares issued		8,640,070			13,356,693			21,501,173			24,175,248
Shares redeemed		(23,816,956	)		(17,287,396	)		(18,397,799	)		(11,391,712	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(15,176,886	)		(3,930,703	)		3,103,374			12,783,536
Total Increase (Decrease)		19,270,142			2,209,439			48,343,311			27,602,832
Net Assets:
Beginning of period		101,292,529			99,083,090			124,650,791			97,047,959
End of Period	$	120,562,671		$	101,292,529		$	172,994,102		$	124,650,791
Undistributed net investment income (loss)	$	—		$	—		$	58,083		$	12,311
(1) Shares Issued and Redeemed:
Shares issued		741,536			1,328,357			1,295,099			1,835,763
Shares redeemed		(2,059,325	)		(1,709,936	)		(1,124,416	)		(885,614	)
		(1,317,789	)		(381,579	)		170,683			950,149
	Mid Core Value Fund						SMID Cap Growth Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	636,956		$	422,678		$	(321,698	)	$	(157,280	)
Net realized gains (loss) from investment transactions		16,721,213			6,803,793			6,092,451			145,328
Net realized foreign currency exchange gain (loss)		53,040			—			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(921,401	)		1,133,647			12,737,247			4,412,550
Net Increase (Decrease) in Net Assets Resulting from Operations		16,489,808			8,360,118			18,508,000			4,400,598
Capital Share Transactions (1):
Shares issued		8,636,615			10,151,047			17,648,122			14,560,438
Shares redeemed		(10,419,914	)		(21,522,865	)		(13,107,181	)		(5,379,677	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(1,783,299	)		(11,371,818	)		4,540,941			9,180,761
Total Increase (Decrease)		14,706,509			(3,011,700	)		23,048,941			13,581,359
Net Assets:
Beginning of period		57,167,705			60,179,405			40,577,618			26,996,259
End of Period	$	71,874,214		$	57,167,705		$	63,626,559		$	40,577,618
Undistributed net investment income (loss)	$	29,853		$	19,150		$	—		$	—
(1) Shares Issued and Redeemed:
Shares issued		629,211			918,859			1,051,349			1,085,665
Shares redeemed		(755,332	)		(1,908,604	)		(762,625	)		(399,868	)
		(126,121	)		(989,745	)		288,724			685,797

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

188

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	SMID Cap Value Fund						Small Cap Growth Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	225,900		$	194,601		$	(407,779	)	$	(745,209	)
Net realized gains (loss) from investment transactions		5,808,126			2,545,081			13,175,499			(1,390,305	)
Net realized foreign currency exchange gain (loss)		—			—			(342	)		—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		11,071,821			3,830,008			13,509,581			6,708,897
Net Increase (Decrease) in Net Assets Resulting from Operations		17,105,847			6,569,690			26,276,959			4,573,383
Capital Share Transactions (1):
Shares issued		15,808,245			11,793,130			5,896,128			8,278,394
Shares redeemed		(12,945,588	)		(7,736,293	)		(20,353,790	)		(13,578,802	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		2,862,657			4,056,837			(14,457,662	)		(5,300,408	)
Total Increase (Decrease)		19,968,504			10,626,527			11,819,297			(727,025	)
Net Assets:
Beginning of period		43,575,260			32,948,733			77,719,689			78,446,714
End of Period	$	63,543,764		$	43,575,260		$	89,538,986		$	77,719,689
Undistributed net investment income (loss)	$	—		$	—		$	2,468		$	—
(1) Shares Issued and Redeemed:
Shares issued		948,116			913,084			263,234			426,080
Shares redeemed		(769,055	)		(598,636	)		(921,368	)		(697,871	)
		179,061			314,448			(658,134	)		(271,791	)
	Small Cap Value Fund						Small Cap Index Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	960,743		$	2,296,543		$	391,452		$	497,350
Net realized gains (loss) from investment transactions		32,584,526			14,150,682			2,344,619			1,353,181
Net realized gains (loss) on futures contracts		—			—			413,036			133,346
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		34,551,777			8,592,880			14,242,064			2,946,293
Net Increase (Decrease) in Net Assets Resulting from Operations		68,097,046			25,040,105			17,391,171			4,930,170
Capital Share Transactions (1):
Shares issued		21,056,548			11,629,172			14,878,307			12,599,427
Shares redeemed		(26,222,612	)		(20,193,553	)		(9,852,742	)		(4,287,926	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(5,166,064	)		(8,564,381	)		5,025,565			8,311,501
Total Increase (Decrease)		62,930,982			16,475,724			22,416,736			13,241,671
Net Assets:
Beginning of period		175,840,589			159,364,865			42,443,487			29,201,816
End of Period	$	238,771,571		$	175,840,589		$	64,860,223		$	42,443,487
Undistributed net investment income (loss)	$	(145,426	)	$	—		$	(9,158	)	$	2,242
(1) Shares Issued and Redeemed:
Shares issued		945,046			655,178			1,032,176			1,085,853
Shares redeemed		(1,157,062	)		(1,145,507	)		(661,220	)		(372,713	)
		(212,016	)		(490,329	)		370,956			713,140

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

189

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Developed International Index Fund						International Equity Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	2,463,019		$	2,009,071		$	3,989,620		$	4,371,238
Net realized gains (loss) from investment transactions		(1,802,237	)		(638,972	)		22,058,244			34,808,106
Net realized gains (loss) on futures contracts		305,533			513,145			—			—
Net realized foreign currency exchange gain (loss)		(9,919	)		946			(491,798	)		(575,643	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		17,706,598			11,055,255			(4,396,386	)		25,410,066
Net Increase (Decrease) in Net Assets Resulting from Operations		18,662,994			12,939,445			21,159,680			64,013,767
Capital Share Transactions (1):
Shares issued		20,155,439			24,926,970			44,671,355			25,174,799
Shares redeemed		(25,371,940	)		(9,937,853	)		(36,241,221	)		(50,510,062	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(5,216,501	)		14,989,117			8,430,134			(25,335,263	)
Total Increase (Decrease)		13,446,493			27,928,562			29,589,814			38,678,504
Net Assets:
Beginning of period		89,786,246			61,857,684			348,598,879			309,920,375
End of Period	$	103,232,739		$	89,786,246		$	378,188,693		$	348,598,879
Undistributed net investment income (loss)	$	(421,083	)	$	(183,917	)	$	(4,399,305	)	$	(6,285,250	)
(1) Shares Issued and Redeemed:
Shares issued		1,821,911			2,681,964			2,004,226			1,285,142
Shares redeemed		(2,264,532	)		(1,041,566	)		(1,620,348	)		(2,525,017	)
		(442,621	)		1,640,398			383,878			(1,239,875	)
	Emerging Markets Equity Fund						Real Estate Securities Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	388,529		$	428,550		$	1,503,360		$	1,123,977
Net realized gains (loss) from investment transactions		222,312			1,700,979			6,127,089			8,371,943
Net realized foreign currency exchange gain (loss)		(115,528	)		(159,316	)		—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(2,318,916	)		22,522,186			(4,923,112	)		3,041,493
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,823,603	)		24,492,399			2,707,337			12,537,413
Capital Share Transactions (1):
Shares issued		27,080,779			23,131,801			24,229,101			18,676,255
Shares redeemed		(14,936,714	)		(15,831,334	)		(10,792,716	)		(9,413,269	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		12,144,065			7,300,467			13,436,385			9,262,986
Total Increase (Decrease)		10,320,462			31,792,866			16,143,722			21,800,399
Net Assets:
Beginning of period		152,858,371			121,065,505			98,146,472			76,346,073
End of Period	$	163,178,833		$	152,858,371		$	114,290,194		$	98,146,472
Undistributed net investment income (loss)	$	(542,509	)	$	(350,189	)	$	—		$	—
(1) Shares Issued and Redeemed:
Shares issued		2,380,504			2,180,214			1,704,606			1,446,966
Shares redeemed		(1,314,133	)		(1,484,006	)		(756,923	)		(735,480	)
		1,066,371			696,208			947,683			711,486

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

190

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Aggressive Allocation Fund						Moderately Aggressive Allocation Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(162,159	)	$	(114,722	)	$	(642,003	)	$	(493,987	)
Net realized gains (loss) from investment transactions		700,038			322,644			3,319,129			1,335,273
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		9,317,125			4,678,194			33,132,324			18,283,036
Net Increase (Decrease) in Net Assets Resulting from Operations		9,855,004			4,886,116			35,809,450			19,124,322
Capital Share Transactions (1):
Shares issued		14,707,924			11,208,887			39,529,743			41,901,069
Shares redeemed		(8,917,612	)		(3,043,549	)		(23,382,869	)		(16,764,032	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		5,790,312			8,165,338			16,146,874			25,137,037
Total Increase (Decrease)		15,645,316			13,051,454			51,956,324			44,261,359
Net Assets:
Beginning of period		41,233,912			28,182,458			179,229,059			134,967,700
End of Period	$	56,879,228		$	41,233,912		$	231,185,383		$	179,229,059
Undistributed net investment income (loss)	$	—		$	—		$	—		$	—
(1) Shares Issued and Redeemed:
Shares issued		1,145,505			1,024,830			2,906,051			3,509,638
Shares redeemed		(696,475	)		(272,698	)		(1,713,234	)		(1,431,661	)
		449,030			752,132			1,192,817			2,077,977
	Moderate Allocation Fund						Moderately Conservative Allocation Fund
	For the year ended 12/31/13			For the year ended 12/31/12			For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(1,014,580	)	$	(812,609	)	$	(340,982	)	$	(313,208	)
Net realized gains (loss) from investment transactions		6,848,949			3,023,537			2,737,934			1,729,941
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		36,953,271			23,843,407			7,065,143			5,978,406
Net Increase (Decrease) in Net Assets Resulting from Operations		42,787,640			26,054,335			9,462,095			7,395,139
Capital Share Transactions (1):
Shares issued		44,282,431			51,969,701			24,189,911			20,379,256
Shares redeemed		(27,856,519	)		(11,328,986	)		(18,227,457	)		(21,423,672	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		16,425,912			40,640,715			5,962,454			(1,044,416	)
Total Increase (Decrease)		59,213,552			66,695,050			15,424,549			6,350,723
Net Assets:
Beginning of period		290,950,689			224,255,639			96,027,914			89,677,191
End of Period	$	350,164,241		$	290,950,689		$	111,452,463		$	96,027,914
Undistributed net investment income (loss)	$	—		$	—		$	—		$	—
(1) Shares Issued and Redeemed:
Shares issued		3,469,988			4,517,924			1,960,311			1,771,883
Shares redeemed		(2,154,312	)		(985,360	)		(1,462,960	)		(1,864,666	)
		1,315,676			3,532,564			497,351			(92,783	)

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

191

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Conservative Allocation Fund
	For the year ended 12/31/13			For the year ended 12/31/12
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(232,466	)	$	(222,597	)
Net realized gains (loss) from investment transactions		1,818,220			1,072,025
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		1,470,305			2,850,210
Net Increase (Decrease) in Net Assets Resulting from Operations		3,056,059			3,699,638
Capital Share Transactions (1):
Shares issued		20,212,093			24,661,261
Shares redeemed		(25,687,459	)		(20,852,243	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(5,475,366	)		3,809,018
Total Increase (Decrease)		(2,419,307	)		7,508,656
Net Assets:
Beginning of period		70,604,187			63,095,531
End of Period	$	68,184,880		$	70,604,187
Undistributed net investment income (loss)	$	—		$	—
(1) Shares Issued and Redeemed:
Shares issued		1,681,772			2,146,560
Shares redeemed		(2,134,595	)		(1,801,609	)
		(452,823	)		344,951

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

192

Penn Series Funds, Inc.

Financial Highlights

MONEY MARKET FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income from investment operations:
Net investment income (loss)		—	(a)		—	(a)		—	(a)		—	(a)		—	(a)
Total from investment operations		—			—			—			—			—
Less distributions:
Net investment income		—	(a)		—	(a)		—	(a)		—	(a)		—	(a)
Total distributions		—			—			—			—			—
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total return 1		0.01%			0.01%			0.01%			0.01%			0.44%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	124,881		$	141,725		$	154,213		$	139,988		$	168,500
Ratio of net expenses to average net assets		0.16%			0.22%			0.22%			0.33%			0.43%
Ratio of total expenses to average net assets		0.48%			0.49%			0.49%			0.47%			0.48%
Ratio of net investment income (loss) to average net assets		0.01%			0.01%			0.01%			0.01%			0.47%
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.
LIMITED MATURITY BOND FUND For a share outstanding throughout each period
	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	11.49		$	11.42		$	11.17		$	10.76		$	10.57
Income from investment operations:
Net investment income (loss)		0.05			0.09			0.13			0.17			0.23
Net realized and unrealized gain (loss) on investment transactions		(0.06	)		(0.02	)		0.12			0.24			(0.04	)
Total from investment operations		(0.01	)		0.07			0.25			0.41			0.19
Net asset value, end of period	$	11.48		$	11.49		$	11.42		$	11.17		$	10.76
Total return 1		(0.09%	)		0.61%			2.24%			3.71%			1.89%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	243,667		$	202,385		$	174,290		$	152,447		$	111,501
Ratio of total expenses to average net assets		0.57%			0.57%			0.58%			0.58%			0.60%
Ratio of net investment income (loss) to average net assets		0.60%			0.81%			1.14%			1.56%			2.20%
Portfolio turnover rate		50%			31%			50%			38%			64%

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.

193

Penn Series Funds, Inc.

Financial Highlights

QUALITY BOND FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012		2011			2010		2009
Net asset value, beginning of period	$	13.14		$	12.73	$	11.56		$	10.90	$	10.36
Income from investment operations:
Net investment income (loss)		0.25			0.27		0.32			0.28		0.36
Net realized and unrealized gain (loss) on investment transactions		(0.64	)		0.14		0.85			0.38		0.26
Total from investment operations		(0.39	)		0.41		1.17			0.66		0.62
Less distributions:
Net investment income		—			—		—			—		—	(a)
Net realized gains		—			—		—			—		(0.08	)
Total distributions		—			—		—			—		(0.08	)
Net asset value, end of period	$	12.75		$	13.14	$	12.73		$	11.56	$	10.90
Total return 1		(2.97%	)		3.22%		10.12%			6.06%		6.02%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	546,759		$	568,400	$	477,606		$	418,957	$	327,724
Ratio of total expenses to average net assets		0.56%			0.56%		0.57%			0.58%		0.61%
Ratio of net investment income (loss) to average net assets		1.91%			2.06%		2.62%			2.48%		3.38%
Portfolio turnover rate		47%			32%		44%			69%		87%
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
	Year Ended December 31,
	2013			2012		2011			2010		2009
Net asset value, beginning of period	$	9.99		$	8.72	$	8.46		$	7.41	$	5.05
Income (loss) from investment operations:
Net investment income (loss)		0.62			0.61		0.62			0.61		0.56
Net realized and unrealized gain (loss) on investment transactions		0.17			0.66		(0.36	)		0.44		1.80
Total from investment operations		0.79			1.27		0.26			1.05		2.36
Net asset value, end of period	$	10.78		$	9.99	$	8.72		$	8.46	$	7.41
Total return 1		7.91%			14.56%		3.07%			14.17%		46.44%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	188,788		$	179,720	$	141,290		$	131,682	$	103,574
Ratio of total expenses to average net assets		0.82%			0.82%		0.83%			0.85%		0.87%
Ratio of net investment income (loss) to average net assets		5.96%			6.52%		7.16%			7.73%		8.97%
Portfolio turnover rate		68%			69%		58%			61%		59%

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.

194

Penn Series Funds, Inc.

Financial Highlights

FLEXIBLY MANAGED FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013		2012		2011		2010		2009
Net asset value, beginning of period	$	29.22	$	25.46	$	24.71	$	21.69	$	16.33
Income (loss) from investment operations:
Net investment income (loss)		0.34		0.44		0.40		0.35		0.41
Net realized and unrealized gain (loss) on investment transactions		6.16		3.32		0.35		2.67		4.95
Total from investment operations		6.50		3.76		0.75		3.02		5.36
Less distributions:
Net investment income		—		—		—		—		—	(a)
Net realized gains		—		—		—		—		—
Total distributions		—		—		—		—		—
Net asset value, end of period	$	35.72	$	29.22	$	25.46	$	24.71	$	21.69
Total return 1		22.25%		14.77%		3.04%		13.92%		32.92%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	2,685,504	$	2,010,412	$	1,655,254	$	1,583,104	$	1,286,902
Ratio of total expenses to average net assets		0.83%		0.84%		0.84%		0.85%		0.85%
Ratio of net investment income (loss) to average net assets		1.04%		1.59%		1.60%		1.55%		2.22%
Portfolio turnover rate		63%		65%		83%		67%		89%

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

	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	12.60		$	11.40		$	10.80		$	9.67		$	8.19
Income (loss) from investment operations:
Net investment income (loss)		(0.03	)		(0.02	)		(0.02	)		(0.02	)		(0.01	)
Capital gain distributions received from affiliated funds		—			—			—			—			0.03
Net realized and unrealized gain (loss) on investment transactions		2.14			1.22			0.62			1.15			1.46
Total from investment operations		2.11			1.20			0.60			1.13			1.48
Net asset value, end of period	$	14.71		$	12.60		$	11.40		$	10.80		$	9.67
Total return 1		16.75%			10.53%			5.56%			11.69%			18.07%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	78,642		$	71,601		$	65,342		$	64,311		$	60,114
Ratio of net expenses to average net assets 2		0.20%			0.19%			0.18%			0.18%			0.17%
Ratio of total expenses to average net assets 2		0.22%			0.23%			0.24%			0.24%			0.24%
Ratio of net investment income (loss) to average net assets		(0.20%	)		(0.19%	)		(0.18%	)		(0.18%	)		(0.17%	)
Portfolio turnover rate		16%			15%			17%			18%			19%

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.

195

Penn Series Funds, Inc.

Financial Highlights

LARGE GROWTH STOCK FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012		2011			2010			2009
Net asset value, beginning of period	$	18.05		$	15.20	$	15.44		$	13.22		$	9.25
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		0.01		(0.03	)		(0.02	)		—	(a)
Net realized and unrealized gain (loss) on investment transactions		7.10			2.84		(0.21	)		2.24			3.97
Total from investment operations		7.06			2.85		(0.24	)		2.22			3.97
Less distributions:
Net investment income		—			—		—			—			—	(a)
Total distributions		—			—		—			—			—
Net asset value, end of period	$	25.11		$	18.05	$	15.20		$	15.44		$	13.22
Total return 1		39.11%			18.75%		(1.55%	)		16.79%			42.93%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	262,358		$	210,999	$	176,692		$	174,372		$	143,167
Ratio of total expenses to average net assets		0.90%			0.91%		0.93%			0.94%			0.97%
Ratio of net investment income (loss) to average net assets		(0.21%	)		0.03%		(0.19%	)		(0.18%	)		0.02%
Portfolio turnover rate		36%			35%		33%			43%			58%
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
	Year Ended December 31,
	2013			2012		2011			2010			2009
Net asset value, beginning of period	$	9.57		$	8.68	$	9.31		$	8.28		$	6.02
Income (loss) from investment operations:
Net investment income (loss)		0.04			0.01		(0.02	)		(0.01	)		0.02
Net realized and unrealized gain (loss) on investment transactions		2.17			0.88		(0.61	)		1.04			2.24
Total from investment operations		2.21			0.89		(0.63	)		1.03			2.26
Net asset value, end of period	$	11.78		$	9.57	$	8.68		$	9.31		$	8.28
Total return 1		23.09%			10.25%		(6.77%	)		12.44%			37.54%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	54,762		$	29,751	$	37,465		$	33,542		$	27,870
Ratio of net expenses to average net assets		0.90%			0.90%		0.96%			1.00%			1.00%
Ratio of total expenses to average net assets		0.90%			0.90%		0.96%			1.00%			1.12%
Ratio of net investment income (loss) to average net assets		0.40%			0.06%		(0.25%	)		(0.10%	)		0.22%
Portfolio turnover rate		107%			97%		153%			176%			121%

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.

196

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE GROWTH FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012		2011			2010			2009
Net asset value, beginning of period	$	10.79		$	9.29	$	9.78		$	8.34		$	6.14
Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		0.02		(0.01	)		—			0.03
Net realized and unrealized gain (loss) on investment transactions		4.10			1.48		(0.48	)		1.44			2.17
Total from investment operations		4.09			1.50		(0.49	)		1.44			2.20
Less distributions:
Net investment income		—			—		—			—			—	(a)
Total distributions		—			—		—			—			—
Net asset value, end of period	$	14.88		$	10.79	$	9.29		$	9.78		$	8.34
Total return 1		37.91%			16.15%		(5.01%	)		17.27%			35.89%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	127,757		$	106,053	$	100,397		$	123,153		$	126,510
Ratio of net expenses to average net assets		0.88%			0.89%		0.90%			0.71%			0.64%
Ratio of total expenses to average net assets		0.88%			0.89%		0.90%			0.85%			0.86%
Ratio of net investment income (loss) to average net assets		(0.08%	)		0.17%		(0.11%	)		(0.01%	)		0.50%
Portfolio turnover rate		109%			105%		115%			115%			155%

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

	Year Ended December 31,
	2013		2012		2011			2010		2009
Net asset value, beginning of period	$	15.66	$	13.83	$	14.47		$	12.60	$	9.43
Income (loss) from investment operations:
Net investment income (loss)		0.21		0.20		0.18			0.11		0.16
Net realized and unrealized gain (loss) on investment transactions		4.99		1.63		(0.82	)		1.76		3.01
Total from investment operations		5.20		1.83		(0.64	)		1.87		3.17
Net asset value, end of period	$	20.86	$	15.66	$	13.83		$	14.47	$	12.60
Total return 1		33.21%		13.23%		(4.42%	)		14.84%		33.62%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	217,351	$	166,955	$	166,056		$	167,918	$	143,038
Ratio of total expenses to average net assets		0.87%		0.88%		0.89%			0.89%		0.90%
Ratio of net investment income (loss) to average net assets		1.16%		1.32%		1.24%			0.86%		1.53%
Portfolio turnover rate		186%		90%		87%			112%		120%

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.

197

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013		2012		2011			2010		2009
Net asset value, beginning of period	$	10.31	$	8.92	$	9.31		$	8.43	$	7.22
Income (loss) from investment operations:
Net investment income (loss)		0.15		0.16		0.14			0.12		0.14
Net realized and unrealized gain (loss) on investment transactions		2.92		1.23		(0.53	)		0.76		1.07
Total from investment operations		3.07		1.39		(0.39	)		0.88		1.21
Net asset value, end of period	$	13.38	$	10.31	$	8.92		$	9.31	$	8.43
Total return 1,2		29.78%		15.58%		(4.19%	)		10.44%		16.76%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	185,630	$	158,589	$	143,147		$	158.985	$	149,973
Ratio of net expenses to average net assets		0.87%		0.88%		0.89%			0.61%		0.54%
Ratio of total expenses to average net assets		0.87%		0.88%		0.89%			0.75%		0.75%
Ratio of net investment income (loss) to average net assets		1.25%		1.64%		1.52%			1.46%		1.94%
Portfolio turnover rate		59%		38%		51%			35%		62%

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 reimbursement by the sub-adviser. Excluding the effect of this reimbursement from the Fund’s ending net asset value per share, total return for the year ended December 31, 2013 would have been 29.58%.

INDEX 500 FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013		2012		2011		2010		2009
Net asset value, beginning of period	$	10.70	$	9.25	$	9.09	$	7.92	$	6.28
Income (loss) from investment operations:
Net investment income (loss)		0.21		0.20		0.16		0.14		0.13
Net realized and unrealized gain (loss) on investment transactions		3.20		1.25		—		1.03		1.51
Total from investment operations		3.41		1.45		0.16		1.17		1.64
Net asset value, end of period	$	14.11	$	10.70	$	9.25	$	9.09	$	7.92
Total return 1		31.87%		15.68%		1.76%		14.77%		26.11%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	398,537	$	312,146	$	267,009	$	263,724	$	249,284
Ratio of net expenses to average net assets		0.34%		0.34%		0.35%		0.35%		0.35%
Ratio of total expenses to average net assets		0.34%		0.34%		0.36%		0.36%		0.37%
Ratio of net investment income (loss) to average net assets		1.72%		1.93%		1.71%		1.68%		1.97%
Portfolio turnover rate		8%		4%		4%		5%		6%

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.

198

Penn Series Funds, Inc.

Financial Highlights

MID CAP GROWTH FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	9.94		$	9.37		$	10.16		$	8.01		$	5.42
Income (loss) from investment operations:
Net investment income (loss)		(0.06	)		(0.01	)		(0.04	)		(0.01	)		(0.01	)
Net realized and unrealized gain (loss) on investment transactions		3.71			0.58			(0.75	)		2.16			2.60
Total from investment operations		3.65			0.57			(0.79	)		2.15			2.59
Net asset value, end of period	$	13.59		$	9.94		$	9.37		$	10.16		$	8.01
Total return 1		36.72%			6.08%			(7.78%	)		26.84%			47.79%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	120,563		$	101,293		$	99,083		$	107,064		$	82,895
Ratio of net expenses to average net assets		0.99%			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%
Ratio of net investment income (loss) to average net assets		(0.49%	)		(0.12%	)		(0.42%	)		(0.14%	)		(0.22%	)
Portfolio turnover rate		80%			129%			110%			106%			102%
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
	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	13.59		$	11.80		$	12.59		$	10.01		$	6.81
Income (loss) from investment operations:
Net investment income (loss)		0.19			0.19			0.09			0.08			0.05
Net realized and unrealized gain (loss) on investment transactions		4.73			1.60			(0.88	)		2.50			3.15
Total from investment operations		4.92			1.79			(0.79	)		2.58			3.20
Net asset value, end of period	$	18.51		$	13.59		$	11.80		$	12.59		$	10.01
Total return 1		36.20%			15.17%			(6.27%	)		25.77%			46.99%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	172,994		$	124,651		$	97,048		$	119,231		$	92,662
Ratio of total expenses to average net assets		0.82%			0.84%			0.84%			0.84%			0.85%
Ratio of net investment income (loss) to average net assets		1.21%			1.49%			0.70%			0.71%			0.69%
Portfolio turnover rate		43%			43%			106%			37%			43%

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.

199

Penn Series Funds, Inc.

Financial Highlights

MID CORE VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013		2012		2011			2010		2009
Net asset value, beginning of period	$	11.87	$	10.37	$	10.75		$	8.57	$	6.80
Income (loss) from investment operations:
Net investment income (loss)		0.14		0.08		0.03			0.05		0.03
Net realized and unrealized gain (loss) on investment transactions		3.32		1.42		(0.41	)		2.13		1.74
Total from investment operations		3.46		1.50		(0.38	)		2.18		1.77
Net asset value, end of period	$	15.33	$	11.87	$	10.37		$	10.75	$	8.57
Total return 1		29.15%		14.46%		(3.53%	)		25.44%		26.03%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	71,874	$	57,168	$	60,179		$	52,723	$	40,508
Ratio of total expenses to average net assets		1.08%		1.08%		1.08%			1.11%		1.20%
Ratio of net investment income (loss) to average net assets		0.97%		0.68%		0.29%			0.49%		0.43%
Portfolio turnover rate		166%		75%		51%			75%		116%

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

	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	13.75		$	11.92		$	12.51		$	10.01		$	6.51
Income (loss) from investment operations:
Net investment income (loss)		(0.10	)		(0.06	)		(0.09	)		(0.04	)		(0.04	)
Net realized and unrealized gain (loss) on investment transactions		5.99			1.89			(0.50	)		2.54			3.54
Total from investment operations		5.89			1.83			(0.59	)		2.50			3.50
Net asset value, end of period	$	19.64		$	13.75		$	11.92		$	12.51		$	10.01
Total return 1		42.84%			15.35%			(4.72%	)		24.85%			54.15%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	63,627		$	40,578		$	26,996		$	25,263		$	21,806
Ratio of net expenses to average net assets		1.05%			1.05%			1.05%			1.05%			1.05%
Ratio of total expenses to average net assets		1.07%			1.12%			1.13%			1.23%			1.41%
Ratio of net investment income (loss) to average net assets		(0.61%	)		(0.46%	)		(0.77%	)		(0.36%	)		(0.43%	)
Portfolio turnover rate		90%			95%			160%			95%			65%

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.

200

Penn Series Funds, Inc.

Financial Highlights

SMID CAP VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013		2012		2011			2010		2009
Net asset value, beginning of period	$	13.87	$	11.66	$	12.56		$	9.90	$	6.80
Income (loss) from investment operations:
Net investment income (loss)		0.07		0.07		0.03			0.02		0.02
Net realized and unrealized gain (loss) on investment transactions		5.20		2.14		(0.93	)		2.64		3.08
Total from investment operations		5.27		2.21		(0.90	)		2.66		3.10
Net asset value, end of period	$	19.14	$	13.87	$	11.66		$	12.56	$	9.90
Total return 1		38.00%		18.95%		(7.17%	)		26.87%		45.59%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	63,544	$	43,575	$	32,949		$	26,766	$	21,142
Ratio of net expenses to average net assets		1.14%		1.14%		1.14%			1.14%		1.14%
Ratio of total expenses to average net assets		1.25%		1.27%		1.31%			1.36%		1.52%
Ratio of net investment income (loss) to average net assets		0.41%		0.51%		0.27%			0.22%		0.30%
Portfolio turnover rate		58%		52%		69%			81%		49%

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

	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	19.20		$	18.16		$	20.43		$	17.15		$	10.81
Income (loss) from investment operations:
Net investment income (loss)		(0.11	)		(0.18	)		(0.15	)		(0.08	)		(0.09	)
Net realized and unrealized gain (loss) on investment transactions		7.33			1.22			(2.12	)		3.36			6.43
Total from investment operations		7.22			1.04			(2.27	)		3.28			6.34
Net asset value, end of period	$	26.42		$	19.20		$	18.16		$	20.43		$	17.15
Total return 1		37.60%			5.73%			(11.11%	)		19.13%			58.65%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	89,539		$	77,720		$	78,447		$	88,184		$	76,180
Ratio of total expenses to average net assets		1.07%			1.10%			1.08%			1.08%			1.11%
Ratio of net investment income (loss) to average net assets		(0.50%	)		(0.92%	)		(0.71%	)		(0.45%	)		(0.67%	)
Portfolio turnover rate		143%			103%			125%			125%			163%

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.

201

Penn Series Funds, Inc.

Financial Highlights

SMALL CAP VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013		2012		2011		2010		2009
Net asset value, beginning of period	$	18.83	$	16.21	$	16.07	$	12.68	$	9.99
Income (loss) from investment operations:
Net investment income (loss)		0.10		0.24		0.08		0.11		0.09
Net realized and unrealized gain (loss) on investment transactions		7.23		2.38		0.06		3.28		2.60
Total from investment operations		7.33		2.62		0.14		3.39		2.69
Net asset value, end of period	$	26.16	$	18.83	$	16.21	$	16.07	$	12.68
Total return 1		38.93%		16.16%		0.87%		26.74%		26.93%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	238,772	$	175,841	$	159,365	$	163,354	$	132,952
Ratio of net expenses to average net assets		1.14%		1.15%		1.15%		1.15%		1.15%
Ratio of total expenses to average net assets		1.14%		1.15%		1.15%		1.15%		1.17%
Ratio of net investment income (loss) to average net assets		0.46%		1.36%		0.51%		0.80%		0.86%
Portfolio turnover rate		59%		50%		47%		49%		60%

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

	Year Ended December 31,
	2013		2012		2011			2010		2009
Net asset value, beginning of period	$	12.22	$	10.58	$	11.08		$	8.78	$	6.96
Income (loss) from investment operations:
Net investment income (loss)		0.10		0.16		0.08			0.08		0.07
Net realized and unrealized gain (loss) on investment transactions		4.56		1.48		(0.58	)		2.22		1.75
Total from investment operations		4.66		1.64		(0.50	)		2.30		1.82
Net asset value, end of period	$	16.88	$	12.22	$	10.58		$	11.08	$	8.78
Total return 1		38.13%		15.50%		(4.51%	)		26.20%		26.15%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	64,860	$	42,443	$	29,202		$	23,950	$	21,431
Ratio of net expenses to average net assets		0.55%		0.55%		0.55%			0.55%		0.55%
Ratio of total expenses to average net assets		0.71%		0.70%		0.91%			1.30%		2.01%
Ratio of net investment income (loss) to average net assets		0.71%		1.42%		0.70%			0.89%		0.94%
Portfolio turnover rate		17%		18%		18%			56%		22%

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.

202

Penn Series Funds, Inc.

Financial Highlights

DEVELOPED INTERNATIONAL INDEX FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013		2012		2011			2010		2009
Net asset value, beginning of period	$	10.15	$	8.59	$	9.83		$	9.15	$	7.12
Income (loss) from investment operations:
Net investment income (loss)		0.28		0.25		0.27			0.20		0.18
Net realized and unrealized gain (loss) on investment transactions		1.86		1.31		(1.51	)		0.48		1.85
Total from investment operations		2.14		1.56		(1.24	)		0.68		2.03
Less distributions:
Net investment income		—		—		—			—		—	(a)
Total distributions		—		—		—			—		—
Net asset value, end of period	$	12.29	$	10.15	$	8.59		$	9.83	$	9.15
Total return 1		21.08%		18.16%		(12.61%	)		7.43%		28.52%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	103,233	$	89,786	$	61,858		$	55,800	$	38,491
Ratio of net expenses to average net assets		0.59%		0.59%		0.59%			0.59%		0.59%
Ratio of total expenses to average net assets		0.92%		1.00%		1.01%			1.21%		2.15%
Ratio of net investment income (loss) to average net assets		2.50%		2.73%		2.80%			2.27%		2.27%
Portfolio turnover rate		9%		2%		1%			6%		1%

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

	Year Ended December 31,
	2013		2012		2011			2010		2009
Net asset value, beginning of period	$	21.44	$	17.71	$	17.55		$	15.80	$	13.12
Income (loss) from investment operations:
Net investment income (loss)		0.24		0.25		0.35			0.29		0.26
Net realized and unrealized gain (loss) on investment transactions		1.04		3.48		(0.19	)		1.46		2.58
Total from investment operations		1.28		3.73		0.16			1.75		2.84
Less distributions:
Net investment income		—		—		—			—		(0.16	)
Net realized gains		—		—		—			—		—
Total distributions		—		—		—			—		(0.16	)
Net asset value, end of period	$	22.72	$	21.44	$	17.71		$	17.55	$	15.80
Total return 1		5.97%		21.06%		0.91%			11.08%		21.74%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	378,189	$	348,599	$	309,920		$	320,108	$	270,907
Ratio of total expenses to average net assets		1.17%		1.17%		1.20%			1.24%		1.27%
Ratio of net investment income (loss) to average net assets		1.09%		1.30%		1.95%			1.77%		1.89%
Portfolio turnover rate		34%		43%		30%			34%		48%

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.

203

Penn Series Funds, Inc.

Financial Highlights

EMERGING MARKETS EQUITY FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012		2011			2010		2009
Net asset value, beginning of period	$	11.53		$	9.64	$	11.82		$	9.92	$	5.99
Income (loss) from investment operations:
Net investment income (loss)		0.03			0.03		0.07			0.02		0.03
Net realized and unrealized gain (loss) on investment transactions		(0.16	)		1.86		(2.25	)		1.88		3.90
Total from investment operations		(0.13	)		1.89		(2.18	)		1.90		3.93
Less distributions:
Net investment income		—			—		—			—		—	(a)
Total distributions		—			—		—			—		—
Net asset value, end of period	$	11.40		$	11.53	$	9.64		$	11.82	$	9.92
Total return 1		(1.13%	)		19.61%		(18.44%	)		19.15%		65.64%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	163,179		$	152,858	$	121,066		$	141,853	$	102,834
Ratio of net expenses to average net assets		1.68%			1.68%		1.68%			1.62%		1.58%
Ratio of total expenses to average net assets		1.82%			1.72%		1.91%			2.07%		2.20%
Ratio of net investment income (loss) to average net assets		0.25%			0.31%		0.63%			0.21%		0.37%
Portfolio turnover rate		48%			47%		60%			62%		70%

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

	Year Ended December 31,
	2013		2012		2011 2		2010		2009
Net asset value, beginning of period	$	13.41	$	11.56	$	10.80	$	8.63	$	6.82
Income (loss) from investment operations:
Net investment income (loss)		0.18		0.16		0.12		0.12		0.19
Net realized and unrealized gain (loss) on investment transactions		0.24		1.69		0.64		2.05		1.62
Total from investment operations		0.42		1.85		0.76		2.17		1.81
Net asset value, end of period	$	13.83	$	13.41	$	11.56	$	10.80	$	8.63
Total return 1		3.13%		16.00%		7.04%		25.14%		26.54%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	114,290	$	98,146	$	76,346	$	68,420	$	50,107
Ratio of total expenses to average net assets		0.99%		1.01%		1.00%		1.01%		1.03%
Ratio of net investment income (loss) to average net assets		1.35%		1.27%		1.09%		1.26%		2.93%
Portfolio turnover rate		69%		85%		144%		180%		163%

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.

204

Penn Series Funds, Inc.

Financial Highlights

AGGRESSIVE ALLOCATION FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	11.56		$	10.01		$	10.39		$	8.96		$	6.95
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.04	)		(0.03	)		(0.03	)		(0.01	)
Net realized and unrealized gain (loss) on investment transactions		2.64			1.59			(0.35	)		1.46			2.02
Total from investment operations		2.60			1.55			(0.38	)		1.43			2.01
Less distributions:
Net investment income		—			—			—			—			—
Net realized gains		—			—			—			—			—	(a)
Total distributions		—			—			—			—			—
Net asset value, end of period	$	14.16		$	11.56		$	10.01		$	10.39		$	8.96
Total return 1		22.49%			15.48%			(3.66%	)		15.96%			28.94%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	56,879		$	41,234		$	28,182		$	24,256		$	13,875
Ratio of net expenses to average net assets 2		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%
Ratio of net investment income (loss) to average net assets		(0.33%	)		(0.33%	)		(0.33%	)		(0.33%	)		(0.16%	)
Portfolio turnover rate		30%			24%			29%			28%			39%
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
	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	12.42		$	10.93		$	11.13		$	9.72		$	7.64
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.04	)		(0.04	)		(0.03	)		(0.02	)
Capital gain distributions received from affiliated funds		—			—			—			—			0.01
Net realized and unrealized gain (loss) on investment transactions		2.42			1.53			(0.16	)		1.44			2.09
Total from investment operations		2.38			1.49			(0.20	)		1.41			2.08
Less distributions:
Net investment income		—			—			—			—			—
Net realized gains		—			—			—			—			—	(a)
Total distributions		—			—			—			—			—
Net asset value, end of period	$	14.80		$	12.42		$	10.93		$	11.13		$	9.72
Total return 1		19.16%			13.63%			(1.80%	)		14.51%			27.25%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	231,185		$	179,229		$	134,968		$	119,284		$	61,800
Ratio of net expenses to average net assets 2		0.31%			0.32%			0.32%			0.33%			0.33%
Ratio of total expenses to average net assets 2		0.31%			0.32%			0.32%			0.33%			0.34%
Ratio of net investment income (loss) to average net assets		(0.31%	)		(0.32%	)		(0.32%	)		(0.33%	)		(0.18%	)
Portfolio turnover rate		23%			25%			30%			26%			49%

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.

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Financial Highlights

MODERATE ALLOCATION FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	11.98		$	10.80		$	10.73		$	9.56		$	7.93
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.04	)		(0.03	)		(0.03	)		(0.02	)
Capital gain distributions received from affiliated funds		—			—			—			—			0.01
Net realized and unrealized gain (loss) on investment transactions		1.73			1.22			0.10			1.20			1.64
Total from investment operations		1.69			1.18			0.07			1.17			1.63
Less distributions:
Net investment income		—			—			—			—			—
Net realized gains		—			—			—			—			—	(a)
Total distributions		—			—			—			—			—
Net asset value, end of period	$	13.67		$	11.98		$	10.80		$	10.73		$	9.56
Total return 1		14.11%			10.93%			0.65%			12.24%			20.58%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	350,164		$	290,951		$	224,256		$	199,732		$	100,677
Ratio of net expenses to average net assets 2		0.31%			0.31%			0.32%			0.32%			0.33%
Ratio of total expenses to average net assets 2		0.31%			0.31%			0.32%			0.32%			0.33%
Ratio of net investment income (loss) to average net assets		(0.31%	)		(0.31%	)		(0.32%	)		(0.32%	)		(0.20%	)
Portfolio turnover rate		20%			20%			26%			22%			30%
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
	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	11.87		$	10.96		$	10.67		$	9.75		$	8.40
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.04	)		(0.04	)		(0.03	)		(0.02	)
Capital gain distributions received from affiliated funds		—			—			—			—			0.02
Net realized and unrealized gain (loss) on investment transactions		1.15			0.95			0.33			0.95			1.35
Total from investment operations		1.11			0.91			0.29			0.92			1.35
Less distributions:
Net investment income		—			—			—			—			—	(a)
Net realized gains		—			—			—			—			—
Total distributions		—			—			—			—			—
Net asset value, end of period	$	12.98		$	11.87		$	10.96		$	10.67		$	9.75
Total return 1		9.35%			8.30%			2.72%			9.32%			16.19%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	111,452		$	96,028		$	89,677		$	72,839		$	45,014
Ratio of net expenses to average net assets 2		0.32%			0.33%			0.33%			0.33%			0.33%
Ratio of total expenses to average net assets 2		0.32%			0.33%			0.33%			0.34%			0.36%
Ratio of net investment income (loss) to average net assets		(0.32%	)		(0.33%	)		(0.33%	)		(0.33%	)		(0.22%	)
Portfolio turnover rate		28%			37%			30%			35%			46%

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.

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Financial Highlights

CONSERVATIVE ALLOCATION FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2013			2012			2011			2010			2009
Net asset value, beginning of period	$	11.74		$	11.13		$	10.71		$	10.01		$	9.05
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.04	)		(0.04	)		(0.03	)		(0.02	)
Capital gain distributions received from affiliated funds		—			—			—			—			0.02
Net realized and unrealized gain (loss) on investment transactions		0.56			0.65			0.46			0.73			0.97
Total from investment operations		0.52			0.61			0.42			0.70			0.97
Less distributions:
Net investment income		—			—			—			—			—	(a)
Net realized gains		—			—			—			—			(0.01	)
Total distributions		—			—			—			—			(0.01	)
Net asset value, end of period	$	12.26		$	11.74		$	11.13		$	10.71		$	10.01
Total return 1		4.43%			5.48%			3.92%			6.89%			10.80%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	68,185		$	70,604		$	63,096		$	45,528		$	31,405
Ratio of net expenses to average net assets 2		0.33%			0.33%			0.33%			0.33%			0.33%
Ratio of total expenses to average net assets 2		0.33%			0.33%			0.34%			0.35%			0.38%
Ratio of net investment income (loss) to average net assets		(0.33%	)		(0.33%	)		(0.33%	)		(0.33%	)		(0.21%	)
Portfolio turnover rate		38%			44%			39%			46%			73%

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.

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Notes to Financial Statements — December 31, 2013

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.

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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.

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

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Notes to Financial Statements — December 31, 2013

assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. These inputs are summarized into three broad levels as follows:

• Level 1 — quoted prices in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Transfers between levels 1 and 2 during the year ended December 31, 2013, if any, are shown as notes on the Schedule of Investments of the individual fund.

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 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.

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Notes to Financial Statements — December 31, 2013

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, 2013 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, 2013, 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, 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.

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

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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 services 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% for U.S. securities. The Bank of New York Mellon, Inc. serves as foreign custodian for Penn Series. There is a separate custody fee schedule for foreign securities.

Expenses and Limitations Thereon

Each Fund bears all expenses of its operations other than those incurred by 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 Value		1.14%
Limited Maturity Bond		0.90%	Small Cap Growth		1.15%

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Fund	Expense Limitation		Fund	Expense Limitation
Quality Bond		0.90%	Small Cap Value		1.15%
High Yield Bond		0.90%	Small Cap Index		0.55%
Flexibly Managed		1.00%	Developed International Index		0.59%
Balanced		0.62%	International Equity		1.50%
Large Growth Stock		1.00%	Emerging Markets Equity		1.85%
Large Cap Growth		1.00%	Real Estate Securities		1.25%
Large Core Growth		1.00%	Aggressive Allocation*		0.33%
Large Cap Value		1.00%	Moderately Aggressive
Large Core Value		1.00%	Allocation*		0.33%
Index 500		0.40%	Moderate Allocation*		0.33%
Mid Cap Growth		1.00%	Moderately Conservative
Mid Cap Value		1.00%	Allocation*		0.33%
Mid Core Value		1.25%	Conservative Allocation*		0.33%
SMID Cap Growth		1.05%

* 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.

During the period covered by this report, Penn Mutual agreed to voluntarily waive its administrative and corporate services fees and reimburse expenses so that the Index 500 Fund’s total expenses did 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, and throughout the period covered by this report, Penn Mutual and ICMI agreed to voluntarily waive a portion of their fees and/or reimburse expenses so that the Emerging Markets Equity Fund’s total expenses did not exceed 1.68%. During the year ended December 31, 2013, ICMI voluntarily waived $163,358 of advisor fees in the Emerging Markets Equity Fund. Penn Mutual or ICMI 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.

As of December 31, 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, 2014		December 31, 2015		December 31, 2016
Money Market Fund	$	128,050	$	122,590	$	176,604
Balanced Fund		33,707		22,964		20,510

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Notes to Financial Statements — December 31, 2013

During the year ended December 31, 2013, previously waived administrative and corporate services fees were recaptured by Penn Mutual. The recaptured fees are shown as Recaptured administration fees on the statement of operations and are as follows:

Mid Cap Growth Fund $ 6,750

As of December 31, 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, 2014		December 31, 2015		December 31, 2016
Money Market Fund	$	272,183	$	262,764	$	247,479
SMID Cap Growth Fund		20,314		23,866		10,433
SMID Cap Value Fund		48,883		49,667		61,894
Small Cap Index Fund		97,702		54,153		85,442
Developed International Index Fund		257,004		302,369		329,477
Emerging Markets Equity Fund		115,934		33,809		61,004
Aggressive Allocation Fund		12,299		6,330		2,362
Conservative Allocation Fund		4,176		2,344		31

During the year ended December 31, 2013, previously waived advisory fees were recaptured by ICMI. The recaptured fees are shown as Recaptured advisory fees on the statement of operations and are as follows:

Small Cap Value Fund	$	8,830
Moderately Conservative Allocation Fund		1,818
Conservative Allocation Fund		3,097

Total fees of $252,500 were paid to Directors of Penn Series, who are not interested persons of Penn Series, for the year ended December 31, 2013. Directors who are also employees of ICMI or its affiliates and Officers of the Company, except for the Company’s Chief Compliance Officer, receive no compensation from the Company for their services.

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 December 31, 2013 are as follows:

Money Market Fund	$	4,172,838
Limited Maturity Bond Fund		48,923,472
Quality Bond Fund		41,325,307
High Yield Bond Fund		5,007,813
Flexibly Managed Fund		53,656,912
Large Growth Stock Fund		40,079,171
Index 500 Fund		19,508,109
Mid Cap Growth Fund		4,584,954
Mid Core Value Fund		3,789,987
SMID Cap Growth Fund		4,808,490
SMID Cap Value Fund		4,679,925
Small Cap Growth Fund		3,833,501
Small Cap Value Fund		9,179,698
International Equity Fund		19,217,042
Large Core Value		30,092,765
Emerging Markets Equity		3,435,161
Small Cap Index Fund		3,267,883
Developed International Index		2,947,240

214

Penn Series Funds, Inc.

Notes to Financial Statements — December 31, 2013

Certain Funds effect 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 year ended December 31, 2013 were as follows:

Large Growth Stock Fund	$	181
Large Cap Growth Fund		50
Mid Core Value Fund		94
Small Cap Value Fund		6,133
Emerging Markets Equity Fund		6,506

5 — PURCHASES AND SALES OF SECURITIES

During the year ended December 31, 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	$	77,929,357	$	85,956,297	$	14,648,565
Quality Bond Fund		253,757,901		178,444,847		80,063,405		47,059,479
High Yield Bond Fund		—		—		130,292,433		123,095,451
Flexibly Managed Fund		141,672,817		55,293,687		1,603,152,245		1,285,713,264
Balanced Fund		—		—		12,178,295		16,880,575
Large Growth Stock Fund		—		—		84,880,943		107,506,246
Large Cap Growth Fund		—		—		59,533,687		43,360,244
Large Core Growth Fund		—		—		124,393,677		139,950,161
Large Cap Value Fund		—		—		348,762,637		353,148,798
Large Core Value Fund		—		—		102,868,542		115,163,308
Index 500 Fund		—		—		29,956,905		27,122,774
Mid Cap Growth Fund		—		—		87,673,906		105,245,597
Mid Cap Value Fund		—		—		63,886,645		59,016,720
Mid Core Value Fund		—		—		106,397,670		107,681,812
SMID Cap Growth Fund		—		—		50,055,078		46,057,719
SMID Cap Value Fund		—		—		34,319,274		30,919,645
Small Cap Growth Fund		—		—		113,539,461		129,226,998
Small Cap Value Fund		—		—		120,076,823		125,144,248
Small Cap Index Fund		—		—		15,620,679		8,996,071
Developed International Index Fund		—		—		8,818,900		13,253,585
International Equity Fund		—		—		124,915,623		121,030,258
Emerging Markets Equity Fund		—		—		81,796,904		73,100,434
Real Estate Securities Fund		—		—		88,330,422		74,552,511
Aggressive Allocation Fund		—		—		20,375,015		14,766,173
Moderately Aggressive Allocation Fund		—		—		61,264,605		46,570,001
Moderate Allocation Fund		—		—		80,364,675		63,534,510
Moderately Conservative Allocation Fund		—		—		34,809,623		29,560,047
Conservative Allocation Fund		—		—		26,140,956		32,368,989

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

215

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Notes to Financial Statements — December 31, 2013

the extent any Fund had undistributed investment company taxable income and net capital gains at December 31, 2013, such undistributed investment company taxable income and net capital gains were deemed distributed as consent dividends in place of regular distributions. Accordingly, no provision has been made for federal, state, or local income and excise taxes.

On December 22, 2010, The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law. The Act amended several tax rules impacting the Funds. Some highlights of the enacted provisions are as follows:

The Act allows for capital losses occurring in the taxable years beginning after December 22, 2010 (“post-enactment losses”) to be carried forward indefinitely. However, the Act requires any future gains to be first offset by post-enactment losses before using capital losses incurred in the taxable years beginning prior to the effective date of the Act (“pre-enactment losses”). As a result of this ordering rule, pre-enactment loss carryforwards have an increased likelihood to expire unused. Furthermore, post-enactment losses will retain their character as either long-term capital losses or short-term capital losses rather than being considered all short-term capital losses as under previous law.

The Act provides that a 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, 2013, 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 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	$	(1,182,668	)	$	(167,105	)	$	1,349,773
Quality Bond Fund		(10,455,707	)		(165,216	)		10,620,923
High Yield Bond Fund		(11,180,602	)		669,209			10,511,393
Flexibly Managed Fund		(25,493,071	)		(178,555,844	)		204,048,915
Balanced Fund		149,409			(2,389,021	)		2,239,612
Large Growth Stock Fund		492,834			(21,791,866	)		21,299,032
Large Cap Growth Fund		(167,716	)		(5,026,572	)		5,194,288
Large Core Growth Fund		90,003			—			(90,003	)
Large Cap Value Fund		(2,234,143	)		(9,123,356	)		11,357,499
Large Core Value Fund		(2,238,832	)		—			2,238,832
Index 500 Fund		(6,264,539	)		—			6,264,539
Mid Cap Growth Fund		549,006			(15,287,152	)		14,738,146
Mid Cap Value Fund		(1,768,088	)		(14,415,162	)		16,183,250
Mid Core Value Fund		(626,254	)		(16,697,134	)		17,323,388
SMID Cap Growth Fund		321,698			(6,074,212	)		5,752,514
SMID Cap Value Fund		(225,900	)		(5,727,125	)		5,953,025

216

Penn Series Funds, Inc.

Notes to Financial Statements — December 31, 2013

	Increase (Decrease) Undistributed Net Investment Income			Increase (Decrease) Accumulated Net Realized Gains			Increase (Decrease) Paid-in Capital
Small Cap Growth Fund	$	410,247		$	(8,771,979	)	$	8,361,732
Small Cap Value Fund		(1,106,169	)		(32,370,494	)		33,476,663
Small Cap Index Fund		(402,852	)		(2,754,237	)		3,157,089
Developed International Index Fund		(2,700,185	)		3,440			2,696,745
International Equity Fund		(2,108,675	)		113,607			1,995,068
Emerging Markets Equity Fund		(580,849	)		144,143			436,706
Real Estate Securities Fund		(1,503,361	)		(5,630,345	)		7,133,706
Aggressive Allocation Fund		162,159			(764,065	)		601,906
Moderately Aggressive Allocation Fund		642,003			(3,309,298	)		2,667,295
Moderate Allocation Fund		1,014,580			(6,855,634	)		5,841,054
Moderately Conservative Allocation Fund		340,982			(2,777,840	)		2,436,858
Conservative Allocation Fund		232,466			(1,829,472	)		1,597,006

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, 2013 and 2012 were as follows:

	Ordinary Income and Short-Term Capital  Gains		Long-Term Capital Gains		Total
Money Market Fund
2013	$	13,151		—	$	13,151
2012		14,219		—		14,219
Limited Maturity Bond Fund
2013		1,232,810	$	116,963		1,349,773
2012		1,713,752		—		1,713,752
Quality Bond Fund
2013		10,620,923		—		10,620,923
2012		11,799,258		6,431,826		18,231,084
High Yield Bond Fund
2013		10,511,393		—		10,511,393
2012		10,398,456		—		10,398,456
Flexibly Managed Fund
2013		84,915,132		119,131,671		204,046,803
2012		75,169,181		71,588,542		146,757,723
Balanced Fund
2013		1,199,143		2,389,021		3,588,164
2012		1,229,018		—		1,229,018
Large Growth Stock Fund
2013		—		21,798,396		21,798,396
2012		61,040		—		61,040
Large Cap Growth Fund
2013		1,866,076		3,328,212		5,194,288
2012		20,386		—		20,386

217

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Notes to Financial Statements — December 31, 2013

	Ordinary Income and Short-Term Capital  Gains		Long-Term Capital Gains		Total
Large Core Growth Fund
2013		—		—		—
2012	$	181,137		—	$	181,137
Large Cap Value Fund
2013		2,234,143	$	9,123,356		11,357,499
2012		2,226,798		—		2,226,798
Large Core Value Fund
2013		2,238,832		—		2,238,832
2012		2,524,594		—		2,524,594
Index 500 Fund
2013		6,264,539		—		6,264,539
2012		5,657,305		—		5,657,305
Mid Cap Growth Fund
2013		3,914,693		10,823,453		14,738,146
2012		—		4,072,542		4,072,542
Mid Cap Value Fund
2013		3,432,768		12,750,505		16,183,273
2012		6,866,376		833,723		7,700,099
Mid Core Value Fund
2013		8,755,746		8,567,642		17,323,388
2012		426,502		1,629		428,131
SMID Cap Growth Fund
2013		2,323,609		3,428,905		5,752,514
2012		—		187,389		187,389
SMID Cap Value Fund
2013		1,352,569		4,600,456		5,953,025
2012		1,335,452		1,240,789		2,576,241
Small Cap Growth Fund
2013		6,994,112		1,367,620		8,361,732
2012		—		—		—
Small Cap Value Fund
2013		9,599,808		23,876,854		33,476,662
2012		2,296,543		6,811,820		9,108,363
Small Cap Index Fund
2013		990,558		2,166,531		3,157,089
2012		743,524		1,249,614		1,993,138
Developed International Index Fund
2013		2,696,745		—		2,696,745
2012		2,131,353		—		2,131,353
International Equity Fund
2013		1,995,068		—		1,995,068
2012		6,184,831		—		6,184,831
Emerging Markets Equity Fund
2013		436,706		—		436,706
2012		463,009		—		463,009
Real Estate Securities Fund
2013		2,872,227		4,261,478		7,133,705
2012		4,388,925		4,191,785		8,580,710

218

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Notes to Financial Statements — December 31, 2013

	Ordinary Income and Short-Term Capital  Gains		Long-Term Capital Gains		Total
Aggressive Allocation Fund
2013	$	1,518,146	$	2,173,443	$	3,691,589
2012		753,119		520,308		1,273,427
Moderately Aggressive Allocation Fund
2013		6,245,534		7,996,578		14,242,112
2012		3,387,195		2,294,973		5,682,168
Moderate Allocation Fund
2013		8,991,875		11,787,364		20,779,239
2012		6,792,268		3,475,273		10,267,541
Moderately Conservative Allocation Fund
2013		2,387,676		4,025,299		6,412,975
2012		2,705,745		1,222,922		3,928,667
Conservative Allocation Fund
2013		1,507,391		1,927,247		3,434,638
2012		1,785,772		864,602		2,650,374

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

Capital loss carryforwards:

At December 31, 2013, 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,
	2014		2015		2016		2017		2018		Total
High Yield Bond Fund		—		—		—	$	1,637,923		—	$	1,637,923
Large Core Growth Fund		—		—		—		4,474,445		—		4,474,445
Large Core Value Fund		—		—		—		6,328,176		—		6,328,176
Index 500 Fund	$	1,058,191	$	187,860	$	4,110,871		2,801,580		2,767,741		10,926,243
International Equity Fund		—		—		—		9,403,354		6,672,017		16,075,371
Emerging Markets Equity Fund		—		—		—		7,807,157		—		7,807,157

At December 31, 2013, 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
Quality Bond Fund	$	59,064		—
Developed International Index Fund		—	$	1,809,793
Emerging Markets Equity Fund		268,515		—

During the year ended December 31, 2013, 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	$	4,863,503
Balanced Fund		228,030
Large Growth Stock Fund		12,851,437
Large Cap Growth Fund		125,931
Large Core Growth Fund		17,499,598
Large Cap Value Fund		21,369,689
Large Core Value Fund		24,744,699

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Notes to Financial Statements — December 31, 2013

Index 500 Fund	$	4,579,638
Small Cap Growth Fund		557,059
International Equity Fund		24,750,508

Qualified Late-Year Losses:

The following Funds elected to treat the qualified late-year losses as having occurred on January 1, 2014:

	Late Year Ordinary Losses		Total Late Year Capital Losses
High Yield Bond Fund	$	268,745		—
Emerging Markets Equity Fund		—	$	40,329
Developed International Index Fund		38,371		13,326
International Equity Fund		1,081,252		3,580,485

Tax cost of securities:

At December 31, 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 December 31, 2013 were as follows:

	Federal Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Money Market Fund	$	124,519,929		—		—			—
Limited Maturity Bond Fund		237,539,379	$	1,292,715	$	(445,577	)	$	847,138
Quality Bond Fund		526,154,199		12,373,708		(7,150,405	)		5,223,303
High Yield Bond Fund		177,751,258		8,893,693		(1,469,740	)		7,423,953
Flexibly Managed Fund		2,185,164,241		535,256,284		(17,852,798	)		517,403,486
Balanced Fund		55,474,767		27,041,408		(3,878,986	)		23,162,422
Large Growth Stock Fund		161,698,825		104,720,560		(681,500	)		104,039,060
Large Cap Growth Fund		47,740,787		7,939,805		(312,856	)		7,626,949
Large Core Growth Fund		85,880,586		42,982,998		(182,615	)		42,800,383
Large Cap Value Fund		187,078,172		35,076,997		(1,698,572	)		33,378,425
Large Core Value Fund		135,792,899		53,129,755		(1,289,365	)		51,840,390
Index 500 Fund		264,536,123		156,647,917		(20,127,587	)		136,520,330
Mid Cap Growth Fund		91,951,165		29,498,615		(387,857	)		29,110,758
Mid Cap Value Fund		136,491,404		37,602,706		(984,329	)		36,618,377
Mid Core Value Fund		66,512,368		7,461,366		(1,360,808	)		6,100,558
SMID Cap Growth Fund		47,770,417		17,348,645		(256,437	)		17,092,208
SMID Cap Value Fund		48,158,633		17,072,591		(559,703	)		16,512,888
Small Cap Growth Fund		71,844,043		19,299,148		(775,516	)		18,523,632
Small Cap Value Fund		178,586,104		63,937,845		(2,500,414	)		61,437,431
Small Cap Index Fund		45,271,968		22,675,005		(2,345,838	)		20,329,167
Developed International Index Fund		77,766,325		27,778,648		(3,014,872	)		24,763,776
International Equity Fund		294,259,908		89,491,954		(11,640,271	)		77,851,683
Emerging Markets Equity Fund		135,626,260		34,098,391		(9,232,450	)		24,865,941
Real Estate Securities Fund		109,411,173		6,419,630		(4,367,235	)		2,052,395
Aggressive Allocation Fund		38,454,694		18,807,898		(420,245	)		18,387,653
Moderately Aggressive Allocation Fund		160,058,800		73,638,296		(2,149,728	)		71,488,568
Moderate Allocation Fund		261,240,263		92,381,706		(1,696,271	)		90,685,435
Moderately Conservative Allocation Fund		87,678,332		24,421,613		(786,356	)		23,635,257
Conservative Allocation Fund		57,704,287		10,886,812		(457,264	)		10,429,548

220

Penn Series Funds, Inc.

Notes to Financial Statements — December 31, 2013

The differences between book basis and tax basis appreciation are primarily due to wash sales, Passive Foreign Investment Companies, Partnership Investments, Trust Preferred Securities, real estate investment trust adjustments, and the treatment of certain corporate actions.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years and has concluded that as of December 31, 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.

The Index 500, Developed International Index and Small Cap Index Funds have entered into futures contracts during the year ended December 31, 2013. Open futures contracts held by the Index 500, Developed International Index and Small Cap Index Funds at December 31, 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		3/15/2014		38		50	$	1,841	$	8,179
Small Cap Index	Buy/Long	Russell 2000 Mini Index		3/15/2014		5		100	$	1,161		23,580
Developed International Index	Buy/Long	E-Mini MSCI Eafe Index		3/15/2014		26		50	$	1,918		99,611

The total market value of futures contracts held in the Index 500, Developed International Index and Small Cap Index Funds as of December 31, 2013 are classified as Level 1.

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Notes to Financial Statements — December 31, 2013

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 year ended December 31, 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		67,844			12,796,365
Options repurchased		(39,962	)		(6,586,334	)
Options expired		(11,940	)		(1,586,746	)
Options exercised		(30,086	)		(4,513,206	)
Options outstanding at December 31, 2013		29,258		$	7,233,242

The total market value of written options held in the Flexibly Managed Fund as of December 31, 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 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 Markets 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

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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 December 31, 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	Bank of America		03/12/2014	$	47,000			0.72692	$	64,671		$	64,657		$	(14	)
Sell	Euro	Goldman Sachs		03/12/2014		(188,000	)		0.72692		(257,455	)		(258,626	)		(1,171	)
Sell	Euro	Deustche Bank		03/12/2014		(10,664,124	)		0.72692		(14,676,415	)		(14,670,330	)		6,085
Sell	Pounds Sterling	Royal Bank of Canada		01/10/2014		(1,190,732	)		0.60392		(1,915,007	)		(1,971,668	)		(56,661	)
Sell	Pounds Sterling	Deustche Bank		01/10/2014		(210,000	)		0.60392		(335,859	)		(347,727	)		(11,868	)
Sell	Pounds Sterling	Bank of New York Mellon		01/10/2014		(51,923	)		0.60392		(83,942	)		(85,976	)		(2,034	)
Sell	Pounds Sterling	State Street		01/10/2014		(105,621	)		0.60392		(170,668	)		(174,891	)		(4,223	)
Sell	Pounds Sterling	Chase Manhattan Bank		01/10/2014		(113,875	)		0.60392		(186,327	)		(188,559	)		(2,232	)
Sell	Swiss Francs	Chase Manhattan Bank		02/12/2014		(864,911	)		0.89178		(938,560	)		(969,873	)		(31,313	)
	Total															$	(103,431	)

Open forward foreign currency contracts held by the Mid Core Value Fund at December 31, 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 Chase		01/31/2014	$	(1,995,023	)		1.06308	$	(1,862,532	)	$	(1,876,645	)	$	(14,113	)
Sell	Canadian Dollar		JPMorgan Chase		01/31/2014		(54,814	)		1.06308		(51,200	)		(51,562	)		(362	)
Sell	Euro		USB Securities		01/31/2014		(10,483	)		0.72692		(14,351	)		(14,421	)		(70	)
Sell	Euro		USB Securities		01/31/2014		(369,193	)		0.72692		(504,271	)		(507,890	)		(3,619	)
Buy	Swiss Francs		Credit Suisse First Boston		01/31/2014		64,585			0.89186		72,271			72,416			145
Buy	Swiss Francs		Credit Suisse First Boston		01/31/2014		19,053			0.89186		21,285			21,363			78
Sell	Swiss Francs		Credit Suisse First Boston		01/31/2014		(83,638	)		0.89186		(93,312	)		(93,779	)		(467	)
	Total																$	(18,408	)

Open forward foreign currency contracts held by the Emerging Markets Equity Fund at December 31, 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		01/16/2014	$	(80,156,423	)		105.08548	$	(778,051	)	$	(761,207	)	$	16,844
	Total																$	16,844

223

Penn Series Funds, Inc.

Notes to Financial Statements — December 31, 2013

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 December 31, 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 December 31, 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

** 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.

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 December 31, 2013:

	Asset Derivative Value				Liability Derivative Value
Portfolio	Equity contracts		Foreign currency contracts		Equity contracts		Foreign exchange contracts
High Yield Bond Fund		—		$6,085		—		$109,516
Flexibly Managed Fund		—		—		$14,741,868		—
Index 500 Fund		$8,179		—		—		—
Small Cap Index Fund		23,580		—		—		—
Developed International Index Fund		99,611		—		—		—
Mid Core Value Fund		—		223		—		18,631
Emerging Markets Equity Fund		—		16,844		—		—

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. 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

224

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Notes to Financial Statements — December 31, 2013

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 December 31, 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
Chase Manhattan Bank	Fx Letter		—	$	(33,545	)	$	(33,545	)		—		—
Royal Bank of Canada	Fx Letter		—		(56,661	)		(56,661	)		—		—
Deutsche Bank	Fx Letter	$	6,085		(11,868	)		(5,783	)		—		—
Bank of New York Mellon	Fx Letter		—		(2,034	)		(2,034	)		—		—
State Street	Fx Letter		—		(4,223	)		(4,223	)		—		—
Goldman Sachs	Fx Letter		—		(1,171	)		(1,171	)		—		—
Goldman Sachs	Fx Letter		—		(14	)		(14	)		—		—
Total			6,085		(109,516	)		(103,431	)		—		—
Flexibly Managed Fund
Merrill Lynch Capital Markets	ISDA		—		(8,353,918	)		(8,353,918	)		—		—
Citigroup Global Markets	ISDA		—		(1,471,473	)		(1,471,473	)		—		—
JPMorgan Chase	ISDA		—		(1,997,534	)		(1,997,534	)		—		—
Morgan Stanley & Co.	ISDA		—		(575,170	)		(575,170	)		—		—
Exchange Traded			—		(2,343,773	)		(2,343,773	)		—		—
Total			—		(14,741,868	)		(14,741,868	)		—		—
Index 500 Fund
Exchange Traded			12,160		—			12,160			384,997		—
Mid Core Value Fund
UBS Securities	ISDA		—		(3,689	)		(3,689	)		—		—
JPMorgan Chase	ISDA		—		(14,475	)		(14,475	)		—		—
Credit Suisse First Boston	ISDA		223		(467	)		(244	)		—		—
Total			223		(18,631	)		(18,408	)		—		—
Small Cap Index Fund
Exchange Traded			2,400		—			2,400			44,998		—
Developed International Index Fund
Exchange Traded			49,332		—			49,332			131,820		—
Emerging Markets Equity Fund
State Street	Fx Letter		16,844		—			16,844			—		16,844

225

Penn Series Funds, Inc.

Notes to Financial Statements — December 31, 2013

The following is a summary of the location of derivatives on the Funds’ Statements of Operations as of December 31, 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		$203,570		$(878,324	)
Flexibly Managed Fund*		1,661,726		—
Index 500 Fund		2,032,773		—
Small Cap Index Fund		413,036		—
Developed International Index Fund		305,533		—
Mid Core Value Fund		—		51,288
Emerging Markets Equity Fund		—		119,643

Portfolio	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
	Equity contracts			Foreign currency contracts
High Yield Bond Fund		—			$72,310
Flexibly Managed Fund		$(7,499,889	)		—
Index 500 Fund		15,134			—
Small Cap Index Fund		(17,667	)		—
Developed International Index Fund		54,290			—
Mid Core Value		—			(18,408	)
Emerging Markets Equity Fund		—			5,256

* includes purchased options

The table below summarizes the average balance of derivative holdings by Fund during the year ended December 31, 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	$	(13,131,567	)		—	$	93,077		—
Flexibly Managed Fund		—			—		1,113	$	(6,041,299	)
Index 500 Fund		—		$	6,690,065		—		—
Mid Core Value Fund		—			1,014,837		—		—
Small Cap Index Fund		—			1,818,728		—		—
Developed International Index Fund		(1,789,480	)		—		—		—
Emerging Markets Equity Fund		(756,814	)		—		—		—

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Notes to Financial Statements — December 31, 2013

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 High Yield Bond, Flexibly Managed, Large Growth Stock, Large Cap Growth, Mid Core Value, Small Cap Growth, 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.

227

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Penn Series Funds, Inc.:

We have audited the accompanying statements of assets and liabilities of Penn Series Funds, Inc. comprised of the Money Market Fund, Limited Maturity Bond Fund, Quality Bond Fund, High Yield Bond Fund, Flexibly Managed Fund, Balanced Fund, Large Growth Stock Fund, Large Cap Growth Fund, Large Core Growth Fund, Large Cap Value Fund, Large Core Value Fund, Index 500 Fund, Mid Cap Growth Fund, Mid Cap Value Fund, Mid Core Value Fund, SMID Cap Growth Fund, SMID Cap Value Fund, Small Cap Growth Fund, Small Cap Value Fund, Small Cap Index Fund, Developed International Index Fund, International Equity Fund, Emerging Markets Equity Fund, Real Estate Securities Fund, Aggressive Allocation Fund, Moderately Aggressive Allocation Fund, Moderate Allocation Fund, Moderately Conservative Allocation Fund and Conservative Allocation Fund (collectively, the Funds), as of December 31, 2013, including the schedules of investments, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian, transfer agent, and brokers, or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Penn Series Funds, Inc., comprised of the Funds as of December 31, 2013, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

February 21, 2014

228

Penn Series Funds, Inc.

December 31, 2013

Tax Information (unaudited)

Each Fund reports the following amounts distributed during the year ended December 31, 2013 as capital gain dividends:

Fund	Long-Term Capital Gain
Limited Maturity Bond Fund	$	116,963
Flexibly Managed Fund		119,131,671
Balanced Fund		2,389,021
Large Growth Stock Fund		21,798,396
Large Cap Growth Fund		3,328,212
Large Cap Value Fund		9,123,356
Mid Cap Growth Fund		10,823,453
Mid Cap Value Fund		12,750,505
Mid Core Value Fund		8,567,642
SMID Cap Growth Fund		3,428,905
SMID Cap Value Fund		4,600,456
Small Cap Growth Fund		1,367,620
Small Cap Value Fund		23,876,854
Small Cap Index Fund		2,166,531
Real Estate Securities Fund		4,261,478
Aggressive Allocation Fund		2,173,443
Moderately Aggressive Allocation Fund		7,996,578
Moderate Allocation Fund		11,787,364
Moderately Conservative Allocation Fund		4,025,299
Conservative Allocation Fund		1,927,247

Each Fund reports the following percentages of ordinary income dividend paid during the year ended December 31, 2013 as being eligible for the dividends received deduction available to corporate shareholders:

Fund
High Yield Bond Fund	13.31	%
Flexibly Managed Fund	22.21	%
Balanced Fund	61.67	%
Large Cap Growth Fund	23.27	%
Large Cap Value Fund	100.00	%
Large Core Value Fund	100.00	%
Index 500 Fund	100.00	%
Mid Cap Growth Fund	12.73	%
Mid Cap Value Fund	65.12	%
Mid Core Value Fund	11.71	%
SMID Cap Growth Fund	9.37	%
SMID Cap Value Fund	41.94	%
Small Cap Growth Fund	6.41	%
Small Cap Value Fund	18.89	%
Small Cap Index Fund	37.69	%
International Equity Fund	37.46	%
Emerging Markets Equity Fund	8.48	%
Aggressive Allocation Fund	22.45	%
Moderately Aggressive Allocation Fund	19.26	%
Moderate Allocation Fund	16.70	%
Moderately Conservative Allocation Fund	15.96	%
Conservative Allocation Fund	10.68	%

229

Penn Series Funds, Inc.

December 31, 2013

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 November 21, 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.

Special Meeting of Shareholders

On December 13, 2013, Penn Series sent proxy materials to the shareholders of record of Penn Series, Penn Mutual and Penn Insurance and Annuity Company, as well as the policy holders and contract owners of the shareholders, as of the close of business on November 29, 2013. The proxy materials provided notice of a Special Meeting of Shareholders to be held at the office of Penn Mutual on Thursday, February 13, 2014. Shareholders were asked to (1) elect a Board of Directors, (2) approve an amendment to the investment advisory agreement between Penn Series and ICMI that modifies certain Funds’ advisory fee rates by introducing new and revising existing asset level (“breakpoint”) fee rates, and (3) approve the reclassification of a fundamental policy of the Quality Bond Fund as a non-fundamental policy. In addition, the policy holders and contract owners were asked to provide the shareholders with voting instructions with respect to these same proposals. The voting results for each of these proposals will be provided in the Penn Series Semi-Annual Report to Shareholders for the period ended June 30, 2014.

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Penn Series Funds, Inc.

December 31, 2013

Board Approval of Amended Investment Advisory Agreement

The Penn Series Funds, Inc. (the “Company”) and Independence Capital Management, Inc. (“ICMI”) have entered into an investment advisory agreement (the “Current Agreement”). Pursuant to the Current 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. At a meeting held on November 13, 2013 (the “Board Meeting”), the Board, 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”), considered and unanimously approved, subject to shareholder approval, an amendment to the Current Agreement (the “Amended Agreement” or the “Proposal”) that provides for a modified advisory fee rate schedule for the Money Market Fund, Quality Bond Fund, and Large Growth Stock Fund that includes additional breakpoints, and the introduction of a new advisory fee rate schedule for each of the Limited Maturity Bond Fund, High Yield Bond Fund, Flexibly Managed Fund, Large Cap Value Fund, Large Core Value Fund, Index 500 Fund, International Equity Fund, Aggressive Allocation Fund, Moderately Aggressive Allocation Fund, Moderate Allocation Fund, Moderately Conservative Allocation Fund, and Conservative Allocation Fund (collectively, with the Money Market Fund, Quality Bond Fund, and Large Growth Stock Fund, the “Funds”).

In considering whether to approve the Amended Agreement, the Board considered and discussed a substantial amount of information and analysis provided by ICMI. ICMI explained the specific reasons for its recommendation. ICMI also explained that the Proposal would require the approval of each Fund’s shareholders, which would necessitate the preparation and delivery of a proxy statement, a proxy solicitation and a special shareholders’ meeting. ICMI informed the Board of its intent to bear its proportionate shares of the expenses associated with these activities. The Board also considered detailed information regarding fees and expenses of other comparable funds. The Board had the opportunity to request additional information in connection with its considerations and to discuss this information with ICMI personnel, including representatives from the legal, compliance and finance departments, and investment personnel. The Board posed questions to these representatives and engaged in substantive discussions with them concerning the Proposal. The Board also was advised of its legal responsibilities and obligations by Fund counsel.

During the Board Meeting, the Board, including the Independent Directors, relied, in part, on information presented by ICMI and its affiliates in support of the May 2013 annual renewal of the Current Agreement in its consideration of the approval of the Amended Agreement. In connection with its evaluation of the Current Agreement and Amended Agreement, the Board considered the following factors:

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by ICMI to the Funds and the resources of ICMI and its affiliates dedicated to the support of the Funds. In this regard, the Directors evaluated, among other things, ICMI’s personnel, experience, track record and compliance program. The Directors found the level of ICMI’s professional staff and culture of compliance satisfactory. Following evaluation, the Board concluded that, within the context of its full deliberations, the nature, extent and quality of services provided by ICMI to the Funds and the resources of ICMI and its affiliates dedicated to the Funds supported the approval of the Amended Agreement.

Fund Performance. The Board considered each Fund’s performance in determining whether to approve the Amended Agreement. Specifically, the Directors considered the Funds’ performance relative to their peer groups and appropriate indices/benchmarks, in light of total return, yield and market trends. As part of this review, the Directors considered the composition of each peer group and selection criteria. In evaluating performance, the Directors considered both market risk and shareholder risk expectations for the Funds. The Directors found Fund performance satisfactory. Following evaluation, the Board concluded that, within the context of its full deliberations, the performance of the Funds supported the approval of the Amended Agreement.

Fund Expenses. With respect to the Funds’ expenses, the Directors considered that the effect of the proposed modifications to the Funds’ advisory fee rate schedules would be to increase the amount of the advisory fees payable by the Funds to ICMI for the advisory services it provides to the Funds. The Directors were provided with and carefully considered the Funds’ current net operating expense ratios and projected net operating expenses assuming the approval of the Amended Agreement, both in comparison to those of other Comparable Funds. The Directors also considered information about

231

Penn Series Funds, Inc.

December 31, 2013

average expense ratios of Comparable Funds. The Directors further considered the fact that the comparative advisory fee analysis showed that the proposed advisory fee rate payable by each Fund based on the Fund’s current net assets would be less than or equal to the average fee rates paid to managers that provide similar services to Comparable Funds. Following evaluation, the Board concluded that, within the context of its full deliberations, the proposed advisory fee schedules of the Funds are reasonable and supported the approval of the Amended Agreement.

Profitability. With regard to profitability, the Directors were presented with information about the Proposal’s effect, if approved, on ICMI’s profitability in connection with its management of the Funds. The Directors considered all compensation flowing to ICMI and its affiliates, directly and indirectly. The Directors also considered whether these varied levels of compensation and profitability under the Amended Agreement and other service agreements were reasonable and justified in light of the quality of all services to be rendered to the Funds by ICMI and its affiliates. The Directors found that expected profitability under the Amended Agreement was reasonable. Based on this evaluation, the Board concluded that, within the context of its full deliberations, the expected profitability of ICMI is reasonable and supported approval of the Amended Agreement.

Economies of Scale. The Directors considered that the purpose, in part, of the Amended Agreement would be to implement advisory fee rate breakpoints for Funds that currently are subject to a single set advisory fee rate and to revise the advisory fee rate schedules for those Funds that are currently subject to breakpoints to add additional breakpoints. The Directors were provided with and considered information about the hypothetical future asset growth of each Fund in light of the proposed advisory fee rate breakpoints. The Directors concluded that the proposed modifications to the Funds’ advisory fee rate schedules would promote the sharing of any economies of scale realized by the Funds as Fund assets grow. Based on this evaluation, the Board concluded that, within the context of its full deliberations, the Funds currently obtain reasonable benefits from economies of scale and that the Amended Agreement would facilitate the Funds’ ability to benefit from further economies of scale realized in the future.

Based on the Directors’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Directors, unanimously approved the Amended Agreement. The Board concluded, in the exercise of its reasonable judgment that the proposed advisory fee rate schedules are fair and reasonable in relation to the services provided to each Fund and that approval of the Amended Agreement would be in the best interests of each Fund and its shareholders. In its deliberations, the Board did not identify any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision and each Director may have attributed different weights to the various factors (and conclusions with respect thereto) and information.

232

Penn Series Fund Management (Unaudited)

As of December 31, 2013

Name and Age	Position with the Company; Term of Office and Length of Time Served	Principal Occupation During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Director		Other Directorships Held by Director During Past 5 Years
INDEPENDENT DIRECTORS
Eugene Bay (76)*	Director; No set term; Served since 1993.	Retired, (2010 – Present); President, Colgate Rochester Crozer Divinity School (2006 – 2010).		29	None.
Joanne B. Mack (67)*	Director; No set term; Served since 2013.	Vice President – Financial Services, Trianz (2012 – 2013); Management Consultant, self-employed (2009 – 2012; 2013 – present).		29	None.
Archie C. MacKinlay (58)*	Director; No set term; Served since 2010.	Professor of Finance, Wharton School, University of Pennsylvania (July 1984 – Present)		29	None.
Rebecca C. Matthias (60)*	Director; No set term; Served since 2010.	Retired. President, Destination Maternity Corporation (clothing) (1982 – 2010).		29	Director, CSS Industries.
INTERESTED DIRECTORS
Eileen C. McDonnell (51)*	Director and Chairman of the Board; No set term; Served since 2010.	Chief Executive Officer (2011 – Present), President (2010 – Present), Chairman of the Board (2013), Executive Vice President and Chief Marketing Officer (2008 – 2010), The Penn Mutual Life Insurance Company; Director, Independence Capital Management, Inc. (2010 – Present); President and Director (2010 – Present), Chairman of the Board (2011 – Present), The Penn Insurance & Annuity Company.		29	Director, UHS of Delaware, Inc.
David B. Pudlin (64)*	Director; No set term; Served since 2009.	Chief Executive Officer, President and Attorney, Hangley Aronchick Segal Pudlin & Schiller, (law firm) (1994 – Present)		29	None.
*  The address of each Director is: Penn Series Funds, Inc. 600 Dresher Road, Horsham, Pennsylvania 19044.

233

Penn Series Fund Management (Unaudited)

As of December 31, 2013

Name and Age	Position with the Company; Term of Office and Length of Time Served	Principal Occupation During Past 5 Years
OFFICERS
Peter M. Sherman (61)*	President; One year; Served since 2000.	Executive Vice President and Chief Investment Officer (1996 – Present), The Penn Mutual Life Insurance Company.
Keith Huckerby (42)*	Vice President; One year; Served since 2011.	Vice President (2007 – Present), Independence Capital Management, Inc.; Assistant Vice President (2009 – Present), The Penn Mutual Life Insurance Company.
Timothy Demetres (58)*	Vice President; One year; served since 2012.	Vice President and Chief Accounting Officer (2010 – present), The Penn Mutual Life Insurance Company.
Robert DellaCroce (50)*	Treasurer; One year; Served since 2009.	Assistant Vice President (2009 – Present), The Penn Mutual Life Insurance Company; Unit Leader (1994 – 2009), SEI Investment Operations.
John Heiple (40)*	Assistant Treasurer; One year; Served since 2004.	Manager, Variable Accounting (2003 – Present), The Penn Mutual Life Insurance Company.
James G. Murray (60)*	Tax Director; One year; Served since 2012.	Tax Director (1998 – Present), The Penn Mutual Life Insurance Company.
Patricia M. Chiarlanza (48)*	Assistant Treasurer; One year; Served since 2001.	Assistant Treasurer (2001 – Present), The Penn Mutual Life Insurance Company.
Franklin L. Best, Jr. (68)*	Secretary; One year; Served since 2012.	Vice President, General Counsel, Insurance Operations, and Corporate Secretary (2011 – Present), Managing Corporate Counsel and Secretary (2004 – 2011), The Penn Mutual Life Insurance Company.
Rodney L. Ruehle (45) Beacon Hill Fund Services, Inc. 4041 N. High Street Suite 402 Columbus, Ohio 43214	Chief Compliance Officer; One year; Served since 2012.	Director, Beacon Hill Fund Services, Inc. (2008 – Present).
Robyn Label (53)*	Anti-Money Laundering Officer; One year; Served since 2013.	Vice President, The Penn Mutual Life Insurance Company (2009 – Present)

* The address of each Officer, except Rodney Ruehle, is: Penn Series Funds, Inc. 600 Dresher Road, Horsham, Pennsylvania 19044.

Additional information about the Fund’s Directors is available in the Fund’s Statement of Additional Information, which is available upon request, without charge, by calling 1-800-523-0650.

234

Item 2. Code of Ethics

The registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer, or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR. No substantive amendments to this code of ethics were approved during the period covered by this report.

Item 3. Audit Committee Financial Expert

The registrant’s Board of Directors has determined that Ms. Rebecca C. Matthias qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Matthias is considered independent for purposes of Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services

(a) - (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:

	2013		2012
Audit Fees	$	437,000	$	425,000
Audit-Related Fees	$	0	$	0
Tax Fees	$	0	$	0
All Other Fees	$	0	$	0

Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts for assurance and related services performed by the principal account reasonably related to the performance of the audit of the registrant’s financial statements and not reported under the caption “Audit Fees.” Tax fees include amounts related to tax compliance, tax planning, and tax advice.

(e)

(1) The registrant’s audit committee has developed an Audit and Non-Audit Services Pre-Approval Policy. A copy of this policy is filed as an exhibit to this Form N-CSR.

(2) There were no services approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable

(g) The registrant had no aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.

(h) 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 shareholder meeting voting results is included as part of the report to shareholders filed under Item 1 of this form.

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 of the period 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) (2)	Code of Ethics Certifications pursuant to Rule 30a-2(a) under the Investment Company Act
(b)		Certifications pursuant to Rule 30a-2(b) under the Investment Company Act
(c)		Audit and Non-Audit Services Pre-Approval Policy

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:	March 6, 2014

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:	March 6, 2014
/s/ Robert J. DellaCroce
By:	Robert J. DellaCroce
	Treasurer
Date:	March 6, 2014