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)

Steven Viola

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) 956-8129

Date of fiscal year end: December 31

Date of reporting period: December 31, 2015

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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

PennMutual®
Annual Reports
December 31, 2015
Penn Mutual Variable Products

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 finished the year slightly positive despite a weak third quarter and increased volatility. Equity market volatility spiked near record highs during the August freefall but stock prices recovered almost as quickly and turned in impressive returns for the month of October. The U.S. economy continued to be one of the few bright spots across the globe as U.S. Gross Domestic Product (GDP) growth rebounded during the second and third quarters as businesses ramped up investment and built up inventories. The employment picture in the U.S. remains on a steadily improving path, and the unemployment rate is at a post-crisis low of 5.0% as of December 2015. From a sector perspective, Consumer Discretionary, Health Care, and Consumer Staples had the strongest returns and sectors such as Energy, Materials, and Utilities experienced relatively weaker returns over the 12-month period ending December 31, 2015. In this environment, the U.S. stock market, as measured by the Wilshire 5000 Equity Index, returned a relatively flat 0.67 percent for the full 12-month period.

On a relative basis, large capitalization stocks provided higher returns than did mid and small capitalization stocks for the year. Large capitalization stocks, as measured by the Russell 1000 Index, returned 0.92 percent, while mid capitalization stocks, as measured by the Russell Midcap Index returned –2.44 percent and small capitalization stocks, as measured by the Russell 2000 Index, returned –4.41 percent. From a style perspective, growth stocks outperformed value stocks in the all market capitalizations, with the widest disparity being in the large capitalization space. For instance, large cap growth stocks, as measured by the Russell 1000 Growth Index returned 5.67 percent while large cap value stocks, as measured by the Russell 1000 Value Index returned –3.83 percent. Much of the relative underperformance within value stocks can be attributed to the relatively weak performance within the Energy and Utilities sectors. Lastly, Real Estate Investment Trusts (REITs), which have experienced some of the best returns of any asset class since 2009, suffered a nearly 10.00 percent loss during the second quarter on the prospects of rising interest rates. Despite their strong rebound in the second half of the year with a solid 9.40 percent return, they ended 2015 with a modest return of 3.20 percent as measured by the FTSE NAREIT Equity REIT Index.

International markets, both developed and emerging, ended the full year behind U.S. equities as their third quarter losses were much more pronounced. Developed international stocks, as measured by the MSCI EAFE Index, returned –0.39 percent while emerging market stocks, as measured by the MSCI Emerging Markets Index, fared much worse with a return of –14.60 percent. Plunging oil prices and slowing global growth contributed to increased risk aversion within the international markets. The continued collapse in oil prices that began in 2014 has been particularly difficult for many commodity-driven emerging markets. Brent crude oil, the global benchmark, ended the year at roughly $37 a barrel, close to an 11-year low. Also contributing to losses for U.S. dollar-based investors is the further weakening of non-U.S. currencies, particularly the euro. (The appreciating U.S. dollar detracts from returns for dollar-based investors in foreign markets.)

Investment-grade fixed-income securities outperformed high yield bonds during the full 12-month period as falling commodity prices weighted significantly on the latter. Investment-grade bonds, as measured by the Barclays Capital U.S. Aggregate Index, returned 0.55 percent and the Credit Suisse High Yield Bond Index, returned –4.93 percent. The Federal Reserve (Fed) finally delivered liftoff from its zero interest rate policy in December, ending exactly seven years of its zero interest rate policy. With the decision, the Fed decidedly placed more importance on steadily improving labor market conditions over the rout in commodity prices and declining long-term inflation expectations.

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

Sincerely,

David M. O’Malley

President and Chief Operating 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	16
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 (Unaudited)	57
Schedules of Investments	60
Statements of Assets and Liabilities	172
Statements of Operations	180
Statements of Changes in Net Assets	184
Financial Highlights	192
Notes to Financial Statements	207
Report of Independent Registered Public Accounting Firm	233
Tax Information	234
Disclosure of Portfolio Holdings	235
Voting Proxies on Fund Portfolio Securities	235
Fund Management	236

1

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Limited Maturity Bond Fund

The Penn Series Limited Maturity Bond Fund returned 0.78% for the twelve-month period ending December 31, 2015, compared to the 0.65% return for its benchmark, the Barclays Capital U.S. Government/Credit 1-3 Year Index for the same time period.

The Fund’s emphasis on attractively valued floating rate assets, tactical high yield exposure and yield curve positioning contributed positively to performance. Performance during the year was impacted by the volatility in risk markets, particularly during the fourth quarter. While we maintain a high quality portfolio, the Fund carries more credit risk than its Index in the form of higher-yielding corporate debt, seasoned floating-rate collateralized loan obligations (CLOs), student loan asset backed securities, and Freddie K multi-family housing bonds.

In corporates, the Fund seeks to identify high yield issuers with attractive yields, very low default risk, and the potential for rating upgrades into the investment grade category (i.e. General Motors, Israel Electric, and Delta over the past year). The Fund benefited from its very limited exposure to energy and metals and mining sectors, the two worst performing sectors of the year.

Within the structured securities realm, we continue to believe CLOs offer the best relative value among short duration bond investments and will eventually benefit from Federal Reserve tightening due to their floating rate coupons. We also remain constructive on the student loan asset class despite ratings pressure from Moody’s. We also feel that the Freddie K multi-family housing sector offers attractive relative value after experiencing supply driven spread widening.

The trend towards wider spreads for credit risk gained momentum during the fourth quarter driven by three primary factors: 1.) U.S. corporations have been issuing debt at a record pace, often rewarding shareholders with the proceeds; 2.) commodity prices have fallen sharply pushing spreads wider in the energy and basic materials sectors; 3.) increasing investor concern regarding global economic growth prospects and deflationary pressures emanating from China. Valuations for short duration high quality corporate credits, especially names without commodity exposure, look attractive given our expectation for continued growth in the U.S. economy and accommodative monetary policy.

Our active management strategies will continue to focus on identifying the best relative value among short duration bonds as well as tactical duration and yield curve positioning as sources of value added performance for the Limited Maturity Bond Fund.

We utilized derivatives to manage portfolio duration during 2015. Long positioning in Treasury 2-year note futures brought Fund duration in line with its performance benchmark, The Barclays 1-3 Year Government Credit Index. The combination of short maturity fixed rate and floating-rate instruments combined with Treasury futures was a positive contributor to performance during the year as credit spreads widened (particularly for long duration corporate and structured bonds).

Penn Mutual Asset Management, Inc.

Investment Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Limited Maturity Bond Fund on December 31, 2005 would have grown to $12,660. 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, 2005 would have grown to $13,101.

2

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Limited Maturity Bond Fund		0.78	%		0.74	%		2.39	%
Barclays Capital U.S. Government/Credit 1-3 year Index		0.65	%		0.98	%		2.74	%

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 12/31/15

	Percent of Total Investments2
Corporate bonds		36.4	%
Asset backed		30.0	%
Commercial Mortgage Backed		18.3	%
U.S. Treasury Obligations		8.6	%
Residential Mortgage Backed		4.0	%
Collateralized Mortgage Obligations		2.2	%
Agency Obligations		0.3	%
Municipal Bonds		0.2	%
		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 0.37% for the twelve-month period ending December 31, 2015, compared to the 0.55% return for its benchmark, the Barclays Capital U.S. Aggregate Bond Index for the same time period.

Our emphasis on higher quality corporate and taxable municipal bond positions benefited Fund performance during 2015 as investors sought safety in the midst of a challenging environment for high yield debt, especially bonds in the energy sector. Spreads for investment-grade credit also widened during the year due to record new issuance. Much of this supply was issued to finance shareholder friendly activities in the form of higher dividends, share repurchases or mergers and acquisition (M&A) activity.

Portfolio holdings of commercial mortgage-backed securities (CMBS) contributed to the underperformance during the second half of 2015. Similar to the corporate sector, heavy new issue supply in the CMBS sector led to spread widening. We remain positive on seasoned multi-family housing CMBS holdings due to underlying property price appreciation since issuance and improving fundamental credit metrics. Structured portfolio holdings also include floating rate collateralized loan obligations (CLOs) and student loan asset-backed securities. Both sectors offer attractive spreads relative to short duration fixed rate structured securities.

Interest rates increased across the yield curve during 2015 with 2-year Treasury notes leading the move higher, up 38 basis points. Short-term yields reacted to the Federal Reserve’s long anticipated liftoff from zero interest rates in December. Longer-term interest rates moved modestly higher as declining commodity prices kept a lid on inflation expectations. We increased portfolio exposure to Treasury Inflation Protected Securities (TIPs) throughout the year due to improved valuations and the potential for higher inflation readings in 2016.

We remain committed to identify the best relative value opportunities among both corporate and structured bond investments. Tactical duration and yield curve positioning will also provide opportunities for incremental returns with heightened interest rate and credit spread volatility expected to continue in 2016.

We utilized derivatives to manage portfolio duration and yield curve positioning during 2015. Treasury futures were

used to shorten portfolio duration in line with the Fund’s performance benchmark, the Barclays Aggregate Index. Duration management benefitted performance during 2015 as interest rates increased. Futures based yield curve positioning structured to benefit from the yield curve steepening also was additive to performance.

Penn Mutual Asset Management, Inc.

Investment Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Quality Bond Fund on December 31, 2005 would have grown to $15,387. 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, 2005 would have grown to $15,552.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Quality Bond Fund		0.37	%		3.07	%		4.40	%
Barclays Capital U.S. Aggregate Bond Index		0.55	%		3.25	%		4.51	%

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.

4

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 12/31/15

	Percent of Total Investments2
Corporate Bonds		32.1	%
Commercial Mortgage Backed		23.1	%
Asset Backed Securities		16.8	%
U.S. Treasury Obligations		15.3	%
Residential Mortgage Backed		11.3	%
Municipal Bonds		0.9	%
Agency Obligations		0.5	%
		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 –3.37% for the twelve-month period ending December 31, 2015, compared to the –4.93% return for its benchmark, the CSFB High Yield Bond Index.

A combination of positive credit selection and underweight exposure in the energy sector aided relative performance. An overweight allocation to media/telecom also helped. Conversely, credit selection in metals and minerals weighed on relative results.

The high yield bond market declined in 2015, ending the year down almost 5%; this was notable as one of only four calendar year losses over the prior two-and-a-half decades in the asset class. Below investment-grade bonds performed well in the first half of the year, partly due to their lower sensitivity to interest rate changes amid uncertainty about the timing of the Fed’s rate hike. However, July saw the onset of falling oil prices after a limited recovery earlier in the year. Concerns about growth in China and the resulting prospect of weaker commodity demand from one of the world’s largest consumers deepened pressure on oil prices and weighed on the asset class.

According to J.P. Morgan, calendar year 2015 saw a total of $293 billion new issue volume, a decrease of 18% from 2014. For the first year since the global financial crisis, refinancing activity was less than 50% of all new issue volume, while strategic merger and acquisition (M&A) deals increased. Importantly, lower-rated volume decreased in 2015, signaling that this influx of activity was not overly speculative. Default volume for the year was dominated by energy and coal names — composing over 70% of the $37.7 billion in 2015.

With renewed pressure on oil prices over the second half of the year, our positioning and positive credit selection in the energy sector were top contributors to relative performance in 2015. An overweight allocation to and credit selection within media/telecom also contributed to relative returns. Several of top issuer allocations are held within these relatively defensive industries.

Similar to energy, the metals and minerals sector continued to materially underperform the broader market. Our security selection within this sector detracted. Commodity prices, particularly coal, are facing strong headwinds from excess global supply and weak demand growth. Coal prices declined so severely that our limited exposure was not

immune, particularly Murray Energy. That said, our meaningful underweight allocation to the industry offset much of the negative impact of credit selection.

From a quality perspective, limited exposure to higher quality bonds — those rated BB and above — weighed on performance as these bonds outperformed amid increased risk aversion.

We remain cautious in the near term as a number of factors continue to weigh on the high yield market. However, outside the metals and energy sectors, most high yield issuers continue to perform well. We are finding interesting opportunities given recent market dislocation, but diligent credit analysis and risk assessment is imperative. At year-end, valuations within sectors characteristically more stable, such as food and consumer products, began to reach more attractive levels. We believe a rally will occur in our asset class sometime in 2016, although not likely until the market appreciates and works through the numerous near-term headwinds.

Penn Mutual Asset Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the High Yield Bond Fund on December 31, 2005 would have grown to $18,155. 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, 2005 would have grown to $18,625.

6

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
High Yield Bond Fund		(3.37	)%		4.63	%		6.14	%
CSFB High Yield Bond Index		(4.93	)%		4.73	%		6.55	%

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 12/31/15

	Percent of Total Investments2
Bonds
BBB/BB Rated & Above		11.2	%
BB Rated		8.9	%
BB/B Rated		27.1	%
B Rated		17.5	%
B/CCC Rated		23.8	%
CCC and Below		2.0	%
Not rated		3.7	%
Loan Agreements		5.1	%
Equity securities		0.7	%
		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 5.02% for the twelve-month period ending December 31, 2015, compared to its benchmark the S&P 500 Index’s return of 1.38%.

After a volatile year, the S&P 500 Index finished 2015 in positive territory. Equities benefited from steady economic and employment growth; generally favorable corporate earnings outside of the energy sector, which has been hammered by plummeting oil prices since mid-2014; increased merger activity; and aggressive stimulus measures by central banks in Europe and Asia. Sector performance was widely mixed, with the consumer discretionary sector a top performer, while the energy sector finished down significantly.

We marginally reduced our equity weight on strength during the year, as we trimmed names within the consumer discretionary, health care, and information technology sectors. We also added to select holdings in industrials and financials on weakness. Given the ongoing recovery in equities and considering how far we are into an economic expansion, our outlook remains cautious. However, we anticipate headwinds from declines in the euro and yen, and oil prices will begin to fade, potentially fueling modest acceleration in earnings growth.

Our overall fixed income weight declined over the year, as we trimmed select high yield and bank loans and added to investment-grade corporate bonds. High yield bonds continued to decline amid weakness among energy companies as oil prices tumbled. Regardless of the recent volatility, high yield remains our largest fixed income asset class, and we tend to invest in the highest-quality high yield bonds. Our decrease in high yield during the period was largely a function of trying to reduce our overall duration in order to provide protection from rising rates.

The health care sector drove relative outperformance due to stock selection and a sizable overweight position. Within the sector, Cigna, Thermo Fisher Scientific, and Allergan helped results. The information technology sector also aided relative results, led by stock selection in the IT services industry. Conversely, the consumer discretionary sector detracted from relative returns due to stock selection and an underweight position, and Johnson Controls hindered results.

Although volatility returned to financial markets in 2015, we think that some headwinds that curbed U.S. company earnings, including a strong U.S. dollar and oil price

declines, will dissipate somewhat as we move into 2016, leading to accelerating earnings growth for many U.S. companies. At the same time, growth drivers that took center stage in 2015, such as mergers and acquisitions, strong auto sales, and residential construction, could prove to be less of a tailwind. The Federal Reserve’s pace of rate rises in 2016 could also prove challenging if it conflicts with investor expectations.

As always, we remain committed to finding the best risk-adjusted opportunities across the asset class spectrum to balance our objectives of preserving invested capital and generating equity-like returns over the long term with less risk than the broader equity market.

Penn Mutual Asset Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Flexibly Managed Fund on December 31, 2005 would have grown to $22,411. 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, 2005 would have grown to $20,239.

8

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Flexibly Managed Fund		5.02	%		11.22	%		8.41	%
S&P 500 Index		1.38	%		12.57	%		7.31	%

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 12/31/15

	Percent of Total Investments2
Consumer, Non-Cyclical		28.8	%
Financial		20.5	%
Consumer, Cyclical		11.6	%
Technology		10.5	%
Industrial		9.6	%
Communications		8.8	%
Energy		5.8	%
Utilities		4.2	%
Asset Backed Securities		0.1	%
Basic Materials		0.1	%
		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.

9

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Balanced Fund

The Penn Series Balanced Fund returned 0.68% for the twelve-month period ending December 31, 2015, compared to its benchmarks, the S&P 500 Index’s return of 1.38% and the Barclays Capital U.S. Aggregate Bond Index’s return of 0.55% 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 also performed in-line with 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 portfolio holdings of commercial mortgage backed securities (CMBS) of the underlying individual fixed income fund during the second half of the year.

Penn Mutual Asset Management, Inc.

Investment Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Balanced Fund on August 25, 2008 would have grown to $16,908. 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 $18,569. A $10,000 investment in the Barclay’s Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $13,732.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Balanced Fund		0.68	%		8.50	%		7.40	%
S&P 500 Index		1.38	%		12.57	%		8.79	%
Barclays Capital U.S. Aggregate Bond Index		0.55	%		3.25	%		4.41	%

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.

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

Asset Allocation Target as of 12/31/15

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 10.51% for the twelve-month period ending December 31, 2015, compared to the 5.67% return for its benchmark, the Russell 1000 Growth Index.

Overall, stock selection was the reason for relative outperformance. Consumer discretionary, information technology, and health care were the leading relative outperformers. Consumer staples and financials were the largest relative detractors.

Major U.S. stock indexes were narrowly mixed in 2015. In the first part of the year, equities benefited from steady economic and employment growth; generally favorable corporate earnings outside of the energy sector, which has been hammered by plummeting oil prices since mid-2014; increased merger activity; and aggressive stimulus measures by central banks in Europe and Asia. Large-cap U.S. indexes reached their highest levels of the year in May, while smaller-cap benchmarks peaked about one month later. In the summer, global equities fell sharply in response to a plunge in Chinese stocks, which stemmed from its decelerating economy and uncertainty regarding China’s policy responses, including an unexpected August currency devaluation. Large-cap U.S. indexes experienced their first “correction,” typically defined as a drop of at least 10% from their highs, in the last four years.

Consumer discretionary was by far the largest relative outperformer, mainly driven by stock selection.

Amazon.com continued to improve operating leverage in its core retail business throughout the year and reported impressive results with a sharp acceleration in revenue and margins in its Amazon Web Services (AWS) cloud-computing unit. Despite the stock’s runup, there is room for improvement as retail margins ramp up from below normalized levels and the company benefits from the expanding higher margin and faster growth AWS unit.

Information technology outperformed, due to stock selection. Multiple factors drove shares of Alphabet, the new Google holding company, higher this year, including strong earnings driven by the move to increase advertising coverage on mobile searches. The market was also encouraged by the new focus on expense discipline and the company’s decision to restructure itself so that its core search business will be separated from its various projects, providing more transparency to future earnings reports. Alphabet also instituted its first-ever share buyback program.

Consumer staples was the largest relative detractor, due to significant underweighting of the strongest-performing sector in the benchmark for the period. Positive stock selection partially offset this negative performance.

Financials underperformed on group weighting and, to a lesser extent, on stock selection. Although shares of Morgan Stanley advanced steadily through the first half of 2015 on better-than-expected earnings results, shares declined sharply during the market correction that occurred in the third quarter. We continue to think that the company’s long-term growth prospects are favorable due to the shift of its business mix toward higher margin and less volatile activities and its continued capital management.

We are optimistic about the longer-term prospects for large-cap growth stocks and expect the United States to generate moderate economic growth in 2016. We expect that the Federal Reserve is likely to raise short-term interest rates at a slower pace than the market currently expects, which should not hinder rising stock prices. However, the recent weakness in China’s industrial economy, falling energy and commodity prices, and geopolitical flare-ups could perpetuate the market’s recent volatility.

Penn Mutual Asset Management, Inc.

Investment Adviser

T. Rowe Price Associates, Inc.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Large Growth Stock Fund on December 31, 2005 would have grown to $23,312. 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, 2005 would have grown to $22,678.

11

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Large Growth Stock Fund		10.51	%		14.26	%		8.83	%
Russell 1000 Growth Index		5.67	%		13.53	%		8.53	%

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 12/31/15

	Percent of Total Investments2
Communications		28.1	%
Consumer, Non-Cyclical		25.1	%
Consumer, Cyclical		20.2	%
Financial		11.0	%
Technology		9.2	%
Industrial		5.8	%
Basic Materials		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.

12

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Cap Growth Fund

The Penn Series Large Cap Growth Fund returned –0.15% for the twelve-month period ending December 31, 2015, compared to the 5.67% return for its benchmark, the Russell 1000 Growth Index.

Sluggish global growth weighed on both developed and emerging market (“EM”) economies during the reporting period. EM economies have been particularly lackluster. While the U.S. Federal Reserve began its anticipated monetary policy tightening cycle at the end of the period, other large developed economies continued to embrace accommodative monetary policies, particularly the European Central Bank and the Bank of Japan. Focus remained on China after policy missteps by the Chinese government roiled global markets over the summer, beginning with the uncoordinated response to the stock market’s boom and bust and then the confusing decision to devalue the renminbi in August. China subsequently ramped up a wide range of monetary and fiscal measures to stimulate the economy and bolster sentiment.

During the second half of the reporting period, the U.S. faced an earnings recession caused primarily by the sharp decline in the prices of oil and other commodities. Earnings contractions were concentrated primarily in the energy, materials and industrial sectors. An additional headwind for earnings was the sharp rise in the U.S. dollar over the period. Exports were crimped by the dollar’s strength and falling demand in emerging markets. Consumer spending held up well during the period amid a modest increase in real wages and a tailwind from falling gasoline prices. Demand for autos reached near-record territory late in the period. In emerging markets, two key factors weighed on economies and asset prices: weaker Chinese growth, and the resulting decline in commodity prices, in addition to prospects for higher U.S. interest rates.

Stock selection in the consumer discretionary sector was a primary detractor from performance relative to the Index. Not owning internet retailer Amazon.com and overweight positions in shares of media firms 21st Century Fox and Time Warner detracted from relative returns.

In the consumer staples sector, weak stock selection hampered relative performance. The Fund’s overweight position in infant and children’s pediatric nutrition producer Mead Johnson Nutrition weighed on relative results. Stock selection in the financials sector further detracted from relative performance. An overweight

position in investment management firm Franklin Resources held back relative results.

An overweight position in the materials sector also detracted from relative results. However, there were no individual stocks within this sector that were among the Fund’s largest relative detractors during the period.

Elsewhere, overweight positions in industrial manufacturing and engineering company Colfax Corporation, maintenance, repair and operating supplies distributor WW Grainger, building systems and aerospace products and services provider United Technologies and information technology company EMC Corp, and not holding networking service provider Facebook, weighed on relative performance.

Stock selection and an overweight position in the information technology sector were positive factors for relative performance. Within this sector, overweight positions in internet search giant Alphabet (formerly Google), management consulting firm Accenture and consumer financial services company Visa, and not holding shares of wireless communications software company QUALCOMM, contributed to relative performance. The portfolio’s underweight position in computer and personal electronics maker Apple also benefited relative results as the stock lagged the benchmark during the reporting period.

An underweight position and stock selection in the health care sector also benefited relative results. Here, an overweight position in life sciences supply company Thermo Fisher Scientific and analytical instrument manufacturer Waters Corp bolstered relative results.

Stocks in other sectors that contributed to relative performance included an underweight position in railroad company Union Pacific and overweight positions in consumer credit reporting agency Equifax and automotive parts manufacturer AutoZone.

Penn Mutual Asset Management, Inc.

Investment Adviser

MFS Investments

Investment Sub-Adviser

13

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Large Cap Growth Fund on December 31, 2005 would have grown to $13,264. 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, 2005 would have grown to $22,678.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Large Cap Growth Fund		(0.15	)%		7.05	%		2.86	%
Russell 1000 Growth Index		5.67	%		13.53	%		8.53	%

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 12/31/15

	Percent of Total Investments2
Consumer, Non-Cyclical		29.6	%
Technology		19.3	%
Consumer, Cyclical		14.1	%
Communications		11.0	%
Basic Materials		9.8	%
Financial		8.0	%
Industrial		7.8	%
Energy		0.4	%
		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.

14

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Core Growth Fund

The Penn Series Large Core Growth Fund returned 1.68% for the twelve-month period ending December 31, 2015, compared to the 5.67% return for its benchmark, the Russell 1000 Growth Index for the same time period.

Concern over the depth of China’s economic slowdown and the efficacy of its policy responses was the primary impetus for the defensive market tone that was visible for extended periods of time during the year. Coupled with OPEC’s decision not to cut production, this global growth scare aggravated the supply/demand imbalance for oil leading to another leg down for commodity prices that began their tumble in the second half of 2014.

Over the last 12 months, security selection in the consumer staples sector proved additive to returns. Meanwhile, positioning in the information technology sector was the primary source of underperformance. Within the consumer staples sector, beer and wine manufacturer/distributor Constellation Brands rose sharply over the last 12 months and was a significant contributor to performance. The company’s strong performance is reflective of not only the strengthening U.S. consumer but also the revenue and cost synergies from the company’s acquisition of Grupo Modelo’s U.S. beer business. Constellation remains a true “self-help” story as the company continues to pay down debt and invest into new products and brand extensions. Additional margin expansion may occur as the state of the art brewery acquired in the deal fully comes on line in 2015.

Selection within the information technology sector detracted from relative performance. Specific weakness was visible in holdings Micron Technology, Western Digital, and Applied Materials, driven by a combination of weaker than expected PC demand and uncertainty around possible industry consolidation. Akamai Technologies stumbled after reporting earnings that were lower than expected. Akamai is a cloud-based service that speeds up delivery of Web pages and other online content. The company has the largest internet content delivery network (CDN), and estimates between 15% and 30% of all Web traffic passes through its network of nearly 200,000 servers around the world. While revenue during the most recent quarter increased 11%, its profit was lower than previous quarters as the company continues to build its network. The company also lowered guidance for its legacy software download segment for 2016.

Like a lingering storm system, many of the same issues that clouded the U.S. equity market in 2015 remain in place.

Global growth remains questionable as China works to re-ignite its economy. European economies are extremely fragile. Geopolitical risk is elevated. The impact of a prolonged commodity price downtown remains an issue. And while the question of “when” the Federal Reserve will act has been answered, investors are now asking themselves what a “gradualist” approach to policy normalization actually looks like. These issues will likely result in increased “waves” of market volatility. The best way to navigate this volatility, in our opinion, is to remain focused on the consistent execution of our investment process. Like any seasoned navigator, however, tactical adjustments will be made.

One such adjustment is an increase in the secular growth component of the Fund. In an economy in which secular growth remains scarce, investors should be drawn to those firms that are somewhat insulated from global economic currents. Industries ripe with secular growth include e-commerce, cloud computing, network security, specialized software and mobile/credit card payment processing. We feel these adjustments will afford the Fund the stability to navigate the inevitable equity market headwinds. While it will likely not be a smooth ride, we are optimistic that 2016 will be a successful voyage.

Penn Mutual Asset Management, Inc.

Investment Adviser

Wells Capital Management

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Large Core Growth Fund on August 25, 2008 would have grown to $16,348. 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 $20,339.

15

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Large Core Growth Fund		1.68	%		10.76	%		6.91	%
Russell 1000 Growth Index		5.67	%		13.53	%		10.14	%

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 12/31/15

	Percent of Total Investments3
Consumer, Non-Cyclical		28.8	%
Consumer, Cyclical		20.9	%
Communications		20.4	%
Technology		17.3	%
Financial		7.3	%
Industrial		3.5	%
Basic Materials		1.8	%
		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.

16

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Cap Value Fund

The Penn Series Large Cap Value Fund returned –4.35% for the twelve-month period ending December 31, 2015, compared to the –3.83% return for its benchmark, the Russell 1000 Value Index.

2015’s roughly flat equity market returns understate the intensity of volatility in the year’s second half. While long-standing fears of U.S. dollar strength and rising rates were realized, it was declining oil prices, which fell to 7-year lows and stressed markets. In a slow growth environment, investors piled into stocks perceived to have secular tailwinds.

The Fund unperformed on an absolute basis. On a relative basis, the Fund performed in line with its Benchmark primarily due to stock selection in the materials, consumer staples and health care sectors. An underweight in the energy sector, combined with an overweight in health care, also proved beneficial. The industrials, financials and consumer discretionary sectors detracted the most.

The best individual performers were Microsoft, Vulcan Materials and Northrop Grumman. Microsoft, a multinational technology company, performed well in 2015 primarily due to better-than-expected cloud revenue and continued, aggressive cost management. Vulcan Materials, a producer of construction aggregates, benefited from improving volumes and accelerating pricing gains in its core markets due to strengthening residential and non-residential construction in the U.S. Several strong earnings reports, a positive analyst day and a U.S.-centric business model also supported the stock. Earnings estimates were also revised upwards, clarifying the path to more normalized earnings after years of stagnation. Northrop Grumman, one of four major domestic defense companies, outperformed in the first three quarters of 2015 as investors flocked to the stability and returns of defense companies. Northrop competed for the next-generation bomber program from the Department of Defense. After winning this $40 billion program, visibility into higher future revenue and earnings growth became clearer, as did the path for continued returning of free cash flow to shareholders.

Not surprisingly, the two most significant detractors, Marathon Oil and National Oilwell, were in the energy sector. Shares of Marathon (an independent exploration and production company) and National Oilwell (an oil and gas service company) fell as oil prices declined over the year due to robust global production and elevated inventory levels. Investor concerns that Marathon and other oil-price-sensitive companies will face an increasingly

challenging environment over the next few years have increased. While nearly all of National Oilwell’s products and services are sensitive to oil prices, the company is particularly exposed to the worsening deepwater production outlook. Viacom also underperformed along with the majority of the media industry in 2015, primarily due to fears over cutting the cord on cable (versus streaming) and poor domestic advertising trends.

We often trim winning stocks and add to laggards as we seek to optimize risk/reward. We believe market pullbacks allow longer-term investors to find opportunities. However, we remain vigilant when funding new investments. Given poor late-year equity performance, we expect the current risk-off tone to continue for the first part of the coming year. We still think the long-term bull market remains intact, but as the cycle ages; the double-digit returns are likely past. We would be pleased with mid to high single-digit returns over the next few years given high valuations, tepid global growth, U.S. elections and geopolitical uncertainties. Importantly, major fundamental positives remain intact: stable-to-improving developed market growth, lower commodity prices, capped global inflation and continuing low interest rates.

Penn Mutual Asset Management, Inc.

Investment Adviser

Loomis, Sayles & Co.

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Large Cap Value Fund on December 31, 2005 would have grown to $16,002. 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, 2005 would have grown to $18,175.

17

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Large Cap Value Fund		(4.35	)%		8.95	%		4.81	%
Russell 1000 Value Index		(3.83	)%		11.27	%		6.16	%

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 12/31/15

	Percent of Total Investments2
Financials		27.7	%
Consumer, Non-Cyclical		22.1	%
Industrial		13.3	%
Communications		9.9	%
Energy		8.0	%
Consumer, Cyclical		7.7	%
Technology		6.5	%
Utilities		3.4	%
Basic Materials		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.

18

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Large Core Value Fund

The Penn Series Large Core Value Fund returned –0.81% for the twelve-month period ending December 31, 2015, compared to the –3.83% return for its benchmark, the Russell 1000 Value Index for the same time period.

The Fund’s outperformance versus the Index was primarily due to broad-based favorable stock selection, while sector allocation results modestly detracted. Stock selection was positive in seven of the 10 sectors in which the Fund was invested. Stock selection in consumer staples was the largest contributor to relative performance. Selection gains were also notable in the information technology, financials, and industrials sectors.

In consumer staples, overweight positions in Reynolds American, Kroger, and Altria Group all aided relative performance results. Within information technology, holdings in Alphabet Inc. and Intel boosted relative gains.

At the individual stock level, a position in industrial conglomerate General Electric (GE) was one of the Fund’s top contributors to relative performance. Shares of GE advanced in the fourth quarter as investors appeared to reward the company’s divestment of its financial services arm and its renewed focus on its industrial businesses.

Stock selection in the health care and consumer discretionary sectors and unfavorable sector allocation results, including the Fund’s overweight to the materials sector, represented a modest drag on relative performance. At the individual stock level, energy companies Devon Energy, Anadarko Petroleum, and Range Resources were the Fund’s largest relative detractors during the period. Among other top detractors were overweight positions in CBS Corp., Oracle, and Credit Suisse.

Another quarter of dramatic market action provided ample opportunity to uncover new ideas and make adjustments to the Fund. Two noteworthy positions that were initiated during the fourth quarter included Allergan and Synchrony Financial. We entered a position in pharmaceutical company Allergan, as we saw good value and believe the company will produce solid earnings growth driven by strong franchises in aesthetics and ophthalmology, markets in which the firm is #1 and #2 globally, respectively. Like many other financial services stocks, Synchrony Financial has gone through a period of underperformance that we believe presented an opportunity. Synchrony is the largest player in the private label credit card space, with a market share north of 40%.

We made some shifts within the energy sector during the fourth quarter. We exited a long-term position in oil refiner Phillips 66. Refining names outperformed meaningfully in 2015, as crude oil prices fell and product demand, especially for gasoline, strengthened. We added to some exploration and production (E&P) holdings during the quarter.

We also sold our position in Simon Property Group during the quarter, the largest real estate company in the world. The stock has appreciated meaningfully, so we took the opportunity to shift into another real estate investment trust (REIT), Federal Realty Investment Trust, where the risk/ reward tradeoff appeared to be more attractive.

In terms of sector weightings, the Fund was overweight health care and financials as of year-end, while it was underweight information technology and consumer discretionary.

Many equity investors focus on the next quarter or the next year. As a result, stock prices do a decent job of reflecting the near-term outlook and tend to quickly price in any change to that outlook. We have found it helpful to look beyond the 12-month forecast horizon. One way to do this is to mentally leap forward in time and imagine what will matter to markets from that point on.

We think the combination of the upcoming U.S. election, evolving monetary policy and commodity prices (particularly oil) will likely have changed the calculus for investors by the end of 2016. For long-term investors, we believe this presents opportunity.

Penn Mutual Asset 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, 2015

An investment of $10,000 in the Large Core Value 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 Value Index, during the same period. A $10,000 investment in the Russell 1000 Value Index on August 25, 2008 would have grown to $17,051.

Average Annual Total Returns¹ as of 12/31/14

	1 Year			5 Year			Since Inception2
Large Core Value Fund		(0.81	)%		9.67	%		5.59	%
Russell 1000 Value Index		(3.83	)%		11.27	%		7.53	%

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 12/31/15

	Percent of Total Investments3
Financials		32.2	%
Consumer, Non-Cyclical		21.9	%
Energy		12.9	%
Industrial		11.6	%
Technology		7.0	%
Utilities		6.2	%
Basic Materials		3.4	%
Communications		2.6	%
Consumer, Cyclical		2.2	%
		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 1.00% for the twelve-month period ending December 31, 2015, compared to the 1.38% return for its benchmark, the S&P 500 Index.

After a turbulent January, 2015 for equity markets, volatility subsided through the month of February as oil prices stabilized and the aggressive pace of global central bank actions witnessed the prior month moderated.

The positive tone of U.S. economic data in late first quarter of 2015 pushed yields on U.S. 10 year bonds higher after having fallen sharply the prior month. U.S. equity markets traded down slightly on the jobs report as expectations increased that the U.S. economy was gaining strength and that the Federal Reserve may have an opportunity to raise rates in the not too distant future.

Global markets entered the month of May, 2015 digesting an initial first quarter 2015 gross domestic product (GDP) report released on April 29, 2015 showing a much lower than expected 0.2% annualized rate of growth. Despite the weak U.S. growth data, the month opened with global interest rates continuing to rise sharply on the heels of a selloff that began in late April, 2015.

After the market selloff in August, expectations that the Federal Reserve would make good on the median forecast of Federal Reserve Board members and bank presidents in June that rates would increase in two increments for the remainder of the year beginning in September 2015 were brought into question.

Contributing to this lackluster outcome for 2015 was a challenging environment for U.S. companies’ ability to earn a profit, evidenced by declining year-over-year of earnings on the S&P 500 Index for both the second and third quarters and the potential for more of the same in the final quarter of the year. This falloff in earnings is most significantly attributable to the energy sector where a 60% decline in oil prices through the end of September corresponded to a nearly identical decline in equity sector earnings. Excluding the energy sector, S&P 500 Index aggregate earnings growth has remained positive, though still soft given the impact on multinationals of the stronger U.S. dollar and subdued global growth backdrop.

On an individual security level, the top positive contributors to the Fund’s performance were Amazon.com Inc, Microsoft Corporation, and General Electric Company. The top negative contributors to the Fund’s performance

were Kinder Morgan Inc, Exxon Mobil Corporation, and QUALCOMM Incorporated.

Penn Mutual Asset Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Index 500 Fund on December 31, 2005 would have grown to $19,916. 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, 2005 would have grown to $20,239.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Index 500 Fund		1.00	%		12.17	%		7.13	%
S&P 500 Index		1.38	%		12.57	%		7.31	%

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 12/31/15

	Percent of Total Investments2
Consumer, Non-Cyclical		24.5	%
Financials		17.7	%
Technology		13.1	%
Communications		13.0	%
Consumer, Cyclical		10.4	%
Industrial		9.4	%
Energy		6.5	%
Utilities		3.0	%
Basic Materials		2.4	%
		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.

22

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Cap Growth Fund

The Penn Series Mid Cap Growth Fund returned –5.78% for the twelve-month period ending December 31, 2015, compared to the –0.20% return for its benchmark, the Russell Midcap Growth Index.

We primarily emphasize a bottom-up approach and may look at a number of factors in its consideration of a company. These include new or innovative products or services, adaptive or creative management, strong financial and operational capabilities to sustain growth, market potential, profit potential, and stable and consistent revenue, earnings, and cash flow.

The Fund underperformed the benchmark for the year. The primary factors for the underperformance were stock selection issues in the consumer discretionary and consumer staples sectors. The consumer discretionary exposure made the greatest negative contribution to the Fund’s return for the year. The Fund was underweight this underperforming sector, but exposure to retail and related sectors was a liability in a year when e-commerce activity accelerated, taking market share and requiring many retailers to step up investment to try to maintain competitiveness and relevance to consumers. These costs and higher labor expense pressured the profitability of many companies, including Bed Bath and Beyond and DSW in the Fund. Other key factors significantly impacting retailers in 2015 were weak demand in emerging markets and the appreciation of the US dollar, which hurt many retailers based both on currency translation effects and the ultimate negative impact on travel to the U.S. and related demand for retail goods in flagship stores in markets such as New York City.

An overweight position in the poorly performing energy sector was a significant, but lesser factor contributing to the Fund’s relative underperformance. The Fund’s Energy names were weak across the board, as the persistent and significant decline in the price of oil that began in June 2013 brought considerable pressure to bear on the energy industry and the stocks of its companies. The Fund’s energy names have performed in line with the energy sector in the Index, but we have been consistently overweight the group, thus the sizable negative contribution from our energy exposure.

Technology was the final sector that contributed negatively to performance in 2015. The Fund’s cash position, which averaged approximately 1% across the year, was slightly negative to performance.

All other sectors contributed positively to relative performance, with the greatest positive impact coming from the financials and health care sectors. The Fund’s exposure in the industrials and materials sectors also generated positive relative performance for the period. The performance of equity option positions was positive to performance by 35 basis points.

The top three securities detracting from absolute performance for the period were Polaris Industries, Bed Bath and Beyond and Hain Celestial Group. The top three securities contributing to the Fund’s absolute performance were Electronic Arts, Alkermes and First Republic Bank.

Penn Mutual Asset Management, Inc.

Investment Adviser

Ivy Investment Management

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Mid Cap Growth Fund on December 31, 2005 would have grown to $17,678. 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, 2005 would have grown to $21,917.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Mid Cap Growth Fund		(5.78	)%		6.65	%		5.86	%
Russell MidCap Growth Index		(0.20	)%		11.54	%		8.16	%

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.

23

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Portfolio Composition as of 12/31/15

	Percent of Total Investments2
Consumer, Non-Cyclical		31.0	%
Consumer, Cyclical		23.3	%
Financial		13.8	%
Technology		13.0	%
Industrial		8.6	%
Communications		5.0	%
Energy		3.6	%
Basic Materials		1.7	%
		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.

24

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Mid Cap Value Fund

The Penn Series Mid Cap Value Fund returned –7.98% for the twelve-month period ending December 31, 2015, compared to the –4.78% return for its benchmark, the Russell Midcap Value Index.

Our overweight relative to the benchmark in the consumer discretionary sector was predicated on continued job and income growth, higher home prices and lower debt burdens, along with reduced gas and heating bills, all of which fostered an attractive backdrop for consumer confidence and spending. Indeed, the University of Michigan’s Consumer Sentiment average reading of 93 this year was the highest it has been in over ten years.

While spending is healthy, the consumer has been selective, choosing to spend more on housing, auto, services, and higher ticket durables at the expense of general merchandise and apparel. This benefited holdings in Darden and Select Comfort, but negatively impacted positions in Kohl’s and Deckers Outdoor. Hertz also came under renewed pressure during the year as the company’s restructuring program, under the leadership of a new CEO, has yet to improve earnings and cash flow. Staples was also hit hard during the fourth quarter as the FTC moved to block the company’s merger with Office Depot. Looking forward, we believe the sharp decline in many of our consumer discretionary companies has created some compelling opportunities and valuations in our diverse holdings as they maintain strong brands, solid balance sheets, and generate strong free cash flow.

Oil and natural gas prices continued to set new lows as oil declined 30% during the year and is trading near its ten-year low and natural gas is trading near its 15-year low. While we maintain an underweight position relative to the Index in both the utilities and energy sectors, our contrarian nature led us to add two new investments which had already been battered by the market. Oneok operates natural gas gathering assets with revenues that are largely contracted or volume dependent. Investors became more negative on Oneok’s growth prospects despite the company’s strong results during the last two quarters and a substantial de-risking of their portfolio. At year-end, the stock yielded just under 10%. NRG Energy, which is the largest merchant electricity generator, came under pressure when forward prices retreated as natural gas prices collapsed due to elevated production and unseasonably warm winter weather. Finally, a long term holding, Devon Energy, which has restructured its portfolio over the last several years, is now focused on its low cost

North American shale oil basins and maintains a strong balance sheet. While the market reacted poorly to a recently announced acquisition, we believe the company is well positioned for a rebound in oil prices.

In 2015, the market ignored complex, value oriented stocks and focused on companies that were meaningfully growing their top line, creating a large disparity between the valuation of growth and value equities. While the fundamentals of some of our investments deteriorated more than we expected, the market severely penalized many of these companies to the point where valuations, in our opinion, have dislocated from underlying corporate value. The management teams of many of our portfolio holdings are actively trying to increase shareholder value through asset restructurings and/or major share buybacks. We believe that these actions, coupled with improving earnings and free cash flow as the U.S. economy continues to expand, should afford a significant bounce back in many of our holdings during 2016.

We believe worldwide growth will remain subdued. Given this backdrop, the relatively high valuations in the market and sluggish earnings growth may suggest that general market gains will be moderate in 2016.

Penn Mutual Asset Management, Inc.

Investment Adviser

Neuberger Berman Management

Investment Sub-Adviser

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Mid Cap Value Fund on December 31, 2005 would have grown to $17,335. 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, 2005 would have grown to $20,818.

25

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Mid Cap Value Fund		(7.98	)%		8.99	%		5.65	%
Russell MidCap Value Index		(4.78	)%		11.25	%		7.61	%

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 12/31/15

	Percent of Total Investments2
Financials		20.0	%
Industrial		19.5	%
Technology		18.8	%
Consumer, Non-Cyclical		13.7	%
Consumer, Cyclical		9.9	%
Utilities		8.5	%
Energy		5.6	%
Basic Materials		2.2	%
Communications		1.8	%
		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 –1.51% for the twelve-month period ending December 31, 2015, compared to the –4.78% return for its benchmark, the Russell Midcap Value Index.

The broad U.S. stock market recorded a small gain for the year. During the summer, the market was roiled by concerns about slowing growth in China and other emerging markets. Oil and commodity prices dropped on worries about weak global growth, falling demand, and oversupply. Meanwhile, U.S. economic growth continued slowly. In December, the Federal Reserve raised short-term interest rates, a move that had been anticipated by the market for most of 2015.

In this environment, the Fund received positive results in absolute terms in four of the 10 sectors in which it was invested. Relative to the benchmark, positions in the consumer staples, utilities, and energy sectors added to returns. The portfolio was hampered by positions in the information technology, financials, and telecommunication services sectors.

An overweight position and stock selection in the consumer staples sector drove the Fund’s outperformance. In the food products industry, a notable contributor was snack company Mondelez International. The company, which topped earnings expectations and raised margins, indicated a willingness to be acquired and had an activist investor promoting the stock. Among food and staples retailers, Sysco, a large distributor of food and related products, benefited from improving restaurant sales and the addition of an activist investor to its board.

The Fund benefited from selective stock picking across the utilities sector. A lack of exposure to independent power and renewable electric producers was also advantageous, as this industry recorded a double-digit decline in the benchmark.

Security selection in the energy sector bolstered results, as the Fund did not own some of the sector’s steepest decliners. The sector was also the source of leading contributor Cameron International, a global provider of pressure control, processing, flow control, and compression systems. Its stock appreciated on news that oilfield-services provider Schlumberger had agreed to acquire it at a healthy premium.

On the other hand, an overweight position limited the Fund’s gains. Energy was the worst-performing sector in

the benchmark. The sector also provided a number of key detractors. Devon Energy lost ground on news it would acquire Felix Energy for $2 billion, which may have appeared dilutive to stockholders. An overweight in natural gas producer EQT hampered results as warm weather caused weak natural gas consumption and drove commodity prices to decade lows. Perception of the company’s midstream energy business was also likely harmed by the turmoil in the master limited partnership markets. Portfolio-only holding Anadarko Petroleum retreated after investors reacted negatively to the company’s all-stock proposed acquisition of Apache. The team believes that the market overreacted and that the offer didn’t affect the company’s fair value.

In the industrials sector, the Fund benefited from an overweight in Republic Services. The waste management company recorded strong gains as it continued to execute well and has minimal exposure to emerging markets and foreign currency issues. Within the aerospace and defense industry, portfolio-overweight Exelis was acquired by competitor Harris Corp. in a cash and stock deal at approximately a 35% premium over the company’s share price at the time. However, the industrials sector was also the source of a prominent detractor. Portfolio-only holding Heartland Express underperformed along with other transportation stocks amid weaker volumes and increased labor costs.

The Fund was hurt by stock selection in the information technology sector. Detractors included Micron Technology, which suffered amid weakness in the PC-build segment. The semiconductor company’s prices dropped faster than its costs, hurting the share price.

Penn Mutual Asset Management, Inc.

Investment Adviser

American Century Investment Management

Investment Sub-Adviser

27

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Mid Core Value Fund on December 31, 2005 would have grown to $17,872. 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, 2005 would have grown to $20,818.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Mid Core Value Fund		(1.51	)%		10.32	%		5.98	%
Russell MidCap Value Index		(4.78	)%		11.25	%		7.61	%

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 12/31/15

	Percent of Total Investments2
Financials		26.7	%
Consumer, Non-Cyclical		17.4	%
Industrials		15.6	%
Energy		12.0	%
Utilities		10.2	%
Technology		7.2	%
Consumer, Cyclical		7.0	%
Communications		1.6	%
Basic Materials		1.3	%
Index Fund		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.

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Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

SMID Cap Growth Fund

The Penn Series SMID Cap Growth Fund returned –1.52% for the twelve-month period ending December 31, 2015, compared to the –0.19% return for its benchmark, the Russell 2500 Growth Index for the same time period.

Security selection in the traditional growth sector of information technology proved to be the largest contributor to annual returns. Specific strength was visible in “software-as-a-service” or “SaaS” providers. Tyler Technologies develops applications that aid in the administration of local governments and court systems. The company has enjoyed a strong run of performance as an improving economy has led to increased local tax revenue and greater demand for its products. Additionally, within the industry, FleetMatics provides fleet management software that helps truck fleet operators gain insight into vehicle location, fuel usage, speed and mileage. The company saw its shares rise sharply for much of 2015 as earnings were largely better than expected. Also within the technology sector, Palo Alto Networks was a key contributor. The company, a leader in IT security, offers a best-in-breed enterprise solution that has been capturing market share for several years. Spending on security and data protection has exploded in recent years and Palo Alto has been a key beneficiary.

On the negative side, positioning in the health care industry weighed on returns in 2015. Weakness was most apparent in the highly innovative and highly volatile biotechnology industry. Clovis Oncology was dealt tough news to its promising lung cancer treatment. After receiving “fast track” status from the FDA, Clovis produced clinical data that showed lower response rates in a specific patient cohort. Shares declined precipitously, as it gave a competing drug from AstraZeneca a big lead in a large total available market. With uncertainty on the duration and efficacy of future trials, we concluded the fundamentals had changed enough to warrant selling the position. Envision Healthcare was also a notable detractor. Envision is a leading provider of services to the U.S. health care system, with an emphasis on solutions for clinics, hospitals, and emergency rooms. The company had been well positioned as the Affordable Care Act (ACA) had increased insurance coverage and overall consumer demand for health care. However, these trends reversed course in 2015 as health care utilization volumes took a surprising fall. Early adopters of the ACA appear to be slowing in usage, while new user growth has been disappointing. Along with pricing pressures on new

customer contracts, these factors drove a sharp correction in the stock.

Like a lingering storm system, many of the same issues that clouded the U.S. equity market in 2015 remain in place. Global growth remains questionable as China works to re-ignite its economy. European economies are extremely fragile. Geopolitical risk is elevated. The impact of a prolonged commodity price downtown remains an issue. And while the question of “when” the Federal Reserve will act has been answered, investors are now asking themselves what a “gradualist” approach to policy normalization actually looks like. These issues will likely result in increased “waves” of market volatility. The best way to navigate this volatility, in our opinion, is to remain focused on the consistent execution of our investment process. Like any seasoned navigator, however, tactical adjustments will be made.

One such adjustment is an increase in the secular growth component of the Fund. In an economy in which secular growth remains scarce, investors should be drawn to those firms that are somewhat insulated from global economic currents. it will likely not be a smooth ride, we are optimistic that 2016 will be a successful voyage.

Penn Mutual Asset Management, Inc.

Investment Adviser

Wells Capital Management

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the SMID Cap Growth Fund on August 25, 2008 would have grown to $19,458. 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 $19,639.

29

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
SMID Cap Growth Fund		(1.52	)%		9.24	%		9.47	%
Russell 2500 Growth Index		(0.19	)%		11.43	%		9.62	%

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 12/31/15

	Percent of Total Investments3
Consumer, Non-Cyclical		36.5	%
Consumer, Cyclical		19.2	%
Technology		16.9	%
Industrial		14.7	%
Financials		5.8	%
Communications		4.5	%
Basic Materials		1.4	%
Energy		1.0	%
		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 –5.69% for the twelve-month period ending December 31, 2015, compared to the –5.49% return for its benchmark, the Russell 2500 Value Index for the same time period.

During the year, smaller-cap markets experienced a sharp divergence among sector performance, stemming from investor concerns surrounding declining energy prices, market and economic volatility in China, and global central bank policy decisions. Energy stocks were notable underperformers, as were sectors such as materials and industrials, which are more sensitive to global economic growth. Defensive and domestically oriented sectors such as health care, financials and utilities fared better by comparison. Investors continued to favor assets with lower perceived risk, and large-cap stocks outperformed smaller-cap stocks for the full year.

For the year, the Fund fell in absolute terms but outperformed its benchmark. Overall security selection contributed to performance led by the Fund’s financials and technology holdings. Stock selection in the consumer discretionary and industrials sectors detracted from relative performance. Overall sector allocation had a negative effect on performance for the period as an underweight position in financials counteracted the positive effect of an underweight in energy.

The leading contributor was StanCorp Financial, a U.S.-based provider of employee insurance and annuity products. StanCorp was acquired at a substantial premium by Japanese company Meiji Yasuda, which was attracted to its strong U.S. franchise. Helen of Troy, a manufacturer of consumer products such as hair dryers and kitchen housewares and Fairchild Semiconductor were also among the individual contributors.

The declining oil price and sluggishness in the energy sector drove down shares of exploration & production companies. SM Energy underperformed along with other U.S. oil and gas producers, due to expectations of continued weakness in oil and gas prices. Home décor retailer, Pier 1 Imports and Bloomin’ Brands, an operator of restaurant chains such as Outback Steakhouse and Carrabba’s Italian Grill, also underperformed.

The current investment climate is marked by high levels of uncertainty. The market remains focused on global economic growth against the backdrop, the depressed price of oil and volatile Chinese economic indicators. Stocks judged to have sizable exposure to the broader economy, such as

technology, industrials and consumer stocks, have lagged in spite of (in a number of cases) good company-level performance in this challenging climate. We feel that a significant number of stocks in our universe have a powerful combination of attractive value, strong free cash flow and company level catalysts. We agree that the current economic environment will remain challenging but find these opportunities compelling. We believe that the strength of these companies’ cash flows and business models should help them navigate these obstacles, and that their valuations offer considerable upside once macro concerns stabilize.

Penn Mutual Asset Management, Inc.

Investment Adviser

AllianceBernstein

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the SMID Cap Value Fund on August 25, 2008 would have grown to $19,825. 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 $17,519.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
SMID Cap Value Fund		(5.69	)%		9.44	%		9.75	%
Russell 2500 Value Index		(5.49	)%		9.23	%		7.93	%

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 12/31/15

	Percent of Total Investments3
Financials		30.1	%
Industrial		16.5	%
Consumer, Cyclical		14.7	%
Consumer, Non-Cyclical		9.8	%
Technology		8.7	%
Energy		6.8	%
Communications		6.3	%
Utilities		4.3	%
Basic Materials		2.8	%
		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 0.42% for the twelve-month period ending December 31, 2015, compared to the –1.38% return for its benchmark, the Russell 2000 Growth Index.

We have taken a high-quality approach to investing in small-caps throughout 2015 and that approach paid off. Our companies also typically generate a high return on invested capital and have demonstrated a proven ability to expand profit margins. We also put a great emphasis on identifying companies with sustainable competitive advantages that should help them gain market share and grow in a variety of market environments.

Our stock selection in the consumer discretionary and technology sectors were large contributors to our relative performance. Many of our technology companies have predictable or recurring revenue streams from diverse end markets outside the technology sector, and these companies were among our top-performing technology stocks during the year. Euronet Worldwide was one of our top contributors to performance, and serves as an example of the diverse end markets some of our technology companies serve. 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.

Blackbaud was another top contributor within the technology sector. The stock rose during the year as the market received more confirmation about the growth potential of the company. Blackbaud provides technology solutions designed to improve fundraising for the nonprofit industry. Fundraising is clearly a critical function for that industry, and Blackbaud’s solutions have proved an effective proposition for improving those fundraising efforts. However, many nonprofits have been slow to integrate technology into the fundraising process, which creates a potentially large addressable market for Blackbaud going forward.

Dyax Corp. was one of our largest contributors outside the technology sector. The stock was up after an announcement it would be acquired by Shire Plc. We were not surprised to see Dyax pursued as an acquisition candidate. In our view, the company has a potential best-in-class drug for hereditary angioedema (HAE) therapy, which could become the new standard of treatment based

on strong efficacy from early-stage trials. Shire is the current leader in HAE treatments, and a logical partner to acquire Dyax.

While we were pleased with the performance of many companies in the Fund, we also held stocks that detracted from performance. Our stock selection in the industrial sector detracted from relative performance. Kennametal was our largest detractor within the industrial sector. The company makes cutting tools used in end markets serving the energy sector. While those end markets have been weak, we believe the new management team at Kennametal will take some appropriate steps to restructure the company.

Outside the industrial sector, Wolverine World Wide was a large detractor, falling most recently due to softer sales of its Sperry and Merrell shoe brands. While soft sales of some of its shoe brands have disappointed lately, we continue to like the stock. Wolverine has a long history of improving the management of the brands it acquires as well as increasing sales through its global distribution network.

Belden CDT was another detractor. The company’s stock fell in the third quarter following management’s announcement of weaker-than-expected earnings due in part to a decline in demand from its industrial customers, and also due to weaker demand for high-end video equipment the company sells to the broadcasting industry. We view the softness as temporary.

Penn Mutual Asset Management, Inc.

Investment Adviser

Janus Capital Management

Investment Sub-Adviser

33

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Small Cap Growth Fund on December 31, 2005 would have grown to $14,046. 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, 2005 would have grown to $21,494.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Small Cap Growth Fund		0.42	%		6.95	%		3.46	%
Russell 2000 Growth Index		(1.38	)%		10.67	%		7.95	%

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 12/31/15

	Percent of Total Investments2
Consumer, Non-Cyclical		35.3	%
Technology		21.5	%
Industrial		15.8	%
Consumer, Cyclical		10.5	%
Financial		8.6	%
Communications		4.5	%
Basic Materials		2.2	%
Energy		1.2	%
Diversified		0.4	%
		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.

34

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Value Fund

The Penn Series Small Cap Value Fund returned –5.46% for the twelve-month period ending December 31, 2015, compared to the –7.47% return for its benchmark, the Russell 2000 Value Index.

In the Fund for the year, investments in the financials and energy sectors contributed to results, whereas the information technology and health care sectors detracted from performance.

For the year, CubeSmart, a self-storage real estate investment trust (REIT), was a top contributor to performance. The company consistently beat earnings expectations throughout the year, helped by high occupancies and rents in the self-storage sector. We continue to be positive on the management team and its ability to make accretive acquisitions, supported by a healthy balance sheet. For the year, Infinity Pharmaceuticals, a biotechnology company, was a top detractor from performance. Its shares declined after the company announced a delay in a clinical trial for a blood cancer treatment. The stock was also hurt by reports that the new drug could face competitive pressure when it comes to market.

During the year, we initiated a position in TreeHouse Foods, a food manufacturer. A weaker market environment for single serve coffee cups, for which TreeHouse is a manufacturer, has negatively impacted performance. We believe the market environment could stabilize, however, as the industry matures and competitors become more rational. In our opinion, the company has a proven platform which is poised for additional growth. We also started a position in data center provider CyrusOne. We believe the company is well positioned to serve the data storage needs of enterprise customers and, as a result, we expect the company to benefit from continued demand growth.

During the year, we exited our position in Strategic Hotels & Resorts, an owner of luxury hotels across North America and Europe. We believed the company would be a beneficiary of high investor demand for luxury hotels and very limited new supply in the space. Additionally, we were optimistic on the company’s opportunity to potentially benefit from improving trends in group travel. We exited our position in ALLETE, a Midwestern electric utility company. We originally initiated our position in ALLETE several years ago when we believed the company had significant growth potential and an attractive valuation.

As we enter 2016, we see an abundance of opportunities across the U.S. equity markets. While our aggregate return expectations are lower than in recent years given slower economic growth and a dearth of outright cheap valuations, we believe equities still look more attractive than most other asset classes. Consumption, which accounts for approximately 70% of U.S. gross domestic product (“GDP”), could continue to benefit from strength in the labor and housing markets and low energy prices. Additionally, we do not expect to see much negative impact from the Fed’s pursuit of monetary policy normalization, given the likely gradual trajectory of interest rate increases and relatively healthy corporate and consumer balance sheets. While we are cognizant of potential headwinds, such as the risks posed from rising geopolitical tensions, we remain constructive on the direction of the U.S. equity markets. Ultimately, we believe focusing on company fundamentals, while being aware of the potential impact of various macroeconomic factors, is a process that generates compelling, long-term returns.

Regardless of the market direction, our fundamental, bottom-up stock selection continues to drive our process, rather than headlines or sentiment. We continue to focus on undervalued companies that we believe are in control of their own future, such as innovators with differentiated products, companies with low-cost structures, or ones that have been investing in their own businesses and are poised to gain market share.

Penn Mutual Asset Management, Inc.

Investment Adviser

Goldman Sachs Asset Management

Investment Sub-Adviser

35

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Small Cap Value Fund on December 31, 2005 would have grown to $21,489. 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, 2005 would have grown to $17,203.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Small Cap Value Fund		(5.46	)%		10.52	%		7.95	%
Russell 2000 Value Index		(7.47	)%		7.67	%		5.57	%

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 12/31/15

	Percent of Total Investments2
Financials		41.4	%
Industrials		13.8	%
Consumer, Cyclical		10.7	%
Consumer, Non-Cyclical		9.9	%
Technology		8.0	%
Utilities		6.1	%
Energy		4.8	%
Basic Materials		3.0	%
Communications		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.

36

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Small Cap Index Fund

The Penn Series Small Cap Index Fund returned –5.12% for the twelve-month period ending December 31, 2015, compared to the –4.41% return for its benchmark, the Russell 2000 Index for the same time period.

After a turbulent January, 2015 for equity markets, volatility subsided through the month of February as oil prices stabilized and the aggressive pace of global central bank actions witnessed the prior month moderated.

The positive tone of U.S. economic data in late first quarter of 2015 pushed yields on U.S. 10 year bonds higher after having fallen sharply the prior month. U.S. equity markets traded down slightly on the jobs report as expectations increased that the U.S. economy was gaining strength and that the Federal Reserve may have an opportunity to raise rates in the not too distant future.

Global markets entered the month of May, 2015 digesting an initial first quarter 2015 gross domestic product (GDP) report released on April 29, 2015 showing a much lower than expected 0.2% annualized rate of growth. Despite the weak U.S. growth data, the month opened with global interest rates continuing to rise sharply on the heels of a selloff that began in late April, 2015.

After the market selloff in August, expectations that the Federal Reserve would make good on the median forecast of Federal Reserve Board members and bank presidents in June that rates would increase in two increments for the remainder of the year beginning in September 2015 were brought into question.

Contributing to this lackluster outcome for 2015 was a challenging environment for U.S. companies’ ability to earn a profit, evidenced by declining year over year of earnings on the S&P 500 Index for both the second and third quarters and the potential for more of the same in the final quarter of the year. This falloff in earnings is most significantly attributable to the energy sector where a 60% decline in oil prices through the end of September corresponded to a nearly identical decline in equity sector earnings. Excluding the energy sector, S&P 500 Index aggregate earnings growth has remained positive, though still soft given the impact on multinationals of the stronger U.S. dollar and subdued global growth backdrop.

On an individual security level, the top positive contributors to the Fund’s performance were Dyax Corp, Neurocrine Biosciences Inc. and Synageva BioPharma Corp. The top negative contributors to the Fund’s performance

were Dynegy Inc., Axiall Corporation, and United Natural Foods, Inc.

Penn Mutual Asset Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Small Cap Index Fund on August 25, 2008 would have grown to $16,796. 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 $17,069.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Small Cap Index Fund		(5.12	)%		8.54	%		7.30	%
Russell 2000 Index		(4.41	)%		9.19	%		7.55	%

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.

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 12/31/15

	Percent of Total Investments3
Financials		25.9	%
Consumer, Non-Cyclical		23.2	%
Consumer, Cyclical		12.6	%
Industrials		11.9	%
Technology		11.3	%
Communications		6.2	%
Utilities		3.6	%
Basic Materials		2.7	%
Energy		2.5	%
Diversified		0.1	%
		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 –1.39% for the twelve-month period ending December 31, 2015, compared to the –0.39% return for its benchmark, the MSCI EAFE Index for the same time period.

2015 began with a flurry of divergent Central Bank policy moves in response to an uneven global growth outlook, rapidly declining global inflation and a major anticipated expansion of quantitative easing by the European Central Bank (ECB). The Swiss National Bank delivered an early surprise for global markets on January 15th by removing the peg between the Swiss Franc and the Euro in place since 2011. This unexpected tightening action sent the Swiss Franc up better than 20% against the Euro and the Swiss equity market down by 15% immediately following the move.

Markets in June were unsettled by a steady stream of worrying headlines from Europe as increasingly acrimonious negotiations between Greece and the Troika (European Commission, European Central Bank and International Monetary Fund) to extend an existing bailout agreement came to an impasse. Setting up what many saw as high stakes, though ultimately resolvable set of moves, the Greek government on June 5th elected to miss a scheduled payment to the IMF, choosing to instead bundle the payment with two others for a total of €1.5 billion payable on June 30th. Near the end of the month a framework to release bailout funds to Greece to make that IMF payment still seemed possible with a hoped for last minute agreement. Those expectations were quickly dashed, however, by a surprise announcement by the Greek government on Friday evening June 26th to hold a referendum on a final set of austerity proposals by Greece’s creditors to unlock a final tranche of bailout funds. Unsurprisingly, equity markets on June 29th reacted negatively to the uncertainty created of the referendum, though contagion in debt markets was relatively contained with very modest widening in sovereign debt spreads in Spain and Italy.

Global markets entered the third quarter of 2015 nervously with clouds of uncertainty surrounding the possibility of a Greek exit from the Eurozone and a sudden free fall in China’s stock market. By the end of the quarter, the Greek drama had been largely resolved with Greece agreeing to a new, more austere bailout agreement with creditors in July, while continued volatility in China’s equity markets and growing concerns surrounding emerging market

growth prospects more generally led to a broad selloff of global equities in August and September. By the end of the quarter, investors in global equity markets experienced the worst three month performance of the last four years as measured by the MSCI World Index and many country level markets posting double digit gains through the first half of 2015 now were in the red for the year.

After a sharp selloff in the third quarter of 2015 on global growth fears emanating from emerging markets led by China that took most major bourses negative on the year, global equities rebounded smartly in October, though with little follow through in November and December to close out the fourth quarter.

On an individual security level, the top positive contributors to the Fund’s performance were Novo Nordisk A/S Class B, Anheuser-Busch InBev SA, and Nestle S.A. The top negative contributors to the Fund’s performance were Banco Santader S.A., Glencore plc, and Royal Dutch Shell plc Class A.

Penn Mutual Asset Management, Inc.

Investment Adviser

State Street Global Advisors

Investment Sub-Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Developed International Index Fund on August 25, 2008 would have grown to $11,429. 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 $12,221.

39

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Developed International Index Fund		(1.39	)%		2.97	%		1.83	%
MSCI EAFE Index		(0.39	)%		4.07	%		2.76	%

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 12/31/15

	Percent of Total Investments3
Japan		23.3	%
United Kingdom		17.6	%
Switzerland		9.8	%
France		9.3	%
Germany		9.1	%
Australia		6.8	%
Netherlands		4.5	%
Spain		3.1	%
Hong Kong		3.0	%
Sweden		2.8	%
Italy		2.2	%
Denmark		1.9	%
Belgium		1.5	%
Singapore		1.2	%
Finland		0.9	%
Ireland		0.9	%
Israel		0.7	%
Norway		0.5	%
Austria		0.2	%
Luxembourg		0.2	%
New Zealand		0.2	%
China		0.1	%
Portugal		0.1	%
South Africa		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 3.59% for the twelve-month period ending December 31, 2015, compared to the –5.25% return for its benchmark, the MSCI ACWI ex-U.S. Index.

We believe Novo-Nordisk is well-positioned to achieve strong growth through innovation and new launches. Novo Nordisk has both dominant market share as well as industry leading products. The group is the leading drug company focused on diabetes care. Novo Nordisk is highly focused on its few core therapeutic areas and rewards shareholders with industry leading growth rates and cash returns.

Paddy Power, an Irish gaming company, has been a long-held and successful position in our strategies. It is predominantly a technology company as much of gambling has moved on-line. The company has a powerful brand and a fun, innovative and edgy image. Its business footprint currently spans only jurisdictions where it can operate legally, which is a rarity in the global online gaming marketplace. Most competitors in the online space have been happy to cross into geographies where gambling is not legal, tempted by the short-term buck to be made. Paddy Power has consistently kept its gaming nose clean and mainly operates in Ireland, the United Kingdom, France, Italy and Australia through direct or business-to-business operating ventures.

Detracting from performance during the period was Enbridge, the largest liquid pipeline in Canada. It is the backbone system to move oil from the Alberta region to Eastern Canada and the United States. We think that the recent underperformance of the stock reflects the sharp correction in oil prices. In a scenario of long-term low oil prices, there is risk that oil producers in Canada will need to start cutting production targets. And, this will have a negative impact on Enbridge’s long-term growth trajectory.

Baidu disappointed with continued weakness in margins as the company is spending heavily on marketing to drive adoption of its Online-to-Offline (O2O) platforms. After a meeting with the management of Baidu, we decided to trim Baidu’s earnings estimates further. We had already trimmed our estimates by close to 25%. The weaker Chinese currency (which was not our base case) also impacted our assumptions.

European equities entered positive territory in the beginning of 2015, bolstered by central bank bond purchases. By mid-year, the Greek debt crisis impacted European markets, and the effects of the Chinese slowdown and a scandal at German auto manufacturer Volkswagen weighed on investor sentiment. In the fourth quarter, the European Central Bank announced additional stimulus and cut its deposit rate by 10 basis points to –0.3%, which was on the lower end of expectations, and disappointed markets.

Emerging markets entered 2015 with positive momentum and after reaching highs in late-April, driven by soaring Chinese equity markets, emerging markets experienced steep declines as concerns over China’s weak macroeconomic data, Beijing’s unexpected move to devalue its currency, and substantial Chinese equity market volatility led to a global market sell-off in August. Emerging markets suffered far worse than their developed market counterparts. Currencies of many developing countries tumbled as well. While emerging market equities ended in slightly positive territory for the fourth quarter, the asset class faced headwinds due to slowing growth, earnings pressure, U.S. dollar strength and a collapse in commodity prices.

Overall, we expect slower global economic growth and heightened equity market volatility to continue into 2016. In this type of environment, stock selection is critical and we believe that taking a focused and concentrated approach to portfolio construction will enable us to outperform over a full market cycle.

Penn Mutual Asset Management, Inc.

Investment Adviser

Vontobel Asset Management

Investment Sub-Adviser

41

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the International Equity Fund on December 31, 2005 would have grown to $17,154. For the purpose of comparison, the graph also shows the change in the Fund’s benchmark, the MSCI ACWI ex-U.S. Index, during the same period. A $10,000 investment in the MSCI ACWI ex-U.S. Index on December 31, 2005 would have grown to $13,492.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
International Equity Fund		3.59	%		6.66	%		5.54	%
MSCI ACWI ex-U.S. Index		(5.25	)%		1.51	%		3.38	%

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 12/31/15

	Percent of Total Investments2
United Kingdom		23.3	%
Switzerland		13.5	%
United States		12.3	%
India		11.1	%
France		7.2	%
Australia		5.0	%
Germany		4.7	%
Netherlands		4.2	%
Denmark		4.0	%
Ireland		3.2	%
Canada		3.1	%
Japan		2.4	%
Hong Kong		2.2	%
Spain		1.7	%
South Africa		1.6	%
South Korea		0.5	%
		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 –10.89% for the twelve-month period ending December 31, 2015, compared to the –14.60% return for its benchmark, the MSCI Emerging Markets Index for the same time period.

Over the course of the year, markets grew increasingly concerned about China’s slowing economy and waning liquidity with the Federal Reserve interest rate hike looming, both of which put downward pressure on global growth. While commodity prices declined, providing a windfall to the consumer, corporate profits hit multi-year lows. Markets that suffered the most in 2015 were commodity exporters such as Colombia, Peru, Brazil and South Africa. Political issues in Greece, Brazil, Turkey and Poland also weighed heavily on markets.

Positive contributors to the Fund’s performance during the period included our stock selection in India, South Africa, China and Taiwan. Both an overweight allocation and stock selection in Eastern Europe added value, as did an underweight allocation and stock selection in Brazil. Additionally, a hedge on the Fund’s euro exposure, managed using foreign exchange futures, was beneficial to performance.

Key detractors from performance included the Fund’s position in Korea, where stock selection and an underweight allocation were unfavorable. Stock selection and a neutral allocation in both Colombia and Peru also hampered returns.

Several factors are likely to contribute to continued market volatility for some time in 2016: comprehension of China’s true economic growth trajectory, reaction to potential additional devaluation of China’s currency, and further adjustment to the consequences of the U.S. Federal Reserve’s rate increase path. But we think emerging market equities are heading toward an eventual important turning point, even if precise timing is difficult to determine.

Presently, emerging market valuations in aggregate appear attractive, trading at about a 30% discount to developed equities — not as deep as the 50% discount seen in the 1997-98 period, but below their 20-year average discount of over 20%. But as a catalyst, we think what will drive emerging market equities at some point, perhaps later this year, is when the market focuses on economic growth inflections shifting in favor of emerging markets relative to developed markets. Historically, the best time to buy

emerging markets, as an asset class, has been when their gross domestic product growth rates were increasing by more than those in developed countries. We believe strongly that there will be big differences among countries for both growth rates and equity performance. Country allocation will be critical to generating excess returns in this environment.

As we have for many years, we remain underweight China and commodities-related plays such as Brazil and Russia in the Fund. We still consider Central/Eastern Europe an attractive investment opportunity. After two recessions in five years, Western European growth is recovering and beginning to unleash a great deal of pent-up demand for goods and services which we believe could benefit Poland, the Czech Republic and Romania.

We also remain positive on the Philippines. In our view, the Philippines continues to deliver some of the most attractive well-rounded growth with the business process outsourcing sector performing well, keeping overall consumption fairly strong. Lower oil prices could provide a tailwind for consumption and help bring inflation down.

Our overweight position in India is tempered by its status as a market consensus favorite. While views on India’s macro prospects are divided, we find select bottom-up stories attractive. In Mexico, economic growth is starting to turn around, as reflected in company earnings. Consumption is finally picking up and credit is at last beginning to grow, and it has among the lowest credit penetration levels of any emerging market country.

Penn Mutual Asset Management, Inc.

Investment Adviser

Morgan Stanley Investment Management

Investment Sub-Adviser

43

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Emerging Markets Equity Fund on August 25, 2008 would have grown to $9,700. 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 $9,812.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Emerging Markets Equity Fund		(10.89	)%		(3.96	)%		(0.41	)%
MSCI Emerging Markets Index		(14.60	)%		(4.47	)%		0.20	%

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 12/31/15

	Percent of Total Investments3
China		13.2	%
South Korea		12.6	%
Taiwan		10.7	%
India		10.5	%
Mexico		7.1	%
Hong Kong		6.2	%
Brazil		4.6	%
South Africa		4.6	%
Philippines		4.3	%
Indonesia		3.1	%
Poland		3.0	%
Austria		2.4	%
United States		2.3	%
Thailand		2.2	%
Russia		2.0	%
Czech Republic		1.2	%
Pakistan		1.1	%
Turkey		1.0	%
United Kingdom		1.0	%
Netherlands		0.9	%
Peru		0.9	%
Argentina		0.8	%
Portugal		0.8	%
Japan		0.7	%
Switzerland		0.7	%
Chile		0.6	%
Columbia		0.5	%
Egypt		0.5	%
Panama		0.2	%
Spain		0.2	%
Malaysia		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 5.22% for the twelve-month period ending December 31, 2015, compared to the 3.20% return for its benchmark, the FTSE NAREIT Equity REIT Index.

The year was a challenging period for equities, as investors reacted to signs of economic deceleration in China, falling commodity prices and slowing global growth generally. In the U.S., the prospect for an interest-rate hike by the Federal Reserve occasionally upset markets, although when the Fed finally raised rates off of near-zero in December, by 0.25%, investors seemed to take it in stride.

In this environment, U.S. REITs, which have a strong domestic orientation, had a positive total return and outperformed the broader U.S. market, aided by continued strength in real estate fundamentals. Throughout the year, REITs generally exceeded or met the market’s high earnings expectations, and many raised their guidance. Meanwhile, acquisition activity continued to confirm high property valuation levels, also helping REIT shares to recover from their mid-year lows.

Returns varied widely by property type. Self storage REITs were a positive standout. Demand for self storage has continued to outstrip very limited new supply, driving strong same-store sales growth for these companies. Apartment owners also fared well, overcoming concerns about rising supply as household formation continued to support demand.

The regional mall sector modestly outperformed as a group, but saw a divergence in performance. In an uncertain retail environment, companies focused on Class A properties and outlet centers in desirable locations advanced, while landlords that predominately operate Class B malls had sizable declines. Returns for shopping center REITs, which are better represented by consumer staples tenants, were relatively more even.

Office landlords had a flat return; some investors were concerned that property values in cities such as New York could be adversely affected by less investment demand from non-U.S. sources. Hotels were the poorest-performing sector. The group struggled amid moderating economic growth in the U.S. and abroad, with a strong dollar also dampening demand due to slowing tourism. Rising supply in certain large markets also weighed on returns.

Health care property REITs also underperformed during the period. As health care companies have generally transitioned toward more economically sensitive business models over the past few years — no longer pure net-lease plays — their growth prospects have faced increased scrutiny.

The Fund had a positive total return in the year and outperformed its benchmark. Our overweight and stock selection in the apartment sector contributed positively to relative performance, as did our overweight in self storage REITs. Stock selection in the regional mall sector was favorable as well, reflecting our preference for owners of high-quality properties. Factors that detracted from relative returns included stock selection in the shopping center and free-standing retail sectors, along with our overweight in hotels.

Even as the Fed seems likely to continue to lift interest rates off near-zero levels over the next year and beyond, we maintain a favorable view of REITs based on strengthening fundamentals, the relative stability of the U.S. economy and valuations that in many cases are compelling. We believe that any rise in rates from here would be accompanied by economic growth, which historically has resulted in stronger demand for all types of real estate. Even modest economic expansion should continue to drive cash-flow growth, given limited new supply in most sectors and still low financing costs.

We generally favor U.S. property sectors that will benefit the most from improving employment, household wealth and real income growth, including apartments, where an only modest recovery in for-sale housing and strong employment growth remain tailwinds.

Penn Mutual Asset Management, Inc.

Investment Adviser

Cohen & Steers Capital Management

Investment Sub-Adviser

45

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Cumulative Performance Comparison

December 31, 2005 — December 31, 2015

An investment of $10,000 in the Real Estate Securities Fund on December 31, 2005 would have grown to $18,316. 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, 2005 would have grown to $20,432.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			10 Year
Real Estate Securities Fund		5.22	%		11.90	%		6.24	%
FTSE NAREIT Equity REIT Index		3.20	%		11.96	%		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.

Portfolio Composition as of 12/31/15

	Percent of Total Investments2
Apartments		18.9	%
Regional Malls		17.8	%
Diversified		11.5	%
Storage & Warehousing		10.5	%
Office Property		10.1	%
Healthcare		9.4	%
Strip Centers		8.1	%
Hotels & Resorts		5.0	%
Building & Real Estate		3.6	%
Industrial		3.0	%
Manufactured Homes		1.5	%
Lodging		0.6	%
		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 –1.59% for the twelve-month period ending December 31, 2015, compared to its benchmarks, the Russell 3000 Index’s return of 0.48% and the Barclays Capital U.S. Aggregate Bond Index’s return of 0.55% 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. Detracting from performance during the period versus its benchmark was the Fund’s underlying asset class allocations to emerging market stocks. Also contributing to the equity underperformance versus the Index were the Fund’s underlying asset class allocations to large, mid and small cap value as growth-oriented stocks outperformed value-oriented stocks across all market capitalizations during the year.

At the individual fund level, the Fund’s allocation to international equity contributed the most to performance during the period. While at an asset class level, the allocation to emerging market equity detracted from performance, at the underlying fund level, an allocation to emerging markets equity helped performance. Also contributing to performance during the period were allocations to small cap growth and real estate.

The Fund’s fixed income allocation performed in-line with 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 conducted each September with changes implemented October 1, the asset class allocation to developed international stocks was slightly increased and the asset class allocation to emerging market equity as well as large cap growth stocks were slightly reduced. These asset class changes became effective at the beginning of the fourth quarter and will continue to be in 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.

Penn Mutual Asset Management, Inc.

Investment Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Aggressive Allocation Fund on August 25, 2008 would have grown to $15,121. 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 $19,076. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $13,732.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Aggressive Allocation Fund		(1.59	)%		7.45	%		5.78	%
Russell 3000 Index		0.48	%		12.18	%		8.77	%
Barclays Capital U.S. Aggregate Bond Index		0.55	%		3.25	%		4.41	%

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.

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 12/31/15

International Stocks	23.0	%
Large Cap Value Stocks	17.0	%
Large Cap Growth Stocks	14.0	%
Mid Cap Value Stocks	9.0	%
Emerging Market Stocks	9.0	%
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 –1.14% for the twelve-month period ending December 31, 2015, compared to its benchmarks, the Russell 3000 Index’s return of 0.48% and the Barclays Capital U.S. Aggregate Bond Index’s return of 0.55% 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. Contributing the most to this underperformance versus its benchmark was the Fund’s underlying asset class allocations to emerging market stocks. Also contributing to the equity underperformance versus the Index were the Fund’s underlying asset class allocations to large, mid and small cap value as growth-oriented stocks outperformed value-oriented stocks across all market capitalizations during the year.

At the individual fund level, the Fund’s allocation to international equity contributed the most to performance during the period. While at an asset class level, the allocation to emerging market equity detracted from performance, at the underlying fund level, an allocation to emerging markets equity helped performance. Also contributing to performance during the period were allocations to small cap growth and real estate.

The Fund’s fixed income allocation slightly underperformed the Barclays Capital U.S. Aggregate Bond Index for the one-year time period. Contributing to this underperformance was the asset class allocation to high yield bonds.

As a result of the annual analysis of the asset class allocations of the Fund conducted each September with changes implemented October 1, the asset class allocations to emerging markets equity and large cap growth were slightly decreased. These decreases allowed for the slight increase to the international stocks asset class. These asset class changes became effective at the beginning of the fourth quarter and will continue to be in

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.

Penn Mutual Asset Management, Inc.

Investment Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Moderately Aggressive Allocation Fund on August 25, 2008 would have grown to $15,866. 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 $19,076. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $13,732.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Moderately Aggressive Allocation Fund		(1.14	)%		6.92	%		6.48	%
Russell 3000 Index		0.48	%		12.18	%		8.77	%
Barclays Capital U.S. Aggregate Bond Index		0.55	%		3.25	%		4.41	%

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.

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 12/31/15

International Stocks	20.0	%
Large Cap Value Stocks	15.0	%
Intermediate Bonds	13.0	%
Large Cap Growth Stocks	12.0	%
Mid Cap Value Stocks	8.0	%
Emerging Market Stocks	6.0	%
Mid Cap Growth Stocks	6.0	%
Small Cap Value Stocks	5.0	%
Small Cap Growth Stocks	4.0	%
REITs	4.0	%
Short Term Bonds	4.0	%
High Yield Bonds	3.0	%
	100.0	%

50

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Moderate Allocation Fund

The Penn Series Moderate Allocation Fund returned –0.55% for the twelve-month period ending December 31, 2015, compared to its benchmarks, the Russell 3000 Index’s return of 0.48% and the Barclays Capital U.S. Aggregate Bond Index’s return of 0.55% 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 the most to this underperformance versus its benchmark was the Fund’s underlying asset class allocations to emerging market stocks. Also contributing to the equity underperformance versus the Index were the Fund’s underlying asset class allocations to large, mid and small cap value as growth-oriented stocks outperformed value-oriented stocks across all market capitalizations during the year.

At the individual fund level, the Fund’s allocation to international equity contributed the most to performance during the period. While at an asset class level, the allocation to emerging market equity detracted from performance, at the underlying fund level, an allocation to emerging markets equity helped performance.

The Fund’s fixed income allocation underperformed the Barclays Capital U.S. Aggregate Bond Index for the one-year time period. The Fund’s asset class allocation to high yield bonds had a negative impact on its performance for the one-year period. At the underlying fund level, the allocations to both short-term and intermediate-term bonds contributed to performance during the year.

As a result of the annual analysis of the asset class allocations of the Fund conducted each September with changes implemented October 1, the asset class allocations to emerging market equity and large cap growth stocks were decreased. These decreases allowed for the increase to the asset class allocations within mid cap growth and international equity stocks. These asset class changes became effective at the beginning of the

fourth quarter and will continue to be in 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.

Penn Mutual Asset Management, Inc.

Investment Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Moderate Allocation Fund on August 25, 2008 would have grown to $14,714. 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 $19,076. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $13,732.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Moderate Allocation Fund		(0.55	)%		6.00	%		5.39	%
Russell 3000 Index		0.48	%		12.18	%		8.77	%
Barclays Capital U.S. Aggregate Bond Index		0.55	%		3.25	%		4.41	%

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.

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 12/31/14

Intermediate Bonds	25.0	%
International Stocks	14.0	%
Large Cap Value Stocks	12.0	%
Large Cap Growth Stocks	9.0	%
Short Term Bonds	7.0	%
Mid Cap Value Stocks	6.0	%
High Yield Bonds	5.0	%
Mid Cap Growth Stocks	5.0	%
Small Cap Value Stocks	4.0	%
Emerging Market Stocks	4.0	%
REITs	3.0	%
Small Cap Growth Stocks	3.0	%
Cash Equivalents	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 –0.22% for the twelve-month period ending December 31, 2015, compared to its benchmarks, the Russell 3000 Index’s return of 0.48% and the Barclays Capital U.S. Aggregate Bond Index’s return of 0.55% 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 consists of domestic equity funds comprised of large capitalization and mid capitalization funds and a slight allocation to small capitalization stocks as well as developed international equity funds and a small allocation to emerging market equities. The fixed income portion is mostly allocated to intermediate-term and short-term bond funds.

The Moderately Conservative Allocation Fund’s fixed income allocation underperformed the Barclays Capital U.S. Aggregate Bond Index for the one-year time period. Contributing to this underperformance was primarily the Fund’s underlying asset class allocation to high yield bonds. During the period, Fund performance was aided by the underlying fund allocations to both short-term bonds and intermediate-term bonds.

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 performance versus its benchmark was the underlying asset class allocations to both emerging market stocks and large cap value stocks. Emerging markets significantly underperformed domestic equities during the year, which had a negative impact to the Fund’s equity performance. At the individual fund level, the Fund’s allocation to international equity contributed the most to performance during the period.

As a result of the annual analysis of the asset class allocations of the Fund conducted each September with changes implemented October 1, the asset class allocation to small cap growth stocks was reduced. This reduction allowed for the increase to the asset class allocation to mid cap growth stocks. These asset class changes became effective at the beginning of the fourth quarter and will continue to be in 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.

Penn Mutual Asset Management, Inc.

Investment Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Moderately Conservative Allocation Fund on August 25, 2008 would have grown to $14,008. 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 $19,076. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $13,732.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Moderately Conservative Allocation Fund		(0.22	)%		4.97	%		4.69	%
Russell 3000 Index		0.48	%		12.18	%		8.77	%
Barclays Capital U.S. Aggregate Bond Index		0.55	%		3.25	%		4.41	%

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.

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 12/31/15

Intermediate Bonds	34.0	%
Short Term Bonds	16.0	%
Large Cap Value Stocks	10.0	%
International Stocks	9.0	%
Large Cap Growth Stocks	7.0	%
High Yield Bonds	7.0	%
Mid Cap Value Stocks	4.0	%
Mid Cap Growth Stocks	3.0	%
Cash Equivalents	3.0	%
Small Cap Value Stocks	2.0	%
Emerging Market Stocks	2.0	%
REITs	2.0	%
Small Cap Growth Stocks	1.0	%
	100.0	%

54

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Conservative Allocation Fund

The Penn Series Conservative Allocation Fund returned 0.08% for the twelve-month period ending December 31, 2015, compared to its benchmarks, the Russell 3000 Index’s return of 0.48% and the Barclays Capital U.S. Aggregate Bond Index’s return of 0.55% 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 bonds underperformed the Barclays Capital U.S. Aggregate Bond Index for the one-year period, thus, asset allocation had a negative contribution on performance during the period. However, the Fund’s underlying fund allocations to both short-term and intermediate-term bonds did contribute positively to Fund performance during the period.

The Fund’s equity allocation slightly underperformed its broad equity benchmark, the Russell 3000 Index. The Fund’s asset class allocation to large cap value stocks hindered its equity performance during the period as value stocks underperformed growth stocks during the year. The Fund’s underlying fund allocation to international equity did aid performance during the period.

As a result of the annual analysis of the asset class allocations of the Fund conducted each September with changes implemented October 1, the asset class allocations were not changed and the current asset class allocations will remain in effect 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.

Penn Mutual Asset Management, Inc.

Investment Adviser

Cumulative Performance Comparison

August 25, 2008 — December 31, 2015

An investment of $10,000 in the Conservative Allocation Fund on August 25, 2008 would have grown to $13,142. 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 $19,076. A $10,000 investment in the Barclays Capital U.S. Aggregate Bond Index on August 25, 2008 would have grown to $13,732.

Average Annual Total Returns¹ as of 12/31/15

	1 Year			5 Year			Since Inception2
Conservative Allocation		0.08	%		3.52	%		3.78	%
Russell 3000 Index		0.48	%		12.18	%		8.77	%
Barclays Capital U.S. Aggregate Bond Index		0.55	%		3.25	%		4.41	%

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.

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

55

Penn Series Funds, Inc.

Management’s Discussion of Fund Performance

Asset Allocation Target as of 12/31/15

Intermediate Bonds	42.0	%
Short Term Bonds	22.0	%
High Yield Bonds	9.0	%
Large Cap Value Stocks	7.0	%
Cash Equivalents	7.0	%
Large Cap Growth Stocks	5.0	%
International Stocks	5.0	%
Mid Cap Value Stocks	2.0	%
Mid Cap Growth Stocks	1.0	%
	100.0	%

56

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, 2015 and held through December 31, 2015. 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, 2015.

Disclosure of Fund Expenses

For the Period July 1, 2015 to December 31, 2015

Expense Table

	Beginning Value July 1, 2015		Ending Value December 31, 2015		Annualized Expense Ratio		Expenses Paid During Period *
Money Market Fund
Actual		$1,000.00		$1,000.06		0.27%		$1.36
Hypothetical		$1,000.00		$1,023.83		0.27%		$1.38
Limited Maturity Bond Fund
Actual		$1,000.00		$999.14		0.73%		$3.67
Hypothetical		$1,000.00		$1,021.49		0.73%		$3.72

57

Important Information about Fund Expenses

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

	Beginning Value July 1, 2015		Ending Value December 31, 2015		Annualized Expense Ratio		Expenses Paid During Period *
Quality Bond Fund
Actual		$1,000.00		$999.99		0.68%		$3.44
Hypothetical		$1,000.00		$1,021.73		0.68%		$3.48
High Yield Bond Fund
Actual		$1,000.00		$932.33		0.87%		$4.26
Hypothetical		$1,000.00		$1,020.75		0.87%		$4.46
Flexibly Managed Fund
Actual		$1,000.00		$1,014.96		0.92%		$4.66
Hypothetical		$1,000.00		$1,020.53		0.92%		$4.68
Balanced Fund
Actual		$1,000.00		$999.99		0.22%		$1.09
Hypothetical		$1,000.00		$1,024.11		0.22%		$1.10
Large Growth Stock Fund
Actual		$1,000.00		$1,033.33		0.98%		$5.01
Hypothetical		$1,000.00		$1,020.22		0.98%		$4.99
Large Cap Growth Fund
Actual		$1,000.00		$987.93		0.89%		$4.46
Hypothetical		$1,000.00		$1,020.67		0.89%		$4.54
Large Core Growth Fund
Actual		$1,000.00		$996.34		0.87%		$4.38
Hypothetical		$1,000.00		$1,020.77		0.87%		$4.44
Large Cap Value Fund
Actual		$1,000.00		$951.59		0.92%		$4.53
Hypothetical		$1,000.00		$1,020.51		0.92%		$4.70
Large Core Value Fund
Actual		$1,000.00		$985.99		0.92%		$4.62
Hypothetical		$1,000.00		$1,020.50		0.92%		$4.71
Index 500 Fund
Actual		$1,000.00		$999.39		0.38%		$1.93
Hypothetical		$1,000.00		$1,023.26		0.38%		$1.95
Mid Cap Growth Fund
Actual		$1,000.00		$910.39		1.03%		$4.94
Hypothetical		$1,000.00		$1,019.97		1.03%		$5.24
Mid Cap Value Fund
Actual		$1,000.00		$892.98		0.81%		$3.87
Hypothetical		$1,000.00		$1,021.07		0.81%		$4.14
Mid Core Value Fund
Actual		$1,000.00		$978.28		1.08%		$5.39
Hypothetical		$1,000.00		$1,019.70		1.08%		$5.51
SMID Cap Growth Fund
Actual		$1,000.00		$898.43		1.07%		$5.10
Hypothetical		$1,000.00		$1,019.77		1.07%		$5.44

58

Important Information about Fund Expenses

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

	Beginning Value July 1, 2015		Ending Value December 31, 2015		Annualized Expense Ratio		Expenses Paid During Period *
SMID Cap Value Fund
Actual		$1,000.00		$925.38		1.23%		$5.98
Hypothetical		$1,000.00		$1,018.92		1.23%		$6.29
Small Cap Growth Fund
Actual		$1,000.00		$928.86		1.04%		$5.03
Hypothetical		$1,000.00		$1,019.93		1.04%		$5.28
Small Cap Value Fund
Actual		$1,000.00		$923.34		0.99%		$4.79
Hypothetical		$1,000.00		$1,020.17		0.99%		$5.04
Small Cap Index Fund
Actual		$1,000.00		$910.04		0.69%		$3.31
Hypothetical		$1,000.00		$1,021.70		0.69%		$3.51
Developed International Index Fund
Actual		$1,000.00		$930.50		0.84%		$4.10
Hypothetical		$1,000.00		$1,020.91		0.84%		$4.30
International Equity Fund
Actual		$1,000.00		$1,007.90		1.15%		$5.82
Hypothetical		$1,000.00		$1,019.34		1.15%		$5.87
Emerging Markets Equity Fund
Actual		$1,000.00		$854.11		1.69%		$7.91
Hypothetical		$1,000.00		$1,016.57		1.69%		$8.64
Real Estate Securities Fund
Actual		$1,000.00		$1,106.89		0.97%		$5.16
Hypothetical		$1,000.00		$1,020.25		0.97%		$4.96
Aggressive Allocation Fund
Actual		$1,000.00		$960.00		0.34%		$1.69
Hypothetical		$1,000.00		$1,023.46		0.34%		$1.75
Moderately Aggressive Allocation Fund
Actual		$1,000.00		$966.43		0.32%		$1.59
Hypothetical		$1,000.00		$1,023.57		0.32%		$1.64
Moderate Allocation Fund
Actual		$1,000.00		$976.87		0.32%		$1.58
Hypothetical		$1,000.00		$1,023.59		0.32%		$1.62
Moderately Conservative Allocation Fund
Actual		$1,000.00		$984.08		0.33%		$1.65
Hypothetical		$1,000.00		$1,023.53		0.33%		$1.68
Conservative Allocation Fund
Actual		$1,000.00		$990.66		0.34%		$1.72
Hypothetical		$1,000.00		$1,023.46		0.34%		$1.75

* Expenses are equal to the fund’s annualized expense ratio multiplied by the average value over the period, multiplied by the number of days in the most recent fiscal half-year (184), then divided by 365.

59

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Money Market Fund

	Par (000)		Value†
COMMERCIAL PAPER — 37.9%
Aerospace & Defense — 0.9%
Rockwell Collins, Inc. 0.550%, 01/05/16	$	670	$	669,959
United Technologies Corp. 0.700%, 01/08/16		540		539,927
				1,209,886
Beverages — 8.6%
Anheuser-Busch InBev N.V.
0.501%, 03/29/16		2,000		1,997,556
0.451%, 04/11/16		1,000		998,738
Brown-Forman Corp.
0.500%, 01/07/16		3,500		3,499,708
0.630%, 02/01/16		1,000		999,457
0.500%, 02/03/16		1,000		999,542
Coca-Cola Co. 0.562%, 04/19/16		3,000		2,994,913
				11,489,914
Diversified Financial Services — 2.2%
AXA Financial
0.345%, 01/11/16		2,000		1,999,808
0.380%, 02/01/16		1,000		999,673
				2,999,481
Electric — 7.0%
Electriicite de France 0.400%, 01/08/16		1,100		1,099,915
GDF Suez S.A.
0.290%, 01/06/16		2,000		1,999,919
0.283%, 01/07/16		1,000		999,874
Oglethorpe Power Corp.
0.257%, 01/05/16		3,500		3,499,900
0.480%, 02/01/16		1,212		1,211,499
The Southern Co. 0.550%, 01/04/16		595		594,973
				9,406,080
Food — 0.5%
Campbell Soup Co.
0.450%, 01/13/16		400		399,940
0.500%, 01/21/16		270		269,925
				669,865
Gas — 9.1%
Air Liquide USA LLC
0.270%, 01/29/16		1,000		999,790
0.450%, 02/05/16		3,000		2,998,688
Northern Illinoise Gas Co. 0.400%, 01/11/16		3,000		2,999,667
Sempra Energy Global Enterprises 0.800%, 01/05/16		650		649,942
WGL Holdings, Inc.
0.400%, 01/07/16		550		549,963
0.550%, 01/12/16		900		899,849
0.500%, 01/14/16		1,000		999,819
0.500%, 01/19/16		1,000		999,750
0.651%, 02/01/16		1,000		999,440
				12,096,908

	Par (000)		Value†
Healthcare Services — 7.9%
Catholic Health Initiatives
0.450%, 01/05/16	$	500	$	499,975
0.481%, 01/20/16		2,000		1,999,493
0.481%, 02/11/16		2,000		1,998,907
United Healthcare Corp. 0.507%, 01/04/16		6,100		6,099,742
				10,598,117
Insurance — 1.4%
MetLife Short Term Funding LLC 0.269%, 01/20/16		1,900		1,899,730
Media — 0.3%
Comcast Corp. 0.600%, 01/05/16		375		374,975
TOTAL COMMERCIAL PAPER (Cost $50,744,956)				50,744,956
CORPORATE BONDS — 3.2%
Banks — 1.5%
National Australia Bank Ltd. 0.900%, 01/20/16		2,000		2,000,477
Diversified Financial Services — 0.7%
General Electric Capital Corp. 5.000%, 01/08/16		1,000		1,000,861
Insurance — 1.0%
New York Life Global Funding 0.800%, 02/12/16 144A @		1,270		1,270,586
TOTAL CORPORATE BONDS (Cost $4,271,924)				4,271,924
U.S. TREASURY OBLIGATIONS — 45.9%
U.S. Treasury Note
0.305%, 01/31/16•		12,000		12,000,021
0.375%, 03/15/16		5,000		5,001,084
0.329%, 04/30/16•		8,000		8,000,807
0.250%, 05/15/16		4,000		3,999,655
0.375%, 05/31/16		1,000		1,000,153
1.750%, 05/31/16		1,000		1,005,723
3.250%, 06/30/16		1,000		1,013,213
0.330%, 07/31/16•		12,500		12,501,666
0.625%, 08/15/16		1,500		1,500,668
1.000%, 08/31/16		1,000		1,002,015
3.000%, 08/31/16		3,000		3,045,257
0.313%, 10/31/16•		4,000		3,999,298
4.625%, 11/15/16		3,000		3,104,381
7.500%, 11/15/16		2,000		2,119,458
0.875%, 12/31/16		1,000		1,001,228
3.250%, 12/31/16		1,000		1,024,621
TOTAL U.S. TREASURY OBLIGATIONS (Cost $61,319,248)				61,319,248

60

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Money Market Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 12.7%
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 - Class I		1		1
Fidelity Institutional Prime Money Market Portfolio - Institutional Class		16,961,864		16,961,864
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 $16,961,870)				16,961,870
TOTAL INVESTMENTS — 99.7% (Cost $133,297,998)			$	133,297,998
Other Assets & Liabilities — 0.3%				347,359
TOTAL NET ASSETS — 100.0%			$	133,645,357

† See Security Valuation Note.

• Variable Rate Security.

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

LLC — Limited Liability Company.

Maturity Schedule (days)	Market Value		Percentage of Portfolio		Cumulative
1 to 7	$	72,902,329		54.7%		54.7%
8 to 14		9,939,786		7.4%		61.3%
15 to 30		8,169,716		6.1%		68.2%
31 to 60		11,477,792		8.6%		76.8%
61 to 90		6,998,640		5.3%		82.1%
91 to 120		3,993,651		3.0%		85.1%
121 to 150		3,999,655		3.0%		88.1%
150 +		15,816,717		11.9%		100.0%
	$	133,297,998		100.0%

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	61,319,248	$	—	$	61,319,248	$	—
CORPORATE BONDS		4,271,924		—		4,271,924		—
COMMERCIAL PAPER		50,744,956		—		50,744,956		—
SHORT-TERM INVESTMENTS		16,961,870		16,961,870		—		—
TOTAL INVESTMENTS	$	133,297,998	$	16,961,870	$	116,336,128	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

61

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Limited Maturity Bond Fund

	Par (000)		Value†
AGENCY OBLIGATION — 0.3%
Federal National Mortgage Association — 0.3%
Federal National Mortgage Association 1.233%, 09/01/22 (Cost $472,924)	$	477	$	479,382
ASSET BACKED SECURITIES — 29.4%
Ally Master Owner Trust 1.540%, 09/15/19		1,000		994,019
Americredit Automobile Receivables Trust 2013-5 2.290%, 11/08/19		1,000		1,001,982
Avenue CLO VI Ltd. 2007-6A 2.465%, 07/17/19 144A @		2,500		2,421,770
Black Diamond CLO 2005-1 Delaware Corp. 2.470%, 06/20/17 144A @		2,000		1,978,218
Brentwood CLO Corp. 2006-1A 1.149%, 02/01/22 144A @		2,000		1,854,404
Chesapeake Funding LLC 1.069%, 03/07/26 144A @		1,080		1,079,767
Conseco Financial Corp. 7.650%, 04/15/19		5		5,455
Consumers Securitization Funding LLC 2014-A 1.334%, 11/01/20		1,988		1,968,923
CPS Auto Receivables Trust 2014-A 1.210%, 08/15/18 144A @		321		319,689
Cratos CLO Ltd. 2007-1A D 2.767%, 05/19/21 144A @		2,000		1,988,648
Entergy Arkansas Restoration Funding LLC 2.300%, 08/01/21		1,428		1,435,865
Equity One Mortgage Pass-Through Trust 2004-1 4.145%, 04/01/34		11		10,888
Ford Credit Auto Owner Trust 2012-C 1.270%, 12/15/17		2,000		2,002,154
Ford Credit Auto Owner Trust 2012-D 1.970%, 05/15/19		1,800		1,811,087
Gleneagles CLO Ltd. 2005-1A C 1.229%, 11/01/17 144A @		2,000		1,987,426
Golden Credit Card Trust 1.390%, 07/15/19 144A @		2,000		1,993,746
Honda Auto Receivables 2014-2 Owner Trust 2014 0.770%, 03/19/18		1,957		1,951,963
Hyundai Auto Lease Securitization Trust 2014-B 1.540%, 12/17/18 144A @		1,100		1,097,881
Jasper CLO Ltd. 2005-1A 1.229%, 08/01/17 144A @		2,375		2,360,007
Popular ABS Mortgage Pass-Through Trust 2004-4 4.628%, 09/01/34		7		7,361
Red River CLO Ltd. 1A C 1.049%, 07/27/18 144A @		2,000		1,961,210
Rockwall CDO II Ltd. 2007-1A 1.029%, 08/01/24 144A @		2,065		1,874,545

	Par (000)		Value†
Rockwall CDO Ltd. 2006-1A 0.829%, 08/01/21 144A @	$	1,839	$	1,823,054
SACO I, Inc. 2005-4 1.322%, 06/25/35 144A @		113		109,644
Santander Drive Auto Receivables Trust 2013-2 2013 1.950%, 03/15/19		3,000		3,005,802
SLM Private Education Loan Trust 2012-A 2012 1.731%, 08/15/25 144A @		1,892		1,896,069
SLM Student Loan Trust 2004-4 0.700%, 01/27/25		2,200		2,110,818
St James River CLO Ltd. 2.792%, 06/11/21 144A @		1,000		971,504
Stone Tower CLO VII Ltd. 2007-7A 2.612%, 08/30/21 144A @		2,000		1,955,126
Stoney Lane Funding CLO I Corp. 1.715%, 04/18/22 144A @		3,000		2,726,349
Tralee CDO Ltd. 2007-1A 1.817%, 04/16/22 144A @		2,000		1,851,882
Volvo Financial Equipment LLC Series 2013-1 1.620%, 08/17/20 144A @		1,000		1,000,065
Westchester CLO Ltd. 2007-1A B 0.769%, 08/01/22 144A @		2,500		2,330,062
World Financial Network Credit Card Master Trust 2012-B 1.760%, 05/17/21		2,032		2,033,724
World Omni Automobile Lease Securitization Trust 2014-A 0.710%, 03/15/17		1,926		1,921,778
TOTAL ASSET BACKED SECURITIES (Cost $56,273,083)				55,842,885
COLLATERALIZED MORTGAGE OBLIGATIONS — 2.2%
Banc of America Commercial Mortgage Trust 2006-1 5.421%, 09/01/45		663		662,747
SLM Student Loan Trust 2004-7 0.680%, 04/25/25		3,612		3,443,331
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $4,193,308)				4,106,078
COMMERCIAL MORTGAGE BACKED SECURITIES — 18.0%
BAMLL Commercial Mortgage Securities Trust 2013-DSNY 1.831%, 09/15/26 144A @		1,000		995,714
Boca Hotel Portfolio Trust 2013-BOCA 2.081%, 08/15/26 144A @		1,000		999,874
CFCRE 2015-RUM B Mortgage Trust 2.481%, 07/15/30		2,000		1,972,314
Fannie Mae - Aces Series 2014-M2 Class ASV1 1.916%, 06/01/21		6,266		6,320,407
FREMF 2012-K705 Mortgage Trust 2012 4.161%, 09/01/44 144A @		1,000		1,025,613

62

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Limited Maturity Bond Fund

	Par (000)		Value†
COMMERCIAL MORTGAGE BACKED SECURITIES — (continued)
FREMF Mortgage Trust Series 2010-K6 Class B 5.358%, 12/01/46 144A @,•	$	3,000	$	3,235,424
FREMF Mortgage Trust Series 2012-K708 Class C 3.754%, 02/01/45 144A @,•		2,000		2,021,101
FREMF Mortgage Trust Series 2012-K710 Class C 3.819%, 06/01/47 144A @,•		2,110		2,109,886
FREMF Mortgage Trust Series 2013-KF02 Class C 4.221%, 12/25/45 144A @		534		544,137
FREMF Mortgage Trust, Series 2013-K713 Class C 3.165%, 04/01/46 144A @,•		2,400		2,310,639
Government National Mortgage Association 2011 3.200%, 11/01/44		4,049		4,108,337
GSCCRE Commercial Mortgage Trust 2015-HULA 2015 2.631%, 08/15/32 144A @		2,000		1,998,906
Hilton USA Trust 2014-ORL B 1.531%, 07/15/29 144A @		2,500		2,465,631
JP Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU Class A 1.281%, 12/15/28 144A @		1,000		999,957
Morgan Stanley Capital I Trust 2006-IQ12 5.332%, 12/01/43		2,953		3,004,901
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $34,596,347)				34,112,841
CORPORATE BONDS — 35.7%
Aerospace & Defense — 0.5%
BAE Systems PLC 3.500%, 10/11/16 144A @		1,000		1,014,429
Airlines — 3.8%
American Airlines 2013-2 Class C Pass-Through Trust 6.000%, 01/15/17 144A @		1,974		2,013,046
Continental Airlines 2009-1 Pass Through Trust 9.000%, 01/08/18		888		915,655
Delta Air Lines 2010-1 Class A Pass Through Trust 6.200%, 01/02/20		1,433		1,534,944
Northwest Airlines 2007-1 Class B Pass-Through Trust 8.028%, 05/01/19		2,068		2,167,022
UAL 2009-2A Pass-Through Trust 9.750%, 07/15/18		592		624,090
				7,254,757
Banks — 4.6%
Bank of America Corp. 3.750%, 07/12/16		1,000		1,012,539

	Par (000)		Value†
Banks — (continued)
JPMorgan Chase & Co.
0.882%, 02/15/17	$	1,385	$	1,384,094
2.000%, 08/15/17		2,000		2,006,780
State Street Corp. 4.956%, 03/15/18		3,000		3,147,609
Wells Fargo Bank NA 6.000%, 11/15/17		1,000		1,078,526
				8,629,548
Beverages — 1.0%
Constellation Brands, Inc. 7.250%, 05/15/17		1,750		1,863,750
Diversified Financial Services — 6.1%
AerCap Aviation Solutions BV 6.375%, 05/30/17		1,000		1,037,500
Air Lease Corp. 2.625%, 09/04/18		2,000		1,976,922
Ally Financial, Inc.
3.600%, 05/21/18		1,000		1,000,000
3.250%, 11/05/18		1,000		981,250
Ford Motor Credit Co. LLC 1.724%, 12/06/17		2,000		1,969,194
Icahn Enterprises LP 3.500%, 03/15/17		1,000		1,005,000
International Lease Finance Corp. 6.750%, 09/01/16 144A @		1,463		1,503,232
Vesey Street Investment Trust, STEP 4.404%, 09/01/16		2,000		2,039,016
				11,512,114
Electric — 3.2%
Entergy Gulf States, Inc. 6.180%, 03/01/35		2,000		1,999,506
Israel Electric Corp. Ltd. 6.700%, 02/10/17 144A @		1,000		1,043,800
Public Service Co. of Colorado 5.125%, 06/01/19		1,500		1,647,036
San Diego Gas & Electric Co. 1.914%, 02/01/22		1,490		1,464,231
				6,154,573
Electronics — 0.5%
Thermo Fisher Scientific, Inc. 1.300%, 02/01/17		1,000		996,464
Environmental Control — 0.5%
Waste Management, Inc. 2.600%, 09/01/16		1,000		1,006,919
Food — 0.6%
Tyson Foods, Inc. 6.600%, 04/01/16		645		653,534
WM Wrigley Jr. Co. 1.400%, 10/21/16 144A @		500		499,486
				1,153,020

63

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Limited Maturity Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Gas — 0.5%
Sabine Pass LNG LP 7.500%, 11/30/16	$	1,000	$	995,000
Healthcare Services — 0.6%
Fresenius Medical Care US Finance, Inc. 6.875%, 07/15/17		1,000		1,067,500
Insurance — 0.7%
MassMutual Global Funding II 2.350%, 04/09/19 144A @		1,356		1,362,887
Machinery — Diversified — 1.2%
Stanley Black & Decker, Inc. 2.451%, 11/17/18		1,000		1,003,902
Xylem, Inc. 3.550%, 09/20/16		1,165		1,180,899
				2,184,801
Media — 0.5%
Thomson Reuters Corp. 1.300%, 02/23/17		1,000		995,217
Oil & Gas — 0.5%
Statoil ASA 3.125%, 08/17/17		1,000		1,025,700
Oil & Gas Services — 1.6%
Cameron International Corp. 1.150%, 12/15/16		1,000		990,052
Schlumberger Holdings Corp. 2.350%, 12/21/18 144A @		2,000		1,987,018
				2,977,070
Pharmaceuticals — 1.2%
Mylan, Inc. 1.800%, 06/24/16		1,260		1,259,190
Perrigo Co., PLC 1.300%, 11/08/16 144A @		1,000		992,928
				2,252,118
Pipelines — 1.7%
Kinder Morgan Energy Partners LP 3.500%, 03/01/16		1,000		1,003,215
Spectra Energy Partners LP 2.950%, 06/15/16		1,000		1,003,616
Williams Partners LP/ACMP Finance Corp. 4.875%, 05/15/23		1,500		1,215,997
				3,222,828
Retail — 0.8%
Yum! Brands, Inc. 6.250%, 04/15/16		1,500		1,518,774
Semiconductors — 1.1%
NXP BV/NXP Funding LLC 3.750%, 06/01/18 144A @		1,000		1,005,000
Samsung Electronics America, Inc. 1.750%, 04/10/17 144A @		1,000		997,731
				2,002,731

	Par (000)		Value†
Telecommunications — 2.7%
America Movil S.A.B. de C.V. 2.375%, 09/08/16	$	1,000	$	1,003,667
British Telecommunications PLC 1.625%, 06/28/16		1,000		1,001,246
Deutsche Telekom International Finance B.V. 3.125%, 04/11/16 144A @		1,500		1,508,381
Verizon Communications, Inc.
2.500%, 09/15/16		680		685,306
1.350%, 06/09/17		1,000		997,113
				5,195,713
Trucking and Leasing — 1.8%
Aviation Capital Group Corp. 2.875%, 09/17/18 144A @		1,500		1,491,393
GATX Corp. 1.250%, 03/04/17		1,000		989,982
TTX Co. 5.400%, 02/15/16 144A @		1,000		1,003,452
				3,484,827
TOTAL CORPORATE BONDS (Cost $68,491,170)				67,870,740
MUNICIPAL NOTE — 0.2%
Regional — 0.2%
La Paz County Industrial Development Authority 6.250%, 12/01/19 (Cost $390,119)		375		412,301
RESIDENTIAL MORTGAGE BACKED SECURITIES — 3.9%
Collateralized Mortgage Obligations — 3.8%
Fannie Mae REMICS 0.622%, 10/25/37		7,251		7,212,799
Fannie Mae Pool — 0.1%
4.000%, 06/01/20		138		144,130
TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $7,331,932)				7,356,929
U.S. TREASURY OBLIGATIONS — 8.4%
U.S. Treasury Bond 0.750%, 12/31/17		6,500		6,456,073
U.S. Treasury Note
2.000%, 04/30/16		1,600		1,608,000
0.500%, 01/31/17		3,000		2,988,984
0.875%, 02/28/17		2,000		2,000,782
0.875%, 05/15/17		2,950		2,948,156
TOTAL U.S. TREASURY OBLIGATIONS (Cost $16,052,726)				16,001,995

64

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Limited Maturity Bond Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		553,430	$	553,430
BlackRock Liquidity Funds TempFund - Institutional Shares		218		218
Federated Prime Obligations Fund - Class I		407		407
Fidelity Institutional Prime Money Market Portfolio - Class I		198		198
Fidelity Institutional Prime Money Market Portfolio - Institutional Class		1,020		1,020
Wells Fargo Advantage Government Money Market Fund - Institutional Class		77		77
Wells Fargo Advantage Heritage Money Market Fund - Institutional Class		5		5
Wells Fargo Advantage Municipal Cash Management Money Market Fund - Institutional Class		1		1
TOTAL SHORT-TERM INVESTMENTS (Cost $555,356)				555,356
TOTAL INVESTMENTS — 98.4% (Cost $188,356,965)			$	186,738,507
Other Assets & Liabilities — 1.6%				3,107,864
TOTAL NET ASSETS — 100.0%			$	189,846,371

† See Security Valuation Note.

144A @ 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.

CLO — Collateralized Loan Obligation

LLC — Limited Liability Company.

LP — Limited Partnership.

PLC — Public Limited Company.

REMICS — Real Estate Mortgage Investment Conduits.

STEP — Step Coupon Bond.

Country Weightings as of 12/31/2015††
United States	78	%
Cayman Islands	15
Netherlands	2
Canada	1
Israel	1
Norway	1
United Kingdom	1
Other	1
Total	100	%

††% of total investments as of December 31, 2015

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	16,001,995	$	—	$	16,001,995	$	—
AGENCY OBLIGATION		479,382		—		479,382		—
ASSET BACKED SECURITIES		55,842,885		—		55,842,885		—
COLLATERALIZED MORTGAGE OBLIGATIONS		4,106,078		—		4,106,078		—
COMMERCIAL MORTGAGE BACKED SECURITIES		34,112,841		—		34,112,841		—
CORPORATE BONDS		67,870,740		—		67,870,740		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		7,356,929		—		7,356,929		—
SHORT-TERM INVESTMENTS		555,356		555,356		—		—
MUNICIPAL NOTES		412,301		—		412,301		—
TOTAL INVESTMENTS	$	186,738,507	$	555,356	$	186,183,151	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy 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, 2015

Quality Bond Fund

	Par (000)		Value†
AGENCY OBLIGATIONS — 0.5%
Federal National Mortgage Association — 0.1%
1.233%, 09/25/22	$	623	$	626,192
Government National Mortgage Association — 0.4%
4.304%, 10/16/45•		2,000		2,150,868
TOTAL AGENCY OBLIGATIONS (Cost $2,731,940)				2,777,060
ASSET BACKED SECURITIES — 16.9%
Avenue CLO VI Ltd. 2007-6A 2.465%, 07/17/19 144A @,•		2,500		2,421,770
Babson CLO, Inc. 2007-I 1.565%, 01/18/21 144A @,•		2,500		2,396,235
Black Diamond CLO 2005-1 Delaware Corp. 2.470%, 06/20/17 144A @,•		3,000		2,967,327
Brentwood CLO Corp. 2006-1A 1.149%, 02/01/22 144A @,•		4,000		3,708,808
Chrysler Capital Auto Receivables Trust 2014-B 2.700%, 05/15/20 144A @		3,000		2,974,310
College Loan Corp. Trust I 2006-1 1.070%, 04/25/46 144A @,•		5,000		4,583,369
Conseco Financial Corp. 1996-10 7.240%, 11/15/28•		419		260,411
Cratos CLO Ltd. 2007-1A D 2.767%, 05/19/21 144A @,•		3,000		2,982,972
Emerson Place CLO Ltd. 2006-1A C 1.091%, 01/15/19 144A @,•		3,200		3,002,842
Ford Credit Auto Owner Trust 2012-D 1.010%, 05/15/18		2,385		2,378,419
Galaxy XI CLO Ltd. 2011 4.020%, 08/20/22 144A @,•		3,000		2,934,873
Gleneagles CLO Ltd. 2005-1A C 1.229%, 11/01/17 144A @,•		2,500		2,484,283
Goldentree Loan Opportunities VII CLO Ltd. 2013-7A 1.470%, 04/25/25 144A @,•		2,000		1,958,362
Jasper CLO Ltd. 2005-1A 1.229%, 08/01/17 144A @,•		4,375		4,347,381
Keycorp Student Loan Trust 2006-A 0.913%, 09/27/35•		4,994		4,818,978
Morgan Stanley Capital I Trust 2005-IQ10 6.146%, 09/15/42•		631		633,194
Red River CLO Ltd. 1A C 1.049%, 07/27/18 144A @,•		3,500		3,432,117
Rockwall CDO II Ltd. 2007-1A
0.579%, 08/01/24 144A @,•		6,319		6,162,905
1.029%, 08/01/24 144A @,•		4,000		3,631,080
Rockwall CDO Ltd. 2006-1A 0.829%, 08/01/21 144A @,•		2,758		2,734,582
SACO I, Inc. 2005-4 1.322%, 06/25/35 144A @,•		338		328,931
SLC Student Loan Trust 2005-1 0.562%, 02/15/45•		6,369		5,446,598
SLM Student Loan Trust 2004-4 0.700%, 01/27/25•		5,800		5,564,884

	Par (000)		Value†
SLM Student Loan Trust 2005-10 0.590%, 10/26/26•	$	5,000	$	4,659,001
SLM Student Loan Trust 2012-6 1.422%, 04/27/43•		7,205		6,391,048
Stone Tower CLO VII Ltd. 2007-7A 2.612%, 08/30/21 144A @,•		3,000		2,932,689
Westchester CLO Ltd. 2007-1A B 0.769%, 08/01/22 144A @,•		4,500		4,194,112
TOTAL ASSET BACKED SECURITIES (Cost $92,237,714)				90,331,481
COMMERCIAL MORTGAGE BACKED SECURITIES — 23.2%
Boca Hotel Portfolio Trust 2013-BOCA
1.575%, 08/15/26 144A @,•		305		304,195
2.175%, 08/15/26 144A @,•		1,000		999,874
CFCRE 2015-RUM B Mortgage Trust 2.481%, 07/15/30 144A @,•		3,000		2,958,471
CFCRE Commercial Mortgage Trust 2011-C1 4.961%, 04/15/44 144A @,•		1,000		1,093,061
Citigroup Deutsche Bank Commercial Mortgage Trust 2007-CD4 5.322%, 12/11/49		1,339		1,361,907
FREMF Mortgage Trust Series 2010-K6 Class B 5.358%, 12/25/46 144A @,•		7,795		8,406,711
FREMF Mortgage Trust Series 2012-K18 Class B 4.255%, 01/25/45 144A @,•		6,000		6,171,058
FREMF Mortgage Trust Series 2012-K19 Class C 4.036%, 05/25/45 144A @,•		4,500		4,406,427
FREMF Mortgage Trust Series 2012-K20 Class C 3.869%, 05/25/45 144A @,•		6,000		5,856,857
FREMF Mortgage Trust Series 2012-K21 Class C 3.938%, 07/25/45 144A @,•		4,720		4,713,031
FREMF Mortgage Trust Series 2012-K22 Class B 3.687%, 08/25/45 144A @,•		9,145		9,068,496
FREMF Mortgage Trust Series 2012-K23 Class C 3.656%, 10/25/45 144A @,•		5,000		4,861,960
FREMF Mortgage Trust Series 2012-K707 Class B 3.883%, 01/25/47 144A @,•		8,272		8,432,595
FREMF Mortgage Trust Series 2012-K710 Class C 3.819%, 06/25/47 144A @,•		5,175		5,174,721
FREMF Mortgage Trust Series 2012-K711 Class B 3.562%, 08/25/45 144A @,•		6,000		6,068,854
FREMF Mortgage Trust Series 2013-K27 Class C 3.496%, 01/25/46 144A @,•		5,000		4,652,461

66

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Quality Bond Fund

	Par (000)		Value†
COMMERCIAL MORTGAGE BACKED SECURITIES — (continued)
FREMF Mortgage Trust Series 2013-K28 Class C 3.495%, 06/25/46 144A @,•	$	4,751	$	4,425,100
FREMF Mortgage Trust Series 2013-KF02 Class C 4.421%, 12/25/45 144A @,•		534		544,137
FREMF Mortgage Trust Series 2014-K37 Class B 4.558%, 01/25/47 144A @,•		5,825		6,021,959
FREMF Mortgage Trust Series 2014-K40 Class B 4.072%, 11/25/47 144A @,•		4,500		4,459,920
FREMF Mortgage Trust Series 2014-K41 Class B 3.831%, 11/25/47 144A @,•		5,000		4,527,581
FREMF Mortgage Trust Series 2014-K503 Class B 3.009%, 10/25/47 144A @,•		5,000		4,958,778
FREMF Mortgage Trust Series 2015-K43 Class B 3.735%, 02/25/48 144A @,•		5,000		4,572,125
FREMF Mortgage Trust Series 2015-K44 Class B 3.685%, 01/25/48 144A @,•		5,000		4,452,109
FREMF Mortgage Trust Series 2015-K45 Class B 3.591%, 04/25/48 144A @,•		5,000		4,452,396
FREMF Mortgage Trust Series 2015-K718 Class B 3.548%, 02/25/22 144A @,•		4,500		4,248,593
Hilton USA Trust 2013-HLT 4.407%, 11/05/30 144A @		1,000		1,000,740
Hilton USA Trust 2014-ORL B 1.531%, 07/15/29 144A @,•		1,500		1,479,379
JP Morgan Chase Commercial Mortgage Securities Trust 2007-LDP10 5.420%, 01/15/49		1,358		1,386,172
JP Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU Class B 1.831%, 12/15/28 144A @,•		1,900		1,899,831
JP Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU Class A 1.281%, 12/15/28 144A @,•		1,000		999,957
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost $127,601,226)				123,959,456
CORPORATE BONDS — 32.2%
Aerospace & Defense — 1.1%
Lockheed Martin Corp. 3.100%, 01/15/23		3,000		2,998,017
The Boeing Co. 6.625%, 02/15/38		2,140		2,843,165
				5,841,182

	Par (000)		Value†
Airlines — 3.1%
American Airlines 2015-2 Class B Pass Through Trust 4.400%, 09/22/23	$	3,000	$	2,970,000
Delta Air Lines 2007-1 Class A Pass Through Trust 6.821%, 08/10/22		2,324		2,677,524
Delta Air Lines 2015-1 Class B Pass Through Trust 4.250%, 07/30/23		2,000		2,015,000
UAL 2009-1 Pass Through Trust 10.400%, 11/01/16		2,628		2,786,514
US Airways 2012-1 Class A Pass Through Trust 5.900%, 10/01/24		2,491		2,753,064
US Airways 2012-2 Class B Pass Through Trust 6.750%, 06/03/21		3,054		3,207,011
				16,409,113
Banks — 3.0%
Bank of America Corp. 5.650%, 05/01/18		1,000		1,075,308
JPMorgan Chase & Co. 3.875%, 09/10/24		3,600		3,581,079
Morgan Stanley 5.950%, 12/28/17		2,050		2,204,420
State Street Corp. 4.956%, 03/15/18		5,000		5,246,015
Wells Fargo & Co. 3.000%, 02/19/25		4,000		3,890,636
				15,997,458
Biotechnology — 1.0%
Amgen, Inc. 2.700%, 05/01/22		3,000		2,911,197
Biogen Idec, Inc. 6.875%, 03/01/18		1,000		1,095,419
Genentech, Inc. 5.250%, 07/15/35		1,000		1,163,463
				5,170,079
Commercial Services — 0.5%
Drawbridge Special Opportunities Fund LP 5.000%, 08/01/21 144A @		2,000		1,940,000
ERAC USA Finance LLC 2.350%, 10/15/19 144A @		1,000		985,721
				2,925,721
Diversified Financial Services — 2.5%
Air Lease Corp. 3.750%, 02/01/22		2,000		1,964,446
American Express Co. 6.150%, 08/28/17		2,000		2,141,240
Ford Motor Credit Co. LLC 1.332%, 03/12/19 •		3,000		2,936,760

67

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Diversified Financial Services — (continued)
General Electric Capital Corp. 7.500%, 08/21/35	$	2,263	$	3,149,845
Visa Inc. 4.300%, 12/14/45		3,000		3,043,677
				13,235,968
Electric — 1.1%
Enel Finance International NV 6.250%, 09/15/17 144A @		1,000		1,065,538
Entergy Gulf States, Inc. 6.180%, 03/01/35		5,000		4,998,765
				6,064,303
Engineering & Construction — 0.9%
SBA Tower Trust 3.156%, 10/15/20 144A @		3,000		2,951,310
Sydney Airport Finance Co. Pty Ltd. 3.375%, 04/30/25 144A @		2,000		1,874,848
				4,826,158
Food — 0.9%
The J.M. Smucker Co. 3.500%, 10/15/21		3,890		4,002,262
WM Wrigley Jr. Co. 2.400%, 10/21/18 144A @		1,000		1,002,669
				5,004,931
Forest Products & Paper — 0.5%
Georgia-Pacific LLC 3.163%, 11/15/21 144A @		2,500		2,496,195
Gas — 0.4%
Centrica PLC 5.375%, 10/16/43 144A @		1,000		998,499
Sabine Pass LNG LP 7.500%, 11/30/16		1,380		1,373,100
				2,371,599
Healthcare Products — 1.7%
Becton Dickinson and Co. 3.300%, 03/01/23		1,103		1,089,961
Covidien International Finance SA 6.000%, 10/15/17		1,000		1,077,184
Edwards Lifesciences Corp. 2.875%, 10/15/18		1,000		1,011,602
Stryker Corp. 3.375%, 11/01/25		2,000		1,974,036
Zimmer Biomet Holdings, Inc. 4.625%, 11/30/19		1,000		1,067,786
3.550%, 04/01/25		3,000		2,915,166
				9,135,735
Insurance — 1.1%
New York Life Insurance Co. 5.875%, 05/15/33 144A @		4,925		5,760,635

	Par (000)		Value†
Investment Companies — 0.2%
Ares Capital Corp. 4.875%, 11/30/18	$	1,000	$	1,041,178
Machinery — Diversified — 0.6%
Roper Technologies Inc. 3.850%, 12/15/25		3,000		2,986,557
Media — 0.6%
Belo Corp. 7.750%, 06/01/27		2,000		2,110,000
Comcast Cable Holdings LLC 9.875%, 06/15/22		1,000		1,326,124
				3,436,124
Mining — 0.4%
Barrick Gold Corp. 5.250%, 04/01/42		2,000		1,347,000
Goldcorp, Inc. 3.625%, 06/09/21		1,000		939,034
				2,286,034
Oil & Gas — 1.9%
Anadarko Petroleum Corp. 0.000%, 10/10/36 ¤		7,500		2,700,000
BG Energy Capital PLC 4.000%, 10/15/21 144A @		1,000		1,037,807
BP Capital Markets PLC 2.500%, 11/06/22		2,500		2,376,597
Cnooc Finance 2015 Australia Pty Ltd. 2.625%, 05/05/20		3,000		2,932,665
Southwestern Energy Co. 4.950%, 01/23/25		2,000		1,260,000
				10,307,069
Oil & Gas Services — 0.5%
Halliburton Co. 3.375%, 11/15/22		3,000		2,952,402
Pharmaceuticals — 3.8%
GlaxoSmithKline Capital, Inc. 5.375%, 04/15/34		1,000		1,130,496
Johnson & Johnson 4.375%, 12/05/33		4,000		4,411,924
Mead Johnson Nutrition Co.
4.125%, 11/15/25		2,000		2,015,038
4.600%, 06/01/44		2,000		1,851,366
Mylan NV 3.000%, 12/15/18 144A @		2,000		1,995,586
Perrigo Co. PLC 4.000%, 11/15/23		1,000		974,892
Wyeth LLC 5.950%, 04/01/37		4,000		4,756,128
Zoetis Inc. 4.500%, 11/13/25		3,000		3,040,359
				20,175,789

68

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Quality Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Pipelines — 1.3%
Enterprise Products Operating LLC 3.350%, 03/15/23	$	4,000	$	3,617,036
Regency Energy Partners LP/Regency Energy Finance Corp. 5.875%, 03/01/22		2,000		1,885,122
Williams Partners LP/ACMP Finance Corp. 4.875%, 05/15/23		1,500		1,215,997
				6,718,155
Real Estate Investment Trusts — 0.5%
American Tower Corp. 4.700%, 03/15/22		2,500		2,627,565
Retail — 1.4%
McDonald’s Corp. 5.700%, 02/01/39		2,110		2,294,642
Walgreens Boots Alliance, Inc. 4.800%, 11/18/44		3,000		2,713,755
Yum! Brands Inc. 5.350%, 11/01/43		3,000		2,289,765
				7,298,162
Telecommunications — 0.7%
Crown Castle Towers LLC 3.663%, 05/15/25 144A @		4,000		3,881,852
Transportation — 1.8%
BNSF Railway Co. 2015-1 Pass Through Trust 3.442%, 06/16/28 144A @		5,397		5,214,757
Canadian National Railway Co. 6.250%, 08/01/34		2,500		3,145,962
Federal Express Corp 1999 Pass Through Trust 7.650%, 01/15/22		1,091		1,275,893
				9,636,612
Trucking and Leasing — 0.7%
Aviation Capital Group Corp. 2.875%, 09/17/18 144A @		2,500		2,485,655
TTX Co. 5.400%, 02/15/16 144A @		1,000		1,003,452
				3,489,107
TOTAL CORPORATE BONDS (Cost $175,845,531)				172,075,683
MUNICIPAL BONDS — 0.9%
City of Industry CA 5.125%, 01/01/51		3,000		3,036,540
Puerto Rico Sales Tax Financing Corp. 6.050%, 08/01/36		3,325		1,837,063
Total MUNICIPAL BONDS (Cost $5,622,682)				4,873,603

	Par (000)		Value†
RESIDENTIAL MORTGAGE BACKED SECURITIES — 11.3%
Fannie Mae Pool — 10.6%
4.000%, 08/01/41	$	6,823	$	7,241,905
2.500%, 01/01/43		3,158		3,051,464
2.500%, 02/01/43		9,186		8,876,444
3.000%, 03/01/43		8,987		9,006,444
2.500%, 05/01/43		11,696		11,302,822
3.500%, 09/01/43		1,816		1,876,329
3.000%, 01/01/45		15,000		15,000,137
				56,355,545
Freddie Mac Gold Pool — 0.6%
3.500%, 01/01/41		2,415		2,491,414
3.500%, 02/01/41		745		768,595
				3,260,009
Ginnie Mae Pool — 0.1%
6.000%, 10/15/38		407		460,414
6.000%, 10/15/38		241		273,092
				733,506
TOTAL RESIDENTIAL MORTGAGE BACKED SECURITIES (Cost $59,633,766)				60,349,060
U.S. TREASURY OBLIGATIONS — 15.3%
U.S. Treasury Bond
0.750%, 12/31/17		4,500		4,469,589
1.375%, 01/31/20		5,000		4,947,850
2.125%, 01/31/21		2,600		2,638,392
2.250%, 11/15/24		3,000		2,998,476
4.375%, 02/15/38		12,000		15,143,436
3.125%, 02/15/43		4,000		4,099,688
3.625%, 08/15/43		4,200		4,730,086
3.750%, 11/15/43		3,500		4,031,290
2.875%, 08/15/45		4,900		4,758,934
U.S. Treasury Note
0.625%, 08/31/171		4,000		3,974,376
1.750%, 05/15/23		6,250		6,089,112
United States Treasury Inflation Indexed Bonds
0.125%, 04/15/20		5,078		5,013,369
0.250%, 01/15/25		15,062		14,376,797
0.375%, 07/15/25		3,009		2,913,041
0.750%, 02/15/42		2,105		1,849,382
TOTAL U.S. TREASURY OBLIGATIONS (Cost $82,335,613)				82,033,818
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 0.4%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		1,968,532		1,968,532
BlackRock Liquidity Funds TempFund - Institutional Shares		447		447
Federated Prime Obligations Fund - Class I		313		313
Fidelity Institutional Prime Money Market Portfolio - Class I		272		272

69

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Quality Bond Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — (continued)
Fidelity Institutional Prime Money Market Portfolio - Institutional Class		715	$	715
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 $1,970,333)				1,970,333
TOTAL INVESTMENTS — 100.7% (Cost $547,978,805)			$	538,370,494
Other Assets & Liabilities — (0.7)%				(3,695,373	)
TOTAL NET ASSETS — 100.0%			$	534,675,121

† See Security Valuation Note.

144A @ 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.

¤ Zero Coupon Bond. The interest rate disclosed represents the effective yield from the date of acquisition to maturity.

¹  All or portion of securities segregated as collateral for futures contracts.

CLO — Collateralized Loan Obligation

LLC — Limited Liability Company.

LP — Limited Partnership.

PLC — Public Limited Company.

Country Weightings as of 12/31/2015††
United States	87	%
Cayman Islands	10
Australia	1
Canada	1
United Kingdom	1
Total	100	%

††% of total investments as of December 31, 2015

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
U.S. TREASURY OBLIGATIONS	$	82,033,818	$	—	$	82,033,818	$	—
AGENCY OBLIGATIONS		2,777,060		—		2,777,060		—
ASSET BACKED SECURITIES		90,331,481		—		90,331,481		—
COMMERCIAL MORTGAGE BACKED SECURITIES		123,959,456		—		123,959,456		—
CORPORATE BONDS		172,075,683		—		172,075,683		—
RESIDENTIAL MORTGAGE BACKED SECURITIES		60,349,060		—		60,349,060		—
MUNICIPAL BONDS		4,873,603		—		4,873,603		—
SHORT-TERM INVESTMENTS		1,970,333		1,970,333		—		—
TOTAL INVESTMENTS	$	538,370,494	$	1,970,333	$	536,400,161	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy 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, 2015

High Yield Bond Fund

	Par (000)		Value†
ASSET BACKED SECURITIES — 0.2%
Continental Airlines 2012-3 Class C Pass Thru Certificates 6.125%, 04/29/18 (Cost $325,000)	$	325	$	331,500
	Number of Shares		Value†
COMMON STOCKS — 0.5%
Diversified Financial Services — 0.0%
Sentry Holdings A Shares*~		275		264
Entertainment — 0.0%
New Cotai Participation Class B*144A @,^,~		1		30,920
Media — 0.1%
Altice N.V.*		1,372		19,980
Altice N.V.*		4,116		59,268
Liberty Global PLC*		2,300		93,771
Liberty Global PLC LiLAC*		115		4,945
				177,964
Oil & Gas — 0.0%
Hercules Offshore, Inc.*		10,451		22,679
Real Estate — 0.0%
The Howard Hughes Corp.*		600		67,896
Telecommunications — 0.4%
First Data Corp.*		10,500		168,210
NII Holdings, Inc.*		13,299		67,160
T-Mobile US, Inc.*		9,400		367,728
				603,098
TOTAL COMMON STOCKS (Cost $1,096,397)				902,821
PREFERRED STOCKS — 0.7%
Diversified Financial Services — 0.1%
Sentry Holdings B Pref Shrs*~		65,529		71,487
Oil & Gas — 0.1%
WPX Energy, Inc.		7,450		234,153
Packaging and Containers — 0.0%
Smurfit-Stone Container Corp. (Escrow) CONV.*^,~		725		0
Pharmaceuticals — 0.2%
Allergan PLC		337		347,171
Telecommunications — 0.3%
Crown Castle International Corp. CONV.*		3,750		400,462
T-Mobile US, Inc.		1,463		99,060
				499,522
TOTAL PREFERRED STOCKS (Cost $1,188,951)				1,152,333

	Par (000)		Value†
REAL ESTATE INVESTMENT TRUSTS — 0.2%
Commercial Services — 0.1%
Iron Mountain, Inc.	$	6,100	$	164,761
Diversified — 0.1%
American Tower Corp.		1,207		123,428
American Tower Corp.		1,325		133,825
				257,253
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $444,258)				422,014
CORPORATE BONDS — 83.3%
Advertising — 0.9%
Acosta, Inc. 7.750%, 10/01/22 144A @		300		264,750
Lamar Media Corp. 5.875%, 02/01/22		125		131,250
MDC Partners, Inc. 6.750%, 04/01/20 144A @		775		798,250
Outfront Media Capital LLC
5.625%, 02/15/24		225		231,188
5.625%, 02/15/24 144A @,^		175		179,375
				1,604,813
Aerospace & Defense — 0.6%
Accudyne Industries LLC 7.750%, 12/15/20 144A @		350		252,000
StandardAero Aviation Holdings, Inc. 10.000%, 07/15/23 144A @		450		446,625
TransDigm, Inc.
6.500%, 07/15/24		200		198,900
6.500%, 05/15/25 144A @		175		169,531
				1,067,056
Airlines — 1.3%
Air Canada 7.750%, 04/15/21 144A @		350		364,000
American Airlines 2013-1 Class B Pass Through Trust 5.625%, 01/15/21 144A @		66		67,198
American Airlines 2013-1 Class C Pass Through Trust 6.125%, 07/15/18 144A @,^		200		205,250
American Airlines Group Inc 5.500%, 10/01/19 144A @		650		641,875
United Airlines 2014-2 Class B Pass Through Trust 4.625%, 03/03/24		70		69,825
United Continental Holdings, Inc.
6.375%, 06/01/18		325		338,201
6.000%, 12/01/20		600		622,125
				2,308,474
Apparel — 0.4%
Levi Strauss & Co. 6.875%, 05/01/22		200		214,000
QS Wholesale, Inc. 10.000%, 08/01/20 ¤,^		50		2,375

71

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Apparel — (continued)
The William Carter Co. 5.250%, 08/15/21	$	500	$	513,750
				730,125
Auto Manufacturers — 0.4%
Jaguar Land Rover Automotive PLC 5.625%, 02/01/23 144A @		600		606,000
Auto Parts & Equipment — 1.2%
Affinia Group, Inc. 7.750%, 05/01/21		200		203,560
Gestamp Funding Luxembourg S.A. 5.625%, 05/31/20 144A @		300		305,700
MPG Holdco I , Inc. 7.375%, 10/15/22		475		479,750
Nexteer Automotive Group Ltd. 5.875%, 11/15/21 144A @		200		204,000
Omega US Sub LLC 8.750%, 07/15/23 144A @		475		438,187
Schaeffler Holding Finance BV 6.875%, 08/15/18 PIK (Cash coupon 6.875%, PIK 7.625%) 144A @		250		257,500
The Goodyear Tire & Rubber Co. 5.125%, 11/15/23		225		230,625
				2,119,322
Banks — 2.7%
Ally Financial, Inc.
7.500%, 09/15/20		260		294,125
5.750%, 11/20/25		350		354,375
8.000%, 11/01/31		225		259,875
Citigroup, Inc. 5.950%, 12/29/49•		475		473,516
Halyk Savings Bank of Kazakhstan JSC
7.250%, 05/03/17 144A @		100		102,819
7.250%, 01/28/21 144A @		400		410,000
JPMorgan Chase & Co. 5.300%, 12/29/49•		475		473,219
Provident Funding Associates LP 6.750%, 06/15/21 144A @		500		483,750
Sberbank of Russia Via SB Capital S.A. 6.125%, 02/07/22 144A @		400		401,520
Synovus Financial Corp.
5.125%, 06/15/17		600		615,000
7.875%, 02/15/19		300		333,000
The Goldman Sachs Group, Inc. 5.375%, 12/29/49•		475		472,031
				4,673,230
Beverages — 0.3%
Constellation Brands, Inc. 6.000%, 05/01/22		300		330,000
Cott Beverages, Inc. 6.750%, 01/01/20		250		258,125
				588,125

	Par (000)		Value†
Biotechnology — 0.4%
AMAG Pharmaceuticals, Inc. 7.875%, 09/01/23 144A @	$	275	$	242,000
Concordia Healthcare Corp.
9.500%, 10/21/22 144A @		275		270,875
7.000%, 04/15/23 144A @		150		130,125
				643,000
Building Materials — 1.9%
Builders FirstSource, Inc. 7.625%, 06/01/21 144A @		325		342,062
Cemex Finance LLC 9.375%, 10/12/22 144A @		425		447,312
LSF9 Balta Issuer S.A. 7.750%, 09/15/22		325		370,467
Masonite International Corp. 5.625%, 03/15/23 144A @		175		180,688
NCI Building Systems, Inc. 8.250%, 01/15/23 144A @		225		236,250
Norbord, Inc. 6.250%, 04/15/23 144A @		225		222,188
Nortek, Inc. 8.500%, 04/15/21		350		363,160
Pfleiderer GmbH 7.875%, 08/01/19		400		451,221
Reliance Intermediate Holdings LP 6.500%, 04/01/23 144A @		450		468,000
USG Corp. 9.750%, 01/15/18		150		166,875
				3,248,223
Chemicals — 1.7%
Hexion, Inc.
6.625%, 04/15/20		825		641,437
10.000%, 04/15/20		150		123,750
INEOS Group Holdings S.A. 6.125%, 08/15/18 144A @		200		198,000
Kerling PLC 10.625%, 02/01/17 144A @		325		353,549
Platform Specialty Products Corp.
10.375%, 05/01/21 144A @		300		299,250
6.500%, 02/01/22 144A @		225		194,625
PQ Corp. 8.750%, 11/01/18 144A @		475		460,750
Univar USA, Inc. 6.750%, 07/15/23 144A @		575		524,688
WR Grace & Co. 5.125%, 10/01/21 144A @		75		75,750
				2,871,799
Coal — 0.4%
CONSOL Energy, Inc. 8.000%, 04/01/23 144A @		475		315,875
Murray Energy Corp. 11.250%, 04/15/21 144A @		600		109,500
SunCoke Energy Partners LP
7.375%, 02/01/20 144A @		250		155,000

72

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Coal — (continued)
7.375%, 02/01/20 144A @	$	175	$	108,500
7.375%, 02/01/20 144A @		25		15,500
				704,375
Commercial Services — 2.4%
Alliance Data Systems Corp. 5.375%, 08/01/22 144A @		300		285,750
Ashtead Capital, Inc. 6.500%, 07/15/22 144A @		125		130,313
CAR, Inc. 6.125%, 02/04/20 144A @		210		215,879
CEB, Inc. 5.625%, 06/15/23 144A @		475		471,437
Europcar Groupe S.A. 5.750%, 06/15/22 144A @		200		225,502
FTI Consulting, Inc. 6.000%, 11/15/22		325		340,437
H&E Equipment Services, Inc. 7.000%, 09/01/22		150		147,000
Harland Clarke Holdings Corp. 6.875%, 03/01/20 144A @		125		103,750
Iron Mountain Europe PLC 6.125%, 09/15/22 144A @		225		341,316
Laureate Education, Inc. 9.250%, 09/01/19 144A @		435		269,700
Lender Processing Services, Inc. 5.750%, 04/15/23		128		131,840
Loxam SAS 7.000%, 07/23/22 144A @		225		250,633
Monitronics International, Inc. 9.125%, 04/01/20		400		317,000
Safway Group Holding LLC 7.000%, 05/15/18 144A @		250		249,375
Truven Health Analytics, Inc. 10.625%, 06/01/20		100		100,500
United Rentals North America, Inc. 6.125%, 06/15/23		525		536,812
Verisure Holding AB 6.000%, 11/01/22 144A @		100		113,023
				4,230,267
Distribution & Wholesale — 0.5%
American Builders & Contractors Supply Co., Inc. 5.750%, 12/15/23 144A @		150		151,125
Entertainment One Ltd. 6.875%, 12/15/22 144A @		100		146,757
Matalan Finance PLC 6.875%, 06/01/19 144A @		450		553,934
				851,816
Diversified Financial Services — 4.3%
Cantor Commercial Real Estate Co. LP 7.750%, 02/15/18 144A @		275		281,875
Consolidated Energy Finance S.A. 6.750%, 10/15/19 144A @		750		716,963

	Par (000)		Value†
Diversified Financial Services — (continued)
E*TRADE Financial Corp. 5.375%, 11/15/22	$	300	$	314,250
Garfunkelux Holdco 3 S.A. 8.500%, 11/01/22		175		259,276
Icahn Enterprises LP 4.875%, 03/15/19		350		346,850
Jefferies LoanCore LLC 6.875%, 06/01/20 144A @		400		380,000
Ladder Capital Finance Holdings LLLP.
7.375%, 10/01/17		200		199,250
5.875%, 08/01/21 144A @		175		159,250
National Financial Partners Corp. 9.000%, 07/15/21 144A @		100		91,500
Nationstar Mortgage LLC
7.875%, 10/01/20		150		143,550
6.500%, 07/01/21		825		730,125
Navient Corp.
5.000%, 10/26/20		525		460,688
5.875%, 03/25/21		275		244,750
Nord Anglia Education Finance LLC 5.750%, 07/15/22 144A @		175		181,723
Ocwen Financial Corp. 6.625%, 05/15/19		591		520,080
OneMain Financial Holdings, Inc.
6.750%, 12/15/19 144A @		275		278,781
7.250%, 12/15/21 144A @		300		300,750
Outerwall, Inc.
6.000%, 03/15/19		450		400,500
5.875%, 06/15/21		350		287,000
Quicken Loans, Inc. 5.750%, 05/01/25 144A @		650		619,125
Transworld Systems, Inc. 9.500%, 08/15/21 144A @		375		172,500
Walter Investment Management Corp. 7.875%, 12/15/21		475		375,250
				7,464,036
Electric — 1.9%
AES Corp. 5.500%, 03/15/24		500		446,250
Calpine Corp.
5.375%, 01/15/23		300		269,250
5.500%, 02/01/24		275		242,687
Dynegy, Inc. 6.750%, 11/01/19		400		376,000
Energy Future Intermediate Holding Co. LLC 11.750%, 03/01/22 144A @,¤,~		952		916,156
GenOn Energy, Inc. 9.500%, 10/15/18		375		302,936
Infinis PLC 7.000%, 02/15/19 144A @		300		453,319
NRG Energy, Inc. 6.625%, 03/15/23		275		238,563
				3,245,161

73

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Electrical Components & Equipment — 0.1%
Energizer Holdings, Inc. 5.500%, 06/15/25 144A @	$	225	$	211,500
Energy-Alternate Sources — 0.3%
Terraform Global Operating LLC 9.750%, 08/15/22 144A @		425		338,937
Terraform Power Operating LLC
5.875%, 02/01/23 144A @		75		62,063
6.125%, 06/15/25 144A @		225		181,125
				582,125
Engineering & Construction — 0.1%
Swissport Investments S.A. 6.750%, 12/15/21 144A @		100		113,289
Entertainment — 2.3%
AMC Entertainment, Inc. 5.750%, 06/15/25		600		603,000
Eldorado Resorts, Inc. 7.000%, 08/01/23 144A @		200		196,000
Great Canadian Gaming Corp. 6.625%, 07/25/22 144A @		450		319,524
International Game Technology PLC
6.250%, 02/15/22 144A @		600		561,000
6.500%, 02/15/25 144A @		350		307,125
Intralot Finance Luxembourg S.A. 9.750%, 08/15/18 144A @		225		254,398
Peninsula Gaming LLC 8.375%, 02/15/18 144A @		200		203,000
Regal Entertainment Group 5.750%, 03/15/22		750		750,000
Scientific Games International, Inc. 7.000%, 01/01/22 144A @		300		286,500
Shingle Springs Tribal Gaming Authority 9.750%, 09/01/21 144A @		225		229,500
WMG Acquisition Corp. 6.000%, 01/15/21 144A @		188		188,940
				3,898,987
Environmental Control — 0.2%
Clean Harbors, Inc.
5.250%, 08/01/20		125		127,500
5.125%, 06/01/21		175		177,188
Tervita Corp. 10.875%, 02/15/18 144A @		375		86,250
				390,938
Food — 2.0%
Boparan Finance PLC 5.250%, 07/15/19 144A @		300		413,516
Brakes Capital 7.125%, 12/15/18 144A @		125		188,883
Dean Foods Co. 6.500%, 03/15/23 144A @		450		468,000
JBS Investments GmbH 7.750%, 10/28/20 144A @		400		384,000

	Par (000)		Value†
Food — (continued)
JBS USA LLC 5.875%, 07/15/24 144A @	$	375	$	339,375
Minerva Luxembourg S.A.
12.250%, 02/10/22 144A @		200		202,000
7.750%, 01/31/23 144A @		475		446,500
Post Holdings, Inc.
6.750%, 12/01/21 144A @		225		229,500
7.375%, 02/15/22		500		521,250
7.750%, 03/15/24 144A @		125		130,937
8.000%, 07/15/25 144A @		100		106,000
Shearer’s Foods LLC 9.000%, 11/01/19 144A @		75		79,031
				3,508,992
Forest Products & Paper — 0.4%
Cascades, Inc. 5.500%, 07/15/22 144A @		150		145,500
Mercer International, Inc.
7.000%, 12/01/19		375		375,938
7.750%, 12/01/22		200		202,000
				723,438
Gas — 0.0%
NGL Energy Partner LP 5.125%, 07/15/19		75		59,250
Hand & Machine Tools — 0.5%
Apex Tool Group LLC 7.000%, 02/01/21 144A @		800		616,000
Milacron LLC 7.750%, 02/15/21 144A @		325		303,063
				919,063
Healthcare Products — 0.4%
Crimson Merger Sub, Inc. 6.625%, 05/15/22 144A @		250		171,250
Hill-Rom Holdings, Inc. 5.750%, 09/01/23 144A @		150		153,000
Universal Hospital Services, Inc. 7.625%, 08/15/20		375		352,031
				676,281
Healthcare Services — 2.9%
Acadia Healthcare Co., Inc. 5.625%, 02/15/23		200		189,000
Community Health Systems, Inc. 6.875%, 02/01/22		1,175		1,114,781
Ephios Bondco PLC 6.250%, 07/01/22 144A @		375		422,734
Ephios Holdco II PLC 8.250%, 07/01/23 144A @		150		164,643
HCA, Inc.
5.000%, 03/15/24		220		219,450
5.375%, 02/01/25		775		765,313
Holding Medi-Partenaires SAS 7.000%, 05/15/20 144A @		300		345,533

74

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Healthcare Services — (continued)
IASIS Healthcare LLC 8.375%, 05/15/19	$	450	$	414,000
Molina Healthcare, Inc. 5.375%, 11/15/22 144A @		275		275,000
Select Medical Corp. 6.375%, 06/01/21		125		109,375
Tenet Healthcare Corp.
4.012%, 06/15/20 144A @,•		175		170,625
8.125%, 04/01/22		350		349,125
6.750%, 06/15/23		475		440,563
				4,980,142
Holding Companies — 1.0%
Horizon Pharma Financing, Inc. 6.625%, 05/01/23 144A @		250		222,500
HRG Group, Inc.
7.875%, 07/15/19 144A @		125		130,625
7.875%, 07/15/19		250		261,250
7.750%, 01/15/22		275		269,500
James Hardie International Finance Ltd. 5.875%, 02/15/23 144A @		275		280,500
KraussMaffei Group GmbH 8.750%, 12/15/20 144A @		200		233,109
Opal Acquisition, Inc. 8.875%, 12/15/21 144A @		300		249,000
				1,646,484
Home Builders — 0.8%
CalAtlantic Group. Inc. 10.750%, 09/15/16		175		183,750
Shea Homes LP 5.875%, 04/01/23 144A @		200		205,000
Taylor Morrison Communities, Inc. 5.875%, 04/15/23 144A @		250		246,875
William Lyon Homes, Inc.
8.500%, 11/15/20		400		423,000
7.000%, 08/15/22		375		375,938
				1,434,563
Home Furnishings — 0.2%
Tempur Sealy International, Inc. 5.625%, 10/15/23 144A @		250		252,500
Household Products & Wares — 1.0%
Central Garden & Pet Co. 6.125%, 11/15/23		175		176,750
Reynolds Group Issuer, Inc. 8.250%, 02/15/21		650		625,625
Spectrum Brands, Inc.
6.625%, 11/15/22		100		105,500
5.750%, 07/15/25 144A @		450		461,250
The Sun Products Corp. 7.750%, 03/15/21 144A @		425		368,687
				1,737,812

	Par (000)		Value†
Housewares — 0.6%
Bormioli Rocco Holdings S.A. 10.000%, 08/01/18 144A @	$	300	$	340,828
RSI Home Products, Inc. 6.500%, 03/15/23 144A @		450		463,500
The Scotts Miracle-Gro Co. 6.000%, 10/15/23 144A @		200		208,500
				1,012,828
Insurance — 1.2%
CNO Financial Group, Inc. 5.250%, 05/30/25		400		407,000
Hub Holdings LLC PIK (Cash coupon 8.125%, PIK 8.875%) 8.125%, 07/15/19 144A @		275		257,125
HUB International Ltd. 7.875%, 10/01/21 144A @		450		405,000
USI, Inc. 7.750%, 01/15/21 144A @		450		432,000
Wayne Merger Sub LLC 8.250%, 08/01/23 144A @		575		540,500
				2,041,625
Internet — 1.8%
Ancestry.Com Holdings LLC PIK (Cash coupon 9.625%, PIK 10.375%) 9.625%, 10/15/18 144A @		475		467,875
Ancestry.Com Holdings, Inc. 11.000%, 12/15/20		125		133,438
Blue Coat Holdings, Inc. 8.375%, 06/01/23 144A @		425		427,125
Cerved Group SpA 6.375%, 01/15/20 144A @		100		112,051
Equinix, Inc.
5.375%, 01/01/22		275		281,875
5.375%, 04/01/23		325		331,500
5.750%, 01/01/25		150		153,375
Match Group, Inc. 6.750%, 12/15/22 144A @		300		297,000
United Group BV
7.875%, 11/15/20 144A @		100		114,381
7.875%, 11/15/20 144A @		275		314,548
7.875%, 11/15/20		400		457,524
				3,090,692
Investment Companies — 0.1%
NRG Yield Operating LLC 5.375%, 08/15/24		250		207,188
Iron & Steel — 0.7%
ArcelorMittal 10.850%, 06/01/19		275		257,813
Bluescope Steel Finance Ltd. 7.125%, 05/01/18 144A @		350		336,000
Joseph T. Ryerson & Son, Inc.
9.000%, 10/15/17		425		327,250
11.250%, 10/15/18		309		230,205
				1,151,268

75

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Leisure Time — 0.9%
24 Hour Holdings IIII LLC 8.000%, 06/01/22 144A @	$	325	$	264,063
Cirsa Funding Luxembourg S.A.
8.750%, 05/15/18 144A @		230		251,664
5.875%, 05/15/23 144A @		300		308,910
ClubCorp Club Operations, Inc. 8.250%, 12/15/23 144A @		250		245,000
LTF Merger Sub, Inc. 8.500%, 06/15/23 144A @		400		382,000
Sabre GLBL, Inc. 5.375%, 04/15/23 144A @		125		124,375
				1,576,012
Lodging — 1.4%
MGM Resorts International
6.625%, 12/15/21		525		537,469
6.000%, 03/15/23		550		545,875
Playa Resorts Holding BV 8.000%, 08/15/20 144A @		450		456,750
Seminole Hard Rock Entertainment, Inc. 5.875%, 05/15/21 144A @		300		299,250
Station Casinos LLC 7.500%, 03/01/21		150		153,000
Wynn Macau Ltd. 5.250%, 10/15/21 144A @		425		374,000
				2,366,344
Machinery — Construction & Mining — 0.4%
BlueLine Rental Finance Corp. 7.000%, 02/01/19 144A @		225		202,500
Terex Corp. 6.000%, 05/15/21		575		529,000
				731,500
Machinery — Diversified — 0.1%
Gardner Denver, Inc. 6.875%, 08/15/21 144A @		300		229,500
Media — 9.3%
Altice US Finance S.A. 7.750%, 07/15/25 144A @		200		183,000
AMC Networks, Inc. 4.750%, 12/15/22		475		475,000
Arqiva Broadcast Finance PLC 9.500%, 03/31/20 144A @		650		1,034,895
Cable One, Inc. 5.750%, 06/15/22 144A @		175		174,125
CCO Holdings LLC
5.250%, 09/30/22		400		404,000
5.125%, 05/01/23 144A @		675		675,000
5.750%, 09/01/23		275		281,875
5.750%, 01/15/24		600		616,500
CCOH Safari LLC 5.750%, 02/15/26 144A @		625		626,562
Cequel Communications Holdings I LLC
6.375%, 09/15/20 144A @		485		474,087
5.125%, 12/15/21 144A @		325		292,500

	Par (000)		Value†
Media — (continued)
Clear Channel Worldwide Holdings, Inc.
6.500%, 11/15/22	$	50	$	48,250
6.500%, 11/15/22		350		341,250
Cumulus Media Holdings, Inc. 7.750%, 05/01/19		225		75,938
DISH DBS Corp.
6.750%, 06/01/21		500		503,750
5.875%, 07/15/22		250		233,125
LGE HoldCo VI BV 7.125%, 05/15/24 144A @		325		381,522
Mediacom Broadband LLC 6.375%, 04/01/23		450		439,875
MHGE Parent LLC 8.500%, 08/01/19 144A @		125		123,750
Neptune Finco Corp.
10.125%, 01/15/23 144A @		1,175		1,224,937
10.875%, 10/15/25 144A @		325		340,437
Numericable SFR S.A. 6.250%, 05/15/24 144A @		975		940,875
Sinclair Television Group, Inc.
6.375%, 11/01/21		50		51,500
6.125%, 10/01/22		300		306,000
Sirius XM Radio, Inc. 6.000%, 07/15/24 144A @		75		78,375
TEGNA, Inc. 6.375%, 10/15/23		500		527,500
Time, Inc. 5.750%, 04/15/22 144A @		275		251,625
Townsquare Media, Inc. 6.500%, 04/01/23 144A @		361		330,315
Trader Corp 9.875%, 08/15/18 144A @		200		208,000
Tribune Media Co. 5.875%, 07/15/22 144A @		825		825,000
Unitymedia GmbH 6.125%, 01/15/25 144A @		400		395,260
Unitymedia Hessen GmbH & Co. KG 5.000%, 01/15/25 144A @		600		573,000
Univision Communications, Inc.
6.750%, 09/15/22 144A @		492		509,835
5.125%, 02/15/25 144A @		700		665,000
VTR Finance BV 6.875%, 01/15/24 144A @		750		690,000
WideOpenWest Finance LLC
10.250%, 07/15/19		175		165,244
13.375%, 10/15/19		475		444,125
Ziggo Bond Finance BV 5.875%, 01/15/25 144A @		225		208,688
				16,120,720
Mining — 1.0%
Aleris International, Inc.
7.625%, 02/15/18		175		148,750
7.875%, 11/01/20		425		323,850
Eldorado Gold Corp. 6.125%, 12/15/20 144A @		400		350,000

76

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Mining — (continued)
HudBay Minerals, Inc. 9.500%, 10/01/20	$	150	$	109,875
Lundin Mining Corp. 7.500%, 11/01/20 144A @		400		375,000
Novelis, Inc. 8.750%, 12/15/20		175		160,562
Nyrstar Netherlands Holdings BV 8.500%, 09/15/19 144A @		375		330,135
				1,798,172
Miscellaneous Manufacturing — 0.5%
Bombardier, Inc. 7.500%, 03/15/18 144A @		800		780,000
Office & Business Equipment — 0.5%
CDW LLC 6.000%, 08/15/22		275		290,125
Magnolia BC S.A. 9.000%, 08/01/20 144A @		425		491,200
				781,325
Oil & Gas — 6.3%
Chesapeake Energy Corp. 8.000%, 12/15/22 144A @		581		284,690
Concho Resources, Inc.
7.000%, 01/15/21		150		147,750
5.500%, 04/01/23		800		740,000
CrownRock LP
7.125%, 04/15/21 144A @		200		187,500
7.750%, 02/15/23 144A @		575		540,500
Denbury Resources, Inc. 5.500%, 05/01/22		475		157,690
EPL Oil & Gas, Inc. 8.250%, 02/15/18		100		26,500
Gulfport Energy Corp.
7.750%, 11/01/20		175		156,625
6.625%, 05/01/23		385		321,475
Matador Resources Co. 6.875%, 04/15/23		991		921,630
Newfield Exploration Co.
5.750%, 01/30/22		150		132,750
5.625%, 07/01/24		475		404,937
5.375%, 01/01/26		200		165,500
Noble Energy, Inc.
5.875%, 06/01/22		125		118,913
5.875%, 06/01/24		1,050		1,004,729
Pacific Exploration and Production Corp.
5.375%, 01/26/19 144A @		1,125		213,750
5.625%, 01/19/25 144A @		500		100,000
Parsley Energy LLC 7.500%, 02/15/22 144A @		725		692,375
PBF Holding Co. LLC 7.000%, 11/15/23 144A @		175		170,625
Penn Virginia Corp.
7.250%, 04/15/19		500		67,500
8.500%, 05/01/20		450		70,875

	Par (000)		Value†
Oil & Gas — (continued)
Precision Drilling Corp. 6.500%, 12/15/21	$	75	$	57,750
Range Resources Corp. 4.875%, 05/15/25 144A @		475		361,000
Rowan Cos, Inc. 7.875%, 08/01/19		55		54,069
Seven Generations Energy Ltd.
8.250%, 05/15/20 144A @		1,025		922,500
6.750%, 05/01/23 144A @		350		294,000
SM Energy Co.
6.500%, 01/01/23		300		220,500
5.625%, 06/01/25		125		82,500
Transocean, Inc. 6.000%, 03/15/18		175		155,750
Whiting Petroleum Corp. 6.250%, 04/01/23		575		414,000
WPX Energy, Inc.
5.250%, 01/15/17		250		233,750
7.500%, 08/01/20		500		405,000
6.000%, 01/15/22		800		560,000
8.250%, 08/01/23		250		200,000
5.250%, 09/15/24		125		82,500
YPF S.A. 8.875%, 12/19/18 144A @		275		278,094
				10,947,727
Oil & Gas Services — 0.9%
Archrock Partners LP
6.000%, 04/01/21		125		102,813
6.000%, 10/01/22		200		163,000
CGG S.A.
7.750%, 05/15/17^		150		149,625
6.500%, 06/01/21		250		111,250
6.875%, 01/15/22		650		266,500
SESI LLC 7.125%, 12/15/21		750		667,500
Weatherford International Ltd.
9.625%, 03/01/19		150		146,062
6.750%, 09/15/40		25		17,625
				1,624,375
Packaging and Containers — 1.8%
AEP Industries, Inc. 8.250%, 04/15/19		200		205,500
Ardagh Finance Holdings S.A.
PIK 8.375%, 06/15/19 144A @		287		316,727
PIK 8.625%, 06/15/19 144A @		662		645,474
Beverage Packaging Holdings Luxembourg II SA
5.625%, 12/15/16 144A @		225		222,469
6.000%, 06/15/17 144A @		450		435,375
Consolidated Container Co. LLC 10.125%, 07/15/20 144A @		375		307,500
Graphic Packaging International, Inc. 4.750%, 04/15/21		175		178,500

77

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Packaging and Containers — (continued)
SIG Combibloc Holdings S.C.A. 7.750%, 02/15/23 144A @	$	700	$	793,060
				3,104,605
Pharmaceuticals — 2.9%
Capsugel S.A. PIK (Cash coupon 7.000%, PIK 7.75%) 7.000%, 05/15/19 144A @		400		390,000
DPx Holdings BV 7.500%, 02/01/22 144A @		325		316,875
Endo Finance LLC
6.000%, 07/15/23 144A @		475		472,625
6.000%, 02/01/25 144A @		325		320,125
JLL/Delta Dutch Pledgeco BV PIK (Cash coupon 8.750%, PIK 9.500%) 8.750%, 05/01/20 144A @		575		554,875
Valeant Pharmaceuticals International, Inc.
5.375%, 03/15/20 144A @		875		822,500
7.000%, 10/01/20 144A @		75		74,813
6.375%, 10/15/20 144A @		625		603,125
6.750%, 08/15/21 144A @		250		241,250
5.875%, 05/15/23 144A @		1,275		1,137,937
				4,934,125
Pipelines — 1.4%
MPLX LP 4.500%, 07/15/23 144A @		500		447,350
Sabine Pass Liquefaction LLC 6.250%, 03/15/22		875		809,375
Targa Resources Partners LP
5.250%, 05/01/23		50		40,500
4.250%, 11/15/23		1,050		808,500
6.750%, 03/15/24 144A @		375		319,687
				2,425,412
Real Estate — 1.7%
CBRE Services, Inc. 5.000%, 03/15/23		625		628,181
Dupont Fabros Technology LP 5.875%, 09/15/21		775		806,000
Greystar Real Estate Partners LLC 8.250%, 12/01/22 144A @		200		207,500
Iron Mountain, Inc. 6.000%, 10/01/20 144A @		350		369,250
MPT Operating Partnership LP 6.875%, 05/01/21		225		233,437
The Howard Hughes Corp. 6.875%, 10/01/21 144A @		625		637,500
				2,881,868
Retail — 3.3%
Chinos Intermediate Holdings A, Inc. PIK (Cash coupon 7.75%, PIK 8.50%) 7.750%, 05/01/19 144A @		100		25,000
DBP Holding Corp. 7.750%, 10/15/20 144A @		200		110,000

	Par (000)		Value†
Retail — (continued)
Dollar Tree, Inc. 5.750%, 03/01/23 144A @	$	925	$	957,375
Douglas GmbH 6.250%, 07/15/22 144A @		350		399,002
Ferrellgas LP
6.500%, 05/01/21		250		212,500
6.750%, 06/15/23 144A @		150		122,250
Group 1 Automotive, Inc.
5.000%, 06/01/22		175		173,250
5.250%, 12/15/23 144A @		175		173,250
Guitar Center, Inc. 6.500%, 04/15/19 144A @		400		336,000
Kirk Beauty One GmbH 8.750%, 07/15/23 144A @		225		250,878
Neiman Marcus Group Ltd. LLC 8.000%, 10/15/21 144A @		75		55,500
New Look Secured Issuer PLC 6.500%, 07/01/22 144A @		250		364,977
New Look Senior Issuer PLC 8.000%, 07/01/23 144A @		125		178,748
New Red Finance, Inc. 4.625%, 01/15/22 144A @		75		75,188
Penske Automotive Group, Inc. 5.750%, 10/01/22		200		205,500
PF Chang’s China Bistro, Inc. 10.250%, 06/30/20 144A @		175		143,500
Rite Aid Corp.
6.750%, 06/15/21		725		759,437
6.125%, 04/01/23 144A @		475		491,625
Sonic Automotive, Inc.
7.000%, 07/15/22		175		185,062
5.000%, 05/15/23		175		166,250
The Men’s Wearhouse, Inc. 7.000%, 07/01/22		175		124,250
Vista Outdoor, Inc. 5.875%, 10/01/23 144A @		225		230,625
				5,740,167
Semiconductors — 0.8%
Advanced Micro Devices, Inc. 6.750%, 03/01/19		425		308,125
Micron Technology, Inc. 5.250%, 08/01/23 144A @		250		224,375
NXP BV
5.750%, 02/15/21 144A @		200		208,000
5.750%, 03/15/23 144A @		250		258,125
Sensata Technologies UK Financing Co. PLC 6.250%, 02/15/26 144A @		425		442,000
				1,440,625
Software — 1.8%
BCP Singapore VI Cayman Financing Co. Ltd. 8.000%, 04/15/21 144A @		145		115,094
BMC Software, Inc. 7.250%, 06/01/18		225		185,625

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High Yield Bond Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Software — (continued)
First Data Corp.
5.375%, 08/15/23 144A @	$	650	$	653,250
7.000%, 12/01/23 144A @		1,050		1,050,000
MSCI, Inc.
5.250%, 11/15/24 144A @		250		253,750
5.750%, 08/15/25 144A @		275		281,875
Rackspace Hosting, Inc. 6.500%, 01/15/24 144A @		375		361,875
SS&C Technologies Holdings, Inc. 5.875%, 07/15/23 144A @		200		206,500
				3,107,969
Telecommunications — 9.9%
Alcatel-Lucent USA, Inc. 8.875%, 01/01/20 144A @		225		238,500
Altice Financing S.A. 6.625%, 02/15/23 144A @		350		345,625
Altice Finco S.A.
9.875%, 12/15/20 144A @		600		639,000
8.125%, 01/15/24 144A @		400		387,000
Altice Luxembourg S.A.
7.750%, 05/15/22 144A @		400		361,000
7.625%, 02/15/25 144A @		700		603,750
B Communications Ltd. 7.375%, 02/15/21 144A @		500		538,500
CommScope Technologies Finance LLC 6.000%, 06/15/25 144A @		525		505,312
Crown Castle International Corp. 5.250%, 01/15/23		425		446,781
Digicel Group Ltd. 8.250%, 09/30/20 144A @		750		618,750
EarthLink Holdings Corp. 7.375%, 06/01/20		175		178,063
Frontier Communications Corp. 8.875%, 09/15/20 144A @		475		480,938
Hughes Satellite Systems Corp.
6.500%, 06/15/19		304		327,560
7.625%, 06/15/21		325		344,500
Intelsat Jackson Holdings S.A.
7.250%, 10/15/20		200		175,000
7.500%, 04/01/21		500		435,000
6.625%, 12/15/22		475		302,813
Level 3 Communications, Inc. 5.750%, 12/01/22		250		255,625
Level 3 Financing, Inc.
7.000%, 06/01/20		325		339,625
6.125%, 01/15/21		75		77,625
5.625%, 02/01/23		150		153,000
OTE PLC 7.875%, 02/07/18		400		462,958
Sable International Finance Ltd.
8.750%, 02/01/20 144A @		200		209,500
6.875%, 08/01/22 144A @		450		434,250
Sprint Communications, Inc.
7.000%, 08/15/20		250		193,125
11.500%, 11/15/21		1,250		1,150,000

	Par (000)		Value†
Telecommunications — (continued)
T-Mobile USA, Inc.
6.000%, 03/01/23	$	1,350	$	1,366,875
6.500%, 01/15/24		100		102,000
6.375%, 03/01/25		175		176,750
6.500%, 01/15/26		850		858,066
TBG Global Pte Ltd. 5.250%, 02/10/22		200		184,854
UPC Holding BV
6.750%, 03/15/23 144A @		200		234,202
6.750%, 03/15/23 144A @		375		403,604
UPCB Finance VI Ltd. 6.875%, 01/15/22 144A @		203		214,144
VimpelCom Holdings BV
5.200%, 02/13/19 144A @		200		196,050
7.504%, 03/01/22 144A @		250		250,000
Virgin Media Finance PLC
6.375%, 04/15/23 144A @		225		228,375
7.000%, 04/15/23 144A @		275		424,462
6.000%, 10/15/24 144A @		200		199,500
Virgin Media Secured Finance PLC 5.250%, 01/15/26 144A @		200		194,500
Wind Acquisition Finance S.A.
4.750%, 07/15/20 144A @		400		396,000
7.375%, 04/23/21 144A @		1,500		1,417,500
				17,050,682
Textiles — 0.3%
Springs Industries, Inc. 6.250%, 06/01/21		450		445,500
Transportation — 0.2%
OPE KAG Finance Sub, Inc. 7.875%, 07/31/23 144A @		175		173,906
Watco Cos. LLC 6.375%, 04/01/23 144A @		250		246,250
				420,156
TOTAL CORPORATE BONDS (Cost $156,582,780)				144,101,571
LOAN AGREEMENTS — 10.5%‡
Aerospace & Defense — 0.2%
Standard Aero Aviation Holdings, Inc. 5.25%, 07/07/22		274		272,392
Chemicals — 0.6%
MacDermid, Inc. 5.500%, 06/07/20		374		362,186
Solenis International LP
4.250%, 07/31/21•		125		119,308
7.750%, 07/31/22•		675		531,562
				1,013,056
Commercial Services — 0.6%
Kronos, Inc.
4.500%, 10/30/19•		549		538,595
9.750%, 04/30/20		375		371,876

79

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Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
LOAN AGREEMENTS‡ — (continued)
Commercial Services — (continued)
Nord Anglia Education Finance LLC 5.000%, 03/31/21	$	225	$	219,094
				1,129,565
Diversified Financial Services — 0.7%
Onex Wizard Acquisition 4.250%, 03/11/22		820		805,653
Terra-Gen Finance Co., LLC 5.250%, 12/09/21		286		265,766
Vantiv LLC 3.750%, 06/13/21•		232		230,288
				1,301,707
Electric — 0.4%
Energy Future Intermediate Holding Co. LLC 4.250%, 06/19/16		675		671,794
Electronics — 0.2%
Linxens France S.A. 5.000%, 10/14/20		275		267,438
Entertainment — 1.2%
Delta 2 (Lux) S.a.r.l.
4.750%, 07/30/21		925		892,190
7.750%, 07/29/22		200		183,900
Lions Gate Entertainment Co. 5.000%, 03/17/22		375		371,250
Peninsula Gaming LLC 4.250%, 11/20/17•		314		312,491
William Morris Endeavor Entertainment LLC 8.250%, 05/06/22•		300		261,000
				2,020,831
Food — 0.2%
Hostess Brands LLC
4.500%, 08/03/22		249		247,816
8.500%, 08/03/23		162		160,350
				408,166
Hand & Machine Tools — 0.2%
Milacron LLC 4.500%, 09/28/20•		275		270,187
Healthcare Services — 0.3%
Surgery Center Holdings 5.250%, 11/03/20•		273		268,760
US Renal Care, Inc. 4.250%, 12/31/22		275		272,250
				541,010
Insurance — 1.7%
Alliant Holdings I LLC 4.500%, 08/12/22•		274		267,110
AssuredPartners, Inc. 5.750%, 10/21/22		150		148,751
Asurion LLC
5.000%, 05/24/19•		273		255,289
8.500%, 03/03/21		950		805,125
5.000%, 08/04/22•		647		589,836

	Par (000)		Value†
Insurance — (continued)
HUB International Ltd. 4.000%, 10/02/20•	$	274	$	258,187
Sedgwick Claims Management Services, Inc. 6.750%, 02/28/22		375		337,500
USI, Inc. 4.250%, 12/27/19•		349		337,150
				2,998,948
Internet — 0.4%
Ancestry.Com, Inc. 5.000%, 08/29/22		274		271,569
Match Group, Inc. 5.500%, 11/16/22		375		369,844
				641,413
Leisure Time — 0.2%
Life Time Fitness, Inc. 4.250%, 06/10/22•		373		363,099
Machinery — Diversified — 0.4%
Filtration Group, Inc. 4.250%, 11/23/20•		349		338,824
Gardner Denver, Inc. 4.250%, 07/30/20•		494		443,608
				782,432
Media — 0.9%
Acosta, Inc. 4.250%, 09/26/21		175		166,063
CSC Holdings LLC 5.000%, 10/09/22		725		722,963
Cumulus Media Holdings Inc 4.250%, 12/23/20•		200		150,666
IHeartCommunications, Inc. 7.174%, 01/30/19•		600		418,716
McGraw-Hill Global Education Holdings LLC 4.750%, 03/22/19•		166		162,453
				1,620,861
Oil & Gas — 0.3%
Hercules Offshore, Inc. 10.500%, 05/06/20		621		439,030
Packaging and Containers — 0.2%
Berry Plastics Corp. 4.000%, 10/03/22•		292		289,186
Pharmaceuticals — 0.2%
Concordia Healthcare Corp. 5.250%, 10/21/21		325		311,392
Retail — 1.5%
Academy Ltd 5.000%, 07/01/22•		746		718,056
JC Penney Corp. 6.000%, 05/22/18•		855		838,690
Neiman Marcus Group Ltd. LLC 4.250%, 10/25/20		75		66,188

80

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

	Par (000)		Value†
LOAN AGREEMENTS‡ — (continued)
Retail — (continued)
PetSmart, Inc. 4.250%, 03/11/22•	$	373	$	362,771
PF Chang’s China Bistro, Inc. 4.250%, 06/22/19•		473		449,167
The Men’s Wearhouse, Inc. 4.500%, 06/18/21•		274		240,701
				2,675,573
Telecommunications — 0.1%
Level 3 Financing, Inc. 3.500%, 05/31/22•		200		196,650
TOTAL LOAN AGREEMENTS‡ (Cost $19,147,828)				18,214,730
	Number of Shares		Value†
WARRANTS — 0.0%
Sentry Holdings Warrants*~ (Cost $0)		19		18
SHORT-TERM INVESTMENTS — 2.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		1,136,608		1,136,608
T. Rowe Price Reserve Investment Fund		2,654,997		2,654,997
TOTAL SHORT-TERM INVESTMENTS (Cost $3,791,605)				3,791,605
TOTAL INVESTMENTS — 97.6% (Cost $182,576,819)			$	168,916,592
Other Assets & Liabilities — 2.4%				4,116,218
TOTAL NET ASSETS — 100.0%			$	173,032,810

† See Security Valuation Note.

‡ 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, 2015. 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.

144A @ 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, 2015 is 565,170.

• Variable Rate Security.

¤ Defaulted Security.

~ Fair valued security. The total market value of fair valued securities at December 31, 2015 is $1,018,845.

CONV — Convertible Security.

LLC — Limited Liability Company.

LP — Limited Partnership.

PIK — Payment in Kind Security.

PLC — Public Limited Company.

STEP — Step Coupon Bond.

Country Weightings as of 12/31/2015††
United States	72	%
Luxembourg	8
Canada	5
Netherlands	4
United Kingdom	4
Cayman Islands	1
France	2
Other	4
Total	100	%

††% of total investments as of December 31, 2015

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	902,821	$	871,637	$	264	$	30,920
REAL ESTATE INVESTMENT TRUSTS		422,014		422,014		—		—
PREFERRED STOCKS
Diversified Financial Services		71,487		—		71,487		—
Oil & Gas		234,153		234,153		—		—
Pharmaceuticals		347,171		347,171		—		—
Telecommunications		499,522		499,522		—		—
ASSET BACKED SECURITIES		331,500		—		331,500		—
CORPORATE BONDS		144,101,571		—		144,101,571		—
LOAN AGREEMENTS		18,214,730		—		18,214,730		—
SHORT-TERM INVESTMENTS		3,791,605		3,791,605		—		—
WARRANTS		18		—		18		—
TOTAL INVESTMENTS	$	168,916,592	$	6,166,102	$	162,719,570	$	30,920

81

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

High Yield Bond Fund

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 12/31/2014	$	27,838
Change in Appreciation/(Depreciation)		3,082
Balance as of 12/31/2015		30,920

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

Fair Value of Level 2 at 12/31/14 was $1,764,418 which was a result of valuing investments using third-party vendor modeling tools. The Fund did not have any transfers from Level 2 into Level 1 during the reporting period.

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

82

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Flexibly Managed Fund

	Par (000)		Value†
AGENCY OBLIGATION — 0.2%
Banks — 0.2%
KFW 0.500%, 04/19/16 (Cost $6,655,962)	$	6,658	$	6,653,606
ASSET BACKED SECURITIES — 0.2%
Continental Airlines 2009-2 Class A, Pass Through Trust 7.250%, 11/10/19		591		665,861
Continental Airlines 2012-1 Class A, Pass Through Trust 4.150%, 04/11/24		1,938		1,991,364
Continental Airlines 2012-1 Class B, Pass Through Trust 6.250%, 04/11/20		347		364,536
DB Master Finance LLC 2015-1A A21 3.262%, 02/20/45 144A @		1,454		1,438,730
Wendys Funding LLC 2015-1A A21 3.371%, 06/15/45 144A @		2,314		2,257,991
TOTAL ASSET BACKED SECURITIES (Cost $6,656,672)				6,718,482
	Number of Shares		Value†
COMMON STOCKS — 57.3%
Aerospace & Defense — 0.6%
The Boeing Co.		139,700		20,199,223
Agriculture — 1.9%
Altria Group, Inc.		352,800		20,536,488
Philip Morris International, Inc.		470,700		41,379,237
				61,915,725
Auto Parts & Equipment — 1.6%
Johnson Controls, Inc.		1,327,300		52,415,077
Banks — 2.1%
Fifth Third Bancorp		151,100		3,037,110
The Bank of New York Mellon Corp.		1,607,300		66,252,906
				69,290,016
Beverages — 0.8%
PepsiCo, Inc.		207,800		20,763,376
SABMiller PLC		92,008		5,504,322
				26,267,698
Biotechnology — 0.5%
Biogen, Inc.*		53,800		16,481,630
Commercial Services — 0.6%
Capita PLC		238,174		4,237,738
Fleetcor Technologies, Inc.*		115,400		16,494,122
				20,731,860
Computers — 2.7%
Apple, Inc.		445,100		46,851,226
IHS, Inc.*		134,500		15,928,835
NetScout Systems, Inc.*		851,679		26,146,545
				88,926,606

	Number of Shares		Value†
Diversified Financial Services — 2.6%
Affiliated Managers Group, Inc.*		96,000	$	15,336,960
American Express Co.		286,300		19,912,165
BlackRock, Inc.		51,800		17,638,936
Visa, Inc., Class A		431,900		33,493,845
				86,381,906
Electric — 2.7%
Duke Energy Corp.		27,100		1,934,669
PG&E Corp.		1,336,900		71,109,711
Xcel Energy, Inc.		505,100		18,138,141
				91,182,521
Electrical Components & Equipment — 0.7%
AMETEK, Inc.		452,200		24,233,398
Electronics — 6.0%
PerkinElmer, Inc.		699,600		37,477,572
Sensata Technologies Holding NV*		164,900		7,595,294
Thermo Fisher Scientific, Inc.		706,200		100,174,470
Tyco International PLC		1,661,200		52,975,668
				198,223,004
Food — 0.9%
Compass Group PLC		986,663		17,097,218
Mondelez International, Inc., Class A		307,300		13,779,332
				30,876,550
Healthcare Products — 2.4%
Becton Dickinson & Co.		490,334		75,555,566
Henry Schein, Inc.*		22,178		3,508,338
				79,063,904
Healthcare Services — 3.4%
Aetna Inc		447,400		48,372,888
Anthem, Inc.		156,500		21,822,360
UnitedHealth Group, Inc.		355,600		41,832,784
				112,028,032
Insurance — 5.6%
Marsh & McLennan Cos., Inc.		2,639,200		146,343,640
Willis Towers Watson PLC		796,500		38,686,005
				185,029,645
Internet — 1.2%
Alphabet, Inc., Class A*		12,500		9,725,125
Alphabet, Inc., Class C*		42,416		32,188,654
				41,913,779
Machinery — Diversified — 1.6%
IDEX Corp.		289,400		22,170,934
Roper Technologies, Inc.		167,800		31,846,762
				54,017,696
Media — 1.1%
Comcast Corp., Class A		652,700		36,831,861
Miscellaneous Manufacturing — 4.9%
Danaher Corp.		1,444,670		134,180,950

83

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Schedule of Investments — December 31, 2015

Flexibly Managed Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — (continued)
Pentair PLC		604,700	$	29,950,791
				164,131,741
Oil & Gas — 1.0%
Canadian Natural Resources Ltd.		1,486,300		32,445,929
Pharmaceuticals — 3.3%
Abbott Laboratories		971,900		43,648,029
Pfizer, Inc.		806,943		26,048,120
Zoetis, Inc.		807,086		38,675,561
				108,371,710
Retail — 4.0%
AutoZone, Inc.*		90,999		67,513,068
CVS Health Corp.		298,600		29,194,122
Lowe’s Cos., Inc.		431,000		32,773,240
O’Reilly Automotive, Inc.*		14,300		3,623,906
				133,104,336
Semiconductors — 0.2%
Texas Instruments, Inc.		149,500		8,194,095
Software — 4.4%
Fiserv, Inc.*		707,400		64,698,804
Microsoft Corp.		1,240,900		68,845,132
SS&C Technologies Holdings, Inc.		173,000		11,810,710
				145,354,646
Telecommunications — 0.5%
SBA Communications Corp., Class A*		150,600		15,823,542
TOTAL COMMON STOCKS (Cost $1,586,485,478)				1,903,436,130
	Par (000)		Value†
REAL ESTATE INVESTMENT TRUSTS — 3.8%
Commercial Services — 0.8%
Iron Mountain, Inc.		1,006,394		27,182,702
Diversified — 3.0%
American Tower Corp.		828,597		80,332,479
American Tower Corp.		180,218		18,202,018
				98,534,497
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $122,269,351)				125,717,199
	Number of Shares		Value†
PREFERRED STOCKS — 1.7%
Banks — 0.2%
State Street Corp.		86,000		2,285,020
U.S. Bancorp, Series F		71,000		2,037,700
U.S. Bancorp, Series G		90,000		2,413,800
				6,736,520

	Number of Shares		Value†
Diversified Financial Services — 0.1%
The Charles Schwab Corp.		150,000	$	4,039,500
Electric — 0.5%
SCE Trust I		83,775		2,120,345
SCE Trust II		14,730		361,769
SCE Trust III		161,355		4,316,246
SCE Trust IV		340,000		9,234,400
				16,032,760
Pharmaceuticals — 0.8%
Allergan PLC		25,322		26,086,218
Telecommunications — 0.1%
T-Mobile US, Inc.		68,063		4,608,546
TOTAL PREFERRED STOCKS (Cost $53,925,955)				57,503,544
	Par (000)		Value†
CORPORATE BONDS — 17.3%
Advertising — 0.1%
Lamar Media Corp.
5.875%, 02/01/22	$	900		945,000
5.000%, 05/01/23		850		860,625
				1,805,625
Aerospace & Defense — 0.1%
Harris Corp. 1.999%, 04/27/18		1,080		1,067,867
Moog, Inc. 5.250%, 12/01/22 144A @		650		656,500
				1,724,367
Airlines — 0.1%
Continental Airlines 2009-1 Pass Through Trust 9.000%, 07/08/16		683		704,350
Delta Air Lines 2009-1, Class A Pass Through Trust 7.750%, 12/17/19		420		471,474
Delta Air Lines 2011-1, Class A Pass Through Trust 5.300%, 04/15/19		428		452,764
US Airways 2010-1 Class A, Pass Through Trust 6.250%, 04/22/23		1,752		1,962,719
US Airways 2010-1 Class B, Pass Through Trust 8.500%, 04/22/17^		171		180,036
US Airways 2012-2 Class A, Pass Through Trust 4.625%, 06/03/25		245		253,771
US Airways 2012-2 Class B Pass Through Trust 6.750%, 06/03/21^		476		499,377

84

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Airlines — (continued)
US Airways 2013-1 Class A, Pass Through Trust 3.950%, 11/15/25	$	5	$	4,546
US Airways 2013-1 Class B, Pass Through Trust 5.375%, 11/15/21		5		4,690
				4,533,727
Apparel — 0.2%
Hanesbrands, Inc. 6.375%, 12/15/20		4,375		4,528,125
Levi Strauss & Co. 6.875%, 05/01/22		2,175		2,327,250
				6,855,375
Banks — 0.6%
Bank of New York Mellon Corp. 4.950%, 12/29/49 •		5,800		5,684,000
JPMorgan Chase & Co. 5.300%, 12/29/49 •		10,255		10,216,544
Regions Bank 7.500%, 05/15/18		75		83,335
State Street Corp. 5.250%, 12/29/49 •		4,360		4,365,450
Synovus Financial Corp. 5.125%, 06/15/17		105		107,625
				20,456,954
Beverages — 0.0%
PepsiCo, Inc. 1.250%, 04/30/18		1,035		1,031,224
Chemicals — 0.1%
Cytec Industries, Inc. 3.950%, 05/01/25		3,680		3,539,258
Diversified Financial Services — 2.3%
American Honda Finance Corp. 0.950%, 05/05/17		2,200		2,187,185
Caterpillar Financial Services Corp.
1.250%, 11/06/17		2,345		2,335,958
2.250%, 12/01/19		1,155		1,158,074
Ford Motor Credit Co. LLC
2.500%, 01/15/16		2,190		2,190,495
1.561%, 05/09/16•		3,755		3,760,114
4.250%, 02/03/17		1,340		1,369,090
0.956%, 03/27/17•		7,660		7,558,206
1.461%, 03/27/17		10,560		10,459,807
6.625%, 08/15/17		1,675		1,785,346
0.852%, 09/08/17•		4,325		4,264,710
0.902%, 12/06/17•		6,325		6,243,736
1.724%, 12/06/17		2,150		2,116,884
2.145%, 01/09/18		2,960		2,949,051
5.000%, 05/15/18		1,800		1,890,711
2.375%, 03/12/19		4,275		4,214,316
2.597%, 11/04/19		5,350		5,252,833
International Lease Finance Corp. 2.287%, 06/15/16 •		2,905		2,897,738

	Par (000)		Value†
Diversified Financial Services — (continued)
National Rural Utilities Cooperative Finance Corp. 0.950%, 04/24/17	$	1,050	$	1,044,948
Visa, Inc. 1.200%, 12/14/17		11,030		11,017,635
				74,696,837
Electric — 0.1%
Berkshire Hathaway Energy Co. 2.400%, 02/01/20		2,550		2,526,214
CMS Energy Corp.
6.550%, 07/17/17		895		955,722
8.750%, 06/15/19		415		496,147
Otter Tail Corp. 9.000%, 12/15/16^		890		947,850
				4,925,933
Electronics — 0.0%
Amphenol Corp. 1.550%, 09/15/17		920		915,307
Engineering & Construction — 0.1%
SBA Communications Corp. 4.875%, 07/15/22		1,875		1,846,875
Entertainment — 0.1%
Cedar Fair LP 5.250%, 03/15/21		2,575		2,652,250
Six Flags Entertainment Corp. 5.250%, 01/15/21 144A @		400		405,000
				3,057,250
Food — 0.0%
B&G Foods, Inc. 4.625%, 06/01/21		1,525		1,509,750
Gas — 0.1%
Southern California Gas Co. 3.200%, 06/15/25		3,225		3,226,216
Healthcare Products — 0.4%
Becton Dickinson and Co.
1.800%, 12/15/17		3,590		3,584,780
2.675%, 12/15/19		2,175		2,186,841
Medtronic, Inc.
1.500%, 03/15/18		4,025		4,022,666
2.500%, 03/15/20		2,845		2,865,185
				12,659,472
Healthcare Services — 1.4%
Centene Corp. 5.750%, 06/01/17		2,100		2,163,000
Community Health Systems, Inc.
5.125%, 08/15/18		2,300		2,311,500
7.125%, 07/15/20		3,695		3,681,144
5.125%, 08/01/21		1,225		1,218,875
DaVita HealthCare Partners, Inc.
5.750%, 08/15/22		15,165		15,619,950
5.125%, 07/15/24		4,710		4,710,000

85

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Healthcare Services — (continued)
Fresenius Medical Care U.S. Finance II, Inc.
5.625%, 07/31/19 144A @	$	4,175	$	4,498,562
5.875%, 01/31/22 144A @		2,500		2,675,000
HCA, Inc.
8.000%, 10/01/18		4,835		5,409,156
6.500%, 02/15/20		2,125		2,315,188
UnitedHealth Group, Inc. 1.400%, 12/15/17		1,545		1,540,453
Wellcare Health Plans, Inc. 5.750%, 11/15/20		1,800		1,854,000
				47,996,828
Insurance — 0.0%
Marsh & McLennan Cos., Inc. 2.350%, 03/06/20		1,205		1,194,477
Internet — 0.1%
Amazon.com, Inc. 2.600%, 12/05/19		4,155		4,220,159
Lodging — 0.2%
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.625%, 10/15/21		7,750		8,030,938
Machinery — Diversified — 0.5%
Case New Holland Industrial, Inc. 7.875%, 12/01/17		341		360,608
CNH Industrial Capital LLC
6.250%, 11/01/16		5,400		5,501,250
3.250%, 02/01/17		3,225		3,192,750
3.625%, 04/15/18		5,700		5,611,650
Xylem, Inc.
3.550%, 09/20/16		1,300		1,317,741
4.875%, 10/01/21		415		441,122
				16,425,121
Media — 1.1%
CCO Holdings LLC 7.375%, 06/01/20		3,950		4,112,938
CCO Safari II LLC 3.579%, 07/23/20 144A @		2,225		2,211,670
Cequel Communications Holdings I LLC 6.375%, 09/15/20 144A @		3,550		3,470,125
DISH DBS Corp.
7.125%, 02/01/16		8,750		8,777,344
4.625%, 07/15/17		600		612,000
Unitymedia GmbH 6.125%, 01/15/25 144A @		4,275		4,224,341
Unitymedia Hessen GmbH & Co. KG 5.500%, 01/15/23 144A @		4,100		4,089,750
Univision Communications, Inc.
8.500%, 05/15/21 144A @		4,875		4,984,687
6.750%, 09/15/22 144A @		3,419		3,542,939
				36,025,794

	Par (000)		Value†
Oil & Gas — 2.6%
Canadian Natural Resources Ltd. 1.750%, 01/15/18		1,000	$	972,626
Chevron Corp. 1.365%, 03/02/18		4,400		4,364,791
Concho Resources, Inc.
7.000%, 01/15/21		13,265		13,066,025
6.500%, 01/15/22		5,525		5,304,000
5.500%, 10/01/22		2,425		2,206,750
5.500%, 04/01/23		8,400		7,770,000
Diamondback Energy, Inc. 7.625%, 10/01/21		2,850		2,878,500
EQT Corp.
6.500%, 04/01/18		1,620		1,702,708
8.125%, 06/01/19		1,754		1,894,646
4.875%, 11/15/21		8,005		7,621,312
Range Resources Corp.
5.750%, 06/01/21		8,687		6,862,730
5.000%, 08/15/22		12,750		9,530,625
5.000%, 03/15/23		16,750		12,478,750
4.875%, 05/15/25 144A @		4,100		3,116,000
Shell International Finance BV 0. 762%, 05/11/20 •		6,720		6,621,572
				86,391,035
Pharmaceuticals — 0.1%
Eli Lilly & Co. 1.250%, 03/01/18		2,200		2,194,582
Johnson & Johnson 1.125%, 11/21/17		1,360		1,359,687
				3,554,269
Pipelines — 1.4%
Energy Transfer Partners LP
4.150%, 10/01/20		1,925		1,775,799
4.900%, 02/01/24		2,465		2,197,424
MPLX LP
5.500%, 02/15/23 144A @		10,260		8,977,500
4.500%, 07/15/23 144A @		15,500		13,867,850
4.875%, 12/01/24 144A @		1,600		1,436,000
ONEOK Partners LP 2.000%, 10/01/17		830		792,810
Targa Resources Partners LP
5.000%, 01/15/18 144A @		6,400		5,920,000
4.125%, 11/15/19		1,325		1,103,063
6.875%, 02/01/21		5,100		4,615,500
5.250%, 05/01/23		2,775		2,247,750
4.250%, 11/15/23		3,325		2,560,250
				45,493,946
Real Estate — 0.1%
CBRE Services, Inc. 5.000%, 03/15/23		900		904,580
Iron Mountain, Inc.144A @		2,975,000		3,138,625
				4,043,205

86

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Flexibly Managed Fund

	Par (000)		Value†
CORPORATE BONDS — (continued)
Retail — 1.1%
AmeriGas Finance LLC
6.750%, 05/20/20	$	675	$	656,438
7.000%, 05/20/22		1,525		1,475,437
AmeriGas Partners Finance LP 6.250%, 08/20/19		600		576,000
AutoZone, Inc. 2.500%, 04/15/21		1,915		1,868,594
Group 1 Automotive, Inc. 5.000%, 06/01/22		2,050		2,029,500
L Brands, Inc.
6.900%, 07/15/17		2,250		2,407,500
8.500%, 06/15/19		900		1,046,250
7.000%, 05/01/20		900		1,014,750
6.625%, 04/01/21		1,925		2,131,937
5.625%, 10/15/23		2,750		2,915,000
McDonald’s Corp. 2.100%, 12/07/18		505		505,325
Rite Aid Corp.
9.250%, 03/15/20		8,890		9,401,175
6.750%, 06/15/21		7,950		8,327,625
Suburban Propane Partners LP 7.375%, 08/01/21		750		720,000
				35,075,531
Semiconductors — 0.8%
NXP BV
5.750%, 02/15/21 144A @		5,075		5,278,000
5.750%, 03/15/23 144A @		2,150		2,219,875
NXP BV/NXP Funding LLC
3.500%, 09/15/16 144A @		2,275		2,277,844
3.750%, 06/01/18 144A @		16,075		16,155,375
				25,931,094
Software — 0.3%
Fiserv, Inc. 2.700%, 06/01/20		5,175		5,132,058
IMS Health, Inc. 6.000%, 11/01/20 144A @		875		901,250
SS&C Technologies Holdings, Inc. 5.875%, 07/15/23 144A @		2,925		3,020,062
				9,053,370
Telecommunications — 3.3%
Crown Castle International Corp.
4.875%, 04/15/22		5,150		5,343,125
5.250%, 01/15/23		11,240		11,816,050
SBA Communications Corp. 5.625%, 10/01/19		3,175		3,309,938
SBA Telecommunications, Inc. 5.750%, 07/15/20		10,750		11,180,000
T-Mobile USA, Inc.
6.542%, 04/28/20		11,675		12,171,187
6.625%, 11/15/20		5,475		5,691,208
Telesat Canada 6.000%, 05/15/17 144A @		3,420		3,445,650
UPC Holding BV 6.375%, 09/15/22 144A @		2,275		2,625,162

	Par (000)		Value†
Telecommunications — (continued)
UPCB Finance V Ltd. 7.250%, 11/15/21 144A @	$	16,452	$	17,480,250
UPCB Finance VI Ltd. 6.875%, 01/15/22 144A @		22,660		23,963,161
Virgin Media Secured Finance PLC
5.375%, 04/15/21 144A @		5,625		5,807,812
6.000%, 04/15/21 144A @		1,215		1,849,735
5.250%, 01/15/26 144A @		3,450		3,355,125
				108,038,403
TOTAL CORPORATE BONDS (Cost $593,865,117)				574,258,340
LOAN AGREEMENTS — 4.3%‡
Apparel — 0.0%
Hanesbrands, Inc. 3.250%, 04/29/22 •		645		646,467
Beverages — 0.3%
De Master Blenders•
4.250%, 07/02/22		1,714		1,853,380
4.250%, 07/02/22		8,924		8,868,240
				10,721,620
Commercial Services — 0.3%
Kronos, Inc.
4.500%, 10/30/19•		5,437		5,338,689
9.750%, 04/30/20		6,122		6,071,045
				11,409,734
Diversified Financial Services — 0.1%
Hilton Worldwide Finance LLC 3.500%, 10/26/20 •		3,891		3,880,512
Electric — 0.0%
Texas Competitive Electric Holdings Co. LLC 3.750%, 11/07/16 •		1,016		1,005,683
Entertainment — 0.1%
Kasima LLC 3.250%, 05/17/21 •		530		524,886
Peninsula Gaming LLC 4.250%, 11/20/17 •		2,984		2,968,658
				3,493,544
Food — 0.2%
Pinnacle Foods Finance LLC
3.000%, 04/29/20•		4,246		4,171,141
3.000%, 04/29/20•		3,763		3,696,726
				7,867,867
Healthcare Services — 0.9%
Davita Healthcare Partners, Inc. 3.500%, 06/24/21 •		9,435		9,384,150
HCA, Inc. 3.174%, 03/31/17 •		18,796		18,762,122
				28,146,272

87

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Flexibly Managed Fund

	Par (000)			Value†
LOAN AGREEMENTS — (continued)
Holding Companies — 1.1%
Intelsat Jackson Holdings 3.750%, 06/30/19	$	37,396		$	35,286,070
Media — 0.2%
Cequel Communications LLC 3.813%, 02/14/19 •		3,499			3,439,697
Charter Communications Operating LLC
3.000%, 07/01/20•		2,072			2,030,873
3.000%, 01/03/21•		1,446			1,415,285
Univision Communications, Inc. 4.000%, 03/01/20 •		247			241,690
					7,127,545
Semiconductors — 0.1%
NXP BV 3.750%, 12/07/20		2,475			2,460,769
Telecommunications — 1.0%
First Data Corp.
3.918%, 03/23/18•		4,650			4,583,458
3.918%, 09/24/18•		1,100			1,083,500
Telesat Canada
3.000%, 03/28/17•		619			442,699
3.500%, 03/28/19•		5,377			5,280,858
3.250%, 03/28/19•,^		3,647			2,598,250
UPC Financing Partnership 3.250%, 06/30/21 •		19,275			18,895,475
					32,884,240
TOTAL LOAN AGREEMENTS (Cost $149,409,144)					144,930,323
	Number of Shares			Value†
SHORT-TERM INVESTMENTS — 15.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		9,705,846			9,705,846
T. Rowe Price Reserve Investment Fund		491,318,276			491,318,276
TOTAL SHORT-TERM INVESTMENTS (Cost $501,024,122)					501,024,122
TOTAL INVESTMENTS — 99.9% (Cost $3,020,231,801)				$	3,320,241,746
Other Assets & Liabilities — 0.1%					1,954,645
TOTAL NET ASSETS — 100.0%				$	3,322,196,391
	Number of Contracts			Value†
WRITTEN OPTIONS
Call Options
Altria Group, Inc., $55.00, 01/15/2016		(615	)		(218,940	)
American Tower Corp., $105.00, 01/15/2016		(464	)		(2,320	)
American Tower Corp., $110.00, 01/15/2016		(557	)		(2,785	)

	Number of Contracts			Value†
Call Options — (continued)
American Tower Corp., $115.00, 01/15/2016		(291	)	$	(1,455	)
Anthem, Inc., $155.00, 01/15/2016		(10	)		(10	)
Anthem, Inc., $160.00, 01/15/2016		(10	)		(50	)
Apple, Inc., $130.00, 01/20/2017		(1,026	)		(343,710	)
Apple, Inc., $135.00, 01/20/2017		(1,026	)		(256,500	)
Apple, Inc., $140.00, 01/20/2017		(1,026	)		(191,862	)
Bank of New York Mellon Corp., $47.00, 01/20/2017		(1,901	)		(311,764	)
Comcast Corp., $62.50, 01/20/2017		(2,713	)		(743,362	)
Comcast Corp., $65.00, 01/20/2017		(2,712	)		(583,080	)
CVS Health Corp., $110.00, 01/15/2016		(786	)		(786	)
CVS Health Corp., $115.00, 01/15/2016		(237	)		(237	)
CVS Health Corp., $120.00, 01/15/2016		(237	)		(237	)
CVS Health Corp., $90.00, 01/15/2016		(546	)		(468,468	)
CVS Health Corp., $95.00, 01/15/2016		(545	)		(193,475	)
Danaher Corp., $105.00, 01/20/2017		(290	)		(84,100	)
Danaher Corp., $110.00, 01/20/2017		(289	)		(58,956	)
Danaher Corp., $115.00, 01/20/2017		(289	)		(30,345	)
Duke Energy Corp., $70.00, 01/20/2017		(192	)		(88,320	)
Lowe’s Cos, Inc., $60.00, 01/15/2016		(1,364	)		(2,291,520	)
Lowe’s Cos, Inc., $75.00, 01/15/2016		(480	)		(95,040	)
Microsoft Corp., $62.50, 01/20/2017		(1,545	)		(370,800	)
Microsoft Corp., $65.00, 01/20/2017		(1,545	)		(285,825	)
Mondelez International, Inc., $45.00, 01/15/2016		(781	)		(66,385	)
PepsiCo, Inc., $100.00, 01/15/2016		(794	)		(123,070	)
PepsiCo, Inc., $105.00, 01/15/2016		(469	)		(1,876	)
PepsiCo, Inc., $110.00, 01/15/2016		(774	)		(774	)
The Bank of New York Mellon Corp., $45.00, 01/20/2017		(1,900	)		(486,400	)
The Boeing Co., $140.00, 01/15/2016		(62	)		(36,580	)
The Boeing Co., $160.00, 01/20/2017		(270	)		(157,950	)
The Boeing Co., $165.00, 01/20/2017		(269	)		(118,360	)
The Boeing Co., $170.00, 01/20/2017		(269	)		(92,805	)
Thermo Fisher Scientific, Inc., $150.00, 01/15/2016		(578	)		(9,826	)
Thermo Fisher Scientific, Inc., $160.00, 01/20/2017		(202	)		(107,060	)
Thermo Fisher Scientific, Inc., $165.00, 01/20/2017		(201	)		(76,380	)
Thermo Fisher Scientific, Inc., $170.00, 01/20/2017		(201	)		(60,300	)
UnitedHealth Group, Inc., $100.00, 01/15/2016		(431	)		(818,900	)
UnitedHealth Group, Inc., $105.00, 01/15/2016		(430	)		(589,100	)
UnitedHealth Group, Inc., $120.00, 01/15/2016		(233	)		(26,795	)
UnitedHealth Group, Inc., $140.00, 01/20/2017		(146	)		(59,130	)
UnitedHealth Group, Inc., $145.00, 01/20/2017		(146	)		(43,800	)
Visa, Inc., $70.00, 01/15/2016		(708	)		(598,968	)
Visa, Inc., $75.00, 01/15/2016		(1,876	)		(637,840	)
TOTAL WRITTEN OPTIONS (Premiums $(8,944,776))					(10,736,246	)

88

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Flexibly Managed Fund

† See Security Valuation Note.

* Non-income producing security.

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

• Variable Rate Security.

^ Illiquid security. The total market value of illiquid securities at December 31, 2015 is $4,225,513.

‡ 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, 2015. 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.

Country Weightings as of 12/31/2015††
United States	92	%
United Kingdom	3
Netherlands	2
Canada	1
Cayman Islands	1
Germany	1
Total	100	%

††% of total investments as of December 31, 2015

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Aerospace & Defense	$	20,199,223	$	20,199,223	$	—	$	—
Agriculture		61,915,725		61,915,725		—		—
Auto Parts & Equipment		52,415,077		52,415,077		—		—
Banks		69,290,016		69,290,016		—		—
Beverages		26,267,698		20,763,376		5,504,322		—
Biotechnology		16,481,630		16,481,630		—		—

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS (continued)
Commercial Services	$	20,731,860	$	16,494,122	$	4,237,738	$	—
Computers		88,926,606		88,926,606		—		—
Diversified Financial Services		86,381,906		86,381,906		—		—
Electric		91,182,521		91,182,521		—		—
Electrical Components & Equipment		24,233,398		24,233,398		—		—
Electronics		198,223,004		198,223,004		—		—
Food		30,876,550		13,779,332		17,097,218		—
Healthcare Products		79,063,904		79,063,904		—		—
Healthcare Services		112,028,032		112,028,032		—		—
Insurance		185,029,645		185,029,645		—		—
Internet		41,913,779		41,913,779		—		—
Machinery —Diversified		54,017,696		54,017,696		—		—
Media		36,831,861		36,831,861		—		—
Miscellaneous Manufacturing		164,131,741		164,131,741		—		—
Oil & Gas		32,445,929		32,445,929		—		—
Pharmaceuticals		108,371,710		108,371,710		—		—
Retail		133,104,336		133,104,336		—		—
Semiconductors		8,194,095		8,194,095		—		—
Software		145,354,646		145,354,646		—		—
Telecommunications		15,823,542		15,823,542		—		—
REAL ESTATE INVESTMENT TRUSTS		125,717,199		125,717,199		—		—
TOTAL PREFERRED STOCKS		57,503,544		57,503,544		—		—
AGENCY OBLIGATION		6,653,606		—		6,653,606		—
ASSET BACKED SECURITIES		6,718,482		—		6,718,482		—
CORPORATE BONDS		574,258,340		—		574,258,340		—
LOAN AGREEMENTS		144,930,323		—		144,930,323		—
SHORT-TERM INVESTMENTS		501,024,122		501,024,122		—		—
TOTAL INVESTMENTS	$	3,320,241,746	$	2,560,841,717	$	759,400,029	$	—

LIABILITIES TABLE
Description	Total Market Value at 12/31/2015			Level 1 Quoted Price		Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
WRITTEN OPTIONS	$	(10,736,246	)	$	—	$	(10,736,246	)	$	—
TOTAL LIABILITIES	$	(10,736,246	)	$	—	$	(10,736,246	)	$	—

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

Fair Value of Level 2 at 12/31/14 was $97,483,107 which was a result of valuing investments using third-party vendor modeling tools. An amount of $97,483,107 was transferred from Level 2 into Level 1 at 12/31/2015 as a result of using quoted prices in active market for such foreign securities.

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

89

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Balanced Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 59.7%
Penn Series Index 500 Fund* (Cost $20,559,553)		2,833,910	$	45,739,306
AFFILIATED FIXED INCOME FUNDS — 39.8%
Penn Series Quality Bond Fund* (Cost $25,449,559)		2,267,128		30,492,870
SHORT-TERM INVESTMENTS — 0.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $454,818)		454,818		454,818
TOTAL INVESTMENTS — 100.1% (Cost $46,463,930)			$	76,686,994
Other Assets & Liabilities — (0.1)%				(100,374	)
TOTAL NET ASSETS — 100.0%			$	76,586,620

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	45,739,306	$	45,739,306	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		30,492,870		30,492,870		—		—
SHORT-TERM INVESTMENTS		454,818		454,818		—		—
TOTAL INVESTMENTS	$	76,686,994	$	76,686,994	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy 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, 2015

Large Growth Stock Fund

	Number of Shares		Value†
COMMON STOCKS — 96.2%
Aerospace & Defense — 1.6%
The Boeing Co.		33,700	$	4,872,683
Airlines — 2.3%
American Airlines Group, Inc.		122,200		5,175,170
United Continental Holdings, Inc.*		28,900		1,655,970
				6,831,140
Apparel — 2.1%
Hanesbrands, Inc.		99,200		2,919,456
NIKE, Inc., Class B		53,800		3,362,500
				6,281,956
Auto Manufacturers — 1.4%
Ferrari NV*		15,360		737,280
Tesla Motors, Inc.*		14,440		3,465,744
				4,203,024
Auto Parts & Equipment — 1.0%
BorgWarner, Inc.		46,700		2,018,841
Delphi Automotive PLC		12,600		1,080,198
				3,099,039
Banks — 1.6%
Morgan Stanley		94,900		3,018,769
State Street Corp.		26,200		1,738,632
				4,757,401
Biotechnology — 8.9%
Alexion Pharmaceuticals, Inc.*		33,900		6,466,425
Biogen, Inc.*		7,600		2,328,260
Celgene Corp.*		38,400		4,598,784
Gilead Sciences, Inc.		39,200		3,966,648
Illumina, Inc.*		5,300		1,017,308
Incyte Corp.*		21,000		2,277,450
Regeneron Pharmaceuticals, Inc.*		5,400		2,931,498
Vertex Pharmaceuticals, Inc.*		21,300		2,680,179
				26,266,552
Building Materials — 0.4%
Martin Marietta Materials, Inc.		9,600		1,311,168
Chemicals — 0.6%
Ashland, Inc.		17,000		1,745,900
Commercial Services — 3.8%
MasterCard, Inc., Class A		83,200		8,100,352
Mobileye NV		43,400		1,834,952
PayPal Holdings, Inc.*		39,000		1,411,800
				11,347,104
Computers — 2.2%
Apple, Inc.		58,300		6,136,658
IHS, Inc.*		3,100		367,133
				6,503,791
Diversified Financial Services — 4.5%
BlackRock, Inc.		2,200		749,144
Intercontinental Exchange, Inc.		11,600		2,972,616

	Number of Shares		Value†
Diversified Financial Services — (continued)
TD Ameritrade Holding Corp.		39,900	$	1,384,929
Visa, Inc., Class A		104,800		8,127,240
				13,233,929
Healthcare Products — 1.5%
Intuitive Surgical, Inc.*		7,850		4,287,356
Healthcare Services — 4.2%
Anthem, Inc.		27,600		3,848,544
Cigna Corp.		16,000		2,341,280
Humana, Inc.		14,300		2,552,693
UnitedHealth Group, Inc.		30,800		3,623,312
				12,365,829
Internet — 24.9%
Alibaba Group Holding Ltd. ADR*		31,437		2,554,885
Alphabet, Inc., Class A*		13,800		10,736,538
Alphabet, Inc., Class C*		12,940		9,819,907
Amazon.com, Inc.*		31,700		21,425,713
Facebook, Inc., Class A*		81,200		8,498,392
LinkedIn Corp., Class A*		13,300		2,993,564
Netflix, Inc.*		9,300		1,063,734
Tencent Holdings Ltd.		194,800		3,814,181
The Priceline Group, Inc.*		8,100		10,327,095
VeriSign, Inc.*		30,300		2,647,008
				73,881,017
Leisure Time — 0.7%
Royal Caribbean Cruises Ltd.		20,100		2,034,321
Lodging — 2.6%
Hilton Worldwide Holdings, Inc.		55,100		1,179,140
Las Vegas Sands Corp.		25,700		1,126,688
Marriott International, Inc., Class A		29,600		1,984,384
MGM Resorts International*		149,090		3,387,325
				7,677,537
Machinery — Diversified — 2.3%
Flowserve Corp.		30,675		1,290,804
Roper Technologies, Inc.		17,200		3,264,388
Wabtec Corp.		30,000		2,133,600
				6,688,792
Media — 1.5%
The Walt Disney Co.		43,500		4,570,980
Miscellaneous Manufacturing — 2.8%
Danaher Corp.		89,800		8,340,624
Pharmaceuticals — 7.1%
Allergan PLC*		29,513		9,222,813
BioMarin Pharmaceutical, Inc.*		13,900		1,456,164
Bristol-Myers Squibb Co.		49,800		3,425,742
McKesson Corp.		18,100		3,569,863
Valeant Pharmaceuticals International, Inc.*		32,300		3,283,295
				20,957,877

91

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Growth Stock Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — 8.7%
AutoZone, Inc.*		4,500	$	3,338,595
CarMax, Inc.*		34,300		1,851,171
Chipotle Mexican Grill, Inc.*		4,100		1,967,385
Costco Wholesale Corp.		5,300		855,950
CVS Health Corp.		21,800		2,131,386
Lowe’s Cos., Inc.		51,700		3,931,268
Ross Stores, Inc.		36,700		1,974,827
Starbucks Corp.		39,400		2,365,182
The Home Depot, Inc.		10,800		1,428,300
Tractor Supply Co.		30,900		2,641,950
Walgreens Boots Alliance, Inc.		39,500		3,363,623
				25,849,637
Semiconductors — 0.3%
ASML Holding N.V.		9,200		816,684
Software — 6.6%
Akamai Technologies, Inc.*		27,500		1,447,325
Fiserv, Inc.*		22,500		2,057,850
Microsoft Corp.		178,700		9,914,276
NetSuite, Inc.*		15,600		1,320,072
salesforce.com, Inc.*		40,600		3,183,040
ServiceNow, Inc.*		20,100		1,739,856
				19,662,419
Telecommunications — 1.2%
Crown Castle International Corp.		24,600		2,126,670
Palo Alto Networks, Inc.*		7,200		1,268,208
T-Mobile US, Inc.*		7,500		293,400
				3,688,278
Transportation — 1.4%
Canadian Pacific Railway Ltd.		19,200		2,449,920
FedEx Corp.		10,900		1,623,991
				4,073,911
TOTAL COMMON STOCKS (Cost $200,800,430)				285,348,949
PREFERRED STOCKS — 1.3%
Internet — 0.8%
Dropbox. Inc., Class A*~^		24,940		234,463
Flipkart Ltd. Ordinary Shares*^,~		566		80,508
Flipkart Ltd. Series A*^,~		196		27,879
Flipkart Ltd. Series C*^,~		341		48,504
Flipkart Ltd. Series E*^,~		636		90,465
Flipkart Ltd. Series G*^,~		2,888		410,789
Flipkart Ltd. Series H*^,~		2,579		366,837
Livingsocial, Inc., Series F, CONV*^,~		15,066		896
Uber Technologies, Inc. Series G, CONV*^,~		12,545		611,848
Xiaoju Kuaizhi, Inc (didi) CONV*^,~		11,920		364,472
				2,236,661

	Number of Shares		Value†
Lodging — 0.4%
Airbnb, Inc Series E, CONV*^,~		3,694	$	343,890
Airbnb, Inc. Series D*^,~		9,999		930,851
				1,274,741
Real Estate — 0.1%
WeWork Companies, Inc. Class A*~^		923		30,357
WeWork Companies, Inc. Series E*^,~		8,297		272,885
				303,242
TOTAL PREFERRED STOCKS (Cost $3,496,180)				3,814,644
REAL ESTATE INVESTMENT TRUSTS — 1.3%
Diversified — 1.3%
American Tower Corp. (Cost $2,482,845)		39,800	$	3,858,610
SHORT-TERM INVESTMENTS — 2.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares		8,186,244		8,186,244
T. Rowe Price Reserve Investment Fund		1,011		1,011
TOTAL SHORT-TERM INVESTMENTS (Cost $8,187,255)				8,187,255
TOTAL INVESTMENTS — 101.5% (Cost $214,966,710)			$	301,209,458
Other Assets & Liabilities — (1.5)%				(4,506,325	)
TOTAL NET ASSETS — 100.0%			$	296,703,133

† See Security Valuation Note.

* Non-income producing security.

^ Illiquid security. The total market value of illiquid securities at December 31, 2015 is $3,814,644.

~ Fair valued security. The total market value of fair valued securities at December 31, 2015 is $3,814,644.

ADR — American Depository Receipt.

CONV — Convertible Security.

PLC — Public Limited Company.

Country Weightings as of 12/31/2015††
United States	95	%
Canada	2
China	2
Israel	1
Total	100	%

††% of total investments as of December 31, 2015

92

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Growth Stock Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Aerospace & Defense	$	4,872,683	$	4,872,683	$	—	$	—
Airlines		6,831,140		6,831,140		—		—
Apparel		6,281,956		6,281,956		—		—
Auto Manufacturers		4,203,024		4,203,024		—		—
Auto Parts & Equipment		3,099,039		3,099,039		—		—
Banks		4,757,401		4,757,401		—		—
Biotechnology		26,266,552		26,266,552		—		—
Building Materials		1,311,168		1,311,168		—		—
Chemicals		1,745,900		1,745,900		—		—
Commercial Services		11,347,104		11,347,104		—		—
Computers		6,503,791		6,503,791		—		—
Diversified Financial Services		13,233,929		13,233,929		—		—
Healthcare Products		4,287,356		4,287,356		—		—
Healthcare Services		12,365,829		12,365,829		—		—
Internet		73,881,017		70,066,836		3,814,181		—
Leisure Time		2,034,321		2,034,321		—		—
Lodging		7,677,537		7,677,537		—		—
Machinery —Diversified		6,688,792		6,688,792		—		—
Media		4,570,980		4,570,980		—		—
Miscellaneous Manufacturing		8,340,624		8,340,624		—		—
Pharmaceuticals		20,957,877		20,957,877		—		—
Retail		25,849,637		25,849,637		—		—
Semiconductors		816,684		816,684		—		—
Software		19,662,419		19,662,419		—		—
Telecommunications		3,688,278		3,688,278		—		—
Transportation		4,073,911		4,073,911		—		—
REAL ESTATE INVESTMENT TRUSTS
Diversified		3,858,610		3,858,610		—		—
PREFERRED STOCKS		3,814,644		—		—		3,814,644
SHORT-TERM INVESTMENTS		8,187,255		8,187,255		—		—
TOTAL INVESTMENTS	$	301,209,458	$	293,580,633	$	3,814,181	$	3,814,644

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 12/31/2014	$	1,233,258
Purchases		2,150,982
Change in Appreciation/(Depreciation)		430,404
Balance as of 12/31/2015		3,814,644

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

93

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 99.6%
Advertising — 0.4%
Omnicom Group, Inc.		2,214	$	167,511
Aerospace & Defense — 2.3%
United Technologies Corp.		10,241		983,853
Apparel — 4.9%
Burberry Group PLC		20,799		365,940
LVMH Moet Hennessy Louis Vuitton S.E.		4,561		716,401
NIKE, Inc., Class B		6,826		426,625
VF Corp.		10,090		628,103
				2,137,069
Beverages — 2.1%
AMBEV S.A. ADR		49,145		219,187
PepsiCo, Inc.		2,413		241,107
Pernod Ricard S.A.		3,988		454,811
				915,105
Chemicals — 9.7%
Ecolab, Inc.		8,573		980,580
LyondellBasell Industries NV, Class A		6,661		578,841
Monsanto Co.		10,332		1,017,909
PPG Industries, Inc.		6,554		647,666
Praxair, Inc.		5,447		557,773
The Sherwin-Williams Co.		1,779		461,828
				4,244,597
Commercial Services — 4.0%
Equifax, Inc.		4,537		505,286
MasterCard, Inc., Class A		6,680		650,365
Moody’s Corp.		6,004		602,441
				1,758,092
Computers — 10.1%
Accenture PLC, Class A		20,635		2,156,357
Apple, Inc.		9,043		951,866
Cognizant Technology Solutions Corp., Class A*		10,175		610,704
EMC Corp.		26,569		682,292
				4,401,219
Cosmetics & Personal Care — 4.3%
Colgate-Palmolive Co.		22,608		1,506,145
L’Oreal S.A.		2,112		355,251
				1,861,396
Distribution & Wholesale — 2.9%
Fastenal Co.		7,993		326,274
W.W. Grainger, Inc.		4,566		925,026
				1,251,300
Diversified Financial Services — 6.4%
CME Group, Inc.		2,381		215,719
Franklin Resources, Inc.		16,477		606,683
The Charles Schwab Corp.		7,289		240,027
Visa, Inc., Class A		22,622		1,754,336
				2,816,765

	Number of Shares		Value†
Electronics — 7.4%
Amphenol Corp., Class A		6,542	$	341,689
Mettler-Toledo International, Inc.*		2,146		727,773
Thermo Fisher Scientific, Inc.		10,254		1,454,530
Waters Corp.*		5,300		713,274
				3,237,266
Food — 1.4%
Danone S.A.		9,336		630,869
Healthcare Products — 3.2%
DENTSPLY International, Inc.		9,618		585,255
St. Jude Medical, Inc.		3,559		219,840
The Cooper Cos., Inc.		4,384		588,333
				1,393,428
Household Products & Wares — 0.7%
Church & Dwight Co., Inc.		3,743		317,706
Internet — 6.3%
Alphabet, Inc. Class A*		3,538		2,752,599
Media — 4.3%
Discovery Communications, Inc., Class A*		6,992		186,546
The Walt Disney Co.		2,162		227,183
Time Warner, Inc.		9,701		627,364
Twenty-First Century Fox, Inc., Class A		30,257		821,780
				1,862,873
Miscellaneous Manufacturing — 3.1%
Colfax Corp.*		13,513		315,528
Danaher Corp.		11,426		1,061,247
				1,376,775
Oil & Gas Services — 0.5%
Schlumberger Ltd.		3,223		224,804
Pharmaceuticals — 9.5%
Abbott Laboratories		18,768		842,871
Eli Lilly & Co.		6,047		509,520
Express Scripts Holding Co.*		7,873		688,179
Mead Johnson Nutrition Co.		12,705		1,003,060
Roche Holding AG		2,227		617,121
Zoetis, Inc.		10,346		495,780
				4,156,531
Retail — 6.3%
AutoZone, Inc.*		1,101		816,843
CVS Health Corp.		11,378		1,112,427
The TJX Cos., Inc.		11,426		810,218
				2,739,488
Semiconductors — 4.6%
Microchip Technology, Inc.		8,469		394,147
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		28,708		653,107
Texas Instruments, Inc.		17,874		979,674
				2,026,928
Software — 4.5%
Fidelity National Information Services, Inc.		14,206		860,884

94

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Software — (continued)
Fiserv, Inc.*		5,482	$	501,384
Oracle Corp.		16,601		606,434
				1,968,702
Transportation — 0.7%
Union Pacific Corp.		3,937		307,873
TOTAL COMMON STOCKS (Cost $38,711,862)				43,532,749
SHORT-TERM INVESTMENTS — 1.3%
Money Market — 1.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $564,096)		564,096		564,096
TOTAL INVESTMENTS — 100.9% (Cost $39,275,958)			$	44,096,845
Other Assets & Liabilities — (0.9)%				(395,004	)
TOTAL NET ASSETS — 100.0%			$	43,701,841

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 12/31/2015††
United States	86	%
Other	5
France	5
Brazil	1
Switzerland	1
Taiwan	1
United Kingdom	1
Total	100	%

††% of total investments as of December 31, 2015

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	43,532,749	$	40,392,356	$	3,140,393	$	—
SHORT-TERM INVESTMENTS		564,096		564,096		—		—
TOTAL INVESTMENTS	$	44,096,845	$	40,956,452	$	3,140,393	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

95

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Core Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 100.4%
Aerospace & Defense — 0.8%
Harris Corp.		10,190	$	885,511
Agriculture — 1.4%
Reynolds American, Inc.		33,230		1,533,564
Airlines — 1.9%
Delta Air Lines, Inc.		41,860		2,121,883
Apparel — 2.2%
NIKE, Inc., Class B		39,420		2,463,750
Auto Manufacturers — 0.8%
Tesla Motors, Inc.*		3,871		929,079
Auto Parts & Equipment — 1.0%
Delphi Automotive PLC		13,250		1,135,923
Beverages — 3.0%
Constellation Brands, Inc., Class A		13,890		1,978,491
Monster Beverage Corp.*		8,910		1,327,234
				3,305,725
Biotechnology — 6.9%
Alexion Pharmaceuticals, Inc.*		8,790		1,676,692
Celgene Corp.*		15,820		1,894,603
Gilead Sciences, Inc.		8,487		858,800
Regeneron Pharmaceuticals, Inc.*		3,130		1,699,183
Vertex Pharmaceuticals, Inc.*		12,120		1,525,060
				7,654,338
Chemicals — 1.7%
The Sherwin-Williams Co.		7,520		1,952,192
Commercial Services — 4.9%
Aramark		17,060		550,185
McGraw Hill Financial, Inc.		14,660		1,445,183
PayPal Holdings, Inc.*		36,830		1,333,246
Verisk Analytics, Inc., Class A*		27,490		2,113,431
				5,442,045
Computers — 7.2%
Apple, Inc.		60,095		6,325,600
Cognizant Technology Solutions Corp., Class A*		28,580		1,715,371
				8,040,971
Diversified Financial Services — 7.3%
Intercontinental Exchange, Inc.		8,440		2,162,834
The Charles Schwab Corp.		51,710		1,702,810
Visa, Inc., Class A		55,570		4,309,454
				8,175,098
Electrical Components & Equipment — 0.6%
Acuity Brands, Inc.		2,960		692,048
Food — 2.9%
Hormel Foods Corp.		12,560		993,245
The Kroger Co.		54,600		2,283,918
				3,277,163
Healthcare Products — 3.8%
Align Technology, Inc.*		17,350		1,142,498

	Number of Shares		Value†
Healthcare Products — (continued)
Edwards Lifesciences Corp.*		21,500	$	1,698,070
Hologic, Inc.*		36,380		1,407,542
				4,248,110
Healthcare Services — 2.3%
UnitedHealth Group, Inc.		21,840		2,569,258
Home Builders — 0.8%
D.R. Horton, Inc.		26,160		837,905
Internet — 17.4%
Alphabet, Inc. Class A*		8,420		6,550,844
Amazon.com, Inc.*		7,424		5,017,807
Facebook, Inc., Class A*		44,700		4,678,302
Netflix, Inc.*		4,990		570,756
Splunk, Inc.*		21,100		1,240,891
Tencent Holdings Ltd. ADR		71,380		1,400,476
				19,459,076
Miscellaneous Manufacturing — 0.7%
Carlisle Cos., Inc.		8,740		775,151
Pharmaceuticals — 3.9%
Bristol-Myers Squibb Co.		42,190		2,902,250
Shire PLC ADR		3,810		781,050
Zoetis, Inc.		13,047		625,212
				4,308,512
Retail — 14.2%
Chipotle Mexican Grill, Inc.*		1,410		676,589
McDonald’s Corp.		9,830		1,161,316
O’Reilly Automotive, Inc.*		6,660		1,687,777
Starbucks Corp.		45,720		2,744,572
The Home Depot, Inc.		30,460		4,028,335
The TJX Cos., Inc.		28,530		2,023,062
Ulta Salon Cosmetics & Fragrance, Inc.*		7,310		1,352,350
Walgreens Boots Alliance, Inc.		26,050		2,218,288
				15,892,289
Semiconductors — 0.8%
Avago Technologies Ltd.		5,810		843,322
Software — 9.4%
Adobe Systems, Inc.*		21,710		2,039,437
Akamai Technologies, Inc.*		7,300		384,199
Electronic Arts, Inc.*		27,720		1,904,918
Fidelity National Information Services, Inc.		25,760		1,561,056
Salesforce.com, Inc.*		23,625		1,852,200
ServiceNow, Inc.*		17,310		1,498,354
Tableau Software, Inc., Class A*		13,800		1,300,236
				10,540,400
Telecommunications — 4.5%
Level 3 Communications, Inc.*		11,960		650,146
Palo Alto Networks, Inc.*		7,393		1,302,203
SBA Communications Corp., Class A*		15,190		1,596,013
Zayo Group Holdings, Inc.*		55,850		1,485,051
				5,033,413
TOTAL COMMON STOCKS (Cost $89,680,604)				112,116,726

96

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Core Growth Fund

	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 0.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $237,442)		237,442	$	237,442
TOTAL INVESTMENTS — 100.6% (Cost $89,918,046)			$	112,354,168
Other Assets & Liabilities — (0.6)%				(674,496	)
TOTAL NET ASSETS — 100.0%			$	111,679,672

† 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 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
TOTAL COMMON STOCKS	$	112,116,726	$	112,116,726	$	—	$	—
SHORT-TERM INVESTMENTS		237,442		237,442		—		—
TOTAL INVESTMENTS	$	112,354,168	$	112,354,168	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

97

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 97.3%
Advertising — 1.3%
Omnicom Group, Inc.		34,995	$	2,647,722
Aerospace & Defense — 3.2%
Northrop Grumman Corp.		16,601		3,134,435
United Technologies Corp.		36,029		3,461,306
				6,595,741
Agriculture — 1.4%
Philip Morris International, Inc.		33,750		2,966,963
Apparel — 1.2%
Ralph Lauren Corp.		22,519		2,510,418
Auto Manufacturers — 1.1%
General Motors Co.		69,535		2,364,885
Banks — 14.0%
Bank of America Corp.		280,274		4,717,011
Citigroup, Inc.		83,293		4,310,413
Fifth Third Bancorp		191,292		3,844,969
JPMorgan Chase & Co.		99,022		6,538,423
State Street Corp.		29,128		1,932,934
The PNC Financial Services Group, Inc.		33,633		3,205,561
Wells Fargo & Co.		84,510		4,593,964
				29,143,275
Beverages — 1.6%
PepsiCo, Inc.		33,170		3,314,346
Building Materials — 1.6%
Vulcan Materials Co.		35,521		3,373,429
Chemicals — 1.4%
E.I. du Pont de Nemours & Co.		43,947		2,926,870
Computers — 2.3%
Apple, Inc.		22,880		2,408,349
EMC Corp.		92,557		2,376,864
				4,785,213
Diversified Financial Services — 6.1%
American Express Co.		30,239		2,103,122
Ameriprise Financial, Inc.		26,683		2,839,605
Discover Financial Services		63,890		3,425,782
FNF Group		75,068		2,602,608
Legg Mason, Inc.		44,009		1,726,473
				12,697,590
Electric — 3.3%
Calpine Corp.*		119,273		1,725,880
NextEra Energy, Inc.		26,947		2,799,524
PG&E Corp.		45,187		2,403,497
				6,928,901
Electronics — 1.6%
Honeywell International, Inc.		32,013		3,315,586
Food — 1.6%
Mondelez International, Inc., Class A		75,017		3,363,762
Healthcare Products — 1.8%
Medtronic PLC		47,957		3,688,852

	Number of Shares		Value†
Healthcare Services — 2.9%
Humana, Inc.		11,794	$	2,105,347
UnitedHealth Group, Inc.		33,372		3,925,882
				6,031,229
Insurance — 5.9%
American International Group, Inc.		61,241		3,795,105
MetLife, Inc.		64,824		3,125,165
The Travelers Cos., Inc.		26,715		3,015,055
Unum Group		70,888		2,359,861
				12,295,186
Internet — 2.3%
Liberty Interactive Corp. QVC Group, Class A*		84,115		2,298,022
Symantec Corp.		118,115		2,480,415
				4,778,437
Leisure Time — 1.0%
Harley-Davidson, Inc.		44,904		2,038,193
Media — 3.2%
Comcast Corp., Class A		59,763		3,372,426
Liberty Global PLC, Class A*		38,358		1,624,845
Viacom, Inc., Class B		37,659		1,550,044
				6,547,315
Miscellaneous Manufacturing — 3.3%
Eaton Corp. PLC		49,886		2,596,068
Ingersoll-Rand PLC		36,442		2,014,878
Pentair PLC		45,863		2,271,594
				6,882,540
Oil & Gas — 5.7%
Chevron Corp.		34,560		3,109,018
Hess Corp.		42,496		2,060,206
Marathon Oil Corp.		147,010		1,850,856
Royal Dutch Shell PLC ADR, Class A		48,662		2,228,233
Valero Energy Corp.		35,189		2,488,214
				11,736,527
Oil & Gas Services — 2.3%
Halliburton Co.		86,823		2,955,455
National Oilwell Varco, Inc.		51,618		1,728,687
				4,684,142
Packaging and Containers — 1.4%
Sealed Air Corp.		65,260		2,910,596
Pharmaceuticals — 12.4%
AbbVie, Inc.		50,122		2,969,227
Allergan PLC*		10,269		3,209,062
Eli Lilly & Co.		46,728		3,937,301
Express Scripts Holding Co.*		35,904		3,138,369
Merck & Co., Inc.		80,163		4,234,210
Pfizer, Inc.		137,334		4,433,142
Teva Pharmaceutical Industries Ltd. ADR		57,844		3,796,880
				25,718,191

98

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — 3.2%
CVS Health Corp.		30,881	$	3,019,235
Dollar General Corp.		17,774		1,277,418
Lowe’s Cos., Inc.		30,600		2,326,824
				6,623,477
Semiconductors — 1.2%
QUALCOMM, Inc.		48,657		2,432,120
Software — 2.9%
Microsoft Corp.		109,971		6,101,191
Telecommunications — 4.7%
Cisco Systems, Inc.		120,563		3,273,888
Knowles Corp.*		97,877		1,304,700
Verizon Communications, Inc.		61,940		2,862,867
Vodafone Group PLC- ADR		73,837		2,381,982
				9,823,437
Transportation — 1.4%
Norfolk Southern Corp.		33,408		2,825,983
TOTAL COMMON STOCKS (Cost $181,202,062)				202,052,117
REAL ESTATE INVESTMENT TRUSTS — 1.1%
Diversified — 1.1%
Weyerhaeuser Co. (Cost $2,383,487)		79,839		2,393,573
SHORT-TERM INVESTMENTS — 2.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,744,829)		4,744,829		4,744,829
TOTAL INVESTMENTS — 100.7% (Cost $188,330,378)			$	209,190,519
Other Assets & Liabilities — (0.7)%				(1,498,508	)
TOTAL NET ASSETS — 100.0%			$	207,692,011

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 12/31/2015††
United States	94	%
United Kingdom	3
Israel	2
Netherlands	1
Total	100	%

††% of total investments as of December 31, 2015

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	202,052,117	$	202,052,117	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		2,393,573		2,393,573		—		—
SHORT-TERM INVESTMENTS		4,744,829		4,744,829		—		—
TOTAL INVESTMENTS	$	209,190,519	$	209,190,519	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

99

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — 95.5%
Aerospace & Defense — 3.2%
United Technologies Corp.		66,840	$	6,421,319
Agriculture — 2.8%
Altria Group, Inc.		31,908		1,857,365
Reynolds American, Inc.		83,920		3,872,908
				5,730,273
Apparel — 0.8%
Michael Kors Holdings Ltd.*		39,439		1,579,926
Banks — 16.7%
Citigroup, Inc.		98,461		5,095,357
Credit Suisse Group AG ADR		254,169		5,512,925
JPMorgan Chase & Co.		105,420		6,960,882
KeyCorp.		169,798		2,239,636
The Goldman Sachs Group, Inc.		22,884		4,124,383
The PNC Financial Services Group, Inc.		30,486		2,905,621
Wells Fargo & Co.		131,144		7,128,988
				33,967,792
Beverages — 0.9%
Molson Coors Brewing Co., Class B		20,089		1,886,759
Chemicals — 3.4%
PPG Industries, Inc.		41,347		4,085,910
Syngenta AG ADR		36,594		2,881,046
				6,966,956
Diversified Financial Services — 3.2%
Invesco Ltd.		136,536		4,571,226
Synchrony Financial*		62,186		1,891,076
				6,462,302
Electric — 3.9%
NextEra Energy, Inc.		47,407		4,925,113
PG&E Corp.		54,529		2,900,398
				7,825,511
Electrical Components & Equipment — 1.0%
Hubbell, Inc.		20,130		2,033,935
Electronics — 1.4%
Thermo Fisher Scientific, Inc.		20,288		2,877,853
Food — 4.1%
General Mills, Inc.		66,558		3,837,734
The Kroger Co.		109,234		4,569,258
				8,406,992
Gas — 2.4%
Sempra Energy		50,729		4,769,033
Healthcare Products — 3.4%
Medtronic PLC		66,172		5,089,950
Zimmer Biomet Holdings, Inc.		17,421		1,787,221
				6,877,171
Insurance — 8.0%
ACE Ltd.		33,203		3,879,771
Aflac, Inc.		40,862		2,447,634

	Number of Shares		Value†
Insurance — (continued)
American Financial Group, Inc.		22,439	$	1,617,403
Prudential PLC ADR		66,285		2,988,128
Unum Group		34,012		1,132,259
XL Group PLC		105,551		4,135,488
				16,200,683
Internet — 0.6%
Alphabet, Inc.*		1,563		1,186,129
Machinery — Diversified — 0.5%
Rockwell Automation, Inc.		10,042		1,030,410
Miscellaneous Manufacturing — 4.8%
General Electric Co.		314,362		9,792,376
Oil & Gas — 11.1%
Anadarko Petroleum Corp.		45,135		2,192,658
Chevron Corp.		69,443		6,247,092
Devon Energy Corp.		60,172		1,925,504
EOG Resources, Inc.		33,984		2,405,728
Occidental Petroleum Corp.		83,689		5,658,213
Range Resources Corp.		65,602		1,614,465
Royal Dutch Shell PLC ADR, Class A		54,767		2,521,473
				22,565,133
Oil & Gas Services — 1.8%
Schlumberger Ltd.		50,783		3,542,114
Pharmaceuticals — 9.1%
Allergan PLC*		9,957		3,111,562
Eli Lilly & Co.		17,848		1,503,872
Johnson & Johnson		75,355		7,740,466
McKesson Corp.		14,260		2,812,500
Teva Pharmaceutical Industries Ltd. ADR		50,323		3,303,202
				18,471,602
Retail — 1.5%
Target Corp.		24,412		1,772,555
The Home Depot, Inc.		9,268		1,225,693
				2,998,248
Semiconductors — 2.3%
Intel Corp.		90,106		3,104,152
NXP Semiconductors N.V.*		19,076		1,607,153
				4,711,305
Software — 4.6%
Microsoft Corp.		89,682		4,975,557
Oracle Corp.		120,539		4,403,290
				9,378,847
Telecommunications — 2.0%
Verizon Communications, Inc.		88,046		4,069,486
Transportation — 2.0%
C.H. Robinson Worldwide, Inc.		66,480		4,123,090
TOTAL COMMON STOCKS (Cost $181,959,573)				193,875,245

100

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Large Core Value Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — 4.2%
Apartments — 2.6%
Equity Residential		45,047	$	3,675,385
Post Properties, Inc.		27,776		1,643,228
				5,318,613
Strip Centers — 1.6%
Federal Realty Investment Trust		21,383		3,124,056
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $7,598,396)				8,442,669
SHORT-TERM INVESTMENTS — 0.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $193,916)		193,916		193,916
TOTAL INVESTMENTS — 99.8% (Cost $189,751,885)			$	202,511,830
Other Assets & Liabilities — 0.2%				500,273
TOTAL NET ASSETS — 100.0%			$	203,012,103

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 12/31/2015††
United States	82	%
Other	8
Switzerland	4
France	2
Israel	2
United Kingdom	2
Total	100	%

††% of total investments as of December 31, 2015

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	193,875,245	$	193,875,245	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		8,442,669		8,442,669		—		—
SHORT-TERM INVESTMENTS		193,916		193,916		—		—
TOTAL INVESTMENTS	$	202,511,830	$	202,511,830	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

101

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — 98.4%
Advertising — 0.2%
Omnicom Group, Inc.		5,767	$	436,331
The Interpublic Group of Cos., Inc.		10,134		235,920
				672,251
Aerospace & Defense — 2.1%
General Dynamics Corp.		7,197		988,580
Harris Corp.		2,600		225,940
L-3 Communications Holdings, Inc.		1,800		215,118
Lockheed Martin Corp.		6,237		1,354,365
Northrop Grumman Corp.		4,292		810,373
Raytheon Co.		7,076		881,174
Rockwell Collins, Inc.		3,245		299,513
The Boeing Co.		14,921		2,157,427
United Technologies Corp.		19,342		1,858,186
				8,790,676
Agriculture — 1.7%
Altria Group, Inc.		45,878		2,670,559
Archer-Daniels-Midland Co.		14,599		535,491
Philip Morris International, Inc.		36,288		3,190,078
Reynolds American, Inc.		19,354		893,187
				7,289,315
Airlines — 0.7%
American Airlines Group, Inc.		14,600		618,310
Delta Air Lines, Inc.		18,400		932,696
Southwest Airlines Co.		15,317		659,550
United Continental Holdings, Inc.*		9,100		521,430
				2,731,986
Apparel — 0.9%
Coach, Inc.		6,277		205,446
Hanesbrands, Inc.		9,500		279,585
Michael Kors Holdings Ltd.*		4,900		196,294
NIKE, Inc., Class B		31,692		1,980,750
Ralph Lauren Corp.		1,428		159,194
Under Armour, Inc., Class A*		3,900		314,379
VF Corp.		8,132		506,217
				3,641,865
Auto Manufacturers — 0.7%
Ford Motor Co.		90,967		1,281,725
General Motors Co.		33,600		1,142,736
PACCAR, Inc.		8,544		404,986
				2,829,447
Auto Parts & Equipment — 0.4%
BorgWarner, Inc.		5,400		233,442
Delphi Automotive PLC		6,800		582,964
Johnson Controls, Inc.		15,111		596,733
The Goodyear Tire & Rubber Co.		6,106		199,483
				1,612,622
Banks — 7.5%
Bank of America Corp.		245,435		4,130,671
BB&T Corp.		18,599		703,228
Capital One Financial Corp.		12,641		912,427

	Number of Shares		Value†
Banks — (continued)
Citigroup, Inc.		70,581	$	3,652,567
Comerica, Inc.		4,344		181,710
Fifth Third Bancorp		19,446		390,865
Huntington Bancshares, Inc.		19,965		220,813
JPMorgan Chase & Co.		86,764		5,729,027
KeyCorp.		20,699		273,020
M&T Bank Corp.		3,652		442,549
Morgan Stanley		35,563		1,131,259
Northern Trust Corp.		5,247		378,256
Regions Financial Corp.		30,194		289,862
State Street Corp.		9,447		626,903
SunTrust Banks, Inc.		12,388		530,702
The Bank of New York Mellon Corp.		25,780		1,062,652
The Goldman Sachs Group, Inc.		9,443		1,701,912
The PNC Financial Services Group, Inc.		11,983		1,142,100
U.S. Bancorp		38,656		1,649,451
Wells Fargo & Co.		109,537		5,954,431
Zions Bancorporation		4,804		131,149
				31,235,554
Beverages — 2.4%
Brown-Forman Corp., Class B		2,493		247,505
Coca-Cola Enterprises, Inc.		4,828		237,731
Constellation Brands, Inc., Class A		3,923		558,792
Dr. Pepper Snapple Group, Inc.		4,500		419,400
Keurig Green Mountain, Inc.		2,900		260,942
Molson Coors Brewing Co., Class B		3,638		341,681
Monster Beverage Corp.*		3,500		521,360
PepsiCo, Inc.		34,461		3,443,343
The Coca-Cola Co.		91,770		3,942,439
				9,973,193
Biotechnology — 3.2%
Alexion Pharmaceuticals, Inc.*		5,200		991,900
Amgen, Inc.		17,745		2,880,546
Biogen, Inc.*		5,233		1,603,129
Celgene Corp.*		18,456		2,210,291
Gilead Sciences, Inc.		33,898		3,430,139
Illumina, Inc.*		3,400		652,613
Regeneron Pharmaceuticals, Inc.*		1,800		977,166
Vertex Pharmaceuticals, Inc.*		5,700		717,231
				13,463,015
Building Materials — 0.2%
Martin Marietta Materials, Inc.		1,500		204,870
Masco Corp.		8,277		234,239
Vulcan Materials Co.		3,041		288,804
				727,913
Chemicals — 2.1%
Air Products & Chemicals, Inc.		4,521		588,227
Airgas, Inc.		1,600		221,312
CF Industries Holdings, Inc.		5,300		216,293
E.I. du Pont de Nemours & Co.		20,623		1,373,492
Eastman Chemical Co.		3,682		248,572
Ecolab, Inc.		6,333		724,369

102

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Schedule of Investments — December 31, 2015

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Chemicals — (continued)
FMC Corp.		3,100	$	121,303
International Flavors & Fragrances, Inc.		1,875		224,325
LyondellBasell Industries NV, Class A		8,600		747,340
Monsanto Co.		10,237		1,008,549
PPG Industries, Inc.		6,320		624,542
Praxair, Inc.		6,626		678,503
The Dow Chemical Co.		26,979		1,388,879
The Mosaic Co.		7,600		209,684
The Sherwin-Williams Co.		1,834		476,106
				8,851,496
Coal — 0.0%
CONSOL Energy, Inc.		5,776		45,630
Commercial Services — 1.9%
Allegion PLC		2,266		149,375
Alliance Data Systems Corp.*		1,400		387,198
Automatic Data Processing, Inc.		10,843		918,619
Cintas Corp.		1,955		178,003
Equifax, Inc.		2,834		315,622
H&R Block, Inc.		5,266		175,410
MasterCard, Inc., Class A		23,400		2,278,224
McGraw Hill Financial, Inc.		6,486		639,390
Moody’s Corp.		4,173		418,719
Paychex, Inc.		7,775		411,220
PayPal Holdings, Inc.*		26,028		942,213
Quanta Services, Inc.*		3,400		68,850
Robert Half International, Inc.		3,207		151,178
The ADT Corp.		4,134		136,339
The Western Union Co.		12,378		221,690
Total System Services, Inc.		3,977		198,055
United Rentals, Inc.*		2,300		166,842
Verisk Analytics, Inc., Class A*		3,600		276,768
				8,033,715
Computers — 5.4%
Accenture PLC, Class A		14,600		1,525,700
Apple, Inc.		131,282		13,818,743
Cognizant Technology Solutions Corp., Class A*		14,504		870,530
CSRA Inc.		3,357		100,710
EMC Corp.		44,848		1,151,697
Hewlett Packard Enterprise Co.		42,983		653,341
HP, Inc.		42,983		508,919
International Business Machines Corp.		21,158		2,911,764
NetApp, Inc.		7,421		196,879
SanDisk Corp.		4,597		349,326
Seagate Technology PLC		6,900		252,954
Teradata Corp.*		3,516		92,893
Western Digital Corp.		5,100		306,255
				22,739,711
Cosmetics & Personal Care — 1.7%
Colgate-Palmolive Co.		20,970		1,397,021
The Estee Lauder Cos., Inc., Class A		5,374		473,234
The Procter & Gamble Co.		64,094		5,089,705
				6,959,960

	Number of Shares		Value†
Distribution & Wholesale — 0.2%
Fastenal Co.		6,700	$	273,494
Fossil Group, Inc.*		900		32,904
Genuine Parts Co.		3,605		309,633
W.W. Grainger, Inc.		1,472		298,213
				914,244
Diversified Financial Services — 2.8%
Affiliated Managers Group, Inc.*		1,300		207,688
American Express Co.		19,880		1,382,654
Ameriprise Financial, Inc.		4,146		441,217
BlackRock, Inc.		2,999		1,021,220
CME Group, Inc.		8,060		730,236
Discover Financial Services		10,078		540,382
E*TRADE Financial Corp.*		6,481		192,097
Franklin Resources, Inc.		9,156		337,124
Intercontinental Exchange, Inc.		2,570		658,588
Invesco Ltd.		10,367		347,087
Legg Mason, Inc.		2,261		88,699
Nasdaq, Inc.		2,800		162,876
Navient Corp.		9,734		111,454
Synchrony Financial*		19,612		596,401
T. Rowe Price Group, Inc.		5,881		420,433
The Charles Schwab Corp.		27,769		914,433
Visa, Inc., Class A		45,756		3,548,378
				11,700,967
Diversified Operations — 0.0%
Leucadia National Corp.		7,260		126,251
Electric — 2.7%
AES Corp.		16,344		156,412
Ameren Corp.		5,798		250,648
American Electric Power Co., Inc.		11,757		685,080
CMS Energy Corp.		6,707		241,989
Consolidated Edison, Inc.		6,834		439,221
Dominion Resources, Inc.		13,909		940,805
DTE Energy Co.		4,092		328,137
Duke Energy Corp.		15,959		1,139,313
Edison International		7,674		454,378
Entergy Corp.		4,147		283,489
Eversource Energy		7,517		383,893
Exelon Corp.		20,310		564,009
FirstEnergy Corp.		9,956		315,904
NextEra Energy, Inc.		10,685		1,110,065
NRG Energy, Inc.		7,800		91,806
Pepco Holdings, Inc.		5,540		144,095
PG&E Corp.		11,350		603,706
Pinnacle West Capital Corp.		2,569		165,649
PPL Corp.		15,998		546,012
Public Service Enterprise Group, Inc.		11,749		454,569
SCANA Corp.		3,400		205,666
TECO Energy, Inc.		5,923		157,848
The Southern Co.		21,111		987,784
WEC Energy Group, Inc.		7,450		382,259
Xcel Energy, Inc.		11,630		417,633
				11,450,370

103

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Schedule of Investments — December 31, 2015

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electrical Components & Equipment — 0.3%
AMETEK, Inc.		5,800	$	310,822
Emerson Electric Co.		15,676		749,783
				1,060,605
Electronics — 1.3%
Agilent Technologies, Inc.		7,845		327,999
Amphenol Corp., Class A		7,400		386,502
FLIR Systems, Inc.		3,600		101,052
Garmin Ltd.		2,800		104,076
Honeywell International, Inc.		18,208		1,885,802
PerkinElmer, Inc.		2,516		134,782
TE Connectivity Ltd.		9,600		620,256
Thermo Fisher Scientific, Inc.		9,282		1,316,652
Tyco International PLC		10,000		318,900
Waters Corp.*		1,958		263,508
				5,459,529
Engineering & Construction — 0.1%
Fluor Corp.		3,170		149,687
Jacobs Engineering Group, Inc.*		2,983		125,137
				274,824
Environmental Control — 0.2%
Republic Services, Inc.		5,814		255,758
Stericycle, Inc.*		2,000		241,200
Waste Management, Inc.		9,700		517,689
				1,014,647
Food — 1.9%
Campbell Soup Co.		4,516		237,316
ConAgra Foods, Inc.		9,902		417,468
General Mills, Inc.		13,910		802,051
Hormel Foods Corp.		3,100		245,148
Kellogg Co.		6,066		438,390
McCormick & Co., Inc.		2,808		240,252
Mondelez International, Inc., Class A		37,663		1,688,809
Sysco Corp.		12,152		498,232
The Hershey Co.		3,487		311,284
The J.M. Smucker Co.		2,834		349,546
The Kraft Heinz Co.		14,054		1,022,569
The Kroger Co.		22,890		957,489
Tyson Foods, Inc., Class A		6,649		354,591
Whole Foods Market, Inc.		8,386		280,931
				7,844,076
Forest Products & Paper — 0.1%
International Paper Co.		9,967		375,756
Gas — 0.2%
AGL Resources, Inc.		2,600		165,906
CenterPoint Energy, Inc.		10,322		189,512
NiSource, Inc.		7,365		143,691
Sempra Energy		5,398		507,466
				1,006,575

	Number of Shares		Value†
Hand & Machine Tools — 0.1%
Snap-On, Inc.		1,328	$	227,659
Stanley Black & Decker, Inc.		3,640		388,497
				616,156
Healthcare Products — 1.9%
Baxter International, Inc.		12,875		491,181
Becton Dickinson & Co.		4,835		745,025
Boston Scientific Corp.*		31,948		589,121
C.R. Bard, Inc.		1,742		330,005
DENTSPLY International, Inc.		3,200		194,720
Edwards Lifesciences Corp.*		5,000		394,900
Henry Schein, Inc.*		2,000		316,380
Intuitive Surgical, Inc.*		907		495,367
Medtronic PLC		33,097		2,545,821
Patterson Cos., Inc.		1,974		89,245
St. Jude Medical, Inc.		6,830		421,889
Stryker Corp.		7,281		676,696
Varian Medical Systems, Inc.*		2,357		190,446
Zimmer Biomet Holdings, Inc.		4,029		413,335
				7,894,131
Healthcare Services — 1.8%
Aetna Inc		8,193		885,827
Anthem, Inc.		6,195		863,831
Cigna Corp.		6,094		891,735
DaVita HealthCare Partners, Inc.*		3,998		278,701
HCA Holdings, Inc.*		7,200		486,936
Humana, Inc.		3,510		626,570
Laboratory Corp. of America Holdings*		2,377		293,892
Quest Diagnostics, Inc.		3,387		240,951
Tenet Healthcare Corp.*		2,343		70,993
UnitedHealth Group, Inc.		22,341		2,628,195
Universal Health Services, Inc., Class B		2,200		262,878
				7,530,509
Home Builders — 0.1%
D.R. Horton, Inc.		7,376		236,253
Lennar Corp., Class A		4,036		197,401
PulteGroup, Inc.		8,034		143,166
				576,820
Home Furnishings — 0.1%
Harman International Industries, Inc.		1,738		163,737
Whirlpool Corp.		1,869		274,500
				438,237
Household Products & Wares — 0.4%
Avery Dennison Corp.		2,183		136,787
Church & Dwight Co., Inc.		3,100		263,128
Kimberly-Clark Corp.		8,487		1,080,395
The Clorox Co.		2,997		380,109
				1,860,419
Housewares — 0.1%
Newell Rubbermaid, Inc.		6,317		278,453

104

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Schedule of Investments — December 31, 2015

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Insurance — 4.1%
Aflac, Inc.		10,000	$	599,000
American International Group, Inc.		29,085		1,802,397
Aon PLC		6,444		594,201
Assurant, Inc.		1,673		134,743
Berkshire Hathaway, Inc., Class B*		43,950		5,803,158
Chubb, Ltd		7,500		876,375
Cincinnati Financial Corp.		3,692		218,456
Lincoln National Corp.		6,173		310,255
Loews Corp.		7,125		273,600
Marsh & McLennan Cos., Inc.		12,309		682,534
MetLife, Inc.		26,385		1,272,021
Principal Financial Group, Inc.		6,465		290,796
Prudential Financial, Inc.		10,730		873,529
The Allstate Corp.		9,276		575,947
The Chubb Corp.		5,251		696,493
The Hartford Financial Services Group, Inc.		10,057		437,077
The Progressive Corp.		12,956		412,001
The Travelers Cos., Inc.		7,231		816,091
Torchmark Corp.		2,552		145,872
Unum Group		6,076		202,270
Willis Towers Watson PLC		100		4,857
XL Group PLC		6,849		268,344
				17,290,017
Internet — 6.7%
Alphabet, Inc., Class A*		6,825		5,309,918
Alphabet, Inc., Class C*		7,043		5,344,792
Amazon.com, Inc.*		9,075		6,133,702
eBay, Inc.*		26,028		715,250
Equinix, Inc.		1,435		433,944
Expedia, Inc.		2,794		347,294
F5 Networks, Inc.*		1,800		174,528
Facebook, Inc., Class A*		53,500		5,599,310
Netflix, Inc.*		9,800		1,120,924
Symantec Corp.		16,638		349,398
The Priceline Group, Inc.*		1,157		1,475,117
TripAdvisor, Inc.*		2,594		221,139
VeriSign, Inc.*		2,209		192,978
Yahoo!, Inc.*		20,017		665,765
				28,084,059
Iron & Steel — 0.1%
Nucor Corp.		7,735		311,721
Leisure Time — 0.3%
Carnival Corp.		10,945		596,284
Harley-Davidson, Inc.		4,728		214,604
Royal Caribbean Cruises Ltd.		4,000		404,840
				1,215,728
Lodging — 0.2%
Marriott International, Inc., Class A		4,785		320,786
Starwood Hotels & Resorts Worldwide, Inc.		3,852		266,867
Wyndham Worldwide Corp.		2,860		207,779
Wynn Resorts Ltd.		1,930		133,537
				928,969

	Number of Shares		Value†
Machinery — Construction & Mining — 0.2%
Caterpillar, Inc.		14,328	$	973,731
Machinery — Diversified — 0.5%
Cummins, Inc.		3,974		349,752
Deere & Co.		7,432		566,839
Flowserve Corp.		3,300		138,864
Rockwell Automation, Inc.		3,271		335,637
Roper Technologies, Inc.		2,400		455,496
Xylem, Inc.		4,154		151,621
				1,998,209
Media — 3.0%
Cablevision Systems Corp., Class A		5,000		159,500
CBS Corp., Class B		10,254		483,271
Comcast Corp., Class A		57,534		3,246,644
Discovery Communications, Inc., Class C*		6,500		163,930
Discovery Communications, Inc., Class A*		3,500		93,380
News Corp., Class A		9,115		121,776
Nielsen Holdings PLC		8,400		391,440
Scripps Networks Interactive, Inc., Class A		2,056		113,512
TEGNA, Inc.		5,374		137,144
The Walt Disney Co.		35,776		3,759,342
Time Warner Cable, Inc.		6,596		1,224,152
Time Warner, Inc.		19,004		1,228,989
Twenty-First Century Fox, Inc., Class A		30,960		840,873
Twenty-First Century Fox, Inc., Class B		10,100		275,023
Viacom, Inc., Class B		7,981		328,498
				12,567,474
Metal Fabricate/Hardware — 0.2%
Precision Castparts Corp.		3,225		748,232
Mining — 0.2%
Alcoa, Inc.		28,348		279,795
Freeport-McMoRan, Inc.		24,496		165,838
Newmont Mining Corp.		12,383		222,770
				668,403
Miscellaneous Manufacturing — 3.1%
3M Co.		14,580		2,196,331
Danaher Corp.		13,868		1,288,060
Dover Corp.		3,805		233,285
Eaton Corp. PLC		10,806		562,344
General Electric Co.		222,274		6,923,835
Illinois Tool Works, Inc.		7,619		706,129
Ingersoll-Rand PLC		6,100		337,269
Leggett & Platt, Inc.		3,354		140,935
Parker-Hannifin Corp.		3,181		308,493
Pentair PLC		4,019		199,061
Textron, Inc.		6,576		276,258
				13,172,000
Office & Business Equipment — 0.1%
Pitney Bowes, Inc.		5,161		106,575
Xerox Corp.		22,855		242,948
				349,523

105

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Schedule of Investments — December 31, 2015

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Oil & Gas — 5.2%
Anadarko Petroleum Corp.		11,959	$	580,968
Apache Corp.		9,023		401,253
Cabot Oil & Gas Corp.		10,088		178,457
Chesapeake Energy Corp.		12,410		55,845
Chevron Corp.		44,070		3,964,537
Cimarex Energy Co.		2,100		187,698
ConocoPhillips		28,780		1,343,738
Devon Energy Corp.		9,229		295,328
Diamond Offshore Drilling, Inc.		1,600		33,760
Ensco PLC, Class A		5,800		89,262
EOG Resources, Inc.		12,916		914,324
EQT Corp.		3,600		187,668
Exxon Mobil Corp.		98,065		7,644,167
Helmerich & Payne, Inc.		2,700		144,585
Hess Corp.		5,497		266,495
Marathon Oil Corp.		15,951		200,823
Marathon Petroleum Corp.		12,750		660,960
Murphy Oil Corp.		3,917		87,937
Newfield Exploration Co.*		4,100		133,496
Noble Energy, Inc.		10,138		333,844
Occidental Petroleum Corp.		17,858		1,207,379
Phillips 66		11,140		911,252
Pioneer Natural Resources Co.		3,600		451,368
Range Resources Corp.		3,923		96,545
Southwestern Energy Co.*		8,490		60,364
Tesoro Corp.		2,794		294,404
Valero Energy Corp.		11,840		837,206
				21,563,663
Oil & Gas Services — 1.0%
Baker Hughes, Inc.		10,228		472,022
Cameron International Corp.*		4,370		276,184
FMC Technologies, Inc.*		5,700		165,357
Halliburton Co.		20,269		689,957
National Oilwell Varco, Inc.		9,023		302,180
Schlumberger Ltd.		29,659		2,068,715
Transocean Ltd.		8,300		102,754
				4,077,169
Packaging and Containers — 0.2%
Ball Corp.		3,226		234,627
Owens-Illinois, Inc.*		4,000		69,680
Sealed Air Corp.		5,033		224,472
WestRock Co.		6,246		284,942
				813,721
Pharmaceuticals — 7.8%
Abbott Laboratories		34,796		1,562,688
AbbVie, Inc.		38,696		2,292,351
Allergan PLC*		9,213		2,879,063
AmerisourceBergen Corp.		4,700		487,437
Baxalta, Inc.		12,875		502,511
Bristol-Myers Squibb Co.		38,997		2,682,604
Cardinal Health, Inc.		7,582		676,845
Eli Lilly & Co.		22,854		1,925,678
Endo International PLC*		5,000		306,100

	Number of Shares		Value†
Pharmaceuticals — (continued)
Express Scripts Holding Co.*		15,764	$	1,377,931
Johnson & Johnson		64,941		6,670,740
Mallinckrodt PLC*		2,700		201,501
McKesson Corp.		5,525		1,089,696
Mead Johnson Nutrition Co.		4,768		376,434
Merck & Co., Inc.		66,013		3,486,807
Mylan NV*		9,956		538,321
Perrigo Co. PLC		3,400		491,980
Pfizer, Inc.		144,605		4,667,849
Zoetis, Inc.		10,907		522,663
				32,739,199
Pipelines — 0.4%
Columbia Pipeline Group, Inc.		7,365		147,300
Kinder Morgan, Inc.		41,736		622,701
ONEOK, Inc.		4,800		118,368
Spectra Energy Corp.		15,784		377,869
The Williams Cos., Inc.		16,034		412,074
				1,678,312
Real Estate — 0.1%
CBRE Group, Inc., Class A*		6,401		221,347
Retail — 6.7%
Advance Auto Parts, Inc.		1,700		255,867
AutoNation, Inc.*		1,719		102,556
AutoZone, Inc.*		741		549,755
Bed Bath & Beyond, Inc.*		3,866		186,534
Best Buy Co., Inc.		7,168		218,266
CarMax, Inc.*		4,800		259,056
Chipotle Mexican Grill, Inc.*		700		335,895
Costco Wholesale Corp.		10,377		1,675,885
CVS Health Corp.		26,067		2,548,571
Darden Restaurants, Inc.		2,540		161,646
Dollar General Corp.		7,000		503,090
Dollar Tree, Inc.*		5,454		421,158
GameStop Corp., Class A		2,664		74,699
Kohl’s Corp.		4,501		214,383
L Brands, Inc.		5,760		551,923
Lowe’s Cos., Inc.		21,640		1,645,506
Macy’s, Inc.		7,627		266,792
McDonald’s Corp.		21,578		2,549,225
Nordstrom, Inc.		3,337		166,216
O’Reilly Automotive, Inc.*		2,300		582,866
PVH Corp.		1,900		139,935
Ross Stores, Inc.		9,800		527,338
Signet Jewelers Ltd.		1,900		235,011
Staples, Inc.		15,637		148,082
Starbucks Corp.		34,688		2,082,321
Target Corp.		14,632		1,062,430
The Gap, Inc.		5,282		130,465
The Home Depot, Inc.		30,104		3,981,254
The TJX Cos., Inc.		15,718		1,114,563
Tiffany & Co.		2,764		210,866
Tractor Supply Co.		3,300		282,150
Urban Outfitters, Inc.*		2,500		56,875

106

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Index 500 Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
Wal-Mart Stores, Inc.		36,947	$	2,264,851
Walgreens Boots Alliance, Inc.		20,479		1,743,889
Yum! Brands, Inc.		10,069		735,540
				27,985,459
Savings & Loans — 0.0%
People’s United Financial, Inc.		7,700		124,355
Semiconductors — 2.9%
Analog Devices, Inc.		7,376		408,040
Applied Materials, Inc.		27,621		515,684
Avago Technologies Ltd.		6,000		870,900
Broadcom Corp., Class A		12,908		746,341
First Solar, Inc.*		1,800		118,782
Intel Corp.		111,375		3,836,869
KLA-Tencor Corp.		3,827		265,402
Lam Research Corp.		3,859		306,482
Linear Technology Corp.		5,541		235,326
Microchip Technology, Inc.		5,018		233,538
Micron Technology, Inc.*		25,686		363,714
NVIDIA Corp.		11,754		387,412
Qorvo, Inc.*		3,500		178,150
QUALCOMM, Inc.		35,399		1,769,419
Skyworks Solutions, Inc.		4,500		345,735
Texas Instruments, Inc.		23,893		1,309,575
Xilinx, Inc.		6,364		298,917
				12,190,286
Software — 4.7%
Activision Blizzard, Inc.		11,900		460,649
Adobe Systems, Inc.*		11,605		1,090,174
Akamai Technologies, Inc.*		4,160		218,941
Autodesk, Inc.*		5,281		321,771
CA, Inc.		7,639		218,170
Cerner Corp.*		7,000		421,190
Citrix Systems, Inc.*		3,791		286,789
Electronic Arts, Inc.*		7,430		510,590
Fidelity National Information Services, Inc.		6,659		403,535
Fiserv, Inc.*		5,414		495,164
Intuit, Inc.		6,392		616,828
Microsoft Corp.		188,115		10,436,620
Oracle Corp.		76,217		2,784,207
RedHat, Inc.*		4,200		347,802
salesforce.com, Inc.*		14,700		1,152,480
The Dun & Bradstreet Corp.		900		93,537
				19,858,447
Telecommunications — 3.6%
AT&T, Inc.		144,193		4,961,681
CenturyLink, Inc.		13,326		335,282
Cisco Systems, Inc.		119,180		3,236,333
Corning, Inc.		28,315		517,598
Crown Castle International Corp.		8,000		691,600
Frontier Communications Corp.		25,072		117,086
Juniper Networks, Inc.		7,971		220,000
Level 3 Communications, Inc.*		6,600		358,776

	Number of Shares		Value†
Telecommunications — (continued)
Motorola Solutions, Inc.		3,488	$	238,754
Verizon Communications, Inc.		95,276		4,403,657
				15,080,767
Textiles — 0.1%
Mohawk Industries, Inc.*		1,500		284,085
Toys, Games & Hobbies — 0.1%
Hasbro, Inc.		2,612		175,944
Mattel, Inc.		8,281		224,995
				400,939
Transportation — 1.5%
C.H. Robinson Worldwide, Inc.		3,439		213,287
CSX Corp.		23,366		606,348
Expeditors International of Washington, Inc.		4,573		206,242
FedEx Corp.		6,066		903,773
J.B. Hunt Transport Services, Inc.		2,200		161,392
Kansas City Southern		2,700		201,609
Norfolk Southern Corp.		6,952		588,070
Ryder System, Inc.		1,125		63,934
Union Pacific Corp.		20,320		1,589,024
United Parcel Service, Inc., Class B		16,274		1,566,047
				6,099,726
TOTAL COMMON STOCKS (Cost $245,318,077)				411,446,459
REAL ESTATE INVESTMENT TRUSTS — 2.4%
Apartments — 0.4%
Apartment Investment & Management Co., Class A		3,662		146,590
AvalonBay Communities, Inc.		3,192		587,743
Equity Residential		8,592		701,021
Essex Property Trust, Inc.		1,500		359,115
				1,794,469
Building & Real Estate — 0.1%
Realty Income Corp.		5,400		278,802
Commercial Services — 0.0%
Iron Mountain, Inc.		4,697		126,866
Diversified — 0.4%
American Tower Corp.		10,059		975,220
Plum Creek Timber Co., Inc.		4,047		193,123
Vornado Realty Trust		4,087		408,537
Weyerhaeuser Co.		11,726		351,545
				1,928,425
Healthcare — 0.3%
HCP, Inc.		10,840		414,521
Ventas, Inc.		7,653		431,859
Welltower, Inc.		8,100		551,043
				1,397,423
Hotels & Resorts — 0.1%
Host Hotels & Resorts, Inc.		17,676		271,150

107

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Index 500 Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Industrial — 0.1%
Prologis, Inc.		11,899	$	510,705
Office Property — 0.2%
Boston Properties, Inc.		3,642		464,501
SL Green Realty Corp.		2,300		259,854
				724,355
Regional Malls — 0.5%
General Growth Properties, Inc.		13,400		364,614
Simon Property Group, Inc.		7,328		1,424,856
The Macerich Co.		3,100		250,139
				2,039,609
Storage & Warehousing — 0.2%
Public Storage		3,416		846,143
Strip Centers — 0.1%
Kimco Realty Corp.		9,564		253,064
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $6,926,447)				10,171,011
	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U.S. Treasury Bills¤
0.030%, 02/04/161	$	60		59,995
0.031%, 03/10/161		375		374,919
TOTAL U.S. TREASURY OBLIGATIONS (Cost $434,978)				434,914
	Number of Shares		Value†
SHORT-TERM INVESTMENTS — 1.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $3,935,887)		3,935,887		3,935,887
TOTAL INVESTMENTS — 101.9% (Cost $256,615,390)			$	425,988,271
Other Assets & Liabilities — (1.9)%				(8,023,340	)
TOTAL NET ASSETS — 100.0%			$	417,964,931

† See Security Valuation Note.

* Non-income producing security.

¤ Zero Coupon Bond. The interest rate disclosed represents the effective yield from the date of acquisition to maturity.

¹  All or portion of securities segregated as collateral for futures contracts.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	411,446,459	$	411,446,459	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		10,171,011		10,171,011		—		—
U.S. TREASURY OBLIGATIONS		434,914		—		434,914		—
SHORT-TERM INVESTMENTS		3,935,887		3,935,887		—		—
TOTAL INVESTMENTS	$	425,988,271	$	425,553,357	$	434,914	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

108

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Mid Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 98.5%
Apparel — 3.4%
Burberry Group PLC		58,974	$	1,037,596
Ralph Lauren Corp.		16,772		1,869,743
Under Armour, Inc., Class A*		11,221		904,525
				3,811,864
Auto Parts & Equipment — 1.6%
BorgWarner, Inc.		40,179		1,736,938
Banks — 8.1%
First Republic Bank		35,431		2,340,572
Northern Trust Corp.		45,480		3,278,653
Signature Bank*		17,573		2,695,171
UMB Financial Corp.		16,404		763,606
				9,078,002
Beverages — 0.6%
Brown-Forman Corp., Class B		6,174		612,955
Building Materials — 2.6%
Fortune Brands Home & Security, Inc.		53,008		2,941,944
Chemicals — 1.7%
The Valspar Corp.		23,243		1,928,007
Commercial Services — 7.6%
Alliance Data Systems Corp.*		6,029		1,667,441
CoStar Group, Inc.*		13,918		2,876,711
Towers Watson & Co., Class A		16,753		2,152,090
Verisk Analytics, Inc., Class A*		23,296		1,790,997
				8,487,239
Computers — 0.9%
Teradata Corp.*		38,536		1,018,121
Distribution & Wholesale — 2.7%
Fastenal Co.		73,000		2,979,860
Diversified Financial Services — 3.9%
CME Group, Inc.		31,750		2,876,550
Ellie Mae, Inc.*		8,910		536,649
Oaktree Capital Group LLC		20,391		973,059
				4,386,258
Electrical Components & Equipment — 0.6%
Generac Holdings, Inc.*		20,201		601,384
Electronics — 1.0%
Trimble Navigation Ltd.*		20,938		449,120
Woodward, Inc.		14,037		697,078
				1,146,198
Food — 3.8%
Blue Buffalo Pet Products, Inc.*		44,217		827,300
The Hain Celestial Group, Inc.*		42,699		1,724,613
Whole Foods Market, Inc.		49,787		1,667,864
				4,219,777
Healthcare Products — 6.2%
Align Technology, Inc.*		25,465		1,676,870
Edwards Lifesciences Corp.*		1,899		149,983

	Number of Shares		Value†
Healthcare Products — (continued)
Henry Schein, Inc.*		10,608	$	1,678,079
Intuitive Surgical, Inc.*		6,260		3,418,962
				6,923,894
Healthcare Services — 2.5%
Acadia Healthcare Co., Inc.*		16,680		1,041,833
Laboratory Corp. of America Holdings*		14,352		1,774,481
				2,816,314
Home Builders — 1.6%
D.R. Horton, Inc.		53,966		1,728,531
Household Products & Wares — 1.2%
The Scotts Miracle-Gro Co., Class A		20,842		1,344,517
Internet — 4.9%
F5 Networks, Inc.*		11,667		1,131,232
GrubHub, Inc.*		44,973		1,088,347
Pandora Media, Inc.*		143,012		1,917,791
TripAdvisor, Inc.*		15,992		1,363,318
				5,500,688
Leisure Time — 1.8%
Polaris Industries, Inc.		22,752		1,955,534
Machinery — Diversified — 1.2%
IDEX Corp.		17,813		1,364,654
Oil & Gas — 3.6%
Cabot Oil & Gas Corp.		52,078		921,260
Cimarex Energy Co.		10,632		950,288
Continental Resources, Inc.*		47,160		1,083,737
Noble Energy, Inc.		31,034		1,021,949
				3,977,234
Pharmaceuticals — 11.3%
ACADIA Pharmaceuticals, Inc.*		20,878		744,301
Alkermes PLC*		31,122		2,470,464
BioMarin Pharmaceutical, Inc.*		16,655		1,744,778
Diplomat Pharmacy, Inc.*		18,880		646,073
Mead Johnson Nutrition Co.		32,256		2,546,611
Medivation, Inc.*		21,264		1,027,902
Zoetis, Inc.		72,775		3,487,378
				12,667,507
Retail — 9.1%
Bed Bath & Beyond, Inc.*		31,120		1,501,540
DSW, Inc., Class A		51,002		1,216,908
Dunkin’ Brands Group, Inc.		45,448		1,935,630
Kate Spade & Co.*		51,373		912,898
Tiffany & Co.		22,468		1,714,084
Tractor Supply Co.		17,849		1,526,089
Williams-Sonoma, Inc.		23,419		1,367,904
				10,175,053
Semiconductors — 2.5%
Microchip Technology, Inc.		60,870		2,832,890

109

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Mid Cap Growth Fund

	Number of Shares			Value†
COMMON STOCKS — (continued)
Software — 9.4%
ANSYS, Inc.*		18,490		$	1,710,325
Cerner Corp.*		18,555			1,116,454
Electronic Arts, Inc.*1		50,548			3,473,659
Guidewire Software, Inc.*		6,835			411,194
Red Hat, Inc.*		17,782			1,472,527
ServiceNow, Inc.*		26,741			2,314,701
					10,498,860
Toys, Games & Hobbies — 1.7%
Mattel, Inc.		71,445			1,941,161
Transportation — 3.0%
Expeditors International of Washington, Inc.		45,878			2,069,098
J.B. Hunt Transport Services, Inc.		17,486			1,282,773
					3,351,871
TOTAL COMMON STOCKS (Cost $111,906,197)					110,027,255
SHORT-TERM INVESTMENTS — 1.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,717,834)		1,717,834			1,717,834
TOTAL INVESTMENTS — 100.0% (Cost $113,624,031)				$	111,745,089
Other Assets & Liabilities — 0.0%					(2,675	)
TOTAL NET ASSETS — 100.0%				$	111,742,414
WRITTEN OPTIONS — (0.1)%
Put Options — (0.1)%
Pacira Pharmaceuticals, Inc. $85 01/15/16 (Cost $(309,166))		(74	)		(58,460	)

† See Security Valuation Note.

* Non-income producing security.

¹  All or portion of securities segregated as collateral for written options.

LLC — Limited Liability Company.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	110,027,255	$	108,989,659	$	1,037,596	$	—
SHORT-TERM INVESTMENTS		1,717,834		1,717,834		—		—
TOTAL INVESTMENTS	$	111,745,089	$	110,707,493	$	1,037,596	$	—

LIABILITIES TABLE
Description	Total Market Value at 12/31/2015			Level 1 Quoted Price		Level 2 Significant Observable Input			Level 3 Significant Unobservable Input
WRITTEN OPTIONS	$	(58,460	)	$	—	$	(58,460	)	$	—
TOTAL LIABILITIES	$	(58,460	)	$	—	$	(58,460	)	$	—

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

$1,472,018 was transferred from Level 1 into Level 2 at 12/31/15 as the Fund utilized third-party vendor modeling tools to reflect any significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. The Fund did not have any transfers in and transfers out of Level 3 fair value hierarchy during the reporting period.

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

110

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Mid Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 90.3%
Aerospace & Defense — 7.0%
AerCap Holdings NV*		92,600	$	3,996,616
General Dynamics Corp.		29,350		4,031,516
Spirit Aerosystems Holdings, Inc., Class A*		70,300		3,519,921
				11,548,053
Airlines — 0.6%
United Continental Holdings, Inc.*		18,400		1,054,320
Apparel — 1.8%
Deckers Outdoor Corp.*		62,900		2,968,880
Banks — 6.8%
BB&T Corp.		52,200		1,973,682
Comerica, Inc.		79,600		3,329,668
Huntington Bancshares, Inc.		143,600		1,588,216
M&T Bank Corp.		23,100		2,799,258
State Street Corp.		23,600		1,566,096
				11,256,920
Building Materials — 1.1%
Owens Corning		39,500		1,857,685
Chemicals — 2.1%
Ashland, Inc.		33,900		3,481,530
Commercial Services — 6.7%
Hertz Global Holdings, Inc.		255,800		3,640,034
The ADT Corp.		224,800		7,413,904
				11,053,938
Computers — 6.6%
Cadence Design Systems, Inc.*		125,700		2,615,817
SanDisk Corp.*		62,400		4,741,776
Teradata Corp.*		136,200		3,598,404
				10,955,997
Electric — 7.5%
AES Corp.		321,600		3,077,712
Edison International		70,100		4,150,621
Flextronics International Ltd.*		161,300		1,808,173
NRG Energy, Inc.		285,900		3,365,043
				12,401,549
Electronics — 3.9%
Itron, Inc.*		114,400		4,138,992
Tyco International PLC		74,300		2,369,427
				6,508,419
Engineering & Construction — 1.4%
KBR, Inc.		140,700		2,380,644
Environmental Control — 2.1%
Covanta Holding Corp.		226,300		3,505,387
Food — 2.3%
Whole Foods Market, Inc.		114,600		3,839,100
Gas — 1.8%
CenterPoint Energy, Inc.		160,000		2,937,600

	Number of Shares		Value†
Healthcare Products — 2.8%
Zimmer Biomet Holdings, Inc.		45,200	$	4,637,068
Household Products & Wares — 1.5%
Avery Dennison Corp.		38,500		2,412,410
Insurance — 1.5%
Lincoln National Corp.		50,100		2,518,026
Machinery — Diversified — 2.0%
The Manitowoc Co., Inc.		217,500		3,338,625
Media — 1.7%
CBS Corp., Class B		60,100		2,832,513
Miscellaneous Manufacturing — 2.5%
Harsco Corp.		174,900		1,378,212
Valmont Industries, Inc.		26,900		2,851,938
				4,230,150
Oil & Gas — 3.9%
Cabot Oil & Gas Corp.		135,500		2,396,995
Devon Energy Corp.		80,400		2,572,800
Energy Transfer Partners, LP		46,075		1,554,110
				6,523,905
Pipelines — 1.5%
ONEOK, Inc.		98,200		2,421,612
Retail — 5.3%
Best Buy Co., Inc.		117,100		3,565,695
Kohl’s Corp.		67,600		3,219,788
Office Depot, Inc.*		356,100		2,008,404
				8,793,887
Savings & Loans — 2.5%
BankUnited, Inc.		115,200		4,154,112
Semiconductors — 3.9%
ON Semiconductor Corp.*		314,200		3,079,160
Skyworks Solutions, Inc.		44,900		3,449,667
				6,528,827
Software — 5.0%
Check Point Software Technologies Ltd.*		49,200		4,003,896
Nuance Communications, Inc.*		213,788		4,252,243
				8,256,139
Telecommunications — 2.6%
Amdocs Ltd.		79,500		4,338,315
Toys, Games & Hobbies — 1.9%
Mattel, Inc.		113,100		3,072,927
TOTAL COMMON STOCKS (Cost $148,168,719)				149,808,538
REAL ESTATE INVESTMENT TRUSTS — 6.0%
Building & Real Estate — 4.1%
Starwood Property Trust, Inc.		165,900		3,410,904
Starwood Waypoint Residential Trust		150,220		3,400,981
				6,811,885

111

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Mid Cap Value Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Diversified — 1.9%
Corrections Corporation of America		118,217	$	3,131,568
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $10,816,800)				9,943,453
RIGHTS — 0.0%
Food — 0.0%
Safeway Casa Ley CVR, 01/30/19*~		47,300		0
Safeway PDC CVR, 01/30/17*~		47,300		0
TOTAL RIGHTS (Cost $50,313)				0
SHORT-TERM INVESTMENTS — 2.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,751,096)		4,751,096		4,751,096
TOTAL INVESTMENTS — 99.2% (Cost $163,786,928)			$	164,503,087
Other Assets & Liabilities — 0.8%				1,346,172
TOTAL NET ASSETS — 100.0%			$	165,849,259

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at December 31, 2015 is $0.

LP — Limited Partnership.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
TOTAL COMMON STOCKS	$	149,808,538	$	149,808,538	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS
Building & Real Estate		6,811,885		6,811,885		—		—
Diversified		3,131,568		3,131,568		—		—
TOTAL REAL ESTATE INVESTMENT TRUSTS		9,943,453		9,943,453		—		—
RIGHTS		—		—		—		—
SHORT-TERM INVESTMENTS		4,751,096		4,751,096		—		—
TOTAL INVESTMENTS	$	164,503,087	$	164,503,087	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

112

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Mid Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — 91.9%
Aerospace & Defense — 0.4%
Harris Corp.		4,036	$	350,728
Apparel — 0.6%
Ralph Lauren Corp.		5,256		585,939
Auto Manufacturers — 1.1%
Honda Motor Co. Ltd. ADR		17,429		556,508
Oshkosh Corp.		10,678		416,869
				973,377
Banks — 11.7%
Bank of Hawaii Corp.		10,657		670,325
BB&T Corp.		19,857		750,793
BOK Financial Corp.		7,932		474,254
Comerica, Inc.		11,414		477,448
Commerce Bancshares, Inc.		22,704		965,828
Cullen/Frost Bankers, Inc.		7,250		435,000
M&T Bank Corp.		8,526		1,033,181
Northern Trust Corp.		37,785		2,723,921
State Street Corp.		10,548		699,965
SunTrust Banks, Inc.		12,291		526,546
The PNC Financial Services Group, Inc.		8,944		852,453
Westamerica Bancorporation		21,620		1,010,735
				10,620,449
Chemicals — 0.3%
The Mosaic Co.		11,439		315,602
Commercial Services — 0.8%
The ADT Corp.		21,824		719,756
Computers — 1.6%
SanDisk Corp.		13,972		1,061,732
Western Digital Corp.		6,940		416,747
				1,478,479
Diversified Financial Services — 2.3%
Franklin Resources, Inc.		16,745		616,551
LPL Financial Holdings, Inc.		10,574		450,981
Markit Ltd.*		14,760		445,309
T. Rowe Price Group, Inc.		7,453		532,815
				2,045,656
Electric — 8.2%
Ameren Corp.		10,929		472,461
Consolidated Edison, Inc.		6,848		440,121
Edison International		23,017		1,362,836
Great Plains Energy, Inc.		26,770		731,089
NorthWestern Corp.		8,985		487,436
PG&E Corp.		26,560		1,412,726
Westar Energy, Inc.		30,787		1,305,677
Xcel Energy, Inc.		32,578		1,169,876
				7,382,222
Electrical Components & Equipment — 1.4%
Emerson Electric Co.		23,855		1,140,985
Hubbell, Inc.		907		91,643
				1,232,628

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electronics — 4.7%
Keysight Technologies, Inc.*		32,852	$	930,697
Koninklijke Philips N.V.		37,140		947,976
TE Connectivity Ltd.		14,024		906,091
Tyco International PLC		46,550		1,484,480
				4,269,244
Environmental Control — 3.2%
Clean Harbors, Inc.*		17,834		742,786
Republic Services, Inc.		49,400		2,173,106
				2,915,892
Food — 8.2%
ConAgra Foods, Inc.		29,626		1,249,032
General Mills, Inc.		12,047		694,630
Kellogg Co.		12,632		912,915
Mondelez International, Inc., Class A		17,231		772,638
Sysco Corp.		69,981		2,869,221
The J.M. Smucker Co.		7,448		918,636
				7,417,072
Gas — 1.8%
Atmos Energy Corp.		11,669		735,614
The Laclede Group, Inc.		15,499		920,795
				1,656,409
Healthcare Products — 5.1%
Baxter International, Inc.		35,699		1,361,917
Becton Dickinson & Co.		3,747		577,375
Boston Scientific Corp.*		52,857		974,683
Zimmer Biomet Holdings, Inc.		17,066		1,750,801
				4,664,776
Healthcare Services — 2.9%
LifePoint Hospitals, Inc.*		19,032		1,396,949
Quest Diagnostics, Inc.		17,367		1,235,488
				2,632,437
Home Builders — 1.8%
PulteGroup, Inc.		36,646		653,032
Thor Industries, Inc.		10,686		600,019
Toll Brothers, Inc.*		10,666		355,178
				1,608,229
Insurance — 6.8%
ACE Ltd.		11,434		1,336,063
Aflac, Inc.		7,446		446,015
Brown & Brown, Inc.		19,767		634,521
MetLife, Inc.		9,711		468,167
ProAssurance Corp.		9,535		462,734
Reinsurance Group of America, Inc.		10,594		906,317
The Allstate Corp.		6,888		427,676
The Travelers Cos., Inc.		2,556		288,470
Torchmark Corp.		6,873		392,861
Unum Group		24,995		832,083
				6,194,907
Iron & Steel — 1.0%
Nucor Corp.		21,417		863,105

113

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Schedule of Investments — December 31, 2015

Mid Core Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Leisure Time — 0.5%
Carnival Corp.		7,715	$	420,313
Machinery — Diversified — 0.5%
Rockwell Automation, Inc.		4,374		448,816
Miscellaneous Manufacturing — 1.2%
Parker Hannifin Corp.		6,069		588,572
Textron, Inc.		11,851		497,860
				1,086,432
Oil & Gas — 9.2%
Anadarko Petroleum Corp.		12,127		589,130
Cimarex Energy Co.		8,464		756,512
Devon Energy Corp.		24,068		770,176
EQT Corp.		24,756		1,290,530
Helmerich & Payne, Inc.		15,068		806,892
Imperial Oil Ltd.		51,648		1,682,657
Noble Energy, Inc.		38,767		1,276,597
Occidental Petroleum Corp.		17,600		1,189,936
				8,362,430
Oil & Gas Services — 2.5%
Cameron International Corp.*		23,374		1,477,237
FMC Technologies, Inc.*		26,256		761,686
				2,238,923
Packaging and Containers — 2.0%
Bemis Co., Inc.		9,204		411,327
Sonoco Products Co.		19,467		795,616
WestRock Co.		13,030		594,429
				1,801,372
Retail — 2.6%
Advance Auto Parts, Inc.		6,219		936,022
CST Brands, Inc.		21,985		860,493
Lowe’s Cos., Inc.		3,052		232,074
Target Corp.		4,906		356,224
				2,384,813
Savings & Loans — 0.9%
Capitol Federal Financial, Inc.		61,778		775,932
Semiconductors — 5.4%
Applied Materials, Inc.		81,137		1,514,828
Lam Research Corp.		8,123		645,129
Maxim Integrated Products, Inc.		24,141		917,358
Microchip Technology, Inc.		19,611		912,696
Teradyne, Inc.		42,554		879,591
				4,869,602
Telecommunications — 1.1%
CenturyLink, Inc.		39,965		1,005,520
Toys, Games & Hobbies — 0.7%
Mattel, Inc.		24,323		660,856
Transportation — 1.4%
CSX Corp.		10,504		272,579

	Number of Shares		Value†
Transportation — (continued)
Heartland Express, Inc.		59,271	$	1,008,792
				1,281,371
TOTAL COMMON STOCKS (Cost $82,670,478)				83,263,287
REAL ESTATE INVESTMENT TRUSTS — 5.0%
Diversified — 2.7%
Corrections Corporation of America		35,822		948,925
Weyerhaeuser Co.		50,282		1,507,454
				2,456,379
Hotels & Resorts — 0.5%
Host Hotels & Resorts, Inc.		31,255		479,452
Office Property — 1.8%
Boston Properties, Inc.		1,926		245,642
Empire State Realty Trust, Inc.		20,606		372,350
Piedmont Office Realty Trust, Inc., Class A		51,335		969,205
				1,587,197
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $4,785,060)				4,523,028
EXCHANGE TRADED FUNDS — 1.0%
Investment Companies — 1.0%
iShares Russell MidCap Value Index Fund (Cost $950,208)		13,399		920,243
SHORT-TERM INVESTMENTS — 2.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,416,676)		2,416,676		2,416,676
TOTAL INVESTMENTS — 100.6% (Cost $90,822,422)			$	91,123,234
Other Assets & Liabilities — (0.6)%				(573,300	)
TOTAL NET ASSETS — 100.0%			$	90,549,934

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 12/31/2015††
United States	94	%
Other	2
Canada	2
Japan	1
Netherlands	1
Total	100	%

††% of total investments as of December 31, 2015

114

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Schedule of Investments — December 31, 2015

Mid Core Value Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	83,263,287	$	82,315,311	$	947,976	$	—
REAL ESTATE INVESTMENT TRUSTS		4,523,028		4,523,028		—		—
EXCHANGE TRADED FUNDS		920,243		920,243		—		—
SHORT-TERM INVESTMENTS		2,416,676		2,416,676		—		—
TOTAL INVESTMENTS	$	91,123,234	$	90,175,258	$	947,976	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

115

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Schedule of Investments — December 31, 2015

SMID Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 97.5%
Aerospace & Defense — 2.3%
Harris Corp.		6,070	$	527,483
Orbital ATK Inc.		8,600		768,324
				1,295,807
Airlines — 0.9%
Spirit Airlines, Inc.*		12,190		485,772
Apparel — 0.8%
Columbia Sportswear Co.		9,503		463,366
Auto Parts & Equipment — 2.3%
Gentherm, Inc.*		16,418		778,213
WABCO Holdings, Inc.*		5,070		518,458
				1,296,671
Beverages — 1.2%
Constellation Brands, Inc., Class A		4,750		676,590
Biotechnology — 3.2%
Alnylam Pharmaceuticals, Inc.*		5,814		547,330
Bluebird Bio, Inc.*		4,640		297,981
Ligand Pharmaceuticals, Inc.*		2,644		286,662
Prothena Corp. PLC*		2,455		167,210
Ultragenyx Pharmaceutical, Inc.*		4,170		467,791
				1,766,974
Building Materials — 1.4%
Vulcan Materials Co.		8,090		768,307
Chemicals — 1.3%
Axalta Coating Systems Ltd.*		27,749		739,511
Commercial Services — 20.8%
Allegion PLC		15,610		1,029,011
Aramark		31,950		1,030,388
Bright Horizons Family Solutions, Inc.*		15,640		1,044,752
CoStar Group, Inc.*		6,584		1,360,847
Euronet Worldwide, Inc.*		13,121		950,354
HealthEquity, Inc.*		13,898		348,423
KAR Auction Services Inc.		28,144		1,042,172
SEI Investments Co.		19,920		1,043,808
ServiceMaster Global Holdings, Inc.*		50,182		1,969,142
Vantiv, Inc., Class A*		18,007		853,892
WEX, Inc.*		10,940		967,096
				11,639,885
Computers — 2.3%
EPAM Systems, Inc.*		10,727		843,357
Fleetmatics Group PLC*		8,821		448,018
				1,291,375
Distribution & Wholesale — 1.6%
HD Supply Holdings, Inc.*		29,240		878,077
Diversified Financial Services — 4.1%
Air Lease Corp.		21,930		734,216
Evercore Partners, Inc., Class A		13,410		725,079
Raymond James Financial, Inc.		14,910		864,333
				2,323,628

	Number of Shares		Value†
Electrical Components & Equipment — 1.6%
Acuity Brands, Inc.		3,733	$	872,775
Entertainment — 3.6%
Cinemark Holdings, Inc.		27,080		905,284
Vail Resorts, Inc.		8,920		1,141,671
				2,046,955
Healthcare Products — 8.9%
Alere, Inc.*		22,156		866,078
Align Technology, Inc.*		15,870		1,045,040
Cepheid, Inc.*		11,349		414,579
DexCom, Inc.*		10,969		898,361
Hologic, Inc.*		23,570		911,923
Integra LifeSciences Holdings Corp.*		7,080		479,882
Intersect ENT, Inc.*		16,484		370,890
				4,986,753
Healthcare Services — 0.9%
Envision Healthcare Holdings Inc*		18,839		489,249
Home Furnishings — 1.1%
Harman International Industries, Inc.		6,280		591,639
Housewares — 0.7%
Newell Rubbermaid, Inc.		8,690		383,055
Internet — 1.7%
Splunk, Inc.*		16,710		982,715
Leisure Time — 1.2%
Brunswick Corp.		13,560		684,916
Machinery — Diversified — 2.2%
Cognex Corp.		14,840		501,147
Wabtec Corp.		10,520		748,182
				1,249,329
Miscellaneous Manufacturing — 3.9%
A.O. Smith Corp.		11,870		909,361
Carlisle Cos., Inc.		10,310		914,394
Proto Labs, Inc.*		5,473		348,575
				2,172,330
Oil & Gas — 1.0%
Diamondback Energy, Inc.*		8,000		535,200
Pharmaceuticals — 2.5%
Medivation, Inc.*		10,570		510,954
VCA, Inc.*		16,590		912,450
				1,423,404
Real Estate — 1.5%
CBRE Group, Inc., Class A*		24,070		832,341
Retail — 6.5%
Caleres, Inc.		20,230		542,569
Dave & Buster’s Entertainment, Inc.*		22,262		929,216
Lithia Motors, Inc., Class A		6,915		737,623
The Michaels Cos, Inc.*		35,037		774,668
Ulta Salon Cosmetics & Fragrance, Inc.*		3,700		684,500
				3,668,576

116

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Schedule of Investments — December 31, 2015

SMID Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Semiconductors — 1.0%
Cavium, Inc.*		8,290	$	544,736
Software — 13.2%
Black Knight Financial Services, Inc.*		13,771		455,269
Broadridge Financial Solutions, Inc.		10,400		558,792
CyberArk Software Ltd.*		16,717		754,605
Guidewire Software, Inc.*		14,471		870,575
Imperva, Inc.*		9,228		584,225
Paycom Software, Inc.*		26,866		1,010,968
Tableau Software, Inc., Class A*		11,970		1,127,813
Take-Two Interactive Software, Inc.*		25,140		875,878
Tyler Technologies, Inc.*		6,691		1,166,375
				7,404,500
Telecommunications — 2.6%
Zayo Group Holdings, Inc.*		55,580		1,477,872
Transportation — 1.2%
Old Dominion Freight Line, Inc.*		11,230		663,356
TOTAL COMMON STOCKS (Cost $49,243,608)				54,635,664
SHORT-TERM INVESTMENTS — 2.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,280,547)		1,280,547		1,280,547
TOTAL INVESTMENTS — 99.8% (Cost $50,524,155)			$	55,916,211
Other Assets & Liabilities — 0.2%				85,398
TOTAL NET ASSETS — 100.0%			$	56,001,609

† See Security Valuation Note.

* Non-income producing security.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	54,635,664	$	54,635,664	$	—	$	—
SHORT-TERM INVESTMENTS		1,280,547		1,280,547		—		—
TOTAL INVESTMENTS	$	55,916,211	$	55,916,211	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

117

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Schedule of Investments — December 31, 2015

SMID Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 91.4%
Aerospace & Defense — 1.0%
Spirit Aerosystems Holdings, Inc., Class A*		13,870	$	694,471
Apparel — 1.0%
Crocs, Inc.*		65,370		669,389
Auto Manufacturers — 1.2%
Oshkosh Corp.		20,010		781,190
Auto Parts & Equipment — 3.3%
Dana Holding Corp.		55,240		762,312
Lear Corp.		6,970		856,125
Tenneco, Inc.*		13,230		607,389
				2,225,826
Banks — 9.0%
Associated Banc-Corp.		29,100		545,625
Comerica, Inc.		22,955		960,208
Fulton Financial Corp.		51,200		666,112
Huntington Bancshares, Inc.		91,650		1,013,649
Synovus Financial Corp.		20,940		678,037
Texas Capital Bancshares, Inc.*		11,370		561,905
Webster Financial Corp.		18,830		700,288
Zions Bancorporation		35,420		966,966
				6,092,790
Chemicals — 1.9%
A. Schulman, Inc.		22,520		690,013
Huntsman Corp.		54,930		624,554
				1,314,567
Commercial Services — 2.3%
Booz Allen Hamilton Holding Corp.		29,640		914,394
Quanta Services, Inc.*		33,100		670,275
				1,584,669
Computers — 1.4%
NCR Corp.*		39,390		963,479
Distribution & Wholesale — 0.5%
WESCO International, Inc.*		8,070		352,498
Diversified Financial Services — 1.8%
E*TRADE Financial Corp.*		25,060		742,778
SLM Corp.*		72,050		469,766
				1,212,544
Electric — 2.8%
PNM Resources, Inc.		33,560		1,025,929
Westar Energy, Inc.		21,360		905,878
				1,931,807
Electronics — 4.9%
Avnet, Inc.		20,370		872,651
Celestica, Inc.*		34,600		381,638
Keysight Technologies, Inc.*		30,050		851,316
TTM Technologies, Inc.*		58,750		382,463
Vishay Intertechnology, Inc.		69,920		842,536
				3,330,604

	Number of Shares		Value†
Engineering & Construction — 4.3%
AECOM*		34,694	$	1,041,861
EMCOR Group, Inc.		17,750		852,710
Granite Construction, Inc.		24,250		1,040,567
				2,935,138
Finance — 0.7%
Genpact Ltd.*		17,660		441,147
Food — 2.3%
Dean Foods Co.		27,975		479,771
Ingredion, Inc.		10,920		1,046,573
				1,526,344
Gas — 1.3%
Southwest Gas Corp.		16,240		895,798
Hand & Machine Tools — 1.5%
Regal-Beloit Corp.		17,570		1,028,196
Healthcare Services — 3.1%
LifePoint Health, Inc.*		11,820		867,588
Molina Healthcare, Inc.*		8,180		491,863
WellCare Health Plans, Inc.*		9,670		756,291
				2,115,742
Home Builders — 2.4%
Meritage Homes Corp.*		12,900		438,471
PulteGroup, Inc.		67,970		1,211,225
				1,649,696
Household Products & Wares — 1.9%
Avery Dennison Corp.		9,450		592,137
Helen of Troy Ltd.*		7,050		664,463
				1,256,600
Insurance — 10.9%
American Financial Group, Inc.		11,810		851,265
Aspen Insurance Holdings Ltd.		21,070		1,017,681
CNO Financial Group, Inc.		52,600		1,004,134
Essent Group Ltd.*		33,774		739,313
First American Financial Corp.		24,980		896,782
StanCorp Financial Group, Inc.		9,660		1,100,081
The Hanover Insurance Group, Inc.		10,040		816,653
Validus Holdings Ltd.		21,630		1,001,253
				7,427,162
Internet — 2.1%
CDW Corp.		21,150		889,146
Shutterfly, Inc.*		11,990		534,274
				1,423,420
Iron & Steel — 0.8%
Steel Dynamics, Inc.		29,470		526,629
Media — 1.5%
Cable One, Inc		1,270		550,748
Scholastic Corp.		12,790		493,183
				1,043,931

118

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Schedule of Investments — December 31, 2015

SMID Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — 1.2%
ITT Corp.		22,610	$	821,195
Oil & Gas — 4.3%
Murphy Oil Corp.		35,490		796,750
Murphy USA Inc*		12,120		736,169
QEP Resources, Inc.		63,000		844,200
SM Energy Co.		28,735		564,930
				2,942,049
Oil & Gas Services — 2.3%
MRC Global Inc*		69,390		895,131
RPC, Inc.		54,770		654,502
				1,549,633
Packaging and Containers — 0.8%
Graphic Packaging Holding Co.		41,820		536,551
Real Estate — 1.0%
Realogy Holdings Corp.*		18,180		666,661
Retail — 7.0%
Big Lots, Inc.		20,600		793,924
Bloomin’ Brands, Inc.		54,460		919,829
Caleres, Inc.		18,350		492,147
GameStop Corp., Class A		13,600		381,344
Office Depot, Inc.*		113,510		640,196
The Children’s Place, Inc.		16,380		904,176
The Michaels Cos, Inc.		29,250		646,718
				4,778,334
Savings & Loans — 0.9%
First Niagara Financial Group, Inc.		58,040		629,734
Semiconductors — 4.5%
Advanced Micro Devices, Inc.*		84,700		243,089
Cypress Semiconductor Corp.*		92,590		908,308
Fairchild Semiconductor International, Inc.*		63,400		1,313,014
Lam Research Corp.		7,050		559,911
				3,024,322
Software — 0.8%
Verint Systems, Inc.*		13,040		528,902
Telecommunications — 3.6%
Amdocs Ltd.		14,625		798,087
Finisar Corp.*		61,830		899,008
Polycom, Inc.*		60,090		756,533
				2,453,628
Transportation — 1.1%
Ryder System, Inc.		13,320		756,976
TOTAL COMMON STOCKS (Cost $57,317,633)				62,111,622
REAL ESTATE INVESTMENT TRUSTS — 5.6%
Apartments — 1.1%
Mid-America Apartment Communities, Inc.		8,140		739,193

	Number of Shares		Value†
Healthcare — 1.3%
LTC Properties, Inc.		19,560	$	843,819
Hotels & Resorts — 0.8%
RLJ Lodging Trust		25,100		542,913
Real Estate Management Services — 1.5%
Gramercy Property Trust		133,178		1,028,134
Strip Centers — 0.9%
DDR Corp.		37,780		636,215
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,606,046)				3,790,274
SHORT-TERM INVESTMENTS — 2.2%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,480,594)		1,480,594		1,480,594
TOTAL INVESTMENTS — 99.2% (Cost $62,404,273)			$	67,382,490
Other Assets & Liabilities — 0.8%				576,698
TOTAL NET ASSETS — 100.0%			$	67,959,188

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	62,111,622	$	62,111,622	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		3,790,274		3,790,274		—		—
SHORT-TERM INVESTMENTS		1,480,594		1,480,594		—		—
TOTAL INVESTMENTS	$	67,382,490	$	67,382,490	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

119

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Schedule of Investments — December 31, 2015

Small Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — 98.1%
Aerospace & Defense — 2.0%
HEICO Corp., Class A		37,203	$	1,830,388
Apparel — 3.4%
Carter’s, Inc.		16,025		1,426,706
Gildan Activewear, Inc.		26,685		758,387
Wolverine World Wide, Inc.		54,266		906,785
				3,091,878
Banks — 2.3%
Bank of the Ozarks, Inc.		24,756		1,224,432
Kearny Financial Corp.		30,585		387,512
SVB Financial Group*		3,888		462,283
				2,074,227
Beverages — 0.2%
Britvic PLC		15,522		166,307
Biotechnology — 0.9%
Ligand Pharmaceuticals, Inc.*		5,707		618,753
Puma Biotechnology, Inc.*		3,199		250,802
				869,555
Building Materials — 0.7%
Trex Co., Inc.*		15,895		604,646
Chemicals — 2.1%
Sensient Technologies Corp.		31,481		1,977,636
Commercial Services — 11.8%
Alarm.com Holdings, Inc.*		17,177		286,513
CEB, Inc.		15,212		933,865
CoStar Group, Inc.*		4,597		950,154
Euronet Worldwide, Inc.*		24,110		1,746,287
ExamWorks Group, Inc.*		11,100		295,260
Gartner, Inc.*		7,559		685,601
Healthcare Services Group, Inc.		28,676		999,932
HealthEquity, Inc.*		20,818		521,907
MAXIMUS, Inc.		15,720		884,250
Nord Anglia Education Inc.*		46,150		935,922
Rollins, Inc.		17,517		453,690
Servicemaster Global Holdings, Inc.*		39,230		1,539,385
SP Plus Corp.*		25,462		608,542
				10,841,308
Computers — 3.9%
Cadence Design Systems, Inc.*		77,202		1,606,573
Jack Henry & Associates, Inc.		21,680		1,692,341
Stratasys Ltd.*		12,806		300,685
				3,599,599
Diversified Financial Services — 4.5%
Artisan Partners Asset Management, Inc., Class A		13,370		482,122
Financial Engines, Inc.		17,432		586,936
LPL Financial Holdings, Inc.		14,159		603,881
MarketAxess Holdings, Inc.		11,085		1,236,975
Markit Ltd.*		29,782		898,523
WisdomTree Investments, Inc.		19,965		313,051
				4,121,488

	Number of Shares		Value†
Electrical Components & Equipment — 2.3%
Belden, Inc.		20,997	$	1,001,137
EnerSys		19,855		1,110,490
				2,111,627
Electronics — 4.3%
CTS Corp.		34,584		610,062
FEI Co.		14,816		1,182,169
National Instruments Corp.		13,666		392,077
OSI Systems, Inc.*		13,379		1,186,182
Sensata Technologies Holding NV*		12,089		556,819
				3,927,309
Energy-Alternate Sources — 0.6%
SolarEdge Technologies Inc.*		18,575		523,258
Entertainment — 2.4%
AMC Entertainment Holdings, Inc., Class A		27,540		660,960
Manchester United PLC		33,392		594,711
National CineMedia, Inc.		60,521		950,785
				2,206,456
Environmental Control — 0.7%
Clean Harbors, Inc.*		15,015		625,375
Hand & Machine Tools — 0.9%
Kennametal, Inc.		41,458		795,994
Healthcare Products — 6.9%
Bio-Techne Corp.		11,576		1,041,840
Endologix, Inc.*		72,550		718,245
Globus Medical, Inc.*		31,775		883,980
LDR Holding Corp.*		30,416		763,746
Masimo Corp.*		14,857		616,714
Merit Medical Systems, Inc.*		33,700		626,483
Quidel Corp.*		31,021		657,645
STERIS PLC		13,835		1,042,329
				6,350,982
Healthcare Services — 1.4%
Catalent, Inc.*		47,746		1,195,083
OvaScience, Inc.*		8,051		78,658
				1,273,741
Household Products & Wares — 3.1%
Ontex Group NV		31,764		1,129,380
Prestige Brands Holdings, Inc.*		21,597		1,111,814
Tumi Holdings, Inc.*		37,099		616,956
				2,858,150
Insurance — 0.8%
RLI Corp.		12,411		766,379
Internet — 1.7%
ChannelAdvisor Corp.*		28,211		390,723
Endurance International Group Holdings, Inc.*		35,487		387,873
Wayfair, Inc., Class A*		6,515		310,244
Zillow Group, Inc.*		16,701		434,894
				1,523,734

120

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Schedule of Investments — December 31, 2015

Small Cap Growth Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Investment Companies — 0.4%
Pace Holdings Corp.*		33,082	$	334,128
Machinery — Diversified — 1.2%
Nordson Corp.		11,497		737,532
Wabtec Corp.		5,381		382,697
				1,120,229
Medical Instruments — 0.6%
Novadaq Technologies, Inc.*		46,571		593,315
Metal Fabricate/Hardware — 1.0%
Rexnord Corp.*		48,859		885,325
Miscellaneous Manufacturing — 1.3%
Proto Labs, Inc.*		10,841		690,463
Raven Industries, Inc.		30,259		472,041
				1,162,504
Oil & Gas Services — 0.6%
Dril-Quip, Inc.*		9,982		591,234
Pharmaceuticals — 9.8%
Akorn, Inc.*		21,321		795,487
Anacor Pharmaceuticals, Inc.*		2,766		312,475
DBV Technologies SA*		14,415		523,409
DepoMed, Inc.*		23,242		421,377
Dyax Corp.*		36,639		1,378,359
Eagle Pharmaceuticals, Inc.*		11,407		1,011,459
Flamel Technologies S.A., ADR*		37,767		461,135
Heron Therapeutics, Inc.*		11,245		300,241
Insys Therapeutics, Inc.*		18,705		535,524
Ironwood Pharmaceuticals, Inc.*		42,791		495,948
Pacira Pharmaceuticals, Inc.*		6,496		498,828
Phibro Animal Health Corp., Class A		34,266		1,032,435
POZEN, Inc.*		44,710		305,369
Relypsa, Inc.*		15,345		434,877
Teligent Inc.*		55,372		492,811
				8,999,734
Publishing/Newspapers — 0.7%
Cimpress NV*		8,227		667,539
Real Estate — 1.2%
Jones Lang LaSalle, Inc.		4,018		642,318
The St. Joe Co.*		22,716		420,473
				1,062,791
Real Estate Investment Trusts — 0.7%
Lamar Advertising Co.		10,544		632,429
Retail — 4.5%
Biglari Holdings, Inc.*		3,019		983,650
Casey’s General Stores, Inc.		11,284		1,359,158
Dunkin’ Brands Group, Inc.		12,318		524,624
Five Below, Inc.*		19,605		629,320
Sally Beauty Holdings, Inc.*		21,985		613,162
				4,109,914
Semiconductors — 2.3%
Atmel Corp.		132,196		1,138,208
ON Semiconductor Corp.*		95,108		932,058
				2,070,266

	Number of Shares		Value†
Software — 13.9%
ACI Worldwide, Inc.*		45,860	$	981,404
athenahealth, Inc.*		5,589		899,661
Blackbaud, Inc.		39,040		2,571,175
Broadridge Financial Solutions, Inc.		35,979		1,933,152
Envestnet, Inc.*		20,880		623,268
Fleetmatics Group PLC*		12,480		633,859
Guidewire Software, Inc.*		14,014		843,082
RealPage, Inc.*		36,405		817,292
Solera Holdings, Inc.		13,849		759,341
SPS Commerce, Inc.*		6,135		430,738
SS&C Technologies Holdings, Inc.		33,266		2,271,070
				12,764,042
Telecommunications — 1.7%
NICE Systems, Ltd. ADR		27,882		1,598,196
Transportation — 1.3%
Landstar System, Inc.		9,386		550,489
Old Dominion Freight Line, Inc.*		10,569		624,311
				1,174,800
TOTAL COMMON STOCKS (Cost $76,547,614)				89,906,483
SHORT-TERM INVESTMENTS — 2.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,987,715)		1,987,715		1,987,715
TOTAL INVESTMENTS — 100.2% (Cost $78,535,329)			$	91,894,198
Other Assets & Liabilities — (0.2)%				(228,592	)
TOTAL NET ASSETS — 100.0%			$	91,665,606

† See Security Valuation Note.

* Non-income producing security.

ADR — American Depository Receipt.

PLC — Public Limited Company.

Country Weightings as of 12/31/2015†
United States	89	%
United Kingdom	3
France	2
Israel	2
Belgium	1
Canada	1
Hong Kong	1
Other	1
Total	100	%

†% of total investments as of December 31, 2015

121

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Schedule of Investments — December 31, 2015

Small Cap Growth Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	89,906,483	$	88,610,796	$	1,295,687	$	—
SHORT-TERM INVESTMENTS		1,987,715		1,987,715		—		—
TOTAL INVESTMENTS	$	91,894,198	$	90,598,511	$	1,295,687	$	—

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

$767,945 was transferred from Level 1 into Level 2 at 12/31/15 as the Fund utilized third-party vendor modeling tools to reflect any significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. The Fund did not have any transfers in and transfers out of Level 3 fair value hierarchy during the reporting period.

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

122

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Schedule of Investments — December 31, 2015

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — 84.7%
Aerospace & Defense — 2.7%
Curtiss-Wright Corp.		17,664	$	1,209,984
Esterline Technologies Corp.*		28,543		2,311,983
Kaman Corp.		32,142		1,311,715
Moog, Inc., Class A*		22,411		1,358,107
				6,191,789
Apparel — 0.9%
Carter’s, Inc.		18,304		1,629,605
Steven Madden Ltd.*		13,826		417,822
				2,047,427
Auto Parts & Equipment — 0.9%
American Axle & Manufacturing Holdings, Inc.*		26,477		501,474
Cooper Tire & Rubber Co.		19,440		735,804
Tower International, Inc.		26,475		756,391
				1,993,669
Banks — 16.6%
BancorpSouth, Inc.		74,285		1,782,097
Bank of the Ozarks, Inc.		38,456		1,902,034
Banner Corp.		26,761		1,227,259
BNC Bancorp		8,215		208,497
Boston Private Financial Holdings, Inc.		70,483		799,277
CoBiz Financial, Inc.		30,749		412,652
Community Bank System, Inc.		28,541		1,139,927
ConnectOne Bancorp, Inc.		17,685		330,533
CVB Financial Corp.		70,568		1,194,010
First Financial Bankshares, Inc.		38,107		1,149,688
First Merchants Corp.		30,475		774,674
First Midwest Bancorp, Inc.		40,752		751,059
Glacier Bancorp, Inc.		51,802		1,374,307
Great Western Bancorp, Inc.		54,430		1,579,559
Heritage Financial Corp.		19,620		369,641
Home BancShares, Inc.		25,977		1,052,588
Independent Bank Corp.		20,817		968,407
Independent Bank Group, Inc.		9,606		307,392
Lakeland Financial Corp.		11,842		552,074
LegacyTexas Financial Group, Inc.		59,554		1,490,041
MB Financial, Inc.		53,910		1,745,067
PacWest Bancorp		30,833		1,328,902
Pinnacle Financial Partners, Inc.		32,312		1,659,544
PrivateBancorp, Inc.		67,800		2,781,156
Prosperity Bancshares, Inc.		36,695		1,756,223
Renasant Corp.		22,856		786,475
Sandy Spring Bancorp, Inc.		15,140		408,174
South State Corp.		18,866		1,357,409
Southwest Bancorp, Inc.		21,468		375,261
State Bank Financial Corp.		35,618		749,046
Summit State Bank		7,318		99,891
Texas Capital Bancshares, Inc.*		14,378		710,561
The First of Long Island Corp.		11,441		343,230
TriCo Bancshares		16,222		445,132
UMB Financial Corp.		17,994		837,621
Webster Financial Corp.		66,637		2,478,230
Wintrust Financial Corp.		8,267		401,115
				37,628,753

	Number of Shares		Value†
Building Materials — 1.6%
Armstrong World Industries, Inc.*		16,120	$	737,168
Continental Building Products, Inc.*		49,211		859,224
Eagle Materials, Inc.		17,184		1,038,429
Summit Materials, Inc., Class A*		54,837		1,098,933
				3,733,754
Chemicals — 1.7%
Axiall Corp.		4,168		64,187
Methanex Corp.		2,961		97,743
Minerals Technologies, Inc.		6,226		285,524
PolyOne Corp.		34,992		1,111,346
Quaker Chemical Corp.		8,581		662,968
WR Grace & Co.*		16,188		1,612,163
				3,833,931
Commercial Services — 2.9%
ABM Industries, Inc.		49,478		1,408,639
HMS Holdings Corp.*		81,526		1,006,031
Live Nation Entertainment, Inc.*		79,774		1,960,047
MAXIMUS, Inc.		12,193		685,856
Monro Muffler Brake, Inc.		7,488		495,855
On Assignment, Inc.*		20,509		921,880
				6,478,308
Computers — 1.5%
Convergys Corp.		53,568		1,333,308
Electronics For Imaging, Inc.*		23,401		1,093,763
Lumentum Holdings, Inc.*		15,955		351,329
NetScout Systems, Inc.*		21,882		671,777
				3,450,177
Distribution & Wholesale — 1.3%
Beacon Roofing Supply, Inc.*		33,792		1,391,555
Core-Mark Holding Co., Inc.		10,394		851,684
WESCO International, Inc.*		14,655		640,130
				2,883,369
Diversified Financial Services — 1.8%
MarketAxess Holdings, Inc.		9,283		1,035,890
Moelis & Co., Class A		3,954		115,378
OM Asset Management PLC		74,115		1,136,183
Stifel Financial Corp.*		31,082		1,316,633
Virtu Financial, Inc., Class A		20,336		460,407
				4,064,491
Electric — 4.1%
Black Hills Corp.		28,190		1,308,862
Dynegy, Inc.*		44,254		593,003
IDACORP, Inc.		28,117		1,911,956
NorthWestern Corp.		32,721		1,775,114
PNM Resources, Inc.		58,566		1,790,363
Portland General Electric Co.		50,065		1,820,864
				9,200,162
Electrical Components & Equipment — 0.6%
EnerSys		10,403		581,840
Littelfuse, Inc.		7,577		810,815
				1,392,655

123

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Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electronics — 2.0%
CTS Corp.		41,212	$	726,980
Newport Corp.*		53,852		854,631
Plexus Corp.*		28,703		1,002,309
Watts Water Technologies, Inc., Class A		26,046		1,293,705
Woodward, Inc.		11,567		574,417
				4,452,042
Engineering & Construction — 0.7%
EMCOR Group, Inc.		34,563		1,660,407
Entertainment — 1.6%
Carmike Cinemas, Inc.*		22,097		506,905
Marriott Vacations Worldwide Corp.		19,734		1,123,851
Vail Resorts, Inc.		15,750		2,015,843
				3,646,599
Environmental Control — 0.9%
CECO Environmental Corp.		35,584		273,285
MSA Safety, Inc.		10,340		449,480
Progressive Waste Solutions Ltd.		56,872		1,339,335
				2,062,100
Food — 2.0%
J&J Snack Foods Corp.		6,363		742,371
Post Holdings, Inc.*		8,827		544,626
The Hain Celestial Group, Inc.*		9,566		386,371
TreeHouse Foods, Inc.*		35,480		2,783,761
				4,457,129
Forest Products & Paper — 0.2%
KapStone Paper and Packaging Corp.		17,850		403,232
Mercer International, Inc.		17,201		155,669
				558,901
Gas — 1.9%
New Jersey Resources Corp.		55,929		1,843,420
Southwest Gas Corp.		31,404		1,732,245
WGL Holdings, Inc.		10,859		684,008
				4,259,673
Healthcare Products — 1.6%
Bruker Corp.*		5,691		138,121
CONMED Corp.		12,836		565,426
Endologix, Inc.*		105,345		1,042,915
Integra LifeSciences Holdings Corp.*		16,430		1,113,625
Wright Medical Group NV*		29,855		721,894
				3,581,981
Healthcare Services — 1.7%
Air Methods Corp.*		34,521		1,447,465
Amsurg Corp.*		13,135		998,260
Catalent, Inc.*		10,699		267,796
HealthSouth Corp.		28,465		990,867
Natera, Inc.*		24,632		266,026
				3,970,414

	Number of Shares		Value†
Home Builders — 0.8%
CalAtlantic Group, Inc.		20,408	$	773,871
Meritage Homes Corp.*		20,296		689,861
William Lyon Homes, Class A*		19,502		321,783
				1,785,515
Household Products & Wares — 1.4%
Prestige Brands Holdings, Inc.*		16,693		859,356
Spectrum Brands Holdings, Inc.		23,119		2,353,514
				3,212,870
Insurance — 6.1%
American Equity Investment Life Holding Co.		64,379		1,547,027
AMERISAFE, Inc.		11,818		601,536
AmTrust Financial Services, Inc.		16,190		996,980
CNO Financial Group, Inc.		129,661		2,475,229
Endurance Specialty Holdings Ltd.		17,243		1,103,380
Enstar Group Ltd.*		5,349		802,564
Fidelity & Guaranty Life		9,722		246,647
Maiden Holdings Ltd.		99,347		1,481,264
National General Holdings Corp.		57,112		1,248,468
ProAssurance Corp.		13,527		656,465
Radian Group, Inc.		100,815		1,349,913
RLI Corp.		16,733		1,033,263
Symetra Financial Corp.		10,735		341,051
				13,883,787
Investment Companies — 0.3%
Golub Capital BDC, Inc.		18,311		304,512
New Mountain Finance Corp.		25,625		333,637
				638,149
Iron & Steel — 0.4%
Commercial Metals Co.		60,616		829,833
Leisure Time — 0.6%
Diamond Resorts International, Inc.*		53,110		1,354,836
Machinery — Diversified — 0.8%
Alamo Group, Inc.		11,834		616,551
The Manitowoc Co., Inc.		77,902		1,195,796
				1,812,347
Media — 0.8%
Nexstar Broadcasting Group, Inc., Class A		29,003		1,702,476
Townsquare Media, Inc., Class A*		14,285		170,849
				1,873,325
Metal Fabricate/Hardware — 0.4%
RBC Bearings, Inc.*		15,355		991,779
Mining — 0.8%
Ferroglobe PLC		38,209		410,747
Kaiser Aluminum Corp.		17,355		1,451,919
				1,862,666

124

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Schedule of Investments — December 31, 2015

Small Cap Value Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Miscellaneous Manufacturing — 1.5%
Actuant Corp., Class A		17,506	$	419,444
Barnes Group, Inc.		29,972		1,060,709
Carlisle Cos., Inc.		7,667		679,986
CLARCOR, Inc.		16,189		804,270
Standex International Corp.		5,888		489,587
				3,453,996
Oil & Gas — 4.4%
Carrizo Oil & Gas, Inc.*		43,361		1,282,618
Memorial Resource Development Corp.*		93,402		1,508,442
Parsley Energy, Inc., Class A*		67,405		1,243,622
PBF Energy, Inc. Class A		35,796		1,317,651
PDC Energy, Inc.*		17,425		930,147
Rice Energy, Inc.*		150,452		1,639,927
RSP Permian, Inc.*		55,102		1,343,938
WPX Energy, Inc.*		108,156		620,815
				9,887,160
Oil & Gas Services — 0.3%
Forum Energy Technologies, Inc.*		18,450		229,887
Thermon Group Holdings, Inc.*		33,095		559,967
				789,854
Packaging and Containers — 1.1%
Berry Plastics Group, Inc.*		40,843		1,477,700
Graphic Packaging Holding Co.		79,899		1,025,104
				2,502,804
Pharmaceuticals — 0.4%
Infinity Pharmaceuticals, Inc.*		71,528		561,495
Pacira Pharmaceuticals, Inc.*		5,611		430,868
				992,363
Real Estate — 0.8%
Kennedy-Wilson Holdings, Inc.		72,799		1,753,000
Retail — 3.6%
Asbury Automotive Group, Inc.*		9,694		653,763
Ascena Retail Group, Inc.*		16,401		161,550
Bojangles’, Inc.*		2,231		35,406
Boot Barn Holdings, Inc.*		40,975		503,583
Burlington Stores, Inc.*		35,624		1,528,270
Cracker Barrel Old Country Store, Inc.		3,569		452,656
Freshpet, Inc.*		6,841		58,080
GNC Holdings, Inc., Class A		14,251		442,066
HSN, Inc.		16,553		838,740
Jack in the Box, Inc.		20,187		1,548,545
Lithia Motors, Inc., Class A		17,199		1,834,617
Office Depot, Inc.*		31,742		179,025
				8,236,301
Savings & Loans — 2.0%
Brookline Bancorp, Inc.		38,692		444,958
Dime Community Bancshares, Inc.		20,494		358,440
EverBank Financial Corp.		67,096		1,072,194
Flushing Financial Corp.		32,555		704,490
Oritani Financial Corp.		25,872		426,888

	Number of Shares		Value†
Savings & Loans — (continued)
Provident Financial Services, Inc.		44,513	$	896,937
WSFS Financial Corp.		19,742		638,851
				4,542,758
Semiconductors — 3.8%
Cabot Microelectronics Corp.*		14,232		623,077
Cypress Semiconductor Corp.*		79,300		777,933
Entegris, Inc.*		128,715		1,708,048
Fairchild Semiconductor International, Inc.*		51,392		1,064,328
Intersil Corp., Class A		130,044		1,659,362
MKS Instruments, Inc.		33,512		1,206,432
Semtech Corp.*		54,721		1,035,321
Silicon Laboratories, Inc.*		11,085		538,066
				8,612,567
Software — 2.1%
Bottomline Technologies, Inc.*		24,520		728,980
CommVault Systems, Inc.*		20,604		810,767
Digi International, Inc.*		3,008		34,231
Everyday Health, Inc.*		67,301		405,152
Monotype Imaging Holdings, Inc.		22,868		540,600
Radware Ltd.*		45,512		698,154
Verint Systems, Inc.*		40,841		1,656,511
				4,874,395
Storage & Warehousing — 0.5%
Mobile Mini, Inc.		33,944		1,056,677
Telecommunications — 1.4%
Anixter International, Inc.*		19,073		1,151,819
Polycom, Inc.*		85,929		1,081,846
Viavi Solutions, Inc.*		164,767		1,003,431
				3,237,096
Textiles — 0.3%
G&K Services, Inc., Class A		10,364		651,896
Transportation — 0.9%
Forward Air Corp.		35,653		1,533,435
Golar LNG Ltd.		31,302		494,259
				2,027,694
TOTAL COMMON STOCKS (Cost $172,534,898)				192,411,399
REAL ESTATE INVESTMENT TRUSTS — 12.5%
Building & Real Estate — 2.2%
Apollo Commercial Real Estate Finance, Inc.		78,461		1,351,883
Blackstone Mortgage Trust, Inc., Class A		63,890		1,709,696
MFA Financial, Inc.		166,870		1,101,342
Two Harbors Investment Corp.		105,341		853,262
				5,016,183
Diversified — 1.0%
PS Business Parks, Inc.		25,295		2,211,542
Healthcare — 0.4%
National Health Investors, Inc.		15,931		969,720

125

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Schedule of Investments — December 31, 2015

Small Cap Value Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Hotels & Resorts — 2.5%
Chesapeake Lodging Trust		103,944	$	2,615,231
Pebblebrook Hotel Trust		108,142		3,030,139
				5,645,370
Industrial — 0.6%
Terreno Realty Corp.		60,330		1,364,665
Internet — 0.8%
CyrusOne, Inc.		51,089		1,913,283
Office Property — 1.6%
Highwoods Properties, Inc.		44,946		1,959,646
Hudson Pacific Properties, Inc.		60,639		1,706,381
				3,666,027
Regional Malls — 0.3%
CBL & Associates Properties, Inc.		55,685		688,823
Storage & Warehousing — 2.1%
CubeSmart		93,643		2,867,349
Sovran Self Storage, Inc.		16,888		1,812,251
				4,679,600
Strip Centers — 1.0%
Acadia Realty Trust		67,361		2,233,017
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $24,843,081)				28,388,230
EXCHANGE TRADED FUNDS — 0.4%
iShares Russell 2000 Value ETF (Cost $835,562)		9,244		850,540
SHORT-TERM INVESTMENTS — 2.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $4,467,782)		4,467,782		4,467,782
TOTAL INVESTMENTS — 99.6% (Cost $202,681,323)			$	226,117,951
Other Assets & Liabilities — 0.4%				1,020,615
TOTAL NET ASSETS — 100.0%			$	227,138,566

† See Security Valuation Note.

* Non-income producing security.

PLC — Public Limited Company.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	192,411,399	$	192,411,399	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		28,388,230		28,388,230		—		—
EXCHANGE TRADED FUNDS		850,540		850,540		—		—
SHORT-TERM INVESTMENTS		4,467,782		4,467,782		—		—
TOTAL INVESTMENTS	$	226,117,951	$	226,117,951	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

126

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — 89.3%
Advertising — 0.1%
EVINE Live, Inc.*		1,700	$	3,026
Harte-Hanks, Inc.		1,678		5,437
Journal Media Group, Inc.		848		10,193
Marchex, Inc., Class B		1,545		6,010
Marin Software, Inc.*		700		2,506
MDC Partners, Inc., Class A		1,500		32,580
Sizmek, Inc.*		757		2,763
				62,515
Aerospace & Defense — 1.3%
AAR Corp.		1,269		33,362
Aerojet Rocketdyne Holdings, Inc.*		2,440		38,210
AeroVironment, Inc.*		718		21,160
Astronics Corp.*		878		35,743
Cubic Corp.		869		41,060
Curtiss-Wright Corp.		1,826		125,081
Ducommun, Inc.*		400		6,488
Esterline Technologies Corp.*		1,140		92,340
HEICO Corp.		715		38,867
HEICO Corp., Class A		1,600		78,720
Kaman Corp.		1,048		42,769
KLX, Inc.*		2,100		64,659
Kratos Defense & Security Solutions, Inc.*		2,422		9,930
Moog, Inc., Class A*		1,491		90,355
National Presto Industries, Inc.		146		12,098
Teledyne Technologies, Inc.*		1,304		115,665
				846,507
Agriculture — 0.3%
Alico, Inc.		151		5,842
Limoneira Co.		600		8,964
MGP Ingredients, Inc.		400		10,380
Tejon Ranch Co.*		688		13,175
The Andersons, Inc.		1,132		35,805
Universal Corp.		855		47,949
Vector Group Ltd.		3,352		79,074
				201,189
Airlines — 0.3%
Allegiant Travel Co.		501		84,083
Hawaiian Holdings, Inc.*		1,926		68,045
Republic Airways Holdings, Inc.*		1,901		7,471
SkyWest, Inc.		1,881		35,777
Virgin America, Inc.*		900		32,409
				227,785
Apparel — 0.7%
Cherokee, Inc.*		300		5,175
Columbia Sportswear Co.		1,022		49,833
Crocs, Inc.*		2,900		29,696
Deckers Outdoor Corp.*		1,200		56,640
G-III Apparel Group Ltd.*		1,508		66,744
Iconix Brand Group, Inc.*		1,842		12,581
Oxford Industries, Inc.		508		32,420
Perry Ellis International, Inc.*		414		7,626
Sequential Brands Group Inc.*		1,740		13,763
Steven Madden Ltd.*		2,049		61,921

	Number of Shares		Value†
Apparel — (continued)
Superior Uniform Group Inc.		500	$	8,490
Unifi, Inc.*		460		12,949
Vince Holding Corp.*		400		1,832
Weyco Group, Inc.		400		10,704
Wolverine World Wide, Inc.		3,782		63,197
				433,571
Auto Manufacturers — 0.1%
Navistar International Corp.*		1,800		15,912
Wabash National Corp.*		2,600		30,758
				46,670
Auto Parts & Equipment — 1.1%
Accuride Corp.*		1,000		1,660
American Axle & Manufacturing Holdings, Inc.*		3,016		57,123
Commercial Vehicle Group, Inc.*		600		1,656
Cooper Tire & Rubber Co.		2,249		85,125
Cooper-Standard Holding, Inc.*		500		38,795
Dana Holding Corp.		5,796		79,985
Dorman Products, Inc.*		992		47,090
Douglas Dynamics, Inc.		900		18,963
Federal-Mogul Holdings Corp.*		916		6,275
Gentherm, Inc.*		1,468		69,583
Horizon Global Corp.*		718		7,446
Meritor, Inc.*		3,645		30,436
Metaldyne Performance Group, Inc.		400		7,336
Miller Industries, Inc.		443		9,648
Modine Manufacturing Co.*		2,077		18,797
Motorcar Parts of America, Inc.*		700		23,667
Standard Motor Products, Inc.		700		26,635
Strattec Security Corp.		100		5,649
Superior Industries International, Inc.		1,119		20,612
Tenneco, Inc.*		2,200		101,002
Titan International, Inc.		1,913		7,537
Tower International, Inc.		800		22,856
				687,876
Banks — 8.6%
1st Source Corp.		688		21,239
Access National Corp.		400		8,184
American National Bankshares, Inc.		400		10,244
Ameris Bancorp		1,247		42,386
Ames National Corp.		199		4,834
Arrow Financial Corp.		378		10,270
BancFirst Corp.		260		15,241
Banco Latinoamericano de Comercio Exterior SA		1,110		28,782
BancorpSouth, Inc.		3,649		87,540
Bank of Marin Bancorp		290		15,486
Bank of the Ozarks, Inc.		2,952		146,006
Banner Corp.		800		36,688
Bar Harbor Bankshares		200		6,884
BBCN Bancorp, Inc.		3,185		54,846
Blue Hills Bancorp, Inc.		1,300		19,903
BNC Bancorp		1,200		30,456

127

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
Boston Private Financial Holdings, Inc.		2,858	$	32,410
Bridge Bancorp, Inc.		707		21,514
Bryn Mawr Bank Corp.		732		21,023
C1 Financial Inc.*		400		9,684
Camden National Corp.		326		14,373
Capital Bank Financial Corp., Class A		1,000		31,980
Capital City Bank Group, Inc.		269		4,129
Cardinal Financial Corp.		1,218		27,710
Cascade Bancorp*		1,262		7,660
Cass Information Systems, Inc.		454		23,363
Cathay General Bancorp		3,050		95,557
CenterState Banks, Inc.		1,932		30,236
Central Pacific Financial Corp.		800		17,616
Century Bancorp, Inc., Class A		69		2,999
Chemical Financial Corp.		1,366		46,813
Citizens & Northern Corp.		356		7,476
City Holding Co.		648		29,575
CNB Financial Corp.		474		8,546
CoBiz Financial, Inc.		1,700		22,814
Columbia Banking System, Inc.		2,214		71,977
Community Bank System, Inc.		1,711		68,337
Community Trust Bancorp, Inc.		683		23,878
CommunityOne Bancorp*		700		9,429
ConnectOne Bancorp, Inc.		1,060		19,811
CU Bancorp*		800		20,288
Customers Bancorp, Inc.*		880		23,954
CVB Financial Corp.		3,992		67,545
Eagle Bancorp, Inc.*		1,173		59,201
Enterprise Bancorp, Inc.		300		6,855
Enterprise Financial Services Corp.		782		22,170
F.N.B. Corp.		6,408		85,483
Farmers Capital Bank Corp.*		300		8,133
Fidelity Southern Corp.		607		13,542
Financial Institutions, Inc.		440		12,320
First Bancorp		824		15,442
First Bancorp Puerto Rico*		4,700		15,275
First Bancorp, Inc.		234		4,790
First Busey Corp.		934		19,268
First Business Financial Services, Inc.		400		10,004
First Citizens BancShares, Inc., Class A		304		78,484
First Commonwealth Financial Corp.		3,121		28,307
First Community Bancshares, Inc.		626		11,662
First Connecticut Bancorp, Inc.		659		11,473
First Financial Bancorp		2,205		39,844
First Financial Bankshares, Inc.		2,452		73,977
First Financial Corp.		480		16,306
First Interstate BancSystem, Inc.		800		23,256
First Merchants Corp.		1,538		39,096
First Midwest Bancorp, Inc.		2,814		51,862
First NBC Bank Holding Co.*		600		22,434
FirstMerit Corp.		6,394		119,248
Franklin Financial Network Inc.*		300		9,414
Fulton Financial Corp.		6,900		89,769
German American Bancorp, Inc.		392		13,061
Glacier Bancorp, Inc.		2,921		77,494
Great Southern Bancorp, Inc.		471		21,317

	Number of Shares		Value†
Banks — (continued)
Great Western Bancorp, Inc.		1,600	$	46,432
Green Bancorp Inc.*		700		7,336
Guaranty Bancorp		500		8,270
Hancock Holding Co.		3,072		77,322
Hanmi Financial Corp.		1,213		28,772
Heartland Financial USA, Inc.		717		22,485
Heritage Commerce Corp.		600		7,176
Heritage Financial Corp.		1,130		21,289
Heritage Oaks Bancorp		1,300		10,413
Home BancShares, Inc.		2,164		87,685
Horizon Bancorp		400		11,184
IBERIABANK Corp.		1,446		79,631
Independent Bank Corp.		971		45,171
Independent Bank Corp.		1,000		15,230
Independent Bank Group, Inc.		400		12,800
International Bancshares Corp.		1,925		49,473
Kearny Financial Corp.		3,276		41,507
Lakeland Bancorp, Inc.		1,111		13,099
Lakeland Financial Corp.		594		27,692
LegacyTexas Financial Group, Inc.		1,866		46,687
MainSource Financial Group, Inc.		921		21,072
MB Financial, Inc.		2,884		93,355
Mercantile Bank Corp.		500		12,270
Merchants Bancshares, Inc.		86		2,708
Metro Bancorp, Inc.		563		17,667
MidWestOne Financial Group, Inc.		400		12,164
National Bankshares, Inc.		319		11,337
National Commerce Corp.*		400		10,020
National Penn Bancshares, Inc.		5,387		66,422
NBT Bancorp, Inc.		1,769		49,320
NewBridge Bancorp		1,100		13,398
OFG Bancorp		1,810		13,249
Old National Bancorp		4,186		56,762
Old Second Bancorp, Inc.*		1,600		12,544
Opus Bank		300		11,091
Pacific Continental Corp.		862		12,827
Park National Corp.		524		47,412
Park Sterling Corp.		1,600		11,712
Peapack Gladstone Financial Corp.		636		13,114
Penns Woods Bancorp, Inc.		268		11,379
Peoples Bancorp, Inc.		572		10,776
Peoples Financial Services Corp.		300		11,424
Pinnacle Financial Partners, Inc.		1,363		70,004
Preferred Bank		500		16,510
PrivateBancorp, Inc.		3,098		127,080
Prosperity Bancshares, Inc.		2,726		130,466
QCR Holdings, Inc.		400		9,716
Renasant Corp.		1,635		56,260
Republic Bancorp, Inc., Class A		387		10,221
S&T Bancorp, Inc.		1,259		38,802
Sandy Spring Bancorp, Inc.		1,085		29,252
Seacoast Banking Corp of Florida*		1,040		15,579
ServisFirst Bancshares, Inc.		800		38,024
Sierra Bancorp		712		12,567
Simmons First National Corp., Class A		1,100		56,496
South State Corp.		958		68,928

128

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Banks — (continued)
Southside Bancshares, Inc.		901	$	21,642
Southwest Bancorp, Inc.		636		11,117
State Bank Financial Corp.		1,200		25,236
Stock Yards Bancorp, Inc.		645		24,375
Stonegate Bank		500		16,430
Suffolk Bancorp		443		12,559
Sun Bancorp, Inc.*		220		4,541
Talmer Bancorp, Inc.		1,900		34,409
Texas Capital Bancshares, Inc.*		1,673		82,680
The Bancorp, Inc.*		1,412		8,994
The First of Long Island Corp.		593		17,790
Tompkins Financial Corp.		558		31,337
Towne Bank		1,832		38,234
TriCo Bancshares		904		24,806
TriState Capital Holdings, Inc.*		1,000		13,990
Triumph BanCorp., Inc.*		500		8,250
TrustCo Bank Corp.		3,252		19,967
Trustmark Corp.		2,630		60,595
UMB Financial Corp.		1,481		68,941
Umpqua Holdings Corp.		8,501		135,166
Union Bankshares Corp.		1,828		46,139
United Bankshares, Inc.		2,692		99,577
United Community Banks, Inc.		1,878		36,602
Univest Corp. of Pennsylvania		600		12,516
Valley National Bancorp		8,635		85,055
Walker & Dunlop, Inc.*		900		25,929
Washington Trust Bancorp, Inc.		670		26,478
Webster Financial Corp.		3,528		131,206
WesBanco, Inc.		1,531		45,961
West Bancorporation, Inc.		778		15,366
Westamerica Bancorporation		1,073		50,163
Western Alliance Bancorp*		3,319		119,019
Wilshire Bancorp, Inc.		2,676		30,908
Wintrust Financial Corp.		1,742		84,522
Yadkin Financial Corp.		1,100		27,687
				5,658,942
Beverages — 0.2%
Coca-Cola Bottling Co. Consolidated		174		31,757
Craft Brew Alliance, Inc.*		700		5,859
Farmer Bros Co.*		204		6,583
National Beverage Corp.*		442		20,084
The Boston Beer Co., Inc., Class A*		359		72,486
				136,769
Biotechnology — 3.7%
Acceleron Pharma, Inc.*		900		43,884
Achillion Pharmaceuticals, Inc.*		4,300		46,397
Acorda Therapeutics, Inc.*		1,531		65,496
Aduro Biotech, Inc.*		300		8,442
Advaxis, Inc.*		1,000		10,060
Affimed NV*		279		1,987
Agenus, Inc.*		3,200		14,528
Alder Biopharmaceuticals, Inc.*		900		29,727
AMAG Pharmaceuticals, Inc.*		1,256		37,919
ANI Pharmaceuticals, Inc.*		300		13,538

	Number of Shares		Value†
Biotechnology — (continued)
Applied Genetic Technologies Corp.*		600	$	12,240
Ardelyx, Inc.*		800		14,496
Arena Pharmaceuticals, Inc.*		8,506		16,161
ARIAD Pharmaceuticals, Inc.*		6,600		41,250
Assembly Biosciences, Inc.*		400		3,004
Atara Biotherapeutics, Inc.*		700		18,487
Avalanche Biotechnologies, Inc.*		700		6,664
Bellicum Pharmaceuticals, Inc.*		300		6,081
BioCryst Pharmaceuticals, Inc.*		2,900		29,928
BioTime, Inc.*		1,100		4,510
Blueprint Medicines Corp.*		300		7,902
Cambrex Corp.*		1,167		54,954
Celldex Therapeutics, Inc.*		3,644		57,138
Cellular Biomedicine Group, Inc.*		300		6,447
Coherus Biosciences, Inc.*		800		18,368
CTI BioPharma Corp.*		5,000		6,150
Curis, Inc.*		3,600		10,476
Cytokinetics, Inc.*		1,000		10,460
CytomX Therapeutics Inc.*		400		8,348
CytRx Corp.*		2,600		6,890
Dermira, Inc.*		500		17,305
Dynavax Technologies Corp.*		1,320		31,891
Emergent BioSolutions, Inc.*		1,058		42,331
Epizyme, Inc.*		1,000		16,020
Exact Sciences Corp.*		3,600		33,228
Exelixis, Inc.*		8,169		46,073
Fibrocell Science, Inc.*		400		1,820
Five Prime Therapeutics, Inc.*		800		33,200
Foundation Medicine, Inc.*		518		10,909
Galena Biopharma, Inc.*		8,000		11,760
Genocea Biosciences, Inc.*		600		3,162
Geron Corp.*		6,550		31,702
Halozyme Therapeutics, Inc.*		3,989		69,129
Harvard Bioscience, Inc.*		2,100		7,287
Idera Pharmaceuticals, Inc.*		2,300		7,107
ImmunoGen, Inc.*		3,263		44,279
Immunomedics, Inc.*		2,936		9,014
Inovio Pharmaceuticals, Inc.*		2,500		16,800
Insmed, Inc.*		2,300		41,745
Karyopharm Therapeutics, Inc.*		800		10,600
Kite Pharma, Inc.*		1,100		67,782
Lexicon Pharmaceuticals, Inc.*		1,760		23,426
Ligand Pharmaceuticals, Inc.*		644		69,823
Lion Biotechnologies, Inc.*		1,500		11,580
Loxo Oncology, Inc.*		300		8,535
MacroGenics, Inc.*		1,300		40,261
Merrimack Pharmaceuticals, Inc.*		4,500		35,550
Momenta Pharmaceuticals, Inc.*		2,182		32,381
Myriad Genetics, Inc.*		2,700		116,532
NeoGenomics, Inc.*		1,700		13,379
NewLink Genetics Corp.*		700		25,473
Novavax, Inc.*		10,129		84,982
Ocata Therapeutics, Inc.*		2,000		16,840
Omeros Corp.*		1,400		22,022
OncoMed Pharmaceuticals, Inc.*		600		13,524
Oncothyreon, Inc.*		3,300		7,326

129

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Biotechnology — (continued)
Organovo Holdings, Inc.*		2,700	$	6,723
Pacific Biosciences of California, Inc.*		2,400		31,512
Paratek Pharmaceuticals, Inc.*		400		7,588
PDL BioPharma, Inc.		6,217		22,008
Peregrine Pharmaceuticals, Inc.*		5,800		6,786
Pfenex, Inc.*		500		6,190
Prothena Corp. PLC*		1,200		81,732
PTC Therapeutics, Inc.*		1,200		38,880
REGENXBIO Inc.*		300		4,980
Repligen Corp.*		1,300		36,777
Retrophin, Inc.*		1,200		23,148
Rigel Pharmaceuticals, Inc.*		2,690		8,151
RTI Surgical, Inc.*		2,035		8,079
Sage Therapeutics, Inc.*		500		29,150
Sangamo BioSciences, Inc.*		2,403		21,939
Sequenom, Inc.*		5,097		8,359
Spark Therapeutics, Inc.*		300		13,593
Spectrum Pharmaceuticals, Inc.*		2,414		14,556
Stemline Therapeutics, Inc.*		400		2,524
The Medicines Co.*		2,592		96,785
Theravance Biopharma Inc.*		1,000		16,390
Theravance, Inc.		2,900		30,566
Tokai Pharmaceuticals Inc.*		600		5,232
Trovagene, Inc.*		800		4,320
Ultragenyx Pharmaceutical, Inc.*		1,500		168,270
Verastem, Inc.*		600		1,116
Versartis, Inc.*		700		8,673
XOMA Corp.*		3,600		4,788
ZIOPHARM Oncology, Inc.*		4,627		38,450
				2,433,975
Building Materials — 1.3%
AAON, Inc.		1,585		36,804
Apogee Enterprises, Inc.		1,043		45,381
Boise Cascade Co.*		1,400		35,742
Builders FirstSource, Inc.*		2,173		24,077
Comfort Systems USA, Inc.		1,527		43,397
Continental Building Products, Inc.*		1,100		19,206
Drew Industries, Inc.		891		54,253
Gibraltar Industries, Inc.*		1,101		28,009
Griffon Corp.		1,256		22,357
Headwaters, Inc.*		2,880		48,586
Louisiana-Pacific Corp.*		5,394		97,146
LSI Industries, Inc.		1,314		16,018
Masonite International Corp.*		1,100		67,353
NCI Building Systems, Inc.*		1,264		15,686
Nortek, Inc.*		400		17,448
Patrick Industries, Inc.*		450		19,575
PGT, Inc.*		1,700		19,363
Ply Gem Holdings, Inc.*		600		7,524
Quanex Building Products Corp.		1,425		29,711
Simpson Manufacturing Co., Inc.		1,685		57,543
Summit Materials, Inc., Class A*		913		18,296
Trex Co., Inc.*		1,262		48,006
Universal Forest Products, Inc.		783		53,534
US Concrete, Inc.*		600		31,596
				856,611

	Number of Shares		Value†
Chemicals — 1.6%
A. Schulman, Inc.		1,188	$	36,400
Aceto Corp.		1,042		28,113
American Vanguard Corp.		1,078		15,103
Axiall Corp.		2,600		40,040
Balchem Corp.		1,205		73,264
Chemtura Corp.*		2,514		68,557
Ferro Corp.*		2,638		29,335
H.B. Fuller Co.		1,980		72,211
Hawkins, Inc.		449		16,061
Innophos Holdings, Inc.		796		23,068
Innospec, Inc.		900		48,879
Intrepid Potash, Inc.*		2,100		6,195
KMG Chemicals, Inc.		200		4,604
Kraton Performance Polymers, Inc.*		1,241		20,613
Kronos Worldwide, Inc.		900		5,076
Landec Corp.*		1,218		14,409
Minerals Technologies, Inc.		1,328		60,902
Oil-Dri Corp. of America		97		3,572
Olin Corp.		6,192		106,874
OMNOVA Solutions, Inc.*		2,368		14,516
PolyOne Corp.		3,355		106,555
Quaker Chemical Corp.		511		39,480
Rayonier Advanced Materials, Inc.		1,400		13,706
Rentech, Inc.*		718		2,527
Sensient Technologies Corp.		1,774		111,443
Stepan Co.		708		35,180
Tronox Ltd., Class A		2,400		9,384
Univar Inc.*		1,700		28,917
				1,034,984
Coal — 0.0%
Cloud Peak Energy, Inc.*		2,600		5,408
Peabody Energy Corp.		633		4,862
SunCoke Energy, Inc.		2,341		8,123
Westmoreland Coal Co.*		600		3,528
				21,921
Commercial Services — 5.1%
ABM Industries, Inc.		2,139		60,897
Acacia Research Corp.		1,880		8,065
Alarm.com Holdings, Inc.*		400		6,672
Albany Molecular Research, Inc.*		900		17,865
American Public Education, Inc.*		755		14,051
AMN Healthcare Services, Inc.*		1,909		59,274
Apollo Education Group, Inc., Class A*		3,300		25,311
ARC Document Solutions, Inc.*		1,436		6,347
Arrowhead Research Corp.*		2,100		12,915
Ascent Capital Group Inc., Class A*		531		8,878
Barrett Business Services, Inc.		342		14,891
Bridgepoint Education, Inc.*		480		3,653
Bright Horizons Family Solutions, Inc.*		1,400		93,520
Capella Education Co.		407		18,812
Cardtronics, Inc.*		1,763		59,325
Care.com Inc*		1,100		7,876
Career Education Corp.*		2,300		8,349
Carriage Services, Inc.		600		14,460

130

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Commercial Services — (continued)
CBIZ, Inc.*		2,140	$	21,100
CDI Corp.		741		5,009
CEB, Inc.		1,269		77,904
Civeo Corp.*		3,700		5,254
Collectors Universe, Inc.		400		6,200
CorVel Corp.*		462		20,291
CPI Card Group Inc.*		800		8,528
CRA International, Inc.*		274		5,110
Cross Country Healthcare, Inc.*		1,084		17,767
Deluxe Corp.		1,907		104,008
DeVry Education Group, Inc.		2,300		58,213
Electro Rent Corp.		715		6,578
Ennis, Inc.		858		16,517
Euronet Worldwide, Inc.*		1,955		141,601
Everi Holdings, Inc.*		2,396		10,518
EVERTEC, Inc.		2,600		43,524
ExamWorks Group, Inc.*		1,500		39,900
ExlService Holdings, Inc.*		1,200		53,916
Forrester Research, Inc.		375		10,680
Franklin Covey Co.*		241		4,034
FTI Consulting, Inc.*		1,556		53,931
Grand Canyon Education, Inc.*		1,756		70,451
Great Lakes Dredge & Dock Corp.*		2,751		10,894
Green Dot Corp.*		1,900		31,198
Healthcare Services Group, Inc.		2,680		93,452
HealthEquity, Inc.*		1,300		32,591
Heartland Payment Systems, Inc.		1,469		139,291
Heidrick & Struggles International, Inc.		669		18,210
HMS Holdings Corp.*		3,415		42,141
Huron Consulting Group, Inc.*		828		49,183
ICF International, Inc.*		748		26,599
INC Research Holdings, Inc.*		500		24,255
Insperity, Inc.		724		34,861
James River Group Holdings Ltd.		400		13,416
K12, Inc.*		1,152		10,138
Kelly Services, Inc., Class A		1,014		16,376
Kforce, Inc.		1,086		27,454
Korn/Ferry International		1,990		66,028
Landauer, Inc.		480		15,802
LendingTree, Inc.*		200		17,856
Liberty Tax, Inc.		200		4,766
LifeLock, Inc.*		3,700		53,095
Matthews International Corp., Class A		1,205		64,407
MAXIMUS, Inc.		2,488		139,950
McGrath RentCorp		953		24,006
Medifast, Inc.		331		10,056
MoneyGram International, Inc.*		878		5,505
Monro Muffler Brake, Inc.		1,237		81,914
Monster Worldwide, Inc.*		3,900		22,347
Multi-Color Corp.		467		27,931
National Research Corp.		687		11,019
Navigant Consulting, Inc.*		1,984		31,863
On Assignment, Inc.*		1,952		87,742
PAREXEL International Corp.*		2,099		142,984
Patriot National Inc.*		500		3,355
Paylocity Holding Corp.*		500		20,275

	Number of Shares		Value†
Commercial Services — (continued)
Pendrell Corp.*		5,800	$	2,906
PFSWeb, Inc.*		400		5,148
Quad/Graphics, Inc.		1,000		9,300
Rent-A-Center, Inc.		1,953		29,236
Resources Connection, Inc.		1,322		21,601
RPX Corp.*		2,100		23,100
ServiceSource International, Inc.*		2,400		11,064
Sotheby’s		2,341		60,304
SP Plus Corp.*		793		18,953
Strayer Education, Inc.*		400		24,048
Team Health Holdings, Inc.*		2,772		121,663
Team, Inc.*		792		25,312
TeleTech Holdings, Inc.		707		19,732
The Advisory Board Co.*		1,550		76,896
The Brink’s Co.		1,910		55,123
The Hackett Group, Inc.		1,116		17,934
The Providence Service Corp.*		600		28,152
Travelport Worldwide Ltd.		4,200		54,180
TriNet Group, Inc.*		1,400		27,090
TrueBlue, Inc.*		1,576		40,598
Universal Technical Institute, Inc.		525		2,447
Vectrus, Inc.*		300		6,267
Viad Corp.		771		21,765
Weight Watchers International, Inc.*		1,200		27,360
				3,353,334
Computers — 2.8%
A10 Networks, Inc.*		800		5,248
Agilysys, Inc.*		376		3,756
Barracuda Networks, Inc.*		200		3,736
CACI International, Inc., Class A*		950		88,141
Carbonite, Inc.*		800		7,840
Ciber, Inc.*		3,557		12,485
Convergys Corp.		3,883		96,648
Cray, Inc.*		1,599		51,888
Datalink Corp.*		900		6,120
Diebold, Inc.		2,500		75,225
Digimarc Corp.*		300		10,953
Electronics For Imaging, Inc.*		1,824		85,254
Engility Holdings, Inc.		700		22,736
EPAM Systems, Inc.*		1,900		149,378
Fleetmatics Group PLC*		1,500		76,185
Globant SA*		500		18,755
Immersion Corp.*		842		9,818
Insight Enterprises, Inc.*		1,543		38,760
LivePerson, Inc.*		1,925		12,994
Luxoft Holding Inc.*		700		53,991
Manhattan Associates, Inc.*		2,768		183,159
Mentor Graphics Corp.		3,676		67,712
Mercury Systems, Inc.*		1,436		26,365
MTS Systems Corp.		560		35,510
NetScout Systems, Inc.*		3,465		106,376
Nimble Storage, Inc.*		1,800		16,560
Pure Storage Inc., Class A*		1,200		18,684
Qualys, Inc.*		900		29,781
Quantum Corp.*		8,761		8,148

131

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Computers — (continued)
RealD, Inc.*		1,608	$	16,964
Science Applications International Corp.		1,800		82,404
Silicon Graphics International Corp.*		1,366		8,059
Silver Spring Networks, Inc.*		1,500		21,615
Stratasys Ltd.*		1,800		42,264
Super Micro Computer, Inc.*		1,271		31,152
Sykes Enterprises, Inc.*		1,536		47,278
Synaptics, Inc.*		1,416		113,761
Syntel, Inc.*		1,160		52,490
The KEYW Holding Corp.*		1,300		7,826
Unisys Corp.*		1,724		19,050
Varonis Systems, Inc.*		300		5,640
Violin Memory, Inc.*		3,500		3,150
Virtusa Corp.*		1,089		45,019
Vocera Communications, Inc.*		800		9,760
				1,828,638
Cosmetics & Personal Care — 0.1%
Elizabeth Arden, Inc.*		760		7,524
Inter Parfums, Inc.		624		14,863
Revlon, Inc., Class A*		570		15,869
				38,256
Distribution & Wholesale — 0.8%
Beacon Roofing Supply, Inc.*		1,981		81,578
Core-Mark Holding Co., Inc.		882		72,271
Essendant, Inc.		1,519		49,383
H&E Equipment Services, Inc.		1,159		20,259
Owens & Minor, Inc.		2,476		89,087
Pool Corp.		1,676		135,387
Rentrak Corp.*		465		22,101
ScanSource, Inc.*		1,181		38,052
Titan Machinery, Inc.*		523		5,716
Veritiv Corp.*		300		10,866
				524,700
Diversified Financial Services — 2.4%
Aircastle Ltd.		2,476		51,724
Altisource Asset Management Corp.*		53		909
Altisource Portfolio Solutions SA*		500		13,905
Ashford, Inc.*		26		1,385
Associated Capital Group Inc., Class A*		262		7,991
BGC Partners, Inc., Class A		6,907		67,758
Blackhawk Network Holdings, Inc.*		2,000		88,420
Calamos Asset Management, Inc., Class A		469		4,540
Cohen & Steers, Inc.		817		24,902
Cowen Group, Inc., Class A*		3,790		14,516
Diamond Hill Investment Group, Inc.		107		20,223
Ellie Mae, Inc.*		1,100		66,253
Encore Capital Group, Inc.*		997		28,993
Enova International, Inc.*		1,029		6,802
Evercore Partners, Inc., Class A		1,322		71,481
Federal Agricultural Mortgage Corp., Class C		300		9,471
Financial Engines, Inc.		1,900		63,973
FNFV Group*		2,800		31,444
GAIN Capital Holdings, Inc.		800		6,488

	Number of Shares		Value†
Diversified Financial Services — (continued)
GAMCO Investors, Inc., Class A		262	$	8,132
Greenhill & Co., Inc.		1,100		31,471
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		1,400		26,488
Houlihan Lokey Inc.		600		15,726
Impac Mortgage Holdings, Inc.*		500		9,000
INTL. FCstone, Inc.*		593		19,842
Investment Technology Group, Inc.		1,300		22,126
Janus Capital Group, Inc.		5,600		78,904
KCG Holdings, Inc.*		1,181		14,538
Ladder Capital Corp.Class A		1,400		17,388
Ladenburg Thalmann Financial Services, Inc.*		4,000		11,040
MarketAxess Holdings, Inc.		1,399		156,114
Marlin Business Services Corp.		200		3,212
Moelis & Co., Class A		600		17,508
Nationstar Mortgage Holdings, Inc.*		1,300		17,381
Nelnet, Inc., Class A		799		26,822
NewStar Financial, Inc.*		1,300		11,674
Ocwen Financial Corp.*		3,800		26,486
OM Asset Management PLC		900		13,797
On Deck Capital, Inc.*		400		4,120
Oppenheimer Holdings, Inc., Class A		238		4,136
PennyMac Financial Service, Class A*		500		7,680
PHH Corp.*		1,989		32,222
Piper Jaffray Cos.*		687		27,755
PRA Group, Inc.*		1,848		64,107
Pzena Investment Management, Inc., Class A		130		1,118
RCS Capital Corp.*		1,600		487
Regional Management Corp.*		200		3,094
Stifel Financial Corp.*		2,506		106,154
Stonegate Mortgage Corp.*		300		1,635
Teton Advisors, Inc., Class B~		2		98
The J.G. Wentworth Company, Class A*		400		720
Virtu Financial, Inc., Class A		600		13,584
Virtus Investment Partners, Inc.		272		31,949
Wageworks, Inc.*		1,300		58,981
Walter Investment Management Corp.*		1,353		19,240
Westwood Holdings Group, Inc.		311		16,200
WisdomTree Investments, Inc.		4,400		68,992
World Acceptance Corp.*		262		9,720
				1,580,819
Electric — 2.0%
Abengoa Yield PLC		1,700		32,793
ALLETE, Inc.		1,851		94,086
Ameresco, Inc., Class A*		1,100		6,875
Atlantic Power Corp.		4,127		8,130
Avista Corp.		2,439		86,267
Black Hills Corp.		1,948		90,446
Cleco Corp.		2,271		118,569
Dynegy, Inc.*		5,000		67,000
El Paso Electric Co.		1,577		60,715
EnerNOC, Inc.*		1,300		5,005
Genie Energy Ltd.		800		8,920
IDACORP, Inc.		1,901		129,268
MGE Energy, Inc.		1,342		62,269

132

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Electric — (continued)
NorthWestern Corp.		1,780	$	96,565
NRG Yield, Inc.		1,500		20,865
NRG Yield, Inc.		2,500		36,900
Ormat Technologies, Inc.		1,500		54,705
Otter Tail Corp.		1,292		34,406
PNM Resources, Inc.		2,910		88,959
Portland General Electric Co.		3,456		125,695
Talen Energy Corp.*		2,900		18,067
The Empire District Electric Co.		1,719		48,252
Unitil Corp.		663		23,788
				1,318,545
Electrical Components & Equipment — 0.9%
Advanced Energy Industries, Inc.*		1,693		47,793
Belden, Inc.		1,655		78,910
Encore Wire Corp.		771		28,596
EnerSys		1,723		96,367
Generac Holdings, Inc.*		2,649		78,861
General Cable Corp.		1,900		25,517
Graham Corp.		466		7,838
Insteel Industries, Inc.		691		14,456
Littelfuse, Inc.		878		93,955
Powell Industries, Inc.		429		11,167
PowerSecure International, Inc.*		800		12,040
Universal Display Corp.*		1,549		84,328
Vicor Corp.*		422		3,849
				583,677
Electronics — 2.2%
Allied Motion Technologies Inc.		400		10,472
American Science & Engineering, Inc.		278		11,504
Applied Optoelectronics, Inc.*		700		12,012
AVX Corp.		1,600		19,424
Badger Meter, Inc.		559		32,752
Bel Fuse, Inc., Class B		269		4,651
Benchmark Electronics, Inc.*		2,077		42,932
Brady Corp., Class A		1,857		42,674
Checkpoint Systems, Inc.		1,545		9,687
Coherent, Inc.*		873		56,841
Control4 Corp.*		400		2,908
CTS Corp.		1,263		22,279
ESCO Technologies, Inc.		1,034		37,369
FARO Technologies, Inc.*		620		18,302
FEI Co.		1,546		123,355
Fluidigm Corp.*		1,100		11,891
GSl Group, Inc.*		1,500		20,430
II-VI, Inc.*		2,056		38,159
IMAX Corp.*		2,200		78,188
Imprivata, Inc.*		300		3,390
Itron, Inc.*		1,500		54,270
Kimball Electronics, Inc.*		933		10,254
Mesa Laboratories, Inc.		100		9,950
Methode Electronics, Inc.		1,460		46,472
Multi-Fineline Electronix, Inc.*		152		3,143
Newport Corp.*		1,463		23,218
NVE Corp.		209		11,742

	Number of Shares		Value†
Electronics — (continued)
OSI Systems, Inc.*		757	$	67,116
Park Electrochemical Corp.		833		12,545
Plexus Corp.*		1,303		45,501
Rofin-Sinar Technologies, Inc.*		1,186		31,761
Rogers Corp.*		660		34,036
Sanmina Corp.*		3,126		64,333
Sparton Corp.*		400		7,996
Stoneridge, Inc.*		1,273		18,840
TASER International, Inc.*		2,011		34,770
Tech Data Corp.*		1,400		92,932
TTM Technologies, Inc.*		2,429		15,813
Vishay Intertechnology, Inc.		5,400		65,070
Vishay Precision Group, Inc.*		300		3,396
Watts Water Technologies, Inc., Class A		1,117		55,481
Woodward, Inc.		2,523		125,292
ZAGG, Inc.*		900		9,846
				1,442,997
Energy-Alternate Sources — 0.3%
Clean Energy Fuels Corp.*		2,900		10,440
Enphase Energy, Inc.*		400		1,404
FuelCell Energy Inc.*		581		2,882
FutureFuel Corp.		1,100		14,850
Green Plains, Inc.		1,467		33,594
Pacific Ethanol, Inc.*		900		4,302
Pattern Energy Group, Inc.		2,300		48,093
Plug Power, Inc.*		6,800		14,348
Renewable Energy Group, Inc.*		1,600		14,864
REX American Resources Corp.*		192		10,381
Solazyme, Inc.*		3,100		7,688
Sunrun Inc.*		1,000		11,770
TerraForm Global Inc., Class A		2,100		11,739
Vivint Solar, Inc.*		800		7,648
				194,003
Engineering & Construction — 0.8%
Aegion Corp.*		1,555		30,027
Argan, Inc.		536		17,366
Dycom Industries, Inc.*		1,353		94,656
EMCOR Group, Inc.		2,363		113,519
Exponent, Inc.		1,040		51,948
Granite Construction, Inc.		1,444		61,962
Hill International, Inc.*		1,500		5,820
MasTec, Inc.*		2,464		42,824
McDermott International, Inc.*		9,300		31,155
Mistras Group, Inc.*		800		15,272
MYR Group, Inc.*		683		14,077
NV5 Holdings Inc*		300		6,594
Orion Marine Group, Inc.*		1,137		4,741
Tutor Perini Corp.*		1,397		23,386
VSE Corp.		104		6,467
				519,814
Entertainment — 1.1%
AMC Entertainment Holdings, Inc., Class A		800		19,200
Carmike Cinemas, Inc.*		800		18,352

133

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Entertainment — (continued)
Churchill Downs, Inc.		520	$	73,575
DreamWorks Animation SKG, Inc., Class A*		3,000		77,310
Eldorado Resorts, Inc.*		1,000		11,000
Eros International PLC*		1,200		10,980
International Speedway Corp.		1,100		37,092
Isle of Capri Casinos, Inc.*		841		11,715
Marriott Vacations Worldwide Corp.		1,000		56,950
National CineMedia, Inc.		2,374		37,296
Penn National Gaming, Inc.*		3,200		51,264
Pinnacle Entertainment, Inc.*		2,382		74,128
Reading International, Inc., Class A*		700		9,177
Scientific Games Corp., Class A*		1,900		17,043
SeaWorld Entertainment, Inc.		2,700		53,163
SFX Entertainment, Inc.*		1,500		285
Speedway Motorsports, Inc.		316		6,547
Vail Resorts, Inc.		1,446		185,073
				750,150
Environmental Control — 0.4%
Calgon Carbon Corp.		2,162		37,295
Casella Waste Systems, Inc., Class A*		2,300		13,754
CECO Environmental Corp.		709		5,445
Darling Ingredients, Inc.*		6,267		65,929
Fenix Parts Inc*		800		5,432
Heritage-Crystal Clean, Inc.*		200		2,120
MSA Safety, Inc.		1,121		48,730
Tetra Tech, Inc.		2,364		61,511
TRC Cos., Inc.*		900		8,325
U.S. Ecology, Inc.		742		27,038
				275,579
Food — 2.0%
Amplify Snack Brands Inc.*		900		10,368
B&G Foods, Inc.		2,172		76,063
Boulder Brands, Inc.*		2,579		28,317
Cal-Maine Foods, Inc.		1,246		57,740
Calavo Growers, Inc.		651		31,899
Dean Foods Co.		3,700		63,455
Diamond Foods, Inc.*		1,076		41,480
Fairway Group Holdings Corp.*		600		396
Fresh Del Monte Produce Inc.		1,216		47,278
Ingles Markets, Inc., Class A		604		26,624
Inventure Foods, Inc.*		500		3,550
J&J Snack Foods Corp.		532		62,068
John B. Sanfilippo & Son, Inc.		400		21,612
Lancaster Colony Corp.		672		77,589
Lifeway Foods, Inc.*		87		966
NutriSystem, Inc.		1,037		22,441
Performance Food Group Co.*		700		16,198
Post Holdings, Inc.*		2,400		148,080
Sanderson Farms, Inc.		834		64,652
Seaboard Corp.*		11		31,842
Seneca Foods Corp., Class A*		211		6,115
Senomyx, Inc.*		1,800		6,786
Smart & Final Stores, Inc.*		1,100		20,031
Snyder’s-Lance, Inc.		1,879		64,450

	Number of Shares		Value†
Food — (continued)
SpartanNash Co.		1,530	$	33,109
SUPERVALU, Inc.*		10,300		69,834
The Chefs’ Warehouse Holdings, Inc.*		750		12,510
The Fresh Market, Inc.*		1,700		39,814
Tootsie Roll Industries, Inc.		835		26,378
TreeHouse Foods, Inc.*		1,614		126,634
United Natural Foods, Inc.*		1,900		74,784
Village Super Market, Inc., Class A		268		7,062
Weis Markets, Inc.		466		20,644
				1,340,769
Forest Products & Paper — 0.4%
Clearwater Paper Corp.*		778		35,422
Deltic Timber Corp.		392		23,077
KapStone Paper and Packaging Corp.		3,240		73,192
Neenah Paper, Inc.		674		42,078
Orchids Paper Products Co.		400		12,368
P.H. Glatfelter Co.		1,659		30,592
Schweitzer-Mauduit International, Inc.		1,176		49,380
Wausau Paper Corp.		1,781		18,220
				284,329
Gas — 1.3%
Chesapeake Utilities Corp.		535		30,361
New Jersey Resources Corp.		3,264		107,581
Northwest Natural Gas Co.		1,050		53,141
ONE Gas, Inc.		2,000		100,340
Piedmont Natural Gas Co., Inc.		2,951		168,266
South Jersey Industries, Inc.		2,480		58,330
Southwest Gas Corp.		1,794		98,957
The Laclede Group, Inc.		1,656		98,383
WGL Holdings, Inc.		1,894		119,303
				834,662
Hand & Machine Tools — 0.1%
Franklin Electric Co., Inc.		1,870		50,546
Milacron Holdings Corp.*		700		8,757
				59,303
Healthcare Products — 4.1%
Abaxis, Inc.		829		46,159
ABIOMED, Inc.*		1,589		143,455
Accelerate Diagnostics, Inc.*		951		20,437
Accuray, Inc.*		2,738		18,482
Affymetrix, Inc.*		3,271		33,004
Analogic Corp.		507		41,878
AngioDynamics, Inc.*		958		11,630
AtriCure, Inc.*		1,200		26,928
Atrion Corp.		61		23,253
BioTelemetry, Inc.*		800		9,344
Cantel Medical Corp.		1,275		79,229
Cardiovascular Systems, Inc.*		1,000		15,120
Cepheid, Inc.*		2,680		97,900
Cerus Corp.*		3,600		22,752
ConforMIS Inc.*		600		10,374
CONMED Corp.		1,003		44,182
CryoLife, Inc.		1,399		15,081

134

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Healthcare Products — (continued)
Cutera, Inc.*		500	$	6,395
Cynosure, Inc., Class A*		894		39,935
Endologix, Inc.*		2,298		22,750
Exactech, Inc.*		209		3,793
GenMark Diagnostics, Inc.*		1,200		9,312
Genomic Health, Inc.*		709		24,957
Glaukos Corp.*		400		9,876
Globus Medical, Inc.*		2,600		72,332
Greatbatch, Inc.*		993		52,133
Haemonetics Corp.*		1,946		62,739
Halyard Health, Inc.*		1,700		56,797
Hanger, Inc.*		1,408		23,162
HeartWare International, Inc.*		689		34,726
ICU Medical, Inc.*		579		65,300
Inogen, Inc.*		700		28,063
Insulet Corp.*		2,146		81,140
Integra LifeSciences Holdings Corp.*		1,026		69,542
Intersect ENT, Inc.*		500		11,250
Invacare Corp.		1,190		20,694
InVivo Therapeutics Holdings Corp.*		900		6,480
K2M Group Holdings, Inc.*		600		11,844
LDR Holding Corp.*		900		22,599
LeMaitre Vascular, Inc.		400		6,900
LivaNova PLC*		100		6,450
LivaNova PLC*		1,532		90,955
Luminex Corp.*		1,753		37,497
Masimo Corp.*		1,704		70,733
Medgenics Inc.*		1,000		6,020
Meridian Bioscience, Inc.		1,760		36,115
Merit Medical Systems, Inc.*		1,575		29,279
MiMedx Group, Inc.*		3,800		35,606
Nanostring Technologies, Inc.*		600		8,826
Natus Medical, Inc.*		1,175		56,459
Navidea Biopharmaceuticals, Inc.*		6,000		7,980
Novocure Ltd.*		400		8,944
NuVasive, Inc.*		1,906		103,134
NxStage Medical, Inc.*		2,284		50,043
Ocular Therapeutix, Inc.*		700		6,559
OraSure Technologies, Inc.*		2,201		14,174
Orthofix International NV*		671		26,310
Oxford Immunotec Global PLC*		600		6,900
Penumbra Inc.*		200		10,762
Quidel Corp.*		1,051		22,281
Rockwell Medical, Inc.*		1,800		18,432
SeaSpine Holdings Corp.*		308		5,291
Sientra, Inc.*		200		1,184
STAAR Surgical Co.*		1,400		9,996
STERIS PLC		3,232		243,499
SurModics, Inc.*		373		7,561
T2 Biosystems Inc.*		600		6,564
Tandem Diabetes Care, Inc.*		400		4,724
The Spectranetics Corp.*		1,465		22,063
TransEnterix Inc*		2,500		6,200
Unilife Corp.*		3,410		1,688
Utah Medical Products, Inc.		200		11,708
Vascular Solutions, Inc.*		783		26,927

	Number of Shares		Value†
Healthcare Products — (continued)
West Pharmaceutical Services, Inc.		2,678	$	161,269
Wright Medical Group NV*		3,518		85,065
Zeltiq Aesthetics, Inc.*		1,300		37,089
				2,686,214
Healthcare Services — 1.9%
AAC Holdings, Inc.*		200		3,812
Addus Homecare Corp.*		400		9,312
Adeptus Health, Inc., Class A*		200		10,904
Air Methods Corp.*		1,487		62,350
Alliance HealthCare Services, Inc.*		200		1,836
Almost Family, Inc.*		277		10,590
Amedisys, Inc.*		1,006		39,556
Amsurg Corp.*		2,023		153,748
Capital Senior Living Corp.*		1,036		21,611
Catalent, Inc.*		3,300		82,599
Chemed Corp.		629		94,224
Civitas Solutions, Inc.*		400		11,516
Five Star Quality Care, Inc.*		2,500		7,950
Genesis Healthcare, Inc.*		1,861		6,458
HealthSouth Corp.		3,536		123,088
Healthways, Inc.*		1,258		16,190
Kindred Healthcare, Inc.		3,374		40,184
LHC Group, Inc.*		582		26,359
Magellan Health Services, Inc.*		1,041		64,188
Molina Healthcare, Inc.*		1,468		88,271
Natera, Inc.*		700		7,560
National Healthcare Corp.		406		25,050
Nobilis Health Corp.*		1,200		3,384
OvaScience, Inc.*		800		7,816
RadNet, Inc.*		1,500		9,270
Select Medical Holdings Corp.		3,700		44,067
Surgery Partners Inc.*		700		14,343
Surgical Care Affiliates, Inc.*		900		35,829
Teladoc, Inc.*		500		8,980
The Ensign Group, Inc.		1,880		42,544
Triple-S Management Corp., Class B*		791		18,913
U.S. Physical Therapy, Inc.		491		26,357
Universal American Corp.		1,780		12,460
WellCare Health Plans, Inc.*		1,726		134,991
				1,266,310
Holding Companies — 0.2%
FCB Financial Holdings Inc*		1,000		35,790
HRG Group, Inc.*		2,775		37,629
National Bank Holdings Corp.		1,400		29,918
Resource America, Inc., Class A		1,000		6,130
Tiptree Financial, Inc.		1,100		6,754
				116,221
Home Builders — 0.8%
Beazer Homes USA, Inc.*		1,424		16,362
CalAtlantic Group, Inc.		2,897		109,854
Cavco Industries, Inc.*		369		30,741
Century Communities, Inc.*		500		8,855
Green Brick Partners, Inc.*		1,100		7,920

135

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Home Builders — (continued)
Hovnanian Enterprises, Inc., Class A*		4,810	$	8,706
Installed Building Products, Inc.*		700		17,381
KB Home		2,900		35,757
LGI Homes, Inc.*		600		14,598
M/I Homes, Inc.*		836		18,325
MDC Holdings, Inc.		1,500		38,295
Meritage Homes Corp.*		1,490		50,645
Taylor Morrison Home Corp.*		1,100		17,600
The New Home Co., Inc.*		600		7,776
TRI Pointe Homes, Inc.*		6,300		79,821
WCI Communities, Inc.*		700		15,596
William Lyon Homes, Class A*		600		9,900
Winnebago Industries, Inc.		1,122		22,328
				510,460
Home Furnishings — 0.5%
American Woodmark Corp.*		469		37,511
Bassett Furniture Industries, Inc.		300		7,524
Daktronics, Inc.		1,209		10,542
DTS, Inc.*		703		15,874
Ethan Allen Interiors, Inc.		1,028		28,599
Flexsteel Industries, Inc.		200		8,836
Hooker Furniture Corp.		300		7,572
iRobot Corp.*		1,082		38,303
Kimball International, Inc., Class B		1,244		12,154
La-Z-Boy, Inc.		1,962		47,912
Select Comfort Corp.*		2,072		44,361
Skullcandy, Inc.*		407		1,925
TiVo, Inc.*		3,955		34,132
Universal Electronics, Inc.*		600		30,810
VOXX International Corp.*		825		4,339
				330,394
Hotels & Resorts — 0.1%
Caesars Entertainment Corp.*		2,000		15,780
La Quinta Holdings Inc*		3,300		44,913
				60,693
Household Products & Wares — 0.5%
ACCO Brands Corp.*		4,393		31,322
Central Garden & Pet Co., Class A*		1,802		24,507
CSS Industries, Inc.		212		6,017
Helen of Troy Ltd.*		1,095		103,204
Prestige Brands Holdings, Inc.*		1,972		101,518
Tumi Holdings, Inc.*		2,300		38,249
WD-40 Co.		546		53,863
				358,680
Housewares — 0.0%
Libbey, Inc.		800		17,056
Lifetime Brands, Inc.		200		2,652
				19,708
Insurance — 3.0%
Ambac Financial Group, Inc.*		1,700		23,953
American Equity Investment Life Holding Co.		3,176		76,319
AMERISAFE, Inc.		708		36,037

	Number of Shares		Value†
Insurance — (continued)
Argo Group International Holdings Ltd.		1,145	$	68,517
Atlas Financial Holdings Inc.*		400		7,960
Baldwin & Lyons, Inc., Class B		325		7,810
Citizens, Inc.*		1,466		10,892
CNO Financial Group, Inc.		7,393		141,132
Crawford & Co., Class B		1,538		8,167
Donegal Group, Inc., Class A		283		3,985
eHealth, Inc.*		720		7,186
EMC Insurance Group, Inc.		150		3,795
Employers Holdings, Inc.		1,282		34,999
Enstar Group Ltd.*		374		56,115
Essent Group Ltd.*		2,000		43,780
FBL Financial Group, Inc., Class A		327		20,810
Federated National Holding Co.		500		14,780
Fidelity & Guaranty Life		500		12,685
First American Financial Corp.		4,173		149,811
Global Indemnity PLC*		383		11,115
Greenlight Capital Re Ltd.*		1,128		21,105
Hallmark Financial Services, Inc.*		255		2,981
HCI Group, Inc.		300		10,455
Heritage Insurance Holdings, Inc.		800		17,456
Hilltop Holdings, Inc.*		2,983		57,333
Horace Mann Educators Corp.		1,509		50,069
Infinity Property & Casualty Corp.		420		34,537
Kemper Corp.		1,700		63,325
Maiden Holdings Ltd.		1,768		26,361
MBIA, Inc.*		5,500		35,640
MGIC Investment Corp.*		12,827		113,262
National General Holdings Corp.		1,500		32,790
National Interstate Corp.		402		10,733
National Western Life Group Inc.		95		23,934
NMI Holdings, Inc., Class A*		2,100		14,217
OneBeacon Insurance Group Ltd.		1,100		13,651
Primerica, Inc.		1,900		89,737
Radian Group, Inc.		7,203		96,448
RLI Corp.		1,722		106,333
Safety Insurance Group, Inc.		582		32,813
Selective Insurance Group, Inc.		2,175		73,036
State Auto Financial Corp.		776		15,978
State National Cos., Inc.		1,000		9,810
Stewart Information Services Corp.		808		30,163
Symetra Financial Corp.		2,900		92,133
The Navigators Group, Inc.*		395		33,887
Third Point Reinsurance Ltd.*		3,000		40,230
Trupanion Inc.*		1,000		9,760
United Fire Group, Inc.		680		26,051
United Insurance Holdings Corp.		800		13,680
Universal Insurance Holdings, Inc.		1,251		28,998
				1,966,754
Internet — 2.0%
1-800-Flowers.com, Inc., Class A*		737		5,365
Angie’s List, Inc.*		1,600		14,960
Bankrate, Inc.*		2,723		36,216
Bazaarvoice, Inc.*		1,900		8,322
Blucora, Inc.*		1,496		14,661

136

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Internet — (continued)
Blue Nile, Inc.*		439	$	16,300
Boingo Wireless, Inc.*		1,700		11,254
Box, Inc., Class A*		500		6,980
Brightcove, Inc.*		1,200		7,440
ChannelAdvisor Corp.*		900		12,465
Chegg, Inc.*		3,100		20,863
Cogent Communications Holdings, Inc.		1,819		63,101
comScore, Inc.*		1,259		51,808
Constant Contact, Inc.*		1,165		34,065
DHI Group, Inc.*		1,863		17,084
Endurance International Group Holdings, Inc.*		2,100		22,953
ePlus, Inc.*		174		16,227
Etsy, Inc.*		600		4,956
FTD Cos, Inc.*		818		21,407
Global Eagle Entertainment, Inc.*		1,500		14,805
GrubHub, Inc.*		2,700		65,340
HealthStream, Inc.*		900		19,800
Internap Corp.*		1,921		12,294
IntraLinks Holdings, Inc.*		1,700		15,419
Limelight Networks, Inc.*		1,172		1,711
Lionbridge Technologies, Inc.*		2,243		11,013
Liquidity Services, Inc.*		1,035		6,728
Marketo, Inc.*		1,400		40,194
ModusLink Global Solutions, Inc.*		945		2,344
New Media Investment Group, Inc.		1,700		33,082
NIC, Inc.		2,629		51,739
Overstock.com, Inc.*		571		7,012
Perficient, Inc.*		1,245		21,314
Q2 Holdings, Inc.*		600		15,822
QuinStreet, Inc.*		1,815		7,786
Quotient Technology Inc.*		2,100		14,322
Rapid7 Inc.*		400		6,052
RealNetworks, Inc.*		515		2,189
Reis, Inc.		400		9,492
RetailMeNot, Inc.*		1,300		12,896
RingCentral, Inc., Class A*		1,900		44,802
Safeguard Scientifics, Inc.*		850		12,333
Shutterfly, Inc.*		1,490		66,394
Shutterstock, Inc.*		800		25,872
Stamps.com, Inc.*		562		61,601
TechTarget, Inc.*		500		4,015
TeleCommunication Systems, Inc., Class A*		1,400		6,958
Textura Corp.*		800		17,264
The Rubicon Project, Inc.*		800		13,160
Travelzoo, Inc.*		311		2,603
TrueCar, Inc.*		1,700		16,218
United Online, Inc.*		500		5,895
VASCO Data Security International, Inc.*		1,028		17,198
VirnetX Holding Corp.*		1,583		4,068
Wayfair, Inc., Class A*		700		33,334
Web.com Group, Inc.*		1,500		30,015
WebMD Health Corp.*		1,486		71,774
Wix.com Ltd.*		600		13,650
XO Group, Inc.*		859		13,796
Zendesk, Inc.*		1,900		50,236

	Number of Shares		Value†
Internet — (continued)
Zix Corp.*		1,848	$	9,388
				1,278,355
Investment Companies — 0.0%
Arlington Asset Investment Corp., Class A		900		11,907
Caesars Acquisition Co., Class A*		1,900		12,939
Real Industry, Inc.*		800		6,424
				31,270
Iron & Steel — 0.3%
AK Steel Holding Corp.*		7,200		16,128
Carpenter Technology Corp.		1,800		54,486
Cliffs Natural Resources, Inc.*		5,300		8,374
Commercial Metals Co.		4,500		61,605
Ryerson Holding Corp.*		800		3,736
Schnitzer Steel Industries, Inc., Class A		900		12,933
TimkenSteel Corp.		1,400		11,732
				168,994
Leisure Time — 0.5%
Arctic Cat, Inc.		444		7,273
Black Diamond, Inc.*		1,300		5,746
Callaway Golf Co.		2,746		25,867
ClubCorp Holdings, Inc.		1,500		27,405
Diamond Resorts International, Inc.*		1,700		43,367
Escalade, Inc.		600		7,950
Fox Factory Holding Corp.*		500		8,265
Interval Leisure Group, Inc.		1,416		22,104
Johnson Outdoors, Inc.		200		4,378
Liberty TripAdvisor Holdings, Inc.*		2,900		87,986
Malibu Boats, Inc., Class A*		500		8,185
Marine Products Corp.		160		966
Nautilus, Inc.*		1,300		21,736
Performance Sports Group Ltd.*		1,600		15,408
Planet Fitness Inc., Class A*		800		12,504
				299,140
Lodging — 0.2%
Belmond Ltd., Class A*		3,745		35,577
Boyd Gaming Corp.*		3,000		59,610
Intrawest Resorts Holdings, Inc.*		1,000		7,820
Monarch Casino & Resort, Inc.*		485		11,019
Morgans Hotel Group Co.*		1,494		5,035
The Marcus Corp.		933		17,699
				136,760
Machinery — Construction & Mining — 0.1%
Astec Industries, Inc.		698		28,408
Hyster-Yale Materials Handling, Inc.		344		18,043
				46,451
Machinery — Diversified — 0.6%
Alamo Group, Inc.		317		16,516
Albany International Corp., Class A		1,132		41,375
Altra Industrial Motion Corp.		1,003		25,155
Applied Industrial Technologies, Inc.		1,582		64,055
Briggs & Stratton Corp.		1,536		26,573

137

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Machinery — Diversified — (continued)
Chart Industries, Inc.*		1,177	$	21,139
Columbus McKinnon Corp.		685		12,947
DXP Enterprises, Inc.*		522		11,902
Hurco Cos., Inc.		200		5,312
Kadant, Inc.		499		20,264
Lindsay Corp.		453		32,797
NACCO Industries, Inc., Class A		222		9,368
Power Solutions International, Inc.*		100		1,825
Tennant Co.		736		41,407
The ExOne Co.*		500		5,020
The Gorman-Rupp Co.		751		20,074
Twin Disc, Inc.		235		2,472
Xerium Technologies, Inc.*		400		4,740
				362,941
Media — 1.2%
Central European Media Enterprises Ltd.*		3,100		8,339
Crown Media Holdings, Inc., Class A*		1,917		10,754
Cumulus Media, Inc., Class A*		5,200		1,717
Daily Journal Corp.*		102		20,604
Entercom Communications Corp., Class A*		700		7,861
Entravision Communications Corp., Class A		2,800		21,588
Gray Television, Inc.*		2,600		42,380
Hemisphere Media Group, Inc.*		600		8,850
Houghton Mifflin Harcourt Co.*		5,300		115,434
Media General, Inc.*		3,500		56,525
Meredith Corp.		1,400		60,550
Nexstar Broadcasting Group, Inc., Class A		1,200		70,440
Saga Communications, Inc.		133		5,114
Scholastic Corp.		956		36,863
Sinclair Broadcast Group, Inc., Class A		2,417		78,649
The E.W. Scripps Co., Class A		2,329		44,251
The New York Times Co., Class A		5,321		71,408
Time, Inc.		4,300		67,381
Tribune Publishing Co.		900		8,298
World Wrestling Entertainment, Inc., Class A		1,314		23,442
				760,448
Metal Fabricate/Hardware — 0.7%
Advanced Drainage Systems, Inc.		1,200		28,836
CIRCOR International, Inc.		735		30,980
Furmanite Corp.*		1,354		9,018
Global Brass & Copper Holdings, Inc.		1,000		21,300
Haynes International, Inc.		564		20,693
L.B. Foster Co., Class A		366		4,999
Lawson Products, Inc.*		400		9,340
Mueller Industries, Inc.		2,188		59,295
Mueller Water Products, Inc., Class A		6,192		53,251
NN, Inc.		1,000		15,940
Northwest Pipe Co.*		483		5,405
Olympic Steel, Inc.		231		2,675
Omega Flex, Inc.		59		1,948
RBC Bearings, Inc.*		837		54,062
Rexnord Corp.*		4,000		72,480
Sun Hydraulics Corp.		859		27,256
Worthington Industries, Inc.		1,884		56,784
				474,262

	Number of Shares		Value†
Mining — 0.4%
Century Aluminum Co.*		1,754	$	7,753
Coeur Mining, Inc.*		6,128		15,197
Energy Fuels, Inc.*		1,600		4,720
Ferroglobe PLC		2,414		25,950
Hecla Mining Co.		12,817		24,224
Horsehead Holding Corp.*		1,983		4,065
Kaiser Aluminum Corp.		616		51,535
Materion Corp.		857		23,996
Ring Energy, Inc.*		800		5,640
Stillwater Mining Co.*		4,524		38,771
United States Lime & Minerals, Inc.		29		1,594
Uranium Energy Corp.*		6,400		6,784
US Silica Holdings, Inc.		2,100		39,333
				249,562
Miscellaneous Manufacturing — 1.5%
Actuant Corp., Class A		2,106		50,460
American Railcar Industries, Inc.		400		18,512
AZZ, Inc.		976		54,236
Barnes Group, Inc.		2,065		73,080
Blount International, Inc.*		1,995		19,571
Chase Corp.		200		8,146
CLARCOR, Inc.		1,898		94,293
Core Molding Technologies, Inc.*		300		3,849
EnPro Industries, Inc.		917		40,201
Fabrinet*		1,500		35,730
Federal Signal Corp.		2,343		37,136
FreightCar America, Inc.		570		11,075
GP Strategies Corp.*		400		10,044
Handy & Harman Ltd.*		200		4,102
Harsco Corp.		3,200		25,216
Hillenbrand, Inc.		2,374		70,342
John Bean Technologies Corp.		1,029		51,275
Koppers Holdings, Inc.*		820		14,965
LSB Industries, Inc.*		749		5,430
Lydall, Inc.*		600		21,288
Movado Group, Inc.		760		19,540
Myers Industries, Inc.		1,125		14,985
NL Industries, Inc.*		90		274
Park-Ohio Holdings Corp.		400		14,712
Proto Labs, Inc.*		900		57,321
Raven Industries, Inc.		1,346		20,998
Smith & Wesson Holding Corp.*		2,179		47,894
Standex International Corp.		500		41,575
Sturm Ruger & Co., Inc.		719		42,859
Tredegar Corp.		1,061		14,451
TriMas Corp.*		1,795		33,477
Trinseo SA*		600		16,920
				973,957
Office & Business Equipment — 0.0%
Eastman Kodak Co.*		800		10,032
Office Furnishings — 0.4%
Herman Miller, Inc.		2,232		64,059
HNI Corp.		1,643		59,247

138

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Office Furnishings — (continued)
Interface, Inc.		2,595	$	49,668
Knoll, Inc.		1,953		36,716
Steelcase, Inc., Class A		3,131		46,652
				256,342
Oil & Gas — 1.2%
Abraxas Petroleum Corp.*		4,100		4,346
Adams Resources & Energy, Inc.		100		3,840
Alon USA Energy, Inc.		1,352		20,064
Approach Resources, Inc.*		1,341		2,467
Atwood Oceanics, Inc.		2,300		23,529
Bill Barrett Corp.*		2,025		7,958
Bonanza Creek Energy, Inc.*		1,700		8,959
Callon Petroleum Co.*		2,800		23,352
Carrizo Oil & Gas, Inc.*		2,265		66,999
Clayton Williams Energy, Inc.*		217		6,417
Contango Oil & Gas Co.*		703		4,506
Delek US Holdings, Inc.		2,298		56,531
Eclipse Resources Corp.*		1,400		2,548
Energy XXI Ltd.		3,733		3,770
Evolution Petroleum Corp.		500		2,405
EXCO Resources, Inc.*		6,375		7,905
Fairmount Santrol Holdings, Inc.*		2,200		5,170
Gastar Exploration, Inc.*		2,600		3,406
Halcon Resources Corp.*		1,975		2,488
Isramco, Inc.*		21		1,875
Jones Energy, Inc.*		600		2,310
Matador Resources Co.*		2,900		57,333
North Atlantic Drilling Ltd.*		280		689
Northern Oil & Gas, Inc.*		2,253		8,697
Oasis Petroleum, Inc.*		5,000		36,850
Panhandle Oil and Gas, Inc., Class A		634		10,245
Par Petroleum Corp.*		500		11,770
Parker Drilling Co.*		5,217		9,495
Parsley Energy, Inc., Class A*		3,700		68,265
PDC Energy, Inc.*		1,512		80,711
Penn Virginia Corp.*		2,412		725
Rex Energy Corp.*		1,800		1,890
RSP Permian, Inc.*		2,400		58,536
Sanchez Energy Corp.*		1,900		8,189
SandRidge Energy, Inc.*		14,400		2,880
Seventy Seven Energy, Inc.*		1,800		1,890
Stone Energy Corp.*		2,079		8,919
Synergy Resources Corp.*		3,800		32,376
TransAtlantic Petroleum Ltd*		1,000		1,390
Trecora Resources*		1,000		12,390
Triangle Petroleum Corp.*		2,800		2,156
Ultra Petroleum Corp.*		5,400		13,500
Unit Corp.*		1,800		21,960
W&T Offshore, Inc.*		1,643		3,795
Western Refining, Inc.		2,737		97,492
				812,988
Oil & Gas Services — 0.6%
Archrock Inc.		2,600		19,552
Basic Energy Services, Inc.*		1,188		3,184

	Number of Shares		Value†
Oil & Gas Services — (continued)
C&J Energy Services Ltd.*		1,830	$	8,711
CARBO Ceramics, Inc.		800		13,760
Exterran Corp.*		1,300		20,865
Flotek Industries, Inc.*		2,000		22,880
Forum Energy Technologies, Inc.*		2,300		28,658
Geospace Technologies Corp.*		476		6,697
Helix Energy Solutions Group, Inc.*		4,101		21,571
Hornbeck Offshore Services, Inc.*		1,378		13,697
Independence Contract Drilling Inc.*		1,100		5,555
ION Geophysical Corp.*		5,465		2,750
Key Energy Services, Inc.*		5,224		2,519
Matrix Service Co.*		987		20,273
MRC Global Inc*		3,600		46,440
Natural Gas Services Group, Inc.*		594		13,246
Newpark Resources, Inc.*		3,512		18,543
Oil States International, Inc.*		2,100		57,225
Pioneer Energy Services Corp.*		2,650		5,751
SEACOR Holdings, Inc.*		700		36,792
Tesco Corp.		1,400		10,136
TETRA Technologies, Inc.*		2,979		22,402
Thermon Group Holdings, Inc.*		1,100		18,612
				419,819
Packaging and Containers — 0.3%
AEP Industries, Inc.*		138		10,647
Berry Plastics Group, Inc.*		4,600		166,428
Greif, Inc., Class A		1,100		33,891
Multi Packaging Solutions International Ltd.*		800		13,880
				224,846
Pharmaceuticals — 4.7%
ACADIA Pharmaceuticals, Inc.*		3,000		106,950
Aclaris Therapeutics Inc., Class A*		300		8,082
Adamas Pharmaceuticals, Inc.*		300		8,496
Aegerion Pharmaceuticals, Inc.*		1,100		11,110
Aerie Pharmaceuticals, Inc.*		700		17,045
Aimmune Therapeutics Inc.*		500		9,225
Akebia Therapeutics, Inc.*		1,200		15,504
Alimera Sciences, Inc.*		1,100		2,662
Amicus Therapeutics, Inc.*		4,400		42,680
Amphastar Pharmaceuticals, Inc.*		1,100		15,653
Anacor Pharmaceuticals, Inc.*		1,600		180,752
Anika Therapeutics, Inc.*		500		19,080
Antares Pharma, Inc.*		5,200		6,292
Anthera Pharmaceuticals, Inc.*		1,100		5,104
Aratana Therapeutics, Inc.*		900		5,022
Array BioPharma, Inc.*		4,748		20,037
Axovant Sciences Ltd.*		800		14,424
BioDelivery Sciences International, Inc.*		1,900		9,101
BioScrip, Inc.*		2,011		3,519
Biospecifics Technologies Corp.*		300		12,891
Cara Therapeutics, Inc.*		800		13,488
Catalyst Pharmaceuticals, Inc.*		2,400		5,880
Cempra, Inc.*		1,100		34,243
ChemoCentryx, Inc.*		1,000		8,100
Chiasma Inc.*		400		7,828

139

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Pharmaceuticals — (continued)
Chimerix, Inc.*		1,700	$	15,215
Clovis Oncology, Inc.*		1,100		38,500
Collegium Pharmaceutical Inc.*		400		11,000
Concert Pharmaceuticals, Inc.*		500		9,485
Corcept Therapeutics, Inc.*		2,900		14,442
DepoMed, Inc.*		2,283		41,391
Dicerna Pharmaceuticals, Inc.*		500		5,935
Diplomat Pharmacy, Inc.*		1,300		44,486
Durect Corp.*		3,500		7,735
Dyax Corp.*		5,620		211,424
Eagle Pharmaceuticals, Inc.*		300		26,601
Enanta Pharmaceuticals, Inc.*		600		19,812
Endocyte, Inc.*		1,500		6,015
Esperion Therapeutics, Inc.*		500		11,130
Fibrogen, Inc.*		1,700		51,799
Flexion Therapeutics, Inc.*		400		7,708
Foamix Pharmaceuticals Ltd.*		700		5,677
Global Blood Therapeutics Inc.*		300		9,699
Heron Therapeutics, Inc.*		1,200		32,040
Heska Corp.*		300		11,604
Ignyta, Inc.*		600		8,040
Immune Design Corp.*		400		8,032
Impax Laboratories, Inc.*		2,637		112,758
Infinity Pharmaceuticals, Inc.*		1,828		14,350
Insys Therapeutics, Inc.*		800		22,904
Intra-Cellular Therapies, Inc.*		1,100		59,169
Ironwood Pharmaceuticals, Inc.*		4,461		51,703
Keryx Biopharmaceuticals, Inc.*		3,500		17,675
La Jolla Pharmaceutical CO*		400		10,800
Lannett Co., Inc.*		997		40,000
MannKind Corp.*		8,904		12,911
Mirati Therapeutics, Inc.*		500		15,800
Natural Grocers By Vitamin Cottage, Inc.*		400		8,148
Natural Health Trends Corp.		300		10,059
Nature’s Sunshine Products, Inc.		200		2,024
Nektar Therapeutics*		4,833		81,436
Neogen Corp.*		1,502		84,893
Neos Therapeutics Inc.*		400		5,728
Neurocrine Biosciences, Inc.*		3,277		185,380
Nevro Corp.*		700		47,257
Northwest Biotherapeutics, Inc.*		1,600		5,120
Nutraceutical International Corp.*		196		5,061
Omega Protein Corp.*		1,000		22,200
Ophthotech Corp.*		900		70,677
Orexigen Therapeutics, Inc.*		4,188		7,203
Osiris Therapeutics, Inc.		773		8,024
Otonomy, Inc.*		700		19,425
Pacira Pharmaceuticals, Inc.*		1,400		107,506
Pernix Therapeutics Holdings, Inc.*		1,500		4,425
PharMerica Corp.*		1,220		42,700
Phibro Animal Health Corp., Class A		700		21,091
Portola Pharmaceuticals, Inc.*		1,900		97,755
POZEN, Inc.*		1,002		6,844
PRA Health Sciences, Inc.*		800		36,216
Progenics Pharmaceuticals, Inc.*		2,601		15,944
Proteon Therapeutics Inc.*		500		7,755

	Number of Shares		Value†
Pharmaceuticals — (continued)
Radius Health, Inc.*		1,200	$	73,848
Raptor Pharmaceutical Corp.*		2,600		13,520
Regulus Therapeutics, Inc.*		1,200		10,464
Relypsa, Inc.*		1,100		31,174
Revance Therapeutics, Inc.*		700		23,912
Sagent Pharmaceuticals, Inc.*		1,000		15,910
Sarepta Therapeutics, Inc.*		1,600		61,728
SciClone Pharmaceuticals, Inc.*		2,277		20,948
Seres Therapeutics, Inc.*		400		14,036
Sorrento Therapeutics, Inc.*		900		7,839
Sucampo Pharmaceuticals, Inc., Class A*		871		15,060
Supernus Pharmaceuticals, Inc.*		1,400		18,816
Synergy Pharmaceuticals, Inc.*		4,300		24,381
Synta Pharmaceuticals Corp.*		1,921		676
Synutra International, Inc.*		311		1,465
Teligent Inc.*		1,800		16,020
TESARO, Inc.*		900		47,088
Tetraphase Pharmaceuticals, Inc.*		1,200		12,036
TG Therapeutics, Inc.*		1,200		14,316
TherapeuticsMD, Inc.*		4,500		46,665
Threshold Pharmaceuticals, Inc.*		2,000		960
Trevena, Inc.*		1,000		10,500
USANA Health Sciences, Inc.*		224		28,616
Vanda Pharmaceuticals, Inc.*		1,841		17,140
Vitae Pharmaceuticals, Inc.*		500		9,050
Vital Therapies, Inc.*		800		9,216
VIVUS, Inc.*		3,770		3,845
Voyager Therapeutics Inc.*		300		6,570
Xencor, Inc.*		1,000		14,620
XenoPort, Inc.*		1,927		10,579
Zafgen, Inc.*		600		3,774
Zogenix, Inc.*		1,175		17,319
				3,043,970
Pipelines — 0.1%
Primoris Services Corp.		1,490		32,825
SemGroup Corp.		1,600		46,176
				79,001
Publishing / Newspapers — 0.2%
Cimpress NV*		1,300		105,482
Real Estate — 0.5%
Alexander & Baldwin, Inc.		1,800		63,558
AV Homes, Inc.*		195		2,498
Consolidated-Tomoka Land Co.		124		6,536
Forestar Group, Inc.*		1,163		12,723
FRP Holdings, Inc.*		369		12,524
HFF, Inc., Class A		1,500		46,605
Kennedy-Wilson Holdings, Inc.		3,581		86,231
Marcus & Millichap, Inc.*		500		14,570
RE/MAX Holdings, Inc., Class A		400		14,920
RMR Group Inc., Class A*		67		965
The St. Joe Co.*		2,100		38,871
				300,001
Retail — 5.6%
Abercrombie & Fitch Co., Class A		2,500		67,500

140

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Retail — (continued)
America’s Car-Mart, Inc.*		227	$	6,059
American Eagle Outfitters, Inc.		7,500		116,250
Asbury Automotive Group, Inc.*		1,049		70,745
Ascena Retail Group, Inc.*		6,713		66,123
Barnes & Noble Education, Inc.*		1,137		11,313
Barnes & Noble, Inc.		1,800		15,678
bebe Stores, Inc.		1,517		857
Big 5 Sporting Goods Corp.		581		5,804
Big Lots, Inc.		1,900		73,226
Biglari Holdings, Inc.*		70		22,807
BJ’s Restaurants, Inc.*		820		35,645
Bloomin’ Brands, Inc.		4,800		81,072
BMC Stock Holdings Inc.*		1,500		25,125
Bob Evans Farms, Inc.		842		32,712
Bojangles’, Inc.*		500		7,935
Boot Barn Holdings, Inc.*		400		4,916
Bravo Brio Restaurant Group, Inc.*		500		4,500
Buffalo Wild Wings, Inc.*		747		119,259
Build-A-Bear Workshop, Inc.*		700		8,568
Burlington Stores, Inc.*		2,900		124,410
Caleres, Inc.		1,654		44,360
Carrols Restaurant Group, Inc.*		1,713		20,111
Casey’s General Stores, Inc.		1,540		185,493
Cash America International, Inc.		1,125		33,694
Chico’s FAS, Inc.		5,600		59,752
Christopher & Banks Corp.*		1,500		2,475
Chuy’s Holdings, Inc.*		600		18,804
Citi Trends, Inc.		503		10,689
Conn’s, Inc.*		1,104		25,911
Cracker Barrel Old Country Store, Inc.		724		91,825
Dave & Buster’s Entertainment, Inc.*		800		33,392
Del Frisco’s Restaurant Group, Inc.*		1,000		16,020
Denny’s Corp.*		3,552		34,916
Destination XL Group, Inc.*		1,500		8,280
DineEquity, Inc.		671		56,814
Duluth Holdings Inc.*		500		7,295
El Pollo Loco Holdings Inc*		400		5,052
Express, Inc.*		3,154		54,501
Ezcorp, Inc., Class A*		1,766		8,812
Fiesta Restaurant Group, Inc.*		1,013		34,037
First Cash Financial Services, Inc.*		1,162		43,494
Five Below, Inc.*		2,100		67,410
Francesca’s Holdings Corp.*		1,658		28,866
Fred’s, Inc., Class A		1,431		23,425
Freshpet, Inc.*		700		5,943
Genesco, Inc.*		895		50,863
Group 1 Automotive, Inc.		907		68,660
Guess?, Inc.		2,400		45,312
Haverty Furniture Cos., Inc.		950		20,368
Hibbett Sports, Inc.*		955		28,879
HSN, Inc.		1,179		59,740
J. Alexanders Holdings, Inc.*		483		5,274
Jack in the Box, Inc.		1,414		108,468
Jamba, Inc.*		440		5,936
Kirkland’s, Inc.		827		11,991
Kona Grill, Inc.*		500		7,930

	Number of Shares		Value†
Retail — (continued)
Krispy Kreme Doughnuts, Inc.*		2,622	$	39,513
Lands’ End, Inc.*		700		16,408
Lithia Motors, Inc., Class A		894		95,363
Lumber Liquidators Holdings, Inc.*		1,033		17,933
MarineMax, Inc.*		1,000		18,420
Mattress Firm Holding Corp.*		700		31,241
Noodles & Co.*		300		2,907
Ollie’s Bargain Outlet Holdings Inc.*		600		10,206
Outerwall, Inc.		650		23,751
Papa John’s International, Inc.		1,110		62,016
Papa Murphy’s Holdings, Inc.*		500		5,630
Party City Holdco, Inc.*		800		10,328
PC Connection, Inc.		565		12,792
PetMed Express, Inc.		613		10,507
Pier 1 Imports, Inc.		3,644		18,548
Popeyes Louisiana Kitchen, Inc.*		859		50,251
Potbelly Corp.*		1,000		11,710
PriceSmart, Inc.		731		60,666
Red Robin Gourmet Burgers, Inc.*		520		32,105
Regis Corp.*		1,832		25,923
Restoration Hardware Holdings, Inc.*		1,300		103,285
Ruby Tuesday, Inc.*		2,213		12,194
Rush Enterprises, Inc., Class A*		1,435		31,412
Ruth’s Hospitality Group, Inc.		1,195		19,024
Shake Shack, Inc., Class A*		200		7,920
Shoe Carnival, Inc.		458		10,626
Sonic Automotive, Inc., Class A		1,134		25,810
Sonic Corp.		2,032		65,654
Sportsman’s Warehouse Holdings, Inc.*		600		7,740
Stage Stores, Inc.		1,381		12,581
Stein Mart, Inc.		1,261		8,486
Systemax, Inc.*		262		2,253
Texas Roadhouse, Inc.		2,570		91,929
The Buckle, Inc.		1,049		32,288
The Cato Corp., Class A		1,104		40,649
The Cheesecake Factory, Inc.		1,916		88,347
The Children’s Place, Inc.		794		43,829
The Container Store Group, Inc.*		600		4,920
The Finish Line, Inc., Class A		1,793		32,417
The Habit Restaurants, Inc., Class A*		400		9,224
The Men’s Wearhouse, Inc.		1,756		25,778
The Pep Boys - Manny, Moe, & Jack*		2,305		42,435
Tile Shop Holdings, Inc.*		1,300		21,320
Tilly’s, Inc.*		400		2,652
Tuesday Morning Corp.*		1,629		10,588
Vera Bradley, Inc.*		800		12,608
Vitamin Shoppe, Inc.*		1,200		39,240
West Marine, Inc.*		664		5,637
Wingstop Inc.*		400		9,124
Winmark Corp.		100		9,301
Zoe’s Kitchen, Inc.*		700		19,586
Zumiez, Inc.*		703		10,629
				3,651,000
Savings & Loans — 1.9%
Anchor BanCorp Wisconsin, Inc.*		300		13,056

141

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Savings & Loans — (continued)
Astoria Financial Corp.		3,201	$	50,736
Banc of California, Inc.		1,300		19,006
Bank Mutual Corp.		2,432		18,970
BankFinancial Corp.		609		7,692
BBX Capital Corp.*		110		1,721
Bear State Financial Inc.*		800		8,664
Beneficial Bancorp, Inc.*		2,873		38,268
Berkshire Hills Bancorp, Inc.		1,102		32,079
BofI Holding, Inc.*		2,400		50,520
Brookline Bancorp, Inc.		2,922		33,603
BSB Bancorp*		500		11,695
Capitol Federal Financial, Inc.		5,500		69,080
Charter Financial Corp.		900		11,889
Clifton Bancorp, Inc.		1,146		16,434
Dime Community Bancshares, Inc.		1,030		18,015
EverBank Financial Corp.		3,600		57,528
First Defiance Financial Corp.		300		11,334
Flagstar Bancorp, Inc.*		800		18,488
Flushing Financial Corp.		1,338		28,954
Fox Chase Bancorp, Inc.		420		8,522
Hingham Institution for Savings		100		11,980
Homestreet, Inc.*		1,000		21,710
HomeTrust Bancshares, Inc.*		900		18,225
Investors Bancorp, Inc.		13,355		166,136
Meridian Bancorp, Inc.		1,874		26,423
Meta Financial Group, Inc.		200		9,186
Northfield Bancorp, Inc.		1,593		25,361
Northwest Bancshares, Inc.		3,775		50,547
OceanFirst Financial Corp.		327		6,550
Oritani Financial Corp.		1,718		28,347
Pacific Premier Bancorp, Inc.*		700		14,875
Provident Financial Services, Inc.		2,403		48,420
Sterling Bancorp, Inc.		4,714		76,461
Territorial Bancorp, Inc.		243		6,741
United Community Financial Corp.		1,700		10,030
United Financial Bancorp, Inc.		2,131		27,447
Washington Federal, Inc.		3,700		88,171
Waterstone Financial, Inc.		1,000		14,100
WSFS Financial Corp.		1,071		34,658
				1,211,622
Semiconductors — 3.2%
Advanced Micro Devices, Inc.*		25,300		72,611
Alpha & Omega Semiconductor Ltd.*		400		3,676
Ambarella Inc.*		1,200		66,888
Amkor Technology, Inc.*		3,211		19,523
Applied Micro Circuits Corp.*		2,958		18,842
Axcelis Technologies, Inc.*		4,100		10,619
Brooks Automation, Inc.		2,477		26,454
Cabot Microelectronics Corp.*		961		42,073
Cascade Microtech, Inc.*		700		11,375
Cavium, Inc.*		2,079		136,611
CEVA, Inc.*		671		15,675
Cirrus Logic, Inc.*		2,481		73,264
Cohu, Inc.		904		10,911
Diodes, Inc.*		1,399		32,149

	Number of Shares		Value†
Semiconductors — (continued)
DSP Group, Inc.*		557	$	5,258
EMCOR Group, Inc.*		1,200		7,356
Entegris, Inc.*		5,270		69,933
Exar Corp.*		1,532		9,391
Fairchild Semiconductor International, Inc.*		4,400		91,124
FormFactor, Inc.*		2,172		19,548
Gerber Scientific, Inc.~		500		0
Inphi Corp.*		1,400		37,828
Integrated Device Technology, Inc.*		5,593		147,376
Intersil Corp., Class A		5,100		65,076
InvenSense, Inc.*		2,800		28,644
IXYS Corp.		1,266		15,990
Kopin Corp.*		1,507		4,099
Lattice Semiconductor Corp.*		4,924		31,858
M/A-COM Technology Solutions Holdings, Inc.*		800		32,712
Mattson Technology, Inc.*		2,300		8,119
MaxLinear, Inc., Class A*		2,243		33,039
Microsemi Corp.*		3,693		120,355
MKS Instruments, Inc.		1,996		71,856
Monolithic Power Systems, Inc.		1,467		93,463
Nanometrics, Inc.*		900		13,626
OmniVision Technologies, Inc.*		2,119		61,493
Photronics, Inc.*		2,692		33,515
PMC-Sierra, Inc.*		6,900		80,178
Power Integrations, Inc.		1,095		53,250
QLogic Corp.*		3,200		39,040
Rambus, Inc.*		4,123		47,786
Rovi Corp.*		3,100		51,646
Rudolph Technologies, Inc.*		1,054		14,988
Semtech Corp.*		2,609		49,362
Sigma Designs, Inc.*		1,200		7,584
Silicon Laboratories, Inc.*		1,700		82,518
Tessera Technologies, Inc.		2,023		60,710
Ultra Clean Holdings, Inc.*		900		4,608
Ultratech, Inc.*		978		19,384
Veeco Instruments, Inc.*		1,393		28,640
Xcerra Corp.*		2,466		14,919
				2,096,943
Software — 4.8%
2U, Inc.*		900		25,182
ACI Worldwide, Inc.*		4,527		96,878
Actua Corp.*		1,428		16,351
Acxiom Corp.*		2,967		62,070
Amber Road, Inc.*		600		3,054
American Software, Inc., Class A		593		6,037
Aspen Technology, Inc.*		3,253		122,833
AVG Technologies NV*		1,400		28,070
Avid Technology, Inc.*		1,100		8,019
Benefitfocus, Inc.*		200		7,278
Blackbaud, Inc.		1,750		115,255
Bottomline Technologies, Inc.*		1,545		45,933
BroadSoft, Inc.*		1,061		37,517
Callidus Software, Inc.*		2,000		37,140
Castlight Health, Inc., Class B*		1,200		5,124

142

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Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Software — (continued)
CommVault Systems, Inc.*		1,648	$	64,849
Computer Programs & Systems, Inc.		447		22,238
Cornerstone OnDemand, Inc.*		2,100		72,513
CSG Systems International, Inc.		1,281		46,090
Cvent, Inc.*		800		27,928
Demandware, Inc.*		1,200		64,764
Digi International, Inc.*		657		7,477
Ebix, Inc.		1,036		33,970
Envestnet, Inc.*		1,413		42,178
Epiq Systems, Inc.		1,168		15,266
Everyday Health, Inc.*		700		4,214
Evolent Health, Inc., Class A*		700		8,477
Fair Isaac Corp.		1,188		111,886
Five9 Inc.*		1,100		9,570
Glu Mobile, Inc.*		4,000		9,720
Guidance Software, Inc.*		400		2,408
Guidewire Software, Inc.*		2,700		162,432
Hortonworks, Inc.*		300		6,570
HubSpot, Inc.*		700		39,417
Imperva, Inc.*		1,000		63,310
inContact, Inc.*		2,100		20,034
Infoblox, Inc.*		2,100		38,619
InnerWorkings, Inc.*		1,724		12,930
Instructure Inc.*		300		6,246
Interactive Intelligence Group, Inc.*		597		18,758
Jive Software, Inc.*		1,500		6,120
ManTech International Corp., Class A		1,039		31,419
MedAssets, Inc.*		2,448		75,741
Medidata Solutions, Inc.*		2,088		102,917
MicroStrategy, Inc., Class A*		418		74,943
MINDBODY Inc., Class A*		500		7,565
Mobileiron, Inc.*		1,200		4,332
Model N, Inc.*		1,100		12,276
Monotype Imaging Holdings, Inc.		1,599		37,800
New Relic, Inc.*		200		7,286
Omnicell, Inc.*		1,435		44,600
OPOWER, Inc.*		600		6,336
Park City Group Inc.*		700		8,337
Paycom Software, Inc.*		1,100		41,393
PDF Solutions, Inc.*		1,200		13,008
pdvWireless Inc.*		400		11,000
Pegasystems, Inc.		1,260		34,650
Press Ganey Holdings, Inc.*		300		9,465
Progress Software Corp.*		1,986		47,664
Proofpoint, Inc.*		1,500		97,515
PROS Holdings, Inc.*		917		21,128
QAD, Inc.		392		8,044
Qlik Technologies, Inc.*		3,441		108,942
Quality Systems, Inc.		1,704		27,468
RealPage, Inc.*		2,000		44,900
Rocket Fuel, Inc.*		800		2,792
Sapiens International Corp. NV		800		8,160
SciQuest, Inc.*		900		11,673
Seachange International, Inc.*		1,273		8,580
SPS Commerce, Inc.*		600		42,126
Synchronoss Technologies, Inc.*		1,546		54,466

	Number of Shares		Value†
Software — (continued)
SYNNEX Corp.		1,094	$	98,383
Take-Two Interactive Software, Inc.*		3,344		116,505
Tangoe, Inc.*		1,769		14,842
TubeMogul, Inc.*		500		6,800
Tyler Technologies, Inc.*		1,299		226,442
Verint Systems, Inc.*		2,395		97,141
Workiva Inc.*		500		8,785
Xura, Inc.*		990		24,334
				3,134,483
Storage & Warehousing — 0.1%
Mobile Mini, Inc.		1,777		55,318
Wesco Aircraft Holdings, Inc.*		2,140		25,616
				80,934
Telecommunications — 2.9%
8X8, Inc.*		3,400		38,930
ADTRAN, Inc.		2,205		37,970
Aerohive Networks, Inc.*		1,300		6,643
Alliance Fiber Optic Products, Inc.		600		9,096
Anixter International, Inc.*		1,034		62,443
Atlantic Tele-Network, Inc.		349		27,302
Black Box Corp.		562		5,356
CalAmp Corp.*		1,400		27,902
Calix, Inc.*		1,487		11,703
Ciena Corp.*		4,600		95,174
Cincinnati Bell, Inc.*		7,785		28,026
Clearfield, Inc.*		400		5,364
Comtech Telecommunications Corp.		552		11,090
Consolidated Communications Holdings, Inc.		1,841		38,569
DigitalGlobe, Inc.*		2,569		40,230
EarthLink Holdings Corp.		4,016		29,839
Extreme Networks, Inc.*		3,147		12,840
FairPoint Communications, Inc.*		600		9,642
Finisar Corp.*		3,821		55,557
General Communication, Inc., Class A*		1,486		29,393
Gigamon, Inc.*		1,000		26,570
Globalstar, Inc.*		16,600		23,904
Gogo Inc*		2,200		39,160
GTT Communications, Inc.*		800		13,648
Harmonic, Inc.*		2,870		11,681
Hawaiian Telcom Holdco, Inc.*		500		12,430
HC2 Holdings, Inc.*		700		3,703
IDT Corp., Class B		800		9,328
Infinera Corp.*		5,194		94,115
Inteliquent, Inc.		1,226		21,786
Intelsat SA*		1,200		4,992
InterDigital, Inc.		1,294		63,458
Iridium Communications, Inc.*		3,500		29,435
Ixia*		2,113		26,265
j2 Global, Inc.		1,874		154,268
Knowles Corp.*		3,452		46,015
KVH Industries, Inc.*		354		3,335
LogMeIn, Inc.*		881		59,115
Loral Space & Communications, Inc.*		546		22,228
Lumos Networks Corp.		782		8,758

143

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Telecommunications — (continued)
NeoPhotonics Corp.*		900	$	9,774
NETGEAR, Inc.*		1,329		55,698
NeuStar, Inc., Class A*		2,000		47,940
NTELOS Holdings Corp.*		382		3,491
Oclaro, Inc.*		3,000		10,440
ORBCOMM, Inc.*		2,000		14,480
Plantronics, Inc.		1,367		64,823
Polycom, Inc.*		5,300		66,727
Preformed Line Products Co.		45		1,894
RigNet, Inc.*		500		10,345
Ruckus Wireless, Inc.*		2,700		28,917
Shenandoah Telecommunications Co.		859		36,980
ShoreTel, Inc.*		2,281		20,187
Sonus Networks, Inc.*		1,843		13,141
Spok Holdings, Inc.		1,112		20,372
Straight Path Communications, Inc.*		300		5,142
Telenav, Inc.*		1,000		5,690
Ubiquiti Networks, Inc.*		1,200		38,028
ViaSat, Inc.*		1,662		101,399
Vonage Holdings Corp.*		7,500		43,050
West Corp.		2,100		45,297
Windstream Holdings, Inc.		3,500		22,540
				1,923,618
Textiles — 0.2%
Culp, Inc.		300		7,641
G&K Services, Inc., Class A		776		48,810
UniFirst Corp.		577		60,124
				116,575
Toys, Games & Hobbies — 0.0%
JAKKS Pacific, Inc.*		584		4,649
Transportation — 1.6%
Air Transport Services Group, Inc.*		2,085		21,017
ArcBest Corp.		995		21,283
Ardmore Shipping Corp.		800		10,176
Atlas Air Worldwide Holdings, Inc.*		1,048		43,324
Bristow Group, Inc.		1,350		34,965
CAI International, Inc.*		660		6,653
Celadon Group, Inc.		935		9,247
Covenant Transportation Group, Inc.*		400		7,556
DHT Holdings Inc.		3,900		31,551
Dorian LPG Ltd.*		900		10,593
Eagle Bulk Shipping Inc.*		1,200		4,224
Echo Global Logistics, Inc.*		1,000		20,390
Era Group, Inc.*		800		8,920
Forward Air Corp.		1,196		51,440
Frontline Ltd.		9,500		28,405
GasLog Ltd.		1,700		14,110
Gener8 Maritime Inc.*		900		8,505
Golden Ocean Group Ltd.*		2,574		2,754
Gulfmark Offshore, Inc., Class A		979		4,572
Heartland Express, Inc.		1,967		33,479
Hub Group, Inc., Class A*		1,443		47,547
Knight Transportation, Inc.		2,264		54,857
Marten Transport Ltd.		1,051		18,603

	Number of Shares		Value†
Transportation — (continued)
Matson, Inc.		1,600	$	68,208
Navios Maritime Acquisition Corp.		3,700		11,137
Navios Maritime Holdings Inc.		3,200		5,600
Nordic American Offshore Ltd.		900		4,743
Nordic American Tankers Ltd.		3,567		55,431
P.A.M. Transportation Services, Inc.*		200		5,518
PHI, Inc.*		593		9,731
Radiant Logistics, Inc.*		1,000		3,430
Roadrunner Transportation Systems, Inc.*		1,000		9,430
Safe Bulkers Inc.		1,700		1,377
Saia, Inc.*		961		21,382
Scorpio Bulkers Inc.*		1,100		10,879
Scorpio Tankers Inc.		7,100		56,942
Ship Finance International Ltd.		2,284		37,846
Swift Transportation Co.*		3,300		45,606
Teekay Tankers Ltd., Class A		3,193		21,968
Tidewater, Inc.		1,600		11,136
Universal Truckload Services, Inc.		100		1,404
USA Truck, Inc.*		200		3,490
UTi Worldwide Inc.*		3,400		23,902
Werner Enterprises, Inc.		1,752		40,979
XPO Logistics, Inc.*		2,841		77,417
YRC Worldwide, Inc.*		1,300		18,434
				1,040,161
Trucking and Leasing — 0.1%
TAL International Group, Inc.*		1,293		20,559
Textainer Group Holdings Ltd.		812		11,457
The Greenbrier Cos., Inc.		1,047		34,153
				66,169
Water — 0.3%
American States Water Co.		1,524		63,932
Artesian Resources Corp., Class A		413		11,440
California Water Service Group		1,766		41,095
Connecticut Water Service, Inc.		319		12,125
Consolidated Water Co. Ltd.		800		9,792
Middlesex Water Co.		531		14,093
PICO Holdings, Inc.*		792		8,173
SJW Corp.		488		14,469
The York Water Co.		697		17,383
				192,502
TOTAL COMMON STOCKS (Cost $47,118,728)				58,447,601
REAL ESTATE INVESTMENT TRUSTS — 8.9%
Apartments — 0.4%
American Residential Properties, Inc.		1,300		24,570
Bluerock Residential Growth Reit, Inc.		600		7,110
Campus Crest Communities, Inc.		2,300		15,640
Education Realty Trust, Inc.		2,201		83,374
Independence Realty Trust, Inc.		1,792		13,458
Monogram Residential Trust, Inc.		6,500		63,440
Preferred Apartment Communities, Inc.		800		10,464
Silver Bay Realty Trust Corp.		1,637		25,635
				243,691

144

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Building & Real Estate — 1.2%
Agree Realty Corp.		796	$	27,056
Altisource Residential Corp.		2,200		27,302
Anworth Mortgage Asset Corp.		3,731		16,230
Apollo Commercial Real Estate Finance, Inc.		2,200		37,906
Ares Commercial Real Estate Corp.		1,000		11,440
Capstead Mortgage Corp.		3,475		30,372
Colony Financial, Inc. Class A		4,416		86,024
CYS Investments, Inc.		5,856		41,753
Dynex Capital, Inc.		2,307		14,649
Getty Realty Corp.		1,163		19,945
Hatteras Financial Corp.		3,800		49,970
Invesco Mortgage Capital, Inc.		4,407		54,603
iStar Financial, Inc.*		3,318		38,920
New York Mortgage Trust, Inc.		4,700		25,051
PennyMac Mortgage Investment Trust		2,692		41,080
Redwood Trust, Inc.		3,377		44,576
Resource Capital Corp.		1,175		14,993
Select Income REIT		2,200		43,604
Starwood Waypoint Residential Trust		1,600		36,224
Sun Communities, Inc.		1,990		136,375
				798,073
Diversified — 0.9%
AG Mortgage Investment Trust, Inc.		1,188		15,254
Armada Hoffler Properties, Inc.		800		8,384
CatchMark Timber Trust, Inc., Class A		1,300		14,703
CorEnergy Infrastructure Trust Inc.		300		4,452
CoreSite Realty Corp.		900		51,048
DuPont Fabros Technology, Inc.		2,450		77,886
EPR Properties		2,210		129,174
New York REIT, Inc.		6,200		71,300
NexPoint Residential Trust, Inc.		600		7,854
PS Business Parks, Inc.		765		66,884
STAG lndustrial, Inc.		2,600		47,970
The GEO Group, Inc.		2,768		80,023
UMH Properties, Inc.		968		9,796
Whitestone REIT		800		9,608
				594,336
Diversified Financial Services — 0.6%
American Capital Mortgage Investment Corp.		2,043		28,520
Apollo Residential Mortgage, Inc.		1,332		15,918
ARMOUR Residential REIT, Inc.		1,775		38,624
DCT Industrial Trust, Inc.		3,420		127,806
New Residential Investment Corp.		8,600		104,576
Orchid Island Capital, Inc.		600		5,958
RAIT Financial Trust		3,606		9,736
STORE Capital Corp.		1,500		34,800
United Development Funding IV		1,000		11,000
Western Asset Mortgage Capital Corp.		1,597		16,321
				393,259
Forest Products & Paper — 0.1%
Potlatch Corp.		1,578		47,719
Healthcare — 0.8%
CareTrust REIT, Inc.		1,795		19,655

	Number of Shares		Value†
Healthcare — (continued)
Healthcare Realty Trust, Inc.		3,972	$	112,487
LTC Properties, Inc.		1,317		56,815
Medical Properties Trust, Inc.		9,107		104,822
National Health Investors, Inc.		1,457		88,688
New Senior Investment Group, Inc.		3,400		33,524
Physicians Realty Trust		3,400		57,324
Sabra Health Care REIT, Inc.		2,588		52,355
Universal Health Realty Income Trust		520		26,005
				551,675
Hotels & Resorts — 1.2%
Ashford Hospitality Prime, Inc.		987		14,312
Ashford Hospitality Trust, Inc.		3,020		19,056
Chatham Lodging Trust		1,400		28,672
Chesapeake Lodging Trust		2,389		60,107
DiamondRock Hospitality Co.		7,523		72,597
FelCor Lodging Trust, Inc.		5,018		36,631
Hersha Hospitality Trust		1,917		41,714
LaSalle Hotel Properties		4,217		106,100
Pebblebrook Hotel Trust		2,709		75,906
RLJ Lodging Trust		5,100		110,313
Ryman Hospitality Properties, Inc.		1,612		83,244
Summitt Hotel Properties, Inc.		3,500		41,825
Sunstone Hotel Investors, Inc.		7,805		97,484
				787,961
Industrial — 0.5%
EastGroup Properties, Inc.		1,175		65,342
First Industrial Realty Trust, Inc.		4,129		91,375
First Potomac Realty Trust		2,392		27,269
InfraREIT, Inc.*		900		16,650
Monmouth Real Estate Investment Corp., Class A		2,049		21,432
QTS Realty Trust, Inc.		1,100		49,621
Rexford Industrial Realty, Inc.		2,000		32,720
Terreno Realty Corp.		1,675		37,888
				342,297
Internet — 0.1%
CyrusOne, Inc.		2,500		93,625
Mixed Industrial/Office — 0.4%
Cousins Properties, Inc.		8,461		79,787
Gladstone Commercial Corp.		652		9,513
Investors Real Estate Trust		4,618		32,095
Lexington Realty Trust		8,015		64,120
One Liberty Properties, Inc.		503		10,795
Washington Real Estate Investment Trust		2,606		70,518
				266,828
Office Property — 1.0%
American Assets Trust, Inc.		1,400		53,690
Easterly Government Proper, Inc.		500		8,590
Franklin Street Properties Corp.		3,245		33,586
Government Properties Income Trust		2,744		43,547
Gramercy Property Trust		16,317		125,967
Highwoods Properties, Inc.		3,660		159,576

145

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

	Number of Shares		Value†
REAL ESTATE INVESTMENT TRUSTS — (continued)
Office Property — (continued)
Hudson Pacific Properties, Inc.		2,700	$	75,978
Mack-Cali Realty Corp.		3,500		81,725
Parkway Properties, Inc.		3,380		52,830
				635,489
Real Estate — 0.1%
Xenia Hotels & Resorts, Inc.		4,400		67,452
Regional Malls — 0.1%
Pennsylvania Real Estate Investment Trust		2,715		59,377
Rouse Properties, Inc.		1,400		20,384
				79,761
Storage & Warehousing — 0.6%
CubeSmart		6,425		196,734
National Storage Affiliates Trust		700		11,991
Sovran Self Storage, Inc.		1,382		148,302
				357,027
Strip Centers — 0.9%
Acadia Realty Trust		2,520		83,538
Alexander’s, Inc.		86		33,033
Cedar Realty Trust, Inc.		2,826		20,008
Equity One, Inc.		2,854		77,486
Inland Real Estate Corp.		3,688		39,167
Kite Realty Group Trust		3,251		84,298
Ramco-Gershenson Properties Trust		3,141		52,172
Retail Opportunity Investments Corp.		3,900		69,810
Saul Centers, Inc.		451		23,123
Urban Edge Properties		3,500		82,075
Urstadt Biddle Properties, Inc., Class A		1,216		23,396
				588,106
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $5,173,806)				5,847,299
RIGHTS — 0.0%
Chelsea Therapeutics Intl Ltd. CVR~		1,600		0
Clinical Data, Inc.~		354		0
Cubist Pharmaceuticals, Inc.~		1,200		0
Durata Therapeutics CVR Shares~		500		415
Furiex Pharmaceuticals Rights~		300		0
Leap Wireless CVR~		2,300		5,796
TOTAL RIGHTS (Cost $5,740)				6,211
	Par (000)		Value†
U.S. TREASURY OBLIGATIONS — 0.1%
U.S. Treasury Bills1 0.031%, 03/10/16	$	65		64,986
United States Treasury Bill1 0.460%, 06/16/16		4		3,992
TOTAL U.S. TREASURY OBLIGATIONS (Cost $68,988)				68,978

	Number of Shares		Value†
WARRANTS — 0.0%
Magnum Hunter Resources Corp.~ (Cost $0)		780	$	0
SHORT-TERM INVESTMENTS — 1.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,089,653)		1,089,653		1,089,653
TOTAL INVESTMENTS — 100.0% (Cost $53,456,915)			$	65,459,742
Other Assets & Liabilities — 0.0%				20,380
TOTAL NET ASSETS — 100.0%			$	65,480,122

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at December 31, 2015 is $6,309.

¹  All or portion of securities segregated as collateral for futures contracts.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Advertising		0.1%		$	62,515
Aerospace & Defense		1.4%			846,507
Agriculture		0.3%			201,189
Airlines		0.4%			227,785
Apparel		0.7%			433,571
Auto Manufacturers		0.1%			46,670
Auto Parts & Equipment		1.2%			687,876
Banks		9.7%			5,658,942
Beverages		0.2%			136,769
Biotechnology		4.2%			2,433,975
Building Materials		1.5%			856,611
Chemicals		1.8%			1,034,984
Coal		— %	+		21,921
Commercial Services		5.7%			3,353,334
Computers		3.1%			1,828,638
Cosmetics & Personal Care		0.1%			38,256
Distribution & Wholesale		0.9%			524,700
Diversified Financial Services		2.7%			1,580,819
Electric		2.3%			1,318,545
Electrical Components & Equipment		1.0%			583,677
Electronics		2.5%			1,442,997
Energy-Alternate Sources		0.3%			194,003
Engineering & Construction		0.9%			519,814
Entertainment		1.3%			750,150
Environmental Control		0.5%			275,579
Food		2.3%			1,340,769
Forest Products & Paper		0.5%			284,329
Gas		1.4%			834,662
Hand & Machine Tools		0.1%			59,303
Healthcare Products		4.6%			2,686,214

146

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Schedule of Investments — December 31, 2015

Small Cap Index Fund

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Healthcare Services		2.2%		$	1,266,310
Holding Companies		0.2%			116,221
Home Builders		0.9%			510,460
Home Furnishings		0.6%			330,394
Hotels & Resorts		0.1%			60,693
Household Products & Wares		0.6%			358,680
Housewares		—%	+		19,708
Insurance		3.4%			1,966,754
Internet		2.2%			1,278,355
Investment Companies		0.1%			31,270
Iron & Steel		0.3%			168,994
Leisure Time		0.5%			299,140
Lodging		0.2%			136,760
Machinery - Construction & Mining		0.1%			46,451
Machinery - Diversified		0.6%			362,941
Media		1.3%			760,448
Metal Fabricate/Hardware		0.8%			474,262
Mining		0.4%			249,562
Miscellaneous Manufacturing		1.7%			973,957
Office & Business Equipment		—%	+		10,032
Office Furnishings		0.4%			256,342
Oil & Gas		1.4%			812,988
Oil & Gas Services		0.7%			419,819
Packaging and Containers		0.4%			224,846
Pharmaceuticals		5.2%			3,043,970
Pipelines		0.1%			79,001
Publishing / Newspapers		0.2%			105,482
Real Estate		0.5%			300,001
Retail		6.2%			3,651,000
Savings & Loans		2.1%			1,211,622
Semiconductors		3.6%			2,096,943
Software		5.4%			3,134,483
Storage & Warehousing		0.1%			80,934
Telecommunications		3.3%			1,923,618
Textiles		0.2%			116,575
Toys, Games & Hobbies		—%	+		4,649
Transportation		1.8%			1,040,161
Trucking and Leasing		0.1%			66,169
Water		0.3%			192,502
		100.0%		$	58,447,601

+ Rounded.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015			Level 1 Quoted Price			Level 2 Signi ficant Obse rvable Input			Level 3 Signi ficant Unobs ervable Input
COMMON STOCKS
Advertising		$	62,515		$	62,515		$	—		$	—
Aerospace & Defense			846,507			846,507			—			—
Agriculture			201,189			201,189			—			—
Airlines			227,785			227,785			—			—
Apparel			433,571			433,571			—			—
Auto Manufacturers			46,670			46,670			—			—
Auto Parts & Equipment			687,876			687,876			—			—
Banks			5,658,942			5,658,942			—			—

ASSETS TABLE
Description	Total Market Value at 12/31/2015			Level 1 Quoted Price			Level 2 Signi ficant Obse rvable Input			Level 3 Signi ficant Unobs ervable Input
COMMON STOCKS (continued)
Beverages		$	136,769		$	136,769		$	—		$	—
Biotechnology			2,433,975			2,433,975			—			—
Building Materials			856,611			856,611			—			—
Chemicals			1,034,984			1,034,984			—			—
Coal			21,921			21,921			—			—
Commercial Services			3,353,334			3,353,334			—			—
Computers			1,828,638			1,828,638			—			—
Cosmetics & Personal Care			38,256			38,256			—			—
Distribution & Wholesale			524,700			524,700			—			—
Diversified Financial Services			1,580,819			1,580,721			98			—
Electric			1,318,545			1,318,545			—			—
Electrical Components & Equipment			583,677			583,677			—			—
Electronics			1,442,997			1,442,997			—			—
Energy-Alternate Sources			194,003			194,003			—			—
Engineering & Construction			519,814			519,814			—			—
Entertainment			750,150			750,150			—			—
Environmental Control			275,579			275,579			—			—
Food			1,340,769			1,340,769			—			—
Forest Products & Paper			284,329			284,329			—			—
Gas			834,662			834,662			—			—
Hand & Machine Tools			59,303			59,303			—			—
Healthcare Products			2,686,214			2,686,214			—			—
Healthcare Services			1,266,310			1,266,310			—			—
Holding Companies			116,221			116,221			—			—
Home Builders			510,460			510,460			—			—
Home Furnishings			330,394			330,394			—			—
Hotels & Resorts			60,693			60,693			—			—
Household Products & Wares			358,680			358,680			—			—
Housewares			19,708			19,708			—			—
Insurance			1,966,754			1,966,754			—			—
Internet			1,278,355			1,278,355			—			—
Investment Companies			31,270			31,270			—			—
Iron & Steel			168,994			168,994			—			—
Leisure Time			299,140			299,140			—			—
Lodging			136,760			136,760			—			—
Machinery — Construction & Mining			46,451			46,451			—			—
Machinery — Diversified			362,941			362,941			—			—
Media			760,448			760,448			—			—
Metal Fabricate/Hardware			474,262			474,262			—			—
Mining			249,562			249,562			—			—
Miscellaneous Manufacturing			973,957			973,957			—			—
Office & Business Equipment			10,032			10,032			—			—
Office Furnishings			256,342			256,342			—			—
Oil & Gas			812,988			812,988			—			—
Oil & Gas Services			419,819			419,819			—			—
Packaging and Containers			224,846			224,846			—			—
Pharmaceuticals			3,043,970			3,043,970			—			—

147

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Small Cap Index Fund

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Signi ficant Obse rvable Input		Level 3 Signi ficant Unobs ervable Input
COMMON STOCKS (continued)
Pipelines	$	79,001	$	79,001	$	—	$	—
Publishing / Newspapers		105,482		105,482		—		—
Real Estate		300,001		300,001		—		—
Retail		3,651,000		3,651,000		—		—
Savings & Loans		1,211,622		1,211,622		—		—
Semiconductors		2,096,943		2,096,943		—		—
Software		3,134,483		3,134,483		—		—
Storage & Warehousing		80,934		80,934		—		—
Telecommunications		1,923,618		1,923,618		—		—
Textiles		116,575		116,575		—		—
Toys, Games & Hobbies		4,649		4,649		—		—
Transportation		1,040,161		1,040,161		—		—
Trucking and Leasing		66,169		66,169		—		—
Water		192,502		192,502		—		—
REAL ESTATE INVESTMENT TRUSTS
Apartments		243,691		243,691		—		—
Building & Real Estate		798,073		798,073		—		—
Diversified		594,336		594,336		—		—
Diversified Financial Services		393,259		393,259		—		—
Forest Products & Paper		47,719		47,719		—		—
Healthcare		551,675		551,675		—		—
Hotels & Resorts		787,961		787,961		—		—
Industrial		342,297		342,297		—		—
Internet		93,625		93,625		—		—
Mixed Industrial/Office		266,828		266,828		—		—
Office Property		635,489		635,489		—		—
Real Estate		67,452		67,452		—		—
Regional Malls		79,761		79,761		—		—
Storage & Warehousing		357,027		357,027		—		—
Strip Centers		588,106		588,106		—		—
U.S. TREASURY OBLIGATIONS		68,978		—		68,978		—
RIGHTS		6,211		—		6,211		—
SHORT-TERM INVESTMENTS		1,089,653		1,089,653		—		—
TOTAL INVESTMENTS	$	65,459,742	$	65,384,455	$	75,287	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

148

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — 97.8%
Australia — 6.7%
AGL Energy Ltd.		5,276	$	69,037
Alumina Ltd.		25,717		21,462
Amcor Ltd.		9,071		88,127
AMP Ltd.		24,438		102,969
APA Group		8,753		55,077
Aristocrat Leisure Ltd.		4,196		30,983
Asciano Ltd.		4,969		31,591
ASX Ltd.		1,401		43,102
Aurizon Holdings Ltd.		15,495		49,190
Ausnet Services		18,055		19,437
Australia & New Zealand Banking Group Ltd.		22,660		457,273
Bank of Queensland Ltd.		3,012		30,384
Bendigo & Adelaide Bank Ltd.		3,553		30,733
BHP Billiton Ltd.		24,967		321,314
Boral Ltd.		7,228		30,904
Brambles Ltd.		13,080		109,543
Caltex Australia Ltd.		2,100		57,401
Challenger Ltd/Australia		4,465		28,140
CIMIC Group Ltd.		829		14,542
Coca-Cola Amatil Ltd.		4,963		33,465
Cochlear Ltd.		371		25,674
Commonwealth Bank of Australia		13,456		831,908
Computershare Ltd.		3,381		28,450
Crown Resorts Ltd.		2,801		25,316
CSL Ltd.		3,643		277,741
Dexus Property Group		6,834		37,069
DUET Group		18,193		30,130
Flight Centre Travel Group Ltd.		439		12,661
Fortescue Metals Group Ltd.		13,816		18,593
Goodman Group		14,736		66,775
Harvey Norman Holdings Ltd.		3,235		9,779
Healthscope Ltd.		13,599		26,206
Iluka Resources Ltd.		2,885		12,762
Incitec Pivot Ltd.		13,612		38,895
Insurance Australia Group Ltd.		19,230		77,228
Lend Lease Group		4,333		44,706
Macquarie Group Ltd.		2,346		140,344
Medibank Pvt. Ltd.		21,209		33,071
Mirvac Group		26,971		38,610
National Australia Bank Ltd.		20,366		444,422
Newcrest Mining Ltd.*		6,279		59,413
Oil Search Ltd.		10,741		52,280
Orica Ltd.		2,861		32,054
Origin Energy Ltd.		14,077		47,619
Platinum Asset Management Ltd.		1,805		10,547
Qantas Airways Ltd.		6,222		18,442
QBE Insurance Group Ltd.		10,872		98,883
Ramsay Health Care Ltd.		980		48,189
REA Group Ltd.		400		15,915
Rio Tinto Ltd.		3,224		104,262
Santos Ltd.		12,712		33,858
Scentre Group		41,494		125,857
Seek Ltd.		2,700		30,051
Sonic Healthcare Ltd.		3,454		44,719
South32 Ltd.*		16,770		12,907

	Number of Shares		Value†
Australia — (continued)
South32 Ltd.*		24,967	$	19,180
Stockland		18,274		54,246
Suncorp Group Ltd.		9,636		84,604
Sydney Airport		9,491		43,681
Tabcorp Holdings Ltd.		7,043		23,980
Tatts Group Ltd.		13,129		41,683
Telstra Corp. Ltd.		33,844		137,531
The GPT Group		15,260		52,848
The GPT Group, In Specie~		16,419		0
TPG Telecom Ltd.		2,224		15,923
Transurban Group		15,315		116,087
Treasury Wine Estates Ltd.		5,948		35,713
Vicinity Centres		28,929		58,687
Wesfarmers Ltd.		8,949		269,795
Westfield Corp.		15,906		109,432
Westpac Banking Corp.		26,039		631,178
Woodside Petroleum Ltd.		5,940		123,753
Woolworths Ltd.		10,150		180,086
				6,578,417
Austria — 0.2%
Andritz AG		668		32,511
Erste Group Bank AG*		1,965		61,485
Immoeast AG~		2,678		0
OMV AG		1,135		32,217
Raiffeisen Bank International AG*		750		10,992
Voestalpine AG		1,009		30,864
				168,069
Belgium — 1.4%
Ageas		1,719		79,786
Anheuser-Busch InBev N.V.		6,302		784,271
Belgacom S.A.		1,133		36,869
Colruyt S.A.		647		33,284
Delhaize Group S.A.		768		74,747
Groupe Bruxelles Lambert S.A.		667		57,074
KBC Groep N.V.		2,043		127,741
Solvay S.A.		600		64,038
Telenet Group Holding N.V.		377		20,375
UCB S.A.		1,013		91,437
Umicore S.A.		738		30,949
				1,400,571
China — 0.1%
Sands China Ltd.		19,200		65,092
Yangzijiang Shipbuilding Holdings Ltd.		19,000		14,679
				79,771
Denmark — 1.9%
A.P. Moller - Maersk A/S, B Shares		55		71,737
A.P. Moller - Maersk A/S, A Shares		31		39,919
Carlsberg A/S, B Shares		840		74,417
Chr Hansen Holding AS		775		48,476
Coloplast A/S, B Shares		905		73,067
Danske Bank A/S		5,515		147,980
DSV A/S		1,517		59,715

149

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Denmark — (continued)
ISS A/S		1,307	$	47,113
Novo Nordisk A/S, B Shares		15,357		889,143
Novozymes A/S, B Shares		1,916		91,736
Pandora A/S		833		105,028
TDC A/S		6,200		30,870
Tryg A/S		965		19,176
Vestas Wind Systems A/S		1,794		125,291
William Demant Holding A/S		138		13,145
				1,836,813
Finland — 0.9%
Elisa OYJ		1,000		37,625
Fortum OYJ		3,489		52,567
Kone OYJ, B Shares		2,641		111,823
Metso OYJ		661		14,807
Neste OYJ		812		24,235
Nokia OYJ		28,055		198,477
Nokian Renkaat OYJ		765		27,312
Orion OYJ, B Shares		750		25,949
Sampo OYJ, A Shares		3,551		180,329
Stora Enso OYJ, R Shares		4,323		39,089
UPM-Kymmene OYJ		4,158		77,195
Wartsila OYJ Abp		1,184		54,059
				843,467
France — 9.2%
Accor S.A.		1,648		71,375
Aeroports de Paris		215		25,019
Air Liquide S.A.		2,701		303,234
Alcatel-Lucent		21,121		83,444
Alstom S.E.*		1,899		58,005
Arkema S.A.		594		41,579
AtoS S.A.		692		58,095
AXA S.A.		15,218		415,812
BNP Paribas S.A.		8,262		467,444
Bollore S.A.		31		143
Bollore S.A.		6,795		31,662
Bouygues S.A.		1,571		62,291
Bureau Veritas S.A.		1,772		35,319
Cap Gemini S.A.		1,210		112,271
Carrefour S.A.		4,319		124,645
Casino Guichard Perrachon S.A.		468		21,500
Christian Dior S.E.		408		69,304
CNP Assurances		1,617		21,812
Compagnie de Saint-Gobain		3,782		163,895
Compagnie Generale des Establissements Michelin, B Shares		1,486		141,442
Credit Agricole S.A.		8,537		100,602
Danone S.A.		4,621		312,259
Dassault Systemes S.A.		982		78,493
Edenred		1,708		32,287
Electricite de France S.A.		2,020		29,750
Essilor International S.A.		1,615		201,288
Eurazeo S.A.		343		23,657
Eutelsat Communications S.A.		1,342		40,180
Fonciere Des Regions		278		24,865

	Number of Shares		Value†
France — (continued)
GDF Suez		11,414	$	202,180
Gecina S.A.		313		38,052
Groupe Eurotunnel S.E.		3,742		46,555
Hermes International		218		73,690
ICADE		313		21,009
Iliad S.A.		205		48,868
Imerys S.A.		213		14,878
Ingenico Group S.A.		430		54,275
JCDecaux S.A.		742		28,445
Kering		625		106,860
Klepierre		1,527		67,875
L’Oreal S.A.		1,971		331,534
Lagardere S.C.A.		948		28,290
Legrand S.A.		2,075		117,374
LVMH Moet Hennessy Louis Vuitton S.A.		2,217		348,227
Natixis		7,282		41,195
Numericable-SFR		671		24,376
Orange S.A.		15,576		260,521
Pernod Ricard S.A.		1,689		192,622
Peugeot S.A.		3,574		62,649
Publicis Groupe S.A.		1,450		96,419
Remy Cointreau S.A.		152		10,887
Renault S.A.		1,493		149,443
Rexel S.A.		1,960		26,099
Safran S.A.		2,358		162,002
Sanofi S.A.		9,249		788,220
Schneider Electric S.E.		4,325		245,678
SCOR S.E.		1,378		51,562
Societe BIC S.A.		246		40,481
Societe Generale S.A.		5,784		266,541
Sodexo		765		74,739
Suez Environment Co.		2,507		46,889
Technip S.A.		869		43,216
Thales S.A.		773		57,859
TOTAL S.A.		17,292		775,239
Unibail-Rodamco S.E.		776		197,052
Valeo S.A.		662		102,064
Veolia Environment S.A.		3,504		83,136
Vinci S.A.		3,851		246,830
Vivendi S.A.		8,958		192,392
Wendel S.A.		253		30,088
Zodiac Aerospace		1,724		41,049
				8,989,032
Germany — 8.4%
Adidas AG		1,710		165,972
Allianz S.E.		3,570		629,316
Axel Springer S.E.		327		18,185
BASF S.E.		7,181		547,038
Bayer AG		6,542		817,037
Bayerische Motoren Werke AG		2,574		271,176
Beiersdorf AG		792		71,986
Brenntag AG		1,140		59,403
Commerzbank AG		8,718		89,958
Continental AG		878		212,398
Daimler AG		7,547		630,585

150

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Germany — (continued)
Deutsche Annington Immobilien S.E.		3,477	$	107,416
Deutsche Bank AG		10,968		266,356
Deutsche Boerse AG		1,516		133,259
Deutsche Lufthansa AG*		1,991		31,361
Deutsche Post AG		7,523		210,328
Deutsche Telekom AG		25,250		453,509
Deutsche Wohnen AG		2,580		71,342
E.ON S.E.		16,007		153,700
Evonik Industries AG		1,096		36,253
Fraport AG Frankfurt Airport Services Worldwide		272		17,346
Fresenius Medical Care AG & Co. KGaA		1,772		148,910
Fresenius S.E. & Co. KGaA		2,961		210,920
GEA Group AG		1,522		61,490
Hannover Rueck S.E.		474		54,126
HeidelbergCement AG		1,060		86,388
Henkel AG & Co. KGaA		823		78,723
Hugo Boss AG		567		46,783
Infineon Technologies AG		8,492		123,803
K+S AG		1,330		33,903
Kabel Deutschland Holding AG		172		21,253
LANXESS AG		691		31,798
Linde AG		1,444		208,599
MAN S.E.		297		29,846
Merck KGaA		1,016		98,370
Metro AG		1,566		49,889
Muenchener Ruckversicherungs AG		1,344		267,776
OSRAM Licht AG		667		27,867
ProSiebenSat.1 Media AG		1,773		89,451
RWE AG		3,801		47,921
SAP S.E.		7,703		611,261
Siemens AG		6,214		601,182
Symrise AG		897		59,380
Telefonica Deutschland Holding AG		4,698		24,781
ThyssenKrupp AG		2,865		56,794
TUI AG		4,191		74,831
United Internet AG		908		49,921
Volkswagen AG		247		37,956
Zalando SE		677		26,738
				8,254,584
Hong Kong — 3.0%
AIA Group Ltd.		94,200		562,853
ASM Pacific Technology Ltd.		1,700		13,273
Bank of East Asia Ltd.		7,861		29,160
BOC Hong Kong Holdings Ltd.		27,500		83,683
Cathay Pacific Airways Ltd.		10,000		17,207
Cheung Kong Infrastructure Holdings Ltd.		4,000		36,955
Cheung Kong Property Holdings Ltd.		21,170		136,948
CK Hutchison Holdings Ltd.		21,128		284,001
CLP Holdings Ltd.		15,500		131,378
First Pacific Co., Ltd.		15,750		10,433
Galaxy Entertainment Group Ltd.		18,000		56,400
Hang Lung Properties Ltd.		19,000		43,051
Hang Seng Bank Ltd.		6,300		119,406
Henderson Land Development Co., Ltd.		10,123		61,750

	Number of Shares		Value†
Hong Kong — (continued)
HK Electric Investments & HK Electric Investments Ltd.		20,777	$	17,409
HKT Trust & HKT Ltd.		21,240		27,132
Hong Kong & China Gas Co., Ltd.		54,059		105,796
Hong Kong Exchanges & Clearing Ltd.		8,891		226,496
Hysan Development Co., Ltd.		6,140		25,086
Kerry Properties Ltd.		3,509		9,549
Li & Fung Ltd.		50,000		33,814
Link REIT		18,176		108,363
Melco Crown Entertainment Ltd.		746		12,533
MGM China Holdings Ltd.		8,400		10,440
MTR Corp., Ltd.		11,345		56,020
New World Development Co., Ltd.		48,841		47,959
Noble Group Ltd.		38,270		10,697
NWS Holdings Ltd.		12,952		19,334
PCCW Ltd.		33,068		19,330
Power Assets Holdings Ltd.		11,500		105,427
Shangri-La Asia Ltd.		6,666		6,491
Sino Land Co., Ltd.		21,063		30,684
SJM Holdings Ltd.		17,000		12,047
Sun Hung Kai Properties Ltd.		13,161		158,190
Swire Pacific Ltd., A Shares		5,000		55,851
Swire Properties Ltd.		9,336		26,844
Techtronic Industries Co.		11,000		44,531
The Wharf Holdings Ltd.		11,000		60,648
WH Group Ltd.		45,343		25,237
Wheelock & Co., Ltd.		7,000		29,373
Yue Yuen Industrial Holdings Ltd.		7,000		23,713
				2,895,492
Ireland — 0.9%
Anglo Irish Bank Corp. PLC~		3,146		0
Bank of Ireland		220,348		80,682
CRH PLC		6,433		185,522
Experian PLC		7,434		131,392
James Hardie Industries PLC		3,154		39,765
Kerry Group PLC, A Shares		1,174		97,137
Ryanair Holdings PLC		257		22,220
Shire PLC		4,642		318,478
				875,196
Israel — 0.7%
Azrieli Group		283		10,543
Bank Hapoalim BM		8,292		42,803
Bank Leumi Le-Israel BM		11,337		39,309
Bezeq The Israeli Telecommunication Corp., Ltd.		15,011		33,045
Check Point Software Technologies Ltd.		532		43,294
Delek Group Ltd.		36		7,209
Israel Chemicals Ltd.		3,410		13,842
Mizrahi Tefahot Bank Ltd.		783		9,352
Mobileye NV		637		26,932
NICE Systems Ltd.		400		22,984
Teva Pharmaceutical Industries Ltd.		7,175		468,104
				717,417

151

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Italy — 2.1%
Assicurazioni Generali SpA		9,446	$	172,548
Atlantia SpA		3,091		81,783
Banca Monte Dei Paschi di Siena SPA		19,151		25,353
Banco Popolare SC*		3,001		41,355
Enel Green Power SpA		13,747		27,942
Enel SpA		54,931		230,344
Eni SpA		20,206		300,226
Exor SpA		848		38,488
Finmeccanica SpA		3,179		44,202
Intesa Sanpaolo SpA		98,312		326,496
Intesa Sanpaolo SpA, RSP		8,795		26,867
Luxottica Group SpA		1,314		85,627
Mediobanca SpA		4,539		43,511
Prysmian SpA		1,833		40,050
Saipem SpA*		2,015		16,287
Snam SpA		17,071		89,093
Telecom Italia SpA*		94,812		120,157
Telecom Italia SpA, RSP		52,300		53,677
Terna Rete Elettrica Nasionale SpA		11,628		59,802
UniCredit SpA		37,928		209,693
Unione Di Banche Italiane Rights~		7,359		0
Unione di Banche Italiane SCpA		7,359		49,169
Unipolsai SPA		8,602		21,885
				2,104,555
Japan — 22.8%
ABC-Mart, Inc.		200		10,948
Acom Co., Ltd.		3,200		15,069
Aeon Co., Ltd.		4,900		75,497
AEON Financial Service Co., Ltd.		700		15,637
Aeon Mall Co., Ltd.		710		12,178
Air Water, Inc.		1,000		16,083
Aisin Seiki Co., Ltd.		1,400		60,254
Ajinomoto Co., Inc.		4,000		94,703
Alfresa Holdings Corp.		1,600		31,600
Alps Electric Co., Ltd.		1,400		37,965
Amada Holdings Co., Ltd.		3,000		28,628
ANA Holdings, Ltd.		11,000		31,736
Aozora Bank Ltd.		10,000		34,898
Asahi Glass Co., Ltd.		7,000		40,102
Asahi Group Holdings Ltd.		3,200		100,174
Asahi Kasei Corp.		9,000		60,859
Asics Corp.		1,000		20,747
Astellas Pharma, Inc.		17,000		242,008
Bandai Namco Holdings, Inc.		1,100		23,240
Benesse Holdings, Inc.		700		20,159
Bridgestone Corp.		5,200		178,367
Brother Industries Ltd.		1,500		17,232
Calbee, Inc.		400		16,892
Canon, Inc.		8,300		251,075
Casio Computer Co., Ltd.		1,500		35,065
Central Japan Railway Co.		1,100		195,287
Chubu Electric Power Co., Inc.		5,100		69,838
Chugai Pharmaceutical Co., Ltd.		1,800		62,742
Citizen Holdings Co., Ltd.		1,400		10,062
Credit Saison Co., Ltd.		1,500		29,553

	Number of Shares		Value†
Japan — (continued)
Dai Nippon Printing Co., Ltd.		4,000	$	39,555
Daicel Corp.		2,000		29,764
Daihatsu Motor Co., Ltd.		1,800		24,282
Daiichi Sankyo Co., Ltd.		5,300		109,390
Daikin Industries Ltd.		1,800		131,079
Daito Trust Construction Co., Ltd.		600		69,306
Daiwa House Industry Co., Ltd.		4,900		140,857
Daiwa Securities Group, Inc.		13,000		79,478
Denso Corp.		3,900		186,363
Dentsu, Inc.		1,800		98,482
Don Quijote Holdings Co., Ltd.		800		28,095
East Japan Railway Co.		2,600		244,831
Eisai Co., Ltd.		2,000		132,302
Electric Power Development Co., Ltd.		1,000		35,617
FamilyMart Co., Ltd.		500		23,267
FANUC Corp.		1,500		258,435
Fast Retailing Co., Ltd.		400		139,925
Fuji Electric Co., Ltd.		4,000		16,775
Fuji Heavy Industries Ltd.		4,500		185,383
FUJIFILM Holdings Corp.		3,700		154,410
Fujitsu Ltd.		15,000		74,867
Fukuoka Financial Group, Inc.		6,000		29,752
GungHo Online Entertainment, Inc.		3,000		8,150
Hakuhodo DY Holdings, Inc.		1,500		16,229
Hamamatsu Photonics K.K.		1,000		27,415
Hankyu Hanshin Holdings, Inc.		10,000		64,999
Hikari Tsushin, Inc.		200		13,620
Hino Motors Ltd.		2,000		23,115
Hirose Electric Co., Ltd.		210		25,425
Hisamitsu Pharmaceutical Co., Inc.		400		16,793
Hitachi Chemical Co., Ltd.		1,000		15,865
Hitachi Construction Machinery Co., Ltd.		1,000		15,552
Hitachi High-Technologies Corp.		500		13,522
Hitachi Ltd.		38,000		215,322
Hitachi Metals Ltd.		2,000		24,676
Hokuhoku Financial Group, Inc.		10,000		20,385
Hokuriku Electric Power Co.		1,200		17,734
Honda Motor Co., Ltd.		12,800		409,108
Hongkong Land Holdings Ltd.		5,000		34,914
Hoshizaki Electric Co. Ltd.		300		18,650
Hoya Corp.		3,300		134,946
Hulic Co., Ltd.		2,500		21,951
Idemitsu Kosan Co., Ltd.		400		6,387
IHI Corp.		12,000		33,126
Iida Group Holdings Co., Ltd.		1,000		18,534
Inpex Corp.		7,200		70,192
Isetan Mitsukoshi Holdings Ltd.		2,500		32,603
Isuzu Motors Ltd.		4,500		48,477
ITOCHU Corp.		12,900		152,587
Itochu Technology Solutions Corp.		600		11,955
J. Front Retailing Co., Ltd.		2,000		29,075
Japan Airlines Co., Ltd.		1,000		35,793
Japan Airport Terminal Co., Ltd.		300		13,281
Japan Exchange Group, Inc.		4,000		62,527
Japan Post Bank Co. Ltd.		3,000		43,679

152

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Japan Post Holdings Co. Ltd.		3,000	$	46,549
Japan Prime Realty Investment Corp.		5		17,075
Japan Real Estate Investment Corp.		10		48,527
Japan Retail Fund Investment Corp.		20		38,478
Japan Tobacco, Inc.		8,700		319,410
JFE Holdings, Inc.		3,700		58,099
JGC Corp.		2,000		30,612
JSR Corp.		1,100		17,143
JTEKT Corp.		1,500		24,552
JX Holdings, Inc.		17,690		74,246
Kajima Corp.		7,000		41,660
Kakaku.Com, Inc.		1,100		21,637
Kamigumi Co., Ltd.		2,000		17,220
Kaneka Corp.		2,000		20,789
Kansai Paint Co., Ltd.		2,000		30,316
Kao Corp.		3,900		200,416
Kawasaki Heavy Industries Ltd.		10,000		36,999
KDDI Corp.		13,800		358,389
Keihan Electric Railway Co., Ltd.		3,000		20,092
Keikyu Corp.		4,000		33,053
Keio Corp.		5,000		43,179
Keisei Electric Railway Co., Ltd.		2,000		25,517
Keyence Corp.		341		187,415
Kikkoman Corp.		1,000		34,647
Kintetsu Group Holdings Co., Ltd.		13,000		52,855
Kirin Holdings Co., Ltd.		6,800		92,325
Kobe Steel Ltd.		26,000		28,249
Koito Manufacturing Co., Ltd.		700		28,705
Komatsu Ltd.		7,300		119,446
Konami Corp.		600		14,283
Konica Minolta, Inc.		4,000		40,061
Kose Corp.		200		18,492
Kubota Corp.		9,000		139,038
Kuraray Co., Ltd.		2,400		29,071
Kurita Water Industries Ltd.		800		16,753
Kyocera Corp.		2,600		120,745
Kyowa Hakko Kirin Co., Ltd.		2,000		31,469
Kyushu Electric Power Co., Inc.		2,900		31,607
Kyushu Financial Group Inc.		3,000		21,141
Lawson, Inc.		500		40,585
LIXIL Group Corp.		2,300		51,082
M3, Inc.		1,800		37,322
Mabuchi Motor Co., Ltd.		400		21,678
Makita Corp.		1,000		57,627
Marubeni Corp.		13,000		66,834
Marui Group Co., Ltd.		1,500		24,409
Maruichi Steel Tube Ltd.		300		8,856
Mazda Motor Corp.		3,900		80,476
McDonald’s Holdings Co., Japan Ltd.		700		15,223
Medipal Holdings Corp.		800		13,635
MEIJI Holdings Co., Ltd.		1,000		82,600
Minebea Co., Ltd.		3,000		25,686
Miraca Holdings, Inc.		400		17,601
Mitsubishi Chemical Holdings Corp.		9,500		60,275
Mitsubishi Corp.		10,500		174,648

	Number of Shares		Value†
Japan — (continued)
Mitsubishi Electric Corp.		15,000	$	157,453
Mitsubishi Estate Co., Ltd.		10,000		207,933
Mitsubishi Gas Chemical Co., Inc.		3,000		15,341
Mitsubishi Heavy Industries Ltd.		24,000		104,940
Mitsubishi Logistics Corp.		1,000		13,176
Mitsubishi Materials Corp.		7,000		22,048
Mitsubishi Motors Corp.		5,200		43,995
Mitsubishi Tanabe Pharma Corp.		1,900		32,734
Mitsubishi UFJ Financial Group, Inc.		99,900		618,805
Mitsubishi UFJ Lease & Finance Co., Ltd.		4,600		23,673
Mitsui & Co., Ltd.		13,800		163,972
Mitsui Chemicals, Inc.		5,000		22,175
Mitsui Fudosan Co., Ltd.		7,000		175,685
Mitsui OSK Lines Ltd.		10,000		25,223
Mixi, Inc.		200		7,481
Mizuho Financial Group, Inc.		186,580		373,160
MS&AD Insurance Group Holdings, Inc.		4,090		119,938
Murata Manufacturing Co., Ltd.		1,600		230,210
Nabtesco Corp.		700		14,221
Nagoya Railroad Co., Ltd.		7,000		29,135
NEC Corp.		21,000		66,539
Nexon Co. Ltd.		1,100		17,895
NGK Insulators Ltd.		2,000		45,080
NGK Spark Plug Co., Ltd.		1,400		36,860
NH Foods Ltd.		1,000		19,600
NHK Spring Co., Ltd.		1,200		12,032
Nidec Corp.		1,700		123,277
Nikon Corp.		2,900		38,841
Nintendo Co., Ltd.		800		110,008
Nippon Building Fund, Inc.		10		47,785
Nippon Electric Glass Co., Ltd.		2,000		10,080
Nippon Express Co., Ltd.		6,000		28,195
Nippon Paint Holdings Co., Ltd.		1,000		24,202
Nippon Prologis REIT, Inc.		10		18,089
Nippon Steel & Sumitomo Metal Corp.		5,917		117,052
Nippon Telegraph & Telephone Corp.		6,000		238,789
Nippon Yusen K.K.		13,000		31,508
Nissan Motor Co., Ltd.		19,400		203,132
Nisshin Seifun Group, Inc.		1,815		29,647
Nissin Foods Holdings Co., Ltd.		500		26,532
Nitori Holdings Co., Ltd.		600		50,389
Nitto Denko Corp.		1,200		87,607
NOK Corp.		1,000		23,361
Nomura Holdings, Inc.		28,500		158,747
Nomura Real Estate Holdings, Inc.		1,000		18,552
Nomura Real Estate Master Fund Inc.		28		34,803
Nomura Research Institute Ltd.		1,100		42,244
NSK Ltd.		4,000		43,464
NTT Data Corp.		1,000		48,346
NTT DOCOMO, Inc.		11,200		229,730
NTT Urban Development Corp.		1,000		9,608
Obayashi Corp.		5,000		46,136
Obic Co. Ltd.		500		26,467
Odakyu Electric Railway Co., Ltd.		5,000		53,834
Oji Holdings Corp.		6,000		24,114

153

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Olympus Corp.		2,000	$	78,737
Omron Corp.		1,600		53,355
Ono Pharmaceutical Co., Ltd.		600		106,987
Oracle Corp. Japan		200		9,312
Oriental Land Co., Ltd.		1,600		96,794
ORIX Corp.		10,600		148,702
Osaka Gas Co., Ltd.		16,000		57,791
Otsuka Corp.		300		14,737
Otsuka Holdings Co., Ltd.		3,000		106,587
Panasonic Corp.		17,500		177,406
Park24 Co., Ltd.		800		19,382
Rakuten, Inc.		7,300		84,080
Recruit Holdings Co., Ltd.		1,000		29,394
Resona Holdings, Inc.		17,800		86,441
Ricoh Co., Ltd.		5,000		51,484
Rinnai Corp.		300		26,581
Rohm Co., Ltd.		800		40,521
Ryohin Keikaku Co. Ltd.		200		40,502
Sankyo Co., Ltd.		400		14,931
Sanrio Co., Ltd.		300		7,048
Santen Pharmaceutical Co., Ltd.		3,000		49,390
SBI Holdings, Inc.		1,710		18,452
Secom Co., Ltd.		1,700		115,209
Sega Sammy Holdings, Inc.		1,200		11,224
Seibu Holdings, Inc.		1,000		20,422
Seiko Epson Corp.		2,200		33,878
Sekisui Chemical Co., Ltd.		3,000		39,169
Sekisui House Ltd.		4,600		77,343
Seven & I Holdings Co., Ltd.		6,000		274,707
Seven Bank Ltd.		5,300		23,243
Shikoku Electric Power Co., Inc.		1,300		20,308
Shimadzu Corp.		2,000		33,480
Shimamura Co., Ltd.		200		23,422
Shimano, Inc.		600		92,135
Shimizu Corp.		5,000		40,771
Shin-Etsu Chemical Co., Ltd.		3,200		173,971
Shinsei Bank Ltd.		14,000		25,764
Shionogi & Co., Ltd.		2,500		113,076
Shiseido Co., Ltd.		2,600		53,946
Showa Shell Sekiyu K.K.		1,000		8,160
SMC Corp.		400		103,894
SoftBank Corp.		7,500		378,528
Sohgo Security Services Co. Ltd.		500		23,449
Sompo Japan Nipponkoa Holdings, Inc.		2,825		92,758
Sony Corp.		9,900		243,310
Sony Financial Holdings, Inc.		1,200		21,465
Stanley Electric Co., Ltd.		1,300		28,519
Sumitomo Chemical Co., Ltd.		12,000		68,917
Sumitomo Corp.		9,400		95,836
Sumitomo Dainippon Pharma Co., Ltd.		1,400		16,494
Sumitomo Electric Industries Ltd.		5,900		83,313
Sumitomo Heavy Industries Ltd.		5,000		22,414
Sumitomo Metal Mining Co., Ltd.		4,000		48,556
Sumitomo Mitsui Financial Group, Inc.		10,000		377,410
Sumitomo Mitsui Trust Holdings, Inc.		25,430		96,312

	Number of Shares		Value†
Japan — (continued)
Sumitomo Realty & Development Co., Ltd.		3,000	$	85,628
Sumitomo Rubber Industries Ltd.		1,200		15,604
Suntory Beverage & Food Ltd.		1,000		43,776
Suruga Bank Ltd.		1,600		32,974
Suzuken Co., Ltd.		440		16,721
Suzuki Motor Corp.		2,800		85,075
Sysmex Corp.		1,200		76,974
T&D Holdings, Inc.		4,300		56,732
Taiheiyo Cement Corp.		8,000		23,362
Taisei Corp.		8,000		52,696
Taisho Pharmaceutical Holdings Co., Ltd.		300		21,188
Taiyo Nippon Sanso Corp.		1,000		9,044
Takashimaya Co., Ltd.		2,000		18,011
Takeda Pharmaceutical Co., Ltd.		6,200		309,129
TDK Corp.		900		57,640
Teijin Ltd.		6,000		20,447
Terumo Corp.		2,200		68,186
The Bank of Kyoto Ltd.		3,000		27,821
The Bank of Yokohama Ltd.		10,000		61,296
The Chiba Bank Ltd.		5,000		35,481
The Chugoku Bank Ltd.		1,000		13,344
The Chugoku Electric Power Co., Inc.		2,100		27,727
The Dai-ichi Life Insurance Co., Ltd.		8,500		141,420
The Gunma Bank Ltd.		3,000		17,443
The Hachijuni Bank Ltd.		4,000		24,480
The Hiroshima Bank Ltd.		4,000		22,735
The Iyo Bank Ltd.		2,000		19,431
The Joyo Bank Ltd.		6,000		28,373
The Kansai Electric Power Co., Inc.		5,900		70,740
The Shizuoka Bank Ltd.		4,000		38,792
The Yokohama Rubber Co., Ltd.		1,000		15,358
THK Co., Ltd.		1,000		18,534
Tobu Railway Co., Ltd.		9,000		44,392
Toho Co., Ltd.		900		24,905
Toho Gas Co., Ltd.		3,000		19,375
Tohoku Electric Power Co., Inc.		3,100		38,754
Tokio Marine Holdings, Inc.		5,400		208,573
Tokyo Electric Power Co., Inc.		12,200		70,251
Tokyo Electron Ltd.		1,400		84,819
Tokyo Gas Co., Ltd.		17,000		79,879
Tokyo Tatemono Co., Ltd.		1,500		16,326
Tokyu Corp.		8,000		63,219
Tokyu Fudosan Holdings Corp.		4,000		25,071
TonenGeneral Sekiyu K.K.		2,000		16,884
Toppan Printing Co., Ltd.		4,000		36,853
Toray Industries, Inc.		11,000		102,218
Toshiba Corp.*		32,000		65,767
TOTO Ltd.		1,000		35,132
Toyo Seikan Group Holdings Ltd.		1,000		18,549
Toyo Suisan Kaisha Ltd.		600		20,912
Toyoda Gosei Co., Ltd.		400		9,087
Toyota Industries Corp.		1,200		64,168
Toyota Motor Corp.		21,400		1,317,791
Toyota Tsusho Corp.		1,800		42,107
Trend Micro, Inc.		800		32,462

154

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Japan — (continued)
Unicharm Corp.		3,000	$	61,265
United Urban Investment Corp.		19		25,794
USS Co., Ltd.		1,500		22,539
West Japan Railway Co.		1,300		89,860
Yahoo Japan Corp.		10,400		42,275
Yakult Honsha Co., Ltd.		700		34,261
Yamada Denki Co., Ltd.		5,300		22,893
Yamaguchi Financial Group, Inc.		2,000		23,694
Yamaha Corp.		1,200		28,985
Yamaha Motor Co., Ltd.		1,900		42,589
Yamato Holdings Co., Ltd.		2,800		59,327
Yamazaki Baking Co., Ltd.		1,000		22,486
Yaskawa Electric Corp.		2,000		27,213
Yokogawa Electric Corp.		2,000		24,052
				22,340,946
Jersey — 0.0%
Randgold Resources Ltd.		741		45,651
Luxembourg — 0.2%
ArcelorMittal		8,260		34,851
Millicom International Cellular S.A.		489		28,059
RTL Group S.A.		294		24,483
SES S.A.		2,387		66,143
Tenaris S.A.		3,987		47,212
				200,748
Macau — 0.0%
Wynn Macau Ltd.		12,400		14,406
Netherlands — 4.4%
Aegon N.V.		13,628		77,073
AerCap Holdings N.V.		696		30,039
Airbus Group N.V.		4,687		315,846
Akzo Nobel N.V.		1,986		132,703
Altice N.V.*		694		10,115
Altice N.V.*		2,890		41,522
ASML Holding N.V.		2,705		240,345
CNH Industrial N.V.		7,320		50,134
Gemalto N.V.		668		40,082
Heineken Holdings N.V.		733		56,431
Heineken N.V.		1,880		160,209
ING Groep N.V.		30,914		418,270
Koninklijke Ahold N.V.		6,540		137,952
Koninklijke Boskalis Westminster N.V.		654		26,678
Koninklijke DSM N.V.		1,465		73,463
Koninklijke KPN N.V.		25,159		95,161
Koninklijke Philips N.V.		7,261		185,333
Koninklijke Vopak N.V.		584		25,150
NN Group N.V.		2,049		72,295
NXP Semiconductors N.V.		1,064		89,642
OCI N.V.		783		19,334
QIAGEN N.V.		1,994		54,046
Randstad Holding N.V.		923		57,477
Reed Elsevier N.V.		7,963		134,116
Royal Dutch Shell PLC, A Shares		30,659		694,405
Royal Dutch Shell PLC, B Shares		19,491		444,221

	Number of Shares		Value†
Netherlands — (continued)
TNT Express N.V.		3,470	$	29,352
Unilever N.V.		12,913		562,804
Wolters Kluwer N.V.		2,160		72,541
				4,346,739
New Zealand — 0.2%
Auckland International Airport Ltd.		7,482		29,353
Contact Energy Ltd.		7,262		23,504
Fletcher Building Ltd.		4,795		24,030
Meridian Energy Ltd.		7,526		12,273
Mighty River Power Ltd.		4,163		7,899
Ryman Healthcare Ltd.		2,831		16,430
Spark New Zealand Ltd.		16,634		37,454
				150,943
Norway — 0.5%
DNB ASA		7,620		93,888
Gjensidige Forsikring ASA		1,418		22,695
Norsk Hydro ASA		10,203		37,926
Orkla ASA		6,430		50,726
Schibsted ASA		698		22,245
Schibsted ASA		593		19,496
Statoil ASA		8,879		123,833
Telenor ASA		6,070		101,178
Yara International ASA		1,246		53,588
				525,575
Portugal — 0.1%
Banco Comercial Portugues S.A.		240,809		12,762
Banco Espirito Santo S.A.~		27,017		0
EDP - Energias de Portugal S.A.		16,826		60,630
Galp Energia SGPS, S.A.		2,726		31,809
Jeronimo Martins SGPS, S.A.		2,107		27,417
				132,618
Singapore — 1.2%
Ascendas Real Estate Investment Trust Rights~		563		25
Ascendas Real Estate Investment Trust		15,000		24,040
CapitaLand Commercial Trust Ltd.		16,000		15,180
CapitaLand Ltd.		18,000		42,309
CapitaLand Mall Trust		21,700		29,444
City Developments Ltd.		3,000		16,139
ComfortDelGro Corp. Ltd.		14,000		29,978
DBS Group Holdings Ltd.		13,707		160,639
Genting Singapore PLC		54,000		29,137
Global Logistic Properties Ltd.		26,000		39,264
Golden Agri-Resources Ltd.		65,000		15,526
Hutchison Port Holdings Trust		35,100		18,548
Jardine Cycle & Carriage Ltd.		1,111		27,161
Keppel Corp. Ltd.		11,600		52,991
Oversea-Chinese Banking Corp. Ltd.		24,017		148,483
Sembcorp Industries Ltd.		9,000		19,291
SembCorp Marine Ltd.		7,000		8,613
Singapore Airlines Ltd.		4,000		31,518
Singapore Exchange Ltd.		6,000		32,450
Singapore Press Holdings Ltd.		10,000		27,718

155

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Singapore — (continued)
Singapore Technologies Engineering Ltd.		12,000	$	25,367
Singapore Telecommunications Ltd.		63,000		162,431
StarHub Ltd.		5,000		13,012
Suntec Real Estate Investment Trust		16,000		17,425
United Overseas Bank Ltd.		10,609		146,264
UOL Group Ltd.		4,210		18,451
Wilmar International Ltd.		17,000		35,077
				1,186,481
South Africa — 0.1%
Mondi PLC		2,860		56,058
Spain — 3.1%
Abertis Infraestructuras S.A.		3,580		55,989
ACS Actividades de Construccion y Servicios S.A.		1,422		41,604
Aena S.A. ADR		575		65,843
Amadeus IT Holding S.A.		3,406		150,119
Banco Bilbao Vizcaya Argentaria S.A.		49,956		365,020
Banco de Sabadell S.A.		38,708		68,602
Banco Popular Espanol S.A.		13,620		44,877
Banco Santander S.A.		113,375		557,737
Bankia S.A.		36,141		42,058
Bankinter S.A.		4,820		34,180
CaixaBank		20,565		71,579
Distribuidora Internacional de Alimentacion S.A.		4,084		24,088
Enagas S.A.		1,740		49,082
Endesa S.A.		2,463		49,481
Ferrovial S.A.		3,554		80,368
Gas Natural SDG S.A.		2,914		59,423
Grifols S.A.		1,252		57,870
Iberdrola S.A.		43,078		305,380
Inditex S.A.		8,480		291,325
Mapfre S.A.		8,177		20,469
Red Electrica Corp. S.A.		908		75,845
Repsol S.A.		8,646		4,313
Repsol S.A.		8,648		95,209
Telefonica S.A.		35,820		397,387
Zardoya Otis S.A.		1,605		18,771
				3,026,619
Sweden — 2.8%
Alfa Laval AB		2,688		49,072
Assa Abloy AB		8,124		170,057
Atlas Copco AB, A Shares		3,255		74,834
Atlas Copco AB, B Shares		5,275		129,368
Boliden AB		1,883		31,548
Electrolux AB, B Shares		1,720		41,499
Getinge AB, B Shares		1,448		37,931
Hennes & Mauritz AB, B Shares		7,381		262,544
Hexagon AB, B Shares		2,081		76,982
Husqvarna AB, B Shares		2,834		18,703
ICA Gruppen AB		521		18,921
Industrivarden AB, C Shares		1,227		20,992
Investment AB Kinnevik, B Shares		1,832		56,428

	Number of Shares		Value†
Sweden — (continued)
Investor AB, B Shares		3,414	$	125,465
Lundin Petroleum AB		1,488		21,471
Nordea Bank AB		24,214		265,670
Sandvik AB		8,213		71,593
Securitas AB, B Shares		1,984		30,337
Skandinaviska Enskilda Banken AB, A Shares		12,133		127,597
Skanska AB, B Shares		2,985		57,890
SKF AB, B Shares		3,338		53,913
Svenska Cellulosa AB SCA, B Shares		4,703		136,294
Svenska Handelsbanken AB		12,169		161,622
Swedbank AB, A Shares		7,333		161,499
Swedish Match AB		1,496		52,865
Tele2 AB, B Shares		2,927		29,189
Telefonaktiebolaget LM Ericsson, B Shares		23,658		228,094
TeliaSonera AB		21,208		105,317
Volvo AB, B Shares		11,928		110,603
				2,728,298
Switzerland — 9.6%
ABB Ltd.		17,471		311,816
Actelion Ltd.		835		116,018
Adecco S.A.		1,364		93,356
Aryzta AG		739		37,385
Baloise Holding AG		408		51,709
Barry Callebaut AG		17		18,466
Chocoladefabriken Lindt & Spruengli AG		1		74,501
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates		7		43,713
Cie Financiere Richemont S.A.		4,087		292,519
Coca-Cola HBC AG		1,371		29,196
Credit Suisse Group AG		14,424		310,721
Dufry AG		317		37,717
EMS-Chemie Holding AG		65		28,606
Galenica AG		31		48,501
Geberit AG		311		105,337
Givaudan S.A.		74		134,307
Glencore PLC		100,019		132,539
Holcim Ltd.		3,404		170,455
Julius Baer Group Ltd.		1,895		91,675
Kuehne + Nagel International AG		444		60,828
Lonza Group AG		459		74,649
Nestle S.A.		25,126		1,865,235
Novartis AG		17,834		1,534,068
Pargesa Holding S.A.		272		17,184
Partners Group Holding AG		138		49,629
Roche Holding AG		5,506		1,525,759
Schindler Holding AG		145		24,453
Schindler Holding AG, Participation Certificates		349		58,387
SGS S.A.		43		81,721
Sika AG		18		65,048
Sonova Holding AG		427		54,252
STMicroelectronics N.V.		4,919		32,932
Sulzer AG		62		5,828
Swiss Life Holding AG		272		73,263

156

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Switzerland — (continued)
Swiss Prime Site AG		430	$	33,582
Swiss Re AG		2,781		271,610
Swisscom AG		202		101,082
Syngenta AG		723		282,984
The Swatch Group AG		253		87,858
The Swatch Group AG, Registered Shares		366		24,716
Transocean Ltd.		3,010		37,626
UBS Group AG		28,612		555,058
Wolseley PLC		2,086		113,297
Zurich Insurance Group AG		1,170		300,573
				9,460,159
United Kingdom — 17.3%
3i Group PLC		8,442		59,802
Aberdeen Asset Management PLC		7,687		32,756
Admiral Group PLC		1,518		37,093
Aggreko PLC		2,157		29,037
Amec Foster Wheeler PLC		2,494		15,744
Anglo American PLC		10,459		45,886
Antofagasta PLC		3,403		23,409
ARM Holdings PLC		11,309		172,373
Ashtead Group PLC		3,679		60,549
Associated British Foods PLC		2,872		141,324
AstraZeneca PLC		9,905		669,061
Auto Trader Group PLC		5,884		38,363
Aviva PLC		32,002		242,912
Babcock International Group PLC		1,759		26,324
BAE Systems PLC		25,041		184,366
Barclays PLC		131,262		422,505
Barratt Developments PLC		7,726		71,193
BG Group PLC		27,035		391,897
BHP Billiton PLC		16,770		187,017
BP PLC		144,592		751,403
British American Tobacco PLC		14,699		816,300
BT Group PLC		66,556		462,139
Bunzl PLC		2,435		67,558
Burberry Group PLC		3,582		63,022
Capita PLC		5,526		98,322
Carnival PLC		1,577		89,836
Centrica PLC		39,110		125,582
Cobham PLC		8,466		35,353
Compass Group PLC		13,243		229,479
Croda International PLC		1,214		54,394
Diageo PLC		19,654		536,710
Direct Line Insurance Group PLC		11,695		70,102
Dixons Carphone PLC		7,844		57,725
easyJet PLC		1,334		34,213
Fiat Chrysler Automobiles N.V.		7,378		102,465
Fresnillo PLC		1,200		12,477
G4S PLC		12,521		41,592
GKN PLC		13,828		62,750
GlaxoSmithKline PLC		38,526		778,070
Hammerson PLC		6,570		58,082
Hargreaves Lansdown PLC		1,892		42,004
HSBC Holdings PLC		153,319		1,210,340
ICAP PLC		4,325		32,464

	Number of Shares		Value†
United Kingdom — (continued)
IMI PLC		1,958	$	24,846
Imperial Tobacco Group PLC		7,532		397,825
Inmarsat PLC		3,494		58,575
Intercontinental Hotels Group PLC		1,943		75,736
International Consolidated Airlines Group S.A. (London Main Market Exchange)		2,764		24,851
International Consolidated Airlines Group S.A. (Spanish Stock Exchange)		3,606		32,321
Intertek Group PLC		1,257		51,420
Intu Properties PLC		8,310		38,824
Investec PLC		4,543		32,033
ITV PLC		30,751		125,199
J. Sainsbury PLC		9,762		37,176
Johnson Matthey PLC		1,610		62,980
Kingfisher PLC		18,641		90,288
Land Securities Group PLC		6,374		110,494
Legal & General Group PLC		47,123		185,944
Lloyds Banking Group PLC		447,156		481,140
London Stock Exchange Group PLC		2,429		98,273
Marks & Spencer Group PLC		12,979		86,417
Meggitt PLC		5,739		31,687
Melrose Industries PLC		7,834		33,557
Merlin Entertainments PLC		5,527		37,059
National Grid PLC		29,921		412,661
Next PLC		1,131		121,437
Old Mutual PLC		38,468		101,197
Pearson PLC		6,696		72,387
Persimmon PLC		2,549		76,046
Petrofac Ltd.		1,906		22,357
Provident Financial PLC		1,152		57,120
Prudential PLC		20,038		451,449
Reckitt Benckiser Group PLC		5,052		467,446
Reed Elsevier PLC		9,156		161,475
Rexam PLC		5,992		53,446
Rio Tinto PLC		9,892		288,010
Rolls-Royce Holdings PLC~		1,401,345		2,066
Rolls-Royce Holdings PLC		15,117		128,048
Royal Bank of Scotland Group PLC		25,364		112,745
Royal Mail PLC		7,054		46,203
RSA Insurance Group PLC		7,501		47,079
SABMiller PLC		7,565		452,571
Schroders PLC		1,078		47,216
Segro PLC		6,438		40,743
Severn Trent PLC		1,743		55,718
Sky PLC		7,899		129,487
Smith & Nephew PLC		7,021		125,130
Smiths Group PLC		3,378		46,714
Sports Direct International PLC		2,156		18,322
SSE PLC		7,972		179,002
St James’s Place PLC		4,100		60,769
Standard Chartered PLC		24,957		207,073
Standard Life PLC		16,040		91,854
Tate & Lyle PLC		3,269		28,795
Taylor Wimpey PLC		25,341		75,754
Tesco PLC*		64,072		140,785

157

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
United Kingdom — (continued)
The British Land Co. PLC		7,994	$	92,498
The Sage Group PLC		8,870		78,811
The Weir Group PLC		1,674		24,589
Travis Perkins PLC		2,061		59,791
Unilever PLC		10,072		432,012
United Utilities Group PLC		5,606		77,191
Vodafone Group PLC		210,003		680,995
W.M. Morrison Supermarkets PLC		17,966		39,146
Whitbread PLC		1,474		95,540
William Hill PLC		7,259		42,364
WPP PLC		10,017		230,410
				16,975,090
TOTAL COMMON STOCKS (Cost $81,643,894)				95,933,715
PREFERRED STOCKS — 0.5%
Germany — 0.5%
Bayerische Motoren Werke AG		477		39,908
Fuchs Petrolub S.E.		598		28,158
Henkel AG & Co. KGaA		1,395		155,686
Porsche Automobil Holding S.E.		1,203		64,743
Volkswagen AG		1,455		210,073
TOTAL PREFERRED STOCKS (Cost $395,757)				498,568
WARRANTS — 0.0%
Belgium — 0.0%
Anheuser-Busch InBev N.V. 02/27/13 0.000%, 12/31/49~ (Cost $0)		0		0
SHORT-TERM INVESTMENTS — 0.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $481,691)		481,691		481,691
TOTAL INVESTMENTS — 98.8% (Cost $82,521,342)			$	96,913,974
Other Assets & Liabilities — 1.2%				1,195,229
TOTAL NET ASSETS — 100.0%			$	98,109,203

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at December 31, 2015 is $2,901.

ADR — American Depository Receipt.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Advertising		0.5%		$	469,985
Aerospace & Defense		0.9%			902,403
Agriculture		1.7%			1,637,003
Airlines		0.3%			257,442
Apparel		0.8%			811,458
Auto Manufacturers		3.9%			3,785,711
Auto Parts & Equipment		1.4%			1,312,509
Banks		13.6%			13,031,824
Beverages		2.7%			2,602,767
Biotechnology		0.4%			369,477
Building & Real Estate		0.2%			222,993
Building Materials		1.2%			1,193,560
Building-Maintenance Service		0.1%			47,113
Chemicals		3.7%			3,521,124
Commercial Services		1.6%			1,579,536
Computers		0.5%			446,443
Cosmetics & Personal Care		0.8%			719,147
Distribution & Wholesale		0.9%			870,256
Diversified		—%	+		24,040
Diversified Financial Services		2.0%			1,910,736
Diversified Operations		0.1%			136,426
Electric		2.7%			2,541,757
Electrical Components & Equipment		1.0%			1,000,996
Electronics		1.3%			1,268,980
Energy-Alternate Sources		0.2%			222,270
Engineering & Construction		1.2%			1,183,551
Entertainment		0.2%			233,276
Environmental Control		—%	+		16,753
Food		5.4%			5,186,901
Forest Products & Paper		0.4%			332,750
Gas		0.9%			889,255
Hand & Machine Tools		0.4%			395,794
Healthcare Products		1.1%			1,059,720
Healthcare Services		0.3%			284,454
Holding Companies		0.3%			326,844
Home Builders		0.3%			275,903
Home Furnishings		0.5%			462,215
Hotels & Resorts		0.2%			223,606
Household Products & Wares		0.6%			605,353
Industrial		0.1%			128,048
Insurance		6.1%			5,864,408
Internet		0.4%			372,549
Investment Companies		0.3%			285,446
Iron & Steel		0.4%			369,178
Leisure Time		0.4%			352,261
Lodging		0.3%			238,396
Machinery - Construction & Mining		0.4%			339,200
Machinery - Diversified		1.1%			1,055,269
Media		1.2%			1,172,990
Metal Fabricate/Hardware		0.3%			323,502
Mining		1.6%			1,489,370
Miscellaneous Manufacturing		1.1%			1,093,750
Mixed Industrial/Office		0.5%			496,300
Office & Business Equipment		0.4%			336,437
Oil & Gas		4.3%			4,162,291
Oil & Gas Services		0.1%			97,604
Packaging and Containers		0.2%			160,122

158

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Developed International Index Fund

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value			Value†
Pharmaceuticals		9.2%		$	8,790,393
Pipelines		0.1%			55,077
Real Estate		1.7%			1,634,063
Real Estate Investment Trusts		1.0%			918,334
Real Estate Management Services		0.1%			107,416
Retail		3.0%			2,845,682
Semiconductors		0.8%			797,708
Shipbuilding		—%	+		23,292
Software		1.1%			1,053,862
Storage & Warehousing		—%	+		13,176
Telecommunications		5.6%			5,388,082
Textiles		0.2%			151,736
Toys, Games & Hobbies		0.1%			140,296
Transportation		2.1%			1,970,596
Unknown		1.1%			1,021,814
Venture Capital		0.1%			59,802
Water		0.3%			262,934
		100.0%		$	95,933,715

+ Rounded.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Australia	$	6,578,417	$	—	$	6,578,417	$	—
Austria		168,069		—		168,069		—
Belgium		1,400,571		—		1,400,571		—
China		79,771		—		79,771		—
Denmark		1,836,813		—		1,836,813		—
Finland		843,467		—		843,467		—
France		8,989,032		143		8,988,889		—
Germany		8,254,584		—		8,254,584		—
Hong Kong		2,895,492		39,665		2,855,827		—
Ireland		875,196		22,220		852,976		—
Israel		717,417		70,226		647,191		—
Italy		2,104,555		—		2,104,555		—
Japan		22,340,946		146,172		22,194,774		—
Jersey		45,651		—		45,651		—
Luxembourg		200,748		—		200,748		—
Macau		14,406		—		14,406		—
Netherlands		4,346,739		1,100,755		3,245,984		—
New Zealand		150,943		—		150,943		—
Norway		525,575		22,245		503,330		—
Portugal		132,618		—		132,618		—
Singapore		1,186,481		—		1,186,481		—
South Africa		56,058		—		56,058		—
Spain		3,026,619		4,313		3,022,306		—
Sweden		2,728,298		—		2,728,298		—
Switzerland		9,460,159		74,501		9,385,658		—
United Kingdom		16,975,090		—		16,975,090		—
PREFERRED STOCKS
Germany		498,568		—		498,568		—
SHORT-TERM INVESTMENTS		481,691		481,691		—		—
TOTAL INVESTMENTS	$	96,913,974	$	1,961,931	$	94,952,043	$	—

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

$986,639 was transferred from Level 1 into Level 2 at 12/31/15 as the Fund utilized third-party vendor modeling tools to reflect any significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. The Fund did not have any transfers in and transfers out of Level 3 fair value hierarchy during the reporting period.

Fair Value of Level 2 at 12/31/14 was $920,494 which was a result of valuing investments using third-party vendor modeling tools. An amount of $920,494 was transferred from Level 2 into Level 1 at 12/31/2015 as a result of using quoted prices in active market for such foreign securities.

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

159

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

International Equity Fund

	Number of Shares		Value†
COMMON STOCKS — 98.4%
Australia — 4.9%
CSL Ltd.		127,280	$	9,703,766
Ramsay Health Care Ltd.		146,942		7,225,447
Sonic Healthcare Ltd.		124,462		1,611,425
				18,540,638
Canada — 3.0%
Alimentation Couche Tard, Inc., Class B		166,796		7,342,303
Enbridge, Inc.		120,560		4,007,921
				11,350,224
Denmark — 4.0%
Coloplast A/S, B Shares		33,769		2,726,413
Novo Nordisk A/S, B Shares		208,582		12,076,524
				14,802,937
France — 7.1%
Air Liquide S.A.		41,368		4,644,270
Bureau Veritas S.A.		257,469		5,131,743
Essilor International S.A.		58,196		7,253,354
Hermes International		12,953		4,378,461
L’Oreal S.A.		30,830		5,185,783
				26,593,611
Germany — 4.6%
Bayer AG		63,848		7,974,044
SAP S.E.		117,341		9,311,431
				17,285,475
Hong Kong — 2.1%
Cheung Kong Infrastructure Holdings Ltd.		424,981		3,926,348
Link REIT		682,558		4,069,330
				7,995,678
India — 10.9%
HDFC Bank Ltd.~		963,918		19,503,107
HDFC Bank Ltd. ADR		14,591		898,806
Housing Development Finance Corp., Ltd.		843,178		16,037,112
ITC Ltd.		930,990		4,603,576
				41,042,601
Ireland — 3.1%
Accenture PLC, Class A		61,585		6,435,632
Paddy Power PLC		39,384		5,260,044
				11,695,676
Japan — 2.3%
Daito Trust Construction Co., Ltd.		41,700		4,816,788
Unicharm Corp.		192,600		3,933,214
				8,750,002
Netherlands — 4.1%
ABN AMRO Group N.V.*		74,215		1,667,109
Unilever N.V.		314,280		13,697,686
				15,364,795
South Africa — 1.6%
Naspers Ltd., N Shares		43,747		5,979,530

	Number of Shares		Value†
South Korea — 0.5%
Amorepacific Corp.		5,454	$	1,913,957
Spain — 1.7%
Banco Bilbao Vizcaya Argentaria S.A.		5,167		37,754
Grifols S.A.		133,802		6,184,604
				6,222,358
Switzerland — 13.3%
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates		1,142		7,131,457
Nestle S.A.		242,071		17,970,202
Roche Holding AG		64,636		17,911,179
UBS Group AG		358,748		6,959,522
				49,972,360
United Kingdom — 23.0%
British American Tobacco PLC		435,456		24,182,771
Diageo PLC		214,038		5,844,933
Domino’s Pizza Group PLC		389,363		6,034,775
Imperial Tobacco Group PLC		177,430		9,371,467
Lloyds Banking Group PLC		4,223,400		4,544,384
Persimmon PLC*		230,129		6,865,558
Reckitt Benckiser Group PLC		178,122		16,481,075
SABMiller PLC		214,573		12,836,698
				86,161,661
United States — 12.2%
Alphabet, Inc.*		12,533		9,511,043
PayPal Holdings, Inc.*		242,425		8,775,785
Philip Morris International, Inc.		215,143		18,913,221
The Priceline Group, Inc.*		6,577		8,385,346
				45,585,395
TOTAL COMMON STOCKS (Cost $286,018,400)				369,256,898
SHORT-TERM INVESTMENTS — 2.0%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $7,337,935)		7,337,935		7,337,935
TOTAL INVESTMENTS — 100.4% (Cost $293,356,335)			$	376,594,833
Other Assets & Liabilities — (0.4)%				(1,419,617	)
TOTAL NET ASSETS — 100.0%			$	375,175,216

† See Security Valuation Note.

* Non-income producing security.

144A @ 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.

160

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Schedule of Investments — December 31, 2015

International Equity Fund

~ Fair valued security. The total market value of fair valued securities at December 31, 2015 is $19,503,107.

ADR — American Depository Receipt.

PLC — Public Limited Company.

REIT — Real Estate Investment Trust.

Country Weightings as of 12/31/2015††
United Kingdom	23	%
United States	14
Switzerland	13
India	11
France	7
Australia	5
Germany	5
Other	22
Total	100	%

††% of total investments as of December 31, 2015

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Agriculture		15.4%	$	57,071,035
Apparel		1.2%		4,378,461
Banks		9.1%		33,610,682
Beverages		5.1%		18,681,631
Biotechnology		2.6%		9,703,766
Building & Real Estate		1.9%		6,865,558
Chemicals		2.2%		7,974,044
Commercial Services		3.8%		13,907,528
Computers		1.7%		6,435,632
Cosmetics & Personal Care		3.0%		11,032,954
Diversified Financial Services		4.3%		16,037,112
Entertainment		1.4%		5,260,044
Food		10.5%		38,799,345
Gas		1.3%		4,644,270
Healthcare Products		2.7%		9,979,767
Healthcare Services		2.4%		8,836,872
Household Products & Wares		4.5%		16,481,075
Internet		4.8%		17,896,389
Investment Companies		1.1%		3,926,348
Media		1.6%		5,979,530
Oil & Gas Services		1.1%		4,007,921
Pharmaceuticals		9.8%		36,172,307
Real Estate		1.3%		4,816,788
Real Estate Investment Trusts		1.1%		4,069,330
Retail		3.6%		13,377,078
Software		2.5%		9,311,431
		100.0%	$	369,256,898

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS
Australia	$	18,540,638	$	—	$	18,540,638	$	—
Canada		11,350,224		11,350,224		—		—
Denmark		14,802,937		—		14,802,937		—
France		26,593,611		—		26,593,611		—
Germany		17,285,475		—		17,285,475		—
Hong Kong		7,995,678		—		7,995,678		—
India		41,042,601		898,806		40,143,795		—
Ireland		11,695,676		6,435,632		5,260,044		—
Japan		8,750,002		—		8,750,002		—
Netherlands		15,364,795		15,364,795		—		—
South Africa		5,979,530		—		5,979,530		—
South Korea		1,913,957		—		1,913,957		—
Spain		6,222,358		—		6,222,358		—
Switzerland		49,972,360		—		49,972,360		—
United Kingdom		86,161,661		—		86,161,661		—
United States		45,585,395		45,585,395		—		—
SHORT-TERM INVESTMENTS		7,337,935		7,337,935		—		—
TOTAL INVESTMENTS	$	376,594,833	$	86,972,787	$	289,622,046	$	—

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

$5,330,323 was transferred from Level 1 into Level 2 at 12/31/15 as the Fund utilized third-party vendor modeling tools to reflect any significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. The Fund did not have any transfers in and transfers out of Level 3 fair value hierarchy during the reporting period.

Fair Value of Level 2 at 12/31/14 was $16,041,755 which was a result of valuing investments using third-party vendor modeling tools. An amount of $16,041,755 was transferred from Level 2 into Level 1 at 12/31/2015 as a result of using quoted prices in active market for such foreign securities.

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

161

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Schedule of Investments — December 31, 2015

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — 88.3%
Argentina — 0.7%
MercadoLibre, Inc.		9,248	$	1,057,416
Austria — 2.2%
Erste Group Bank AG*		78,192		2,446,646
Vienna Insurance Group AG Wiener Versicherung Gruppe		29,784		814,677
				3,261,323
Brazil — 2.4%
BRF S.A.		154,959		2,169,916
Raia Drogasil S.A.		80,087		718,227
Ultrapar Participacoes S.A.		42,389		647,688
				3,535,831
Chile — 0.5%
S.A.C.I. Falabella		121,582		774,902
China — 12.1%
Alibaba Group Holding Ltd. ADR*		6,100		495,747
Bank of China Ltd., Class H		5,825,000		2,584,631
China Construction Bank Corp., Class H		4,000,930		2,729,227
China Machinery Engineering Corp.		408,000		297,695
China Pacific Insurance Group Co. Ltd., Class H		356,800		1,460,158
Chongqing Changan Automobile Co. Ltd., Class B		141,400		311,322
CRCC High-Tech Equipment Corp. Ltd.*		649,000		397,772
Huadian Power International Corp. Ltd., Class H		572,000		370,127
JD.Com, Inc. ADR*		27,922		900,903
NetEase.com, Inc. ADR		3,003		544,264
Shanghai Jin Jiang International Hotels Group Co. Ltd., Class H		476,000		199,828
Shenzhou International Group Holdings Ltd.		142,000		813,771
Sihuan Pharmaceutical Holdings Group Ltd.~		1,282,000		480,375
TAL Education Group ADR*		16,558		769,450
Tencent Holdings Ltd.		274,700		5,378,622
Tsingtao Brewery Co. Ltd., Class H		40,000		180,189
				17,914,081
Colombia — 0.2%
Grupo de Inversiones Suramericana S.A.		27,343		307,496
Czech Republic — 1.1%
Komercni Banka, A.S.		7,957		1,579,709
Egypt — 0.5%
Commercial International Bank Egypt SAE		140,908		685,460
Hong Kong — 5.6%
AIA Group Ltd.		259,600		1,551,132
China Mengniu Dairy Co. Ltd.		298,000		483,756
China Mobile Ltd.		294,500		3,314,923
China Overseas Land & Investment Ltd.		294,000		1,023,521
China Taiping Insurance Holdings Co. Ltd.*		199,800		613,288
China Unicom Hong Kong Ltd.		288,000		347,905
CSPC Pharmaceutical Group Ltd.		436,000		444,505
Shenzhen International Holdings Ltd.		307,000		564,911
				8,343,941

	Number of Shares		Value†
India — 9.6%
Ashok Leyland Ltd.		1,329,406	$	1,758,783
Bharat Petroleum Corp. Ltd.		81,611		1,096,207
Glenmark Pharmaceuticals Ltd.		69,286		961,936
HDFC Bank Ltd.~		76,161		1,540,978
Idea Cellular Ltd.		185,253		400,871
IndusInd Bank Ltd.		117,956		1,721,627
Larsen & Toubro Ltd.		49,679		954,901
Marico Ltd.		332,122		1,133,645
Maruti Suzuki India Ltd.		21,149		1,472,843
Shree Cement Ltd.		7,589		1,315,190
Shriram Transport Finance Co. Ltd.		105,925		1,369,550
Sun Pharmaceutical Industries Ltd.		40,790		504,581
				14,231,112
Indonesia — 2.9%
AKR Corporindo Tbk PT		825,800		427,033
Jasa Marga Persero Tbk PT		204,600		76,970
Kalbe Farma Tbk PT		6,133,200		583,539
Link Net Tbk PT*		1,779,800		512,556
Matahari Department Store Tbk PT		1,029,900		1,303,786
Surya Citra Media Tbk PT		1,975,000		440,395
United Tractors Tbk PT		186,900		227,572
Xl Axiata Tbk PT*		2,602,100		684,890
				4,256,741
Japan — 0.6%
Nexon Co. Ltd.		55,200		897,979
Malaysia — 0.1%
Astro Malaysia Holdings Bhd		124,600		79,857
Mexico — 6.5%
Alfa S.A.B. de C.V.		626,822		1,241,314
Cemex S.A.B. de C.V. ADR		292,044		1,626,685
El Puerto de Liverpool S.A.B de C.V.		51,658		631,664
Fomento Economico Mexicano S.A.B. de C.V. ADR		32,848		3,033,513
Grupo Financiero Banorte S.A.B. de C.V., Series O		341,117		1,876,346
Grupo Financiero Inbursa S.A.B de C.V., Series O		247,747		448,646
Mexichem S.A.B. de C.V.		348,380		782,084
				9,640,252
Netherlands — 0.9%
Steinhoff International Holdings NV		248,881		1,263,475
Pakistan — 1.0%
Lucky Cement Ltd.		135,200		639,035
United Bank Ltd.		612,800		906,606
				1,545,641
Panama — 0.2%
Copa Holdings SA, Class A		6,138		296,220
Peru — 0.9%
Credicorp Ltd.		12,906		1,256,012

162

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Schedule of Investments — December 31, 2015

Emerging Markets Equity Fund

	Number of Shares		Value†
COMMON STOCKS — (continued)
Philippines — 3.9%
BDO Unibank, Inc.		268,770	$	597,434
DMCI Holdings, Inc.		2,122,650		620,682
International Container Terminal Services, Inc.		271,320		404,134
LT Group, Inc.		2,104,900		661,913
Metro Pacific Investments Corp.		8,575,100		946,001
Metropolitan Bank & Trust Co.		705,703		1,203,729
SM Investments Corp.		72,840		1,330,606
				5,764,499
Poland — 2.7%
Bank Pekao S.A.		22,845		834,363
CCC S.A.		20,953		737,604
Eurocash SA		48,392		596,359
LPP S.A.		346		488,936
PKP Cargo S.A.		36,861		638,262
Polski Koncern Naftowy Orlen S.A.		43,077		741,539
				4,037,063
Portugal — 0.7%
Jeronimo Martins SGPS, S.A.		81,225		1,056,936
Russia — 1.9%
Mail.Ru Group Ltd. GDR*		47,015		1,060,188
X5 Retail Group N.V. GDR*		39,527		749,037
Yandex NV, Class A*		60,698		954,172
				2,763,397
South Africa — 4.3%
Life Healthcare Group Holdings Ltd.		291,584		661,877
MTN Group Ltd.		110,478		951,697
Naspers Ltd., N Shares		19,048		2,603,563
Sasol Ltd.		34,500		931,424
Vodacom Group Ltd.		114,964		1,133,052
				6,281,613
South Korea — 10.2%
Amorepacific Corp.		3,913		1,373,178
Cosmax, Inc.		3,507		544,195
Coway Co. Ltd.		18,226		1,297,728
Hotel Shilla Co. Ltd.		12,471		816,591
Hyundai Development Co.		7,876		257,373
KB Financial Group, Inc.		30,304		853,779
Kia Motors Corp.		24,256		1,081,575
Korea Aerospace Industries Ltd.		8,502		561,240
LG Chem Ltd.		3,239		894,233
LIG Nex1 Co. Ltd.*		3,971		350,517
NAVER Corp.		1,824		1,017,134
Samsung Electronics Co. Ltd.		4,532		4,833,751
SK Holdings Co. Ltd.		4,493		915,427
SK Telecom Co. Ltd.		1,714		313,693
				15,110,414
Spain — 0.2%
Cemex Latam Holdings S.A.*		100,545		325,595
Switzerland — 0.7%
DKSH Holding AG*		15,553		978,199

	Number of Shares		Value†
Taiwan — 9.8%
Advanced Semiconductor Engineering, Inc.		995,000	$	1,142,978
Advanced Semiconductor Engineering, Inc. ADR		9,768		55,385
Catcher Technology Co. Ltd.		129,000		1,075,398
Chailease Holding Co. Ltd.		446,540		768,516
Delta Electronics, Inc.		180,242		847,783
Eclat Textile Co. Ltd.		69,644		956,994
Formosa Plastics Corp.		160,000		373,508
Fubon Financial Holding Co. Ltd.		648,310		881,850
Hermes Microvision, Inc.		6,012		216,238
Hon Hai Precision Industry Co. Ltd.		709,400		1,736,113
PChome Online, Inc.		36,000		357,874
Pegatron Corp.		384,000		835,188
Taiwan Mobile Co. Ltd.		172,000		522,342
Taiwan Semiconductor Manufacturing Co. Ltd.		815,769		3,519,424
Uni-President Enterprises Corp.		754,962		1,258,473
				14,548,064
Thailand — 2.0%
Advanced Info Service PCL		4,000		16,840
Advanced Info Service PCL NVDR		174,100		732,500
BTS Rail Mass Transit Growth Infrastructure Fund		2,627,200		744,684
Land and Houses PCL NVDR		1,992,800		520,829
Minor International PCL NVDR		738,170		739,316
Total Access Communication PCL NVDR		241,300		201,600
				2,955,769
Turkey — 0.9%
Arcelik A.S.		141,624		677,977
Ulker Biskuvi Sanayi A.S.		110,667		667,927
				1,345,904
United Kingdom — 0.9%
Mondi PLC		70,129		1,392,546
United States — 2.1%
Samsonite International S.A.		728,100		2,182,100
Yum! Brands, Inc.		12,290		897,784
				3,079,884
TOTAL COMMON STOCKS (Cost $122,009,296)				130,567,331
PREFERRED STOCKS — 3.4%
Brazil — 1.8%
Banco Bradesco S.A.		177,705		866,010
Itau Unibanco Holding S.A.		198,534		1,321,302
Telefonica Brasil S.A.		50,700		458,142
				2,645,454
Colombia — 0.2%
Grupo de Inversiones Suramericana S.A.		31,247		341,557

163

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Schedule of Investments — December 31, 2015

Emerging Markets Equity Fund

	Number of Shares		Value†
PREFERRED STOCKS — (continued)
South Korea — 1.4%
Samsung Electronics Co. Ltd.		2,229	$	2,060,461
TOTAL PREFERRED STOCKS (Cost $7,760,677)				5,047,472
RIGHTS — 0.0%
Brazil — 0.0%
Banco Bradesco SA 02/05/16*~ (Cost $0)		5,821		3,046
SHORT-TERM INVESTMENTS — 1.6%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,354,654)		2,354,654		2,354,654
TOTAL INVESTMENTS — 93.3% (Cost $132,124,627)			$	137,972,503
Other Assets & Liabilities — 6.7%				9,846,736
TOTAL NET ASSETS — 100.0%			$	147,819,239

† See Security Valuation Note.

* Non-income producing security.

~ Fair valued security. The total market value of fair valued securities at December 31, 2015 is $2,024,399.

ADR — American Depository Receipt.

GDR — Global Depository Receipt.

NVDR — Non Voting Depository Receipt.

PCL — Public Company Limited.

PLC — Public Limited Company.

COMMON STOCKS INDUSTRY DIVERSIFICATION	% of Market Value		Value†
Advertising		0.7%	$	978,199
Aerospace & Defense		0.7%		911,757
Airlines		0.2%		296,220
Apparel		1.7%		2,259,701
Auto Manufacturers		3.5%		4,624,523
Banks		15.6%		20,411,414
Beverages		3.0%		3,875,615
Building Materials		3.0%		3,906,505
Chemicals		2.1%		2,697,513
Commercial Services		1.4%		1,815,465
Computers		0.7%		915,427
Cosmetics & Personal Care		1.5%		1,917,373
Distribution & Wholesale		0.3%		427,033
Diversified Financial Services		3.0%		3,873,695
Electric		0.3%		370,127
Electrical Components & Equipment		1.5%		1,899,209
Electronics		1.3%		1,736,113
Engineering & Construction		1.9%		2,528,423
Food		5.3%		6,982,404
Forest Products & Paper		1.1%		1,392,546
Healthcare Services		0.5%		661,877
Holding Companies		1.0%		1,241,314
Home Builders		0.4%		520,829
Home Furnishings		2.5%		3,239,180
Hotels & Resorts		0.6%		816,591
Household Products & Wares		2.5%		3,315,745
Insurance		3.4%		4,439,255
Internet		9.0%		11,734,612
Investment Companies		0.2%		307,496
Lodging		0.2%		199,828
Machinery — Construction & Mining		0.2%		227,572
Media		2.4%		3,123,815
Metal Fabricate/Hardware		0.8%		1,075,398
Oil & Gas		2.1%		2,769,170
Pharmaceuticals		2.3%		2,974,936
Real Estate		0.8%		1,023,521
Retail		5.5%		7,133,889
Semiconductors		7.3%		9,551,538
Software		1.1%		1,442,243
Telecommunications		6.6%		8,620,313
Transportation		1.1%		1,382,946
Water		0.7%		946,001
		100.0%	$	130,567,331

164

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Schedule of Investments — December 31, 2015

Emerging Markets Equity Fund

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Signi ficant Unobs ervable Input
COMMON STOCKS
Argentina	$	1,057,416	$	1,057,416	$	—	$	—
Austria		3,261,323		—		3,261,323		—
Brazil		3,535,831		3,535,831		—		—
Chile		774,902		774,902		—		—
China		17,914,081		3,108,136		14,805,945		—
Colombia		307,496		307,496		—		—
Czech Republic		1,579,709		—		1,579,709		—
Egypt		685,460		685,460		—		—
Hong Kong		8,343,941		—		8,343,941		—
India		14,231,112		—		14,231,112		—
Indonesia		4,256,741		—		4,256,741		—
Japan		897,979		—		897,979		—
Malaysia		79,857		—		79,857		—
Mexico		9,640,252		9,640,252		—		—
Netherlands		1,263,475		1,263,475		—		—
Pakistan		1,545,641		1,545,641		—		—
Panama		296,220		296,220		—		—
Peru		1,256,012		1,256,012		—		—
Philippines		5,764,499		—		5,764,499		—
Poland		4,037,063		—		4,037,063		—
Portugal		1,056,936		—		1,056,936		—
Russia		2,763,397		1,703,209		1,060,188		—
South Africa		6,281,613		—		6,281,613		—
South Korea		15,110,414		350,517		14,759,897		—
Spain		325,595		325,595		—		—
Switzerland		978,199		—		978,199		—
Taiwan		14,548,064		55,385		14,492,679		—
Thailand		2,955,769		—		2,955,769		—
Turkey		1,345,904		—		1,345,904		—
United Kingdom		1,392,546		—		1,392,546		—
United States		3,079,884		897,784		2,182,100		—
PREFERRED STOCKS		5,047,472		2,987,011		2,060,461		—
RIGHTS		3,046		—		3,046		—
SHORT-TERM INVESTMENTS		2,354,654		2,354,654		—		—
TOTAL INVESTMENTS	$	137,972,503	$	32,144,996	$	105,827,507	$	—

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

$3,832,735 was transferred from Level 1 into Level 2 at 12/31/15 as the Fund utilized third-party vendor modeling tools to reflect any significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. The Fund did not have any transfers in and transfers out of Level 3 fair value hierarchy 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, 2015

Real Estate Securities Fund

	Number of Shares		Value†
COMMON STOCKS — 2.1%
Healthcare Services — 0.5%
Brookdale Senior Living, Inc.*		36,375	$	671,483
Hotels & Resorts — 0.9%
La Quinta Holdings Inc*		89,645		1,220,068
Lodging — 0.7%
Extended Stay America, Inc.		60,710		965,289
TOTAL COMMON STOCKS (Cost $3,705,249)				2,856,840
REAL ESTATE INVESTMENT TRUSTS — 96.7%
Apartments — 18.6%
Apartment Investment & Management Co., Class A		119,501		4,783,625
Education Realty Trust, Inc.		44,082		1,669,826
Equity Residential		76,778		6,264,317
Essex Property Trust, Inc.		21,706		5,196,633
UDR, Inc.		206,645		7,763,653
				25,678,054
Building & Real Estate — 3.6%
National Retail Properties, Inc.		54,828		2,195,861
Spirit Realty Capital, Inc.		273,035		2,735,811
				4,931,672
Diversified — 11.4%
American Assets Trust, Inc.		4		153
Duke Realty Corp.		95,373		2,004,741
Equinix, Inc.		12,776		3,863,462
Retail Properties of America, Inc. Class A		133,147		1,966,581
Vornado Realty Trust		78,083		7,805,177
				15,640,114
Healthcare — 9.2%
HCP, Inc.		112,845		4,315,193
Healthcare Trust of America, Inc.		69,472		1,873,660
Omega Healthcare Investors, Inc.		123,403		4,316,637
Welltower, Inc.		32,533		2,213,220
				12,718,710
Hotels & Resorts — 4.0%
DiamondRock Hospitality Co.		87,555		844,906
Host Hotels & Resorts, Inc.		213,779		3,279,370
Sunstone Hotel Investors, Inc.		115,388		1,441,196
				5,565,472
Industrial — 3.0%
Prologis, Inc.		48,238		2,070,375
QTS Realty Trust, Inc.		45,694		2,061,256
				4,131,631
Manufactured Homes — 1.4%
Sun Communities, Inc.		29,015		1,988,398
Office Property — 9.5%
Douglas Emmett, Inc.		69,879		2,178,827
Empire State Realty Trust, Inc.		46,105		833,118
Kilroy Realty Corp.		62,304		3,942,597
SL Green Realty Corp.		53,861		6,085,216
				13,039,758

	Number of Shares		Value†
Regional Malls — 17.6%
General Growth Properties, Inc.		133,353	$	3,628,535
Pennsylvania Real Estate Investment Trust		79,838		1,746,057
Simon Property Group, Inc.		73,639		14,318,367
The Macerich Co.		55,703		4,494,675
				24,187,634
Storage & Warehousing — 10.4%
CubeSmart		214,922		6,580,912
Public Storage		31,004		7,679,691
				14,260,603
Strip Centers — 8.0%
Brixmor Property Group, Inc.		108,627		2,804,749
DDR Corp.		314,364		5,293,890
Regency Centers Corp.		42,479		2,893,669
				10,992,308
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $116,870,143)				133,134,354
SHORT-TERM INVESTMENTS — 2.1%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $2,865,012)		2,865,012		2,865,012
TOTAL INVESTMENTS — 100.9% (Cost $123,440,404)			$	138,856,206
Other Assets & Liabilities — (0.9)%				(1,212,252	)
TOTAL NET ASSETS — 100.0%			$	137,643,954

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
COMMON STOCKS	$	2,856,840	$	2,856,840	$	—	$	—
REAL ESTATE INVESTMENT TRUSTS		133,134,354		133,134,354		—		—
SHORT-TERM INVESTMENTS		2,865,012		2,865,012		—		—
TOTAL INVESTMENTS	$	138,856,206	$	138,856,206	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

166

Penn Series Funds, Inc.

Schedule of Investments — December 31, 2015

Aggressive Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 66.7%
Penn Series Flexibly Managed Fund*		57,843	$	2,432,289
Penn Series Index 500 Fund*		188,374		3,040,361
Penn Series Large Cap Growth Fund*		92,906		1,216,144
Penn Series Large Cap Value Fund*		273,783		6,080,722
Penn Series Large Core Value Fund*		329,355		4,864,577
Penn Series Large Growth Stock Fund*		80,888		2,432,289
Penn Series Mid Cap Growth Fund*		86,744		1,216,144
Penn Series Mid Cap Value Fund*		188,452		3,648,433
Penn Series Mid Core Value Fund*		207,651		3,648,433
Penn Series Real Estate Securities Fund*		128,353		2,432,289
Penn Series Small Cap Growth Fund*		63,806		1,824,217
Penn Series Small Cap Index Fund*		36,433		608,072
Penn Series Small Cap Value Fund*		91,784		2,432,289
Penn Series SMID Cap Growth Fund*		93,742		1,824,217
Penn Series SMID Cap Value Fund*		154,177		3,040,361
TOTAL AFFILIATED EQUITY FUNDS (Cost $27,222,546)				40,740,837
AFFILIATED FIXED INCOME FUNDS — 2.0%
Penn Series Quality Bond Fund* (Cost $1,128,335)		90,420		1,216,144
AFFILIATED INTERNATIONAL EQUITY FUNDS — 30.8%
Penn Series Developed International Index Fund*		427,467		4,864,577
Penn Series Emerging Markets Equity Fund*		566,527		5,472,650
Penn Series International Equity Fund*		351,342		8,513,011
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $15,932,577)				18,850,238
SHORT-TERM INVESTMENTS — 0.7%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $414,104)		414,104		414,104
TOTAL INVESTMENTS — 100.2% (Cost $44,697,562)			$	61,221,323
Other Assets & Liabilities — (0.2)%				(102,250	)
TOTAL NET ASSETS — 100.0%			$	61,119,073

* Non-income producing security.

† See Security Valuation Note.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	40,740,837	$	40,740,837	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		1,216,144		1,216,144		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		18,850,238		18,850,238		—		—
SHORT-TERM INVESTMENTS		414,104		414,104		—		—
TOTAL INVESTMENTS	$	61,221,323	$	61,221,323	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy 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, 2015

Moderately Aggressive Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 58.8%
Penn Series Flexibly Managed Fund*		339,363	$	14,270,215
Penn Series Index 500 Fund*		589,435		9,513,476
Penn Series Large Cap Growth Fund*		363,387		4,756,738
Penn Series Large Cap Value Fund*		856,684		19,026,953
Penn Series Large Core Value Fund*		1,288,216		19,026,953
Penn Series Large Growth Stock Fund*		237,283		7,135,107
Penn Series Mid Cap Growth Fund*		339,282		4,756,738
Penn Series Mid Cap Value Fund*		614,248		11,891,846
Penn Series Mid Core Value Fund*		676,827		11,891,845
Penn Series Real Estate Securities Fund*		376,523		7,135,107
Penn Series Small Cap Growth Fund*		166,378		4,756,738
Penn Series Small Cap Index Fund*		285,005		4,756,738
Penn Series Small Cap Value Fund*		269,249		7,135,107
Penn Series SMID Cap Growth Fund*		244,437		4,756,738
Penn Series SMID Cap Value Fund*		482,428		9,513,476
TOTAL AFFILIATED EQUITY FUNDS (Cost $88,996,573)				140,323,775
AFFILIATED FIXED INCOME FUNDS — 15.9%
Penn Series High Yield Bond Fund*		672,489		7,135,107
Penn Series Limited Maturity Bond Fund*		615,626		7,135,107
Penn Series Quality Bond Fund*		1,768,304		23,783,691
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $34,806,337)				38,053,905
AFFILIATED INTERNATIONAL EQUITY FUNDS — 24.9%
Penn Series Developed International Index Fund*		1,462,969		16,648,584
Penn Series Emerging Markets Equity Fund*		1,477,248		14,270,214
Penn Series International Equity Fund*		1,177,896		28,540,429
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $47,467,443)				59,459,227
SHORT-TERM INVESTMENTS — 0.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,219,518)		1,219,518		1,219,518
TOTAL INVESTMENTS — 100.1% (Cost $172,489,871)			$	239,056,425
Other Assets & Liabilities — (0.1)%				(148,590	)
TOTAL NET ASSETS — 100.0%			$	238,907,835

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Signi ficant Obser vable Input		Level 3 Signi ficant Unobse rvable Input
AFFILIATED EQUITY FUNDS	$	140,323,775	$	140,323,775	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		38,053,905		38,053,905		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		59,459,227		59,459,227		—		—
SHORT-TERM INVESTMENTS		1,219,518		1,219,518		—		—
TOTAL INVESTMENTS	$	239,056,425	$	239,056,425	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy 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, 2015

Moderate Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 45.8%
Penn Series Flexibly Managed Fund*		567,262	$	23,853,363
Penn Series Index 500 Fund*		633,387		10,222,870
Penn Series Large Cap Growth Fund*		260,323		3,407,623
Penn Series Large Cap Value Fund*		920,565		20,445,739
Penn Series Large Core Value Fund*		1,384,275		20,445,739
Penn Series Large Growth Stock Fund*		226,646		6,815,247
Penn Series Mid Cap Growth Fund*		486,109		6,815,246
Penn Series Mid Cap Value Fund*		528,041		10,222,870
Penn Series Mid Core Value Fund*		969,728		17,038,116
Penn Series Real Estate Securities Fund*		359,644		6,815,247
Penn Series Small Cap Growth Fund*		119,189		3,407,623
Penn Series Small Cap Index Fund*		408,343		6,815,246
Penn Series Small Cap Value Fund*		385,769		10,222,870
Penn Series SMID Cap Growth Fund*		175,109		3,407,623
Penn Series SMID Cap Value Fund*		345,601		6,815,246
TOTAL AFFILIATED EQUITY FUNDS (Cost $99,084,913)				156,750,668
AFFILIATED FIXED INCOME FUNDS — 34.9%
Penn Series High Yield Bond Fund*		1,284,684		13,630,493
Penn Series Limited Maturity Bond Fund*		1,764,085		20,445,739
Penn Series Quality Bond Fund*		6,333,872		85,190,580
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $106,694,118)				119,266,812
AFFILIATED INTERNATIONAL EQUITY FUNDS — 17.9%
Penn Series Developed International Index Fund*		1,497,198		17,038,116
Penn Series Emerging Markets Equity Fund*		1,411,024		13,630,493
Penn Series International Equity Fund*		1,265,729		30,668,609
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $46,427,517)				61,337,218
AFFILIATED MONEY MARKET FUND — 1.0%
Penn Series Money Market Fund (Cost $3,407,652)		3,407,652		3,407,652
SHORT-TERM INVESTMENTS — 0.3%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $1,158,550)		1,158,550		1,158,550
TOTAL INVESTMENTS — 99.9% (Cost $256,772,750)			$	341,920,900
Other Assets & Liabilities — 0.1%				230,804
TOTAL NET ASSETS — 100.0%			$	342,151,704

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Signi ficant Obse rvable Input		Level 3 Sign ificant Unobs ervable Input
AFFILIATED EQUITY FUNDS	$	156,750,668	$	156,750,668	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		119,266,812		119,266,812		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		61,337,218		61,337,218		—		—
AFFILIATED MONEY MARKET FUNDS		3,407,652		3,407,652		—		—
SHORT-TERM INVESTMENTS		1,158,550		1,158,550		—		—
TOTAL INVESTMENTS	$	341,920,900	$	341,920,900	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy 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, 2015

Moderately Conservative Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 32.7%
Penn Series Flexibly Managed Fund*		192,815	$	8,107,870
Penn Series Index 500 Fund*		125,587		2,026,967
Penn Series Large Cap Growth Fund*		77,424		1,013,484
Penn Series Large Cap Value Fund*		228,159		5,067,419
Penn Series Large Core Value Fund*		343,089		5,067,419
Penn Series Large Growth Stock Fund*		33,704		1,013,484
Penn Series Mid Cap Value Fund*		104,699		2,026,967
Penn Series Mid Core Value Fund*		173,048		3,040,451
Penn Series Real Estate Securities Fund*		106,964		2,026,967
Penn Series Small Cap Index Fund*		60,724		1,013,484
Penn Series Small Cap Value Fund*		76,489		2,026,967
Penn Series SMID Cap Value Fund*		51,394		1,013,481
TOTAL AFFILIATED EQUITY FUNDS (Cost $21,305,841)				33,444,960
AFFILIATED FIXED INCOME FUNDS — 54.6%
Penn Series High Yield Bond Fund*		573,129		6,080,903
Penn Series Limited Maturity Bond Fund*		1,311,670		15,202,256
Penn Series Quality Bond Fund*		2,561,966		34,458,447
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $48,770,752)				55,741,606
AFFILIATED INTERNATIONAL EQUITY FUNDS — 10.9%
Penn Series Developed International Index Fund*		267,175		3,040,451
Penn Series Emerging Markets Equity Fund*		209,831		2,026,968
Penn Series International Equity Fund*		250,966		6,080,902
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $8,345,577)				11,148,321
AFFILIATED MONEY MARKET FUND — 1.0%
Penn Series Money Market Fund (Cost $1,013,492)		1,013,492		1,013,492
SHORT-TERM INVESTMENTS — 0.9%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $878,416)		878,416		878,416
TOTAL INVESTMENTS — 100.1% (Cost $80,314,078)			$	102,226,795
Other Assets & Liabilities — (0.1)%				(126,258	)
TOTAL NET ASSETS — 100.0%			$	102,100,537

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Signi ficant Obser vable Input		Level 3 Signi ficant Unobse rvable Input
AFFILIATED EQUITY FUNDS	$	33,444,960	$	33,444,960	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		55,741,606		55,741,606		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		11,148,321		11,148,321		—		—
AFFILIATED MONEY MARKET FUNDS		1,013,492		1,013,492		—		—
SHORT-TERM INVESTMENTS		878,416		878,416		—		—
TOTAL INVESTMENTS	$	102,226,795	$	102,226,795	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy 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, 2015

Conservative Allocation Fund

	Number of Shares		Value†
AFFILIATED EQUITY FUNDS — 17.7%
Penn Series Flexibly Managed Fund*		114,689	$	4,822,674
Penn Series Index 500 Fund*		37,350		602,834
Penn Series Large Cap Value Fund*		81,427		1,808,503
Penn Series Large Core Value Fund*		163,259		2,411,337
Penn Series Mid Core Value Fund*		68,621		1,205,669
TOTAL AFFILIATED EQUITY FUNDS (Cost $7,556,460)				10,851,017
AFFILIATED FIXED INCOME FUNDS — 70.9%
Penn Series High Yield Bond Fund*		397,723		4,219,840
Penn Series Limited Maturity Bond Fund*		1,092,280		12,659,521
Penn Series Quality Bond Fund*		1,972,097		26,524,710
TOTAL AFFILIATED FIXED INCOME FUNDS (Cost $37,364,225)				43,404,071
AFFILIATED INTERNATIONAL EQUITY FUNDS — 4.9%
Penn Series Developed International Index Fund*		105,946		1,205,669
Penn Series International Equity Fund*		74,639		1,808,503
TOTAL AFFILIATED INTERNATIONAL EQUITY FUNDS (Cost $2,339,354)				3,014,172
AFFILIATED MONEY MARKET FUND — 4.9%
Penn Series Money Market Fund (Cost $3,014,197)		3,014,197		3,014,197
SHORT-TERM INVESTMENTS — 1.5%
BlackRock Liquidity Funds FedFund Portfolio - Institutional Shares (Cost $919,825)		919,825		919,825
TOTAL INVESTMENTS — 99.9% (Cost $51,194,061)			$	61,203,282
Other Assets & Liabilities — 0.1%				13,286
TOTAL NET ASSETS — 100.0%			$	61,216,568

† See Security Valuation Note.

* Non-income producing security.

Summary of inputs used to value the Fund’s investments as of 12/31/2015 are as follows (See Security Valuation Note):

ASSETS TABLE
Description	Total Market Value at 12/31/2015		Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input
AFFILIATED EQUITY FUNDS	$	10,851,017	$	10,851,017	$	—	$	—
AFFILIATED FIXED INCOME FUNDS		43,404,071		43,404,071		—		—
AFFILIATED INTERNATIONAL EQUITY FUNDS		3,014,172		3,014,172		—		—
AFFILIATED MONEY MARKET FUNDS		3,014,197		3,014,197		—		—
SHORT-TERM INVESTMENTS		919,825		919,825		—		—
TOTAL INVESTMENTS	$	61,203,282	$	61,203,282	$	—	$	—

It Is the Fund’s practice 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 Level 2 or Level 3 fair value hierarchy during the reporting period.

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

171

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2015

	Money Market Fund		Limited Maturity Bond Fund			Quality Bond Fund			High Yield Bond Fund
ASSETS
Investments at value	$	133,297,998	$	186,738,507		$	538,370,494		$	168,916,592
Cash		—		3,462			5,624			7,361
Initial Margin Held by Broker for Open Futures		—		154,299			166,263			—
Interest, dividends and reclaims receivable		135,218		922,209			2,885,629			2,906,005
Receivable for investment securities sold		—		2,123,984			2,072			15,399,296
Receivable for capital stock sold		282,397		2,064,208			9,509,748			2,729,005
Future variation margin receivable		—		14,063			26,250			—
Net unrealized appreciation of forward foreign currency contracts		—		—			—			272,254
Other assets		44,894		5,416			13,372			4,439
Total Assets		133,760,507		192,026,148			550,979,452			190,234,952
LIABILITIES
Payable for investment securities purchased		—		1,972,682			15,662,526			17,006,320
Payable for capital stock redeemed		866		2,104			10,058			1,979
Future variation margin payable		—		14,375			164,844			—
Payable to investment adviser (See Note 3)		37,403		74,769			197,281			81,568
Payable to the administrator (See Note 3)		54,814		78,202			201,714			66,930
Net unrealized depreciation of forward foreign currency contracts		—		—			—			944
Other liabilities		22,067		37,645			67,908			44,401
Total Liabilities		115,150		2,179,777			16,304,331			17,202,142
NET ASSETS	$	133,645,357	$	189,846,371		$	534,675,121		$	173,032,810
Investments at cost		133,297,998		188,356,965			547,978,805			182,576,138
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	133,645,093	$	191,955,024		$	544,341,221		$	194,679,961
Undistributed net investment income (loss)		264		—			—			(272,749	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		—		(415,507	)		(6,461	)		(7,992,603	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		—		(1,693,146	)		(9,659,639	)		(13,381,799	)
NET ASSETS	$	133,645,357	$	189,846,371		$	534,675,121		$	173,032,810
Shares outstanding, $0.10 par value, 500 million shares authorized		133,629,167
Shares outstanding, $0.10 par value, 250 million shares authorized							39,750,483			16,312,477
Shares outstanding, $0.0001 par value, 250 million shares authorized				16,377,239
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	1.00	$	11.59		$	13.45		$	10.61

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

172

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2015

	Flexibly Managed Fund			Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
ASSETS
Investments of affiliated issuers at value	$	—		$	76,232,176		$	—		$	—
Investments of unaffiliated issuers at value		3,320,241,746			454,818			301,209,458			44,096,845
Foreign currency, at value		—			—			—			—
Cash		737,549			—			10			500
Interest, dividends and reclaims receivable		12,077,269			25			134,155			46,804
Receivable for investment securities sold		13,734,432			1,398,018			—			3,066,273
Receivable for capital stock sold		11,081			32,288			1,583			1,489
Other assets		79,243			1,882			7,154			1,211
Total Assets		3,346,881,320			78,119,207			301,352,360			47,213,122
LIABILITIES
Call options written, at value		10,736,246			—			—			—
Payable for investment securities purchased		6,691,654			1,493,737			1,617,290			—
Payable for capital stock redeemed		3,731,277			255			2,690,294			3,455,501
Payable to investment adviser (See Note 3)		1,972,475			—			180,649			22,238
Payable to the administrator (See Note 3)		1,252,620			29,353			112,513			17,944
Other liabilities		300,657			9,242			48,481			15,598
Total Liabilities		24,684,929			1,532,587			4,649,227			3,511,281
NET ASSETS	$	3,322,196,391		$	76,586,620		$	296,703,133		$	43,701,841
Investments of affiliated issuers at cost		—			46,009,112			—			—
Investments of unaffiliated issuers at cost		3,020,231,801			454,818			214,966,710			39,275,958
Call options written, premiums received		(8,944,776	)		—			—			—
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	3,034,078,290		$	50,081,859		$	210,637,687		$	39,075,637
Undistributed net investment income (loss)		(29,723	)		—			—			(74,273	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(10,049,258	)		(3,718,303	)		(176,537	)		(120,016	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		298,197,082			30,223,064			86,241,983			4,820,493
NET ASSETS	$	3,322,196,391		$	76,586,620		$	296,703,133		$	43,701,841
Shares outstanding, $0.10 par value, 250 million shares authorized		78,998,572						9,867,568
Shares outstanding, $0.0001 par value, 250 million shares authorized					4,717,029						3,338,399
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	42.05		$	16.24		$	30.07		$	13.09

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

173

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2015

	Large Core Growth Fund			Large Cap Value Fund			Large Core Value Fund			Index 500 Fund
ASSETS
Investments at value	$	112,354,168		$	209,190,519		$	202,511,830		$	425,988,271
Cash		—			—			16,899			1,370
Interest, dividends and reclaims receivable		35,358			292,566			392,655			566,180
Receivable for investment securities sold		—			—			—			166,810
Receivable for capital stock sold		—			7,293			2,324,196			60,419
Other assets		2,757			5,117			4,699			10,196
Total Assets		112,392,283			209,495,495			205,250,279			426,793,246
LIABILITIES
Payable for investment securities purchased		—			—			—			153,665
Payable for capital stock redeemed		595,914			1,572,987			2,021,159			8,351,571
Future variation margin payable		—						—			52,219
Payable to investment adviser (See Note 3)		57,604			119,293			114,580			47,514
Payable to the administrator (See Note 3)		42,741			81,012			77,479			162,104
Other liabilities		16,352			30,192			24,958			61,242
Total Liabilities		712,611			1,803,484			2,238,176			8,828,315
NET ASSETS	$	111,679,672		$	207,692,011		$	203,012,103		$	417,964,931
Investments at cost		89,918,046			188,330,378			189,751,885			256,615,390
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	89,517,851		$	188,529,480		$	191,547,306		$	257,106,392
Undistributed net investment income (loss)		—			(1,343,191	)		—			—
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(274,301	)		(354,419	)		(1,295,148	)		(8,510,049	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		22,436,122			20,860,141			12,759,945			169,368,588
NET ASSETS	$	111,679,672		$	207,692,011		$	203,012,103		$	417,964,931
Shares outstanding, $0.10 par value, 250 million shares authorized					9,350,258
Shares outstanding, $0.0001 par value, 250 million shares authorized		6,849,944						13,745,460			25,889,770
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	16.30		$	22.21		$	14.77		$	16.14

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

174

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2015

	Mid Cap Growth Fund			Mid Cap Value Fund			Mid Core Value Fund			SMID Cap Growth Fund
ASSETS
Investments at value	$	111,745,089		$	164,503,087		$	91,123,234		$	55,916,211
Cash		—			—			500			—
Interest, dividends and reclaims receivable		155,964			329,692			194,112			24,328
Receivable for investment securities sold		2,737,675			—			2,727,801			1,058,695
Receivable for capital stock sold		307,623			1,787,334			4,396			349,492
Net unrealized appreciation of forward foreign currency contracts		—			—			6,549			—
Other assets		2,731			4,235			1,965			1,501
Total Assets		114,949,082			166,624,348			94,058,557			57,350,227
LIABILITIES
Call options written, at value		58,460			—			—			—
Payable for investment securities purchased		37,601			—			2,710,793			260,356
Payable for capital stock redeemed		2,975,248			605,180			671,400			1,012,486
Payable to investment adviser (See Note 3)		68,454			77,611			56,083			36,198
Payable to the administrator (See Note 3)		42,366			64,868			35,043			22,057
Net unrealized depreciation of forward foreign currency contracts		—			—			12,693			—
Other liabilities		24,539			27,430			22,611			17,521
Total Liabilities		3,206,668			775,089			3,508,623			1,348,618
NET ASSETS	$	111,742,414		$	165,849,259		$	90,549,934		$	56,001,609
Investments at cost		113,624,031			163,786,928			90,822,422			50,524,155
Call options written, premiums received		(309,166	)		—			—			—
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	113,502,635		$	168,466,815		$	91,117,117		$	51,382,136
Undistributed net investment income (loss)		43,949			(676,896	)		33,704			—
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(175,851	)		(2,656,819	)		(895,401	)		(772,583	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		(1,628,319	)		716,159			294,514			5,392,056
NET ASSETS	$	111,742,414		$	165,849,259		$	90,549,934		$	56,001,609
Shares outstanding, $0.0001 par value, 250 million shares authorized		7,972,465			8,564,529			5,154,949			2,877,734
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	14.02		$	19.36		$	17.57		$	19.46

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

175

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2015

	SMID Cap Value Fund			Small Cap Growth Fund			Small Cap Value Fund			Small Cap Index Fund
ASSETS
Investments at value	$	67,382,490		$	91,894,198		$	226,117,951		$	65,459,742
Cash		—			—			—			3,148
Initial Margin Held by Broker for Open Futures		—			—			—			880
Interest, dividends and reclaims receivable		86,985			25,533			529,772			98,081
Receivable for investment securities sold		—			99,020			376,665			7,668
Receivable for capital stock sold		586,826			170,215			460,219			77,567
Other assets		1,755			2,252			5,594			1,541
Total Assets		68,058,056			92,191,218			227,490,201			65,648,627
LIABILITIES
Payable for investment securities purchased		—			289,857			—			—
Payable for capital stock redeemed		3,351			122,583			82,016			81,824
Future variation margin payable		—			—			—			12,650
Payable to investment adviser (See Note 3)		55,039			58,516			139,717			16,893
Payable to the administrator (See Note 3)		26,577			35,285			88,135			25,221
Foreign currency payable		—			586			—			—
Other liabilities		13,901			18,785			41,767			31,917
Total Liabilities		98,868			525,612			351,635			168,505
NET ASSETS	$	67,959,188		$	91,665,606		$	227,138,566		$	65,480,122
Investments at cost		62,404,273			78,533,095			202,681,323			53,456,915
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	63,202,340		$	78,390,146		$	204,556,951		$	53,814,113
Undistributed net investment income (loss)		—			—			—			(27,197	)
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(221,369	)		(85,570	)		(855,013	)		(335,887	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		4,978,217			13,361,030			23,436,628			12,029,093
NET ASSETS	$	67,959,188		$	91,665,606		$	227,138,566		$	65,480,122
Shares outstanding, $0.10 par value, 250 million shares authorized					3,206,707			8,570,561
Shares outstanding, $0.0001 par value, 250 million shares authorized		3,445,649									3,922,550
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	19.72		$	28.59		$	26.50		$	16.69

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

176

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2015

	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
ASSETS
Investments at value	$	96,913,974		$	376,594,833		$	137,972,503		$	138,856,206
Cash		410,813			239,049			27,698			—
Initial Margin Held by Broker for Open Futures		59,610			—			—			—
Interest, dividends and reclaims receivable		311,372			989,492			291,595			718,918
Receivable for investment securities sold		—			—			4,008,543			382,108
Receivable for capital stock sold		783,283			8,988			10,065,650			2,887
Net unrealized appreciation of forward foreign currency contracts		—			—			19,912			—
Other assets		2,604			9,124			3,496			3,293
Total Assets		98,481,656			377,841,486			152,389,397			139,963,412
LIABILITIES
Payable for investment securities purchased		12,197			131,385			4,082,366			422,594
Payable for capital stock redeemed		230,194			2,030,357			6,150			1,739,613
Payable to investment adviser (See Note 3)		24,954			272,244			139,615			81,532
Payable to the administrator (See Note 3)		37,724			143,596			54,622			51,728
Deferred Indian capital gains tax		—			—			151,980			—
Other liabilities		67,384			88,688			135,425			23,991
Total Liabilities		372,453			2,666,270			4,570,158			2,319,458
NET ASSETS	$	98,109,203		$	375,175,216		$	147,819,239		$	137,643,954
Investments at cost		82,521,342			293,356,335			132,124,627			123,440,404
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	88,148,029		$	307,232,160		$	156,340,265		$	122,319,437
Undistributed net investment income (loss)		(1,084,184	)		(7,684,922	)		(532,251	)		—
Accumulated net realized gain (loss) on investment transactions and foreign exchange		(3,345,790	)		(7,548,225	)		(13,696,690	)		(91,285	)
Net unrealized appreciation (depreciation) in value of investments, futures contracts and foreign currency related items		14,391,148			83,176,203			5,707,915			15,415,802
NET ASSETS	$	98,109,203		$	375,175,216		$	147,819,239		$	137,643,954
Shares outstanding, $0.10 par value, 250 million shares authorized					15,482,198
Shares outstanding, $0.0001 par value, 250 million shares authorized		8,619,007						15,302,612			7,263,987
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	11.38		$	24.23		$	9.66		$	18.95

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

177

Penn Series Funds, Inc.

Statement of Assets and Liabilities

December 31, 2015

	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	60,807,219		$	237,836,907		$	340,762,350		$	101,348,379
Investments of unaffiliated issuers at value		414,104			1,219,518			1,158,550			878,416
Interest, dividends and reclaims receivable		35			96			83			59
Receivable for investment securities sold		1,731,629			6,896,042			8,099,548			2,401,662
Receivable for capital stock sold		652			1,033			382,207			62,569
Other assets		1,536			5,910			8,513			2,545
Total Assets		62,955,175			245,959,506			350,411,251			104,693,630
LIABILITIES
Payable for investment securities purchased		1,678,956			6,905,126			8,065,218			2,532,411
Payable for capital stock redeemed		118,730			9,289			7			11
Payable to investment adviser (See Note 3)		6,281			24,129			33,828			10,417
Payable to the administrator (See Note 3)		23,797			91,987			131,675			39,155
Other liabilities		8,338			21,140			28,819			11,099
Total Liabilities		1,836,102			7,051,671			8,259,547			2,593,093
NET ASSETS	$	61,119,073		$	238,907,835		$	342,151,704		$	102,100,537
Investments of affiliated issuers at cost		44,283,458			171,270,353			255,614,200			79,435,662
Investments of unaffiliated issuers at cost		414,104			1,219,518			1,158,550			878,416
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	45,045,101		$	174,084,145		$	258,453,659		$	80,646,541
Undistributed net investment income (loss)		—			—			—			—
Accumulated net realized gain (loss) on investment transactions		(449,789	)		(1,742,863	)		(1,450,104	)		(458,721	)
Net unrealized appreciation (depreciation) in value of investments		16,523,761			66,566,553			85,148,149			21,912,717
NET ASSETS	$	61,119,073		$	238,907,835		$	342,151,704		$	102,100,537
Shares outstanding, $0.0001 par value, 250 million shares authorized		4,106,989			15,364,840			23,829,582			7,506,253
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	14.88		$	15.55		$	14.36		$	13.60

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

178

Penn Series Funds, Inc.

Statements of Assets and Liabilities

December 31, 2015

	Conservative Allocation Fund
ASSETS
Investments of affiliated issuers at value	$	60,283,457
Investments of unaffiliated issuers at value		919,825
Interest, dividends and reclaims receivable		70
Receivable for investment securities sold		1,173,787
Receivable for capital stock sold		50,792
Other assets		1,504
Total Assets		62,429,435
LIABILITIES
Payable for investment securities purchased		1,174,763
Payable to investment adviser (See Note 3)		6,280
Payable to the administrator (See Note 3)		23,545
Other liabilities		8,279
Total Liabilities		1,212,867
NET ASSETS	$	61,216,568
Investments of affiliated issuers at cost		50,274,236
Investments of unaffiliated issuers at cost		919,825
COMPONENTS OF NET ASSETS:
Paid-in Capital	$	51,485,958
Undistributed net investment income (loss)		—
Accumulated net realized gain (loss) on investment transactions		(278,612	)
Net unrealized appreciation (depreciation) in value of investments		10,009,222
NET ASSETS	$	61,216,568
Shares outstanding, $0.0001 par value, 250 million shares authorized		4,809,219
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE	$	12.73

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

179

Penn Series Funds, Inc.

Statements of Operations

For The Year Ended December 31, 2015

	Money Market Fund			Limited Maturity Bond Fund			Quality Bond Fund			High Yield Bond Fund
INVESTMENT INCOME
Dividends	$	341		$	2,181		$	34,074		$	97,126
Interest		284,798			3,889,600			17,339,209			12,601,270
Foreign tax withheld		—			—			—			(1,609	)
Total Investment Income		285,139			3,891,781			17,373,283			12,696,787
EXPENSES
Investment advisory fees (See Note 3)		387,121			978,741			2,424,872			1,054,001
Administration fees (See Note 3)		175,964			320,078			830,577			282,322
Accounting fees (See Note 3)		78,655			126,693			246,115			114,107
Director fees and expenses		4,801			8,845			22,718			7,781
Custodian fees and expenses		8,225			15,142			39,818			17,709
Pricing fees		10,574			22,394			28,508			58,116
Professional fees		11,565			20,285			55,718			19,399
Printing fees		7,527			13,796			37,678			12,927
Other expenses		37,009			42,055			79,288			69,064
Total Expenses		721,441			1,548,029			3,765,292			1,635,426
Less: Waivers and reimbursement from advisor (See Note 3)		372,994			—			—			—
Less: Waivers and reimbursement from administrator (See Note 3)		75,300			—			—			—
Net Expenses		273,147			1,548,029			3,765,292			1,635,426
Net investment income (loss)		11,992			2,343,752			13,607,991			11,061,361
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		—			579,414			10,225,061			(6,266,501	)
Net realized gain (loss) on futures contracts		—			(324,813	)		453,523			—
Net realized foreign currency exchange gain (loss)		—			—			(265	)		585,927
Change in net unrealized appreciation (depreciation) of investments and foreign currency		—			(650,690	)		(22,650,978	)		(11,129,127	)
Change in net unrealized appreciation (depreciation) of futures contracts		—			(51,250	)		625,860			—
Net Gain (Loss) on Investment Securities and Foreign Currency		—			(447,339	)		(11,346,799	)		(16,809,701	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	11,992		$	1,896,413		$	2,261,192		$	(5,748,340	)
	Flexibly Managed Fund			Balanced Fund			Large Growth Stock Fund			Large Cap Growth Fund
INVESTMENT INCOME
Dividends	$	32,963,206		$	74		$	2,012,400		$	737,296
Interest		32,458,448			2			—			373
Foreign tax withheld		(194,599	)		—			(3,212	)		(30,456	)
Total Investment Income		65,227,055			76			2,009,188			707,213
EXPENSES
Investment advisory fees (See Note 3)		22,558,681			—			2,124,705			304,556
Administration fees (See Note 3)		4,843,826			119,773			446,626			83,061
Accounting fees (See Note 3)		785,844			12,001			168,339			38,762
Director fees and expenses		130,963			3,287			12,048			2,255
Custodian fees and expenses		233,904			5,591			22,032			4,572
Pricing fees		26,963			1,703			6,513			4,753
Professional fees		348,537			8,101			30,616			5,886
Printing fees		222,413			5,486			20,548			4,007
Recaptured administration fees (See Note 3)		—			—			—			3,220
Other expenses		422,212			14,991			81,285			43,139
Total Expenses		29,573,343			170,933			2,912,712			494,211
Less: Waivers and reimbursement from administrator (See Note 3)		—			—			—			1,384
Net Expenses		29,573,343			170,933			2,912,712			492,827
Net investment income		35,653,712			(170,857	)		(903,524	)		214,386
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on affiliated investment transactions		—			3,338,369			—			—
Net realized gains (losses) on unaffiliated investment transactions		291,569,245			—			32,485,479			4,946,662
Net realized gain (loss) on written options		(17,244	)		—			—			—
Net realized foreign currency exchange gain (loss)		(610,362	)		—			(4,022	)		1,211
Change in net unrealized appreciation (depreciation) of affiliated investments		—			(2,623,599	)		—			—
Change in net unrealized appreciation (depreciation) of unaffiliated investments and foreign currency		(180,003,900	)		—			(2,752,058	)		(5,748,356	)
Change in net unrealized appreciation (depreciation) of written options		8,462,912			—			—			—
Net Gain (Loss) on Investment Securities and Foreign Currency		119,400,651			714,770			29,729,399			(800,483	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	155,054,363		$	543,913		$	28,825,875		$	(586,097	)

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, 2015

	Large Core Growth Fund			Large Cap Value Fund			Large Core Value Fund			Index 500 Fund
INVESTMENT INCOME
Dividends	$	820,279		$	4,725,580		$	4,686,229		$	9,042,830
Interest		—			—			—			29
Foreign tax withheld		—			(75,794	)		(21,102	)		—
Total Investment Income		820,279			4,649,786			4,665,127			9,042,859
EXPENSES
Investment advisory fees (See Note 3)		732,529			1,473,796			1,294,822			571,037
Administration fees (See Note 3)		183,132			333,184			291,882			657,546
Accounting fees (See Note 3)		81,044			131,061			117,294			211,509
Director fees and expenses		5,019			9,107			8,010			17,948
Custodian fees and expenses		8,623			15,578			13,695			30,701
Pricing fees		2,725			5,627			2,597			10,281
Professional fees		12,567			22,618			19,767			45,150
Printing fees		8,478			15,544			13,168			30,741
Other expenses		29,213			35,642			38,112			102,471
Total Expenses		1,063,330			2,042,157			1,799,347			1,677,384
Net investment income (loss)		(243,051	)		2,607,629			2,865,780			7,365,475
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		10,304,491			10,201,080			17,515,483			10,334,116
Net realized gain (loss) on futures contracts		—			—			—			336,718
Change in net unrealized appreciation (depreciation) of investments and foreign currency		(8,242,993	)		(22,143,663	)		(20,328,266	)		(13,632,674	)
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			(351,802	)
Net Gain (Loss) on Investment Securities and Foreign Currency		2,061,498			(11,942,583	)		(2,812,783	)		(3,313,642	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,818,447		$	(9,334,954	)	$	52,997		$	4,051,833
	Mid Cap Growth Fund			Mid Cap Value Fund			Mid Core Value Fund			SMID Cap Growth Fund
INVESTMENT INCOME
Dividends	$	1,215,402		$	3,180,645		$	1,902,322		$	218,549
Interest		—			—			48			—
Foreign tax withheld		—			—			(6,127	)		—
Total Investment Income		1,215,402			3,180,645			1,896,243			218,549
EXPENSES
Investment advisory fees (See Note 3)		870,656			1,007,225			641,004			454,339
Administration fees (See Note 3)		186,569			274,698			133,542			90,868
Accounting fees (See Note 3)		82,190			111,566			62,320			42,405
Director fees and expenses		5,124			7,523			3,684			2,468
Custodian fees and expenses		8,735			12,868			7,011			4,274
Pricing fees		4,172			3,661			5,025			2,987
Professional fees		41,402			19,058			9,626			5,987
Printing fees		8,767			12,958			6,312			4,064
Other expenses		37,834			29,634			84,739			38,632
Total Expenses		1,245,449			1,479,191			953,263			646,024
Less: Waivers and reimbursement from advisor (See Note 3)		1,656			—			—			—
Net Expenses		1,243,793			1,479,191			953,263			646,024
Net investment income		(28,391	)		1,701,454			942,980			(427,475	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on investment transactions		5,797,189			26,296,013			7,036,472			4,385,704
Net realized gain (loss) on written options		118,982			—			—			—
Net realized foreign currency exchange gain (loss)		(658	)		—			436,520			—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		(12,976,960	)		(42,348,949	)		(9,226,776	)		(5,703,654	)
Change in net unrealized appreciation (depreciation) of written options		233,582			—			—			—
Net Gain (Loss) on Investment Securities and Foreign Currency		(6,827,865	)		(16,052,936	)		(1,753,784	)		(1,317,950	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(6,856,256	)	$	(14,351,482	)	$	(810,804	)	$	(1,745,425	)

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, 2015

	SMID Cap Value Fund			Small Cap Growth Fund			Small Cap Value Fund			Small Cap Index Fund
INVESTMENT INCOME
Dividends	$	902,657		$	557,379		$	3,853,223		$	908,646
Interest		—			—			—			89
Foreign tax withheld		—			(5,062	)		(5,112	)		(393	)
Total Investment Income		902,657			552,317			3,848,111			908,342
EXPENSES
Investment advisory fees (See Note 3)		707,988			740,834			1,718,571			202,860
Administration fees (See Note 3)		111,787			150,714			360,229			101,430
Accounting fees (See Note 3)		52,167			69,731			140,076			47,334
Director fees and expenses		3,045			4,097			9,862			2,765
Custodian fees and expenses		5,238			7,053			16,869			4,741
Pricing fees		3,164			5,288			6,500			29,668
Professional fees		7,923			10,651			24,659			6,788
Printing fees		5,317			7,276			16,631			4,680
Other expenses		22,669			37,702			75,941			64,526
Total Expenses		919,298			1,033,346			2,369,338			464,792
Net investment income (loss)		(16,641	)		(481,029	)		1,478,773			443,550
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		5,289,080			8,505,456			13,550,651			3,739,682
Net realized gain (loss) on futures contracts		—			—			—			(130,343	)
Net realized foreign currency exchange gain (loss)		—			(674	)		—			—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		(9,717,509	)		(7,010,917	)		(27,740,785	)		(7,476,015	)
Change in net unrealized appreciation (depreciation) of futures contracts		—			—			—			31,132
Net Gain (Loss) on Investment Securities and Foreign Currency		(4,428,429	)		1,493,865			(14,190,134	)		(3,835,544	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(4,445,070	)	$	1,012,836		$	(12,711,361	)	$	(3,391,994	)
	Developed International Index Fund			International Equity Fund			Emerging Markets Equity Fund			Real Estate Securities Fund
INVESTMENT INCOME
Dividends	$	3,201,168		$	9,445,214		$	3,489,060		$	3,308,711
Interest		883			—			—			—
Foreign tax withheld		(247,172	)		(511,335	)		(449,283	)		—
Total Investment Income		2,954,879			8,933,879			3,039,777			3,308,711
EXPENSES
Investment advisory fees (See Note 3)		311,114			3,288,962			1,815,027			969,429
Administration fees (See Note 3)		155,557			579,207			230,724			207,735
Accounting fees (See Note 3)		82,118			251,602			112,290			89,245
Director fees and expenses		4,239			15,810			6,358			5,755
Custodian fees and expenses		26,022			124,675			96,243			9,736
Pricing fees		92,699			12,891			21,933			3,280
Professional fees		9,970			54,857			57,406			14,722
Printing fees		7,017			26,314			10,585			9,569
Recaptured advisory fees (See Note 3)		—			—			82,846			—
Other expenses		171,696			71,846			239,897			36,651
Total Expenses		860,432			4,426,164			2,673,309			1,346,122
Net investment income		2,094,447			4,507,715			366,468			1,962,589
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gains (losses) on investment transactions		(274,176	)		(668,375	)		(7,002,030	)		13,470,692
Net realized gain (loss) on futures contracts		(29,042	)		—			—			—
Net realized foreign currency exchange gain (loss)		(48,768	)		(461,980	)		85,163			—
Change in net unrealized appreciation (depreciation) of investments and foreign currency		(3,211,981	)		10,112,442			(9,977,031	)		(8,417,398	)
Change in net unrealized appreciation (depreciation) of futures contracts		52,511			—			—			—
Net Gain (Loss) on Investment Securities and Foreign Currency		(3,511,456	)		8,982,087			(16,893,898	)		5,053,294
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(1,417,009	)	$	13,489,802		$	(16,527,430	)	$	7,015,883

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, 2015

	Aggressive Allocation Fund			Moderately Aggressive Allocation Fund			Moderate Allocation Fund			Moderately Conservative Allocation Fund
INVESTMENT INCOME
Dividends	$	85		$	276		$	303		$	183
Dividends from affiliated funds		—			—			540			162
Total Investment Income		85			276			843			345
EXPENSES
Investment advisory fees (See Note 3)		77,347			295,890			414,602			129,263
Administration fees (See Note 3)		96,684			376,214			539,577			161,579
Accounting fees (See Note 3)		12,001			25,081			35,972			12,001
Director fees and expenses		2,644			10,284			14,770			4,423
Custodian fees and expenses		4,521			17,561			25,187			7,542
Pricing fees		1,986			2,033			2,040			1,999
Professional fees		6,620			25,441			36,156			10,568
Printing fees		4,509			17,382			24,704			7,286
Other expenses		13,213			34,011			46,556			17,978
Total Expenses		219,525			803,897			1,139,564			352,639
Net investment loss		(219,440	)		(803,621	)		(1,138,721	)		(352,294	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on affiliated investment transactions		4,822,664			17,402,186			20,563,227			5,545,786
Change in net unrealized appreciation (depreciation) of affiliated investments		(5,588,441	)		(19,421,099	)		(21,152,431	)		(5,307,141	)
Net Gain (Loss) on Investment Securities		(765,777	)		(2,018,913	)		(589,204	)		238,645
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(985,217	)	$	(2,822,534	)	$	(1,727,925	)	$	(113,649	)
	Conservative Allocation Fund
INVESTMENT INCOME
Dividends	$	257
Dividends from affiliated funds		279
Total Investment Income		536
EXPENSES
Investment advisory fees (See Note 3)		75,769
Administration fees (See Note 3)		94,711
Accounting fees (See Note 3)		12,001
Director fees and expenses		2,613
Custodian fees and expenses		4,421
Pricing fees		1,877
Professional fees		6,158
Printing fees		4,183
Other expenses		13,183
Total Expenses		214,916
Net investment loss		(214,380	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT SECURITIES AND FOREIGN CURRENCY
Net realized gain (loss) on affiliated investment transactions		3,028,683
Change in net unrealized appreciation (depreciation) of affiliated investments		(2,719,124	)
Net Gain (Loss) on Investment Securities		309,559
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	95,179

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

183

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Money Market Fund						Limited Maturity Bond Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	11,992		$	13,590		$	2,655,082		$	1,604,138
Net realized gains (loss) from investment transactions		—			—			268,084			870,220
Net realized gains (loss) on futures contracts		—			—			(324,813	)		(322,415	)
Net change in unrealized appreciation (depreciation) of investments		—			—			(650,690	)		(1,814,906	)
Net change in unrealized appreciation (depreciation) of future contracts		—			—			(51,250	)		(23,437	)
Net Increase (Decrease) in Net Assets Resulting from Operations		11,992			13,590			1,896,413			313,600
Distributions from:
Net investment income		(11,728	)		(13,590	)		—			—
Total Distributions		(11,728	)		(13,590	)		—			—
Capital Share Transactions:
Shares issued		88,029,875			112,210,094			36,008,080			45,621,027
Shares issued in lieu of cash distributions		11,728			13,593			—			—
Shares redeemed		(87,127,948	)		(104,373,265	)		(70,119,812	)		(67,540,093	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		913,655			7,850,422			(34,111,732	)		(21,919,066	)
Total Increase (Decrease)		913,919			7,850,422			(32,215,319	)		(21,605,466	)
Net Assets:
Beginning of period		132,731,438			124,881,016			222,061,690			243,667,156
End of Period	$	133,645,357		$	132,731,438		$	189,846,371		$	222,061,690
Undistributed net investment income (loss)	$	264		$	—		$	—		$	—
Shares Issued and Redeemed:
Shares issued		88,029,875			112,210,094			3,108,690			3,961,890
Shares issued in lieu of cash distributions		11,728			13,593			—			—
Shares redeemed		(87,127,948	)		(104,373,265	)		(6,045,850	)		(5,864,076	)
		913,655			7,850,422			(2,937,160	)		(1,902,186	)
	Quality Bond Fund						High Yield Bond Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	13,607,991		$	10,704,702		$	11,061,361		$	10,757,499
Net realized gains (loss) from investment transactions		10,225,061			11,589,711			(6,266,501	)		1,170,142
Net realized gains (loss) on futures contracts		453,523			(1,683,455	)		—			—
Net realized foreign exchange gain (loss)		(265	)		78,966			585,927			1,288,588
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(22,025,118	)		6,906,990			(11,129,127	)		(9,843,153	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,261,192			27,596,914			(5,748,340	)		3,373,076
Capital Share Transactions:
Shares issued		51,580,293			64,744,414			15,583,960			32,275,457
Shares redeemed		(78,782,330	)		(79,484,028	)		(31,306,417	)		(29,932,861	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(27,202,037	)		(14,739,614	)		(15,722,457	)		2,342,596
Total Increase (Decrease)		(24,940,845	)		12,857,300			(21,470,797	)		5,715,672
Net Assets:
Beginning of period		559,615,966			546,758,666			194,503,607			188,787,935
End of Period	$	534,675,121		$	559,615,966		$	173,032,810		$	194,503,607
Undistributed net investment income (loss)	$	—		$	—		$	(272,749	)	$	(369,756	)
Shares Issued and Redeemed:
Shares issued		3,814,695			4,908,765			1,408,093			2,905,150
Shares issued in lieu of cash distributions		—			—			—			—
Shares redeemed		(5,820,984	)		(6,050,584	)		(2,810,375	)		(2,702,689	)
		(2,006,289	)		(1,141,819	)		(1,402,282	)		202,461

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

184

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Flexibly Managed Fund						Balanced Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	35,653,712		$	33,576,029		$	(170,857	)	$	(162,810	)
Net realized gains (loss) from investment transactions		291,569,245			340,266,716			3,338,369			1,733,462
Net realized gains (loss) on written options		(17,244	)		335,838			—			—
Net realized foreign exchange gain (loss)		(610,362	)		191,162			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(180,003,900	)		(43,325,431	)		(2,623,599	)		5,805,255
Net change in unrealized appreciation (depreciation) of written options		8,462,912			(2,745,756	)		—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		155,054,363			328,298,558			543,913			7,375,907
Capital Share Transactions:
Shares issued		216,314,515			179,219,743			3,697,483			6,157,778
Shares redeemed		(123,360,667	)		(118,834,503	)		(9,448,421	)		(10,382,073	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		92,953,848			60,385,240			(5,750,938	)		(4,224,295	)
Total Increase (Decrease)		248,008,211			388,683,798			(5,207,025	)		3,151,612
Net Assets:
Beginning of period		3,074,188,180			2,685,504,382			81,793,645			78,642,033
End of Period	$	3,322,196,391		$	3,074,188,180		$	76,586,620		$	81,793,645
Undistributed net investment income (loss)	$	(29,723	)	$	(469,648	)	$	—		$	—
Shares Issued and Redeemed:
Shares issued		5,210,741			4,743,651			227,681			400,671
Shares redeemed		(2,982,711	)		(3,162,331	)		(581,655	)		(676,995	)
		2,228,030			1,581,320			(353,974	)		(276,324	)
	Large Growth Stock Fund						Large Cap Growth Fund
	For the year ended 12/31/15			For the year ended 12/31/14			For the year ended 12/31/15			For the year ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(903,524	)	$	(687,956	)	$	214,386		$	260,778
Net realized gains (loss) from investment transactions		32,485,479			38,003,401			4,946,662			2,935,635
Net realized foreign exchange gain (loss)		(4,022	)		(1,868	)		1,211			(389	)
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(2,752,058	)		(15,403,481	)		(5,748,356	)		2,858,415
Net Increase (Decrease) in Net Assets Resulting from Operations		28,825,875			21,910,096			(586,097	)		6,054,439
Capital Share Transactions:
Shares issued		21,826,727			22,569,243			5,105,548			5,813,560
Shares redeemed		(34,631,243	)		(26,155,315	)		(18,480,718	)		(8,966,768	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(12,804,516	)		(3,586,072	)		(13,375,170	)		(3,153,208	)
Total Increase (Decrease)		16,021,359			18,324,024			(13,961,267	)		2,901,231
Net Assets:
Beginning of period		280,681,774			262,357,750			57,663,108			54,761,877
End of Period	$	296,703,133		$	280,681,774		$	43,701,841		$	57,663,108
Undistributed net investment income (loss)	$	—		$	—		$	(74,273	)	$	(86,940	)
Shares Issued and Redeemed:
Shares issued		744,580			880,266			385,521			479,708
Shares redeemed		(1,191,486	)		(1,015,873	)		(1,445,763	)		(731,398	)
		(446,906	)		(135,607	)		(1,060,242	)		(251,690	)

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

185

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Large Core Growth Fund						Large Cap Value Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(243,051	)	$	(241,472	)	$	2,607,629		$	2,979,083
Net realized gains (loss) from investment transactions		10,304,491			21,846,006			10,201,080			11,930,695
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(8,242,993	)		(12,283,083	)		(22,143,663	)		9,128,467
Net Increase (Decrease) in Net Assets Resulting from Operations		1,818,447			9,321,451			(9,334,954	)		24,038,245
Capital Share Transactions:
Shares issued		3,033,469			4,654,935			15,700,343			14,616,590
Shares redeemed		(19,152,485	)		(15,752,654	)		(27,753,537	)		(26,925,727	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(16,119,016	)		(11,097,719	)		(12,053,194	)		(12,309,137	)
Total Increase (Decrease)		(14,300,569	)		(1,776,268	)		(21,388,148	)		11,729,108
Net Assets:
Beginning of period		125,980,241			127,756,509			229,080,159			217,351,051
End of Period	$	111,679,672		$	125,980,241		$	207,692,011		$	229,080,159
Undistributed net investment income (loss)	$	—		$	—		$	(1,343,191	)	$	(1,343,191	)
Shares Issued and Redeemed:
Shares issued		186,621			310,870			696,968			675,743
Shares redeemed		(1,193,376	)		(1,040,372	)		(1,210,583	)		(1,233,574	)
		(1,006,755	)		(729,502	)		(513,615	)		(557,831	)
	Large Core Value Fund						Index 500 Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	2,865,780		$	2,513,020		$	7,365,475		$	6,809,218
Net realized gains (loss) from investment transactions		17,515,483			37,401,939			10,334,116			7,296,570
Net realized gains (loss) on futures contracts		—			—			336,718			843,709
Net change in unrealized appreciation (depreciation) of investments		(20,328,266	)		(19,805,307	)		(13,632,674	)		37,489,351
Net change in unrealized appreciation (depreciation) of futures contracts		—			—			(351,802	)		339,329
Net Increase (Decrease) in Net Assets Resulting from Operations		52,997			20,109,652			4,051,833			52,778,177
Capital Share Transactions:
Shares issued		36,293,794			11,715,588			27,836,558			36,130,266
Shares redeemed		(26,030,180	)		(24,760,075	)		(56,758,285	)		(44,610,829	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		10,263,614			(13,044,487	)		(28,921,727	)		(8,480,563	)
Total Increase (Decrease)		10,316,611			7,065,165			(24,869,894	)		44,297,614
Net Assets:
Beginning of period		192,695,492			185,630,327			442,834,825			398,537,211
End of Period	$	203,012,103		$	192,695,492		$	417,964,931		$	442,834,825
Undistributed net investment income (loss)	$	—		$	76,589		$	—		$	(20,358	)
Shares Issued and Redeemed:
Shares issued		2,557,882			825,238			1,732,802			2,435,987
Shares redeemed		(1,753,261	)		(1,756,085	)		(3,553,537	)		(2,966,343	)
		804,621			(930,847	)		(1,820,735	)		(530,356	)

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

186

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Mid Cap Growth Fund						Mid Cap Value Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(28,391	)	$	(172,828	)	$	1,701,454		$	1,371,542
Net realized gains (loss) from investment transactions		5,797,189			29,823,567			26,296,013			15,268,055
Net realized gains (loss) on written options		118,982			(445,823	)		—			—
Net realized foreign exchange gain (loss)		(658	)		(138	)		—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(12,976,960	)		(18,030,112	)		(42,348,949	)		6,504,814
Net change in unrealized appreciation (depreciation) of written options		233,582			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		(6,856,256	)		11,174,666			(14,351,482	)		23,144,411
Capital Share Transactions:
Shares issued		8,045,737			14,891,737			16,099,583			11,388,988
Shares redeemed		(17,933,265	)		(18,142,876	)		(21,191,909	)		(22,234,434	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(9,887,528	)		(3,251,139	)		(5,092,326	)		(10,845,446	)
Total Increase (Decrease)		(16,743,784	)		7,923,527			(19,443,808	)		12,298,965
Net Assets:
Beginning of period		128,486,198			120,562,671			185,293,067			172,994,102
End of Period	$	111,742,414		$	128,486,198		$	165,849,259		$	185,293,067
Undistributed net investment income (loss)	$	43,949		$	35,627		$	(676,896	)	$	(840,966	)
Shares Issued and Redeemed:
Shares issued		554,269			1,047,530			778,338			592,926
Shares redeemed		(1,219,379	)		(1,279,845	)		(1,021,668	)		(1,130,517	)
		(665,110	)		(232,315	)		(243,330	)		(537,591	)
	Mid Core Value Fund						SMID Cap Growth Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	942,980		$	935,631		$	(427,475	)	$	(511,199	)
Net realized gains (loss) from investment transactions		7,036,472			7,526,900			4,385,704			6,827,345
Net realized foreign exchange gain (loss)		436,520			307,871			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(9,226,776	)		3,304,421			(5,703,654	)		(6,054,448	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(810,804	)		12,074,823			(1,745,425	)		261,698
Capital Share Transactions:
Shares issued		18,173,946			17,581,649			18,476,093			14,707,294
Shares redeemed		(17,042,212	)		(11,301,682	)		(16,331,135	)		(22,993,475	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		1,131,734			6,279,967			2,144,958			(8,286,181	)
Total Increase (Decrease)		320,930			18,354,790			399,533			(8,024,483	)
Net Assets:
Beginning of period		90,229,004			71,874,214			55,602,076			63,626,559
End of Period	$	90,549,934		$	90,229,004		$	56,001,609		$	55,602,076
Undistributed net investment income (loss)	$	33,704		$	24,509		$	—		$	—
Shares Issued and Redeemed:
Shares issued		1,057,402			1,053,736			880,485			764,438
Shares redeemed		(959,286	)		(686,372	)		(816,373	)		(1,190,875	)
		98,116			367,364			64,112			(426,437	)

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

187

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	SMID Cap Value Fund						Small Cap Growth Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(16,641	)	$	164,375		$	(481,029	)	$	(374,823	)
Net realized gains (loss) from investment transactions		5,289,080			7,972,692			8,505,456			5,629,216
Net realized foreign exchange gain (loss)		—			—			(674	)		2,730
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(9,717,509	)		(1,947,849	)		(7,010,917	)		1,729,319
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,445,070	)		6,189,218			1,012,836			6,986,442
Capital Share Transactions:
Shares issued		10,634,347			15,130,700			10,002,130			19,198,108
Shares redeemed		(12,136,270	)		(10,957,501	)		(22,027,172	)		(13,045,724	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(1,501,923	)		4,173,199			(12,025,042	)		6,152,384
Total Increase (Decrease)		(5,946,993	)		10,362,417			(11,012,206	)		13,138,826
Net Assets:
Beginning of period		73,906,181			63,543,764			102,677,812			89,538,986
End of Period	$	67,959,188		$	73,906,181		$	91,665,606		$	102,677,812
Undistributed net investment income (loss)	$	—		$	—		$	—		$	9,930
Shares Issued and Redeemed:
Shares issued		509,005			766,363			339,948			712,727
Shares redeemed		(597,177	)		(552,938	)		(740,200	)		(494,815	)
		(88,172	)		213,425			(400,252	)		217,912
	Small Cap Value Fund						Small Cap Index Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	1,478,773		$	1,499,005		$	443,550		$	402,087
Net realized gains (loss) from investment transactions		13,550,651			26,230,747			3,739,682			3,535,773
Net realized gains (loss) on futures contracts		—			—			(130,343	)		68,644
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(27,740,785	)		(10,946,357	)		(7,476,015	)		(1,132,942	)
Net change in unrealized appreciation (depreciation) of future contracts		—			—			31,132			(28,446	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(12,711,361	)		16,783,395			(3,391,994	)		2,845,116
Capital Share Transactions:
Shares issued		17,861,045			18,418,878			7,946,828			13,342,287
Shares redeemed		(24,138,080	)		(27,846,882	)		(5,732,698	)		(14,389,640	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(6,277,035	)		(9,428,004	)		2,214,130			(1,047,353	)
Total Increase (Decrease)		(18,988,396	)		7,355,391			(1,177,864	)		1,797,763
Net Assets:
Beginning of period		246,126,962			238,771,571			66,657,986			64,860,223
End of Period	$	227,138,566		$	246,126,962		$	65,480,122		$	66,657,986
Undistributed net investment income (loss)	$	—		$	—		$	(27,197	)	$	(8,410	)
Shares Issued and Redeemed:
Shares issued		661,526			697,324			458,812			802,724
Shares redeemed		(872,806	)		(1,043,954	)		(326,348	)		(855,991	)
		(211,280	)		(346,630	)		132,464			(53,267	)

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

188

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Developed International Index Fund						International Equity Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	2,094,447		$	2,616,716		$	4,507,715		$	4,424,500
Net realized gains (loss) from investment transactions		(274,176	)		(713,770	)		(668,375	)		16,064,701
Net realized gains (loss) on futures contracts		(29,042	)		57,250			—			—
Net realized foreign exchange gain (loss)		(48,768	)		(50,638	)		(461,980	)		(442,883	)
Net change in unrealized appreciation (depreciation) of investments foreign currency		(3,211,981	)		(7,995,123	)		10,112,442			(8,483,026	)
Net change in unrealized appreciation (depreciation) of future contracts		52,511			(130,031	)		—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,417,009	)		(6,215,596	)		13,489,802			11,563,292
Capital Share Transactions:
Shares issued		12,943,251			21,421,254			19,618,564			30,353,335
Shares redeemed		(14,927,281	)		(16,928,155	)		(38,831,644	)		(39,206,826	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(1,984,030	)		4,493,099			(19,213,080	)		(8,853,491	)
Total Increase (Decrease)		(3,401,039	)		(1,722,497	)		(5,723,278	)		2,709,801
Net Assets:
Beginning of period		101,510,242			103,232,739			380,898,494			378,188,693
End of Period	$	98,109,203		$	101,510,242		$	375,175,216		$	380,898,494
Undistributed net investment income (loss)	$	(1,084,184	)	$	(1,014,855	)	$	(7,684,922	)	$	(7,657,472	)
Shares Issued and Redeemed:
Shares issued		1,090,834			1,771,528			818,745			1,292,836
Shares redeemed		(1,265,039	)		(1,380,264	)		(1,618,252	)		(1,655,055	)
		(174,205	)		391,264			(799,507	)		(362,219	)
	Emerging Markets Equity Fund						Real Estate Securities Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	366,468		$	304,466		$	1,962,589		$	1,813,404
Net realized gains (loss) from investment transactions		(7,002,030	)		1,914,161			13,470,692			9,971,688
Net realized foreign exchange gain (loss)		85,163			283,403			—			—
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(9,977,031	)		(10,252,484	)		(8,417,398	)		21,550,613
Net Increase (Decrease) in Net Assets Resulting from Operations		(16,527,430	)		(7,750,454	)		7,015,883			33,335,705
Capital Share Transactions:
Shares issued		23,548,567			20,116,546			15,495,865			14,877,565
Shares redeemed		(16,229,303	)		(18,517,520	)		(21,728,647	)		(25,642,611	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		7,319,264			1,599,026			(6,232,782	)		(10,765,046	)
Total Increase (Decrease)		(9,208,166	)		(6,151,428	)		783,101			22,570,659
Net Assets:
Beginning of period		157,027,405			163,178,833			136,860,853			114,290,194
End of Period	$	147,819,239		$	157,027,405		$	137,643,954		$	136,860,853
Undistributed net investment income (loss)	$	(532,251	)	$	(551,690	)	$	—		$	—
Shares Issued and Redeemed:
Shares issued		2,346,437			1,781,761			859,332			929,018
Shares redeemed		(1,527,572	)		(1,617,880	)		(1,194,354	)		(1,595,302	)
		818,865			163,881			(335,022	)		(666,284	)

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

189

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Aggressive Allocation Fund						Moderately Aggressive Allocation Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(219,440	)	$	(204,081	)	$	(803,621	)	$	(772,032	)
Net realized gains (loss) from investment transactions		4,822,664			912,874			17,402,186			3,441,261
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(5,588,441	)		3,304,304			(19,421,099	)		12,349,357
Net Increase (Decrease) in Net Assets Resulting from Operations		(985,217	)		4,013,097			(2,822,534	)		15,018,586
Capital Share Transactions:
Shares issued		6,891,553			10,098,446			13,775,523			25,123,177
Shares redeemed		(9,291,819	)		(6,486,215	)		(22,446,770	)		(20,925,530	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(2,400,266	)		3,612,231			(8,671,247	)		4,197,647
Total Increase (Decrease)		(3,385,483	)		7,625,328			(11,493,781	)		19,216,233
Net Assets:
Beginning of period		64,504,556			56,879,228			250,401,616			231,185,383
End of Period	$	61,119,073		$	64,504,556		$	238,907,835		$	250,401,616
Undistributed net investment income (loss)	$	—		$	—		$	—		$	—
Shares Issued and Redeemed:
Shares issued		448,753			692,274			864,219			1,660,078
Shares redeemed		(607,727	)		(443,356	)		(1,413,845	)		(1,370,185	)
		(158,974	)		248,918			(549,626	)		289,893
	Moderate Allocation Fund						Moderately Conservative Allocation Fund
	Year Ended 12/31/15			Year Ended 12/31/14			Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(1,138,721	)	$	(1,131,190	)	$	(352,294	)	$	(356,665	)
Net realized gains (loss) from investment transactions		20,563,227			6,721,209			5,545,786			3,086,664
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(21,152,431	)		13,918,874			(5,307,141	)		2,798,243
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,727,925	)		19,508,893			(113,649	)		5,528,242
Capital Share Transactions:
Shares issued		12,043,800			22,589,465			12,026,453			10,959,713
Shares redeemed		(32,208,260	)		(28,218,510	)		(17,481,509	)		(20,271,176	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(20,164,460	)		(5,629,045	)		(5,455,056	)		(9,311,463	)
Total Increase (Decrease)		(21,892,385	)		13,879,848			(5,568,705	)		(3,783,221	)
Net Assets:
Beginning of period		364,044,089			350,164,241			107,669,242			111,452,463
End of Period	$	342,151,704		$	364,044,089		$	102,100,537		$	107,669,242
Undistributed net investment income (loss)	$	—		$	—		$	—		$	—
Shares Issued and Redeemed:
Shares issued		820,440			1,612,172			871,423			824,976
Shares redeemed		(2,205,630	)		(2,007,711	)		(1,266,079	)		(1,512,162	)
		(1,385,190	)		(395,539	)		(394,656	)		(687,186	)

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

190

Penn Series Funds, Inc.

Statements of Changes in Net Assets

	Conservative Allocation Fund
	Year Ended 12/31/15			Year Ended 12/31/14
Increase (Decrease) in Net Assets
Operations:
Net investment loss	$	(214,380	)	$	(226,472	)
Net realized gains (loss) from investment transactions		3,028,683			907,517
Net change in unrealized appreciation (depreciation) of investments, futures contracts and foreign currency		(2,719,124	)		1,841,534
Net Increase (Decrease) in Net Assets Resulting from Operations		95,179			2,522,579
Capital Share Transactions:
Shares issued		8,503,642			13,239,590
Shares redeemed		(12,565,119	)		(18,764,183	)
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(4,061,477	)		(5,524,593	)
Total Increase (Decrease)		(3,966,298	)		(3,002,014	)
Net Assets:
Beginning of period		65,182,866			68,184,880
End of Period	$	61,216,568		$	65,182,866
Undistributed net investment income (loss)	$	—		$	—
Shares Issued and Redeemed:
Shares issued		663,655			1,061,522
Shares redeemed		(978,878	)		(1,497,478	)
		(315,223	)		(435,956	)

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

191

Penn Series Funds, Inc.

Financial Highlights

MONEY MARKET FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income from investment operations:
Net investment income (loss) 2		—	(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%			0.01%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	133,645		$	132,731		$	124,881		$	141,725		$	154,213
Ratio of net expenses to average net assets 3		0.23%			0.12%			0.16%			0.22%			0.22%
Ratio of total expenses to average net assets 4		0.61%			0.57%			0.48%			0.49%			0.49%
Ratio of net investment income (loss) to average net assets 3		0.01%			0.01%			0.01%			0.01%			0.01%
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 net investment income (loss) per share was calculated using the average shares outstanding method. 3     The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown. 4    The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown. (a)  Distributions were less than one penny per share.
LIMITED MATURITY BOND FUND For a share outstanding throughout each period
	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	11.50		$	11.48		$	11.49		$	11.42		$	11.17
Income from investment operations:
Net investment income (loss) 2		0.13			0.08			0.05			0.09			0.13
Net realized and unrealized gain (loss) on investment transactions		(0.04	)		(0.06	)		(0.06	)		(0.02	)		0.12
Total from investment operations		0.09			0.02			(0.01	)		0.07			0.25
Net asset value, end of period	$	11.59		$	11.50		$	11.48		$	11.49		$	11.42
Total return 1		0.78%			0.17%			(0.09%	)		0.61%			2.24%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	189,846		$	222,062		$	243,667		$	202,385		$	174,290
Ratio of total expenses to average net assets		0.73%			0.67%			0.57%			0.57%			0.58%
Ratio of net investment income (loss) to average net assets		1.10%			0.67%			0.60%			0.81%			1.14%
Portfolio turnover rate		127%			82%			50%			31%			50%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

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

192

Penn Series Funds, Inc.

Financial Highlights

QUALITY BOND FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012		2011
Net asset value, beginning of period	$	13.40		$	12.75		$	13.14		$	12.73	$	11.56
Income from investment operations:
Net investment income (loss) 2		0.33			0.26			0.25			0.27		0.32
Net realized and unrealized gain (loss) on investment transactions		(0.28	)		0.39			(0.64	)		0.14		0.85
Total from investment operations		0.05			0.65			(0.39	)		0.41		1.17
Net asset value, end of period	$	13.45		$	13.40		$	12.75		$	13.14	$	12.73
Total return 1		0.37%			5.10%			(2.97%	)		3.22%		10.12%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	534,675		$	559,616		$	546,759		$	568,400	$	477,606
Ratio of total expenses to average net assets		0.68%			0.64%			0.56%			0.56%		0.57%
Ratio of net investment income (loss) to average net assets		2.46%			1.95%			1.91%			2.06%		2.62%
Portfolio turnover rate		131%			135%			47%			32%		44%
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 net investment income (loss) per share was calculated using the average shares outstanding method.
HIGH YIELD BOND FUND For a share outstanding throughout each period
	Year Ended December 31,
	2015			2014			2013			2012		2011
Net asset value, beginning of period	$	10.98		$	10.78		$	9.99		$	8.72	$	8.46
Income (loss) from investment operations:
Net investment income (loss) 2		0.66			0.62			0.62			0.61		0.62
Net realized and unrealized gain (loss) on investment transactions		(1.03	)		(0.42	)		0.17			0.66		(0.36	)
Total from investment operations		(0.37	)		0.20			0.79			1.27		0.26
Net asset value, end of period	$	10.61		$	10.98		$	10.78		$	9.99	$	8.72
Total return 1		(3.37%	)		1.86%			7.91%			14.56%		3.07%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	173,033		$	194,504		$	188,788		$	179,720	$	141,290
Ratio of total expenses to average net assets		0.87%			0.85%			0.82%			0.82%		0.83%
Ratio of net investment income (loss) to average net assets		5.88%			5.58%			5.96%			6.52%		7.16%
Portfolio turnover rate		72%			56%			68%			69%		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. Total returns may reflect adjustments to conform with generally accepted accounting principles.

²  The net investment income (loss) per share was calculated using the average shares outstanding method.

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

193

Penn Series Funds, Inc.

Financial Highlights

FLEXIBLY MANAGED FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015		2014		2013		2012		2011
Net asset value, beginning of period	$	40.04	$	35.72	$	29.22	$	25.46	$	24.71
Income (loss) from investment operations:
Net investment income (loss) 2		0.46		0.45		0.34		0.44		0.40
Net realized and unrealized gain (loss) on investment transactions		1.55		3.87		6.16		3.32		0.35
Total from investment operations		2.01		4.32		6.50		3.76		0.75
Net asset value, end of period	$	42.05	$	40.04	$	35.72	$	29.22	$	25.46
Total return 1		5.02%		12.09%		22.25%		14.77%		3.04%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	3,322,196	$	3,074,188	$	2,685,504	$	2,010,412	$	1,655,254
Ratio of total expenses to average net assets		0.92%		0.89%		0.83%		0.84%		0.84%
Ratio of net investment income (loss) to average net assets		1.10%		1.18%		1.04%		1.59%		1.60%
Portfolio turnover rate		69%		74%		63%		65%		83%

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.

²  The net investment income (loss) per share was calculated using the average shares outstanding method.

BALANCED FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	16.13		$	14.71		$	12.60		$	11.40		$	10.80
Income (loss) from investment operations:
Net investment income (loss) 3		(0.03	)		(0.03	)		(0.03	)		(0.02	)		(0.02	)
Net realized and unrealized gain (loss) on investment transactions		0.14			1.45			2.14			1.22			0.62
Total from investment operations		0.11			1.42			2.11			1.20			0.60
Net asset value, end of period	$	16.24		$	16.13		$	14.71		$	12.60		$	11.40
Total return 1		0.68%			9.65%			16.75%			10.53%			5.56%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	76,587		$	81,794		$	78,642		$	71,601		$	65,342
Ratio of net expenses to average net assets 2, 4		0.21%			0.20%			0.20%			0.19%			0.18%
Ratio of total expenses to average net assets 2, 5		0.21%			0.21%			0.22%			0.23%			0.24%
Ratio of net investment income (loss) to average net assets 4		(0.21%	)		(0.20%	)		(0.20%	)		(0.19%	)		(0.18%	)
Portfolio turnover rate		8%			8%			16%			15%			17%

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.

³  The net investment income (loss) per share was calculated using the average shares outstanding method.

⁴  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁵ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

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

194

Penn Series Funds, Inc.

Financial Highlights

LARGE GROWTH STOCK FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012		2011
Net asset value, beginning of period	$	27.21		$	25.11		$	18.05		$	15.20	$	15.44
Income (loss) from investment operations:
Net investment income (loss) 2		(0.09	)		(0.07	)		(0.04	)		0.01		(0.03	)
Net realized and unrealized gain (loss) on investment transactions		2.95			2.17			7.10			2.84		(0.21	)
Total from investment operations		2.86			2.10			7.06			2.85		(0.24	)
Net asset value, end of period	$	30.07		$	27.21		$	25.11		$	18.05	$	15.20
Total return 1		10.51%			8.36%			39.11%			18.75%		(1.55%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	296,703		$	280,682		$	262,358		$	210,999	$	176,692
Ratio of total expenses to average net assets		0.98%			0.96%			0.90%			0.91%		0.93%
Ratio of net investment income (loss) to average net assets		(0.30%	)		(0.26%	)		(0.21%	)		0.03%		(0.19%	)
Portfolio turnover rate		37%			38%			36%			35%		33%
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 net investment income (loss) per share was calculated using the average shares outstanding method.
LARGE CAP GROWTH FUND For a share outstanding throughout each period
	Year Ended December 31,
	2015			2014			2013			2012		2011
Net asset value, beginning of period	$	13.11		$	11.78		$	9.57		$	8.68	$	9.31
Income (loss) from investment operations:
Net investment income (loss) 2		0.05			0.06			0.04			0.01		(0.02	)
Net realized and unrealized gain (loss) on investment transactions		(0.07	)		1.27			2.17			0.88		(0.61	)
Total from investment operations		(0.02	)		1.33			2.21			0.89		(0.63	)
Net asset value, end of period	$	13.09		$	13.11		$	11.78		$	9.57	$	8.68
Total return 1		(0.15%	)		11.29%			23.09%			10.25%		(6.77%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	43,702		$	57,663		$	54,762		$	29,751	$	37,465
Ratio of net expenses to average net assets 3		0.89%			0.89%			0.90%			0.90%		0.96%
Ratio of total expenses to average net assets 4		0.89%			0.90%			0.90%			0.90%		0.96%
Ratio of net investment income (loss) to average net assets 3		0.39%			0.47%			0.40%			0.06%		(0.25%	)
Portfolio turnover rate		29%			25%			107%			97%		153%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

³  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁴ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

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

195

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE GROWTH FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012		2011
Net asset value, beginning of period	$	16.03		$	14.88		$	10.79		$	9.29	$	9.78
Income (loss) from investment operations:
Net investment income (loss) 2		(0.03	)		(0.03	)		(0.01	)		0.02		(0.01	)
Net realized and unrealized gain (loss) on investment transactions		0.30			1.18			4.10			1.48		(0.48	)
Total from investment operations		0.27			1.15			4.09			1.50		(0.49	)
Net asset value, end of period	$	16.30		$	16.03		$	14.88		$	10.79	$	9.29
Total return 1		1.68%			7.73%			37.91%			16.15%		(5.01%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	111,680		$	125,980		$	127,757		$	106,053	$	100,397
Ratio of net expenses to average net assets 3		0.87%			0.87%			0.88%			0.89%		0.90%
Ratio of total expenses to average net assets 4		0.87%			0.87%			0.88%			0.89%		0.90%
Ratio of net investment income (loss) to average net assets 3		(0.20%	)		(0.19%	)		(0.08%	)		0.17%		(0.11%	)
Portfolio turnover rate		124%			83%			109%			105%		115%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

³  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁴ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

LARGE CAP VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014		2013		2012		2011
Net asset value, beginning of period	$	23.22		$	20.86	$	15.66	$	13.83	$	14.47
Income (loss) from investment operations:
Net investment income (loss) 2		0.27			0.30		0.21		0.20		0.18
Net realized and unrealized gain (loss) on investment transactions		(1.28	)		2.06		4.99		1.63		(0.82	)
Total from investment operations		(1.01	)		2.36		5.20		1.83		(0.64	)
Net asset value, end of period	$	22.21		$	23.22	$	20.86	$	15.66	$	13.83
Total return 1		(4.35%	)		11.31%		33.21%		13.23%		(4.42%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	207,692		$	229,080	$	217,351	$	166,955	$	166,056
Ratio of total expenses to average net assets		0.92%			0.90%		0.87%		0.88%		0.89%
Ratio of net investment income (loss) to average net assets		1.17%			1.38%		1.16%		1.32%		1.24%
Portfolio turnover rate		19%			22%		186%		90%		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.

²  The net investment income (loss) per share was calculated using the average shares outstanding method.

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

196

Penn Series Funds, Inc.

Financial Highlights

LARGE CORE VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014		2013		2012		2011
Net asset value, beginning of period	$	14.89		$	13.38	$	10.31	$	8.92	$	9.31
Income (loss) from investment operations:
Net investment income (loss) 3		0.22			0.19		0.15		0.16		0.14
Net realized and unrealized gain (loss) on investment transactions		(0.34	)		1.32		2.92		1.23		(0.53	)
Total from investment operations		(0.12	)		1.51		3.07		1.39		(0.39	)
Net asset value, end of period	$	14.77		$	14.89	$	13.38	$	10.31	$	8.92
Total return 1,2		(0.81%	)		11.29%		29.78%		15.58%		(4.19%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	203,012		$	192,695	$	185,630	$	158,589	$	143,147
Ratio of net expenses to average net assets 4		0.92%			0.91%		0.87%		0.88%		0.89%
Ratio of total expenses to average net assets 5		0.92%			0.91%		0.87%		0.88%		0.89%
Ratio of net investment income (loss) to average net assets 4		1.47%			1.33%		1.25%		1.64%		1.52%
Portfolio turnover rate		98%			80%		59%		38%		51%

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%.

³  The net investment income (loss) per share was calculated using the average shares outstanding method.

⁴  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁵ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

INDEX 500 FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014		2013		2012		2011
Net asset value, beginning of period	$	15.98		$	14.11	$	10.70	$	9.25	$	9.09
Income (loss) from investment operations:
Net investment income (loss) 2		0.27			0.24		0.21		0.20		0.16
Net realized and unrealized gain (loss) on investment transactions		(0.11	)		1.63		3.20		1.25		—
Total from investment operations		0.16			1.87		3.41		1.45		0.16
Net asset value, end of period	$	16.14		$	15.98	$	14.11	$	10.70	$	9.25
Total return 1		1.00%			13.25%		31.87%		15.68%		1.76%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	417,965		$	442,835	$	398,537	$	312,146	$	267,009
Ratio of net expenses to average net assets 3		0.38%			0.38%		0.34%		0.34%		0.35%
Ratio of total expenses to average net assets 4		0.38%			0.38%		0.34%		0.34%		0.36%
Ratio of net investment income (loss) to average net assets 3		1.68%			1.63%		1.72%		1.93%		1.71%
Portfolio turnover rate		3%			3%		8%		4%		4%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

³  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁴  The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

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

197

Penn Series Funds, Inc.

Financial Highlights

MID CAP GROWTH FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	14.88		$	13.59		$	9.94		$	9.37		$	10.16
Income (loss) from investment operations:
Net investment income (loss) 2		—			(0.02	)		(0.06	)		(0.01	)		(0.04	)
Net realized and unrealized gain (loss) on investment transactions		(0.86	)		1.31			3.71			0.58			(0.75	)
Total from investment operations		(0.86	)		1.29			3.65			0.57			(0.79	)
Net asset value, end of period	$	14.02		$	14.88		$	13.59		$	9.94		$	9.37
Total return 1		(5.78%	)		9.49%			36.72%			6.08%			(7.78%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	111,742		$	128,486		$	120,563		$	101,293		$	99,083
Ratio of total expenses to average net assets		1.00%			0.97%			0.99%			1.00%			1.00%
Ratio of net investment income (loss) to average net assets		(0.02%	)		(0.14%	)		(0.49%	)		(0.12%	)		(0.42%	)
Portfolio turnover rate		43%			140%			80%			129%			110%
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 net investment income (loss) per share was calculated using the average shares outstanding method.
MID CAP VALUE FUND For a share outstanding throughout each period
	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	21.04		$	18.51		$	13.59		$	11.80		$	12.59
Income (loss) from investment operations:
Net investment income (loss) 2		0.20			0.17			0.19			0.19			0.09
Net realized and unrealized gain (loss) on investment transactions		(1.88	)		2.36			4.73			1.60			(0.88	)
Total from investment operations		(1.68	)		2.53			4.92			1.79			(0.79	)
Net asset value, end of period	$	19.36		$	21.04		$	18.51		$	13.59		$	11.80
Total return 1		(7.98%	)		13.67%			36.20%			15.17%			(6.27%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	165,849		$	185,293		$	172,994		$	124,651		$	97,048
Ratio of total expenses to average net assets		0.81%			0.81%			0.82%			0.84%			0.84%
Ratio of net investment income (loss) to average net assets		0.93%			0.86%			1.21%			1.49%			0.70%
Portfolio turnover rate		42%			32%			43%			43%			106%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

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

198

Penn Series Funds, Inc.

Financial Highlights

MID CORE VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014		2013		2012		2011
Net asset value, beginning of period	$	17.84		$	15.33	$	11.87	$	10.37	$	10.75
Income (loss) from investment operations:
Net investment income (loss) 2		0.19			0.21		0.14		0.08		0.03
Net realized and unrealized gain (loss) on investment transactions		(0.46	)		2.30		3.32		1.42		(0.41	)
Total from investment operations		(0.27	)		2.51		3.46		1.50		(0.38	)
Net asset value, end of period	$	17.57		$	17.84	$	15.33	$	11.87	$	10.37
Total return 1		(1.51%	)		16.37%		29.15%		14.46%		(3.53%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	90,550		$	90,229	$	71,874	$	57,168	$	60,179
Ratio of total expenses to average net assets		1.07%			1.05%		1.08%		1.08%		1.08%
Ratio of net investment income (loss) to average net assets		1.06%			1.27%		0.97%		0.68%		0.29%
Portfolio turnover rate		77%			69%		166%		75%		51%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

SMID CAP GROWTH FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	19.76		$	19.64		$	13.75		$	11.92		$	12.51
Income (loss) from investment operations:
Net investment income (loss) 2		(0.15	)		(0.15	)		(0.10	)		(0.06	)		(0.09	)
Net realized and unrealized gain (loss) on investment transactions		(0.15	)		0.27			5.99			1.89			(0.50	)
Total from investment operations		(0.30	)		0.12			5.89			1.83			(0.59	)
Net asset value, end of period	$	19.46		$	19.76		$	19.64		$	13.75		$	11.92
Total return 1		(1.52%	)		0.61%			42.84%			15.35%			(4.72%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	56,002		$	55,602		$	63,627		$	40,578		$	26,996
Ratio of net expenses to average net assets 3		1.07%			1.06%			1.05%			1.05%			1.05%
Ratio of total expenses to average net assets 4		1.07%			1.06%			1.07%			1.12%			1.13%
Ratio of net investment income (loss) to average net assets 3		(0.71%	)		(0.81%	)		(0.61%	)		(0.46%	)		(0.77%	)
Portfolio turnover rate		103%			89%			90%			95%			160%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

³  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁴  The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

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

199

Penn Series Funds, Inc.

Financial Highlights

SMID CAP VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014		2013		2012		2011
Net asset value, beginning of period	$	20.91		$	19.14	$	13.87	$	11.66	$	12.56
Income (loss) from investment operations:
Net investment income (loss) 2		—			0.05		0.07		0.07		0.03
Net realized and unrealized gain (loss) on investment transactions		(1.19	)		1.72		5.20		2.14		(0.93	)
Total from investment operations		(1.19	)		1.77		5.27		2.21		(0.90	)
Net asset value, end of period	$	19.72		$	20.91	$	19.14	$	13.87	$	11.66
Total return 1		(5.69%	)		9.25%		38.00%		18.95%		(7.17%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	67,959		$	73,906	$	63,544	$	43,575	$	32,949
Ratio of net expenses to average net assets 3		1.23%			1.20%		1.14%		1.14%		1.14%
Ratio of total expenses to average net assets 4		1.23%			1.24%		1.25%		1.27%		1.31%
Ratio of net investment income (loss) to average net assets 3		(0.02%	)		0.24%		0.41%		0.51%		0.27%
Portfolio turnover rate		48%			51%		58%		52%		69%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

³  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁴ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

SMALL CAP GROWTH FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	28.47		$	26.42		$	19.20		$	18.16		$	20.43
Income (loss) from investment operations:
Net investment income (loss) 2		(0.14	)		(0.11	)		(0.11	)		(0.18	)		(0.15	)
Net realized and unrealized gain (loss) on investment transactions		0.26			2.16			7.33			1.22			(2.12	)
Total from investment operations		0.12			2.05			7.22			1.04			(2.27	)
Net asset value, end of period	$	28.59		$	28.47		$	26.42		$	19.20		$	18.16
Total return 1		0.42%			7.76%			37.60%			5.73%			(11.11%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	91,666		$	102,678		$	89,539		$	77,720		$	78,447
Ratio of total expenses to average net assets		1.03%			1.02%			1.07%			1.10%			1.08%
Ratio of net investment income (loss) to average net assets		(0.48%	)		(0.42%	)		(0.50%	)		(0.92%	)		(0.71%	)
Portfolio turnover rate		26%			33%			143%			103%			125%

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.

²  The net investment income (loss) per share was calculated using the average shares outstanding method.

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

200

Penn Series Funds, Inc.

Financial Highlights

SMALL CAP VALUE FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014		2013		2012		2011
Net asset value, beginning of period	$	28.03		$	26.16	$	18.83	$	16.21	$	16.07
Income (loss) from investment operations:
Net investment income (loss) 2		0.17			0.19		0.10		0.24		0.08
Net realized and unrealized gain (loss) on investment transactions		(1.70	)		1.68		7.23		2.38		0.06
Total from investment operations		(1.53	)		1.87		7.33		2.62		0.14
Net asset value, end of period	$	26.50		$	28.03	$	26.16	$	18.83	$	16.21
Total return 1		(5.46%	)		7.15%		38.93%		16.16%		0.87%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	227,139		$	246,127	$	238,772	$	175,841	$	159,365
Ratio of total expenses to average net assets		0.99%			1.03%		1.14%		1.15%		1.15%
Ratio of net investment income (loss) to average net assets		0.62%			0.70%		0.46%		1.36%		0.51%
Portfolio turnover rate		47%			45%		59%		50%		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.

²  The net investment income (loss) per share was calculated using the average shares outstanding method.

SMALL CAP INDEX FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014		2013		2012		2011
Net asset value, beginning of period	$	17.59		$	16.88	$	12.22	$	10.58	$	11.08
Income (loss) from investment operations:
Net investment income (loss) 2		0.12			0.12		0.10		0.16		0.08
Net realized and unrealized gain (loss) on investment transactions		(1.02	)		0.59		4.56		1.48		(0.58	)
Total from investment operations		(0.90	)		0.71		4.66		1.64		(0.50	)
Net asset value, end of period	$	16.69		$	17.59	$	16.88	$	12.22	$	10.58
Total return 1		(5.12%	)		4.21%		38.13%		15.50%		(4.51%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	65,480		$	66,658	$	64,860	$	42,443	$	29,202
Ratio of net expenses to average net assets 3		0.69%			0.64%		0.55%		0.55%		0.55%
Ratio of total expenses to average net assets 4		0.69%			0.69%		0.71%		0.70%		0.91%
Ratio of net investment income (loss) to average net assets 3		0.66%			0.72%		0.71%		1.42%		0.70%
Portfolio turnover rate		18%			20%		17%		18%		18%

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 net investment income (loss) per share was calculated using the average shares outstanding method.

³  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁴ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

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

201

Penn Series Funds, Inc.

Financial Highlights

DEVELOPED INTERNATIONAL INDEX FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013		2012		2011
Net asset value, beginning of period	$	11.54		$	12.29		$	10.15	$	8.59	$	9.83
Income (loss) from investment operations:
Net investment income (loss) 2		0.24			0.30			0.28		0.25		0.27
Net realized and unrealized gain (loss) on investment transactions		(0.40	)		(1.05	)		1.86		1.31		(1.51	)
Total from investment operations		(0.16	)		(0.75	)		2.14		1.56		(1.24	)
Net asset value, end of period	$	11.38		$	11.54		$	12.29	$	10.15	$	8.59
Total return 1		(1.39%	)		(6.10%	)		21.08%		18.16%		(12.61%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	98,109		$	101,510		$	103,233	$	89,786	$	61,858
Ratio of net expenses to average net assets 3		0.83%			0.75%			0.59%		0.59%		0.59%
Ratio of total expenses to average net assets 4		0.83%			0.82%			0.92%		1.00%		1.01%
Ratio of net investment income (loss) to average net assets 3		2.02%			2.47%			2.50%		2.73%		2.80%
Portfolio turnover rate		2%			7%			9%		2%		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.

²  The net investment income (loss) per share was calculated using the average shares outstanding method.

³  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁴ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

INTERNATIONAL EQUITY FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015		2014		2013		2012		2011
Net asset value, beginning of period	$	23.39	$	22.72	$	21.44	$	17.71	$	17.55
Income (loss) from investment operations:
Net investment income (loss) 2		0.28		0.27		0.24		0.25		0.35
Net realized and unrealized gain (loss) on investment transactions		0.56		0.40		1.04		3.48		(0.19	)
Total from investment operations		0.84		0.67		1.28		3.73		0.16
Net asset value, end of period	$	24.23	$	23.39	$	22.72	$	21.44	$	17.71
Total return 1		3.59%		2.95%		5.97%		21.06%		0.91%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	375,175	$	380,898	$	378,189	$	348,599	$	309,920
Ratio of total expenses to average net assets		1.15%		1.15%		1.17%		1.17%		1.20%
Ratio of net investment income (loss) to average net assets		1.17%		1.14%		1.09%		1.30%		1.95%
Portfolio turnover rate		27%		31%		34%		43%		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 net investment income (loss) per share was calculated using the average shares outstanding method.

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

202

Penn Series Funds, Inc.

Financial Highlights

EMERGING MARKETS EQUITY FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012		2011
Net asset value, beginning of period	$	10.84		$	11.40		$	11.53		$	9.64	$	11.82
Income (loss) from investment operations:
Net investment income (loss) 2		0.03			0.02			0.03			0.03		0.07
Net realized and unrealized gain (loss) on investment transactions		(1.21	)		(0.58	)		(0.16	)		1.86		(2.25	)
Total from investment operations		(1.18	)		(0.56	)		(0.13	)		1.89		(2.18	)
Net asset value, end of period	$	9.66		$	10.84		$	11.40		$	11.53	$	9.64
Total return 1		(10.89%	)		(4.91%	)		(1.13%	)		19.61%		(18.44%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	147,819		$	157,027		$	163,179		$	152,858	$	121,066
Ratio of net expenses to average net assets 3		1.74%			1.75%			1.68%			1.68%		1.68%
Ratio of total expenses to average net assets 4		1.68%			1.69%			1.82%			1.72%		1.91%
Ratio of net investment income (loss) to average net assets 3		0.24%			0.19%			0.25%			0.31%		0.63%
Portfolio turnover rate		41%			42%			48%			47%		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.

²  The net investment income (loss) per share was calculated using the average shares outstanding method.

³  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁴ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

REAL ESTATE SECURITIES FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015		2014		2013		2012		2011 2
Net asset value, beginning of period	$	18.01	$	13.83	$	13.41	$	11.56	$	10.80
Income (loss) from investment operations:
Net investment income (loss) 3		0.26		0.23		0.18		0.16		0.12
Net realized and unrealized gain (loss) on investment transactions		0.68		3.95		0.24		1.69		0.64
Total from investment operations		0.94		4.18		0.42		1.85		0.76
Net asset value, end of period	$	18.95	$	18.01	$	13.83	$	13.41	$	11.56
Total return 1		5.22%		30.22%		3.13%		16.00%		7.04%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	137,644	$	136,861	$	114,290	$	98,146	$	76,346
Ratio of total expenses to average net assets		0.97%		0.97%		0.99%		1.01%		1.00%
Ratio of net investment income (loss) to average net assets		1.42%		1.43%		1.35%		1.27%		1.09%
Portfolio turnover rate		61%		54%		69%		85%		144%

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.

³  The net investment income (loss) per share was calculated using the average shares outstanding method.

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

203

Penn Series Funds, Inc.

Financial Highlights

AGGRESSIVE ALLOCATION FUND

For a share outstanding throughout each period

	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	15.12		$	14.16		$	11.56		$	10.01		$	10.39
Income (loss) from investment operations:
Net investment income (loss) 3		(0.05	)		(0.05	)		(0.04	)		(0.04	)		(0.03	)
Net realized and unrealized gain (loss) on investment transactions		(0.19	)		1.01			2.64			1.59			(0.35	)
Total from investment operations		(0.24	)		0.96			2.60			1.55			(0.38	)
Net asset value, end of period	$	14.88		$	15.12		$	14.16		$	11.56		$	10.01
Total return 1		(1.59%	)		6.78%			22.49%			15.48%			(3.66%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	61,119		$	64,505		$	56,879		$	41,234		$	28,182
Ratio of net expenses to average net assets 2, 4		0.34%			0.34%			0.33%			0.33%			0.33%
Ratio of total expenses to average net assets 2, 5		0.34%			0.34%			0.33%			0.35%			0.38%
Ratio of net investment income (loss) to average net assets 4		(0.34%	)		(0.34%	)		(0.33%	)		(0.33%	)		(0.33%	)
Portfolio turnover rate		24%			20%			30%			24%			29%
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. 3     The net investment income (loss) per share was calculated using the average shares outstanding method. 4     The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown. 5    The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.
MODERATELY AGGRESSIVE ALLOCATION FUND For a share outstanding throughout each period
	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	15.73		$	14.80		$	12.42		$	10.93		$	11.13
Income (loss) from investment operations:
Net investment income (loss) 3		(0.05	)		(0.05	)		(0.04	)		(0.04	)		(0.04	)
Net realized and unrealized gain (loss) on investment transactions		(0.13	)		0.98			2.42			1.53			(0.16	)
Total from investment operations		(0.18	)		0.93			2.38			1.49			(0.20	)
Net asset value, end of period	$	15.55		$	15.73		$	14.80		$	12.42		$	10.93
Total return 1		(1.14%	)		6.28%			19.16%			13.63%			(1.80%	)
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	238,908		$	250,402		$	231,185		$	179,229		$	134,968
Ratio of total expenses to average net assets 2		0.32%			0.32%			0.31%			0.32%			0.32%
Ratio of net investment income (loss) to average net assets		(0.32%	)		(0.32%	)		(0.31%	)		(0.32%	)		(0.32%	)
Portfolio turnover rate		20%			17%			23%			25%			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.

³  The net investment income (loss) per share was calculated using the average shares outstanding method.

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
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	14.44		$	13.67		$	11.98		$	10.80		$	10.73
Income (loss) from investment operations:
Net investment income (loss) 3		(0.05	)		(0.04	)		(0.04	)		(0.04	)		(0.03	)
Net realized and unrealized gain (loss) on investment transactions		(0.03	)		0.81			1.73			1.22			0.10
Total from investment operations		(0.08	)		0.77			1.69			1.18			0.07
Net asset value, end of period	$	14.36		$	14.44		$	13.67		$	11.98		$	10.80
Total return 1		(0.55%	)		5.63%			14.11%			10.93%			0.65%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	342,152		$	364,044		$	350,164		$	290,951		$	224,256
Ratio of total expenses to average net assets 2		0.32%			0.31%			0.31%			0.31%			0.32%
Ratio of net investment income (loss) to average net assets		(0.32%	)		(0.31%	)		(0.31%	)		(0.31%	)		(0.32%	)
Portfolio turnover rate		17%			17%			20%			20%			26%
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. 3     The net investment income (loss) per share was calculated using the average shares outstanding method.
MODERATELY CONSERVATIVE ALLOCATION FUND For a share outstanding throughout each period
	Year Ended December 31,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	13.63		$	12.98		$	11.87		$	10.96		$	10.67
Income (loss) from investment operations:
Net investment income (loss) 3		(0.05	)		(0.04	)		(0.04	)		(0.04	)		(0.04	)
Net realized and unrealized gain (loss) on investment transactions		0.02			0.69			1.15			0.95			0.33
Total from investment operations		(0.03	)		0.65			1.11			0.91			0.29
Net asset value, end of period	$	13.60		$	13.63		$	12.98		$	11.87		$	10.96
Total return 1		(0.22%	)		5.01%			9.35%			8.30%			2.72%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	102,101		$	107,669		$	111,452		$	96,028		$	89,677
Ratio of net expenses to average net assets 2, 4		0.33%			0.32%			0.32%			0.33%			0.33%
Ratio of total expenses to average net assets 2, 5		0.33%			0.32%			0.32%			0.33%			0.33%
Ratio of net investment income (loss) to average net assets 4		(0.33%	)		(0.32%	)		(0.32%	)		(0.33%	)		(0.33%	)
Portfolio turnover rate		23%			20%			28%			37%			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.

³  The net investment income (loss) per share was calculated using the average shares outstanding method.

⁴  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁵ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

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,
	2015			2014			2013			2012			2011
Net asset value, beginning of period	$	12.72		$	12.26		$	11.74		$	11.13		$	10.71
Income (loss) from investment operations:
Net investment income (loss) 3		(0.04	)		(0.04	)		(0.04	)		(0.04	)		(0.04	)
Net realized and unrealized gain (loss) on investment transactions		0.05			0.50			0.56			0.65			0.46
Total from investment operations		0.01			0.46			0.52			0.61			0.42
Net asset value, end of period	$	12.73		$	12.72		$	12.26		$	11.74		$	11.13
Total return 1		0.08%			3.75%			4.43%			5.48%			3.92%
Ratios/Supplemental data:
Net assets, end of period (in thousands)	$	61,217		$	65,183		$	68,185		$	70,604		$	63,096
Ratio of net expenses to average net assets 2, 4		0.34%			0.33%			0.33%			0.33%			0.33%
Ratio of total expenses to average net assets 2, 5		0.34%			0.33%			0.33%			0.33%			0.34%
Ratio of net investment income (loss) to average net assets 4		(0.34%	)		(0.33%	)		(0.33%	)		(0.33%	)		(0.33%	)
Portfolio turnover rate		24%			26%			38%			44%			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.

³  The net investment income (loss) per share was calculated using the average shares outstanding method.

⁴  The ratio includes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were excluded, the ratio would have been higher (lower), respectively, than the ratio shown.

⁵ The ratio excludes expenses waived/reimbursed net of amount recaptured and fees paid indirectly, where applicable; if expenses waived/reimbursed net of amount recaptured and fees paid indirectly were included, the ratio would have been lower than the ratio shown.

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

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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. Each of the following is a Penn Series FOFs: 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. The Funds are investment companies and follow the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 946.

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. Securities valued according to these evaluation methods are categorized as Level 1 in the fair value hierarchy described below. Debt and fixed income securities are valued by recognized independent third-party valuation services, employing valuation 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 valuation 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 as of the valuation date.

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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 valued at their gross amounts.

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 the 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 Penn Series Board of Directors (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 Penn Mutual Asset Management, Inc. (“PMAM” 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 Funds’ investments. Inputs refer broadly to the assumptions that

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market participants would use in pricing an asset. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. These inputs are summarized into three broad levels as follows:

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

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

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

Transfers between levels 1 and 2 during the year ended December 31, 2015, if any, are shown as notes on the Schedule of Investments of the individual Fund.

Significant Level 3 items at December 31, 2015 consist of $3,814,644 of equities in the Large Growth Stock Fund which were not publicly trading. The unobservable inputs used in valuing these securities include new rounds of financing, negotiated transactions of significant size between other investors in the company, relevant market valuations of peer companies and strategic events affecting the company. Significant increases (decreases) in the valuation indicated by the new rounds of financing, valuations observed through negotiated transactions between other investors in the company or changes in the market valuation of relevant peer companies would result in directionally similar changes to the fair value. Fair value determinations are reviewed and updated on a regular basis and as information becomes available, including actual purchase and sale transactions of the issue.

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.

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Notes to Financial Statements — December 31, 2015

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.

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, 2015 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, 2015, 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

Effective January 1, 2015, Independence Capital Management, Inc., the investment adviser to each series of Penn Series Funds, Inc., changed its name to Penn Mutual Asset Management, Inc. (“PMAM”). With the exception of the Money Market, Limited Maturity, Quality Bond, Balanced, Aggressive Allocation, Moderately Aggressive Allocation, Moderate Allocation, Moderately Conservative Allocation and Conservative Allocation Funds, PMAM has entered into sub-advisory agreements to provide investment management services to each of the Funds.

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Each of the Funds pay PMAM, 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:

Fund	Sub-Adviser	Investment Advisory Fees (As a Percentage of the Average Daily Net Assets of the Fund)
Money Market Fund	None	0.33% of the first $200,000,000; 0.31% of the next $150,000,000; 0.29% of the next $150,000,000; 0.27% over $500,000,000.
Limited Maturity Bond Fund	None	0.46% of the first $200,000,000; 0.44% of the next $150,000,000; 0.42% of the next $150,000,000; 0.40% over $500,000,000.
Quality Bond Fund	None	0.46% of the first $200,000,000; 0.44% of the next $150,000,000; 0.42% of the next $150,000,000; 0.40% over $500,000,000.
High Yield Bond Fund	T. Rowe Price Associates, Inc	0.56% of the first $250,000,000; 0.53% over $250,000,000.
Flexibly Managed Fund	T. Rowe Price Associates, Inc	0.72% of the first $500,000,000; 0.70% of the next $2,000,000,000; 0.68% of the next $1,500,000,000; 0.65% of the next $1,000,000,000; 0.62% over $5,000,000,000.
Balanced Fund	None	None
Large Growth Stock Fund	T. Rowe Price Associates, Inc	0.72% of the first $250,000,000; 0.68% of the next $250,000,000; 0.65% over $500,000,000.
Large Cap Growth Fund	Massachusetts Financial Services Company	0.55%
Large Core Growth Fund	Wells Capital Management, Inc.	0.60%
Large Cap Value Fund	Loomis, Sayles & Company, LP	0.67% of the first $150,000,000; 0.65% over $150,000,000.
Large Core Value Fund	Eaton Vance Management	0.67% of the first $150,000,000; 0.65% of the next $250,000,000; 0.60% over $400,000,000.
Index 500 Fund	SSgA Fund Management, Inc.	0.14% of the first $150,000,000; 0.13% of the next $150,000,000; 0.12% over $300,000,000.
Mid Cap Growth Fund	Ivy Investment Management Company	0.70%
Mid Cap Value Fund	Neuberger Berman Management, Inc.	0.55% of the first $250,000,000; 0.525% of the next $250,000,000; 0.50% of the next $250,000,000; 0.475% of the next $250,000,000; 0.45% of the next $500,000,000; 0.425% over $1,500,000,000.
Mid Core Value Fund	American Century Investment Management, Inc.	0.72%
SMID Cap Growth Fund	Wells Capital Management, Inc.	0.75%
SMID Cap Value Fund	Alliance Bernstein, LP	0.95%

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Fund	Sub-Adviser	Investment Advisory Fees (As a Percentage of the Average Daily Net Assets of the Fund)
Small Cap Growth Fund	Janus Capital Management LLC	0.80% of the first $25,000,000; 0.75% of the next $25,000,000; 0.70% over $50,000,000.
Small Cap Value Fund	Goldman Sachs Asset Management, LP	0.75% of the first $50,000,000; 0.725% of the next $50,000,000; 0.70% over $100,000,000.
Small Cap Index Fund	SSgA Fund Management, Inc.	0.30%
Developed International Index Fund	SSgA Fund Management, Inc.	0.30%
International Equity Fund	Vontobel Asset Management, Inc.	0.86% of the first $227,000,000; 0.84% of the next $227,000,000; 0.82% over $454,000,000.
Emerging Markets Equity Fund	Morgan Stanley Investment Management, Inc.	1.18% of the first $2,500,000,000; 1.00% over $2,500,000,000.
Real Estate Securities Fund	Cohen & Steers Capital Management, Inc.	0.70%
Aggressive Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.
Moderately Aggressive Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.
Moderate Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.
Moderately Conservative Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.
Conservative Allocation Fund	None	0.12% of the first $200,000,000; 0.11% of the next $150,000,000; 0.10% of the next $150,000,000; 0.09% over $500,000,000.

For providing investment management services to the Funds, PMAM 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

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Notes to Financial Statements — December 31, 2015

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. Each of 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 0.007% 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 PMAM and its sub-adviser under its respective investment advisory agreement and those incurred by Penn Mutual under its administrative and corporate services agreement. PMAM and Penn Mutual have agreed to waive fees or reimburse expenses to the extent the Fund’s total expense ratio (excluding nonrecurring account fees, fees on portfolio transactions, such as exchange fees, dividends and interest on securities sold short, Acquired Fund Fees and Expenses, service fees, interest, taxes, brokerage commissions, other capitalized expenses and other non-routine expenses or extraordinary expenses not incurred in the ordinary course of a Fund’s business, 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		0.64%	SMID Cap Growth		1.07%
Limited Maturity Bond		0.74%	SMID Cap Value		1.26%
Quality Bond		0.73%	Small Cap Growth		1.13%
High Yield Bond		0.92%	Small Cap Value		1.02%
Flexibly Managed		0.94%	Small Cap Index		0.74%
Balanced		0.79%	Developed International Index		0.94%
Large Growth Stock		1.02%	International Equity		1.20%
Large Cap Growth		0.89%	Emerging Markets Equity		1.78%
Large Core Growth		0.90%	Real Estate Securities		1.02%
Large Cap Value		0.96%	Aggressive Allocation*		0.40%
Large Core Value		0.96%	Moderately Aggressive Allocation*		0.34%
Index 500		0.42%	Moderate Allocation*		0.34%
Mid Cap Growth		1.00%	Moderately Conservative Allocation*		0.35%
Mid Cap Value		0.83%	Conservative Allocation*		0.38%
Mid Core Value		1.11%

* 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.

213

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Notes to Financial Statements — December 31, 2015

Effective September 10, 2009, Penn Series, on behalf of its Money Market Fund, PMAM, and Penn Mutual, entered into an agreement whereby PMAM 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, PMAM 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 PMAM 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.

If, at the end of each month, there is no liability of PMAM 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 PMAM and Penn Mutual and, if recaptured, would become payable by the Funds to PMAM and Penn Mutual along with the advisory fee or administrative and corporate services fee for that month, as applicable. Penn Mutual and/or PMAM’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 PMAM 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, 2015, 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, 2016		December 31, 2017		December 31, 2018
Money Market Fund	$	176,621	$	220,934	$	75,300
Balanced Fund		20,510		7,278		—
Large Cap Growth Fund		—		219		1,384

During the year ended December 31, 2015, previously waived administrative fees were recaptured by Penn Mutual. The recaptured fees are shown as Recaptured administrative fees on the statement of operations and are as follows:

Large Cap Growth Fund $ 3,220

As of December 31, 2015, the following Funds had waived and/or reimbursed advisory fees that are subject to potential recapture by PMAM through the periods stated below. If not recaptured, the waived and/or reimbursed advisory fees will expire according to the table below:

	December 31, 2016		December 31, 2017		December 31, 2018
Money Market Fund	$	247,479	$	388,671	$	372,994
Mid Cap Growth		—		—		1,656
SMID Cap Growth Fund		10,433		3,212		—
SMID Cap Value Fund		61,894		22,348		—
Small Cap Index Fund		85,442		31,741		—
Developed International Index Fund		329,477		72,559		—
Aggressive Allocation Fund		2,362		179		—

During the year ended December 31, 2015, previously waived advisory fees were recaptured by PMAM. The recaptured fees are shown as Recaptured advisory fees on the statement of operations and are as follows:

Emerging Markets Equity Fund $ 82,846

Total fees of $338,250 were paid to Directors of Penn Series, who are not interested persons of Penn Series, for the year ended December 31, 2015. Director’s who are also employees of PMAM or its affiliates and officers of the Company receive no compensation from the Company for their services.

214

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Notes to Financial Statements — December 31, 2015

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, 2015 are as follows:

Money Market Fund	$	28,667,100
Limited Maturity Bond Fund		31,914,035
Quality Bond Fund		40,340,599
High Yield Bond Fund		4,399,604
Flexibly Managed Fund		66,659,149
Large Growth Stock Fund		40,348,873
Large Core Value Fund		28,771,250
Index 500 Fund		19,316,007
Mid Cap Growth Fund		4,520,614
Mid Core Value Fund		4,716,251
SMID Cap Growth Fund		3,789,959
SMID Cap Value Fund		3,876,389
Small Cap Growth Fund		4,003,332
Small Cap Value Fund		7,740,848
Small Cap Index Fund		3,231,100
Developed International Index Fund		2,729,016
International Equity Fund		19,115,020
Emerging Markets Equity Fund		2,768,596

Certain Funds affect trades for security purchase and sale transactions through brokers that are affiliates of the Adviser or the sub-advisers. Commissions paid on those trades from the Funds for the year ended December 31, 2015 were as follows:

Large Growth Stock Fund	$	60
Large Core Growth Fund		347
Small Cap Value Fund		3,946
Emerging Markets Equity Fund		3,622

The Funds may purchase securities from or sell to other funds that have a common adviser. These interfund transactions are primarily used for transactional cost purposes and are made pursuant to Rule 17a-7 of the Investment Company Act of 1940.

A summary of the FoF’s total long-term and short-term purchases and sales of the shares of the underlying Funds during the period ended December 31, 2015 is as follows:

Balanced Fund	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Quality Bond Fund	$	32,591,121	$	30,492,870	$	2,849,366	$	5,099,634	$	—	$	560,637
Penn Series Index 500 Fund		48,886,682		45,739,306		3,300,909		7,011,038		—		2,777,733
	$	81,477,803	$	76,232,176	$	6,150,275	$	12,110,672	$	—	$	3,338,370
Aggressive Allocation Fund	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Quality Bond Fund	$	2,584,241	$	1,216,144	$	318,246	$	1,702,273	$	—	$	195,182
Penn Series Flexibly Managed Fund		2,583,596		2,432,289		908,186		1,163,414		—		330,709
Penn Series Large Growth Stock Fund		2,584,241		2,432,289		257,880		666,777		—		202,960
Penn Series Large Cap Growth Fund		2,584,241		1,216,144		288,790		1,617,095		—		292,911
Penn Series Large Core Growth Fund		646,060		—		59,510		666,479		—		350,304

215

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Notes to Financial Statements — December 31, 2015

Aggressive Allocation Fund (continued)	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Large Cap Value Fund	$	6,460,603	$	6,080,722	$	977,227	$	1,084,270	$	—	$	248,242
Penn Series Large Core Value Fund		3,230,302		4,864,577		2,113,693		535,444		—		126,737
Penn Series Index 500 Fund		3,876,362		3,040,361		441,059		1,314,037		—		430,567
Penn Series Mid Cap Growth Fund		2,584,241		1,216,144		256,211		1,463,996		—		623,789
Penn Series Mid Cap Value Fund		3,230,301		3,648,433		1,324,696		588,300		—		155,710
Penn Series Mid Core Value Fund		2,584,241		3,648,433		1,565,767		474,893		—		137,427
Penn Series SMID Cap Growth Fund		1,938,181		1,824,217		852,747		1,005,537		—		428,891
Penn Series SMID Cap Value Fund		3,230,302		3,040,361		473,683		482,207		—		119,133
Penn Series Small Cap Growth Fund		1,936,820		1,824,217		863,261		1,003,182		—		79,832
Penn Series Small Cap Value Fund		2,584,241		2,432,289		364,774		379,120		—		88,210
Penn Series Small Cap Index Fund		646,060		608,072		97,303		104,625		—		38,697
Penn Series Developed International Index Fund		5,168,482		4,864,577		674,508		922,589		—		108,066
Penn Series International Equity Fund		9,044,844		8,513,011		957,855		1,790,891		—		401,759
Penn Series Emerging Markets Equity Fund		4,522,422		5,472,650		2,197,871		767,661		—		81,092
Penn Series Real Estate Securities Fund		2,584,241		2,432,289		499,680		791,182		—		382,447
	$	64,604,022	$	60,807,219	$	15,492,947	$	18,523,972	$	—	$	4,822,664
Moderately Aggressive Allocation Fund	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Limited Maturity Bond Fund	$	9,965,445	$	7,135,107	$	920,828	$	3,833,789	$	—	$	94,609
Penn Series Quality Bond Fund		29,896,336		23,783,691		3,081,660		9,362,881		—		1,640,625
Penn Series High Yield Bond Fund		7,474,084		7,135,107		704,265		809,368		—		149,418
Penn Series Flexibly Managed Fund		9,962,957		14,270,215		4,943,290		1,252,091		—		250,618
Penn Series Large Growth Stock Fund		7,474,084		7,135,107		2,747,253		3,744,834		—		1,871,467
Penn Series Large Cap Growth Fund		7,474,084		4,756,738		500,842		3,207,197		—		650,008
Penn Series Large Core Growth Fund		2,491,361		—		113,820		2,454,911		—		1,457,778
Penn Series Large Cap Value Fund		22,422,252		19,026,953		2,369,070		4,937,818		—		1,223,881

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Notes to Financial Statements — December 31, 2015

Moderately Aggressive Allocation Fund (continued)	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Large Core Value Fund	$	9,965,445	$	19,026,953	$	9,748,935	$	1,089,159	$	—	$	274,115
Penn Series Index 500 Fund		14,948,168		9,513,476		639,649		6,055,084		—		3,057,871
Penn Series Mid Cap Growth Fund		7,474,084		4,756,738		797,961		3,111,002		—		1,596,559
Penn Series Mid Cap Value Find		12,456,806		11,891,846		1,786,308		1,398,703		—		349,462
Penn Series Mid Core Value Fund		9,965,445		11,891,845		3,053,031		1,080,064		—		316,336
Penn Series SMID Cap Growth Fund		4,982,723		4,756,738		2,743,852		2,647,349		—		1,462,313
Penn Series SMID Cap Value Fund		7,474,084		9,513,476		3,470,753		830,518		—		245,309
Penn Series Small Cap Growth Fund		7,468,837		4,756,738		540,982		3,503,091		—		407,521
Penn Series Small Cap Value Fund		7,474,084		7,135,107		732,001		677,826		—		185,331
Penn Series Small Cap Index Fund		4,982,722		4,756,738		534,777		528,606		—		165,937
Penn Series Developed International Index Fund		17,439,529		16,648,584		1,527,791		2,161,722		—		283,152
Penn Series International Equity Fund		27,404,974		28,540,429		3,153,506		3,073,282		—		651,342
Penn Series Emerging Markets Equity Fund		12,456,807		14,270,214		4,448,875		1,333,991		—		129,078
Penn Series Real Estate Securities Fund		7,474,084		7,135,107		1,099,399		1,838,137		—		939,455
	$	249,128,395	$	237,836,907	$	49,658,848	$	58,931,423	$	—	$	17,402,186
Moderate Allocation Fund	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Money Market Fund	$	7,260,351	$	3,407,652	$	464,128	$	4,316,827	$	540	$	—
Penn Series Limited Maturity Bond Fund		25,411,016		20,445,739		1,799,604		6,980,094		—		473,922
Penn Series Quality Bond Fund		87,123,486		85,190,580		10,649,914		12,923,421		—		1,677,735
Penn Series High Yield Bond Fund		18,150,726		13,630,493		1,124,607		5,305,668		—		277,837
Penn Series Flexibly Managed Fund		21,775,433		23,853,363		3,683,124		2,806,811		—		1,034,797
Penn Series Large Growth Stock Fund		7,260,290		6,815,247		227,765		1,408,558		—		706,127
Penn Series Large Cap Growth Fund		10,890,436		3,407,623		411,737		7,494,614		—		1,335,874
Penn Series Large Cap Value Fund		21,780,871		20,445,739		2,282,146		2,737,980		—		754,850
Penn Series Large Core Value Fund		10,890,436		20,445,739		11,055,013		2,125,399		—		874,796
Penn Series Index 500 Fund		18,150,726		10,222,870		799,316		8,689,240		—		4,832,927

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Notes to Financial Statements — December 31, 2015

Moderate Allocation Fund (continued)	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Mid Cap Growth Fund	$	7,260,290	$	6,815,246	$	736,906	$	805,820	$	—	$	172,046
Penn Series Mid Cap Value Fund		10,890,436		10,222,870		1,411,408		1,272,706		—		312,787
Penn Series Mid Core Value Fund		10,890,436		17,038,116		7,496,589		1,504,347		—		528,905
Penn Series SMID Cap Growth Fund		3,630,145		3,407,623		3,675,698		3,468,502		—		1,857,942
Penn Series SMID Cap Value Fund		10,890,436		6,815,246		484,888		3,921,240		—		2,191,434
Penn Series Small Cap Growth Fund		7,255,194		3,407,623		403,234		4,581,343		—		572,902
Penn Series Small Cap Value Fund		7,260,291		10,222,870		4,054,309		823,780		—		352,549
Penn Series Small Cap Index Fund		7,260,290		6,815,246		748,843		871,822		—		355,369
Penn Series Developed International Index Fund		18,150,726		17,038,116		1,521,977		2,502,583		—		343,328
Penn Series International Equity Fund		32,671,307		30,668,609		994,010		4,140,907		—		917,425
Penn Series Emerging Markets Equity Fund		10,890,436		13,630,493		5,072,807		1,228,803		—		109,407
Penn Series Real Estate Securities Fund		7,260,290		6,815,247		895,889		1,735,943		—		880,267
	$	363,004,048	$	340,762,350	$	59,993,912	$	81,646,408	$	540	$	20,563,227
Moderately Conservative Allocation Fund	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Money Market Fund	$	2,139,849	$	1,013,492	$	275,960	$	1,402,317	$	162	$	—
Penn Series Limited Maturity Bond Fund		17,118,652		15,202,256		2,098,943		4,153,861		—		126,544
Penn Series Quality Bond Fund		35,307,220		34,458,447		6,281,619		7,272,623		—		624,395
Penn Series High Yield Bond Fund		6,419,494		6,080,903		1,030,318		1,177,741		—		129,851
Penn Series Flexibly Managed Fund		7,487,540		8,107,870		1,830,637		1,622,999		—		457,806
Penn Series Large Growth Stock Fund		1,069,916		1,013,484		134,170		300,755		—		128,385
Penn Series Large Cap Growth Fund		2,139,831		1,013,484		227,414		1,294,288		—		205,603
Penn Series Large Cap Value Fund		5,349,579		5,067,419		1,051,884		1,121,053		—		232,795
Penn Series Large Core Value Fund		2,139,831		5,067,419		3,457,969		727,631		—		277,044
Penn Series Index 500 Fund		3,209,747		2,026,967		369,296		1,519,065		—		739,973
Penn Series Mid Cap Value Fund		3,209,747		2,026,967		403,475		1,345,084		—		295,920

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Notes to Financial Statements — December 31, 2015

Moderately Conservative Allocation Fund (continued)	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Mid Core Value Fund	$	2,139,831	$	3,040,451	$	1,358,725	$	475,931	$	—	$	153,465
Penn Series SMID Cap Growth Fund		1,069,916		1,010,545		203,866		1,269,265		—		645,897
Penn Series SMID Cap Value Fund		2,139,831		1,013,484		233,828		1,230,081		—		680,963
Penn Series Small Cap Growth Fund		1,069,165		—		100,456		1,139,402		—		(30,970	)
Penn Series Small Cap Value Fund		1,069,916		2,026,967		1,229,587		249,239		—		(5,291	)
Penn Series Small Cap Index Fund		1,069,916		1,013,484		211,291		221,143		—		74,100
Penn Series Developed International Index Fund		4,279,663		3,040,451		446,171		1,625,752		—		407,196
Penn Series International Equity Fund		5,349,579		6,080,902		1,658,792		1,171,910		—		216,367
Penn Series Emerging Markets Equity Fund		1,069,916		2,026,968		1,269,326		205,415		—		(3,489	)
Penn Series Real Estate Securities Fund		2,139,832		2,026,967		433,647		661,053		—		189,229
	$	106,988,971	$	102,358,927	$	24,307,374	$	30,186,608	$	162	$	5,545,783
Conservative Allocation Fund	Total Value at 12/31/14		Total Value at 12/31/15		Purchases		Sales Proceeds		Dividend Income		Net Realized Gain/(Loss)
Penn Series Money Market Fund	$	3,852,277	$	3,014,197	$	526,970	$	1,365,050	$	279		—
Penn Series Limited Maturity Bond Fund		14,124,897		12,659,521		1,824,028		3,395,643		—		101,646
Penn Series Quality Bond Fund		26,323,672		26,524,710		5,389,953		5,270,423		—		262,963
Penn Series High Yield Bond Fund		5,136,326		4,219,840		827,280		1,634,189		—		315,050
Penn Series Flexibly Managed Fund		5,135,044		4,822,674		708,981		1,281,508		—		435,316
Penn Series Large Cap Growth Fund		1,284,081		—		71,281		1,329,804		—		271,220
Penn Series Large Cap Value Fund		1,284,081		1,808,503		905,735		365,200		—		53,631
Penn Series Large Core Value Fund		642,041		2,411,337		2,094,535		401,070		—		161,633
Penn Series Index 500 Fund		1,284,081		602,834		133,791		793,170		—		452,902
Penn Series Mid Cap Value Fund		1,284,082		600,956		143,891		1,336,134		—		383,522
Penn Series Mid Core Value Fund		642,041		1,205,669		737,334		193,767		—		72,213
Penn Series Developed International Index Fund		1,926,122		1,205,669		753,844		1,427,954		—		405,310
Penn Series International Equity Fund		1,284,082		1,808,503		811,979		364,621		—		113,277
	$	64,202,827	$	60,884,413	$	14,929,602	$	19,158,533	$	279	$	3,028,683

219

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Notes to Financial Statements — December 31, 2015

5 — PURCHASES AND SALES OF SECURITIES

During the year ended December 31, 2015, 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	$	38,637,938	$	35,895,486	$	226,887,015	$	263,522,957
Quality Bond Fund		139,874,667		161,678,518		591,442,089		575,031,482
High Yield Bond Fund		—		—		134,006,411		131,274,894
Flexibly Managed Fund		—		—		1,984,016,279		2,161,957,730
Balanced Fund		—		—		6,150,275		12,110,672
Large Growth Stock Fund		—		—		109,420,110		125,451,049
Large Cap Growth Fund		—		—		15,526,049		28,454,890
Large Core Growth Fund		—		—		148,296,645		163,046,798
Large Cap Value Fund		—		—		41,532,175		53,020,741
Large Core Value Fund		—		—		200,870,480		187,965,369
Index 500 Fund		—		—		11,926,979		25,170,882
Mid Cap Growth Fund		—		—		52,888,371		63,236,430
Mid Cap Value Fund		—		—		72,291,380		76,881,211
Mid Core Value Fund		—		—		67,886,548		66,401,575
SMID Cap Growth Fund		—		—		60,487,453		59,382,384
SMID Cap Value Fund		—		—		34,692,004		38,757,064
Small Cap Growth Fund		—		—		25,174,161		39,850,173
Small Cap Value Fund		—		—		110,392,554		115,120,054
Small Cap Index Fund		—		—		12,367,996		12,181,700
Developed International Index Fund		—		—		6,336,657		1,774,878
International Equity Fund		—		—		102,316,405		114,321,765
Emerging Markets Equity Fund		—		—		67,710,032		61,123,756
Real Estate Securities Fund		—		—		82,706,729		87,943,428
Aggressive Allocation Fund		—		—		15,492,947		18,523,972
Moderately Aggressive Allocation Fund		—		—		49,658,848		58,931,423
Moderate Allocation Fund		—		—		59,993,372		81,646,408
Moderately Conservative Allocation Fund		—		—		24,307,213		30,186,608
Conservative Allocation Fund		—		—		14,929,324		19,158,532

6 — FEDERAL INCOME TAXES

Each Fund has qualified and intends to continue to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code for federal income tax purposes. As such, each Fund is required to distribute all investment company taxable income and net capital gains, if any, to its shareholders in order to avoid the imposition of entity-level federal, state, and local income taxes as well as an entity-level excise tax. Except for the Money Market Fund, to the extent any Fund had undistributed investment company taxable income and net capital gains at December 31, 2015, 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.

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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, 2015, primarily attributable to consent dividends, reclass of capital gains tax income recognized from pass-through entities, the disallowance of net operating losses, the tax treatment of Passive Foreign Investment Companies, the redesignation of dividend distributions, the reclassification of net foreign currency exchange gains or losses and the reclassification of paydown losses were reclassed between the following accounts:

	Increase (Decrease) Undistributed Net Investment Income			Increase (Decrease) Accumulated Net Realized Gains			Increase (Decrease) Paid-in Capital
Limited Maturity Bond	$	(2,343,752	)	$	(569,803	)	$	2,913,555
Quality Bond Fund		(13,607,990	)		(10,955,844	)		24,563,834
High Yield Bond Fund		(10,964,355	)		(878,211	)		11,842,566
Flexibly Managed Fund		(35,213,788	)		(298,595,307	)		333,809,095
Balanced Fund		170,857			(3,201,498	)		3,030,641
Large Growth Stock Fund		903,525			(32,479,610	)		31,576,085
Large Cap Growth Fund		(201,719	)		(5,035,581	)		5,237,300
Large Core Growth Fund		243,051			(10,422,157	)		10,179,106
Large Cap Value Fund		(2,607,630	)		(10,201,067	)		12,808,697
Large Core Value Fund		(2,942,370	)		(18,600,355	)		21,542,725
Index 500 Fund		(7,345,117	)		(7,396,578	)		14,741,695
Mid Cap Growth Fund		36,713			(6,035,586	)		5,998,873
Mid Cap Value Fund		(1,537,384	)		(28,952,832	)		30,490,216
Mid Core Value Fund		(933,784	)		(7,930,300	)		8,864,084
SMID Cap Growth Fund		427,475			(4,832,551	)		4,405,076
SMID Cap Value Fund		16,640			(5,307,397	)		5,290,757
Small Cap Growth Fund		471,098			(8,576,331	)		8,105,233
Small Cap Value Fund		(1,478,773	)		(13,868,118	)		15,346,891
Small Cap Index Fund		(462,337	)		(3,589,917	)		4,052,254
Developed International Index Fund		(2,163,776	)		41,291			2,122,485
International Equity Fund		(4,625,165	)		(517,478	)		5,142,643
Emerging Markets Equity Fund		(347,030	)		(80,801	)		427,831
Real Estate Securities Fund		(1,962,589	)		(13,407,348	)		15,369,937
Aggressive Allocation Fund		219,440			(4,836,094	)		4,616,654
Moderately Aggressive Allocation Fund		803,621			(16,990,837	)		16,187,216
Moderate Allocation Fund		1,138,722			(20,357,981	)		19,219,259
Moderalely Conservative Allocation Fund		352,296			(5,316,442	)		4,964,146
Conservative Allocation Fund		214,379			(2,896,979	)		2,682,600

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

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Tax character of distributions:

The tax character of dividends and distributions declared and paid or deemed distributed during the years ended December 31, 2015 and 2014 were as follows:

	Ordinary Income and Short-Term Capital Gains				Long-Term Capital Gains				Total
			2014				2014				2014
Money Market Fund	$	11,728	$	13,590	$	—	$	—	$	11,728	$	13,590
Limited Maturity Bond Fund		2,913,555		1,732,444		—		519,805		2,913,555		2,252,249
Quality Bond Fund		18,851,832		13,678,658		5,712,002		6,445,953		24,563,834		20,124,611
High Yield Bond Fund		11,842,565		12,356,614		—		598,520		11,842,565		12,955,134
Flexibly Managed Fund		83,145,583		117,363,812		250,663,512		253,958,645		333,809,095		371,322,457
Balanced Fund		1,736,535		1,447,124		4,308,714		2,025,883		6,045,249		3,473,007
Large Growth Stock Fund		—		1,456,751		32,483,632		35,677,081		32,483,632		37,133,832
Large Cap Growth Fund		215,596		1,359,763		5,021,704		1,871,834		5,237,300		3,231,597
Large Core Growth Fund		—		446,222		10,422,157		16,678,687		10,422,157		17,124,909
Large Cap Value Fund		2,607,630		7,987,988		10,201,067		8,122,500		12,808,697		16,110,488
Large Core Value Fund		5,810,205		2,444,387		15,732,524		30,222,954		21,542,729		32,667,341
Index 500 Fund		7,365,475		6,829,576		7,376,220		—		14,741,695		6,829,576
Mid Cap Growth Fund		3,579,096		7,378,374		2,419,772		21,812,142		5,998,868		29,190,516
Mid Cap Value Fund		3,582,629		3,225,211		26,907,782		14,313,536		30,490,411		17,538,747
Mid Core Value Fund		3,527,900		5,488,235		5,336,338		3,579,477		8,864,238		9,067,712
SMID Cap Growth Fund		—		—		4,762,153		7,095,131		4,762,153		7,095,131
SMID Cap Value Fund		110,136		1,251,210		5,180,621		6,958,220		5,290,757		8,209,430
Small Cap Growth Fund		213,113		2,658,817		7,892,122		2,483,401		8,105,235		5,142,218
Small Cap Value Fund		1,957,827		6,601,797		13,389,064		20,979,162		15,346,891		27,580,959
Small Cap Index Fund		733,578		872,014		3,318,676		3,192,013		4,052,254		4,064,027
Developed International Index Fund		2,122,485		3,193,128		—		—		2,122,485		3,193,128
International Equity Fund		5,142,643		9,095,358		—		—		5,142,643		9,095,358
Emerging Markets Equity Fund		427,831		473,407		—		—		427,831		473,407
Real Estate Securities Fund		4,122,694		3,376,987		11,247,243		8,332,542		15,369,937		11,709,529
Aggressive Allocation Fund		886,647		1,468,137		7,798,589		4,096,219		8,685,236		5,564,356
Moderately Aggressive Allocation Fund		4,394,203		6,147,670		27,334,592		13,387,233		31,728,795		19,534,903
Moderate Allocation Fund		7,572,549		8,627,023		31,886,947		18,454,127		39,459,496		27,081,150
Moderately Conservative Allocation Fund		2,399,500		2,549,865		8,096,434		5,487,908		10,495,934		8,037,773
Conservative Allocation Fund		1,542,898		1,419,532		3,883,603		1,835,238		5,426,501		3,254,770

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

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Capital loss carryforwards:

At December 31, 2015, 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,
	2017		2018		Total
International Equity Fund		—	$	5,284,998	$	5,284,998
Emerging Markets Equity Fund	$	4,867,907		—		4,867,907

At December 31, 2015, 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
High Yield Bond Fund	$	4,636,015	$	1,271,754
Developed International Index Fund		172,355		2,631,345
International Equity Fund		1,942,102		—
Emerging Markets Equity Fund		4,872,058		2,999,643

During the year ended December 31, 2015, the following Fund utilized capital loss carryforwards to offset realized capital gains for federal income tax purposes in the following approximate amounts:

Index 500 Fund $ 2,434,673

Qualified Late-Year Losses:

The following Funds elected to treat the qualified late-year losses as having occurred on January 1, 2016:

	Late-Year Ordinary Losses		Late-Year Capital Losses
Limited Maturity Bond Fund		—	$	467,149
High Yield Bond Fund		—		2,008,812
Mid Cap Growth Fund	$	312		—
Mid Cap Value Fund		—		2,641,763
SMID Cap Growth Fund		—		583,236
SMID Cap Value Fund		—		74,488
Developed International Index Fund		25,856		66,729
International Equity Fund		168,175		—
Emerging Markets Equity Fund		—		118,627

Tax cost of securities:

At June 30, 2015, 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, 2015 were as follows:

	Federal Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Money Market Fund	$	133,297,998		—		—			—
Limited Maturity Bond Fund		188,380,009	$	131,128	$	(1,772,630	)	$	(1,641,502	)
Quality Bond Fund		548,036,595		3,459,658		(13,125,759	)		(9,666,101	)
High Yield Bond Fund		182,654,280		1,744,781		(15,482,469	)		(13,737,688	)
Flexibly Managed Fund		3,030,310,782		382,223,165		(92,292,201	)		289,930,964

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	Federal Tax Cost		Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Balanced Fund	$	50,182,233	$	30,223,064	$	(3,718,303	)	$	26,504,761
Large Growth Stock Fund		215,143,247		91,431,909		(5,365,698	)		86,066,211
Large Cap Growth Fund		39,470,246		7,013,040		(2,386,441	)		4,626,599
Large Core Growth Fund		90,192,347		24,088,891		(1,927,070	)		22,161,821
Large Cap Value Fund		190,027,987		36,999,610		(17,837,078	)		19,162,532
Large Core Value Fund		191,047,032		20,391,298		(8,926,500	)		11,464,798
Index 500 Fund		265,129,731		180,455,293		(19,596,753	)		160,858,540
Mid Cap Growth Fund		113,755,621		12,673,825		(14,684,358	)		(2,010,533	)
Mid Cap Value Fund		164,478,880		22,143,087		(22,118,880	)		24,207
Mid Core Value Fund		91,690,264		5,839,338		(6,406,368	)		(567,030	)
SMID Cap Growth Fund		50,713,502		7,573,595		(2,370,886	)		5,202,709
SMID Cap Value Fund		62,551,155		10,007,081		(5,175,746	)		4,831,335
Small Cap Growth Fund		78,618,663		20,355,941		(7,080,406	)		13,275,535
Small Cap Value Fund		203,536,336		37,334,304		(14,752,689	)		22,581,615
Small Cap Index Fund		53,793,711		19,456,757		(7,790,726	)		11,666,031
Developed International Index Fund		84,032,380		31,738,521		(18,856,927	)		12,881,594
International Equity Fund		301,194,207		105,787,022		(30,386,396	)		75,400,626
Emerging Markets Equity Fund		133,475,418		28,664,392		(24,167,307	)		4,497,085
Real Estate Securities Fund		123,531,689		18,690,926		(3,366,409	)		15,324,517
Aggressive Allocation Fund		45,147,351		16,788,129		(714,157	)		16,073,972
Moderately Aggressive Allocation Fund		174,232,734		67,228,668		(2,404,978	)		64,823,690
Moderate Allocation Fund		258,222,856		85,344,627		(1,646,583	)		83,698,044
Moderately Conservative Allocation Fund		80,772,799		22,041,985		(587,990	)		21,453,995
Conservative Allocation Fund		51,472,671		10,009,222		(278,611	)		9,730,611

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.

It is the Fund’s policy to continue to comply with the requirements of the Internal Revenue Code under Subchapter M, applicable to regulated investment companies, and to distribute all of its taxable income, including any net realized gains on investments, to its shareholders. Therefore, no provision is made for federal income taxes.

Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

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.

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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 Limited Maturity Bond, Quality Bond, Index 500, Small Cap Index and Developed International Index Funds have entered into futures contracts during the year ended December 31, 2015. Open futures contracts held by the Limited Maturity Bond, Quality Bond, Index 500, Developed International Index and Small Cap Index Funds at December 31, 2015 were as follows:

Fund	Type	Futures Contact	Expiration Date		Number Of Contracts			Units per Contract		Closing Price		Unrealized Appreciation (Depreciation)
Limited Maturity Bond	Buy/Long	US Treasury Note		3/31/2016		300			1,000	$	109	$	(98,436	)
Limited Maturity Bond	Sell/Short	US Treasury Note		3/31/2016		(60	)		1,000		118		16,406
Limited Maturity Bond	Sell/Short	US Treasury Note		3/31/2016		(20	)		1,000		126		7,343
												$	(74,687	)
Quality Bond	Buy/Long	US Treasury Note		3/31/2016		70			1,000		118		(19,688	)
Quality Bond	Buy/Long	US Treasury Note		3/31/2016		100			1,000		118		(28,907	)
Quality Bond	Buy/Long	US Treasury Note		3/31/2016		50			2,000		109		(13,281	)
Quality Bond	Sell/Short	US Treasury Note		3/31/2016		(210	)		1,000		126		77,110
Quality Bond	Sell/Short	US Treasury Long Bond		3/21/2016		(15	)		1,000		154		22,500
Quality Bond	Sell/Short	US Treasury Ultra Bond		3/21/2016		(95	)		1,000		159		(89,062	)
												$	(51,328	)
Index 500	Buy/Long	E-Mini S&P 500 Index		3/14/2016		48			50		2,035		(4,293	)
												$	(4,293	)
Small Cap Index	Buy/Long	Russell 2000 Mini Index		3/18/2016		11			100		1,132		26,266
												$	26,266
Developed International Index	Buy/Long	E-Mini MSCI EAFE Index		3/18/2016		15			50		1,698		22,091
												$	22,091

The total market value of futures contracts held in the Limited Maturity Bond, Quality Bond, Index 500, Developed International Index and Small Cap Index Funds as of December 31, 2015 are classified as Level 1.

Options — An option establishes a contract between two parties concerning the buying or selling of an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in some specific transaction on the

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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 Mid Cap Growth Funds 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, 2015 for the Flexibly Managed and Mid Cap Growth Funds were as follows:

Flexibly Managed Fund	Number of Contracts/ Notional Amount			Premium Received
Options outstanding at December 31, 2014		49,048		$	13,029,989
Options written		32,071			9,462,789
Options repurchased		(20,228	)		(6,010,312	)
Options expired		(10,038	)		(3,323,652	)
Options exercised		(20,476	)		(4,214,038	)
Options split		1,059			—
Options outstanding at December 31, 2015		31,436		$	8,944,776

Mid Cap Growth Fund	Number of Contracts/ Notional Amount			Premium Received
Options outstanding at December 31, 2014		256		$	44,824
Options written		1,856			1,180,216
Options repurchased		(952	)		(677,844	)
Options expired		(877	)		(132,941	)
Options exercised		(209	)		(105,089	)
Options non-taxable merger exchanged in		74			309,166
Options non-taxable merger exchanged out		(74	)		(309,166	)
Options outstanding at December 31, 2015		74		$	309,166

The total market value of written options held in the Flexibly Managed and Mid Cap Growth Funds as of December 31, 2015 can be found 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.

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Notes to Financial Statements — December 31, 2015

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 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, 2015 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	Canadian Dollar	JP Morgan Chase		03/31/2016		38,000			1.38337	$	27,457		$	27,469		$	12
Sell	Canadian Dollar	BAML		03/31/2016		(206,704	)		1.38337		(150,512	)		(149,421	)		1,091
Sell	Canadian Dollar	BNYMellon		03/31/2016		(102,332	)		1.38337		(74,659	)		(73,973	)		686
Sell	Canadian Dollar	BNYMellon		03/31/2016		(31,000	)		1.38337		(22,206	)		(22,409	)		(203	)
Sell	Canadian Dollar	Royal Bank of Canada		03/31/2016		(154,400	)		1.38337		(113,584	)		(111,612	)		1,972
Sell	Euro	BNYMellon		03/15/2016		(111,798	)		0.92017		(122,548	)		(121,732	)		816
Sell	Euro	Citigroup		03/15/2016		(8,134,390	)		0.92017		(8,947,765	)		(8,857,206	)		90,559
Sell	Euro	Morgan Stanley		03/15/2016		(100,000	)		0.92017		(109,696	)		(108,886	)		810
Sell	Euro	State Street		03/15/2016		(106,542	)		0.92017		(116,639	)		(116,009	)		630
Buy	Pounds Sterling	BNYMellon		01/13/2016		9,625			0.67833		14,871			14,190			(681	)
Buy	Pounds Sterling	BNYMellon		01/13/2016		4,453			0.67833		6,625			6,565			(60	)
Sell	Pounds Sterling	BNYMellon		01/13/2016		(143,000	)		0.67833		(221,078	)		(210,820	)		10,258
Sell	Pounds Sterling	Credit Suisse		01/13/2016		(2,805,000	)		0.67833		(4,295,156	)		(4,135,309	)		159,847
Sell	Pounds Sterling	HSBC		01/13/2016		(100,000	)		0.67833		(151,790	)		(147,426	)		4,364
Sell	Swiss Francs	UBS		02/12/2016		(601,787	)		1.00160		(603,141	)		(601,932	)		1,209
	Total															$	271,310

Open forward foreign currency contracts held by the Mid Core Value Fund at December 31, 2015 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	JP Morgan Chase		01/29/2016		(1,905,734	)		1.38370	$	(1,366,803	)	$	(1,377,358	)	$	(10,555	)
Sell	Canadian Dollar	JP Morgan Chase		01/29/2016		(90,436	)		1.38370		(65,193	)		(65,362	)		(169	)
Sell	Euro	UBS		01/29/2016		(743,292	)		0.92017		(814,901	)		(808,352	)		6,549
Sell	Japanese Yen	Credit Suisse		01/29/2016		(40,506,985	)		120.19500		(335,245	)		(337,214	)		(1,969	)
	Total															$	(6,144	)

Open forward foreign currency contracts held by the Emerging Markets Equity Fund at December 31, 2015 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	Euro	UBS		01/21/2016		(3,579,169	)		0.92017	$	(3,911,602	)	$	(3,891,690	)	$	19,912
	Total															$	19,912

227

Penn Series Funds, Inc.

Notes to Financial Statements — December 31, 2015

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, 2015 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, 2015:

	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*
Interest rate contracts	Net unrealized appreciation in value of investments, futures contracts and foreign currency related items*	Net unrealized appreciation in value of investments, futures contracts and foreign currency contracts*
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, 2015:

	Asset Derivative Value						Liability Derivative Value
	Equity contracts		Foreign exchange contracts		Interest rate contracts		Equity contracts			Foreign exchange contracts			Interest rate contracts
Limited Maturity Bond Fund	$	—	$	—	$	23,749	$	—		$	—		$	(98,436	)
Quality Bond Fund		—		—		99,610		—			—			(150,938	)
High Yield Bond Fund		—		272,254		—		—			(944	)		—
Flexibly Managed Fund		—		—		—		(10,736,246	)		—			—
Index 500 Fund		—		—		—		(4,293	)		—			—
Mid Cap Growth Fund		—		—		—		(58,460	)		—			—
Mid Core Value Fund		—		6,549		—		—			(12,693	)		—
Small Cap Index Fund		26,266		—		—		—			—			—
Developed International Index Fund		22,091		—		—		—			—			—
Emerging Markets Equity Fund		—		19,912		—		—			—			—

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

228

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Notes to Financial Statements — December 31, 2015

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 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, 2015:

		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 Fund
Bank of New York Mellon	Fx Letter	$	11,760	$	(944	)	$	10,816			—	$	10,816
Bank of America Merrill Lynch	Fx Letter		1,091		—			1,091			—		1,091
Citigroup	Fx Letter		90,559		—			90,559			—		90,559
Credit Suisse First Boston	Fx Letter		159,847		—			159,847			—		159,847
HSBC	Fx Letter		4,364		—			4,364			—		4,364
JPMorgan Chase	Fx Letter		12		—			12			—		12
Morgan Stanley & Co	Fx Letter		810		—			810			—		810
Royal Bank of Canada	Fx Letter		1,972		—			1,972			—		1,972
State Street	Fx Letter		630		—			630			—		630
UBS	Fx Letter		1,209		—			1,209			—		1,209
Total			272,254		(944	)		271,310			—		271,310
Flexibly Managed Fund
Bank of America Merrill Lynch	ISDA		—		(29,905	)		(29,905	)		—		—
Citigroup Global Markets	ISDA		—		(5,187,669	)		(5,187,669	)		—		—
Deutsche Bank	ISDA		—		(2,343,975	)		(2,343,975	)		—		—
Morgan Stanley & Co	ISDA		—		(3,174,697	)		(3,174,697	)		—		—
Exchange Traded			—		—			—			—		—
Total			—		(10,736,246	)		(10,736,246	)		—		—

229

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Notes to Financial Statements — December 31, 2015

		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)
Mid Cap Growth
Deutsche Bank	ISDA	$	—	$	(48,460	)	$	(48,460	)	$	—	$	—
Mid Core Value Fund
Credit Suisse	Fx Letter		—		(1,969	)		(1,969	)		—		—
JPMorgan Chase	Fx Letter		—		(10,724	)		(10,724	)		—		—
UBS	Fx Letter		6,549		—			6,549			—		—
Total			6,549		(12,693	)		(6,144	)		—		—
Emerging Markets Equity Fund
UBS	Fx Letter		19,912		—			19,912			—		19,912

The following is a summary of the location of derivatives on the Funds’ Statements of Operations as of December 31, 2015:

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 futures contracts
	Change in net unrealized appreciation (depreciation) of written options
Interest rate contracts	Net realized gain (loss) on futures contracts
	Change in net unrealized appreciation (depreciation) of futures contracts
Foreign currency contracts	Net realized foreign currency exchange gain (loss)
	Change in net unrealized appreciation (depreciation) of investments and foreign currency related items

	Realized Gain (Loss) on Derivatives Recognized in Income
Portfolio	Equity contracts			Foreign currency contracts			Interest rate contracts
Limited Maturity Bond Fund	$	—		$	—		$	(324,813	)
Quality Bond Fund		—			—			453,535
High Yield Bond Fund		—			731,339			—
Flexibly Managed Fund		—			—			—
Index 500 Fund		336,718			—			—
Mid Cap Growth Fund		(118,982	)		—			—
Mid Core Value Fund		—			436,520			—
Small Cap Index Fund		(130,343	)		—			—
Developed International Index Fund		(29,042	)		(48,768	)		—
Emerging Markets Equity Fund		—			85,163			—

230

Penn Series Funds, Inc.

Notes to Financial Statements — December 31, 2015

	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Portfolio	Equity contracts			Foreign currency contracts			Interest rate contracts
Limited Maturity Bond Fund	$	—		$	—		$	(51,250	)
Quality Bond Fund		—			—			625,860
High Yield Bond Fund		—			(97,483	)		—
Flexibly Managed Fund		8,462,912			—			—
Index 500 Fund		(351,802	)		—			—
Mid Cap Growth Fund		233,582			—			—
Mid Core Value Fund		—			(20,722	)		—
Small Cap Index Fund		31,132			—			—
Developed International Index Fund		52,511			—			—
Emerging Markets Equity Fund		—			(121,459	)		—

The table below summarizes the average balance of derivative holdings by Fund during the year ended December 31, 2015. 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 (Notional Value) Long		Futures Contracts (Notional Value) Short		Purchased Options (Average Notional Cost)		Written Options (Premium Received)
Limited Maturity Bond Fund	$	—		$	43,309,500	$	12,015,481	$	—	$	—
Quality Bond Fund		—			30,732,588		78,985,281		—		—
High Yield Bond Fund		(14,380,663	)		—		—		—		—
Flexibly Managed Fund		—			—		—		—		(8,063,064	)
Index 500 Fund		—			8,097,796		—		—		—
Mid Cap Growth Fund		—			—		—		51,563		(146,934	)
Mid Core Value Fund		(3,095,407	)		—		—		—		—
Small Cap Index Fund		—			1,056,046		—		—		—
Developed International Index Fund		—			2,714,255		—		—		—
Emerging Markets Equity Fund		(5,878,096	)		—		—		—		—

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 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

231

Penn Series Funds, Inc.

Notes to Financial Statements — December 31, 2015

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 — NEW REGULATORY MATTERS

On July 23, 2014, the Securities and Exchange Commission voted to amend the rules under the Investment Company Act of 1940, as amended, which currently govern the operations of the Money Market Fund (the “MMF”). The most significant change resulting from these amendments is a requirement that institutional, non-government (prime and municipal) money market funds transact fund shares based on a “floating” market-based NAV. Retail money market funds (funds designed to ensure all beneficial owners are natural persons) and government money market funds (funds that invest at least 99.5% of their assets in cash, government securities and/or repurchase agreements collateralized by government securities) may continue to transact shares at an a stable $1.00 NAV calculated using the amortized cost valuation method. Among additional disclosure and other requirements, the amendments will also permit a money market fund, or, in certain circumstances, require a money market fund (other than a government money market fund) to impose liquidity fees on all redemptions, and permit a money market fund to limit (or gate) redemptions for up to ten business days in any 90-day period. The amendments have staggered compliance dates. The majority of these amendments will impact the MMF beginning on October 14, 2016. Effective May 1, 2016, the Board has approved changes to the MMF’s investment objective and principal investment strategies to enable the MMF to operate as a government money market fund. As a government money market fund, MMF will be allowed to continue to transact at a constant net asset value. To qualify as a government money market fund, MMF must invest at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are “collateralized fully” (i.e., backed by cash or U.S. government securities). Accordingly, MMF’s revised investment objective and principal investment strategies will require that MMF invest 99.5% or more of its total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized fully by cash and/or U.S. government securities. To keep transaction costs to a minimum, MMF has been gradually transitioning its portfolio holdings from its current investment strategy to its new investment strategy and expects to be invested in accordance with its new investment strategy on or before May 1, 2016.

11 — SUBSEQUENT EVENTS

Except as disclosed below, Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that no additional subsequent events require recognition or disclosure in the financial statements.

Effective January 1, 2016, Penn Series entered into new and revised service provider arrangements with PMAM, Penn Mutual, and BNY Mellon related to the administration, accounting, and shareholder services, among other services, provided to the Funds. Each of the Funds will pay Penn Mutual 0.01% of the Fund’s average daily net assets under a revised administrative and corporate services agreement and 0.09% under a new shareholder servicing agreement. Each of the Funds will pay PMAM 0.02% of the Fund’s average daily net assets under a new co-administrative agreement. Each of the Funds will pay BNY Mellon approximately 0.01% of the Fund’s average daily net assets for additional services under a revised fund administration and accounting agreement. These new and revised service provider arrangements are expected to result in an overall two basis point reduction in the “Other Expenses” paid by the Funds for the fiscal year ending December 31, 2016.

232

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), including the schedules of investments, as of December 31, 2015, 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, 2015, 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 the Penn Series Funds, Inc. as of December 31, 2015, 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 24, 2016

233

Penn Series Funds, Inc.

December 31, 2015

Tax Information (unaudited)

Each Fund reports the following amounts distributed during the year ended December 31, 2015 as capital gain dividends:

Fund	Long-Term Capital Gain
Quality Bond Fund	$	5,712,002
Flexibly Managed Fund		250,663,512
Balanced Fund		4,308,714
Large Growth Stock Fund		32,483,632
Large Cap Growth Fund		5,021,704
Large Core Growth Fund		10,422,157
Large Cap Value Fund		10,201,067
Large Core Value Fund		15,732,524
Index 500 Fund		7,376,220
Mid Cap Growth Fund		2,419,772
Mid Cap Value Fund		26,907,782
Mid Core Value Fund		5,336,338
SMID Cap Growth Fund		4,762,153
SMID Cap Value Fund		5,180,621
Small Cap Growth Fund		7,892,122
Small Cap Value Fund		13,389,064
Small Cap Index Fund		3,318,676
Real Estate Securities Fund		11,247,243
Aggressive Allocation Fund		7,798,589
Moderately Aggressive Allocation Fund		27,334,592
Moderate Allocation Fund		31,886,947
Moderately Conservative Allocation Fund		8,096,434
Conservative Allocation Fund		3,883,603

Each Fund reports the following percentages of ordinary income dividend paid during the year ended December 31, 2015 as being eligible for the dividends received deduction available to corporate shareholders:

Fund
High Yield Bond Fund	0.74	%
Flexibly Managed Fund	26.72	%
Balanced Fund	46.43	%
Large Cap Growth Fund	100.00	%
Large Cap Value Fund	100.00	%
Large Core Value Fund	60.59	%
Index 500 Fund	100.00	%
Mid Cap Growth Fund	27.97	%
Mid Cap Value Fund	73.64	%
Mid Core Value Fund	46.06	%
SMID Cap Value Fund	100.00	%
Small Cap Growth Fund	100.00	%
Small Cap Value Fund	100.00	%
Small Cap Index Fund	86.01	%
International Equity Fund	15.66	%
Emerging Markets Equity Fund	6.59	%
Real Estate Securities Fund	1.33	%
Aggressive Allocation Fund	49.94	%
Moderately Aggressive Allocation Fund	34.25	%
Moderate Allocation Fund	23.08	%
Moderately Conservative Allocation Fund	15.81	%
Conservative Allocation Fund	9.37	%

234

Penn Series Funds, Inc.

December 31, 2015

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 23, 2015. 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, 2015 is available on the Fund’s website at http://www.pennmutual.com and on the SEC’s website at http://www.sec.gov.

235

Penn Series Fund Management (Unaudited)

Name and Year of Birth	Position with the Company; Term of Office and Length of Time Served	Principal Occupation During Past 5 Years	Number of Funds Overseen by the Director		Other Directorships Held by Director During Past 5 Years
INDEPENDENT DIRECTORS†
Marie K. Karpinski (1949)*	Director; No set term; served since 2015.	Retired (2010 – Present).		29	None.
Joanne B. Mack (1946)*	Director; No set term; served since 2013.	Vice President – Financial Services Consulting, Trianz (2012 – 2013); Management Consultant, self-employed (2009 – 2012; 2013 – Present).		29	None.
Archie C. MacKinlay (1955)*	Director; No set term; served since 2010.	Professor of Finance, Wharton School, University of Pennsylvania (1984 – Present).		29	None.
Rebecca C. Matthias (1953)*	Director; No set term; served since 2010.	Retired (2010 – Present); President, Destination Maternity Corporation (clothing) (1982 – 2010).		29	Director, CSS Industries.
INTERESTED DIRECTORS
Eileen C. McDonnell (1962)*	Director and Chairperson of the Board; No set term; served since 2010.	Chief Executive Officer (2011 – Present), President (2010 – 2015), Chairperson of the Board (2013 – Present), Executive Vice President and Chief Marketing Officer (2008 – 2010), Penn Mutual; Director, PMAM (2010 – Present); President and Director (2010 – Present), Chairperson of the Board (2011 – Present), PIA.		29	Director, UHS of Delaware, Inc.
David B. Pudlin (1949)*	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.

Name and Year of Birth	Position with the Company; Term of Office and Length of Time Served	Principal Occupation During Past 5 Years
OFFICERS
David M. O’Malley (1974)*	President; One year; served since 2014.	Chairperson and Chief Executive Officer, PMAM (2014 – Present); President and Chief Operating Officer (Jan. 2016 – Present), Chief Operating Officer (2013 – 2015), Chief Financial Officer (2010 – 2013), Executive Vice President (2009 – 2013), Penn Mutual.
Steven Viola (1975)*	Treasurer One year; served since 2015.	Senior Fund Accounting Analyst, PMAM (Jan. 2016 – Present); Senior Accountant, Penn Mutual (2005 – 2015).
David S. Williams (1967)*	Assistant Treasurer; One year; served since 2015.	Investment Accounting Manager, PMAM (Jan. 2016 – Present); Investment Accounting Manager, Penn Mutual (1998 – 2015).
Franklin L. Best, Jr. (1945)*	Secretary; One year; served since 2012.	Secretary, PMAM (2012 – Present); Vice President & General Counsel Insurance Operations & Corporate Secretary (2011 – Present), Managing Corporate Counsel and Secretary (2004 – 2011), Penn Mutual.

236

Penn Series Funds Management (Unaudited)

Name and Year of Birth	Position with the Company; Term of Office and Length of Time Served	Principal Occupation During Past 5 Years
Victoria Robinson (1965)*	Chief Compliance Officer One year; served since 2014.	Chief Compliance Officer, PMAM (2008 – Present); Assistant Vice President, Penn Mutual (2010 – 2015).
Jessica Swarr (1980)	Tax Director One year; served since 2014.	Tax Manager (2008 – 2014) and Corporate Tax Director (2014 – Present), Penn Mutual.
Dominic Russo (1983)*	Anti-Money Laundering Officer One year; served since 2015.	Director, Insurance & Advertising Compliance (2014 – Present); Manager, Annuity New Business (2011 – 2014); Senior Team Leader, Annuity Services (2011); Senior Team Leader, Life Services (2008 – 2011), Penn Mutual.

* The address of each Officer 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.

237

PennMutual® The Penn Mutual Life Insurance Company The Penn Insurance and Annuity Company Our Noble Purpose Since 1847, Penn Mutual has been driven by our noble purpose — to create a world of possibilities, one individual, one family and one small business at a time. As an original pioneer of mutual life insurance in America, we believe that purchasing life insurance is the most protective, responsible and rewarding action a person can take to build a solid foundation today and create a brighter future for generations to come. © 2016 The Penn Mutual Life Insurance Company and The Penn Insurance & Annuity Company, Philadelphia, PA 19172 www.pennmutual.com PM8081 02/16

Item 2. Code of Ethics.

(a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

(d) The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

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.

• Registrant may incorporate the following information by reference, if this information has been disclosed in the registrant’s definitive proxy statement or definitive information statement. The proxy statement or information statement must be filed no later than 120 days after the end of the fiscal year covered by the Annual Report.

Audit Fees

(a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $470,000 for 2015 and $437,000 for 2014.

Audit-Related Fees

(b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2015 and $0 for 2014. [This represents the review of the semi-annual financial statements.]

Tax Fees

(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $0 for 2015 and $0 for 2014.

All Other Fees

(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2015 and $0 for 2014.

(e) Audit Committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

(1) Pre-Approval of Audit and Non-Audit Services Provided to the Funds of the Penn Series Funds, Inc. To the extent required by applicable law, pre-approval by the Audit Committee of the Penn Series Funds, Inc. (the “Company”) Board of Directors is required for all audit and permissible non-audit services rendered to the Company and all permissible non-audit services rendered to the investment adviser to the Company, Penn Mutual Asset Management, Inc. (“PMAM”), or any other service providers controlling, controlled by or under common control with PMAM that provide ongoing services to the Company (“Related Entities”) that relate directly to the operations and financial reporting of the Company’s Funds. The Audit and Non-Audit Services Pre-Approval Policy (the “Policy”) adopted by the Audit Committee sets forth the procedures and the conditions pursuant to which services performed by an independent auditor for the Company may be pre-approved. Services may be pre-approved specifically by the Audit Committee as a whole or by the Audit Committee Chairman or other member of the Audit Committee as designated by the Audit Committee. The Policy sets forth the audit, audit-related, tax and all other services that are subject to general or specific pre-approval by the Audit Committee subject to specified expense limitations. The Policy provides that the Audit Committee will annually review and pre-approve the services that may be provided by the independent auditor pursuant to the pre-approval provision of the Policy. Pursuant to the Policy, the Audit Committee will consider whether the services provided by an independent auditor are consistent with the Securities and Exchange Commission’s rules and related guidance concerning auditor independence.

(2) No services included in (b)-(d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable.

(g) The 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 was $0 for 2015 and $0 for 2014.

(h) Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

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 and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) 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) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.906 CERT.

(12.other) Not applicable.

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.

(Registrant)                                Penn Series Funds, Inc.

By (Signature and Title)*	/s/ David M. O’Malley
	David M. O’Malley, President
	(principal executive officer)

Date                              3/7/2016

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.

By (Signature and Title)*	/s/ David M. O’Malley
	David M. O’Malley, President
	(principal executive officer)

Date                              3/7/2016

By (Signature and Title)*	/s/ Steven Viola
	Steven Viola, Treasurer
	(principal financial officer)

Date                              3/7/2016

* Print the name and title of each signing officer under his or her signature.