As filed with the Securities and Exchange Commission on [date]
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 811-21210
Alpine Income Trust
(Exact name of registrant as specified in charter)
615 East Michigan Street
3rd Floor
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)
Samuel A. Lieber
Alpine Woods Capital Investors, LLC
2500 Westchester Avenue, Suite 215
Purchase, NY 10577
(Name and address of agent for service)
1-888-785-5578
Registrant’s telephone number, including area code
Date of fiscal year end: 10/31/2007
Date of reporting period: 10/31/2007
Item 1. Report to Stockholders.
EQUITY & INCOME FUNDS
Annual Report | ’07
|
|
|
Alpine Dynamic Balance Fund | Alpine Dynamic Financial Services Fund | Alpine Municipal Money Market Fund |
Alpine Dynamic Dividend Fund | Alpine Dynamic Innovators Fund | Alpine Ultra Short Tax Optimized Income Fund |
|
|
| |
| OCTOBER 31, 2007 |
|
TABLE OF CONTENTS |
|
|
|
|
|
|
|
|
FUND MANAGER REPORTS |
|
|
|
|
|
|
|
| 4 |
| |
|
|
|
|
| 10 |
| |
|
|
|
|
| 13 |
| |
|
|
|
|
| 17 |
| |
|
|
|
|
FIXED INCOME MANAGER REPORTS |
|
|
|
|
|
|
|
| 22 |
| |
|
|
|
|
| 24 |
| |
|
|
|
|
| 28 |
| |
|
|
|
|
| 49 |
| |
|
|
|
|
| 51 |
| |
|
|
|
|
| 53 |
| |
|
|
|
|
| 54 |
| |
|
|
|
|
| 60 |
| |
|
|
|
|
| 68 |
| |
|
|
|
|
| 76 |
| |
|
|
|
|
| 77 |
|
|
|
|
|
|
|
|
|
| Alpine’s Investment Outlook |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dear Investor:
This has been a challenging year as the tone of both investor sentiment and confidence have turned from minimum to maximum risk aversion. The prospects for our economy appears less certain at this stage of the business cycle than it has for several years, even though GDP growth ranges from stable to strong abroad. The economic coupling between our domestic economy and those abroad appears looser than during recent cycles. While trade is a major part of the global glue which connects economies, we see growing importance in investment capital transfers in this era of great global financial liquidity. Alpine’s managers believe that the next year could initiate a period of transition from an uncertain world view toward events and more stable trends which could help re-price risk and enhance visibility of investment cash flows.
The subprime mortgage collapse has revealed structural weakness in parts of our financial system and unearthed poorly structured investment funds which were inappropriately sold by Wall Street. This has created a crisis of confidence in both the credit rating agencies and guarantors upon whom the market has relied for valuations. The market has lowered valuations of both issuers and holders of mortgage and asset backed securities. Banks, forced to hold these securities are now stingy lenders. In turn, this has led to fears of a forced deleveraging of the economy, if not a credit crunch which might induce a recession. We are not convinced that a recession is imminent, but recognize elevated risks.
The still vast global liquidity will likely continue to be focused on companies, industries, countries and regions where capital investment can generate attractive returns. The falling dollar has made American assets and products 10 to 30 percent cheaper for much of the world than they were a year ago. Thus, our exports have increased, as has tourism here. Barring a recession, the dollar may not be as weak in 2008 as in recent years, even though many countries are beginning to focus on more broadly diversifying their foreign exchange reserves away from the U.S. dollar. Nonetheless, the long-term trend of capital flowing
from retirement funds and mature economies toward emerging regions with massive requirements for fixed investment in buildings, infrastructure and equipment to support and sustain business and employment growth should continue.
The major opportunity for U.S. investors participating in global investing has only been recognized over the past few years. The U.N. published a report on population trends and urbanization several months ago, forecasting that two-thirds of the world’s population will be living in large cities by 2050. This compares with roughly half today. The bulk of this growth is projected for Asia and Latin America. Countries in these regions must do all that they can to provide for the growth of the middle class lest these megalopolises become slums and breeding grounds for political and social instability. This may competitively pressure wages relative to the U.S., but such competition should help contain global inflation. Enhanced productivity is another force which lowers inflation, and this can be stimulated by innovation, which has long been a driver of our economic growth. Globally, a growing emphasis on education from grade schools through advanced degrees suggests more innovation, as well as competition. Thus, Alpine foresees an expansion of innovation and entrepreneurial opportunities world wide for equity investors. This has underpinned Alpine’s broadening the international scope of our investment programs since the start of our first international fund in 1989 and our plans for the future.
We are confident that innovation should also aid the structured finance markets. Restructuring by the strategists of Wall Street must provide more transparency of underlying cash flows, facilitating better pricing of assets and enhanced marketability. Now, the first step is to stabilize the underlying problems in the mortgage markets and permit the rating agencies to revisit their criteria for valuation. Resolution of the ideological divide between those who favor government intervention to soften and stretch out the fallout from this crisis, versus others who favor the dispassionate
1
displacement of market adjustments, will likely be a key factor assessing the duration of this situation.
Our portfolios reflect a work in progress as we assess opportunities and risks in the marketplace today. Like prior periods of financial distress, a bottom will not be visible until after we pass it. So the current market psychology may overstate the risks to global capital market liquidity and, misprice prospects for equity investors. This can create opportunity for investors focused on long-term trends and valuations.
Sincerely,
Samuel A. Lieber
President, Alpine Mutual Funds
Mutual fund investing involves risk. Principal loss is possible.
Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g.depreciation) and interest expense to pretax income.
2
EQUITY MANAGER REPORTS
|
|
| Alpine Dynamic Dividend Fund |
|
|
| Alpine Dynamic Innovators Fund |
|
|
| Alpine Dynamic Financial Services Fund |
|
|
| Alpine Dynamic Balance Fund |
|
|
Value of a $10,000 Investment
Alpine Dynamic Dividend Fund
Moodyís Equity Growth Income Index
S&P 500 Index – Divs Reinvested
$22,000
$21,000
$20,000
$19,000
$18,000
$17,000
$16,000
$15,000
$14,000
$13,000
$12,000
$11,000
$10,000
$21,562
$15,467
$16,319
Sep 22
03
Oct 31
03
Apr 30
04
Oct 31
04
Apr 30
05
Oct 31
05
Apr 30
06
Oct 31
06
Apr 30
07
Oct 31
07
This chart represents a comparison of a hypothetical $10,000 investment in the Fund versus a similar investment in the Fund’s benchmark. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects the waiver and recovery of certain fees. Without the waiver and recovery of fees, the Fund’s total return would have differed.
Performance data quoted represents past performance and is not predictive of future results. Investment return and principal value of the Fund fluctuate, so that the shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than performance quoted and may be obtained by calling 888-785-5578. Performance data shown does not reflect the 1.00% redemption fee imposed on shares held for fewer than 60 days. If it did, total returns would be reduced.
The Moody’s Equity Mutual Fund Growth Income Index tracks a group of similar funds that typically correspond to standard classifications based on investment objectives and fundamental policies. The S&P 500 Index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The Lipper Equity Income Funds Average is an average of funds that seek relatively high current income and income growth through investing 60% or more of their respective portfolios in equities. The Moody’s Equity Mutual Fund Growth Income Index, the S&P Index and the Lipper Equity Income Funds Average are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as advisor fees. The performance for the Dynamic Dividend Fund reflects fees for these value-added services. Investors cannot directly invest in an index. Lipper Rankings for the periods shown are based on Fund total returns with dividends and distributions reinvested and do not reflect sales charges.
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Comparative Annualized Returns as of 10/31/07 |
|
|
|
|
|
|
|
|
|
|
|
| 1 Year |
| 3 Years |
| Since Inception |
| |||
Alpine Dynamic Dividend Fund |
| 21.66 | % |
| 17.32 | % |
| 20.57 | % |
|
Moody’s Equity Mutual Fund Growth Income Index |
| 14.87 | % |
| 12.27 | % |
| 11.20 | % |
|
S&P 500 Index |
| 14.56 | % |
| 13.16 | % |
| 12.67 | % |
|
Lipper Equity Income Fund Average |
| 13.49 | % |
| 13.95 | % |
| 14.05 | % |
|
Lipper Equity Income Fund Ranking |
| 20/255 |
| 29/194 |
| 2/152 |
| |||
4
|
|
Alpine Dynamic Dividend Fund | |
|
|
Portfolio Distributions* (Unaudited) | Top 10 Holdings* (Unaudited) |
|
|
Industrials 19.2%
Utilities 1.1%
Telecommunication 2.9%
Information Technology 5.9%
Health Care 6.8%
Consumer Staples 8.6%
Materials 9.3%
Energy 11.7%
Financial - Banks 16.9%
Consumer Discretionary 17.6%
|
|
|
|
1. | Macquarie Infrastructure Co. LLC | 2.29% |
|
2. | Man Group Plc | 2.16% |
|
3. | Temple-Inland, Inc. | 2.14% |
|
4. | Diamond Offshore Drilling, Inc. | 1.82% |
|
5. | PepsiCo, Inc. | 1.75% |
|
6. | Aircastle Ltd | 1.74% |
|
7. | United Technologies Corp. | 1.74% |
|
8. | America Movil SA de CV | 1.72% |
|
9. | Regal Entertainment |
|
|
| Group - Class A | 1.72% |
|
10. | Brookdale Sr Living, Inc. | 1.71% |
|
|
|
* | Portfolio holdings and sector distributions are as of 10/31/07 and are subject to change. Portfolio holdings are not recommendations to buy or sell any securities. Top 10 Holdings does not include short-term investments. |
|
Commentary |
Dear Investor:
The Alpine Dynamic Dividend Fund (ADVDX) completed its fourth full year of operation with very strong results, outperforming both the broad market averages and the Lipper Average of its equity income fund peers while also distributing a substantial dividend yield. ADVDX produced a total return of 21.66% for the fiscal year ended October 31, 2007 versus a 14.56% gain for the S&P 500 Stock Index and a 13.49% return for the Lipper Equity Income Fund Average for the same time period. Since inception on September 22, 2003, ADVDX has produced an annualized return of 20.57%, which compares favorably to a return of 12.67% for the S&P 500 Index and a 14.05% annualized return for the Lipper Equity Income Fund Average.
We believe the Alpine Dynamic Dividend Fund offers a distinct and balanced approach to optimizing both tax-qualified dividend income and long-term growth of capital. ADVDX ranked #2 based on total return out of 152 funds in the equity income category according to Lipper since inception on 9/22/03 through 10/31/07. The Fund ended the period on April 30, 2007 with total net assets of $1,499 million.
ADVDX increased its dividend payment by 11.0% in fiscal 2007, providing a very attractive dividend yield
The shareholders of the Alpine Dynamic Dividend Fund received $1.758 in ordinary dividend income in fiscal 2007, with 100% of the distribution estimated to be qualified for the maximum taxable rate of 15%. This represents an 11.0% increase versus the amount paid in fiscal 2006. Based on the Fund’s closing NAV per share
of $13.32 on 10/31/07, the $1.758 dividend payout represents a trailing twelve-month dividend yield of 13.20%. This high level of dividend income is unordinary among equity oriented funds.
ADVDX pays a regular monthly minimum dividend of $0.07 per share. In addition, in the third month of each quarter the Fund distributes excess dividend income that has been earned and accumulated during the quarter.
Our distinct investment approach combines three sub-strategies: Dividend Capture, Value, and Growth
ADVDX combines three research-driven investment strategies – Dividend Capture, Value, and Growth – to maximize the amount of distributed dividend income that is qualified for reduced Federal income tax rates and to identify companies with the potential for dividend increases and capital appreciation. The Fund also offers some global diversification since a portion of the portfolio is invested in international dividend-paying equities. We scan the globe looking for what we feel are the best dividend opportunities for our investors, employing a multi-cap, multi-sector, and multi-style investment approach.
Our “Dividend Capture Strategy” enhances the qualified dividend income generated by the Fund
We run a portion of our portfolio with a dividend capture strategy, where we invest in typically high dividend yielding stocks or in special situations where large cash balances are being returned to shareholders as one-time special dividends. We seek to enhance the
5
|
|
Alpine Dynamic Dividend Fund | |
dividend return of this portfolio by electively rotating a portion of our high yielding holdings after the 61-day ownership period required to obtain the maximum 15% dividend tax rate.
Another facet of our dividend capture strategy is our search for core, long term holdings in companies that historically have generated consistent strong free cash flow and regular large dividend distributions, usually above 5%. Two of our largest holdings, Macquarie Infrastructure Trust (MIC) with a 6.5% current yield, and Regal Entertainment with a 6.4% yield, are examples of this strategy.
MIC owns and operates infrastructure businesses in the U.S. including airport services, parking facilities, and refined products bulk tank terminals. These businesses have high barriers to entry, long-term contracts and strong cash flow, and are growing through acquisition. Regal is the largest theater owner in the U.S., generating 20% of total U.S. box office revenue and is currently enjoying a rebound in theater attendance. Regal realized additional value by spinning off its in-theater advertising unit, National CineMedia, with the proceeds being returned to investors as a $2 special dividend in April 2007.
Several of our top holdings as of October 31, 2007 were companies that announced special dividend payments associated with restructurings and/or excess cash, and we believe there is the potential for additional upside value to be realized following their dividend payments.
Two of our top holdings in the restructuring strategy, Man Group and Temple-Inland, announced large returns of cash to shareholders associated with asset sales. Man Group (EMG LN) is an alternative asset manager based in the UK that paid a 10% special dividend in November 2007 following the sale of its stake in Man Financial (MF Global). We favor the asset management group within the financial sector as these companies are well positioned to continue to grow their assets and fees with an aging global demographic. Also, they generally have less exposure to the sub-prime and bridge loans that are currently hurting other financial companies.
Temple-Inland (TIN) is a US based conglomerate that paid a 20% special dividend in December 2007 following the proceeds of the sale of 1.5 million acres of their timberland assets for close to $2 billion. The sale was in association with its restructuring plan that will break TIN into three stand-alone publicly traded companies; Temple-Inland will consist of the corrugated packaging and building products segments, Guaranty Financial will include the financial services units, and Forestar will be comprised of the real estate group.
Many of our holdings in ADVDX are global companies that are benefiting from strong demand for their products and have been returning excess cash to shareholders. One top holding, America Movil (AMX),
based in Mexico, is the largest wireless operator in Latin America. The company is increasing its cell phone penetration rates by tapping into the strong growth of emerging market consumers throughout Latin America. Plus, AMX is increasing its data and internet opportunities in its developed markets. Earnings are expected to grow over 20% per year over the next several years and the company has become a strong cash flow generator now that its networks are largely built. This is illustrated by the 3% special dividend paid by AMX in November 2007 and we expect the potential for ongoing dividends to increase with cash flow.
Our “Growth and Income Strategy” targets capital appreciation in addition to yield
Our second strategy identifies core growth and income stocks that may have slightly lower but still attractive current dividend yields and predictable earnings streams plus a catalyst for capital appreciation and dividend increases. In our top 10 holdings, we would group Pepsi, United Technologies, and Aircastle Ltd in this category. These companies are estimated to grow earnings annually by 15-20% over the next several years and each raised their dividends by over 20% in 2007. We would expect additional dividend increases in 2008.
PepsiCo (PEP) is a diversified beverage, snack, and cereal company that is well positioned for consistent double digit EPS growth through international expansion and the strength of its domestic portfolio of businesses. Pepsi increased its commitment to returning excess cash to shareholders in 2007 with a 25% increase in its annual dividend to $1.50 (1.9% current yield) plus a $4–$5 billion annual repurchase target.
United Technologies (UTX) offers attractive upside potential as diversified manufacturers with strong international growth prospects, which should also benefit from a declining US dollar. UTX is well positioned in the aerospace and industrial sectors with its suite of industry leading companies including Otis elevators, Pratt & Whitney aircraft engines, Sikorsky helicopters, Carrier air conditioners and Chubb security and fire protection systems. Earnings are expected to grow close to 15% in each of the next two years and UTX increased its dividend payment by 20% in 2007 for a current dividend yield of 1.7%.
Aircastle Ltd (AYR) is one of the largest aircraft lessors in the world, with more than 100 modern passenger and cargo aircraft owned or on order. AYR is well positioned to benefit from strong global demand for modern aircraft that are more fuel efficient as fuel prices continue to soar. In addition, as the global economies continue to grow, so does demand for air travel from a growing global consumer base and from the growing number of industrialized cities in the world. AYR is forecasted to grow earnings by 30% in 2008 and 15-20% in the 2009 as the company receives new aircraft
6
|
|
Alpine Dynamic Dividend Fund | |
and leases them out at very attractive rates on long term contracts. In addition, the company has raised its dividend payment every quarter since going public in 2006 and is now providing a current dividend yield of 10.7%. AYR is committed to pay out 100% of its earnings as dividends to shareholders and we believe recent acquisitions should enable the company to continue to grow those. Demand is outstripping supply for aircraft as aircraft manufacturers are sold out until 2010 and fleet utilization is high.
Our “Value/Restructuring Strategy” looks for attractively valued or restructuring dividend payers
Our third major strategy is what we call “value with a catalyst or restructuring strategy”, where our internal research points to under-valued or mis-priced equity opportunities for companies with attractive dividend yields. We also look for turnaround situations or depressed earnings where we believe there is a catalyst for an earnings recovery or a restructuring or major corporate action that is expected to add value. The key characteristic for this strategy is low valuations relative to historical averages and above average dividend yields for a combined objective of capital appreciation and high qualified dividend income.
We would categorize two of our top holdings in this strategy; Diamond Offshore Drilling and Brookdale Senior Living. Diamond Offshore Drilling (DO), based in Houston, Texas, is one of the largest operators of mid-deepwater rigs and it is seeing strong demand for its services as oil is getting harder to find and exploration is moving further out to sea. This is resulting in substantial increases on rates for its long term contracts and the expectation of a doubling of earnings in the next two-three years, which we believe is just starting to be reflected in its current valuation. DO is generating significant free cash flows and has been returning it to shareholders as regular special dividends, having paid out $4 in February 2007 and another $1.25 in October 2007. We would expect the continuation of large cash returns in 2008 as the company is committed to paying out about 80% of earnings as dividends.
Brookdale Senior Living is the largest operator of senior housing facilities in the US, with close to 550 properties in the independent living, assisted living, continuing care and skilled nursing sub sectors. We believe that Brookdale is in a positive demographic with favorable occupancy levels over 90% and solid year over year price increases. The stock has come down on concerns about short term margin pressures associated with utilities and labor costs and concerns about project financing costs given the recent financial market turmoil. However, we believe the recent pullback is an opportunity to buy a company with a strong long term growth outlook with a current dividend yield of 6.7% that we expect should increase in 2008. Given the limited new capacity being
added to the senior housing market and the growing demand for seniors for a range of housing options, we believe the sector should remain attractive over the long-term and that Brookdale is a good long term value at current levels.
Capturing international dividend opportunities is an important component of our dividend strategy
In addition to our multi-strategy and multi-cap approach, we also invest approximately 30-35% of our assets in international holdings. We have found attractive growth opportunities and traditionally larger dividend payouts than we see in the U.S. We do not actively manage our country weightings - we pick our holdings on a stock by stock basis based on dividend potential and total return.
ADVDX is currently invested in equities based in 17 different countries, the majority of which would be considered mature countries. However we do have a small exposure to some emerging market economies and we continue to look for interesting dividend and capital appreciation opportunities in countries like Brazil, Mexico, and Russia. Following the United States, our current top three countries are Finland, Norway, and Sweden. The average dividend yield for the major indices in these three countries is currently 3.54% which is almost double the yield on the S&P 500 Index of 1.9%.
Outlook for 2008: We Remain Optimistic That Dividend Payers Should Outperform
As we look out to 2008, we continue to be optimistic about the prospect for the dividend paying stocks in our portfolio. While we need to be selective in our investments given recent market uncertainties, we continue to be encouraged by the total return opportunities in our dividend paying markets, particularly internationally. We believe investments outside the U.S. look very attractive based on the outlook for stronger earnings growth, higher dividend payouts, and our outlook for a long term secular decline in the U.S. dollar. And within the domestic US markets, we continue to find companies with strong and sustainable earnings growth and cash flow generation at attractive valuations, with many of our favorite US names having large international exposure.
The recent volatility in global equity markets has provided challenges and opportunities. While we have recently experienced short term challenges based primarily on uncertainty in the financial markets, as fundamental investors we also see longer term opportunities. Particularly, within our value strategy, we are looking to take advantage of recent declines in the equity markets to invest in still very strong companies with attractive dividend yields at more attractive valuations. While we do expect additional headline risks in the financial sector as we head into 2008, we still
7
|
|
Alpine Dynamic Dividend Fund | |
believe that global economic growth should remain solid and we continue to find very attractive global growth companies that are committed to returning cash to shareholders.
Companies are still sitting on very high levels of cash, which should place a floor on equity values. We would expect companies to look to use some of their excess cash to supplement slowing organic growth with strategic merger and acquisition (M&A) in 2008. However, there should still be substantial amounts of excess cash to be returned to shareholders either in the form of share repurchases or increased dividend payouts. Companies in the S&P 500 index currently payout approximately 37% of their earnings in the form of dividends versus a long term historical average of 54%. Given large cash positions, low payout ratios and lack of other uses of cash, we continue to believe that companies should increase their dividends in 2008 and beyond.
We continue to concentrate on global secular investment themes that we believe may outperform over the long term.
We remain bullish on global infrastructure and engineering companies as the rest of the world tries to catch up with the industrialized countries with regards to power plants, phones, roads, electricity, water treatment, sewage, and airports. In addition, the industrialized nations of the world have neglected their aging infrastructure and are now rebuilding and reinvesting. And many of these projects are supported by governments that are long term in focus and less sensitive to short term economic swings. Some of our favorite stocks are the companies that will supply this growth for what we believe will be many years to come and at much higher prices than achieved in the past.
We also still like the long term secular story for the basic materials and energy sectors based also on constrained supply and growing global demand. For example, we like the long term secular outlook for deepwater drillers as oil is getting harder to find and exploration is moving further out to sea. We will continue to be nimble in these volatile yet potentially highly profitable sectors and we would look for attractive entry and exit points and we are aware of the impact of shorter term seasonal trading patterns. In addition, many of these companies are producing record amounts of free cash flow and we expect continued increases in regular and special dividend payouts.
We also favor the industrial and machinery companies that are supplying global growth and are also benefiting from aerospace and defense spending. With our favorites being companies that have the majority of their revenue generated overseas and have booked strong backlogs with visibility on this revenue for several years out. We also participate in a variation on investing in commodity companies, and that is through
increasing global trade. We look to participate in the increasing need for the movement of commodities globally through producers, financers, and operators in the shipping industry
The aging demographics of many of the industrialized countries should result in attractive long term growth opportunities for dividend payers in the asset management and healthcare sectors. The aging population will likely need to save more and also manage their assets more directly as countries and companies have cut back significantly on their pension promises. We believe this is positive for the asset managers around the globe. In addition, we like niche healthcare which is being stimulated by demographic trends and advances in biotechnology and yet there is more limited generic risk.
While we remain positive on the outlook for sustainable global economic growth in 2008, we also believe that a slowing US economy and financial market turmoil makes it prudent to also have a meaningful exposure in the telecom, utilities and consumer staples sectors. These sectors tend to be large dividend payers and more defensive in nature, with many of the consumer staple stocks having a substantial international revenue base. Within these groups, we continue to be selective and pick our holdings on a stock by stock basis where we see the best combination of earnings growth, valuation, and dividend opportunity.
At this time, we remain cautious on the financial sector, as we believe there is still more potential write-downs on mortgage-related assets and downward earnings revisions. While risks are real, we also believe that the valuations reflect a lot of this uncertainty and that the long term prospects for many businesses remain strong. Our strategy during the financial markets turmoil has been to add to the higher quality financial stocks on dips, but overall we would not look to increase our weightings substantially until we believe that the downside risk is quantifiable and that the upside reward is meaningful. We believe we will likely get additional clarity on the quality of balance sheets and future earnings growth potential in the first half of 2008.
Another sector that we remain cautious on at this time is consumer discretionary. We remain disciplined and selective in our investments in this group, with our current focus on the global high-end consumer and companies that are restructuring and providing some catalysts for earnings growth. We are cautious in general on consumer spending based on the turmoil in the housing markets and high energy prices, but this is balanced by overall employment levels which have has remained strong. And similar to the financial sector, we are consistently looking at opportunities within the global consumer sector where stocks may have been oversold and could offer long term value at current prices.
8
|
|
Alpine Dynamic Dividend Fund | |
If the housing and equity market volatility do spill over to the ever-resilient U.S. consumer or it start to impact employment levels, then we believe there is a higher risk of a general economic slowdown and we need to monitor this as investors. However, we do believe in that scenario that the Fed would be able to move in and act to lower interest rates to support economic growth and the equity markets would likely react positively to that scenario.
In summary, in a moderate growth environment and with financial market uncertainty, we believe investors will be drawn to high quality, internationally oriented, and potentially more defensive stocks. That should bode well for dividend payers and our fundamental strategy of searching globally and in multi-caps and multi-sectors for investment opportunities. Positive fundamentals in many of our secular growth themes will be balanced with the risks of financial market turmoil, high oil prices, a potential economic slowdown in the U.S., and continued geopolitical uncertainties.
Our approach is to remain broadly diversified within the dividend-paying universe while actively looking for undervalued opportunities. We believe we should continue to be able to distribute attractive dividend payouts to our shareholders by capitalizing on our research driven approach to identifying attractive situations as well as through our active management of the portfolio.
Thank you for your participation and we look forward to a prosperous year in 2008.
Sincerely,
Jill K. Evans and Kevin Shacknofsky
Co-Portfolio Managers
Please refer to the schedule of portfolio investments for fund holding information. Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
Investing in small and mid cap stocks involves additional risks such as limited liquidity and greater volatility as compared to large cap stocks.
Investing in foreign securities tends to involve greater volatility and political, economic and currency risks and differences in accounting methods.
Neither the Fund nor any of its representatives may give tax advice. Investors should consult their tax advisor for information concerning their particular situation.
Free cash flow: Cash not required for operations or for reinvestment. Often defined as earnings before interest (often obtained from the operating income line on the income statement) less capital expenditures less the change in working capital.
Earnings per share (EPS): Calculated by taking the total earnings divided by the number of shares outstanding.
Dividend Yield: The yield a company pays out to its shareholders in the form of dividends. It is calculated by taking the amount of dividends paid per share over a specific period of time and dividing by the stock’s price.
9
|
|
$9,000
$11,000
$13,000
$15,000
Alpine Dynamic Innovators Fund
Russell 2000 Growth Index
$14,379
$12,508
Value of a $10,000 Investment
Oct 31
07
Aug 31
07
Jun 30
07
Apr 30
07
Feb 28
07
Dec 31
06
Oct 31
06
Aug 31
06
Jul 11
06
This chart represents a comparison of a hypothetical $10,000 investment in the Fund versus a similar investment in the Fund’s benchmark. The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects the waiver and recovery of certain fees. Without the waiver and recovery of fees, the Fund’s total return would have differed.
Performance data quoted represents past performance and is not predictive of future results. Investment return and principal value of the Fund fluctuate, so that the shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than performance quoted and may be obtained by calling 888-785-5578. Performance data shown does not reflect the 1.00% redemption fee imposed on shares held for fewer than 60 days. If it did, total returns would be reduced.
The Russell 2000 Growth Index is constructed to provide a comprehensive and unbiased barometer of the small-cap growth market. Based on ongoing empirical research of investment manager behavior, the methodology used to determine growth probability approximates the aggregate small-cap growth manager’s opportunity set. The Lipper Small-Cap Growth Funds Average is an average of Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index. The S&P 500 Index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on the NASDAQ Stock Market. The NASDAQ Composite includes over 4,000 companies. The Russell 2000 Growth Index, Lipper Small-Cap Growth Funds Average, The S&P 500 Index, and the NASDAQ Composite index are unmanaged and do not reflect fees associated with a mutual fund, such as investment adviser fees. The performance for the Dynamic Innovators Fund reflects the deduction of fees for these value-added services. Investors cannot directly invest in an index. Lipper Rankings for the periods shown are based on Fund total returns with dividends and distributions reinvested and do not reflect sales charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Comparative Annualized Returns as of 10/31/07 |
|
|
|
|
| ||
|
| 1 Year |
| Since Inception |
| ||
Alpine Dynamic Innovators Fund |
| 39.47 | % |
| 32.04 | % |
|
Russell 2000 Growth Total Return |
| 16.73 | % |
| 18.68 | % |
|
Lipper Small-Cap Growth Funds Average |
| 20.32 | % |
| 19.43 | % |
|
Lipper Small-Cap Growth Fund Ranking |
| 9/578 |
|
| 17/557 |
|
|
10
|
|
Alpine Dynamic Innovators Fund | |
Portfolio Distributions* (Unaudited)
Consumer Discretionary 2.8%
Energy 4.2%
Financials 3.2%
Health Care 16.9%
Industrials 7.0%
Telecommunications 1.2%
Information Technology 20.7%
Cash & Cash Equivalents 41.6%
Materials 2.4%
Top 10 Holdings* (Unaudited)
|
|
|
|
|
|
1. |
| Invitrogen Corp. |
| 2.26% |
|
2. |
| CME Group, Inc. |
| 2.07% |
|
3. |
| Priceline.com, Inc. |
| 1.73% |
|
4. |
| MEMC Electronic Materials, Inc. |
| 1.51% |
|
5. |
| Pediatrix Medical Group, Inc. |
| 1.49% |
|
6. |
| Google, Inc. |
| 1.46% |
|
7. |
| Merck & Co., Inc. |
| 1.45% |
|
8. |
| Air Products & Chemicals, Inc. |
| 1.42% |
|
9. |
| Dynamic Materials Corp. |
| 1.36% |
|
10. |
| Flir Systems, Inc. |
| 1.29% |
|
|
|
* | Portfolio holdings and sector distributions are as of 10/31/07 and are subject to change. |
| Portfolio holdings are not recommendations to buy or sell any securities. Top 10 Holdings does not include short-term investments. |
|
Commentary |
Dear Investor:
Alpine Dynamic Innovators Fund in its first full fiscal year ended October 31, 2007, has risen 39.47% in net asset value. This compares with the rise of the Standard & Poor’s 500 of 14.56% and the NASDAQ Composite Index of 21.75%. Since the inception of the Fund July 12, 2006, the net asset value has increased 40.79%.
During its first fiscal year, the Fund has moved from what we viewed as the incubation stage of an investment program to a demonstrable, successful realization of an investment strategy. Our plan in initiating the Fund was to concentrate investments in companies whose innovative products or business strategies provided near and long-term rapid growth potential. The selection of investment holdings demonstrates the availabilities of such opportunities. They cross the corporate spectrum from giants of innovation such as Google, Inc. and Apple, Inc., to small companies in the forefront of medical innovation and genetic technologies, such as Illumina, Inc. and Sequenom, Inc. The range of medical technology companies in the portfolio goes from Abaxis, Inc., manufacturer of portable blood analysis systems, to Invitrogen, Inc., leader in instrumentation for molecular biology research, to Intuitive Surgical, Inc., a leader in robotic surgery. A mature, major pharmaceutical company Merck & Co. has been added to the portfolio because of the outstanding potential of a newly introduced product. Medical technology is a significant part of the portfolio at 9.5%. As a leading area of much
needed innovations, we believe it is likely to continue to grow rapidly in a slowing economy.
The spectrum of Healthcare ranging from services to medical technology equipment to pharmaceutical companies totals 16.9% of the portfolio at fiscal year-end. The investment potential of these fields is well illustrated by the performance during the year of four of the Fund’s outstanding gainers’, Intuitive Surgical, Inc. up 168.3%, Sequenom, Inc. up 115.1%, Illumina, Inc. up 56.3%, and Abaxis, Inc. up 53.7%.
Communications and equipment was led by our holdings in Apple Computer, up 37.2%, and Google, Inc. up 19.4%. Communications technology was an important contributor to portfolio growth, led by a 330.5% gain in VMWare, Inc., and 168.9% in VSE Corp.
The financial services group would have been expected to suffer losses characteristic of the credit based companies during the latter part of the fiscal year. This was the case with two of the significant holdings, Ambac Financial Group, purchased in September after a 40% decline from its top, then having fell an additional 37%, and Portfolio Recovery Associates, declining 13.1%. The major gainer in this group of holdings, CME Group, Inc., the parent company of the Chicago Mercantile Exchange, and the Chicago Board of Trade (a leading innovator of derivative investment vehicles), rose 11.5%.
An important part of the strategy of the Fund is to benefit by developing investor recognition of innovative opportunities, both over the short and long-term. In this
11
|
|
Alpine Dynamic Innovators Fund | |
respect we took substantial short-term capital gains relative to the size of the portfolio, a total of $1,838,000. For example, short-term gains were realized in Apple Computer, and then the shares were repurchased after a set-back. Other gains were realized through corporate acquisitions, most notably 45.7% in JLG Industries, and in computerized GPS mapmaker Navteq Corp., which received an acquisition bid 15% above our September purchase price.
The portfolio was never fully invested during the fiscal year. It began the year with cash and equivalents of 72.4% and ended with 40.6% uninvested in equities. We chose not to follow the flow of new investment monies into the Fund with immediate investment, but rather to concentrate on the selection of the most attractive innovative values as they appeared. We expect to continue the strategy of investing by opportunity rather than by flow of funds. The growing flow has certainly been helpful in allowing us a wider range of commitment, but we do not expect to simply add to holdings as prices advance and move closer to our targets. We aim to sustain the policy of holding issues which are well below target price, and buy new ones with a major opportunity for capital advance.
The unrealized portfolio gain at the end of the fiscal year was $2,973,512. The largest contributors to these unrealized gains were, in order, Flir Systems, Inc. (95.8%), Intuitive Surgical, Inc. (147.4%), VSE Corp.
(168.3%), Alvarian Ltd. (73.0%), Logitech International (26.7%), VM Ware, Inc. (330.4%), Apple Computer (37.2%), Google, Inc. (19.4%), Bolt Technology (31.0%), Sequenom, Inc. (124.9%).
The largest losses unrealized in the portfolio were Ambac Financial Group, Inc. (-36.9%), Broadcom Corp. (-19.8%), Portfolio Recovery Associates, Inc.
(-13.1%).
Looking forward, we believe we have identified a significant number of possible new investments with highly promising innovative products and expansionary business strategies. We are monitoring these companies and their securities with the intent of utilizing the Fund’s significant liquidity to take advantage of any moderating or declining valuations. Our review process is intense, utilizing the broad skill set and experience of our entire research group. All of us aim to take advantage of opportunities which should become increasingly apparent as corporate results and demand growth becomes clearer in the months ahead.
We greatly appreciate the support for this new Fund which has moved from its incubation stage to what we believe could be a period of significant growth promise.
Sincerely,
Stephen A. Lieber
Samuel A. Lieber
Co-Portfolio Managers
The Fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods.
The Fund may invest in debt securities which typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
The Fund portfolio will involve short positions, which involves unlimited risk including the possibility that losses may exceed the original amount invested. The fund may also use options and future contracts, which have risks associated with unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. However, a mutual fund investor’s risk is limited to one’s amount of investment in a mutual fund.
Please refer to the Schedule of Investments for fund holding information. Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
12
|
|
Value of a $10,000 Investement
$15,000
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
Nov 1
05
Nov 30
05
Dec 31
05
Mar 31
06
Jun 30
06
Sep 30
06
Oct 31
06
Dec 31
06
Mar 31
07
Jun 30
07
Sep 30
07
Oct 31
07
$14,776
$13,375
$10,436
Alpine Dynamic Financial Services Fund
PHLX/KBW Bank Index – Capital-Weight
S&P 500 Index – Divs Reinvested
Performance data quoted represents past performance and is not predictive of future results. Investment return and principal value of the Fund fluctuate, so that the shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than performance quoted and may be obtained by calling 888-785-5578. Performance data shown does not reflect the 1.00% redemption fee imposed on shares held for fewer than 60 days. If it did, total returns would be reduced.
The NASDAQ 100 Financial Index is a capitalization-weighted index of the 100 largest financial companies, as well as foreign issues, including American Depositary Receipts (ADRs), traded on the NASDAQ National Market System (NASDAQ/NMS) and SmallCap Market. The PHLX/KBW Bank Index is a modified cap-weighted index consisting of 24 exchange-listed and National Market System stocks, representing national money center banks and leading regional institutions. The S&P Index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The Lipper Financial Services Funds Average is an average of funds whose primary objective is to invest primarily in equity securities of companies engaged in providing financial services. The NASDAQ Financial 100 Index, PHLX/KBW Bank Index, the S&P 500 Index and the Lipper Financial Services Funds Average are unmanaged and do not reflect fees associated with a mutual fund, such as investment adviser fees. The performance for the Dynamic Financial Services Fund reflects the deduction of fees for these value-added services. Investors cannot directly invest in an index. Lipper Rankings for the periods shown are based on Fund total returns with dividends and distributions reinvested and do not reflect sales charges.
|
|
|
|
|
|
|
|
|
| ||||||||
| Comparative Annualized Returns as of 10/31/07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Year |
| Since Inception |
| ||
| Alpine Dynamic Financial Services Fund |
| 21.64 | % |
| 21.59 | % |
|
| NASDAQ Financial—100 Index |
| -1.24 | % |
| 3.40 | % |
|
| PHLX Bank Index |
| -9.20 | % |
| 2.16 | % |
|
| S&P 500 Index |
| 14.56 | % |
| 15.67 | % |
|
| Lipper Financial Services Funds Average |
| 0.66 | % |
| 9.26 | % |
|
| Lipper Financial Services Fund Ranking |
| 1/124 |
|
| 1/112 |
|
|
13
|
|
Alpine Dynamic Financial Services Fund | |
|
|
Portfolio Distributions* (Unaudited) | Top 10 Holdings* (Unaudited) |
Captial Markets 38.7%
Consumer Finance 0.2%
Transportation
Infrastructure 1.8%
IT Services 3.1%
Diversified Financial
Services 4.6%
Insurance 5.6%
Thrifts & Mortgage
Finance 14.2%
Commerical Banks 31.8%
|
|
|
|
|
|
1. |
| Banco Estado Rio Grande Sul |
| 4.71 | % |
2. |
| Blackstone Group L P |
| 4.70 | % |
3. |
| MF Global Ltd |
| 4.10 | % |
4. |
| Interactive Brokers Group, Inc. |
| 4.00 | % |
5. |
| Sanders Morris Harris Group, Inc. |
| 3.66 | % |
6. |
| NYSE Euronext |
| 3.47 | % |
7. |
| Alliance Bancorp Inc. |
| 3.44 | % |
8. |
| Nasdaq Stock Market, Inc. |
| 2.59 | % |
9. |
| Nymex Holdings, Inc. |
| 2.37 | % |
10. |
| JMP Group, Inc. |
| 2.22 | % |
|
|
* | Portfolio holdings and sector distributions are as |
|
Commentary |
Dear Investor:
Alpine Dynamic Financial Services Fund generated a 21.64% total return for the fiscal year ended October 31, 2007. According to Lipper this Fund was ranked the best, based on total return, among all 124 financial services funds during the same one-year period. The results also compare favorably to returns for the NASDAQ 100 Financial Index of -1.24% and the PHLX/KBW Bank Index of -9.20%.
Fiscal 2007 proved to be a difficult period for financial stocks as problems in the subprime mortgage market intensified as the year progressed. What first started as an issue for the subprime mortgage companies has spread to commercial banks, investment banks and thrift institutions. The subprime problem has also been exported to financial organizations around the world. The uncertainty of not knowing which companies have exposure to subprime loans, or the amount of writedowns companies with known exposure will have to take, causes the greatest concern among investors. Wall Street’s distaste for the unknown has resulted in many investors blindly selling their financial stocks regardless of their subprime exposure or market valuation.
The subprime mortgage concerns also spilled over into the overall market. By fiscal year’s second half, liquidity in the global credit markets began to dry up. Investors seeking safety plowed their money into U.S. Treasury securities which drove their yields down. At the same
time, yields on all other securities rose causing credit spreads to widen. In the equity markets, the lack of liquidity caused a temporary decline in the volume of initial public offerings and merger announcements. Recognizing the strain in the capital markets, the Federal Reserve stepped in by providing liquidity and easing monetary policy through interest rate cuts.
After reaching new highs, financial and bank indices became more volatile in the second half of the year. This aided our performance as we implemented one of our investment strategies of actively investing in a full range of sub-sectors within the Financial Services industry. We used our top-down/bottom-up analysis in selecting stocks, acting quickly to changes in market sentiment and industry fundamentals.
Also contributing to the return was another investment strategy of finding companies which may participate in the industry consolidation. During fiscal 2007, thirteen holdings in the Fund were acquired. These holdings were primarily small community banks. Geographically, these holdings were dispersed around the country. New Jersey accounted for the most mergers with three announced deals. Boardwalk Bancorp is planning to merge into neighboring Cape Savings Bank. Commerce Bancorp is being acquired by Toronto-Dominion Bank in Canada. Yardville National Bancorp signed a merger agreement with PNC Financial Services Group. Another holding in the Northeast, Great Lake Bancorp of Buffalo, New York merged with nearby First Niagara Financial Group.
14
|
|
Alpine Dynamic Financial Services Fund | |
In the Southeast, Virginia based Premier Community Bankshares sold to United Bankshares of West Virginia. There were two mergers announced in Florida. Coast Financial Holdings was sold in a distressed sale to First Banks from St. Louis, Missouri. Commercial Bankshares in Miami was acquired by Alabama based Colonial BancGroup. Compass Bankshares, which is headquartered in Birmingham, Alabama but has a franchise that extends west through the southern states, sold to the Spanish bank, Banco Bilbao Vizcaya Argentaria. In the west, two of our California holdings were acquired. First Republic Bank sold to the brokerage firm Merrill Lynch. Placier Sierra Bancshares was involved in an in-state merger with Wells Fargo.
There were also three non-bank mergers this fiscal year. Insurer KMG America Corporation signed a merger agreement with health services provider Humana Inc. Online bill payment provider CheckFree Corporation was acquired by Fiserv. The options exchange International Securities Exchange Holdings is merging into Deutsche Boerse. The sub-sectors of the last two mentioned mergers, financial information technology, and exchanges are rapidly consolidating. In addition to searching the bank universe for consolidation candidates, we are also searching these sub-sectors.
Top Five Holdings
The largest position in the Fund is a Brazilian bank, Banco Estado Rio Grande Sul. We started investing in Brazil this year as the expected growth prospects in the country appear superior to those in the U.S.
The second and third largest holdings are Blackstone Group, L.P., and Fortress Investment Group, LLC. Blackstone is a prominent private equity firm and Fortress is an asset manager of hedge funds. We believe both stocks are attractively priced due to the recent sell-off related to concerns over a potential tax increase, as well as declining incentive fees this year. We believe any tax bill will likely be delayed and watered down. As for incentive fees, this is the most cyclical part of their business model, but over time, this revenue stream should revert to its median growth trend. The most important factor is that assets under management at both companies are growing.
MF Global Ltd. is the fourth largest position. This is a Bermuda based broker of exchange listed futures and options. The company provides execution and clearing for derivative and cash products like interest rates, equities, foreign currencies, energy, and metals. These are areas of the market which are experiencing strong growth.
Interactive Brokers Group is the Fund’s fifth largest investment. The company originally started out offering execution of equity options for institutional and professional traders. The company has expanded its services to include equities and other derivatives, and now has memberships in over 60 exchanges around the world. Growth opportunities for the firm come from increasing their market share of institutional investors and international expansion of products.
Outlook
As we enter fiscal 2008, weakness in the residential real estate market continues to hinder financial stocks. We expect loan charge-offs to increase during the year, but remain at manageable levels for most banks. We expect moderate balance sheet growth for banks along with some improvement in the net interest margin during the second half of the fiscal year. The more challenging business climate should lead to an increase in industry consolidation. We believe the acquiring banks are currently waiting until they get better confidence in their assessment of the problems in construction and residential mortgage lending before resuming their acquisition strategies. In the capital market sector, we expect credit and liquidity concerns should keep equity and high yield underwriting at moderate levels at the beginning of the year. As the Federal Reserve continues to ease the capital markets this should start to improve.
The volatility in the capital markets provide the opportunity for trading revenues to surprise on the upside for the brokers. The volatility may also cause an increase in trading revenue, especially in the derivatives markets. The opportunity for an increase in revenues along with no credit exposure and potential for further consolidation, make the exchange stock sub-sector our favorite group.
Although our outlook is challenging for the sector in 2008, we believe this is reflected in the price of many stocks. The market multiples of small community bank stocks are approaching valuation seen during the last real estate downturn of the early 1990’s. Yet when comparing that period to the current, we are in a much stronger position today to handle a real estate slowdown. From a macro-view, inflation, interest rates, and unemployment are all lower. Even with the weak housing market, the economy is expanding. The labor market, consumption, investments, government spending, and exports, are all contributing to GDP growth. As for the banking industry, the level of nonperforming loans is more manageable, loan loss reserve coverage is higher, capital ratios are stronger and risk management techniques are better today than they were in the early 1990’s.
15
|
|
Alpine Dynamic Financial Services Fund | |
While financial stocks appear inexpensive, there needs to be a catalyst for the stocks to outperform. We feel there may be several. The first is more monetary easing by the Federal Reserve. This should provide liquidity and draw investors attention to interest-sensitive stocks. A second catalyst would be a continuation of the recent announced stock buybacks along with insider buying. This should provide some buying support for the individual stocks, but more importantly, it sends a message of confidence in the strength of their balance sheets and their business outlook. A third catalyst would be an increase in industry consolidation which we expect later in the year. Typically when the pace of merger activity increases, so does the market valuation
of the group. The final catalyst would be a sign of stabilization in the residential real estate market. Speculation in the market was the seed of the current problems. With time, we believe the market should reach equilibrium and the losses may diminish. Any change to our view of a turnaround in financial stocks would be a deteriorating labor market, along with a weaker commercial real estate market.
We end by thanking all our investors for your support and wish you all a healthy, happy and prosperous New Year.
Peter J. Kovalski
Portfolio Manager
There is no assurance the fund will achieve its investment objective.
Please refer to the schedule of portfolio investments for fund holding information. Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security.
16
|
|
Alpine Dynamic Balance Fund
Moody’s Balanced Equity Fund Index
S&P 500 Index – Divs Reinvested
$16,846
$13,623
$13,563
$18,000
$17,000
$16,000
$15,000
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
$8,000
$7,000
Jun 7
01
Oct 31
01
Apr 30
02
Oct 31
02
Apr 30
03
Oct 31
03
Apr 30
04
Oct 31
04
Apr 30
05
Oct 31
05
Apr 30
06
Oct 31
06
Apr 30
07
Oct 31
07
Value of a $10,000 Investment
Performance data quoted represents past performance and is not predictive of future results. Investment return and principal value of the Fund fluctuate, so that the shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than performance quoted and may be obtained by calling 888-785-5578. Performance data shown does not reflect the 1.00% redemption fee imposed on shares held for fewer than 60 days. If it did, total returns would be reduced.
The Moody’s Equity Mutual Fund Balanced Index tracks a group of similar funds that typically correspond to standard classifications based on global funds. The S&P Index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The Lipper Mixed Target Growth Allocation Average is an average of Funds that, by portfolio practice, maintain a mix of between 60%–80% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The Moody’s Equity Mutual Fund Balanced Index, the S&P 500 Index and the Lipper Mixed Target Growth Allocation Funds Average are unmanaged and do not reflect fees associated with a mutual fund, such as investment adviser fees. The performance for the Dynamic Balance Fund reflects the deduction of fees for these value-added services. Investors cannot directly invest in an index. Lipper Rankings for the periods shown are based on Fund total returns with dividends and distributions reinvested and do not reflect sales charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
| |||||||||||||||||
Comparative Annualized Returns as of 10/31/07 |
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
| 1 Year | 3 Years | 5 Years | Since Inception |
| |||||||||||
Alpine Dynamic Balance Fund |
|
| 4.03 | % |
| 8.05 | % |
| 12.21 | % |
| 8.49% | |||||
Moody’s Equity Mutual Fund Balanced Index |
|
| 10.85 | % |
| 9.70 | % |
| 9.99 | % |
| 4.95% | |||||
S&P 500 Index |
|
| 14.56 | % |
| 13.16 | % |
| 13.88 | % |
| 4.88% | |||||
Lipper Mixed Target Allocation Growth Funds Average |
|
| 13.54 | % |
| 11.31 | % |
| 11.74 | % |
| 5.51% | |||||
Lipper Mixed Target Allocation Growth Fund Ranking |
|
| 622/628 |
| 480/522 |
| 142/397 |
| 29/303 | ||||||||
17
|
|
Alpine Dynamic Balance Fund | |
|
|
Portfolio Distributions* (Unaudited) | Top 10 Holdings * (Unaudited) |
Financial/Banks 28.5%
Information Technology 0.3%
Cash & Cash Equivalents 0.7%
Consumer Staples 2.4%
Health Care 2.9%
Energy 3.7%
Utilities 5.5%
Materials 9.1%
Industrials 10.8%
Consumer Discretionary 10.9%
U.S. Gov’t Obligations 25.2%
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
1. |
| U.S. Treasury Bond, |
|
|
|
|
| 5.250%, 11/15/2028 |
| 11.49 | % |
2. |
| U.S. Treasury Bond, |
|
|
|
|
| 6.000%, 2/15/2026 |
| 7.44 | % |
3. |
| Allegheny Energy, Inc. |
| 4.01 | % |
4. |
| The Goldman Sachs Group, Inc. |
| 3.76 | % |
5. |
| CONSOL Energy, Inc. |
| 3.30 | % |
6. |
| Simon Property Group, Inc. |
| 2.59 | % |
7. |
| Eagle Materials, Inc. |
| 2.53 | % |
8. |
| U.S. Treasury Bond, |
|
|
|
|
| 6.250%, 8/15/2023 |
| 2.51 | % |
9. |
| Fannie Mae |
| 2.47 | % |
10. |
| Black & Decker Corp. |
| 2.44 | % |
|
|
* | Portfolio holdings and sector distributions are as of 10/31/07 and are subject to change. Portfolio holdings are not recommendations to buy or sell any securities. Top 10 Holdings does not include short-term investments. |
|
Commentary |
Dear Investor:
The Alpine Dynamic Balance Fund provided a 4.03% return for the fiscal year ending October 31, 2007. This compares with 10.85% for the Moody’s Equity Mutual Fund Balanced Index in the same period.
Since inception in 2001, the fund has provided an average annual return of 8.49% compared with 4.95% for the Moody’s Balance Fund Average.
The largest investments in the Fund portfolio continue to be long-term United States Treasury Bonds. At the end of the period they constituted 21.5% of the portfolio. These bonds together with cash equivalents totaled 30.4% of the portfolio.
Among equities, the largest segment of holdings were commercial products and services; 12.3% of the portfolio. These holdings provided a diverse cross-section of the industrial economy, with a strong growth bias. The two largest investments in this sector were Eagle Materials, Inc., a major cement and wall board producer, which has had an 86.6% gain since purchase in 2004, and Autoliv, Inc., the Swedish producer of auto safety equipment which has had a 26.9% gain since 2004 purchase. Other long-term holdings with important specialty product positions included Ametek, Inc. with a 58.7% gain since 2005, and McGrath Corp. with a 39% gain since 2005. Among larger, more diverse enterprises are conglomerates, General Electric Company providing an 11% gain since 2006, and Honeywell, Inc. up 28.8% since purchase in March, 2007, as well as asset rich, Temple Inland Inc., with a 39.5% gain since 2004.
The Fund’s energy production and equipment holdings have been particularly profitable with its five holdings
in the field generating a 143.8% return since purchase. The largest among them is Consolidated Energy, Inc., which has provided a 309.3% gain since 2004. Another coal and natural gas producer, PennVirginia Corp., has provided a 365% gain since 2003.
The real estate group remains highly profitable with an overall unrealized gain of 95.7%. The leading percentage increase in this group is Developers Diversified Real Estate with a 184% gain since 2002 purchase, followed by Boston Properties at 155.8% since 2001, and Simon Property Group at 138% since 2002. These holdings were negatively affected by the sizeable decline in real estate investment trusts during the course of 2007, and yet remains a high yield and strong growth segment of the portfolio.
The utility holdings, though small in total, remain highly profitable. The 278.6% gain for these issues was led by a 348.2% gain in the shares of Allegheny Energy purchased in 2002.
This year’s most challenged segment of the portfolio has been the broad-based financials, composed of financial services and banks, and represent 11.0% and 6.9% of the portfolio, respectively. The problems originating in the mortgage market have strained investor confidence about the industry. We believe this to be overdone. It has already brought Federal Reserve interest cuts, and, we expect further cuts in months ahead. Notwithstanding these adversities, this segment of the portfolio still shows an 11.5% unrealized gain. This is predominantly due to the outstanding performance of our holding in Goldman Sachs Group, Inc. which was purchased early in 2005 and at the end of the fiscal year held at 111.2% gain. Ambac Financial Group, Inc. had
18
|
|
Alpine Dynamic Balance Fund | |
been a stellar performer for the Fund since 2002, but lost most of the almost 100% gain. By the end of the fiscal year its shares had declined to a 32.2% loss as a result of the summer and early fall sharp deterioration in mortgage related credit securities. Similarly, MBIA which was added to the portfolio after the crises had brought the shares down markedly, nonetheless, declined 24.2% in a little over two months.
Among banks, the mortgage issue pressures were particularly severe for Indymac Bank Corp., an important provider of mortgages in the California market. While evidently withstanding the pressures, nonetheless, its shares were depressed along with those of competitors suffering from equity limitations. The best performing of our holdings in this group were small specialty Southside Bankshares, Inc. up 82.5% since purchase in 2003, Bancorp. of Rhode Island up 44.5% since purchase in 2001 and JP Morgan Chase up 38.8% since purchase in 2001.
Among the issues impacted by the credit problems, of course, were the homebuilders. These together account for 2.9% of the total portfolio and show a loss of 49.8% from cost. Originally purchased in 2001 to 2004, this group had represented a highly profitable segment of the portfolio. This year, with the difficulties in the industry and the great apprehensions about the credit issues of mortgages, these shares have fallen as much as 76.8% in the case of Standard Pacific Corp. and as little as 23.1% in the case of Toll Brothers. We reduced exposure to this group of holdings during the fiscal year, with the sale of Ryland Group, Inc., with a 67% gain. We expect that the leading companies should continue to be under operating pressure for some months ahead, but may well begin to anticipate an upturn with further easing of interest rates, and possible Congressional or Administration action to ease the potential mortgage foreclosure crises.
Gains totaling $5,941,000 were realized with the continuous review of portfolio positions. Of these, 90% were long-term gains. The largest gains realized were in shares of Consolidated Energy, Inc. ($581,000), in the shares of PennVirginia Corp. ($558,000), in the shares of Fluor Corp. ($503,000), in the shares of Ryder System, Inc. ($467,000). Among Treasury Bond positions, gains of $117,000 were taken in a $2 million position of U.S. Treasury 5.25% Bonds of 2028 and $92,000 in U.S. Treasury 7.25% of February, 15, 2026.
Active repositioning is an important part of our strategy. Many holdings were reduced with sharp upward price movements in the volatile market, including those in Ametek Inc., Union Pacific, Toll Brothers, General Electric and Temple Inland. Of new equity holdings acquired in 2007 fiscal year, eleven have advanced in price and five declined. The only significant decline was in shares of MBIA, noted above, while the most outstanding gain unrealized is in the shares of Redecard SA, which had risen 46.2% since purchase in July, Diamond Offshore Drilling provided a 41% gain from purchase in February, Honeywell Inc. 30% from purchase in March, and General Electric shares (replacing others sold) 17.1% since purchase in December.
Looking ahead, we recognize a slowing economy and the probability that it could bring further reductions in interest rates. Thus, we wish to keep the portfolio interest sensitivity at least at current levels. New holdings to be added will be those of companies which we expect can outperform the economy. The best probability, we believe, lies with companies in a transformational business situation. Illustratively, we recently purchased shares of Pediatrix Medical Group, Inc. This company has built a strong growth record through acquiring and expanding neonatal care facilities in medical centers across the country. It has now begun a program to develop and expand an anesthesiology operating division through acquisitions, in a structure similar to what has already been accomplished in its original business. We anticipate an important growth transformation. as healthcare needs should be well sustained and supported by technological growth. Similarly, we added to holdings in Lincoln Electric Corp., a foremost worldwide manufacturer of welding equipment. We anticipate that this company’s expansion in Asia, Eastern Europe and other countries should offset any cyclicality which might be encountered in the U.S. Looking ahead we expect many similar opportunities and believe that taking advantage of these prospects together with recoveries in some of the recently deflated credit related issues should augur well for the Fund’s prospects.
We appreciate the continuing support of our investors.
Sincerely,
Stephen A. Lieber
Samuel A. Lieber
Co-Portfolio Managers
Investing in this fund involves special risks, including but not limited to, options and futures transactions. Please refer to the prospectus for further details. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. Each Lipper average presents a universe of Funds with similar invest objectives. Rankings for the periods shown include dividends and distributions reinvested and do not reflect sales charges.
19
[THIS PAGE INTENTIONALLY LEFT BLANK]
FIXEDINCOMEMANAGERREPORTS
|
|
| Alpine Municipal Money Market Fund |
|
|
| Alpine Ultra Short Tax Optimized Income Fund |
|
|
Alpine Municipal Money Market Fund – Investor Class
Alpine Municipal Money Market Fund – Advisor Class*
Lipper Tax-Exempt Money Market Funds Average
PERIOD
Calendar Year
2003
Calendar Year
2004
Calendar Year
2005
Calendar Year
2006
2007 thru 10/31/07
1.10%
0.45%
1.19%
0.77%
0.56%
2.44%
2.18%
1.72%
3.39%
3.14%
2.76%
3.04%
2.83%
2.52%
0.00
0.20
0.40
0.80
1.00
0.60
1.40
1.20
1.60
1.80
2.00
2.20
2.40
2.60
2.80
3.00
3.20
3.40
Alpine Municipal Money Market Fund vs. Peer Performance (Unaudited)
The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects the waiver of certain fees. Without the waiver of fees, the Fund’s total return would have been lower.
Variable Rate Demand Notes 97.2%
Municipal Bond 0.9%
Put Bond 0.7%
Cash and Other Assets 1.2%
Portfolio Distributions* (Unaudited)
|
|
|
|
|
|
Top 10 Holdings* (Unaudited) | |||||
1. |
| JP Morgan Chase & Co Putters - S, 3.630%, |
|
|
|
|
| 11/07/2007 |
| 3.71% |
|
2. |
| Puttable Floating Option Tax-Exempt |
|
|
|
|
| Receipts, P-floats -009, 3.730%, 11/07/2007 |
| 3.46% |
|
3. |
| Puttable Floating Option Tax-Exempt |
|
|
|
|
| Receipts, P-floats, 3.730%, 11/07/2007 |
| 2.61% |
|
4. |
| First Rio Grande Regional Water Authority |
|
|
|
|
| Revenue Bonds, 3.600%, 11/07/2007 |
| 2.38% |
|
5. |
| Denver City & County Airport Revenue, |
|
|
|
|
| 3.590%, 11/07/2007 |
| 2.36% |
|
6. |
| State Health & Educational Facilities |
|
|
|
|
| Revenue Bonds, 4.600%, 11/01/2007 |
| 1.87% |
|
7. |
| Puttable Floating Option Tax-Exempt |
|
|
|
|
| Receipts, P-Floats, 3.650%, 11/07/2007 |
| 1.66% |
|
8. |
| East Grand Forks Solid Waste Disposal |
|
|
|
|
| Revenue, 3.600%, 11/07/2007 |
| 1.58% |
|
9. |
| Sunamerica Trust, 3.580%, 11/07/2007 |
| 1.55% |
|
10. |
| Minnesota State - Series 1440 - Pool Trust |
|
|
|
|
| National, 3.630%, 11/07/2007 |
| 1.46% |
|
|
|
* | Portfolio holdings and sector distributions are as of 10/31/07 and are subject to change. Portfolio holdings are not recommendations to buy or sell any securities. Top 10 Holdings does not include short-term investments. |
|
22
|
|
Alpine Municipal Money Market Fund | |
|
|
|
|
|
|
|
|
|
|
|
Comparative Annualized Returns as of 10/31/07 |
|
|
|
|
|
|
| |||
Joint Return |
| Single Return |
| Marginal |
| Your Tax-Exempt Effective Yield |
| |||
$ 59,401–119,950 |
| $ | 29,701–71,950 |
| 25 | % |
| 4.67 | % |
|
$119,951–182,800 |
| $ | 71,951–150,150 |
| 28 | % |
| 4.86 | % |
|
$182,801–326,450 |
| $ | 150,151–326,450 |
| 33 | % |
| 5.22 | % |
|
Over $326,450 |
| Over $326,450 |
| 35 | % |
| 5.38 | % |
|
The chart reflects projected 2007 marginal federal tax rates before limitations and phaseouts. Individuals with adjusted gross income in excess of $142,700 should consult a tax professional to determine their actual 2007 marginal tax rate.
Performance data quoted represents past performance and is not predictive of future results. Investment return and principal value of the Fund fluctuate, so that the shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by calling 888-785-5578.
The Lipper Tax-Exempt Money Funds Average is an average of funds that invest in high quality municipal obligations with dollar-weighted average maturities of less than 90 days. The Lipper Tax-Exempt Money Market Funds Average is unmanaged and does not reflect the deduction of fees associated with a mutual fund, such as investment advisor fees. Lipper Rankings for the periods shown are based on Fund total returns with dividends and distributions reinvested and do not reflect sales charges. The performance for the Municipal Money Market Fund reflects the deduction of fees for these value-added services. Investors cannot directly invest in an index.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparative Annualized Returns as of 10/31/07 |
|
|
|
|
|
|
|
|
| |||||||
|
| 1 Year |
| 3 Years |
| Since Inception(1) |
| |||||||||
Alpine Municipal Money Market Fund—Investor Class |
|
|
| 3.68 | % |
|
|
| 3.08 | % |
|
|
| 2.31 | % |
|
Alpine Municipal Money Market Fund—Advisor Class |
|
|
| 3.42 | % |
|
|
| 2.82 | % |
|
|
| 2.50 | % |
|
Lipper Tax-Exempt Money Market Funds Average |
|
|
| 3.02 | % |
|
|
| 2.41 | % |
|
|
| 1.68 | % |
|
Lipper Tax-Exempt Money Market Fund Rank—Investor Class |
|
|
| 1/110 |
|
|
|
| 1/100 |
|
|
|
| 1/76 |
|
|
Alpine Municipal Money Market Fund—Investor Class, 7-day effective yield (as of 10/31/2007): 3.50% |
| |||||||||||||||
Alpine Municipal Money Market Fund—Advisor Class, 7-day effective yield (as of 10/31/2007): 3.24% |
|
|
|
(1) | Advisor Class shares commenced on March 30, 2004 and Investor Class shares commenced on December 5, 2002. Returns for indices are since December 5, 2002. |
23
|
|
Lipper Short Municipal Debt Funds Category Average
Alpine Tax Optimized Income Fund – Advisor Class*
Alpine Tax Optimized Income Fund – Investor Class
Calendar Year
2003
Calendar Year
2004
Calendar Year
2005
Calendar Year
2006
2007 thru 10/31/07
4.26%
2.05%
1.74%
0.59%
1.02%
2.15%
2.21%
1.42%
4.08%
4.01%
3.27%
3.38%
3.16%
2.50%
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.50
4.00
Alpine Ultra short Tax Optimized Income Fund vs. Peer Performance (Unaudited)
The graph and the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects the waiver of certain fees. Without the waiver of fees, the Fund’s total return would have been lower.
Performance data quoted represents past performance and is not predictive of future results. Investment return and principal value of the Fund fluctuate, so that the shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than performance quoted and may be obtained by calling 888-785-5578. Performance data shown does not reflect the 0.25% redemption fee imposed on shares held for fewer than 30 days. If it did, total returns would be reduced.
The Lehman Brothers Municipal 1 Year Bond Index is the 1-year (1-2) component of the Municipal Bond Index. The Lehman Brothers Municipal Bond Index is a rules-based, market-value weighted index engineered for the long-term, tax-exempt bond market. Lipper Short Municipal Debt Funds Index is an unmanaged index that tracks funds that invest in municipal debt issues with dollar-weighted average maturities of less than three years. The Lehman Brothers Municipal 1 Year Bond Index and the Lipper Short Municipal Debt Funds Average are unmanaged and do not reflect the deduction of fees associated with a mutual fund, such as investment advisor fees. Lipper Rankings for the periods shown are based on Fund total returns with dividends and distributions reinvested and do not reflect sales charges. The performance for the Tax Optimized Income Fund reflects the deduction of fees for these value-added services. Investors cannot directly invest in an index.
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Comparative Annualized Returns as of 10/31/07 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
| ||
|
|
| 1 Year |
|
| 3 Years |
| Since Inception(1) |
| |||
Alpine Ultra Short Tax Optimized Income Fund—Investor Class |
|
| 3.97% |
|
| 3.23% |
|
|
| 3.31% |
|
|
Alpine Ultra Short Optimized Income Fund—Investor Class |
|
| 3.75% |
|
| 2.92% |
|
|
| 2.92% |
|
|
Alpine Ultra Short Tax Optimized Income Fund—Investor Class |
|
| 3.79% |
|
| 2.98% |
|
|
| 2.92% |
|
|
Alpine Ultra Short Tax Tax Optimized Income Fund—Adviser Class |
|
| 3.82% |
|
| 3.14% |
|
|
| 2.77% |
|
|
Alpine Ultra Short Tax Optimized Income Fund—Adviser Class |
|
| 3.61% |
|
| 2.86% |
|
|
| 2.46% |
|
|
Alpine Ultra Short Tax Tax Optimized Income Fund—Adviser Class |
|
| 3.61% |
|
| 2.88% |
|
|
| 2.52% |
|
|
Lehman Brothers Municipal 1 Year Bond Index |
|
| 3.82% |
|
| 2.68% |
|
|
| 2.30% |
|
|
Lipper Short Municipal Debt Funds Average |
|
| 2.96% |
|
| 2.35% |
|
|
| 2.17% |
|
|
Lipper Short Municipal Debt Fund Rank—Investor Class |
|
| 2/58 |
|
| 2/53 |
|
|
| 2/41 |
|
|
|
|
(1) | Advisor Class shares commenced on March 30, 2004 and Investor shares commenced on December 5, 2002. Returns for indices are since December 5, 2002. |
24
|
|
Alpine Ultra Short Tax Optimized Income Fund | |
Portfolio Distributions* (Unaudited)
Cash/Cash Equivalents 3.1%
Put Bond (1) 6.9%
Commercial Paper 4.5%
Auction Rate Notes 17.0%
Variable Rate
Municipal Bonds 50.0%
General Market Note 6.3%
Municipal Bond 12.2%
(1) Less than 0.1%
|
|
|
|
|
|
Top 10 Holdings* (Unaudited) | |||||
1. |
| State Port Authority Revenue Bonds, |
|
|
|
|
| 4.900%, 11/30/2007 |
| 8.75% |
|
2. |
| Theop LLC, 8.969%, 11/30/2007 |
| 8.29% |
|
3. |
| Financial Authority Multi Family Housing |
|
|
|
|
| Revenue, 5.300%, 09/01/2008 |
| 5.33% |
|
4. |
| Central Higher Education Authority, |
|
|
|
|
| Senior Series - A, 4.600%, 11/30/2007 |
| 4.65% |
|
5. |
| State Health & Higher Education Authority, |
|
|
|
|
| 5.500%, 11/07/2007 |
| 4.55% |
|
6. |
| Puerto Rico GDB, 4.700%, 11/14/2007 |
| 4.48% |
|
7. |
| St. Paul Housing & Redevelopment Authority, |
|
|
|
|
| 3.930%, 11/07/2007 |
| 4.15% |
|
8. |
| State Energy Reshape & Development Gas |
|
|
|
|
| Facilities, 4.500%, 11/30/2007 |
| 3.98% |
|
9. |
| Jefferson Parish Industrial Development |
|
|
|
|
| Revenue Bonds, 4.000%, 11/01/2007 |
| 3.65% |
|
10. |
| Mississippi Business Finance Corp., Class - A, |
|
|
|
|
| 4.500%, 11/30/2007 |
| 3.65% |
|
|
|
* | Portfolio holdings and sector distributions are as |
|
Alpine Municipal Money Market Fund / Alpine Ultra Short Tax Optimized Income Fund—Commentary |
We are pleased to provide you with the commentary for the Alpine Income Trust for the period ending October 31, 2007. The Income Trust includes both the Alpine Municipal Money Market Fund and the Alpine Ultra Short Tax Optimized Income Fund.
Performance Summary
For the one-year-period, each Fund continued to produce superior relative performance leadership when compared against its counterparts in their respected categories. Based on total return, the Alpine Municipal Money Market Fund was ranked number one out of 110 Tax Exempt Money Market Funds according to Lipper Analytical. It had a total return for the period of 3.68% outperforming the Lipper average of 3.02%. Lipper ranked the Alpine Ultra Short Tax Optimized Income Fund number two out of 58 funds in the Short Municipal Debt category. The Fund had a total return of 3.97%. The Lipper average for the peer group was 2.96%. We would also like to report that as of October 31, 2007 Morningstar continued to award the Fund its highest Overall Morningstar Rating of five stars among 129 Muni National Short funds (derived from the weighted average of the fund’s three-, five- and ten-year risk adjusted return measure, if applicable).
There was one change that occurred in October. We decided to change the name of the Alpine Tax Optimized Income Fund to the Alpine Ultra Short Tax Optimized Income Fund as we felt that this title best describes the maturity structure of the Fund.
Market Overview
An intensifying credit crisis over the summer and fall of 2007 produced heightened volatility in the US bond market. As credit concerns spread from the sub-prime mortgage area to other fixed-income market sectors, investor’s appetite for risk shifted from ample to cautious. The resulting “flight to quality” produced price gains in U.S. Treasury securities and, to a lesser extent, high-quality municipal bonds. The more credit-sensitive areas of the market suffered sharp declines, including most mortgage-backed and corporate-backed bonds as well as high-yield municipal bonds.
As it became clear that the fallout from subprime mortgage defaults was broader than expected, liquidity in the financial markets quickly evaporated, which prompted the Fed to reduce the discount rate –the interest rate paid by financial institutions that borrow from the central bank – from 6.25% to 5.75% on August 17. The central bank then lowered the fed funds target rate twice to 4.50%, once by 50 basis points in September and then again by 25 basis points in October. The Fed cut interest rates because policymakers are concerned that problems in the housing market could spread to other parts of the economy. In other words, the Fed decided not to wait for the economy to get any worse before it took action. Many believe that additional reductions are likely, particularly if financial market instability threatens economic growth.
25
|
|
Alpine Ultra Short Tax Optimized Income Fund | |
New municipal issuance for the first 10 months of 2007 totaled more than $366.1 billion, according to The Bond Buyer. Despite a sharp drop in issuance in August, new supply for 2007 could surpass the $408 billion set in 2005. Demand for tax-free securities dried up temporarily in August as investors flocked to Treasury securities, but high-quality municipals enjoyed some renewed buying in September and October.
In a reversal of a multiyear trend, shorter-term municipal held up better than longer-term issues in the last six months, while higher-quality issues did much better than below investment-grade securities. Some of the better performers included state-issued general obligations maturing in one to five years as well as prerefunded bonds backed by U.S. Treasuries. Revenue bonds, tobacco bonds, and high-yield municipals were among the weakest segments. Bonds with long durations – a measure of interest rate sensitivity – also struggled, including securities at the long end of the yield curve.
The last three months of our reporting period brought the long-awaited correction in credit spreads to wider levels. This was not a surprise under the circumstances and in our opinion was well overdue as investors finally awoke to the reality that one should get rewarded to take on extra risk.
Alpine Municipal Money Market Fund
As we ended our six-month reporting cycle, the normally smooth functioning money markets burst into the headlines – victims of the spreading contagion from the subprime market meltdown. While the municipal money market was relatively unaffected by these troubles, the taxable money markets came under intense scrutiny, characterized by rapidly widening credit spreads and liquidity fears. These fears added a risk premium to the Libor-based markets not seen in years. Libor rates out six months widened 50 to 60 basis points in August versus the fed funds rate. At the same time, a flight to quality drove yields on short-term Treasuries well below the fed funds rate. As the markets settled down in September, Libor spreads narrowed to more normal levels.
By comparison, the municipal market barely missed a beat. Some signs of economic strength in May and June drove yields on one-year municipal obligations to the highest levels for the cycle – peaking at 3.75%.
However, ensuing data caused the markets to rethink what was going on, and these yields retraced their rise, ending the period about 40 basis points lower. We believe the greatest opportunity for yield is in the front end of our market, where variable rate supply continues to surge. Overnight and seven-day rates continued to offer the best return among all short-term municipal securities and we see no sign of this changing.
We continued our portfolio strategy of overweighting this part of the yield curve, and as a result the weighted average maturity of the fund continues to fluctuate between 8 and 10 days. This is a much shorter than the industry average of 29 days. Keeping the average weight short and highly concentrated in variable demand notes has provided the fund with greater liquidity and the ability to adjust to a rapidly changing market environment. Furthermore, with the short-end of the market so supply-and-demand driven, we were able to take advantage of upward pressure on these types of securities during April/May and September, thus providing the fund with a very attractive return.
The increased likelihood of Fed rate cuts in the near term suggests some modification to our portfolio strategy. However, the overwhelming portion of new supply into our market continues to be in the form of short, variable rate securities. This supply should continue to make this part of the curve the most attractive in terms of yield. Until this dynamic changes substantially, we expect to maintain an overweight position in the variable rate portion of the curve.
Alpine Ultra Short Tax Optimized Income Fund
The front end of the municipal yield curve fared reasonably well relative to most fixed-income assets except for US Treasuries. Most of the Treasury market’s relatively good performance occurred during the last three months of the reporting period, reflecting the flight of investors to Treasury securities because of credit problems in the subprime mortgage area. Although we saw no evidence of credit deterioration among municipal issuers, the tax-exempt market was nonetheless affected by selling pressures from highly leveraged hedge funds and other non-traditional tax exempt investors, which were attempting to raise cash as a result of diminished access to cash stemming from the subprime fallout.
Our strategy over the last six months was to shorten the average maturity of the fund to take advantage of very attractive rates in the front end of the curve. We took this approach because the one to five year part of the yield curve was relatively flat and investors weren’t getting compensated to extend their duration. Furthermore, as the credit markets deteriorated in the taxable sector, we felt is was prudent to maintain a defensive posture until we get a clearer picture of how the economy may perform in the near future.
In an attempt to capture higher yields, we purchased a number of yield-oriented bonds backed by health care facilities and municipalities. Despite the widening spreads of lower rated securities over the last two months, most of our purchased securities were relatively unaffected from price fluctuation as they all mature within one to three years. We also continued to invest in tax exempt variable demand notes and made select purchases of auction rate securities.
26
|
|
Alpine Ultra Short Tax Optimized Income Fund | |
For some time now we have steered away from corporate bonds as we felt they were overpriced on an after-tax basis when compared to their municipal counterparts. With investors chasing yield, spreads had narrowed dramatically thus creating an unfavorable environment to take on the added risk. Not surprisingly, we have seen spreads widen the last two months on these securities to more attractive levels although we are not prepared to step in yet.
We would also like to point out that although the fund can invest a portion of its assets in taxable securities, it has never held an asset backed or mortgage backed security nor have we ever invested in debt issued by structured investment vehicles. These types of securities have never met the objectives of the fund.
Outlook
Housing market data have strengthened the impression that downside risks to the economy are mounting as a result of ongoing financial market dislocations. The Federal Reserve has demonstrated through its recent rate reductions that it will act as need to keep such disruptions from derailing the economy. As always, we will continue to monitor the economic landscape and make adjustments as necessary.
Steven C. Shachat
Portfolio Manager
Investing in these funds involves special risks, including but not limited to, investing in municipal obligations and derivative securities, mortgage-related and asset-backed investments. Please refer to the prospectus for further details. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal alternative minimum tax for certain investors.
Please refer to the Schedule of Investments for fund holding information. Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. Each Lipper average represents a universe of Funds with similar invest objectives. Rankings for the periods shown include dividends and distributions reinvested and do not reflect sales charges.
The federal government guarantees interest payments from government securities, such as U.S. Treasury bills, while dividend payments carry no such guarantee. Government securities, if held to maturity, guarantee the timely payment of principal and interest. A basis point is a value equaling one one-hundredth of a percent (1/100 of 1%).
For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM (based on a Morningstar Risk Adjusted Return measure that accounts for variation in a fund’s monthly performance, including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Alpine Tax Optimized Income Fund—Investor Class received 5 stars among 129 Muni National Short funds for the three-year period.
2007 Morningstar, Inc. All Rights Reserved. The information contained herein (1) is proprietary to Morningstar (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
27
|
Alpine Dynamic Balance Fund |
Schedule of Portfolio Investments
October 31, 2007
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
|
|
Common Stocks—69.6% |
|
|
|
| ||
Agricultural/Chemicals—1.2% |
|
|
|
| ||
16,000 |
| Mosaic Co. (a) |
| $ | 1,116,800 |
|
|
|
|
|
| ||
Commercial Products & Services—14.2% |
|
|
|
| ||
5,000 |
| Alexander & Baldwin, Inc. |
|
| 261,900 |
|
30,000 |
| AMETEK, Inc. |
|
| 1,410,000 |
|
30,500 |
| Autoliv, Inc. |
|
| 1,926,990 |
|
25,000 |
| Black & Decker Corp. |
|
| 2,247,750 |
|
10,000 |
| Caterpillar, Inc. |
|
| 746,100 |
|
59,199 |
| Eagle Materials, Inc. |
|
| 2,338,952 |
|
10,000 |
| FedEx Corp. |
|
| 1,033,400 |
|
10,000 |
| Lincoln Electric Holdings, Inc. |
|
| 722,500 |
|
32,500 |
| McGrath Rentcorp |
|
| 1,114,100 |
|
15,000 |
| WESCO International, Inc. (a) |
|
| 699,750 |
|
8,000 |
| Whirlpool Corp. |
|
| 633,440 |
|
|
|
|
|
| ||
|
|
|
|
| 13,134,882 |
|
|
|
|
|
| ||
Commercial Services & Supplies—1.2% |
|
|
|
| ||
15,000 |
| Manpower, Inc. |
|
| 1,121,100 |
|
|
|
|
|
| ||
Construction Residential—2.9% |
|
|
|
| ||
30,000 |
| Hovnanian Enterprises, |
| $ | 341,100 |
|
28,000 |
| Lennar Corp.—Class A |
|
| 639,800 |
|
50,000 |
| Pulte Homes, Inc. |
|
| 742,000 |
|
47,400 |
| Standard Pacific Corp. |
|
| 227,520 |
|
30,000 |
| Toll Brothers, Inc. (a) |
|
| 687,300 |
|
|
|
|
|
| ||
|
|
|
|
| 2,637,720 |
|
|
|
|
|
| ||
Consumer Products & Services—0.5% |
|
|
|
| ||
10,000 |
| Darden Restaurants, Inc. |
|
| 430,000 |
|
|
|
|
|
| ||
Energy Equipment & Services—0.6% |
|
|
|
| ||
5,000 |
| Diamond Offshore Drilling, Inc. |
|
| 566,150 |
|
|
|
|
|
| ||
Energy Production & Equipment—6.2% |
|
|
|
| ||
15,000 |
| Chevron Corp. |
|
| 1,372,650 |
|
54,000 |
| CONSOL Energy, Inc. |
|
| 3,051,000 |
|
10,000 |
| Hess Corp. |
|
| 716,100 |
|
12,000 |
| Penn Virginia Corp. |
|
| 580,800 |
|
|
|
|
|
| ||
|
|
|
|
| 5,720,550 |
|
|
|
|
|
| ||
Finance/Banks—6.9% |
|
|
|
| ||
18,000 |
| Bancorp Rhode Island, Inc. |
|
| 609,120 |
|
23,041 |
| Bank of America Corp. |
|
| 1,112,420 |
|
6,000 |
| Bank of Florida Corp. (a) |
|
| 82,380 |
|
2,250 |
| Doral Financial Corp. (a) |
|
| 47,835 |
|
24,300 |
| IndyMac Bancorp, Inc. |
|
| 326,106 |
|
40,000 |
| JP Morgan Chase & Co. |
|
| 1,880,000 |
|
31,500 |
| New York Community Bancorp, Inc. |
|
| 586,215 |
|
6,474 |
| Southside Bancshares, Inc. |
|
| 143,399 |
|
20,000 |
| Wachovia Corp. |
|
| 914,600 |
|
17,500 |
| Webster Financial Corp. |
|
| 634,200 |
|
|
|
|
|
| ||
|
|
|
|
| 6,336,275 |
|
|
|
|
|
| ||
Financial Services—9.2% |
|
|
|
| ||
18,000 |
| Ambac Financial Group, Inc. |
|
| 662,940 |
|
40,000 |
| Fannie Mae |
|
| 2,281,600 |
|
12,227 |
| Fidelity National Title Group, |
|
| 188,174 |
|
55,000 |
| Impac Mortgage Holdings, Inc. |
|
| 61,600 |
|
12,000 |
| MBIA, Inc. |
|
| 516,480 |
|
14,000 |
| The Goldman Sachs Group, Inc. |
|
| 3,470,880 |
|
7,800 |
| The Student Loan Corp. |
|
| 1,295,424 |
|
|
|
|
|
| ||
|
|
|
|
| 8,477,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
| ||
Health Care Providers & Services—0.8% |
|
|
|
| ||
11,000 |
| Pediatrix Medical Group, Inc. (a) |
| $ | 720,500 |
|
|
|
|
|
| ||
Industrial Conglomerates—3.3% |
|
|
|
| ||
20,000 |
| General Electric Co. |
|
| 823,200 |
|
15,000 |
| Honeywell International, Inc. |
|
| 906,150 |
|
25,300 |
| Temple-Inland, Inc. |
|
| 1,357,851 |
|
|
|
|
|
| ||
|
|
|
|
| 3,087,201 |
|
|
|
|
|
| ||
Information Technology—2.1% |
|
|
|
| ||
5,374 |
| Fidelity National Information |
|
| 247,849 |
|
40,000 |
| Redecard S A (b)—ADR |
|
| 1,683,048 |
|
|
|
|
|
| ||
|
|
|
|
| 1,930,897 |
|
|
|
|
|
| ||
Pharmaceuticals—1.9% |
|
|
|
| ||
27,000 |
| Johnson & Johnson |
|
| 1,759,590 |
|
|
|
|
|
| ||
Real Estate Investment Trusts—8.9% |
|
|
|
| ||
15,000 |
| Boston Properties, Inc. |
|
| 1,625,100 |
|
10,000 |
| Developers Diversified Realty Corp. |
|
| 504,000 |
|
45,000 |
| DiamondRock Hospitality Co. |
|
| 862,200 |
|
10,000 |
| General Growth Properties, Inc. |
|
| 543,600 |
|
10,000 |
| Mack-Cali Realty Corp. |
|
| 395,900 |
|
23,000 |
| Simon Property Group, Inc. |
|
| 2,394,530 |
|
68,600 |
| Sunstone Hotel Investors, Inc. |
|
| 1,907,766 |
|
|
|
|
|
| ||
|
|
|
|
| 8,233,096 |
|
|
|
|
|
| ||
Retail—1.3% |
|
|
|
|
|
|
15,000 |
| J.C. Penney Company, Inc. |
|
| 843,600 |
|
10,000 |
| Walgreen Co. |
|
| 396,500 |
|
|
|
|
|
| ||
|
|
|
|
| 1,240,100 |
|
|
|
|
|
| ||
Retailing—1.8% |
|
|
|
| ||
40,000 |
| CVS Corp. |
|
| 1,670,800 |
|
|
|
|
|
| ||
Transportation—1.4% |
|
|
|
| ||
10,000 |
| Union Pacific Corp. |
|
| 1,280,400 |
|
|
|
|
|
| ||
Utilities—5.2% |
|
|
|
|
| |
61,000 |
| Allegheny Energy, Inc. |
|
| 3,700,260 |
|
31,200 |
| SJW Corp. |
|
| 1,089,816 |
|
|
|
|
|
| ||
|
|
|
|
| 4,790,076 |
|
|
|
|
|
| ||
|
| Total Common Stocks |
|
| 64,253,235 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Principal |
|
|
|
|
|
|
|
|
|
|
|
| |
Bonds and Notes—23.7% |
|
|
|
| ||
U.S. Treasury Bonds—21.5% |
|
|
|
| ||
$ 2,000,000 |
| 6.250%, 08/15/2023 |
|
| 2,321,876 |
|
6,000,000 |
| 6.000%, 02/15/2026 |
|
| 6,871,878 |
|
10,000,000 |
| 5.250%, 11/15/2028 |
|
| 10,610,940 |
|
|
|
|
|
| ||
|
|
|
|
| 19,804,694 |
|
|
|
|
|
| ||
U.S. Treasury Note—2.2% |
|
|
|
| ||
2,000,000 |
| 5.000%, 08/15/2011 |
|
| 2,071,094 |
|
|
|
|
|
| ||
Total Bonds and Notes |
|
| 21,875,788 |
| ||
|
|
|
See notes to financial statements.
28
|
Alpine Dynamic Balance Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
| ||
Short-Term Investments—0.7% |
|
|
|
| ||
645,230 |
| Fidelity Institutional Government |
| $ | 645,230 |
|
|
|
|
|
| ||
|
| Total Short-Term Investments |
|
| 645,230 |
|
|
|
|
|
| ||
|
| Total Investments |
|
| 86,774,253 |
|
|
| Other Assets in Excess of |
|
| 5,585,498 |
|
|
|
|
|
| ||
|
| TOTAL NET ASSETS—100.0% |
| $ | 92,359,751 |
|
|
|
|
|
|
ADR—American Depository Receipt
(a) Non Income Producing
(b) Restricted under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees.
See notes to financial statements.
29
|
Alpine Dynamic Dividend Fund |
Schedule of Portfolio Investments
October 31, 2007
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
|
|
Common Stocks—98.1% |
|
|
|
| ||
Aerospace & Defense—1.9% |
|
|
|
| ||
150,000 |
| Boeing Co. |
| $ | 14,788,500 |
|
225,000 |
| Honeywell International, Inc. |
|
| 13,592,250 |
|
|
|
|
|
| ||
|
|
|
|
| 28,380,750 |
|
|
|
|
|
| ||
Capital Goods—4.6% |
|
|
|
| ||
807,100 |
| Aircastle Ltd |
|
| 26,077,401 |
|
483,500 |
| Tognum Ag (a) |
|
| 17,446,201 |
|
340,000 |
| United Technologies Corp. |
|
| 26,040,600 |
|
|
|
|
|
| ||
|
|
|
|
| 69,564,202 |
|
|
|
|
|
| ||
Capital Markets—7.9% |
|
|
|
| ||
3,500,000 |
| Acta Holding ASA |
|
| 13,890,959 |
|
840,000 |
| Blackstone Group L P |
|
| 21,361,200 |
|
331,500 |
| Fortress Investment Group LLC |
|
| 7,309,575 |
|
58,000 |
| The Goldman Sachs Group, Inc. |
|
| 14,379,360 |
|
2,655,000 |
| Man Group PLC |
|
| 32,460,857 |
|
1,140,587 |
| New Star Asset Management |
|
| 8,419,281 |
|
2,139,975 |
| Segro PLC |
|
| 20,779,912 |
|
|
|
|
|
| ||
|
|
|
|
| 118,601,144 |
|
|
|
|
|
| ||
Commercial Services & Supplies—1.2% |
|
|
|
| ||
852,870 |
| Healthcare Services Group, Inc. |
|
| 18,729,025 |
|
|
|
|
|
| ||
Communications Equipment—1.1% |
|
|
|
| ||
700,500 |
| Balda Ag (a) |
|
| 7,508,800 |
|
200,000 |
| QUALCOMM, Inc. |
|
| 8,546,000 |
|
|
|
|
|
| ||
|
|
|
|
| 16,054,800 |
|
|
|
|
|
| ||
Construction & Engineering—3.4% |
|
|
|
| ||
317,500 |
| Chicago Bridge & Iron Co. N.V. |
|
| 15,875,000 |
|
45,000 |
| Fluor Corp. |
|
| 7,110,000 |
|
150,000 |
| Outotec Oyj |
|
| 11,450,713 |
|
506,700 |
| Peab Ab |
|
| 4,586,748 |
|
600,000 |
| Skanska AB |
|
| 11,854,441 |
|
|
|
|
|
| ||
|
|
|
|
| 50,876,902 |
|
|
|
|
|
| ||
Consumer Durables & Apparel—1.5% |
|
|
|
| ||
250,000 |
| VF Corp. |
|
| 21,782,500 |
|
|
|
|
|
| ||
Consumer Services—4.5% |
|
|
|
| ||
402,000 |
| Carnival Corporation |
|
| 19,287,960 |
|
410,000 |
| Nokian Renkaat Oyj |
|
| 15,441,443 |
|
1,756,586 |
| Tui Travel PLC (a) |
|
| 9,843,427 |
|
424,425 |
| Unibet Group PLC -SDR |
|
| 13,697,487 |
|
262,144 |
| Whitbread PLC |
|
| 9,653,318 |
|
|
|
|
|
| ||
|
|
|
|
| 67,923,635 |
|
|
|
|
|
| ||
Containers & Packaging—2.1% |
|
|
|
| ||
598,200 |
| Temple-Inland, Inc. |
|
| 32,105,394 |
|
|
|
|
|
| ||
Diversified Financials—5.8% |
|
|
|
| ||
2,965,000 |
| ABG Sundal Collier ASA |
|
| 8,231,814 |
|
1,100,000 |
| Absolute Capital Management Holdings |
|
| 1,741,775 |
|
250,000 |
| American Express Co. |
|
| 15,237,500 |
|
1,000,000 |
| Anglo Irish Bank Corp PLC |
|
| 16,803,071 |
|
308,000 |
| AWD Holding AG |
|
| 10,203,462 |
|
800,000 |
| Henderson Group PLC |
|
| 3,110,640 |
|
275,000 |
| JP Morgan Chase & Co. |
|
| 12,925,000 |
|
245,000 |
| Merrill Lynch & Co, Inc. |
|
| 16,174,900 |
|
57,000 |
| UBS AG |
|
| 3,060,330 |
|
|
|
|
|
| ||
|
|
|
|
| 87,488,492 |
|
|
|
|
|
| ||
Energy—1.9% |
|
|
|
|
|
|
425,000 |
| Statoil ASA |
|
| 14,381,009 |
|
170,000 |
| Total Sa |
|
| 13,703,918 |
|
|
|
|
|
| ||
|
|
|
|
| 28,084,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
|
|
Common Stocks—continued |
|
|
| |||
Energy Equipment & Services—3.2% |
|
|
|
| ||
241,700 |
| Diamond Offshore Drilling, Inc. |
| $ | 27,367,691 |
|
1,150,000 |
| Prosafe ASA |
|
| 20,399,493 |
|
|
|
|
|
| ||
|
|
|
|
| 47,767,184 |
|
|
|
|
|
| ||
Food & Staples Retailing—0.3% |
|
|
|
| ||
57,500 |
| Altria Group, Inc. |
|
| 4,193,475 |
|
|
|
|
|
| ||
Food Products—1.1% |
|
|
|
| ||
1,403,600 |
| B & G Foods Inc |
|
| 16,787,056 |
|
|
|
|
|
| ||
Food, Beverage, and Tobacco—1.7% |
|
|
|
| ||
356,000 |
| PepsiCo, Inc. |
|
| 26,244,320 |
|
|
|
|
|
| ||
Health Care Equipment & Services—0.9% |
|
|
|
| ||
414,125 |
| Meridian Bioscience, Inc. |
|
| 13,703,396 |
|
2 |
| West Pharmaceutical Services, Inc. |
|
| 83 |
|
|
|
|
|
| ||
|
|
|
|
| 13,703,479 |
|
|
|
|
|
| ||
Health Care Providers & Services—1.7% |
|
|
|
| ||
692,000 |
| Brookdale Sr Living, Inc. |
|
| 25,527,880 |
|
|
|
|
|
| ||
Health Care Technology—0.4% |
|
|
|
| ||
246,500 |
| Computer Programs & Systems, Inc. |
|
| 6,105,805 |
|
|
|
|
|
| ||
Homebuilders—2.1% |
|
|
|
| ||
933,138 |
| JM AB |
|
| 20,676,659 |
|
400,000 |
| KB Home |
|
| 11,056,000 |
|
|
|
|
|
| ||
|
|
|
|
| 31,732,659 |
|
|
|
|
|
| ||
Household & Personal Products—1.4% |
|
|
|
| ||
1 |
| Oriflame Cosmetics SA-SDR |
|
| 60 |
|
300,000 |
| The Procter & Gamble Co. |
|
| 20,856,000 |
|
|
|
|
|
| ||
|
|
|
|
| 20,856,060 |
|
|
|
|
|
| ||
Household Durables—0.6% |
|
|
|
| ||
1,025,973 |
| Aga Foodservice Group PLC |
|
| 8,853,239 |
|
|
|
|
|
| ||
Industrial Conglomerates—2.3% |
|
|
|
| ||
569,000 |
| General Electric Co. |
|
| 23,420,040 |
|
152,000 |
| Textron, Inc. |
|
| 10,519,920 |
|
|
|
|
|
| ||
|
|
|
|
| 33,939,960 |
|
|
|
|
|
| ||
Insurance—2.2% |
|
|
|
| ||
226,232 |
| FBD Holdings |
|
| 8,017,333 |
|
371,300 |
| Principal Financial Group, Inc. |
|
| 25,125,871 |
|
|
|
|
|
| ||
|
|
|
|
| 33,143,204 |
|
|
|
|
|
| ||
IT Services—2.1% |
|
|
|
| ||
155,000 |
| Automatic Data Processing, Inc. |
|
| 7,681,800 |
|
247,300 |
| Fidelity National Information Services, Inc. |
|
| 11,405,476 |
|
1,885,400 |
| Teleca Ab (a) |
|
| 4,630,354 |
|
245,000 |
| Total System Services, Inc. |
|
| 7,340,200 |
|
|
|
|
|
| ||
|
|
|
|
| 31,057,830 |
|
|
|
|
|
| ||
Life Sciences Tools & Services—1.3% |
|
|
|
| ||
459,000 |
| Pharmaceutical Product Development, Inc. |
|
| 19,388,160 |
|
|
|
|
|
| ||
Machinery—4.3% |
|
|
|
| ||
479,700 |
| Aker Yards As |
|
| 7,932,730 |
|
210,000 |
| Alfa Laval AB |
|
| 16,629,277 |
|
250,000 |
| ITT Industries, Inc. |
|
| 16,730,000 |
|
297,000 |
| Konecranes Oyj |
|
| 13,293,692 |
|
500,000 |
| Volvo Ab-b |
|
| 9,740,950 |
|
|
|
|
|
| ||
|
|
|
|
| 64,326,649 |
|
|
|
|
|
|
See notes to financial statements.
30
|
Alpine Dynamic Dividend Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
| |
Common Stocks—continued |
|
|
|
| ||
Marine—2.6% |
|
|
|
|
|
|
254,100 |
| Diana Shipping, Inc. |
| $ | 10,875,480 |
|
221,500 |
| Eagle Bulk Shipping, Inc. |
|
| 7,550,935 |
|
680,000 |
| Freeseas, Inc. (a) |
|
| 5,555,600 |
|
201,800 |
| Genco Shipping & Trading Ltd |
|
| 14,507,402 |
|
|
|
|
|
| ||
|
|
|
|
| 38,489,417 |
|
|
|
|
|
| ||
Materials—1.5% |
|
|
|
|
| |
250,000 |
| BHP Billiton, Ltd.—ADR |
|
| 21,815,000 |
|
|
|
|
|
| ||
Media—6.4% |
|
|
|
|
|
|
60,900 |
| Cinemark Holdings, Inc. |
|
| 1,048,089 |
|
465,500 |
| Eniro Ab |
|
| 5,954,279 |
|
1,900,400 |
| Gatehouse Media, Inc. |
|
| 21,835,596 |
|
630,800 |
| National Cinemedia, Inc. |
|
| 16,981,136 |
|
1,143,700 |
| Regal Entertainment Group—Class A |
|
| 25,813,309 |
|
1,300,000 |
| Time Warner, Inc. |
|
| 23,738,000 |
|
|
|
|
|
| ||
|
|
|
|
| 95,370,409 |
|
|
|
|
|
| ||
Metals & Mining—5.6% |
|
|
|
| ||
188,500 |
| Allegheny Technologies, Inc. |
|
| 19,259,045 |
|
400,000 |
| Cia Vale do Rio Doce—ADR |
|
| 15,072,000 |
|
150,000 |
| Freeport-McMoRan Copper & Gold, Inc. |
|
| 17,652,000 |
|
160,000 |
| Rautaruukki Oyj |
|
| 9,154,776 |
|
56,718 |
| Southern Copper Corp. |
|
| 7,923,505 |
|
950,000 |
| Zinifex, Ltd. |
|
| 14,732,455 |
|
|
|
|
|
| ||
|
|
|
|
| 83,793,781 |
|
|
|
|
|
| ||
Oil, Gas & Consumable Fuels—6.5% |
|
|
|
| ||
250,000 |
| Exxon Mobil Corporation |
|
| 22,997,500 |
|
340,000 |
| Hess Corp. |
|
| 24,347,400 |
|
95,000 |
| Motor Oil Corinth Refineries S.A. |
|
| 2,347,650 |
|
220,000 |
| Occidental Petroleum Corp. |
|
| 15,191,000 |
|
657,820 |
| Ship Finance International, Ltd. |
|
| 18,011,112 |
|
263,200 |
| Teekay Shipping Corporation |
|
| 14,726,040 |
|
|
|
|
|
| ||
|
|
|
|
| 97,620,702 |
|
|
|
|
|
| ||
Pharmaceuticals & Biotechnology—1.1% |
|
|
|
| ||
30,000 |
| Alk-Abello A/S |
|
| 6,460,202 |
|
185,000 |
| Merck & Co. Inc. |
|
| 10,778,100 |
|
|
|
|
|
| ||
|
|
|
|
| 17,238,302 |
|
|
|
|
|
| ||
Retail—2.4% |
|
|
|
|
|
|
621,800 |
| Limited Brands |
|
| 13,685,818 |
|
550,000 |
| Staples, Inc. |
|
| 12,837,000 |
|
150,000 |
| Target Corp. |
|
| 9,204,000 |
|
|
|
|
|
| ||
|
|
|
|
| 35,726,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
|
|
Common Stocks—continued |
|
|
|
| ||
Semiconductor & Semiconductor Equipment—1.5% |
|
|
|
| ||
505,000 |
| Intel Corporation |
| $ | 13,584,500 |
|
250,000 |
| Texas Instruments, Inc. |
|
| 8,150,000 |
|
|
|
|
|
| ||
|
|
|
|
| 21,734,500 |
|
|
|
|
|
| ||
Software—1.2% |
|
|
|
| ||
30,000 |
| Nintendo Co. Ltd. |
|
| 18,697,178 |
|
|
|
|
|
| ||
Telecommunications—2.8% |
|
|
|
| ||
395,000 |
| America Movil SA de CV—ADR |
|
| 25,829,050 |
|
200,000 |
| Mobile Telesystems—ADR |
|
| 16,600,000 |
|
|
|
|
|
| ||
|
|
|
|
| 42,429,050 |
|
|
|
|
|
| ||
Transportation—4.0% |
|
|
|
| ||
800,000 |
| Cintra Concesiones De Infrae |
|
| 13,975,520 |
|
822,100 |
| Macquarie Infrastructure Co. LLC |
|
| 34,330,896 |
|
4,000,000 |
| Macquarie Infrastructure Group |
|
| 11,772,924 |
|
|
|
|
|
| ||
|
|
|
|
| 60,079,340 |
|
|
|
|
|
| ||
Utilities—1.0% |
|
|
|
|
|
|
273,100 |
| ITC Holdings Corp. |
|
| 15,632,244 |
|
|
|
|
|
| ||
Total Common Stocks |
|
| 1,471,845,472 |
| ||
|
|
| ||||
Equity-Linked Structured Notes—0.8% |
|
|
|
| ||
521,600 |
| Morgan Stanley & Co., Inc – Fortress Investment Group LLC – Class A 09/10/08 |
|
| 11,538,111 |
|
|
|
|
|
| ||
|
| Total Equity-Linked Structured Notes |
|
| 11,538,111 |
|
|
|
|
|
| ||
Rights—0.0% |
|
|
|
|
|
|
465,500 |
| Eniro Ab Red |
|
| 134,109 |
|
|
|
|
|
| ||
|
| Total Rights |
|
| 134,109 |
|
|
|
|
|
| ||
Short-Term Investments—0.0% |
|
|
|
| ||
984 |
| Alpine Municipal Money Market Fund |
|
| 984 |
|
697 |
| Fidelity Institutional Government Portfolio |
|
| 697 |
|
|
|
|
|
| ||
|
| Total Short-Term Investments |
|
| 1,681 |
|
|
|
|
|
| ||
|
| Total Investments (Cost $1,403,553,562)—98.9% |
|
| 1,483,519,373 |
|
|
| Other Assets in Excess of Liabilities—1.1% |
|
| 16,552,813 |
|
|
|
|
|
| ||
|
| TOTAL NET ASSETS—100.0% |
| $ | 1,500,072,186 |
|
|
|
|
|
|
|
|
Percentages are stated as a percent of net assets. | |
| |
ADR—American Depository Receipt | |
| |
SDR—Special Drawing Rights | |
| |
SEK—Swedish Krona | |
| |
(a) | Non Income Producing |
See notes to financial statements.
31
|
Alpine Dynamic Financial Services Fund |
Schedule of Portfolio Investments
October 31, 2007
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
|
|
Common Stocks—104.8% |
|
|
|
| ||
Capital Markets—45.8% |
|
|
|
| ||
20,000 |
| Blackstone Group L P |
| $ | 508,600 |
|
1,200 |
| Climate Exchange PLC (a) |
|
| 29,917 |
|
19,700 |
| Cowen Group, Inc. (a) |
|
| 239,158 |
|
3,000 |
| E*Trade Financial Corp. (a) |
|
| 33,420 |
|
4,300 |
| Evercore Partners, Inc. (a) |
|
| 111,499 |
|
3,000 |
| FC Stone Group, Inc. (a) |
|
| 105,750 |
|
1,500 |
| Greenhill & Co, Inc. |
|
| 110,970 |
|
15,000 |
| Interactive Brokers Group, Inc. (a) |
|
| 433,050 |
|
1,000 |
| Intercontinental Exchange, Inc. (a) |
|
| 178,200 |
|
5,700 |
| Investment Technology Group, Inc. (a) |
|
| 238,830 |
|
34,400 |
| JMP Group, Inc. |
|
| 240,456 |
|
8,000 |
| Knight Capital Group, Inc. (a) |
|
| 107,280 |
|
3,000 |
| Lazard, Ltd. |
|
| 150,600 |
|
15,000 |
| MF Global Ltd (a) |
|
| 443,400 |
|
6,000 |
| Nasdaq Stock Market, Inc. (a) |
|
| 280,200 |
|
2,000 |
| Nymex Holdings, Inc. |
|
| 257,040 |
|
4,000 |
| Nyse Euronext |
|
| 375,480 |
|
7,500 |
| OptionsXpress Holdings, Inc. |
|
| 223,200 |
|
1,000 |
| Penson Worldwide, Inc. (a) |
|
| 16,930 |
|
3,573 |
| Piper Jaffray Cos. (a) |
|
| 183,652 |
|
1,000 |
| Raymond James Financial, Inc. |
|
| 37,250 |
|
43,600 |
| Sanders Morris Harris Group, Inc. |
|
| 396,324 |
|
5,000 |
| TD Ameritrade Holding Corp. (a) |
|
| 95,700 |
|
6,900 |
| Thomas Weisel Partners Group, Inc. (a) |
|
| 109,779 |
|
4,000 |
| TradeStation Group, Inc. (a) |
|
| 48,800 |
|
|
|
|
|
| ||
|
|
|
|
| 4,955,485 |
|
|
|
|
|
| ||
Commercial Banks—33.6% |
|
|
|
| ||
3,100 |
| American Community Bancshares, Inc. |
|
| 35,960 |
|
2,702 |
| AmericanWest Bancorp |
|
| 52,230 |
|
50,000 |
| Aozora Bank Ltd. |
|
| 172,063 |
|
75,000 |
| Banco Estado Rio Grande Sul (a) |
|
| 509,202 |
|
1,000 |
| Bancorp Rhode Island, Inc. |
|
| 33,840 |
|
5,593 |
| BancTrust Financial Group, Inc. |
|
| 75,450 |
|
12,400 |
| Bank Florida Corp Naples (a) |
|
| 170,252 |
|
2,000 |
| Barclays PLC |
|
| 25,118 |
|
2,481 |
| Boardwalk Bancorp, Inc. |
|
| 54,582 |
|
5,800 |
| Capital Corp Of The West |
|
| 112,810 |
|
4,000 |
| Cardinal Financial Corp. |
|
| 39,200 |
|
4,572 |
| Centennial Bank Holdings, Inc. (a) |
|
| 25,146 |
|
1,500 |
| Citigroup, Inc. |
|
| 62,850 |
|
21,194 |
| Citizens First Corp. |
|
| 227,835 |
|
1,000 |
| CoBiz, Inc. |
|
| 17,850 |
|
4,700 |
| Community National Bank of the Lakeway Area (a) |
|
| 43,240 |
|
4,000 |
| First Business Financial Services, Inc. |
|
| 73,680 |
|
2,400 |
| First Community Bancorp, Inc. |
|
| 116,880 |
|
1,260 |
| First Community Bank Corp. of America (a) |
|
| 17,319 |
|
7,826 |
| First Security Group, Inc. |
|
| 78,338 |
|
3,000 |
| GB&T Bancshares, Inc. |
|
| 28,980 |
|
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
|
|
Common Stocks—continued |
|
|
|
| ||
Commercial Banks—continued |
|
|
|
| ||
1,100 |
| International Bancshares Corp. |
| $ | 24,046 |
|
1,800 |
| Intervest Bancshares Corp. |
|
| 37,854 |
|
930 |
| MB Financial Corp. |
|
| 31,006 |
|
10,200 |
| New Centry Bancorp, Inc. (a) |
|
| 101,592 |
|
6,000 |
| Nexity Financial Corp. (a) |
|
| 48,240 |
|
2,375 |
| Old Point Financial Corp. |
|
| 45,647 |
|
12,042 |
| Pacific Mercantile Bancorp (a) |
|
| 171,117 |
|
1,000 |
| Patriot National Bancorp, Inc. |
|
| 19,700 |
|
1,400 |
| Prosperity Bancshares, Inc. |
|
| 45,248 |
|
2,935 |
| Rurban Financial Corp. |
|
| 37,128 |
|
2,388 |
| The South Financial Group, Inc. |
|
| 49,336 |
|
13,750 |
| Southern National Bank of Virginia (a) |
|
| 165,137 |
|
5,000 |
| State Bancorp, Inc. |
|
| 80,500 |
|
2,500 |
| Sterling Bancorp |
|
| 36,725 |
|
7,500 |
| Sterling Bancshares, Inc. |
|
| 91,500 |
|
6,000 |
| Summit State Bank |
|
| 56,340 |
|
2,000 |
| Superior Bancorp (a) |
|
| 15,280 |
|
2,000 |
| SVB Financial Group (a) |
|
| 103,580 |
|
3,000 |
| Synovus Financial Corp. |
|
| 79,080 |
|
1,500 |
| TCF Financial Corp. |
|
| 34,155 |
|
300 |
| Texas Capital Bancshares, Inc. (a) |
|
| 6,639 |
|
15,000 |
| Tidelands Bancshares, Inc. (a) |
|
| 195,750 |
|
750 |
| TowneBank |
|
| 14,498 |
|
2,205 |
| Valley Community Bancorp (a) |
|
| 31,587 |
|
1,050 |
| Valley National Bancorp |
|
| 21,504 |
|
1,780 |
| Wachovia Corp. |
|
| 81,399 |
|
1,000 |
| Wintrust Financial Corp. |
|
| 36,740 |
|
|
|
|
|
| ||
|
|
|
|
| 3,634,153 |
|
|
|
|
|
| ||
Commercial Services & Supplies—2.2% |
|
|
|
| ||
15,000 |
| Cai International, Inc. (a) |
|
| 199,650 |
|
3,500 |
| Experian Group Ltd |
|
| 36,715 |
|
|
|
|
|
| ||
|
|
|
|
| 236,365 |
|
|
|
|
|
| ||
Consumer Finance—0.2% |
|
|
|
| ||
2,000 |
| Encore Capital Group, Inc. (a) |
|
| 22,820 |
|
|
|
|
|
| ||
Insurance—5.8% |
|
|
|
| ||
10,650 |
| AmCOMP, Inc. (a) |
|
| 105,755 |
|
20,000 |
| Castlepoint Holdings Ltd |
|
| 233,000 |
|
10,000 |
| Crawford & Co. (a) |
|
| 66,900 |
|
8,000 |
| CRM Holdings, Ltd. (a) |
|
| 54,960 |
|
13,000 |
| Flagstone Reinsurance Holdings Ltd. |
|
| 170,560 |
|
|
|
|
|
| ||
|
|
|
|
| 631,175 |
|
|
|
|
|
| ||
IT Services—3.2% |
|
|
|
| ||
59,000 |
| Goldleaf Financial Solutions (a) |
|
| 165,200 |
|
20,000 |
| Online Resources Corp. (a) |
|
| 185,000 |
|
|
|
|
|
| ||
|
|
|
|
| 350,200 |
|
|
|
|
|
| ||
Thrifts & Mortgage Finance—14.0% |
|
|
|
| ||
42,500 |
| Alliance Bancorp Inc. |
|
| 371,876 |
|
1,700 |
| Astoria Financial Corp. |
|
| 44,183 |
|
6,202 |
| Atlantic Coast Fed Corp. |
|
| 82,735 |
|
1,000 |
| Bank Mutual Corp. |
|
| 11,110 |
|
3,000 |
| Berkshire Hills Bancorp, Inc. |
|
| 83,610 |
|
5,000 |
| Central Federal Corp. |
|
| 25,550 |
|
2,280 |
| Cooperative Bankshares, Inc. |
|
| 37,346 |
|
3,000 |
| Dime Community Bancshares |
|
| 43,170 |
|
See notes to financial statements.
32
|
Alpine Dynamic Financial Services Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
|
|
Common Stocks—continued |
|
|
|
| ||
Thrifts & Mortgage Finance—continued |
|
|
|
| ||
2,144 |
| Fidelity Bancorp, Inc. |
| $ | 33,232 |
|
10,000 |
| First Keystone Financial, Inc. (a) |
|
| 115,100 |
|
1,806 |
| First Pactrust Bancorp, Inc. |
|
| 42,892 |
|
2,000 |
| Franklin Bank Corp. (a) |
|
| 15,460 |
|
1,900 |
| Heritage Financial Corp. |
|
| 40,850 |
|
10,000 |
| Magyar Bancorp, Inc. (a) |
|
| 110,400 |
|
1,100 |
| Parkvale Financial Corp. |
|
| 32,764 |
|
10,000 |
| Peoples United Financial, Inc. |
|
| 177,800 |
|
1,500 |
| Rainier Pacific Financial Group, Inc. |
|
| 25,425 |
|
10,000 |
| United Western Bancorp, Inc. |
|
| 215,000 |
|
|
|
|
|
| ||
|
|
|
|
| 1,508,503 |
|
|
|
|
|
| ||
|
| Total Common Stocks |
|
| 11,338,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
| Security |
| Value |
| |
|
|
| ||||
|
|
|
|
|
|
|
Equity-Linked Structured Notes—4.5% |
|
|
|
| ||
22,000 |
| Morgan Stanley & Co., Inc – Fortress Investment Group LLC – Class A 09/10/08 |
| $ | 486,653 |
|
|
|
|
|
| ||
|
| Total Equity-Linked Structured Notes |
|
| 486,653 |
|
|
|
|
|
| ||
Short-Term Investments—0.0% |
|
|
|
| ||
328 |
| Fidelity Institutional Government Portfolio |
|
|
|
|
|
| Total Short-Term Investments |
|
| 328 |
|
|
|
|
|
| ||
|
| Total Investments |
|
| 11,825,682 |
|
|
| Liabilities in Excess of Other Assets—(9.3)% |
|
| (1,005,667 | ) |
|
|
|
|
| ||
|
| TOTAL NET ASSETS—100.0% |
| $ | 10,820,015 |
|
|
|
|
|
|
|
|
Percentages are stated as a percent of net assets. | |
| |
ADR—American Depository Receipt | |
|
|
(a) | Non Income Producing |
See notes to financial statements.
33
|
Alpine Dynamic Innovators Fund |
Schedule of Portfolio Investments
October 31, 2007
|
|
|
|
|
|
|
Shares |
| Security |
|
| Value |
|
|
| |||||
|
|
|
|
| ||
Common Stocks—61.5% |
|
|
|
| ||
Commercial Products & Services—6.2% |
|
|
|
| ||
7,000 |
| Air Products & Chemicals, Inc. |
| $ | 684,950 |
|
15,000 |
| American Electric Tech, Inc. (a) |
|
| 102,600 |
|
6,000 |
| China Fire & Security Group, Inc. (a) |
|
| 108,000 |
|
4,500 |
| Enernoc, Inc. (a) |
|
| 209,700 |
|
3,000 |
| Graco, Inc. |
|
| 118,080 |
|
6,000 |
| Johnson Controls, Inc. |
|
| 262,320 |
|
25,000 |
| LSI Industries, Inc. |
|
| 472,500 |
|
4,391 |
| Middleby Corp. (a) |
|
| 286,162 |
|
15,000 |
| Powersecure International Inc. (a) |
|
| 191,700 |
|
50,000 |
| Westport Innovations, Inc.— ADR (a) |
|
| 131,795 |
|
7,000 |
| VSE Corp. |
|
| 415,030 |
|
|
|
|
|
| ||
|
|
|
|
| 2,982,837 |
|
|
|
|
|
| ||
Communications—5.8% |
|
|
|
| ||
30,000 |
| Alvarion, Ltd. (a) |
|
| 377,400 |
|
5,000 |
| Comtech Telecommunications (a) |
|
| 271,250 |
|
1,000 |
| Google, Inc. (a) |
|
| 707,000 |
|
20,000 |
| Polycom, Inc. (a) |
|
| 559,600 |
|
25,000 |
| Sonic Solutions, Inc. (a) |
|
| 300,000 |
|
5,000 |
| Millicom International Cellular S A (a) |
|
| 587,400 |
|
|
|
|
|
| ||
|
|
|
|
| 2,802,650 |
|
|
|
|
|
| ||
Consumer Products & Services—2.2% |
|
|
|
| ||
100,000 |
| Alibaba.com Ltd (a) |
|
| 174,188 |
|
1,000 |
| Blue Nile, Inc. (a) |
|
| 79,040 |
|
9,000 |
| Priceline.com, Inc. (a) |
|
| 837,900 |
|
|
|
|
|
| ||
|
|
|
|
| 1,091,128 |
|
|
|
|
|
| ||
Electronic Systems & Equipment—11.5% |
|
|
|
| ||
8,000 |
| American Science & Engineering, Inc. |
|
| 483,520 |
|
2,300 |
| Apple, Inc. (a) |
|
| 436,885 |
|
12,000 |
| Broadcom Corp. (a) |
|
| 390,600 |
|
2,000 |
| Daktronics, Inc. |
|
| 59,640 |
|
9,000 |
| Flir Systems, Inc. (a) |
|
| 624,510 |
|
10,000 |
| IPG Photonics Corp. (a) |
|
| 190,400 |
|
2,000 |
| Itron, Inc. (a) |
|
| 214,980 |
|
17,000 |
| Logitech International S.A. (a) |
|
| 600,440 |
|
10,000 |
| MEMC Electronic Materials, Inc. (a) |
|
| 732,200 |
|
12,975 |
| Mocon, Inc. |
|
| 146,877 |
|
4,000 |
| NAVTEQ Corp. (a) |
|
| 308,800 |
|
4,000 |
| Netlogic Microsystems, Inc. (a) |
|
| 132,800 |
|
4,000 |
| Nokia OYJ - ADR |
|
| 158,880 |
|
10,000 |
| Sirf Technology Holdings, Inc. (a) |
|
| 298,100 |
|
20,000 |
| Stratasys, Inc. (a) |
|
| 520,600 |
|
6,000 |
| Varian Semiconductor Equipment |
|
| 276,120 |
|
|
|
|
|
| ||
|
|
|
|
| 5,575,352 |
|
|
|
|
|
| ||
Energy Equipment & Services—1.2% |
|
|
|
| ||
4,000 |
| Core Laboratories NV (a) |
|
| 583,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
| Security |
|
| Value |
|
|
| |||||
|
|
|
|
| ||
Common Stocks—continued |
|
|
|
| ||
Energy Production Equipment—3.2% |
|
|
|
| ||
11,000 |
| Bolt Technology Corp. (a) |
| $ | 475,750 |
|
8,000 |
| FMC Technologies, Inc. (a) |
|
| 485,040 |
|
15,000 |
| Ion Geophysical Corp. (a) |
|
| 227,250 |
|
15,000 |
| Rentech, Inc. (a) |
|
| 31,950 |
|
5,000 |
| Weatherford International Ltd. (a) |
|
| 324,550 |
|
|
|
|
|
| ||
|
|
|
|
| 1,544,540 |
|
|
|
|
|
| ||
Financial Services—4.5% |
|
|
|
| ||
8,000 |
| AMBAC Financial Group, Inc. |
|
| 294,640 |
|
1,500 |
| CME Group, Inc. |
|
| 999,375 |
|
5,000 |
| Medallion Financial Corp. |
|
| 52,900 |
|
12,000 |
| Portfolio Recovery Associates, Inc. |
|
| 541,320 |
|
5,000 |
| Redecard S A—GDR (a) |
|
| 210,381 |
|
5,000 |
| TradeStation Group, Inc. (a) |
|
| 61,000 |
|
|
|
|
|
| ||
|
|
|
|
| 2,159,616 |
|
|
|
|
|
| ||
Healthcare—4.8% |
|
|
|
| ||
4,000 |
| Alcon, Inc. |
|
| 608,840 |
|
14,000 |
| Inventiv Health, Inc. (a) |
|
| 591,220 |
|
11,000 |
| Pediatrix Medical Group, Inc. (a) |
|
| 720,500 |
|
10,000 |
| Psychiatric Solutions, Inc. (a) |
|
| 396,000 |
|
|
|
|
|
| ||
|
|
|
|
| 2,316,560 |
|
|
|
|
|
| ||
Industrial Capital Goods—2.5% |
|
|
|
| ||
12,000 |
| Dynamic Materials Corp. |
|
| 660,240 |
|
15,000 |
| Titanium Metals Corp. (a) |
|
| 528,000 |
|
|
|
|
|
| ||
|
|
|
|
| 1,188,240 |
|
|
|
|
|
| ||
Information Technology—1.5% |
|
|
|
| ||
13,400 |
| Ansys, Inc. (a) |
|
| 520,054 |
|
5,000 |
| Synchronoss Technologies, Inc. (a) |
|
| 200,000 |
|
|
|
|
|
| ||
|
|
|
|
| 720,054 |
|
|
|
|
|
| ||
Medical Technology & Equiptment—9.8% |
|
|
|
| ||
8,335 |
| Abaxis, Inc. (a) |
|
| 244,382 |
|
10,000 |
| Angiodynamics, Inc. (a) |
|
| 200,000 |
|
8,000 |
| Arthrocare Corp. (a) |
|
| 518,720 |
|
4,000 |
| Bio-Reference Labs, Inc. (a) |
|
| 128,320 |
|
3,000 |
| Given Imaging Ltd (a) |
|
| 85,590 |
|
5,000 |
| Illumina, Inc. (a) |
|
| 280,750 |
|
1,500 |
| Intuitive Surgical, Inc. (a) |
|
| 490,305 |
|
12,000 |
| Invitrogen Corp. (a) |
|
| 1,090,440 |
|
10,000 |
| Kinetic Concepts, Inc. (a) |
|
| 601,000 |
|
10,000 |
| Nighthawk Radiology Holdings, Inc. (a) |
|
| 235,400 |
|
6,000 |
| Onyx Pharmaceuticals, Inc. (a) |
|
| 280,260 |
|
8,000 |
| Orchid Cellmark, Inc. (a) |
|
| 44,480 |
|
20,216 |
| Sequenom, Inc. (a) |
|
| 196,297 |
|
15,000 |
| Synovis Life Technologies, Inc. (a) |
|
| 358,200 |
|
|
|
|
|
| ||
|
|
|
|
| 4,754,144 |
|
|
|
|
|
| ||
Miscellaneous—1.1% |
|
|
|
| ||
1,000 |
| E-House China Holdings Ltd— ADR (a) |
|
| 35,500 |
|
12,000 |
| Hexcel Corp. (a) |
|
| 300,360 |
|
15,000 |
| Resin Systems, Inc. (a) |
|
| 22,500 |
|
13,000 |
| Scientific Learning Corp. (a) |
|
| 77,610 |
|
10,288 |
| Sutron Corp. (a) |
|
| 117,180 |
|
|
|
|
|
| ||
|
|
|
|
| 553,150 |
|
|
|
|
|
|
See notes to financial statements.
34
|
Alpine Dynamic Innovators Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
Shares |
| Security |
|
| Value |
|
|
| |||||
|
|
|
|
| ||
Common Stocks—continued |
|
|
|
| ||
Pharmaceuticals—2.9% |
|
|
|
| ||
8,000 |
| Biogen IDEC, Inc. (a) |
| $ | 595,520 |
|
12,000 |
| Merck & Co., Inc. |
|
| 699,120 |
|
10,000 |
| Targacept, Inc. (a) |
|
| 93,900 |
|
|
|
|
|
| ||
|
|
|
|
| 1,388,540 |
|
|
|
|
|
| ||
Pharma Development—0.3% |
|
|
|
| ||
45,000 |
| Cell Genesys, Inc. (a) |
|
| 153,000 |
|
|
|
|
|
| ||
Retail—0.2% |
|
|
|
| ||
2,000 |
| Gamestop Corp New (a) |
|
| 118,440 |
|
|
|
|
|
| ||
Technology—3.8% |
|
|
|
| ||
25,000 |
| Acme Packet, Inc. (a) |
|
| 359,000 |
|
10,000 |
| Cognos, Inc. (a) |
|
| 503,300 |
|
13,000 |
| Formfactor, Inc. (a) |
|
| 508,430 |
|
5,000 |
| Sigma Designs, Inc. (a) |
|
| 293,850 |
|
1,250 |
| Vmware, Inc. (a) |
|
| 156,038 |
|
|
|
|
|
| ||
|
|
|
|
| 1,820,618 |
|
|
|
|
|
| ||
|
| Total Common Stocks |
|
| 29,752,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
| Security |
|
| Value |
|
|
| |||||
|
|
|
|
| ||
Short-Term Investments—43.8% |
|
|
|
| ||
21,162,381 |
| Fidelity Institutional Government |
| $ | 21,162,381 |
|
|
|
|
|
| ||
|
| Total Short-Term Investments |
|
| 21,162,381 |
|
|
|
|
|
| ||
|
| Total Investments |
|
| 50,915,010 |
|
|
| Liabilities in Excess of Other |
|
| (2,560,281 | ) |
|
|
|
|
| ||
|
| TOTAL NET ASSETS—100.0% |
| $ | 48,354,729 |
|
|
|
|
|
|
ADR—American Depository Receipt
GDR—Global Depository Receipt
(a) Non Income Producing
See notes to financial statements.
35
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—98.8% |
|
|
|
| |||
Alabama—0.7% |
|
|
|
| |||
$ | 1,325,000 |
| Forsyth Housing Authority |
| $ | 1,325,000 |
|
| 4,115,000 |
| Mobile Industrial Development |
|
| 4,115,000 |
|
| 1,000,000 |
| Mobile Industrial Development |
|
| 1,000,000 |
|
| 195,000 |
| Montgomery Industrial |
|
| 195,000 |
|
| 980,000 |
| Montgomery Industrial |
|
| 980,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,615,000 |
|
|
|
|
|
|
| ||
Alaska—0.1% |
|
|
|
|
| ||
| 770,000 |
| Alaska Industrial Development & |
|
| 770,000 |
|
|
|
|
|
|
| ||
Arizona—0.2% |
|
|
|
|
| ||
| 1,000,000 |
| Coconino County Industrial |
|
| 1,000,000 |
|
| 445,000 |
| Maricopa County Industrial |
|
| 445,000 |
|
| 1,250,000 |
| Pinal County Industrial Authority, |
|
| 1,250,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,695,000 |
|
|
|
|
|
|
| ||
California—1.5% |
|
|
|
| |||
| 9,400,000 |
| Deutsche Bank Spears/lifers Trust, |
|
| 9,400,000 |
|
| 3,000,000 |
| Deutsche Bank/cal Statewide |
|
| 3,000,000 |
|
| 4,600,000 |
| Riverside County Industrial |
|
| 4,600,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 17,000,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
| |||
Municipal Bonds—continued |
|
|
|
| |||
Colorado—5.7% |
|
|
|
| |||
$ | 3,000,000 |
| Bachelor Gulch Metropolitan |
| $ | 3,000,000 |
|
| 1,800,000 |
| Broomfield Village Metropolitan |
|
| 1,800,000 |
|
| 2,300,000 |
| Colorado Housing & Finance |
|
| 2,300,000 |
|
| 1,000,000 |
| Colorado Housing & Finance |
|
| 1,000,000 |
|
| 26,290,000 |
| Denver City & County Airport |
|
| 26,290,000 |
|
| 2,000,000 |
| Denver City & County Economic |
|
| 2,000,000 |
|
| 1,305,000 |
| Housing & Finance Authority |
|
| 1,305,000 |
|
| 1,500,000 |
| Housing & Finance Authority |
|
| 1,500,000 |
|
| 2,600,000 |
| Housing & Finance Authority |
|
| 2,600,000 |
|
| 1,850,000 |
| Housing & Finance Authority |
|
| 1,850,000 |
|
| 1,475,000 |
| Housing & Finance Authority |
|
| 1,475,000 |
|
| 1,410,000 |
| Housing & Finance Authority |
|
| 1,410,000 |
|
| 2,300,000 |
| Housing & Finance Authority |
|
| 2,300,000 |
|
See notes to financial statements.
36
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Colorado—continued |
|
|
|
| |||
$ | 6,500,000 |
| Housing & Finance Authority |
| $ | 6,500,000 |
|
| 2,012,000 |
| Jefferson County Industrial |
|
| 2,012,000 |
|
| 1,350,000 |
| Montrose County Economic |
|
| 1,350,000 |
|
| 2,450,000 |
| State Agriculture Development |
|
| 2,450,000 |
|
| 1,300,000 |
| State Agriculture Development |
|
| 1,300,000 |
|
| 1,000,000 |
| Triview Colorado Metropolitan |
|
| 1,000,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 63,442,000 |
|
|
|
|
|
|
| ||
Connecticut—1.9% |
|
|
|
| |||
| 20,875,000 |
| State Health & Educational |
|
| 20,875,000 |
|
|
|
|
|
|
| ||
Delaware—0.8% |
|
|
|
|
| ||
| 8,475,000 |
| Lehman Municipal Trust Receipts, |
|
| 8,475,000 |
|
|
|
|
|
|
| ||
District of Columbia—0.6% |
|
|
|
| |||
| 6,775,000 |
| Metropolitan Washington DC |
|
| 6,775,000 |
|
|
|
|
|
|
| ||
Florida—1.2% |
|
|
|
| |||
| 1,950,000 |
| Brevard County Industrial |
|
| 1,950,000 |
|
| 3,285,000 |
| Miami-Dade County Aviation |
|
| 3,285,000 |
|
| 6,675,000 |
| Puttable Floating Option Tax |
|
| 6,675,000 |
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
| |||
Municipal Bonds—continued |
|
|
|
| |||
Florida—continued |
|
|
| �� | |||
$ | 1,300,000 |
| St Johns County Industrial |
| $ | 1,300,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 13,210,000 |
|
|
|
|
|
|
| ||
Georgia—0.6% |
|
|
|
|
| ||
| 1,310,000 |
| De Kalb County Housing Authority |
|
| 1,310,000 |
|
| 1,410,000 |
| Douglas County Development |
|
| 1,410,000 |
|
| 1,520,000 |
| Lowndes County Georgia |
|
| 1,520,000 |
|
| 2,300,000 |
| Walton County Industrial Building |
|
| 2,300,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,540,000 |
|
|
|
|
|
|
| ||
Idaho—0.3% |
|
|
|
| |||
| 2,000,000 |
| Cassia County Industrial |
|
| 2,000,000 |
|
| 1,000,000 |
| Hailey Industrial Development |
|
| 1,000,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,000,000 |
|
|
|
|
|
|
| ||
Illinois—6.2% |
|
|
|
| |||
| 830,000 |
| Carol Stream Industrial |
|
| 830,000 |
|
| 5,600,000 |
| Chicago Multifamily Housing |
|
| 5,600,000 |
|
| 13,403,500 |
| Chicago O’Hare International |
|
| 13,403,500 |
|
| 965,000 |
| Clinton Industrial Development |
|
| 965,000 |
|
See notes to financial statements.
37
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
| |||
Municipal Bonds—continued |
|
|
|
| |||
Illinois—continued |
|
|
|
| |||
$ | 2,000,000 |
| Deutsche Bank/Lifers Trust— |
| $ | 2,000,000 |
|
| 3,080,000 |
| Development Authority Industrial |
|
| 3,080,000 |
|
| 655,000 |
| Development Finance Authority |
|
| 655,000 |
|
| 440,000 |
| Development Finance Authority |
|
| 440,000 |
|
| 550,000 |
| Development Finance Authority |
|
| 550,000 |
|
| 1,240,000 |
| Development Finance Authority |
|
| 1,240,000 |
|
| 2,625,000 |
| Development Finance Authority |
|
| 2,625,000 |
|
| 500,000 |
| Development Finance Authority |
|
| 500,000 |
|
| 800,000 |
| Development Finance Authority |
|
| 800,000 |
|
| 2,600,000 |
| Development Financial Authority |
|
| 2,600,000 |
|
| 2,725,000 |
| Development Financial Authority |
|
| 2,725,000 |
|
| 1,625,000 |
| Finance Authority Industrial |
|
| 1,625,000 |
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Illinois—continued |
|
|
|
| |||
$ | 1,250,000 |
| Finance Authority Industrial |
| $ | 1,250,000 |
|
| 1,100,000 |
| Harvard Health Care Facility |
|
| 1,100,000 |
|
| 3,400,000 |
| Harvey Multifamily Revenue, |
|
| 3,400,000 |
|
| 6,340,000 |
| Lakemoor Multifamily Revenue, |
|
| 6,340,000 |
|
| 3,000,000 |
| Lockport Industrial Developement |
|
| 3,000,000 |
|
| 3,860,000 |
| Mc Henry County Illinois Debt |
|
| 3,861,523 |
|
| 4,000,000 |
| Phoenix Realty Special |
|
| 4,000,000 |
|
| 1,800,000 |
| Richton Park Industrial |
|
| 1,800,000 |
|
| 5,000,000 |
| Will County Exempt Facilities |
|
| 5,000,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 69,390,023 |
|
|
|
|
|
|
| ||
Indiana—2.1% |
|
|
|
|
| ||
| 700,000 |
| Development Finance Authority |
|
| 700,000 |
|
| 6,500,000 |
| Hartford City Industrial Limited |
|
| 6,500,000 |
|
| 500,000 |
| Health Facility Financing |
|
| 500,000 |
|
| 3,385,000 |
| Hobart Industrial Economic |
|
| 3,385,000 |
|
| 7,980,000 |
| State Financial Authority Industrial |
|
| 7,980,000 |
|
See notes to financial statements.
38
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
| |||
Municipal Bonds—continued |
|
|
|
| |||
Indiana—continued |
|
|
|
| |||
$ | 1,985,000 |
| Knox Industrial Economic |
| $ | 1,985,000 |
|
| 640,000 |
| Lawrence Industrial Economic |
|
| 640,000 |
|
| 1,500,000 |
| Whitley County Industrial |
|
| 1,500,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 23,190,000 |
|
|
|
|
|
|
| ||
Iowa—2.6% |
|
|
|
|
| ||
| 1,110,000 |
| Finance Authority Development |
|
| 1,110,000 |
|
| 5,000,000 |
| Finance Authority Industrial |
|
| 5,000,000 |
|
| 4,330,000 |
| Finance Authority Solid Waste |
|
| 4,330,000 |
|
| 5,300,000 |
| Finance Authority Solid Waste |
|
| 5,300,000 |
|
| 3,250,000 |
| Finance Authority Solid Waste |
|
| 3,250,000 |
|
| 2,000,000 |
| Finance Authority Industrial |
|
| 2,000,000 |
|
| 6,000,000 |
| Finance Authority Solid Waste |
|
| 6,000,000 |
|
| 1,850,000 |
| Le Mars Iowa Industrial |
|
| 1,850,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 28,840,000 |
|
|
|
|
|
|
| ||
Kansas—0.1% |
|
|
|
| |||
| 1,110,000 |
| State Development Finance |
|
| 1,110,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Kentucky—0.1% |
|
|
|
| |||
$ | 300,000 |
| Bardstown Industrial Revenue |
| $ | 300,000 |
|
| 755,000 |
| Hancock County Industrial |
|
| 755,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,055,000 |
|
|
|
|
|
|
| ||
Louisiana—1.0% |
|
|
|
| |||
| 2,000,000 |
| Ascension Parish Waste Disposal, |
|
| 2,000,000 |
|
| 9,565,000 |
| Morgan Keegan Municipal |
|
| 9,565,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 11,565,000 |
|
|
|
|
|
|
| ||
Maryland—0.4% |
|
|
|
| |||
| 4,600,000 |
| State Health & Higher |
|
| 4,600,000 |
|
|
|
|
|
|
| ||
Michigan—0.7% |
|
|
|
| |||
| 3,500,000 |
| State Strategic Fund LTD |
|
| 3,500,000 |
|
| 1,000,000 |
| Strategic Fund Limited Obligation |
|
| 1,000,000 |
|
| 1,725,000 |
| Strategic Fund Limited Obligation |
|
| 1,725,000 |
|
| 900,000 |
| Strategic Fund Limited Obligation |
|
| 900,000 |
|
| 600,000 |
| Strategic Fund Limited Obligation |
|
| 600,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,725,000 |
|
|
|
|
|
|
| ||
Minnesota—8.3% |
|
|
|
| |||
| 1,700,000 |
| Blooming Prairie Industrial |
|
| 1,700,000 |
|
See notes to financial statements.
39
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Minnesota—continued |
|
|
|
| |||
$ | 2,410,000 |
| Bloomington Multifamily Housing |
| $ | 2,410,000 |
|
| 3,410,000 |
| Board Securitization Trust S—1 |
|
| 3,410,000 |
|
| 3,495,000 |
| Board Securitization Trust S—2 |
|
| 3,495,000 |
|
| 235,000 |
| Dakota County Community |
|
| 235,000 |
|
| 17,600,000 |
| East Grand Forks Solid Waste |
|
| 17,600,000 |
|
| 10,250,000 |
| East Grand Forks Solid Waste |
|
| 10,250,000 |
|
| 8,245,000 |
| JB Bond Securitization Trust Class A |
|
| 8,245,000 |
|
| 1,240,000 |
| Jenkins Industrial Development |
|
| 1,240,000 |
|
| 2,780,000 |
| Minneapolis Multifamily Housing, |
|
| 2,780,000 |
|
| 16,310,500 |
| Minnesota St—Series 1440— |
|
| 16,310,500 |
|
| 3,510,000 |
| Northfield Multifamily Housing |
|
| 3,510,000 |
|
| 2,310,000 |
| Owatonna Housing Revenue, |
|
| 2,310,000 |
|
| 3,605,000 |
| Ramsey Industrial Development |
|
| 3,605,000 |
|
| 10,750,000 |
| St Paul Housing & Redevelopment |
|
| 10,750,000 |
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Minnesota—continued |
|
|
|
| |||
$ | 2,920,000 |
| St Paul Housing & Redevelopment |
| $ | 2,920,000 |
|
| 1,745,000 |
| Waite Park Minnesota Industrial |
|
| 1,745,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 92,515,500 |
|
|
|
|
|
|
| ||
Mississippi—1.2% |
|
|
|
| |||
| 5,000,000 |
| Biloxi Housing Authority |
|
| 5,000,000 |
|
| 1,355,000 |
| Mississippi Business Financial Corp |
|
| 1,355,000 |
|
| 6,750,000 |
| Prentiss County Industrial |
|
| 6,750,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 13,105,000 |
|
|
|
|
|
|
| ||
Missouri—2.3% |
|
|
|
| |||
| 3,100,000 |
| Cabool Industrial Development |
|
| 3,100,000 |
|
| 8,100,000 |
| Lehman Municipal Trust Receipts, |
|
| 8,100,000 |
|
| 3,230,000 |
| Industrial Development Authority |
|
| 3,230,000 |
|
| 880,000 |
| Riverside Industrial Development |
|
| 882,653 |
|
| 4,000,000 |
| Springfield Industrial Development |
|
| 4,000,000 |
|
| 3,510,000 |
| Springfield Industrial Development |
|
| 3,510,000 |
|
See notes to financial statements.
40
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Missouri—continued |
|
|
|
| |||
$ | 1,060,000 |
| St Charles County Industrial |
| $ | 1,060,000 |
|
|
|
|
|
|
|
|
|
| 2,000,000 |
| St. Joseph Industrial Development |
|
| 2,000,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 25,882,653 |
|
|
|
|
|
|
| ||
Multistate—29.8% |
|
|
|
| |||
| 11,220,000 |
| Class B Revenue Bond |
|
| 11,220,000 |
|
| 9,745,000 |
| Class B Revenue Bond |
|
| 9,745,000 |
|
| 10,000,000 |
| Clipper Tax-Exempt |
|
| 10,000,000 |
|
| 11,495,000 |
| Deutsche Bank Spears/lifers |
|
| 11,495,000 |
|
| 41,405,000 |
| JP Morgan Chase & Co I-Putters, |
|
| 41,405,000 |
|
| 8,465,000 |
| JP Morgan Chase & Co I-Putters, |
|
| 8,465,000 |
|
| 14,800,000 |
| JP Morgan Chase & Co Putters— |
|
| 14,800,000 |
|
| 4,195,000 |
| JP Morgan Chase & Co Putters— |
|
| 4,195,000 |
|
| 5,506,500 |
| Morgan Stanley & Co Inc, Floaters |
|
| 5,506,500 |
|
| 12,010,000 |
| Morgan Stanley & Co Inc, Floaters |
|
| 12,010,000 |
|
| 3,980,500 |
| Morgan Stanley & Co Inc, Floaters |
|
| 3,980,500 |
|
| 11,092,500 |
| Morgan Stanley & Co Inc Trust |
|
| 11,092,500 |
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Multistate—continued |
|
|
|
| |||
$ | 5,667,500 |
| Morgan Stanley & Co Inc Trust |
| $ | 5,667,500 |
|
| 4,340,000 |
| Puttable Floating Option |
|
| 4,340,000 |
|
| 10,685,000 |
| Puttable Floating Option |
|
| 10,685,000 |
|
| 13,025,000 |
| Puttable Floating Option |
|
| 13,025,000 |
|
| 18,540,000 |
| Puttable Floating Option |
|
| 18,540,000 |
|
| 8,355,000 |
| Puttable Floating Option |
|
| 8,355,000 |
|
| 29,060,000 |
| Puttable Floating Option |
|
| 29,060,000 |
|
| 38,650,000 |
| Puttable Floating Option |
|
| 38,650,000 |
|
| 5,780,000 |
| Puttable Floating Option |
|
| 5,780,000 |
|
| 3,100,000 |
| Revenue Bond Certificate Series |
|
| 3,100,000 |
|
| 5,000,000 |
| Revenue Bond Certificate Series |
|
| 5,000,000 |
|
| 5,000,000 |
| Revenue Bond Certificate Series |
|
| 5,000,000 |
|
See notes to financial statements.
41
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
| ||||||
|
|
|
|
|
|
| |
Municipal Bonds—continued |
|
|
|
| |||
Multistate—continued |
|
|
|
| |||
$ | 2,000,000 |
| Revenue Bond Certificate Series |
| $ | 2,000,000 |
|
| 4,325,000 |
| Revenue Bond Certificate Series |
|
| 4,325,000 |
|
| 6,915,000 |
| Revenue Bond Certificate Series |
|
| 6,915,000 |
|
| 10,700,000 |
| Revenue Bond Certificate Series |
|
| 10,700,000 |
|
| 17,300,000 |
| Sunamerica Trust Class A |
|
| 17,300,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 332,357,000 |
|
|
|
|
|
|
| ||
Nebraska—1.6% |
|
|
|
| |||
| 590,000 |
| Douglas County Industrial |
|
| 590,000 |
|
| 7,960,000 |
| Puttable Floating Option Tax |
|
| 7,960,000 |
|
| 9,000,000 |
| Scotts Bluff County Hospital |
|
| 9,000,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 17,550,000 |
|
|
|
|
|
|
| ||
Nevada—1.1% |
|
|
|
| |||
| 5,085,000 |
| Puttable Floating Option Tax |
|
| 5,085,000 |
|
|
|
|
|
|
|
|
|
| 5,275,000 |
| Puttable Floating Option Tax |
|
| 5,275,000 |
|
|
|
|
|
|
|
|
|
| 1,500,000 |
| Winnemucca Economic |
|
| 1,500,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 11,860,000 |
|
|
|
|
|
|
| ||
New Jersey—0.1% |
|
|
|
| |||
| 1,265,000 |
| Economic Development Authority |
|
| 1,265,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
| |
Municipal Bonds—continued |
|
|
|
| |||
New Mexico—0.2% |
|
|
|
| |||
$ | 1,275,000 |
| Albuquerque Industrial |
| $ | 1,275,000 |
|
| 1,050,000 |
| Las Cruces Industrial |
|
| 1,050,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,325,000 |
|
|
|
|
|
|
| ||
New York—2.1% |
|
|
|
|
| ||
| 9,900,000 |
| Clinton County Industrial |
|
| 9,900,000 |
|
| 5,000,000 |
| Clinton County Industrial |
|
| 5,000,000 |
|
| 535,000 |
| Erie County Industrial |
|
| 535,000 |
|
| 630,000 |
| New York City Industrial |
|
| 630,000 |
|
| 371,100 |
| New York City Industrial |
|
| 371,100 |
|
| 1,500,000 |
| Riverhead Industrial Development |
|
| 1,500,000 |
|
| 5,685,000 |
| State Housing Finance Agency |
|
| 5,685,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 23,621,100 |
|
|
|
|
|
|
| ||
Ohio—2.9% |
|
|
|
|
| ||
| 640,000 |
| Cuyahoga County Industrial |
|
| 640,000 |
|
See notes to financial statements.
42
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
| ||
Municipal Bonds—continued |
|
|
|
| |||
Ohio—continued |
|
|
|
| |||
$ | 6,000,000 |
| Dayton-Montgomery County Port |
| $ | 6,000,000 |
|
| 5,000,000 |
| Geauga County Revenue, South |
|
| 5,000,000 |
|
| 6,000,000 |
| Louisville Healthcare Facilities |
|
| 6,000,000 |
|
| 1,890,000 |
| Portage County Health Care |
|
| 1,890,000 |
|
| 1,310,000 |
| Portage County Industrial |
|
| 1,310,000 |
|
| 2,210,000 |
| Portage County Industrial |
|
| 2,210,000 |
|
| 1,800,000 |
| Revenue Bond Certificate Series |
|
| 1,800,000 |
|
| 2,100,000 |
| Richland County Industrial |
|
| 2,100,000 |
|
| 5,400,000 |
| Summit County Port Authority, |
|
| 5,400,000 |
|
| 70,000 |
| Wood County Industrial |
|
| 70,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 32,420,000 |
|
|
|
|
|
|
| ||
Oklahoma—0.3% |
|
|
|
| |||
| 3,595,000 |
| Oklahoma County Finance |
|
| 3,595,000 |
|
|
|
|
|
|
| ||
Oregon—0.1% |
|
|
|
| |||
| 800,000 |
| Oregon State Economic |
|
| 800,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
| |
Municipal Bonds—continued |
|
|
|
| |||
Pennsylvania—2.2% |
|
|
|
| |||
$ | 6,935,000 |
| Butler County Industrial |
| $ | 6,935,000 |
|
| 5,060,000 |
| Butler County Industrial |
|
| 5,060,000 |
|
| 1,000,000 |
| Erie County Industrial |
|
| 1,000,000 |
|
| 11,865,000 |
| Philadelphia Airport Revenue |
|
| 11,865,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 24,860,000 |
|
|
|
|
|
|
| ||
Rhode Island—0.1% |
|
|
|
| |||
| 1,300,000 |
| Industrial Facilities Corporation |
|
| 1,300,000 |
|
|
|
|
|
|
| ||
South Carolina—1.5% |
|
|
|
| |||
| 8,940,000 |
| Hampton County Industrial |
|
| 8,940,000 |
|
| 2,400, 000 |
| Jobs Economic Development |
|
| 2,400,000 |
|
| 5,850,000 |
| South Carolina Jobs Economic |
|
| 5,850,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 17,190,000 |
|
|
|
|
|
|
| ||
South Dakota—0.4% |
|
|
|
| |||
| 1,300,000 |
| Brookings Industrial |
|
| 1,300,000 |
|
| 2,735,000 |
| Economic Development Finance |
|
| 2,735,000 |
|
| 690,000 |
| Economic Development Finance |
|
| 690,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,725,000 |
|
|
|
|
|
|
|
See notes to financial statements.
43
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
| ||
Municipal Bonds—continued |
|
|
|
| |||
Tennessee—1.1% |
|
|
|
| |||
$ | 5,000,000 |
| Dickson Health Education & |
| $ | 5,000,000 |
|
| 500,000 |
| Hamilton County Industrial |
|
| 500,000 |
|
| 1,600,000 |
| Huntingdon Industrial |
|
| 1,600,000 |
|
| 1,695,000 |
| Jackson Health Educational & |
|
| 1,695,000 |
|
| 2,430,000 |
| Metropolitan Government |
|
| 2,430,000 |
|
| 400,000 |
| Rutherford County Industrial |
|
| 400,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 11,625,000 |
|
|
|
|
|
|
| ||
Texas—10.5% |
|
|
|
| |||
| 4,545,000 |
| Archer City Growth & |
|
| 4,545,000 |
|
| 4,500,000 |
| Brazos River Harbor Navigation |
|
| 4,500,000 |
|
| 2,700,000 |
| Brazos River Harbor Navigation |
|
| 2,700,000 |
|
| 3,000,000 |
| Dallam County Industrial |
|
| 3,000,000 |
|
| 2,600,000 |
| Dallam County Industrial |
|
| 2,600,000 |
|
| 7,500,000 |
| Dallas Fort Worth International |
|
| 7,500,000 |
|
| 1,000,000 |
| Dallas Fort Worth International |
|
| 1,000,000 |
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
| ||
Municipal Bonds—continued |
|
|
| ||||
Texas—continued |
|
|
|
| |||
$ | 2,455,000 |
| Deutche Bank Spears/Lifers Trust |
| $ | 2,455,000 |
|
| 26,500,000 |
| First Rio Grande Regional Water |
|
| 26,500,000 |
|
| 4,575,000 |
| Gulf Coast Waste Disposal Authority |
|
| 4,575,000 |
|
| 4,000,000 |
| Hale County Industrial |
|
| 4,000,000 |
|
| 2,845,000 |
| Lewisville Independent School |
|
| 2,845,000 |
|
| 4,500,000 |
| Port Arthur Naval District Revenue, |
|
| 4,500,000 |
|
| 6,500,000 |
| Port Corpus Christi Authority |
|
| 6,500,000 |
|
| 9,000,000 |
| Port Corpus Christi Authority |
|
| 9,000,000 |
|
| 10,900,000 |
| Port Corpus Christi Authority |
|
| 10,900,000 |
|
| 15,500,000 |
| Port Corpus Christi Authority |
|
| 15,500,000 |
|
| 1,500,000 |
| Port Corpus Christi Authority |
|
| 1,500,000 |
|
| 2,795,000 |
| Puttable Floating Option Tax |
|
| 2,795,000 |
|
| 235,000 |
| Saginaw Industrial Development |
|
| 235,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 117,150,000 |
|
|
|
|
|
|
| ||
Utah—0.2% |
|
|
|
| |||
| 2,500,000 |
| Housing Corporation Multifamily |
|
| 2,500,000 |
|
|
|
|
|
|
|
See notes to financial statements.
44
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
Municipal Bonds—continued |
|
|
| ||||
Vermont—0.1% |
|
|
|
| |||
$ | 1,535,000 |
| Educational & Health Buildings |
| $ | 1,535,000 |
|
|
|
|
|
|
| ||
Virginia—0.2% |
|
|
|
| |||
| 1,000,000 |
| Brunswick County Industrial |
|
| 1,000,000 |
|
| 1,250,000 |
| Surry County Industrial |
|
| 1,250,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,250,000 |
|
|
|
|
|
|
| ||
Washington—3.6% |
|
|
|
| |||
| 2,815,000 |
| Deutche Bank Spears/ |
|
| 2,815,000 |
|
| 2,500,000 |
| Deutche Bank Spears/ |
|
| 2,500,000 |
|
| 1,110,000 |
| Economic Development Finance |
|
| 1,110,000 |
|
| 2,745,000 |
| Economic Development Finance |
|
| 2,745,000 |
|
| 775,000 |
| Pierce County Economic |
|
| 775,000 |
|
| 3,100,000 |
| Port Bellingham Industrial |
|
| 3,100,000 |
|
| 6,125,000 |
| Port Bellingham Industrial |
|
| 6,125,000 |
|
| 8,910,000 |
| Renton Housing Authority |
|
| 8,910,000 |
|
| 3,480,000 |
| State Economic Development |
|
| 3,480,000 |
|
| 7,970,000 |
| State Housing Finance Community |
|
| 7,970,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 39,530,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
| |
Municipal Bonds—continued |
|
|
|
| |||
Wisconsin—2.1% |
|
|
|
| |||
$ | 500,000 |
| Elkhorn Industrial Development |
| $ | 500,000 |
|
| 500,000 |
| Farmington Industrial Development |
|
| 500,000 |
|
| 3,005,000 |
| Fox Lake Redevelopment Authority |
|
| 3,005,000 |
|
| 980,000 |
| Franklin Industrial Development |
|
| 980,000 |
|
| 1,750,000 |
| Franklin Industrial Development |
|
| 1,750,000 |
|
| 4,110,000 |
| Hull Industrial Development |
|
| 4,110,000 |
|
| 5,500,000 |
| Lancaster Industrial Development |
|
| 5,500,000 |
|
| 1,790,000 |
| Reedsburg Industrial Development |
|
| 1,790,000 |
|
| 1,550,000 |
| Rhinelander Industrial Development |
|
| 1,550,000 |
|
| 1,300,000 |
| Sheboygan Industrial Development |
|
| 1,300,000 |
|
| 200,000 |
| Sturgeon Bay Industrial Development |
|
| 200,000 |
|
| 1,800,000 |
| Superior Industrial Development |
|
| 1,800,000 |
|
| 850,000 |
| Wood River Industrial Development |
|
| 850,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 23,835,000 |
|
|
|
|
|
|
| ||
|
|
| Total Municipal Bonds |
|
| 1,101,668,276 |
|
|
|
|
|
|
|
See notes to financial statements.
45
|
Alpine Municipal Money Market Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Shares/ |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
| |||
Wisconsin—continued |
|
|
|
| |||
Money Market Fund—0.0% |
|
|
|
| |||
$ | 60,755 |
| SEI Tax Exempt Trust— |
| $ | 60,755 |
|
|
|
|
|
|
| ||
|
|
| Total Money Market Fund |
|
| 60,755 |
|
|
|
|
|
|
| ||
|
|
| Total Investments |
|
| 1,101,729,031 |
|
|
|
| Other Assets in Excess of |
|
| 13,801,120 |
|
|
|
|
|
|
| ||
|
|
| TOTAL NET ASSETS—100.0% |
|
| 1,115,530,151 |
|
|
|
|
|
|
|
|
|
Percentages are stated as a percent of net assets. | |
| |
(a) | Variable Rate Security—The rate reported is the rate in effect as of October 31, 2007. The date shown is the next reset date. |
|
|
(b) | Maturity date represents first available put date. |
|
|
(c) | Put Bond |
|
|
CS—Credit Support | |
LOC—Letter of Credit | |
SPA—Standby Purchase Agreement |
See notes to financial statements.
46
|
Alpine Ultra Short Tax Optimized Income Fund |
Schedule of Portfolio Investments
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
| |||
Municipal Bonds—96.9% |
|
|
|
| |||
Alabama—7.8% |
|
|
|
|
| ||
$ | 3,215,000 |
| Housing Financial Authority |
| $ | 3,215,000 |
|
| 500,000 |
| Pell City Alabama Special Care |
|
| 500,265 |
|
| 1,000,000 |
| Tuscaloosa Alaska Educational |
|
| 1,002,480 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,717,745 |
|
|
|
|
|
|
| ||
Colorado—0.8% |
|
|
|
|
| ||
| 500,000 |
| Walker Field Public Airport |
|
| 498,740 |
|
|
|
|
|
|
| ||
Florida—2.0% |
|
|
|
|
|
| |
| 1,200,000 |
| Lee County Industrial |
|
| 1,200,168 |
|
|
|
|
|
|
| ||
Illinois—1.0% |
|
|
|
|
|
| |
| 580,000 |
| Montgomery & Bond Counties |
|
| 580,244 |
|
|
|
|
|
|
| ||
Kansas—1.1% |
|
|
|
|
|
| |
| 680,000 |
| Lenexa Health Care Facility |
|
| 681,781 |
|
|
|
|
|
|
| ||
Kentucky—0.9% |
|
|
|
|
|
| |
| 515,000 |
| Shelby County Industrial Building |
|
| 515,000 |
|
|
|
|
|
|
| ||
Louisiana—4.6% |
|
|
|
|
|
| |
| 600,000 |
| Caddo-Bossier Parishes Port |
|
| 600,000 |
|
| 2,200,000 |
| Jefferson Parish Industrial |
|
| 2,200,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,800,000 |
|
|
|
|
|
|
| ||
Maryland—4.6% |
|
|
|
|
|
| |
| 2,745,000 |
| State Health & Higher Education |
|
| 2,745,000 |
|
|
|
|
|
|
| ||
Massachusetts—10.3% |
|
|
|
| |||
| 935,000 |
| State Industrial Finance Agency |
|
| 924,883 |
|
| 5,275,000 |
| State Port Authority Revenue |
|
| 5,275,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,199,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Minnesota—6.4% |
|
|
|
|
|
| |
$ | 1,360,000 |
| St. Cloud Housing & |
| $ | 1,360,000 |
|
| 2,500,000 |
| St. Paul Housing & |
|
| 2,500,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,860,000 |
|
|
|
|
|
|
| ||
Mississippi—3.7% |
|
|
|
|
| ||
| 2,200,000 |
| Mississippi Business Finance Corp., |
|
| 2,200,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Multistate—8.3% |
|
|
|
|
| ||
| 5,000,000 |
| Theop LLC |
|
| 5,000,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
New Jersey—10.2% |
|
|
|
|
|
| |
|
|
| Bayonne General Obligations Notes |
|
|
|
|
| 1,500,000 |
| 5.000%, 09/18/2008 |
|
| 1,511,295 |
|
| 1,300,000 |
| 5.000%, 10/24/2008 |
|
| 1,306,071 |
|
| 1,000,000 |
| Economic Development Authority |
|
| 1,000,000 |
|
| 230,000 |
| Health Care Facility, Trinitas |
|
| 229,929 |
|
| 1,035,000 |
| Tobacco Settlement Finance Corp. |
|
| 1,108,247 |
|
| 1,000,000 |
| Wanaque Valley Regional |
|
| 1,006,620 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,162,162 |
|
|
|
|
|
|
| ||
New York—9.3% |
|
|
|
|
|
| |
| 1,500,000 |
| Clinton County Industrial |
|
| 1,500,000 |
|
| 645,000 |
| Erie County Industrial Development |
|
| 645,000 |
|
| 590,000 |
| Seneca County Industrial |
|
| 596,378 |
|
| 2,400,000 |
| State Energy Reshape & |
|
| 2,400,000 |
|
| 500,000 |
| Westchester Tobacco Asset |
|
| 491,670 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,633,048 |
|
|
|
|
|
|
|
See notes to financial statements.
47
|
Alpine Ultra Short Tax Optimized Income Fund |
Schedule of Portfolio Investments—Continued
October 31, 2007
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
North Carolina—1.1% |
|
|
|
|
| ||
$ | 675,000 |
| Medical Care Commission Health |
| $ | 674,264 |
|
|
|
|
|
|
| ||
Ohio—1.2% |
|
|
|
|
|
| |
| 585,000 |
| Portage County Industrial |
|
| 585,000 |
|
| 110,000 |
| Summit County Industrial |
|
| 110,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 695,000 |
|
|
|
|
|
|
| ||
Oklahoma—1.6% |
|
|
|
|
|
| |
| 1,000,000 |
| Cherokee Nation Of Oklahoma |
|
| 994,050 |
|
|
|
|
|
|
| ||
Pennsylvania—4.4% |
|
|
|
|
|
| |
| 500,000 |
| Allegheny Country Industrial |
|
| 500,000 |
|
| 1,200,000 |
| Butler County Industrial |
|
| 1,200,000 |
|
| 975,000 |
| Erie County Industrial Development |
|
| 975,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,675,000 |
|
|
|
|
|
|
| ||
Puerto Rico—4.5% |
|
|
|
|
|
| |
| 2,700,000 |
| Puerto Rico GDB |
|
| 2,700,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
| Security |
| Value |
| ||
|
|
| |||||
|
|
|
|
|
|
|
|
Municipal Bonds—continued |
|
|
|
| |||
Tennessee—0.3% |
|
|
|
|
|
| |
$ | 200,000 |
| Sumner County Health |
| $ | 200,000 |
|
|
|
|
|
| |||
Texas—12.4% |
|
|
|
|
|
| |
| 2,800,000 |
| Central Higher Education |
|
| 2,800,000 |
|
| 2,000,000 |
| Gulf Coast Industrial Development |
|
| 2,000,000 |
|
| 700,000 |
| Port Corpus Christi Authority |
|
| 700,000 |
|
| 1,960,000 |
| Revenue Bond Certificates Series |
|
| 1,960,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,460,000 |
|
�� |
|
|
|
|
| ||
Virginia—0.4% |
|
|
|
|
|
| |
| 225,000 |
| Ashland Industrial Development |
|
| 225,000 |
|
|
|
|
|
|
| ||
|
|
| Total Municipal Bonds |
|
| 58,417,085 |
|
|
|
|
|
|
| ||
Short-Term Investments—0.8% |
|
|
|
| |||
| 453,486 |
| Federated Government |
|
| 453,486 |
|
|
|
|
|
|
| ||
|
|
| Total Short-Term Investments |
|
| 453,486 |
|
|
|
|
|
|
| ||
|
|
| Total Investments |
|
| 58,870,571 |
|
|
|
| Other Assets in Excess |
|
| 1,409,663 |
|
|
|
|
|
|
| ||
|
|
| TOTAL NET ASSETS—100.0% |
| $ | 60,280,234 |
|
|
|
|
|
|
|
|
|
Percentages are stated as a percent of net assets. | |
| |
(a) | Variable Rate Security- The rate reported is the rate in effect as of October 31, 2007. The date shown is the next reset date. (b) Maturity date represents first put date. |
|
|
(c) | Commercial Paper |
|
|
(d) | Put Bond |
|
|
(e) | Auction Rate Note |
|
|
(f) | Restricted under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. |
See notes to financial statements.
48
|
Alpine Mutual Funds |
Statements of Assets and Liabilities
October 31, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dynamic |
| Dynamic |
| Dynamic |
| Dynamic |
| ||||
|
|
|
|
|
| ||||||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at value (1) |
| $ | 86,774,253 |
| $ | 1,483,519,373 |
| $ | 11,825,682 |
| $ | 50,915,010 |
|
Dividends and interest receivable |
|
| 428,137 |
|
| 6,477,261 |
|
| 6,550 |
|
| 78,550 |
|
Receivable for capital shares issued |
|
| 50 |
|
| 4,901,131 |
|
| 200 |
|
| 1,402,071 |
|
Receivable for investment securities sold |
|
| 5,419,239 |
|
| 207,199,652 |
|
| 6,366,269 |
|
| 759,729 |
|
Due from Adviser |
|
| — |
|
| — |
|
| 14,727 |
|
| — |
|
Prepaid expenses and other assets |
|
| 6,140 |
|
| 51,920 |
|
| 11,623 |
|
| 11,217 |
|
|
|
|
|
|
| ||||||||
Total assets |
|
| 92,627,819 |
|
| 1,702,149,337 |
|
| 18,225,051 |
|
| 53,166,577 |
|
|
|
|
|
|
| ||||||||
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for investment securities purchased |
|
| 139,522 |
|
| 191,436,813 |
|
| 842,490 |
|
| 4,755,886 |
|
Payable to custodian |
|
| — |
|
| 1,521,433 |
|
| 2,930,906 |
|
| — |
|
Payable for capital shares redeemed |
|
| 7,096 |
|
| 1,123,553 |
|
| 1,086 |
|
| — |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees |
|
| 78,597 |
|
| 1,255,033 |
|
| — |
|
| 35,621 |
|
Line of credit |
|
| — |
|
| 6,359,000 |
|
| 3,593,000 |
|
| — |
|
Other |
|
| 42,853 |
|
| 381,319 |
|
| 37,554 |
|
| 20,341 |
|
|
|
|
|
|
| ||||||||
Total liabilities |
|
| 268,068 |
|
| 202,077,151 |
|
| 7,405,036 |
|
| 4,811,848 |
|
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 92,359,751 |
| $ | 1,500,072,186 |
| $ | 10,820,015 |
| $ | 48,354,729 |
|
|
|
|
|
|
| ||||||||
Net assets represented by: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Stock |
| $ | 72,580,920 |
| $ | 1,452,970,023 |
| $ | 9,684,901 |
| $ | 43,381,526 |
|
Accumulated undistributed net investment income/(loss) |
|
| (26,712 | ) |
| 28,530,268 |
|
| — |
|
| 99,231 |
|
Accumulated net realized gains/(losses) on investments, swaps, and foreign currency related transactions |
|
| 6,112,153 |
|
| (61,788,554 | ) |
| 2,504,896 |
|
| 1,899,755 |
|
Net unrealized appreciation/depreciation on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
| 13,693,390 |
|
| 79,965,811 |
|
| (1,434,208 | ) |
| 2,974,217 |
|
Foreign currency translation |
|
| — |
|
| 394,638 |
|
| 64,427 |
|
| — |
|
|
|
|
|
|
| ||||||||
Total Net Assets |
| $ | 92,359,751 |
| $ | 1,500,072,186 |
| $ | 10,820,015 |
| $ | 48,354,729 |
|
|
|
|
|
|
| ||||||||
Net asset value |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
| $ | 92,359,751 |
| $ | 1,500,072,186 |
| $ | 10,820,015 |
| $ | 48,354,729 |
|
Shares of beneficial interest issued and outstanding |
|
| 6,815,249 |
|
| 112,608,408 |
|
| 779,056 |
|
| 3,435,040 |
|
Net asset value, offering price and redemption price per share |
| $ | 13.55 |
| $ | 13.32 |
| $ | 13.89 |
| $ | 14.08 |
|
|
|
|
|
|
| ||||||||
(1) Cost of Investments |
| $ | 73,080,863 |
| $ | 1,403,553,562 |
| $ | 13,259,890 |
| $ | 47,940,793 |
|
See notes to financial statements.
49
|
Alpine Mutual Funds |
Statements of Assets and Liabilities
October 31, 2007
|
|
|
|
|
|
|
|
|
| Municipal |
| Ultra Short |
| ||
|
|
|
| ||||
ASSETS: |
|
|
|
|
|
|
|
Investments, at value (1) |
| $ | 1,101,729,031 |
| $ | 58,870,571 |
|
Cash |
|
| 8,656 |
|
| — |
|
Interest receivable |
|
| 6,112,910 |
|
| 461,398 |
|
Receivable for capital shares issued |
|
| 39,401,740 |
|
| 644,419 |
|
Receivable for investment securities sold |
|
| 42,707,049 |
|
| 567,690 |
|
Prepaid expenses and other assets |
|
| 34,690 |
|
| 14,876 |
|
|
|
|
| ||||
Total assets |
|
| 1,189,994,076 |
|
| 60,558,954 |
|
|
|
|
| ||||
LIABILITIES: |
|
|
|
|
|
|
|
Payable for investment securities purchased |
|
| 17,335,000 |
|
| — |
|
Payable for capital shares redeemed |
|
| 53,876,910 |
|
| 5,630 |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
Investment advisory fees |
|
| 294,115 |
|
| 26,349 |
|
Distribution fees |
|
| 1,660 |
|
| 434 |
|
Distribution to shareholders |
|
| 2,897,955 |
|
| 233,435 |
|
Other |
|
| 58,285 |
|
| 12,872 |
|
|
|
|
| ||||
Total liabilities |
|
| 74,463,925 |
|
| 278,720 |
|
|
|
|
| ||||
Net Assets |
| $ | 1,115,530,151 |
| $ | 60,280,234 |
|
|
|
|
| ||||
Net assets represented by |
|
|
|
|
|
|
|
Capital Stock |
| $ | 1,115,530,151 |
| $ | 60,238,650 |
|
Accumulated undistributed net investment income |
|
| — |
|
| 7,979 |
|
Accumulated net realized losses from investments sold |
|
| — |
|
| (57,473 | ) |
Net unrealized appreciation on investments |
|
| — |
|
| 91,078 |
|
|
|
|
| ||||
Total Net Assets |
| $ | 1,115,530,151 |
| $ | 60,280,234 |
|
|
|
|
| ||||
Net asset value |
|
|
|
|
|
|
|
Adviser Class Shares |
|
|
|
|
|
|
|
Net assets |
| $ | 429,827 |
| $ | 871,630 |
|
Shares of beneficial interest issued and outstanding |
|
| 429,771 |
|
| 86,300 |
|
Net asset value, offering price and redemption price per share |
| $ | 1.00 |
| $ | 10.10 |
|
Investor Class Shares |
|
|
|
|
|
|
|
Net assets |
| $ | 1,119,100,324 |
| $ | 59,408,604 |
|
Shares of beneficial interest issued and outstanding |
|
| 1,115,100,268 |
|
| 5,914,451 |
|
Net asset value, offering price and redemption price per share |
| $ | 1.00 |
| $ | 10.04 |
|
|
|
|
| ||||
(1) Cost of Investments |
| $ | 1,101,729,031 |
| $ | 58,779,493 |
|
See notes to financial statements.
50
|
Alpine Mutual Funds |
Statements of Operations
For the year ended October 31, 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dynamic |
| Dynamic |
| Dynamic |
| Dynamic |
| ||||
|
|
|
|
|
| ||||||||
INVESTMENT INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
| $ | 1,132,353 |
| $ | 3,675,174 |
| $ | 12,412 |
| $ | 255,936 |
|
Dividend income* |
|
| 1,772,973 |
|
| 189,773,423 |
|
| 118,865 |
|
| 19,721 |
|
|
|
|
|
|
| ||||||||
Total investment income |
|
| 2,905,326 |
|
| 193,448,597 |
|
| 131,277 |
|
| 275,657 |
|
|
|
|
|
|
| ||||||||
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees |
|
| 959,174 |
|
| 11,515,852 |
|
| 110,340 |
|
| 114,347 |
|
Administration fees |
|
| 32,415 |
|
| 394,748 |
|
| 4,309 |
|
| 5,028 |
|
Fund accounting fees |
|
| 16,925 |
|
| 190,600 |
|
| 2,198 |
|
| 2,644 |
|
Audit and tax fees |
|
| 19,766 |
|
| 23,772 |
|
| 20,391 |
|
| 17,591 |
|
Custodian fees |
|
| 7,417 |
|
| 86,637 |
|
| 928 |
|
| 1,144 |
|
Interest expense |
|
| 2,883 |
|
| 19,321 |
|
| 112,731 |
|
| — |
|
Legal fees |
|
| 2,627 |
|
| 18,581 |
|
| 1,459 |
|
| 1,216 |
|
Registration and filing fees |
|
| 19,125 |
|
| 117,913 |
|
| 22,096 |
|
| 23,074 |
|
Printing fees |
|
| 12,514 |
|
| 350,976 |
|
| 7,021 |
|
| 1,640 |
|
Transfer agent fees |
|
| 34,150 |
|
| 423,140 |
|
| 4,570 |
|
| 5,367 |
|
Trustee fees |
|
| 716 |
|
| 10,463 |
|
| 123 |
|
| 63 |
|
Other fees |
|
| 6,713 |
|
| 70,353 |
|
| 1,990 |
|
| 2,658 |
|
|
|
|
|
|
| ||||||||
Total expenses before expense waiver by Adviser |
|
| 1,114,425 |
|
| 13,222,356 |
|
| 288,156 |
|
| 174,772 |
|
Less: Expense waiver by Adviser |
|
| — |
|
| — |
|
| (139,356 | ) |
| (22,424 | ) |
|
|
|
|
|
| ||||||||
Net expenses |
|
| 1,114,425 |
|
| 13,222,356 |
|
| 148,800 |
|
| 152,348 |
|
|
|
|
|
|
| ||||||||
Net investment income (loss) |
|
| 1,790,901 |
|
| 180,226,241 |
|
| (17,523 | ) |
| 123,309 |
|
|
|
|
|
|
| ||||||||
REALIZED/UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Long transactions |
|
| 5,978,903 |
|
| (39,881,300 | ) |
| 3,241,026 |
|
| 1,889,483 |
|
Foreign currency translation |
|
| — |
|
| (6,542,403 | ) |
| (35,852 | ) |
| (563 | ) |
Option contracts expired or closed |
|
| — |
|
| 401,898 |
|
| — |
|
| — |
|
Swaps |
|
| — |
|
| (1,492,792 | ) |
| (114,108 | ) |
| 9,260 |
|
|
|
|
|
|
| ||||||||
Net realized gain (loss) |
|
| 5,978,903 |
|
| (47,514,597 | ) |
| 3,091,066 |
|
| 1,898,180 |
|
|
|
|
|
|
| ||||||||
Change in unrealized appreciation / depreciation on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
| (3,900,340 | ) |
| 63,257,867 |
|
| (1,492,423 | ) |
| 2,909,947 |
|
Foreign currency translation |
|
| — |
|
| 355,462 |
|
| 64,427 |
|
| — |
|
|
|
|
|
|
| ||||||||
Net change in unrealized appreciation/depreciation |
|
| (3,900,340 | ) |
| 63,613,329 |
|
| (1,427,996 | ) |
| 2,909,947 |
|
|
|
|
|
|
| ||||||||
Net realized/unrealized gain (loss) on investments |
|
| 2,078,563 |
|
| 16,098,732 |
|
| 1,663,070 |
|
| 4,808,127 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
| $ | 3,869,464 |
| $ | 196,324,973 |
| $ | 1,645,547 |
| $ | 4,931,436 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Net of foreign taxes withheld |
|
| — |
| $ | 7,588,149 |
| $ | 53 |
| $ | — |
|
|
|
|
|
|
|
See notes to financial statements.
51
|
Alpine Mutual Funds |
Statements of Operations
For the year ended October 31, 2007
|
|
|
|
|
|
|
|
|
| Municipal |
| Ultra Short |
| ||
|
|
|
| ||||
INVESTMENT INCOME: |
|
|
|
|
|
|
|
Interest income |
| $ | 29,387,392 |
| $ | 2,401,038 |
|
|
|
|
| ||||
Total investment income |
|
| 29,387,392 |
|
| 2,401,038 |
|
|
|
|
| ||||
EXPENSES: |
|
|
|
|
|
|
|
Investment advisory fees |
|
| 3,395,812 |
|
| 386,097 |
|
Administration fees |
|
| 47,963 |
|
| 3,642 |
|
Distribution fees - Adviser Class |
|
| 2,538 |
|
| 1,614 |
|
Fund accounting fees |
|
| 45,878 |
|
| 3,581 |
|
Audit and tax fees |
|
| 15,207 |
|
| 15,007 |
|
Custodian fees |
|
| 36,532 |
|
| 3,334 |
|
Legal fees |
|
| 7,917 |
|
| 1,962 |
|
Registration and filing fees |
|
| 71,947 |
|
| 32,658 |
|
Printing fees |
|
| 16,848 |
|
| 3,559 |
|
Transfer agent fees |
|
| 47,963 |
|
| 3,642 |
|
Trustee fees |
|
| 1,430 |
|
| 262 |
|
Other fees |
|
| 16,777 |
|
| 3,006 |
|
|
|
|
| ||||
Total expenses before expense waiver by Adviser |
|
| 3,706,812 |
|
| 458,364 |
|
|
|
|
| ||||
Less: Expense waiver by Adviser |
|
| (1,718,243 | ) |
| (148,724 | ) |
Net expenses |
|
| 1,988,569 |
|
| 309,640 |
|
|
|
|
| ||||
Net investment income |
|
| 27,398,823 |
|
| 2,091,398 |
|
|
|
|
| ||||
REALIZED/UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
|
|
|
|
|
|
|
Net realized loss on investments |
|
| — |
|
| (2,112 | ) |
Change in unrealized appreciation / depreciation on investments |
|
| — |
|
| (26,650 | ) |
|
|
|
| ||||
Net realized/unrealized loss on investments |
|
| — |
|
| (28,762 | ) |
|
|
|
| ||||
Change in net assets resulting from operations |
| $ | 27,398,823 |
| $ | 2,062,636 |
|
|
|
|
|
See notes to financial statements.
52
|
Alpine Mutual Funds |
Statement of Cash Flows
Year Ended October 31, 2007
|
|
|
|
|
|
| Dynamic |
| |
|
|
| ||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net increase in net assets resulting from operations |
| $ | 1,645,547 |
|
Purchases of investments |
|
| (60,573,985 | ) |
Proceeds from sale of investments |
|
| 52,601,682 |
|
Increase in dividends and interest receivable |
|
| (3,512 | ) |
Decrease in prepaid expenses and other assets |
|
| 2,234 |
|
Increase in accrued expenses and other liabilities |
|
| 14,995 |
|
Unrealized depreciation on securities |
|
| 1,492,423 |
|
Net realized gain from investments |
|
| (3,241,026 | ) |
(Receivable)/Payable from Adviser |
|
| (17,571 | ) |
|
|
| ||
Net cash used in operating activities |
|
| (8,079,213 | ) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Payable to custodian |
|
| 2,930,906 |
|
Increase in loan payable |
|
| 3,593,000 |
|
Proceeds from shares sold |
|
| 10,326,286 |
|
Payment on fund shares redeemed |
|
| (8,230,258 | ) |
Cash distributions paid to shareholders |
|
| (540,721 | ) |
|
|
| ||
Net cash provided by financing activities |
|
| 8,079,213 |
|
|
|
| ||
Net change in cash |
|
| — |
|
|
|
| ||
CASH: |
|
|
|
|
Beginning Balance |
|
| — |
|
|
|
| ||
Ending Balance |
| $ | — |
|
|
|
|
Supplemental disclosure of cash flows information:
During the year ended October 31, 2007, the Alpine Dynamic Financial Services Fund paid cash of $87,380 in interest.
Noncash financing activities consist of reinvestment of dividends and distributions of $434,665.
See notes to financial statements.
53
|
Alpine Mutual Funds |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
| Dynamic Balance Fund |
| ||||
|
|
| |||||
|
| Year Ended |
| Year Ended |
| ||
|
|
|
| ||||
OPERATIONS: |
|
|
|
|
|
|
|
Net investment income |
| $ | 1,790,901 |
| $ | 1,588,754 |
|
Net realized gain (loss) on: |
|
|
|
|
|
|
|
Long transactions |
|
| 5,978,903 |
|
| 3,250,394 |
|
Change in unrealized appreciation/depreciation on: |
|
|
|
|
|
|
|
Investments |
|
| (3,900,340 | ) |
| 6,225,228 |
|
|
|
|
| ||||
Change in net assets resulting from operations |
|
| 3,869,464 |
|
| 11,064,376 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
From net investment income |
|
| (1,657,490 | ) |
| (1,535,036 | ) |
From net realized gain on investment |
|
| (3,303,924 | ) |
| (1,667,049 | ) |
|
|
|
| ||||
Change in net assets resulting from distributions to shareholders |
|
| (4,961,414 | ) |
| (3,202,085 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 1,455,693 |
|
| 4,892,372 |
|
Dividends reinvested |
|
| 4,556,609 |
|
| 2,949,759 |
|
Redemption fees |
|
| 471 |
|
| 828 |
|
Cost of shares redeemed |
|
| (10,723,292 | ) |
| (15,013,692 | ) |
|
|
|
| ||||
Change in net assets from capital share transactions |
|
| (4,710,519 | ) |
| (7,170,733 | ) |
|
|
|
| ||||
Total change in net assets |
|
| (5,802,469 | ) |
| 691,558 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of year |
|
| 98,162,220 |
|
| 97,470,662 |
|
|
|
|
| ||||
End of year* |
| $ | 92,359,751 |
| $ | 98,162,220 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
* Including undistributed net investment (loss) of: |
| $ | (26,712 | ) | $ | (26,712 | ) |
|
|
|
|
See notes to financial statements.
54
|
Alpine Mutual Funds |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
| Dynamic Dividend Fund |
| ||||
|
|
| |||||
|
| Year Ended |
| Year Ended |
| ||
|
|
|
| ||||
OPERATIONS: |
|
|
|
|
|
|
|
Net investment income |
| $ | 180,226,241 |
| $ | 62,089,634 |
|
Net realized gain (loss) on: |
|
|
|
|
|
|
|
Long transactions |
|
| (39,881,300 | ) |
| (15,123,135 | ) |
Foreign currency translation |
|
| (6,542,403 | ) |
| (2,349,707 | ) |
Option contracts expired or closed |
|
| 401,898 |
|
| — |
|
Swaps |
|
| (1,492,792 | ) |
| — |
|
Change in unrealized appreciation/depreciation on: |
|
|
|
|
|
|
|
Investments |
|
| 63,257,867 |
|
| 27,430,694 |
|
Foreign currency translation |
|
| 355,462 |
|
| 46,202 |
|
|
|
|
| ||||
Change in net assets resulting from operations |
|
| 196,324,973 |
|
| 72,093,688 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
From net investment income |
|
| (151,334,543 | ) |
| (57,422,280 | ) |
|
|
|
| ||||
Change in net assets resulting from distributions to shareholders |
|
| (151,334,543 | ) |
| (57,422,280 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 1,071,958,520 |
|
| 375,145,264 |
|
Dividends reinvested |
|
| 115,362,111 |
|
| 44,232,625 |
|
Redemption fees |
|
| 331,271 |
|
| 87,691 |
|
Cost of shares redeemed |
|
| (365,833,646 | ) |
| (112,214,380 | ) |
|
|
|
| ||||
Change in net assets from capital share transactions |
|
| 821,818,256 |
|
| 307,251,200 |
|
|
|
|
| ||||
Total change in net assets |
|
| 866,808,686 |
|
| 321,922,608 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of year |
|
| 633,263,500 |
|
| 311,340,892 |
|
|
|
|
| ||||
End of year* |
| $ | 1,500,072,186 |
| $ | 633,263,500 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
* Including undistributed net investment income of: |
| $ | 28,530,268 |
| $ | 5,753,471 |
|
|
|
|
|
See notes to financial statements.
55
|
Alpine Mutual Funds |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
| Dynamic Financial Services Fund |
| ||||
|
|
| |||||
|
| Year Ended |
| Year Ended |
| ||
|
|
|
| ||||
OPERATIONS: |
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | (17,523 | ) | $ | 5,354 |
|
Net realized gain (loss) on: |
|
|
|
|
|
|
|
Long transactions |
|
| 3,241,026 |
|
| 527,695 |
|
Foreign currency translation |
|
| (35,852 | ) |
| — |
|
Swaps |
|
| (114,108 | ) |
| — |
|
Change in unrealized appreciation/depreciation on: |
|
|
|
|
|
|
|
Investments |
|
| (1,492,423 | ) |
| 58,215 |
|
Foreign currency translation |
|
| 64,427 |
|
| — |
|
|
|
|
| ||||
Change in net assets resulting from operations |
|
| 1,645,547 |
|
| 591,264 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
From net investment income |
|
| (10,031 | ) |
| (840 | ) |
From net realized gain on investments |
|
| (530,690 | ) |
| — |
|
|
|
|
| ||||
Change in net assets resulting from distributions to shareholders |
|
| (540,721 | ) |
| (840 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 9,859,139 |
|
| 7,434,176 |
|
Dividends reinvested |
|
| 434,665 |
|
| 840 |
|
Redemption fees |
|
| 4,434 |
|
| 1,701 |
|
Cost of shares redeemed |
|
| (8,127,045 | ) |
| (483,145 | ) |
|
|
|
| ||||
Change in net assets from capital share transactions |
|
| 2,171,193 |
|
| 6,953,572 |
|
|
|
|
| ||||
Total change in net assets |
|
| 3,276,019 |
|
| 7,543,996 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of year |
|
| 7,543,996 |
|
| — |
|
|
|
|
| ||||
End of year* |
| $ | 10,820,015 |
| $ | 7,543,996 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
* Including undistributed net investment income of: |
| $ | — |
| $ | 4,514 |
|
|
|
|
|
See notes to financial statements.
56
|
Alpine Mutual Funds |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
| Dynamic Innovators Fund |
| ||||
|
|
| |||||
|
| Year Ended |
| Year Ended |
| ||
|
|
|
| ||||
OPERATIONS: |
|
|
|
|
|
|
|
Net investment income |
| $ | 123,309 |
| $ | 46,291 |
|
Net realized gain (loss) on: |
|
|
|
|
|
|
|
Long transactions |
|
| 1,889,483 |
|
| 41,166 |
|
Foreign currency translation |
|
| (563 | ) |
| — |
|
Swaps |
|
| 9,260 |
|
| — |
|
Change in unrealized appreciation/depreciation on: |
|
|
|
|
|
|
|
Investments |
|
| 2,909,947 |
|
| 64,270 |
|
|
|
|
| ||||
Change in net assets resulting from operations |
|
| 4,931,436 |
|
| 151,727 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
From net investment income |
|
| (68,794 | ) |
| — |
|
From net realized gain on investments |
|
| (41,166 | ) |
| — |
|
|
|
|
| ||||
Change in net assets resulting from distributions to shareholders |
|
| (109,960 | ) |
| — |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 39,547,376 |
|
| 4,924,505 |
|
Dividends reinvested |
|
| 108,857 |
|
| — |
|
Redemption fees |
|
| 8,144 |
|
| — |
|
Cost of shares redeemed |
|
| (1,204,553 | ) |
| (2,803 | ) |
|
|
|
| ||||
Change in net assets from capital share transactions |
|
| 38,459,824 |
|
| 4,921,702 |
|
|
|
|
| ||||
Total change in net assets |
|
| 43,281,300 |
|
| 5,073,429 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of year(1) |
|
| 5,073,429 |
|
| — |
|
|
|
|
| ||||
End of year* |
| $ | 48,354,729 |
| $ | 5,073,429 |
|
|
|
|
| ||||
* Including accumulated undistributed net investment income of: |
| $ | 99,231 |
| $ | 46,291 |
|
|
|
|
|
|
|
(1) | Fund Commenced operations on July 11, 2006 |
See notes to financial statements.
57
|
Alpine Mutual Funds |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
| Municipal Money Market Fund |
| ||||
|
|
| |||||
|
| Year Ended |
| Year Ended |
| ||
|
|
|
| ||||
OPERATIONS: |
|
|
|
|
|
|
|
Net investment income |
| $ | 27,398,823 |
| $ | 8,403,753 |
|
Net realized gain on investments |
|
| — |
|
| 412 |
|
|
|
|
| ||||
Change in net assets resulting from operations |
|
| 27,398,823 |
|
| 8,404,165 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
Distributions to Adviser Class Shareholders: |
|
|
|
|
|
|
|
From net investment income |
|
| (33,794 | ) |
| (40,599 | ) |
Distributions to Investor Class Shareholders: |
|
|
|
|
|
|
|
From net investment income |
|
| (27,365,029 | ) |
| (8,363,154 | ) |
|
|
|
| ||||
Change in net assets resulting from distributions to shareholders |
|
| (27,398,823 | ) |
| (8,403,753 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
CAPTIAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 6,947,019,443 |
|
| 715,101,834 |
|
Dividends reinvested |
|
| 21,176,938 |
|
| 6,780,063 |
|
Cost of shares redeemed |
|
| (6,221,110,364 | ) |
| (558,743,456 | ) |
|
|
|
| ||||
Change in net assets from capital share transactions |
|
| 747,086,017 |
|
| 163,138,441 |
|
|
|
|
| ||||
Total change in net assets |
|
| 747,086,017 |
|
| 163,138,853 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of year |
|
| 368,444,134 |
|
| 205,305,281 |
|
|
|
|
| ||||
End of year |
| $ | 1,115,530,151 |
| $ | 368,444,134 |
|
|
|
|
|
See notes to financial statements.
58
|
Alpine Mutual Funds |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
| Ultra Short |
| ||||
|
|
| |||||
|
| Year Ended |
| Year Ended |
| ||
|
|
|
| ||||
OPERATIONS: |
|
|
|
|
|
|
|
Net investment income |
| $ | 2,091,398 |
| $ | 1,625,172 |
|
Net realized loss on investments |
|
| (2,112 | ) |
| (55,360 | ) |
Change in unrealized appreciation (depreciation) on investments |
|
| (26,650 | ) |
| 126,839 |
|
|
|
|
| ||||
Change in net assets resulting from operations |
|
| 2,062,636 |
|
| 1,696,651 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
Distributions to Adviser Class Shareholders |
|
|
|
|
|
|
|
From net investment income |
|
| (26,129 | ) |
| (5,000 | ) |
From net realized gain on investments |
|
| — |
|
| (1 | ) |
Distributions to Investor Class Shareholders: |
|
|
|
|
|
|
|
From net investment income |
|
| (2,061,503 | ) |
| (1,621,428 | ) |
From net realized gain on investments |
|
| — |
|
| (11,074 | ) |
|
|
|
| ||||
Change in net assets resulting from distributions to shareholders |
|
| (2,087,632 | ) |
| (1,637,503 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
CAPTIAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 19,962,121 |
|
| 3,002,248 |
|
Dividends reinvested |
|
| 2,032,302 |
|
| 1,613,847 |
|
Redemption fees |
|
| 508 |
|
| 50 |
|
Cost of shares redeemed |
|
| (7,358,590 | ) |
| (4,810,285 | ) |
|
|
|
| ||||
Change in net assets from capital share transactions |
|
| 14,636,341 |
|
| (194,140 | ) |
|
|
|
| ||||
Total change in net assets |
|
| 14,611,345 |
|
| (134,992 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
NET ASSETS: |
|
|
|
|
|
|
|
Beginning of year |
|
| 45,668,889 |
|
| 45,803,881 |
|
|
|
|
| ||||
End of year |
| $ | 60,280,234 |
| $ | 45,668,889 |
|
|
|
|
| ||||
* Including undistributed net investment income of: |
| $ | 7,979 |
| $ | 4,213 |
|
|
|
|
|
See notes to financial statements.
59
|
Alpine Mutual Funds |
Financial Highlights
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
| Dynamic Balance Fund |
| |||||||||||||
|
|
| ||||||||||||||
|
| Year Ended |
| |||||||||||||
|
|
| ||||||||||||||
|
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| |||||
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value per share, beginning of period |
| $ | 13.72 |
| $ | 12.67 |
| $ | 12.44 |
| $ | 11.08 |
| $ | 9.17 |
|
|
|
|
|
|
|
| ||||||||||
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| 0.26 |
|
| 0.21 |
|
| 0.19 |
|
| 0.19 |
|
| 0.22 |
|
Net realized and unrealized gains on investments |
|
| 0.28 |
|
| 1.26 |
|
| 0.85 |
|
| 1.37 |
|
| 1.91 |
|
|
|
|
|
|
|
| ||||||||||
Total from investment operations |
|
| 0.54 |
|
| 1.47 |
|
| 1.04 |
|
| 1.56 |
|
| 2.13 |
|
Redemption fees |
|
| 0.00 | (a) |
| 0.00 | (a) |
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (0.24 | ) |
| (0.20 | ) |
| (0.19 | ) |
| (0.20 | ) |
| (0.22 | ) |
From net realized gains on investments |
|
| (0.47 | ) |
| (0.22 | ) |
| (0.62 | ) |
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Total distributions |
|
| (0.71 | ) |
| (0.42 | ) |
| (0.81 | ) |
| (0.20 | ) |
| (0.22 | ) |
|
|
|
|
|
|
| ||||||||||
Net asset value per share, end of period |
| $ | 13.55 |
| $ | 13.72 |
| $ | 12.67 |
| $ | 12.44 |
| $ | 11.08 |
|
|
|
|
|
|
|
| ||||||||||
Total return |
|
| 4.03 | % |
| 11.79 | % |
| 8.46 | % |
| 14.19 | % |
| 23.50 | % |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets at end of period (000) |
| $ | 92,360 |
| $ | 98,162 |
| $ | 97,471 |
| $ | 70,705 |
| $ | 53,756 |
|
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before waivers, reimbursements, and recoveries |
|
| 1.16 | % |
| 1.19 | % |
| 1.21 | % |
| 1.27 | % |
| 1.51 | % |
After waivers, reimbursements, and recoveries |
|
| 1.16 | % |
| 1.19 | % |
| 1.31 | % |
| 1.35 | % |
| 1.35 | % |
Ratio of net investment income to average net assets |
|
| 1.87 | % |
| 1.60 | % |
| 1.60 | % |
| 1.78 | % |
| 2.26 | % |
Portfolio turnover |
|
| 28 | % |
| 22 | % |
| 36 | % |
| 56 | % |
| 39 | % |
|
|
(a) | The amount is less than $0.005 per share. |
See notes to financial statements.
60
|
Alpine Mutual Funds |
Financial Highlights
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
| Dynamic Dividend Fund |
| |||||||||||||
|
|
| ||||||||||||||
|
| Year Ended |
| Period Ended |
| |||||||||||
|
|
|
| |||||||||||||
|
| 2007 |
| 2006 |
| 2005 |
| 2004 |
|
| ||||||
|
|
|
|
|
|
| ||||||||||
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value per share, beginning of period |
| $ | 12.52 |
| $ | 11.98 |
| $ | 12.34 |
| $ | 10.69 |
| $ | 10.00 |
|
|
|
|
|
|
|
| ||||||||||
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| 1.95 |
|
| 1.61 |
|
| 1.57 |
|
| 1.09 | (b) |
| 0.06 |
|
Net realized and unrealized gains (losses) on investments |
|
| 0.61 |
|
| 0.51 |
|
| (0.14 | ) |
| 1.51 |
|
| 0.63 |
|
|
|
|
|
|
|
| ||||||||||
Total from investment operations |
|
| 2.56 |
|
| 2.12 |
|
| 1.43 |
|
| 2.60 |
|
| 0.69 |
|
Redemption fees |
|
| 0.00 | (c) |
| 0.00 | (c) |
| 0.00 | (c) |
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (1.76 | ) |
| (1.58 | ) |
| (1.51 | ) |
| (0.95 | ) |
| — |
|
From net realized gains on investments |
|
| — |
|
| — |
|
| (0.28 | ) |
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Total distributions |
|
| (1.76 | ) |
| (1.58 | ) |
| (1.79 | ) |
| (0.95 | ) |
| — |
|
|
|
|
|
|
|
| ||||||||||
Net asset value per share, end of period |
| $ | 13.32 |
| $ | 12.52 |
| $ | 11.98 |
| $ | 12.34 |
| $ | 10.69 |
|
|
|
|
|
|
|
| ||||||||||
Total return |
|
| 21.66 | % |
| 18.68 | % |
| 11.85 | % |
| 24.90 | % |
| 6.90 | %(e) |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets at end of period (000) |
| $ | 1,500,072 |
| $ | 633,264 |
| $ | 311,335 |
| $ | 43,530 |
| $ | 13,527 |
|
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before waivers, reimbursements, and recoveries |
|
| 1.15 | % |
| 1.18 | % |
| 1.20 | % |
| 1.56 | % |
| 3.11 | %(d) |
After waivers, reimbursements, and recoveries |
|
| 1.15 | % |
| 1.18 | % |
| 1.23 | % |
| 1.35 | % |
| 1.35 | %(d) |
Ratio of net investment income to average net assets |
|
| 15.65 | % |
| 14.04 | % |
| 14.22 | % |
| 9.08 | % |
| 5.69 | %(d) |
Portfolio turnover |
|
| 216 | % |
| 192 | % |
| 216 | % |
| 194 | % |
| 9 | % |
|
|
(a) | For the period from September 22, 2003 (inception of fund) to October 31, 2003. |
|
|
(b) | Net investment income is calculated using average shares outstanding during the period. |
|
|
(c) | The amount is less than $0.005 per share. |
|
|
(d) | Annualized. |
|
|
(e) | Not Annualized. |
See notes to financial statements.
61
|
Alpine Mutual Funds |
Financial Highlights
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Dynamic Financial Services Fund |
| ||||
|
|
| |||||
|
| Year Ended |
| Period Ended |
| ||
|
|
|
| ||||
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
Net asset value per share, beginning of period |
| $ | 12.13 |
| $ | 10.00 |
|
|
|
|
| ||||
Income from investment operations: |
|
|
|
|
|
|
|
Net investment income (loss) |
|
| (0.02 | ) |
| 0.02 |
|
Net realized and unrealized gains on investments |
|
| 2.54 |
|
| 2.12 |
|
|
|
|
| ||||
Total from investment operations |
|
| 2.52 |
|
| 2.14 |
|
Redemption fees |
|
| 0.00 | (b) |
|
|
|
|
|
|
| ||||
Less Distributions: |
|
|
|
|
|
|
|
From net investment income |
|
| (0.01 | ) |
| (0.01 | ) |
From net realized gain on investments |
|
| (0.75 | ) |
| — |
|
|
|
|
| ||||
Total distributions |
|
| (0.76 | ) |
| (0.01 | ) |
|
|
|
| ||||
Net asset value per share, end of period |
| $ | 13.89 |
| $ | 12.13 |
|
|
|
|
| ||||
Total return |
|
| 21.64 | % |
| 21.47 | % |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
Net Assets at end of period (000) |
| $ | 10,820 |
| $ | 7,544 |
|
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
Before waivers, reimbursements, and recoveries |
|
| 2.61 | % |
| 2.53 | % |
After waivers, reimbursements, and recoveries |
|
| 1.35 | % |
| 1.35 | % |
Ratio of net investment income (loss) to average net assets |
|
| (0.16 | )% |
| 0.15 | % |
Portfolio turnover |
|
| 397 | % |
| 106 | % |
(b) The amount is less than $0.005 per share.
See notes to financial statements.
62
|
Alpine Mutual Funds |
Financial Highlights
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
| |||||
|
| Dynamic Innovators Fund |
| ||||
|
|
| |||||
|
| Year Ended |
| Period Ended |
| ||
|
|
|
| ||||
|
|
|
|
|
| ||
Per Share Data: |
|
|
|
|
|
|
|
Net asset value per share, beginning of period |
| $ | 10.31 |
| $ | 10.00 |
|
|
|
|
| ||||
Income from investment operations: |
|
|
|
|
|
|
|
Net investment income |
|
| 0.07 |
|
| 0.09 |
|
Net realized and unrealized gains on investments |
|
| 3.91 |
|
| 0.22 |
|
|
|
|
| ||||
Total from investment operations |
|
| 3.98 |
|
| 0.31 |
|
Redemption fees |
|
| 0.01 |
|
| — |
|
|
|
|
| ||||
Less Distributions: |
|
|
|
|
|
|
|
From net investment income |
|
| (0.14 | ) |
| — |
|
From net realized gains on investments |
|
| (0.08 | ) |
| — |
|
|
|
|
| ||||
Total distributions |
|
| (0.22 | ) |
| — |
|
|
|
|
| ||||
Net asset value per share, end of period |
| $ | 14.08 |
| $ | 10.31 |
|
|
|
|
| ||||
Total return |
|
| 39.47 | % |
| 3.10 | %(b) |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
Net Assets at end of period (000) |
| $ | 48,355 |
| $ | 5,073 |
|
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
Before waivers, reimbursements, and recoveries |
|
| 1.53 | % |
| 4.25 | %(c) |
After waivers, reimbursements and recoveries |
|
| 1.33 | % |
| 1.35 | %(c) |
Ratio of net investment income to average net assets |
|
| 1.08 | % |
| 3.18 | %(c) |
Portfolio turnover |
|
| 135 | % |
| 3.25 | % |
(b) Not Annualized.
(c) Annualized.
See notes to financial statements.
63
|
Alpine Mutual Funds |
Financial Highlights
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| ||||||||||||||||
|
| Municipal Money Market Fund |
| |||||||||||||||
|
|
| ||||||||||||||||
|
|
|
|
| Year Ended |
|
|
|
| Period Ended |
| |||||||
|
|
|
| |||||||||||||||
|
| 2007 |
| 2006 |
| 2005 |
|
| ||||||||||
|
|
|
|
|
| |||||||||||||
Adviser Class Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net asset value per share, beginning of period |
| $ | 1.00 |
|
| $ | 1.00 |
|
| $ | 1.00 |
|
| $ | 1.00 |
|
| |
|
|
|
|
|
|
|
|
|
| |||||||||
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net investment income |
|
| 0.03 |
|
|
| 0.03 |
|
|
| 0.02 |
|
|
| 0.01 |
|
| |
|
|
|
|
|
|
|
|
|
| |||||||||
Total from investment operations |
|
| 0.03 |
|
|
| 0.03 |
|
|
| 0.02 |
|
|
| 0.01 |
|
| |
|
|
|
|
|
|
|
|
|
| |||||||||
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
From net investment income |
|
| (0.03 | ) |
|
| (0.03 | ) |
|
| (0.02 | ) |
|
| (0.01 | ) |
| |
|
|
|
|
|
|
|
|
|
| |||||||||
Total distributions |
|
| (0.03 | ) |
|
| (0.03 | ) |
|
| (0.02 | ) |
|
| (0.01 | ) |
| |
|
|
|
|
|
|
|
|
|
| |||||||||
Net asset value per share, end of period |
| $ | 1.00 |
|
| $ | 1.00 |
|
| $ | 1.00 |
|
| $ | 1.00 |
|
| |
|
|
|
|
|
|
|
|
|
| |||||||||
Total return |
|
| 3.42 | % |
|
| 3.07 | % |
|
| 1.98 | % |
|
| 0.89 | %(b) |
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net Assets at end of period (000) |
| $ | 430 |
|
| $ | 2,604 |
|
| $ | 617 |
|
| $ | 80 |
|
| |
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Before waivers and reimbursements |
|
| 0.74 | % |
|
| 0.78 | % |
|
| 0.78 | % |
|
| 0.93 | %(c) |
| |
After waivers and reimbursements |
|
| 0.51 | % |
|
| 0.55 | % |
|
| 0.53 | % |
|
| 0.59 | %(c) |
| |
Ratio of net investment income to average net assets |
|
| 3.12 | % |
|
| 3.06 | % |
|
| 2.01 | % |
|
| 0.90 | %(c) |
|
|
|
(a) | For the period from March 30, 2004 (inception of fund) to October 31, 2004. |
|
|
(b) | Not Annualized. |
|
|
(c) | Annualized. |
See notes to financial statements.
64
|
Alpine Mutual Funds |
Financial Highlights
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
| Municipal Money Market Fund |
| |||||||||||||||
|
|
| ||||||||||||||||
|
|
|
|
| Year Ended |
|
|
|
| Period Ended |
| |||||||
|
|
|
| |||||||||||||||
|
| 2007 |
| 2006 |
| 2005 |
| 2004 |
|
| ||||||||
|
|
|
|
|
|
| ||||||||||||
Investor Class Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net asset value per share, beginning of period |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
|
| $ | 1.00 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| 0.04 |
|
| 0.03 |
|
| 0.02 |
|
| 0.01 |
|
|
| 0.01 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total from investment operations |
|
| 0.04 |
|
| 0.03 |
|
| 0.02 |
|
| 0.01 |
|
|
| 0.01 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (0.04 | ) |
| (0.03 | ) |
| (0.02 | ) |
| (0.01 | ) |
|
| (0.01 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||
Total distributions |
|
| (0.04 | ) |
| (0.03 | ) |
| (0.02 | ) |
| (0.01 | ) |
|
| (0.01 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net asset value per share, end of period |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
|
| $ | 1.00 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total return |
|
| 3.68 | % |
| 3.33 | % |
| 2.24 | % |
| 1.09 | % |
|
| 1.00 | %(b) |
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets at end of period (000) |
| $ | 1,115,100 |
| $ | 365,840 |
| $ | 204,689 |
| $ | 130,147 |
|
| $ | 59,126 |
|
|
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before waivers and reimbursements |
|
| 0.49 | % |
| 0.53 | % |
| 0.53 | % |
| 0.70 | % |
|
| 0.73 | %(c) |
|
After waivers and reimbursements |
|
| 0.26 | % |
| 0.30 | % |
| 0.27 | % |
| 0.34 | % |
|
| 0.32 | %(c) |
|
Ratio of net investment income to average net assets |
|
| 3.37 | % |
| 3.31 | % |
| 2.26 | % |
| 1.10 | % |
|
| 1.09 | %(c) |
|
|
|
(a) | For the period from December 5, 2002 (inception of fund) to October 31, 2003. |
|
|
(b) | Not Annualized. |
|
|
(c) | Annualized. |
See notes to financial statements.
65
|
Alpine Mutual Funds |
Financial Highlights
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
| Ultra Short Tax Optimized Income Fund |
| ||||||||||||||
|
|
| |||||||||||||||
|
|
|
|
| Year Ended |
|
|
|
| Period Ended |
| ||||||
|
|
|
| ||||||||||||||
|
| 2007 |
| 2006 |
|
| 2005 |
|
| ||||||||
|
|
|
|
|
|
| |||||||||||
Adviser Class Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net asset value per share, beginning of period |
| $ | 10.10 |
|
| $ | 10.03 |
|
| $ | 10.15 |
|
| $ | 10.26 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| 0.38 |
|
|
| 0.31 |
|
|
| 0.28 |
|
|
| 0.16 | (b) |
|
Net realized and unrealized gains (losses) on investments |
|
| 0.00 |
|
|
| 0.09 |
|
|
| (0.12 | ) |
|
| (0.11 | ) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total from investment operations |
|
| 0.38 |
|
|
| 0.40 |
|
|
| 0.16 |
|
|
| 0.05 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (0.38 | ) |
|
| (0.33 | ) |
|
| (0.28 | ) |
|
| (0.16 | ) |
|
From net realized gains on investments |
|
| — |
|
|
| — | (f) |
|
| — |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total distributions |
|
| (0.38 | ) |
|
| (0.33 | ) |
|
| (0.28 | ) |
|
| (0.16 | ) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net asset value per share, end of period |
| $ | 10.10 |
|
| $ | 10.10 |
|
| $ | 10.03 |
|
| $ | 10.15 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total return |
|
| 3.82 | % |
|
| 4.01 | % |
|
| 1.60 | % |
|
| 0.55 | %(c) |
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets at end of period |
| $ | 871,630 |
|
| $ | 408,535 |
|
| $ | 112,454 |
|
| $ | 22,159 |
|
|
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before waivers and reimbursements |
|
| 1.14 | % |
|
| 1.16 | % |
|
| 1.15 | % |
|
| 1.25 | %(d) |
|
After waivers and reimbursements |
|
| 0.85 | % |
|
| 0.85 | % |
|
| 0.85 | % |
|
| 0.85 | %(d) |
|
Ratio of net investment income to average net assets |
|
| 3.82 | % |
|
| 3.33 | % |
|
| 2.73 | % |
|
| 2.41 | %(d) |
|
Portfolio turnover (e) |
|
| 171 | % |
|
| 96 | % |
|
| 97 | % |
|
| 55 | % |
|
|
|
(a) | For the period from March 30, 2004 (inception of fund) to October 31, 2004. |
|
|
(b) | Net investment income per share is calculated using ending balances prior to consideration of adjustment for permanent book and tax differences. |
|
|
(c) | Not Annualized. |
|
|
(d) | Annualized. |
|
|
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole, without distinguishing between classes of shares issued. |
|
|
(f) | Amount less than $.005. |
See notes to financial statements.
66
|
Alpine Mutual Funds |
Financial Highlights
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
| Ultra Short Tax Optimized Income Fund |
| |||||||||||||||
|
|
| ||||||||||||||||
|
|
|
|
| Year Ended |
|
|
|
| Period Ended |
| |||||||
|
|
|
| |||||||||||||||
|
| 2007 |
| 2006 |
| 2005 |
| 2004 |
|
| ||||||||
|
|
|
|
|
|
| ||||||||||||
Investor Class Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Net asset value per share, beginning of period |
| $ | 10.05 |
| $ | 10.03 |
| $ | 10.15 |
| $ | 10.18 |
|
| $ | 10.00 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| 0.40 |
|
| 0.36 |
|
| 0.30 |
|
| 0.27 |
|
|
| 0.23 |
|
|
Net realized and unrealized gains (losses) on investments |
|
| (0.01 | ) |
| 0.02 |
|
| (0.12 | ) |
| (0.02 | ) |
|
| 0.18 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total from investment operations |
|
| 0.39 |
|
| 0.38 |
|
| 0.18 |
|
| 0.25 |
|
|
| 0.41 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (0.40 | ) |
| (0.36 | ) |
| (0.30 | ) |
| (0.27 | ) |
|
| (0.23 | ) |
|
From net realized gains on investments |
|
| — |
|
| — | (d) |
| — |
|
| (0.01 | ) |
|
| — | (d) |
|
|
|
|
|
|
|
|
|
| ||||||||||
Total distributions |
|
| (0.40 | ) |
| (0.36 | ) |
| (0.30 | ) |
| (0.28 | ) |
|
| (0.23 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net asset value per share, end of period |
| $ | 10.04 |
| $ | 10.05 |
| $ | 10.03 |
| $ | 10.15 |
|
| $ | 10.18 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total return |
|
| 3.97 | % |
| 3.88 | % |
| 1.84 | % |
| 2.42 | % |
|
| 4.12 | %(b) |
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets at end of period (000) |
| $ | 59,409 |
| $ | 45,260 |
| $ | 45,691 |
| $ | 51,302 |
|
| $ | 55,591 |
|
|
Ratio of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before waivers and reimbursements |
|
| 0.89 | % |
| 0.91 | % |
| 0.90 | % |
| 1.04 | % |
|
| 1.02 | %(c) |
|
After waivers and reimbursements |
|
| 0.60 | % |
| 0.60 | % |
| 0.60 | % |
| 0.60 | % |
|
| 0.60 | %(c) |
|
Ratio of net investment income to average net assets |
|
| 4.07 | % |
| 3.58 | % |
| 2.98 | % |
| 2.62 | % |
|
| 2.48 | %(c) |
|
Portfolio turnover(e) |
|
| 171 | % |
| 96 | % |
| 97 | % |
| 55 | % |
|
| 46 | % |
|
|
|
(a) | For the period from December 6, 2002 (inception of fund) to October 31, 2003. |
|
|
(b) | Not Annualized. |
|
|
(c) | Annualized. |
|
|
(d) | Amount less than $0.005. |
|
|
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole, without distinguishing between classes of shares issued. |
See notes to financial statements.
67
|
Alpine Mutual Funds |
Notes to Financial Statements
Year ended October 31, 2007
|
|
1. | Organization: |
|
|
| Alpine Series Trust (the “Series Trust”) was organized in 2001 as a Delaware Business Trust, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-ended management investment company. Alpine Income Trust (the “Income Trust”) was organized in 2002 as a Delaware Business Trust, and is registered under the 1940 Act, as open-ended management investment company. Alpine Dynamic Balance Fund, Alpine Dynamic Dividend Fund, an Alpine Dynamic Financial Services Fund, and Alpine Dynamic Innovators Fund are four separate funds of the Series Trust. Alpine Municipal Money Market Fund and Alpine Ultra Short Tax Optimized Income Fund are two separate funds of the Income Trust. Effective September 24, 2007, the Alpine Tax Optimized Fund changed its name to Alpine Ultra Short Tax Optimized Fund. Alpine Dynamic Balance Fund, Alpine Dynamic Dividend Fund, Alpine Dynamic Financial Services Fund, Alpine Dynamic Innovators Fund, Alpine Municipal Money Market Fund, and Alpine Ultra Short Tax Optimized Income Fund (individually referred to as a “Fund” and collectively, “the Funds”) are diversified funds. Alpine Woods Capital Investors, LLC (the “Adviser”) is a Delaware Corporation and serves as investment manager to the Funds. The Board of Trustees approved the closing of the Adviser Class of the Municipal Money Market Fund on September 24, 2007. The final day of operation for this class was December 4, 2007. |
|
|
2. | Significant Accounting Policies: |
|
|
| The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from those estimates. |
|
|
| A. Valuation of Securities: |
|
|
| The Dynamic Balance, Dynamic Dividend, Dynamic Financial Services, Dynamic Innovators and Ultra Short Tax Optimized Income Funds value securities for which the primary market is on a domestic or foreign exchange and over-the-counter admitted to trading on the National Association of Securities Dealers Automated Quotation Market System (“NASDAQ”) National List at the last quoted sale price at the end of each business day or, if no sale, at the mean of the closing bid and asked prices. Over-the-counter securities not included in the NASDAQ National List for which market quotations are readily available are valued at a price quoted by one or more brokers. Securities for which market quotations are not readily available or whose values have been materially affected by events occurring before the close of U.S. markets but after the close of the securities’ primary markets, are valued at fair value as determined in good faith according to procedures approved by the Board of Trustees. The valuation of certain debt securities for which market quotations are not readily available may be based upon current market prices of securities which are comparable in coupon, rating, and maturity or an appropriate matrix utilizing similar factors. |
|
|
| The Municipal Money Market Fund values its investments at amortized cost, which approximates market value. Pursuant to Rule 2a-7 of the Investment Company Act of 1940, amortized cost, as defined, is a method of valuing securities at acquisition cost, adjusted for amortization of premium or accretion of discount rather than at their value based on current market factors. |
|
|
| B. Security Transactions and Investment Income: |
|
|
| Security transactions are recorded on the date a security is purchased or sold (i.e. on the trade date). Realized gains and losses are computed on the identified cost basis. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums, where applicable. Dividend income is recorded on the ex-dividend date or in the case of some foreign securities, on the date thereafter when the Funds are made aware of the dividend. Foreign income may be subject to foreign withholding taxes, which are accrued as applicable. Capital gains realized on some foreign securities are subject to foreign taxes, which are accrued as applicable. |
|
|
| Dividends and interest from non-U.S. sources received by the Funds are generally subject to non-U.S. withholding taxes at rates ranging up to 30%. Such withholding taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties, and the Funds intend to undertake any procedural steps required to claim the benefits of such treaties. |
|
|
| C. Short Sale Transactions: |
|
|
| The Dynamic Balance Fund, Dynamic Dividend Fund, Dynamic Financial Services Fund and Dynamic Innovators Fund are authorized to engage in short selling. Short sales are transactions in which a fund sells a security it does not own in anticipation of a decline in the market value of that security. To complete such a transaction, a fund must |
68
|
Alpine Mutual Funds |
Notes to Financial Statements—Continued
October 31, 2007
|
|
| borrow the security to deliver to the buyer when affecting a short sale. The fund is then obligated to replace the security borrowed by purchasing it in the open market at some later date. When a fund sells a security short, an amount equal to the sales proceeds is included in the Statements of Assets and Liabilities as an asset and an equal amount as a liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the short position. A fund will incur a loss, which could be substantial and potentially unlimited, if the market price of the security increases between the date of the short sale and the date on which the fund replaces the borrowed security. A fund will realize a gain if the security declines in value between those dates. A fund is also at risk of incurring dividend expense if the issuer of the security that has been sold short declares a dividend. A fund must pay the dividend to the lender of the security. |
|
|
| All short sales must be fully collateralized. Accordingly, the funds maintain collateral in a segregated account with their custodian, consisting of cash and/or liquid securities sufficient to collateralize their obligations on short positions. |
|
|
| D. Line of Credit: |
|
|
| Each Fund has a line of credit with Custodial Trust Company (“CTC”). Loans in aggregate, whether to cover overdrafts or for investment purposes, may not exceed the maximum amount that is permitted under the Investment Company Act of 1940, as amended. For the year ended October 31, 2007, the average interest rate paid on outstanding borrowings was 6.80%, 5.98%, and 6.29%, for the Dynamic Balance Fund, Dynamic Dividend Fund, and the Dynamic Financial Services Fund, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dynamic |
| Dynamic |
| Dynamic |
| Dynamic |
| ||||
|
|
|
|
|
|
| ||||||||
| Total line of credit amount available |
| $ | 30,872,852 |
| $ | 567,326,374 |
| $ | 6,074,410 |
| $ | 17,720,420 |
|
| Line of credit outstanding at October 31, 2007 |
|
| — |
|
| 6,359,000 |
|
| 3,593,000 |
|
| — |
|
| Line of credit amount unused at October 31, 2007 |
|
| 30,872,852 |
|
| 560,967,374 |
|
| 2,481,410 |
|
| 17,720,420 |
|
| Average balance outstanding during the period |
|
| 9,172 |
|
| 320,107 |
|
| 1,790,951 |
|
| — |
|
| Interest expense incurred during the period |
|
| 2,883 |
|
| 19,321 |
|
| 112,731 |
|
| — |
|
|
|
| E. Income Taxes: |
|
|
| It is each Fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute timely, all of its investment company taxable income and net realized capital gains to shareholders. Therefore, no federal income tax provision is recorded. |
|
|
| Under applicable foreign tax laws, a withholding tax may be imposed on interest, dividends, and capital gains earned on foreign investments. Where available, the Funds will file for claims on foreign taxes withheld. |
|
|
| F. Dividends and Distributions: |
|
|
| The Dynamic Balance, the Dynamic Dividend, Dynamic Financial Services, Dynamic Innovators and the Tax Optimized Income Funds intend to distribute substantially all of their net investment income and net realized capital gains, if any, throughout the year to their shareholders in the form of dividends. The Municipal Money Market Fund declares and accrues dividends daily on each business day based upon the Fund’s net income, and pays dividends monthly. Distributions to shareholders are recorded at the close of business on the ex-dividend date. All dividends are automatically reinvested in full and fractional shares of a Fund at net asset value per share, unless otherwise requested. |
|
|
| The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment. |
|
|
| G. Class Allocations: |
|
|
| Income, expenses (other than class specific expenses) and realized and unrealized gains and losses of the Tax Optimized Income Fund and Municipal Money Market Fund are allocated among the classes of each respective Fund based on the relative net assets of each class. Class specific expenses are allocated to the class to which they relate. Currently, class specific expenses are limited to those incurred under the Distribution Plan for Adviser Class shares. |
69
|
Alpine Mutual Funds |
Notes to Financial Statements—Continued
October 31, 2007
|
|
|
|
| H. Foreign Translation Transactions: | ||
|
|
| |
| The Dynamic Balance, Dynamic Dividend, Dynamic Financial Services and Dynamic Innovators Funds may invest up to 15%, 100%, 15% and 20%, respectively, of the value of their total assets in foreign securities. The books and records of the Funds are maintained in U.S. dollars. Non-U.S. denominated amounts are translated into U.S. dollars as follows, with the resultant translation gains and losses recorded in the Statements of Operations: | ||
|
|
|
|
|
| i) | market value of investment and other assets and liabilities at the exchange rate on the valuation date, |
|
|
|
|
|
| ii) | purchases and sales of investment securities, income and expenses at the exchange rate prevailing on the respective date of such transactions. |
|
|
| |
| I. Risk Associated With Foreign Securities and Currencies: | ||
|
|
| |
| Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is a possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries. | ||
|
|
| |
| Certain countries may also impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers or industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available to the Funds or result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries. | ||
|
|
| |
| J. Equity-Linked Structured Notes | ||
|
|
| |
| Certain Funds may invest in equity-linked structured notes. Equity-linked structured notes are derivative securities which are specially designed to combine the characteristics of one or more underlying securities and their equity derivatives in a single note form. The return and/or yield or income component may be based on the performance of the underlying equity securities, and equity index, and/or option positions. Equity-linked structured notes are typically offered in limited transactions by financial institutions in either registered or non-registered form. An investment in equity-linked notes creates exposure to the credit risk of the issuing financial institution, as well as to the market risk of the underlying securities. There is no guaranteed return of principal with these securities and the appreciation potential of these securities may be limited by a maximum payment or call right. In certain cases, equity-linked notes may be more volatile and less liquid than less complex securities or other types of fixed-income securities. Such securities may exhibit price behavior that does not correlate with other fixed-income securities. | ||
|
|
| |
| K. Forward Currency Contracts: | ||
|
|
| |
| A forward currency contract (“forward”) is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of the forward contract fluctuates with changes in forward currency exchange rates. The forward contract is marked-to-market daily and the change in market value is recorded by the Funds as unrealized appreciation or depreciation. When the forward contract is closed, the Funds record a realized gain or loss equal to the fluctuation in value during the period the forward contract was open. The Funds could be exposed to risk if a counterparty is unable to meet the terms of a forward or if the value of the currency changes unfavorably. | ||
|
|
| |
| L. New Accounting Pronouncements: | ||
|
|
| |
| In June 2006, the Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. To the extent that a tax benefit of a position is not deemed to meet the more-likely-than-not threshold, the Funds would report an income tax expense in the statement of operations. Adoption of FIN 48 is required as of the date of the last Net Asset Value (“NAV”) calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. On December 22, 2006, the Securities and Exchange Commission (“SEC”) granted a six-month delay in the required implementation of FIN 48 for registered investment companies. At this time, management is evaluating the implications of FIN 48, and the impact, if any, of this standard on the Funds’ financial statements has not yet been determined. |
70
|
Alpine Mutual Funds |
Notes to Financial Statements—Continued
October 31, 2007
|
|
| In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements.” The Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. The Statement establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and is to be applied prospectively as of the beginning of the fiscal year in which this Statement is initially applied. At this time, management is evaluating the implications of FAS 157, and the impact, if any, of this standard on the Funds’ financial statements has not yet been determined. |
|
|
3. | Capital Share Transactions |
|
|
| The Funds have an unlimited number of shares of beneficial interest, with $0.0001 par value, authorized. Transactions in shares and dollars of the Funds were as follows: |
|
|
| Dynamic Balance Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended |
| Year Ended |
| ||||||||
|
|
|
|
| ||||||||||
|
|
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
|
|
|
|
|
|
| ||||||||
| Shares sold |
|
| 105,507 |
| $ | 1,455,693 |
|
| 370,139 |
| $ | 4,892,372 |
|
| Shares issued in reinvestment of dividends |
|
| 338,493 |
|
| 4,556,609 |
|
| 223,573 |
|
| 2,949,759 |
|
| Redemption fees |
|
| — |
|
| 471 |
|
| — |
|
| 828 |
|
| Shares redeemed |
|
| (782,987 | ) |
| (10,723,292 | ) |
| (1,132,504 | ) |
| (15,013,692 | ) |
|
|
|
|
|
|
| ||||||||
| Total net change |
|
| (338,987 | ) | $ | (4,710,519 | ) |
| (538,792 | ) | $ | (7,170,733 | ) |
|
|
|
|
|
|
|
|
|
| Dynamic Dividend Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended |
| Year Ended |
| ||||||||
|
|
|
|
| ||||||||||
|
|
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
|
|
|
|
|
|
| ||||||||
| Shares sold |
|
| 81,648,499 |
| $ | 1,071,958,520 |
|
| 30,153,191 |
| $ | 375,145,264 |
|
| Shares issued in reinvestment of dividends |
|
| 8,874,167 |
|
| 115,362,111 |
|
| 3,582,605 |
|
| 44,232,625 |
|
| Redemption fees |
|
| — |
|
| 331,271 |
|
| — |
|
| 87,691 |
|
| Shares redeemed |
|
| (28,518,733 | ) |
| (365,833,646 | ) |
| (9,111,449 | ) |
| (112,214,380 | ) |
|
|
|
|
|
|
| ||||||||
| Total net change |
|
| 62,003,933 |
| $ | 821,818,256 |
|
| 24,624,347 |
| $ | 307,251,200 |
|
|
|
|
|
|
|
|
|
|
| Dynamic Financial Services Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended |
| Year Ended |
| ||||||||
|
|
|
|
| ||||||||||
|
|
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
|
|
|
|
|
|
| ||||||||
| Shares sold |
|
| 789,667 |
| $ | 9,859,139 |
|
| 662,964 |
| $ | 7,434,176 |
|
| Shares issued in reinvestment of dividends |
|
| 34,969 |
|
| 434,665 |
|
| 81 |
|
| 840 |
|
| Redemption fees |
|
| — |
|
| 4,434 |
|
| — |
|
| 1,701 |
|
| Shares redeemed |
|
| (667,395 | ) |
| (8,127,045 | ) |
| (41,230 | ) |
| (483,145 | ) |
|
|
|
|
|
|
| ||||||||
| Total net change |
|
| 157,241 |
| $ | 2,171,193 |
|
| 621,815 |
| $ | 6,953,572 |
|
|
|
|
|
|
|
|
71
|
Alpine Mutual Funds |
Notes to Financial Statements—Continued
October 31, 2007
|
|
| Dynamic Innovators Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended |
| Period Ended |
| ||||||||
|
|
|
|
| ||||||||||
|
|
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
|
|
|
|
|
|
| ||||||||
| Shares sold |
|
| 3,025,024 |
| $ | 39,547,376 |
|
| 492,389 |
| $ | 4,924,505 |
|
| Shares issued in reinvestment of dividends |
|
| 10,487 |
|
| 108,857 |
|
| — |
|
| — |
|
| Redemption fees |
|
| — |
|
| 8,144 |
|
| — |
|
| — |
|
| Shares redeemed |
|
| (92,581 | ) |
| (1,204,553 | ) |
| (279 | ) |
| (2,803 | ) |
|
|
|
|
|
|
| ||||||||
| Total net change |
|
| 2,942,930 |
| $ | 38,459,824 |
|
| 492,110 |
| $ | 4,921,702 |
|
|
|
|
|
|
|
|
|
|
(1) | Commenced operations on July 11, 2006. |
|
|
| Alpine Municipal Money Market Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended |
| Year Ended |
| ||||||||
|
|
|
|
| ||||||||||
|
|
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
|
|
|
|
|
|
| ||||||||
| Investor Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares sold |
|
| 6,946,498,894 |
| $ | 6,946,498,894 |
|
| 710,971,867 |
| $ | 710,996,325 |
|
| Shares issued in reinvestment of dividends |
|
| 21,148,612 |
|
| 21,148,611 |
|
| 6,751,219 |
|
| 6,751,219 |
|
| Shares redeemed |
|
| (6,218,387,601 | ) |
| (6,218,387,601 | ) |
| (556,596,165 | ) |
| (556,596,165 | ) |
|
|
|
|
|
|
| ||||||||
| Total net change |
|
| 749,259,905 |
| $ | 749,259,904 |
|
| 161,126,921 |
| $ | 161,151,379 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adviser Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares sold |
|
| 521,785 |
| $ | 520,549 |
|
| 4,105,510 |
| $ | 4,105,509 |
|
| Shares issued in reinvestment of dividends |
|
| 27,091 |
|
| 28,327 |
|
| 28,844 |
|
| 28,844 |
|
| Shares redeemed |
|
| (2,722,763 | ) |
| (2,722,763 | ) |
| (2,147,291 | ) |
| (2,147,291 | ) |
|
|
|
|
|
|
| ||||||||
| Total net change |
|
| (2,173,887 | ) | $ | (2,173,887 | ) |
| 1,987,063 |
| $ | 1,987,062 |
|
|
|
|
|
|
|
|
|
|
| Alpine Ultra Short Tax Optimized Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended |
| Year Ended |
| ||||||||
|
|
|
|
| ||||||||||
|
|
| Shares |
| Amount |
| Shares |
| Amount |
| ||||
|
|
|
|
|
|
| ||||||||
| Investor Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares sold |
|
| 1,893,951 |
| $ | 19,052,155 |
|
| 257,070 |
| $ | 2,582,229 |
|
| Shares issued in reinvestment of dividends |
|
| 199,835 |
|
| 2,007,061 |
|
| 160,542 |
|
| 1,610,154 |
|
| Redemption fees |
|
| — |
|
| 491 |
|
| — |
|
| 50 |
|
| Shares redeemed |
|
| (684,690 | ) |
| (6,888,073 | ) |
| (466,588 | ) |
| (4,682,994 | ) |
|
|
|
|
|
|
| ||||||||
| Total net change |
|
| 1,409,096 |
| $ | 14,171,634 |
|
| (48,976 | ) | $ | (490,561 | ) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adviser Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares sold |
|
| 89,889 |
| $ | 909,966 |
|
| 41,598 |
| $ | 420,019 |
|
| Shares issued in reinvestment of dividends |
|
| 2,499 |
|
| 25,241 |
|
| 366 |
|
| 3,693 |
|
| Redemption fees |
|
| — |
|
| 17 |
|
|
|
|
|
|
|
| Shares redeemed |
|
| (46,537 | ) |
| (470,517 | ) |
| (12,724 | ) |
| (127,291 | ) |
|
|
|
|
|
|
| ||||||||
| Total net change |
|
| 45,851 |
| $ | 464,707 |
|
| 29,240 |
| $ | 296,421 |
|
|
|
|
|
|
|
|
72
|
Alpine Mutual Funds |
Notes to Financial Statements—Continued
October 31, 2007
|
|
4. | Purchases and Sales of Securities: |
|
|
| Purchases and sales of securities (excluding short-term securities) for the year ended October 31, 2007 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-U.S. Government |
| U.S. Government |
| ||||||||
|
|
|
|
| ||||||||||
|
|
| Purchases |
| Sales |
| Purchases |
| Sales |
| ||||
|
|
|
|
|
|
| ||||||||
| Dynamic Balance Fund |
| $ | 19,406,424 |
| $ | 45,089,585 |
| $ | 6,294,091 |
| $ | 6,914,821 |
|
| Dynamic Dividend Fund |
|
| 3,207,383,316 |
|
| 2,326,123,744 |
|
| — |
|
| — |
|
| Dynamic Financial Services Fund |
|
| 53,625,251 |
|
| 50,234,763 |
|
| — |
|
| — |
|
| Dynamic Innovators Fund |
|
| 33,322,029 |
|
| 9,766,836 |
|
| — |
|
| — |
|
| Ultra Short Tax Optimized Income Fund |
|
| 136,427,612 |
|
| 122,445,000 |
|
| — |
|
| — |
|
|
|
5. | Distribution Plans: |
|
|
| Quasar Distributors, LLC (“Quasar”) serves as the Funds’ distributor. The Municipal Money Market Fund and the Tax Optimized Income Fund have each adopted a distribution and servicing plan (the “Plan”) for its Adviser Class shares as allowed by Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Fund in connection with the distribution and servicing of its shares at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Fund’s average daily net assets. Amounts paid under the Plan by the Fund may be spent by the Fund on any activities or expenses primarily intended to result in the sale of shares of the Fund, including but not limited to advertising, compensation for sales and marketing activities of financial institutions and others such as dealers and distributors, shareholder account servicing, the printing and mailing of prospectuses to other than current shareholders and the printing and mailing of sales literature. The Municipal Money Market Fund incurred $2,538 and the Tax Optimized Income Fund incurred $1,614 pursuant to the Plan for the year ended October 31, 2007. |
|
|
| The Plan for the Municipal Money Market Fund and the Tax Optimized Income may be terminated at any time by vote of the Trustees of the Income Trust who are not “interested persons”, as defined by the 1940 Act, of the Income Trust, or by vote of a majority of the outstanding voting shares of the respective class. |
|
|
6. | Investment Advisory Agreement and Other Affiliated Transactions: |
|
|
| Alpine Woods Capital Investors, LLC (“Alpine”) provides investment advisory services to the Funds. Pursuant to the investment adviser’s agreement with the Funds, Alpine is entitled to an annual fee based on 1.00% of each Fund’s average daily net assets for the Dynamic Balance Fund, Dynamic Dividend Fund, Dynamic Financial Services Fund and Dynamic Innovators Fund. Alpine is entitled to an annual fee based on 0.45% of the Municipal Money Market Fund’s average daily net assets and an annual fee based on 0.75% of the Tax Optimized Income Fund’s average daily net assets. |
|
|
| The Adviser agreed to reimburse the Dynamic Balance Fund, Dynamic Dividend Fund, Dynamic Financial Services Fund, Dynamic Innovators Fund and Tax Optimized Income Fund-Investor Class to the extent necessary to ensure that the Fund’s total operating expenses (excluding 12b-1 fees, interest, brokerage commissions and extraordinary expenses) did not exceed 1.35%, 1.35% 1.35%, 1.35%, and 0.60% of the Fund’s average daily net assets, respectively. For the year ended October 31, 2007, the Adviser agreed to reimburse the Municipal Money Market Fund-Investor Class to the extent necessary to ensure that the Fund’s total operating expenses (excluding 12b-1 fees, interest, brokerage commissions and extraordinary expenses) did not exceed certain limits. The limits ranged from 0.21% to 0.30% of the Fund’s average daily net assets during year ended October 31, 2007. The expense caps for the Adviser Class Shares of the Municipal Money Market Fund and Tax Optimized Income Fund are 0.25% higher than the Investor Class shares. The Adviser may recover expenses paid in excess of the cap on expenses for the three previous years, as long as the recovery does not cause the Fund to exceed such cap on expenses. For the year ended October 31, 2007, the Adviser waived investment advisory fees totaling $1,718,243, $148,724, $139,356 and $22,424 for the Municipal Money Market Fund, Tax Optimized Income Fund, Dynamic Financial Services Fund and Dynamic Innovators Fund, respectively. The expense limitation will remain in effect unless and until the Board of Trustees of the Series and Income Trusts approve its modification or termination. |
73
|
Alpine Mutual Funds |
Notes to Financial Statements—Continued
October 31, 2007
|
|
| Reimbursed/absorbed expenses subject to potential recovery by year of expiration as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year of Expiration |
| Dynamic |
| Dynamic |
| Dynamic |
| Municipal |
| Ultra Short |
| |||||
|
|
|
|
|
|
| |||||||||||
| 10/31/08 |
| $ | — |
| $ | — |
| $ | — |
| $ | 574,245 |
| $ | 148,232 |
|
| 10/31/09 |
| $ | — |
| $ | 42,892 |
| $ | 42,102 |
| $ | — |
| $ | — |
|
| 10/31/10 |
| $ | — |
| $ | 139,356 |
| $ | 22,424 |
| $ | 1,718,243 |
| $ | 148,724 |
|
|
|
| At October 31, 2007, the Dynamic Dividend Fund had $984 invested in the Municipal Money Market Fund. |
|
|
7. | Federal Income Tax Information: |
|
|
| At October 31, 2007, the components of accumulated earnings/(losses) on a tax basis were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dynamic |
| Dynamic |
| Dynamic |
| Dynamic |
| Municipal |
| Ultra Short Tax |
| ||||||
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Cost of investments |
| $ | 73,107,575 |
| $ | 1,408,722,708 |
| $ | 13,412,769 |
| $ | 47,941,224 |
| $ | 1,101,729,031 |
| $ | 58,779,493 |
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Gross unrealized appreciation |
| $ | 20,884,197 |
| $ | 148,036,313 |
| $ | 644,725 |
| $ | 3,749,563 |
| $ | — |
| $ | 118,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Gross unrealized depreciation |
|
| (7,217,519 | ) |
| (73,239,648 | ) |
| (2,231,812 | ) |
| (775,777 | ) |
| — |
|
| (27,510 | ) |
|
|
|
|
|
|
|
|
| ||||||||||||
| Net unrealized appreciation/depreciation |
| $ | 13,666,678 |
| $ | 74,796,665 |
| $ | (1,587,087 | ) | $ | 2,973,786 |
| $ | — |
| $ | 91,078 |
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Undistributed ordinary income |
| $ | 568,743 |
| $ | 28,530,268 |
| $ | 2,663,093 |
| $ | 1,950,071 |
| $ | — |
| $ | 7,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Undistributed long-term capital gain |
|
| 5,543,410 |
|
| — |
|
| — |
|
| 54,842 |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Total distributable earnings |
| $ | 6,112,153 |
| $ | 28,530,268 |
| $ | 3,217,662 |
| $ | 2,004,913 |
| $ | — |
| $ | 7,979 |
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Other accumulated gain/(losses) |
| $ | — |
| $ | (56,224,768 | ) | $ | 59,108 |
| $ | (5,496 | ) | $ | (412 | ) | $ | (57,473 | ) |
|
|
|
|
|
|
|
|
| ||||||||||||
| Total accumulated earnings/(losses) |
| $ | 19,778,831 |
| $ | 47,102,165 |
| $ | 1,695,250 |
| $ | 4,973,203 |
| $ | (412 | ) | $ | 41,584 |
|
|
|
|
|
|
|
|
|
|
|
|
| The tax basis of investments for tax and financial reporting purposes differs principally due to the deferral of losses on wash sales, REIT tax adjustments, and mark-to-market cost basis adjustments for investments in foreign passive investment companies (PFICs) for tax purposes. |
74
|
Alpine Mutual Funds |
Notes to Financial Statements—Continued
October 31, 2007
|
|
| The tax character of distributions paid during the years ended October 31, 2007 and 2006 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
| 2007 |
| 2006 |
| ||
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| Dynamic Balance Fund |
|
|
|
|
|
|
|
| Ordinary income |
| $ | 2,193,895 |
| $ | 1,535,036 |
|
| Long-term capital gain |
|
| 2,767,519 |
|
| 1,667,049 |
|
|
|
|
|
| ||||
|
|
|
| 4,961,414 |
| $ | 3,202,085 |
|
|
|
|
|
| ||||
| Dynanic Dividend Fund |
|
|
|
|
|
|
|
| Ordinary income |
| $ | 151,334,543 |
| $ | 57,422,280 |
|
| Long-term capital gain |
|
| — |
|
| — |
|
|
|
|
|
| ||||
|
|
| $ | 151,334,543 |
| $ | 57,422,280 |
|
|
|
|
|
| ||||
| Dynamic Financial Services Fund |
|
|
|
|
|
|
|
| Ordinary income |
| $ | 540,721 |
| $ | 840 |
|
| Long-term capital gain |
|
| — |
|
| — |
|
|
|
|
|
| ||||
|
|
| $ | 540,721 |
| $ | 840 |
|
|
|
|
|
| ||||
| Dynamic Innovators Fund |
|
|
|
|
|
|
|
| Ordinary income |
| $ | 109,960 |
| $ | — |
|
| Long-term capital gain |
|
| — |
|
| — |
|
|
|
|
|
| ||||
|
|
| $ | 109,960 |
| $ | — |
|
|
|
|
|
| ||||
| Municipal Money Market Fund |
|
|
|
|
|
|
|
| Exempt interest dividend |
| $ | 27,398,638 |
| $ | 8,396,915 |
|
| Ordinary income |
|
| 185 |
|
| 6,838 |
|
| Long-term capital gain |
|
| — |
|
| — |
|
|
|
|
|
| ||||
|
|
| $ | 27,398,823 |
| $ | 8,403,753 |
|
|
|
|
|
| ||||
| Ultra Short Tax Optimized Income Fund |
|
|
|
|
|
|
|
| Ordinary income |
| $ | 674,305 |
| $ | 316,991 |
|
| Exempt interest dividends |
|
| 1,413,327 |
|
| 1,309,437 |
|
| Long-term capital gain |
|
| — |
|
| — |
|
|
|
|
|
| ||||
|
|
| $ | 2,087,632 |
| $ | 1,626,428 |
|
|
|
|
|
|
|
|
| Capital loss carryovers as of October 31, 2007 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
| Expiration Date |
| Municipal |
| Dynamic |
| Ultra Short |
| |||
|
|
|
|
| |||||||
| 10/31/2012 |
| $ | 412 |
|
| — |
|
| — |
|
| 10/31/2013 |
|
| — |
| $ | 4,335,047 |
|
| — |
|
| 10/31/2014 |
|
| — |
| $ | 15,084,034 |
| $ | 55,361 |
|
| 10/31/2015 |
|
| — |
| $ | 37,200,325 |
| $ | 2,112 |
|
|
|
|
| ||
| * | Capital gain distributions will resume in the future to the extent gains are realized in excess of the available gains. |
75
|
Alpine Mutual Funds |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and Board of Trustees
of Alpine Series Trust and Alpine Income Trust:
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments of Alpine Series Trust, comprising the Alpine Dynamic Balance Fund, Alpine Dynamic Dividend Fund, Alpine Dynamic Financial Services Fund, and Alpine Dynamic Innovators Fund; and Alpine Income Trust, comprising the Alpine Municipal Money Market Fund and Alpine Ultra Short Tax Optimized Fund (collectively, the “Funds”), as of October 31, 2007 and the related statements of operations and changes in net assets for the periods indicated therein, and the financial highlights for the periods subsequent to October 31, 2003, and the statement of cash flows for the Alpine Dynamic Financial Services Fund for the year ended October 31, 2007. 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. The Funds’ financial highlights for the period ended October 31, 2003 were audited by other auditors whose report, dated December 19, 2003, expressed an unqualified opinion on those financial highlights.
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 are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2007, by correspondence with the custodian and brokers; where replies where not received from brokers, we performed other auditing procedures. 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 each of the Funds as of October 31, 2007, and the results of its operations, the changes in their net assets, financial highlights for the periods indicated in the first paragraph and the cash flows of Alpine Dynamic Financial Services Fund for the year ended October 31, 2007, in conformity with accounting principles generally accepted in the United States of America.
|
Milwaukee, WI |
December 21, 2007 |
76
|
Alpine Mutual Funds |
Additional Information (Unaudited)
Expense Examples
October 31, 2007
As a shareholder of the Dynamic Balance Fund and the Municipal Money Market Fund, Adviser and Investor Class, you will incur ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. As a shareholder of the Dynamic Dividend Fund and the Tax Optimized Income Fund, Adviser & Investor Class, you will incur two types of costs: (1) redemption fees and (2) ongoing costs. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on in investment of $1,000 for the period 5/1/07-10/31/07.
The first line of the tables below provides information about actual account values and actual expenses. The Funds charge no sales load or transaction fees, but do assess shareholders for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Funds’ transfer agent. If you request a redemption by wire transfer, currently a $15.00 fee is charged by the Funds’ transfer agent. Shareholders in the Dynamic Dividend Fund will be charged a redemption fee equal to 1.00% of the net amount of the redemption if they redeem their shares less than 60 calendar days after purchase. Shareholders in the Tax Optimized Income Fund, Adviser & Investor Class, will be charged a redemption fee equal to 0.25% of the net amount of the redemption if they redeem their shares less than 30 calendar days after purchase. IRA accounts will be charged a $15.00 annual maintenance fee. To the extent the Funds invest in shares of other investment companies as a part of their investment strategies, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying funds in which the Funds invest in addition to the expenses of the Fund. These expenses are not included in the example below. The example below includes, but is not limited to, management fees, shareholder servicing fees, fund accounting, custody and transfer agent fees. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. 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 in the first line under heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which does not represent the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Alpine Dynamic Balance Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| |||||||||
|
|
|
|
| ||||||||||||
Actual (1) |
|
| $ | 1,000.00 |
|
|
| $ | 983.10 |
|
|
| $ | 5.80 |
|
|
Hypothetical (2) |
|
| $ | 1,000.00 |
|
|
| $ | 1,019.36 |
|
|
| $ | 5.90 |
|
|
|
|
(1) | Ending account values and expenses paid during period based on a (1.69)% return. The return is considered after expenses are deducted from the fund. |
|
|
(2) | Ending account values and expenses paid during period based on a 5.00% annual return. The return is considered before expenses are deducted from the fund. |
|
|
* | Expenses are equal to Fund’s annualized expense ratio of 1.16%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
77
|
Alpine Mutual Funds |
Additional Information (Unaudited)—Continued
Expense Examples
October 31, 2007
Alpine Dynamic Dividend Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| |||||||||
|
|
|
|
| ||||||||||||
Actual (1) |
|
| $ | 1,000.00 |
|
|
| $ | 1,039.60 |
|
|
| $ | 5.91 |
|
|
Hypothetical (2) |
|
| $ | 1,000.00 |
|
|
| $ | 1,014.41 |
|
|
| $ | 5.85 |
|
|
|
|
(1) | Ending account values and expenses paid during period based on a 3.96% return. The return is considered after expenses are deducted from the fund. |
|
|
(2) | Ending account values and expenses paid during period based on a 5.00% annual return. The return is considered before expenses are deducted from the fund. |
|
|
* | Expenses are equal to Fund’s annualized expense ratio of 1.15%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Alpine Dynamic Financial Services Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| |||||||||
|
|
|
|
| ||||||||||||
Actual (1) |
|
| $ | 1,000.00 |
|
|
| $ | 1,083.50 |
|
|
| $ | 7.09 |
|
|
Hypothetical (2) |
|
| $ | 1,000.00 |
|
|
| $ | 1,018.40 |
|
|
| $ | 6.87 |
|
|
|
|
(1) | Ending account values and expenses paid during period based on a 8.35% return. The return is considered after expenses are deducted from the fund. |
|
|
(2) | Ending account values and expenses paid during period based on a 5.00% annual return. The return is considered before expenses are deducted from the fund. |
|
|
* | Expenses are equal to Fund’s annualized expense ratio of 1.35%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Alpine Dynamic Innovators Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| |||||||||
|
|
|
|
| ||||||||||||
Actual (1) |
|
| $ | 1,000.00 |
|
|
| $ | 1,254.90 |
|
|
| $ | 7.67 |
|
|
Hypothetical (2) |
|
| $ | 1,000.00 |
|
|
| $ | 1,018.40 |
|
|
| $ | 6.87 |
|
|
|
|
(1) | Ending account values and expenses paid during period based on a 25.49% return. The return is considered after expenses are deducted from the fund. |
|
|
(2) | Ending account values and expenses paid during period based on a 5.00% annual return. The return is considered before expenses are deducted from the fund. |
|
|
* | Expenses are equal to Fund’s annualized expense ratio of 1.35%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Alpine Municipal Money Market Fund
Adviser Class Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| |||||||||
|
|
|
|
| ||||||||||||
Actual |
|
| $ | 1,000.00 |
|
|
| $ | 1,017.30 |
|
|
| $ | 2.59 |
|
|
Hypothetical |
|
| $ | 1,000.00 |
|
|
| $ | 1,022.63 |
|
|
| $ | 2.60 |
|
|
|
|
(1) | Ending account values and expenses paid during period based on a 1.73% return. The return is considered after expenses are deducted from the fund. |
|
|
(2) | Ending account values and expenses paid during period based on a 5.00% annual return. The return is considered before expenses are deducted from the fund. |
|
|
* | Expenses are equal to Fund’s annualized expense ratio of 0.51%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
78
|
Alpine Mutual Funds |
Additional Information (Unaudited)—Continued
Expense Examples
October 31, 2007
Alpine Municipal Money Market Fund
Investor Class Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| |||||||||
|
|
|
|
| ||||||||||||
Actual |
|
| $ | 1,000.00 |
|
|
| $ | 1,018.60 |
|
|
| $ | 1.32 |
|
|
Hypothetical |
|
| $ | 1,000.00 |
|
|
| $ | 1,023.89 |
|
|
| $ | 1.33 |
|
|
|
|
(1) | Ending account values and expenses paid during period based on a 1.86% return. The return is considered after expenses are deducted from the fund. |
|
|
(2) | Ending account values and expenses paid during period based on a 5.00% annual return. The return is considered before expenses are deducted from the fund. |
|
|
* | Expenses are equal to Fund’s annualized expense ratio of 0.26%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Alpine Ultra Short Tax Optimized Income Fund
Adviser Class Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| |||||||||
|
|
|
|
| ||||||||||||
Actual |
|
| $ | 1,000.00 |
|
|
| $ | 1,019.70 |
|
|
| $ | 4.33 |
|
|
Hypothetical |
|
| $ | 1,000.00 |
|
|
| $ | 1,020.92 |
|
|
| $ | 4.33 |
|
|
|
|
(1) | Ending account values and expenses paid during period based on a 1.97% return. The return is considered after expenses are deducted from the fund. |
|
|
(2) | Ending account values and expenses paid during period based on a 5.00% annual return. The return is considered before expenses are deducted from the fund. |
|
|
* | Expenses are equal to Fund’s annualized expense ratio of 0.85%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Alpine Tax Optimized Income Fund
Investor Class Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| |||||||||
|
|
|
|
| ||||||||||||
Actual |
|
| $ | 1,000.00 |
|
|
| $ | 1,020.10 |
|
|
| $ | 3.06 |
|
|
Hypothetical |
|
| $ | 1,000.00 |
|
|
| $ | 1,022.18 |
|
|
| $ | 3.06 |
|
|
|
|
(1) | Ending account values and expenses paid during period based on a 2.01% return. The return is considered after expenses are deducted from the fund. |
|
|
(2) | Ending account values and expenses paid during period based on a 5.00% annual return. The return is considered before expenses are deducted from the fund. |
|
|
* | Expenses are equal to Fund’s annualized expense ratio of 0.60%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
79
|
Alpine Mutual Funds |
Additional Information (Unaudited)—Continued
October 31, 2007
Investment Advisor and Advisory Contract
On December 18, 2006, at a meeting called for the purpose of voting on such approval, the Boards of Trustees, including all of the Trustees who are not parties to the Advisory Contracts or interested persons of any such party (the non-interested Trustees), approved the continuance of the Advisory Contracts for the Funds. In so doing, the Board Members studied materials specifically relating to the Advisory Contracts provided by the Adviser, the Funds’ counsel and the Funds’ administrator. The Board Members considered a variety of factors, including the following:
The Board Members considered the expected nature, quality and scope of the management and investment advisory services and personnel provided each Fund by the Adviser; the rate of investment advisory fees payable to the Adviser and a comparison of the fees paid by comparable funds; the compensation (in addition to the investment advisory fees) and other benefits received by the Adviser and its respective affiliates; the Adviser’s costs in providing services; the economies of scale realized by the Adviser; the annual operating expenses of each Fund; and the policies and practices of the Adviser with respect to portfolio transactions for each Fund.
After reviewing the diligence materials provided by USBFS, the Advisor and Fund Counsel, the Board began a discussion to assess the overall quality of services. The Board considered the Advisor’s specific responsibilities in all aspects of day-to-day management of the Fund’s managed by the Advisor, as well as the qualifications, experience and responsibilities of the portfolio managers and other key personnel at the Advisor involved in the day-to-day activities of each Fund. The Board also considered, with regard to each Fund, the prior relationship between the Advisor and the Fund, as well as the Board’s knowledge of the Advisor’s operations. The Trustees also considered the Advisor’s marketing activity and commitment to Fund growth. The Trustees also considered the structure and effectiveness of the Advisor’s compliance procedures the Advisor’s record of willingness to meet in person with the Trustees to discuss various performance, marketing and compliance issues. The Trustees also noted any services that extended beyond portfolio management, and they considered the trading capability of the Advisor.
The Board Members also evaluated the investment performance of the Funds on an absolute basis, relative to their respective benchmark indices over the last year, three years, five years, ten years and since inception (as applicable) and in comparison to their relative peer group.
The Board Members also reviewed Lipper analytical data relating to average expenses and advisory fees for comparable funds. Based on the information provided, the Board Members determined that each Fund’s fee structure is competitive with funds having similar investment goals and strategies.
The Board Members considered the Funds’ total expense ratios and contractual investment advisory fees compared to their respective industry average by quartile, within the appropriate Lipper benchmark category and Lipper category range. The Board Members also considered the amount and nature of fees paid by shareholders.
The Trustees also considered the overall profitability of the Advisor, reviewing certain financial information and noting in particular whether the Advisor had subsidized a Fund’s operations in its early years and whether it had recouped the amount of these subsidies. The Trustees considered both the direct and indirect benefits to the Advisor from advising the Funds. The Trustees also examined the level of profits that could be expected to accrue to the Advisor from the fees payable under the Agreements and any expense subsidization undertaken by the Advisor, as well as each Fund’s brokerage, and commissions. The Board Members considered the fact that the Adviser has contractually agreed to waive a portion of its fees for the Dynamic Balance Fund, the Dynamic Dividend Fund, the Dynamic Financial Services Fund, the Dynamic Innovators Fund, the Municipal Money Market Fund and the Tax Optimized Income Fund for a period of one year, to be reviewed again at the next Advisory Contract renewal. It was noted that each Fund’s management fee and expense ratio are within the average range compared to its peer funds.
The Board Members considered the extent to which economies of scale would be realized with respect to operational costs as the Funds grow in their number of shareholders and assets under management, the existence of breakpoints previously established by the Adviser, and whether fee levels to be charged by the Adviser reflect these economies of scale for the benefit of Fund investors and are fair under the circumstances, which the Board Members, including all of the non-interested Trustees, believed to be the case.
Based on the Board Members’ review and consultation with the Funds’ independent counsel, of the material aspects of the Advisory Contracts, including the foregoing factors and such other information believed to be reasonably necessary to evaluate the terms of the Advisory Contracts, the Board Members, including all of the non-interested Trustees voting separately, concluded that the continuation of the Advisory Contracts would be in the best interest of the Funds’ shareholders, and determined that the compensation to the Adviser provided for in the Advisory Contracts is fair and equitable.
80
|
Alpine Mutual Funds |
Additional Information (Unaudited)—Continued
October 31, 2007
Tax Information
The Funds designated the following percentages of dividends declared from net investment income for the fiscal year ended October 31, 2007 as qualified dividend income under the Jobs & Growth Tax Relief Reconciliation Act of 2003.
|
|
|
|
|
Dynamic Balance Fund |
|
| 60.47 | % |
Dynamic Dividend Fund |
|
| 100.00 | % |
Dynamic Financial Services Fund |
|
| 0 | % |
Dynamic Innovators Fund |
|
| 0 | % |
The Funds designated the following percentages of dividends declared during the fiscal year ended October 31, 2006 as dividends qualifying for the dividends received deduction available to corporate shareholders.
|
|
|
|
|
Dynamic Dividend Fund |
|
| 59.80 | % |
Dynamic Balance Fund |
|
| 44.70 | % |
Dynamic Financial Services Fund |
|
| 0 | % |
Dynamic Innovators Fund |
|
| 0 | % |
Availability of Proxy Voting Information
Information regarding how the Fund votes proxies relating to portfolio securities is available without charge upon request by calling toll-free at 1-888-785-5578 and on the SEC’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve month period ended June 30 is available on the SEC’s website at www.sec.gov or by calling the toll-free number listed above.
Availability of Quarterly Portfolio Schedule
Beginning with the Fund’s fiscal quarter ended July 31, 2004, the Funds filed their complete schedules of portfolio holdings on Form N-Q with the SEC. Going forward, the Funds will file Form N-Q for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
81
|
Alpine Mutual Funds |
Additional Information (Unaudited)—Continued
October 31, 2007
Information about Trustees and Officers
The business and affairs of the Funds are managed under the direction of Funds’ Board of Trustees. Information pertaining to the Trustees and Officers of the Funds is set forth below. The SAI includes additional information about the Funds’ Trustees and Officers and is available, without charge, upon request by calling 1-888-785-5578.
|
|
|
|
|
|
|
|
|
|
|
Independent Trustees | ||||||||||
| ||||||||||
Name, Address and Age |
| Position(s) |
| Term of Office |
| Principal Occupation During |
| # of |
| Other Directorships |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Laurence B. Ashkin (79) |
| Independent Trustee |
| Indefinite, since the Trust’s inception |
| Real estate developer and construction consultant since 1980; Founder and President of Centrum Properties, Inc. since 1980. |
| 13 |
| Trustee of each of the Alpine Trusts. |
H. Guy Leibler (53) |
| Independent Trustee |
| Indefinite, since the Trust’s inception |
| Vice Chair & Chief Operating Officer of L&L Acquisitions, LLC (2004-2007); President, Skidmore, Owings & Merrill LLP (2001–2004). |
| 13 |
| Chairman Emeritus, White Plains Hospital Center; Trustee, each of the Alpine Trusts. |
Jeffrey E. Wacksman (47) |
| Independent Trustee |
| Indefinite, since 2004 |
| Partner, Loeb, Block & Partners LLP since 1994. |
| 13 |
| Director, International Succession Planning Association; Trustee, Larchmont Manor Park Society; Director, Bondi Icebergs Inc. (Women’s Sportswear); Director, MH Properties, Inc.; Trustee, each of the Alpine Trusts. |
|
|
* | The term “Fund Complex” refers to the Funds in the Alpine Equity Trust, Alpine Series Trust, Alpine Income Trust, and the Alpine Global Dynamic Dividend Fund, Alpine Total Dynamic Dividend Fund, and the Alpine Global Premier Properties Fund. |
82
|
Alpine Mutual Funds |
Additional Information (Unaudited) —Continued
October 31, 2007
|
|
|
|
|
|
|
|
|
|
|
Interested Trustees & Officers | ||||||||||
| ||||||||||
Name, Address and Age |
| Position(s) |
| Term of Office |
| Principal Occupation During |
| # of |
| Other Directorships |
|
|
|
|
| ||||||
Samuel A. Lieber* (51) |
| Interested Trustee, President and Portfolio Manager |
| Indefinite, since the Trust’s inception |
| CEO of Alpine Woods Capital Investors, LLC since November 1997. Formerly Senior Portfolio Manager with Evergreen Asset Management Corp. (1985–1997). |
| 13 |
| Trustee, each of the Alpine Trusts. |
Stephen A. Lieber*** (82) |
| Vice President and Portfolio Manager |
| Indefinite, since the Trust’s inception |
| Chief Investment Officer, Alpine Woods Capital Investors, LLC since 2003; Chairman and Senior Portfolio Manager, Saxon Woods Advisors, LLC since 1999. |
| N/A |
| None |
Robert W. Gadsden (50), |
| Vice President and Portfolio Manager |
| Indefinite, since 1999 |
| Portfolio Manager and Senior Real Estate Analyst of Alpine Woods Capital Investors, LLC since 1999. Formerly Vice President, Prudential Realty Group (1990–1999). |
| 12 |
| None |
Sheldon R. Flamm (59) |
| Vice President, Treasurer and Chief Compliance Officer |
| Indefinite, since 2002 |
| Chief Financial Officer and Senior Managing Director, Alpine Woods Capital Investors, LLC, since 2001; Chief Financial Officer, Saxon Woods Advisors, LLC since 1999. |
| N/A |
| None |
Oliver Sun (43) |
| Secretary |
| Indefinite, since 2002 |
| Controller of Alpine Woods Capital Investors, LLC since 1998. |
| N/A |
| None |
|
|
* | Denotes Trustees who are “interested persons” of the Trust or Fund under the 1940 Act. |
|
|
** | The term “Fund Complex” refers to the Funds in the Alpine Equity Trust, Alpine Series Trust, Alpine Income Trust, and the Alpine Global Dynamic Dividend Fund, Alpine Total Dynamic Dividend Fund, and the Alpine Global Premier Properties Fund. |
83
[THIS PAGE INTENTIONALLY LEFT BLANK]
|
|
|
| TRUSTEES | |
| Samuel A. Lieber | |
| Laurence B. Ashkin | |
| H. Guy Leibler | |
| Jeffrey E. Wacksman | |
|
| |
| CUSTODIAN | |
| U.S. Bank, N.A. | |
| 1555 N. Rivercenter Dr. | |
| Suite 302 | |
| Milwaukee, WI 53212 | |
|
| |
| SUB-CUSTODIAN | |
| The Bank of New York | |
| One Wall Street | |
| New York, NY 10286 | |
|
| |
| INDEPENDENT REGISTERED | |
| PUBLIC ACCOUNTING FIRM | |
Deloitte &Touche LLP | ||
555 East Wells Street | ||
Milwaukee, WI 53202 | ||
| ||
INVESTOR INFORMATION | DISTRIBUTOR | |
1(888)785.5578 | Quasar Distributors, LLC | |
www.alpinefunds.com | 615 East Michigan Street | |
| Milwaukee, WI 53202 | |
|
| |
| INVESTMENT ADVISER | |
| Alpine Woods Capital Investors, LLC | |
| 2500 Westchester Avenue Suite 215 | |
| Purchase, NY 10577 | |
|
| |
| TRANSFER AGENT & | |
| ADMINISTRATOR | |
| US Bancorp Fund Services, LLC | |
| 615 East Michigan Street | |
| Milwaukee, WI 53202 | |
|
| |
| FUND COUNSEL | |
| Blank Rome LLP | |
| The Chrysler Building | |
| 405 Lexington Avenue | |
This material must be preceded | New York, NY 10174 | |
|
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s board of [trustees/directors] has determined that there is at least one audit committee financial expert serving on its audit committee. Laurence Ashkin is the “audit committee financial expert” and is considered to be “independent” as each term is defined in Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an 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. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. “Other services” provided by the principal accountant were not applicable. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
FYE 10/31/2007 | FYE 10/31/2006 | |
Audit Fees | $27,000 | $20,394 |
Audit-Related Fees | 0 | 0 |
Tax Fees | $4,748 | $2,587 |
All Other Fees | 0 | 0 |
The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant. All of the principal accountant’s hours spent on auditing the registrant’s financial statements were attributed to work performed by full-time permanent employees of the principal accountant.
2
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Schedule of Investments.
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) | The Registrant’s President and Treasurer have reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a- 3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the 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) Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Filed herewith |
3
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | |
(b) | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. |
4
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) | Alpine Income Trust | ||
By (Signature and Title) | /s/ Samuel A. Lieber | ||
Samuel A. Lieber, President | |||
Date | 1/7/08 |
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/ Samuel A. Lieber | ||
Samuel A. Lieber, President | |||
Date | 1/7/08 | ||
By (Signature and Title)* | /s/ Sheldon Flamm | ||
Sheldon Flamm, Treasurer | |||
Date | 1/7/08 |
* Print the name and title of each signing officer under his or her signature.
5