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: 811-21335
Exact name of registrant as specified in charter:
Optimum Fund Trust
Address of principal executive offices:
2005 Market Street
Philadelphia, PA 19103
Name and address of agent for service:
David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103
Registrant’s telephone number, including area code: (800) 523-1918
Date of fiscal year end: March 31
Date of reporting period: March 31, 2008
Item 1. Reports to Stockholders
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Optimum Fund Trust | ||
May 30, 2008 | ||
This brochure accompanies an annual report for the information of Optimum Fund Trust shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Optimum Fund Trust. You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the Funds. Prospectuses for Optimum Fund Trust are available from your financial advisor, online at www.optimummutualfunds.com, or by phone at 800 914-0278. Please read the prospectus carefully before you invest or send money. The figures in the annual report for Optimum Fund Trust represent past results, which are not a guarantee of future results. The return and principal value of an investment in a Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. | ||
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Optimum Fixed Income Fund | |||
Optimum International Fund | |||
Optimum Large Cap Growth Fund | |||
Optimum Large Cap Value Fund | |||
Optimum Small-Mid Cap Growth Fund | |||
(Formerly Optimum Small Cap Growth Fund) | |||
Optimum Small-Mid Cap Value Fund | |||
(Formerly Optimum Small Cap Value Fund) | |||
Annual Report | |||
March 31, 2008 | |||
Table of contents
> | Portfolio management review | |||
Optimum Fixed Income Fund | 1 | |||
Optimum International Fund | 3 | |||
Optimum Large Cap Growth Fund | 5 | |||
Optimum Large Cap Value Fund | 7 | |||
Optimum Small-Mid Cap Growth Fund | 10 | |||
Optimum Small-Mid Cap Value Fund | 13 | |||
> | Performance summary | |||
Optimum Fixed Income Fund | 16 | |||
Optimum International Fund | 19 | |||
Optimum Large Cap Growth Fund | 21 | |||
Optimum Large Cap Value Fund | 23 | |||
Optimum Small-Mid Cap Growth Fund | 25 | |||
Optimum Small-Mid Cap Value Fund | 28 | |||
> | Disclosure of Fund expenses | 31 | ||
> | Sector/Country allocations, | |||
credit quality breakdown and top 10 holdings | 33 | |||
> | Financial statements | |||
Statements of net assets | 37 | |||
Statements of assets and liabilities | 79 | |||
Statements of operations | 80 | |||
Statements of changes in net assets | 81 | |||
Financial highlights | 84 | |||
Notes to financial statements | 108 | |||
> | Report of independent | |||
registered public accounting firm | 120 | |||
> | Board of trustees and officers addendum | 121 | ||
> | About the organization | 123 |
The views expressed in this report are as of March 31, 2008 and are subject to change at any time based on market or other conditions. The portfolio is actively managed and current holdings may differ.
Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.
Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management
Business Trust, which is a registered investment advisor.
© 2008 Delaware Distributors, L.P.
Portfolio management review
Optimum Fixed Income Fund
April 8, 2008
Advisor
Delaware Management Company (DMC)
Sub-advisor
Aberdeen Asset Management Inc. (AAMI)
Optimum Fixed Income Fund seeks a high level of income and may also seek growth of capital. The Fund’s advisor, DMC, manages one portion of the Fund. DMC has selected AAMI to serve as the Fund’s sub-advisor, managing another portion of the Fund’s assets.
DMC and AAMI are responsible for the day-to-day investment management of a portion of the Fund’s assets. Each company manages its portion of the Fund based on its own, unique investment strategy and style. For more information on the investment approach of the advisor and sub-advisor, please refer to the Fund’s prospectus.
In managing its portion of the Fund’s assets, DMC allocates investments principally among four sectors of the fixed income markets:
- U.S. investment grade
- U.S. high yield
- International developed
- Emerging
The strategy employed by AAMI is based on an investment philosophy that the best way to consistently add value is through a strictly bottom-up approach that capitalizes on the inefficiencies inherent in the bond market. As a result, the sub-advisor focuses its efforts on a disciplined process of individual security selection and avoids such techniques as interest rate forecasting.
Optimum Fixed Income Fund outpaced its benchmark, returning +3.78% at net asset value and -0.92% at maximum offer price for the fiscal year ended March 31, 2008 (both figures reflect performance for Class A shares with all distributions reinvested). By comparison, the Fund’s benchmark — the Lehman Brothers U.S. Aggregate Index — returned +2.17%. For complete annualized performance, please see the table on page 16.
Fixed income markets had enjoyed a relatively positive, low-volatility environment in recent prior years. That environment continued early in the period, but quickly worsened as problems in the housing market related to subprime mortgages triggered a broad market contagion. Credit markets, driven by a loss of confidence in the value of many types of debt collateral and the relevance of the ratings on that debt, essentially seized up until central banks stepped in to provide sufficient sources of liquidity. Credit spreads — or the difference in yield between bonds of varying credit qualities — widened significantly, and no single sector was exempt from extreme volatility. The ensuing lack of liquidity caused a severe imbalance in the bond market, and a flight to quality that caused most sectors of the market to underperform Treasurys during the period.
The Federal Reserve took dramatic steps in an attempt to restore liquidity to the markets. It lowered the fed funds rate by a total of three percentage points (most of it late in the period) and, in a rather remarkable shift from its normal operations, extended liquidity to Wall Street dealers as well as banks, and arranged the sale of Bear Stearns to J.P. Morgan.
AAMI
What factors influenced performance in your portion of the Fund?
We attempted to remain true to our process of assessing relative valuations during what was a trying period for the fixed income markets. Despite the resulting short-term performance volatility throughout the year, we were confident that steadfastness to our process would be rewarded over time.
What influenced performance (both positive and negative) in your portion of the Fund?
In lieu of holding an agency’s mortgage-backed securities (MBS) and Treasurys, the Fund maintained a large, off-index allocation to non-agency prime, AAA-rated hybrid adjustable-rate mortgages (ARMs). Unfortunately, these credits significantly underperformed due to illiquidity and credit quality concerns, and they affected Fund returns negatively. However, our decision to purchase only
The views expressed are current as of the date of this report and are subject to change.
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Portfolio management review
Optimum Fixed Income Fund
super-senior high-quality (AAA-rated) bonds, which have twice the credit enhancement of the standard AAA, helped mitigate the ARMs’ negative impact on the portfolio.
Commercial mortgage-backed securities (CMBS) also detracted from performance, as spreads widened dramatically during the period; again, deleveraging was the culprit. Fundamentals in the commercial real estate market weakened, as expected. However, we believe that the fundamental backdrop of most commercial property markets entering this downturn was very healthy.
As such, our strategy was to opportunistically add to higher-quality CMBS. We believe that these bonds face limited risk of loss or downgrade, and we believed they would ultimately lead other bonds when the recovery eventually took hold. In the interim, though, we expected volatility to continue. Relatively small exposure to BBB-rated CMBS issues, which were trading at distressed levels, also had a large negative impact on relative returns. Our strategy in the sector has been to upgrade quality.
Among corporates, an underweight position within the industrials sector added value. However, the Fund’s overweight versus the benchmark to financials was a detractor, as this sector significantly underperformed the corporate market in general. These companies felt the effects of massive subprime-related write-downs, balance sheet constraints, and greater transparency as to the full extent of their subprime exposure. Further, we held hybrid capital securities that significantly underperformed the financial sector, as this exposure was lower in the capital structure and thus more exposed to weakness in the financial sector.
Rather than succumb to the inertia of waiting for the crisis to abate, we actively reevaluated existing holdings against various new opportunities, and slowly repositioned portions of the portfolio with eventual market recovery in mind.
DMC
What factors influenced performance in your portion of the Fund?
The portion of Optimum Fixed Income Fund managed by Delaware Management Company employs a diversified investment strategy. We invest the core of the assets under our management in domestic investment grade securities, and then strategically allocate to additional fixed income markets including domestic high yield bonds, as well as established and emerging international markets.
As the fiscal year began, economic data seemed to support the prospects for solid growth in the United States. The volatility soon to be experienced in fixed income markets would be caused primarily by the already brewing troubles in the general subprime and credit markets as well as inflationary concerns. Early in the fiscal year, however, our positions in riskier asset classes such as high yield and emerging market bonds remained resilient.
Early in 2007, however, the DMC fixed income portfolio management team became concerned that subprime contagion would ultimately create stress for all financial markets, and potentially for economic fundamentals. As a result, we began to upgrade portfolio quality and improve liquidity. Much of the year was spent attempting to lighten the portfolio of riskier holdings. Although we remained underweight the index in Treasurys, we placed a greater emphasis on both Treasurys and agency bonds, and moved our portion of the portfolio up-in-duration. Duration measures a fixed income investment’s price sensitivity to interest rate changes; in this case, our longer duration contributed to performance within our portion of the Fund because interest rates declined. Among corporate bonds, we reallocated the portfolio to defensive and liquid sectors, such as consumer non-cyclicals, energy, electric utility, natural gas, communications, and healthcare.
Portfolio returns were hurt in several areas. Our mandate to invest in the plus sectors of the fixed income markets, for example, detracted from portfolio performance during the fiscal year as many investors fled riskier investments for the safety of Treasurys and Treasury inflation-protected securities (TIPS). Although both emerging markets and high yield investments contributed positively to returns early during the year, they gave up much of their gains when conditions in the credit markets grew tighter and more volatile and the fixed income markets declined.
2
Optimum International Fund
April 8, 2008
Advisor
Delaware Management Company (DMC)
Sub-advisors
AllianceBernstein L.P. (Alliance)
Mondrian Investment Partners Ltd. (Mondrian)
Optimum International Fund seeks long-term growth of capital and may also seek income. The Fund’s advisor, Delaware Management Company, has chosen two sub-advisors, and each is responsible for day-to-day investment management of its portion of the Fund’s assets. Each sub-advisor selects investments for its portion of the Fund based on its own investment style and strategy, which are generally intended to complement those of the other sub-advisors. For more information on the investment approach of the sub-advisors, please see the Fund’s prospectus.
International equity markets started the fiscal year in a positive way, continuing to rally on the prospects of strong economic growth in April of 2007. However, by July, fears that turmoil in the credit markets would spill over into the real economy caused equities to slump and many investors to seek the safe haven of government debt. Fear and volatility increased following the summer’s credit rout and the subsequent fallout. Despite multiple interventions by central banks around the world to calm investors, equities continued to decline into the first quarter of 2008.
Overall, Optimum International Fund returned -3.96% at net asset value and -9.51% at maximum offer price for the fiscal year ended March 31, 2008 (both figures reflect performance for Class A shares with distributions reinvested). By comparison the MSCI EAFE Index (net), the Fund’s benchmark, returned -2.7% in U.S. dollar terms for the same period. The benchmark returned -14.8% in local currency terms. For complete annualized performance for the Fund, please see the table on page 19.
Currency movements were very strong during this period as the U.S. dollar was weak. The euro rose by 19.0%, the Swiss franc 23.4%, the Japanese yen by 18.6%, and the Australian dollar 13.0% (source: FactSet).
MSCI Europe, as a region, rose by 0.2% in U.S. dollar terms for the year ended March 31, 2008, bolstered somewhat by the euro’s rise. Some smaller markets were positive even in local terms for the same period. For example, Finland rose by 20.5% in local currency terms, helped by strong results from the index heavyweight Nokia. Norway was negative in local currency terms, but up by 9.9% in U.S. dollar terms. An oil-dominated economy and the large weighting of energy-related stocks in its market helped the Norwegian market a great deal. Germany was by far the strongest of the larger European markets, up 11.7% following the unexpected resilience of its export sector and the increasing approval rating of its chancellor, Angela Merkel. (All regional and country returns based on MSCI indices.)
Other large European markets were not strong during the period. France rose slightly in U.S. dollars and fell on a euro basis. Switzerland rose by a similar margin but fell in local terms as its banking sector saw sustained weakness. The United Kingdom fell modestly, and although sterling’s rise was slim, the market ended the 12-month period down in U.S. dollar terms.
For the year ended March 31, 2008, MSCI Pacific fell by 8.9% in U.S. dollar terms but fell by 21.2% in local terms. Japan bore the brunt of much of this weakness. The yen rose, and the Japanese market ended the period down in U.S. dollar terms. Hong Kong was a strong market, doing well as a result of economic growth in China and falling U.S. interest rates (the Hong Kong dollar is pegged to the U.S. dollar). The index ended the 12-month period up 13.9%. (Source: FactSet.)
Alliance
What was your approach to the volatile market conditions?
With financials making up the largest segment of the portfolio, assessing the impact of the credit crisis was naturally a top research priority. We constantly monitored our portfolio positions and spent considerable time stress-testing the ability of our holdings’ balance sheets to withstand credit losses, which began with residential
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Portfolio management review
Optimum International Fund
mortgages but then threatened to include commercial real estate, credit cards, auto loans, and other assets.
Although we anticipated that there was potential for further losses in each category, we were confident at period end that our exposure to the sector reflected a proper balance between return potential and risks. Indeed, we added to holdings where our research detected compelling value opportunities.
What sectors and holdings contributed to performance in your portion of the Fund?
The Fund’s overweight position versus the benchmark in the materials and energy sectors contributed to returns. Energy stocks benefited from a continued climb in crude oil prices, while materials stocks benefited from strong demand. The top contributors to performance included Petrobras and Xstrata. Brazilian energy firm Petrobras posted strong returns for the fourth quarter, due largely to buoyant oil prices and the announcement that there would be significant additions to reserves from existing oilfields. U.K.-based miner Xstrata continued to benefit from a strong demand environment and hope for industry consolidation.
What sectors and holdings detracted from performance in your portion of the Fund?
An underweight position in the consumer staples sector detracted from performance, as did an overweight position to the finance sector. The defensive nature of the consumer staples sector allowed it to outperform others during the period. The finance sector suffered heavy losses. Write-offs by investment banks and financial firms mounted as banks were forced to write down mortgage-related assets to market values that assumed catastrophic losses. Financial stocks dominated the list of detractors from our performance, including U.K. mortgage lender HBOS and Japanese leasing firm Orix. These stocks were hit by concerns about rising credit losses. While very aware of near-term risks, we believed that these holdings were well-positioned to generate strong performance over time, as sentiment toward financial stocks becomes more balanced and investors once again consider longer-term fundamental strengths.
Mondrian
How would you describe sector performance during the period?
Sector performance was quite polarized. On the whole, more cyclical sectors such as information technology and industrials ended the year down in both local and U.S. dollar terms. The more defensive sectors such as utilities and consumer staples were among the strongest, each up more than 10%. The strongest sector, however, was materials, which has traditionally been seen as a cyclical sector. This sector did well as commodity prices continued to rise, as demand soared from emerging markets such as China and India. The sector ended the period up 15.1% in U.S. dollar terms.
What factors contributed to performance?
Country allocation was an extremely strong contributor to relative return. Although our contribution to performance from stock selection during the period was neutral overall, it was strong in the Asia-Pacific region. Our underweight versus the index in Japan and our overweight positioning in Spain and Australia were helpful versus the benchmark. Also beneficial was our underweight in Switzerland and non-EAFE positions in Taiwan and South Africa. The natural gas company BG Group, a U.K. stock, did particularly well, rising 62.4% during the fiscal year.
What factors detracted from performance?
Currency positioning held back returns, as did our underweight position in the outperforming German market. Some of our financial stocks saw a sharp decline in price as the effects of the credit crisis were felt across the sector. One U.K. financial stock, HBOS, declined by 41.1% over the year as fallout from the Northern Rock debacle and concerns over wholesale funding hit the stock hard. We continued to hold HBOS in the portfolio because we believe it offers long-term value.
4
Optimum Large Cap Growth Fund
April 8, 2008
Advisor
Delaware Management Company (DMC)
Sub-advisors
Marsico Capital Management LLC (Marsico Capital)
T. Rowe Price Associates Inc. (T. Rowe Price)
Optimum Large Cap Growth Fund seeks long-term growth of capital. The Fund’s advisor, Delaware Management Company, has chosen two sub-advisors, each of whom is responsible for the day-to-day investment management of a portion of the Fund’s assets. Each sub-advisor selects investments for its portion of the Fund based on its own investment style and strategy, which are generally intended to complement those of the other sub-advisors.
In managing its portion of the Fund’s assets, T. Rowe Price mostly seeks investments in companies that have the ability to pay increasing dividends through strong cash flow. In managing its portion of the Fund’s assets, Marsico Capital uses a growth-oriented approach that combines “top down” macroeconomic analysis with “bottom up” stock selection. For more information on the investment approach of the sub-advisors, please see the Fund’s prospectus.
Equities were beset by a growing malaise that encompassed (but was not limited to) mortgage finance problems, credit market pressures, major downdrafts in the U.S. housing market, sharply higher oil prices, and growing concerns about the potential for a significant economic slowdown both in the United States and globally. Stock prices were volatile during the fiscal period, reacting to a variety of rapidly unfolding news developments, and generally moved lower for the period.
The Russell 1000® Growth Index recorded weak returns for the period, led by rising demand in commodity sectors. At an economic sector level, performance was mixed. Six of the 10 global industry classification standard sectors of the Russell 1000 Growth Index had positive returns. Materials, energy, and consumer staples were the best-performing sectors for the 12-month period with gains of more than 10%. The weakest performing sectors were telecommunication services, consumer discretionary, and financials. In terms of investment style, large-capitalization growth stocks, as represented by the Russell 1000 Growth Index, outperformed value stocks, as represented by the Russell 1000® Value Index, by more than 9% during the 12-month period.
Optimum Large Cap Growth Fund underperformed its benchmark, the Russell 1000 Growth Index, for the year ended March 31, 2008. The Fund had a total return of -3.86% at net asset value and - -9.38% at its maximum offer price. Both figures reflect performance for Class A shares with all distributions reinvested. For the same period, the Russell 1000 Growth Index returned -0.75%. For complete annualized returns of the Fund, please see page 21.
The sections below provide additional information about the portion of the Fund managed by each sub-advisor.
Marsico Capital
What factors affected the performance in your portion of the Fund positively?
Stocks in the telecommunication services sector were a positive contributor to performance during the period. China-based wireless phone provider China Mobile and Latin America–based America Movil S.A.B. de C.V. posted strong returns as subscriber growth continued in a number of the emerging markets they serve.
Another measure of performance came from the materials sector. Agricultural chemicals manufacturer Monsanto posted a return of approximately 105% for the fiscal year. Monsanto benefited from growth in its corn seed business and improved revenues for its Roundup chemical product. An overweight posture in the materials sector versus the benchmark index also benefited performance.
Various individual positions also performed well, including MasterCard, oil services provider Schlumberger, and transportation company Union Pacific.
Our stocks in the healthcare sector performed poorly. However, our lesser weighting compared to the index in this weak-performing sector proved beneficial to the Fund when comparing overall performance results to the benchmark index.
(continues) 5
Portfolio management review
Optimum Large Cap Growth Fund
What factors affected the performance in your portion of the Fund negatively?
Stock selection itself within the healthcare sector was the largest performance detractor for the portfolio during the year. Healthcare services provider UnitedHealth Group and pharmaceutical company Merck declined sharply during the reporting period. As one of the portfolio’s largest individual holdings, UnitedHealth Group had a material, negative effect on performance.
For much of the year, the portfolio maintained an overweight position in the financials sector, an area of weak performance for the benchmark index. This positioning hurt performance results for the period. In addition, price declines in financials, including Lehman Brothers Holdings and Fannie Mae, detracted from performance. (Lehman Brothers Holdings and Fannie Mae were not held in the portfolio as of March 31, 2008.)
An overweight position in the poorly performing telecommunication services and consumer discretionary sectors hurt performance, as did other individual positions, including Comcast, Microsoft, and Google. (Comcast and Microsoft were not held in the portfolio as of March 31, 2008.)
As of period-end, Marsico maintained positions in UnitedHealth Group, Merck, and Google as the manager believed the companies offered reasonable valuations in the context of internally-projected growth rates.
T. Rowe Price
What factors influenced performance in a positive way?
Stock selection resulted in the outperformance of our telecommunication services holdings, offsetting our considerable overweight to the sector versus the benchmark. Non-U.S. wireless services companies led the way. Rogers Communications, a Canadian firm, remains a strong contributor with market share gains, higher average user revenues, and solid free cash flow that is being used to repurchase shares. We continued to overweight this sector, focusing on wireless services providers in countries with relatively low penetration, and in tower companies in North America.
Outperformance of the benchmark within the materials sector was driven by chemicals stocks, and stocks in the metals and mining industries. BHP Billiton, a diversified natural resources company, benefited from rising commodity prices and increasing materials demand from China. The portfolio was overweighted to this sector at year end, as we added to holdings and initiated positions in both Praxair, the largest industrial gases company in the Americas and the international mining company Kinross Gold.
What factors influenced performance in a negative way?
Financials was the portfolio’s worst-performing sector over the 12 months, as we suffered from a heavy weighting to this deeply troubled sector of the economy, and our holdings fared worse than the benchmark constituents. Weakness was notable among diversified financial services holdings. Citigroup was hit by higher-than-expected write-downs of subprime loans and related concerns over the extent of restructuring. Commercial banks also detracted, as shares of Anglo Irish Bank declined on weakness in commercial real estate. Both stocks were eliminated from the portfolio. We believe there were good buying opportunities in the sector, based on price pullbacks, particularly in the capital markets group.
Stock selection weighed down the performance of information technology, the portfolio’s largest sector. Stocks in the semiconductors and semiconductor services industry were a primary reason for relative underperformance. Marvell Technology Group, a leader in storage, communications, and consumer silicon solutions, slid on pinched margins that were a result of increasing operating costs. However, fourth-quarter 2007 sales and demand trends are promising, and we believe operating leverage should continue to accelerate for the firm. Not owning resurgent IBM also kept us from maintaining pace with the benchmark’s technology grouping.
6
Optimum Large Cap Value Fund
April 8, 2008
Advisor
Delaware Management Company (DMC)
Sub-advisors
Massachusetts Financial Services Company (MFS)
TCW Investment Management Company (TCW)
Optimum Large Cap Value Fund invests primarily in large-capitalization companies to seek long-term growth of capital, and may also seek income. The Fund advisor, Delaware Management Company, chose two sub-advisors to manage the Fund’s assets. Each is responsible for day-to-day investment management of a portion of the Fund’s assets and selects investments for its portion based on its own investment style and strategy, which are generally intended to complement that of the other sub-advisor for the Fund.
MFS focuses on investing the Fund’s assets in the stock of companies that it believes are undervalued compared to their perceived worth (value companies). Value companies tend to have stock prices that are low relative to their earnings, dividends, assets, or other financial measures. TCW uses a highly disciplined, analytically driven investment process that tries to generate capital appreciation as well as dividends that provide income consistent with prudent investment management. For more information on the investment approach of the sub-advisors, please refer to the Fund’s prospectus.
The U.S. economy and financial markets experienced deterioration and heightened volatility over the reporting period. Woes in the financial sector weighed on the markets starting in June and July of 2007 as troubles at a Bear Stearns hedge fund came to light. Meanwhile, mortgage lender Countrywide reported disappointing earnings and was purchased by Bank of America. Credit markets weakened significantly in the summer months and became less liquid world-wide, affecting short- and longer-term asset-backed paper and eventually auction rate securities. Other financial companies — regardless of their type of business— fell on the news, as investors struggled to calculate spillover damage.
Late in the reporting period, the U.S. Federal Reserve began an aggressive rate-cutting campaign, while the U.S. federal government moved quickly to design a modest fiscal stimulus package to support the weakening economy. The crisis among financials seemed to culminate with the March 2008 near-failure of the formerly prestigious Bear Stearns. It was announced that J.P. Morgan, with the Federal Reserve’s backing, agreed to bail out the company.
Stocks turned in a miserable quarter to kick off 2008, and by the end of the reporting period, yields and credit spreads in the bond market implied expectations of further economic weakening, as well as continued rate cuts by many global central banks.
Overall, Optimum Large Cap Value Fund outperformed its benchmark, the Russell 1000® Value Index, for the year ended March 31, 2008. The Fund had a total return of -6.80% at net asset value and -12.18% at its maximum offer price. Both figures reflect performance for Class A shares with all distributions reinvested. For the same period, the Russell 1000 Value Index fell 9.99%. For complete annualized returns of the Fund, please see page 23.
MFS
What is your approach to volatility in the marketplace?
We do not change our investment process or philosophy based on market conditions. Our disciplined process, which is focused on high-quality companies trading at attractive valuations, has been consistent since the inception of our portfolio. We believe that focusing on bottom-up fundamental characteristics enables us to find good long-term investment opportunities in a variety of different market environments.
What factors influenced the Fund’s performance in a positive way?
A combination of stock selection and an underweighted position in the financial services sector boosted performance relative to the Russell 1000 Value Index. Not holding poor-performing financial services firm Wachovia and insurance company American International Group in our portion of the Fund had a positive impact on relative results.
Aided by strong security selection, the technology sector was another positive area of performance relative to the index. Stock selection and an overweighted position in the consumer staples sector also bolstered relative returns.
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Portfolio management review
Optimum Large Cap Value Fund
Tobacco company Altria Group and global food company Nestlé were among the Fund’s top performers. Individual securities in other sectors that also helped relative results included integrated oil and gas producer Hess, defense contractor Lockheed Martin, and athletic shoes and apparel manufacturer Nike.
What factors influenced the Fund’s performance in a negative way?
Stock selection in the healthcare sector held back relative performance. Health insurer WellPoint was among the Fund’s top detractors for the reporting period.
Stocks in other sectors that hurt relative results included investment management and banking firm UBS, department stores operator Macy’s, and mortgage financer Fannie Mae. Despite these setbacks, we continued to hold Macy’s and UBS. We believed that Macy’s represented a good value based on standard valuation metrics and its potential economies of scale as a result of its integration of May’s department stores. Regarding UBS, we believed it was a leading global wealth manager with very long-term assets and high barriers to entry.
The Fund’s underweighted positions in diversified industrial conglomerate General Electric, integrated oil and gas company Exxon Mobil, and integrated oil company Chevron also detracted from relative performance. We sold Fannie Mae and General Electric positions from our portion of the Fund during the reporting period as we found more compelling investment opportunities elsewhere.
TCW
How did the weak market environment you encountered affect your investment approach?
During the period under review, large-cap growth stocks significantly outperformed large-cap value stocks, with the Russell 1000® Growth Index returning -0.75% versus a return of -9.99% for the Russell 1000 Value Index. This trend of value underperforming growth permeated the second half of 2007 and is typically difficult for our dividend-focused investment style, which seeks “value poised for growth.” However, even in difficult markets, we believe it is important to adhere to our time-tested discipline.
There has been no change in our investment philosophy and process, which is to select securities based on fundamental stock selection discipline rather than economic trends. In fact, we believe that increased volatility has presented great opportunities that fit within our parameters. Consequently, we have attempted to take advantage by selling at our upside price targets and finding down-and-out stocks.
What sectors or holdings contributed to Fund performance?
The portfolio benefited from its overweighting in the materials sector, which was one of the better-performing sectors in the benchmark index. Our underweight in healthcare, which was an underperforming sector, likewise aided performance when comparing returns to the benchmark.
Two larger contributors to overall performance, and two of the larger positions in the portfolio, were BCE and IBM. BCE is a leading telecommunications provider in Canada, with national wireless and wireline operations in eastern Canada. During the summer, the Ontario Teachers’ Pension Plan announced that it wanted to take the company private. IBM is the largest provider of technology hardware and services and a leading-edge manufacturer of semiconductor products, which attracted the attention of opportunistic investors during the year.
What sectors or holdings detracted from Fund performance?
With crude oil rising to more than $100 per barrel and even reaching $110 at one point in March, it is not surprising that the energy sector was by far the best-performing sector over the fiscal year. Our underweighting in that sector hampered performance. Our large overweighting in telecommunications hurt performance, as it was an underperforming sector. Fannie Mae and Qwest Communications were the biggest performance detractors over the period, although both stocks were performance stalwarts in the portfolio before underperforming late in 2007. Fannie Mae remains a top holding of our portion of Optimum Large Cap Value Fund. Based on specific catalysts of restructuring after the prior accounting issues and new management’s remediation efforts to strengthen their underlying business and prudently grow their guarantee
8
business, we continued to believe in the cash flow and operating margin growth story of this company even in the midst of significant economic headwinds.
Qwest is a leading provider of telecommunication services to residents, primarily in the western U.S., and to businesses nationwide. Following the naming of a new CEO in August, investor expectations built through the fall that the company would announce a shareholder-friendly dividend policy. But the stock began to sell off moderately when management seemed to push back its dividend decision and announced a capital expenditure program that many believed would escalate into a cash flow–draining video services deployment in 2008. As a result, the stock fell. The company ultimately announced a greater-than-average dividend and capital expenditure guidance that was in line with market expectations.
As for Qwest, although the valuation and catalysts are still in place, the anticipated resignation of the chief financial officer removed a key architect of Qwest’s transformation, and we have begun to reduce the position.
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Portfolio management review
Optimum Small-Mid Cap Growth Fund
April 8, 2008
Advisor
Delaware Management Company (DMC)
Sub-advisors
Columbia Wanger Asset Management L.P. (CWAM)
Oberweis Asset Management, Inc. (Oberweis)
On Sept. 20, 2007, the Board of Trustees of Optimum Fund Trust approved a change in the market capitalization range of the securities in which Optimum Small-Mid Cap Growth Fund, formerly named Optimum Small Cap Growth Fund, primarily invests, from a focus on small-capitalization growth companies to a focus on small-capitalization and mid-capitalization growth companies. The change became effective on Jan. 1, 2008.
Optimum Small-Mid Cap Growth Fund seeks long-term growth of capital. The Fund’s advisor, Delaware Management Company, selected two sub-advisors, each of whom is responsible for the day-to-day management of a portion of the Fund’s assets. Each sub-advisor selects suitable investments for its portion of the Fund based on its own investment style and strategy. For more information on each sub-advisor’s investment approach, please refer to the Fund’s prospectus.
The Fund fell victim to the broadly negative investment environment during the year ended March 31, 2008, and underperformed its prior and current benchmarks, the Russell 2000® Growth Index and the Russell 2500™ Growth Index. For the full year, Optimum Small-Mid Cap Growth Fund returned -15.96% at net asset value and -20.80% at maximum offer price (both figures reflect performance for Class A shares with all distributions reinvested). By comparison, the Russell 2000 Growth Index fell by 8.94%, while the Russell 2500 Growth Index, lost 6.25%. For complete annualized performance, please see the table on page 25.
By the end of the fiscal year, many economists believed that the United States either was already in, or entering, a recession. Strong gains early in the fiscal year quickly eroded in the final months as investors reacted to the credit and subprime mortgage crisis, $100-plus crude oil, accelerating inflation, and a slowing job market in the United States.
The government responded decisively to the weakened economic environment by injecting massive amounts of monetary stimulus into the economy. Although monetary stimulus may not have an effect on the economy until later in 2008, stocks — as is typical — began to discount any expected recovery ahead of time. While investors cannot exactly pinpoint the bottom of the stock market in terms of time and price, many indicators support the idea that the small-cap market especially may have been close to a bottom at the end of March. Price-to-earnings valuations within the small-cap universe, for example, were significantly below the mean at period end.
On a capitalization basis, larger-cap stocks performed better than small-cap stocks during the fiscal year, with the large-cap Russell 1000® Growth Index outperforming the Russell 2000 Growth Index by more than 8%.
The sections below provide additional information about the portion of the Fund managed by each sub-advisor.
CWAM
What factors in the marketplace and elements of your strategy had a significant impact on your portion of the Fund?
As economic conditions deteriorated during the year, declines for all stocks — and small-cap stocks in particular — were steep at times. We believe that declines in the stock market, like the one witnessed during the reporting period, tend to cause much panic but also may create opportunities. We attempted to use the market’s recent dislocation to selectively purchase what we saw as well-positioned small companies suddenly trading at unexpectedly attractive prices.
10
Can you describe some areas that detracted from performance?
Within our portion of the Fund, the largest detractors from a sector standpoint were healthcare and retail. Our healthcare stocks were down 30% during the fiscal period versus a 6% decline for the benchmark. Investments in PDL Biopharma and LCA Vision were among the largest detractors versus the index. PDL Biopharma’s stock dropped by nearly 50% after executives were unsuccessful in their attempts to court buyers for the company. LCA Vision, owner of LasikPlus vision correction centers, was a victim of the consumer spending slowdown, as the number of laser eye surgery procedures fell short of expectations. LCA Vision declined by more than 60% before we sold both of these stocks during the period.
Over the fiscal year, retail stocks declined 20% within the index, and 23% within our portfolio. Retailer Chico’s FAS was hurt by warmer weather and several fashion miscues; the company’s stock declined more than 70%. Oxford Industries’ stock dropped 53% due to declining sales of its Tommy Bahama apparel line. ITT Educational, a provider of post-secondary degree programs, declined by 44%. Investors’ fear that tight credit markets could negatively impact the availability of student loans damaged ITT’s stock. We retained positions in these holdings at the end of the period because these companies displayed what we believe to be compelling fundamentals relative to their valuations.
Please describe some sectors and stocks that contributed positively to performance.
Energy and technology were the Fund’s best-performing sectors. The Fund’s energy stocks surged nearly 50% versus a gain of 14% for energy stocks as a group within the benchmark. Within this sector, Atwood Oceanics, an owner of offshore drilling rigs, was up 56% during the year, as high oil prices drove increased demand for its oil rigs. FMC Technologies logged a 63% return for the year, as increased exploration activity boosted demand for its deepwater oil processing systems. We maintained our positions in both Atwood Oceanics and FMC Technologies throughout the year.
Among technology stocks, Flir Systems, a manufacturer of infrared cameras, won several new defense department contracts during the fiscal year; its stock rose significantly. Concur Technologies, a provider of Web-enabled cost and expense management software also surged, by more than 75% for the year. We held both stocks at period end.
Oberweis
What elements of the market environment affected the investments you managed?
The investment style employed by Oberweis seeks companies with above-average growth potential based on a variety of factors, and we consistently invest in smaller-cap companies with exceptionally high earnings growth rates and higher betas. During the period, our bias toward the smallest companies in the index with the highest betas (a measure of risk, relative to the market) and highest earnings-per-share growth rates limited portfolio performance. For example, when constituents of the Russell 2000 Growth Index were ranked, we found that companies with higher betas, higher earnings-per-share growth rates, and the smallest capitalizations performed the worst.
On a sector basis, technology and healthcare accounted for more than 75% of our portfolio’s shortfall relative to the Russell 2000 Growth Index. Portfolios with a keen emphasis on rapid earnings growth, such as ours, tended to be consistently overweight in these two growth-oriented sectors.
What factors (sectors and investments) influenced the Fund in a negative way?
From a sector standpoint, the largest detractors to performance were healthcare and technology. These sectors underperformed during the fiscal year as positive market sentiment eroded and investors grew more averse to high-growth, small-cap equities. As a result of our strict, high-growth discipline, we are generally more heavily weighted in sectors such as technology, healthcare, and consumer discretionary, and have less exposure to slower growth sectors such as financial services, utilities, and producer durables.
(continues) 11
Portfolio management review
Optimum Small-Mid Cap Growth Fund
At the stock level, two of the leading detractors for the fiscal year were Omrix Biopharmaceuticals and Accuray. Omrix reported disappointing earnings during the year, and its stock declined by more than 60%. Accuray’s stock price declined 65% during the fiscal year, trading down because of concerns that hospitals would not be able to secure the financing necessary to purchase its CyberKnife radiation delivery system. Despite both stocks’ recent disappointing performance, we maintained our positions at fiscal year end. We believed in the core business strength of both companies and felt that both stocks had been oversold during the period.
Which sectors and holdings contributed positively to returns for this portion of the Fund?
The financial services and consumer staples sectors were the largest contributors to our performance. Our decision to underweight each of these sectors versus the index proved positive, as both declined during the year.
On an individual stock level, two of the top contributors for the fiscal year were aQuantive and Central European Distribution. We sold aQuantive during the year, but maintained a position in Central European Distribution. Acquired by Microsoft during the fiscal year, aQuantive returned +136%. Central European Distribution continued to generate strong earnings and revenue growth and returned +100% during the fiscal year.
12
Optimum Small-Mid Cap Value Fund
April 8, 2008
Advisor
Delaware Management Company (DMC)
Sub-advisors
Delafield Asset Management (Delafield)
Hotchkis and Wiley Capital Management, L.L.C. (H&W)
The Killen Group, Inc. (Killen)
On Sept. 20, 2007, the Board of Trustees of Optimum Fund Trust approved a change in the market capitalization range of the securities in which Optimum Small-Mid Cap Value Fund, formerly named Optimum Small Cap Value Fund, primarily invests, from a focus on small-capitalization value companies to a focus on small-capitalization and mid-capitalization value companies. The change became effective on Jan. 1, 2008.
Optimum Small-Mid Cap Value Fund seeks long-term growth of capital. Delaware Management Company, the Fund’s advisor, has selected three sub-advisors, each of whom chooses investments for its portion of the Fund based on its own investment style and strategy. For more information concerning the investment approach of the sub-advisors, please refer to the Fund’s prospectus.
Optimum Small-Mid Cap Value Fund returned - -16.34% at net asset value and returned -21.17% at maximum offer price for the fiscal year ended March 31, 2008 (both figures reflect performance for Class A shares with all distributions reinvested). By comparison, the Fund’s prior benchmark — the Russell 2000® Value Index — returned -16.88%. The new benchmark is a measure of small- and mid-cap returns, the Russell 2500™ Value Index, which lost 16.54% during the reporting period. For complete annualized performance of the Fund, please see the table on page 28.
The broad market environment during the fiscal year was challenging, to say the least. The economic and market fallout seemed to spare no sectors, as investors dealt with falling home prices, subprime mortgage failures, multibillion-dollar write-downs by banks, and a scarcity of available credit. Financial leverage — investing with borrowed funds — once coveted for return enhancement, began to frighten investors as the year progressed.
Consequently, they reevaluated the risk-and-reward relationship of virtually all securities, but most notably those of financial institutions and others related to the housing and mortgage markets.
The reassessment of risks by many investors resulted in diminished values for most equity securities and imposed stricter lending standards on most borrowers. These credit-related developments, combined with a weakening economy, led to a decline in corporate profitability, seen most acutely in the third and fourth calendar quarters of 2007.
Over the previous five years, the small-cap market performed exceptionally well, and many high-quality companies began to trade at levels that could be deemed overvalued. Recent earnings results apparently disappointed the market, causing a significant drop in the market valuations of many companies — small-cap companies, in particular. In some cases, we believe this drop has been outsized relative to how the businesses actually performed and should perform in the long term.
Delafield
What factors in the marketplace and elements of your strategy had a significant impact on your portion of the Fund?
Despite the troubles experienced in the economy and financial markets, we remained focused on our investment strategy of finding and investing in companies experiencing “special situations,” such as corporate restructurings, management changes, and changes in capital deployment, among others. Such investments historically tend to exhibit performance that more closely parallels the underlying events of the individual company, rather than the broad markets. At times this strategy can cause performance that is out of sync with the overall market, and we believe that being out of step in this case aided our portion of the Fund.
(continues) 13
Portfolio management review
Optimum Small-Mid Cap Value Fund
What contributed to positive performance in your portion of the Fund?
The fiscal year was a difficult period highlighted by significant volatility. The Fund’s higher-than-normal cash position helped shield it from the full extent of the market’s volatility.
Although our exposure to stocks in the energy sector was relatively small, individual holdings in this sector performed well. Our decision to shy away from the financials sector, which suffered due to many of the factors described above, also helped our performance relative to the benchmark.
Among individual holdings, investments in FMC Corporation and Esterline Technologies both contributed to Fund return. FMC’s stock was up considerably at fiscal year end, as Esterline’s stock also rose. Better-than-expected earnings accounted for the strong performance in both cases. We maintained our position in FMC but sold Esterline when the stock reached fair value from our perspective.
What elements of performance in your portion of the Fund had a negative effect?
We used our high cash allocation to add to stock positions in certain cases, attempting to take advantage of market weakness without disrupting the holdings in our portfolio. Unfortunately, we were early to add to certain investments, as stock prices have continued to soften. For example, Foot Locker, an athletic footwear and apparel retail chain, has been a long-time holding of the Fund. At period end, its shares were off nearly 40% for the year due to a decline in consumer spending as well as a trend toward less-expensive sneakers. We think highly of management and the company’s prospects, however, and used the downturn to add to our holdings in Foot Locker stock.
Collective Brands, another retailer, has been under pressure due to similarly weak consumer traffic patterns. The appeal in this investment revolved around the company’s valuation as well as its acquisition of Stride Rite. We believed the company had substantial cost and distribution synergies yet to be realized, and maintained a position in its stock.
H&W
What has been your view on the market’s volatility?
We believe that a nervous marketplace is an irrational marketplace, and that such a dynamic generally creates tremendous opportunity for patient investors.
For example, the credit crunch and ensuing uncertainty decimated financial stocks across the board. The market appeared to be extrapolating current circumstances far into the future. Some overly aggressive enterprises are at risk in this crisis (witness Bear Stearns), but others with replenishing income streams and balance sheets positioned to withstand the unrest appeared to be excessively penalized. We believe the ability to distinguish between these two conditions is the key to success in this battered sector. We also believe that our disciplined, fundamental research provides us with valuable insights in making this distinction and helps position our portfolio well for a market recovery.
What were the negative factors that affected your investments during the period?
We maintained our exposure to consumer stocks, our largest sector, and selectively increased our position in industrial services companies, both of which hurt performance. Negative results from security selection within industrials were primarily caused by double-digit declines by Hudson Highland Group, a provider of staffing services, and Miller Industries, a manufacturer of vehicle towing and recovery equipment; both stocks detracted from Fund performance. At period end, however, we maintained a position in both of these stocks because we believed in their longer-term growth potential. An overweight versus the benchmark in the weak-performing consumer discretionary sector, and double-digit losses from our homebuilder and media stocks, also hurt performance.
14
Which sectors and stocks contributed positively to Fund returns?
Strength in the portfolio came from positive returns in the materials sector, as chemicals manufacturers Agrium and Pioneer (both of which were sold from the portfolio) posted double-digit gains during the year. Other leading contributors to performance included Warnaco Group, Foundation Coal, and Flowserve, the last of which was sold prior to the end of the fiscal year as its valuation seemed to become less compelling relative to other areas of the porfolio.
Killen
What elements of the market environment affected the investments you managed?
The growing threat of recession clouded the market environment and negatively impacted a number of cyclical companies in the portfolio. Nevertheless, we believe performance was helped by our emphasis on investing in strong companies that maintained flexibility (financially and strategically). We look for companies that are not dependent on large amounts of external funding to run their businesses in either up cycles or down cycles. This emphasis was particularly helpful during the fiscal period, when credit became difficult to obtain and yield spreads widened.
Our research process steered us away from companies that were hurt as a result of poor lending or investment decisions, as well as those reliant on short-term financing. While our performance was negatively affected by the changing credit environment, we had little exposure to companies whose values declined significantly as a result of business models that work only during good times.
What sectors or other categories of investments contributed to the performance of the Fund?
Energy and financials were two sectors with significant weightings that contributed to the Fund. Energy has been a strong performer for the past several years, as spot prices have risen for both oil and natural gas. Although we have held a sizable energy weighting for several years, we shifted the composition of our exposure from mostly exploration and production companies to more service-based companies, as these stocks tend to have more attractive valuations and are somewhat less sensitive to minor changes in raw energy prices. The main contributors within the sector during the year included Ion Geophysical and Gulf Island Fabrication, both of which we held at period end.
Financials, while weak on an absolute basis, was a sector in which our holdings helped the Fund’s relative outperformance of the benchmark. We increased our weighting in financials during the year, taking advantage of indiscriminant selling across the entire sector by many worried investors. None of our stocks in the financials sector experienced abnormally large loan losses, or significant write-downs in their bond portfolios. Steady performers in this sector included Suffolk Bancorp and FPIC Insurance. We held both stocks at period end.
What sectors or other categories of investments affected the performance of the Fund negatively?
The two sectors in the Fund that performed worst during the period were consumer discretionary and information technology. The consumer discretionary sector was weak throughout the fiscal year as fears of a recession increased; however, our performance here was particularly disappointing. It was most negatively affected by Nautilus Group, La-Z-Boy, and Kenneth Cole. These three companies, pressured by the macroeconomic environment, were further hurt by strategic problems related to having high fixed costs compared to their competition, and suffered significantly weaker results. In all cases, we determined that the problems were extensive and potentially long-lasting. As a result, we sold all three positions at various times during the fiscal year.
Information technology stocks also did not perform well due to stock-specific issues. Stocks that performed poorly included Ciber, Agilysys, and Cohu. Within this segment, we believe underperformance had less to do with fundamental, company-specific disappointments than with the market’s perceptions of the companies’ futures. We believed that all three securities represent good long-term opportunities, and we maintained our position in each.
15
Performance summary
Optimum Fixed Income Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Fixed Income Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
A rise or fall in interest rates can have a significant impact on bond prices and the net asset value (NAV) of the Fund. Funds that invest in bonds can lose their value as interest rates rise, and an investor can lose principal.
High yielding noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds. Adverse conditions may affect the issuer’s ability to pay interest and principal on these securities.
Fund performance
Average annual total returns | |||
Through March 31, 2008 | 1 year | 3 years | Lifetime |
Class A (Est. Aug. 1, 2003) | |||
Excluding sales charge | +3.78% | +4.19% | +4.71% |
Including sales charge | -0.92% | +2.60% | +3.68% |
Class B (Est. Aug. 1, 2003) | |||
Excluding sales charge | +2.99% | +3.48% | +4.03% |
Including sales charge | -0.95% | +2.77% | +3.75% |
Class C (Est. Aug. 1, 2003) | |||
Excluding sales charge | +3.11% | +3.52% | +4.05% |
Including sales charge | +2.12% | +3.52% | +4.05% |
Institutional Class (Est. Aug. 1, 2003) | +4.04% | +4.53% | +5.06% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
An expense limitation was in effect for all classes during the periods shown in the Fund performance chart above and in the Performance of a $10,000 Investment chart on page 18. Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchase and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets. Please see the prospectus for additional information on Class B purchase and sales charges.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges and are offered only to certain eligible investors.
Please see the fee table in the prospectus and speak with your financial professional for a more complete explanation of sales charges.
Management has contracted to reimburse expenses and/or waive its management fees from March 31, 2007, through Aug. 1, 2008, as disclosed in the most recent prospectus.
The Fund’s net expense ratios for Class A, B, C, and Institutional Class shares are 1.24%, 1.89%, 1.89%, and 0.89%, respectively, as disclosed in the most recent prospectus. Without the fee waiver, total operating expenses for Class A, B, C, and Institutional Class shares would have been 1.61%, 2.26%, 2.26%, and 1.26%, respectively.
The performance table above and the graph on page 18 do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
16
The Fund may be affected by prepayment risk due to holdings of mortgage-backed securities. With prepayment risk, when homeowners prepay mortgages during periods of low interest rates, the Fund may be forced to re-deploy its assets in lower-yielding securities.
If, and to the extent that, we invest in forward foreign currency contracts or use other investments to hedge against currency risks, the Fund may be subject to the special risks associated with those activities. The Fund may be affected by economic conditions, which may hinder a company’s ability to make interest and principal payments on its debt.
The Fund may be affected by declines in bond prices, which can be caused by an adverse change in interest rates, adverse economic conditions, or poor performance from specific industries or bond issuers.
Derivatives risk is the possibility that the Fund may experience a significant loss if it employs a derivatives strategy related to a security or a securities index, and that security or index moves in the opposite direction from what the portfolio manager had anticipated. Another risk of derivative transactions is the creditworthiness of the counterparty because the transaction depends on the willingness and ability of the counterparty to fulfill its contractual obligations. Derivatives may also involve additional expenses.
The Fund may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability for investors.
(continues) 17
Performance summary
Fund basics |
As of March 31, 2008 |
Fund objective |
The Fund seeks a high level of income and may also seek growth of capital. |
Total Fund net assets |
$927 million |
Number of holdings |
1,082 |
Fund start date | ||
Aug. 1, 2003 | ||
Nasdaq symbols | CUSIPs | |
Class A | OAFIX | 246118681 |
Class B | OBFIX | 246118673 |
Class C | OCFIX | 246118665 |
Institutional Class | OIFIX | 246118657 |
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2008
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2008) | |||||
Lehman Brothers U.S. Aggregate Index | $10,000 | $12,629 | ||||
Optimum Fixed Income Fund — Institutional Class shares | $10,000 | $12,591 | ||||
Optimum Fixed Income Fund — Class A shares | $9,550 | $11,839 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 4.50% front-end sales charge, and a distribution and service fee for an investment in Class A shares. Institutional Class shares are sold without a sales charge or asset-based distribution charge.
Please see page 16 for additional details on these fees.
Performance of other Fund classes will vary due to different charges and expenses.
The chart does not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
The chart also assumes $10,000 invested in the Lehman Brothers U.S. Aggregate Index as of Aug. 1, 2003. The Lehman Brothers U.S. Aggregate Index, sometimes also referred to as the Lehman Brothers Aggregate Bond Index, measures the performance of approximately 6,500 publicly issued investment grade (Baa3/BBB- or better) corporate, U.S. government, mortgage- and asset-backed securities with at least one year to maturity and at least $250 million par amount outstanding. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
18
Optimum International Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum International Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance
Average annual total returns | |||
Through March 31, 2008 | 1 year | 3 years | Lifetime |
Class A (Est. Aug. 1, 2003) | |||
Excluding sales charge | -3.96% | +12.89% | +16.00% |
Including sales charge | -9.51% | +10.69% | +14.53% |
Class B (Est. Aug. 1, 2003) | |||
Excluding sales charge | -4.59% | +12.17% | +15.24% |
Including sales charge | -8.16% | +11.43% | +14.95% |
Class C (Est. Aug. 1, 2003) | |||
Excluding sales charge | -4.59% | +12.16% | +15.26% |
Including sales charge | -5.48% | +12.16% | +15.26% |
Institutional Class (Est. Aug. 1, 2003) | -3.59% | +13.28% | +16.40% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
An expense limitation was in effect for all classes during the periods shown in the Fund performance chart above and in the Performance of a $10,000 Investment chart on the next page. Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchase and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets. Please see the prospectus for additional information on Class B purchase and sales charges.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges and are offered only to certain eligible investors.
Please see the fee table in the prospectus and speak with your financial professional for a more complete explanation of sales charges.
Management has contracted to reimburse expenses and/or waive its management fees from March 31, 2007, through Aug. 1, 2008, as disclosed in the most recent prospectus.
The Fund’s net expense ratios for Class A, B, C, and Institutional Class shares are 1.79%, 2.44%, 2.44%, and 1.44%, respectively, as described in the most recent prospectus. Without the fee waiver, total operating expenses for Class A, B, C, and Institutional Class shares would have been 1.96%, 2.61%, 2.61%, and 1.61%, respectively.
The performance table above and the graph on page 20 do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
(continues) 19
Performance summary
Foreign investments are subject to risks not ordinarily associated with domestic investments, such as currency, economic and political risks, and different accounting standards.
The Fund may be affected by economic conditions, which may hinder a company’s ability to make interest and principal payments on its debt.
Fund basics |
As of March 31, 2008 |
Fund objective |
The Fund seeks long-term growth of capital and may also seek income. |
Total Fund net assets |
$287 million |
Number of holdings |
168 |
Fund start date | ||
Aug. 1, 2003 | ||
Nasdaq symbols | CUSIPs | |
Class A | OAIEX | 246118731 |
Class B | OBIEX | 246118723 |
Class C | OCIEX | 246118715 |
Institutional Class | OIIEX | 246118699 |
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2008
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2008) | |||||
MSCI EAFE Index (net) | $10,000 | $21,586 | ||||
Optimum International Fund — Institutional Class shares | $10,000 | $20,317 | ||||
Optimum International Fund — Class A shares | $9,425 | $18,841 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge, and a distribution and service fee for an investment in Class A shares. Institutional Class shares are sold without a sales charge or asset-based distribution charge.
Please see page 19 for additional details on these fees.
Performance of other Fund classes will vary due to different charges and expenses.
The chart does not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
The chart also assumes $10,000 invested in the MSCI EAFE Index as of Aug. 1, 2003. The MSCI EAFE Index measures equity market performance across developed market countries in Europe, Australasia, and the Far East. Index “net” return approximates the minimum possible dividend reinvestment, after deduction of withholding tax at the highest possible rate. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
20
Optimum Large Cap Growth Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Large Cap Growth Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance
Average annual total returns | |||
Through March 31, 2008 | 1 year | 3 years | Lifetime |
Class A (Est. Aug. 1, 2003) | |||
Excluding sales charge | -3.86% | +5.40% | +7.15% |
Including sales charge | -9.38% | +3.34% | +5.79% |
Class B (Est. Aug. 1, 2003) | |||
Excluding sales charge | -4.56% | +4.71% | +6.45% |
Including sales charge | -8.28% | +3.87% | +6.06% |
Class C (Est. Aug. 1, 2003) | |||
Excluding sales charge | -4.56% | +4.71% | +6.45% |
Including sales charge | -5.49% | +4.71% | +6.45% |
Institutional Class (Est. Aug. 1, 2003) | -3.56% | +5.76% | +7.52% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
An expense limitation was in effect for all classes during the periods shown in the Fund performance chart above and in the Performance of a $10,000 Investment chart on the next page. Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchase and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets. Please see the prospectus for additional information on Class B purchase and sales charges.
Class C shares are sold with a contingent deferred sales charge of 1.00% redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges and are offered only to certain eligible investors.
Please see the fee table in the prospectus and speak with your financial professional for a more complete explanation of sales charges.
Management has contracted to reimburse expenses and/or waive its management fees from March 31, 2007, through Aug. 1, 2008, as disclosed in the most recent prospectus.
The Fund’s net expense ratios for Class A, B, C, and Institutional Class shares are 1.64%, 2.29%, 2.29%, and 1.29%, respectively, as described in the most recent prospectus. Without the fee waiver, total operating expenses for Class A, B, C, and Institutional Class shares would have been 1.77%, 2.42%, 2.42%, and 1.42%, respectively.
The performance table above and the graph on page 22 do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
(continues) 21
Performance summary
Fund basics |
As of March 31, 2008 |
Fund objective |
The Fund seeks long-term growth of capital. |
Total Fund net assets |
$990 million |
Number of holdings |
145 |
Fund start date | ||
Aug. 1, 2003 | ||
Nasdaq symbols | CUSIPs | |
Class A | OALGX | 246118707 |
Class B | OBLGX | 246118806 |
Class C | OCLGX | 246118889 |
Institutional Class | OILGX | 246118871 |
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2008
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2008) | |||||
Optimum Large Cap Growth Fund — Institutional Class shares | $10,000 | $14,028 | ||||
Russell 1000® Growth Index | $10,000 | $13,722 | ||||
Optimum Large Cap Growth Fund — Class A shares | $9,425 | $13,009 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge, and a distribution and service fee for an investment in Class A shares. Institutional Class shares are sold without a sales charge or asset-based distribution charge.
Please see page 21 for additional details on these fees.
Performance of other Fund classes will vary due to different charges and expenses.
The chart does not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
The chart also assumes $10,000 invested in the Russell 1000 Growth Index as of Aug. 1, 2003. The Russell 1000 Growth Index measures the performance of the large-cap segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
22
Optimum Large Cap Value Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Large Cap Value Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance | |||||
Average annual total returns | |||||
Through March 31, 2008 | 1 year | 3 years | Lifetime | ||
Class A (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -6.80% | +5.79% | +9.69% | ||
Including sales charge | -12.18% | +3.72% | +8.31% | ||
Class B (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -7.38% | +5.11% | +9.00% | ||
Including sales charge | -10.89% | +4.27% | +8.64% | ||
Class C (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -7.39% | +5.11% | +8.98% | ||
Including sales charge | -8.27% | +5.11% | +8.98% | ||
Institutional Class (Est. Aug. 1, 2003) | -6.46% | +6.17% | +10.08% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
An expense limitation was in effect for all classes during the periods shown in the Fund performance chart above and in the Performance of a $10,000 Investment chart on the next page. Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchase and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets. Please see the prospectus for additional information on Class B purchase and sales charges.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges and are offered only to certain eligible investors.
Please see the fee table in the prospectus and speak with your financial professional for a more complete explanation of sales charges.
Management has contracted to reimburse expenses and/or waive its management fees from March 31, 2007, through Aug. 1, 2008, as disclosed in the most recent prospectus.
The Fund’s net expense ratios for Class A, B, C, and Institutional Class shares are 1.54%, 2.19%, 2.19%, and 1.19%, respectively, as described in the most recent prospectus. Without the fee waiver, total operating expenses for Class A, B, C, and Institutional Class shares would have been 1.73%, 2.38%, 2.38%, and 1.38%, respectively.
The performance table above and the graph on page 24 do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
(continues) 23
Performance summary
Fund basics |
As of March 31, 2008 |
Fund objective |
The Fund seeks long-term growth of capital and may also seek income. |
Total Fund net assets |
$876 million |
Number of holdings |
133 |
Fund start date | |||
Aug. 1, 2003 | |||
Nasdaq symbols | CUSIPs | ||
Class A | OALVX | 246118863 | |
Class B | OBLVX | 246118855 | |
Class C | OCLVX | 246118848 | |
Institutional Class | OILVX | 246118830 |
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2008
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2008) | ||
Russell 1000® Value Index | $10,000 | $15,954 | |
Optimum Large Cap Value Fund — Institutional Class shares | $10,000 | $15,657 | |
Optimum Large Cap Value Fund — Class A shares | $9,425 | $14,516 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge, and a distribution and service fee for an investment in Class A shares. Institutional Class shares are sold without a sales charge or asset-based distribution charge.
Please see page 23 for additional details on these fees.
Performance of other Fund classes will vary due to different charges and expenses.
The chart does not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
The chart also assumes $10,000 invested in the Russell 1000 Value Index as of Aug. 1, 2003. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
24
Optimum Small-Mid Cap Growth Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Small-Mid Cap Growth Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance | |||||
Average annual total returns | |||||
Through March 31, 2008 | 1 year | 3 years | Lifetime | ||
Class A (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -15.96% | +0.97% | +7.86% | ||
Including sales charge | -20.80% | -1.01% | +6.49% | ||
Class B (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -16.56% | +0.29% | +7.17% | ||
Including sales charge | -19.74% | -0.57% | +6.79% | ||
Class C (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -16.56% | +0.29% | +7.17% | ||
Including sales charge | -17.36% | +0.29% | +7.17% | ||
Institutional Class (Est. Aug. 1, 2003) | -15.68% | +1.30% | +8.22% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
An expense limitation was in effect for all classes during the periods shown in the Fund performance chart above and in the Performance of a $10,000 Investment chart on page 27. Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchase and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets. Please see the prospectus for additional information on Class B purchase and sales charges.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges and are offered only to certain eligible investors.
Please see the fee table in the prospectus and speak with your financial professional for a more complete explanation of sales charges.
Management has contracted to reimburse expenses and/or waive its management fees from March 31, 2007, through Aug. 1, 2008, as disclosed in the most recent prospectus.
The Fund’s net expense ratios for Class A, B, C, and Institutional Class shares are 1.90%, 2.55%, 2.55%, and 1.55%, respectively, as disclosed in the most recent prospectus. Without the fee waiver, total operating expenses for Class A, B, C, and Institutional Class shares would have been 2.32%, 2.97%, 2.97%, and 1.97%, respectively.
The performance table above and the graph on page 27 do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
(continues) 25
Performance summary
Funds that invest in small and/or medium-sized company stocks typically involve greater risk, particularly in the short term, than those investing in larger, more established companies. Prices of growth company securities may be more volatile than other securities, particularly over the short term. The Fund may be affected by declines in stock prices, which could be caused by a drop in the overall equity market or poor performance from particular companies or industries.
26
Fund basics |
As of March 31, 2008 |
Fund objective |
The Fund seeks long-term growth of capital. |
Total Fund net assets |
$136 million |
Number of holdings |
211 |
Fund start date | ||
Aug. 1, 2003 | ||
Nasdaq symbols | CUSIPs | |
Class A | OASGX | 246118822 |
Class B | OBSGX | 246118814 |
Class C | OCSGX | 246118798 |
Institutional Class | OISGX | 246118780 |
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2008
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2008) | ||
Russell 2500™ Growth Index | $10,000 | $16,257 | |
Russell 2000® Growth Index | $10,000 | $14,572 | |
Optimum Small-Mid Cap Growth Fund — Institutional Class shares | $10,000 | $14,459 | |
Optimum Small-Mid Cap Growth Fund — Class A shares | $9,425 | $13,415 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge, and a distribution and service fee for an investment in Class A shares. Institutional Class shares are sold without a sales charge or asset-based distribution charge.
Please see page 25 for additional details on these fees.
Performance of other Fund classes will vary due to different charges and expenses.
The chart does not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
The chart also assumes $10,000 invested in the Russell 2500 Growth Index and the Russell 2000 Growth Index as of Aug. 1, 2003. The Russell 2500 Growth Index has replaced the Russell 2000 Growth Index as the Fund’s benchmark. As a result of the changes in the Fund’s investment strategy, management believes that the Russell 2500 Growth Index is a more accurate benchmark for the Fund. The Russell 2500 Growth Index measures the performance of the small- to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.
An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
(continues) 27
Performance summary
Optimum Small-Mid Cap Value Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Small-Mid Cap Value Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance | |||||
Average annual total returns | |||||
Through March 31, 2008 | 1 year | 3 years | Lifetime | ||
Class A (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -16.34% | +1.26% | +10.16% | ||
Including sales charge | -21.17% | -0.72% | +8.77% | ||
Class B (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -16.79% | +0.64% | +9.48% | ||
Including sales charge | -19.83% | -0.11% | +9.13% | ||
Class C (Est. Aug. 1, 2003) | |||||
Excluding sales charge | -16.79% | +0.64% | +9.48% | ||
Including sales charge | -17.55% | +0.64% | +9.48% | ||
Institutional Class (Est. Aug. 1, 2003) | -15.97% | +1.66% | +10.55% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
An expense limitation was in effect for all classes during the periods shown in the Fund performance chart above and in the Performance of a $10,000 Investment chart on page 30. Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchase and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets. Please see the prospectus for additional information on Class B purchase and sales charges.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges and are offered only to certain eligible investors.
Please see the fee table in the prospectus and speak with your financial professional for a more complete explanation of sales charges.
Management has contracted to reimburse expenses and/or waive its management fees from March 31, 2007, through Aug. 1, 2008, as disclosed in the most recent prospectus.
The Fund’s net expense ratios for Class A, B, C, and Institutional Class shares are 1.75%, 2.40%, 2.40%, and 1.40%, respectively, as disclosed in the most recent prospectus. Without the fee waiver, total operating expenses for Class A, B, C, and Institutional Class shares would have been 2.32%, 2.97%, 2.97%, and 1.97%, respectively.
The performance table above and the graph on page 30 do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
28
Funds that invest in small and/or medium-sized company stocks typically involve greater risk, particularly in the short term, than those investing in larger, more established companies. A value stock may not increase in price as anticipated if other investors do not share the portfolio managers’ perception of the company’s value or if the factors that would typically increase the price of the security do not occur. This Fund will be affected primarily by declines in stock prices, which can be caused by a drop in the overall equity market or poor performance in specific industries or companies.
(continues) 29
Performance summary
Fund basics |
As of March 31, 2008 |
Fund objective |
The Fund seeks long-term growth of capital. |
Total Fund net assets |
$110 million |
Number of holdings |
144 |
Fund start date | ||
Aug. 1, 2003 | ||
Nasdaq symbols | CUSIPs | |
Class A | OASVX | 246118772 |
Class B | OBSVX | 246118764 |
Class C | OCSVX | 246118756 |
Institutional Class | OISVX | 246118749 |
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2008
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2008) | ||
Russell 2500™ Value Index | $10,000 | $16,287 | |
Optimum Small-Mid Cap Value Fund — Institutional Class shares | $10,000 | $15,970 | |
Russell 2000® Value Index | $10,000 | $15,916 | |
Optimum Small-Mid Cap Value Fund — Class A shares | $9,425 | $14,809 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge, and a distribution and service fee for an investment in Class A shares. Institutional Class shares are sold without a sales charge or asset-based distribution charge.
Please see page 28 for additional details on these fees.
Performance of other Fund classes will vary due to different charges and expenses.
The chart does not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.
The chart also assumes $10,000 invested in the Russell 2500 Value Index and the Russell 2000 Value Index as of Aug. 1, 2003. The Russell 2500 Value Index has replaced the Russell 2000 Value Index as the Fund’s benchmark. As a result of the changes in the Fund’s investment strategy, management believes that the Russell 2500 Value Index is a more accurate benchmark for the Fund. The Russell 2500 Value Index measures the performance of the small- to mid-cap value segment of the U.S. equity universe. It includes those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Value Index measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.
An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
30
Disclosure of Fund expenses
For the period October 1, 2007 to March 31, 2008
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. These following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2007 to March 31, 2008.
Actual Expenses
The first section of the tables shown, “Actual Fund Return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, 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 section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of the tables shown, “Hypothetical 5% Return,” 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 is not the Funds’ actual return. 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 Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each 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. Each Fund’s expenses shown in the tables reflect fee waivers in effect. The expenses shown in each table assume reinvestment of all dividends and distributions.
*“Expenses Paid During Period” are equal to the Funds’ annualized expense ratios, multiplied by the average account value over the period, multiplied by the 183/366 (to reflect the one-half year period).
Optimum Fixed Income Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||
Beginning | Ending | Paid During | |||||
Account | Account | Annualized | Period | ||||
Value | Value | Expense | 10/1/07 to | ||||
10/1/07 | 3/31/08 | Ratio | 3/31/08 | ||||
Actual Fund Return | |||||||
Class A | $1,000.00 | $1,018.20 | 1.24% | $6.26 | |||
Class B | 1,000.00 | 1,013.80 | 1.89% | 9.52 | |||
Class C | 1,000.00 | 1,014.90 | 1.89% | 9.52 | |||
Institutional Class | 1,000.00 | 1,018.90 | 0.89% | 4.49 | |||
Hypothetical 5% Return (5% return before expenses) | |||||||
Class A | $1,000.00 | $1,018.80 | 1.24% | $6.26 | |||
Class B | 1,000.00 | 1,015.55 | 1.89% | 9.52 | |||
Class C | 1,000.00 | 1,015.55 | 1.89% | 9.52 | |||
Institutional Class | 1,000.00 | 1,020.55 | 0.89% | 4.50 |
Optimum International Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||
Beginning | Ending | Paid During | |||||
Account | Account | Annualized | Period | ||||
Value | Value | Expense | 10/1/07 to | ||||
10/1/07 | 3/31/08 | Ratio | 3/31/08 | ||||
Actual Fund Return | |||||||
Class A | $1,000.00 | $882.30 | 1.75% | $ 8.24 | |||
Class B | 1,000.00 | 879.70 | 2.40% | 11.28 | |||
Class C | 1,000.00 | 879.80 | 2.40% | 11.28 | |||
Institutional Class | 1,000.00 | 883.90 | 1.40% | 6.59 | |||
Hypothetical 5% Return (5% return before expenses) | |||||||
Class A | $1,000.00 | $1,016.25 | 1.75% | $ 8.82 | |||
Class B | 1,000.00 | 1,013.00 | 2.40% | 12.08 | |||
Class C | 1,000.00 | 1,013.00 | 2.40% | 12.08 | |||
Institutional Class | 1,000.00 | 1,018.00 | 1.40% | 7.06 |
(continues) 31
Disclosure of Fund expenses
Optimum Large Cap Growth Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||
Beginning | Ending | Paid During | |||||
Account | Account | Annualized | Period | ||||
Value | Value | Expense | 10/1/07 to | ||||
10/1/07 | 3/31/08 | Ratio | 3/31/08 | ||||
Actual Fund Return | |||||||
Class A | $1,000.00 | $859.20 | 1.59% | $ 7.39 | |||
Class B | 1,000.00 | 855.30 | 2.24% | 10.39 | |||
Class C | 1,000.00 | 856.00 | 2.24% | 10.39 | |||
Institutional Class | 1,000.00 | 860.50 | 1.24% | 5.77 | |||
Hypothetical 5% Return (5% return before expenses) | |||||||
Class A | $1,000.00 | $1,017.05 | 1.59% | $ 8.02 | |||
Class B | 1,000.00 | 1,013.80 | 2.24% | 11.28 | |||
Class C | 1,000.00 | 1,013.80 | 2.24% | 11.28 | |||
Institutional Class | 1,000.00 | 1,018.80 | 1.24% | 6.26 |
Optimum Large Cap Value Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||
Beginning | Ending | Paid During | |||||
Account | Account | Annualized | Period | ||||
Value | Value | Expense | 10/1/07 to | ||||
10/1/07 | 3/31/08 | Ratio | 3/31/08 | ||||
Actual Fund Return | |||||||
Class A | $1,000.00 | $872.50 | 1.54% | $ 7.21 | |||
Class B | 1,000.00 | 870.00 | 2.19% | 10.24 | |||
Class C | 1,000.00 | 869.90 | 2.19% | 10.24 | |||
Institutional Class | 1,000.00 | 874.50 | 1.19% | 5.58 | |||
Hypothetical 5% Return (5% return before expenses) | |||||||
Class A | $1,000.00 | $1,017.30 | 1.54% | $ 7.77 | |||
Class B | 1,000.00 | 1,014.05 | 2.19% | 11.03 | |||
Class C | 1,000.00 | 1,014.05 | 2.19% | 11.03 | |||
Institutional Class | 1,000.00 | 1,019.05 | 1.19% | 6.01 |
Optimum Small-Mid Cap Growth Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||
Beginning | Ending | Paid During | |||||
Account | Account | Annualized | Period | ||||
Value | Value | Expense | 10/1/07 to | ||||
10/1/07 | 3/31/08 | Ratio | 3/31/08 | ||||
Actual Fund Return | |||||||
Class A | $1,000.00 | $780.90 | 1.90% | $ 8.46 | |||
Class B | 1,000.00 | 778.30 | 2.55% | 11.34 | |||
Class C | 1,000.00 | 778.30 | 2.55% | 11.34 | |||
Institutional Class | 1,000.00 | 782.20 | 1.55% | 6.91 | |||
Hypothetical 5% Return (5% return before expenses) | |||||||
Class A | $1,000.00 | $1,015.50 | 1.90% | $ 9.57 | |||
Class B | 1,000.00 | 1,012.25 | 2.55% | 12.83 | |||
Class C | 1,000.00 | 1,012.25 | 2.55% | 12.83 | |||
Institutional Class | 1,000.00 | 1,017.25 | 1.55% | 7.82 |
Optimum Small-Mid Cap Value Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||
Beginning | Ending | Paid During | |||||
Account | Account | Annualized | Period | ||||
Value | Value | Expense | 10/1/07 to | ||||
10/1/07 | 3/31/08 | Ratio | 3/31/08 | ||||
Actual Fund Return | |||||||
Class A | $1,000.00 | $875.80 | 1.75% | $ 8.21 | |||
Class B | 1,000.00 | 873.60 | 2.40% | 11.24 | |||
Class C | 1,000.00 | 873.60 | 2.40% | 11.24 | |||
Institutional Class | 1,000.00 | 877.80 | 1.40% | 6.57 | |||
Hypothetical 5% Return (5% return before expenses) | |||||||
Class A | $1,000.00 | $1,016.25 | 1.75% | $ 8.82 | |||
Class B | 1,000.00 | 1,013.00 | 2.40% | 12.08 | |||
Class C | 1,000.00 | 1,013.00 | 2.40% | 12.08 | |||
Institutional Class | 1,000.00 | 1,018.00 | 1.40% | 7.06 |
32
Sector allocations and credit quality breakdown
Optimum Fixed Income Fund
As of March 31, 2008
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may also represent the investment manager or sub-adviser’s internal sector classifications which may result in the sector designations for one Fund being different than another Fund’s sector designations.
Percentage | ||
Sector | of Net Assets | |
Agency Asset-Backed Securities | 0.02% | |
Agency Collateralized Mortgage Obligations | 5.15% | |
Agency Mortgage-Backed Securities | 15.27% | |
Agency Obligations | 6.93% | |
Commercial Mortgage-Backed Securities | 8.41% | |
Convertible Bonds | 0.28% | |
Corporate Bonds | 21.97% | |
Banking | 2.81% | |
Basic Industry | 0.85% | |
Brokerage | 0.45% | |
Capital Goods | 0.83% | |
Communications | 2.70% | |
Consumer Cyclical | 1.47% | |
Consumer Non-Cyclical | 2.73% | |
Electric | 3.41% | |
Energy | 1.25% | |
Finance Companies | 1.90% | |
Insurance | 1.44% | |
Natural Gas | 0.78% | |
Real Estate | 0.22% | |
Technology | 0.52% | |
Transportation | 0.61% | |
Foreign Agencies | 1.12% | |
Municipal Bonds | 2.12% | |
Non-Agency Asset-Backed Securities | 3.26% | |
Non-Agency Collateralized Mortgage Obligations | 15.57% | |
Regional Agencies | 0.28% | |
Regional Authorities | 0.26% | |
Senior Secured Loans | 0.61% | |
Sovereign Agencies | 0.10% |
Percentage | ||
Sector | of Net Assets | |
Sovereign Debt | 7.09% | |
Supranational Banks | 1.56% | |
U.S. Treasury Obligations | 4.43% | |
Common Stock | 0.02% | |
Convertible Preferred Stock | 0.13% | |
Preferred Stock | 0.02% | |
Warrant | 0.00% | |
Repurchase Agreement | 7.05% | |
Securities Lending Collateral | 11.32% | |
Total Value of Securities | 112.97% | |
Obligation to Return Securities Lending Collateral | (11.32% | ) |
Liabilities Net of Receivables and Other Assets | (1.65% | ) |
Total Net Assets | 100.00% | |
Credit Quality Breakdown | Percentage | |
(as a % of fixed income investments) | of Net Assets | |
AAA | 62.75% | |
AA | 6.60% | |
A | 7.59% | |
BBB | 8.75% | |
BB | 8.03% | |
B | 5.77% | |
CCC | 0.44% | |
Non Rated | 0.07% | |
Total | 100.00% |
33
Country/Sector allocations
Optimum International Fund
As of March 31, 2008
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may also represent the investment manager or sub-adviser’s internal sector classifications which may result in the sector designations for one Fund being different than another Fund’s sector designations.
Percentage | ||
Country | of Net Assets | |
Common Stock | 97.84% | |
Australia | 6.28% | |
Austria | 0.41% | |
Belgium | 1.81% | |
Brazil | 0.33% | |
Canada | 1.98% | |
China | 0.08% | |
Finland | 1.38% | |
France | 12.40% | |
Germany | 9.26% | |
Hong Kong | 1.76% | |
India | 0.21% | |
Italy | 4.01% | |
Japan | 19.34% | |
Netherlands | 5.31% | |
New Zealand | 0.44% | |
Norway | 0.57% | |
Philippines | 0.10% | |
Republic of Korea | 0.70% | |
Russia | 0.16% | |
Singapore | 0.94% | |
South Africa | 0.67% | |
Spain | 4.81% | |
Sweden | 1.08% | |
Switzerland | 2.81% | |
Taiwan | 1.45% | |
Thailand | 0.10% | |
United Kingdom | 19.45% | |
Preferred Stock | 0.54% | |
Brazil | 0.39% | |
Republic of Korea | 0.15% | |
Repurchase Agreement | 0.55% | |
Securities Lending Collateral | 20.42% | |
Total Value of Securities | 119.35% | |
Obligation to Return Securities Lending Collateral | (20.42% | ) |
Receivables and Other Assets Net of Liabilities | 1.07% | |
Total Net Assets | 100.00% |
Percentage | ||
Sector | of Net Assets | |
Automobiles & Components | 6.77% | |
Banking & Finance | 19.28% | |
Capital Goods | 1.63% | |
Commercial Services | 0.99% | |
Consumer Durables & Apparel | 3.62% | |
Energy | 11.28% | |
Food & Staples Retailing | 1.29% | |
Food, Beverage & Tobacco | 5.62% | |
Insurance | 7.21% | |
Materials | 9.37% | |
Media | 1.69% | |
Pharmaceuticals & Biotechnology | 6.99% | |
Real Estate | 0.68% | |
Semiconductors | 1.44% | |
Technology Hardware & Equipment | 1.65% | |
Telecommunication Services | 10.53% | |
Transportation & Shipping | 2.01% | |
Utilities | 6.33% | |
Total | 98.38% |
34
Sector allocations and top 10 holdings
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may also represent the investment manager or sub-adviser’s internal sector classifications which may result in the sector designations for one Fund being different than another Fund’s sector designations.
Optimum Large Cap Growth Fund
As of March 31, 2008
Percentage | ||
Sector | of Net Assets | |
Common Stock | 94.66% | |
Basic Industry/Capital Goods | 10.43% | |
Business Services | 5.66% | |
Consumer Durables | 1.98% | |
Consumer Non-Durables | 9.57% | |
Consumer Services | 7.70% | |
Energy | 12.19% | |
Financials | 10.13% | |
Health Care | 12.61% | |
Technology | 21.87% | |
Transportation | 2.18% | |
Utilities | 0.34% | |
Repurchase Agreement | 5.42% | |
Securities Lending Collateral | 15.51% | |
Total Value of Securities | 115.59% | |
Obligation to Return Securities Lending Collateral | (15.51% | ) |
Liabilities Net of Receivables and Other Assets | (0.08% | ) |
Total Net Assets | 100.00% |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
Percentage | ||
Top 10 Holdings | of Net Assets | |
Google Class A | 3.05% | |
Schlumberger | 3.02% | |
CVS Caremark | 2.53% | |
America Movil Series L ADR | 2.35% | |
Monsanto | 2.20% | |
McDonald’s | 2.19% | |
General Electric | 1.96% | |
Genentech | 1.94% | |
General Dynamics | 1.78% | |
MasterCard Class A | 1.75% |
Optimum Large Cap Value Fund
As of March 31, 2008
Percentage | ||
Sector | of Net Assets | |
Common Stock | 95.70% | |
Consumer Discretionary | 9.30% | |
Consumer Staples | 10.15% | |
Energy | 10.89% | |
Financials | 19.89% | |
Health Care | 8.62% | |
Industrials | 13.50% | |
Information Technology | 7.32% | |
Materials | 6.02% | |
Telecommunications | 6.27% | |
Utilities | 3.74% | |
Repurchase Agreement | 3.98% | |
Securities Lending Collateral | 16.97% | |
Total Value of Securities | 116.65% | |
Obligation to Return Securities Lending Collateral | (16.97% | ) |
Receivables and Other Assets Net of Liabilities | 0.32% | |
Total Net Assets | 100.00% |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security.
Percentage | ||
Top 10 Holdings | of Net Assets | |
AT&T | 2.50% | |
International Business Machines | 2.35% | |
ConocoPhillips | 2.29% | |
Lockheed Martin | 2.13% | |
Chevron | 2.01% | |
DuPont (E.I.) deNemours | 1.80% | |
Pfizer | 1.66% | |
Allstate | 1.63% | |
General Electric | 1.59% | |
Exxon Mobil | 1.54% |
(continues) 35
Sector allocations and top 10 holdings
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may also represent the investment manager or sub-adviser’s internal sector classifications which may result in the sector designations for one Fund being different than another Fund’s sector designations.
Optimum Small-Mid Cap Growth Fund | |||
As of March 31, 2008 | |||
Percentage | |||
Sector | of Net Assets | ||
Common Stock² | 97.81 | % | |
Basic Industry/Capital Goods | 16.20 | % | |
Business Services | 7.20 | % | |
Consumer Durables | 3.79 | % | |
Consumer Non-Durables | 8.17 | % | |
Consumer Services | 4.61 | % | |
Energy | 8.50 | % | |
Financials | 7.50 | % | |
Health Care | 9.02 | % | |
Real Estate | 0.44 | % | |
Technology | 31.47 | % | |
Transportation | 0.91 | % | |
Warrant | 0.00 | % | |
Repurchase Agreement | 1.97 | % | |
Securities Lending Collateral | 23.41 | % | |
Total Value of Securities | 123.19 | % | |
Obligation to Return Securities Lending Collateral | (23.41 | %) | |
Receivables and Other Assets Net of Liabilities | 0.22 | % | |
Total Net Assets | 100.00 | % |
² | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security. |
Percentage | |||
Top 10 Holdings | of Net Assets | ||
FLIR Systems | 2.44 | % | |
Carrizo Oil & Gas | 2.41 | % | |
FMC Technologies | 1.76 | % | |
Concur Technologies | 1.69 | % | |
AMETEK | 1.54 | % | |
Mettler-Toledo International | 1.43 | % | |
Champion Enterprises | 1.25 | % | |
Nordson | 1.23 | % | |
Abercrombie & Fitch Class A | 1.20 | % | |
ESCO Technologies | 1.18 | % |
Optimum Small-Mid Cap Value Fund | |||
As of March 31, 2008 | |||
Percentage | |||
Sector | of Net Assets | ||
Common Stock | 91.14 | % | |
Basic Industry | 14.84 | % | |
Business Services | 9.02 | % | |
Capital Spending | 5.14 | % | |
Consumer Cyclical | 7.33 | % | |
Consumer Services | 14.15 | % | |
Consumer Staples | 0.65 | % | |
Energy | 5.45 | % | |
Financial Services | 8.68 | % | |
Health Care | 1.18 | % | |
REITs | 6.07 | % | |
Technology | 14.54 | % | |
Transportation | 2.19 | % | |
Utilities | 1.90 | % | |
Exchange Traded Fund | 0.47 | % | |
Repurchase Agreement | 7.49 | % | |
Securities Lending Collateral | 18.64 | % | |
Total Value of Securities | 117.74 | % | |
Obligation to Return Securities Lending Collateral | (18.64 | %) | |
Receivables and Other Assets Net of Liabilities | 0.90 | % | |
Total Net Assets | 100.00 | % |
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security. |
Percentage | |||
Top 10 Holdings | of Net Assets | ||
MI Developments Class A | 1.85 | % | |
Flextronics International | 1.61 | % | |
Kennametal | 1.55 | % | |
Thermo Fisher Scientific | 1.55 | % | |
Albany International | 1.52 | % | |
Great Plains Energy | 1.48 | % | |
Hercules | 1.48 | % | |
Cytec Industries | 1.46 | % | |
Ethan Allen Interiors | 1.45 | % | |
Kelly Services | 1.43 | % |
36
Statements of net assets
Optimum Fixed Income Fund
March 31, 2008
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Agency Asset-Backed Securities – 0.02% | ||||||
fFannie Mae Grantor Trust | ||||||
Series 2003-T4 2A5 | ||||||
5.407% 9/26/33 | USD | 206,656 | $ | 187,202 | ||
Total Agency Asset-Backed Securities | ||||||
(cost $205,752) | 187,202 | |||||
Agency Collateralized Mortgage Obligations – 5.15% | ||||||
Fannie Mae | ||||||
Series 1996-46 ZA | ||||||
7.50% 11/25/26 | 35,795 | 37,993 | ||||
Series 1999-19 PH | ||||||
6.00% 5/25/29 | 1,146,651 | 1,187,740 | ||||
Series 2001-14 Z | ||||||
6.00% 5/25/31 | 77,924 | 80,659 | ||||
Series 2002-90 A1 | ||||||
6.50% 6/25/42 | 22,875 | 24,440 | ||||
Series 2002-90 A2 | ||||||
6.50% 11/25/42 | 98,568 | 104,662 | ||||
Series 2003-106 WE | ||||||
4.50% 11/25/22 | 1,735,000 | 1,722,397 | ||||
Series 2003-122 AJ | ||||||
4.50% 2/25/28 | 136,181 | 136,410 | ||||
Series 2005-22 HE | ||||||
5.00% 10/25/33 | 740,000 | 720,475 | ||||
Series 2005-29 QD | ||||||
5.00% 8/25/33 | 816,000 | 793,931 | ||||
Series 2005-54 AK | ||||||
4.50% 9/25/32 | 921,845 | 914,943 | ||||
Series 2005-67 EY | ||||||
5.50% 8/25/25 | 960,000 | 976,716 | ||||
Series 2005-94 YD | ||||||
4.50% 8/25/33 | 1,480,000 | 1,415,961 | ||||
Series 2005-110 MB | ||||||
5.50% 9/25/35 | 839,447 | 871,190 | ||||
Fannie Mae Grantor Trust | ||||||
Series 1999-T2 A1 | ||||||
7.50% 1/19/39 | 34,204 | 36,067 | ||||
Series 2001-T8 A2 | ||||||
9.50% 7/25/41 | 18,005 | 20,091 | ||||
Series 2002-T4 A3 | ||||||
7.50% 12/25/41 | 120,648 | 131,418 | ||||
Series 2004-T1 1A2 | ||||||
6.50% 1/25/44 | 50,174 | 53,778 | ||||
Fannie Mae Whole Loan | ||||||
Series 2004-W9 2A1 | ||||||
6.50% 2/25/44 | 63,422 | 68,197 | ||||
Series 2004-W11 1A2 | ||||||
6.50% 5/25/44 | 180,270 | 195,777 | ||||
Series 2004-W15 1A1 | ||||||
6.00% 8/25/44 | 312,678 | 326,045 | ||||
Freddie Mac | ||||||
Series 1730 Z | ||||||
7.00% 5/15/24 | 229,693 | 247,020 | ||||
Series 2113 QE | ||||||
6.00% 11/15/27 | 7,281 | 7,321 | ||||
Series 2141 N | ||||||
5.55% 11/15/27 | 36,021 | 36,072 | ||||
Series 2165 PE | ||||||
6.00% 6/15/29 | 1,160,289 | 1,209,338 | ||||
Series 2326 ZQ | ||||||
6.50% 6/15/31 | 416,323 | 443,008 | ||||
Series 2497 BM | ||||||
5.00% 2/15/22 | 325,254 | 332,920 | ||||
Series 2504 J | ||||||
5.50% 5/15/16 | 2,187,941 | 2,230,487 | ||||
Series 2552 KB | ||||||
4.25% 6/15/27 | 83,338 | 83,427 | ||||
Series 2557 WE | ||||||
5.00% 1/15/18 | 732,415 | 750,232 | ||||
Series 2612 LJ | ||||||
4.00% 7/15/22 | 8,743 | 8,732 | ||||
Series 2622 PE | ||||||
4.50% 5/15/18 | 2,780,000 | 2,782,094 | ||||
Series 2662 MA | ||||||
4.50% 10/15/31 | 260,766 | 261,639 | ||||
Series 2755 LE | ||||||
4.00% 9/15/30 | 557,000 | 533,505 | ||||
Series 2762 LG | ||||||
5.00% 9/15/32 | 2,000,000 | 1,980,112 | ||||
Series 2802 NE | ||||||
5.00% 2/15/33 | 700,000 | 691,272 | ||||
Series 2809 DC | ||||||
4.50% 6/15/19 | 1,000,000 | 995,983 | ||||
Series 2827 TE | ||||||
5.00% 4/15/33 | 1,335,000 | 1,315,453 | ||||
Series 2840 OE | ||||||
5.00% 2/15/33 | 1,800,000 | 1,770,630 | ||||
Series 2864 PE | ||||||
5.00% 6/15/33 | 1,095,000 | 1,095,146 | ||||
Series 2869 BG | ||||||
5.00% 7/15/33 | 224,000 | 221,482 | ||||
Series 2881 TE | ||||||
5.00% 7/15/33 | 1,080,000 | 1,062,707 | ||||
Series 2889 OG | ||||||
5.00% 5/15/33 | 117,000 | 114,627 | ||||
Series 2890 PC | ||||||
5.00% 7/15/30 | 265,000 | 267,809 | ||||
Series 2890 PD | ||||||
5.00% 3/15/33 | 1,265,000 | 1,240,064 | ||||
Series 2893 PD | ||||||
5.00% 2/15/33 | 65,000 | 63,885 | ||||
Series 2915 KD | ||||||
5.00% 9/15/33 | 447,000 | 438,596 | ||||
Series 2915 KP | ||||||
5.00% 11/15/29 | 490,000 | 495,600 | ||||
Series 2938 ND | ||||||
5.00% 10/15/33 | 1,050,000 | 1,028,971 | ||||
Series 2939 PD | ||||||
5.00% 7/15/33 | 665,000 | 649,165 | ||||
Series 2941 XD | ||||||
5.00% 5/15/33 | 2,690,000 | 2,622,627 |
(continues) 37
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Agency Collateralized Mortgage Obligations (continued) | ||||||
Freddie Mac | ||||||
Series 2987 KG | ||||||
5.00% 12/15/34 | USD | 1,430,000 | $ | 1,387,657 | ||
Series 3022 MB | ||||||
5.00% 12/15/28 | 260,000 | 266,657 | ||||
Series 3063 PC | ||||||
5.00% 2/15/29 | 490,000 | 503,647 | ||||
Series 3113 QA | ||||||
5.00% 11/15/25 | 728,528 | 741,411 | ||||
*Series 3128 BC | ||||||
5.00% 10/15/27 | 2,250,000 | 2,296,092 | ||||
Series 3131 MC | ||||||
5.50% 4/15/33 | 445,000 | 456,145 | ||||
Series 3145 LN | ||||||
4.50% 10/15/34 | 1,493,828 | 1,496,764 | ||||
Series 3154 PJ | ||||||
5.50% 3/15/27 | 979,667 | 1,006,041 | ||||
Series 3173 PE | ||||||
6.00% 4/15/35 | 3,074,000 | 3,171,323 | ||||
Series 3337 PB | ||||||
5.50% 7/15/30 | 505,000 | 518,852 | ||||
Series 3344 ME | ||||||
5.50% 7/15/37 | 1,000,000 | 986,931 | ||||
wFreddie Mac Structured | ||||||
Pass Through Securities | ||||||
Series T-54 2A | ||||||
6.50% 2/25/43 | 40,031 | 41,332 | ||||
Series T-58 2A | ||||||
6.50% 9/25/43 | 22,517 | 24,214 | ||||
Total Agency Collateralized | ||||||
Mortgage Obligations | ||||||
(cost $46,980,885) | 47,695,880 | |||||
Agency Mortgage-Backed Securities – 15.27% | ||||||
Fannie Mae | ||||||
5.50% 1/1/13 | 268,777 | 271,372 | ||||
5.50% 3/1/37 | 749,982 | 748,434 | ||||
5.50% 7/1/37 | 2,032,148 | 2,027,953 | ||||
6.50% 8/1/17 | 127,190 | 132,432 | ||||
·Fannie Mae ARM | ||||||
5.052% 8/1/35 | 364,737 | 362,845 | ||||
5.124% 11/1/35 | 522,840 | 532,035 | ||||
5.967% 8/1/37 | 1,055,682 | 1,069,735 | ||||
6.057% 7/1/37 | 2,204,483 | 2,263,331 | ||||
6.969% 10/1/33 | 167,717 | 171,240 | ||||
Fannie Mae Relocation 30 yr | ||||||
5.00% 11/1/33 | 41,555 | 41,449 | ||||
5.00% 1/1/34 | 123,790 | 123,458 | ||||
5.00% 2/1/34 | 69,369 | 69,192 | ||||
5.00% 8/1/34 | 109,952 | 109,606 | ||||
5.00% 11/1/34 | 224,884 | 224,177 | ||||
5.00% 4/1/35 | 292,140 | 291,007 | ||||
5.00% 10/1/35 | 245,101 | 244,150 | ||||
5.00% 1/1/36 | 648,542 | 646,026 | ||||
Fannie Mae S.F. 15 yr | ||||||
4.50% 8/1/18 | 1,011,355 | 1,010,817 | ||||
4.50% 6/1/19 | 1,985,280 | 1,984,224 | ||||
4.50% 11/1/19 | 2,889,891 | 2,884,979 | ||||
4.50% 6/1/20 | 2,735,791 | 2,731,141 | ||||
4.50% 7/1/20 | 2,174,759 | 2,171,063 | ||||
4.50% 8/1/20 | 2,720,498 | 2,719,051 | ||||
5.00% 2/1/21 | 2,209,526 | 2,235,283 | ||||
5.00% 5/1/21 | 266,580 | 270,037 | ||||
Fannie Mae S.F. 15 yr TBA | ||||||
4.50% 4/1/23 | 2,550,000 | 2,536,454 | ||||
5.00% 4/1/23 | 3,270,000 | 3,301,166 | ||||
5.50% 4/1/23 | 2,855,000 | 2,914,330 | ||||
6.00% 4/1/23 | 2,690,000 | 2,768,599 | ||||
Fannie Mae S.F. 20 yr | ||||||
5.50% 7/1/24 | 921,197 | 937,550 | ||||
5.50% 10/1/24 | 298,333 | 303,629 | ||||
5.50% 12/1/24 | 930,162 | 946,674 | ||||
Fannie Mae S.F. 30 yr | ||||||
4.50% 8/1/33 | 511,921 | 494,796 | ||||
*4.50% 10/1/33 | 2,146,660 | 2,074,846 | ||||
5.00% 10/1/33 | 338,018 | 335,492 | ||||
5.00% 2/1/34 | 297,699 | 295,473 | ||||
5.00% 5/1/34 | 252,847 | 250,810 | ||||
5.00% 8/1/34 | 3,382,064 | 3,356,784 | ||||
5.50% 3/1/29 | 195,604 | 198,390 | ||||
5.50% 4/1/29 | 98,052 | 99,449 | ||||
5.50% 12/1/32 | 623,638 | 631,965 | ||||
5.50% 7/1/33 | 1,496,835 | 1,515,923 | ||||
5.50% 12/1/33 | 215,845 | 218,597 | ||||
*5.50% 4/1/34 | 3,538,500 | 3,584,058 | ||||
5.50% 5/1/34 | 1,013,670 | 1,026,596 | ||||
5.50% 6/1/34 | 1,159,066 | 1,172,996 | ||||
5.50% 7/1/34 | 1,945,679 | 1,969,063 | ||||
*5.50% 12/1/34 | 1,709,902 | 1,730,453 | ||||
*5.50% 2/1/35 | 5,704,260 | 5,775,835 | ||||
5.50% 9/1/36 | 3,681,130 | 3,725,371 | ||||
*5.50% 7/1/37 | 8,049,561 | 8,133,343 | ||||
5.50% 12/1/37 | 1,375,053 | 1,389,365 | ||||
6.00% 9/1/36 | 950,225 | 974,512 | ||||
6.00% 12/1/36 | 4,247,771 | 4,356,339 | ||||
*6.00% 7/1/37 | 1,957,366 | 2,006,907 | ||||
6.50% 11/1/33 | 40,212 | 41,860 | ||||
6.50% 2/1/36 | 923,698 | 961,336 | ||||
6.50% 3/1/36 | 1,550,434 | 1,607,201 | ||||
6.50% 6/1/36 | 2,165,722 | 2,245,017 | ||||
6.50% 8/1/36 | 1,281,605 | 1,328,529 | ||||
*6.50% 11/1/36 | 1,229,977 | 1,275,010 | ||||
6.50% 4/1/37 | 1,465,332 | 1,518,880 | ||||
6.50% 8/1/37 | 2,086,546 | 2,162,797 | ||||
6.50% 10/1/37 | 1,595,843 | 1,654,161 | ||||
6.50% 11/1/37 | 1,600,240 | 1,658,719 | ||||
6.50% 2/1/38 | 2,297,857 | 2,381,850 |
38
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Agency Mortgage-Backed Securities (continued) | ||||||
Fannie Mae S.F. 30 yr | ||||||
7.00% 2/1/38 | USD | 2,250,362 | $ | 2,363,860 | ||
7.00% 3/1/38 | 2,093,207 | 2,198,779 | ||||
7.50% 3/1/32 | 2,079 | 2,237 | ||||
7.50% 4/1/32 | 8,566 | 9,220 | ||||
7.50% 6/1/32 | 7,274 | 7,830 | ||||
Fannie Mae S.F. 30 yr TBA | ||||||
5.50% 4/1/38 | 1,585,000 | 1,600,107 | ||||
·Freddie Mac ARM | ||||||
5.524% 2/1/38 | 2,199,893 | 2,209,956 | ||||
5.68% 7/1/36 | 401,663 | 410,285 | ||||
5.868% 5/1/37 | 2,367,703 | 2,400,275 | ||||
6.336% 2/1/37 | 1,329,756 | 1,360,741 | ||||
6.397% 12/1/33 | 245,251 | 250,300 | ||||
7.021% 4/1/34 | 18,366 | 18,412 | ||||
Freddie Mac Relocation 30 yr | ||||||
5.00% 9/1/33 | 5,476 | 5,465 | ||||
Freddie Mac S.F. 15 yr | ||||||
4.50% 5/1/20 | 1,307,361 | 1,303,991 | ||||
5.00% 6/1/18 | 434,659 | 441,326 | ||||
Freddie Mac S.F. 20 yr | ||||||
5.50% 10/1/23 | 795,337 | 810,358 | ||||
5.50% 8/1/24 | 198,701 | 202,287 | ||||
Freddie Mac S.F. 30 yr | ||||||
4.50% 10/1/35 | 864,516 | 833,744 | ||||
5.00% 4/1/35 | 736,847 | 731,734 | ||||
6.00% 6/1/37 | 775,661 | 796,350 | ||||
6.50% 11/1/33 | 92,650 | 96,615 | ||||
6.50% 1/1/35 | 520,627 | 543,509 | ||||
6.50% 5/1/37 | 74,490 | 77,339 | ||||
6.50% 1/1/38 | 2,321,137 | 2,409,905 | ||||
6.50% 2/1/38 | 3,387,135 | 3,516,671 | ||||
7.00% 1/1/38 | 1,032,156 | 1,084,515 | ||||
Freddie Mac S.F. 30 yr TBA | ||||||
5.00% 4/1/38 | 11,830,000 | 11,713,545 | ||||
GNMA I S.F. 30 yr | ||||||
7.00% 12/15/34 | 836,852 | 895,912 | ||||
GNMA II 6.00% 4/20/34 | 69,557 | 71,794 | ||||
GNMA S.F. 30 yr TBA | ||||||
5.50% 4/1/38 | 965,000 | 983,847 | ||||
6.00% 4/1/38 | 965,000 | 995,910 | ||||
Total Agency Mortgage-Backed Securities | ||||||
(cost $138,934,702) | 141,542,981 | |||||
Agency Obligations – 6.93% | ||||||
*Fannie Mae | ||||||
3.25% 4/9/13 | 3,320,000 | 3,319,748 | ||||
3.625% 2/12/13 | 1,130,000 | 1,150,794 | ||||
4.375% 3/15/13 | 1,300,000 | 1,366,190 | ||||
4.625% 10/15/13 | 2,350,000 | 2,494,607 | ||||
4.75% 11/19/12 | 1,740,000 | 1,858,741 | ||||
4.875% 5/18/12 | 2,400,000 | 2,570,830 | ||||
5.00% 9/15/08 | 900,000 | 912,074 | ||||
5.00% 2/16/12 | 1,590,000 | 1,709,105 | ||||
6.25% 2/1/11 | 1,700,000 | 1,829,948 | ||||
*Federal Farm Credit Bank | ||||||
5.125% 8/25/16 | 485,000 | 524,334 | ||||
Federal Home Loan Bank System | ||||||
3.75% 1/8/10 | 3,900,000 | 4,002,426 | ||||
*4.25% 11/20/09 | 1,255,000 | 1,295,662 | ||||
*4.375% 9/17/10 | 2,380,000 | 2,491,003 | ||||
*4.50% 10/9/09 | 1,690,000 | 1,747,453 | ||||
4.875% 11/27/13 | 2,775,000 | 2,976,984 | ||||
*5.375% 8/19/11 | 1,990,000 | 2,156,907 | ||||
^Financing Corporation | ||||||
Interest Strip | ||||||
CPN 4.782% 4/6/12 | 465,000 | 420,593 | ||||
CPN 4.797% 5/2/12 | 85,000 | 76,860 | ||||
CPN 4.901% 10/6/12 | 385,000 | 340,542 | ||||
CPN 4.948% 10/6/14 | 465,000 | 375,633 | ||||
CPN 5.101% 10/6/11 | 113,000 | 103,849 | ||||
CPN 5.175% 3/26/12 | 120,000 | 108,548 | ||||
CPN 5.213% 10/6/15 | 160,000 | 122,146 | ||||
CPN 1 5.162% 5/11/12 | 270,000 | 244,123 | ||||
CPN 1 5.283% 5/11/15 | 330,000 | 257,525 | ||||
CPN 1 5.407% 11/11/17 | 560,000 | 375,234 | ||||
CPN 4 5.213% 10/6/15 | 160,000 | 122,146 | ||||
CPN 5 5.065% 8/8/11 | 39,000 | 36,082 | ||||
CPN 12 5.10% 12/6/11 | 500,000 | 456,350 | ||||
CPN 13 5.161% 12/27/12 | 135,000 | 118,307 | ||||
CPN 13 5.208% 6/27/13 | 320,000 | 274,711 | ||||
CPN 13 5.366% 12/27/16 | 287,000 | 202,400 | ||||
CPN 15 4.903% 9/7/13 | 610,000 | 520,025 | ||||
CPN 15 5.304% 3/7/16 | 565,000 | 420,910 | ||||
CPN A 5.098% 8/8/15 | 122,000 | 94,015 | ||||
CPN A 5.099% 2/8/15 | 122,000 | 96,455 | ||||
CPN D 5.109% 9/26/11 | 492,000 | 452,662 | ||||
CPN D 5.119% 9/26/10 | 500,000 | 476,002 | ||||
Freddie Mac | ||||||
4.125% 10/18/10 | 1,935,000 | 2,013,309 | ||||
*4.125% 12/21/12 | 3,000,000 | 3,118,908 | ||||
*4.50% 7/15/13 | 1,500,000 | 1,582,044 | ||||
*4.625% 10/25/12 | 4,500,000 | 4,778,972 | ||||
*4.75% 1/18/11 | 2,035,000 | 2,150,454 | ||||
*4.75% 1/19/16 | 100,000 | 105,707 | ||||
5.00% 12/14/18 | 525,000 | 514,629 | ||||
*5.25% 7/18/11 | 1,640,000 | 1,764,737 | ||||
*5.40% 2/2/12 | 1,480,000 | 1,518,262 | ||||
5.45% 9/2/11 | 1,480,000 | 1,499,887 | ||||
*5.50% 7/18/16 | 2,285,000 | 2,524,527 | ||||
*5.50% 8/23/17 | 150,000 | 165,755 | ||||
*5.75% 1/15/12 | 1,360,000 | 1,497,886 | ||||
^Residual Funding Principal | ||||||
Strip 5.175% 10/15/19 | 3,300,000 | 2,006,215 |
(continues) 39
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Agency Obligations (continued) | ||||||
*Tennessee Valley Authority | ||||||
4.875% 1/15/48 | USD | 850,000 | $ | 836,284 | ||
Total Agency Obligations | ||||||
(cost $61,222,425) | 64,179,500 | |||||
Commercial Mortgage-Backed Securities – 8.41% | ||||||
Bank of America Commercial | ||||||
Mortgage Securities | ||||||
·Series 2004-3 A5 | ||||||
5.316% 6/10/39 | 655,000 | 659,335 | ||||
·Series 2005-6 AM | ||||||
5.181% 9/10/47 | 255,000 | 243,372 | ||||
·Series 2006-2 AAB | ||||||
5.722% 5/10/45 | 540,000 | 545,229 | ||||
·Series 2006-3 A4 | ||||||
5.889% 7/10/44 | 850,000 | 861,799 | ||||
Series 2006-4 A4 | ||||||
5.634% 7/10/46 | 995,000 | 991,483 | ||||
Series 2007-1 A2 | ||||||
5.381% 1/15/49 | 1,150,000 | 1,124,772 | ||||
·Series 2007-2 A2 | ||||||
5.634% 4/10/49 | 3,710,000 | 3,648,759 | ||||
·Series 2007-2 AM | ||||||
5.699% 4/10/49 | 2,340,000 | 2,136,088 | ||||
·Series 2007-3 A2 | ||||||
5.659% 6/10/49 | 2,150,000 | 2,126,359 | ||||
·Series 2007-3 A4 | ||||||
5.659% 6/10/49 | 2,525,000 | 2,497,366 | ||||
·#Series 2007-3 H 144A | ||||||
5.659% 6/10/49 | 625,000 | 311,284 | ||||
·Series 2007-4 AM | ||||||
5.812% 2/10/51 | 435,000 | 399,426 | ||||
·Series 2007-4 ASB | ||||||
5.706% 2/10/51 | 1,575,000 | 1,571,627 | ||||
Bear Stearns Commercial | ||||||
Mortgage Securities | ||||||
#Series 2004-ESA E 144A | ||||||
5.064% 5/14/16 | 420,000 | 432,503 | ||||
·Series 2005-T20 A4A | ||||||
5.155% 10/12/42 | 1,000,000 | 993,977 | ||||
·Series 2006-PW12 A4 | ||||||
5.711% 9/11/38 | 750,000 | 756,658 | ||||
Series 2007-PW15 AAB | ||||||
5.315% 2/11/44 | 1,775,000 | 1,738,571 | ||||
·Series 2007-PW16 A2 | ||||||
5.661% 6/11/40 | 3,525,000 | 3,483,818 | ||||
·Series 2007-PW16 A4 | ||||||
5.713% 6/11/40 | 1,195,000 | 1,186,996 | ||||
·Series 2007-PW16 AAB | ||||||
5.713% 6/11/40 | 2,075,000 | 2,079,805 | ||||
·Series 2007-T28 A4 | ||||||
5.742% 9/11/42 | 710,000 | 700,790 | ||||
Citigroup/Deutsche Bank | ||||||
Commercial Mortgage | ||||||
Trust Series 2007-CD4 | ||||||
A2B 5.205% 12/11/49 | 1,860,000 | 1,810,183 | ||||
wCommercial Mortgage Pass | ||||||
Through Certificates | ||||||
·#Series 2001-J1A A2 | ||||||
144A 6.457% 2/14/34 | 262,568 | 268,437 | ||||
Series 2006-C7 A2 | ||||||
5.69% 6/10/46 | 260,000 | 258,852 | ||||
Credit Suisse Mortgage | ||||||
Capital Certificates | ||||||
·Series 2006-C1 AAB | ||||||
5.555% 2/15/39 | 140,000 | 135,713 | ||||
Series 2006-C5 AAB | ||||||
5.308% 12/15/39 | 1,610,000 | 1,586,723 | ||||
#Crown Castle Towers 144A | ||||||
Series 2005-1A C | ||||||
5.074% 6/15/35 | 175,000 | 168,501 | ||||
Series 2006-1A B | ||||||
5.362% 11/15/36 | 375,000 | 362,835 | ||||
CW Capital Cobalt | ||||||
Series 2006-C1 AAB | ||||||
5.223% 8/15/48 | 925,000 | 908,296 | ||||
Series 2007-C2 AAB | ||||||
5.416% 4/15/47 | 1,850,000 | 1,818,958 | ||||
Deutsche Mortgage | ||||||
& Asset Receiving | ||||||
Series 1998-C1 D | ||||||
7.231% 6/15/31 | 789,937 | 788,200 | ||||
First Union-Lehman | ||||||
Brothers-Bank of | ||||||
America Series 1998-C2 | ||||||
A2 6.56% 11/18/35 | 12,786 | 12,752 | ||||
General Electric Capital | ||||||
Commercial Mortgage | ||||||
Series 2002-1A A3 | ||||||
6.269% 12/10/35 | 325,000 | 331,977 | ||||
Series 2007-C1 A2 | ||||||
5.417% 12/10/49 | 2,830,000 | 2,768,471 | ||||
·Series 2007-C1 AJ | ||||||
5.677% 12/10/49 | 1,690,000 | 1,300,961 | ||||
Goldman Sachs Mortgage | ||||||
Securities II | ||||||
Series 2006-GG8 A2 | ||||||
5.479% 11/10/39 | 1,930,000 | 1,907,071 | ||||
·#Series 2006-RR2 A1 | ||||||
144A 5.68% 6/23/46 | 350,000 | 256,718 | ||||
·#Series 2006-RR3 A1S | ||||||
144A 5.659% 7/18/56 | 1,015,000 | 665,505 | ||||
·Series 2007-GG10 A4 | ||||||
5.993% 8/10/45 | 4,125,000 | 4,118,432 | ||||
·Series 2007-GG10 AM | ||||||
5.993% 8/10/45 | 2,475,000 | 2,277,361 | ||||
·#Series 2007-GG10 J | ||||||
144A 5.993% 8/10/45 | 1,956,000 | 918,930 |
40
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Commercial Mortgage-Backed Securities (continued) | ||||||
Greenwich Capital | ||||||
Commercial Funding | ||||||
·Series 2006-GG7 AAB | ||||||
5.913% 7/10/38 | USD | 1,675,000 | $ | 1,707,810 | ||
Series 2007-GG9 A4 | ||||||
5.444% 3/10/39 | 1,995,000 | 1,941,030 | ||||
Series 2007-GG11 A4 | ||||||
5.736% 12/10/49 | 1,350,000 | 1,332,667 | ||||
JPMorgan Chase Commercial | ||||||
Mortgage Securities | ||||||
Series 2002-C1 A3 | ||||||
5.376% 7/12/37 | 720,000 | 724,759 | ||||
Series 2002-C2 A2 | ||||||
5.05% 12/12/34 | 665,000 | 659,713 | ||||
Series 2003-C1 A2 | ||||||
4.985% 1/12/37 | 130,000 | 125,676 | ||||
·Series 2005-LDP5 A4 | ||||||
5.179% 12/15/44 | 1,005,000 | 1,001,942 | ||||
Series 2006-LDP9 A2 | ||||||
5.134% 5/15/47 | 960,000 | 903,287 | ||||
·#Series 2006-RR1A A1 | ||||||
144A 5.458% 10/18/52 | 870,000 | 633,473 | ||||
·Series 2007-LD11 A2 | ||||||
5.804% 6/15/49 | 2,560,000 | 2,542,705 | ||||
·Series 2007-LD11 ASB | ||||||
6.007% 6/15/49 | 2,960,000 | 2,983,858 | ||||
·Series 2007-LD12 A4 | ||||||
5.882% 2/15/51 | 1,125,000 | 1,121,808 | ||||
Lehman Brothers-UBS Commercial | ||||||
Mortgage Trust | ||||||
Series 2002-C1 A4 | ||||||
6.462% 3/15/31 | 245,000 | 252,057 | ||||
Series 2006-C6 A2 | ||||||
5.262% 9/15/39 | 1,780,000 | 1,750,301 | ||||
·Merrill Lynch/Countrywide | ||||||
Commercial Mortgage | ||||||
Trust Series 2007-7 ASB | ||||||
5.745% 6/12/50 | 975,000 | 973,867 | ||||
·Morgan Stanley Capital I | ||||||
#Series 1999-FNV1 G 144A | ||||||
6.12% 3/15/31 | 140,000 | 135,578 | ||||
Series 2007-IQ14 A4 | ||||||
5.692% 4/15/49 | 325,000 | 320,012 | ||||
Series 2007-T27 A4 | ||||||
5.65% 6/13/42 | 620,000 | 613,705 | ||||
·#Morgan Stanley Dean Witter Capital I | ||||||
Series 2001-TOP1 E 144A | ||||||
7.343% 2/15/33 | 100,000 | 91,917 | ||||
#NYC Mortgage Loan Trust | ||||||
Series 1996 A3 144A | ||||||
6.75% 9/25/19 | 72,050 | 74,031 | ||||
·#STRIPs III Series 2003-1A AFIX | ||||||
144A 3.308% 3/24/18 | 22,951 | 22,606 | ||||
#Tower 144A | ||||||
Series 2004-2A A | ||||||
4.232% 12/15/14 | 195,000 | 193,586 | ||||
Series 2006-1 B | ||||||
5.588% 2/15/36 | 160,000 | 157,349 | ||||
Series 2006-1 C | ||||||
5.707% 2/15/36 | 250,000 | 238,003 | ||||
Wachovia Bank Commercial | ||||||
Mortgage Trust | ||||||
Series 2006-C28 A2 | ||||||
5.50% 10/15/48 | 555,000 | 547,338 | ||||
Series 2007-C30 A3 | ||||||
5.413% 12/15/43 | 595,000 | 578,244 | ||||
·Series 2007-C30 AJ | ||||||
5.413% 12/15/43 | 1,850,000 | 1,399,867 | ||||
Series 2007-C31A A2 | ||||||
5.421% 4/15/47 | 1,880,000 | 1,834,485 | ||||
·Series 2007-C32 A2 | ||||||
5.736% 6/15/49 | 1,960,000 | 1,936,706 | ||||
Total Commercial Mortgage-Backed | ||||||
Securities (cost $81,067,205) | 77,953,273 | |||||
Convertible Bonds – 0.28% | ||||||
*Advanced Micro Devices | ||||||
6.00% 5/1/15 exercise | ||||||
price $28.08, expiration | ||||||
date 5/1/15 | 1,040,000 | 659,100 | ||||
Electronic Data Systems | ||||||
3.875% 7/15/23 exercise | ||||||
price $34.14, expiration | ||||||
date 7/15/23 | 775,000 | 758,531 | ||||
·*U.S. Bancorp 0.792% 9/20/36 | ||||||
exercise price $38.28, | ||||||
expiration date 9/20/36 | 580,000 | 581,566 | ||||
·Wyeth 3.581% 1/15/24 | ||||||
exercise price $60.09, | ||||||
expiration date 1/15/24 | 631,000 | 636,029 | ||||
Total Convertible Bonds | ||||||
(cost $2,873,838) | 2,635,226 | |||||
Corporate Bonds – 21.97% | ||||||
Banking – 2.81% | ||||||
American Express Centurion | ||||||
Bank 5.55% 10/17/12 | 2,516,000 | 2,541,307 | ||||
·BAC Capital Trust XV | ||||||
3.876% 6/1/56 | 820,000 | 611,735 | ||||
·#Banco Mercantil 144A | ||||||
6.862% 10/13/21 | 1,300,000 | 1,200,480 | ||||
·Bank of America | ||||||
8.00% 12/29/49 | 570,000 | 571,647 | ||||
Bank of New York Mellon | ||||||
*4.50% 4/1/13 | 1,360,000 | 1,371,164 | ||||
4.95% 11/1/12 | 1,532,000 | 1,571,251 |
(continues) 41
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Banking (continued) | ||||||
*#Bank of Scotland 144A | ||||||
5.25% 2/21/17 | USD | 930,000 | $ | 988,871 | ||
·Capital One FSB | ||||||
2.968% 3/13/09 | 555,000 | 547,691 | ||||
Deutsche Bank | ||||||
5.00% 10/12/10 | 2,125,000 | 2,228,903 | ||||
#Dresdner Funding Trust I | ||||||
144A 8.151% 6/30/31 | 660,000 | 584,880 | ||||
HSBC Holdings | ||||||
7.35% 11/27/32 | 900,000 | 930,700 | ||||
JPMorgan Chase | ||||||
5.75% 1/2/13 | 719,000 | 751,894 | ||||
JPMorgan Chase Capital XXV | ||||||
6.80% 10/1/37 | 1,254,000 | 1,149,189 | ||||
·MUFG Capital Finance 1 | ||||||
6.346% 7/29/49 | 1,405,000 | 1,146,674 | ||||
#Northern Rock 144A | ||||||
5.625% 6/22/17 | 507,000 | 515,878 | ||||
PNC Bank 6.875% 4/1/18 | 500,000 | 509,395 | ||||
·#PNC Preferred Funding Trust I | ||||||
144A 6.113% 3/29/49 | 500,000 | 325,544 | ||||
Popular North America | ||||||
4.25% 4/1/08 | 298,000 | 298,000 | ||||
·5.046% 4/6/09 | 300,000 | 292,521 | ||||
·Royal Bank of Scotland Group | ||||||
7.64% 3/31/49 | 700,000 | 603,792 | ||||
#144A 6.99% 10/31/49 | 730,000 | 620,712 | ||||
Silicon Valley Bank | ||||||
5.70% 6/1/12 | 474,000 | 489,433 | ||||
U.S. Bank North America | ||||||
4.80% 4/15/15 | 328,000 | 332,072 | ||||
4.95% 10/30/14 | 250,000 | 255,188 | ||||
·USB Capital IX | ||||||
6.189% 4/15/49 | 475,000 | 352,913 | ||||
Wachovia Bank | ||||||
6.60% 1/15/38 | 1,171,000 | 1,088,326 | ||||
·Wachovia Capital Trust III | ||||||
5.80% 3/15/42 | 895,000 | 638,083 | ||||
Wells Fargo | ||||||
4.375% 1/31/13 | 754,000 | 750,946 | ||||
5.25% 10/23/12 | 770,000 | 799,352 | ||||
5.625% 12/11/17 | 375,000 | 384,286 | ||||
WM Covered Bond Program | ||||||
3.875% 9/27/11 | EUR | 685,000 | 1,038,480 | |||
·#Woori Bank 144A | ||||||
6.208% 5/2/37 | USD | 700,000 | 557,976 | |||
26,049,283 | ||||||
Basic Industry – 0.85% | ||||||
AK Steel 7.75% 6/15/12 | 136,000 | 137,870 | ||||
#Alto Parana 144A | ||||||
6.375% 6/9/17 | 485,000 | 493,535 | ||||
Celulosa Arauco | ||||||
5.125% 7/9/13 | 585,000 | 585,540 | ||||
5.625% 4/20/15 | 510,000 | 509,396 | ||||
CPG International I | ||||||
10.50% 7/1/13 | 109,000 | 92,105 | ||||
Domtar 7.125% 8/15/15 | 101,000 | 95,698 | ||||
duPont (E.I.) deNemours | ||||||
5.00% 1/15/13 | 182,000 | 189,709 | ||||
Freeport McMoRan | ||||||
Copper & Gold | ||||||
8.25% 4/1/15 | 215,000 | 227,363 | ||||
8.375% 4/1/17 | 265,000 | 281,894 | ||||
Georgia-Pacific | ||||||
7.70% 6/15/15 | 240,000 | 226,800 | ||||
8.875% 5/15/31 | 22,000 | 19,690 | ||||
9.50% 12/1/11 | 295,000 | 301,638 | ||||
#GTL Trade Finance 144A | ||||||
7.25% 10/20/17 | 516,000 | 544,875 | ||||
#Ineos Group Holdings 144A | ||||||
8.50% 2/15/16 | 115,000 | 89,988 | ||||
Innophos 8.875% 8/15/14 | 118,000 | 115,050 | ||||
Lubrizol 4.625% 10/1/09 | 461,000 | 462,843 | ||||
#MacDermid 144A | ||||||
9.50% 4/15/17 | 109,000 | 98,100 | ||||
Momentive Performance | ||||||
Materials | ||||||
9.75% 12/1/14 | 215,000 | 194,038 | ||||
#NewPage 144A | ||||||
10.00% 5/1/12 | 199,000 | 202,980 | ||||
#Norske Skogindustrier 144A | ||||||
7.125% 10/15/33 | 370,000 | 262,765 | ||||
Nucor 6.40% 12/1/37 | 755,000 | 764,491 | ||||
Õ=@Port Townsend | ||||||
12.431% 8/27/12 | 82,600 | 81,774 | ||||
Potlatch 13.00% 12/1/09 | 315,000 | 356,010 | ||||
#Rock-Tenn 144A | ||||||
9.25% 3/15/16 | 67,000 | 69,680 | ||||
Rockwood Specialties | ||||||
Group 7.50% 11/15/14 | 190,000 | 185,250 | ||||
Rohm & Haas | ||||||
5.60% 3/15/13 | 407,000 | 420,007 | ||||
·#Ryerson 144A | ||||||
10.614% 11/1/14 | 100,000 | 90,500 | ||||
#Sappi Papier Holding 144A | ||||||
6.75% 6/15/12 | 149,000 | 135,321 | ||||
Southern Copper | ||||||
7.50% 7/27/35 | 265,000 | 273,061 | ||||
Steel Dynamics | ||||||
6.75% 4/1/15 | 23,000 | 22,655 | ||||
#Steel Dynamics144A | ||||||
7.375% 11/1/12 | 50,000 | 50,750 | ||||
7.75% 4/15/16 | 160,000 | 161,000 | ||||
Verso Paper Holdings | ||||||
9.125% 8/1/14 | 94,000 | 91,180 | ||||
Witco 6.875% 2/1/26 | 100,000 | 67,500 | ||||
7,901,056 |
42
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Brokerage – 0.45% | ||||||
AMVESCAP | ||||||
4.50% 12/15/09 | USD | 323,000 | $ | 323,915 | ||
Goldman Sachs Group | ||||||
6.15% 4/1/18 | 885,000 | 885,319 | ||||
6.75% 10/1/37 | 720,000 | 671,885 | ||||
Jefferies Group | ||||||
6.45% 6/8/27 | 511,000 | 411,622 | ||||
LaBranche | ||||||
9.50% 5/15/09 | 181,000 | 184,620 | ||||
11.00% 5/15/12 | 154,000 | 157,080 | ||||
Lazard Group | ||||||
6.85% 6/15/17 | 150,000 | 140,697 | ||||
Lehman Brothers Holdings | ||||||
5.625% 1/24/13 | 503,000 | 489,607 | ||||
#LVB Acquisition Merger Sub | ||||||
144A 10.00% 10/15/17 | 280,000 | 294,700 | ||||
Merrill Lynch 5.45% 2/5/13 | 433,000 | 426,458 | ||||
#Nuveen Investments 144A | ||||||
10.50% 11/15/15 | 225,000 | 194,063 | ||||
4,179,966 | ||||||
Capital Goods – 0.83% | ||||||
Allied Waste North America | ||||||
*7.375% 4/15/14 | 127,000 | 125,571 | ||||
7.875% 4/15/13 | 420,000 | 434,175 | ||||
Associated Materials | ||||||
9.75% 4/15/12 | 90,000 | 87,750 | ||||
BWAY 10.00% 10/15/10 | 50,000 | 48,375 | ||||
Casella Waste Systems | ||||||
9.75% 2/1/13 | 246,000 | 241,695 | ||||
Crown Americas Capital | ||||||
7.75% 11/15/15 | 60,000 | 61,950 | ||||
DRS Technologies | ||||||
7.625% 2/1/18 | 149,000 | 149,745 | ||||
General Electric | ||||||
5.25% 12/6/17 | 1,467,000 | 1,467,728 | ||||
Graham Packaging | ||||||
8.50% 10/15/12 | 203,000 | 183,715 | ||||
Graphic Packaging | ||||||
International | ||||||
8.50% 8/15/11 | 159,000 | 157,013 | ||||
Greenbrier 8.375% 5/15/15 | 95,000 | 89,775 | ||||
Honeywell International | ||||||
5.30% 3/1/18 | 456,000 | 468,179 | ||||
Interface 10.375% 2/1/10 | 176,000 | 184,800 | ||||
Intertape Polymer | ||||||
8.50% 8/1/14 | 182,000 | 151,970 | ||||
Koppers Industries | ||||||
9.875% 10/15/13 | 109,000 | 114,995 | ||||
L-3 Communications | ||||||
7.625% 6/15/12 | 452,000 | 464,995 | ||||
Lockheed Martin | ||||||
4.121% 3/14/13 | 410,000 | 411,045 | ||||
·NXP BV Funding | ||||||
7.008% 10/15/13 | 100,000 | 82,875 | ||||
Owens Brockway | ||||||
Glass Container | ||||||
6.75% 12/1/14 | 275,000 | 275,000 | ||||
Owens Corning | ||||||
6.50% 12/1/16 | 120,000 | 99,602 | ||||
Philips Electronics NV | ||||||
5.75% 3/11/18 | 229,000 | 233,769 | ||||
Smurfit-Stone Container | ||||||
Enterprises | ||||||
8.00% 3/15/17 | 159,000 | 134,355 | ||||
#SPX 144A | ||||||
7.625% 12/15/14 | 63,000 | 64,969 | ||||
Textron 6.50% 6/1/12 | 283,000 | 310,649 | ||||
Trimas 9.875% 6/15/12 | 210,000 | 183,750 | ||||
#Tyco Electronics Group 144A | ||||||
7.125% 10/1/37 | 1,054,000 | 1,103,171 | ||||
Vitro 11.75% 11/1/13 | 381,000 | 387,668 | ||||
7,719,284 | ||||||
Communications – 2.70% | ||||||
America Movil | ||||||
6.375% 3/1/35 | 165,000 | 160,503 | ||||
American Tower | ||||||
7.125% 10/15/12 | 271,000 | 278,453 | ||||
AT&T 5.50% 2/1/18 | 385,000 | 377,675 | ||||
AT&T Broadband | ||||||
8.375% 3/15/13 | 470,000 | 522,624 | ||||
AT&T Wireless | ||||||
8.125% 5/1/12 | 1,181,000 | 1,322,805 | ||||
British Telecommunications | ||||||
5.15% 1/15/13 | 1,100,000 | 1,083,995 | ||||
8.625% 12/15/10 | 170,000 | 187,073 | ||||
Broadview Networks Holdings | ||||||
11.375% 9/1/12 | 91,000 | 86,905 | ||||
·Centennial Communications | ||||||
10.479% 1/1/13 | 136,000 | 119,000 | ||||
#Charter Communications | ||||||
144A 10.875% 9/15/14 | 562,000 | 556,380 | ||||
#Charter Communications | ||||||
Operating 144A | ||||||
8.00% 4/30/12 | 1,560,000 | 1,439,099 | ||||
Citizens Communications | ||||||
7.125% 3/15/19 | 609,000 | 535,920 | ||||
Comcast | ||||||
·4.677% 7/14/09 | 354,000 | 344,583 | ||||
6.30% 11/15/17 | 509,000 | 516,096 | ||||
Comcast Cable Communications | ||||||
6.75% 1/30/11 | 450,000 | 468,148 | ||||
Comcast Cable Holdings | ||||||
9.875% 6/15/22 | 290,000 | 359,557 | ||||
10.125% 4/15/22 | 329,000 | 412,936 | ||||
#Cox Enterprises 144A | ||||||
4.375% 5/1/08 | 2,380,000 | 2,380,846 | ||||
Cricket Communications | ||||||
9.375% 11/1/14 | 98,000 | 93,345 |
(continues) 43
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Communications (continued) | ||||||
CSC Holdings | ||||||
7.625% 4/1/11 | USD | 106,000 | $ | 105,338 | ||
Dex Media West | ||||||
9.875% 8/15/13 | 273,000 | 238,193 | ||||
#Digicel 144A 9.25% 9/1/12 | 180,000 | 179,550 | ||||
Grupo Televisa | ||||||
8.49% 5/11/37 | MXN | 7,400,000 | 690,769 | |||
·#Hellas Telecommunications | ||||||
Luxembourg II 144A | ||||||
10.008% 1/15/15 | USD | 190,000 | 136,800 | |||
Historic TW | ||||||
9.125% 1/15/13 | 890,000 | 998,420 | ||||
Hughes Network Systems/ | ||||||
Finance 9.50% 4/15/14 | 186,000 | 186,000 | ||||
WInmarsat Finance | ||||||
10.375% 11/15/12 | 1,391,000 | 1,356,224 | ||||
Intelsat Bermuda | ||||||
11.25% 6/15/16 | 172,000 | 175,225 | ||||
Lamar Media | ||||||
6.625% 8/15/15 | 83,000 | 73,455 | ||||
#LBI Media 144A | ||||||
8.50% 8/1/17 | 88,000 | 76,670 | ||||
Lucent Technologies | ||||||
6.45% 3/15/29 | 187,000 | 134,640 | ||||
MetroPCS Wireless | ||||||
9.25% 11/1/14 | 373,000 | 345,025 | ||||
·Nortel Networks | ||||||
8.508% 7/15/11 | 209,000 | 180,263 | ||||
NTL Cable 9.125% 8/15/16 | 140,000 | 126,000 | ||||
PAETEC Holding | ||||||
9.50% 7/15/15 | 92,000 | 85,100 | ||||
#Quebecor Media 144A | ||||||
7.75% 3/15/16 | 204,000 | 187,170 | ||||
Qwest | ||||||
6.50% 6/1/17 | 100,000 | 90,750 | ||||
7.50% 10/1/14 | 558,000 | 546,840 | ||||
7.625% 6/15/15 | 937,000 | 918,260 | ||||
Qwest Capital Funding | ||||||
7.25% 2/15/11 | 195,000 | 186,225 | ||||
Rural Cellular | ||||||
·8.989% 11/1/12 | 67,000 | 67,335 | ||||
9.875% 2/1/10 | 339,000 | 350,018 | ||||
TCI Communications | ||||||
8.75% 8/1/15 | 432,000 | 489,345 | ||||
Telecom Italia Capital | ||||||
4.00% 1/15/10 | 671,000 | 658,519 | ||||
Telefonica Emisiones | ||||||
5.984% 6/20/11 | 303,000 | 312,241 | ||||
THOMSON 5.70% 10/1/14 | 728,000 | 720,814 | ||||
Time Warner Cable | ||||||
5.40% 7/2/12 | 486,000 | 477,957 | ||||
Time Warner Telecom | ||||||
Holdings 9.25% 2/15/14 | 144,000 | 146,160 | ||||
Verizon Communications | ||||||
*4.35% 2/15/13 | 1,345,000 | 1,319,340 | ||||
5.55% 2/15/16 | 939,000 | 935,681 | ||||
Viacom | ||||||
6.125% 10/5/17 | 465,000 | 454,221 | ||||
6.75% 10/5/37 | 395,000 | 379,987 | ||||
Windstream 8.125% 8/1/13 | 416,000 | 410,800 | ||||
24,985,278 | ||||||
Consumer Cyclical – 1.47% | ||||||
Corrections Corporation | ||||||
of America | ||||||
6.25% 3/15/13 | 231,000 | 227,535 | ||||
7.50% 5/1/11 | 112,000 | 113,680 | ||||
CVS Caremark | ||||||
4.875% 9/15/14 | 558,000 | 553,420 | ||||
5.75% 6/1/17 | 578,000 | 588,033 | ||||
6.25% 6/1/27 | 664,000 | 663,562 | ||||
·6.302% 6/1/37 | 1,897,000 | 1,741,138 | ||||
·DaimlerChrysler | ||||||
North America | ||||||
3.562% 8/3/09 | 630,000 | 620,408 | ||||
DR Horton 8.00% 2/1/09 | 106,000 | 104,675 | ||||
Ford Motor | ||||||
7.45% 7/16/31 | 143,000 | 95,095 | ||||
7.70% 5/15/97 | 207,000 | 131,963 | ||||
Ford Motor Credit | ||||||
7.375% 10/28/09 | 75,000 | 68,359 | ||||
7.80% 6/1/12 | 915,000 | 755,391 | ||||
8.00% 12/15/16 | 255,000 | 199,902 | ||||
9.75% 9/15/10 | 395,000 | 352,037 | ||||
#Galaxy Entertainment | ||||||
Finance 144A | ||||||
9.875% 12/15/12 | 205,000 | 204,488 | ||||
Gaylord Entertainment | ||||||
8.00% 11/15/13 | 168,000 | 156,660 | ||||
*General Motors | ||||||
8.375% 7/15/33 | 682,000 | 484,220 | ||||
Global Cash Access | ||||||
8.75% 3/15/12 | 118,000 | 116,525 | ||||
GMAC | ||||||
·4.315% 5/15/09 | 1,580,000 | 1,350,796 | ||||
6.875% 8/28/12 | 1,030,000 | 783,418 | ||||
Harrah’s Operating | ||||||
5.50% 7/1/10 | 526,000 | 462,880 | ||||
#Harrah’s Operating 144A | ||||||
10.75% 2/1/16 | 100,000 | 84,750 | ||||
Lear 8.75% 12/1/16 | 295,000 | 253,331 | ||||
*Majestic Star Casino | ||||||
9.50% 10/15/10 | 219,000 | 194,363 | ||||
Mandalay Resort Group | ||||||
9.375% 2/15/10 | 90,000 | 93,150 | ||||
MGM MIRAGE | ||||||
7.625% 1/15/17 | 59,000 | 53,985 |
44
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Consumer Cyclical (continued) | ||||||
Neiman Marcus Group | ||||||
*10.375% 10/15/15 | USD | 25,000 | $ | 25,125 | ||
PIK 9.00% 10/15/15 | 477,000 | 479,385 | ||||
Park Place Entertainment | ||||||
7.875% 3/15/10 | 75,000 | 70,688 | ||||
Penney (J.C.) | ||||||
7.375% 8/15/08 | 186,000 | 187,575 | ||||
#Pokagon Gaming | ||||||
Authority 144A | ||||||
10.375% 6/15/14 | 313,000 | 331,780 | ||||
*Station Casinos | ||||||
6.00% 4/1/12 | 108,000 | 89,100 | ||||
#Tenneco 144A | ||||||
8.125% 11/15/15 | 113,000 | 112,718 | ||||
#TRW Automotive 144A | ||||||
7.00% 3/15/14 | 100,000 | 92,750 | ||||
VF 5.95% 11/1/17 | 220,000 | 222,304 | ||||
Viacom | ||||||
·3.15% 6/16/09 | 242,000 | 237,230 | ||||
5.75% 4/30/11 | 866,000 | 875,829 | ||||
Wynn Las Vegas | ||||||
6.625% 12/1/14 | 410,000 | 396,675 | ||||
13,574,923 | ||||||
Consumer Non-Cyclical – 2.73% | ||||||
Abbott Laboratories | ||||||
5.60% 11/30/17 | 785,000 | 822,801 | ||||
ACCO Brands | ||||||
7.625% 8/15/15 | 91,000 | 80,990 | ||||
Advanced Medical Optics | ||||||
7.50% 5/1/17 | 96,000 | 83,040 | ||||
#AmBev International | ||||||
Finance 144A | ||||||
9.50% 7/24/17 | BRL | 831,000 | 408,049 | |||
Amgen 6.375% 6/1/37 | USD | 223,000 | 212,237 | |||
Aramark | ||||||
·6.739% 2/1/15 | 100,000 | 88,750 | ||||
8.50% 2/1/15 | 795,000 | 800,963 | ||||
AstraZeneca 5.90% 9/15/17 | 675,000 | 714,814 | ||||
#Bausch & Lomb 144A | ||||||
9.875% 11/1/15 | 157,000 | 160,140 | ||||
Cardtronics 9.25% 8/15/13 | 167,000 | 157,815 | ||||
Caterpillar Financial Services | ||||||
4.25% 2/8/13 | 1,200,000 | 1,199,756 | ||||
Clorox 5.45% 10/15/12 | 308,000 | 317,390 | ||||
*Constellation Brands | ||||||
8.125% 1/15/12 | 267,000 | 271,005 | ||||
Cott Beverages | ||||||
8.00% 12/15/11 | 110,000 | 89,650 | ||||
#Covidien International | ||||||
Finance 144A | ||||||
6.00% 10/15/17 | 236,000 | 243,686 | ||||
6.55% 10/15/37 | 442,000 | 453,232 | ||||
CRC Health 10.75% 2/1/16 | 417,000 | 394,065 | ||||
Del Monte | ||||||
6.75% 2/15/15 | 54,000 | 51,975 | ||||
8.625% 12/15/12 | 40,000 | 40,900 | ||||
Delhaize America | ||||||
9.00% 4/15/31 | 1,522,000 | 1,836,662 | ||||
Diageo Capital | ||||||
5.20% 1/30/13 | 93,000 | 96,315 | ||||
5.75% 10/23/17 | 449,000 | 460,678 | ||||
FTI Consulting | ||||||
7.625% 6/15/13 | 433,000 | 445,990 | ||||
HCA | ||||||
9.25% 11/15/16 | 2,088,000 | 2,171,519 | ||||
PIK 9.625% 11/15/16 | 263,000 | 273,520 | ||||
·*HealthSouth 10.829% 6/15/14 | 106,000 | 102,820 | ||||
Iron Mountain | ||||||
6.625% 1/1/16 | 96,000 | 91,920 | ||||
8.625% 4/1/13 | 106,000 | 107,590 | ||||
*Jarden 7.50% 5/1/17 | 123,000 | 108,240 | ||||
KB HOME 8.625% 12/15/08 | 95,000 | 95,713 | ||||
Kellogg 5.125% 12/3/12 | 403,000 | 417,157 | ||||
Kraft Foods | ||||||
4.125% 11/12/09 | 10,000 | 10,023 | ||||
6.125% 2/1/18 | 1,014,000 | 1,015,212 | ||||
Kroger | ||||||
4.95% 1/15/15 | 180,000 | 172,328 | ||||
6.40% 8/15/17 | 554,000 | 585,710 | ||||
6.75% 4/15/12 | 358,000 | 383,654 | ||||
6.90% 4/15/38 | 220,000 | 224,063 | ||||
McDonald’s | ||||||
*5.35% 3/1/18 | 1,355,000 | 1,374,179 | ||||
5.80% 10/15/17 | 432,000 | 454,432 | ||||
Medco Health Solutions | ||||||
6.125% 3/15/13 | 1,500,000 | 1,521,000 | ||||
#Miller Brewing 144A | ||||||
5.50% 8/15/13 | 1,096,000 | 1,166,204 | ||||
National Beef Packing | ||||||
10.50% 8/1/11 | 145,000 | 138,475 | ||||
#Penhall International 144A | ||||||
12.00% 8/1/14 | 86,000 | 73,100 | ||||
*Pilgrim’s Pride | ||||||
8.375% 5/1/17 | 108,000 | 95,580 | ||||
Quest Diagnostics | ||||||
5.45% 11/1/15 | 648,000 | 639,268 | ||||
6.95% 7/1/37 | 461,000 | 457,795 | ||||
Schering-Plough | ||||||
6.55% 9/15/37 | 720,000 | 695,592 | ||||
#Seminole Indian Tribe of | ||||||
Florida 144A | ||||||
7.804% 10/1/20 | 125,000 | 123,714 | ||||
8.03% 10/1/20 | 70,000 | 70,193 | ||||
Sysco 5.25% 2/12/18 | 322,000 | 330,108 | ||||
#Tesco 144A | ||||||
6.15% 11/15/37 | 1,100,000 | 1,069,556 |
(continues) 45
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Consumer Non-Cyclical (continued) | ||||||
Universal Hospital Services | ||||||
PIK 8.50% 6/1/15 | USD | 181,000 | $ | 181,905 | ||
UST 5.75% 3/1/18 | 340,000 | 344,204 | ||||
Visant Holding | ||||||
8.75% 12/1/13 | 106,000 | 99,640 | ||||
Wyeth 5.50% 2/1/14 | 1,203,000 | 1,247,622 | ||||
25,272,939 | ||||||
Electric – 3.41% | ||||||
AES | ||||||
7.75% 3/1/14 | 131,000 | 132,474 | ||||
8.00% 10/15/17 | 113,000 | 114,978 | ||||
#AES 144A 8.75% 5/15/13 | 77,000 | 80,465 | ||||
Arizona Public Service | ||||||
5.50% 9/1/35 | 1,035,000 | 819,749 | ||||
6.50% 3/1/12 | 592,000 | 616,911 | ||||
Baltimore Gas & Electric | ||||||
6.35% 10/1/36 | 600,000 | 544,757 | ||||
Carolina Power & Light | ||||||
6.30% 4/1/38 | 190,000 | 195,520 | ||||
Commonwealth Edison | ||||||
5.95% 8/15/16 | 1,910,000 | 1,943,176 | ||||
6.15% 3/15/12 | 810,000 | 846,144 | ||||
6.15% 9/15/17 | 436,000 | 448,402 | ||||
6.95% 7/15/18 | 83,000 | 85,490 | ||||
·Dominion Resources | ||||||
6.30% 9/30/66 | 810,000 | 741,331 | ||||
7.50% 6/30/66 | 1,460,000 | 1,349,687 | ||||
Duke Energy Carolinas | ||||||
6.00% 1/15/38 | 176,000 | 176,029 | ||||
Duquense Light Holdings | ||||||
5.50% 8/15/15 | 771,000 | 752,504 | ||||
#EDP Finance 144A | ||||||
5.375% 11/2/12 | 1,645,000 | 1,697,529 | ||||
Elwood Energy | ||||||
8.159% 7/5/26 | 199,373 | 193,953 | ||||
#Enel Finance International | ||||||
144A 6.80% 9/15/37 | 925,000 | 935,823 | ||||
Energy East 6.75% 7/15/36 | 1,035,000 | 1,008,380 | ||||
Entergy Gulf States | ||||||
5.12% 8/1/10 | 865,000 | 870,350 | ||||
Entergy Mississippi | ||||||
5.92% 2/1/16 | 310,000 | 316,589 | ||||
#FPL Energy National Wind | ||||||
144A 5.608% 3/10/24 | 416,842 | 424,403 | ||||
·FPL Group Capital | ||||||
6.65% 6/15/67 | 1,080,000 | 999,030 | ||||
7.30% 9/1/67 | 345,000 | 337,984 | ||||
#Illinois Power 144A | ||||||
6.125% 11/15/17 | 338,000 | 334,832 | ||||
ISA Capital do Brasil | ||||||
7.875% 1/30/12 | 145,000 | 150,075 | ||||
#ISA Capital do Brasil 144A | ||||||
7.875% 1/30/12 | 690,000 | 714,150 | ||||
8.80% 1/30/17 | 295,000 | 308,275 | ||||
*Midamerican Energy | ||||||
5.30% 3/15/18 | 250,000 | 250,280 | ||||
Midamerican Funding | ||||||
6.75% 3/1/11 | 10,000 | 10,812 | ||||
Midwest Generation | ||||||
8.30% 7/2/09 | 99,957 | 101,956 | ||||
Mirant Americas Generation | ||||||
8.30% 5/1/11 | 245,000 | 251,125 | ||||
Mirant North America | ||||||
7.375% 12/31/13 | 176,000 | 178,640 | ||||
#New York State Electric | ||||||
& Gas 144A | ||||||
6.15% 12/15/17 | 1,180,000 | 1,200,991 | ||||
Northern States Power | ||||||
5.25% 3/1/18 | 307,000 | 312,806 | ||||
NRG Energy 7.375% 2/1/16 | 1,310,000 | 1,287,075 | ||||
Orion Power Holdings | ||||||
12.00% 5/1/10 | 271,000 | 297,423 | ||||
Pacific Gas & Electric | ||||||
5.625% 11/30/17 | 380,000 | 391,094 | ||||
Peco Energy 5.35% 3/1/18 | 230,000 | 233,614 | ||||
#Pedernales Electric | ||||||
Cooperative 144A | ||||||
6.202% 11/15/32 | 620,000 | 590,823 | ||||
Pepco Holdings | ||||||
6.125% 6/1/17 | 233,000 | 238,218 | ||||
Potomac Electric Power | ||||||
6.50% 11/15/37 | 220,000 | 215,509 | ||||
#Power Contract Financing | ||||||
144A 6.256% 2/1/10 | 112,255 | 115,203 | ||||
·PPL Capital Funding | ||||||
6.70% 3/30/67 | 1,555,000 | 1,324,442 | ||||
PSEG Power 5.50% 12/1/15 | 303,000 | 301,015 | ||||
Puget Sound Energy | ||||||
7.69% 2/1/11 | 250,000 | 273,751 | ||||
Southwestern Electric | ||||||
Power 5.875% 3/1/18 | 534,000 | 522,994 | ||||
#Texas Competitive Electric | ||||||
Holdings 144A | ||||||
10.25% 11/1/15 | 2,409,000 | 2,412,010 | ||||
#TXU Australia 144A | ||||||
6.15% 11/15/13 | 375,000 | 391,337 | ||||
Virginia Electric Power | ||||||
5.10% 11/30/12 | 383,000 | 398,362 | ||||
#West Penn Power 144A | ||||||
5.95% 12/15/17 | 219,000 | 227,898 | ||||
Westar Energy | ||||||
5.95% 1/1/35 | 472,000 | 427,741 | ||||
·Wisconsin Energy | ||||||
6.25% 5/15/67 | 1,625,000 | 1,452,411 | ||||
·WPS Resources | ||||||
6.11% 12/1/66 | 1,225,000 | 1,057,676 | ||||
31,604,196 |
46
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Energy – 1.25% | ||||||
Apache 5.25% 4/15/13 | USD | 229,000 | $ | 240,034 | ||
Canadian Natural Resources | ||||||
6.50% 2/15/37 | 630,000 | 625,229 | ||||
6.70% 7/15/11 | 170,000 | 179,672 | ||||
Chesapeake Energy | ||||||
6.375% 6/15/15 | 45,000 | 43,875 | ||||
6.625% 1/15/16 | 552,000 | 543,720 | ||||
Complete Production Service | ||||||
8.00% 12/15/16 | 96,000 | 92,640 | ||||
Compton Petroleum Finance | ||||||
7.625% 12/1/13 | 304,000 | 292,600 | ||||
#Connacher Oil & Gas 144A | ||||||
10.25% 12/15/15 | 105,000 | 106,313 | ||||
EnCana Holdings Finance | ||||||
5.80% 5/1/14 | 280,000 | 296,184 | ||||
Energy Partners | ||||||
9.75% 4/15/14 | 95,000 | 78,850 | ||||
Energy Transfer Partners | ||||||
7.50% 7/1/38 | 325,000 | 326,796 | ||||
Foundation Pennsylvania Coal | ||||||
7.25% 8/1/14 | 253,000 | 251,735 | ||||
Geophysique-Veritas | ||||||
*7.50% 5/15/15 | 32,000 | 32,640 | ||||
7.75% 5/15/17 | 144,000 | 146,880 | ||||
#Helix Energy Solutions | ||||||
Group 144A | ||||||
9.50% 1/15/16 | 183,000 | 183,915 | ||||
#Hilcorp Energy I 144A | ||||||
7.75% 11/1/15 | 102,000 | 96,135 | ||||
9.00% 6/1/16 | 176,000 | 178,200 | ||||
#Key Energy Services 144A | ||||||
8.375% 12/1/14 | 113,000 | 113,283 | ||||
#Lukoil International | ||||||
Finance 144A | ||||||
6.356% 6/7/17 | 380,000 | 352,925 | ||||
Marathon Oil | ||||||
5.90% 3/15/18 | 355,000 | 357,512 | ||||
Mariner Energy | ||||||
8.00% 5/15/17 | 203,000 | 194,880 | ||||
Massey Energy | ||||||
6.875% 12/15/13 | 127,000 | 123,508 | ||||
OPTI Canada | ||||||
7.875% 12/15/14 | 95,000 | 93,338 | ||||
8.25% 12/15/14 | 40,000 | 39,800 | ||||
Petrobras International Finance | ||||||
5.875% 3/1/18 | 455,000 | 440,233 | ||||
PetroHawk Energy | ||||||
9.125% 7/15/13 | 244,000 | 251,930 | ||||
Plains Exploration | ||||||
& Production | ||||||
7.00% 3/15/17 | 200,000 | 193,000 | ||||
#Stallion Oilfield Services 144A | ||||||
9.75% 2/1/15 | 137,000 | 94,530 | ||||
Suncor Energy | ||||||
6.50% 6/15/38 | 206,000 | 203,877 | ||||
#Texas Gas Transmission 144A | ||||||
5.50% 4/1/13 | 1,755,000 | 1,759,123 | ||||
TNK-BP Finance | ||||||
7.875% 3/13/18 | 442,000 | 411,060 | ||||
#TNK-BP Finance 144A | ||||||
7.50% 3/13/13 | 550,000 | 538,313 | ||||
7.875% 3/13/18 | 495,000 | 459,731 | ||||
TransCanada Pipelines | ||||||
6.20% 10/15/37 | 174,000 | 168,329 | ||||
·6.35% 5/15/67 | 1,050,000 | 929,619 | ||||
Weatherford International | ||||||
7.00% 3/15/38 | 275,000 | 280,046 | ||||
Whiting Petroleum | ||||||
7.25% 5/1/13 | 290,000 | 287,100 | ||||
Williams 7.50% 1/15/31 | 350,000 | 366,625 | ||||
XTO Energy 5.30% 6/30/15 | 160,000 | 162,067 | ||||
11,536,247 | ||||||
Finance Companies – 1.90% | ||||||
American General Finance | ||||||
4.875% 7/15/12 | 375,000 | 362,117 | ||||
5.625% 8/17/11 | 900,000 | 901,733 | ||||
6.90% 12/15/17 | 1,900,000 | 1,860,049 | ||||
#Capmark Financial | ||||||
Group 144A | ||||||
6.30% 5/10/17 | 427,000 | 256,404 | ||||
General Electric Capital | ||||||
5.125% 1/28/14 | SEK | 2,500,000 | 422,197 | |||
5.625% 9/15/17 | USD | 322,000 | 330,091 | |||
·5.77% 2/2/11 | NOK | 3,500,000 | 680,309 | |||
5.875% 1/14/38 | USD | 1,139,000 | 1,101,608 | |||
General Electric | ||||||
Capital UK Funding | ||||||
4.625% 1/18/16 | GBP | 226,000 | 413,764 | |||
·Goldman Sachs Capital II | ||||||
5.793% 12/29/49 | USD | 3,328,000 | 2,218,643 | |||
·HSBC Financial | ||||||
4.216% 4/24/10 | CAD | 283,000 | 267,134 | |||
·#ILFC E-Capital Trust II 144A | ||||||
6.25% 12/21/65 | USD | 405,000 | 362,454 | |||
International Lease Finance | ||||||
5.35% 3/1/12 | 423,000 | 416,897 | ||||
5.875% 5/1/13 | 260,000 | 258,177 | ||||
6.375% 3/25/13 | 670,000 | 670,188 | ||||
John Deere Capital | ||||||
5.35% 4/3/18 | 490,000 | 490,000 | ||||
Leucadia National | ||||||
8.125% 9/15/15 | 114,000 | 115,140 | ||||
·w#Mangrove Bay Pass | ||||||
Through Trust 144A | ||||||
6.102% 7/15/33 | 835,000 | 616,512 |
(continues) 47
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Finance Companies (continued) | ||||||
·#SMFG Preferred Capital I | ||||||
144A 6.078% 12/29/49 | USD | 1,570,000 | $ | 1,238,730 | ||
#TIAA Global Markets 144A | ||||||
5.125% 10/10/12 | 885,000 | 916,519 | ||||
Washington Mutual | ||||||
*5.25% 9/15/17 | 335,000 | 253,363 | ||||
5.50% 8/24/11 | 325,000 | 279,707 | ||||
#Xstrata Finance 144A | ||||||
·3.42% 11/13/09 | 260,000 | 252,907 | ||||
5.80% 11/15/16 | 1,001,000 | 968,349 | ||||
6.90% 11/15/37 | 1,125,000 | 1,090,722 | ||||
·#ZFS Finance USA 144A | ||||||
6.50% 5/9/37 | 1,000,000 | 903,930 | ||||
17,647,644 | ||||||
Insurance – 1.44% | ||||||
21st Century Insurance | ||||||
5.90% 12/15/13 | 275,000 | 284,452 | ||||
American International Group | ||||||
5.85% 1/16/18 | 1,555,000 | 1,528,791 | ||||
Berkshire Hathaway Finance | ||||||
4.85% 1/15/15 | 367,000 | 383,065 | ||||
·Everest Reinsurance Holdings | ||||||
6.60% 5/15/37 | 860,000 | 726,046 | ||||
#Farmers Insurance | ||||||
Exchange 144A | ||||||
8.625% 5/1/24 | 610,000 | 645,338 | ||||
FBL Financial Group | ||||||
5.875% 3/15/17 | 720,000 | 648,900 | ||||
#Max USA Holdings 144A | ||||||
7.20% 4/14/17 | 280,000 | 294,490 | ||||
#Metropolitan Life Global | ||||||
Funding I 144A | ||||||
4.25% 7/30/09 | 420,000 | 424,431 | ||||
Montpelier Re Holdings | ||||||
6.125% 8/15/13 | 145,000 | 146,876 | ||||
#NLV Financial 144A | ||||||
6.50% 3/15/35 | 385,000 | 364,271 | ||||
·#Oil Insurance 144A | ||||||
7.558% 12/29/49 | 2,295,000 | 2,007,320 | ||||
·PartnerRe Finance II | ||||||
6.44% 12/1/66 | 1,148,000 | 979,464 | ||||
·#Symetra Financial 144A | ||||||
8.30% 10/15/37 | 515,000 | 485,807 | ||||
Transatlantic Holdings | ||||||
5.75% 12/14/15 | 1,154,000 | 1,207,153 | ||||
·Travelers 6.25% 3/15/37 | 220,000 | 194,364 | ||||
·w#Twin Reefs Pass ThroughTrust | ||||||
144A 4.058% 12/31/49 | 400,000 | 40,500 | ||||
UnitedHealth Group | ||||||
5.50% 11/15/12 | 788,000 | 800,614 | ||||
6.875% 2/15/38 | 377,000 | 361,314 | ||||
Unitrin 6.00% 5/15/17 | 495,000 | 495,224 | ||||
WellPoint | ||||||
5.00% 1/15/11 | 571,000 | 576,688 | ||||
5.00% 12/15/14 | 464,000 | 437,083 | ||||
·#White Mountains | ||||||
Re Group 144A | ||||||
7.506% 5/29/49 | 423,000 | 327,775 | ||||
13,359,966 | ||||||
Natural Gas – 0.78% | ||||||
AmeriGas Partners | ||||||
7.125% 5/20/16 | 190,000 | 187,150 | ||||
CenterPoint Energy Resource | ||||||
6.125% 11/1/17 | 260,000 | 266,033 | ||||
Dynergy Holdings | ||||||
7.75% 6/1/19 | 707,000 | 664,580 | ||||
El Paso | ||||||
*6.875% 6/15/14 | 149,000 | 152,692 | ||||
7.00% 6/15/17 | 140,000 | 144,691 | ||||
#El Paso Performance-Linked | ||||||
Trust 144A | ||||||
7.75% 7/15/11 | 158,000 | 162,335 | ||||
Enterprise Products Operating | ||||||
5.60% 10/15/14 | 433,000 | 433,816 | ||||
5.65% 4/1/13 | 1,475,000 | 1,473,613 | ||||
6.50% 1/31/19 | 516,000 | 515,309 | ||||
7.50% 2/1/11 | 87,000 | 93,517 | ||||
·8.375% 8/1/66 | 352,000 | 343,126 | ||||
Ferrellgas Finance Escrow | ||||||
6.75% 5/1/14 | 281,000 | 275,380 | ||||
Inergy Finance | ||||||
6.875% 12/15/14 | 82,000 | 80,360 | ||||
8.25% 3/1/16 | 96,000 | 98,640 | ||||
Kinder Morgan | ||||||
Energy Partners | ||||||
5.125% 11/15/14 | 275,000 | 270,595 | ||||
Kinder Morgan Finance | ||||||
5.35% 1/5/11 | 47,000 | 46,883 | ||||
Regency Energy Partners | ||||||
8.375% 12/15/13 | 175,000 | 179,375 | ||||
Transocean | ||||||
6.00% 3/15/18 | 318,000 | 327,714 | ||||
6.80% 3/15/38 | 65,000 | 66,616 | ||||
Valero Energy | ||||||
6.125% 6/15/17 | 313,000 | 316,640 | ||||
6.625% 6/15/37 | 1,172,000 | 1,123,784 | ||||
7,222,849 | ||||||
Real Estate – 0.22% | ||||||
*Host Hotels & Resorts | ||||||
7.125% 11/1/13 | 738,000 | 726,929 | ||||
iStar Financial | ||||||
5.15% 3/1/12 | 277,000 | 205,150 | ||||
5.875% 3/15/16 | 449,000 | 314,755 | ||||
Regency Centers | ||||||
5.875% 6/15/17 | 310,000 | 284,406 |
48
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Real Estate (continued) | ||||||
United Dominion | ||||||
Realty Trust | ||||||
3.90% 3/15/10 | USD | 205,000 | $ | 197,181 | ||
·#USB Realty 144A | ||||||
6.091% 12/22/49 | 500,000 | 325,270 | ||||
2,053,691 | ||||||
Technology – 0.52% | ||||||
Broadridge Financial Solutions | ||||||
6.125% 6/1/17 | 860,000 | 808,893 | ||||
#Computer Sciences 144A | ||||||
6.50% 3/15/18 | 560,000 | 569,992 | ||||
Freescale Semiconductor | ||||||
8.875% 12/15/14 | 82,000 | 64,575 | ||||
Hewlett-Packard | ||||||
4.50% 3/1/13 | 1,115,000 | 1,132,393 | ||||
5.50% 3/1/18 | 292,000 | 299,729 | ||||
International Business Machines | ||||||
4.00% 11/11/11 | EUR | 400,000 | 619,918 | |||
Sungard Data Systems | ||||||
*9.125% 8/15/13 | USD | 181,000 | 183,715 | |||
10.25% 8/15/15 | 417,000 | 421,170 | ||||
Xerox 5.50% 5/15/12 | 731,000 | 737,829 | ||||
4,838,214 | ||||||
Transportation – 0.61% | ||||||
Burlington North Santa Fe | ||||||
5.65% 5/1/17 | 355,000 | 356,106 | ||||
5.75% 3/15/18 | 638,000 | 641,093 | ||||
#Erac USA Finance 144A | ||||||
5.80% 10/15/12 | 640,000 | 610,561 | ||||
7.00% 10/15/37 | 2,010,000 | 1,656,883 | ||||
Hertz 8.875% 1/1/14 | 194,000 | 184,785 | ||||
Kansas City Southern | ||||||
de Mexico | ||||||
9.375% 5/1/12 | 360,000 | 373,500 | ||||
Kansas City | ||||||
Southern Railway | ||||||
9.50% 10/1/08 | 93,000 | 94,744 | ||||
‡Northwest Airlines | ||||||
10.00% 2/1/09 | 65,000 | 1,706 | ||||
Red Arrow | ||||||
International Leasing | ||||||
8.375% 3/31/12 | RUB | 36,537,095 | 1,553,960 | |||
Seabulk International | ||||||
9.50% 8/15/13 | USD | 90,000 | 95,288 | |||
Union Pacific | ||||||
5.375% 5/1/14 | 117,000 | 120,578 | ||||
5,689,204 | ||||||
Total Corporate Bonds | ||||||
(cost $210,962,566) | 203,634,740 | |||||
Foreign Agencies – 1.12%D | ||||||
Austria – 0.09% | ||||||
Oesterreichische Kontrollbank | ||||||
1.80% 3/22/10 | JPY | 76,000,000 | 777,570 | |||
777,570 | ||||||
France – 0.04% | ||||||
France Telecom | ||||||
7.75% 3/1/11 | USD | 364,000 | 394,958 | |||
394,958 | ||||||
Germany – 0.77% | ||||||
KFW | ||||||
1.75% 3/23/10 | JPY | 39,000,000 | 399,187 | |||
3.25% 2/15/11 | USD | 1,260,000 | 1,284,173 | |||
3.50% 7/4/21 | EUR | 975,000 | 1,394,181 | |||
4.125% 7/4/17 | EUR | 1,539,000 | 2,417,994 | |||
6.00% 7/15/09 | NZD | 746,000 | 571,175 | |||
Rentenbank | ||||||
1.375% 4/25/13 | JPY | 40,000,000 | 409,637 | |||
3.25% 3/15/13 | USD | 660,000 | 665,017 | |||
7,141,364 | ||||||
Mexico – 0.04% | ||||||
#Pemex Project Funding | ||||||
Master Trust 144A | ||||||
5.75% 3/1/18 | 361,000 | 370,163 | ||||
370,163 | ||||||
Quatar – 0.09% | ||||||
#Ras Laffan Liquefied Natural | ||||||
Gas III 144A | ||||||
5.832% 9/30/16 | 400,000 | 397,910 | ||||
5.838% 9/30/27 | 500,000 | 456,589 | ||||
854,499 | ||||||
Republic of Korea – 0.09% | ||||||
Korea Development Bank | ||||||
5.30% 1/17/13 | 810,000 | 830,809 | ||||
830,809 | ||||||
Total Foreign Agencies | ||||||
(cost $9,534,112) | 10,369,363 | |||||
Municipal Bonds – 2.12% | ||||||
Aruba Airport Authority | ||||||
Series 1997 A | ||||||
7.70% 1/1/13 (MBIA) | 147,000 | 163,336 | ||||
Augusta, Georgia Water & | ||||||
Sewer Revenue | ||||||
5.25% 10/1/39 (FSA) | 260,000 | 263,182 | ||||
Buckeye, Ohio Tobacco | ||||||
Settlement Financing | ||||||
Authority Series A-2 | ||||||
5.875% 6/1/47 | 780,000 | 690,269 | ||||
California State | ||||||
5.00% 2/1/33 | 60,000 | 66,281 | ||||
§5.00% 2/1/33-14 | 5,000 | 4,921 |
(continues) 49
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Municipal Bonds (continued) | ||||||
California State University | ||||||
Systemwide Revenue | ||||||
5.00% 11/1/30 (AMBAC) | USD | 195,000 | $ | 195,915 | ||
Escondido, California | ||||||
Joint Powers Financing | ||||||
Authority Series B | ||||||
5.53% 9/1/18 (FGIC) | 1,940,000 | 2,062,297 | ||||
Escondido, California | ||||||
Revenue (Wastewater | ||||||
Capital Projects) | ||||||
Certificates of | ||||||
Participation Series B | ||||||
5.75% 9/1/25 (MBIA) | 565,000 | 565,718 | ||||
Frisco, Texas Economic | ||||||
Development | ||||||
6.30% 2/15/30 (FSA) | 1,135,000 | 1,180,616 | ||||
La Quinta, California | ||||||
Redevelopment Agency | ||||||
Tax Allocation Project #1 | ||||||
5.45% 9/1/13 (AMBAC) | 560,000 | 595,638 | ||||
6.24% 9/1/23 (AMBAC) | 640,000 | 682,765 | ||||
Los Angeles, California | ||||||
Community Redevelopment | ||||||
Agency Series D | ||||||
5.60% 7/1/18 (MBIA) | 80,000 | 81,746 | ||||
6.02% 9/1/21 (MBIA) | 950,000 | 1,003,504 | ||||
Massachusetts Bay | ||||||
Transportation Authority | ||||||
5.00% 7/1/19 | 315,000 | 343,892 | ||||
Massachusetts Health & | ||||||
Education Facilities | ||||||
Authority Revenue | ||||||
(Harvard) Series A | ||||||
5.00% 7/15/36 | 355,000 | 357,560 | ||||
New Jersey Economic | ||||||
Development Authority | ||||||
Revenue (Cigarette Tax) | ||||||
5.75% 6/15/29 | 100,000 | 98,070 | ||||
New York City Municipal | ||||||
Water Finance | ||||||
Authority Series 2008-A | ||||||
5.00% 6/15/38 | 2,215,000 | 2,214,844 | ||||
New York State Urban | ||||||
Development Income | ||||||
Series A-1 | ||||||
5.25% 3/15/34 (FGIC) | 125,000 | 126,506 | ||||
New York Tobacco | ||||||
Settlement Finance | ||||||
Authority Series B | ||||||
5.00% 6/1/10 | 1,040,000 | 1,078,043 | ||||
North Texas Tollway | ||||||
Authority Refunding | ||||||
Series A | ||||||
5.50% 1/1/18 | 250,000 | 266,285 | ||||
^5.97% 1/1/37 (Assured Gty) | 3,145,000 | 628,497 | ||||
6.00% 1/1/19 | 125,000 | 136,459 | ||||
6.00% 1/1/20 | 630,000 | 682,643 | ||||
Oregon State | ||||||
Taxable Pension | ||||||
5.892% 6/1/27 | 65,000 | 70,976 | ||||
Sacramento County, | ||||||
California Public Finance | ||||||
Authority Revenue | ||||||
(Housing Tax County | ||||||
Project) Series B | ||||||
5.18% 12/1/13 (FGIC) | 105,000 | 109,506 | ||||
San Diego, California | ||||||
Redevelopment Agency | ||||||
Tax Allocation Series C | ||||||
5.81% 9/1/19 (XLCA) | 645,000 | 665,672 | ||||
South Texas Detention Complex | ||||||
Local Development | ||||||
Corporation Revenue | ||||||
4.92% 2/1/14 (MBIA) | 1,150,000 | 1,169,688 | ||||
Texas Transportation | ||||||
Community Mobility | ||||||
5.00% 4/1/19 | 990,000 | 1,070,517 | ||||
Triborough, New York | ||||||
Bridge & Tunnel | ||||||
Authority Series A | ||||||
5.00% 11/15/18 | 545,000 | 596,459 | ||||
5.00% 11/15/19 | 815,000 | 879,719 | ||||
University of Texas Financing | ||||||
Authority Refunding | ||||||
5.25% 8/15/18 | 315,000 | 350,438 | ||||
West Virginia Economic | ||||||
Development Authority | ||||||
5.37% 7/1/20 (MBIA) | 590,000 | 610,756 | ||||
West Virginia | ||||||
Tobacco Settlement | ||||||
Finance Authority | ||||||
7.467% 6/1/47 | 635,000 | 615,163 | ||||
Total Municipal Bonds | ||||||
(cost $19,319,867) | 19,627,881 | |||||
Non-Agency Asset-Backed Securities – 3.26% | ||||||
·Bank of America | ||||||
Credit Card Trust | ||||||
Series 2006-A10 A10 | ||||||
2.798% 2/15/12 | 7,005,000 | 6,910,538 |
50
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Non-Agency Asset-Backed Securities (continued) | ||||||
#Cabela’s Master Credit Card Trust | ||||||
Series 2008-1A A1 144A | ||||||
4.31% 12/16/13 | USD | 715,000 | $ | 717,317 | ||
Capital Auto Receivables | ||||||
Asset Trust | ||||||
Series 2007-3 A3A | ||||||
5.02% 9/15/11 | 790,000 | 805,016 | ||||
Series 2008-1 A3A | ||||||
3.86% 8/15/12 | 1,000,000 | 1,000,383 | ||||
Capital One Multi-Asset | ||||||
Execution Trust | ||||||
Series 2007-A7 A7 | ||||||
5.75% 7/15/20 | 550,000 | 551,952 | ||||
Caterpillar Financial Asset | ||||||
Trust Series 2007-A A3A | ||||||
5.34% 6/25/12 | 200,000 | 203,811 | ||||
Centex Home Equity | ||||||
Series 2002-A AF6 | ||||||
5.54% 1/25/32 | 43,730 | 43,631 | ||||
Chase Manhattan | ||||||
Auto Owner Trust | ||||||
Series 2006-B A4 | ||||||
5.11% 4/15/14 | 2,400,000 | 2,438,120 | ||||
·Citibank Credit Card | ||||||
Issuance Trust | ||||||
Series 2007-A6 A6 | ||||||
4.367% 7/12/12 | 8,000,000 | 7,832,187 | ||||
CNH Equipment Trust | ||||||
Series 2007-B A3A | ||||||
5.40% 10/17/11 | 300,000 | 305,330 | ||||
·Countrywide Asset-Backed | ||||||
Certificates | ||||||
Series 2006-11 1AF6 | ||||||
6.15% 9/25/46 | 1,450,000 | 1,312,659 | ||||
Series 2006-15 A6 | ||||||
5.826% 10/25/46 | 525,000 | 457,747 | ||||
Series 2006-S7 A3 | ||||||
5.712% 11/25/35 | 995,000 | 695,723 | ||||
Discover Card Master Trust | ||||||
Series 2007-A1 A1 | ||||||
5.65% 3/16/20 | 450,000 | 449,276 | ||||
#Dunkin Securitization | ||||||
Series 2006-1 A2 144A | ||||||
5.779% 6/20/31 | 665,000 | 597,330 | ||||
·GMAC Mortgage Loan | ||||||
Trust Series 2006-HE3 | ||||||
A2 5.75% 10/25/36 | 180,000 | 161,213 | ||||
·HSI Asset Securitization | ||||||
Trust Series 2006-HE1 | ||||||
2A1 2.649% 10/25/36 | 1,016,622 | 935,401 | ||||
Hyundai Auto Receivables | ||||||
Trust Series 2007-A A3A | ||||||
5.04% 1/17/12 | 200,000 | 202,540 | ||||
·#MASTR Specialized Loan | ||||||
Trust Series 2005-2 A2 | ||||||
144A 5.006% 7/25/35 | 244,055 | 213,740 | ||||
Mid-State Trust | ||||||
Series 2004-1 A | ||||||
6.005% 8/15/37 | 43,409 | 44,048 | ||||
Series 2005-1 A | ||||||
5.745% 1/15/40 | 222,684 | 211,689 | ||||
#Series 2006-1 A 144A | ||||||
5.787% 10/15/40 | 141,967 | 139,595 | ||||
·Morgan Stanley Asset-Backed | ||||||
Securities Capital I | ||||||
Series 2006-NC4 A2C | ||||||
2.749% 6/25/36 | 2,825,000 | 2,206,974 | ||||
·Residential Asset | ||||||
Mortgage Products | ||||||
Series 2006-RS6 A1 | ||||||
2.669% 11/25/36 | 504,843 | 487,620 | ||||
RSB Bondco Series | ||||||
2007-A A2 | ||||||
5.72% 4/1/18 | 405,000 | 422,198 | ||||
#Securitized Asset | ||||||
Backed NIM Trust | ||||||
Series 2005-FR4 144A | ||||||
6.00% 1/25/36 | 330,313 | 1,893 | ||||
Structured Asset Securities | ||||||
Series 2001-SB1 A2 | ||||||
3.375% 8/25/31 | 108,234 | 91,670 | ||||
·Vanderbilt Mortgage Finance | ||||||
Series 2001-A A4 | ||||||
7.235% 6/7/28 | 135,878 | 139,459 | ||||
WFS Financial Owner | ||||||
Trust Series 2005-1 D | ||||||
4.09% 8/17/12 | 184,486 | 184,280 | ||||
World Omni Auto | ||||||
Receivables Trust | ||||||
Series 2008-A A3A | ||||||
3.94% 10/15/12 | 400,000 | 398,062 | ||||
Total Non-Agency Asset-Backed Securities | ||||||
(cost $32,064,208) | 30,161,402 | |||||
Non-Agency Collateralized Mortgage Obligations – 15.57% | ||||||
·Adjustable Rate | ||||||
Mortgage Trust | ||||||
Series 2005-10 3A11 | ||||||
5.414% 1/25/36 | 671,525 | 573,797 | ||||
Series 2005-10 3A31 | ||||||
5.414% 1/25/36 | 1,145,000 | 869,849 | ||||
Series 2006-2 1A4 | ||||||
5.758% 5/25/36 | 1,440,000 | 1,177,571 | ||||
Bank of America Alternative | ||||||
Loan Trust | ||||||
Series 2003-10 2A1 | ||||||
6.00% 12/25/33 | 17,551 | 16,575 | ||||
Series 2004-2 1A1 | ||||||
6.00% 3/25/34 | 57,914 | 54,692 | ||||
Series 2004-10 1CB1 | ||||||
6.00% 11/25/34 | 209,864 | 198,190 |
(continues) 51
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Non-Agency Collateralized Mortgage Obligations (continued) | ||||||
Bank of America Alternative | ||||||
Loan Trust | ||||||
Series 2004-11 1CB1 | ||||||
6.00% 12/25/34 | USD | 1,886 | $ | 1,763 | ||
Series 2005-3 2A1 | ||||||
5.50% 4/25/20 | 137,424 | 139,314 | ||||
Series 2005-5 2CB1 | ||||||
6.00% 6/25/35 | 311,839 | 315,348 | ||||
Series 2005-6 7A1 | ||||||
5.50% 7/25/20 | 461,626 | 463,069 | ||||
Series 2005-9 5A1 | ||||||
5.50% 10/25/20 | 403,291 | 408,836 | ||||
Bank of America Funding | ||||||
Series 2005-8 1A1 | ||||||
5.50% 1/25/36 | 1,075,735 | 1,077,416 | ||||
Series 2006-5 2A10 | ||||||
5.75% 9/25/36 | 1,150,000 | 1,106,652 | ||||
·Bear Stearns Adjustable | ||||||
Rate Mortgage Trust | ||||||
Series 2006-1 A1 | ||||||
4.625% 2/25/36 | 2,019,461 | 1,907,596 | ||||
Series 2007-3 1A1 | ||||||
5.476% 5/25/47 | 1,290,799 | 1,215,639 | ||||
Series 2007-4 22A1 | ||||||
6.004% 6/25/47 | 3,032,918 | 2,752,339 | ||||
Series 2007-5 3A1 | ||||||
5.981% 8/25/47 | 2,995,004 | 2,693,515 | ||||
Bear Stearns Asset- | ||||||
Backed Securities | ||||||
Series 2005-AC8 A5 | ||||||
5.50% 11/25/35 | 369,752 | 300,508 | ||||
Chase Mortgage Finance | ||||||
Series 2003-S8 A2 | ||||||
5.00% 9/25/18 | 371,080 | 359,587 | ||||
·Series 2005-A1 3A1 | ||||||
5.282% 12/25/35 | 809,161 | 751,213 | ||||
Citicorp Mortgage Securities | ||||||
Series 2004-1 1A1 | ||||||
5.25% 1/25/34 | 1,289,712 | 1,266,707 | ||||
Series 2004-8 1A1 | ||||||
5.50% 10/25/34 | 661,973 | 635,973 | ||||
Series 2006-3 1A4 | ||||||
6.00% 6/25/36 | 785,000 | 717,317 | ||||
Citigroup Mortgage | ||||||
Loan Trust | ||||||
Series 2004-NCM2 | ||||||
1CB2 6.75% 8/25/34 | 209,343 | 216,801 | ||||
·Series 2004-UST1 A6 | ||||||
5.083% 8/25/34 | 1,030,103 | 934,557 | ||||
·Series 2006-AR7 1A4A | ||||||
5.776% 11/25/36 | 3,322,183 | 3,040,278 | ||||
·Series 2007-AR5 1AB | ||||||
5.615% 4/25/37 | 566,169 | 450,627 | ||||
Countrywide Alternative | ||||||
Loan Trust | ||||||
Series 2003-21T1 A2 | ||||||
5.25% 12/25/33 | 723,776 | 687,531 | ||||
Series 2004-1T1 A2 | ||||||
5.50% 2/25/34 | 735,248 | 712,996 | ||||
Series 2004-14T2 A6 | ||||||
5.50% 8/25/34 | 657,786 | 635,905 | ||||
Series 2004-J1 1A1 | ||||||
6.00% 2/25/34 | 20,731 | 19,323 | ||||
Series 2004-J2 7A1 | ||||||
6.00% 12/25/33 | 39,783 | 40,554 | ||||
·Series 2004-J7 1A2 | ||||||
4.673% 8/25/34 | 19,761 | 19,409 | ||||
·Series 2005-63 3A1 | ||||||
5.893% 11/25/35 | 491,895 | 337,965 | ||||
Series 2006-2CB A3 | ||||||
5.50% 3/25/36 | 323,967 | 310,130 | ||||
Series 2006-19CB A15 | ||||||
6.00% 8/25/36 | 1,173,200 | 1,179,696 | ||||
Series 2006-31CB A8 | ||||||
5.75% 11/25/36 | 849,315 | 843,720 | ||||
¨Countrywide Home Loan | ||||||
Mortgage Pass | ||||||
Through Trust | ||||||
·Series 2003-21 A1 | ||||||
4.108% 5/25/33 | 11,423 | 11,225 | ||||
·Series 2004-HYB4 M | ||||||
4.811% 9/20/34 | 223,519 | 213,443 | ||||
Series 2005-29 A1 | ||||||
5.75% 12/25/35 | 1,654,776 | 1,645,468 | ||||
·Series 2005-HYB8 4A1 | ||||||
5.61% 12/20/35 | 16,356 | 11,538 | ||||
Series 2006-1 A2 | ||||||
6.00% 3/25/36 | 375,767 | 374,593 | ||||
Series 2006-1 A3 | ||||||
6.00% 3/25/36 | 129,051 | 127,680 | ||||
Series 2006-17 A5 | ||||||
6.00% 12/25/36 | 339,562 | 340,868 | ||||
·Series 2006-HYB3 3A1A | ||||||
6.095% 5/20/36 | 506,937 | 393,925 | ||||
·Series 2006-HYB4 1A2 | ||||||
5.634% 6/20/36 | 14,543 | 12,038 | ||||
·Series 2007-HY1 1A1 | ||||||
5.691% 4/25/37 | 2,011,457 | 1,903,724 | ||||
Credit Suisse First Boston | ||||||
Mortgage Securities | ||||||
Series 2003-29 5A1 | ||||||
7.00% 12/25/33 | 10,556 | 10,015 | ||||
Series 2004-1 3A1 | ||||||
7.00% 2/25/34 | 5,506 | 5,733 | ||||
Credit Suisse Mortgage | ||||||
Capital Certificates | ||||||
Series 2006-9 3A1 | ||||||
6.00% 11/25/36 | 45,590 | 44,878 | ||||
Series 2007-1 5A14 | ||||||
6.00% 2/25/37 | 1,734,274 | 1,694,394 |
52
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Non-Agency Collateralized Mortgage Obligations (continued) | ||||||
Credit Suisse Mortgage Capital | ||||||
Certificates | ||||||
Series 2007-3 4A15 | ||||||
5.50% 4/25/37 | USD | 1,694,130 | $ | 1,599,884 | ||
Series 2007-5 3A19 | ||||||
6.00% 8/25/37 | 1,984,668 | 1,953,658 | ||||
Series 2007-5 10A2 | ||||||
6.00% 4/25/29 | 993,888 | 978,359 | ||||
·#Deutsche Mortgage Securities | ||||||
Series 2005-WF1 1A3 144A | ||||||
5.078% 6/26/35 | 1,720,000 | 1,450,574 | ||||
·First Horizon Asset Securities | ||||||
Series 2004-AR5 4A1 | ||||||
5.70% 10/25/34 | 11,509 | 10,545 | ||||
Series 2005-AR2 2A1 | ||||||
5.115% 6/25/35 | 794,671 | 767,890 | ||||
Series 2007-AR1 1A1 | ||||||
5.857% 5/25/37 | 2,086,283 | 1,970,493 | ||||
Series 2007-AR2 1A1 | ||||||
5.854% 8/25/37 | 292,289 | 288,270 | ||||
Series 2007-AR3 2A2 | ||||||
6.31% 11/25/37 | 1,360,038 | 1,266,496 | ||||
GMAC Mortgage Loan Trust | ||||||
·Series 2005-AR2 4A | ||||||
5.182% 5/25/35 | 473,448 | 422,201 | ||||
Series 2006-J1 A1 | ||||||
5.75% 4/25/36 | 1,841,872 | 1,842,897 | ||||
#GSMPS Mortgage Loan | ||||||
Trust 144A | ||||||
·Series 1998-3 A | ||||||
7.75% 9/19/27 | 25,697 | 28,529 | ||||
·Series 1999-3 A | ||||||
8.00% 8/19/29 | 39,281 | 43,561 | ||||
Series 2005-RP1 1A3 | ||||||
8.00% 1/25/35 | 354,719 | 394,912 | ||||
Series 2005-RP1 1A4 | ||||||
8.50% 1/25/35 | 157,722 | 180,221 | ||||
Series 2006-RP1 1A2 | ||||||
7.50% 1/25/36 | 411,315 | 443,285 | ||||
GSR Mortgage Loan Trust | ||||||
Series 2006-1F 5A2 | ||||||
6.00% 2/25/36 | 187,517 | 188,338 | ||||
·Series 2006-AR1 3A1 | ||||||
5.386% 1/25/36 | 354,998 | 330,354 | ||||
·Series 2007-AR1 2A1 | ||||||
5.999% 3/25/37 | 4,437,416 | 4,220,333 | ||||
·Series 2007-AR2 1A1 | ||||||
5.787% 5/25/47 | 1,146,974 | 1,086,983 | ||||
·Series 2007-AR2 2A1 | ||||||
5.51% 5/25/47 | 1,096,855 | 1,057,348 | ||||
·Indymac Index Mortgage | ||||||
Loan Trust | ||||||
Series 2006-AR1 A1 | ||||||
5.94% 8/25/36 | 1,162,988 | 1,070,938 | ||||
Series 2006-AR3 1A1 | ||||||
5.343% 12/25/36 | 2,242,525 | 2,114,066 | ||||
Series 2007-AR1 1A2 | ||||||
5.746% 3/25/37 | 2,385,465 | 2,270,297 | ||||
·JPMorgan Mortgage Trust | ||||||
Series 2005-A1 4A1 | ||||||
4.777% 2/25/35 | 23,857 | 21,763 | ||||
Series 2005-A4 1A1 | ||||||
5.40% 7/25/35 | 313,864 | 281,509 | ||||
Series 2005-A6 1A2 | ||||||
5.138% 9/25/35 | 720,000 | 631,447 | ||||
Series 2005-A8 2A1 | ||||||
4.949% 11/25/35 | 1,286,194 | 1,249,569 | ||||
Series 2006-A2 2A4 | ||||||
5.747% 4/25/36 | 2,025,000 | 1,660,957 | ||||
Series 2006-A6 2A4L | ||||||
5.562% 10/25/36 | 1,590,000 | 1,284,866 | ||||
Series 2006-A7 2A2 | ||||||
5.819% 1/25/37 | 1,392,989 | 1,360,550 | ||||
Series 2007-A1 6A1 | ||||||
4.777% 7/25/35 | 2,632,750 | 2,459,015 | ||||
Lehman Mortgage Trust | ||||||
Series 2005-2 2A3 | ||||||
5.50% 12/25/35 | 327,624 | 322,533 | ||||
Series 2006-1 3A3 | ||||||
5.50% 2/25/36 | 30,311 | 30,125 | ||||
·MASTR Adjustable Rate | ||||||
Mortgages Trust | ||||||
Series 2003-6 1A2 | ||||||
6.79% 12/25/33 | 8,707 | 9,046 | ||||
Series 2005-6 7A1 | ||||||
5.335% 6/25/35 | 198,406 | 178,191 | ||||
Series 2006-2 4A1 | ||||||
4.988% 2/25/36 | 87,739 | 80,547 | ||||
MASTR Alternative Loans Trust | ||||||
Series 2003-6 3A1 | ||||||
8.00% 9/25/33 | 14,283 | 15,045 | ||||
Series 2003-9 1A1 | ||||||
5.50% 12/25/18 | 14,451 | 14,496 | ||||
Series 2004-3 8A1 | ||||||
7.00% 4/25/34 | 11,988 | 12,238 | ||||
Series 2004-5 6A1 | ||||||
7.00% 6/25/34 | 175,971 | 176,604 | ||||
MASTR Asset Securitization Trust | ||||||
Series 2003-9 2A7 | ||||||
5.50% 10/25/33 | 519,323 | 519,647 | ||||
Series 2004-4 2A1 | ||||||
5.00% 4/25/34 | 866,043 | 855,575 | ||||
#MASTR Reperforming Loan | ||||||
Trust 144A | ||||||
Series 2005-1 1A5 | ||||||
8.00% 8/25/34 | 157,431 | 174,867 | ||||
Series 2005-2 1A4 | ||||||
8.00% 5/25/35 | 472,316 | 497,290 | ||||
·Merrill Lynch Mortgage | ||||||
Investors | ||||||
Series 2005-A5 A2 | ||||||
4.566% 6/25/35 | 460,000 | 430,003 | ||||
Series 2005-A9 2A1C | ||||||
5.135% 12/25/35 | 2,435,000 | 2,203,297 |
(continues) 53
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Non-Agency Collateralized Mortgage Obligations (continued) | ||||||
Morgan Stanley Mortgage | ||||||
Loan Trust | ||||||
Series 2006-2 6A | ||||||
6.50% 2/25/36 | USD | 218,612 | $ | 193,609 | ||
Prime Mortgage Trust | ||||||
Series 2004-CL1 1A1 | ||||||
6.00% 2/25/34 | 40,443 | 36,171 | ||||
Residential Accredit Loans | ||||||
Series 2004-QS2 CB | ||||||
5.75% 2/25/34 | 121,324 | 114,575 | ||||
Series 2006-QS18 3A1 | ||||||
5.75% 12/25/21 | 2,175,345 | 2,056,643 | ||||
Residential Asset | ||||||
Mortgage Products | ||||||
Series 2004-SL1 A3 | ||||||
7.00% 11/25/31 | 6,114 | 6,284 | ||||
Series 2004-SL4 A3 | ||||||
6.50% 7/25/32 | 84,167 | 78,745 | ||||
Series 2005-SL1 A2 | ||||||
6.00% 5/25/32 | 186,205 | 185,158 | ||||
Residential Funding | ||||||
Mortgage Securities I | ||||||
Series 2004-S9 2A1 | ||||||
4.75% 12/25/19 | 2,351,068 | 2,353,273 | ||||
·Series 2006-SA3 3A1 | ||||||
6.038% 9/25/36 | 448,419 | 421,759 | ||||
·Series 2007-SA1 2A2 | ||||||
5.619% 2/25/37 | 2,121,153 | 2,008,219 | ||||
·Sequoia Mortgage Trust | ||||||
Series 2007-1 4A1 | ||||||
5.772% 9/20/46 | 3,295,814 | 3,046,069 | ||||
·Structured Adjustable Rate | ||||||
Mortgage Loan Trust | ||||||
Series 2004-18 5A | ||||||
5.50% 12/25/34 | 115,969 | 104,620 | ||||
Series 2005-18 1A1 | ||||||
5.653% 9/25/35 | 739,168 | 578,549 | ||||
Series 2005-21 6A3 | ||||||
5.40% 11/25/35 | 1,065,000 | 752,618 | ||||
Series 2005-21 7A1 | ||||||
6.026% 11/25/35 | 2,969,613 | 2,168,229 | ||||
Series 2005-22 1A4 | ||||||
5.25% 12/25/35 | 2,120,000 | 1,781,694 | ||||
Series 2006-1 7A4 | ||||||
5.62% 2/25/36 | 1,305,000 | 956,084 | ||||
Structured Asset Securities | ||||||
·Series 2002-22H 1A | ||||||
6.938% 11/25/32 | 14,643 | 14,266 | ||||
Series 2004-5H A2 | ||||||
4.43% 12/25/33 | 70,332 | 70,246 | ||||
Series 2004-12H 1A | ||||||
6.00% 5/25/34 | 131,585 | 134,175 | ||||
Series 2005-6 4A1 | ||||||
5.00% 5/25/35 | 558,098 | 468,628 | ||||
¨Washington Mutual | ||||||
Alternative Mortgage | ||||||
Pass Through | ||||||
Certificates | ||||||
Series 2005-1 5A2 | ||||||
6.00% 3/25/35 | 107,150 | 108,925 | ||||
Series 2005-9 3CB | ||||||
5.50% 10/25/20 | 456,513 | 462,790 | ||||
Series 2006-5 2CB3 | ||||||
6.00% 7/25/36 | 476,827 | 466,777 | ||||
¨Washington Mutual | ||||||
Mortgage Pass | ||||||
Through Certificates | ||||||
Series 2002-S8 2A1 | ||||||
4.50% 1/25/18 | 10,267 | 10,258 | ||||
Series 2004-CB3 1A | ||||||
6.00% 10/25/34 | 202,826 | 198,642 | ||||
Series 2004-CB3 4A | ||||||
6.00% 10/25/19 | 97,021 | 99,203 | ||||
·Series 2005-AR16 1A3 | ||||||
5.102% 12/25/35 | 1,225,000 | 1,102,443 | ||||
·Series 2005-AR18 1A3A | ||||||
5.256% 1/25/36 | 2,200,000 | 2,005,118 | ||||
·Series 2006-AR10 1A1 | ||||||
5.940% 9/25/36 | 422,344 | 405,277 | ||||
·Series 2006-AR14 1A4 | ||||||
5.648% 11/25/36 | 94,916 | 90,012 | ||||
·Series 2006-AR14 2A1 | ||||||
5.76% 11/25/36 | 2,773,117 | 2,557,395 | ||||
·Series 2006-AR16 1A1 | ||||||
5.606% 12/25/36 | 1,829,697 | 1,731,887 | ||||
·Series 2006-AR18 2A2 | ||||||
5.495% 1/25/37 | 1,670,000 | 1,312,382 | ||||
·Series 2007-HY1 1A1 | ||||||
5.714% 2/25/37 | 1,110,881 | 1,052,770 | ||||
·Series 2007-HY2 1A1 | ||||||
5.625% 12/25/36 | 3,958,090 | 3,785,880 | ||||
·Series 2007-HY2 3A1 | ||||||
5.942% 9/25/36 | 21,930 | 20,602 | ||||
·Series 2007-HY3 4A1 | ||||||
5.349% 3/25/37 | 3,741,231 | 3,531,254 | ||||
·Series 2007-HY4 1A1 | ||||||
5.551% 4/25/37 | 3,263,612 | 3,078,108 | ||||
·Series 2007-HY6 2A2 | ||||||
5.285% 6/25/37 | 999,022 | 907,937 | ||||
·Series 2007-HY7 4A1 | ||||||
5.876% 7/25/37 | 2,865,661 | 2,569,744 | ||||
Wells Fargo Mortgage- | ||||||
Backed Securities Trust | ||||||
·Series 2004-E A2 | ||||||
4.50% 5/25/34 | 15,462 | 15,368 | ||||
·Series 2004-O A1 | ||||||
4.889% 8/25/34 | 2,089,348 | 1,902,524 | ||||
·Series 2004-T A1 | ||||||
6.13% 9/25/34 | 77,905 | 77,902 | ||||
Series 2005-12 1A7 | ||||||
5.50% 11/25/35 | 615,328 | 605,713 |
54
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Non-Agency Collateralized Mortgage Obligations (continued) | ||||||
Wells Fargo Mortgage- | ||||||
Backed Securities Trust | ||||||
Series 2005-17 1A2 | ||||||
5.50% 1/25/36 | USD | 490,248 | $ | 482,588 | ||
Series 2005-18 1A1 | ||||||
5.50% 1/25/36 | 89,152 | 87,759 | ||||
·Series 2005-AR13 A1 | ||||||
5.309% 5/25/35 | 1,689,000 | 1,464,875 | ||||
·Series 2005-AR16 4A2 | ||||||
4.992% 10/25/35 | 2,140,000 | 1,957,083 | ||||
·Series 2005-AR16 6A4 | ||||||
5.00% 10/25/35 | 1,044,104 | 985,078 | ||||
Series 2006-1 A3 | ||||||
5.00% 3/25/21 | 647,217 | 629,216 | ||||
Series 2006-2 3A1 | ||||||
5.75% 3/25/36 | 515,517 | 486,741 | ||||
Series 2006-3 A1 | ||||||
5.50% 3/25/36 | 1,103,835 | 1,097,972 | ||||
Series 2006-3 A11 | ||||||
5.50% 3/25/36 | 1,178,000 | 1,042,149 | ||||
Series 2006-4 2A3 | ||||||
5.75% 4/25/36 | 208,067 | 212,924 | ||||
Series 2006-6 1A3 | ||||||
5.75% 5/25/36 | 1,319,496 | 1,319,587 | ||||
·Series 2006-AR5 2A1 | ||||||
5.537% 4/25/36 | 279,480 | 267,329 | ||||
·Series 2006-AR6 7A1 | ||||||
5.111% 3/25/36 | 2,319,163 | 2,062,649 | ||||
·Series 2006-AR10 5A6 | ||||||
5.597% 7/25/36 | 2,388,718 | 2,277,854 | ||||
·Series 2006-AR11 A6 | ||||||
5.517% 8/25/36 | 2,330,000 | 1,845,459 | ||||
·Series 2006-AR14 2A4 | ||||||
6.09% 10/25/36 | 307,528 | 299,770 | ||||
·Series 2006-AR17 A1 | ||||||
5.337% 10/25/36 | 2,944,974 | 2,792,336 | ||||
·Series 2006-AR18 2A2 | ||||||
5.717% 11/25/36 | 922,047 | 895,346 | ||||
·Series 2006-AR19 A1 | ||||||
5.643% 12/25/36 | 1,124,584 | 1,010,038 | ||||
Series 2007-8 2A6 | ||||||
6.00% 7/25/37 | 190,000 | 177,748 | ||||
Series 2007-13 A7 | ||||||
6.00% 9/25/37 | 675,055 | 667,882 | ||||
Series 2007-13 A9 | ||||||
6.00% 9/25/37 | 1,053,277 | 903,844 | ||||
Total Non-Agency Collateralized | ||||||
Mortgage Obligations | ||||||
(cost $154,962,530) | 144,266,844 | |||||
Regional Agencies – 0.28%D | ||||||
Australia – 0.28% | ||||||
New South Wales Treasury | ||||||
6.00% 5/1/12 | AUD | 830,000 | 735,534 | |||
Queensland Treasury | ||||||
6.00% 8/14/13 | AUD | 2,125,000 | 1,879,067 | |||
Total Regional Agencies | ||||||
(cost $2,473,386) | 2,614,601 | |||||
Regional Authorities – 0.26%D | ||||||
Canada – 0.26% | ||||||
Ontario Province | ||||||
1.875% 1/25/10 | JPY | 21,000,000 | 214,931 | |||
*2.75% 2/22/11 | USD | 1,650,000 | 1,652,204 | |||
Quebec Province | ||||||
4.50% 12/1/17 | CAD | 521,000 | 517,467 | |||
Total Regional Authorities | ||||||
(cost $2,342,739) | 2,384,602 | |||||
«Senior Secured Loans – 0.61% | ||||||
ALLTEL 5.57% 5/18/15 | USD | 109,725 | 99,438 | |||
Community Health Systems | ||||||
Term B 5.335% 7/2/14 | 381,077 | 352,462 | ||||
Term DD 1.000% 7/25/14 | 25,986 | 24,035 | ||||
Energy Futures Holdings | ||||||
6.47% 10/10/14 | 379,050 | 344,735 | ||||
Ford Motor | ||||||
5.80% 11/29/13 | 1,204,394 | 991,572 | ||||
Freescale Semiconductor | ||||||
4.87% 12/1/13 | 104,472 | 88,569 | ||||
General Motors | ||||||
7.056% 11/17/13 | 224,433 | 197,557 | ||||
Georgia Pacific Term | ||||||
Tranche Loan B | ||||||
4.690% 12/20/12 | 199,746 | 186,096 | ||||
Goodyear Tire & | ||||||
Rubber 2nd Lien | ||||||
6.43% 4/30/14 | 125,000 | 112,688 | ||||
HealthSouth Term B | ||||||
5.499% 3/10/13 | 629,673 | 583,234 | ||||
Idearc 4.696% 11/1/14 | 395,496 | 318,325 | ||||
Jarden 4.463% 1/24/12 | 114,116 | 106,722 | ||||
MacDermid Term Loan B | ||||||
4.69% 4/12/14 | 88,025 | 75,701 | ||||
Northwest Airlines | ||||||
4.87% 8/21/13 | 100,000 | 82,063 | ||||
Talecris Biotherapeutics | ||||||
2nd Lien | ||||||
9.568% 12/6/14 | 480,000 | 390,000 | ||||
Windstream Term Loan B | ||||||
5.497% 7/17/13 | 1,797,843 | 1,733,794 | ||||
Total Senior Secured Loans | ||||||
(cost $6,109,900) | 5,686,991 |
(continues) 55
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Sovereign Agencies – 0.10%D | ||||||
Canada – 0.04% | ||||||
Export Development | ||||||
Canada | ||||||
2.625% 3/15/11 | USD | 430,000 | $ | 434,440 | ||
434,440 | ||||||
Norway – 0.06% | ||||||
Kommunalbanken | ||||||
4.25% 10/24/11 | NOK | 2,750,000 | 528,885 | |||
528,885 | ||||||
Total Sovereign Agencies | ||||||
(cost $869,624) | 963,325 | |||||
Sovereign Debt – 7.09%D | ||||||
Argentina – 0.14% | ||||||
*Republic of Argentina | ||||||
8.28% 12/31/33 | USD | 1,565,488 | 1,287,614 | |||
1,287,614 | ||||||
Austria – 0.28% | ||||||
Republic of Austria | ||||||
5.25% 1/4/11 | EUR | 468,000 | 768,695 | |||
#Republic of Austria 144A | ||||||
4.00% 9/15/16 | EUR | 1,156,000 | 1,822,584 | |||
2,591,279 | ||||||
Brazil – 0.81% | ||||||
Federal Republic of Brazil | ||||||
10.25% 1/10/28 | BRL | 765,000 | 407,216 | |||
*11.00% 8/17/40 | USD | 5,277,000 | 7,072,499 | |||
7,479,715 | ||||||
Canada – 0.14% | ||||||
Canadian Government | ||||||
3.75% 6/1/12 | CAD | 880,000 | 885,573 | |||
4.00% 6/1/17 | CAD | 370,000 | 376,686 | |||
1,262,259 | ||||||
Colombia – 0.27% | ||||||
Republic of Colombia | ||||||
7.375% 1/27/17 | USD | 695,000 | 770,408 | |||
8.25% 12/22/14 | USD | 480,000 | 559,200 | |||
12.00% 10/22/15 | COP | 2,047,000,000 | 1,174,829 | |||
2,504,437 | ||||||
Finland – 0.01% | ||||||
Republic of Finland | ||||||
4.75% 2/21/12 | NOK | 290,000 | 57,012 | |||
57,012 | ||||||
France – 0.23% | ||||||
France Government O.A.T. | ||||||
4.00% 10/25/38 | EUR | 747,000 | 1,053,727 | |||
4.00% 4/25/55 | EUR | 769,000 | 1,071,480 | |||
2,125,207 | ||||||
Germany – 0.89% | ||||||
Bundesobligation | ||||||
4.25% 10/12/12 | EUR | 2,573,300 | 4,170,031 | |||
Deutschland Republic | ||||||
4.00% 1/4/18 | EUR | 1,218,200 | 1,938,645 | |||
Deutschland Republic | ||||||
4.25% 7/4/17 | EUR | 314,000 | 509,546 | |||
6.25% 1/4/24 | EUR | 851,000 | 1,624,501 | |||
8,242,723 | ||||||
Indonesia – 0.56% | ||||||
Republic of Indonesia | ||||||
8.50% 10/12/35 | USD | 1,360,000 | 1,545,330 | |||
10.00% 9/17/24 | IDR | 2,400,000,000 | 222,084 | |||
10.25% 7/15/22 | IDR | 4,262,000,000 | 407,809 | |||
10.25% 7/15/27 | IDR | 13,477,000,000 | 1,256,860 | |||
11.00% 12/15/12 | IDR | 16,040,000,000 | 1,781,006 | |||
5,213,089 | ||||||
Japan – 0.59% | ||||||
Japan Government | ||||||
5 yr Bond | ||||||
1.10% 12/20/12 | JPY | 19,100,000 | 194,899 | |||
5 yr Bond | ||||||
1.50% 6/20/11 | JPY | 180,400,000 | 1,856,884 | |||
10 yr Bond | ||||||
1.70% 3/20/17 | JPY | 5,050,000 | 53,000 | |||
20 yr Bond | ||||||
2.30% 6/20/26 | JPY | 263,900,000 | 2,761,947 | |||
30 yr Bond | ||||||
2.40% 3/20/37 | JPY | 58,850,000 | 593,343 | |||
5,460,073 | ||||||
Malaysia – 0.23% | ||||||
Malaysian Government | ||||||
3.718% 6/15/12 | MYR | 1,930,000 | 609,258 | |||
3.756% 4/28/11 | MYR | 2,182,000 | 688,542 | |||
3.814% 2/15/17 | MYR | 200,000 | 62,551 | |||
3.833% 9/28/11 | MYR | 1,370,000 | 433,760 | |||
7.00% 3/15/09 | MYR | 1,009,000 | 326,050 | |||
2,120,161 | ||||||
Mexico – 0.95% | ||||||
Mexican Government | ||||||
*5.625% 1/15/17 | USD | 2,180,000 | 2,296,631 | |||
6.05% 1/11/40 | USD | 878,000 | 880,195 | |||
7.25% 12/15/16 | MXN | 24,230,000 | 2,254,636 | |||
8.00% 12/17/15 | MXN | 19,015,000 | 1,847,541 | |||
9.00% 12/20/12 | MXN | 3,387,400 | 339,138 | |||
10.00% 12/5/24 | MXN | 795,000 | 92,188 | |||
10.00% 11/20/36 | MXN | 8,790,000 | 1,057,938 | |||
8,768,267 | ||||||
Norway – 0.11% | ||||||
Norwegian Government | ||||||
6.50% 5/15/13 | NOK | 4,624,000 | 996,641 | |||
996,641 | ||||||
Philippines – 0.23% | ||||||
*Philippines Government | ||||||
6.375% 1/15/32 | USD | 2,192,000 | 2,126,240 | |||
2,126,240 |
56
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Sovereign Debt (continued) | ||||||
Poland – 0.23% | ||||||
Poland Government | ||||||
4.75% 4/25/12 | PLN | 2,897,000 | $ | 1,236,174 | ||
5.25% 10/25/17 | PLN | 972,000 | 415,131 | |||
6.25% 10/24/15 | PLN | 1,154,000 | 524,826 | |||
2,176,131 | ||||||
Republic of Korea – 0.03% | ||||||
Government of South | ||||||
Korea 4.25% 12/7/21 | EUR | 220,000 | 303,774 | |||
303,774 | ||||||
Russia – 0.48% | ||||||
Russia Government | ||||||
7.50% 3/31/30 | USD | 3,882,420 | 4,477,145 | |||
4,477,145 | ||||||
Turkey – 0.25% | ||||||
Republic of Turkey | ||||||
7.25% 3/5/38 | USD | 2,460,000 | 2,343,150 | |||
2,343,150 | ||||||
Ukraine – 0.03% | ||||||
#Ukraine Government 144A | ||||||
6.75% 11/14/17 | USD | 332,000 | 327,518 | |||
327,518 | ||||||
United Arabic Emirates – 0.14% | ||||||
#Emirate of Abu Dhabi 144A | ||||||
5.50% 8/2/12 | USD | 1,200,000 | 1,295,953 | |||
1,295,953 | ||||||
United Kingdom – 0.49% | ||||||
#CS International for City | ||||||
of Kyiv Ukraine 144A | ||||||
8.25% 11/26/12 | USD | 181,000 | 183,806 | |||
U.K. Treasury | ||||||
4.25% 3/7/11 | GBP | 715,000 | 1,433,474 | |||
4.75% 9/7/15 | GBP | 238,000 | 491,316 | |||
5.00% 3/7/12 | GBP | 822,000 | 1,697,737 | |||
5.00% 3/7/18 | GBP | 143,700 | 300,129 | |||
5.25% 6/7/12 | GBP | 18,000 | 37,515 | |||
9.00% 7/12/11 | GBP | 188,000 | 430,965 | |||
4,574,942 | ||||||
Total Sovereign Debt | ||||||
(cost $62,953,131) | 65,733,330 | |||||
Supranational Banks – 1.56% | ||||||
Asia Development Bank | ||||||
0.50% 10/9/12 | AUD | 467,000 | 318,555 | |||
4.75% 6/15/17 | CAD | 497,000 | 507,652 | |||
Corp Andina de Fomento | ||||||
5.75% 1/12/17 | USD | 900,000 | 881,429 | |||
European Bank for | ||||||
Reconstruction | ||||||
& Development | ||||||
12.50% 3/23/09 | ISK | 58,400,000 | 768,032 | |||
European Investment Bank | ||||||
1.40% 6/20/17 | JPY | 100,100,000 | 1,020,595 | |||
*2.875% 3/15/13 | USD | 1,035,000 | 1,026,585 | |||
3.25% 2/15/11 | USD | 655,000 | 669,939 | |||
European Investment Bank | ||||||
4.25% 12/7/10 | GBP | 395,000 | 778,275 | |||
4.75% 10/15/17 | EUR | 684,000 | 1,123,558 | |||
6.00% 7/15/09 | NZD | 542,000 | 414,982 | |||
11.25% 2/14/13 | BRL | 2,500,000 | 1,430,907 | |||
Inter-American | ||||||
Development Bank | ||||||
7.25% 5/24/12 | NZD | 2,233,000 | 1,738,259 | |||
9.00% 8/6/10 | BRL | 740,000 | 406,547 | |||
13.00% 6/20/08 | ISK | 105,100,000 | 1,389,310 | |||
International Bank | ||||||
for Reconstruction | ||||||
& Development | ||||||
5.75% 6/25/10 | RUB | 11,000,000 | 461,580 | |||
Nordic Investment Bank | ||||||
1.70% 4/27/17 | JPY | 60,000,000 | 626,747 | |||
4.625% 7/30/10 | NOK | 4,790,000 | 922,823 | |||
Total Supranational Banks | ||||||
(cost $13,927,960) | 14,485,775 | |||||
U.S. Treasury Obligations – 4.43% | ||||||
U.S. Treasury Bonds | ||||||
*4.75% 2/15/37 | USD | 12,441,000 | 13,384,775 | |||
¥*5.00% 5/15/37 | 670,000 | 749,720 | ||||
U.S. Treasury Inflation | ||||||
Indexed Notes | ||||||
¥3.00% 7/15/12 | 774,695 | 868,506 | ||||
3.875% 1/15/09 | 302,414 | 313,448 | ||||
U.S. Treasury Notes | ||||||
2.50% 3/31/13 | 3,328,000 | 3,333,980 | ||||
*3.50% 2/15/18 | 8,440,000 | 8,491,433 | ||||
*4.875% 8/31/08 | 4,735,000 | 4,803,070 | ||||
*4.875% 4/30/11 | 8,330,000 | 9,078,401 | ||||
Total U.S. Treasury Obligations | ||||||
(cost $40,781,857) | 41,023,333 | |||||
Number of | ||||||
Shares | ||||||
Common Stock – 0.02% | ||||||
†Century Communications | 1,975,000 | 1,284 | ||||
†Mirant | 121 | 4,403 | ||||
†Northwest Airlines | 236 | 2,122 | ||||
†=@pPort Townsend | 295 | 184,079 | ||||
†Time Warner Cable Class A | 5 | 125 | ||||
Total Common Stock | ||||||
(cost $259,047) | 192,013 | |||||
Convertible Preferred Stock – 0.13% | ||||||
·Citigroup Funding | ||||||
5.063% exercise price | ||||||
$29.50, expiration date | ||||||
9/27/08 | 19,900 | 459,292 |
(continues) 57
Statements of net assets
Optimum Fixed Income Fund
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
Convertible Preferred Stock (continued) | ||||||||
General Motors | ||||||||
5.25% exercise price | ||||||||
$64.90, expiration date | ||||||||
3/6/32 | 5,875 | $ | 95,351 | |||||
New York Community | ||||||||
Capital Trust V | ||||||||
6.00% exercise price | ||||||||
$20.04, expiration date | ||||||||
11/1/51 | 13,000 | 617,500 | ||||||
Total Convertible Preferred Stock | ||||||||
(cost $1,341,183) | 1,172,143 | |||||||
Preferred Stock – 0.02% | ||||||||
Arch Capital Group 8.00% | 5,809 | 148,246 | ||||||
=@pPort Townsend | 59 | 58,410 | ||||||
Total Preferred Stock | ||||||||
(cost $204,951) | 206,656 | |||||||
Warrant – 0.00% | ||||||||
†=@pPort Townsend | 59 | 1,416 | ||||||
Total Warrant (cost $1,416) | 1,416 | |||||||
Principal | ||||||||
Amount° | ||||||||
Repurchase Agreement** – 7.05% | ||||||||
BNP Paribas 1.55%, | ||||||||
dated 3/31/08, to | ||||||||
be repurchased on | ||||||||
4/1/08, repurchase | ||||||||
price $65,364,814 | ||||||||
(collateralized by U.S. | ||||||||
Government obligations, | ||||||||
ranging in par value | ||||||||
$3,704,000- | ||||||||
$52,054,000, | ||||||||
4.125%-6.50%, | ||||||||
8/15/08-2/15/10; | ||||||||
with total market value | ||||||||
$66,744,272) | USD | 65,362,000 | 65,362,000 | |||||
Total Repurchase Agreement | ||||||||
(cost $65,362,000) | 65,362,000 | |||||||
Total Value of Securities Before | ||||||||
Securities Lending Collateral – 101.65% | ||||||||
(cost $954,755,284) | 942,080,477 | |||||||
Number of | ||||||||
Shares | ||||||||
Securities Lending Collateral*** – 11.32% | ||||||||
Investment Companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 104,887,587 | 104,887,587 | ||||||
Total Securities Lending Collateral | ||||||||
(cost $104,887,587) | 104,887,587 | |||||||
Total Value of Securities – 112.97% | ||||||||
(cost $1,059,642,871) | 1,046,968,064 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (11.32%) | (104,887,587 | ) | ||||||
Liabilities Net of Receivables | ||||||||
and Other Assets – (1.65%) | (15,302,635 | ) | ||||||
Net Assets Applicable to 103,851,431 | ||||||||
Shares Outstanding – 100.00% | $ | 926,777,842 | ||||||
Net Asset Value – Optimum Fixed Income Fund | ||||||||
Class A ($63,262,251 / 7,087,859 Shares) | $8.93 | |||||||
Net Asset Value – Optimum Fixed Income Fund | ||||||||
Class B ($8,787,909 / 983,822 Shares) | $8.93 | |||||||
Net Asset Value – Optimum Fixed Income Fund | ||||||||
Class C ($257,340,141 / 28,800,430 Shares) | $8.94 | |||||||
Net Asset Value – Optimum Fixed Income Fund | ||||||||
Institutional Class ($597,387,541 / 66,979,320 Shares) | $8.92 | |||||||
Components of Net Assets at March 31, 2008: | ||||||||
Shares of beneficial interest | ||||||||
(unlimited authorization – no par) | $928,098,811 | |||||||
Undistributed net investment income | 8,266,779 | |||||||
Accumulated net realized gain on investments | 1,532,702 | |||||||
Net unrealized depreciation of investments and | ||||||||
foreign currencies | (11,120,450 | ) | ||||||
Total net assets | $926,777,842 |
°Principal amount shown is stated in the currency in which each security is denominated.
AUD — Australian Dollar
BRL — Brazilian Real
CAD — Canadian Dollar
CLP — Chilean Peso
COP — Colombian Peso
CZK — Czech Koruna
EUR — European Monetary Unit
GBP — British Pound Sterling
HUF — Hungarian Forint
IDR — Indonesia Rupiah
ISK — Iceland Krona
JPY — Japanese Yen
KRW — South Korean Won
MXN — Mexican Peso
MYR — Malaysia Ringgit
NOK — Norwegian Kroner
NZD — New Zealand Dollar
PLN — Polish Zloty
RUB — Russian Ruble
SEK — Swedish Krona
SKK — Slovak Koruna
TRY — Turkish Lira
TWD — Taiwan Dollar
USD — United States Dollar
58
f | Step coupon bond. Coupon increases periodically based on a predetermined schedule. Stated rate in effect at March 31, 2008. |
w | Pass Through Agreement. Security represents the contractual right to receive a proportionate amount of underlying payments due to the counterparty pursuant to various agreements related to the rescheduling of obligations and the exchange of certain notes. |
· | Variable rate security. The rate shown is the rate as of March 31, 2008. |
* | Fully or partially on loan. |
^ | Zero coupon security. The rate shown is the yield at the time of purchase. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2008, the aggregate amount of Rule 144A securities was $60,708,213, which represented 6.55% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
= | Security is being fair valued in accordance with the Fund’s fair valuation policy. At March 31, 2008, the aggregate amount of fair valued securities was $325,679, which represented 0.04% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” |
p | Restricted Security. Investment in a security not registered under the Securities Act of 1933, as amended. This security has certain restrictions on resale which may limit its liquidity. At March 31, 2008, the aggregate amount of the restricted security was $325,679 or 0.04% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
@ | Illiquid security. At March 31, 2008, the aggregate amount of illiquid securities was $325,679, which represented 0.04% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
W | Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective. |
‡ | Non-income producing security. Security is currently in default. |
D | Securities have been classified by country of origin. |
§ | Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. |
« | Senior Secured Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more United States banks, (ii) the lending rate offered by one or more European banks such as the London Inter-Bank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior Secured Loans may be subject to restrictions on resale. |
¥ | Fully or partially pledged as collateral for financial futures contracts. |
† | Non-income producing security for the year ended March 31, 2008. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $111,560,427 of securities loaned. |
Summary of Abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
ARM — Adjustable Rate Mortgage
Assured Gty — Assured Guaranty
CPN — Interest Coupon Only
FGIC — Insured by the Financial Guaranty Insurance Company
FSA — Insured by Financial Security Assurance
GNMA — Government National Mortgage Association
GSMPS — Goldman Sachs Reperforming Mortgage Securities
MASTR — Mortgage Asset Securitization Transactions, Inc.
MBIA — Insured by the Municipal Bond Insurance Association
NIM — Net Interest Margin
O.A.T. — Obligation Assimilable au Tresor (Treasury Security)
PIK — Pay-in-Kind
RSB — Rate Stabilization Bonds
S.F. — Single Family
TBA — To be announced
XLCA — Insured by XL Capital Assurance
yr — Year
Net Asset Value and Offering Price Per Share – | ||
Optimum Fixed Income Fund | ||
Net asset value Class A (A) | $ | 8.93 |
Sales charge (4.50% of offering price) (B) | 0.42 | |
Offering price | $ | 9.35 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $100,000 or more. |
The following foreign currency exchange contracts and foreign cross currency exchange contracts, futures contracts, written options, and swap contracts were outstanding at March 31, 2008: | ||||||||||||
Foreign Currency Exchange Contracts1 | ||||||||||||
Unrealized | ||||||||||||
Contracts to | Settlement | Appreciation | ||||||||||
Receive (Deliver) | In Exchange For | Date | (Depreciation) | |||||||||
AUD | 980,132 | NZD | (1,119,498 | ) | 4/30/08 | $ | 16,245 | |||||
AUD | (6,728,221 | ) | USD | 6,162,177 | 4/30/08 | 35,533 | ||||||
BRL | 5,276,548 | USD | (3,029,887 | ) | 4/30/08 | (25,877 | ) | |||||
BRL | 2,784,505 | USD | (1,600,750 | ) | 4/30/08 | (15,494 | ) | |||||
BRL | (920,465 | ) | USD | 525,230 | 5/30/08 | 1,197 | ||||||
CAD | 561,458 | EUR | (349,600 | ) | 4/30/08 | (4,509 | ) | |||||
CAD | 474,342 | GBP | (241,215 | ) | 4/30/08 | (15,808 | ) | |||||
CAD | (1,804,407 | ) | USD | 1,813,674 | 4/30/08 | 56,706 | ||||||
CLP | 198,900,000 | USD | (442,000 | ) | 4/30/08 | 13,071 | ||||||
COP | 814,164,000 | USD | (442,000 | ) | 4/30/08 | 2,764 | ||||||
COP | (1,101,810,000 | ) | USD | 589,203 | 5/30/08 | (12,697 | ) | |||||
EUR | 366,851 | JPY | (56,810,479 | ) | 5/30/08 | 5,810 | ||||||
EUR | 2,182,900 | NOK | (17,681,711 | ) | 5/30/08 | (17,396 | ) | |||||
EUR | 591,855 | NZD | (1,155,537 | ) | 5/30/08 | 31,848 | ||||||
EUR | 680,744 | PLN | (2,409,528 | ) | 5/30/08 | (5,298 | ) | |||||
EUR | 1,110,273 | SEK | (10,464,326 | ) | 5/30/08 | (6,966 | ) | |||||
EUR | (5,640,871 | ) | USD | 8,683,553 | 4/30/08 | (210,281 | ) | |||||
GBP | (1,105,138 | ) | USD | 2,194,956 | 5/30/08 | 12,078 | ||||||
GBP | (351,901 | ) | USD | 699,263 | 5/30/08 | 4,185 | ||||||
IDR | (25,841,601,000 | ) | USD | 2,781,358 | 5/30/08 | (25,803 | ) | |||||
JPY | 287,347,809 | EUR | (1,847,777 | ) | 4/30/08 | (26,534 | ) | |||||
JPY | 57,846,880 | USD | (578,353 | ) | 4/30/08 | 2,801 | ||||||
JPY | 764,733,697 | USD | (7,675,394 | ) | 4/30/08 | 7,437 |
(continues) 59
Statements of net assets
Optimum Fixed Income Fund
Foreign Currency Exchange Contracts1 (continued) | |||||||||||||
Unrealized | |||||||||||||
Contracts to | Settlement | Appreciation | |||||||||||
Receive (Deliver) | In Exchange For | Date | (Depreciation) | ||||||||||
KRW | (86,782,500 | ) | USD | 87,500 | 4/30/08 | $ | (190 | ) | |||||
MXN | (4,751,500 | ) | USD | 442,000 | 4/30/08 | (2,678 | ) | ||||||
MXN | (1,674,600 | ) | USD | 155,452 | 5/30/08 | (669 | ) | ||||||
MXN | (67,835,448 | ) | USD | 6,291,587 | 5/30/08 | (32,600 | ) | ||||||
MYR | 2,824,119 | USD | (883,503 | ) | 5/30/08 | (1,324 | ) | ||||||
MYR | (4,152,212 | ) | USD | 1,297,607 | 5/30/08 | 568 | |||||||
NOK | 9,840,106 | USD | (1,885,962 | ) | 5/30/08 | 36,046 | |||||||
NZD | (697,637 | ) | USD | 559,295 | 4/30/08 | 13,241 | |||||||
NZD | (1,557,946 | ) | USD | 1,257,843 | 4/30/08 | 38,408 | |||||||
NZD | (1,880,995 | ) | USD | 1,514,201 | 4/30/08 | 41,909 | |||||||
NZD | (1,881,660 | ) | USD | 1,514,454 | 4/30/08 | 41,642 | |||||||
PLN | 1,627,397 | HUF | (118,566,242 | ) | 4/30/08 | 14,675 | |||||||
PLN | 1,631,036 | USD | (722,977 | ) | 5/30/08 | 5,994 | |||||||
RUB | 10,412,848 | USD | (442,300 | ) | 4/30/08 | (524 | ) | ||||||
SEK | 12,369,294 | EUR | (1,313,249 | ) | 4/30/08 | 7,395 | |||||||
SEK | 166,200 | USD | (25,432 | ) | 4/30/08 | 2,489 | |||||||
SEK | 1,408,317 | USD | (230,041 | ) | 4/30/08 | 6,547 | |||||||
SKK | 5,496,437 | CZK | (4,289,400 | ) | 4/30/08 | (1,612 | ) | ||||||
TRY | 230,895 | USD | (175,000 | ) | 4/30/08 | (3,927 | ) | ||||||
TWD | 2,633,750 | USD | (87,500 | ) | 4/30/08 | (826 | ) | ||||||
$ | (12,424 | ) |
Futures Contracts2 | ||||||||||||||
Unrealized | ||||||||||||||
Contracts | Notional | Notional | Expiration | Appreciation | ||||||||||
to Buy | Cost | Value | Date | (Depreciation) | ||||||||||
36 | Canadian | |||||||||||||
10 yr Bond | $ | 4,232,198 | $ | 4,200,760 | 6/19/08 | $ | (31,438 | ) | ||||||
30 | Euro Bond | 5,331,922 | 5,491,537 | 6/06/08 | 159,615 | |||||||||
28 | Long Gilt Bond | 6,028,942 | 6,184,808 | 6/26/08 | 155,866 | |||||||||
389 | U.S. Treasury | |||||||||||||
5 yr Notes | 44,213,337 | 44,437,172 | 6/30/08 | 223,835 | ||||||||||
$ | 59,806,399 | $ | 507,878 |
Written Options3 | ||||||||||||||||
Unrealized | ||||||||||||||||
Number of | Notional | Exercise | Expiration | Appreciation | ||||||||||||
Description | Contracts | Value | Price | Date | (Depreciation) | |||||||||||
Written Call Options | ||||||||||||||||
U.S. Treasury | ||||||||||||||||
10 yr Future | (29 | ) | $ | 2,900,000 | 118.00 | 4/25/08 | $ | (14,206 | ) | |||||||
U.S. Treasury | ||||||||||||||||
10 yr Future | (147 | ) | 14,700,000 | 120.50 | 4/25/08 | 65,800 | ||||||||||
U.S. Treasury | ||||||||||||||||
10 yr Future | (58 | ) | 5,800,000 | 121.50 | 4/25/08 | 29,587 | ||||||||||
U.S. Treasury | ||||||||||||||||
10 yr Future | (180 | ) | 18,000,000 | 121.50 | 5/23/08 | 10,530 | ||||||||||
$ | 41,400,000 | $ | 91,711 | |||||||||||||
Written Put Options | ||||||||||||||||
U.S. Treasury | ||||||||||||||||
10 yr Future | (174 | ) | $ | 17,400,000 | $ | 114.00 | 4/25/08 | $ | 76,614 | |||||||
U.S. Treasury | ||||||||||||||||
10 yr Future | (134 | ) | 13,400,000 | 116.00 | 4/25/08 | 22,294 | ||||||||||
$ | 30,800,000 | $ | 98,908 |
Swap Contracts4 | |||||||||||||
Credit Default Swap Contracts | |||||||||||||
Annual | Unrealized | ||||||||||||
Swap Counterparty & | Notional | Protection | Termination | Appreciation | |||||||||
Referenced Obligation | Value | Payments | Date | (Depreciation) | |||||||||
Protection Purchased: | |||||||||||||
Goldman Sachs | |||||||||||||
Best Buy | |||||||||||||
5 yr CDS | $ | 760,000 | 0.60 | % | 9/20/12 | $ | 26,774 | ||||||
10 yr CDS | 380,000 | 0.98 | % | 9/20/17 | 19,090 | ||||||||
Kraft Food | |||||||||||||
10 yr CDS | 1,100,000 | 0.77 | % | 12/20/17 | 43,578 | ||||||||
JPMorgan Chase Bank | |||||||||||||
CDX Emerging | |||||||||||||
Markets | |||||||||||||
8.1 yr CDS | 1,113,000 | 1.75 | % | 12/20/12 | 40,312 | ||||||||
Embarq | |||||||||||||
7 yr CDS | 755,000 | 0.77 | % | 9/20/14 | 91,294 | ||||||||
iStar Financal | |||||||||||||
5 yr CDS | 471,000 | 4.30 | % | 3/20/13 | 69,705 | ||||||||
Merrill Lynch | |||||||||||||
5 yr CDS | 400,000 | 0.58 | % | 12/20/12 | 34,064 | ||||||||
Lehman Brothers | |||||||||||||
Autozone | |||||||||||||
7 yr CDS | 550,000 | 0.445 | % | 6/20/14 | 21,449 | ||||||||
Avon Products | |||||||||||||
7 yr CDS | 550,000 | 0.245 | % | 6/20/14 | 9,837 | ||||||||
Capmark Financial | |||||||||||||
5 yr CDS | 330,000 | 1.65 | % | 9/20/12 | 121,371 | ||||||||
CDX Emerging | |||||||||||||
Markets 8.1 | 1,113,000 | 1.75 | % | 12/20/12 | 39,199 | ||||||||
Gannet 7 yr CDS | 545,000 | 0.88 | % | 9/20/14 | 43,227 | ||||||||
Home Depot | |||||||||||||
5 yr CDS | 1,285,000 | 0.50 | % | 9/20/12 | 61,597 | ||||||||
McDonald’s | |||||||||||||
7 yr CDS | 550,000 | 0.18 | % | 6/20/14 | 7,238 | ||||||||
New York Times | |||||||||||||
7 yr CDS | 545,000 | 0.75 | % | 9/20/14 | 59,857 | ||||||||
Newell Rubber | |||||||||||||
7 yr CDS | 550,000 | 0.385 | % | 6/20/14 | 14,921 | ||||||||
Sara Lee | |||||||||||||
7 yr CDS | 545,000 | 0.60 | % | 9/20/14 | 6,277 | ||||||||
Target 5 yr CDS | 775,000 | 0.57 | % | 12/20/12 | 18,169 | ||||||||
TJX Companies | |||||||||||||
7 yr CDS | 550,000 | 0.61 | % | 6/20/14 | 4,600 | ||||||||
Washington | |||||||||||||
Mutual | |||||||||||||
4 yr CDS | 543,500 | 0.85 | % | 9/20/11 | 76,378 | ||||||||
10 yr CDS | 365,000 | 3.15 | % | 12/20/17 | 18,517 | ||||||||
$ | 13,775,500 | $ | 827,454 | ||||||||||
Protection Sold: | |||||||||||||
Lehman Brothers | |||||||||||||
Best Buy 5 yr CDS | $ | 380,000 | 0.61 | % | 9/20/12 | $ | (13,332 | ) | |||||
Best Buy 10 yr CDS | 190,000 | 0.99 | % | 9/20/17 | (9,406 | ) | |||||||
$ | 570,000 | $ | (22,738 | ) |
60
The use of foreign currency exchange contracts and foreign cross currency exchange contracts, futures contracts, written options, and swap contracts involves elements of market risk and risks in excess of the amounts recognized in the financial statements. The notional values presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets. 1 See Note 7 in “Notes to financial statements.” |
See accompanying notes
(continues) 61
Statements of net assets
Optimum International Fund
March 31, 2008
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock– 97.84%D | |||||
Australia – 6.28% | |||||
Amcor | 256,888 | $ | 1,678,697 | ||
*BHP Billiton | 43,700 | 1,430,238 | |||
Foster’s Group | 630,281 | 2,949,352 | |||
Macquarie Airports | 253,783 | 749,182 | |||
National Australia Bank | 150,908 | 4,158,359 | |||
Suncorp-Metway | 10,730 | 126,212 | |||
Telstra | 1,188,114 | 4,777,857 | |||
Wesfarmers | 46,849 | 1,712,278 | |||
Zinifex | 44,900 | 409,543 | |||
17,991,718 | |||||
Austria – 0.41% | |||||
Voestalpine | 17,100 | 1,187,513 | |||
1,187,513 | |||||
Belgium – 1.81% | |||||
Fortis | 79,000 | 1,989,984 | |||
Fortis (Amsterdam Exchange) | 127,273 | 3,201,947 | |||
†Fortis Strip | 48,482 | 765 | |||
5,192,696 | |||||
Brazil – 0.33% | |||||
*Gerdau ADR | 19,950 | 609,872 | |||
Unibanco GDR | 2,800 | 326,592 | |||
936,464 | |||||
Canada – 1.98% | |||||
*Canadian Imperial Bank of Commerce | 10,500 | 676,132 | |||
Fairfax Financial Holdings | 2,000 | 582,367 | |||
Finning International | 21,000 | 594,710 | |||
†HudBay Minerals | 14,500 | 230,248 | |||
Petro-Canada | 27,600 | 1,202,409 | |||
*Royal Bank of Canada | 16,920 | 790,369 | |||
*Sun Life Financial | 24,000 | 1,122,027 | |||
TELUS | 10,981 | 462,668 | |||
5,660,930 | |||||
China – 0.08% | |||||
China Petroleum & Chemical | |||||
Class H | 280,000 | 239,573 | |||
239,573 | |||||
Finland – 1.38% | |||||
Nokia | 42,900 | 1,356,890 | |||
*Stora Enso Class R | 82,500 | 951,833 | |||
*UPM-Kymmene | 92,961 | 1,650,604 | |||
3,959,327 | |||||
France – 12.40% | |||||
*Air France-KLM | 8,800 | 247,780 | |||
*BNP Paribas | 22,840 | 2,303,130 | |||
*Carrefour | 38,492 | 2,968,947 | |||
Compagnie de Saint-Gobain | 29,206 | 2,380,850 | |||
*Compagnie Generale des | |||||
Etablissements Michelin Class B | 13,600 | 1,419,258 | |||
*Credit Agricole | 50,292 | 1,555,767 | |||
*France Telecom | 104,302 | 3,506,403 | |||
Lagardere | 17,800 | 1,330,520 | |||
*Renault | 53,378 | 5,905,679 | |||
*Sanofi-Aventis | 28,198 | 2,114,873 | |||
*Societe Generale | 34,943 | 3,420,436 | |||
*†Societe Generale-New | 8,736 | 840,356 | |||
†Suez Strip | 9,260 | 146 | |||
*Total | 101,340 | 7,523,809 | |||
35,517,954 | |||||
Germany – 9.26% | |||||
Allianz | 13,900 | 2,759,408 | |||
BASF | 22,800 | 3,081,776 | |||
Deutsche Bank | 14,800 | 1,681,836 | |||
*Deutsche Lufthansa | 60,400 | 1,637,758 | |||
Deutsche Telekom | 232,785 | 3,894,489 | |||
*E.ON | 15,500 | 2,891,603 | |||
Epcos | 13,300 | 202,147 | |||
†Infineon Technologies | 115,200 | 812,736 | |||
Muenchener Rueckversicherungs | 12,400 | 2,426,794 | |||
RWE | 57,967 | 7,158,125 | |||
26,546,672 | |||||
Hong Kong – 1.76% | |||||
China Netcom Group | 162,500 | 467,635 | |||
Hong Kong Electric Holdings | 374,000 | 2,361,570 | |||
Orient Overseas International | 48,000 | 280,889 | |||
Wharf Holdings | 412,875 | 1,944,008 | |||
5,054,102 | |||||
India – 0.21% | |||||
State Bank of India GDR | 7,130 | 606,050 | |||
606,050 | |||||
Italy – 4.01% | |||||
Buzzi Unicem | 23,300 | 579,564 | |||
ENI | 76,800 | 2,618,210 | |||
*Fondiaria-Sai | 27,300 | 1,130,618 | |||
Intesa Sanpaolo | 631,829 | 4,452,569 | |||
*UniCredito Italiano | 403,181 | 2,698,084 | |||
11,479,045 | |||||
Japan – 19.34% | |||||
Aisin Seiki | 3,900 | 145,473 | |||
*Astellas Pharma | 59,500 | 2,302,917 | |||
Canon | 102,300 | 4,708,282 | |||
*EDION | 31,600 | 292,141 | |||
Fanuc | 99 | 9,411 | |||
Fujitsu | 223,000 | 1,457,896 | |||
Hitachi | 109,000 | 645,934 | |||
Honda Motor | 44,800 | 1,278,010 | |||
*JFE Holdings | 47,100 | 2,087,455 | |||
Kao | 121,000 | 3,427,503 | |||
*KDDI | 295 | 1,801,413 | |||
Kyushu Electric Power | 34,500 | 842,349 | |||
*Millea Holdings | 78,800 | 2,907,690 | |||
*Mitsubishi | 39,000 | 1,177,078 | |||
*Mitsubishi Chemical Holdings | 148,000 | 977,960 | |||
Mitsubishi UFJ Financial Group | 258,900 | 2,232,567 | |||
*Mitsui & Co. | 74,000 | 1,498,846 |
62
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock (continued) | |||||
Japan (continued) | |||||
Mitsui Chemicals | 149,000 | $ | 986,062 | ||
Mitsui OSK Lines | 117,000 | 1,413,666 | |||
*Namco Bandai Holdings | 43,500 | 588,840 | |||
Nippon Mining Holdings | 103,000 | 545,312 | |||
*Nippon Steel | 196,000 | 992,479 | |||
Nippon Telegraph & Telephone | 311 | 1,340,920 | |||
*Nippon Yusen Kabushiki Kaisha | 51,000 | 478,652 | |||
*Nissan Motor | 185,700 | 1,534,310 | |||
Nitto Denko | 38,600 | 1,629,459 | |||
*Oki Electric Industry | 139,000 | 267,602 | |||
ORIX | 6,390 | 871,392 | |||
Seven & I Holdings | 90,200 | 2,261,104 | |||
Sharp | 71,000 | 1,205,996 | |||
*Sumitomo Mitsui Financial Group | 253 | 1,664,173 | |||
Takeda Pharmaceutical | 69,300 | 3,467,432 | |||
*Tokyo Electric Power | 58,400 | 1,560,573 | |||
*Toshiba | 221,000 | 1,475,844 | |||
Tosoh | 99,000 | 340,489 | |||
*Toyota Motor | 70,300 | 3,503,369 | |||
West Japan Railway | 340 | 1,493,231 | |||
55,413,830 | |||||
Netherlands – 5.31% | |||||
ArcelorMittal | 28,854 | 2,363,085 | |||
Corporate Express | 37,200 | 432,713 | |||
ING Groep CVA | 183,716 | 6,877,827 | |||
Koninklijke Ahold | 111,960 | 1,661,041 | |||
Reed Elsevier | 143,848 | 2,742,586 | |||
Royal KPN | 22,400 | 378,287 | |||
Wolters Kluwer | 28,900 | 764,928 | |||
15,220,467 | |||||
New Zealand – 0.44% | |||||
*Telecom Corporation of New Zealand | 427,992 | 1,259,583 | |||
1,259,583 | |||||
Norway – 0.57% | |||||
StatoilHydro ASA | 54,600 | 1,636,124 | |||
1,636,124 | |||||
Philippines – 0.10% | |||||
Philippine Long Distance Telephone | 4,200 | 284,480 | |||
284,480 | |||||
Republic of Korea – 0.70% | |||||
Hana Financial Group | 5,500 | 224,920 | |||
Honam Petrochemical | 2,900 | 236,309 | |||
†Hynix Semiconductor | 7,800 | 219,346 | |||
Hyundai Mobis | 1,730 | 134,857 | |||
Industrial Bank of Korea | 16,180 | 238,529 | |||
Kookmin Bank | 2,700 | 151,037 | |||
POSCO | 700 | 336,445 | |||
Samsung Electronics | 360 | 226,464 | |||
Shinhan Financial Group | 4,530 | 239,227 | |||
2,007,134 | |||||
Russia – 0.16% | |||||
LUKOIL ADR | 5,350 | 446,190 | |||
446,190 | |||||
Singapore – 0.94% | |||||
†Flextronics International | 82,900 | 778,431 | |||
Jardine Matheson Holdings | 4,400 | 138,952 | |||
Neptune Orient Lines | 84,000 | 198,365 | |||
Oversea-Chinese Banking | 269,800 | 1,587,924 | |||
2,703,672 | |||||
South Africa – 0.67% | |||||
*Sanlam | 121,610 | 286,450 | |||
Sasol | 31,688 | 1,518,484 | |||
Standard Bank Group | 10,400 | 113,122 | |||
1,918,056 | |||||
Spain – 4.81% | |||||
Banco Santander Central Hispano | 183,662 | 3,658,207 | |||
Iberdrola | 215,264 | 3,336,357 | |||
Repsol YPF | 51,800 | 1,787,185 | |||
Telefonica | 173,986 | 4,997,757 | |||
13,779,506 | |||||
Sweden – 1.08% | |||||
Svenska Cellulosa | 59,100 | 1,076,362 | |||
Tele2 | 45,500 | 859,292 | |||
Volvo | 76,650 | 1,160,641 | |||
3,096,295 | |||||
Switzerland – 2.81% | |||||
Credit Suisse Group | 30,400 | 1,547,085 | |||
Novartis | 98,823 | 5,064,020 | |||
Xstrata | 20,790 | 1,455,234 | |||
8,066,339 | |||||
Taiwan – 1.45% | |||||
AU Optronics | 833 | 1,445 | |||
Chunghwa Telecom ADR | 58,003 | 1,509,238 | |||
Siliconware Precision Industries | 250,853 | 421,019 | |||
Taiwan Semiconductor | |||||
Manufacturing | 158,375 | 328,873 | |||
Taiwan Semiconductor | |||||
Manufacturing ADR | 164,324 | 1,687,607 | |||
United Microelectronics | 351,371 | 216,232 | |||
4,164,414 | |||||
Thailand – 0.10% | |||||
PTT PCL | 27,800 | 279,015 | |||
279,015 | |||||
United Kingdom – 19.45% | |||||
Antofagasta | 13,400 | 186,554 | |||
Associated British Foods | 65,700 | 1,141,549 | |||
AstraZeneca | 18,000 | 673,018 | |||
Aviva | 208,405 | 2,553,983 | |||
BAE Systems | 173,300 | 1,669,786 | |||
Barclays | 218,900 | 1,967,963 | |||
BG Group | 158,312 | 3,660,267 | |||
BHP Billiton | 28,000 | 830,754 | |||
BP | 390,250 | 3,965,390 | |||
British American Tobacco | 26,600 | 998,266 | |||
Compass Group | 219,298 | 1,402,493 | |||
GKN | 240,560 | 1,452,536 | |||
GlaxoSmithKline | 302,645 | 6,402,707 |
(continues) 63
Statements of net assets
Optimum International Fund
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
Common Stock (continued) | ||||||||
United Kingdom (continued) | ||||||||
HBOS | 373,656 | $ | 4,156,431 | |||||
Home Retail Group | 71,200 | 369,509 | ||||||
Kazakhmys | 31,200 | 989,474 | ||||||
Lloyds TSB Group | 356,915 | 3,194,584 | ||||||
Marston’s | 54,900 | 223,902 | ||||||
*Punch Taverns | 72,980 | 779,942 | ||||||
Royal Bank of Scotland Group | 662,683 | 4,435,379 | ||||||
Royal Dutch Shell Class A | 200,350 | 6,912,402 | ||||||
Unilever | 141,312 | 4,767,613 | ||||||
Vodafone Group | 1,001,125 | 2,998,131 | ||||||
55,732,633 | ||||||||
Total Common Stock | ||||||||
(cost $257,044,656) | 280,379,782 | |||||||
Preferred Stock– 0.54% | ||||||||
Brazil – 0.39% | ||||||||
Usinas Siderurgicas de Minas Gerais | ||||||||
Class A | 20,250 | 1,132,456 | ||||||
1,132,456 | ||||||||
Republic of Korea – 0.15% | ||||||||
Hyundai Motor | 6,020 | 198,467 | ||||||
Samsung Electronics | 500 | 225,172 | ||||||
423,639 | ||||||||
Total Preferred Stock | ||||||||
(cost $933,933) | 1,556,095 | |||||||
Principal | ||||||||
Amount (U.S. $) | ||||||||
Repurchase Agreement** – 0.55% | ||||||||
BNP Paribas 1.55%, dated | ||||||||
3/31/08, to be repurchased | ||||||||
on 4/1/08, repurchase price | ||||||||
$1,568,068 (collateralized | ||||||||
by U.S. Government | ||||||||
obligations, ranging in par | ||||||||
value $89,000-$1,249,000, | ||||||||
4.125%-6.50%, | ||||||||
8/15/08-2/15/10; with total | ||||||||
market value $1,601,160) | $ | 1,568,000 | 1,568,000 | |||||
Total Repurchase Agreement | ||||||||
(cost $1,568,000) | 1,568,000 | |||||||
Total Value of Securities Before Securities | ||||||||
Lending Collateral – 98.93% | ||||||||
(cost $259,546,589) | 283,503,877 | |||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
Securities Lending Collateral*** – 20.42% | ||||||||
Investment Companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 58,517,599 | $ | 58,517,599 | |||||
Total Securities Lending Collateral | ||||||||
(cost $58,517,599) | 58,517,599 | |||||||
Total Value of Securities – 119.35% | ||||||||
(cost $318,064,188) | 342,021,476 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (20.42%) | (58,517,599 | ) | ||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 1.07% | 3,055,086 | |||||||
Net Assets Applicable to 20,738,909 | ||||||||
Shares Outstanding – 100.00% | $ | 286,558,963 | ||||||
Net Asset Value – Optimum International Fund | ||||||||
Class A ($22,971,547 / 1,660,060 Shares) | $13.84 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Class B ($4,203,102 / 309,571 Shares) | $13.58 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Class C ($84,430,725 / 6,214,752 Shares) | $13.59 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Institutional Class ($174,953,589 / 12,554,526 Shares) | $13.94 | |||||||
Components of Net Assets at March 31, 2008: | ||||||||
Shares of beneficial interest | ||||||||
(unlimited authorization – no par) | $ | 255,909,408 | ||||||
Undistributed net investment income | 1,994,097 | |||||||
Accumulated net realized gain on investments | 4,669,810 | |||||||
Net unrealized appreciation of investments | ||||||||
and foreign currencies | 23,985,648 | |||||||
Total net assets | $ | 286,558,963 |
D | Securities have been classified by country origin. Classification by type of business has been presented on page 34 in “Country/Sector allocations.” |
† | Non-income producing security for the year ended March 31, 2008. |
* | Fully or partially on loan. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements”. |
© | Includes $56,079,279 of securities loaned. |
64
Summary of Abbreviations: ADR – American Depositary Receipts CVA – Dutch Certificate GBP – British Pounds Sterling GDR – Global Depositary Receipts JPY – Japanese Yen USD – United States Dollar |
Net Asset Value and Offering Price Per Share – | ||
Optimum International Fund | ||
Net asset value Class A (A) | $ | 13.84 |
Sales charge (5.75% of offering price) (B) | 0.84 | |
Offering price | $ | 14.68 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $75,000 or more. | |
The following foreign currency exchange contracts were outstanding at March 31, 2008: |
Foreign Currency Exchange Contracts1
Contracts to | Unrealized | |||||||||||
Receive (Deliver) | In Exchange For | Settlement Date | Depreciation | |||||||||
GBP | (4,733,500 | ) | USD | 9,362,390 | 4/30/08 | $(11,372 | ) | |||||
JPY | 23,727,519 | USD | (238,916 | ) | 4/1/08 | (998 | ) | |||||
JPY | 4,782,440 | USD | (48,089 | ) | 4/2/08 | (135 | ) | |||||
$(12,505 | ) |
The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amount recognized in the financial statements. The notional values presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets. |
1 See Note 7 in ”Notes to financial statements.”
See accompanying notes
(continues) 65
Statements of net assets
Optimum Large Cap Growth Fund
March 31, 2008
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock – 94.66% | |||||
Basic Industry/Capital Goods – 10.43% | |||||
Air Products & Chemicals | 51,071 | $ | 4,698,532 | ||
BHP Billiton (Australia) | 180,300 | 5,900,957 | |||
*Danaher | 187,100 | 14,225,213 | |||
Deere & Co. | 59,508 | 4,786,824 | |||
†Foster Wheeler | 79,200 | 4,484,304 | |||
*Freeport-McMoRan Copper & Gold | 39,400 | 3,791,068 | |||
General Electric | 524,429 | 19,409,117 | |||
Honeywell International | 49,827 | 2,811,239 | |||
Joy Global | 30,700 | 2,000,412 | |||
*Kinross Gold | 147,800 | 3,267,858 | |||
Monsanto | 195,192 | 21,763,909 | |||
Praxair | 191,353 | 16,117,663 | |||
103,257,096 | |||||
Business Services – 5.66% | |||||
Accenture Class A | 166,000 | 5,838,220 | |||
Automatic Data Processing | 134,200 | 5,688,738 | |||
Expeditors International | |||||
of Washington | 71,600 | 3,234,888 | |||
*MasterCard Class A | 77,827 | 17,354,643 | |||
McGraw-Hill Companies | 253,300 | 9,359,435 | |||
*Moody’s | 67,600 | 2,354,508 | |||
Rogers Communications Class B | 130,100 | 4,673,192 | |||
Sysco | 129,300 | 3,752,286 | |||
†Visa Class A | 61,100 | 3,810,196 | |||
56,066,106 | |||||
Consumer Durables – 1.98% | |||||
†Electronic Arts | 72,200 | 3,604,224 | |||
*Nintendo (Japan) | 17,000 | 8,761,654 | |||
Toyota Motor ADR | 71,841 | 7,248,038 | |||
19,613,916 | |||||
Consumer Non-Durables – 9.57% | |||||
*†Amazon.com | 77,600 | 5,532,880 | |||
†B2W Varejo (Brazil) | 31,300 | 1,066,321 | |||
*†Bed Bath & Beyond | 58,900 | 1,737,550 | |||
Coca-Cola | 114,387 | 6,962,737 | |||
Costco Wholesale | 115,222 | 7,485,973 | |||
CVS Caremark | 617,541 | 25,016,586 | |||
*Fastenal | 28,600 | 1,313,598 | |||
Groupe Danone (France) | 35,000 | 3,128,822 | |||
Heineken ADR | 205,253 | 5,982,714 | |||
InBev (Belgium) | 34,822 | 3,063,446 | |||
†Kohl’s | 45,300 | 1,942,917 | |||
Lojas Renner (Brazil) | 68,500 | 1,272,895 | |||
Lowe’s Companies | 287,471 | 6,594,585 | |||
Nestle | 2,800 | 1,398,872 | |||
PepsiCo | 58,950 | 4,256,190 | |||
Procter & Gamble | 98,152 | 6,877,511 | |||
Reckitt Benckiser (United Kingdom) | 31,100 | 1,723,252 | |||
†Starbucks | 53,906 | 943,355 | |||
Tesco (United Kingdom) | 520,008 | 3,913,890 | |||
Walgreen | 52,200 | 1,988,298 | |||
*Whole Foods Market | 78,600 | 2,591,442 | |||
94,793,834 | |||||
Consumer Services – 7.70% | |||||
International Game Technology | 88,150 | 3,544,512 | |||
*†Las Vegas Sands | 191,356 | 14,091,456 | |||
*Marriott International Class A | 55,500 | 1,906,980 | |||
McDonald’s | 387,951 | 21,636,027 | |||
*†MGM MIRAGE | 115,784 | 6,804,626 | |||
Naspers Class N (South Africa) | 134,400 | 2,337,031 | |||
*Shaw Communications | |||||
Class B (Canada) | 149,200 | 2,712,456 | |||
*†Wynn Resorts | 73,763 | 7,423,508 | |||
Yum Brands | 423,892 | 15,773,021 | |||
76,229,617 | |||||
Energy – 12.19% | |||||
Baker Hughes | 77,500 | 5,308,750 | |||
*†Cameron International | 60,756 | 2,529,880 | |||
Chevron | 27,500 | 2,347,400 | |||
EOG Resources | 42,800 | 5,136,000 | |||
Exxon Mobil | 87,400 | 7,392,292 | |||
†FMC Technologies | 21,140 | 1,202,655 | |||
Hess | 151,066 | 13,321,000 | |||
†McDermott International | 118,220 | 6,480,820 | |||
*Murphy Oil | 31,000 | 2,546,340 | |||
Petroleo Brasileiro SA ADR | 142,107 | 14,510,546 | |||
Petroleo Brasiliero SP ADR | 50,700 | 4,293,783 | |||
Schlumberger | 343,767 | 29,907,730 | |||
Suncor Energy | 20,100 | 1,936,635 | |||
*Total (France) | 91,000 | 6,756,134 | |||
*†Transocean | 99,696 | 13,478,899 | |||
†Vestas Wind Systems | 19,550 | 2,135,074 | |||
†Weatherford International | 19,801 | 1,434,978 | |||
120,718,916 | |||||
Financials – 10.13% | |||||
Assurant | 52,900 | 3,219,494 | |||
*BlackRock | 10,700 | 2,184,726 | |||
†Bosvespa Holding (Brazil) | 323,800 | 4,378,167 | |||
CME Group | 6,100 | 2,861,510 | |||
Franklin Resources | 47,600 | 4,616,724 | |||
Goldman Sachs Group | 102,190 | 16,901,204 | |||
†Industrial & Commercial Bank | |||||
of China Class H (China) | |||||
(Hong Kong Exchange) | 22,195,000 | 15,454,679 | |||
JPMorgan Chase | 320,896 | 13,782,483 | |||
Merrill Lynch | 56,168 | 2,288,284 | |||
Northern Trust | 38,400 | 2,552,448 | |||
*Prudential Financial | 21,100 | 1,651,075 | |||
†Redecard (Brazil) | 95,900 | 1,575,130 | |||
Schwab (Charles) | 98,000 | 1,845,340 | |||
*St. Joe | 169,752 | 7,287,453 | |||
*State Street | 107,160 | 8,465,640 | |||
Wells Fargo | 387,816 | 11,285,446 | |||
100,349,803 |
66
Number of | Value | |||||
Shares | (U.S. $) | |||||
Common Stock (continued) | ||||||
Health Care – 12.61% | ||||||
Aetna | 143,900 | $ | 6,056,751 | |||
Alcon (Switerland) | 23,600 | 3,357,100 | ||||
Allergan | 72,200 | 4,071,358 | ||||
*†Amylin Pharmaceuticals | 105,689 | 3,087,176 | ||||
Becton, Dickinson | 44,500 | 3,820,325 | ||||
*†Celgene | 29,300 | 1,795,797 | ||||
CIGNA | 99,400 | 4,032,658 | ||||
Covidien | 89,075 | 3,941,569 | ||||
†Genentech | 236,498 | 19,198,907 | ||||
†Gilead Sciences | 167,220 | 8,616,847 | ||||
†Humana | 39,800 | 1,785,428 | ||||
†Intuitive Surgical | 4,500 | 1,459,575 | ||||
*†Laboratory Corporation | ||||||
of America Holdings | 68,500 | 5,047,080 | ||||
McKesson | 50,100 | 2,623,737 | ||||
†Medco Health Solutions | 49,400 | 2,163,226 | ||||
Medtronic | 142,650 | 6,899,981 | ||||
Merck | 323,714 | 12,284,946 | ||||
Roche Holding (Switzerland) | 14,193 | 2,670,564 | ||||
Schering-Plough | 107,200 | 1,544,752 | ||||
†St. Jude Medical | 72,300 | 3,122,637 | ||||
Stryker | 52,200 | 3,395,610 | ||||
UnitedHealth Group | 426,424 | 14,651,928 | ||||
†WellPoint | 124,600 | 5,498,598 | ||||
†Zimmer Holdings | 48,100 | 3,745,066 | ||||
124,871,616 | ||||||
Technology – 21.87% | ||||||
†Amdocs | 64,500 | 1,829,220 | ||||
America Movil Series L ADR | 365,108 | 23,253,728 | ||||
†American Tower Class A | 153,200 | 6,006,972 | ||||
†Apple | 76,900 | 11,035,150 | ||||
AT&T | 330,340 | 12,652,022 | ||||
†Autodesk | 124,000 | 3,903,520 | ||||
China Mobil (Hong Kong) | 931,500 | 13,857,885 | ||||
†Cisco Systems | 254,700 | 6,135,723 | ||||
Corning | 229,100 | 5,507,564 | ||||
*†Crown Castle International | 218,000 | 7,518,820 | ||||
†Dell | 128,200 | 2,553,744 | ||||
*†Dolby Laboratories Class A | 55,200 | 2,001,552 | ||||
*†EMC | 142,800 | 2,047,752 | ||||
*†Expedia | 161,203 | 3,528,734 | ||||
General Dynamics | 210,847 | 17,578,314 | ||||
†Google Class A | 68,582 | 30,208,313 | ||||
Hon Hai Precision Industry GDR | 284,600 | 3,241,594 | ||||
*Infosys Technologies ADR | 43,500 | 1,555,995 | ||||
Intel | 119,100 | 2,522,538 | ||||
*†Juniper Networks | 131,300 | 3,282,500 | ||||
*†Leap Wireless International | 31,400 | 1,463,240 | ||||
Lockheed Martin | 162,012 | 16,087,792 | ||||
†Marvell Technology Group | 286,100 | 3,112,768 | ||||
†McAfee | 11,900 | 393,771 | ||||
*†MetroPCS Communications | 42,200 | 717,400 | ||||
Microsoft | 423,950 | 12,031,701 | ||||
Precision Castparts | 23,269 | 2,375,300 | ||||
QUALCOMM | 217,871 | 8,932,711 | ||||
*Schneider Electric (France) | 31,668 | 4,096,492 | ||||
Tencent Holdings | 206,400 | 1,176,004 | ||||
*†VeriSign | 177,600 | 5,903,424 | ||||
216,512,243 | ||||||
Transportation – 2.18% | ||||||
Norfolk Southern | 89,439 | 4,858,326 | ||||
Union Pacific | 133,090 | 16,686,825 | ||||
21,545,151 | ||||||
Utilities – 0.34% | ||||||
†AES | 199,200 | 3,320,664 | ||||
3,320,664 | ||||||
Total Common Stock | ||||||
(cost $884,296,642) | 937,278,962 | |||||
Principal | ||||||
Amount (U.S. $) | ||||||
Repurchase Agreement** – 5.42% | ||||||
BNP Paribas 1.55%, dated | ||||||
3/31/08, to be repurchased | ||||||
on 4/1/08, repurchase price | ||||||
$53,657,310 (collateralized by | ||||||
U.S. Government obligations, | ||||||
ranging in par value | ||||||
$3,041,000-$42,731,000, | ||||||
4.125%-6.50%, | ||||||
8/15/08-2/15/10; with total | ||||||
market value $54,789,693) | $ | 53,655,000 | 53,655,000 | |||
Total Repurchase Agreement | ||||||
(cost $53,655,000) | 53,655,000 | |||||
Total Value of Securities Before | ||||||
Securities Lending Collateral – 100.08% | ||||||
(cost $937,951,642) | 990,933,962 | |||||
Number of | ||||||
Shares | ||||||
Securities Lending Collateral*** – 15.51% | ||||||
Investment Companies | ||||||
Mellon GSL DBT II | ||||||
Collateral Fund | 153,563,933 | 153,563,933 | ||||
Total Securities Lending Collateral | ||||||
(cost $153,563,933) | 153,563,933 |
(continues) 67
Statements of net assets
Optimum Large Cap Growth Fund
Total Value of Securities – 115.59% | |||||
(cost $1,091,515,575) | $ | 1,144,497,895 | © | ||
Obligation to Return Securities | |||||
Lending Collateral*** – (15.51%) | (153,563,933 | ) | |||
Liabilities Net of Receivables and | |||||
Other Assets – (0.08%) | (826,225 | ) | |||
Net Assets Applicable to 87,785,269 | |||||
Shares Outstanding – 100.00% | $ | 990,107,737 | |||
Net Asset Value – Optimum Large Cap Growth Fund | |||||
Class A ($54,021,818 / 4,816,330 Shares) | $11.22 | ||||
Net Asset Value – Optimum Large Cap Growth Fund | |||||
Class B ($9,345,412 / 859,516 Shares) | $10.87 | ||||
Net Asset Value – Optimum Large Cap Growth Fund | |||||
Class C ($203,393,755 / 18,709,740 Shares) | $10.87 | ||||
Net Asset Value – Optimum Large Cap Growth Fund | |||||
Institutional Class | |||||
($723,346,752 / 63,399,683 Shares) | $11.41 | ||||
Components of Net Assets at March 31, 2008: | |||||
Shares of beneficial interest | |||||
(unlimited authorization – no par) | $ | 958,549,648 | |||
Accumulated net investment loss | (117,792 | ) | |||
Accumulated net realized loss on investments | (21,340,526 | ) | |||
Net unrealized appreciation of investments | |||||
and foreign currencies | 53,016,407 | ||||
Total net assets | $ | 990,107,737 |
* | Fully or partially on loan. |
† | Non-income producing security for the year ended March 31, 2008. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $148,844,130 of securities loaned. |
Summary of Abbreviations: |
Net Asset Value and Offering Price Per Share – | ||
Optimum Large Cap Growth Fund | ||
Net asset value Class A (A) | $ | 11.22 |
Sales charge (5.75% of offering price) (B) | 0.68 | |
Offering price | $ | 11.90 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. |
(B) | See the current prospectus for purchases of $75,000 or more. |
See accompanying notes
68
Optimum Large Cap Value Fund
March 31, 2008
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock – 95.70% | |||||
Consumer Discretionary – 9.30% | |||||
Advance Auto Parts | 27,420 | $ | 933,651 | ||
*Comcast Class A | 282,500 | 5,463,550 | |||
Disney (Walt) | 145,440 | 4,563,907 | |||
Gap | 340,600 | 6,703,008 | |||
*General Motors | 369,390 | 7,036,880 | |||
Home Depot | 86,500 | 2,419,405 | |||
Macy’s | 244,830 | 5,645,780 | |||
Mattel | 342,900 | 6,823,710 | |||
*NIKE Class B | 117,380 | 7,981,840 | |||
Omnicom Group | 93,790 | 4,143,642 | |||
*Regal Entertainment Group Class A | 525,400 | 10,134,965 | |||
*Royal Caribbean Cruises | 163,780 | 5,388,362 | |||
*Sherwin-Williams | 52,850 | 2,697,464 | |||
Sony ADR | 93,300 | 3,738,531 | |||
Staples | 100,500 | 2,222,055 | |||
*†Toll Brothers | 154,000 | 3,615,920 | |||
WPP Group (United Kingdom) | 163,150 | 1,947,582 | |||
81,460,252 | |||||
Consumer Staples – 10.15% | |||||
Altria Group | 154,910 | 3,439,002 | |||
CVS Caremark | 126,351 | 5,118,479 | |||
Diageo (United Kingdom) | 262,316 | 5,294,424 | |||
General Mills | 69,710 | 4,174,235 | |||
Kellogg | 104,910 | 5,514,070 | |||
Kimberly-Clark | 183,450 | 11,841,697 | |||
Kraft Foods Class A | 396,350 | 12,290,813 | |||
Nestle (Switzerland) | 12,611 | 6,300,422 | |||
PepsiCo | 42,300 | 3,054,060 | |||
Philip Morris International | 204,030 | 10,319,837 | |||
Procter & Gamble | 96,380 | 6,753,347 | |||
Sara Lee | 694,000 | 9,702,120 | |||
*Whole Foods Market | 154,100 | 5,080,677 | |||
88,883,183 | |||||
Energy – 10.89% | |||||
Apache | 51,270 | 6,194,441 | |||
Chevron | 206,292 | 17,609,085 | |||
ConocoPhillips | 263,100 | 20,050,852 | |||
Devon Energy | 74,840 | 7,808,057 | |||
*EOG Resources | 37,280 | 4,473,600 | |||
Exxon Mobil | 159,200 | 13,465,136 | |||
*Hess | 91,380 | 8,057,888 | |||
Marathon Oil | 58,420 | 2,663,952 | |||
Royal Dutch Shell ADR | 34,040 | 2,348,079 | |||
*Total ADR | 170,960 | 12,652,750 | |||
95,323,840 | |||||
Financials – 19.89% | |||||
Allstate | 297,590 | 14,302,174 | |||
American Express | 61,120 | 2,672,166 | |||
American International Group | 194,400 | 8,407,800 | |||
Aon | 33,420 | 1,343,484 | |||
Bank of America | 257,103 | 9,746,775 | |||
Bank of New York Mellon | 194,146 | 8,101,713 | |||
*Blackstone Group | 254,140 | 4,035,743 | |||
*CapitalSource | 242,600 | 2,345,942 | |||
Chubb | 147,580 | 7,302,258 | |||
Citigroup | 490,910 | 10,515,292 | |||
Fannie Mae | 468,900 | 12,341,448 | |||
Franklin Resources | 47,030 | 4,561,440 | |||
Genworth Financial | 175,250 | 3,967,660 | |||
Goldman Sachs Group | 39,930 | 6,604,023 | |||
Hartford Financial Services Group | 55,080 | 4,173,412 | |||
*Hospitality Properties Trust | 111,800 | 3,803,436 | |||
JPMorgan Chase | 280,807 | 12,060,661 | |||
*Lehman Brothers Holdings | 48,500 | 1,825,540 | |||
*Merrill Lynch | 68,660 | 2,797,208 | |||
*MetLife | 196,150 | 11,819,999 | |||
*New York Community Bancorp | 389,100 | 7,089,402 | |||
PNC Financial Services Group | 69,540 | 4,559,738 | |||
*Prudential Financial | 39,820 | 3,115,915 | |||
State Street | 70,880 | 5,599,520 | |||
*SunTrust Banks | 92,710 | 5,112,029 | |||
Travelers | 216,413 | 10,355,362 | |||
UBS (Switzerland) | 192,145 | 5,582,709 | |||
174,142,849 | |||||
Health Care – 8.62% | |||||
Abbott Laboratories | 37,400 | 2,062,610 | |||
Aetna | 157,500 | 6,629,175 | |||
Covidien | 99,100 | 4,385,175 | |||
GlaxoSmithKline (United Kingdom) | 101,300 | 2,143,086 | |||
Johnson & Johnson | 164,580 | 10,676,305 | |||
Merck | 191,500 | 7,267,425 | |||
Pfizer | 695,840 | 14,563,930 | |||
*†Tenet Healthcare | 1,278,530 | 7,236,480 | |||
UnitedHealth Group | 74,030 | 2,543,671 | |||
†Watson Pharmaceuticals | 231,600 | 6,790,512 | |||
†WellPoint | 77,040 | 3,399,775 | |||
Wyeth | 185,860 | 7,761,514 | |||
75,459,658 | |||||
Industrials – 13.50% | |||||
3M | 26,630 | 2,107,765 | |||
*Avery Dennison | 103,000 | 5,072,750 | |||
Block (H&R) | 119,800 | 2,487,048 | |||
Burlington Northern Santa Fe | 44,640 | 4,116,701 | |||
Eaton | 17,250 | 1,374,308 | |||
General Electric | 377,100 | 13,956,470 | |||
*Grainger (W.W.) | 49,190 | 3,757,624 | |||
Honeywell International | 126,400 | 7,131,488 | |||
*Ingersoll-Rand Class A | 70,110 | 3,125,504 | |||
Johnson Controls | 66,880 | 2,260,544 | |||
Lockheed Martin | 187,670 | 18,635,630 | |||
*Masco | 298,020 | 5,909,737 | |||
Northrop Grumman | 92,510 | 7,198,203 | |||
Raytheon | 20,440 | 1,320,628 |
(continues) 69
Statements of net assets
Optimum Large Cap Value Fund
Number of | Value | ||||||
Shares | (U.S. $) | ||||||
Common Stock (continued) | |||||||
Industrials (continued) | |||||||
Rockwell Automation | 48,230 | $ | 2,769,367 | ||||
Timken | 35,830 | 1,064,868 | |||||
Tyco Electronics | 219,500 | 7,533,240 | |||||
Tyco International | 181,300 | 7,986,265 | |||||
Union Pacific | 59,300 | 7,435,034 | |||||
United Technologies | 113,240 | 7,793,177 | |||||
Waste Management | 152,900 | 5,131,324 | |||||
118,167,675 | |||||||
Information Technology – 7.32% | |||||||
Accenture Class A | 194,110 | 6,826,849 | |||||
Automatic Data Processing | 22,660 | 960,557 | |||||
†Cisco Systems | 19,810 | 477,223 | |||||
Hewlett-Packard | 219,680 | 10,030,589 | |||||
Intel | 380,780 | 8,064,920 | |||||
International Business Machines | 178,740 | 20,580,124 | |||||
Motorola | 512,700 | 4,768,110 | |||||
†Oracle | 453,380 | 8,868,113 | |||||
†Visa Class A | 57,110 | 3,561,380 | |||||
64,137,865 | |||||||
Materials – 6.02% | |||||||
Air Products & Chemicals | 32,080 | 2,951,360 | |||||
Alcoa | 132,500 | 4,777,950 | |||||
*duPont (E.I.) deNemours | 336,200 | 15,720,712 | |||||
*Louisiana-Pacific | 281,200 | 2,581,416 | |||||
*MeadWestvaco | 302,400 | 8,231,328 | |||||
*Packaging Corporation of America | 432,900 | 9,666,657 | |||||
PPG Industries | 106,480 | 6,443,105 | |||||
Praxair | 22,290 | 1,877,487 | |||||
*†Smurfit-Stone Container | 60,140 | 463,078 | |||||
52,713,093 | |||||||
Telecommunications – 6.27% | |||||||
AT&T | 572,230 | 21,916,408 | |||||
*BCE | 289,385 | 9,760,956 | |||||
Embarq | 70,306 | 2,819,271 | |||||
*Qwest Communications | |||||||
International | 1,911,000 | 8,656,830 | |||||
Verizon Communications | 66,110 | 2,409,710 | |||||
Vodafone Group (United Kingdom) | 1,424,507 | 4,266,059 | |||||
Windstream | 428,900 | 5,125,355 | |||||
54,954,589 | |||||||
Utilities – 3.74% | |||||||
Ameren | 80,800 | 3,558,432 | |||||
American Electric Power | 234,130 | 9,746,832 | |||||
*Dominion Resources | 132,926 | 5,428,698 | |||||
Entergy | 34,340 | 3,745,807 | |||||
FPL Group | 60,560 | 3,799,534 | |||||
PG&E | 60,400 | 2,223,928 | |||||
PPL | 27,240 | 1,250,861 | |||||
Public Service Enterprise Group | 75,730 | 3,043,589 | |||||
32,797,681 | |||||||
Total Common Stock | |||||||
(cost $852,811,192) | 838,040,685 | ||||||
Principal | Value | ||||||
Amount (U.S. $) | (U.S. $) | ||||||
Repurchase Agreement** – 3.98% | |||||||
BNP Paribas 1.55%, dated | |||||||
3/31/08, to be repurchased | |||||||
on 4/1/08, repurchase price | |||||||
$34,833,500 (collateralized by | |||||||
U.S. Government obligations, | |||||||
ranging in par value | |||||||
$1,974,000-$27,740,000, | |||||||
4.125%-6.50%, | |||||||
8/15/08-2/15/10; with total | |||||||
market value $35,568,625) | $34,832,000 | $ | 34,832,000 | ||||
Total Repurchase Agreement | |||||||
(cost $34,832,000) | 34,832,000 | ||||||
Total Value of Securities Before Securities | |||||||
Lending Collateral – 99.68% | |||||||
(cost $887,643,192) | 872,872,685 | ||||||
Number of | |||||||
Shares | |||||||
Securities Lending Collateral*** – 16.97% | |||||||
Investment Companies | |||||||
Mellon GSL DBT II | |||||||
Collateral Fund | 148,627,368 | 148,627,368 | |||||
Total Securities Lending Collateral | |||||||
(cost $148,627,368) | 148,627,368 | ||||||
Total Value of Securities – 116.65% | |||||||
(cost $1,036,270,560) | 1,021,500,053 | © | |||||
Obligation to Return Securities | |||||||
Lending Collateral*** – (16.97%) | (148,627,368 | ) | |||||
Receivables and Other Assets | |||||||
Net of Liabilities – 0.32% | 2,816,452 | ||||||
Net Assets Applicable to 78,468,100 | |||||||
Shares Outstanding – 100.00% | $ | 875,689,137 | |||||
Net Asset Value – Optimum Large Cap Value Fund | |||||||
Class A ($53,096,999 / 4,754,013 Shares) | $11.17 | ||||||
Net Asset Value – Optimum Large Cap Value Fund | |||||||
Class B ($9,454,557 / 852,823 Shares) | $11.09 | ||||||
Net Asset Value – Optimum Large Cap Value Fund | |||||||
Class C ($205,500,885 / 18,542,615 Shares) | $11.08 | ||||||
Net Asset Value – Optimum Large Cap Value Fund | |||||||
Institutional Class | |||||||
($607,636,696 / 54,318,649 Shares) | $11.19 |
70
Components of Net Assets at March 31, 2008: | |||
Shares of beneficial interest | |||
(unlimited authorization – no par) | $ | 882,003,090 | |
Undistributed net investment income | 2,500,621 | ||
Accumulated net realized gain on investments | 5,936,557 | ||
Net unrealized depreciation of investments | |||
and foreign currencies | (14,751,131 | ) | |
Total net assets | $ | 875,689,137 |
* | Fully or partially on loan. |
† | Non-income producing security for the year ended March 31, 2008. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $142,055,884 of securities loaned. |
ADR — American Depositary Receipts
Net Asset Value and Offering Price Per Share – | ||
Optimum Large Cap Value Fund | ||
Net asset value Class A (A) | $ | 11.17 |
Sales charge (5.75% of offering price) (B) | 0.68 | |
Offering price | $ | 11.85 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $75,000 or more. |
See accompanying notes
(continues) 71
Statements of net assets
Optimum Small-Mid Cap Growth Fund
March 31, 2008
Number of | ||||
Shares | Value | |||
Common Stock – 97.81%² | ||||
Basic Industry/Capital Goods – 16.20% | ||||
Acuity Brands | 12,500 | $ | 536,875 | |
Albany International | 13,000 | 469,820 | ||
AMETEK | 47,500 | 2,085,725 | ||
*†Atwood Oceanics | 17,000 | 1,559,240 | ||
*Belden | 8,000 | 282,560 | ||
Donaldson | 34,000 | 1,369,520 | ||
†Drew Industries | 15,000 | 366,900 | ||
Dynamic Materials | 16,400 | 708,480 | ||
Greif Class A | 8,000 | 543,440 | ||
*Herman Miller | 25,000 | 614,250 | ||
*Kaydon | 10,000 | 439,100 | ||
Lincoln Electric Holdings | 5,500 | 354,695 | ||
†Littelfuse | 10,000 | 349,700 | ||
†Mettler-Toledo International | 20,000 | 1,942,400 | ||
*Mine Safety Appliances | 7,600 | 313,044 | ||
†Moog Class A | 15,000 | 633,150 | ||
*Nordson | 31,000 | 1,669,350 | ||
*Pentair | 33,400 | 1,065,460 | ||
*†Quanta Services | 44,000 | 1,019,480 | ||
†Stanley | 35,800 | 1,054,668 | ||
*†T-3 Energy Services | 10,700 | 455,392 | ||
*Texas Industries | 7,000 | 420,770 | ||
Toro | 16,200 | 670,518 | ||
†Varian | 7,000 | 405,440 | ||
†Waste Connections | 40,950 | 1,258,803 | ||
†Willbros Group | 22,500 | 688,500 | ||
*†Zoltek | 26,300 | 697,476 | ||
21,974,756 | ||||
Business Services – 7.20% | ||||
Administaff | 20,000 | 472,200 | ||
†comScore | 19,800 | 397,188 | ||
†Concur Technologies | 74,000 | 2,297,700 | ||
*†ExlService Holdings | 43,000 | 987,280 | ||
G & K Services Class A | 15,000 | 534,150 | ||
Global Payments | 10,000 | 413,600 | ||
†Hackett Group | 42,800 | 167,348 | ||
*†Kenexa | 21,000 | 388,080 | ||
*Knoll | 25,000 | 288,500 | ||
*†Perficient | 26,700 | 211,998 | ||
†SkillSoft ADR | 75,000 | 785,250 | ||
†TrueBlue | 20,000 | 268,800 | ||
†Ultimate Software Group | 15,800 | 474,948 | ||
*†Universal Technical Institute | 30,000 | 351,900 | ||
*†ValueClick | 68,915 | 1,188,784 | ||
Viad | 15,000 | 540,150 | ||
9,767,876 | ||||
Consumer Durables – 3.79% | ||||
*†Cavco Industries | 40,300 | 1,412,112 | ||
*†Champion Enterprises | 168,400 | 1,689,052 | ||
*†Jarden | 13,000 | 282,620 | ||
†Scientific Games Class A | 15,000 | 316,650 | ||
*Spartan Motors | 56,300 | 476,298 | ||
*Thor Industries | 20,000 | 595,400 | ||
*Winnebago Industries | 22,000 | 371,800 | ||
5,143,932 | ||||
Consumer Non-Durables – 8.17% | ||||
Abercrombie & Fitch Class A | 22,200 | 1,623,707 | ||
†American Apparel | 35,000 | 330,750 | ||
*†Central European District | 18,050 | 1,050,330 | ||
*†Chico’s FAS | 40,000 | 284,400 | ||
*Christopher & Banks | 16,000 | 159,840 | ||
*†Iconix Brand Group | 39,600 | 687,060 | ||
*†J. Crew Group | 29,050 | 1,283,139 | ||
*†Lululemon Athletica | 3,300 | 93,819 | ||
Oxford Industries | 31,000 | 698,430 | ||
*Pool | 50,000 | 944,500 | ||
†Rush Enterprises Class A | 30,000 | 475,200 | ||
*†True Religion Apparel | 80,300 | 1,489,565 | ||
†Urban Outfitters | 48,000 | 1,504,800 | ||
*†Volcom | 22,800 | 460,788 | ||
11,086,328 | ||||
Consumer Services – 4.61% | ||||
†Bally Technologies | 9,100 | 312,494 | ||
*†BJ’s Restaurants | 54,000 | 778,140 | ||
*†Entravision Communications | 120,000 | 799,200 | ||
*†HealthExtras | 28,400 | 705,456 | ||
*†inVentiv Health | 12,069 | 347,708 | ||
*†ITT Educational Services | 14,000 | 643,020 | ||
†Lions Gate Entertainment | 85,000 | 828,750 | ||
*†Pinnacle Entertainment | 50,000 | 640,000 | ||
†Salem Communications Class A | 45,000 | 180,450 | ||
†Sonic | 13,500 | 297,540 | ||
*†Spanish Broadcasting | ||||
Systems Class A | 36,400 | 64,428 | ||
Speedway Motorsports | 5,600 | 140,392 | ||
Team | 8,100 | 221,130 | ||
*†Vail Resorts | 6,000 | 289,740 | ||
6,248,448 | ||||
Energy – 8.50% | ||||
*†Arena Resources | 28,100 | 1,087,751 | ||
*†Carrizo Oil & Gas | 55,087 | 3,265,006 | ||
†Dawson Geophysical | 11,300 | 762,750 | ||
†Dresser-Rand Group | 3,700 | 113,775 | ||
†Dril-Quip | 13,100 | 608,757 | ||
*†Flotek Industries | 10,000 | 145,900 | ||
†FMC Technologies | 42,000 | 2,389,380 | ||
†Gulfport Energy | 30,700 | 325,420 | ||
†Orion Energy Systems | 48,700 | 464,598 | ||
*†Quicksilver Resources | 22,800 | 832,884 | ||
†Tesco | 8,800 | 210,760 | ||
*†TETRA Technologies | 43,000 | 681,120 | ||
†TXCO Resources | 3,300 | 40,854 | ||
*†Warren Resources | 50,000 | 593,500 | ||
11,522,455 |
72
Number of | ||||
Shares | Value | |||
Common Stock (continued) | ||||
Financials – 7.50% | ||||
*Aaron Rents | 20,000 | $ | 430,800 | |
*†AmeriCredit | 19,500 | 196,365 | ||
Associated Banc-Corp | 18,000 | 479,340 | ||
*†Centennial Bank Holdings | 70,000 | 439,600 | ||
†eHealth | 50,800 | 1,121,156 | ||
Electro Rent | 40,000 | 606,000 | ||
†H&E Equipment Services | 25,000 | 314,250 | ||
HCC Insurance Holdings | 28,050 | 636,455 | ||
*K-Fed Bancorp | 80,000 | 912,800 | ||
*Lakeland Financial | 12,000 | 271,800 | ||
*Life Partners Holdings | 20,500 | 378,225 | ||
*MB Financial | 34,000 | 1,046,520 | ||
Old Second Bancorp | 9,000 | 239,040 | ||
†Pinnacle Financial Partners | 9,700 | 248,320 | ||
TCF Financial | 45,000 | 806,400 | ||
Valley National Bancorp | 60,000 | 1,152,600 | ||
ViewPoint Financial Group | 45,000 | 742,950 | ||
*†World Acceptance | 4,500 | 143,325 | ||
10,165,946 | ||||
Health Care – 9.02% | ||||
*†Accuray | 46,900 | 366,289 | ||
†Alexion Pharmaceuticals | 6,900 | 409,170 | ||
*†Allscripts Healthcare Solutions | 20,591 | 212,499 | ||
*†Arena Pharmaceuticals | 25,000 | 171,000 | ||
*†Array Biopharma | 20,000 | 140,200 | ||
†Auxilium Pharmaceuticals | 3,500 | 93,590 | ||
†Axsys Technologies | 9,000 | 448,920 | ||
†Barrier Therapeutics | 25,000 | 85,250 | ||
*†BioMarin Pharmaceuticals | 33,500 | 1,184,895 | ||
†Caraco Pharmaceutical | ||||
Laboratories | 22,700 | 407,465 | ||
†Cephalon | 6,000 | 386,400 | ||
†Cynosure | 26,700 | 568,710 | ||
*†deCODE genetics | 34,400 | 52,632 | ||
†Genoptix | 19,000 | 475,190 | ||
†Idexx Laboratories | 7,500 | 369,450 | ||
*†Illumina | 4,000 | 303,600 | ||
*†IsoRay | 140,000 | 140,000 | ||
†LifeCell | 11,400 | 479,142 | ||
*†Medarex | 30,000 | 265,500 | ||
*Medicis Pharmaceutical Class A | 7,500 | 147,675 | ||
@=†PMedicure Restricted PIPE | 74,014 | 0 | ||
*†Myriad Genetics | 5,000 | 201,450 | ||
*†Natus Medical | 32,000 | 580,800 | ||
†Nektar Therapeutics | 25,000 | 173,500 | ||
†Neurogen | 40,000 | 74,400 | ||
†NightHawk Radiology Holdings | 47,000 | 439,920 | ||
†Obagi Medical Products | 41,200 | 357,616 | ||
†Orthofix International | 17,000 | 676,090 | ||
†Pharmacopeia | 110,000 | 404,800 | ||
*†PSS World Medical | 42,000 | 699,720 | ||
*†Psychiatric Solutions | 10,000 | 339,200 | ||
†QLT | 35,000 | 124,250 | ||
*†Sciele Pharma | 40,945 | 798,428 | ||
†Seattle Genetics | 19,900 | 181,090 | ||
*†Virtual Radiologic | 30,700 | 469,096 | ||
12,227,937 | ||||
Real Estate – 0.44% | ||||
*DiamondRock Hospitality | 47,000 | 595,490 | ||
595,490 | ||||
Technology – 31.47% | ||||
*†Acme Packet | 40,647 | 324,770 | ||
*†American Reprographics | 30,000 | 445,200 | ||
†American Tower Class A | 32,400 | 1,270,404 | ||
Amphenol Class A | 20,000 | 745,000 | ||
*†Anadigics | 61,100 | 400,816 | ||
†Ansys | 22,000 | 759,440 | ||
†ArcSight | 41,500 | 286,765 | ||
†Atheros Communications | 39,100 | 814,844 | ||
†AuthenTec | 24,700 | 245,518 | ||
*†Avid Technology | 37,100 | 903,014 | ||
†Cavium Networks | 11,000 | 180,400 | ||
*†Ciena | 15,000 | 462,450 | ||
*†CNET Networks | 90,000 | 639,000 | ||
*†Cogent Communications Group | 32,000 | 585,920 | ||
†Crown Castle International | 18,400 | 634,616 | ||
*†Cybersource | 45,800 | 669,138 | ||
†DealerTrack Holdings | 23,600 | 477,192 | ||
†Dice Holdings | 28,000 | 249,480 | ||
†Double-Take Software | 44,100 | 515,088 | ||
*†ESCO Technologies | 40,200 | 1,596,744 | ||
*†FalconStor Software | 77,400 | 589,014 | ||
*†FLIR Systems | 110,000 | 3,309,899 | ||
*†Focus Media Holding ADR | 43,076 | 1,514,121 | ||
†Globecomm Systems | 27,100 | 235,770 | ||
†Gmarket ADR | 37,400 | 801,108 | ||
†II-VI | 17,000 | 645,660 | ||
*†Informatica | 62,000 | 1,057,720 | ||
*†Innerworkings | 73,100 | 1,025,593 | ||
†Integrated Device Technology | 83,000 | 741,190 | ||
†Interactive Intelligence | 47,500 | 559,075 | ||
†IPG Photonics | 101,200 | 1,587,828 | ||
*†Liquidity Services | 35,400 | 283,200 | ||
†Mellanox Technologies | 28,300 | 394,219 | ||
†Microsemi | 40,000 | 912,000 | ||
†Netgear | 15,000 | 299,250 | ||
†Netlogic Microsystems | 24,800 | 598,672 | ||
†Nice Systems ADR | 25,000 | 705,500 | ||
†Novell | 140,400 | 883,116 | ||
†O2Micro International ADR | 71,200 | 550,376 | ||
†Omrix Biopharmaceuticals | 31,528 | 441,392 | ||
†ON Semiconductor | 79,350 | 450,708 | ||
†Phoenix Technologies | 47,400 | 742,284 | ||
†Plexus | 16,000 | 448,800 |
(continues) 73
Statements of net assets
Optimum Small-Mid Cap Growth Fund
Number of | ||||||
Shares | Value | |||||
Common Stock (continued) | ||||||
Technology (continued) | ||||||
*†Polycom | 50,000 | $ | 1,127,000 | |||
†PROS Holdings | 38,500 | 483,175 | ||||
*Quality Systems | 12,000 | 358,440 | ||||
†Radiant Systems | 35,000 | 488,950 | ||||
*†Sapient | 71,500 | 497,640 | ||||
*†Sierra Wireless | 41,100 | 655,545 | ||||
*†Sigma Designs | 39,100 | 886,397 | ||||
†SRA International Class A | 17,000 | 413,270 | ||||
†Starent Networks | 25,000 | 337,500 | ||||
†Supertex | 21,800 | 444,938 | ||||
†Switch & Data Facilities | 25,000 | 255,250 | ||||
*†Synaptics | 39,300 | 938,484 | ||||
*†Synchronoss Technologies | 42,700 | 855,281 | ||||
†Taleo Class A | 19,800 | 384,120 | ||||
†Tellabs | 190,000 | 1,035,500 | ||||
*†Time Warner Telecom Class A | 88,000 | 1,363,120 | ||||
†Trimble Navigation | 20,000 | 571,800 | ||||
*†Vasco Data Security International | 43,100 | 589,608 | ||||
42,668,312 | ||||||
Transportation – 0.91% | ||||||
†American Commercial Lines | 17,000 | 268,600 | ||||
†CAI International | 3,900 | 50,154 | ||||
*Heartland Express | 64,000 | 912,640 | ||||
1,231,394 | ||||||
Total Common Stock | ||||||
(cost $136,925,466) | 132,632,874 | |||||
Warrant – 0.00% | ||||||
=†Isoray, exercise price $5.00, | ||||||
expiration date 3/22/11 | 28,000 | 0 | ||||
Total Warrant | ||||||
(cost $0) | 0 | |||||
Principal | ||||||
Amount | ||||||
Repurchase Agreement** – 1.97% | ||||||
BNP Paribas 1.55%, dated | ||||||
3/31/08, to be repurchased | ||||||
on 4/1/08, repurchase price | ||||||
$2,665,115 (collateralized | ||||||
by U.S. Government | ||||||
obligations, ranging in par | ||||||
value $151,000-$2,122,000, | ||||||
4.125%-6.50%, | ||||||
8/15/08-2/15/10; with total | © | |||||
market value $2,721,359) | $ | 2,665,000 | 2,665,000 | |||
Total Repurchase Agreement | ||||||
(cost $2,665,000) | 2,665,000 | |||||
Total Value of Securities Before Securities | ||||||
Lending Collateral – 99.78% | ||||||
(cost $139,590,466) | 135,297,874 |
Number of | ||||||
Shares | Value | |||||
Securities Lending Collateral*** – 23.41% | ||||||
Investment Companies | ||||||
Mellon GSL DBT II | ||||||
Collateral Fund | 31,743,288 | $ | 31,743,288 | |||
Total Securities Lending Collateral | ||||||
(cost $31,743,288) | 31,743,288 | |||||
Total Value of Securities – 123.19% | ||||||
(cost $171,333,754) | 167,041,162 | © | ||||
Obligation to Return Securities | ||||||
Lending Collateral*** – (23.41%) | (31,743,288 | ) | ||||
Receivables and Other Assets | ||||||
Net of Liabilities – 0.22% | 304,511 | |||||
Net Assets Applicable to 11,987,792 | ||||||
Shares Outstanding – 100.00% | $ | 135,602,385 | ||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||
Class A ($9,282,631 / 823,025 Shares) | $11.28 | |||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||
Class B ($1,619,803 / 148,145 Shares) | $10.93 | |||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||
Class C ($34,085,788 / 3,117,530 Shares) | $10.93 | |||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||
Institutional Class ($90,614,163 / 7,899,092 Shares) | $11.47 | |||||
Components of Net Assets at March 31, 2008: | ||||||
Shares of beneficial interest | ||||||
(unlimited authorization – no par) | $ | 142,602,509 | ||||
Accumulated net realized loss on investments | (2,707,532 | ) | ||||
Net unrealized depreciation of investments | (4,292,592 | ) | ||||
Total net assets | $ | 135,602,385 |
² | Narrow industries are utilized for compliance purposes for diversification whereas broad sectors are used for financial reporting. |
* | Fully or partially on loan. |
† | Non-income producing security for the year ended March 31, 2008. |
@ | Illiquid security. At March 31, 2008, the aggregate amount of illiquid securities was $0, which represented 0.00% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
= | Security is being fair valued in accordance with the Fund’s fair valuation policy. At March 31, 2008, the aggregate amount of fair valued securities was $0, which represented 0.00% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
P | Restricted Security. Investment in a security not registered under the Securities Act of 1933, as amended. This security has certain restrictions on resale which may limit its liquidity. At March 31, 2008, the aggregate amount of the restricted securities was $0 or 0.00% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $30,687,010 of securities loaned. |
Summary of Abbreviations: | |
ADR — American Depositary Receipt | |
PIPE — Private Investment in Public Equity |
74
Net Asset Value and Offering Price Per Share – | ||
Optimum Small-Mid Cap Growth Fund | ||
Net asset value Class A (A) | $11.28 | |
Sales charge (5.75% of offering price) (B) | 0.69 | |
Offering price | $11.97 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $75,000 or more. |
See accompanying notes
(continues) 75
Statements of net assets
Optimum Small-Mid Cap Value Fund
March 31, 2008
Number of | ||||
Shares | Value | |||
Common Stock – 91.14% | ||||
Basic Industry – 14.84% | ||||
*Albany International | 46,500 | $ 1,680,511 | ||
AMETEK | 10,500 | 461,055 | ||
Ashland | 8,300 | 392,590 | ||
*Brady Class A | 47,000 | 1,571,210 | ||
Chemtura | 53,000 | 389,020 | ||
Crane | 29,000 | 1,170,150 | ||
Cytec Industries | 30,000 | 1,615,500 | ||
Eastman Chemical | 10,000 | 624,500 | ||
FMC | 21,000 | 1,165,290 | ||
Hercules | 89,000 | 1,627,810 | ||
*†Kapstone Paper & Packaging | 170,000 | 1,125,400 | ||
†Lydall | 63,000 | 721,350 | ||
†Material Sciences | 47,000 | 364,720 | ||
*†NCI Building Systems | 31,000 | 750,200 | ||
Quanex | 25,000 | 1,293,500 | ||
Spartech | 65,000 | 549,250 | ||
*†Trex | 37,000 | 291,560 | ||
Tronox Class A | 27,900 | 111,321 | ||
Tronox Class B | 38,500 | 150,150 | ||
Zep | 19,500 | 316,290 | ||
16,371,377 | ||||
Business Services – 9.02% | ||||
Courier | 13,583 | 338,896 | ||
Ennis | 30,390 | 509,944 | ||
*†Hudson Highland Group | 155,000 | 1,312,850 | ||
*IKON Office Solutions | 118,300 | 899,080 | ||
*Kelly Services | 76,900 | 1,581,064 | ||
†Korn/Ferry International | 12,300 | 207,870 | ||
†MPS Group | 120,000 | 1,418,400 | ||
*†PHH | 52,800 | 920,304 | ||
*†R.H. Donnelley | 8,200 | 41,492 | ||
†Spherion | 61,400 | 375,768 | ||
†TrueBlue | 75,500 | 1,014,720 | ||
*†Valassis Communications | 122,400 | 1,328,040 | ||
9,948,428 | ||||
Capital Spending – 5.14% | ||||
*Acuity Brands | 31,000 | 1,331,450 | ||
†Advanced Energy Industries | 40,725 | 540,014 | ||
Hardinge | 5,558 | 76,478 | ||
Hubbell Class B | 12,500 | 546,125 | ||
Kennametal | 58,000 | 1,706,940 | ||
†Miller Industries | 100,500 | 967,815 | ||
*Wabash National | 56,100 | 504,339 | ||
5,673,161 | ||||
Consumer Cyclical – 7.33% | ||||
Barnes Group | 23,000 | 527,850 | ||
*Beazer Homes USA | 79,000 | 746,550 | ||
*Ethan Allen Interiors | 56,100 | 1,594,923 | ||
†Exide Technologies | 66,300 | 868,530 | ||
*Furniture Brands International | 71,900 | 841,230 | ||
*Hooker Furniture | 27,852 | 622,214 | ||
*Leggett & Platt | 48,000 | 732,000 | ||
*Lifetime Brands | 79,000 | 706,260 | ||
MDC Holdings | 7,000 | 306,530 | ||
Stanley Works | 24,000 | 1,142,880 | ||
8,088,967 | ||||
Consumer Services – 14.15% | ||||
Asbury Automotive Group | 13,300 | 183,008 | ||
†AutoNation | 11,700 | 175,149 | ||
†BJ’s Wholesale Club | 10,200 | 364,038 | ||
*†Collective Brands | 100,000 | 1,212,000 | ||
Delta Apparel | 41,300 | 249,452 | ||
*†Eddie Bauer Holdings | 28,400 | 110,476 | ||
Foot Locker | 105,000 | 1,235,850 | ||
†Genesco | 12,000 | 277,320 | ||
†Great Atlantic & Pacific Tea | 7,155 | 187,604 | ||
*Group 1 Automotive | 13,500 | 316,980 | ||
Ingles Markets | 21,050 | 517,619 | ||
*Jones Apparel Group | 46,800 | 628,056 | ||
*K-Swiss | 11,300 | 178,766 | ||
†Maidenform Brands | 85,000 | 1,382,950 | ||
Monaco Coach | 50,695 | 480,589 | ||
*†Pacific Sunwear of California | 76,000 | 958,360 | ||
Phillips-Van Heusen | 14,700 | 557,424 | ||
†Quiksilver | 82,800 | 812,268 | ||
†Rent-A-Center | 38,600 | 708,310 | ||
†Rush Enterprises Class A | 49,500 | 784,080 | ||
†*Russ Berrie & Co. | 18,600 | 261,516 | ||
Sotheby’s | 5,800 | 167,678 | ||
†Steven Madden | 16,200 | 277,506 | ||
†Sturm Ruger & Co. | 58,300 | 480,392 | ||
†Warnaco Group | 39,100 | 1,542,103 | ||
†*Westwood One | 506,600 | 1,063,860 | ||
*†Wet Seal | 145,400 | 492,906 | ||
15,606,260 | ||||
Consumer Staples – 0.65% | ||||
*Chiquita Brands International | 31,275 | 722,765 | ||
722,765 | ||||
Energy – 5.45% | ||||
†Callon Petroleum | 31,800 | 575,262 | ||
*CARBO Ceramics | 19,891 | 797,629 | ||
†Forest Oil | 6,000 | 293,760 | ||
Foundation Coal Holdings | 21,600 | 1,087,128 | ||
Gulf Island Fabrication | 17,760 | 510,067 | ||
†ION Geophysical | 24,980 | 344,724 | ||
†Key Energy Services | 53,000 | 711,260 | ||
†Newpark Resources | 19,550 | 99,705 | ||
Southern Union | 49,000 | 1,140,230 | ||
†Southwestern Energy | 13,440 | 452,794 | ||
6,012,559 | ||||
Financial Services – 8.68% | ||||
*American Equity Investment | ||||
Life Holding | 58,520 | 543,066 | ||
*CFS Bancorp | 9,795 | 140,754 |
76
Number of | ||||
Shares | Value | |||
Common Stock (continued) | ||||
Financial Services (continued) | ||||
*†Conseco | 21,100 | $ 215,220 | ||
Employers Holdings | 75,400 | 1,397,916 | ||
*First Horizon National | 52,600 | 736,926 | ||
†FPIC Insurance Group | 14,135 | 666,324 | ||
Hanover Insurance Group | 35,800 | 1,472,812 | ||
Home Federal Bancorp | 32,500 | 389,675 | ||
Horace Mann Educators | 28,950 | 506,046 | ||
†LaBranche & Co. | 79,660 | 346,521 | ||
*Old National Bancorp | 29,650 | 533,700 | ||
†PMA Capital Class A | 36,000 | 307,440 | ||
*Suffolk Bancorp | 18,640 | 590,515 | ||
†United America Indemnity Class A | 46,664 | 898,749 | ||
Webster Financial | 29,700 | 827,739 | ||
9,573,403 | ||||
Health Care – 1.18% | ||||
†Kinetic Concepts | 5,000 | 231,150 | ||
†LifePoint Hospitals | 17,320 | 475,780 | ||
†RehabCare Group | 12,713 | 190,695 | ||
STERIS | 15,000 | 402,450 | ||
1,300,075 | ||||
REITs – 6.07% | ||||
*†California Coastal Communities | 39,400 | 190,696 | ||
*CapLease | 184,500 | 1,433,565 | ||
*Lexington Reality Trust | 43,300 | 623,953 | ||
*†Lodgian | 116,100 | 1,294,515 | ||
MI Developments Class A | 71,000 | 2,039,120 | ||
U-Store-It Trust | 98,900 | 1,120,537 | ||
6,702,386 | ||||
Technology – 14.54% | ||||
Agilysys | 34,023 | 394,667 | ||
†Checkpoint Systems | 32,000 | 859,200 | ||
†CIBER | 82,225 | 402,903 | ||
Cohu | 30,510 | 495,788 | ||
†Ducommun | 17,470 | 483,395 | ||
†Esterline Technologies | 10,000 | 503,700 | ||
†Fairchild Semiconductor International | 84,000 | 1,001,280 | ||
†Flextronics International | 189,000 | 1,774,709 | ||
†Gerber Scientific | 80,000 | 711,200 | ||
*Imation | 40,000 | 909,600 | ||
*†Intermec | 27,000 | 599,130 | ||
†International Rectifier | 35,000 | 752,500 | ||
†Lawson Software | 73,700 | 554,961 | ||
*†LeCroy | 50,000 | 433,000 | ||
Methode Electronics | 41,508 | 485,229 | ||
†Novell | 99,400 | 625,226 | ||
Patni Computer Systems ADR | 22,200 | 253,746 | ||
*†Plexus | 2,000 | 56,100 | ||
†Radyne | 62,000 | 528,240 | ||
*†Rudolph Technologies | 49,900 | 487,523 | ||
†Thermo Fisher Scientific | 30,000 | 1,705,199 | ||
†Tollgrade Communications | 60,162 | 315,249 | ||
*†Unisys | 13,800 | 61,134 | ||
†Vishay Intertechnology | 120,000 | 1,087,200 | ||
*†Zebra Technologies Class A | 17,000 | 566,440 | ||
16,047,319 | ||||
Transportation – 2.19% | ||||
Alexander & Baldwin | 5,600 | 241,248 | ||
Con-way | 15,100 | 747,148 | ||
Skywest | 19,360 | 408,883 | ||
*†YRC Worldwide | 77,500 | 1,016,800 | ||
2,414,079 | ||||
Utilities – 1.90% | ||||
Great Plains Energy | 66,400 | 1,636,760 | ||
Portland General Electric | 20,300 | 457,765 | ||
2,094,525 | ||||
Total Common Stock | ||||
(cost $114,952,270) | 100,555,304 | |||
Exchange Traded Fund – 0.47% | ||||
*iShares Russell 2000 Value | ||||
Index Fund | 7,900 | 518,003 | ||
Total Exchange Traded Fund | ||||
(cost $616,509) | 518,003 | |||
Principal | ||||
Amount | ||||
Repurchase Agreement** – 7.49% | ||||
BNP Paribas 1.55%, dated | ||||
3/31/08, to be repurchased | ||||
on 4/1/08, repurchase price | ||||
$8,258,356 (collateralized | ||||
by U.S. Government | ||||
obligations, ranging in par | ||||
value $468,000-$6,577,000, | ||||
4.125%-6.50%, | ||||
8/15/08-2/15/10; with total | ||||
market value $8,432,640,) | $8,258,000 | 8,258,000 | ||
Total Repurchase Agreement | ||||
(cost $8,258,000) | 8,258,000 | |||
Total Value of Securities Before Securities | ||||
Lending Collateral – 99.10% | ||||
(cost $123,826,779) | 109,331,307 | |||
Number of | ||||
Shares | ||||
Securities Lending Collateral*** – 18.64% | ||||
Investment Companies | ||||
Mellon GSL DBT II | ||||
Collateral Fund | 20,566,896 | 20,566,896 | ||
Total Securities Lending Collateral | ||||
(cost $20,566,896) | 20,566,896 |
(continues) 77
Statements of net assets
Optimum Small-Mid Cap Value Fund
Total Value of Securities – 117.74% | |||
(cost $144,393,675) | $ 129,898,203 | © | |
Obligation to Return Securities | |||
Lending Collateral*** – (18.64%) | (20,566,896 | ) | |
Receivables and Other Assets | |||
Net of Liabilities – 0.90% | 997,531 | ||
Net Assets Applicable to 10,625,147 | |||
Shares Outstanding – 100.00% | $ 110,328,838 | ||
Net Asset Value – Optimum Small-Mid Cap Value Fund | |||
Class A ($9,145,114 / 880,721 Shares) | $10.38 | ||
Net Asset Value – Optimum Small-Mid Cap Value Fund | |||
Class B ($1,636,153 / 163,172 Shares) | $10.03 | ||
Net Asset Value – Optimum Small-Mid Cap Value Fund | |||
Class C ($32,890,460 / 3,280,949 Shares) | $10.02 | ||
Net Asset Value – Optimum Small-Mid Cap Value Fund | |||
Institutional Class ($66,657,111 / 6,300,305 Shares) | $10.58 | ||
Components of Net Assets at March 31, 2008: | |||
Shares of beneficial interest | |||
(unlimited authorization – no par) | $ 126,186,101 | ||
Accumulated net realized loss on investments | (1,361,791 | ) | |
Net unrealized depreciation of investments | (14,495,472 | ) | |
Total net assets | $ 110,328,838 |
† | Non-income producing security for the year ended March 31, 2008. |
* | Fully or partially on loan. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements”. |
© | Includes $19,210,902 of securities loaned. |
ADR — American Depositary Receipts
Net Asset Value and Offering Price Per Share – | |
Optimum Small-Mid Cap Value Fund | |
Net asset value Class A (A) | $10.38 |
Sales charge (5.75% of offering price) (B) | 0.63 |
Offering price | $11.01 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $75,000 or more. |
See accompanying notes
78
Statements of assets and liabilities
Optimum Fund Trust
March 31, 2008
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||
Assets: | ||||||||||||||||||||
Investments, at value | $ | 942,080,477 | $ | 283,503,877 | $ | 990,933,962 | $ | 872,872,685 | $ | 135,297,874 | $ | 109,331,307 | ||||||||
Short-term investments held as collateral | ||||||||||||||||||||
for loaned securities | 104,887,587 | 58,517,599 | 153,563,933 | 148,627,368 | 31,743,288 | 20,566,896 | ||||||||||||||
Cash | 3,715,601 | 3,569 | 316,631 | 863,336 | 758,895 | 242,685 | ||||||||||||||
Foreign currencies | 1,507,585 | 1,083,273 | 9,047 | 7,086 | — | — | ||||||||||||||
Receivables for fund shares sold | 2,475,394 | 622,096 | 2,595,672 | 2,243,191 | 375,998 | 243,629 | ||||||||||||||
Receivables for securities sold | 15,486,662 | 261,985 | 4,130,319 | 4,315,551 | 70,084 | 953,040 | ||||||||||||||
Foreign currency contracts, at value | 190,338 | — | — | — | — | — | ||||||||||||||
Dividends receivable | — | 2,319,903 | 1,114,971 | 1,815,666 | 53,135 | 126,367 | ||||||||||||||
Interest receivable | 8,667,102 | 67 | 2,310 | 1,500 | 115 | 356 | ||||||||||||||
Securities lending income receivable | 71,784 | 41,835 | 102,750 | 61,549 | 30,422 | 19,374 | ||||||||||||||
Credit default swap contracts, at value1 | 807,864 | — | — | — | — | — | ||||||||||||||
Variation margin receivable on futures contracts | 140,937 | — | — | — | — | — | ||||||||||||||
Other assets | — | — | — | 464 | — | — | ||||||||||||||
Total assets | 1,080,031,331 | 346,354,204 | 1,152,769,595 | 1,030,808,396 | 168,329,811 | 131,483,654 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Payables for securities purchased | 45,628,192 | 361,106 | 6,883,309 | 4,420,714 | 562,536 | 222,824 | ||||||||||||||
Payables for fund shares redeemed | 1,108,456 | 407,368 | 917,134 | 876,299 | 161,121 | 151,434 | ||||||||||||||
Obligation to return securities lending collateral | 104,887,587 | 58,517,599 | 153,563,933 | 148,627,368 | 31,743,288 | 20,566,896 | ||||||||||||||
Accrued protection payments on credit | ||||||||||||||||||||
default swaps | 4,322 | — | — | — | — | — | ||||||||||||||
Foreign currency contracts, at value | 202,762 | 12,505 | — | — | — | — | ||||||||||||||
Distributions payable | 98,522 | — | — | — | — | — | ||||||||||||||
Due to manager and affiliates | 854,708 | 383,922 | 1,162,360 | 1,051,011 | 194,329 | 151,522 | ||||||||||||||
Options written, at value | 311,297 | — | — | — | — | — | ||||||||||||||
Other accrued expenses | 154,077 | 112,741 | 135,122 | 143,867 | 66,152 | 62,140 | ||||||||||||||
Other liabilities | 3,566 | — | — | — | — | — | ||||||||||||||
Total liabilities | 153,253,489 | 59,795,241 | 162,661,858 | 155,119,259 | 32,727,426 | 21,154,816 | ||||||||||||||
Total Net Assets | $ | 926,777,842 | $ | 286,558,963 | $ | 990,107,737 | $ | 875,689,137 | $ | 135,602,385 | $ | 110,328,838 | ||||||||
Investments, at cost | $ | 954,755,284 | $ | 259,546,589 | $ | 937,951,642 | $ | 887,643,192 | $ | 139,590,466 | $ | 123,826,779 | ||||||||
Cost of short-term investments held as | ||||||||||||||||||||
collateral for loaned securities | $ | 104,887,587 | $ | 58,517,599 | $ | 153,563,933 | $ | 148,627,368 | $ | 31,743,288 | $ | 20,566,896 | ||||||||
Foreign currencies, at cost | $ | 1,478,949 | $ | 1,064,170 | $ | 9,181 | $ | 7,204 | $ | — | $ | — | ||||||||
Premiums received on options written | $ | 501,916 | $ | — | $ | — | $ | — | $ | — | $ | — |
1 Including up front payments received of $3,148. See Note 10 in “Notes to financial statements.” |
See accompanying notes
79
Statements of operations
Optimum Fund Trust
Year Ended March 31, 2008
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Dividends | $ | 228,153 | $ | 10,862,183 | $ | 10,933,096 | $ | 21,737,923 | $ | 557,149 | $ | 1,321,148 | ||||||||||||
Interest | 48,716,688 | 224,531 | 2,322,357 | 1,742,824 | 233,753 | 469,644 | ||||||||||||||||||
Securities lending income | 642,688 | 217,036 | 459,734 | 399,488 | 209,822 | 175,911 | ||||||||||||||||||
Foreign tax withheld | (26,384 | ) | (936,793 | ) | (215,752 | ) | (248,590 | ) | — | (6,578 | ) | |||||||||||||
49,561,145 | 10,366,957 | 13,499,435 | 23,631,645 | 1,000,724 | 1,960,125 | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Management fees | 5,120,418 | 2,413,512 | 7,132,566 | 6,418,962 | 1,691,392 | 1,310,791 | ||||||||||||||||||
Distribution expenses – Class A | 219,961 | 90,939 | 213,307 | 211,401 | 42,298 | 40,282 | ||||||||||||||||||
Distribution expenses – Class B | 94,087 | 49,547 | 111,104 | 112,774 | 21,227 | 20,167 | ||||||||||||||||||
Distribution expenses – Class C | 2,498,012 | 943,308 | 2,252,797 | 2,290,673 | 420,656 | 389,959 | ||||||||||||||||||
Dividend disbursing and transfer agent | ||||||||||||||||||||||||
fees and expenses | 2,214,639 | 888,332 | 2,402,208 | 2,295,410 | 546,320 | 485,535 | ||||||||||||||||||
Administration expenses | 1,348,927 | 498,555 | 1,449,379 | 1,381,377 | 253,708 | 207,981 | ||||||||||||||||||
Accounting fees | 347,461 | 120,137 | 376,339 | 356,726 | 61,138 | 50,128 | ||||||||||||||||||
Professional fees | 102,959 | 49,958 | 96,924 | 94,852 | 35,804 | 33,365 | ||||||||||||||||||
Reports and statements to shareholders | 92,055 | 31,156 | 86,433 | 86,273 | 30,663 | 24,521 | ||||||||||||||||||
Trustees’ fees | 85,021 | 29,505 | 93,954 | 88,199 | 15,009 | 12,210 | ||||||||||||||||||
Custodian fees | 79,685 | 123,762 | 77,489 | 37,723 | 6,931 | 5,965 | ||||||||||||||||||
Registration fees | 49,406 | 48,774 | 66,311 | 48,458 | 50,147 | 49,437 | ||||||||||||||||||
Insurance fees | 36,278 | 10,532 | 42,084 | 33,744 | 5,323 | 3,913 | ||||||||||||||||||
Pricing fees | 33,682 | 16,439 | 3,061 | 1,888 | 1,675 | 1,231 | ||||||||||||||||||
Other | 7,872 | 6,850 | 12,829 | 9,817 | 6,623 | 5,093 | ||||||||||||||||||
12,330,463 | 5,321,306 | 14,416,785 | 13,468,277 | 3,188,914 | 2,640,578 | |||||||||||||||||||
Less expenses absorbed or waived | (1,637,065 | ) | — | — | (139,798 | ) | (290,868 | ) | (416,134 | ) | ||||||||||||||
Less expense paid indirectly | (78,235 | ) | (24,266 | ) | (38,779 | ) | (11,386 | ) | (3,076 | ) | (2,744 | ) | ||||||||||||
Total operating expenses | 10,615,163 | 5,297,040 | 14,378,006 | 13,317,093 | 2,894,970 | 2,221,700 | ||||||||||||||||||
Net Investment Income (Loss) | 38,945,982 | 5,069,917 | (878,571 | ) | 10,314,552 | (1,894,246 | ) | (261,575 | ) | |||||||||||||||
Net Realized and Unrealized Gain (Loss) on | ||||||||||||||||||||||||
Investments and Foreign Currencies: | ||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||
Investments | (3,245,720 | ) | 18,648,101 | (1,029,518 | ) | 38,293,591 | 2,123,424 | 6,418,795 | ||||||||||||||||
Futures contracts | 5,875,208 | — | — | — | — | — | ||||||||||||||||||
Swap contracts | 5,092,629 | — | — | — | — | — | ||||||||||||||||||
Options written | 225,544 | — | — | — | — | — | ||||||||||||||||||
Foreign currencies | 4,669,993 | (194,893 | ) | (81,490 | ) | 4,880 | — | — | ||||||||||||||||
Net realized gain (loss) | 12,617,654 | 18,453,208 | (1,111,008 | ) | 38,298,471 | 2,123,424 | 6,418,795 | |||||||||||||||||
Net change in unrealized appreciation/depreciation | ||||||||||||||||||||||||
of investments and foreign currencies | (18,721,227 | ) | (37,113,580 | ) | (48,271,448 | ) | (117,063,900 | ) | (26,799,380 | ) | (28,485,141 | ) | ||||||||||||
Net Realized and Unrealized Loss on | ||||||||||||||||||||||||
Investments and Foreign Currencies | (6,103,573 | ) | (18,660,372 | ) | (49,382,456 | ) | (78,765,429 | ) | (24,675,956 | ) | (22,066,346 | ) | ||||||||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||||||||||||
Resulting from Operations | $ | 32,842,409 | $ | (13,590,455 | ) | $ | (50,261,027 | ) | $ | (68,450,877 | ) | $ | (26,570,202 | ) | $ | (22,327,921 | ) |
See accompanying notes
80
Statements of changes in net assets
Optimum Fund Trust
Optimum Fixed Income Fund | Optimum International Fund | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
3/31/08 | 3/31/07 | 3/31/08 | 3/31/07 | |||||||||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||||||||||
Net investment income | $ | 38,945,982 | $ | 28,504,974 | $ | 5,069,917 | $ | 1,683,671 | ||||||||
Net realized gain on investments and foreign currencies | 12,617,654 | 1,955,073 | 18,453,208 | 11,869,726 | ||||||||||||
Net change in unrealized appreciation/depreciation of investments | ||||||||||||||||
and foreign currencies | (18,721,227 | ) | 17,524,578 | (37,113,580 | ) | 31,831,482 | ||||||||||
Net increase (decrease) in net assets resulting from operations | 32,842,409 | 47,984,625 | (13,590,455 | ) | 45,384,879 | |||||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (2,646,846 | ) | (2,067,179 | ) | (189,722 | ) | (266,622 | ) | ||||||||
Class B | (320,455 | ) | (293,462 | ) | (11,832 | ) | (35,681 | ) | ||||||||
Class C | (8,955,345 | ) | (6,775,928 | ) | (231,986 | ) | (579,343 | ) | ||||||||
Institutional Class | (26,434,885 | ) | (16,228,518 | ) | (1,985,115 | ) | (1,804,993 | ) | ||||||||
Net realized gain on investments: | ||||||||||||||||
Class A | (528,340 | ) | — | (1,634,305 | ) | (915,224 | ) | |||||||||
Class B | (76,173 | ) | — | (314,623 | ) | (192,358 | ) | |||||||||
Class C | (2,107,786 | ) | — | (6,066,171 | ) | (3,349,247 | ) | |||||||||
Institutional Class | (4,886,758 | ) | — | (11,269,275 | ) | (4,949,128 | ) | |||||||||
(45,956,588 | ) | (25,365,087 | ) | (21,703,029 | ) | (12,092,596 | ) | |||||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from shares sold: | ||||||||||||||||
Class A | 14,435,397 | 16,393,284 | 3,911,302 | 5,352,586 | ||||||||||||
Class B | 595,022 | 1,355,437 | 98,087 | 471,521 | ||||||||||||
Class C | 65,517,471 | 60,326,474 | 15,823,329 | 19,502,569 | ||||||||||||
Institutional Class | 286,862,984 | 184,683,642 | 72,567,219 | 51,070,955 | ||||||||||||
Net asset value of shares issued upon reinvestment of dividends | ||||||||||||||||
and distributions: | ||||||||||||||||
Class A | 3,100,810 | 2,016,848 | 1,799,221 | 1,165,763 | ||||||||||||
Class B | 381,274 | 279,003 | 322,331 | 224,316 | ||||||||||||
Class C | 10,822,039 | 6,585,148 | 6,233,115 | 3,879,118 | ||||||||||||
Institutional Class | 30,570,046 | 15,763,509 | 13,070,704 | 6,649,588 | ||||||||||||
412,285,043 | 287,403,345 | 113,825,308 | 88,316,416 | |||||||||||||
Cost of shares repurchased: | ||||||||||||||||
Class A | (12,098,669 | ) | (9,574,166 | ) | (5,478,936 | ) | (4,487,473 | ) | ||||||||
Class B | (1,637,721 | ) | (1,680,895 | ) | (730,248 | ) | (929,646 | ) | ||||||||
Class C | (42,458,019 | ) | (34,207,828 | ) | (18,875,450 | ) | (14,012,831 | ) | ||||||||
Institutional Class | (165,647,750 | ) | (68,577,083 | ) | (43,335,971 | ) | (21,132,896 | ) | ||||||||
(221,842,159 | ) | (114,039,972 | ) | (68,420,605 | ) | (40,562,846 | ) | |||||||||
Increase in net assets derived from capital share transactions | 190,442,884 | 173,363,373 | 45,404,703 | 47,753,570 | ||||||||||||
Net Increase in Net Assets | 177,328,705 | 195,982,911 | 10,111,219 | 81,045,853 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 749,449,137 | 553,466,226 | 276,447,744 | 195,401,891 | ||||||||||||
End of year | $ | 926,777,842 | $ | 749,449,137 | $ | 286,558,963 | $ | 276,447,744 | ||||||||
Undistributed (accumulated) net investment income (loss) | $ | 8,266,779 | $ | 4,392,925 | $ | 1,994,097 | $ | (462,272 | ) |
See accompanying notes
(continues) 81
Statements of changes in net assets
Optimum Fund Trust
Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
3/31/08 | 3/31/07 | 3/31/08 | 3/31/07 | |||||||||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||||||||||
Net investment income (loss) | $ | (878,571 | ) | $ | (2,478,460 | ) | $ | 10,314,552 | $ | 7,136,470 | ||||||
Net realized gain (loss) on investments and foreign currencies | (1,111,008 | ) | 10,300,945 | 38,298,471 | 19,192,784 | |||||||||||
Net change in unrealized appreciation/depreciation of investments | ||||||||||||||||
and foreign currencies | (48,271,448 | ) | 32,819,559 | (117,063,900 | ) | 69,803,059 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (50,261,027 | ) | 40,642,044 | (68,450,877 | ) | 96,132,313 | ||||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | — | — | (630,550 | ) | (453,759 | ) | ||||||||||
Class B | — | — | (43,545 | ) | (26,347 | ) | ||||||||||
Class C | — | — | (905,530 | ) | (493,745 | ) | ||||||||||
Institutional Class | — | — | (8,485,398 | ) | (4,974,919 | ) | ||||||||||
Net realized gain on investments: | ||||||||||||||||
Class A | (1,441,876 | ) | (891,813 | ) | (2,973,297 | ) | (978,328 | ) | ||||||||
Class B | (264,016 | ) | (184,999 | ) | (553,227 | ) | (203,057 | ) | ||||||||
Class C | (5,499,011 | ) | (3,273,834 | ) | (11,425,809 | ) | (3,650,460 | ) | ||||||||
Institutional Class | (15,352,305 | ) | (7,089,482 | ) | (29,657,350 | ) | (7,445,895 | ) | ||||||||
Return of capital: | ||||||||||||||||
Class A | (178,767 | ) | — | — | — | |||||||||||
Class B | (32,243 | ) | — | — | — | |||||||||||
Class C | (684,542 | ) | — | — | — | |||||||||||
Institutional Class | (1,950,630 | ) | — | — | — | |||||||||||
(25,403,390 | ) | (11,440,128 | ) | (54,674,706 | ) | (18,226,510 | ) | |||||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from shares sold: | ||||||||||||||||
Class A | 11,236,759 | 14,966,032 | 10,589,119 | 14,226,853 | ||||||||||||
Class B | 353,506 | 1,520,526 | 292,083 | 1,364,512 | ||||||||||||
Class C | 46,004,662 | 54,022,224 | 44,680,367 | 53,262,225 | ||||||||||||
Institutional Class | 352,905,856 | 199,677,058 | 261,214,984 | 189,463,422 | ||||||||||||
Net asset value of shares issued upon reinvestment of dividends | ||||||||||||||||
and distributions: | ||||||||||||||||
Class A | 1,601,503 | 880,766 | 3,559,703 | 1,412,586 | ||||||||||||
Class B | 292,790 | 182,312 | 589,420 | 225,742 | ||||||||||||
Class C | 6,112,565 | 3,229,116 | 12,187,382 | 4,087,297 | ||||||||||||
Institutional Class | 17,075,912 | 6,991,211 | 37,620,966 | 12,233,266 | ||||||||||||
435,583,553 | 281,469,245 | 370,734,024 | 276,275,903 | |||||||||||||
Cost of shares repurchased: | ||||||||||||||||
Class A | (10,926,086 | ) | (9,138,800 | ) | (11,557,514 | ) | (9,285,118 | ) | ||||||||
Class B | (1,424,579 | ) | (1,380,825 | ) | (1,479,221 | ) | (1,559,766 | ) | ||||||||
Class C | (35,449,190 | ) | (25,310,354 | ) | (38,254,240 | ) | (27,494,629 | ) | ||||||||
Institutional Class | (111,018,222 | ) | (64,241,377 | ) | (114,719,796 | ) | (61,252,317 | ) | ||||||||
(158,818,077 | ) | (100,071,356 | ) | (166,010,771 | ) | (99,591,830 | ) | |||||||||
Increase in net assets derived from capital share transactions | 276,765,476 | 181,397,889 | 204,723,253 | 176,684,073 | ||||||||||||
Net Increase in Net Assets | 201,101,059 | 210,599,805 | 81,597,670 | 254,589,876 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 789,006,678 | 578,406,873 | 794,091,467 | 539,501,591 | ||||||||||||
End of year | $ | 990,107,737 | $ | 789,006,678 | $ | 875,689,137 | $ | 794,091,467 | ||||||||
Undistributed (accumulated) net investment income (loss) | $ | (117,792 | ) | $ | (14,801 | ) | $ | 2,500,621 | $ | 2,307,931 |
See accompanying notes
82
Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
3/31/08 | 3/31/07 | 3/31/08 | 3/31/07 | |||||||||||||
Increase (Decrease) in Net Assets from Operations: | ||||||||||||||||
Net investment loss | $ | (1,894,246 | ) | $ | (1,406,761 | ) | $ | (261,575 | ) | $ | (233,899 | ) | ||||
Net realized gain on investments | 2,123,424 | 3,981,078 | 6,418,795 | 7,538,279 | ||||||||||||
Net change in unrealized appreciation/depreciation of investments | (26,799,380 | ) | (1,417,523 | ) | (28,485,141 | ) | (108,109 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | (26,570,202 | ) | 1,156,794 | (22,327,921 | ) | 7,196,271 | ||||||||||
Dividends and Distributions to Shareholders from: | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||
Class A | (560,950 | ) | (257,820 | ) | (942,182 | ) | (759,512 | ) | ||||||||
Class B | (99,631 | ) | (48,248 | ) | (167,781 | ) | (133,312 | ) | ||||||||
Class C | (2,002,272 | ) | (848,908 | ) | (3,299,775 | ) | (2,395,294 | ) | ||||||||
Institutional Class | (4,508,315 | ) | (1,576,684 | ) | (6,085,136 | ) | (3,525,226 | ) | ||||||||
Return of capital: | ||||||||||||||||
Class A | (8,235 | ) | — | — | — | |||||||||||
Class B | (1,431 | ) | — | — | — | |||||||||||
Class C | (29,741 | ) | — | — | — | |||||||||||
Institutional Class | (68,975 | ) | — | — | — | |||||||||||
(7,279,550 | ) | (2,731,660 | ) | (10,494,874 | ) | (6,813,344 | ) | |||||||||
Capital Share Transactions: | ||||||||||||||||
Proceeds from shares sold: | ||||||||||||||||
Class A | 1,996,981 | 2,889,520 | 1,579,999 | 2,681,254 | ||||||||||||
Class B | 44,255 | 239,515 | 46,917 | 190,310 | ||||||||||||
Class C | 8,156,460 | 9,424,265 | 6,594,307 | 7,932,996 | ||||||||||||
Institutional Class | 43,794,668 | 30,357,388 | 30,115,190 | 23,616,562 | ||||||||||||
Net asset value of shares issued upon reinvestment of dividends | ||||||||||||||||
and distributions: | ||||||||||||||||
Class A | 562,249 | 249,707 | 915,729 | 730,606 | ||||||||||||
Class B | 100,327 | 47,670 | 166,279 | 131,610 | ||||||||||||
Class C | 2,010,432 | 837,090 | 3,260,663 | 2,361,924 | ||||||||||||
Institutional Class | 4,507,312 | 1,534,687 | 5,967,026 | 3,443,647 | ||||||||||||
61,172,684 | 45,579,842 | 48,646,110 | 41,088,909 | |||||||||||||
Cost of shares repurchased: | ||||||||||||||||
Class A | (2,920,642 | ) | (2,789,434 | ) | (3,141,056 | ) | (3,886,113 | ) | ||||||||
Class B | (287,031 | ) | (325,853 | ) | (293,314 | ) | (415,692 | ) | ||||||||
Class C | (7,352,657 | ) | (5,687,490 | ) | (8,306,564 | ) | (7,222,205 | ) | ||||||||
Institutional Class | (20,692,762 | ) | (13,942,070 | ) | (21,722,296 | ) | (11,222,885 | ) | ||||||||
(31,253,092 | ) | (22,744,847 | ) | (33,463,230 | ) | (22,746,895 | ) | |||||||||
Increase in net assets derived from capital share transactions | 29,919,592 | 22,834,995 | 15,182,880 | 18,342,014 | ||||||||||||
Net Increase (Decrease) in Net Assets | (3,930,160 | ) | 21,260,129 | (17,639,915 | ) | 18,724,941 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 139,532,545 | 118,272,416 | 127,968,753 | 109,243,812 | ||||||||||||
End of year (there was no undistributed net investment income | ||||||||||||||||
at either year end) | $ | 135,602,385 | $ | 139,532,545 | $ | 110,328,838 | $ | 127,968,753 |
See accompanying notes
83
Financial highlights
Optimum Fixed Income Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $9.050 | $8.740 | $8.890 | $8.980 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income2 | 0.402 | 0.399 | 0.316 | 0.279 | 0.171 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.066 | ) | 0.255 | (0.199 | ) | (0.061 | ) | 0.417 | |||||||
Total from investment operations | 0.336 | 0.654 | 0.117 | 0.218 | 0.588 | ||||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.380 | ) | (0.344 | ) | (0.253 | ) | (0.228 | ) | (0.098 | ) | |||||
Net realized gain on investments | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | (0.010 | ) | ||||||
Total dividends and distributions | (0.456 | ) | (0.344 | ) | (0.267 | ) | (0.308 | ) | (0.108 | ) | |||||
Net asset value, end of period | $8.930 | $9.050 | $8.740 | $8.890 | $8.980 | ||||||||||
Total return3 | 3.78% | 7.58% | 1.31% | 2.59% | 6.82% | ||||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $63,262 | $58,691 | $47,956 | $33,251 | $12,049 | ||||||||||
Ratio of expenses to average net assets | 1.24% | 1.25% | 1.25% | 1.24% | 1.20% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.43% | 1.61% | 1.67% | 1.70% | 2.25% | ||||||||||
Ratio of net investment income to average net assets | 4.44% | 4.48% | 3.55% | 3.12% | 2.88% | ||||||||||
Ratio of net investment income to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 4.25% | 4.12% | 3.13% | 2.66% | 1.83% | ||||||||||
Portfolio turnover | 256% | 238% | 298% | 352% | 383% |
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |
2 The average shares outstanding method has been applied for per share information. | |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
84
Optimum Fixed Income Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $9.060 | $8.740 | $8.900 | $8.990 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income2 | 0.343 | 0.342 | 0.258 | 0.221 | 0.133 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.076 | ) | 0.264 | (0.209 | ) | (0.055 | ) | 0.420 | |||||||
Total from investment operations | 0.267 | 0.606 | 0.049 | 0.166 | 0.553 | ||||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.321 | ) | (0.286 | ) | (0.195 | ) | (0.176 | ) | (0.053 | ) | |||||
Net realized gain on investments | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | (0.010 | ) | ||||||
Total dividends and distributions | (0.397 | ) | (0.286 | ) | (0.209 | ) | (0.256 | ) | (0.063 | ) | |||||
Net asset value, end of period | $8.930 | $9.060 | $8.740 | $8.900 | $8.990 | ||||||||||
Total return3 | 2.99% | 7.01% | 0.54% | 1.88% | 6.52% | ||||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $8,788 | $9,568 | $9,278 | $8,405 | $4,296 | ||||||||||
Ratio of expenses to average net assets | 1.89% | 1.90% | 1.90% | 1.89% | 1.85% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.08% | 2.26% | 2.32% | 2.35% | 2.90% | ||||||||||
Ratio of net investment income to average net assets | 3.79% | 3.83% | 2.90% | 2.47% | 2.23% | ||||||||||
Ratio of net investment income to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 3.60% | 3.47% | 2.48% | 2.01% | 1.18% | ||||||||||
Portfolio turnover | 256% | 238% | 298% | 352% | 383% |
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |
2 The average shares outstanding method has been applied for per share information. | |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 85
Financial highlights
Optimum Fixed Income Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $9.060 | $8.750 | $8.900 | $8.990 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income2 | 0.343 | 0.341 | 0.258 | 0.221 | 0.133 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.066 | ) | 0.255 | (0.199 | ) | (0.055 | ) | 0.420 | |||||||
Total from investment operations | 0.277 | 0.596 | 0.059 | 0.166 | 0.553 | ||||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.321 | ) | (0.286 | ) | (0.195 | ) | (0.176 | ) | (0.053 | ) | |||||
Net realized gain on investments | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | (0.010 | ) | ||||||
Total dividends and distributions | (0.397 | ) | (0.286 | ) | (0.209 | ) | (0.256 | ) | (0.063 | ) | |||||
Net asset value, end of period | $8.940 | $9.060 | $8.750 | $8.900 | $8.990 | ||||||||||
Total return3 | 3.11% | 6.88% | 0.65% | 1.88% | 6.52% | ||||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $257,340 | $227,036 | $186,869 | $125,301 | $52,649 | ||||||||||
Ratio of expenses to average net assets | 1.89% | 1.90% | 1.90% | 1.89% | 1.85% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.08% | 2.26% | 2.32% | 2.35% | 2.90% | ||||||||||
Ratio of net investment income to average net assets | 3.79% | 3.83% | 2.90% | 2.47% | 2.23% | ||||||||||
Ratio of net investment income to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 3.60% | 3.47% | 2.48% | 2.01% | 1.18% | ||||||||||
Portfolio turnover | 256% | 238% | 298% | 352% | 383% |
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |
2 The average shares outstanding method has been applied for per share information. | |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
86
Optimum Fixed Income Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $9.050 | $8.730 | $8.890 | $8.970 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income2 | 0.434 | 0.431 | 0.348 | 0.310 | 0.192 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.076 | ) | 0.265 | (0.209 | ) | (0.050 | ) | 0.407 | |||||||
Total from investment operations | 0.358 | 0.696 | 0.139 | 0.260 | 0.599 | ||||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.412 | ) | (0.376 | ) | (0.285 | ) | (0.260 | ) | (0.119 | ) | |||||
Net realized gain on investments | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | (0.010 | ) | ||||||
Total dividends and distributions | (0.488 | ) | (0.376 | ) | (0.299 | ) | (0.340 | ) | (0.129 | ) | |||||
Net asset value, end of period | $8.920 | $9.050 | $8.730 | $8.890 | $8.970 | ||||||||||
Total return3 | 4.04% | 8.09% | 1.56% | 2.96% | 7.07% | ||||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $597,388 | $454,154 | $309,363 | $153,085 | $22,276 | ||||||||||
Ratio of expenses to average net assets | 0.89% | 0.90% | 0.90% | 0.89% | 0.85% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.08% | 1.26% | 1.32% | 1.35% | 1.90% | ||||||||||
Ratio of net investment income to average net assets | 4.79% | 4.83% | 3.90% | 3.47% | 3.23% | ||||||||||
Ratio of net investment income to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 4.60% | 4.47% | 3.48% | 3.01% | 2.18% | ||||||||||
Portfolio turnover | 256% | 238% | 298% | 352% | 383% |
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |
2 The average shares outstanding method has been applied for per share information. | |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 87
Financial highlights
Optimum International Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $15.490 | $13.470 | $11.660 | $10.670 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income2 | 0.262 | 0.112 | 0.180 | 0.050 | 0.021 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.798 | ) | 2.661 | 2.456 | 1.069 | 2.155 | |||||||||
Total from investment operations | (0.536 | ) | 2.773 | 2.636 | 1.119 | 2.176 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.116 | ) | (0.172 | ) | (0.074 | ) | — | — | |||||||
Net realized gain on investments | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | (0.006 | ) | |||||
Total dividends and distributions | (1.114 | ) | (0.753 | ) | (0.826 | ) | (0.129 | ) | (0.006 | ) | |||||
Net asset value, end of period | $13.840 | $15.490 | $13.470 | $11.660 | $10.670 | ||||||||||
Total return3 | (3.96% | ) | 21.26% | 23.54% | 10.62% | 25.61% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $22,971 | $25,523 | $20,247 | $11,300 | $4,083 | ||||||||||
Ratio of expenses to average net assets | 1.75% | 1.96% | 1.96% | 1.98% | 1.92% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.75% | 1.96% | 2.20% | 2.30% | 3.82% | ||||||||||
Ratio of net investment income to average net assets | 1.69% | 0.78% | 1.47% | 0.45% | 0.30% | ||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.69% | 0.78% | 1.23% | 0.13% | (1.60% | ) | |||||||||
Portfolio turnover | 19% | 18% | 68% | 82% | 49% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
88
Optimum International Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $15.240 | $13.290 | $11.530 | $10.620 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss)2 | 0.163 | 0.021 | 0.102 | (0.020 | ) | (0.023 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.787 | ) | 2.614 | 2.426 | 1.059 | 2.149 | |||||||||
Total from investment operations | (0.624 | ) | 2.635 | 2.528 | 1.039 | 2.126 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.038 | ) | (0.104 | ) | (0.016 | ) | — | — | |||||||
Net realized gain on investments | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | (0.006 | ) | |||||
Total dividends and distributions | (1.036 | ) | (0.685 | ) | (0.768 | ) | (0.129 | ) | (0.006 | ) | |||||
Net asset value, end of period | $13.580 | $15.240 | $13.290 | $11.530 | $10.620 | ||||||||||
Total return3 | (4.59% | ) | 20.44% | 22.81% | 9.91% | 25.02% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $4,203 | $5,031 | $4,594 | $3,386 | $1,624 | ||||||||||
Ratio of expenses to average net assets | 2.40% | 2.61% | 2.61% | 2.63% | 2.57% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.40% | 2.61% | 2.85% | 2.95% | 4.47% | ||||||||||
Ratio of net investment income (loss) to average net assets | 1.04% | 0.13% | 0.82% | (0.20% | ) | (0.35% | ) | ||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.04% | 0.13% | 0.58% | (0.52% | ) | (2.25% | ) | ||||||||
Portfolio turnover | 19% | 18% | 68% | 82% | 49% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 89
Financial highlights
Optimum International Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $15.250 | $13.290 | $11.540 | $10.620 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss)2 | 0.163 | 0.021 | 0.102 | (0.020 | ) | (0.023 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.787 | ) | 2.624 | 2.416 | 1.069 | 2.149 | |||||||||
Total from investment operations | (0.624 | ) | 2.645 | 2.518 | 1.049 | 2.126 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.038 | ) | (0.104 | ) | (0.016 | ) | — | — | |||||||
Net realized gain on investments | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | (0.006 | ) | |||||
Total dividends and distributions | (1.036 | ) | (0.685 | ) | (0.768 | ) | (0.129 | ) | (0.006 | ) | |||||
Net asset value, end of period | $13.590 | $15.250 | $13.290 | $11.540 | $10.620 | ||||||||||
Total return3 | (4.59% | ) | 20.51% | 22.69% | 10.01% | 25.02% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $84,431 | $91,696 | $70,828 | $38,517 | $14,339 | ||||||||||
Ratio of expenses to average net assets | 2.40% | 2.61% | 2.61% | 2.63% | 2.57% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.40% | 2.61% | 2.85% | 2.95% | 4.47% | ||||||||||
Ratio of net investment income (loss) to average net assets | 1.04% | 0.13% | 0.82% | (0.20% | ) | (0.35% | ) | ||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.04% | 0.13% | 0.58% | (0.52% | ) | (2.25% | ) | ||||||||
Portfolio turnover | 19% | 18% | 68% | 82% | 49% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
90
Optimum International Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $15.590 | $13.550 | $11.720 | $10.690 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income2 | 0.317 | 0.162 | 0.224 | 0.089 | 0.045 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.797 | ) | 2.679 | 2.464 | 1.079 | 2.151 | |||||||||
Total from investment operations | (0.480 | ) | 2.841 | 2.688 | 1.168 | 2.196 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.172 | ) | (0.220 | ) | (0.106 | ) | (0.009 | ) | — | ||||||
Net realized gain on investments | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | (0.006 | ) | |||||
Total dividends and distributions | (1.170 | ) | (0.801 | ) | (0.858 | ) | (0.138 | ) | (0.006 | ) | |||||
Net asset value, end of period | $13.940 | $15.590 | $13.550 | $11.720 | $10.690 | ||||||||||
Total return3 | (3.59% | ) | 21.68% | 23.91% | 11.08% | 25.84% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $174,954 | $154,198 | $99,733 | $44,149 | $9,302 | ||||||||||
Ratio of expenses to average net assets | 1.40% | 1.61% | 1.61% | 1.63% | 1.57% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.40% | 1.61% | 1.85% | 1.95% | 3.47% | ||||||||||
Ratio of net investment income to average net assets | 2.04% | 1.13% | 1.82% | 0.80% | 0.65% | ||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.04% | 1.13% | 1.58% | 0.48% | (1.25% | ) | |||||||||
Portfolio turnover | 19% | 18% | 68% | 82% | 49% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 91
Financial highlights
Optimum Large Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $11.980 | $11.540 | $10.020 | $9.570 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.021 | ) | (0.047 | ) | (0.057 | ) | (0.036 | ) | (0.037 | ) | |||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.406 | ) | 0.692 | 1.577 | 0.486 | 1.107 | |||||||||
Total from investment operations | (0.427 | ) | 0.645 | 1.520 | 0.450 | 1.070 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (0.296 | ) | (0.205 | ) | — | — | — | ||||||||
Return of capital | (0.037 | ) | — | — | — | — | |||||||||
Total dividends and distributions | (0.333 | ) | (0.205 | ) | — | — | — | ||||||||
Net asset value, end of period | $11.220 | $11.980 | $11.540 | $10.020 | $9.570 | ||||||||||
Total return3 | (3.86% | ) | 5.75% | 15.17% | 4.70% | 12.59% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $54,022 | $56,088 | $47,283 | $26,252 | $9,337 | ||||||||||
Ratio of expenses to average net assets | 1.60% | 1.69% | 1.69% | 1.67% | 1.61% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.60% | 1.77% | 1.84% | 1.87% | 2.51% | ||||||||||
Ratio of net investment loss to average net assets | (0.17% | ) | (0.41% | ) | (0.52% | ) | (0.37% | ) | (0.61% | ) | |||||
Ratio of net investment loss to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | (0.17% | ) | (0.49% | ) | (0.67% | ) | (0.57% | ) | (1.51% | ) | |||||
Portfolio turnover | 59% | 37% | 48% | 37% | 51% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
92
Optimum Large Cap Growth Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | �� | 3/31/04 | ||||||||||
Net asset value, beginning of period | $11.700 | $11.340 | $9.910 | $9.530 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.100 | ) | (0.119 | ) | (0.126 | ) | (0.099 | ) | (0.077 | ) | |||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.397 | ) | 0.684 | 1.556 | 0.479 | 1.107 | |||||||||
Total from investment operations | (0.497 | ) | 0.565 | 1.430 | 0.380 | 1.030 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (0.296 | ) | (0.205 | ) | — | — | — | ||||||||
Return of capital | (0.037 | ) | — | — | — | — | |||||||||
Total dividends and distributions | (0.333 | ) | (0.205 | ) | — | — | — | ||||||||
Net asset value, end of period | $10.870 | $11.700 | $11.340 | $9.910 | $9.530 | ||||||||||
Total return3 | (4.56% | ) | 5.14% | 14.43% | 3.99% | 12.12% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $9,345 | $10,819 | $10,168 | $7,603 | $3,568 | ||||||||||
Ratio of expenses to average net assets | 2.25% | 2.34% | 2.34% | 2.32% | 2.26% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.25% | 2.42% | 2.49% | 2.52% | 3.16% | ||||||||||
Ratio of net investment loss to average net assets | (0.82% | ) | (1.06% | ) | (1.17% | ) | (1.02% | ) | (1.26% | ) | |||||
Ratio of net investment loss to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | (0.82% | ) | (1.14% | ) | (1.32% | ) | (1.22% | ) | (2.16% | ) | |||||
Portfolio turnover | 59% | 37% | 48% | 37% | 51% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 93
Financial highlights
Optimum Large Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $11.700 | $11.340 | $9.910 | $9.530 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.100 | ) | (0.119 | ) | (0.126 | ) | (0.099 | ) | (0.077 | ) | |||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.397 | ) | 0.684 | 1.556 | 0.479 | 1.107 | |||||||||
Total from investment operations | (0.497 | ) | 0.565 | 1.430 | 0.380 | 1.030 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (0.296 | ) | (0.205 | ) | — | — | — | ||||||||
Return of capital | (0.037 | ) | — | — | — | — | |||||||||
Total dividends and distributions | (0.333 | ) | (0.205 | ) | — | — | — | ||||||||
Net asset value, end of period | $10.870 | $11.700 | $11.340 | $9.910 | $9.530 | ||||||||||
Total return3 | (4.56% | ) | 5.14% | 14.43% | 3.99% | 12.12% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $203,394 | $203,591 | $164,995 | $91,434 | $35,143 | ||||||||||
Ratio of expenses to average net assets | 2.25% | 2.34% | 2.34% | 2.32% | 2.26% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.25% | 2.42% | 2.49% | 2.52% | 3.16% | ||||||||||
Ratio of net investment loss to average net assets | (0.82% | ) | (1.06% | ) | (1.17% | ) | (1.02% | ) | (1.26% | ) | |||||
Ratio of net investment loss to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | (0.82% | ) | (1.14% | ) | (1.32% | ) | (1.22% | ) | (2.16% | ) | |||||
Portfolio turnover | 59% | 37% | 48% | 37% | 51% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
94
Optimum Large Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $12.140 | $11.650 | $10.080 | $9.590 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss)2 | 0.023 | (0.006 | ) | (0.019 | ) | (0.002 | ) | (0.015 | ) | ||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.420 | ) | 0.701 | 1.589 | 0.492 | 1.105 | |||||||||
Total from investment operations | (0.397 | ) | 0.695 | 1.570 | 0.490 | 1.090 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (0.296 | ) | (0.205 | ) | — | — | — | ||||||||
Return of capital | (0.037 | ) | — | — | — | — | |||||||||
Total dividends and distributions | (0.333 | ) | (0.205 | ) | — | — | — | ||||||||
Net asset value, end of period | $11.410 | $12.140 | $11.650 | $10.080 | $9.590 | ||||||||||
Total return3 | (3.56% | ) | 6.13% | 15.57% | 5.11% | 12.82% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $723,347 | $518,509 | $355,961 | $158,200 | $21,557 | ||||||||||
Ratio of expenses to average net assets | 1.25% | 1.34% | 1.34% | 1.32% | 1.26% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.25% | 1.42% | 1.49% | 1.52% | 2.16% | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.18% | (0.06% | ) | (0.17% | ) | (0.02% | ) | (0.26% | ) | ||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 0.18% | (0.14% | ) | (0.32% | ) | (0.22% | ) | (1.16% | ) | ||||||
Portfolio turnover | 59% | 37% | 48% | 37% | 51% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 95
Financial highlights
Optimum Large Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $12.730 | $11.320 | $10.840 | $9.830 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income2 | 0.138 | 0.128 | 0.092 | 0.074 | 0.038 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.931 | ) | 1.614 | 0.947 | 1.100 | 1.331 | |||||||||
Total from investment operations | (0.793 | ) | 1.742 | 1.039 | 1.174 | 1.369 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.134 | ) | (0.104 | ) | (0.065 | ) | (0.028 | ) | (0.023 | ) | |||||
Net realized gain on investments | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||
Total dividends and distributions | (0.767 | ) | (0.332 | ) | (0.559 | ) | (0.164 | ) | (0.039 | ) | |||||
Net asset value, end of period | $11.170 | $12.730 | $11.320 | $10.840 | $9.830 | ||||||||||
Total return3 | (6.80% | ) | 15.65% | 9.82% | 12.04% | 16.12% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $53,097 | $58,161 | $45,666 | $27,524 | $9,115 | ||||||||||
Ratio of expenses to average net assets | 1.54% | 1.55% | 1.55% | 1.53% | 1.50% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.56% | 1.73% | 1.83% | 1.84% | 2.52% | ||||||||||
Ratio of net investment income to average net assets | 1.09% | 1.07% | 0.83% | 0.72% | 0.59% | ||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.07% | 0.89% | 0.55% | 0.41% | (0.43% | ) | |||||||||
Portfolio turnover | 30% | 22% | 52% | 38% | 38% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
96
Optimum Large Cap Value Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $12.640 | $11.240 | $10.780 | $9.810 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss)2 | 0.056 | 0.052 | 0.021 | 0.008 | (0.003 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.923 | ) | 1.606 | 0.933 | 1.098 | 1.329 | |||||||||
Total from investment operations | (0.867 | ) | 1.658 | 0.954 | 1.106 | 1.326 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.050 | ) | (0.030 | ) | — | — | — | ||||||||
Net realized gain on investments | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||
Total dividends and distributions | (0.683 | ) | (0.258 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||
Net asset value, end of period | $11.090 | $12.640 | $11.240 | $10.780 | $9.810 | ||||||||||
Total return3 | (7.38% | ) | 14.97% | 9.05% | 11.36% | 15.61% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $9,454 | $11,403 | $10,103 | $8,072 | $3,609 | ||||||||||
Ratio of expenses to average net assets | 2.19% | 2.20% | 2.20% | 2.18% | 2.15% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.21% | 2.38% | 2.48% | 2.49% | 3.17% | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.44% | 0.42% | 0.18% | 0.07% | (0.06% | ) | |||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 0.42% | 0.24% | (0.10% | ) | (0.24% | ) | (1.08% | ) | |||||||
Portfolio turnover | 30% | 22% | 52% | 38% | 38% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 97
Financial highlights
Optimum Large Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $12.630 | $11.240 | $10.780 | $9.810 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss)2 | 0.057 | 0.051 | 0.021 | 0.008 | (0.003 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.924 | ) | 1.597 | 0.933 | 1.098 | 1.329 | |||||||||
Total from investment operations | (0.867 | ) | 1.648 | 0.954 | 1.106 | 1.326 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.050 | ) | (0.030 | ) | — | — | — | ||||||||
Net realized gain on investments | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||
Total dividends and distributions | (0.683 | ) | (0.258 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||
Net asset value, end of period | $11.080 | $12.630 | $11.240 | $10.780 | $9.810 | ||||||||||
Total return3 | (7.39% | ) | 14.88% | 9.16% | 11.36% | 15.61% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $205,501 | $216,527 | $163,876 | $97,823 | $35,732 | ||||||||||
Ratio of expenses to average net assets | 2.19% | 2.20% | 2.20% | 2.18% | 2.15% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.21% | 2.38% | 2.48% | 2.49% | 3.17% | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.44% | 0.42% | 0.18% | 0.07% | (0.06% | ) | |||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 0.42% | 0.24% | (0.10% | ) | (0.24% | ) | (1.08% | ) | |||||||
Portfolio turnover | 30% | 22% | 52% | 38% | 38% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
98
Optimum Large Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $12.750 | $11.330 | $10.860 | $9.840 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income2 | 0.183 | 0.170 | 0.131 | 0.110 | 0.060 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (0.931 | ) | 1.623 | 0.936 | 1.110 | 1.330 | |||||||||
Total from investment operations | (0.748 | ) | 1.793 | 1.067 | 1.220 | 1.390 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.179 | ) | (0.145 | ) | (0.103 | ) | (0.064 | ) | (0.034 | ) | |||||
Net realized gain on investments | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||
Total dividends and distributions | (0.812 | ) | (0.373 | ) | (0.597 | ) | (0.200 | ) | (0.050 | ) | |||||
Net asset value, end of period | $11.190 | $12.750 | $11.330 | $10.860 | $9.840 | ||||||||||
Total return3 | (6.46% | ) | 16.12% | 10.19% | 12.41% | 16.38% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $607,637 | $508,000 | $319,857 | $140,341 | $17,962 | ||||||||||
Ratio of expenses to average net assets | 1.19% | 1.20% | 1.20% | 1.18% | 1.15% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.21% | 1.38% | 1.48% | 1.49% | 2.17% | ||||||||||
Ratio of net investment income to average net assets | 1.44% | 1.42% | 1.18% | 1.07% | 0.94% | ||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 1.42% | 1.24% | 0.90% | 0.76% | (0.08% | ) | |||||||||
Portfolio turnover | 30% | 22% | 52% | 38% | 38% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 99
Financial highlights
Optimum Small-Mid Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $14.070 | $14.340 | $11.750 | $11.260 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.177 | ) | (0.155 | ) | (0.176 | ) | (0.161 | ) | (0.100 | ) | |||||
Net realized and unrealized gain (loss) on investments | (1.952 | ) | 0.188 | 2.766 | 0.653 | 2.860 | |||||||||
Total from investment operations | (2.129 | ) | 0.033 | 2.590 | 0.492 | 2.760 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (0.651 | ) | (0.303 | ) | — | (0.002 | ) | — | |||||||
Return of capital | (0.010 | ) | — | — | — | — | |||||||||
Total dividends and distributions | (0.661 | ) | (0.303 | ) | — | (0.002 | ) | — | |||||||
Net asset value, end of period | $11.280 | $14.070 | $14.340 | $11.750 | $11.260 | ||||||||||
Total return3 | (15.96% | ) | 0.37% | 22.04% | 4.37% | 32.47% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $9,282 | $12,088 | $11,984 | $6,133 | $2,115 | ||||||||||
Ratio of expenses to average net assets | 1.92% | 1.95% | 1.95% | 1.80% | 1.81% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | 2.11% | 2.32% | 2.46% | 2.69% | 4.11% | ||||||||||
Ratio of net investment loss to average net assets | (1.27% | ) | (1.15% | ) | (1.38% | ) | (1.42% | ) | (1.41% | ) | |||||
Ratio of net investment loss to average net assets | |||||||||||||||
prior to expense limitation and expense paid indirectly | (1.46% | ) | (1.52% | ) | (1.89% | ) | (2.31% | ) | (3.71% | ) | |||||
Portfolio turnover | 46% | 46% | 47% | 44% | 16% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 The average shares outstanding method has been applied for per share information. |
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
100
Optimum Small-Mid Cap Growth Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $13.750 | $14.110 | $11.640 | $11.230 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.265 | ) | (0.240 | ) | (0.257 | ) | (0.233 | ) | (0.146 | ) | |||||
Net realized and unrealized gain (loss) on investments | (1.894 | ) | 0.183 | 2.727 | 0.645 | 2.876 | |||||||||
Total from investment operations | (2.159 | ) | (0.057 | ) | 2.470 | 0.412 | 2.730 | ||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (0.651 | ) | (0.303 | ) | — | (0.002 | ) | — | |||||||
Return of capital | (0.010 | ) | — | — | — | — | |||||||||
Total dividends and distributions | (0.661 | ) | (0.303 | ) | — | (0.002 | ) | — | |||||||
Net asset value, end of period | $10.930 | $13.750 | $14.110 | $11.640 | $11.230 | ||||||||||
Total return3 | (16.56% | ) | (0.27% | ) | 21.22% | 3.67% | 32.12% | ||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $1,620 | $2,187 | $2,285 | $1,665 | $792 | ||||||||||
Ratio of expenses to average net assets | 2.57% | 2.60% | 2.60% | 2.45% | 2.46% | ||||||||||
Ratio of expenses to average net assets prior to expense limitation and expense paid indirectly | 2.76% | 2.97% | 3.11% | 3.34% | 4.76% | ||||||||||
Ratio of net investment loss to average net assets | (1.92% | ) | (1.80% | ) | (2.03% | ) | (2.07% | ) | (2.06% | ) | |||||
Ratio of net investment loss to average net assets prior to expense limitation and expense paid indirectly | (2.11% | ) | (2.17% | ) | (2.54% | ) | (2.96% | ) | (4.36% | ) | |||||
Portfolio turnover | 46% | 46% | 47% | 44% | 16% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |||||||||||||||
2 The average shares outstanding method has been applied for per share information. | |||||||||||||||
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 101
Financial highlights
Optimum Small-Mid Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $13.750 | $14.110 | $11.640 | $11.230 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.264 | ) | (0.240 | ) | (0.257 | ) | (0.233 | ) | (0.146 | ) | |||||
Net realized and unrealized gain (loss) on investments | (1.895 | ) | 0.183 | 2.727 | 0.645 | 2.876 | |||||||||
Total from investment operations | (2.159 | ) | (0.057 | ) | 2.470 | 0.412 | 2.730 | ||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (0.651 | ) | (0.303 | ) | — | (0.002 | ) | — | |||||||
Return of capital | (0.010 | ) | — | — | — | — | |||||||||
Total dividends and distributions | (0.661 | ) | (0.303 | ) | — | (0.002 | ) | — | |||||||
Net asset value, end of period | $10.930 | $13.750 | $14.110 | $11.640 | $11.230 | ||||||||||
Total return3 | (16.56% | ) | (0.27% | ) | 21.22% | 3.67% | 32.12% | ||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $34,086 | $40,324 | $36,537 | $19,883 | $7,521 | ||||||||||
Ratio of expenses to average net assets | 2.57% | 2.60% | 2.60% | 2.45% | 2.46% | ||||||||||
Ratio of expenses to average net assets prior to expense limitation and expense paid indirectly | 2.76% | 2.97% | 3.11% | 3.34% | 4.76% | ||||||||||
Ratio of net investment loss to average net assets | (1.92% | ) | (1.80% | ) | (2.03% | ) | (2.07% | ) | (2.06% | ) | |||||
Ratio of net investment loss to average net assets prior to expense limitation and expense paid indirectly | (2.11% | ) | (2.17% | ) | (2.54% | ) | (2.96% | ) | (4.36% | ) | |||||
Portfolio turnover | 46% | 46% | 47% | 44% | 16% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |||||||||||||||
2 The average shares outstanding method has been applied for per share information. | |||||||||||||||
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
102
Optimum Small-Mid Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $14.250 | $14.470 | $11.820 | $11.280 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.128 | ) | (0.108 | ) | (0.131 | ) | (0.121 | ) | (0.075 | ) | |||||
Net realized and unrealized gain (loss) on investments | (1.991 | ) | 0.191 | 2.781 | 0.663 | 2.855 | |||||||||
Total from investment operations | (2.119 | ) | 0.083 | 2.650 | 0.542 | 2.780 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (0.651 | ) | (0.303 | ) | — | (0.002 | ) | — | |||||||
Return of capital | (0.010 | ) | — | — | — | — | |||||||||
Total dividends and distributions | (0.661 | ) | (0.303 | ) | — | (0.002 | ) | — | |||||||
Net asset value, end of period | $11.470 | $14.250 | $14.470 | $11.820 | $11.280 | ||||||||||
Total return3 | (15.68% | ) | 0.72% | 22.42% | 4.81% | 32.71% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $90,614 | $84,934 | $67,466 | $31,827 | $10,212 | ||||||||||
Ratio of expenses to average net assets | 1.57% | 1.60% | 1.60% | 1.45% | 1.46% | ||||||||||
Ratio of expenses to average net assets prior to expense limitation and expense paid indirectly | 1.76% | 1.97% | 2.11% | 2.34% | 3.76% | ||||||||||
Ratio of net investment loss to average net assets | (0.92% | ) | (0.80% | ) | (1.03% | ) | (1.07% | ) | (1.06% | ) | |||||
Ratio of net investment loss to average net assets prior to expense limitation and expense paid indirectly | (1.11% | ) | (1.17% | ) | (1.54% | ) | (1.96% | ) | (3.36% | ) | |||||
Portfolio turnover | 46% | 46% | 47% | 44% | 16% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |||||||||||||||
2 The average shares outstanding method has been applied for per share information. | |||||||||||||||
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 103
Financial highlights
Optimum Small-Mid Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $13.540 | $13.590 | $12.410 | $11.010 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.025 | ) | (0.020 | ) | (0.022 | ) | (0.055 | ) | (0.046 | ) | |||||
Net realized and unrealized gain (loss) on investments | (2.102 | ) | 0.759 | 2.043 | 1.801 | 2.616 | |||||||||
Total from investment operations | (2.127 | ) | 0.739 | 2.021 | 1.746 | 2.570 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||
Total dividends and distributions | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||
Net asset value, end of period | $10.380 | $13.540 | $13.590 | $12.410 | $11.010 | ||||||||||
Total return3 | (16.34% | ) | 5.93% | 17.17% | 16.12% | 30.30% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $9,145 | $12,721 | $13,300 | $7,297 | $2,126 | ||||||||||
Ratio of expenses to average net assets | 1.76% | 1.76% | 1.76% | 1.73% | 1.67% | ||||||||||
Ratio of expenses to average net assets prior to expense limitation and expense paid indirectly | 2.09% | 2.32% | 2.58% | 2.61% | 4.08% | ||||||||||
Ratio of net investment loss to average net assets | (0.20% | ) | (0.16% | ) | (0.17% | ) | (0.47% | ) | (0.69% | ) | |||||
Ratio of net investment loss to average net assets prior to expense limitation and expense paid indirectly | (0.53% | ) | (0.72% | ) | (0.99% | ) | (1.35% | ) | (3.10% | ) | |||||
Portfolio turnover | 53% | 49% | 42% | 46% | 40% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |||||||||||||||
2 The average shares outstanding method has been applied for per share information. | |||||||||||||||
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
104
Optimum Small-Mid Cap Value Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $13.190 | $13.350 | $12.280 | $10.970 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.102 | ) | (0.101 | ) | (0.102 | ) | (0.129 | ) | (0.090 | ) | |||||
Net realized and unrealized gain (loss) on investments | (2.025 | ) | 0.730 | 2.013 | 1.785 | 2.620 | |||||||||
Total from investment operations | (2.127 | ) | 0.629 | 1.911 | 1.656 | 2.530 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||
Total dividends and distributions | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||
Net asset value, end of period | $10.030 | $13.190 | $13.350 | $12.280 | $10.970 | ||||||||||
Total return3 | (16.79% | ) | 5.27% | 16.35% | 15.35% | 29.83% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $1,636 | $2,239 | $2,359 | $1,859 | $819 | ||||||||||
Ratio of expenses to average net assets | 2.41% | 2.41% | 2.41% | 2.38% | 2.32% | ||||||||||
Ratio of expenses to average net assets prior to expense limitation and expense paid indirectly | 2.74% | 2.97% | 3.23% | 3.26% | 4.73% | ||||||||||
Ratio of net investment loss to average net assets | (0.85% | ) | (0.81% | ) | (0.82% | ) | (1.12% | ) | (1.34% | ) | |||||
Ratio of net investment loss to average net assets prior to expense limitation and expense paid indirectly | (1.18% | ) | (1.37% | ) | (1.64% | ) | (2.00% | ) | (3.75% | ) | |||||
Portfolio turnover | 53% | 49% | 42% | 46% | 40% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |||||||||||||||
2 The average shares outstanding method has been applied for per share information. | |||||||||||||||
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 105
Financial highlights
Optimum Small-Mid Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $13.190 | $13.350 | $12.280 | $10.970 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss2 | (0.102 | ) | (0.101 | ) | (0.102 | ) | (0.129 | ) | (0.090 | ) | |||||
Net realized and unrealized gain (loss) on investments | (2.035 | ) | 0.730 | 2.013 | 1.785 | 2.620 | |||||||||
Total from investment operations | (2.137 | ) | 0.629 | 1.911 | 1.656 | 2.530 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||
Total dividends and distributions | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||
Net asset value, end of period | $10.020 | $13.190 | $13.350 | $12.280 | $10.970 | ||||||||||
Total return3 | (16.79% | ) | 5.27% | 16.35% | 15.35% | 29.83% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $32,891 | $41,622 | $38,782 | $23,869 | $9,018 | ||||||||||
Ratio of expenses to average net assets | 2.41% | 2.41% | 2.41% | 2.38% | 2.32% | ||||||||||
Ratio of expenses to average net assets prior to expense limitation and expense paid indirectly | 2.74% | 2.97% | 3.23% | 3.26% | 4.73% | ||||||||||
Ratio of net investment loss to average net assets | (0.85% | ) | (0.81% | ) | (0.82% | ) | (1.12% | ) | (1.34% | ) | |||||
Ratio of net investment loss to average net assets prior to expense limitation and expense paid indirectly | (1.18% | ) | (1.37% | ) | (1.64% | ) | (2.00% | ) | (3.75% | ) | |||||
Portfolio turnover | 53% | 49% | 42% | 46% | 40% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |||||||||||||||
2 The average shares outstanding method has been applied for per share information. | |||||||||||||||
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
106
Optimum Small-Mid Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
8/1/031 | |||||||||||||||
Year Ended | to | ||||||||||||||
3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||
Net asset value, beginning of period | $13.720 | $13.720 | $12.470 | $11.040 | $8.500 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss)2 | 0.018 | 0.025 | 0.023 | (0.014 | ) | (0.022 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | (2.125 | ) | 0.764 | 2.068 | 1.790 | 2.622 | |||||||||
Total from investment operations | (2.107 | ) | 0.789 | 2.091 | 1.776 | 2.600 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net realized gain on investments | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||
Total dividends and distributions | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||
Net asset value, end of period | $10.580 | $13.720 | $13.720 | $12.470 | $11.040 | ||||||||||
Total return3 | (15.97% | ) | 6.24% | 17.66% | 16.35% | 30.66% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $66,657 | $71,387 | $54,803 | $26,900 | $9,262 | ||||||||||
Ratio of expenses to average net assets | 1.41% | 1.41% | 1.41% | 1.38% | 1.32% | ||||||||||
Ratio of expenses to average net assets prior to expense limitation and expense paid indirectly | 1.74% | 1.97% | 2.23% | 2.26% | 3.73% | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.15% | 0.19% | 0.18% | (0.12% | ) | (0.34% | ) | ||||||||
Ratio of net investment loss to average net assets prior to expense limitation and expense paid indirectly | (0.18% | ) | (0.37% | ) | (0.64% | ) | (1.00% | ) | (2.75% | ) | |||||
Portfolio turnover | 53% | 49% | 42% | 46% | 40% | ||||||||||
1 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. | |||||||||||||||
2 The average shares outstanding method has been applied for per share information. | |||||||||||||||
3 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
107
Notes to financial statements
Optimum Fund Trust
March 31, 2008
Optimum Fund Trust (Trust) is organized as a Delaware statutory trust and offers six series: Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund (formerly Optimum Small Cap Growth Fund), and Optimum Small-Mid Cap Value Fund (formerly Optimum Small Cap Value Fund), (each, a Fund, or collectively, the Funds). The Trust is an open-end investment company. The Funds are considered diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, Class C and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of 5.75% for Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund and 4.50% for Optimum Fixed Income Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Effective August 1, 2007, Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Prior to August 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first 12 months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.
The investment objective of Optimum Fixed Income Fund is to seek a high level of income. The Fund may also seek growth of capital.
The investment objective of Optimum International Fund is to seek long-term growth of capital. The Fund may also seek income.
The investment objective of Optimum Large Cap Growth Fund is to seek long-term growth of capital.
The investment objective of Optimum Large Cap Value Fund is to seek long-term growth of capital. The Fund may also seek income.
The investment objective of Optimum Small-Mid Cap Growth Fund is to seek long-term growth of capital.
The investment objective of Optimum Small-Mid Cap Value Fund is to seek long-term growth of capital.
1. Significant Accounting Policies
The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by the Trust.
Security Valuation — Equity securities, except those traded on the Nasdaq Stock Market, Inc. (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. Securities traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If on a particular day an equity security does not trade, then the mean between the bid and asked prices will be used. Securities listed on a foreign exchange are valued at the last quoted sales price on the valuation date. U.S. government and agency securities are valued at the mean between the bid and asked prices. Other long-term debt securities, credit default swap (CDS) contracts and interest rate swap contracts are valued by an independent pricing service or broker and such prices are believed to reflect the fair value of such securities. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Securities lending collateral, which is invested in a collective investment vehicle (Collective Trust), is valued at unit value per share. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and asked prices. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Futures contracts and options on futures contracts are valued at the daily quoted settlement prices. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and asked prices. Generally, index swap contracts and other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Funds’ Board of Trustees. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, or with respect to foreign securities, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events).
In September 2006, the Financial Accounting Standards Board (FASB) issued FASB Statement No. 157 “Fair Value Measurements” (Statement 157). Statement 157 establishes a framework for measuring fair value in U.S. generally accepted accounting principles, clarifies the definition of fair value within that framework, and expands disclosures about the use of fair value measurements. Statement 157 is intended to increase consistency and comparability among fair value estimates used in financial reporting. Statement 157 is effective for fiscal years beginning after November 15, 2007. Management does not expect the adoption of Statement 157 to have a material impact on the amounts reported in the financial statements.
Federal Income Taxes — Each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes has been made in the financial statements.
Effective September 28, 2007, the Funds adopted 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. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The adoption of FIN 48 did not result in the recording of any tax benefit or expense in the current period.
108
1. Significant Accounting Policies (continued)
Class Accounting — Investment income, common expenses and realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Repurchase Agreements — Each Fund may invest in a pooled cash account along with other members of the Delaware Investments® Family of Funds pursuant to an exemptive order issued by the Securities and Exchange Commission. The aggregate daily balance of the pooled cash account is invested in repurchase agreements secured by obligations of the U.S. government. The respective collateral is held by each Fund’s custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is at least 102% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings.
Foreign Currency Transactions — Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date. The value of all assets and liabilities denominated in foreign currencies is translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar daily. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Funds isolate that portion of realized gains and losses on investments in debt securities, which are due to changes in foreign exchange rates from that which are due to changes in market prices of debt securities. For foreign equity securities, these changes are included in realized gains (losses) on investments. The Funds report certain foreign currency related transactions as components of realized gains (losses) for financial reporting purposes, whereas such components are treated as ordinary income (loss) for federal income tax purposes.
Use of Estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Other — Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Trust are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums on non-convertible bonds are amortized to interest income over the lives of the respective securities. Realized gains (losses) on paydowns of mortgage- and asset-backed securities are classified as interest income. Distributions received from investments in Real Estate Investment Trusts (REITs) are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Funds are aware of such dividends, net of all non-rebatable tax withholdings. Withholding taxes on foreign dividends have been recorded in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.
Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund expect to declare and pay dividends from net investment income, if any, annually. Optimum Fixed Income Fund expects to declare and pay dividends from net investment income quarterly. Each Fund will declare and pay distributions from net realized gain on investments, if any, at least annually, and may distribute net capital gains twice a year. In addition, in order to satisfy certain distribution requirements of the Tax Reform Act of 1986, each Fund may declare special year-end dividend and capital gains distributions during November or December to shareholders of record on a date in such month. Such distributions, if received by shareholders by January, are deemed to have been paid by a Fund and received by shareholders on the earlier of the date paid or December 31 of the prior year.
The Funds receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. The expense paid under this arrangement is included in custodian fees on the statements of operations with the corresponding expense offset shown as “expense paid indirectly”.
2. Investment Management, Administration Agreements and Other Transactions with Affiliates
Delaware Management Company (DMC), a series of Delaware Management Business Trust, furnishes investment management services to each Fund and has full discretion and responsibility, subject to the overall supervision of the Trust’s Board of Trustees, to select and contract with one or more investment sub-advisers to manage the investment operations and composition of each Fund, and to render investment advice for each Fund, including the purchase, retention, and dispositions of investments, securities and cash contained in each Fund. The investment management agreement obligates DMC to implement decisions with respect to the allocation or reallocation of each Fund’s assets among one or more current or additional sub-advisers, and to monitor the sub-advisers’ compliance with the relevant Fund’s investment objective, policies and restrictions. DMC pays the sub-advisers out of its fees.
(continues) 109
Notes to financial statements
Optimum Fund Trust
2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)
In accordance with the terms of its respective investment management agreement, DMC is entitled to receive an annual fee equal to the following percentage rate of the average daily net assets of a Fund:
Optimum Fixed Income Fund | 0.7000% of net assets up to $25 million | |
0.6500% of net assets from $25 million to $100 million | ||
0.6000% of net assets from $100 million to $500 million | ||
0.5500% of net assets from $500 to $1 billion | ||
0.5000% of net assets over $1 billion | ||
Optimum International Fund | 0.8750% of net assets up to $50 million | |
0.8000% of net assets from $50 to $100 million | ||
0.7800% of net assets from $100 to $300 million | ||
0.7650% of net assets from $300 to $400 million | ||
0.7300% of net assets over $400 million | ||
Optimum Large Cap Growth Fund | 0.8000% of net assets up to $250 million | |
0.7875% of net assets from $250 million to $300 million | ||
0.7625% of net assets from $300 million to $400 million | ||
0.7375% of net assets from $400 million to $500 million | ||
0.7250% of net assets over $500 million | ||
Optimum Large Cap Value Fund | 0.8000% of net assets up to $100 million | |
0.7375% of net assets from $100 million to $250 million | ||
0.7125% of net assets from $250 million to $500 million | ||
0.6875% of net assets over $500 million | ||
Optimum Small-Mid Cap Growth Fund | 1.1000% of net assets | |
Optimum Small-Mid Cap Value Fund | 1.0500% of net assets up to $75 million | |
1.0250% of net assets from $75 million to $150 million | ||
1.0000% of net assets over $150 million |
DMC has entered into sub-advisory agreements for the Trust as follows: Optimum Fixed Income Fund – Aberdeen Asset Management Inc. (“AAMI”); Optimum International Fund – Mondrian Investment Partners Limited and AllianceBernstein L.P.; Optimum Large Cap Growth Fund – Marsico Capital Management, LLC (“Marsico”) and T. Rowe Price Associates, Inc.; Optimum Large Cap Value Fund – Massachusetts Financial Services Company and TCW Investment Management Company (“TCW”); Optimum Small-Mid Cap Growth Fund – Columbia Wanger Asset Management, L.P. and Oberweis Asset Management, Inc.; and Optimum Small-Mid Cap Value Fund – Hotchkis and Wiley Capital Management, LLC, Delafield Asset Management (a division of Reich & Tang Asset Management, LLC), and The Killen Group, Inc. (“Killen”).
For the year ended March 31, 2008, DMC paid the following sub-advisory fees:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | ||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | ||||||
$969,178 | $1,236,944 | $4,080,828 | $3,341,868 | $1,124,513 | $885,001 |
110
2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)
DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse each Fund to the extent necessary to ensure that annual operating expenses, exclusive of any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, brokerage fees, certain insurance costs and non-routine expenses or cost, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations (collectively, “non-routine expenses”), do not exceed specified percentages of average daily net assets as shown below. For purposes of these waivers and reimbursements, non-routine expenses may also include such additional costs and expenses as may be agreed upon from time to time by the Funds’ Board of Trustees and DMC. These expense waivers and reimbursement apply only to expenses paid directly by the Funds.
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | ||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | ||||||
Effective August 1, 2007, operating expense limitation as a percentage of average daily net assets (per annum) | 0.89% | 1.44% | 1.29% | 1.19% | 1.55% | 1.40% | |||||
Expiration date | 8/1/08 | 8/1/08 | 8/1/08 | 8/1/08 | 8/1/08 | 8/1/08 | |||||
Through July 31, 2007, operating expense limitation as a percentage of average daily net assets (per annum) | 0.90% | 1.66% | 1.34% | 1.20% | 1.60% | 1.41% | |||||
Expiration date | 7/31/07 | 7/31/07 | 7/31/07 | 7/31/07 | 7/31/07 | 7/31/07 |
Effective October 1, 2007, Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting oversight services to the Trust. For these services, the Trust pays DSC fees based on the aggregate daily net assets of the Trust at the following annual rate: 0.0050% of the first $3 billion; 0.0045% of the next $2 billion; 0.0040% of the next $2.5 billion; 0.0030% of the next $2.5 billion; and 0.0025% of aggregate average daily net assets in excess of $10 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Trust on a relative net asset value basis. Prior to October 1, 2007, DSC provided fund accounting services to the Trust and received a fee at an annual rate of 0.04% of the Trust’s total average daily net assets, plus out-of-pocket expenses, subject to certain minimums. For the year ended March 31, 2008, each Fund was charged for these services as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | ||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | ||||||
$185,305 | $67,322 | $202,688 | $199,077 | $34,527 | $29,661 |
DSC provides the Trust with administrative services including financial and tax reporting, corporate governance, and preparation of materials and reports for the Board of Trustees. For administrative services, each Fund pays DSC a fee at an annual rate (plus out-of pocket expenses) of 0.165% of assets up to $500 million of the Fund’s total average daily net assets, 0.140% of assets from $500 million to $1 billion, and 0.115% of assets over $1 billion. DSC also serves as the shareholder servicing, dividend disbursing, and transfer agent for each fund. For such services, each Fund pays DSC a fee at an annual rate of 0.235% of the Fund’s total average daily net assets, subject to certain minimums, plus out-of-pocket expenses.
DDLP, an affiliate of DMC, serves as the national distributor of each Fund’s shares pursuant to a Distribution Agreement. Pursuant to Distribution Agreement and Rule 12b-1 plan, each Fund pays DDLP, an annual fee of 0.35% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class B and C shares. Institutional Class shares pay no distribution expenses.
At March 31, 2008, each Fund had liabilities payable to affiliates as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||||||
Investment management fee payable to DMC | $279,771 | $191,838 | $626,470 | $551,350 | $104,162 | $71,418 | ||||||||||||||||||
Dividend disbursing, transfer agent, administration fees and other expenses payable to DSC | 319,361 | 107,697 | 337,972 | 300,946 | 56,866 | 48,245 | ||||||||||||||||||
Distribution fees payable to DDLP | 246,048 | 81,384 | 197,080 | 198,339 | 33,015 | 31,666 | ||||||||||||||||||
Other expenses payable to DMC and affiliates* | 9,528 | 3,003 | 838 | 376 | 286 | 193 |
* DMC, as part of its administrative services, pays operating expenses on behalf of each Fund and is reimbursed on a periodic basis. Such expenses include items such as printing of shareholder reports, fees for audit, legal and tax services, registration fees and trustees’ fees.
(continues) 111
Notes to financial statements
Optimum Fund Trust
2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)
For the year ended March 31, 2008, DDLP earned commissions on sales of Class A shares for each Fund as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||
$49,662 | $22,395 | $64,325 | $62,731 | $11,166 | $8,906 |
For the year ended March 31, 2008, DDLP received gross CDSC commissions on redemptions of each Fund’s Class B and Class C shares, and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker-dealers on sales of those shares. The amounts received were as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||
Class B | $24,861 | $8,318 | $25,203 | $23,485 | $4,824 | $4,158 | ||||||
Class C | 41,470 | 9,776 | 28,382 | 27,445 | 4,803 | 3,947 |
DMC, DSC and DDLP are indirect, wholly owned subsidiaries of Delaware Management Holdings, Inc., which is an indirect wholly owned subsidiary of Lincoln National Corporation.
Certain officers of DMC, DSC and DDLP are officers and/or Trustees of the Trust. These officers and Trustees paid no compensation by the Funds.
3. Investments
For the year ended March 31 2008, the Funds made purchases and sales of investment securities other than short-term investments as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | ||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | ||||||||
Purchases other than U.S. government securities | $1,215,014,430 | $85,355,690 | $769,574,026 | $411,656,167 | $89,940,023 | $66,350,306 | |||||||
Purchases of U.S. government securities | 1,065,325,140 | — | — | — | — | — | |||||||
Sales other than U.S. government securities | 1,010,804,423 | 55,432,204 | 523,146,867 | 256,503,787 | 68,819,320 | 60,628,516 | |||||||
Sales of U.S. government securities | 1,119,472,700 | — | — | — | — | — |
At March 31, 2008, the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes for each Fund were as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||||||
Cost of investments | $ | 1,060,195,017 | $ | 318,123,345 | $ | 1,094,725,762 | $ | 1,041,675,571 | $ | 171,642,250 | $ | 144,807,737 | ||||||||||||
Aggregate unrealized appreciation | $ | 15,840,678 | $ | 41,951,656 | $ | 109,709,935 | $ | 73,130,571 | $ | 21,004,275 | $ | 8,972,202 | ||||||||||||
Aggregate unrealized depreciation | (29,067,631 | ) | (18,053,525 | ) | (59,937,802 | ) | (93,306,089 | ) | (25,605,363 | ) | (23,881,736 | ) | ||||||||||||
Net unrealized appreciation (depreciation) | $ | (13,226,953 | ) | $ | 23,898,131 | $ | 49,772,133 | $ | (20,175,518 | ) | $ | (4,601,088 | ) | $ | (14,909,534 | ) |
112
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Additionally, distributions from net gains on foreign currency transactions and net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the years ended March 31, 2008 and 2007 was as follows:
Year Ended March 31, 2008
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||||||||||
Ordinary income | $ | 45,555,372 | $ | 4,036,591 | $ | 969,203 | $ | 15,643,413 | $ | — | $ | 1,485,909 | ||||||||||||||||
Long-term capital gain | 401,216 | 17,666,438 | 21,588,005 | 39,031,293 | 7,171,168 | 9,008,965 | ||||||||||||||||||||||
Return of capital | — | — | 2,846,182 | — | 108,382 | — | ||||||||||||||||||||||
Total | $ | 45,956,588 | $ | 21,703,029 | $ | 25,403,390 | $ | 54,674,706 | $ | 7,279,550 | $ | 10,494,874 | ||||||||||||||||
Year Ended March 31, 2007 | ||||||||||||||||||||||||||||
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||||||||||
Ordinary income | $ | 25,365,087 | $ | 7,131,730 | $ | 1,263,583 | $ | 8,816,723 | $ | — | $ | 1,226,671 | ||||||||||||||||
Long-term capital gain | — | 4,960,866 | 10,176,545 | 9,409,787 | 2,731,660 | 5,586,673 | ||||||||||||||||||||||
Total | $ | 25,365,087 | $ | 12,092,596 | $ | 11,440,128 | $ | 18,226,510 | $ | 2,731,660 | $ | 6,813,344 |
5. Components of Net Assets on a Tax Basis
At of March 31, 2008, the components of net assets on a tax basis were as follows:
Optimum | Optimum | Optimum | ||||||||||||
Fixed Income | International | Large Cap | ||||||||||||
Fund | Fund | Growth Fund | ||||||||||||
Share of beneficial interest | $ | 928,098,811 | $ | 255,909,408 | $ | 958,549,648 | ||||||||
Undistributed ordinary income | 15,274,556 | 2,397,637 | — | |||||||||||
Undistributed long-term capital gain | — | 4,470,445 | — | |||||||||||
Post-October losses | — | — | (18,130,339 | ) | ||||||||||
Post-October currency losses | — | (157,523 | ) | (117,792 | ) | |||||||||
Other temporary differences | (3,700,842 | ) | — | — | ||||||||||
Unrealized appreciation (depreciation) of investment, swap contracts and foreign currencies | (12,894,683 | ) | 23,938,996 | 49,806,220 | ||||||||||
Net assets | $ | 926,777,842 | $ | 286,558,963 | $ | 990,107,737 | ||||||||
Optimum | Optimum | Optimum | ||||||||||||
Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||||||||
Value Fund | Growth Fund | Value Fund | ||||||||||||
Share of beneficial interest | $ | 882,003,090 | $ | 142,602,509 | $ | 126,186,101 | ||||||||
Undistributed ordinary income | 2,507,438 | — | — | |||||||||||
Undistributed long-term capital gain | 11,341,568 | — | 185,762 | |||||||||||
Post-October losses | — | (2,399,036 | ) | (1,133,491 | ) | |||||||||
Post-October currency losses | (6,817 | ) | — | — | ||||||||||
Unrealized depreciation of investment and foreign currencies | (20,156,142 | ) | (4,601,088 | ) | (14,909,534 | ) | ||||||||
Net assets | $ | 875,689,137 | $ | 135,602,385 | $ | 110,328,838 |
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, contingent payment debt instruments, tax deferral of losses on straddles, mark-to-market on currency contracts, mark-to-market on futures contracts, and tax treatment of CDS contracts.
Post-October losses represent losses realized on investment and foreign currency transactions from November 1, 2007 through March 31, 2008 that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.
(continues) 113
Notes to financial statements
Optimum Fund Trust
5. Components of Net Assets on a Tax Basis (continued)
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of net operating losses, dividends and distributions, paydowns gains (losses) on mortgage- and asset-backed securities, foreign future contracts, contingent payment debt instruments, CDS contracts and gain (loss) on foreign currency transactions. Results of operations and net assets were not affected by these reclassifications. For the year ended March 31, 2008, the Funds recorded the following reclassifications:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||||||
Undistributed (accumulated) net Investment income (loss) | $ | 3,341,827 | $ | (194,893 | ) | $ | 775,580 | $ | (56,839 | ) | $ | 1,894,246 | $ | 261,575 | ||||||||||
Accumulated net realized gain (loss) | (3,341,827 | ) | 194,893 | (775,580 | ) | 56,839 | — | (69,550 | ) | |||||||||||||||
Paid-in capital | — | — | — | — | (1,894,246 | ) | (192,025 | ) |
6. Capital Shares
Transactions in capital shares were as follows:
Optimum | Optimum | Optimum | ||||||||||||||||
Fixed Income | International | Large Cap | ||||||||||||||||
Fund | Fund | Growth Fund | ||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||
3/31/08 | 3/31/07 | 3/31/08 | 3/31/07 | 3/31/08 | 3/31/07 | |||||||||||||
Shares sold: | ||||||||||||||||||
Class A | 1,591,711 | 1,841,350 | 249,304 | 375,989 | 894,309 | 1,304,218 | ||||||||||||
Class B | 65,651 | 152,560 | 6,171 | 33,816 | 28,718 | 135,373 | ||||||||||||
Class C | 7,223,032 | 6,778,612 | 1,028,302 | 1,391,456 | 3,760,334 | 4,803,075 | ||||||||||||
Institutional Class | 31,621,851 | 20,691,760 | 4,642,336 | 3,528,374 | 28,248,672 | 17,071,479 | ||||||||||||
40,502,245 | 29,464,282 | 5,926,113 | 5,329,635 | 32,932,033 | 23,314,145 | |||||||||||||
Shares issued upon reinvestment of dividends and distributions: | ||||||||||||||||||
Class A | 348,052 | 226,229 | 119,290 | 83,106 | 126,966 | 79,694 | ||||||||||||
Class B | 42,787 | 31,261 | 21,696 | 16,300 | 23,877 | 16,844 | ||||||||||||
Class C | 1,214,403 | 737,005 | 419,667 | 280,642 | 498,637 | 297,903 | ||||||||||||
Institutional Class | 3,434,748 | 1,767,917 | 862,968 | 469,204 | 1,332,346 | 624,104 | ||||||||||||
5,039,990 | 2,762,412 | 1,423,621 | 849,252 | 1,981,826 | 1,018,545 | |||||||||||||
Shares repurchased: | ||||||||||||||||||
Class A | (1,333,695 | ) | (1,075,275 | ) | (356,133 | ) | (314,632 | ) | (886,555 | ) | (800,040 | ) | ||||||
Class B | (180,491 | ) | (189,221 | ) | (48,425 | ) | (65,771 | ) | (117,913 | ) | (123,686 | ) | ||||||
Class C | (4,683,252 | ) | (3,837,333 | ) | (1,246,950 | ) | (986,974 | ) | (2,956,301 | ) | (2,241,294 | ) | ||||||
Institutional Class | (18,267,065 | ) | (7,703,310 | ) | (2,839,358 | ) | (1,468,287 | ) | (8,897,038 | ) | (5,541,024 | ) | ||||||
(24,464,503 | ) | (12,805,139 | ) | (4,490,866 | ) | (2,835,664 | ) | (12,857,807 | ) | (8,706,044 | ) | |||||||
Net increase | 21,077,732 | 19,421,555 | 2,858,868 | 3,343,223 | 22,056,052 | 15,626,646 |
114
6. Capital Shares (continued)
Optimum | Optimum | Optimum | ||||||||||||||||
Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||||||||||||
Value Fund | Growth Fund | Value Fund | ||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||
3/31/08 | 3/31/07 | 3/31/08 | 3/31/07 | 3/31/08 | 3/31/07 | |||||||||||||
Shares sold: | ||||||||||||||||||
Class A | 825,722 | 1,191,590 | 141,680 | 213,329 | 126,658 | 207,100 | ||||||||||||
Class B | 22,083 | 115,682 | 3,093 | 18,163 | 3,405 | 15,227 | ||||||||||||
Class C | 3,516,098 | 4,508,067 | 593,936 | 708,196 | 544,662 | 627,120 | ||||||||||||
Institutional Class | 20,674,129 | 15,707,485 | 3,133,276 | 2,209,166 | 2,422,447 | 1,801,580 | ||||||||||||
25,038,032 | 21,522,824 | 3,871,985 | 3,148,854 | 3,097,172 | 2,651,027 | |||||||||||||
Shares issued upon reinvestment of dividends | ||||||||||||||||||
and distributions: | ||||||||||||||||||
Class A | 285,105 | 119,889 | 40,657 | 18,811 | 79,601 | 58,450 | ||||||||||||
Class B | 47,416 | 19,480 | 7,453 | 3,663 | 14,904 | 10,762 | ||||||||||||
Class C | 981,957 | 351,857 | 149,667 | 64,248 | 293,193 | 192,954 | ||||||||||||
Institutional Class | 3,017,839 | 1,031,198 | 321,939 | 114,103 | 512,807 | 271,409 | ||||||||||||
4,332,317 | 1,522,424 | 519,716 | 200,825 | 900,505 | 533,575 | |||||||||||||
Shares repurchased: | ||||||||||||||||||
Class A | (926,045 | ) | (777,180 | ) | (218,457 | ) | (208,617 | ) | (265,211 | ) | (304,352 | ) | ||||||
Class B | (118,920 | ) | (131,451 | ) | (21,466 | ) | (24,715 | ) | (24,859 | ) | (32,920 | ) | ||||||
Class C | (3,093,510 | ) | (2,301,312 | ) | (559,418 | ) | (428,630 | ) | (712,330 | ) | (569,521 | ) | ||||||
Institutional Class | (9,222,796 | ) | (5,114,065 | ) | (1,516,450 | ) | (1,025,312 | ) | (1,836,328 | ) | (865,025 | ) | ||||||
(13,361,271 | ) | (8,324,008 | ) | (2,315,791 | ) | (1,687,274 | ) | (2,838,728 | ) | (1,771,818 | ) | |||||||
Net increase | 16,009,078 | 14,721,240 | 2,075,910 | 1,662,405 | 1,158,949 | 1,412,784 |
7. Foreign Currency Exchange Contracts
The Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund and Optimum Large Cap Value Fund may enter into foreign currency exchange contracts and foreign cross currency exchange contracts as a way of managing foreign exchange rate risk. The Funds may enter into these contracts to fix the U.S. dollar value of a security that it has agreed to buy or sell for the period between the date the trade was entered into and the date the security is delivered and paid for. The Funds may also use these contracts to hedge the U.S. dollar value of securities it already owns that are denominated in foreign currencies. The change in market value is recorded as an unrealized gain or loss. When the contract is closed, a realized gain or loss is recorded equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The use of foreign currency exchange contracts and foreign cross currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities, but does establish a rate of exchange that can be achieved in the future. Although foreign currency exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts.
8. Financial Futures Contracts
The Optimum Fixed Income Fund may invest in financial futures contracts to hedge its existing portfolio securities against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, the Fund deposits cash or pledges U.S. government securities to a broker, equal to the minimum “initial margin” requirements of the exchange on which the contract is traded. Subsequent payments are received from the broker or paid to the broker each day, based on the daily fluctuation in the market value of the contract. These receipts or payments are known as “variation margin” and are recorded daily by the Fund as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments.
(continues) 115
Notes to financial statements
Optimum Fund Trust
9. Options Written
During the year ended March 31, 2008, the Optimum Fixed Income Fund entered into options contracts in accordance with its investment objectives. When the Fund writes an option, a premium is received and a liability is recorded and adjusted on a daily basis to reflect the current market value of the options written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has a realized gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.
Transactions in options written during the year ended March 31, 2008 for Optimum Fixed Income Fund were as follows:
Number of contracts | Premiums | |||||||
Options outstanding at March 31, 2007 | — | $ | — | |||||
Options written | 121,142,216 | 817,493 | ||||||
Options expired | (31,442,216 | ) | (242,311 | ) | ||||
Options terminated in closing purchase transactions | (17,500,000 | ) | (73,266 | ) | ||||
Options outstanding at March 31, 2008 | 72,200,000 | $ | 501,916 |
10. Swap Contracts
The Optimum Fixed Income Fund may enter into interest rate swap contracts, index swap contracts and CDS contracts in accordance with its investment objectives. The Fund may use interest rate swaps to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Index swaps may be used to gain exposure to markets that the Fund invests in, such as the corporate bond market. The Fund may also use index swaps as a substitute for futures or options contracts if such contracts are not directly available to the Fund on favorable terms. The Fund may enter into CDS contracts in order to hedge against a credit event, to enhance total return or to gain exposure to certain securities or markets.
An interest rate swap involves payments received by the Fund from another party based on a variable or floating interest rate, in return for making payments based on a fixed interest rate. An interest rate swap can also work in reverse with the Fund receiving payments based on a fixed interest rate and making payments based on a variable or floating interest rate. Interest rate swaps may be used to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Periodic payments on such contracts are accrued daily and recorded as unrealized appreciation/depreciation on swap contracts. Upon periodic payment/receipt or termination of the contract, such amounts are recorded as realized gains or losses on swap contracts.
Index swaps involve commitments to pay interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the security, instrument or basket of instruments underlying the transaction exceeds the offsetting interest obligation, the Fund will receive a payment from the counterparty. To the extent the total return of the security, instrument or basket of instruments underlying the transaction falls short of the offsetting interest obligation, the Fund will make a payment to the counterparty. The change in value of swap contracts outstanding, if any, is recorded as unrealized appreciation or depreciation daily. A realized gain or loss is recorded on maturity or termination of the swap contract.
A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). In exchange for the protection offered by the seller of protection, the purchaser of protection agrees to pay the seller of protection a periodic amount at a stated rate that is applied to the notional amount of the CDS contract. In addition, an upfront payment may be made or received by the Fund in connection with an unwinding or assignment of a CDS contract. Upon the occurrence of a credit event, the seller of protection would pay the par (or other agreed-upon) value of the referenced security (or basket of securities) to the counterparty.
During the year ended March 31, 2008, the Fund entered into CDS contracts as a purchaser or seller of protection. Periodic payments (receipts) on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipt), such amounts are recorded as realized losses (gains) on swap contracts. Upfront payments made or received in connection with CDS contracts are amortized over the expected life of the CDS contracts as realized losses (gains) on swap contracts. The change in value of CDS contracts is recorded as unrealized appreciation or depreciation daily. A realized gain or loss is recorded upon a credit event (as defined in the CDS agreement) or the maturity or termination of the agreement.
CDS may involve greater risks than if the Fund had invested in the referenced obligation directly. CDS are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund enters into a CDS contract as a purchaser of protection and no credit event occurs, its exposure is limited to the periodic payments previously made to the counterparty.
116
10. Swap Contracts (continued)
Because there is no organized market for swap contracts, the value of open swaps may differ from that which would be realized in the event the Fund terminated its position in the agreement. Risks of entering into these contracts include the potential inability of the counterparty to meet the terms of the contracts. This type of risk is generally limited to the amount of favorable movement in the value of the underlying security, instrument or basket of instruments, if any, at the day of default. Risks also arise from potential losses from adverse market movements and such losses could exceed the unrealized amounts shown on the statements of net assets.
11. Securities Lending
The Funds may lend their securities pursuant to a security lending agreement (Lending Agreement) with Mellon Bank, N.A. (Mellon). With respect to each loan, if the aggregate market value of the collateral held on any business day is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral not less than the applicable collateral requirements. Cash collateral received is invested in a Collective Trust established by Mellon for the purpose of investment on behalf of clients participating in its securities lending programs. The Collective Trust invests in fixed income securities, with a weighted average maturity not to exceed 90 days, rated in one of the top three tiers by Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc. or repurchase agreements collateralized by such securities. The Funds can also accept U.S. government securities and letters of credit (non-cash collateral) in connection with securities loans. In the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Funds, or at the discretion of the lending agent, replace the loaned securities. The Funds continue to record dividends or interest, as applicable, on the securities loaned and are subject to change in value of the securities loaned that may occur during the term of the loan. The Funds have the right under the Lending Agreement to recover the securities from the borrower on demand. With respect to security loans collateralized by non-cash collateral, the Funds receive loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Funds, the security lending agent and the borrower. The Funds record security lending income net of allocations to the security lending agent and the borrower.
At March 31, 2008, the market value of securities on loan was:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||
Market value | $111,560,427 | $56,079,279 | $148,844,130 | $142,055,884 | $30,687,010 | $19,210,902 | ||||||
The Funds received collateral, comprised of cash and non-cash collateral. The values are shown below: | ||||||||||||
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||
Cash | $104,887,587 | $58,517,599 | $153,563,933 | $148,627,368 | $31,743,288 | $20,566,896 | ||||||
Non-cash | 9,560,234 | 968,085 | — | — | 369,653 | — |
Investments purchased with cash collateral are presented on the statements of net assets under the caption “Securities Lending Collateral”.
12. Credit and Market Risk
Some countries in which the Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund and Optimum Large Cap Value Fund may invest require governmental approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially smaller, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisition and disposition of securities by the Fund may be inhibited. In addition, a significant portion of the aggregate market value of equity securities listed on the major securities exchanges in emerging markets are held by a smaller number of investors. This may limit the number of shares available for acquisition or disposition by the Funds.
(continues) 117
Notes to financial statements
Optimum Fund Trust
12. Credit and Market Risk (continued)
The Optimum Fixed Income Fund may invest a portion of its assets in high yield fixed income securities, which carry ratings of BB or lower by Standard & Poor’s Ratings Group and/or Ba or lower by Moody’s Investors Service, Inc. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.
The Optimum Fixed Income Fund invests in fixed income securities whose value is derived from underlying mortgages or consumer loans. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issues and changes in interest rates. Investors receive principal and interest payments as the underlying mortgages and consumer loans are paid back. Some of these securities are collateralized mortgage obligations (CMOs). CMOs are debt securities issued by U.S. government agencies or by financial institutions and other mortgage lenders, which are collateralized by a pool of mortgages held under an indenture. Prepayment of mortgages may shorten the stated maturity of the obligations and can result in a loss of premium, if any has been paid. Certain of these securities may be stripped (securities which provide only the principal or interest feature of the underlying security). The yield to maturity on an interest-only CMO is extremely sensitive not only to changes in prevailing interest rates, but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets. A rapid rate of principal payments may have a material adverse affect on the Fund’s yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully recoup its initial investment in these securities even if the securities are rated in the highest rating categories.
The Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund invest a significant portion of their assets in small- and mid-sized companies and may be subject to certain risks associated with ownership of securities of such companies. Investments in small- and mid-sized companies may be more volatile than investments in larger companies for a number of reasons, which include more limited financial resources or a dependence on narrow product lines.
The Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund invest in REITs and are subject to some of the risks associated with that industry. If the Funds hold real estate directly as a result of defaults or receives rental income directly from real estate holdings, its tax status as a regulated investment company may be jeopardized. There were no direct holdings during the year ended March 31, 2008. The Funds’ REIT holdings are also affected by interest rate changes, particularly if the REITs it holds use floating rate debt to finance their ongoing operations.
Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Funds’ Board of Trustees have delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid assets. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. Rule 144A and illiquid securities have been identified on the statements of net assets.
13. Contractual Obligations
The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
14. Tax Information (Unaudited)
The information set forth below is for each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of a fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.
118
14. Tax Information (Unaudited) (continued)
For the fiscal year ended March 31, 2008, each Fund designates distributions paid during the year as follows:
(A) | (B) | ||||||||||||||
Long-Term | Ordinary | (C) | |||||||||||||
Capital Gains | Income | Return of | Total | (D) | |||||||||||
Distributions | Distributions* | Capital | Distributions | Qualifying | |||||||||||
(Tax Basis) | (Tax Basis) | (Tax Basis) | (Tax Basis) | Dividends1 | |||||||||||
Optimum Fixed Income Fund | 1% | 99 | % | — | 100% | — | |||||||||
Optimum International Fund | 81% | 19 | % | — | 100% | — | |||||||||
Optimum Large Cap Growth Fund | 85% | 4 | % | 11 | % | 100% | 100 | % | |||||||
Optimum Large Cap Value Fund | 71% | 29 | % | — | 100% | 96 | % | ||||||||
Optimum Small-Mid Cap Growth Fund | 99% | — | 1 | % | 100% | — | |||||||||
Optimum Small-Mid Cap Value Fund | 86% | 14 | % | — | 100% | 75 | % |
(A), (B) and (C) are based on a percentage of each Fund’s total distributions.
(D) is based on a percentage of each Fund’s ordinary income distributions.
1 Qualifying dividends represent dividends which qualify for the corporate dividends received deduction. |
*For the fiscal year ended March 31, 2008, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the following amounts to be taxed at a maximum rate of 15%. Complete information will be computed and reported in conjunction with your 2007 or 2008 Form 1099-DIV, as applicable. |
Maximum amount to be | ||||
taxed at a maximum rate of 15% | ||||
Optimum Fixed Income Fund | $ | 158,649 | ||
Optimum International Fund | 4,036,591 | |||
Optimum Large Cap Growth Fund | 969,203 | |||
Optimum Large Cap Value Fund | 15,643,413 | |||
Optimum Small-Mid Cap Value Fund | 1,003,421 |
The Optimum International Fund intends to pass through foreign taxes credits in the maximum amounts of $675,157. The gross foreign source income earned during the fiscal year 2008 by the Optimum International Fund was $10,754,696. Complete information will be computed and reported in conjunction with your 2008 Form 1099-DIV.
For the fiscal year ended March 31, 2008, certain interest income paid by the Funds, determined to be Qualified Interest Income and Short-Term Capital Gains, may be subject to relief from U.S. withholding for foreign shareholders, as provided by the American Jobs Creation Act of 2004. For the fiscal year ended March 31, 2008, each Fund has designated maximum distributions as follows:
Maximum Distribution of | Maximum distribution of | |||||||
Qualified Interest Income | Qualified Short-Term Capital Gains | |||||||
Optimum Fixed Income Fund | $ | 38,357,531 | $ | 7,087,967 | ||||
Optimum International Fund | 117,425 | 1,617,936 | ||||||
Optimum Large Cap Growth Fund | — | 969,203 | ||||||
Optimum Large Cap Value Fund | 899,520 | 3,902,578 |
15. Subsequent Event
The Board of Trustees of the Optimum Fund Trust has approved the appointment of TCW Investment Management Company (“TCW”) as sub-adviser to the Optimum Fixed Income Fund. TCW will replace Aberdeen Asset Management Inc. (“AAMI”) as a sub-adviser, and it is currently anticipated that TCW will begin serving as a sub-adviser on the sleeve of the Fund currently managed by AAMI on or about May 27, 2008. For more information about this appointment, please refer to the Supplement to the Fund’s Prospectus dated as of May 16, 2008.
119
Report of independent
registered public accounting firm
The Shareholders and Board of Trustees of Optimum Fund Trust
We have audited the accompanying statements of net assets and statements of assets and liabilities of Optimum Fund Trust (comprising, respectively, the Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund, and Optimum Small-Mid Cap Value Fund (Funds)) as of March 31, 2008, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and the period August 1, 2003 (commencement of operations) through March 31, 2004. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ 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 Funds’ 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 and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2008, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. 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 respective Funds constituting Optimum Fund Trust at March 31, 2008, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the four years in the period then ended and the period August 1, 2003 (commencement of operations) through March 31, 2004, in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
May 19, 2008
120
Board of trustees and officers addendum
Optimum Fund Trust
A mutual fund is governed by a Board of Trustees which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor and others that perform services for the fund. The independent fund trustees, in particular, are advocates for shareholder interests. The following is a list of the Trustees and Officers of the Trust with certain background and related information.
Number of | |||||
Portfolios in Fund | Other | ||||
Name, | Complex1 Overseen | Directorships | |||
Address | Position(s) | Length of | Principal Occupation(s) | by Trustee | Held by |
and Age | Held with Fund(s) | Time Served | During Past 5 Years | or Officer | Trustee or Officer |
Interested Trustees | |||||
Mark S. Casady2 | Trustee | April 21, | Chairman and | 6 | None |
2005 Market Street | 2003 to | Chief Executive Officer – | |||
Philadelphia, PA | present | LPL Financial Corporation | |||
19103 | (2005 – Present) | ||||
Age 47 | President and Chief Executive | ||||
Officer – LPL Financial Corporation | |||||
(2004 – 2005) | |||||
President and Chief Operating | |||||
Officer – LPL Financial Corporation | |||||
(2002 – 2004) | |||||
John C. E. Campbell2 | Trustee, President | June 17, 2004 | President, Global – | 6 | None |
2005 Market Street | and Chief | to present | Institutional Services, | ||
Philadelphia, PA | Executive Officer | Delaware Investment Advisers | |||
19103 | (2003 – Present) | ||||
Age 62 | Executive Vice President | ||||
Global Marketing & Client Services | |||||
Delaware Management Company | |||||
(1992 – Present) | |||||
Independent Trustees | |||||
Robert J. Christian | Trustee | November 1, 2007 | Private Investor | 6 | Trustee – Wilmington Funds |
2005 Market Street | to present | (2006 – Present) | (24 mutual funds) | ||
Philadelphia, PA | (1998 – Present) | ||||
19103 | |||||
Age 59 | Chief Investment Officer | Trustee – FundVantage Trust | |||
Wilmington Trust Corporation | (7 mutual funds) | ||||
(Trust Bank) | (2007 – Present) | ||||
(1996 – 2006) | |||||
Nicholas D. Constan | Trustee | July 17, 2003 | Adjunct Professor – | 6 | None |
2005 Market Street | to present | University of Pennsylvania | |||
Philadelphia, PA | (1972 – Present) | ||||
19103 | |||||
Age 69 | |||||
Durant Adams Hunter | Trustee | July 17, 2003 | Principal-Ridgeway Partners | 6 | None |
2005 Market Street | to present | (Executive Recruiting) | |||
Philadelphia, PA | (2004 – Present) | ||||
19103 | |||||
Age 59 | Chief Executive Officer | ||||
Whitehead Mann Inc. | |||||
(Executive Recruiting) | |||||
2000 – 2003) | |||||
(continues) 121
Number of | |||||
Portfolios in Fund | Other | ||||
Name, | Complex1 Overseen | Directorships | |||
Address | Position(s) | Length of | Principal Occupation(s) | by Trustee | Held by |
and Age | Held with Fund(s) | Time Served | During Past 5 Years | or Officer | Trustee or Officer |
Independent Trustees (continued) | |||||
Stephen Paul Mullin | Trustee and | July 17, 2003 | Senior Vice President – | 6 | None |
2005 Market Street | Chairman | to present | Econsult Corporation | ||
Philadelphia, PA | (Economic Consulting) | ||||
19103 | (2000 – Present) | ||||
Age 52 | |||||
Robert A. Rudell | Trustee | July 17, 2003 | Private Investor | 6 | Director – |
2005 Market Street | to present | (2002 – Present) | Medtox Scientific, Inc. | ||
Philadelphia, PA | (Clinic Lab) | ||||
19103 | (2002 – Present) | ||||
Age 59 | Director – | ||||
Heartland Group, Inc. | |||||
Family of Funds | |||||
(3 mutual funds) | |||||
(2005 – Present) | |||||
Director – | |||||
The Vantage Point Funds | |||||
Family of Funds | |||||
(27 mutual funds) | |||||
(2007 – Present) | |||||
Jon Edward Socolofsky | Trustee | July 17, 2003 | Private Investor | 6 | None |
2005 Market Street | to present | (2002 – Present) | |||
Philadelphia, PA | |||||
19103 | |||||
Age 62 | |||||
Officers | |||||
David F. Connor | Vice President, | Vice President since | Mr. Connor has served as | 6 | None4 |
2005 Market Street | Deputy General | July 17, 2003 | Vice President and Deputy | ||
Philadelphia, PA | Counsel, and Secretary | and Secretary | General Counsel of | ||
19103 | since | Delaware Investments3 since 2000. | |||
December 6, 2005 | |||||
Age 43 | |||||
David P. O’Connor | Senior Vice President, | October 25, 2005 | Mr. O’Connor has served in | 6 | None4 |
2005 Market Street | General Counsel, | to present | various executive and legal | ||
Philadelphia, PA | and Chief | capacities at different times at | |||
19103 | Legal Officer | Delaware Investments. | |||
Age 41 | |||||
Daniel Geatens | Vice President | September 20, 2007 | Mr. Geatens has served in | 6 | None4 |
2005 Market Street | and Treasurer | to present | various capacities at | ||
Philadelphia, PA | Delaware Investments. | ||||
19103 | |||||
Age 35 | |||||
Richard Salus | Senior | January 1, 2006 | Mr. Salus has served in | 6 | None4 |
2005 Market Street | Vice President | to present | various executive capacities | ||
Philadelphia, PA | and | at different times at | |||
19103 | Chief Financial | Delaware Investments. | |||
Officer | |||||
Age 43 |
1 The term “Fund Complex” refers to the Funds in the Optimum Fund Trust. |
2 “Interested persons” of the Funds by virtue of their executive and management positions or relationships with the Fund’s service providers or sub-service providers. |
3 Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries, including the Trust’s manager, principal underwriter and service agent. |
4 Messrs Connor, O’Connor, Geatens and Salus also serve in similar capacities for the Delaware Investments Family of Funds, a fund complex also managed and distributed by Delaware Investments with 84 funds. |
The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling your financial advisor or 800 914-0278. |
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About the organization
This annual report is for the information of Optimum Fund Trust shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Optimum Fund Trust and the Performance Update for the most recently completed calendar quarter. The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the investment company. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the investment company will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
Board of trustees Mark S. Casady John C.E. Campbell Robert J. Christian Nicholas D. Constan Durant Adams Hunter Stephen Paul Mullin Robert A. Rudell Jon Edward Socolofsky | Affiliated officers David F. Connor Daniel V. Geatens David P. O’Connor Richard Salus | Contact information Investment manager National distributor Shareholder servicing, dividend For shareholders For securities dealers Web site |
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Forms N-Q. Each Fund’s Forms N-Q, as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities is available without charge (i) upon request, by calling 800 914-0278; (ii) on the Fund’s Web site at http://www.optimummutualfunds.com ; and (iii) on the Commission’s Web site at http://www.sec.gov. Each Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330.
Information (if any) regarding how each Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through the Fund’s Web site at http://www.optimummutualfunds.com; and (ii) on the Commission’s Web site at http://www.sec.gov.
123
(3086) | Printed in the USA |
AR-901 [3/08] DG3 5/08 | MF-08-04-347 PO12938 |
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on Delaware Investments’ internet website at www.delawareinvestments.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this website within five business days of such amendment or waiver and will remain on the website for at least 12 months.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees/Directors has determined that each member of the registrant’s Audit Committee is an audit committee financial expert, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and financial statements;
b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial reporting; and
e. An understanding of audit committee functions.
An “audit committee financial expert” shall have acquired such attributes through:
a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
d. Other relevant experience.
The registrant’s Board of Trustees/Directors has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees/Directors or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
Robert J. Christian
Robert A. Rudell
Jon. E. Socolofsky
Item 4. Principal Accountant Fees and Services
(a) Audit fees.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $132,800 for the fiscal year ended March 31, 2008.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $124,110 for the fiscal year ended March 31, 2007.
(b) Audit-related fees.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended March 31, 2008.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $19,074 for the registrant’s fiscal year ended March 31, 2008. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: issuance of report concerning transfer agent’s system of internal accounting control pursuant to Rule 17Ad-13 of the Securities Exchange Act.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended March 31, 2007.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $13,400 for the registrant’s fiscal year ended March 31, 2007. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: issuance of report concerning transfer agent’s system of internal accounting control pursuant to Rule 17Ad-13 of the Securities Exchange Act.
(c) Tax fees.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $45,620 for the fiscal year ended March 31, 2008. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax return, review of annual excise distribution calculations, and tax compliance services related to investments in foreign securities.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2008.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $23,000 for the fiscal year ended March 31, 2007. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2007.
(d) All other fees.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended March 31, 2008.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2008.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended March 31, 2007.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2007.
(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Delaware Investments Family of Funds.
Service | Range of Fees |
Audit Services | |
Statutory audits or financial audits for new Funds | up to $25,000 per Fund |
Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters | up to $10,000 per Fund |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”) | up to $25,000 in the aggregate |
Audit-Related Services | |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and /or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”) | up to $25,000 in the aggregate |
Tax Services | |
U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.) | up to $25,000 in the aggregate |
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.) | up to $5,000 per Fund |
Review of federal, state, local and international income, franchise and other tax returns | up to $5,000 per Fund |
Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
Service | Range of Fees |
Non-Audit Services | |
Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters | up to $10,000 in the aggregate |
The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $299,982 and $262,408 for the registrant’s fiscal years ended March 31, 2008 and March 31, 2007, respectively.
(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of report to shareholders filed under Item 1 of this Form N-CSR.
(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s fourth fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a) (1) Code of Ethics
Not applicable.
(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.
(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.
Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.
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.
Name of Registrant: OPTIMUM FUND TRUST
JOHN C.E. CAMPBELL | |
By: | John C.E. Campbell |
Title: | Chief Executive Officer |
Date: | June 6, 2008 |
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.
JOHN C.E. CAMPBELL | |
By: | John C.E. Campbell |
Title: | Chief Executive Officer |
Date: | June 6, 2008 |
RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | June 6, 2008 |