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: September 30, 2008
Item 1. Reports to Stockholders
Optimum Fixed Income Fund Optimum International Fund Optimum Large Cap Growth Fund Optimum Large Cap Value Fund Optimum Small-Mid Cap Growth Fund Optimum Small-Mid Cap Value Fund | |
Semiannual Report | |
September 30, 2008 | |
Table of contents
> Disclosure of Fund expenses | 1 | |
> Sector/Country allocations, | ||
credit quality breakdown, and top 10 holdings | 3 | |
> Financial statements | ||
Statements of net assets | 7 | |
Statements of assets and liabilities | 50 | |
Statements of operations | 51 | |
Statements of changes in net assets | 52 | |
Financial highlights | 55 | |
Notes to financial statements | 79 | |
> Other Fund information | 91 | |
> About the organization | 95 |
The views expressed in this report are as of Sept. 30, 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.
All third-party trademarks are the property of their respective owners.
Disclosure of Fund expenses
For the period April 1, 2008 to September 30, 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 April 1, 2008 to September 30, 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 each 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 183/365 (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 | 4/1/08 to | |||||
4/1/08 | 9/30/08 | Ratio | 9/30/08 | |||||
Actual Fund Return | ||||||||
Class A | $1,000.00 | $958.80 | 1.24% | $6.09 | ||||
Class B | 1,000.00 | 956.70 | 1.89% | 9.27 | ||||
Class C | 1,000.00 | 955.60 | 1.89% | 9.27 | ||||
Institutional Class | 1,000.00 | 961.70 | 0.89% | 4.38 | ||||
Hypothetical 5% Return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,018.85 | 1.24% | $6.28 | ||||
Class B | 1,000.00 | 1,015.59 | 1.89% | 9.55 | ||||
Class C | 1,000.00 | 1,015.59 | 1.89% | 9.55 | ||||
Institutional Class | 1,000.00 | 1,020.61 | 0.89% | 4.51 |
Optimum International Fund
Expense Analysis of an Investment of $1,000
Expenses | ||||||||
Beginning | Ending | Paid During | ||||||
Account | Account | Annualized | Period | |||||
Value | Value | Expense | 4/1/08 to | |||||
4/1/08 | 9/30/08 | Ratio | 9/30/08 | |||||
Actual Fund Return | ||||||||
Class A | $1,000.00 | $781.40 | 1.77% | $ 7.90 | ||||
Class B | 1,000.00 | 778.20 | 2.42% | 10.79 | ||||
Class C | 1,000.00 | 778.40 | 2.42% | 10.79 | ||||
Institutional Class | 1,000.00 | 782.30 | 1.42% | 6.34 | ||||
Hypothetical 5% Return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,016.19 | 1.77% | $ 8.95 | ||||
Class B | 1,000.00 | 1,012.94 | 2.42% | 12.21 | ||||
Class C | 1,000.00 | 1,012.94 | 2.42% | 12.21 | ||||
Institutional Class | 1,000.00 | 1,017.95 | 1.42% | 7.18 |
(continues) 1
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 | 4/1/08 to | |||||
4/1/08 | 9/30/08 | Ratio | 9/30/08 | |||||
Actual Fund Return | ||||||||
Class A | $1,000.00 | $859.20 | 1.60% | $ 7.46 | ||||
Class B | 1,000.00 | 856.50 | 2.25% | 10.47 | ||||
Class C | 1,000.00 | 856.50 | 2.25% | 10.47 | ||||
Institutional Class | 1,000.00 | 860.60 | 1.25% | 5.83 | ||||
Hypothetical 5% Return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,017.05 | 1.60% | $ 8.09 | ||||
Class B | 1,000.00 | 1,013.79 | 2.25% | 11.36 | ||||
Class C | 1,000.00 | 1,013.79 | 2.25% | 11.36 | ||||
Institutional Class | 1,000.00 | 1,018.80 | 1.25% | 6.33 |
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 | 4/1/08 to | |||||
4/1/08 | 9/30/08 | Ratio | 9/30/08 | |||||
Actual Fund Return | ||||||||
Class A | $1,000.00 | $884.00 | 1.54% | $ 7.27 | ||||
Class B | 1,000.00 | 880.70 | 2.19% | 10.33 | ||||
Class C | 1,000.00 | 881.50 | 2.19% | 10.33 | ||||
Institutional Class | 1,000.00 | 885.00 | 1.19% | 5.62 | ||||
Hypothetical 5% Return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,017.35 | 1.54% | $ 7.79 | ||||
Class B | 1,000.00 | 1,014.09 | 2.19% | 11.06 | ||||
Class C | 1,000.00 | 1,014.09 | 2.19% | 11.06 | ||||
Institutional Class | 1,000.00 | 1,019.10 | 1.19% | 6.02 |
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 | 4/1/08 to | |||||
4/1/08 | 9/30/08 | Ratio | 9/30/08 | |||||
Actual Fund Return | ||||||||
Class A | $1,000.00 | $943.30 | 1.90% | $ 9.26 | ||||
Class B | 1,000.00 | 940.50 | 2.55% | 12.40 | ||||
Class C | 1,000.00 | 940.50 | 2.55% | 12.40 | ||||
Institutional Class | 1,000.00 | 945.10 | 1.55% | 7.56 | ||||
Hypothetical 5% Return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,015.54 | 1.90% | $ 9.60 | ||||
Class B | 1,000.00 | 1,012.28 | 2.55% | 12.86 | ||||
Class C | 1,000.00 | 1,012.28 | 2.55% | 12.86 | ||||
Institutional Class | 1,000.00 | 1,017.30 | 1.55% | 7.84 |
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 | 4/1/08 to | |||||
4/1/08 | 9/30/08 | Ratio | 9/30/08 | |||||
Actual Fund Return | ||||||||
Class A | $1,000.00 | $946.60 | 1.75% | $ 8.54 | ||||
Class B | 1,000.00 | 942.80 | 2.40% | 11.69 | ||||
Class C | 1,000.00 | 942.80 | 2.40% | 11.69 | ||||
Institutional Class | 1,000.00 | 947.70 | 1.40% | 6.84 | ||||
Hypothetical 5% Return (5% return before expenses) | ||||||||
Class A | $1,000.00 | $1,016.29 | 1.75% | $ 8.85 | ||||
Class B | 1,000.00 | 1,013.04 | 2.40% | 12.11 | ||||
Class C | 1,000.00 | 1,013.04 | 2.40% | 12.11 | ||||
Institutional Class | 1,000.00 | 1,018.05 | 1.40% | 7.08 |
2
Sector allocations and credit quality breakdown
Optimum Fixed Income Fund
As of September 30, 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 Collateralized Mortgage Obligations | 9.70 | % |
Agency Mortgage-Backed Securities | 23.61 | % |
Agency Obligations | 2.41 | % |
Commercial Mortgage-Backed Securities | 2.53 | % |
Convertible Bonds | 0.20 | % |
Corporate Bonds | 17.55 | % |
Banking | 1.75 | % |
Basic Industry | 1.34 | % |
Brokerage | 0.81 | % |
Capital Goods | 0.90 | % |
Communications | 2.89 | % |
Consumer Cyclical | 1.49 | % |
Consumer Non-Cyclical | 1.74 | % |
Electric | 1.45 | % |
Energy | 1.31 | % |
Finance Companies | 0.91 | % |
Insurance | 1.99 | % |
Natural Gas | 0.31 | % |
Real Estate | 0.10 | % |
Technology | 0.33 | % |
Transportation | 0.23 | % |
Foreign Agencies | 0.84 | % |
Municipal Bonds | 1.97 | % |
Non-Agency Asset-Backed Securities | 3.26 | % |
Non-Agency Collateralized Mortgage Obligations | 20.52 | % |
Regional Agencies | 0.30 | % |
Regional Authority | 0.05 | % |
Senior Secured Loans | 1.36 | % |
Sovereign Agencies | 0.16 | % |
Sovereign Debt | 5.21 | % |
Supranational Banks | 1.57 | % |
U.S. Treasury Obligations | 6.66 | % |
Common Stock | 0.00 | % |
Convertible Preferred Stock | 0.01 | % |
Preferred Stock | 0.30 | % |
Warrant | 0.00 | % |
Discount Note | 0.16 | % |
Repurchase Agreements | 2.23 | % |
Securities Lending Collateral | 6.96 | % |
Total Value of Securities | 107.56 | % |
Obligation to Return Securities Lending Collateral | (6.96 | %) |
Liabilities Net of Receivables and Other Assets | (0.60 | %) |
Total Net Assets | 100.00 | % |
Credit Quality Breakdown | ||
(as a % of fixed income investments) | ||
AAA | 73.60 | % |
AA | 6.89 | % |
A | 4.88 | % |
BBB | 5.53 | % |
BB | 3.88 | % |
B | 3.39 | % |
CCC | 0.73 | % |
NR | 1.10 | % |
Total | 100.00 | % |
3
Country/Sector allocations
Optimum International Fund
As of September 30, 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 | 98.15 | % |
Australia | 6.53 | % |
Austria | 0.25 | % |
Belgium | 0.82 | % |
Brazil | 0.13 | % |
Canada | 2.49 | % |
China | 0.24 | % |
Finland | 1.37 | % |
France | 13.60 | % |
Germany | 9.84 | % |
Hong Kong | 1.43 | % |
India | 0.20 | % |
Italy | 3.60 | % |
Japan | 20.51 | % |
Netherlands | 3.89 | % |
New Zealand | 0.36 | % |
Norway | 0.69 | % |
Republic of Korea | 0.48 | % |
Russia | 0.48 | % |
Singapore | 1.50 | % |
South Africa | 0.70 | % |
Spain | 4.76 | % |
Sweden | 1.02 | % |
Switzerland | 3.50 | % |
Taiwan | 1.60 | % |
Thailand | 0.09 | % |
United Kingdom | 18.07 | % |
Preferred Stock | 0.36 | % |
Brazil | 0.29 | % |
Republic of Korea | 0.07 | % |
Discount Note | 0.02 | % |
Repurchase Agreements | 0.27 | % |
Securities Lending Collateral | 14.74 | % |
Total Value of Securities | 113.54 | % |
Obligation to Return Securities Lending Collateral | (14.74 | %) |
Receivables and Other Assets Net of Liabilities | 1.20 | % |
Total Net Assets | 100.00 | % |
Percentage | ||
Sector | of Net Assets | |
Automobiles & Components | 6.09 | % |
Banking & Finance | 17.53 | % |
Capital Goods | 1.97 | % |
Consumer Durables & Apparel | 4.31 | % |
Energy | 12.86 | % |
Food & Staples Retailing | 1.28 | % |
Food, Beverage & Tobacco | 5.80 | % |
Insurance | 6.66 | % |
Materials | 8.09 | % |
Media | 1.30 | % |
Pharmaceuticals & Biotechnology | 9.46 | % |
Real Estate | 0.54 | % |
Semiconductors | 1.53 | % |
Technology Hardware & Equipment | 1.55 | % |
Telecommunication Services | 11.98 | % |
Transportation & Shipping | 1.92 | % |
Utilities | 5.64 | % |
Total | 98.51 | % |
4
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 September 30, 2008
Percentage | ||
Sector | of Net Assets | |
Common Stock | 94.43 | % |
Basic Industry/Capital Goods | 8.16 | % |
Business Services | 5.87 | % |
Consumer Durables | 2.01 | % |
Consumer Non-Durables | 9.71 | % |
Consumer Services | 6.62 | % |
Energy | 12.01 | % |
Financials | 11.54 | % |
Health Care | 13.58 | % |
Technology | 21.45 | % |
Transportation | 3.13 | % |
Utilities | 0.35 | % |
Discount Note | 0.30 | % |
Repurchase Agreements | 4.30 | % |
Securities Lending Collateral | 6.12 | % |
Total Value of Securities | 105.15 | % |
Obligation to Return Securities Lending Collateral | (6.12 | %) |
Receivables and Other Assets Net of Liabilities | 0.97 | % |
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 | |
Apple | 2.73 | % |
McDonald’s | 2.51 | % |
Lockheed Martin | 2.20 | % |
Monsanto | 2.09 | % |
General Dynamics | 2.09 | % |
Microsoft | 2.00 | % |
Union Pacific | 1.99 | % |
CVS Caremark | 1.61 | % |
Nintendo ADR | 1.59 | % |
Abbott Laboratories | 1.59 | % |
Optimum Large Cap Value Fund
As of September 30, 2008
Percentage | ||
Sector | of Net Assets | |
Common Stock | 96.90 | % |
Consumer Discretionary | 10.30 | % |
Consumer Staples | 11.70 | % |
Energy | 11.82 | % |
Financials | 19.03 | % |
Health Care | 8.10 | % |
Industrials | 11.74 | % |
Information Technology | 9.01 | % |
Materials | 5.97 | % |
Telecommunications | 5.09 | % |
Utilities | 4.14 | % |
Discount Note | 0.19 | % |
Repurchase Agreements | 2.79 | % |
Securities Lending Collateral | 6.63 | % |
Total Value of Securities | 106.51 | % |
Obligation to Return Securities Lending Collateral | (6.63 | %) |
Receivables and Other Assets Net of Liabilities | 0.12 | % |
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 | |
Chevron | 2.62 | % |
AT&T | 2.62 | % |
International Business Machines | 2.47 | % |
JPMorgan Chase | 2.39 | % |
ConocoPhillips | 2.33 | % |
Lockheed Martin | 2.17 | % |
MetLife | 1.66 | % |
Philip Morris International | 1.66 | % |
Allstate | 1.64 | % |
Kraft Foods Class A | 1.63 | % |
(continues) 5
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 September 30, 2008
Percentage | ||
Sector | of Net Assets | |
Common Stock | 98.39 | % |
Basic Industry/Capital Goods | 18.34 | % |
Business Services | 6.63 | % |
Consumer Durables | 3.80 | % |
Consumer Non-Durables | 9.03 | % |
Consumer Services | 3.32 | % |
Energy | 5.32 | % |
Financials | 11.35 | % |
Health Care | 13.03 | % |
Real Estate | 1.03 | % |
Technology | 23.77 | % |
Transportation | 2.77 | % |
Exchange Traded Fund | 0.12 | % |
Warrant | 0.00 | % |
Discount Note | 0.01 | % |
Repurchase Agreements | 0.10 | % |
Securities Lending Collateral | 19.63 | % |
Total Value of Securities | 118.25 | % |
Obligation to Return Securities Lending Collateral | (19.63 | %) |
Receivables and Other Assets Net of Liabilities | 1.38 | % |
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 | |
FLIR Systems | 3.53 | % |
Concur Technologies | 1.64 | % |
True Religion Apparel | 1.62 | % |
Mettler-Toledo International | 1.53 | % |
FMC Technologies | 1.53 | % |
AMETEK | 1.51 | % |
Waste Connections | 1.40 | % |
ITT Educational Services | 1.26 | % |
Urban Outfitter | 1.19 | % |
Nordson | 1.19 | % |
Optimum Small-Mid Cap Value Fund
As of September 30, 2008
Percentage | ||
Sector | of Net Assets | |
Common Stock | 91.29 | % |
Basic Industry | 16.62 | % |
Business Services | 10.18 | % |
Capital Spending | 5.58 | % |
Consumer Cyclical | 6.33 | % |
Consumer Services | 13.61 | % |
Consumer Staples | 0.45 | % |
Energy | 2.87 | % |
Financial Services | 8.46 | % |
Health Care | 2.33 | % |
Real Estate | 5.54 | % |
Technology | 15.94 | % |
Transportation | 0.83 | % |
Utilities | 2.55 | % |
Exchange Traded Fund | 0.41 | % |
Discount Note | 0.59 | % |
Repurchase Agreements | 8.39 | % |
Securities Lending Collateral | 12.86 | % |
Total Value of Securities | 113.54 | % |
Obligation to Return Securities Lending Collateral | (12.86 | %) |
Liabilities Net of Receivables and Other Assets | (0.68 | %) |
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 | |
Hercules | 2.28 | % |
Flextronics International | 2.11 | % |
Ashland | 1.89 | % |
Great Plains Energy | 1.72 | % |
Albany International | 1.68 | % |
Kennametal | 1.56 | % |
CapLease | 1.45 | % |
Brady Class A | 1.43 | % |
Ethan Allen Interiors | 1.33 | % |
Acuity Brands | 1.32 | % |
6
Statements of net assets
Optimum Fixed Income Fund
September 30, 2008 (Unaudited)
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Agency Collateralized Mortgage Obligations – 9.70% | |||||||
Fannie Mae | |||||||
Series 1996-46 ZA | |||||||
7.50% 11/25/26 | USD | 32,739 | $ | 34,236 | |||
Series 1999-19 PH | |||||||
6.00% 5/25/29 | 1,049,818 | 1,071,219 | |||||
Series 2001-14 Z | |||||||
6.00% 5/25/31 | 72,177 | 73,595 | |||||
Series 2002-90 A1 | |||||||
6.50% 6/25/42 | 21,467 | 22,413 | |||||
Series 2002-90 A2 | |||||||
6.50% 11/25/42 | 90,364 | 93,934 | |||||
Series 2003-122 AJ | |||||||
4.50% 2/25/28 | 122,209 | 121,472 | |||||
Series 2005-22 HE | |||||||
5.00% 10/25/33 | 740,000 | 722,418 | |||||
Series 2005-29 QD | |||||||
5.00% 8/25/33 | 816,000 | 796,100 | |||||
Series 2005-54 AK | |||||||
4.50% 9/25/32 | 859,838 | 849,474 | |||||
Series 2005-67 EY | |||||||
5.50% 8/25/25 | 960,000 | 901,157 | |||||
Series 2005-94 YD | |||||||
4.50% 8/25/33 | 1,480,000 | 1,356,758 | |||||
Series 2005-110 MB | |||||||
5.50% 9/25/35 | 774,104 | 785,424 | |||||
Series 2007-30 OE | |||||||
0.881% 4/25/37 | 12,329,787 | 9,576,085 | |||||
Series 2008-24 ZA | |||||||
5.00% 4/25/38 | 15,378,928 | 12,720,569 | |||||
Series 2008-70 BA | |||||||
4.00% 6/25/21 | 9,665,963 | 9,547,926 | |||||
Fannie Mae Grantor Trust | |||||||
Series 1999-T2 A1 | |||||||
7.50% 1/19/39 | 31,549 | 33,483 | |||||
Series 2001-T8 A2 | |||||||
9.50% 7/25/41 | 16,195 | 17,675 | |||||
Series 2002-T4 A3 | |||||||
7.50% 12/25/41 | 110,943 | 118,196 | |||||
Series 2004-T1 1A2 | |||||||
6.50% 1/25/44 | 47,511 | 49,676 | |||||
Fannie Mae Whole Loan | |||||||
Series 2004-W9 2A1 | |||||||
6.50% 2/25/44 | 58,027 | 60,845 | |||||
Series 2004-W11 1A2 | |||||||
6.50% 5/25/44 | 166,175 | 175,921 | |||||
Series 2004-W15 1A1 | |||||||
6.00% 8/25/44 | 291,368 | 295,953 | |||||
Freddie Mac | |||||||
Series 1730 Z | |||||||
7.00% 5/15/24 | 211,125 | 222,467 | |||||
Series 2113 QE | |||||||
6.00% 11/15/27 | 2,587 | 2,591 | |||||
Series 2165 PE | |||||||
6.00% 6/15/29 | 1,044,850 | 1,063,135 | |||||
Freddie Mac | |||||||
Series 2326 ZQ | |||||||
6.50% 6/15/31 | 379,746 | 397,409 | |||||
Series 2497 BM | |||||||
5.00% 2/15/22 | 288,820 | 290,870 | |||||
Series 2504 J | |||||||
5.50% 5/15/16 | 1,706,168 | 1,726,014 | |||||
Series 2552 KB | |||||||
4.25% 6/15/27 | 27,747 | 27,743 | |||||
Series 2557 WE | |||||||
5.00% 1/15/18 | 732,415 | 722,194 | |||||
Series 2622 PE | |||||||
4.50% 5/15/18 | 2,780,000 | 2,696,817 | |||||
Series 2662 MA | |||||||
4.50% 10/15/31 | 237,366 | 236,645 | |||||
Series 2687 PG | |||||||
5.50% 3/15/32 | 1,000,000 | 991,270 | |||||
Series 2755 LE | |||||||
4.00% 9/15/30 | 557,000 | 523,187 | |||||
Series 2762 LG | |||||||
5.00% 9/15/32 | 2,000,000 | 1,968,063 | |||||
Series 2802 NE | |||||||
5.00% 2/15/33 | 700,000 | 688,747 | |||||
Series 2809 DC | |||||||
4.50% 6/15/19 | 1,000,000 | 960,434 | |||||
Series 2827 TE | |||||||
5.00% 4/15/33 | 1,335,000 | 1,311,733 | |||||
Series 2840 OE | |||||||
5.00% 2/15/33 | 1,800,000 | 1,763,577 | |||||
Series 2864 PE | |||||||
5.00% 6/15/33 | 1,095,000 | 1,074,491 | |||||
Series 2869 BG | |||||||
5.00% 7/15/33 | 224,000 | 219,475 | |||||
Series 2881 TE | |||||||
5.00% 7/15/33 | 1,080,000 | 1,058,305 | |||||
Series 2889 OG | |||||||
5.00% 5/15/33 | 117,000 | 114,488 | |||||
Series 2890 PC | |||||||
5.00% 7/15/30 | 265,000 | 264,740 | |||||
Series 2890 PD | |||||||
5.00% 3/15/33 | 1,265,000 | 1,236,335 | |||||
Series 2893 PD | |||||||
5.00% 2/15/33 | 65,000 | 63,719 | |||||
Series 2915 KD | |||||||
5.00% 9/15/33 | 447,000 | 436,299 | |||||
Series 2915 KP | |||||||
5.00% 11/15/29 | 490,000 | 489,726 | |||||
Series 2938 ND | |||||||
5.00% 10/15/33 | 1,050,000 | 1,023,715 | |||||
Series 2939 PD | |||||||
5.00% 7/15/33 | 665,000 | 649,072 | |||||
Series 2941 XD | |||||||
5.00% 5/15/33 | 2,690,000 | 2,622,726 | |||||
Series 2987 KG | |||||||
5.00% 12/15/34 | 1,430,000 | 1,392,233 |
(continues) 7
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
| Amount° | (U.S. $) | ||||
Agency Collateralized Mortgage Obligations (continued) | ||||||
Freddie Mac | ||||||
Series 3022 MB | ||||||
5.00% 12/15/28 | USD | 260,000 | $ | 262,029 | ||
Series 3063 PC | ||||||
5.00% 2/15/29 | 490,000 | 494,319 | ||||
Series 3113 QA | ||||||
5.00% 11/15/25 | 597,003 | 601,055 | ||||
*Series 3128 BC | ||||||
5.00% 10/15/27 | 2,250,000 | 2,262,098 | ||||
Series 3131 MC | ||||||
5.50% 4/15/33 | 445,000 | 446,318 | ||||
Series 3145 LN | ||||||
4.50% 10/15/34 | 1,416,178 | 1,398,464 | ||||
Series 3154 PJ | ||||||
5.50% 3/15/27 | 849,848 | 865,667 | ||||
Series 3173 PE | ||||||
6.00% 4/15/35 | 3,944,000 | 3,995,703 | ||||
Series 3337 PB | ||||||
5.50% 7/15/30 | 505,000 | 508,832 | ||||
Series 3344 ME | ||||||
5.50% 7/15/37 | 1,000,000 | 948,992 | ||||
Series 3476 Z | ||||||
5.50% 7/15/38 | 10,091,877 | 9,142,887 | ||||
w | Freddie Mac Structured | |||||
Pass Through Securities | ||||||
Series T-54 2A | ||||||
6.50% 2/25/43 | 37,424 | 38,254 | ||||
Series T-58 2A | ||||||
6.50% 9/25/43 | 21,356 | 22,427 | ||||
Total Agency Collateralized | ||||||
Mortgage Obligations | ||||||
(cost $83,298,178) | 86,649,794 | |||||
Agency Mortgage-Backed Securities – 23.61% | ||||||
Fannie Mae | ||||||
5.50% 1/1/13 | 220,609 | 221,425 | ||||
5.50% 3/1/37 | 726,879 | 717,272 | ||||
5.50% 7/1/37 | 1,945,546 | 1,919,832 | ||||
6.00% 7/1/38 | 14,738,561 | 14,803,013 | ||||
6.50% 8/1/17 | 111,708 | 115,767 | ||||
· | Fannie Mae ARM | |||||
5.053% 8/1/35 | 345,589 | 343,687 | ||||
5.134% 11/1/35 | 478,675 | 485,128 | ||||
5.191% 3/1/38 | 1,151,168 | 1,162,197 | ||||
5.225% 3/1/38 | 921,211 | 929,285 | ||||
5.397% 4/1/36 | 663,011 | 672,846 | ||||
5.955% 8/1/37 | 906,068 | 913,315 | ||||
6.043% 7/1/37 | 2,074,052 | 2,116,720 | ||||
6.827% 10/1/33 | 81,199 | 82,639 | ||||
Fannie Mae Relocation 30 yr | ||||||
5.00% 11/1/33 | 37,044 | 36,384 | ||||
5.00% 1/1/34 | 114,077 | 112,036 | ||||
5.00% 2/1/34 | 68,546 | 67,325 | ||||
5.00% 8/1/34 | 103,154 | 101,280 | ||||
Fannie Mae Relocation 30 yr | ||||||
5.00% 11/1/34 | 186,152 | 182,770 | ||||
5.00% 4/1/35 | 281,177 | 275,850 | ||||
5.00% 10/1/35 | 229,661 | 225,311 | ||||
5.00% 1/1/36 | 579,074 | 568,105 | ||||
Fannie Mae S.F. 15 yr | ||||||
4.50% 8/1/18 | 945,992 | 932,081 | ||||
4.50% 6/1/19 | 1,818,091 | 1,791,354 | ||||
4.50% 11/1/19 | 2,664,140 | 2,616,636 | ||||
4.50% 6/1/20 | 2,525,811 | 2,480,774 | ||||
4.50% 7/1/20 | 2,002,059 | 1,966,360 | ||||
4.50% 6/1/23 | 2,483,110 | 2,421,763 | ||||
5.00% 2/1/21 | 2,035,182 | 2,029,159 | ||||
5.00% 5/1/21 | 242,796 | 242,836 | ||||
5.50% 11/1/22 | 1,354,316 | 1,366,526 | ||||
5.50% 6/1/23 | 1,415,439 | 1,428,200 | ||||
6.00% 8/1/22 | 2,510,186 | 2,560,021 | ||||
Fannie Mae S.F. 15 yr TBA | ||||||
4.50% 10/1/23 | 3,870,000 | 3,770,831 | ||||
Fannie Mae S.F. 20 yr | ||||||
5.50% 7/1/24 | 853,736 | 857,408 | ||||
5.50% 10/1/24 | 275,620 | 276,805 | ||||
5.50% 12/1/24 | 863,126 | 866,839 | ||||
Fannie Mae S.F. 30 yr | ||||||
4.50% 8/1/33 | 492,475 | 467,805 | ||||
4.50% 10/1/33 | 2,062,950 | 1,959,607 | ||||
5.00% 10/1/33 | 323,600 | 316,331 | ||||
5.00% 2/1/34 | 283,386 | 277,020 | ||||
5.00% 5/1/34 | 241,977 | 236,315 | ||||
5.00% 8/1/34 | 3,224,179 | 3,151,757 | ||||
5.00% 12/1/36 | 581,859 | 567,880 | ||||
5.00% 12/1/37 | 425,129 | 414,559 | ||||
5.00% 1/1/38 | 739,784 | 721,391 | ||||
5.00% 2/1/38 | 353,695 | 344,866 | ||||
5.50% 3/1/29 | 185,753 | 186,627 | ||||
5.50% 4/1/29 | 91,077 | 91,505 | ||||
5.50% 12/1/32 | 581,666 | 582,129 | ||||
5.50% 7/1/33 | 1,409,572 | 1,409,813 | ||||
5.50% 12/1/33 | 209,666 | 209,702 | ||||
*5.50% 4/1/34 | 3,330,956 | 3,331,843 | ||||
*5.50% 5/1/34 | 953,160 | 953,322 | ||||
5.50% 6/1/34 | 1,089,715 | 1,088,879 | ||||
5.50% 7/1/34 | 1,837,640 | 1,836,231 | ||||
*5.50% 12/1/34 | 1,614,071 | 1,612,833 | ||||
*5.50% 2/1/35 | 5,345,652 | 5,345,158 | ||||
5.50% 9/1/36 | 3,473,861 | 3,471,197 | ||||
*5.50% 7/1/37 | 7,287,889 | 7,273,917 | ||||
5.50% 12/1/37 | 1,320,098 | 1,317,567 | ||||
6.00% 9/1/36 | 861,690 | 873,779 | ||||
6.00% 12/1/36 | 3,884,954 | 3,939,458 | ||||
*6.00% 7/1/37 | 1,857,702 | 1,883,660 | ||||
6.00% 3/1/38 | 774,472 | 785,216 | ||||
6.00% 4/1/38 | 15,801,389 | 16,020,602 |
8
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Agency Mortgage-Backed Securities (continued) | ||||||
Fannie Mae | ||||||
S.F. 30 yr | ||||||
6.00% 8/1/38 | USD | 9,985,354 | $ | 10,123,880 | ||
6.50% 11/1/33 | 39,086 | 40,312 | ||||
6.50% 2/1/36 | 876,427 | 903,787 | ||||
6.50% 3/1/36 | 1,475,467 | 1,514,610 | ||||
6.50% 6/1/36 | 1,938,537 | 1,989,965 | ||||
6.50% 8/1/36 | 1,211,032 | 1,243,160 | ||||
*6.50% 11/1/36 | 1,092,350 | 1,121,329 | ||||
6.50% 4/1/37 | 1,366,701 | 1,402,882 | ||||
6.50% 8/1/37 | 1,889,481 | 1,939,502 | ||||
6.50% 10/1/37 | 1,542,836 | 1,583,680 | ||||
6.50% 11/1/37 | 1,510,747 | 1,550,741 | ||||
6.50% 2/1/38 | 2,207,106 | 2,265,314 | ||||
7.00% 2/1/38 | 2,051,548 | 2,145,947 | ||||
7.00% 3/1/38 | 1,763,083 | 1,844,208 | ||||
7.50% 3/1/32 | 1,859 | 2,002 | ||||
7.50% 4/1/32 | 7,522 | 8,101 | ||||
7.50% 6/1/32 | 5,697 | 6,136 | ||||
Fannie Mae S.F. 30 yr TBA | ||||||
5.00% 10/1/38 | 2,690,000 | 2,621,069 | ||||
5.50% 10/25/38 | 10,755,000 | 10,724,756 | ||||
· | Freddie Mac ARM | |||||
5.517% 8/1/36 | 884,983 | 899,559 | ||||
5.518% 2/1/38 | 2,148,036 | 2,150,681 | ||||
5.678% 7/1/36 | 363,743 | 371,742 | ||||
5.754% 9/1/37 | 1,646,740 | 1,673,699 | ||||
5.821% 10/1/36 | 1,237,259 | 1,268,541 | ||||
5.86% 5/1/37 | 2,268,157 | 2,307,139 | ||||
6.34% 2/1/37 | 1,195,093 | 1,208,433 | ||||
6.411% 12/1/33 | 185,379 | 189,946 | ||||
6.846% 4/1/34 | 13,785 | 13,962 | ||||
Freddie Mac Relocation | ||||||
30 yr 5.00% 9/1/33 | 5,271 | 5,175 | ||||
Freddie Mac S.F. 15 yr | ||||||
4.50% 5/1/20 | 1,159,976 | 1,137,842 | ||||
5.00% 6/1/18 | 394,769 | 396,320 | ||||
Freddie Mac S.F. 20 yr | ||||||
5.50% 10/1/23 | 734,904 | 737,226 | ||||
5.50% 8/1/24 | 182,792 | 183,276 | ||||
Freddie Mac S.F. 30 yr | ||||||
4.50% 10/1/35 | 824,614 | 781,353 | ||||
5.00% 4/1/35 | 688,003 | 672,334 | ||||
5.50% 10/1/36 | 2,874,584 | 2,862,049 | ||||
5.50% 6/1/38 | 9,946,079 | 9,901,151 | ||||
6.00% 6/1/37 | 703,638 | 712,960 | ||||
6.50% 11/1/33 | 90,337 | 93,183 | ||||
6.50% 1/1/35 | 496,105 | 512,665 | ||||
6.50% 5/1/37 | 68,390 | 70,203 | ||||
6.50% 1/1/38 | 2,279,675 | 2,340,100 | ||||
6.50% 2/1/38 | 3,298,534 | 3,385,964 | ||||
6.50% 8/1/38 | 684,382 | 702,523 | ||||
7.00% 1/1/38 | 902,576 | 945,527 | ||||
Freddie Mac S.F. 30 yr TBA | ||||||
5.00% 10/1/38 | 18,580,000 | 18,098,071 | ||||
5.50% 10/1/38 | 1,120,000 | 1,114,051 | ||||
GNMA I S.F. 30 yr | ||||||
7.00% 12/15/34 | 765,758 | 806,753 | ||||
GNMA II 6.00% 4/20/34 | 60,507 | 61,322 | ||||
Total Agency Mortgage-Backed | ||||||
Securities (cost $210,194,386) | 210,965,880 | |||||
Agency Obligations – 2.41% | ||||||
Fannie Mae | ||||||
*3.25% 4/9/13 | 2,860,000 | 2,786,715 | ||||
3.625% 2/12/13 | 1,130,000 | 1,119,701 | ||||
4.375% 3/15/13 | 830,000 | 847,192 | ||||
*4.75% 11/19/12 | 1,100,000 | 1,138,607 | ||||
*5.00% 2/16/12 | 175,000 | 182,731 | ||||
* | Federal Farm Credit Bank | |||||
5.125% 8/25/16 | 485,000 | 498,306 | ||||
Federal Home Loan Bank | ||||||
3.625% 10/18/13 | 3,285,000 | 3,198,680 | ||||
^ | Financing Corporation | |||||
Interest Strip | ||||||
CPN 4.797% 5/2/12 | 85,000 | 76,327 | ||||
CPN 4.901% 10/6/12 | 385,000 | 337,996 | ||||
CPN 4.948% 10/6/14 | 465,000 | 372,034 | ||||
CPN 5.101% 10/6/11 | 113,000 | 103,900 | ||||
CPN 5.175% 3/26/12 | 120,000 | 107,965 | ||||
CPN 5.213% 10/6/15 | 160,000 | 120,162 | ||||
CPN 1 5.162% 5/11/12 | 270,000 | 242,333 | ||||
CPN 1 5.283% 5/11/15 | 330,000 | 253,581 | ||||
CPN 4 5.213% 10/6/15 | 160,000 | 120,162 | ||||
CPN 5 5.065% 8/8/11 | 39,000 | 36,151 | ||||
CPN 12 5.10% 12/6/11 | 500,000 | 455,733 | ||||
CPN 13 5.161% 12/27/12 | 135,000 | 117,338 | ||||
CPN 13 5.208% 6/27/13 | 320,000 | 272,134 | ||||
CPN 15 4.903% 9/7/13 | 610,000 | 514,656 | ||||
CPN A 5.098% 8/8/15 | 122,000 | 92,563 | ||||
CPN A 5.099% 2/8/15 | 122,000 | 94,913 | ||||
Freddie Mac | ||||||
*4.125% 12/21/12 | 5,470,000 | 5,531,465 | ||||
4.75% 1/19/16 | 100,000 | 101,601 | ||||
*^ | Residual Funding | |||||
Principal Strip | ||||||
5.175% 10/15/19 | 3,300,000 | 1,984,379 | ||||
* | Tennessee Valley Authority | |||||
4.875% 1/15/48 | 850,000 | 814,428 | ||||
Total Agency Obligations | ||||||
(cost $21,290,015) | 21,521,753 |
(continues) 9
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Commercial Mortgage-Backed Securities – 2.53% | ||||||
Bank of America Commercial | ||||||
Mortgage Securities | ||||||
·Series 2004-3 A5 | ||||||
5.493% 6/10/39 | USD | 655,000 | $ | 625,386 | ||
·Series 2005-1 A5 | ||||||
5.239% 11/10/42 | 675,000 | 621,558 | ||||
·Series 2005-6 AM | ||||||
5.352% 9/10/47 | 255,000 | 215,249 | ||||
Series 2006-4 A4 | ||||||
5.634% 7/10/46 | 995,000 | 885,659 | ||||
·Series 2007-2 A2 | ||||||
5.634% 4/10/49 | 3,710,000 | 3,464,493 | ||||
·Series 2007-3 A4 | ||||||
5.838% 6/10/49 | 645,000 | 548,149 | ||||
Bear Stearns Commercial | ||||||
Mortgage Securities | ||||||
#Series 2004-ESA E 144A | ||||||
5.064% 5/14/16 | 420,000 | 421,401 | ||||
·Series 2005-T20 A4A | ||||||
5.30% 10/12/42 | 1,000,000 | 912,313 | ||||
·Series 2006-PW12 A4 | ||||||
5.902% 9/11/38 | 750,000 | 681,103 | ||||
Series 2006-PW14 A4 | ||||||
5.201% 12/11/38 | 500,000 | 432,816 | ||||
·Series 2007-PW16 A4 | ||||||
5.902% 6/11/40 | 920,000 | 792,640 | ||||
·Series 2007-T28 A4 | ||||||
5.742% 9/11/42 | 710,000 | 608,169 | ||||
w | Commercial Mortgage Pass | |||||
Through Certificates | ||||||
·#Series 2001-J1A A2 | ||||||
144A 6.457% 2/14/34 | 256,444 | 257,318 | ||||
Series 2006-C7 A2 | ||||||
5.69% 6/10/46 | 260,000 | 252,308 | ||||
· | Credit Suisse Mortgage | |||||
Capital Certificates | ||||||
Series 2006-C1 AAB | ||||||
5.681% 2/15/39 | 140,000 | 130,148 | ||||
# | Crown Castle Towers 144A | |||||
Series 2005-1A C | ||||||
5.074% 6/15/35 | 175,000 | 169,404 | ||||
Series 2006-1A B | ||||||
5.362% 11/15/36 | 375,000 | 363,083 | ||||
General Electric Capital | ||||||
Commercial Mortgage | ||||||
Series 2002-1A A3 | ||||||
6.269% 12/10/35 | 325,000 | 322,745 | ||||
Series 2007-C1 A2 | ||||||
5.417% 12/10/49 | 2,830,000 | 2,636,613 | ||||
Goldman Sachs Mortgage | ||||||
Securities II | ||||||
Series 2005-GG4 A4 | ||||||
4.761% 7/10/39 | 510,000 | 453,990 | ||||
·@#Series 2006-RR3 | ||||||
A1S 144A | ||||||
5.76% 7/18/56 | 505,000 | 282,800 | ||||
·# | Goldman Sachs Mortgage | |||||
Securities II | ||||||
Series 2007-GG10 J | ||||||
144A 5.993% 8/10/45 | 1,956,000 | 584,832 | ||||
· | Greenwich Capital | |||||
Commercial Funding | ||||||
Series 2004-GG1 A7 | ||||||
5.317% 6/10/36 | 460,000 | 433,376 | ||||
JPMorgan Chase Commercial | ||||||
Mortgage Securities | ||||||
Series 2002-C1 A3 | ||||||
5.376% 7/12/37 | 720,000 | 693,110 | ||||
Series 2002-C2 A2 | ||||||
5.05% 12/12/34 | 665,000 | 629,847 | ||||
Series 2003-C1 A2 | ||||||
4.985% 1/12/37 | 130,000 | 122,281 | ||||
Series 2006-LDP9 A2 | ||||||
5.134% 5/15/47 | 960,000 | 842,003 | ||||
Lehman Brothers-UBS | ||||||
Commercial | ||||||
Mortgage Trust | ||||||
Series 2002-C1 A4 | ||||||
6.462% 3/15/31 | 245,000 | 246,110 | ||||
· | Morgan Stanley Capital I | |||||
#Series 1999-FNV1 G | ||||||
144A 6.12% 3/15/31 | 140,000 | 138,463 | ||||
Series 2007-IQ14 A4 | ||||||
5.692% 4/15/49 | 325,000 | 276,070 | ||||
Series 2007-T27 A4 | ||||||
5.803% 6/13/42 | 620,000 | 537,537 | ||||
·# | Morgan Stanley Dean Witter | |||||
Capital I Series | ||||||
2001-TOP1 E 144A | ||||||
7.591% 2/15/33 | 100,000 | 80,749 | ||||
# | NYC Mortgage Loan Trust | |||||
Series 1996 A3 144A | ||||||
6.75% 9/25/19 | 69,415 | 70,456 | ||||
·@# | STRIPs III Series 2003-1A AFIX | |||||
144A 3.308% 3/24/18 | 15,090 | 14,637 | ||||
# | Tower 144A | |||||
Series 2004-2A A | ||||||
4.232% 12/15/14 | 195,000 | 192,237 | ||||
Series 2006-1 B | ||||||
5.588% 2/15/36 | 160,000 | 157,362 | ||||
Series 2006-1 C | ||||||
5.707% 2/15/36 | 250,000 | 232,383 | ||||
Wachovia Bank Commercial | ||||||
Mortgage Trust | ||||||
Series 2006-C28 A2 | ||||||
5.50% 10/15/48 | 555,000 | 530,798 | ||||
Series 2007-C31A A2 | ||||||
5.421% 4/15/47 | 1,880,000 | 1,742,108 | ||||
Total Commercial Mortgage-Backed | ||||||
Securities (cost $25,814,646) | 22,601,704 |
10
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Convertible Bonds – 0.20% | ||||||
Advanced Medical Optics | ||||||
3.25% 8/1/26 | ||||||
exercise price $59.61, | ||||||
expiration date 8/1/26 | USD | 150,000 | $ | 98,625 | ||
Advanced Micro Devices | ||||||
6.00% 5/1/15 | ||||||
exercise price $28.08, | ||||||
expiration date 5/1/15 | 1,040,000 | 510,900 | ||||
Electronic Data Systems | ||||||
3.875% 7/15/23 | ||||||
exercise price $34.14, | ||||||
expiration date 7/15/23 | 775,000 | 751,750 | ||||
· | Wyeth 2.621% 1/15/24 | |||||
exercise price $60.09, | ||||||
expiration date 1/14/24 | 394,000 | 385,056 | ||||
Total Convertible Bonds | ||||||
(cost $2,160,957) | 1,746,331 | |||||
Corporate Bonds – 17.55% | ||||||
Banking – 1.75% | ||||||
American Express | ||||||
Centurion Bank | ||||||
5.55% 10/17/12 | 1,031,000 | 953,170 | ||||
·@# | Banco Mercantil 144A | |||||
6.862% 10/13/21 | 855,000 | 758,319 | ||||
Bank of America | ||||||
5.125% 11/15/14 | 175,000 | 157,614 | ||||
5.30% 3/15/17 | 715,000 | 594,913 | ||||
·8.00% 12/29/49 | 1,010,000 | 800,993 | ||||
Bank of New York Mellon | ||||||
5.125% 8/27/13 | 1,815,000 | 1,732,153 | ||||
# | Bank of Scotland 144A | |||||
5.25% 2/21/17 | 930,000 | 812,662 | ||||
BB&T 5.25% 11/1/19 | 70,000 | 53,459 | ||||
BB&T Capital Trust I | ||||||
5.85% 8/18/35 | 900,000 | 573,455 | ||||
BB&T Capital Trust II | ||||||
6.75% 6/7/36 | 580,000 | 417,880 | ||||
Branch Banking & Trust | ||||||
5.625% 9/15/16 | 350,000 | 293,111 | ||||
· | Capital One FSB | |||||
2.919% 3/13/09 | 555,000 | 552,350 | ||||
# | CoBank 144A | |||||
7.875% 4/16/18 | 320,000 | 308,673 | ||||
JPMorgan Chase | ||||||
Capital XXV | ||||||
6.80% 10/1/37 | 1,254,000 | 963,811 | ||||
Mellon Bank | ||||||
5.45% 4/1/16 | 325,000 | 294,749 | ||||
PNC Bank | ||||||
6.875% 4/1/18 | 795,000 | 762,713 | ||||
·@∏ | Popular North America | |||||
3.191% 4/6/09 | 295,000 | 293,833 | ||||
Silicon Valley Bank | ||||||
5.70% 6/1/12 | 474,000 | 445,338 | ||||
U.S. Bank North America | ||||||
4.80% 4/15/15 | 318,000 | 309,477 | ||||
4.95% 10/30/14 | 250,000 | 242,502 | ||||
· | USB Capital IX | |||||
6.189% 4/15/49 | 1,405,000 | 688,782 | ||||
Wells Fargo | ||||||
5.625% 12/11/17 | 790,000 | 727,310 | ||||
· | Wells Fargo Capital XIII | |||||
7.70% 12/29/49 | 3,335,000 | 2,910,787 | ||||
15,648,054 | ||||||
Basic Industry – 1.34% | ||||||
# | ArcelorMittal 144A | |||||
6.125% 6/1/18 | 1,000,000 | 887,663 | ||||
California Steel Industries | ||||||
6.125% 3/15/14 | 175,000 | 143,938 | ||||
CPG International I | ||||||
10.50% 7/1/13 | 109,000 | 74,665 | ||||
Domtar 7.125% 8/15/15 | 101,000 | 93,425 | ||||
duPont (E.I.) deNemours | ||||||
6.00% 7/15/18 | 725,000 | 708,980 | ||||
# | Evraz Group 144A | |||||
9.50% 4/24/18 | 2,119,000 | 1,536,274 | ||||
Freeport McMoRan | ||||||
Copper & Gold | ||||||
8.25% 4/1/15 | 55,000 | 54,104 | ||||
8.375% 4/1/17 | 685,000 | 675,733 | ||||
Georgia-Pacific | ||||||
7.70% 6/15/15 | 95,000 | 87,400 | ||||
8.875% 5/15/31 | 22,000 | 19,250 | ||||
*9.50% 12/1/11 | 14,000 | 13,930 | ||||
# | GTL Trade Finance 144A | |||||
7.25% 10/20/17 | 416,000 | 399,504 | ||||
Innophos 8.875% 8/15/14 | 268,000 | 269,340 | ||||
# | Innophos Holding 144A | |||||
9.50% 4/15/12 | 145,000 | 147,175 | ||||
Lubrizol 4.625% 10/1/09 | 451,000 | 448,961 | ||||
# | MacDermid 144A | |||||
9.50% 4/15/17 | 439,000 | 370,955 | ||||
Momentive Performance | ||||||
Materials | ||||||
9.75% 12/1/14 | 380,000 | 302,100 | ||||
NewPage 10.00% 5/1/12 | 349,000 | 314,100 | ||||
# | Nine Dragons Paper | |||||
Holdings 144A | ||||||
7.875% 4/29/13 | 646,000 | 594,281 | ||||
· | Noranda Aluminum | |||||
Acquisition | ||||||
6.828% 5/15/15 | 220,000 | 168,300 |
(continues) 11
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||
| Amount° | (U.S. $) | ||||
Corporate Bonds (continued) | ||||||
Basic Industry (continued) | ||||||
Norske Skog Canada | ||||||
8.625% 6/15/11 | USD | 195,000 | $ | 155,025 | ||
# | Norske Skogindustrier 144A | |||||
7.125% 10/15/33 | 370,000 | 212,750 | ||||
@=∏ | Port Townsend | |||||
12.431% 8/27/12 | 82,600 | 81,774 | ||||
Potlatch 13.00% 12/1/09 | 315,000 | 341,372 | ||||
Rio Tinto Finance USA | ||||||
6.50% 7/15/18 | 115,000 | 108,937 | ||||
# | Rock-Tenn 144A | |||||
9.25% 3/15/16 | 177,000 | 180,540 | ||||
Rockwood Specialties Group | ||||||
7.50% 11/15/14 | 240,000 | 229,200 | ||||
# | Ryerson 144A | |||||
·10.176% 11/1/14 | 210,000 | 172,200 | ||||
12.00% 11/1/15 | 80,000 | 68,400 | ||||
# | Sappi Papier Holding 144A | |||||
6.75% 6/15/12 | 439,000 | 347,081 | ||||
# | Severstal 144A | |||||
9.75% 7/29/13 | 1,213,000 | 1,000,725 | ||||
# | Steel Dynamics 144A | |||||
7.75% 4/15/16 | 781,000 | 698,995 | ||||
Vale Overseas | ||||||
6.875% 11/21/36 | 850,000 | 760,841 | ||||
# | Vedanta Resources 144A | |||||
9.50% 7/18/18 | 210,000 | 179,319 | ||||
· | Verso Paper Holdings | |||||
6.551% 8/1/14 | 105,000 | 87,150 | ||||
11,934,387 | ||||||
Brokerage – 0.81% | ||||||
AMVESCAP 4.50% 12/15/09 | 313,000 | 300,291 | ||||
Citigroup 6.50% 8/19/13 | 3,705,000 | 3,296,202 | ||||
Goldman Sachs Group | ||||||
5.95% 1/18/18 | 495,000 | 409,046 | ||||
6.15% 4/1/18 | 865,000 | 720,481 | ||||
6.75% 10/1/37 | 716,000 | 479,146 | ||||
Jefferies Group | ||||||
6.45% 6/8/27 | 501,000 | 369,339 | ||||
JPMorgan Chase | ||||||
6.40% 5/15/38 | 1,148,000 | 995,513 | ||||
LaBranche 11.00% 5/15/12 | 69,000 | 65,205 | ||||
Lazard Group | ||||||
6.85% 6/15/17 | 150,000 | 124,421 | ||||
Lehman Brothers Holdings | ||||||
6.75% 12/28/17 | 1,205,000 | 6,025 | ||||
6.875% 7/17/37 | 447,000 | 2,235 | ||||
Morgan Stanley | ||||||
5.375% 10/15/15 | 725,000 | 449,939 | ||||
7,217,843 | ||||||
Capital Goods – 0.90% | ||||||
* | Associated Materials | |||||
9.75% 4/15/12 | 280,000 | 277,200 | ||||
BWAY 10.00% 10/15/10 | 395,000 | 385,125 | ||||
Casella Waste Systems | ||||||
9.75% 2/1/13 | 366,000 | 360,510 | ||||
DRS Technologies | ||||||
7.625% 2/1/18 | 344,000 | 361,200 | ||||
General Electric | ||||||
5.25% 12/6/17 | 1,390,000 | 1,218,427 | ||||
Graham Packaging | ||||||
8.50% 10/15/12 | 138,000 | 128,340 | ||||
*9.875% 10/15/14 | 270,000 | 236,250 | ||||
Graphic Packaging | ||||||
International | ||||||
9.50% 8/15/13 | 809,000 | 736,190 | ||||
Greenbrier | ||||||
8.375% 5/15/15 | 605,000 | 523,325 | ||||
Hexion US Finance | ||||||
9.75% 11/15/14 | 200,000 | 159,000 | ||||
Intertape Polymer | ||||||
8.50% 8/1/14 | 97,000 | 82,208 | ||||
# | Moog 144A | |||||
7.25% 6/15/18 | 160,000 | 154,400 | ||||
* | NXP BV Funding | |||||
9.50% 10/15/15 | 298,000 | 154,215 | ||||
Owens Brockway | ||||||
Glass Container | ||||||
6.75% 12/1/14 | 295,000 | 281,725 | ||||
Thermadyne Industries | ||||||
9.50% 2/1/14 | 305,000 | 291,275 | ||||
Tyco Electronics Group | ||||||
5.95% 1/15/14 | 865,000 | 851,817 | ||||
7.125% 10/1/37 | 1,054,000 | 998,865 | ||||
Vitro 11.75% 11/1/13 | 521,000 | 450,665 | ||||
Vought Aircraft Industries | ||||||
8.00% 7/15/11 | 395,000 | 345,625 | ||||
7,996,362 | ||||||
Communications – 2.89% | ||||||
AT&T 5.60% 5/15/18 | 890,000 | 798,019 | ||||
AT&T Wireless | ||||||
8.125% 5/1/12 | 1,151,000 | 1,228,588 | ||||
CCO Holdings | ||||||
8.75% 11/15/13 | 1,105,000 | 966,875 | ||||
· | Centennial Communications | |||||
8.541% 1/1/13 | 126,000 | 115,290 | ||||
# | Charter Communications | |||||
Operating 144A | ||||||
10.875% 9/15/14 | 852,000 | 830,700 | ||||
Cincinnati Bell | ||||||
7.00% 2/15/15 | 155,000 | 130,975 | ||||
Citizens Communications | ||||||
7.125% 3/15/19 | 790,000 | 632,000 |
12
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Communications (continued) | |||||||
# | Clear Channel | ||||||
Communications | |||||||
144A 10.75% 8/1/16 | USD | 200,000 | $ | 105,000 | |||
Comcast | |||||||
·3.088% 7/14/09 | 344,000 | 336,671 | |||||
5.875% 2/15/18 | 665,000 | 593,964 | |||||
6.30% 11/15/17 | 499,000 | 459,603 | |||||
Comcast Cable Holdings | |||||||
10.125% 4/15/22 | 329,000 | 378,568 | |||||
Cricket Communications | |||||||
9.375% 11/1/14 | 662,000 | 618,970 | |||||
9.375% 11/1/14 | 85,000 | 79,475 | |||||
CSC Holdings | |||||||
6.75% 4/15/12 | 560,000 | 515,900 | |||||
# | CSC Holdings 144A | ||||||
8.50% 6/15/15 | 230,000 | 214,763 | |||||
Dex Media West | |||||||
9.875% 8/15/13 | 428,000 | 266,430 | |||||
# | Digicel 144A | ||||||
9.25% 9/1/12 | 926,000 | 921,370 | |||||
# | DirecTV Holdings 144A | ||||||
7.625% 5/15/16 | 584,000 | 531,440 | |||||
# | Expedia 144A | ||||||
8.50% 7/1/16 | 140,000 | 126,700 | |||||
GCI 7.25% 2/15/14 | 30,000 | 26,250 | |||||
Grupo Televisa | |||||||
8.49% 5/11/37 | MXN | 7,400,000 | 599,524 | ||||
Hughes Network | |||||||
Systems/Finance | |||||||
9.50% 4/15/14 | USD | 186,000 | 181,350 | ||||
W | Inmarsat Finance | ||||||
10.375% 11/15/12 | 811,000 | 802,890 | |||||
Intelsat Jackson Holdings | |||||||
11.25% 6/15/16 | 695,000 | 679,363 | |||||
# | Intelsat Subsidiary | ||||||
Holding 144A | |||||||
8.875% 1/15/15 | 100,000 | 92,000 | |||||
* | Lamar Media | ||||||
6.625% 8/15/15 | 515,000 | 428,738 | |||||
# | LBI Media 144A | ||||||
8.50% 8/1/17 | 88,000 | 58,520 | |||||
LIN Television | |||||||
6.50% 5/15/13 | 140,000 | 109,900 | |||||
Lucent Technologies | |||||||
6.45% 3/15/29 | 242,000 | 148,830 | |||||
MetroPCS Wireless | |||||||
9.25% 11/1/14 | 1,144,000 | 1,075,360 | |||||
# | Nordic Telephone | ||||||
Holdings 144A | |||||||
8.875% 5/1/16 | 225,000 | 205,875 | |||||
Nortel Networks | |||||||
·7.041% 7/15/11 | 222,000 | 149,295 | |||||
10.75% 7/15/16 | 300,000 | 185,250 | |||||
# | Nortel Networks 144A | ||||||
10.75% 7/15/16 | 311,000 | 192,043 | |||||
* | PAETEC Holding | ||||||
9.50% 7/15/15 | 157,000 | 108,330 | |||||
Quebecor Media | |||||||
7.75% 3/15/16 | 264,000 | 232,320 | |||||
Qwest Capital Funding | |||||||
7.25% 2/15/11 | 290,000 | 272,600 | |||||
Rogers Communications | |||||||
6.80% 8/15/18 | 1,600,000 | 1,516,303 | |||||
Sprint Capital | |||||||
8.375% 3/15/12 | 1,060,000 | 954,685 | |||||
Sprint Nextel | |||||||
6.00% 12/1/16 | 270,000 | 208,212 | |||||
Telecom Italia Capital | |||||||
4.00% 1/15/10 | 661,000 | 642,023 | |||||
7.721% 6/4/38 | 565,000 | 469,481 | |||||
Thomson Reuters | |||||||
5.95% 7/15/13 | 460,000 | 459,931 | |||||
6.50% 7/15/18 | 620,000 | 593,995 | |||||
Time Warner Cable | |||||||
7.30% 7/1/38 | 455,000 | 405,883 | |||||
Time Warner Telecom | |||||||
Holdings | |||||||
9.25% 2/15/14 | 144,000 | 133,920 | |||||
* | Univision | ||||||
Communications | |||||||
7.85% 7/15/11 | 45,000 | 35,325 | |||||
Verizon Communications | |||||||
5.55% 2/15/16 | 914,000 | 843,585 | |||||
6.10% 4/15/18 | 410,000 | 379,262 | |||||
Videotron | |||||||
6.375% 12/15/15 | 5,000 | 4,425 | |||||
# | Videotron 144A | ||||||
9.125% 4/15/18 | 220,000 | 223,300 | |||||
# | Vimpelcom 144A | ||||||
9.125% 4/30/18 | 2,521,000 | 1,959,794 | |||||
Virgin Media Finance | |||||||
8.75% 4/15/14 | 375,000 | 316,875 | |||||
# | Vivendi 144A | ||||||
6.625% 4/4/18 | 695,000 | 670,143 | |||||
Vodafone Group | |||||||
5.00% 9/15/15 | 235,000 | 207,106 | |||||
Windstream | |||||||
8.125% 8/1/13 | 356,000 | 339,980 | |||||
# | XM Satellite Radio | ||||||
Holdings 144A | |||||||
13.00% 8/1/13 | 155,000 | 92,225 | |||||
25,856,192 | |||||||
Consumer Cyclical – 1.49% | |||||||
Centex | |||||||
4.55% 11/1/10 | 165,000 | 146,850 | |||||
5.125% 10/1/13 | 65,000 | 51,675 | |||||
Corrections Corporation | |||||||
of America | |||||||
6.25% 3/15/13 | 125,000 | 117,500 |
(continues) 13
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Consumer Cyclical (continued) | |||||||
CVS Caremark | |||||||
4.875% 9/15/14 | USD | 548,000 | $ | 513,279 | |||
5.75% 6/1/17 | 568,000 | 531,674 | |||||
·6.302% 6/1/37 | 1,897,000 | 1,515,932 | |||||
· | Daimler Finance | ||||||
North America | |||||||
3.241% 8/3/09 | 620,000 | 617,346 | |||||
* | Denny’s Holdings | ||||||
10.00% 10/1/12 | 85,000 | 77,775 | |||||
* | Dollar General | ||||||
10.625% 7/15/15 | 521,000 | 515,790 | |||||
DR Horton | |||||||
6.00% 4/15/11 | 385,000 | 346,500 | |||||
7.875% 8/15/11 | 280,000 | 253,400 | |||||
Ford Motor 7.45% 7/16/31 | 1,371,000 | 596,385 | |||||
Ford Motor Credit | |||||||
7.80% 6/1/12 | 510,000 | 316,893 | |||||
# | Galaxy Entertainment | ||||||
Finance 144A | |||||||
·8.133% 12/15/10 | 560,000 | 389,200 | |||||
9.875% 12/15/12 | 330,000 | 226,050 | |||||
Gaylord Entertainment | |||||||
6.75% 11/15/14 | 100,000 | 84,500 | |||||
8.00% 11/15/13 | 353,000 | 308,875 | |||||
* | General Motors | ||||||
7.20% 1/15/11 | 560,000 | 330,400 | |||||
8.375% 7/15/33 | 877,000 | 355,185 | |||||
General Motors Nova | |||||||
Scotia Finance | |||||||
6.85% 10/15/08 | 65,000 | 64,513 | |||||
Global Cash Access | |||||||
8.75% 3/15/12 | 218,000 | 192,930 | |||||
· | GMAC 4.054% 5/15/09 | 465,000 | 336,493 | ||||
Goodyear Tire & Rubber | |||||||
9.00% 7/1/15 | 150,000 | 149,250 | |||||
Harrah’s Operating | |||||||
5.50% 7/1/10 | 197,000 | 148,735 | |||||
# | Harrah’s Operating 144A | ||||||
10.75% 2/1/16 | 200,000 | 103,000 | |||||
Lear 8.75% 12/1/16 | 485,000 | 339,500 | |||||
Levi Strauss 9.75% 1/15/15 | 157,000 | 131,880 | |||||
M/I Homes | |||||||
6.875% 4/1/12 | 120,000 | 96,600 | |||||
MGM MIRAGE | |||||||
7.50% 6/1/16 | 345,000 | 253,575 | |||||
Mobile Mini | |||||||
6.875% 5/1/15 | 160,000 | 140,000 | |||||
* | Neiman Marcus Group | ||||||
10.375% 10/15/15 | 844,000 | 711,069 | |||||
Pinnacle Entertainment | |||||||
8.25% 3/15/12 | 70,000 | 67,988 | |||||
8.75% 10/1/13 | 195,000 | 187,688 | |||||
# | Pokagon Gaming | ||||||
Authority 144A | |||||||
10.375% 6/15/14 | 453,000 | 460,928 | |||||
Ryland Group | |||||||
5.375% 5/15/12 | 325,000 | 266,500 | |||||
6.875% 6/15/13 | 310,000 | 260,400 | |||||
* | Sally Holdings | ||||||
10.50% 11/15/16 | 280,000 | 267,400 | |||||
* | Tenneco 8.625% 11/15/14 | 280,000 | 224,000 | ||||
Toll | |||||||
8.25% 2/1/11 | 375,000 | 361,875 | |||||
8.25% 12/1/11 | 105,000 | 101,325 | |||||
Travelport 9.875% 9/1/14 | 285,000 | 233,700 | |||||
*# | TRW Automotive 144A | ||||||
7.00% 3/15/14 | 165,000 | 136,950 | |||||
· | Viacom 3.169% 6/16/09 | 238,000 | 235,461 | ||||
Wal-Mart Stores | |||||||
6.20% 4/15/38 | 600,000 | 549,073 | |||||
13,316,042 | |||||||
Consumer Non-Cyclical – 1.74% | |||||||
ACCO Brands | |||||||
7.625% 8/15/15 | 91,000 | 70,070 | |||||
* | Advanced Medical Optics | ||||||
7.50% 5/1/17 | 311,000 | 272,125 | |||||
Alliance Imaging | |||||||
7.25% 12/15/12 | 155,000 | 141,825 | |||||
# | AmBev International | ||||||
Finance 144A | |||||||
9.50% 7/24/17 | BRL | 581,000 | 222,968 | ||||
Aramark 8.50% 2/1/15 | USD | 537,000 | 507,465 | ||||
AstraZeneca 5.90% 9/15/17 | 370,000 | 364,939 | |||||
# | Bausch & Lomb 144A | ||||||
9.875% 11/1/15 | 1,153,000 | 1,098,233 | |||||
Biomet 10.00% 10/15/17 | 275,000 | 281,875 | |||||
* | Chiquita Brands | ||||||
International | |||||||
8.875% 12/1/15 | 315,000 | 256,725 | |||||
Community Health | |||||||
Systems | |||||||
8.875% 7/15/15 | 285,000 | 272,175 | |||||
* | Constellation Brands | ||||||
8.125% 1/15/12 | 132,000 | 128,700 | |||||
Covidien International | |||||||
Finance | |||||||
6.00% 10/15/17 | 866,000 | 857,074 | |||||
6.55% 10/15/37 | 302,000 | 291,260 | |||||
CRC Health | |||||||
10.75% 2/1/16 | 172,000 | 133,300 |
14
Principal | Value | |||||
Amount° | (U.S. $) | |||||
Corporate Bonds (continued) | ||||||
Consumer Non-Cyclical (continued) | ||||||
Del Monte | ||||||
6.75% 2/15/15 | USD | 54,000 | $ | 48,870 | ||
8.625% 12/15/12 | 40,000 | 39,800 | ||||
Delhaize America | ||||||
9.00% 4/15/31 | 472,000 | 496,706 | ||||
Diageo Capital | ||||||
5.75% 10/23/17 | 539,000 | 518,126 | ||||
# | Dr Pepper Snapple | |||||
Group 144A | ||||||
6.82% 5/1/18 | 1,470,000 | 1,421,372 | ||||
GlaxoSmithKline Capital | ||||||
4.375% 4/15/14 | 240,000 | 227,952 | ||||
5.65% 5/15/18 | 980,000 | 932,123 | ||||
HCA 9.25% 11/15/16 | 1,132,000 | 1,103,700 | ||||
* | HCA PIK 9.625% 11/15/16 | 78,000 | 74,295 | |||
· | HealthSouth | |||||
9.133% 6/15/14 | 486,000 | 473,850 | ||||
Iron Mountain | ||||||
6.625% 1/1/16 | 96,000 | 90,720 | ||||
8.00% 6/15/20 | 372,000 | 358,980 | ||||
* | Jarden 7.50% 5/1/17 | 313,000 | 262,138 | |||
Kraft Foods | ||||||
4.125% 11/12/09 | 10,000 | 9,929 | ||||
6.125% 2/1/18 | 994,000 | 932,769 | ||||
Quest Diagnostic | ||||||
5.45% 11/1/15 | 763,000 | 724,314 | ||||
6.95% 7/1/37 | 461,000 | 442,974 | ||||
Select Medical | ||||||
7.625% 2/1/15 | 370,000 | 301,550 | ||||
# | Seminole Indian Tribe of | |||||
Florida 144A | ||||||
7.804% 10/1/20 | 195,000 | 181,317 | ||||
�� 8.03% 10/1/20 | 80,000 | 75,329 | ||||
Tyson Food 7.35% 4/1/16 | 145,000 | 120,350 | ||||
Visant Holding | ||||||
8.75% 12/1/13 | 106,000 | 97,785 | ||||
Wyeth 5.50% 2/1/14 | 1,713,000 | 1,699,982 | ||||
15,533,665 | ||||||
Electric – 1.45% | ||||||
AES | ||||||
7.75% 3/1/14 | 38,000 | 35,530 | ||||
8.00% 10/15/17 | 113,000 | 102,548 | ||||
# | AES 144A | |||||
8.00% 6/1/20 | 591,000 | 520,080 | ||||
8.75% 5/15/13 | 63,000 | 63,630 | ||||
Baltimore Gas & Electric | ||||||
6.125% 7/1/13 | 350,000 | 346,059 | ||||
Columbus Southern Power | ||||||
6.05% 5/1/18 | 281,000 | 263,506 | ||||
Commonwealth Edison | ||||||
6.15% 9/15/17 | 426,000 | 403,550 | ||||
Detroit Edison | ||||||
5.60% 6/15/18 | 302,000 | 281,607 | ||||
Dominion Resources | ||||||
·6.30% 9/30/66 | 810,000 | 713,424 | ||||
6.40% 6/15/18 | 100,000 | 95,813 | ||||
Duquense Light Holdings | ||||||
5.50% 8/15/15 | 756,000 | 664,819 | ||||
Edison Mission Energy | ||||||
7.625% 5/15/27 | 524,000 | 427,060 | ||||
Elwood Energy | ||||||
8.159% 7/5/26 | 195,699 | 180,300 | ||||
Florida Power | ||||||
6.40% 6/15/38 | 590,000 | 560,482 | ||||
· | FPL Group Capital | |||||
6.65% 6/17/67 | 1,080,000 | 859,442 | ||||
Illinois Power | ||||||
6.125% 11/15/17 | 328,000 | 301,610 | ||||
* | ISA Capital do Brasil | |||||
7.875% 1/30/12 | 145,000 | 139,563 | ||||
# | ISA Capital do Brasil 144A | |||||
7.875% 1/30/12 | 562,000 | 540,925 | ||||
8.80% 1/30/17 | 295,000 | 283,938 | ||||
# | Korea Southern | |||||
Power 144A | ||||||
5.375% 4/18/13 | 542,000 | 527,830 | ||||
Midamerican Funding | ||||||
6.75% 3/1/11 | 10,000 | 10,649 | ||||
Midwest Generation | ||||||
8.30% 7/2/09 | 67,984 | 68,878 | ||||
Mirant North America | ||||||
7.375% 12/31/13 | 276,000 | 260,820 | ||||
NRG Energy | ||||||
7.375% 2/1/16 | 475,000 | 428,688 | ||||
Orion Power Holdings | ||||||
12.00% 5/1/10 | 271,000 | 264,225 | ||||
Peco Energy | ||||||
5.35% 3/1/18 | 225,000 | 204,766 | ||||
# | Pedernales Electric | |||||
Cooperative 144A | ||||||
6.202% 11/15/32 | 620,000 | 569,284 | ||||
# | Power Contract | |||||
Financing 144A | ||||||
6.256% 2/1/10 | 84,034 | 85,151 | ||||
· | PPL Capital Funding | |||||
6.70% 3/30/67 | 1,555,000 | 1,262,064 | ||||
South Carolina | ||||||
Electric & Gas | ||||||
6.50% 11/1/18 | 360,000 | 362,740 | ||||
# | Texas Competitive Electric | |||||
Holdings 144A | ||||||
10.25% 11/1/15 | 1,447,000 | 1,313,152 | ||||
# | TXU Australia 144A | |||||
6.15% 11/15/13 | 375,000 | 370,916 |
(continues) 15
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Electric (continued) | |||||||
Union Electric | |||||||
6.70% 2/1/19 | USD | 230,000 | $ | 222,501 | |||
# | West Penn Power 144A | ||||||
5.95% 12/15/17 | 204,000 | 189,624 | |||||
12,925,174 | |||||||
Energy – 1.31% | |||||||
Apache 6.90% 9/15/18 | 645,000 | 647,094 | |||||
Chesapeake Energy | |||||||
6.375% 6/15/15 | 45,000 | 40,388 | |||||
6.625% 1/15/16 | 227,000 | 204,868 | |||||
Complete Production Service | |||||||
8.00% 12/15/16 | 126,000 | 120,330 | |||||
Compton Petroleum Finance | |||||||
7.625% 12/1/13 | 329,000 | 290,343 | |||||
# | Connacher Oil & Gas 144A | ||||||
10.25% 12/15/15 | 400,000 | 386,000 | |||||
# | Copano Energy 144A | ||||||
7.75% 6/1/18 | 155,000 | 136,400 | |||||
Enbridge Energy Partners | |||||||
6.50% 4/15/18 | 610,000 | 563,878 | |||||
Energy Partners | |||||||
9.75% 4/15/14 | 95,000 | 70,300 | |||||
Frontier Oil | |||||||
8.50% 9/15/16 | 120,000 | 116,100 | |||||
Geophysique-Veritas | |||||||
7.50% 5/15/15 | 32,000 | 30,720 | |||||
7.75% 5/15/17 | 239,000 | 228,245 | |||||
# | Helix Energy Solutions | ||||||
Group 144A | |||||||
9.50% 1/15/16 | 926,000 | 870,440 | |||||
# | Hilcorp Energy I 144A | ||||||
7.75% 11/1/15 | 222,000 | 192,030 | |||||
9.00% 6/1/16 | 176,000 | 161,040 | |||||
International Coal Group | |||||||
10.25% 7/15/14 | 310,000 | 278,225 | |||||
# | Key Energy Services 144A | ||||||
8.375% 12/1/14 | 113,000 | 109,045 | |||||
# | Lukoil International | ||||||
Finance 144A | |||||||
6.356% 6/7/17 | 380,000 | 289,750 | |||||
Mariner Energy | |||||||
8.00% 5/15/17 | 204,000 | 173,400 | |||||
MarkWest Energy Partners | |||||||
8.75% 4/15/18 | 265,000 | 253,075 | |||||
Massey Energy | |||||||
6.875% 12/15/13 | 312,000 | 283,920 | |||||
OPTI Canada | |||||||
7.875% 12/15/14 | 130,000 | 115,700 | |||||
8.25% 12/15/14 | 320,000 | 288,000 | |||||
Petro-Canada | |||||||
6.05% 5/15/18 | 680,000 | 594,615 | |||||
PetroHawk Energy | |||||||
9.125% 7/15/13 | 219,000 | 206,955 | |||||
# | PetroHawk Energy 144A | ||||||
7.875% 6/1/15 | 210,000 | 183,750 | |||||
Petroleum Development | |||||||
12.00% 2/15/18 | 185,000 | 178,525 | |||||
# | Plains All American | ||||||
Pipeline 144A | |||||||
6.50% 5/1/18 | 1,100,000 | 994,012 | |||||
Plains Exploration & | |||||||
Production | |||||||
7.00% 3/15/17 | 110,000 | 96,250 | |||||
7.625% 6/1/18 | 635,000 | 565,150 | |||||
Range Resources | |||||||
7.25% 5/1/18 | 145,000 | 137,750 | |||||
Suncor Energy | |||||||
6.50% 6/15/38 | 206,000 | 172,651 | |||||
TNK-BP Finance | |||||||
7.875% 3/13/18 | 442,000 | 318,240 | |||||
TransCanada Pipelines | |||||||
7.25% 8/15/38 | 605,000 | 583,299 | |||||
Weatherford International | |||||||
6.00% 3/15/18 | 255,000 | 229,340 | |||||
6.35% 6/15/17 | 165,000 | 152,960 | |||||
Whiting Petroleum | |||||||
7.25% 5/1/13 | 400,000 | 373,000 | |||||
Williams 7.50% 1/15/31 | 165,000 | 150,531 | |||||
XTO Energy | |||||||
5.50% 6/15/18 | 440,000 | 389,637 | |||||
6.75% 8/1/37 | 600,000 | 533,957 | |||||
11,709,913 | |||||||
Finance Companies – 0.91% | |||||||
Capmark Financial Group | |||||||
6.30% 5/10/17 | 352,000 | 138,485 | |||||
Cardtronics 9.25% 8/15/13 | 372,000 | 336,660 | |||||
Caterpillar Financial | |||||||
Services | |||||||
7.05% 10/1/18 | 480,000 | 480,146 | |||||
FTI Consulting | |||||||
7.625% 6/15/13 | 508,000 | 520,065 | |||||
General Electric Capital | |||||||
4.80% 5/1/13 | 845,000 | 771,496 | |||||
5.125% 1/28/14 | SEK | 2,500,000 | 351,496 | ||||
5.625% 5/1/18 | USD | 855,000 | 723,985 | ||||
5.875% 1/14/38 | 1,455,000 | 1,075,816 | |||||
·6.50% 2/2/11 | NOK | 3,500,000 | 577,393 |
16
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Finance Companies (continued) | |||||||
General Electric Capital | |||||||
UK Funding | |||||||
4.625% 1/18/16 | GBP | 226,000 | $ | 315,304 | |||
· | Goldman Sachs Capital II | ||||||
5.793% 12/29/49 | USD | 1,818,000 | 799,211 | ||||
· | HSBC Financial | ||||||
3.457% 4/24/10 | CAD | 283,000 | 260,595 | ||||
·# | ILFC E-Capital | ||||||
Trust II 144A | |||||||
6.25% 12/21/65 | USD | 405,000 | 121,156 | ||||
International Lease Finance | |||||||
5.35% 3/1/12 | 413,000 | 305,946 | |||||
5.875% 5/1/13 | 255,000 | 161,454 | |||||
6.625% 11/15/13 | 665,000 | 408,050 | |||||
# | Lender Processing | ||||||
Services 144A | |||||||
8.125% 7/1/16 | 135,000 | 132,300 | |||||
Leucadia National | |||||||
8.125% 9/15/15 | 114,000 | 111,435 | |||||
# | Nuveen Investments 144A | ||||||
10.50% 11/15/15 | 425,000 | 329,375 | |||||
·# | Xstrata Finance 144A | ||||||
3.154% 11/13/09 | 255,000 | 249,837 | |||||
8,170,205 | |||||||
Insurance – 1.99% | |||||||
21st Century Insurance | |||||||
5.90% 12/15/13 | 275,000 | 168,608 | |||||
# | Berkshire Hathaway | ||||||
Finance 144A | |||||||
5.40% 5/15/18 | 440,000 | 427,020 | |||||
· | Everest Reinsurance | ||||||
Holdings | |||||||
6.60% 5/15/37 | 860,000 | 503,342 | |||||
# | Farmers Insurance | ||||||
Exchange 144A | |||||||
8.625% 5/1/24 | 610,000 | 583,462 | |||||
FBL Financial Group | |||||||
5.875% 3/15/17 | 720,000 | 636,260 | |||||
· | Hartford Financial | ||||||
Services Group | |||||||
8.125% 6/15/38 | 2,335,000 | 1,991,911 | |||||
@# | Max USA Holdings 144A | ||||||
7.20% 4/14/17 | 275,000 | 281,398 | |||||
MetLife 6.817% 8/15/18 | 105,000 | 99,525 | |||||
·# | MetLife Capital | ||||||
Trust X 144A | |||||||
9.25% 4/8/38 | 2,100,000 | 1,998,150 | |||||
# | Metropolitan Life Global | ||||||
Funding I 144A | |||||||
4.25% 7/30/09 | 420,000 | 412,515 | |||||
5.125% 4/10/13 | 1,070,000 | 1,040,511 | |||||
@∏ | Montpelier Re Holdings | ||||||
6.125% 8/15/13 | 140,000 | 138,722 | |||||
# | New York Life Global | ||||||
Funding 144A | |||||||
4.65% 5/9/13 | 2,330,000 | 2,330,910 | |||||
# | NLV Financial 144A | ||||||
6.50% 3/15/35 | 385,000 | 330,656 | |||||
·# | Oil Insurance 144A | ||||||
7.558% 12/29/49 | 2,295,000 | 1,748,616 | |||||
· | PartnerRe Finance II | ||||||
6.44% 12/1/66 | 1,148,000 | 830,886 | |||||
·# | Symetra Financial 144A | ||||||
8.30% 10/15/37 | 515,000 | 335,204 | |||||
Transatlantic Holdings | |||||||
5.75% 12/14/15 | 1,154,000 | 1,106,357 | |||||
·w@# | Twin Reefs Pass Through | ||||||
Trust 144A | |||||||
3.463% 12/31/49 | 300,000 | 30,375 | |||||
UnitedHealth Group | |||||||
5.50% 11/15/12 | 778,000 | 744,424 | |||||
5.80% 3/15/36 | 482,000 | 366,744 | |||||
Unitrin 6.00% 5/15/17 | 485,000 | 407,929 | |||||
WellPoint | |||||||
5.00% 1/15/11 | 561,000 | 558,044 | |||||
5.00% 12/15/14 | 454,000 | 415,515 | |||||
·# | White Mountains | ||||||
Re Group 144A | |||||||
7.506% 5/29/49 | 423,000 | 279,795 | |||||
17,766,879 | |||||||
Natural Gas – 0.31% | |||||||
AmeriGas Partners | |||||||
7.125% 5/20/16 | 190,000 | 171,000 | |||||
CenterPoint Energy | |||||||
Resources | |||||||
6.00% 5/15/18 | 90,000 | 78,895 | |||||
Dynergy Holdings | |||||||
7.75% 6/1/19 | 1,013,000 | 815,465 | |||||
El Paso | |||||||
6.875% 6/15/14 | 119,000 | 110,345 | |||||
7.00% 6/15/17 | 140,000 | 125,771 | |||||
# | El Paso Performance- | ||||||
Linked Trust 144A | |||||||
7.75% 7/15/11 | 158,000 | 160,786 | |||||
Enterprise Products | |||||||
Operating | |||||||
6.50% 1/31/19 | 96,000 | 89,596 | |||||
·*8.375% 8/1/66 | 352,000 | 326,748 | |||||
Ferrellgas Finance Escrow | |||||||
6.75% 5/1/14 | 226,000 | 185,320 | |||||
Inergy Finance | |||||||
6.875% 12/15/14 | 132,000 | 116,160 | |||||
8.25% 3/1/16 | 171,000 | 158,175 |
(continues) 17
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Natural Gas (continued) | |||||||
Kinder Morgan | |||||||
Energy Partners | |||||||
6.95% 1/15/38 | USD | 320,000 | $ | 275,022 | |||
Regency Energy Partners | |||||||
8.375% 12/15/13 | 175,000 | 158,375 | |||||
2,771,658 | |||||||
Real Estate – 0.10% | |||||||
Host Hotels & Resorts | |||||||
7.125% 11/1/13 | 458,000 | 409,910 | |||||
Regency Centers | |||||||
5.875% 6/15/17 | 305,000 | 270,253 | |||||
·# | USB Realty 144A | ||||||
6.091% 12/22/49 | 500,000 | 230,160 | |||||
910,323 | |||||||
Technology – 0.33% | |||||||
Broadridge Financial | |||||||
Solutions | |||||||
6.125% 6/1/17 | 198,000 | 169,641 | |||||
Freescale Semiconductor | |||||||
·6.694% 12/15/14 | 225,000 | 151,875 | |||||
8.875% 12/15/14 | 460,000 | 319,700 | |||||
International Business | |||||||
Machines | |||||||
4.00% 11/11/11 | EUR | 400,000 | 546,439 | ||||
Sungard Data Systems | |||||||
10.25% 8/15/15 | USD | 1,231,000 | 1,074,048 | ||||
Xerox 5.50% 5/15/12 | 721,000 | 687,985 | |||||
2,949,688 | |||||||
Transportation – 0.23% | |||||||
Burlington North Santa Fe | |||||||
5.75% 3/15/18 | 283,000 | 271,933 | |||||
# | DP World 144A | ||||||
6.85% 7/2/37 | 340,000 | 252,370 | |||||
Hertz 8.875% 1/1/14 | 154,000 | 133,595 | |||||
Kansas City Southern | |||||||
de Mexico | |||||||
9.375% 5/1/12 | 295,000 | 302,375 | |||||
‡ | Northwest Airlines | ||||||
10.00% 2/1/09 | 65,000 | 569 | |||||
Red Arrow International | |||||||
Leasing | |||||||
8.375% 6/30/12 | RUB | 28,962,641 | 1,027,050 | ||||
Seabulk International | |||||||
9.50% 8/15/13 | USD | 90,000 | 94,050 | ||||
2,081,942 | |||||||
Total Corporate Bonds | |||||||
(cost $179,205,807) | 156,788,327 | ||||||
Foreign Agencies – 0.84%D | |||||||
France – 0.04% | |||||||
France Telecom | |||||||
7.75% 3/1/11 | 299,000 | 313,971 | |||||
313,971 | |||||||
Germany – 0.58% | |||||||
KFW | |||||||
3.50% 7/4/21 | EUR | 975,000 | 1,223,752 | ||||
4.125% 7/4/17 | EUR | 1,539,000 | 2,115,733 | ||||
6.50% 11/15/11 | NZD | 1,750,000 | 1,170,762 | ||||
8.00% 12/21/12 | NZD | 480,000 | 338,391 | ||||
Rentenbank | |||||||
1.375% 4/25/13 | JPY | 40,000,000 | 376,224 | ||||
5,224,862 | |||||||
Qatar – 0.09% | |||||||
# | Ras Laffan Liquefied | ||||||
Natural Gas III 144A | |||||||
5.832% 9/30/16 | USD | 400,000 | 387,712 | ||||
5.838% 9/30/27 | 500,000 | 432,239 | |||||
819,951 | |||||||
Republic of Korea – 0.09% | |||||||
Korea Development Bank | |||||||
5.30% 1/17/13 | 810,000 | 805,308 | |||||
805,308 | |||||||
United Arabic Emirates – 0.04% | |||||||
# | Taqa Abu Dhabi National | ||||||
Energy 144A | |||||||
7.25% 8/1/18 | 338,000 | 330,089 | |||||
330,089 | |||||||
Total Foreign Agencies | |||||||
(cost $7,521,214) | 7,494,181 | ||||||
Municipal Bonds – 1.97% | |||||||
Aruba Airport Authority | |||||||
Series 1997 A | |||||||
7.70% 1/1/13 (MBIA) | 147,000 | 156,093 | |||||
California State | |||||||
5.00% 2/1/33 | 60,000 | 64,838 | |||||
§5.00% 2/1/33-14 | 5,000 | 4,610 | |||||
California State University | |||||||
Systemwide Revenue | |||||||
Series A | |||||||
5.00% 11/1/30 | |||||||
(AMBAC) | 195,000 | 180,966 | |||||
Connecticut State Series A | |||||||
5.85% 3/15/32 | 1,565,000 | 1,616,942 | |||||
Escondido, California Joint | |||||||
Powers Financing | |||||||
Authority Series B | |||||||
5.53% 9/1/18 (FGIC) | 1,940,000 | 1,898,950 | |||||
Escondido, California | |||||||
Revenue (Wastewater | |||||||
Capital Projects) | |||||||
Certificates of | |||||||
Participation Series B | |||||||
5.75% 9/1/25 (MBIA) | 465,000 | 434,012 | |||||
Frisco, Texas Economic | |||||||
Development | |||||||
6.30% 2/15/30 (FSA) | 1,135,000 | 1,164,419 |
18
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Municipal Bonds (continued) | |||||||
La Quinta, California | |||||||
Redevelopment | |||||||
Agency Tax | |||||||
Allocation Project #1 | |||||||
5.45% 9/1/13 | |||||||
(AMBAC) | USD | 560,000 | $ | 573,563 | |||
6.24% 9/1/23 | |||||||
(AMBAC) | 640,000 | 635,059 | |||||
Los Angeles, California | |||||||
Community | |||||||
Redevelopment | |||||||
Agency Series D | |||||||
5.60% 7/1/18 | |||||||
(MBIA) | 80,000 | 76,942 | |||||
6.02% 9/1/21 | |||||||
(MBIA) | 950,000 | 940,709 | |||||
Massachusetts Bay | |||||||
Transportation | |||||||
Authority | |||||||
5.00% 7/1/19 | 315,000 | 324,494 | |||||
Massachusetts Health & | |||||||
Education Facilities | |||||||
Authority Revenue | |||||||
(Harvard) Series A | |||||||
5.00% 7/15/36 | 355,000 | 343,583 | |||||
New Jersey Economic | |||||||
Development | |||||||
Authority Revenue | |||||||
(Cigarette Tax) | |||||||
5.75% 6/15/29 | 100,000 | 87,810 | |||||
New York City Municipal | |||||||
Water Finance | |||||||
Authority | |||||||
Series 2008-A | |||||||
5.00% 6/15/38 | 2,215,000 | 2,050,581 | |||||
New York State Urban | |||||||
Development | |||||||
Income Series A-1 | |||||||
5.25% 3/15/34 | |||||||
(FGIC) | 125,000 | 121,829 | |||||
North Texas Tollway | |||||||
Authority | |||||||
Refunding Series A | |||||||
5.50% 1/1/18 | 250,000 | 257,095 | |||||
6.00% 1/1/19 | 125,000 | 130,764 | |||||
6.00% 1/1/20 | 630,000 | 648,396 | |||||
Oregon State | |||||||
Taxable Pension | |||||||
5.892% 6/1/27 | 65,000 | 66,810 | |||||
Portland, Oregon | |||||||
Sewer System | |||||||
Revenue Series A | |||||||
5.00% 6/15/18 | 795,000 | 831,220 | |||||
Sacramento County, | |||||||
California Public | |||||||
�� Finance Authority | |||||||
Revenue (Housing | |||||||
Tax County Project) | |||||||
Series B 5.18% | |||||||
12/1/13 (FGIC) | 105,000 | 104,181 | |||||
San Diego, California | |||||||
Redevelopment | |||||||
Agency Tax | |||||||
Allocation Series C | |||||||
5.81% 9/1/19 | |||||||
(XLCA) | 645,000 | 625,166 | |||||
South Texas Detention | |||||||
Complex Local | |||||||
Development | |||||||
Corporation Revenue | |||||||
4.92% 2/1/14 (MBIA) | 670,000 | 649,183 | |||||
Texas Transportation | |||||||
Community Mobility | |||||||
5.00% 4/1/19 | 990,000 | 1,019,443 | |||||
Triborough, New York | |||||||
Bridge & Tunnel | |||||||
Authority Series A | |||||||
5.00% 11/15/18 | 545,000 | 563,263 | |||||
5.00% 11/15/19 | 545,000 | 554,810 | |||||
University of Texas | |||||||
Financing Authority | |||||||
Refunding Series A | |||||||
5.25% 8/15/18 | 315,000 | 334,505 | |||||
West Virginia Economic | |||||||
Development | |||||||
Authority | |||||||
5.37% 7/1/20 (MBIA) | 590,000 | 558,724 | |||||
West Virginia Tobacco | |||||||
Settlement Finance | |||||||
Authority Series A | |||||||
7.467% 6/1/47 | 625,000 | 552,606 | |||||
Total Municipal Bonds | |||||||
(cost $18,194,075) | 17,571,566 | ||||||
Non-Agency Asset-Backed Securities – 3.26% | |||||||
· | Bank of America Credit | ||||||
Card Trust | |||||||
Series 2008-A5 A5 | |||||||
3.688% 12/16/13 | 1,245,000 | 1,222,914 | |||||
Series 2008-A7 A7 | |||||||
3.188% 12/15/14 | 390,000 | 358,571 | |||||
# | Cabela’s Master | ||||||
Credit Card Trust | |||||||
Series 2008-1A | |||||||
A1 144A | |||||||
4.31% 12/16/13 | 715,000 | 691,202 |
(continues) 19
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Asset-Backed Securities (continued) | |||||||
Capital Auto Receivables | |||||||
Asset Trust | |||||||
Series 2007-3 A3A | |||||||
5.02% 9/15/11 | USD | 790,000 | $ | 780,221 | |||
Series 2008-1 A3A | |||||||
3.86% 8/15/12 | 930,000 | 906,988 | |||||
Capital One Multi-Asset | |||||||
Execution Trust | |||||||
Series 2007-A7 A7 | |||||||
5.75% 7/15/20 | 550,000 | 482,801 | |||||
Caterpillar Financial | |||||||
Asset Trust | |||||||
Series 2007-A A3A | |||||||
5.34% 6/25/12 | 200,000 | 199,043 | |||||
Series 2008-A A3 | |||||||
4.94% 4/25/14 | 800,000 | 776,421 | |||||
Centex Home Equity | |||||||
Series 2002-A AF6 | |||||||
5.54% 1/25/32 | 40,685 | 36,801 | |||||
Chase Issuance Trust | |||||||
·Series 2005-A8 A8 | |||||||
2.528% 10/15/12 | 1,200,000 | 1,165,801 | |||||
Series 2008-A9 A9 | |||||||
4.26% 5/15/13 | 605,000 | 589,494 | |||||
Chase Manhattan | |||||||
Auto Owner Trust | |||||||
Series 2006-B A4 | |||||||
5.11% 4/15/14 | 2,400,000 | 2,385,743 | |||||
· | Citibank Credit Card | ||||||
Issuance Trust | |||||||
Series 2007-A6 A6 | |||||||
2.778% 7/12/12 | 8,000,000 | 7,779,300 | |||||
Citicorp Residential | |||||||
Mortgage Securities | |||||||
Series 2006-3 A4 | |||||||
5.703% 11/25/36 | 900,000 | 736,457 | |||||
Series 2006-3 A5 | |||||||
5.948% 11/25/36 | 900,000 | 632,507 | |||||
CNH Equipment Trust | |||||||
Series 2007-B A3A | |||||||
5.40% 10/17/11 | 300,000 | 298,859 | |||||
·Series 2007-C A2 | |||||||
3.338% 9/15/10 | 295,360 | 295,346 | |||||
Series 2008-A A3 | |||||||
4.12% 5/15/12 | 240,000 | 230,782 | |||||
Series 2008-A A4A | |||||||
4.93% 8/15/14 | 390,000 | 366,001 | |||||
Series 2008-B A3A | |||||||
4.78% 7/16/12 | 425,000 | 415,766 | |||||
· | Countrywide Asset- | ||||||
Backed Certificates | |||||||
Series 2006-11 1AF3 | |||||||
6.05% 9/25/46 | 295,000 | 212,444 | |||||
Series 2006-11 1AF6 | |||||||
6.15% 9/25/46 | 1,450,000 | 771,833 | |||||
Series 2006-15 A6 | |||||||
5.826% 10/25/46 | 525,000 | 381,964 | |||||
@# | Countrywide Asset-Backed | ||||||
NIM Certificates | |||||||
Series 2004-BC1 | |||||||
Note 144A | |||||||
5.50% 4/25/35 | 26 | 0 | |||||
Daimler Chrysler | |||||||
Auto Trust | |||||||
Series 2008-B A3A | |||||||
4.71% 9/10/12 | 550,000 | 538,546 | |||||
Discover Card Master Trust | |||||||
Series 2007-A1 A1 | |||||||
5.65% 3/16/20 | 450,000 | 390,034 | |||||
Series 2008-A4 A4 | |||||||
5.65% 12/15/15 | 620,000 | 590,589 | |||||
# | Dunkin Securitization | ||||||
Series 2006-1 | |||||||
A2 144A | |||||||
5.779% 6/20/31 | 665,000 | 570,231 | |||||
Ford Credit Auto | |||||||
Owner Trust | |||||||
Series 2007-B A3A | |||||||
5.15% 11/15/11 | 440,000 | 432,509 | |||||
·@∏ | GMAC Mortgage | ||||||
Loan Trust | |||||||
Series 2006-HE3 A2 | |||||||
5.75% 10/25/36 | 180,000 | 139,891 | |||||
·# | Golden Credit Card Trust | ||||||
Series 2008-3 A 144A | |||||||
3.488% 7/15/17 | 550,000 | 525,316 | |||||
# | Harley-Davidson | ||||||
Motorcycle Trust | |||||||
Series 2006-1 A2 144A | |||||||
5.04% 10/15/12 | 301,781 | 302,222 | |||||
· | HSI Asset Securization Trust | ||||||
Series 2006-HE1 2A1 | |||||||
3.257% 10/25/36 | 780,980 | 718,834 | |||||
Hyundai Auto | |||||||
Receivables Trust | |||||||
Series 2007-A A3A | |||||||
5.04% 1/17/12 | 200,000 | 199,924 | |||||
Series 2008-A A3 | |||||||
4.93% 12/17/12 | 430,000 | 425,012 | |||||
John Deere Owner Trust | |||||||
Series 2008-A A3 | |||||||
4.18% 6/15/12 | 485,000 | 474,885 | |||||
·@# | MASTR Specialized Loan Trust | ||||||
Series 2005-2 A2 144A | |||||||
5.006% 7/25/35 | 203,474 | 180,074 | |||||
· | MBNA Credit Card | ||||||
Master Note Trust | |||||||
Series 2005-A4 | |||||||
2.528% 11/15/12 | 375,000 | 365,319 |
20
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Asset-Backed Securities (continued) | |||||||
Mid-State Trust | |||||||
Series 2004-1 A | |||||||
6.005% 8/15/37 | USD | 41,354 | $ | 37,793 | |||
Series 2005-1 A | |||||||
5.745% 1/15/40 | 211,047 | 185,259 | |||||
#Series 2006-1 A 144A | |||||||
5.787% 10/15/40 | 135,035 | 128,923 | |||||
RSB Bondco | |||||||
Series 2007-A A2 | |||||||
5.72% 4/1/18 | 405,000 | 391,808 | |||||
# | Securitized Asset-Backed | ||||||
NIM Trust | |||||||
Series 2005-FR4 | |||||||
144A 6.00% 1/25/36 | 330,313 | 33 | |||||
·# | Sovereign Dealer Floor | ||||||
Plan Master | |||||||
Series 2006-1 A 144A | |||||||
2.538% 8/15/11 | 250,000 | 242,500 | |||||
@∏ | Structured Asset Securities | ||||||
Series 2001-SB1 A2 | |||||||
3.375% 8/25/31 | 101,277 | 81,828 | |||||
· | Vanderbilt Mortgage | ||||||
Finance Series 2001-A | |||||||
A4 7.235% 6/7/28 | 123,296 | 121,690 | |||||
WFS Financial Owner | |||||||
Trust Series 2005-1 D | |||||||
4.09% 8/17/12 | 21,718 | 21,672 | |||||
World Omni Auto | |||||||
Receivables Trust | |||||||
Series 2008-A A3A | |||||||
3.94% 10/15/12 | 400,000 | 390,997 | |||||
Total Non-Agency | |||||||
Asset-Backed Securities | |||||||
(cost $31,505,882) | 29,173,148 | ||||||
Non-Agency Collateralized Mortgage Obligations – 20.52% | |||||||
· | ARM Trust | ||||||
Series 2005-10 3A11 | |||||||
5.415% 1/25/36 | 654,781 | 553,712 | |||||
Series 2005-10 3A31 | |||||||
5.415% 1/25/36 | 1,145,000 | 843,058 | |||||
Series 2006-2 1A4 | |||||||
5.752% 5/25/36 | 1,440,000 | 1,083,732 | |||||
#Series 2007-3 | |||||||
2A1 144A | |||||||
6.881% 11/25/37 | 7,409,425 | 5,497,350 | |||||
Bank of America | |||||||
Alternative Loan Trust | |||||||
Series 2003-2 B1 | |||||||
5.75% 4/25/33 | 8,659,372 | 7,755,685 | |||||
Series 2003-10 2A1 | |||||||
6.00% 12/25/33 | 16,363 | 13,285 | |||||
Series 2004-2 1A1 | |||||||
6.00% 3/25/34 | 55,244 | 44,852 | |||||
Bank of America | |||||||
Alternative Loan | |||||||
Trust | |||||||
Series 2004-10 1CB1 | |||||||
6.00% 11/25/34 | 203,859 | 175,701 | |||||
Series 2004-11 1CB1 | |||||||
6.00% 12/25/34 | 1,825 | 1,573 | |||||
Series 2005-3 2A1 | |||||||
5.50% 4/25/20 | 126,672 | 114,994 | |||||
Series 2005-5 2CB1 | |||||||
6.00% 6/25/35 | 302,069 | 245,243 | |||||
Series 2005-6 7A1 | |||||||
5.50% 7/25/20 | 425,592 | 386,358 | |||||
Series 2005-9 5A1 | |||||||
5.50% 10/25/20 | 359,163 | 326,053 | |||||
Bank of America | |||||||
Funding Securities | |||||||
Series 2005-8 1A1 | |||||||
5.50% 1/25/36 | 1,018,966 | 914,204 | |||||
Series 2006-5 2A10 | |||||||
5.75% 9/25/36 | 1,150,000 | 1,092,177 | |||||
· | Bear Stearns ARM Trust | ||||||
Series 2007-3 1A1 | |||||||
5.474% 5/25/47 | 1,312,749 | 1,103,482 | |||||
Series 2007-4 22A1 | |||||||
5.998% 6/25/47 | 2,928,259 | 2,188,545 | |||||
Series 2007-5 3A1 | |||||||
5.981% 8/25/47 | 2,850,640 | 2,347,111 | |||||
Bear Stearns Asset- | |||||||
Backed Securities | |||||||
Series 2005-AC8 A5 | |||||||
5.50% 11/25/35 | 409,267 | 334,857 | |||||
Chase Mortgage Finance | |||||||
Series 2003-S8 A2 | |||||||
5.00% 9/25/18 | 342,405 | 322,824 | |||||
·Series 2005-A1 3A1 | |||||||
5.285% 12/25/35 | 760,935 | 671,636 | |||||
Citicorp Mortgage | |||||||
Securities | |||||||
Series 2004-1 1A1 | |||||||
5.25% 1/25/34 | 1,216,314 | 1,203,967 | |||||
Series 2004-8 1A1 | |||||||
5.50% 10/25/34 | 608,086 | 586,779 | |||||
Citigroup Mortgage | |||||||
Loan Trust | |||||||
Series 2004-NCM2 | |||||||
1CB2 6.75% 8/25/34 | 198,061 | 183,268 | |||||
·Series 2004-UST1 A6 | |||||||
5.082% 8/25/34 | 1,018,786 | 902,413 | |||||
·Series 2006-AR7 1A4A | |||||||
5.777% 11/25/36 | 2,947,358 | 2,416,077 |
(continues) 21
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Collateralized Mortgage Obligations (continued) | |||||||
Countrywide Alternative | |||||||
Loan Trust | |||||||
Series 2003-21T1 A2 | |||||||
5.25% 12/25/33 | USD | 662,783 | $ | 600,977 | |||
Series 2004-1T1 A2 | |||||||
5.50% 2/25/34 | 607,284 | 567,626 | |||||
Series 2004-14T2 A6 | |||||||
5.50% 8/25/34 | 600,354 | 571,377 | |||||
Series 2004-J1 1A1 | |||||||
6.00% 2/25/34 | 17,142 | 14,775 | |||||
Series 2004-J2 7A1 | |||||||
6.00% 12/25/33 | 36,578 | 29,697 | |||||
·Series 2004-J7 1A2 | |||||||
4.673% 8/25/34 | 8,155 | 8,006 | |||||
·@∏Series 2005-63 3A1 | |||||||
5.891% 11/25/35 | 472,316 | 338,608 | |||||
Series 2006-2CB A3 | |||||||
5.50% 3/25/36 | 347,952 | 317,245 | |||||
Series 2007-5CB 1A2 | |||||||
6.00% 4/25/37 | 10,000,000 | 6,300,000 | |||||
Series 2007-9T1 2A2 | |||||||
6.00% 5/25/37 | 9,318,139 | 7,139,813 | |||||
·Series 2007-AL1 A1 | |||||||
3.457% 6/25/37 | 10,523,275 | 6,751,598 | |||||
w | Countrywide Home | ||||||
Loan Mortgage | |||||||
Pass Through Trust | |||||||
·Series 2003-21 A1 | |||||||
4.813% 5/25/33 | 8,249 | 8,050 | |||||
·@∏Series 2004-HYB4 M | |||||||
4.586% 9/20/34 | 216,670 | 181,970 | |||||
Series 2005-29 A1 | |||||||
5.75% 12/25/35 | 1,610,657 | 1,423,548 | |||||
·Series 2005-HYB8 4A1 | |||||||
5.573% 12/20/35 | 15,475 | 10,761 | |||||
Series 2006-1 A2 | |||||||
6.00% 3/25/36 | 359,858 | 310,152 | |||||
Series 2006-1 A3 | |||||||
6.00% 3/25/36 | 123,588 | 100,338 | |||||
Series 2006-17 A5 | |||||||
6.00% 12/25/36 | 296,125 | 285,247 | |||||
·Series 2006-HYB1 3A1 | |||||||
5.267% 3/20/36 | 479,685 | 321,001 | |||||
·@∏Series 2006-HYB3 3A1A | |||||||
6.064% 5/20/36 | 477,758 | 410,265 | |||||
·@∏Series 2006-HYB4 1A2 | |||||||
5.618% 6/20/36 | 13,621 | 6,323 | |||||
Series 2007-4 1A1 | |||||||
6.00% 5/25/37 | 6,207,471 | 4,853,466 | |||||
·Series 2007-HY1 1A1 | |||||||
5.696% 4/25/37 | 1,852,935 | 1,423,434 | |||||
Credit Suisse First Boston | |||||||
Mortgage Securities | |||||||
Series 2003-29 5A1 | |||||||
7.00% 12/25/33 | 9,797 | 7,994 | |||||
Series 2004-1 3A1 | |||||||
7.00% 2/25/34 | 4,959 | 4,443 | |||||
Credit Suisse Mortgage | |||||||
Capital Certificates | |||||||
#Series 2005-1R 2A5 | |||||||
144A 5.75% 12/26/35 | 7,233,526 | 5,208,139 | |||||
Series 2006-9 3A1 | |||||||
6.00% 11/25/36 | 43,634 | 37,607 | |||||
Series 2007-1 5A14 | |||||||
6.00% 2/25/37 | 1,605,470 | 1,512,327 | |||||
·Series 2007-3 4A6 | |||||||
3.457% 4/25/37 | 5,456,289 | 3,993,500 | |||||
·Series 2007-3 4A12 | |||||||
3.543% 4/25/37 | 5,456,289 | 405,757 | |||||
Series 2007-3 4A15 | |||||||
5.50% 4/25/37 | 1,571,388 | 1,415,626 | |||||
Series 2007-5 1A11 | |||||||
7.00% 8/25/37 | 7,194,724 | 4,388,782 | |||||
Series 2007-5 3A19 | |||||||
6.00% 8/25/37 | 1,904,623 | 1,546,316 | |||||
Series 2007-5 10A2 | |||||||
6.00% 4/25/29 | 943,715 | 813,364 | |||||
·# | Deutsche Mortgage | ||||||
Securities Series | |||||||
2005-WF1 1A3 144A | |||||||
5.094% 6/26/35 | 1,720,000 | 1,468,480 | |||||
· | First Horizon | ||||||
Asset Securities | |||||||
Series 2004-AR5 4A1 | |||||||
5.70% 10/25/34 | 60,670 | 51,860 | |||||
Series 2005-AR2 2A1 | |||||||
5.114% 6/25/35 | 732,504 | 677,901 | |||||
Series 2007-AR1 1A1 | |||||||
5.835% 5/25/37 | 1,914,907 | 1,657,765 | |||||
Series 2007-AR3 2A2 | |||||||
6.292% 11/25/37 | 1,458,806 | 1,221,347 | |||||
GMAC Mortgage | |||||||
Loan Trust | |||||||
·Series 2005-AR2 4A | |||||||
5.178% 5/25/35 | 535,148 | 447,267 | |||||
Series 2006-J1 A1 | |||||||
5.75% 4/25/36 | 1,707,686 | 1,609,764 | |||||
·# | GSMPS Mortgage Loan | ||||||
Trust 144A | |||||||
Series 1998-3 A | |||||||
7.75% 9/19/27 | 23,640 | 23,179 | |||||
Series 1999-3 A | |||||||
8.00% 8/19/29 | 35,976 | 38,936 |
22
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Collateralized Mortgage Obligations (continued) | |||||||
# | GSMPS Mortgage Loan | ||||||
Trust 144A (continued) | |||||||
Series 2005-RP1 1A3 | |||||||
8.00% 1/25/35 | USD | 332,899 | $ | 332,878 | |||
Series 2005-RP1 1A4 | |||||||
8.50% 1/25/35 | 145,818 | 148,100 | |||||
Series 2006-RP1 1A2 | |||||||
7.50% 1/25/36 | 368,154 | 365,226 | |||||
GSR Mortgage | |||||||
Loan Trust | |||||||
Series 2006-1F 5A2 | |||||||
6.00% 2/25/36 | 181,162 | 138,023 | |||||
·Series 2006-AR1 3A1 | |||||||
5.371% 1/25/36 | 343,099 | 290,695 | |||||
·Series 2007-AR1 2A1 | |||||||
5.998% 3/25/47 | 3,484,375 | 2,799,412 | |||||
·Series 2007-AR2 1A1 | |||||||
5.779% 5/25/47 | 1,091,441 | 810,775 | |||||
·Series 2007-AR2 2A1 | |||||||
5.511% 5/25/47 | 1,033,963 | 837,163 | |||||
· | Indymac Index Mortgage | ||||||
Loan Trust | |||||||
Series 2006-AR1 A1 | |||||||
5.929% 8/25/36 | 1,065,168 | 872,585 | |||||
Series 2006-AR3 1A1 | |||||||
5.334% 12/25/36 | 2,132,773 | 1,662,363 | |||||
Series 2007-AR1 1A2 | |||||||
5.714% 3/25/37 | 2,222,168 | 1,960,891 | |||||
· | JPMorgan Mortgage Trust | ||||||
Series 2005-A1 4A1 | |||||||
4.776% 2/25/35 | 128,223 | 111,986 | |||||
Series 2005-A4 1A1 | |||||||
5.397% 7/25/35 | 351,447 | 305,321 | |||||
Series 2005-A6 1A2 | |||||||
5.14% 9/25/35 | 720,000 | 588,400 | |||||
Series 2006-A2 2A4 | |||||||
5.755% 4/25/36 | 2,025,000 | 1,453,551 | |||||
Series 2006-A6 2A4L | |||||||
5.562% 10/25/36 | 1,590,000 | 1,176,578 | |||||
Series 2006-A7 2A2 | |||||||
5.802% 1/25/37 | 1,151,349 | 1,042,869 | |||||
Series 2007-A1 6A1 | |||||||
4.776% 7/25/35 | 2,485,455 | 2,189,364 | |||||
Lehman Mortgage Trust | |||||||
Series 2005-2 2A3 | |||||||
5.50% 12/25/35 | 343,023 | 316,412 | |||||
Series 2006-1 3A3 | |||||||
5.50% 2/25/36 | 29,044 | 26,671 | |||||
Series 2007-10 2A2 | |||||||
6.50% 1/25/38 | 7,915,974 | 6,770,635 | |||||
MASTR Alternative | |||||||
Loans Trust | |||||||
Series 2003-6 3A1 | |||||||
8.00% 9/25/33 | 13,171 | 13,699 | |||||
Series 2003-9 1A1 | |||||||
5.50% 12/25/18 | 13,502 | 12,663 | |||||
Series 2004-3 8A1 | |||||||
7.00% 4/25/34 | 11,365 | 10,182 | |||||
Series 2004-5 6A1 | |||||||
7.00% 6/25/34 | 149,964 | 134,358 | |||||
· | MASTR ARM Trust | ||||||
Series 2003-6 1A2 | |||||||
6.492% 12/25/33 | 6,592 | 6,618 | |||||
Series 2005-6 7A1 | |||||||
5.335% 6/25/35 | 218,794 | 185,663 | |||||
Series 2006-2 4A1 | |||||||
4.981% 2/25/36 | 81,735 | 67,726 | |||||
MASTR Asset | |||||||
Securitization Trust | |||||||
Series 2003-9 2A7 | |||||||
5.50% 10/25/33 | 497,331 | 456,146 | |||||
Series 2004-4 2A1 | |||||||
5.00% 4/25/34 | 819,799 | 812,343 | |||||
# | MASTR Reperforming | ||||||
Loan Trust 144A | |||||||
Series 2005-1 1A5 | |||||||
8.00% 8/25/34 | 143,056 | 146,357 | |||||
Series 2005-2 1A4 | |||||||
8.00% 5/25/35 | 449,573 | 462,328 | |||||
· | Merrill Lynch | ||||||
Mortgage Investors | |||||||
Series 2005-A5 A2 | |||||||
4.566% 6/25/35 | 460,000 | 414,694 | |||||
Series 2005-A9 2A1C | |||||||
5.141% 12/25/35 | 2,435,000 | 2,127,521 | |||||
Morgan Stanley | |||||||
Mortgage Loan | |||||||
Trust Series 2006-2 | |||||||
6A 6.50% 2/25/36 | 209,106 | 141,212 | |||||
Prime Mortgage Trust | |||||||
Series 2004-CL1 1A1 | |||||||
6.00% 2/25/34 | 36,370 | 33,165 | |||||
Residential Accredit Loans | |||||||
Series 2004-QS2 CB | |||||||
5.75% 2/25/34 | 113,501 | 98,080 | |||||
Series 2006-QS18 3A1 | |||||||
5.75% 12/25/21 | 1,986,058 | 1,668,574 | |||||
Residential Asset | |||||||
Mortgage Products | |||||||
Series 2004-SL1 A3 | |||||||
7.00% 11/25/31 | 4,308 | 4,419 | |||||
Series 2004-SL4 A3 | |||||||
6.50% 7/25/32 | 74,541 | 65,246 | |||||
Series 2005-SL1 A2 | |||||||
6.00% 5/25/32 | 144,739 | 140,171 |
(continues) 23
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Collateralized Mortgage Obligations (continued) | |||||||
Residential Asset | |||||||
Securitization Trust | |||||||
Series 2006-A2 A11 | |||||||
6.00% 1/25/46 | USD | 8,000,000 | $ | 4,640,000 | |||
Residential Funding | |||||||
Mortgage Securities I | |||||||
Series 2004-S9 2A1 | |||||||
4.75% 12/25/19 | 2,172,173 | 2,047,953 | |||||
·Series 2006-SA3 3A1 | |||||||
6.035% 9/25/36 | 527,801 | 440,684 | |||||
·Series 2007-SA1 2A2 | |||||||
5.622% 2/25/37 | 1,975,330 | 1,528,386 | |||||
· | Sequoia Mortgage Trust | ||||||
Series 2007-1 4A1 | |||||||
5.787% 9/20/46 | 3,164,156 | 2,684,873 | |||||
· | Structured Adjustable | ||||||
Rate Mortgage | |||||||
Loan Trust | |||||||
Series 2004-18 5A | |||||||
5.50% 12/25/34 | 163,298 | 136,286 | |||||
Series 2005-21 6A3 | |||||||
5.40% 11/25/35 | 1,065,000 | 786,002 | |||||
Series 2005-22 1A4 | |||||||
5.25% 12/25/35 | 2,120,000 | 1,405,005 | |||||
Series 2006-1 7A4 | |||||||
5.62% 2/25/36 | 1,305,000 | 776,953 | |||||
@∏Series 2006-5 5A4 | |||||||
5.519% 6/25/36 | 20,940 | 12,067 | |||||
Structured Asset Securities | |||||||
·Series 2002-22H 1A | |||||||
6.936% 11/25/32 | 13,297 | 11,760 | |||||
Series 2004-12H 1A | |||||||
6.00% 5/25/34 | 119,792 | 108,038 | |||||
Series 2005-6 4A1 | |||||||
5.00% 5/25/35 | 525,448 | 459,439 | |||||
w | Washington Mutual | ||||||
Alternative Mortgage | |||||||
Pass Through | |||||||
Certificates | |||||||
@∏Series 2005-1 5A2 | |||||||
6.00% 3/25/35 | 103,538 | 89,237 | |||||
Series 2005-9 3CB | |||||||
5.50% 10/25/20 | 435,531 | 386,670 | |||||
Series 2006-5 2CB3 | |||||||
6.00% 7/25/36 | 442,207 | 412,953 | |||||
w | Washington Mutual | ||||||
Mortgage Pass | |||||||
Through Certificates | |||||||
Series 2004-CB3 1A | |||||||
6.00% 10/25/34 | 194,113 | 177,007 | |||||
Series 2004-CB3 4A | |||||||
6.00% 10/25/19 | 89,559 | 84,046 | |||||
·Series 2005-AR16 1A3 | |||||||
5.101% 12/25/35 | 1,225,000 | 1,027,232 | |||||
·w | Washington Mutual | ||||||
Mortgage Pass | |||||||
Through Certificates | |||||||
Series 2005-AR18 1A3A | |||||||
5.255% 1/25/36 | 2,200,000 | 1,932,107 | |||||
Series 2006-AR14 1A4 | |||||||
5.647% 11/25/36 | 250,571 | 193,359 | |||||
Series 2006-AR16 1A1 | |||||||
5.609% 12/25/36 | 1,698,141 | 1,212,119 | |||||
Series 2006-AR18 2A2 | |||||||
5.493% 1/25/37 | 1,670,000 | 1,149,921 | |||||
Series 2007-HY1 1A1 | |||||||
5.5.711% 2/25/37 | 1,214,037 | 893,704 | |||||
Series 2007-HY1 3A3 | |||||||
5.5.882% 2/25/37 | 850,000 | 596,442 | |||||
Series 2007-HY2 1A1 | |||||||
5.613% 12/25/36 | 3,783,822 | 2,962,559 | |||||
Series 2007-HY2 3A1 | |||||||
5.923% 9/25/36 | 20,786 | 16,725 | |||||
Series 2007-HY3 4A1 | |||||||
5.348% 3/25/37 | 3,854,591 | 3,231,030 | |||||
Series 2007-HY4 1A1 | |||||||
5.542% 4/25/37 | 3,001,901 | 2,228,719 | |||||
Series 2007-HY6 2A2 | |||||||
5.285% 6/25/37 | 960,541 | 802,858 | |||||
Series 2007-HY7 4A1 | |||||||
5.867% 7/25/37 | 2,768,025 | 2,297,263 | |||||
Wells Fargo | |||||||
Mortgage-Backed | |||||||
Securities Trust | |||||||
·Series 2004-E A2 | |||||||
4.50% 5/25/34 | 14,750 | 13,176 | |||||
·Series 2004-O A1 | |||||||
4.891% 8/25/34 | 1,975,631 | 1,736,198 | |||||
·Series 2004-T A1 | |||||||
5.172% 9/25/34 | 83,704 | 73,295 | |||||
Series 2005-12 1A7 | |||||||
5.50% 11/25/35 | 599,944 | 526,263 | |||||
Series 2005-17 1A2 | |||||||
5.50% 1/25/36 | 477,393 | 418,764 | |||||
Series 2005-18 1A1 | |||||||
5.50% 1/25/36 | 87,255 | 78,284 | |||||
·Series 2005-AR13 A1 | |||||||
5.31% 5/25/35 | 1,689,000 | 1,467,785 | |||||
·Series 2005-AR16 4A2 | |||||||
4.992% 10/25/35 | 2,140,000 | 1,953,233 | |||||
·Series 2005-AR16 6A4 | |||||||
5.001% 10/25/35 | 1,107,775 | 859,260 | |||||
Series 2006-1 A3 | |||||||
5.00% 3/25/21 | 598,553 | 552,353 | |||||
Series 2006-2 3A1 | |||||||
5.75% 3/25/36 | 497,724 | 421,666 | |||||
Series 2006-3 A1 | |||||||
5.50% 3/25/36 | 998,648 | 935,331 | |||||
Series 2006-3 A11 | |||||||
5.50% 3/25/36 | 1,178,000 | 923,577 |
24
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Collateralized Mortgage Obligations (continued) | |||||||
Wells Fargo | |||||||
Mortgage-Backed | |||||||
Securities Trust | |||||||
Series 2006-4 1A8 | |||||||
5.75% 4/25/36 | USD | 37,873 | $ | 37,139 | |||
Series 2006-4 2A3 | |||||||
5.75% 4/25/36 | 199,794 | 129,928 | |||||
Series 2006-6 1A3 | |||||||
5.75% 5/25/36 | 1,184,730 | 1,101,808 | |||||
·Series 2006-AR5 2A1 | |||||||
5.539% 4/25/36 | 257,935 | 205,783 | |||||
·Series 2006-AR6 7A1 | |||||||
5.112% 3/25/36 | 2,419,764 | 2,005,473 | |||||
·Series 2006-AR10 5A1 | |||||||
5.594% 7/25/36 | 87,404 | 70,104 | |||||
·Series 2006-AR10 5A6 | |||||||
5.594% 7/25/36 | 2,282,295 | 1,839,633 | |||||
·Series 2006-AR11 A6 | |||||||
5.511% 8/25/36 | 2,330,000 | 1,726,099 | |||||
·Series 2006-AR11 A7 | |||||||
5.511% 8/25/36 | 97,382 | 60,491 | |||||
·Series 2006-AR12 1A2 | |||||||
6.03% 9/25/36 | 74,495 | 62,974 | |||||
·Series 2006-AR14 2A4 | |||||||
6.084% 10/25/36 | 346,777 | 251,075 | |||||
·Series 2006-AR17 A1 | |||||||
5.331% 10/25/36 | 2,632,703 | 2,101,553 | |||||
·Series 2006-AR19 A1 | |||||||
5.63% 12/25/36 | 1,029,403 | 864,289 | |||||
Series 2007-8 2A6 | |||||||
6.00% 7/25/37 | 190,000 | 167,815 | |||||
Series 2007-10 1A18 | |||||||
6.00% 7/25/37 | 9,699,024 | 5,707,300 | |||||
Series 2007-13 A7 | |||||||
6.00% 9/25/37 | 646,235 | 550,511 | |||||
Series 2007-13 A9 | |||||||
6.00% 9/25/37 | 1,008,309 | 768,206 | |||||
Total Non-Agency Collateralized | |||||||
Mortgage Obligations | |||||||
(cost $205,782,304) | 183,355,393 | ||||||
Regional Agencies – 0.30%D | |||||||
Australia – 0.30% | |||||||
New South Wales | |||||||
Treasury | |||||||
6.00% 5/1/12 | AUD | 1,294,000 | 1,026,215 | ||||
Queensland Treasury | |||||||
6.00% 8/14/13 | AUD | 2,125,000 | 1,691,797 | ||||
Total Regional Agencies | |||||||
(cost $2,911,240) | 2,718,012 | ||||||
Regional Authority – 0.05%D | |||||||
Canada – 0.05% | |||||||
Quebec Province | |||||||
4.50% 12/1/18 | CAD | 521,000 | 477,937 | ||||
Total Regional Authority | |||||||
(cost $518,148) | 477,937 | ||||||
«Senior Secured Loans – 1.36% | |||||||
Advanced Medical Term | |||||||
Tranche Loan B | |||||||
4.424% 4/2/14 | USD | 184,533 | 161,005 | ||||
Allied Barton | |||||||
7.75% 12/30/15 | 190,400 | 184,688 | |||||
Allied Waste | |||||||
North America | |||||||
4.301% 3/28/14 | 108,388 | 105,317 | |||||
4.324% 3/28/14 | 151,670 | 147,334 | |||||
Alltel Communications | |||||||
Term Tranche Loan B | |||||||
5.564% 5/15/15 | 429,296 | 416,149 | |||||
Anchor Glass | |||||||
7.75% 6/20/14 | 137,143 | 133,371 | |||||
Aramark 4.676% 1/26/14 | 22,699 | 19,902 | |||||
Aramark Term | |||||||
Tranche Loan B | |||||||
4.676% 1/26/14 | 357,301 | 313,263 | |||||
Bausch & Lomb | |||||||
Term Tranche Loan B | |||||||
6.051% 4/11/15 | 211,095 | 197,662 | |||||
Term Tranche Loan DD | |||||||
6.051% 4/11/15 | 53,173 | 49,789 | |||||
BE Aerospace | |||||||
5.79% 7/28/14 | 144,638 | 141,022 | |||||
Charter Communications | |||||||
Operations | |||||||
4.899% 3/6/14 | 278,596 | 222,916 | |||||
Community Health | |||||||
Systems | |||||||
Term Tranche Loan B | |||||||
4.899% 7/2/14 | 361,511 | 319,373 | |||||
Term Tranche Loan DD | |||||||
4.899% 8/25/14 | 18,489 | 16,334 | |||||
Cricket Communications | |||||||
6.50% 6/16/13 | 179,084 | 171,922 | |||||
Crown Castle Term | |||||||
Tranche Loan B | |||||||
4.301% 3/6/14 | 298,737 | 264,382 | |||||
CSC Holdings | |||||||
4.225% 3/30/13 | 198,469 | 176,241 | |||||
DR Pepper Snapple Group | |||||||
4.801% 4/10/13 | 160,193 | 156,188 | |||||
Energy Futures Holdings | |||||||
6.235% 10/10/14 | 334,296 | 282,481 |
(continues) 25
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
«Senior Secured Loans (continued) | ||||||||
Ford Motor Term | ||||||||
Tranche Loan B | ||||||||
5.776% 11/29/13 | USD | 1,238,081 | $ | 826,419 | ||||
Freescale Semiconductor | ||||||||
4.221% 12/1/13 | 144,024 | 118,281 | ||||||
General Motors Term | ||||||||
Tranche Loan B | ||||||||
5.163% 11/17/13 | 685,000 | 445,538 | ||||||
Georgia Pacific Term | ||||||||
Tranche Loan B | ||||||||
4.449% 12/20/12 | 268,583 | 235,777 | ||||||
Goodyear Tire & | ||||||||
Rubber 2nd Lien | ||||||||
4.54% 4/30/14 | 100,000 | 85,100 | ||||||
Graham Packaging | ||||||||
International Term | ||||||||
Tranche Loan B | ||||||||
4.986% 10/7/11 | 278,586 | 251,174 | ||||||
Graphic Packaging | ||||||||
International Term | ||||||||
Tranche Loan C | ||||||||
5.861% 5/16/14 | 218,900 | 197,420 | ||||||
Hawker Beechcraft | ||||||||
2.701% 3/26/14 | 5,507 | 4,846 | ||||||
Hawker Beechcraft Term | ||||||||
Tranche Loan B | ||||||||
4.801% 3/26/14 | 94,016 | 82,055 | ||||||
HCA 5.051% 11/18/13 | 379,038 | 337,482 | ||||||
HealthSouth Term | ||||||||
Tranche Loan B | ||||||||
4.948% 3/10/13 | 599,014 | 547,765 | ||||||
Hexion Specialty | ||||||||
7.42% 5/5/13 | 159,592 | 122,531 | ||||||
Idearc Term Tranche Loan B | ||||||||
4.787% 11/1/14 | 295,500 | 177,055 | ||||||
Invitrogen Term | ||||||||
Tranche Loan B | ||||||||
5.818% 6/11/15 | 200,000 | 195,751 | ||||||
Lear Term Tranche Loan B | ||||||||
5.446% 4/25/12 | 99,697 | 78,200 | ||||||
Lender Processing Term | ||||||||
Tranche Loan B | ||||||||
4.963% 6/18/14 | 214,463 | 211,782 | ||||||
Lyondell Chemical Term | ||||||||
Tranche Loan U2 | ||||||||
7.00% 12/30/15 | 159,600 | 113,316 | ||||||
MacDermid | ||||||||
4.696% 4/12/14 | 144,550 | 131,540 | ||||||
MetroPCS Wireless Term | ||||||||
Tranche Loan B | ||||||||
5.078% 2/20/14 | 278,204 | 250,035 | ||||||
Momentive Performance | ||||||||
Materials Term | ||||||||
Tranche Loan B | ||||||||
5.051% 12/4/13 | 145,000 | 127,328 | ||||||
Newpage Term | ||||||||
Tranche Loan B | ||||||||
6.313% 12/21/14 | 278,596 | 256,118 | ||||||
Northwest Airlines | ||||||||
4.477% 8/21/13 | 105,000 | 92,663 | ||||||
NRG Energy | ||||||||
4.809% 2/1/13 | 93,626 | 81,864 | ||||||
NRG Energy Term | ||||||||
Tranche Loan B | ||||||||
4.559% 2/1/13 | 191,374 | 168,388 | ||||||
Nuveen Investment Term | ||||||||
Tranche Loan B | ||||||||
5.483% 11/13/14 | 378,599 | 324,838 | ||||||
Panamsat | ||||||||
Term Tranche Loan BA | ||||||||
5.288% 1/3/14 | 128,113 | 114,982 | ||||||
Term Tranche Loan BB | ||||||||
5.288% 1/3/14 | 128,152 | 115,016 | ||||||
Term Tranche Loan BC | ||||||||
5.288% 1/3/14 | 128,113 | 114,982 | ||||||
Solar Capital | ||||||||
4.508% 2/11/13 | 278,582 | 243,761 | ||||||
Sungard 6.75% 12/30/15 | 110,000 | 105,050 | ||||||
Talecris Biotherapeutics | ||||||||
2nd Lien | ||||||||
9.18% 12/6/14 | 625,000 | 609,375 | ||||||
Time Warner | ||||||||
Telecom Holdings | ||||||||
4.381% 1/7/13 | 284,277 | 267,220 | ||||||
Windstream Term | ||||||||
Tranche Loan B | ||||||||
4.216% 7/17/13 | 1,309,998 | 1,221,572 | ||||||
Wrigley 6.50% 7/17/14 | 250,000 | 246,163 | ||||||
York Label | ||||||||
8.00% 8/8/14 | 150,000 | 141,000 | ||||||
Total Senior Secured Loans | ||||||||
(cost $13,205,619) | 12,121,726 | |||||||
Sovereign Agencies – 0.16%D | ||||||||
Brazil – 0.05% | ||||||||
# | Banco Nacional de | |||||||
Desenvolvimento | ||||||||
Economico e | ||||||||
Social 144A | ||||||||
6.369% 6/16/18 | 520,000 | 460,200 | ||||||
460,200 | ||||||||
Norway – 0.11% | ||||||||
Kommunalbanken | ||||||||
4.25% 10/24/11 | NOK | 2,750,000 | 451,768 | |||||
8.00% 10/19/10 | NZD | 710,000 | 487,441 | |||||
939,209 | ||||||||
Total Sovereign Agencies | ||||||||
(cost $1,511,797) | 1,399,409 |
26
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Sovereign Debt – 5.21%D | ||||||||
Austria – 0.18% | ||||||||
# | Republic of | |||||||
Austria 144A | ||||||||
4.00% 9/15/16 | EUR | 1,156,000 | $ | 1,597,395 | ||||
1,597,395 | ||||||||
Canada – 0.15% | ||||||||
Canadian Government | ||||||||
4.25% 6/1/18 | CAD | 1,375,000 | 1,347,159 | |||||
1,347,159 | ||||||||
France – 0.21% | ||||||||
France Government | ||||||||
O.A.T. | ||||||||
4.00% 10/25/38 | EUR | 747,000 | 928,416 | |||||
4.00% 4/25/55 | EUR | 769,000 | 936,045 | |||||
1,864,461 | ||||||||
Germany – 2.14% | ||||||||
Bundesobligation | ||||||||
3.50% 10/14/11 | EUR | 3,324,500 | 4,660,874 | |||||
3.50% 4/12/13 | EUR | 7,812,900 | 10,865,115 | |||||
Deutschland Republic | ||||||||
4.00% 1/4/18 | EUR | 1,218,200 | 1,718,047 | |||||
4.25% 7/4/17 | EUR | 314,000 | 450,305 | |||||
5.625% 1/4/28 | EUR | 902,000 | 1,423,279 | |||||
19,117,620 | ||||||||
Indonesia – 0.16% | ||||||||
Republic of Indonesia | ||||||||
8.50% 10/12/35 | USD | 360,000 | 358,357 | |||||
10.25% 7/15/27 | IDR | 13,477,000,000 | 1,115,985 | |||||
1,474,342 | ||||||||
Japan – 0.68% | ||||||||
Japan Government | ||||||||
5 yr Bond | ||||||||
1.30% 6/20/13 | JPY | 235,500,000 | 2,241,596 | |||||
10 yr Bond | ||||||||
1.70% 3/20/17 | JPY | 75,950,000 | 736,147 | |||||
20 yr Bond | ||||||||
2.30% 6/20/26 | JPY | 263,900,000 | 2,562,880 | |||||
30 yr Bond | ||||||||
2.40% 3/20/37 | JPY | 58,850,000 | 565,056 | |||||
6,105,679 | ||||||||
Malaysia – 0.12% | ||||||||
Malaysian Government | ||||||||
3.718% 6/15/12 | MYR | 1,930,000 | 554,481 | |||||
3.756% 4/28/11 | MYR | 694,000 | 200,702 | |||||
7.00% 3/15/09 | MYR | 1,009,000 | 297,474 | |||||
1,052,657 | ||||||||
Mexico – 0.35% | ||||||||
Mexican Government | ||||||||
*5.625% 1/15/17 | USD | 2,170,000 | 2,124,430 | |||||
8.00% 12/23/10 | MXN | 4,599,000 | 420,960 | |||||
9.00% 12/20/12 | MXN | 6,513,400 | 610,402 | |||||
3,155,792 | ||||||||
Philippines – 0.08% | ||||||||
* | Philippines Government | |||||||
6.375% 1/15/32 | USD | 810,000 | 754,313 | |||||
754,313 | ||||||||
Poland – 0.23% | ||||||||
Poland Government | ||||||||
4.75% 4/25/12 | PLN | 2,897,000 | 1,152,371 | |||||
5.25% 10/25/17 | PLN | 972,000 | 387,138 | |||||
6.25% 10/24/15 | PLN | 1,154,000 | 487,682 | |||||
2,027,191 | ||||||||
Republic of Korea – 0.03% | ||||||||
Government of | ||||||||
South Korea | ||||||||
4.25% 12/7/21 | EUR | 220,000 | 261,509 | |||||
261,509 | ||||||||
Russia – 0.25% | ||||||||
F | Russia Government | |||||||
7.50% 3/31/30 | USD | 2,142,375 | 2,196,256 | |||||
2,196,256 | ||||||||
Sweden – 0.02% | ||||||||
Sweden Government | ||||||||
5.50% 10/8/12 | SEK | 1,190,000 | 182,873 | |||||
182,873 | ||||||||
Ukraine – 0.03% | ||||||||
# | Ukraine Government 144A | |||||||
6.75% 11/14/17 | USD | 332,000 | 235,259 | |||||
235,259 | ||||||||
United Arabic Emirates – 0.14% | ||||||||
# | Emirate of Abu Dhabi | |||||||
144A 5.50% 8/2/12 | USD | 1,200,000 | 1,261,140 | |||||
1,261,140 | ||||||||
United Kingdom – 0.44% | ||||||||
# | CS International for City | |||||||
of Kyiv Ukraine 144A | ||||||||
8.25% 11/26/12 | USD | 181,000 | 162,900 | |||||
U.K. Treasury | ||||||||
5.00% 3/7/12 | GBP | 911,000 | 1,664,735 | |||||
5.00% 3/7/18 | GBP | 898,700 | 1,664,911 | |||||
5.25% 6/7/12 | GBP | 18,000 | 33,182 | |||||
9.00% 7/12/11 | GBP | 188,000 | 376,863 | |||||
3,902,591 | ||||||||
Total Sovereign Debt | ||||||||
(cost $48,140,980) | 46,536,237 | |||||||
Supranational Banks – 1.57% | ||||||||
Asia Development Bank | ||||||||
0.50% 10/9/12 | AUD | 467,000 | 296,975 | |||||
European Bank for | ||||||||
Reconstruction | ||||||||
& Development | ||||||||
6.50% 12/20/10 | RUB | 6,350,000 | 241,280 |
(continues) 27
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Supranational Banks (continued) | ||||||||
European Investment Bank | ||||||||
1.40% 6/20/17 | JPY | 100,100,000 | $ | 936,551 | ||||
4.25% 12/7/10 | GBP | 395,000 | 696,327 | |||||
4.75% 10/15/17 | EUR | 684,000 | 979,456 | |||||
5.75% 9/15/09 | AUD | 776,000 | 610,080 | |||||
6.00% 8/14/13 | AUD | 2,870,000 | 2,244,912 | |||||
7.00% 1/18/12 | NZD | 1,836,000 | 1,245,693 | |||||
7.75% 10/26/10 | NZD | 1,520,000 | 1,039,886 | |||||
11.25% 2/14/13 | BRL | 2,500,000 | 1,291,728 | |||||
Inter-American | ||||||||
Development Bank | ||||||||
5.75% 6/15/11 | AUD | 1,338,000 | 1,046,203 | |||||
7.25% 5/24/12 | NZD | 2,788,000 | 1,909,805 | |||||
9.00% 8/6/10 | BRL | 296,000 | 150,095 | |||||
International Bank | ||||||||
for Reconstruction | ||||||||
& Development | ||||||||
5.75% 6/25/10 | RUB | 11,000,000 | 417,644 | |||||
12.25% 8/4/10 | BRL | 694,000 | 369,505 | |||||
Nordic Investment Bank | ||||||||
1.70% 4/27/17 | JPY | 60,000,000 | 575,407 | |||||
Total Supranational Banks | ||||||||
(cost $14,770,111) | 14,051,547 | |||||||
U.S. Treasury Obligations – 6.66% | ||||||||
^ | U.S. Treasury Bill | |||||||
0.201% 10/16/08 | USD | 3,000,000 | 2,999,750 | |||||
0.771% 12/4/08 | 3,000,000 | 2,996,241 | ||||||
U.S. Treasury Bonds | ||||||||
4.375% 2/15/38 | 880,000 | 891,481 | ||||||
*5.00% 5/15/37 | 4,882,000 | 5,432,372 | ||||||
6.00% 2/15/26 | 5,096,000 | 6,048,320 | ||||||
*8.125% 8/15/19 | 2,615,000 | 3,510,434 | ||||||
U.S. Treasury Inflation | ||||||||
Index Notes | ||||||||
1.625% 1/15/15 | 1,456,989 | 1,419,085 | ||||||
*1.625% 1/15/18 | 2,729,428 | 2,586,136 | ||||||
¥3.00% 7/15/12 | 807,292 | 840,530 | ||||||
3.875% 1/15/09 | 315,137 | 314,374 | ||||||
U.S. Treasury Notes | ||||||||
2.625% 3/15/09 | 1,335,000 | 1,342,511 | ||||||
*3.125% 4/30/13 | 9,632,000 | 9,717,793 | ||||||
3.125% 9/30/13 | 9,365,000 | 9,432,316 | ||||||
*4.00% 2/15/15 | 289,000 | 303,586 | ||||||
*4.00% 8/15/18 | 5,072,000 | 5,145,706 | ||||||
*4.875% 4/30/11 | 6,056,000 | 6,482,760 | ||||||
Total U.S. Treasury Obligations | ||||||||
(cost $59,483,994) | 59,463,395 | |||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
Common Stock – 0.00% | ||||||||
† | Bway Holding | 2,650 | 31,085 | |||||
† | Century Communications | 1,975,000 | 0 | |||||
† | Mirant | 121 | 2,213 | |||||
† | Northwest Airlines | 47 | 424 | |||||
@=Õ† | Port Townsend | 295 | 3 | |||||
† | Time Warner Cable Class A | 5 | 121 | |||||
Total Common Stock | ||||||||
(cost $285,088) | 33,846 | |||||||
Convertible Preferred Stock – 0.01% | ||||||||
Freeport-McMoRan | ||||||||
Copper & Gold | ||||||||
6.75% exercise price | ||||||||
$73.50, expiration date 5/1/10 | 525 | 43,706 | ||||||
General Motors | ||||||||
5.25% exercise price | ||||||||
$64.90, expiration date 3/6/32 | 4,300 | 38,227 | ||||||
Total Convertible Preferred Stock | ||||||||
(cost $128,804) | 81,933 | |||||||
Preferred Stock – 0.30% | ||||||||
Arch Capital Group 8.00% | 5,809 | 117,923 | ||||||
JPMorgan Chase 7.90% | 2,340,000 | 1,975,266 | ||||||
PNC Funding 8.25% | 625,000 | 585,763 | ||||||
@=Õ | Port Townsend | 59 | 14,369 | |||||
Total Preferred Stock | ||||||||
(cost $3,106,776) | 2,693,321 | |||||||
Warrant – 0.00% | ||||||||
@=Õ† | Port Townsend | 59 | 1 | |||||
Total Warrant | ||||||||
(cost $1,416) | 1 | |||||||
Principal | ||||||||
Amount° | ||||||||
¹Discount Note – 0.16% | ||||||||
Federal Home Loan Bank | ||||||||
0.10% 10/1/08 | USD | 1,390,002 | 1,390,002 | |||||
Total Discount Note | ||||||||
(cost $1,390,002) | 1,390,002 |
28
Principal | Value | |||||||||
Amount° | (U.S. $) | |||||||||
Repurchase Agreements** – 2.23% | ||||||||||
BNP Paribas 0.15%, | ||||||||||
dated 9/30/08, to | ||||||||||
be repurchased | ||||||||||
on 10/1/08, | ||||||||||
repurchase price | ||||||||||
$19,892,111 | ||||||||||
(collateralized by | ||||||||||
U.S. Government | ||||||||||
obligations, | ||||||||||
4.875% 8/15/09; | ||||||||||
with market value | ||||||||||
$20,301,668) | USD | 19,892,028 | $ | 19,892,028 | ||||||
Total Repurchase Agreements | ||||||||||
(cost $19,892,028) | 19,892,028 | |||||||||
Total Value of Securities Before Securities | ||||||||||
Lending Collateral – 100.60% | ||||||||||
(cost $950,313,467) | 898,727,471 | |||||||||
Number of | ||||||||||
Shares | ||||||||||
Securities Lending Collateral*** – 6.96% | ||||||||||
Investment Companies | ||||||||||
Mellon GSL DBT II | ||||||||||
Collateral Fund | 62,216,905 | 62,216,905 | ||||||||
Total Securities Lending Collateral | ||||||||||
(cost $62,216,905) | 62,216,905 | |||||||||
Total Value of Securities – 107.56% | ||||||||||
(cost $1,012,530,372) | 960,944,376 | © | ||||||||
Obligation to Return Securities | ||||||||||
Lending Collateral*** – (6.96%) | (62,216,905 | ) | ||||||||
Liabilities Net of Receivables | ||||||||||
and Other Assets – (0.60%) | (5,339,660 | ) | ||||||||
Net Assets Applicable to | ||||||||||
106,603,346 Shares | ||||||||||
Outstanding – 100.00% | $ | 893,387,811 | ||||||||
Net Asset Value – Optimum Fixed Income Fund | ||||||||||
Class A ($56,850,573 / 6,782,286 Shares) | $8.38 | |||||||||
Net Asset Value – Optimum Fixed Income Fund | ||||||||||
Class B ($7,557,250 / 900,687 Shares) | $8.39 | |||||||||
Net Asset Value – Optimum Fixed Income Fund | ||||||||||
Class C ($230,754,642 / 27,493,208 Shares) | $8.39 | |||||||||
Net Asset Value – Optimum Fixed Income Fund | ||||||||||
Institutional Class ($598,225,346 / 71,427,165 Shares) | $8.38 |
Components of Net Assets at September 30, 2008: | |||
Shares of beneficial interest | |||
(unlimited authorization – no par) | $ | 952,170,107 | |
Undistributed net investment income | 11,250,559 | ||
Accumulated net realized loss on investments | (19,640,669 | ) | |
Net unrealized depreciation of investments | |||
and foreign currencies | (50,392,186 | ) | |
Total net assets | $ | 893,387,811 |
°Principal amount shown is stated in the currency in which each security is denominated.
AUD — Australian Dollar
BRL — Brazilian Real
CAD — Canadian Dollar
CHF — Swiss Franc
EUR — European Monetary Unit
GBP — British Pound Sterling
IDR — Indonesian Rupiah
ILS — Israeli Shekel
ISK — Iceland Krona
JPY— Japanese Yen
MXN — Mexican Peso
MYR — Malaysia Ringgit
NOK — Norwegian Kroner
NZD — New Zealand Dollar
PLN — Polish Zloty
RUB — Russian Ruble
SEK — Swedish Krona
USD — United States Dollar
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 September 30, 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 September 30, 2008, the aggregate amount of Rule 144A securities was $62,594,262, which represented 7.01% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
@ | Illiquid security. At September 30, 2008, the aggregate amount of illiquid securities was $3,336,494, which represented 0.37% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
Õ | Restricted Security. Investments are in securities not registered under the Securities Act of 1933, as amended, and have certain restrictions on resale which may limit their liquidity. At September 30, 2008, the aggregate amount of restricted securities was $1,788,891 or 0.20% 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 September 30, 2008, the aggregate amount of fair valued securities was $96,147, which represented 0.01% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” |
(continues) 29
Statements of net assets
Optimum Fixed Income Fund
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. |
F | Step coupon bond. Coupon increases periodically based on a predetermined schedule. Stated rate in effect at September 30, 2008. |
¥ | Fully or partially pledged as collateral for financial futures contracts. |
† | Non income producing security. |
¹ | The rate shown is the effective yield as of the time of purchase. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $60,080,775 of securities loaned. |
Summary of Abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
ARM — Adjustable Rate Mortgage
CDS — Credit Default Swap
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) | $ | 8.38 |
Sales charge (4.50% of offering price) (B) | 0.39 | |
Offering price | $ | 8.77 |
(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, financial futures contracts and swap contracts were outstanding at September 30, 2008: |
Foreign Currency Exchange Contracts1 | ||||||||||||||||
Unrealized | ||||||||||||||||
Contracts to | Settlement | Appreciation | ||||||||||||||
Receive (Deliver) | In Exchange For | Date | (Depreciation) | |||||||||||||
AUD | 774,000 | USD | (643,194 | ) | 10/1/08 | $ | (31,540 | ) | ||||||||
AUD | (3,598,602 | ) | USD | 2,980,904 | 10/31/08 | 139,706 | ||||||||||
AUD | (4,063,185 | ) | USD | 3,412,181 | 10/31/08 | 204,182 | ||||||||||
BRL | (3,191,432 | ) | USD | 1,732,120 | 10/31/08 | 54,364 | ||||||||||
CAD | (132,983 | ) | USD | 128,734 | 10/31/08 | 3,587 | ||||||||||
CHF | 539,885 | USD | (498,555 | ) | 10/31/08 | (16,471 | ) | |||||||||
EUR | 1,422,966 | ISK | (177,389,691 | ) | 10/31/08 | 329,609 | ||||||||||
EUR | 436,922 | PLN | (1,458,532 | ) | 10/31/08 | 12,295 | ||||||||||
EUR | 168,010 | USD | (246,773 | ) | 10/31/08 | (9,540 | ) | |||||||||
EUR | (2,484,074 | ) | USD | 3,648,484 | 10/31/08 | 140,918 | ||||||||||
EUR | (3,092,329 | ) | USD | 4,538,658 | 10/31/08 | 172,222 | ||||||||||
EUR | (3,546,569 | ) | USD | 5,223,671 | 10/31/08 | 215,839 | ||||||||||
GBP | (335,418 | ) | USD | 615,442 | 10/31/08 | 17,699 | ||||||||||
GBP | (351,901 | ) | USD | 651,017 | 10/31/08 | 23,900 | ||||||||||
GBP | (1,578,296 | ) | USD | 2,921,504 | 10/31/08 | 108,852 | ||||||||||
IDR | (497,815,000 | ) | USD | 2,153,687 | 10/31/08 | (19,898 | ) | |||||||||
ILS | 7,314,511 | USD | (2,099,157 | ) | 10/31/08 | 14,480 | ||||||||||
ISK | (56,240,000 | ) | USD | 581,112 | 10/1/08 | 51,221 | ||||||||||
JPY | 1,944,503,885 | USD | (18,304,931 | ) | 10/31/08 | 74,197 | ||||||||||
JPY | 163,448,112 | USD | (1,544,622 | ) | 10/31/08 | 263 | ||||||||||
MXN | (4,506,290 | ) | USD | 415,633 | 10/31/08 | 5,282 | ||||||||||
MXN | (54,009,501 | ) | USD | 4,993,398 | 10/31/08 | 75,196 | ||||||||||
MXN | (40,169,040 | ) | USD | 3,680,000 | 10/1/08 | 6,882 | ||||||||||
MYR | (3,946,097 | ) | USD | 1,147,121 | 10/31/08 | (2,943 | ) | |||||||||
NOK | 759,724 | USD | (143,322 | ) | 10/31/08 | (14,286 | ) | |||||||||
NZD | (9,143,551 | ) | USD | 6,231,934 | 10/31/08 | 137,548 | ||||||||||
PLN | (3,390,321 | ) | USD | 1,475,322 | 10/31/08 | 69,832 | ||||||||||
RUB | 15,494,711 | USD | (632,437 | ) | 10/31/08 | (31,206 | ) | |||||||||
SEK | 1,950,020 | EUR | (208,064 | ) | 10/31/08 | (11,931 | ) | |||||||||
SEK | 3,018,918 | USD | (475,121 | ) | 10/31/08 | (38,760 | ) | |||||||||
$ | 1,681,499 |
Financial Futures Contracts2
Unrealized | ||||||||||||
Notional | Notional | Expiration | Appreciation | |||||||||
Contracts to Buy | Cost | Value | Date | (Depreciation) | ||||||||
20 Euro Bond | $ | 3,292,442 | $ | 3,239,336 | 12/8/08 | $ | (53,106 | ) | ||||
2 Japanese Treasury | ||||||||||||
10 yr Notes | 2,569,579 | 2,586,552 | 12/11/08 | 16,973 | ||||||||
32 Long Gilt Bond | 6,560,127 | 6,379,810 | 12/29/08 | (180,317 | ) | |||||||
295 U.S. Treasury | ||||||||||||
5 yr Notes | 33,101,072 | 33,109,141 | 12/31/08 | 8,069 | ||||||||
$ | 45,523,220 | $ | (208,381 | ) |
30
Swap Contracts3 | ||||||||||||||
Credit Default Swap Contracts | ||||||||||||||
Swap | ||||||||||||||
Counterparty | Annual | Unrealized | ||||||||||||
& Referenced | Notional | Protection | Termination | Appreciation | ||||||||||
Obligation | Value | Payments | Date | (Depreciation) | ||||||||||
Protection Purchased: | ||||||||||||||
Citigroup Global | ||||||||||||||
Markets | ||||||||||||||
Century Tel | ||||||||||||||
5 yr CDS | $ | 1,350,000 | 1.71 | % | 9/20/13 | $ | (10,162 | ) | ||||||
Goldman Sachs | ||||||||||||||
CDX High Yield | ||||||||||||||
10.1 yr CDS | 4,090,000 | 5.00 | % | 6/20/13 | 140,068 | |||||||||
Kraft Food | ||||||||||||||
10 yr CDS | 1,100,000 | 0.77 | % | 12/20/17 | 18,137 | |||||||||
JPMorgan Chase | ||||||||||||||
Embarq | ||||||||||||||
6 yr CDS | 155,000 | 2.60 | % | 9/20/14 | 6,952 | |||||||||
7 yr CDS | 755,000 | 0.77 | % | 9/20/14 | 98,018 | |||||||||
Republic of | ||||||||||||||
Indonesia 5 yr | ||||||||||||||
CDS | 2,588,000 | 2.61 | % | 9/20/13 | 51,726 | |||||||||
$ | 10,038,000 | $ | 304,739 |
The use of foreign currency exchange contracts and foreign cross currency exchange contracts, financial futures contracts 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. |
1See Note 7 in ”Notes to financial statements.”
2See Note 8 in ”Notes to financial statements.”
3See Note 10 in ”Notes to financial statements.”
See accompanying notes
(continues) 31
Statements of net assets
Optimum International Fund
September 30, 2008 (Unaudited)
Number of | Value | |||||
Shares | (U.S. $) | |||||
Common Stock – 98.15%D | ||||||
‡Australia – 6.53% | ||||||
Amcor | 348,410 | $ | 1,532,105 | |||
* | Australia & New Zealand | |||||
Banking Group | 44,800 | 692,125 | ||||
BHP Billiton | 43,700 | 1,130,546 | ||||
Foster’s Group | 630,281 | 2,815,965 | ||||
National Australia Bank | 147,299 | 2,972,853 | ||||
Oxiana | 143,370 | 181,920 | ||||
Qantas Airways | 117,700 | 300,062 | ||||
Suncorp-Metway | 30 | 228 | ||||
Telstra | 1,019,064 | 3,418,919 | ||||
* | Wesfarmers | 52,705 | 1,225,693 | |||
14,270,416 | ||||||
‡Austria – 0.25% | ||||||
Voestalpine | 17,100 | 534,252 | ||||
534,252 | ||||||
‡Belgium – 0.82% | ||||||
Fortis | 44,300 | 273,636 | ||||
Fortis (Amsterdam Exchange) | 136,095 | 860,982 | ||||
† | Fortis Strip | 48,482 | 683 | |||
Solvay Class A | 5,400 | 662,731 | ||||
1,798,032 | ||||||
Brazil – 0.13% | ||||||
Unibanco GDR | 2,800 | 282,576 | ||||
282,576 | ||||||
Canada – 2.49% | ||||||
Barrick Gold | 15,300 | 560,219 | ||||
Fairfax Financial Holdings | 2,800 | 897,484 | ||||
Finning International | 21,000 | 411,989 | ||||
Imperial Oil | 7,700 | 329,762 | ||||
Nexen | 12,000 | 278,493 | ||||
Petro-Canada | 27,600 | 918,012 | ||||
Royal Bank of Canada | 16,920 | 802,838 | ||||
Sun Life Financial | 24,000 | 838,861 | ||||
TELUS | 11,089 | 397,070 | ||||
5,434,728 | ||||||
‡China – 0.24% | ||||||
China Petroleum & Chemical Class H | 660,000 | 520,907 | ||||
520,907 | ||||||
‡Finland – 1.37% | ||||||
Nokia | 42,900 | 800,005 | ||||
Stora Enso Class R | 82,500 | 805,973 | ||||
UPM-Kymmene | 89,173 | 1,391,062 | ||||
2,997,040 | ||||||
‡France – 13.60% | ||||||
Air France-KLM | 8,800 | 201,445 | ||||
* | BNP Paribas | 22,840 | 2,179,862 | |||
* | Carrefour | 49,493 | 2,333,522 | |||
Compagnie de Saint-Gobain | 28,115 | 1,454,088 | ||||
* | Compagnie Generale des | |||||
Etablissements Michelin Class B | 13,600 | 880,748 | ||||
* | Credit Agricole | 82,869 | 1,595,761 | |||
* | France Telecom | 137,688 | 3,861,409 | |||
† | GDF Suez | 8,839 | 124 | |||
Lagardere | 17,800 | 802,216 | ||||
* | Renault | 53,378 | 3,401,142 | |||
* | Sanofi-Aventis | 28,198 | 1,853,564 | |||
* | Societe Generale | 47,778 | 4,291,120 | |||
* | Total | 107,579 | 6,534,256 | |||
Vallourec | 1,600 | 345,183 | ||||
29,734,440 | ||||||
‡Germany – 9.84% | ||||||
Allianz | 16,900 | 2,328,099 | ||||
BASF | 45,600 | 2,200,712 | ||||
Celesio | 9,000 | 392,329 | ||||
Deutsche Bank | 28,700 | 2,083,621 | ||||
Deutsche Lufthansa | 60,400 | 1,189,064 | ||||
Deutsche Telekom | 229,217 | 3,482,169 | ||||
E.ON | 46,500 | 2,361,297 | ||||
* | Epcos | 13,300 | 335,790 | |||
† | Infineon Technologies | 115,200 | 645,998 | |||
Muenchener Rueckversicherungs | 10,500 | 1,588,659 | ||||
RWE | 51,097 | 4,903,023 | ||||
21,510,761 | ||||||
‡Hong Kong – 1.43% | ||||||
China Netcom Group | 82,000 | 181,590 | ||||
Hong Kong Electric Holdings | 262,500 | 1,648,796 | ||||
Orient Overseas International | 48,000 | 122,965 | ||||
Wharf Holdings | 412,875 | 1,179,586 | ||||
3,132,937 | ||||||
India – 0.20% | ||||||
State Bank of India GDR | 7,130 | 430,958 | ||||
430,958 | ||||||
‡Italy – 3.60% | ||||||
* | ENI | 76,800 | 2,035,304 | |||
Fondiaria-Sai | 23,400 | 552,232 | ||||
Intesa Sanpaolo | 631,829 | 3,474,178 | ||||
Telecom Italia | 308,100 | 458,456 | ||||
UniCredito | 358,795 | 1,341,420 | ||||
7,861,590 | ||||||
‡Japan – 20.51% | ||||||
* | Astellas Pharma | 46,100 | 1,937,176 | |||
Canon | 89,000 | 3,374,225 | ||||
* | EDION | 31,600 | 213,263 | |||
Fanuc | 99 | 7,448 | ||||
Fujitsu | 223,000 | 1,253,758 | ||||
* | Hitachi | 109,000 | 735,891 | |||
Honda Motor | 44,800 | 1,358,971 | ||||
JFE Holdings | 34,600 | 1,073,209 | ||||
Kao | 145,000 | 3,888,723 | ||||
* | KDDI | 309 | 1,750,464 | |||
Mitsubishi | 39,000 | 813,584 | ||||
* | Mitsubishi Chemical Holdings | 148,000 | 782,327 | |||
Mitsui & Co. | 74,000 | 918,702 | ||||
* | Mitsui Chemicals | 84,000 | 370,336 |
32
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock (continued) | |||||
‡Japan (continued) | |||||
Mitsui OSK Lines | 117,000 | $ | 1,016,585 | ||
* | Namco Bandai Holdings | 43,500 | 478,243 | ||
Nippon Mining Holdings | 103,000 | 414,906 | |||
Nippon Telegraph & Telephone | 311 | 1,388,197 | |||
Nissan Motor | 185,700 | 1,255,721 | |||
Nitto Denko | 41,700 | 1,060,923 | |||
* | Oki Electric Industry | 139,000 | 146,570 | ||
ORIX | 6,390 | 800,117 | |||
Sekisui House | 115,000 | 1,055,867 | |||
Seven & I Holdings | 90,200 | 2,591,557 | |||
Sharp | 71,000 | 775,857 | |||
* | Sumitomo Mitsui Financial Group | 224 | 1,404,470 | ||
Takeda Pharmaceutical | 88,400 | 4,451,200 | |||
Tokio Marine Holdings | 75,700 | 2,779,365 | |||
* | Tokyo Electric Power | 49,600 | 1,220,436 | ||
* | Toshiba | 221,000 | 963,884 | ||
* | Tosoh | 99,000 | 292,147 | ||
* | Toyota Motor | 70,300 | 3,005,641 | ||
West Japan Railway | 292 | 1,250,542 | |||
44,830,305 | |||||
‡Netherlands – 3.89% | |||||
ArcelorMittal | 25,154 | 1,274,000 | |||
ING Groep CVA | 150,976 | 3,236,017 | |||
Koninklijke Ahold | 111,960 | 1,293,102 | |||
Koninklijke DSM | 6,900 | 326,310 | |||
Koninklijke KPN | 22,400 | 323,442 | |||
Reed Elsevier | 138,012 | 2,047,044 | |||
8,499,915 | |||||
‡New Zealand – 0.36% | |||||
Telecom Corp. of New Zealand | 427,992 | 791,732 | |||
791,732 | |||||
‡Norway – 0.69% | |||||
Norsk Hydro ASA | 32,000 | 216,474 | |||
StatoilHydro ASA | 54,600 | 1,297,401 | |||
1,513,875 | |||||
Republic of Korea – 0.48% | |||||
‡ | Hana Financial Group | 5,500 | 129,345 | ||
‡ | Honam Petrochemical | 2,900 | 167,128 | ||
‡† | Hynix Semiconductor | 7,800 | 129,250 | ||
‡ | Hyundai Mobis | 1,730 | 134,006 | ||
‡ | Industrial Bank of Korea | 16,180 | 195,750 | ||
Kookmin Bank | 2,700 | 117,033 | |||
‡ | Samsung Electronics | 360 | 164,970 | ||
1,037,482 | |||||
Russia – 0.48% | |||||
LUKOIL ADR | 11,700 | 687,960 | |||
MMC Norilsk Nickel ADR | 27,100 | 370,457 | |||
1,058,417 | |||||
Singapore – 1.50% | |||||
† | Flextronics International | 82,900 | 586,932 | ||
‡ | Jardine Matheson Holdings | 4,400 | 114,948 | ||
Neptune Orient Lines | 84,000 | 107,128 | |||
‡ | Oversea-Chinese Banking | 246,800 | 1,246,093 | ||
‡ | Singapore Telecommunications | 537,000 | 1,227,439 | ||
3,282,540 | |||||
‡South Africa – 0.70% | |||||
* | Sanlam | 121,610 | 261,731 | ||
Sasol | 26,814 | 1,144,164 | |||
Standard Bank Group | 10,400 | 119,509 | |||
1,525,404 | |||||
‡Spain – 4.76% | |||||
Banco Santander | 183,662 | 2,753,398 | |||
Iberdrola | 215,264 | 2,186,472 | |||
Repsol YPF | 51,800 | 1,534,868 | |||
Telefonica | 165,676 | 3,938,673 | |||
10,413,411 | |||||
‡Sweden – 1.02% | |||||
Ericsson LM Class B | 56,000 | 531,728 | |||
Nordea Bank | 30,400 | 362,881 | |||
Svenska Cellulosa | 59,100 | 625,960 | |||
Tele2 | 1,900 | 21,680 | |||
Volvo | 76,650 | 692,379 | |||
2,234,628 | |||||
‡Switzerland – 3.50% | |||||
Credit Suisse Group | 30,400 | 1,419,740 | |||
Novartis | 99,909 | 5,260,165 | |||
Xstrata | 30,920 | 964,651 | |||
7,644,556 | |||||
Taiwan – 1.60% | |||||
‡ | Asustek Computer | 51,653 | 101,974 | ||
‡ | AU Optronics | 875 | 987 | ||
Chunghwa Telecom ADR | 53,003 | 1,254,581 | |||
‡ | Siliconware Precision Industries | 253,362 | 287,414 | ||
‡ | Taiwan Semiconductor | ||||
Manufacturing | 159,173 | 266,278 | |||
Taiwan Semiconductor | |||||
Manufacturing ADR | 156,852 | 1,469,702 | |||
‡ | United Microelectronics | 367,183 | 117,977 | ||
3,498,913 | |||||
Thailand – 0.09% | |||||
PTT PCL | 27,800 | 186,973 | |||
186,973 | |||||
‡United Kingdom – 18.07% | |||||
Antofagasta | 13,400 | 97,575 | |||
Associated British Foods | 65,700 | 834,826 | |||
Aviva | 239,724 | 2,086,084 | |||
* | Barclays | 280,600 | 1,668,303 | ||
BG Group | 117,973 | 2,139,384 | |||
BHP Billiton | 28,000 | 634,264 | |||
BP | 457,792 | 3,814,359 | |||
Compass Group | 210,386 | 1,304,706 | |||
GKN | 240,560 | 855,444 | |||
GlaxoSmithKline | 313,211 | 6,787,222 | |||
HBOS | 740,106 | 1,680,367 |
(continues) 33
Statements of net assets
Optimum International Fund
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
Common Stock (continued) | ||||||||
‡United Kingdom (continued) | ||||||||
Kazakhmys | 31,200 | $ | 328,761 | |||||
Lloyds TSB Group | 356,915 | 1,435,652 | ||||||
Royal Bank of Scotland Group | 1,108,656 | 3,578,129 | ||||||
Royal Dutch Shell Class A | 212,674 | 6,264,730 | ||||||
Unilever | 138,755 | 3,767,590 | ||||||
Vodafone Group | 1,001,125 | 2,210,729 | ||||||
39,488,125 | ||||||||
Total Common Stock | ||||||||
(cost $259,014,288) | 214,514,913 | |||||||
Preferred Stock – 0.36%D | ||||||||
Brazil – 0.29% | ||||||||
Usinas Siderurgicas de Minas Gerais | ||||||||
Class A | 30,375 | 643,844 | ||||||
643,844 | ||||||||
‡Republic of Korea – 0.07% | ||||||||
Samsung Electronics | 500 | 157,669 | ||||||
157,669 | ||||||||
Total Preferred Stock | ||||||||
(cost $636,485) | 801,513 | |||||||
Principal | ||||||||
Amount (U.S. $) | ||||||||
¹Discount Note – 0.02% | ||||||||
Federal Home Loan Bank | ||||||||
0.10% 10/1/08 | $ | 41,343 | 41,343 | |||||
Total Discount Note | ||||||||
(cost $41,343) | 41,343 | |||||||
Repurchase Agreements** – 0.27% | ||||||||
BNP Paribas 0.15%, dated | ||||||||
9/30/08, to be repurchased | ||||||||
on 10/1/08, repurchase price | ||||||||
$591,659 (collateralized | ||||||||
by U.S. Government obligations, | ||||||||
4.875% 8/15/09; with market | ||||||||
value $603,841) | 591,657 | 591,657 | ||||||
Total Repurchase Agreements | ||||||||
(cost $591,657) | 591,657 | |||||||
Total Value of Securities Before Securities | ||||||||
Lending Collateral – 98.80% | ||||||||
(cost $260,283,773) | 215,949,426 | |||||||
Number of | ||||||||
Shares | ||||||||
Securities Lending Collateral*** – 14.74% | ||||||||
Investment Companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 32,224,046 | 32,224,046 | ||||||
Total Securities Lending Collateral | ||||||||
(cost $32,224,046) | 32,224,046 | |||||||
Total Value of Securities – 113.54% | ||||||||
(cost $292,507,819) | 248,173,472 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (14.74%) | (32,224,046 | ) | ||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 1.20% | 2,616,157 | |||||||
Net Assets Applicable to 20,747,135 | ||||||||
Shares Outstanding – 100.00% | $ | 218,565,583 | ||||||
Net Asset Value – Optimum International Fund | ||||||||
Class A ($16,448,048 / 1,559,710 Shares) | $10.55 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Class B ($2,992,040 / 289,796 Shares) | $10.32 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Class C ($61,069,578 / 5,911,331 Shares) | $10.33 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Institutional Class ($138,055,917 / 12,986,298 Shares) | $10.63 | |||||||
Components of Net Assets at September 30, 2008: | ||||||||
Shares of beneficial interest | ||||||||
(unlimited authorization – no par) | $ | 257,040,082 | ||||||
Undistributed net investment income | 4,986,798 | |||||||
Accumulated net realized gain on investments | 309,714 | |||||||
Net unrealized depreciation of investments | ||||||||
and foreign currencies | (43,771,011 | ) | ||||||
Total net assets | $ | 218,565,583 |
D | Securities have been classified by country of origin. Classification by type of business has been presented on page 4 in “Country/Sector allocations.” |
‡ | Security is being valued based on international fair value pricing. At September 30, 2008, the aggregate amount of international fair value priced securities was $203,850,682, which represented 93.27% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” |
* | Fully or partially on loan. |
† | Non income producing security. |
¹ | The rate shown is the effective yield as of the time of purchase. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $32,483,544 of securities loaned. |
34
Summary of Abbreviations: |
Net Asset Value and Offering Price Per Share – | ||
Optimum International Fund | ||
Net asset value Class A (A) | $ | 10.55 |
Sales charge (5.75% of offering price) (B) | 0.64 | |
Offering price | $ | 11.19 |
(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 September 30, 2008: |
Foreign Currency Exchange Contracts1 | |||||||||||||||||
Unrealized | |||||||||||||||||
Contracts to | Appreciation | ||||||||||||||||
Receive (Deliver) | In Exchange For | Settlement Date | (Depreciation) | ||||||||||||||
CHF | (86,841 | ) | USD | 79,126 | 10/1/08 | $ | 1,879 | ||||||||||
EUR | 51,166 | USD | (73,602 | ) | 10/1/08 | (1,583 | ) | ||||||||||
EUR | (5,759,000 | ) | USD | 8,752,217 | 10/31/08 | 620,385 | |||||||||||
JPY | (40,550,536 | ) | USD | 382,838 | 10/1/08 | 1,544 | |||||||||||
$ | 622,225 |
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. |
1See Note 7 in “Notes to financial statements.”
See accompanying notes
(continues) 35
Statements of net assets
Optimum Large Cap Growth Fund
September 30, 2008 (Unaudited)
Number of | Value | |||||
Shares | (U.S. $) | |||||
Common Stock – 94.43% | ||||||
Basic Industry/Capital Goods – 8.16% | ||||||
Air Products & Chemicals | 51,071 | $ | 3,497,853 | |||
‡ | BHP Billiton (Australia) | 61,700 | 1,596,217 | |||
Celanese Class A | 80,600 | 2,249,546 | ||||
* | Danaher | 95,700 | 6,641,580 | |||
Deere & Co. | 31,100 | 1,539,450 | ||||
† | Foster Wheeler | 16,700 | 603,037 | |||
* | Freeport-McMoRan Copper & Gold | 106,450 | 6,051,683 | |||
ITT | 70,600 | 3,926,066 | ||||
Joy Global | 13,000 | 586,820 | ||||
* | Kinross Gold | 68,100 | 1,097,772 | |||
Monsanto | 179,224 | 17,739,591 | ||||
Owens | 206,700 | 6,076,980 | ||||
Potash Corp. of Saskatchewan | 40,283 | 5,317,759 | ||||
Praxair | 129,062 | 9,258,908 | ||||
Terra Industries | 19,000 | 558,600 | ||||
Thompson Creek Metals | 162,000 | 1,540,620 | ||||
Tyco International | 27,600 | 966,552 | ||||
69,249,034 | ||||||
Business Services – 5.87% | ||||||
* | Accenture Class A | 81,100 | 3,081,800 | |||
Automatic Data Processing | 65,600 | 2,804,400 | ||||
Expeditors International | ||||||
of Washington | 28,800 | 1,003,392 | ||||
† | Fiserv | 20,600 | 974,792 | |||
* | MasterCard Class A | 66,105 | 11,722,399 | |||
McGraw-Hill Companies | 131,800 | 4,166,198 | ||||
* | Moody’s | 37,300 | 1,268,200 | |||
Net 1 UEPS Technologies | 70,400 | 1,572,032 | ||||
† | Research in Motion | 143,850 | 9,824,955 | |||
Sysco | 41,200 | 1,270,196 | ||||
United Parcel Service Class B | 38,000 | 2,389,820 | ||||
Vimpel-Communications ADR | 32,000 | 649,600 | ||||
Visa Class A | 147,904 | 9,079,827 | ||||
49,807,611 | ||||||
Consumer Durables – 2.01% | ||||||
† | Electronic Arts | 34,000 | 1,257,660 | |||
* | Nintendo ADR | 264,800 | 13,531,200 | |||
‡ | Nintendo (Japan) | 5,400 | 2,290,645 | |||
17,079,505 | ||||||
Consumer Non-Durables – 9.71% | ||||||
Altria Group | 197,800 | 3,924,352 | ||||
† | Amazon.com | 64,700 | 4,707,572 | |||
Coca-Cola | 99,400 | 5,256,272 | ||||
Costco Wholesale | 131,724 | 8,552,839 | ||||
CVS Caremark | 405,570 | 13,651,487 | ||||
Deckers Outdoor | 25,100 | 2,612,408 | ||||
‡* | Groupe Danone (France) | 20,456 | 1,450,725 | |||
Heineken ADR | 168,346 | 3,351,331 | ||||
Lojas Renner (Brazil) | 37,200 | 433,954 | ||||
Lowe's Companies | 322,865 | 7,648,672 | ||||
‡ | Nestle | 27,380 | 1,183,296 | |||
NIKE Class B | 106,331 | 7,113,544 | ||||
PepsiCo | 43,950 | 3,132,317 | ||||
Philip Morris International | 277,500 | 13,347,750 | ||||
Procter & Gamble | 42,852 | 2,986,356 | ||||
Target | 61,849 | 3,033,693 | ||||
82,386,568 | ||||||
Consumer Services – 6.62% | ||||||
Comcast Special Class A | 177,550 | 3,501,286 | ||||
DreamWorks Animation SKG Class A | 24,500 | 770,525 | ||||
eBay | 140,200 | 3,137,676 | ||||
Gildan Activewear | 316,400 | 7,207,592 | ||||
International Game Technology | 60,250 | 1,035,095 | ||||
* | †Las Vegas Sands | 31,800 | 1,148,298 | |||
McDonald’s | 345,676 | 21,328,209 | ||||
‡ | Naspers Class N (South Africa) | 20,400 | 402,831 | |||
* | Shaw Communications | |||||
Class B (Canada) | 72,900 | 1,482,057 | ||||
Western Union | 80,600 | 1,988,402 | ||||
* | Wynn Resorts | 73,141 | 5,971,231 | |||
Yum Brands | 252,913 | 8,247,493 | ||||
56,220,695 | ||||||
Energy – 12.01% | ||||||
Baker Hughes | 73,100 | 4,425,474 | ||||
Cabot Oil & Gas | 28,800 | 1,040,832 | ||||
*† | Cameron International | 90,856 | 3,501,590 | |||
Chevron | 34,250 | 2,824,940 | ||||
Concho Resources | 101,100 | 2,791,371 | ||||
ConocoPhillips | 56,300 | 4,123,975 | ||||
Consol Energy | 29,200 | 1,339,988 | ||||
Devon Energy | 6,000 | 547,200 | ||||
EOG Resources | 18,200 | 1,628,172 | ||||
Exxon Mobil | 64,300 | 4,993,538 | ||||
First Solar | 2,800 | 528,948 | ||||
Hess | 110,757 | 9,090,935 | ||||
JA Solar Holdings ADR | 430,800 | 4,557,864 | ||||
Massey Energy | 8,800 | 313,896 | ||||
† | McDermott International | 68,700 | 1,755,285 | |||
National Oilwell Varco | 23,500 | 1,180,405 | ||||
Newfield Exploration | 126,200 | 4,037,138 | ||||
Nexen | 65,500 | 1,521,565 | ||||
Pacific Rubiales Energy | 36,400 | 230,183 | ||||
Peabody Energy | 31,600 | 1,422,000 | ||||
Petrobank Energy & Resources | 16,900 | 640,595 | ||||
Petroleo Brasileiro SA ADR | 185,376 | 8,147,275 | ||||
Petroleo Brasiliero SP ADR | 62,900 | 2,353,718 | ||||
Schlumberger | 144,038 | 11,247,927 | ||||
Smith International | 39,700 | 2,328,008 | ||||
Suncor Energy | 12,700 | 536,829 | ||||
‡* | Total (France) | 18,700 | 1,135,822 | |||
Transocean | 103,644 | 11,384,257 | ||||
Valero Energy | 34,600 | 1,048,380 | ||||
‡ | Vestas Wind Systems | 36,875 | 3,218,084 | |||
Weatherford International | 231,000 | 5,807,340 | ||||
Whiting Petroleum | 30,500 | 2,173,430 | ||||
101,876,964 |
36
Number of | Value | |||||
Shares | (U.S. $) | |||||
Common Stock (continued) | ||||||
Financials – 11.54% | ||||||
ACE | 76,400 | $ | 4,135,532 | |||
Affiliated Managers Group | 41,900 | 3,471,415 | ||||
AllianceBernstein Ho | 61,100 | 2,261,311 | ||||
Assurant | 28,100 | 1,545,500 | ||||
Bank of America | 337,325 | 11,806,375 | ||||
* | BlackRock | 3,800 | 739,100 | |||
Blackstone Group | 82,350 | 1,263,249 | ||||
Bosvespa Holding (Brazil) | 347,348 | 1,530,216 | ||||
Franklin Resources | 17,100 | 1,507,023 | ||||
Goldman Sachs Group | 95,081 | 12,170,367 | ||||
‡* | Industrial & Commercial Bank | |||||
of China Class H (China) | ||||||
(Hong Kong Exchange) | 19,212,000 | 11,611,942 | ||||
JPMorgan Chase | 93,500 | 4,366,450 | ||||
Lazard Class A | 90,600 | 3,874,056 | ||||
MetLife | 48,300 | 2,704,800 | ||||
Morgan Stanley | 73,167 | 1,682,841 | ||||
Northern Trust | 12,400 | 895,280 | ||||
NYSE Euronext | 83,400 | 3,267,612 | ||||
Redecard (Brazil) | 52,100 | 649,127 | ||||
* | St. Joe | 146,808 | 5,738,725 | |||
State Street | 24,760 | 1,408,349 | ||||
U.S. Bancorp | 261,227 | 9,409,397 | ||||
Wells Fargo | 317,898 | 11,930,712 | ||||
97,969,379 | ||||||
Health Care – 13.58% | ||||||
Abbott Laboratories | 233,700 | 13,456,445 | ||||
Aetna | 73,700 | 2,661,307 | ||||
Alcon (Switzerland) | 12,200 | 1,970,422 | ||||
Allergan | 42,200 | 2,173,300 | ||||
† | Amgen | 62,200 | 3,686,594 | |||
Baxter International | 44,200 | 2,900,846 | ||||
Becton, Dickinson | 23,100 | 1,854,006 | ||||
Biogen Idec | 55,050 | 2,768,465 | ||||
Boston Scientific | 160,900 | 1,974,243 | ||||
† | Celgene | 75,000 | 4,746,000 | |||
Cephalon | 49,600 | 3,843,504 | ||||
CIGNA | 51,600 | 1,753,368 | ||||
Covidien | 102,225 | 5,495,616 | ||||
DENTSPLY International | 17,300 | 649,442 | ||||
*† | Elan ADR | 80,800 | 862,136 | |||
† | Express Scripts | 29,800 | 2,199,836 | |||
† | Genentech | 113,300 | 10,047,444 | |||
† | Gilead Sciences | 203,720 | 9,285,558 | |||
Hologic | 149,000 | 2,880,170 | ||||
† | Humana | 27,900 | 1,149,480 | |||
† | Intuitive Surgical | 2,500 | 602,450 | |||
* | Inverness Medical Innovations | 130,700 | 3,921,000 | |||
Invitrogen | 47,250 | 1,786,050 | ||||
McKesson | 24,500 | 1,318,345 | ||||
† | Medco Health Solutions | 84,300 | 3,793,500 | |||
Medtronic | 72,450 | 3,629,745 | ||||
Merck | 62,400 | 1,969,344 | ||||
* | Mylan | 357,800 | 4,086,076 | |||
Pfizer | 153,700 | 2,834,228 | ||||
† | St. Jude Medical | 34,400 | 1,496,056 | |||
Stryker | 32,600 | 2,030,980 | ||||
United Therapeutics | 24,200 | 2,545,114 | ||||
Varian Medical Systems | 31,800 | 1,816,734 | ||||
† | WellPoint | 100,000 | 4,677,000 | |||
Wyeth | 64,800 | 2,393,712 | ||||
115,258,516 | ||||||
Technology – 21.45% | ||||||
America Movil Series L ADR | 181,227 | 8,401,684 | ||||
† | American Tower Class A | 132,100 | 4,751,637 | |||
† | Apple | 203,846 | 23,169,136 | |||
Atheros Communications | 84,100 | 1,983,078 | ||||
† | Autodesk | 86,200 | 2,892,010 | |||
BE Aerospace | 237,450 | 3,758,834 | ||||
‡ | China Mobil (Hong Kong) | 311,500 | 3,120,587 | |||
† | Cisco Systems | 147,800 | 3,334,368 | |||
Cognizant Technology Solutions | ||||||
Class A | 101,500 | 2,317,245 | ||||
† | Crown Castle International | 132,600 | 3,841,422 | |||
† | Dell | 62,600 | 1,031,648 | |||
*† | Dolby Laboratories Class A | 33,500 | 1,178,865 | |||
† | EMC | 58,000 | 693,680 | |||
*† | Expedia | 155,503 | 2,349,650 | |||
General Dynamics | 240,558 | 17,709,880 | ||||
† | Google Class A | 29,200 | 11,695,184 | |||
GSI Commerce | 24,600 | 380,808 | ||||
Hewlett-Packard | 21,400 | 989,536 | ||||
Hon Hai Precision Industry GDR | 50,675 | 350,088 | ||||
IAC/InterActive | 11,450 | 199,459 | ||||
Intel | 92,800 | 1,738,144 | ||||
Intuit | 75,600 | 2,389,716 | ||||
*† | Juniper Networks | 64,100 | 1,350,587 | |||
† | Leap Wireless International | 31,700 | 1,207,770 | |||
Lockheed Martin | 170,475 | 18,695,993 | ||||
† | Marvell Technology Group | 179,800 | 1,672,140 | |||
*† | McAfee | 30,500 | 1,035,780 | |||
MEMC Electronic Materials | 11,100 | 313,686 | ||||
*† | MetroPCS Communications | 59,100 | 826,809 | |||
Microsoft | 636,150 | 16,978,844 | ||||
Mobil Telesystems ADR | 19,100 | 1,069,791 | ||||
Netease.com ADR | 119,750 | 2,730,300 | ||||
Nice Systems ADR | 129,500 | 3,527,580 | ||||
NII Holdings | 44,400 | 1,683,648 | ||||
*† | priceline.com | 7,500 | 513,225 | |||
QUALCOMM | 292,949 | 12,588,019 | ||||
† | salesforce.com | 12,000 | 580,800 | |||
* | Satyam Computer Services ADR | 47,900 | 773,585 | |||
Sina | 95,300 | 3,354,560 |
(continues) 37
Statements of net assets
Optimum Large Cap Growth Fund
Number of | Value | ||||||
Shares | (U.S. $) | ||||||
Common Stock (continued) | |||||||
Technology (continued) | |||||||
Skyworks Solutions | 452,400 | $ | 3,782,064 | ||||
Solera Holdings | 112,100 | 3,219,512 | |||||
Sonus Networks | 676,300 | 1,947,744 | |||||
‡* | Tencent Holdings | 192,500 | 1,407,085 | ||||
Tessera Technologies | 126,800 | 2,071,912 | |||||
*† | VeriSign | 92,900 | 2,422,832 | ||||
182,030,925 | |||||||
Transportation – 3.13% | |||||||
CSX | 31,781 | 1,734,289 | |||||
Norfolk Southern | 120,081 | 7,950,563 | |||||
Union Pacific | 237,696 | 16,914,448 | |||||
26,599,300 | |||||||
Utilities – 0.35% | |||||||
† | AES | 97,300 | 1,137,437 | ||||
FirstEnergy | 27,300 | 1,828,827 | |||||
2,966,264 | |||||||
Total Common Stock | |||||||
(cost $853,152,206) | 801,444,761 | ||||||
Principal | |||||||
Amount (U.S. $) | |||||||
¹Discount Note – 0.30% | |||||||
Federal Home Loan Bank 0.10% | |||||||
10/1/08 | $ | 2,546,509 | 2,546,509 | ||||
Total Discount Note | |||||||
(cost $2,546,509) | 2,546,509 | ||||||
Repurchase Agreements** – 4.30% | |||||||
BNP Paribas 0.15%, dated | |||||||
9/30/08, to be repurchased | |||||||
on 10/1/08, repurchase price | |||||||
$36,442,699 (collateralized by | |||||||
U.S. Government obligations, | |||||||
4.875% 8/15/09; with market | |||||||
value $37,193,016) | 36,442,547 | 36,442,547 | |||||
Total Repurchase Agreements | |||||||
(cost $36,442,547) | 36,442,547 | ||||||
Total Value of Securities Before | |||||||
Securities Lending Collateral – 99.03% | |||||||
(cost $892,141,262) | 840,433,817 |
Number of | ||||||||
Shares | ||||||||
Securities Lending Collateral*** – 6.12% | ||||||||
Investment Companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 51,923,119 | 51,923,119 | ||||||
Total Securities Lending Collateral | ||||||||
(cost $51,923,119) | 51,923,119 | |||||||
Total Value of Securities – 105.15% | ||||||||
(cost $944,064,381) | 892,356,936 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (6.12%) | (51,923,119 | ) | ||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 0.97% | 8,195,664 | |||||||
Net Assets Applicable to 87,471,381 | ||||||||
Shares Outstanding – 100.00% | $ | 848,629,481 | ||||||
Net Asset Value – Optimum Large Cap Growth Fund | ||||||||
Class A ($43,291,874 / 4,493,282 Shares) | $9.63 | |||||||
Net Asset Value – Optimum Large Cap Growth Fund | ||||||||
Class B ($7,338,783 / 788,341 Shares) | $9.31 | |||||||
Net Asset Value – Optimum Large Cap Growth Fund | ||||||||
Class C ($162,669,448 / 17,476,948 Shares) | $9.31 | |||||||
Net Asset Value – Optimum Large Cap Growth Fund | ||||||||
Institutional Class ($635,329,376 / 64,712,810 Shares) | $9.82 | |||||||
Components of Net Assets at September 30, 2008: | ||||||||
Shares of beneficial interest | ||||||||
(unlimited authorization – no par) | $ | 957,340,750 | ||||||
Accumulated net investment loss | (791 | ) | ||||||
Accumulated net realized loss on investments | (57,014,808 | ) | ||||||
Net unrealized depreciation of investments | ||||||||
and foreign currencies | (51,695,670 | ) | ||||||
Total net assets | $ | 848,629,481 | ||||||
‡ | Security is being valued based on international fair value pricing. At September 30, 2008, the aggregate amount of international fair value priced securities was $27,417,234, which represented 3.23% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” | |
* | Fully or partially on loan. | |
† | Non income producing security. | |
¹ | The rate shown is the effective yield as of the time of purchase. | |
** | See Note 1 in “Notes to financial statements.” | |
*** | See Note 11 in “Notes to financial statements.” | |
© | Includes $50,077,160 of securities loaned |
38
Summary of Abbreviations: | ||
ADR — American Depositary Receipts | ||
GDR — Global Depositary Receipts | ||
HKD — Hong Kong Dollar | ||
ZAR — South African Rand | ||
USD — United States Dollar | ||
Net Asset Value and Offering Price Per Share – | ||
Optimum Large Cap Growth Fund | ||
Net asset value Class A (A) | $ | 9.63 |
Sales charge (5.75% of offering price) (B) | 0.59 | |
Offering price | $ | 10.22 |
(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 September 30, 2008: | ||||||||||
Foreign Currency Exchange Contracts1 | ||||||||||
Contracts | Unrealized | |||||||||
to Deliver | In Exchange For | Settlement Date | Appreciation | |||||||
HKD | (24,511,849) | USD | 3,157,127 | 10/2/08 | $ 275 | |||||
ZAR | (308,263) | USD | 37,984 | 10/3/08 | 791 | |||||
$1,066 | ||||||||||
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 is reflected in the Fund’s net assets. | ||||||||||
1See Note 7 in “Notes to financial statements.” | ||||||||||
See accompanying notes |
(continues) 39
Statements of net assets
Optimum Large Cap Value Fund
September 30, 2008 (Unaudited)
Number of | Value | |||||
Shares | (U.S. $) | |||||
Common Stock – 96.90% | ||||||
Consumer Discretionary – 10.30% | ||||||
Comcast Class A | 323,100 | $ | 6,342,453 | |||
Disney (Walt) | 199,730 | 6,129,714 | ||||
Gap | 461,700 | 8,209,025 | ||||
* | General Motors | 460,890 | 4,355,411 | |||
Home Depot | 171,100 | 4,429,779 | ||||
Johnson Controls | 95,210 | 2,887,719 | ||||
Macy’s | 145,850 | 2,622,383 | ||||
Mattel | 385,800 | 6,959,832 | ||||
NIKE Class B | 99,810 | 6,677,289 | ||||
Omnicom Group | 151,600 | 5,845,696 | ||||
* | Regal Entertainment Group Class A | 541,900 | 8,551,181 | |||
* | Royal Caribbean Cruises | 151,030 | 3,133,873 | |||
* | Sherwin-Williams | 65,380 | 3,737,121 | |||
Sony ADR | 93,300 | 2,880,171 | ||||
Staples | 102,360 | 2,303,100 | ||||
Time Warner | 197,100 | 2,583,981 | ||||
† | Toll Brothers | 13,920 | 351,202 | |||
‡ | WPP Group (United Kingdom) | 289,170 | 2,340,076 | |||
80,340,006 | ||||||
Consumer Staples – 11.70% | ||||||
Altria Group | 95,010 | 1,884,998 | ||||
CVS Caremark | 179,191 | 6,031,569 | ||||
‡ | Diageo (United Kingdom) | 312,776 | 5,335,343 | |||
Kellogg | 96,190 | 5,396,259 | ||||
Kimberly-Clark | 193,250 | 12,530,330 | ||||
Kraft Foods Class A | 387,650 | 12,695,538 | ||||
† | Lorillard | 32,900 | 2,340,835 | |||
Molson Coors Brewing Class B | 32,940 | 1,539,945 | ||||
‡ | Nestle (Switzerland) | 139,871 | 6,044,880 | |||
Pepsi Bottling Group | 13,900 | 405,463 | ||||
PepsiCo | 68,410 | 4,875,581 | ||||
† | Philip Morris International | 269,270 | 12,951,887 | |||
Procter & Gamble | 91,230 | 6,357,819 | ||||
Sara Lee | 724,000 | 9,144,120 | ||||
* | Whole Foods Market | 185,800 | 3,721,574 | |||
91,256,141 | ||||||
Energy – 11.82% | ||||||
Apache | 57,280 | 5,973,158 | ||||
BP ADR | 28,900 | 1,449,913 | ||||
Chevron | 247,802 | 20,438,709 | ||||
ConocoPhillips | 247,840 | 18,154,280 | ||||
Devon Energy | 69,020 | 6,294,624 | ||||
EOG Resources | 43,210 | 3,865,567 | ||||
Exxon Mobil | 162,030 | 12,583,250 | ||||
Hess | 68,690 | 5,638,075 | ||||
Marathon Oil | 71,290 | 2,842,332 | ||||
Total ADR | 173,970 | 10,556,500 | ||||
Valero Energy | 112,000 | 3,393,600 | ||||
Williams Companies | 40,880 | 966,812 | ||||
92,156,820 | ||||||
Financials – 19.03% | ||||||
Allstate | 276,560 | 12,754,947 | ||||
Aon | 34,030 | 1,529,989 | ||||
Bank of America | 232,553 | 8,139,355 | ||||
Bank of New York Mellon | 261,996 | 8,535,830 | ||||
* | Blackstone Group | 403,040 | 6,182,634 | |||
Chubb | 58,460 | 3,209,454 | ||||
Citigroup | 346,110 | 7,098,716 | ||||
‡ | Deutsche Boerse (Germany) | 4,620 | 427,799 | |||
Franklin Resources | 47,830 | 4,215,258 | ||||
Genworth Financial | 218,290 | 1,879,477 | ||||
Goldman Sachs Group | 73,780 | 9,443,840 | ||||
Hartford Financial Services Group | 28,160 | 1,154,278 | ||||
* | Hospitality Properties Trust | 135,500 | 2,780,460 | |||
Invesco | 35,240 | 739,335 | ||||
JPMorgan Chase | 399,217 | 18,643,434 | ||||
Merrill Lynch | 153,800 | 3,891,140 | ||||
* | MetLife | 231,800 | 12,980,800 | |||
* | New York Community Bancorp | 430,400 | 7,226,416 | |||
NYSE Euronext | 52,500 | 2,056,950 | ||||
PNC Financial Services Group | 58,290 | 4,354,263 | ||||
* | Prudential Financial | 45,950 | 3,308,400 | |||
State Street | 125,440 | 7,135,027 | ||||
* | SunTrust Banks | 86,870 | 3,908,281 | |||
Travelers | 242,813 | 10,975,148 | ||||
† | Visa Class A | 14,760 | 906,116 | |||
XL Capital Class A | 275,400 | 4,940,676 | ||||
148,418,023 | ||||||
Health Care – 8.10% | ||||||
Abbott Laboratories | 38,140 | 2,196,101 | ||||
Aetna | 103,100 | 3,722,941 | ||||
† | Boston Scientific | 60,500 | 742,335 | |||
Bristol-Myers Squibb | 266,600 | 5,558,610 | ||||
‡ | GlaxoSmithKline (United Kingdom) | 135,470 | 2,935,609 | |||
Johnson & Johnson | 84,880 | 5,880,486 | ||||
Merck | 194,790 | 6,147,572 | ||||
Pfizer | 633,670 | 11,684,875 | ||||
†* | Tenet Healthcare | 1,278,530 | 7,095,842 | |||
UnitedHealth Group | 66,470 | 1,687,673 | ||||
† | Watson Pharmaceuticals | 231,600 | 6,600,600 | |||
† | WellPoint | 40,990 | 1,917,102 | |||
Wyeth | 188,990 | 6,981,291 | ||||
63,151,037 | ||||||
Industrials – 11.74% | ||||||
3M | 54,600 | 3,729,726 | ||||
* | Avery Dennison | 112,000 | 4,981,760 | |||
Burlington Northern Santa Fe | 38,640 | 3,571,495 | ||||
Danaher | 12,620 | 875,828 | ||||
Eaton | 41,240 | 2,316,863 | ||||
General Electric | 428,400 | 10,924,200 | ||||
Grainger (W.W.) | 50,140 | 4,360,676 | ||||
Honeywell International | 104,800 | 4,354,440 | ||||
Ingersoll-Rand Class A | 66,640 | 2,077,169 |
40
Number of | Value | |||||
Shares | (U.S. $) | |||||
Common Stock (continued) | ||||||
Industrials (continued) | ||||||
Lockheed Martin | 154,690 | $ | 16,964,852 | |||
* | Masco | 92,970 | 1,667,882 | |||
Northrop Grumman | 145,620 | 8,815,835 | ||||
Raytheon | 20,870 | 1,116,754 | ||||
Timken | 29,050 | 823,568 | ||||
Tyco Electronics | 219,500 | 6,071,370 | ||||
Tyco International | 181,300 | 6,349,126 | ||||
United Technologies | 131,690 | 7,909,301 | ||||
Waste Management | 147,800 | 4,654,222 | ||||
91,565,067 | ||||||
Information Technology – 9.01% | ||||||
Accenture Class A | 214,090 | 8,135,420 | ||||
Automatic Data Processing | 22,880 | 978,120 | ||||
† | Cisco Systems | 49,410 | 1,114,690 | |||
† | Dell | 228,400 | 3,764,032 | |||
Hewlett-Packard | 137,860 | 6,374,646 | ||||
Intel | 584,680 | 10,951,056 | ||||
International Business Machines | 164,600 | 19,251,616 | ||||
† | LSI | 503,300 | 2,697,688 | |||
Motorola | 721,700 | 5,152,938 | ||||
† | Oracle | 502,470 | 10,205,166 | |||
Western Union | 68,380 | 1,686,935 | ||||
70,312,307 | ||||||
Materials – 5.97% | ||||||
Air Products & Chemicals | 36,090 | 2,471,804 | ||||
Alcoa | 192,400 | 4,344,392 | ||||
* | duPont (E.I.) deNemours | 307,400 | 12,388,220 | |||
* | Louisiana-Pacific | 281,200 | 2,615,160 | |||
MeadWestvaco | 297,300 | 6,930,063 | ||||
Packaging Corp. of America | 432,900 | 10,034,622 | ||||
PPG Industries | 133,160 | 7,765,891 | ||||
46,550,152 | ||||||
Telecommunications – 5.09% | ||||||
AT&T | 731,130 | 20,413,149 | ||||
Embarq | 14,116 | 572,404 | ||||
* | Qwest Communications International | 2,148,200 | 6,938,686 | |||
Rogers Communications Class B | 56,570 | 1,834,818 | ||||
Verizon Communications | 52,360 | 1,680,232 | ||||
‡ | Vodafone Group (United Kingdom) | 1,630,767 | 3,601,133 | |||
Windstream | 428,900 | 4,692,166 | ||||
39,732,588 | ||||||
Utilities – 4.14% | ||||||
Ameren | 80,800 | 3,153,624 | ||||
American Electric Power | 234,130 | 8,681,540 | ||||
* | Dominion Resources | 135,336 | 5,789,674 | |||
Entergy | 34,890 | 3,105,559 | ||||
FPL Group | 61,740 | 3,105,522 | ||||
PG&E | 75,570 | 2,830,097 | ||||
PPL | 76,160 | 2,819,443 | ||||
Public Service Enterprise Group | 86,690 | 2,842,565 | ||||
32,328,024 | ||||||
Total Common Stock | ||||||
(cost $844,346,488) | 755,810,165 |
Principal | ||||||||
Amount (U.S. $) | ||||||||
¹Discount Note – 0.19% | ||||||||
Federal Home Loan Bank | ||||||||
0.10% 10/1/08 | $ | 1,520,956 | 1,520,956 | |||||
Total Discount Note | ||||||||
(cost $1,520,956) | 1,520,956 | |||||||
Repurchase Agreements** – 2.79% | ||||||||
BNP Paribas 0.15%, dated | ||||||||
9/30/08, to be repurchased | ||||||||
on 10/1/08, repurchase price | ||||||||
$21,766,168 (collateralized by | ||||||||
U.S. Government obligations, | ||||||||
4.875% 8/15/09; with market | ||||||||
value $22,214,310) | 21,766,077 | 21,766,077 | ||||||
Total Repurchase Agreements | ||||||||
(cost $21,766,077) | 21,766,077 | |||||||
Total Value of Securities Before Securities | ||||||||
Lending Collateral – 99.88% | ||||||||
(cost $867,633,521) | 779,097,198 | |||||||
Number of | ||||||||
Shares | ||||||||
Securities Lending Collateral*** – 6.63% | ||||||||
Investment Companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 51,748,936 | 51,748,936 | ||||||
Total Securities Lending Collateral | ||||||||
(cost $51,748,936) | 51,748,936 | |||||||
Total Value of Securities – 106.51% | ||||||||
(cost $919,382,457) | 830,846,134 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (6.63%) | (51,748,936 | ) | ||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 0.12% | 926,458 | |||||||
Net Assets Applicable to 80,304,880 | ||||||||
Shares Outstanding – 100.00% | $ | 780,023,656 | ||||||
Net Asset Value – Optimum Large Cap Value Fund | ||||||||
Class A ($44,166,275 / 4,545,162 Shares) | $9.72 | |||||||
Net Asset Value – Optimum Large Cap Value Fund | ||||||||
Class B ($7,647,663 / 794,227 Shares) | $9.63 | |||||||
Net Asset Value – Optimum Large Cap Value Fund | ||||||||
Class C ($168,933,732 / 17,549,636 Shares) | $9.63 | |||||||
Net Asset Value – Optimum Large Cap Value Fund | ||||||||
Institutional Class ($559,275,986 / 57,415,855 Shares) | $9.74 |
(continues) 41
Statements of net assets
Optimum Large Cap Value Fund
Components of Net Assets at September 30, 2008: | ||||||
Shares of beneficial interest | ||||||
(unlimited authorization – no par) | $ | 903,737,847 | ||||
Undistributed net investment income | 6,351,648 | |||||
Accumulated net realized loss on investments | (41,535,040 | ) | ||||
Net unrealized depreciation of investments | ||||||
and foreign currencies | (88,530,799 | ) | ||||
Total net assets | $ | 780,023,656 | ||||
* | Fully or partially on loan. | |||||
† | Non income producing security. | |||||
‡ | Security is being valued based on international fair value pricing. At September 30, 2008, the aggregate amount of international fair value priced securities was $20,684,840, which represented 2.65% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” | |||||
¹ | The rate shown is the effective yield as of the time of purchase. | |||||
** | See Note 1 in “Notes to financial statements.” | |||||
*** | See Note 11 in “Notes to financial statements.” | |||||
© | Includes $48,138,763 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) | $ 9.72 | |||||
Sales charge (5.75% of offering price) (B) | 0.59 | |||||
Offering price | $10.31 | |||||
(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 |
42
Optimum Small-Mid Cap Growth Fund
September 30, 2008 (Unaudited)
Number of | ||||||
Shares | Value | |||||
Common Stock – 98.39% | ||||||
Basic Industry/Capital Goods – 18.34% | ||||||
* | Acuity Brands | 18,500 | $ | 772,560 | ||
Albany International | 13,000 | 355,290 | ||||
* | American Ecology | 15,940 | 441,060 | |||
AMETEK | 47,500 | 1,936,575 | ||||
† | Atwood Oceanics | 34,000 | 1,237,600 | |||
Cubic | 8,300 | 204,097 | ||||
Cytec Industries | 16,000 | 622,560 | ||||
Donaldson | 34,000 | 1,424,940 | ||||
*† | Drew Industries | 15,000 | 256,650 | |||
Flowserve | 3,770 | 334,663 | ||||
FMC | 9,240 | 474,844 | ||||
Greif Class A | 8,000 | 524,960 | ||||
† | Haynes International | 13,000 | 608,790 | |||
* | Herman Miller | 36,000 | 880,920 | |||
† | Itron | 4,200 | 371,826 | |||
* | Kaydon | 10,000 | 450,600 | |||
‡ | Kingboard Chemicals Holdings | 63,660 | 217,372 | |||
Koppers Holdings | 7,000 | 261,870 | ||||
Lincoln Electric Holdings | 7,000 | 450,170 | ||||
† | Littelfuse | 10,000 | 297,300 | |||
† | Mettler-Toledo International | 20,000 | 1,959,999 | |||
* | Mine Safety Appliances | 15,600 | 594,672 | |||
† | Mobile Mini | 12,200 | 235,826 | |||
† | Moog Class A | 15,000 | 643,200 | |||
* | Nordson | 31,000 | 1,522,410 | |||
Quaker Chemical | 2,100 | 59,766 | ||||
† | Quanta Services | 44,000 | 1,188,440 | |||
† | Ralcorp Holdings | 7,320 | 493,441 | |||
* | Simpson Manufacturing | 14,900 | 403,641 | |||
† | Solutia | 57,854 | 809,956 | |||
† | Tetra Tech | 18,890 | 454,493 | |||
Texas Industries | 7,000 | 286,020 | ||||
* | Titan International | 13,930 | 296,988 | |||
* | Toro | 8,000 | 330,400 | |||
† | Varian | 7,000 | 300,300 | |||
† | Waste Connections | 52,260 | 1,792,518 | |||
23,496,717 | ||||||
Business Services – 6.63% | ||||||
Administaff | 20,000 | 544,400 | ||||
† | Aecom Technology | 28,610 | 699,228 | |||
† | Alliance Data Systems | 4,290 | 271,900 | |||
*† | Concur Technologies | 55,050 | 2,106,213 | |||
† | Constant Contact | 5,050 | 86,204 | |||
* | FactSet Research Systems | 8,140 | 425,315 | |||
Global Payments | 17,000 | 762,620 | ||||
† | Hackett Group | 42,800 | 232,832 | |||
Interactive Data | 16,600 | 418,652 | ||||
* | Knoll | 25,000 | 378,000 | |||
Liberty Acquisition Holding | 49,500 | 440,550 | ||||
† | Net 1 UEPS Technologies | 16,600 | 370,678 | |||
† | Resources Connection | 9,850 | 221,921 | |||
† | SkillSoft ADR | 75,000 | 784,500 | |||
† | TrueBlue | 20,000 | 323,200 | |||
Viad | 15,000 | 431,850 | ||||
8,498,063 | ||||||
Consumer Durables – 3.80% | ||||||
*† | Cavco Industries | 40,300 | 1,456,844 | |||
*† | Champion Enterprises | 168,400 | 934,620 | |||
*† | Jarden | 42,990 | 1,008,116 | |||
Snap-On | 13,180 | 694,059 | ||||
* | Thor Industries | 20,000 | 496,400 | |||
* | Winnebago Industries | 22,000 | 284,240 | |||
4,874,279 | ||||||
Consumer Non-Durables – 9.03% | ||||||
Abercrombie & Fitch Class A | 18,200 | 717,990 | ||||
Advance Auto Parts | 17,370 | 688,894 | ||||
‡*† | Asics | 41,170 | 320,075 | |||
*† | Big Lots | 17,770 | 494,539 | |||
*† | BJ’s Wholesale Club | 19,410 | 754,273 | |||
Christopher & Banks | 11,700 | 89,739 | ||||
† | Dick’s Sporting Goods | 15,340 | 300,357 | |||
‡† | Dufry Group | 4,896 | 226,248 | |||
Foot Locker | 23,170 | 374,427 | ||||
*† | J. Crew Group | 29,050 | 829,959 | |||
* | Oxford Industries | 31,000 | 800,730 | |||
* | Pool | 51,000 | 1,189,830 | |||
*† | Rush Enterprises Class A | 30,000 | 384,000 | |||
* | Talbots | 56,492 | 740,045 | |||
*† | True Religion Apparel | 80,300 | 2,075,754 | |||
† | Urban Outfitters | 48,000 | 1,529,760 | |||
*† | Zumiez | 3,420 | 56,362 | |||
11,572,982 | ||||||
Consumer Services – 3.32% | ||||||
*† | Bally Technologies | 19,000 | 575,320 | |||
Ctrip.com International ADR | 2,830 | 109,266 | ||||
*† | Entravision Communications | 70,000 | 188,300 | |||
*† | Gaylord Entertainment | 10,000 | 293,700 | |||
*† | ITT Educational Services | 19,970 | 1,615,773 | |||
*† | Marvel Entertainment | 19,400 | 662,316 | |||
*† | Pinnacle Entertainment | 50,000 | 378,000 | |||
† | Salem Communications Class A | 45,000 | 56,250 | |||
*† | Sonic | 10,100 | 147,157 | |||
† | Spanish Broadcasting | |||||
Systems Class A | 36,400 | 13,832 | ||||
*† | Vail Resorts | 6,000 | 209,700 | |||
4,249,614 | ||||||
Energy – 5.32% | ||||||
† | Arena Resources | 7,690 | 298,757 | |||
Carbo Ceramics | 5,210 | 268,888 | ||||
† | Carrizo Oil & Gas | 25,000 | 906,749 | |||
† | Dril-Quip | 7,320 | 317,615 | |||
† | Encore Acquisition | 7,000 | 292,460 | |||
† | FMC Technologies | 42,000 | 1,955,099 | |||
† | Forest Oil | 10,150 | 503,440 | |||
Foundation Coal Holdings | 8,340 | 296,737 |
(continues) 43
Statements of net assets
Optimum Small-Mid Cap Growth Fund
Number of | ||||||
Shares | Value | |||||
Common Stock (continued) | ||||||
Energy (continued) | ||||||
† | Hercules Offshore | 12,210 | $ | 185,104 | ||
† | Lupatech | 5,800 | 109,768 | |||
Penn Virginia | 4,700 | 251,168 | ||||
*† | Quicksilver Resources | 22,800 | 447,564 | |||
St. Mary Land & Exploration | 9,770 | 348,301 | ||||
† | Tesco | 8,800 | 184,272 | |||
† | TETRA Technologies | 33,000 | 457,050 | |||
6,822,972 | ||||||
Financials – 11.35% | ||||||
* | Aaron Rents | 20,000 | 541,400 | |||
Allied World Assurance Holdings | 14,080 | 500,122 | ||||
*† | AmeriCredit | 19,500 | 197,535 | |||
† | Arch Capital Group | 600 | 43,818 | |||
* | Associated Banc-Corp | 18,000 | 359,100 | |||
Berkshire Hills Bancorp | 28,300 | 905,600 | ||||
Comerica | 3,670 | 120,339 | ||||
Electro Rent | 37,000 | 496,910 | ||||
GATX | 25,000 | 989,250 | ||||
† | Guaranty Bancorp | 70,000 | 427,000 | |||
*† | H&E Equipment Services | 50,000 | 483,000 | |||
HCC Insurance Holdings | 28,050 | 757,350 | ||||
International Bancshares | 6,820 | 184,140 | ||||
K-Fed Bancorp | 80,000 | 732,800 | ||||
* | Lakeland Financial | 24,000 | 527,040 | |||
* | MB Financial | 34,000 | 1,124,380 | |||
* | Old Second Bancorp | 8,400 | 155,568 | |||
† | ProAssurance | 6,360 | 356,160 | |||
† | Signature Bank | 5,700 | 198,816 | |||
† | SVB Financial Group | 15,000 | 868,800 | |||
* | TCF Financial | 45,000 | 810,000 | |||
Tower Group | 20,000 | 471,200 | ||||
* | Trico Bancshares | 30,000 | 645,900 | |||
* | Valley National Bancorp | 63,000 | 1,320,480 | |||
ViewPoint Financial Group | 67,000 | 1,172,500 | ||||
*† | World Acceptance | 4,500 | 162,000 | |||
14,551,208 | ||||||
Health Care – 13.03% | ||||||
† | Alexion Pharmaceuticals | 21,150 | 831,195 | |||
† | Arena Pharmaceuticals | 25,000 | 125,000 | |||
*† | Array Biopharma | 20,000 | 153,600 | |||
*† | Auxilium Pharmaceuticals | 17,900 | 579,960 | |||
† | BioMarin Pharmaceuticals | 33,500 | 887,414 | |||
† | Celera | 26,040 | 402,318 | |||
† | Cephalon | 6,000 | 464,940 | |||
*† | Cepheid | 20,000 | 276,600 | |||
† | Charles River Laboratories International | 6,940 | 385,378 | |||
*† | Cougar Biotechnology | 6,670 | 222,711 | |||
*† | Cubist Pharmaceuticals | 10,750 | 238,973 | |||
*† | deCODE genetics | 14,300 | 5,577 | |||
*† | Eclipsys | 9,400 | 196,930 | |||
† | Health Net | 12,520 | 295,472 | |||
*† | HealthSouth | 41,220 | 759,685 | |||
† | HealthSpring | 14,060 | 297,510 | |||
† | Human Genome Sciences | 27,100 | 172,085 | |||
† | ICON ADR | 15,200 | 581,400 | |||
† | Idexx Laboratories | 7,500 | 411,000 | |||
† | Illumina | 11,000 | 445,830 | |||
† | Immucor | 18,000 | 575,280 | |||
Invacare | 4,800 | 115,872 | ||||
*† | IsoRay | 140,000 | 84,000 | |||
*† | Luminex | 11,000 | 275,110 | |||
*† | Medarex | 30,000 | 194,100 | |||
† | Medicines | 11,340 | 263,315 | |||
=@†∏ | Medicure Restricted PIPE | 74,014 | — | |||
* | Meridian Bioscience | 16,000 | 464,640 | |||
*† | Mindray Medical International ADR | 6,040 | 203,729 | |||
*† | Myriad Genetics | 8,000 | 519,040 | |||
† | Nektar Therapeutics | 25,000 | 89,750 | |||
*† | Neurogen | 40,000 | 9,596 | |||
*† | Onyx Pharmaceuticals | 6,960 | 251,813 | |||
* | Owens & Minor | 12,520 | 607,220 | |||
Perrigo | 9,320 | 358,447 | ||||
Pharmaceutical Product | ||||||
Development | 18,030 | 745,541 | ||||
*† | PSS World Medical | 42,000 | 819,000 | |||
*† | Psychiatric Solutions | 30,320 | 1,150,643 | |||
† | QLT | 35,000 | 114,100 | |||
* | Quality Systems | 12,000 | 507,120 | |||
† | Regeneron Pharmaceuticals | 11,390 | 248,644 | |||
† | Seattle Genetics | 34,900 | 373,430 | |||
‡ | SSL International | 29,700 | 239,318 | |||
† | United Therapeutics | 3,500 | 368,095 | |||
† | Volcano | 22,350 | 386,432 | |||
16,697,813 | ||||||
Real Estate – 1.03% | ||||||
BioMed Realty Trust | 18,000 | 476,100 | ||||
* | Corporate Office Properties Trust | 13,000 | 524,550 | |||
Extra Space Storage | 21,000 | 322,560 | ||||
1,323,210 | ||||||
Technology – 23.77% | ||||||
† | American Reprographics | 30,000 | 517,500 | |||
† | American Tower Class A | 32,400 | 1,165,428 | |||
Amphenol Class A | 20,000 | 802,800 | ||||
† | ANSYS | 22,000 | 833,140 | |||
*† | Ariba | 44,260 | 625,394 | |||
*† | Atheros Communications | 21,870 | 515,695 | |||
† | Axsys Technologies | 3,140 | 185,072 | |||
† | CACI International | 12,090 | 605,709 | |||
† | Cavium Networks | 11,160 | 157,133 | |||
† | Cellcom Israel | 22,820 | 685,969 | |||
† | Crown Castle International | 18,400 | 533,048 | |||
*† | Equinix | 5,140 | 357,024 | |||
*† | ESCO Technologies | 25,000 | 1,204,250 | |||
*† | FLIR Systems | 117,770 | 4,524,723 | |||
*† | Focus Media Holding ADR | 14,676 | 418,413 |
44
Number of | ||||||||
Shares | Value | |||||||
Common Stock (continued) | ||||||||
Technology (continued) | ||||||||
† | II-VI | 17,000 | $ | 657,220 | ||||
† | Informatica | 31,000 | 402,690 | |||||
† | Integrated Device Technology | 83,000 | 645,740 | |||||
† | IPG Photonics | 63,000 | 1,229,130 | |||||
† | LDK Solar ADR | 4,740 | 142,295 | |||||
† | McAfee | 11,400 | 387,144 | |||||
*† | Microsemi | 56,780 | 1,446,754 | |||||
† | MSCI Class A | 7,840 | 188,160 | |||||
† | Netease.com ADR | 24,400 | 556,320 | |||||
† | Nice Systems ADR | 29,390 | 800,584 | |||||
† | Novell | 140,400 | 721,656 | |||||
† | NutriSystem | 1,800 | 31,896 | |||||
*† | ON Semiconductor | 171,550 | 1,159,678 | |||||
† | Plexus | 16,000 | 331,200 | |||||
*† | Polycom | 50,000 | 1,156,500 | |||||
† | Radiant Systems | 35,000 | 304,150 | |||||
† | Red Hat | 25,060 | 377,654 | |||||
*† | RightNow Technologies | 17,980 | 226,009 | |||||
*† | Skyworks Solutions | 45,650 | 381,634 | |||||
† | Solera Holdings | 21,770 | 625,234 | |||||
† | SRA International Class A | 17,000 | 384,710 | |||||
*† | Stratasys | 25,000 | 436,750 | |||||
† | Supertex | 21,800 | 613,888 | |||||
† | Switch & Data Facilities | 25,000 | 311,250 | |||||
† | Sykes Enterprises | 21,540 | 473,018 | |||||
† | Teledyne Technologies | 7,700 | 440,132 | |||||
† | Tellabs | 187,000 | 759,220 | |||||
† | Trimble Navigation | 20,000 | 517,200 | |||||
† | TW Telecom | 88,000 | 914,320 | |||||
‡† | UBISOFT Entertainment | 2,957 | 205,668 | |||||
† | Virtusa | 25,494 | 165,966 | |||||
† | Zebra Technologies | 12,000 | 334,200 | |||||
30,459,268 | ||||||||
Transportation – 2.77% | ||||||||
† | CAI International | 40,000 | 442,400 | |||||
‡† | Dockwise | 81,000 | 153,350 | |||||
* | Heartland Express | 76,800 | 1,191,936 | |||||
† | HUB Group Class A | 14,740 | 554,961 | |||||
Hunt (J.B.) Transport Services | 8,740 | 291,654 | ||||||
† | Kansas City Southern | 10,990 | 487,516 | |||||
Landstar System | 5,470 | 241,008 | ||||||
* | Werner Enterprises | 8,600 | 186,706 | |||||
3,549,531 | ||||||||
Total Common Stock | ||||||||
(cost $128,745,153) | 126,095,657 | |||||||
Exchange Traded Fund – 0.12% | ||||||||
* | iShares Russell 2000 Growth | |||||||
Index Fund | 2,200 | 155,584 | ||||||
Total Exchange Traded Fund | ||||||||
(cost $174,888) | 155,584 | |||||||
Warrant – 0.00% | ||||||||
*=† | Isoray, exercise price $5.00, | |||||||
expiration date 3/22/11 | 28,000 | — | ||||||
Total Warrant | ||||||||
(cost $0) | — | |||||||
Principal | ||||||||
Amount | ||||||||
¹Discount Note – 0.01% | ||||||||
Federal Home Loan Bank | ||||||||
0.10% 10/1/08 | $ | 9,340 | 9,340 | |||||
Total Discount Note | ||||||||
(cost $9,340) | 9,340 | |||||||
Repurchase Agreements** – 0.10% | ||||||||
BNP Paribas 0.15%, dated | ||||||||
9/30/08, to be repurchased | ||||||||
on 10/1/08, repurchase price | ||||||||
$133,661 (collateralized by | ||||||||
U.S. Government obligations, | ||||||||
4.875% 8/15/09; with market | ||||||||
value $136,412) | 133,660 | 133,660 | ||||||
Total Repurchase Agreements | ||||||||
(cost $133,660) | 133,660 | |||||||
Total Value of Securities Before Securities | ||||||||
Lending Collateral – 98.62% | ||||||||
(cost $129,063,041) | 126,394,241 | |||||||
Number of | ||||||||
Shares | ||||||||
Securities Lending Collateral*** – 19.63% | ||||||||
Investment companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 25,153,980 | 25,153,980 | ||||||
Total Securities Lending Collateral | ||||||||
(cost $25,153,980) | 25,153,980 | |||||||
Total Value of Securities – 118.25% | ||||||||
(cost $154,217,021) | 151,548,221 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (19.63%) | (25,153,980 | ) | ||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 1.38% | 1,763,015 | |||||||
Net Assets Applicable to 11,996,649 | ||||||||
Shares Outstanding – 100.00% | $ | 128,157,256 | ||||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||||
Class A ($8,269,377 / 777,468 Shares) | $10.64 | |||||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||||
Class B ($1,395,817 / 135,814 Shares) | $10.28 | |||||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||||
Class C ($29,681,763 / 2,888,177 Shares) | $10.28 | |||||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||||
Institutional Class ($88,810,299 / 8,195,190 Shares) | $10.84 |
(continues) 45
Statements of net assets
Optimum Small-Mid Cap Growth Fund
Components of Net Assets at September 30, 2008: | |||
Shares of beneficial interest | |||
(unlimited authorization – no par) | $ | 142,286,481 | |
Accumulated net realized loss on investments | (11,460,424 | ) | |
Net unrealized depreciation of investments | (2,668,801 | ) | |
Total net assets | $ | 128,157,256 |
* | Fully or partially on loan. |
† | Non income producing security. |
‡ | Security is being valued based on international fair value pricing. At September 30, 2008, the aggregate amount of international fair value priced securities was $1,362,031, which represented 1.06% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” |
= | Security is being fair valued in accordance with the Fund’s fair valuation policy. At September 30, 2008, the aggregate amount of fair valued securities was $0, which represented 0.00% of the Fund’s net assets. See Note in “Notes to financial statements.” |
@ | Illiquid security. At September 30, 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.” |
P | Restricted Security. These investments are in securities not registered under the Securities Act of 1933, as amended, and have certain restrictions on resale which may limit their liquidity. At September 30, 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.” |
¹ | The rate shown is the effective yield at the time of purchase. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $24,086,734 of securities loaned. |
Summary of Abbreviations:
ADR — American Depositary Receipt
PIPE — Private Investment in Public Equity
Net Asset Value and Offering Price Per Share – | ||
Optimum Small-Mid Cap Growth Fund | ||
Net asset value Class A (A) | $ | 10.64 |
Sales charge (5.75% of offering price) (B) | 0.65 | |
Offering price | $ | 11.29 |
(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
46
Optimum Small-Mid Cap Value Fund
September 30, 2008 (Unaudited)
Number of | |||||
Shares | Value | ||||
Common Stock – 91.29% | |||||
Basic Industry – 16.62% | |||||
Albany International | 62,000 | $ | 1,694,460 | ||
AMETEK | 10,500 | 428,085 | |||
Ashland | 65,300 | 1,909,372 | |||
* | Brady Class A | 41,000 | 1,446,480 | ||
Carlisle Companies | 35,000 | 1,048,950 | |||
Chemtura | 53,000 | 241,680 | |||
Crane | 33,000 | 980,430 | |||
Cytec Industries | 34,000 | 1,322,940 | |||
* | Eastman Chemical | 15,000 | 825,900 | ||
Hercules | 116,600 | 2,307,513 | |||
Kaiser Aluminum | 11,000 | 472,450 | |||
*† | Kapstone Paper & Packaging | 170,000 | 1,079,500 | ||
† | Material Sciences | 78,000 | 448,500 | ||
† | NCI Building Systems | 16,000 | 508,000 | ||
† | OM Group | 17,000 | 382,500 | ||
Quanex | 25,000 | 381,000 | |||
† | Solutia | 44,000 | 616,000 | ||
* | Spartech | 70,000 | 693,000 | ||
* | Tronox Class A | 27,900 | 4,743 | ||
Tronox Class B | 38,500 | 4,043 | |||
16,795,546 | |||||
Business Services – 10.18% | |||||
Courier | 16,983 | 345,774 | |||
Deluxe | 37,000 | 532,430 | |||
Donnelley (R.R.) & Sons | 27,000 | 662,310 | |||
Ennis | 27,890 | 431,179 | |||
Heidrick & Struggles International | 7,200 | 217,080 | |||
*† | Hudson Highland Group | 155,000 | 1,077,250 | ||
IKON Office Solutions | 51,500 | 876,015 | |||
infoGROUP | 22,900 | 151,369 | |||
* | Kelly Services | 45,400 | 864,870 | ||
† | MPS Group | 95,000 | 957,600 | ||
*† | PHH | 50,700 | 673,803 | ||
*† | R.H. Donnelley | 8,200 | 16,318 | ||
† | Spherion | 157,000 | 764,590 | ||
† | TrueBlue | 41,000 | 662,560 | ||
*† | Valassis Communications | 148,000 | 1,281,680 | ||
† | WESCO International | 24,000 | 772,320 | ||
10,287,148 | |||||
Capital Spending – 5.58% | |||||
* | Acuity Brands | 32,000 | 1,336,320 | ||
* | Granite Construction | 13,300 | 476,406 | ||
Hardinge | 3,200 | 40,640 | |||
Hubbell Class B | 21,500 | 753,575 | |||
Kennametal | 58,000 | 1,572,960 | |||
† | Miller Industries | 100,500 | 744,705 | ||
* | Tennant | 8,300 | 284,358 | ||
Wabash National | 45,600 | 430,920 | |||
5,639,884 | |||||
Consumer Cyclical – 6.33% | |||||
Barnes Group | 57,000 | 1,152,540 | |||
* | Ethan Allen Interiors | 47,800 | 1,339,356 | ||
*† | Exide Technologies | 40,090 | 295,864 | ||
* | Furniture Brands International | 42,000 | 441,840 | ||
* | Hooker Furniture | 25,752 | 457,098 | ||
Knoll | 15,000 | 226,800 | |||
Leggett & Platt | 47,000 | 1,024,130 | |||
* | Lifetime Brands | 47,000 | 458,250 | ||
Stanley Works | 24,000 | 1,001,760 | |||
6,397,638 | |||||
Consumer Services – 13.61% | |||||
Asbury Automotive Group | 13,300 | 153,216 | |||
*† | AutoNation | 48,700 | 547,388 | ||
*† | Collective Brands | 36,000 | 659,160 | ||
*† | Corinthian Colleges | 18,400 | 276,000 | ||
Delta Apparel | 41,300 | 344,855 | |||
† | Eddie Bauer Holdings | 28,400 | 151,940 | ||
Foot Locker | 80,000 | 1,292,800 | |||
*† | Genesco | 14,300 | 478,764 | ||
† | Great Atlantic & Pacific Tea | 7,155 | 77,417 | ||
* | Group 1 Automotive | 13,500 | 293,355 | ||
Ingles Markets | 16,150 | 368,705 | |||
* | Jones Apparel Group | 35,400 | 655,254 | ||
* | K-Swiss | 11,300 | 196,620 | ||
† | Maidenform Brands | 73,300 | 1,063,583 | ||
Monaco Coach | 21,695 | 42,305 | |||
† | Pacific Sunwear of California | 151,600 | 1,020,268 | ||
Phillips-Van Heusen | 14,700 | 557,277 | |||
† | Quiksilver | 158,800 | 911,512 | ||
† | Rent-A-Center | 52,600 | 1,171,928 | ||
*† | RSC Holdings | 58,000 | 658,880 | ||
† | Rush Enterprises Class A | 49,500 | 633,600 | ||
*† | Russ Berrie & Co. | 6,000 | 46,020 | ||
* | Sotheby‘s | 46,400 | 930,784 | ||
† | Sturm Ruger & Co. | 55,900 | 387,946 | ||
† | Warnaco Group | 10,900 | 493,661 | ||
*† | Westwood One | 608,900 | 334,895 | ||
13,748,133 | |||||
Consumer Staples – 0.45% | |||||
* | Chiquita Brands International | 28,775 | 454,933 | ||
454,933 | |||||
Energy – 2.87% | |||||
† | Callon Petroleum | 19,700 | 355,191 | ||
* | CARBO Ceramics | 3,091 | 159,527 | ||
Foundation Coal Holdings | 16,800 | 597,744 | |||
Gulf Island Fabrication | 7,660 | 264,040 | |||
† | Newpark Resources | 24,050 | 175,565 | ||
Southern Union | 54,000 | 1,115,099 | |||
† | Southwestern Energy | 7,440 | 227,218 | ||
2,894,384 | |||||
Financial Services – 8.46% | |||||
* | American Equity Investment | ||||
Life Holding | 51,720 | 387,900 | |||
CFS Bancorp | 6,445 | 59,616 |
(continues) 47
Statements of net assets
Optimum Small-Mid Cap Value Fund
Number of | ||||||
Shares | Value | |||||
Common Stock (continued) | ||||||
Financial Services (continued) | ||||||
* | City National | 4,100 | $ | 222,630 | ||
† | Conseco | 21,100 | 74,272 | |||
Employers Holdings | 63,000 | 1,094,940 | ||||
* | First Horizon National | 82,699 | 785,643 | |||
† | FPIC Insurance Group | 10,835 | 556,811 | |||
Hanover Insurance Group | 18,000 | 819,360 | ||||
Horace Mann Educators | 26,950 | 346,847 | ||||
† | LaBranche & Co. | 62,060 | 279,270 | |||
* | Old National Bancorp | 20,650 | 413,413 | |||
† | PMA Capital Class A | 36,000 | 317,520 | |||
* | Suffolk Bancorp | 16,290 | 641,989 | |||
† | United America Indemnity Class A | 92,364 | 1,314,339 | |||
Webster Financial | 48,800 | 1,232,200 | ||||
8,546,750 | ||||||
Health Care – 2.33% | ||||||
*† | Kinetic Concepts | 25,000 | 714,750 | |||
† | King Pharmaceuticals | 56,200 | 538,396 | |||
† | LifePoint Hospitals | 13,720 | 440,961 | |||
† | Lincare Holdings | 16,100 | 484,449 | |||
† | RehabCare Group | 9,713 | 175,805 | |||
2,354,361 | ||||||
Real Estate – 5.54% | ||||||
* | CapLease | 184,500 | 1,463,085 | |||
* | Lexington Reality Trust | 43,300 | 745,626 | |||
*† | Lodgian | 111,100 | 866,580 | |||
MI Developments Class A | 71,000 | 1,312,790 | ||||
U-Store-It Trust | 98,900 | 1,213,503 | ||||
5,601,584 | ||||||
Technology – 15.94% | ||||||
† | 3Com | 18,000 | 41,940 | |||
† | Advanced Energy Industries | 27,825 | 380,646 | |||
* | Agilysys | 30,623 | 308,986 | |||
† | Checkpoint Systems | 64,000 | 1,204,480 | |||
† | CIBER | 68,225 | 476,893 | |||
Cohu | 26,210 | 414,642 | ||||
† | Ducommun | 16,970 | 405,244 | |||
† | Fairchild Semiconductor International | 91,000 | 808,990 | |||
† | Flextronics International | 300,500 | 2,127,540 | |||
*† | Gerber Scientific | 59,000 | 539,260 | |||
* | Imation | 35,000 | 791,700 | |||
*† | Intermec | 51,000 | 1,001,640 | |||
† | Lawson Software | 73,700 | 515,900 | |||
*† | LeCroy | 50,000 | 384,500 | |||
Methode Electronics | 39,208 | 350,520 | ||||
† | Ness Technologies | 33,700 | 386,539 | |||
† | Novell | 111,000 | 570,540 | |||
*† | ON Semiconductor | 142,100 | 960,596 | |||
Patni Computer Systems ADR | 62,900 | 487,475 | ||||
Rockwell Automation | 22,000 | 821,480 | ||||
*† | Rudolph Technologies | 44,700 | 374,586 | |||
† | Teradyne | 81,000 | 632,610 | |||
† | Thermo Fisher Scientific | 18,900 | 1,039,500 | |||
† | Tollgrade Communications | 14,537 | 61,055 | |||
† | Unisys | 13,800 | 37,950 | |||
† | Vishay Intertechnology | 148,000 | 979,760 | |||
16,104,972 | ||||||
Transportation – 0.83% | ||||||
Con-way | 3,900 | 172,029 | ||||
Skywest | 20,360 | 325,353 | ||||
*† | YRC Worldwide | 28,700 | 343,252 | |||
840,634 | ||||||
Utilities – 2.55% | ||||||
Great Plains Energy | 78,300 | 1,734,345 | ||||
Portland General Electric | 20,300 | 480,298 | ||||
Westar Energy | 15,700 | 361,728 | ||||
2,576,371 | ||||||
Total Common Stock | ||||||
(cost $111,868,071) | 92,242,338 | |||||
Exchange Traded Fund – 0.41% | ||||||
* | iShares Russell 2000 Value | |||||
Index Fund | 6,200 | 416,888 | ||||
Total Exchange Traded Fund | ||||||
(cost $469,439) | 416,888 | |||||
Principal | ||||||
Amount | ||||||
¹Discount Note – 0.59% | ||||||
Federal Home Loan Bank | ||||||
0.10% 10/1/08 | $ | 592,067 | 592,067 | |||
Total Discount Note | ||||||
(cost $592,067) | 592,067 | |||||
Repurchase Agreements** – 8.39% | ||||||
BNP Paribas 0.15%, dated | ||||||
9/30/08, to be repurchased | ||||||
on 10/1/08, repurchase price | ||||||
$8,472,981 (collateralized by | ||||||
U.S. Government obligations, | ||||||
4.875% 8/15/09; with market | ||||||
value $8,647,431) | 8,472,946 | 8,472,946 | ||||
Total Repurchase Agreements | ||||||
(cost $8,472,946) | 8,472,946 | |||||
Total Value of Securities Before Securities | ||||||
Lending Collateral – 100.68% | ||||||
(cost $121,402,523) | 101,724,239 |
48
Number of | |||||
Shares | Value | ||||
Securities Lending Collateral*** – 12.86% | |||||
Investment Companies | |||||
Mellon GSL DBT II | |||||
Collateral Fund | 12,990,827 | $ | 12,990,827 | ||
Total Securities Lending Collateral | |||||
(cost $12,990,827) | 12,990,827 | ||||
Total Value of Securities – 113.54% | |||||
(cost $134,393,350) | 114,715,066 | © | |||
Obligation to Return Securities | |||||
Lending Collateral*** – (12.86%) | (12,990,827 | ) | |||
Liabilities Net of Receivables and | |||||
Other Assets – (0.68%) | (684,827 | ) | |||
Net Assets Applicable to 10,285,381 | |||||
Shares Outstanding – 100.00% | $ | 101,039,412 |
Net Asset Value – Optimum Small-Mid Cap Value Fund | ||
Class A ($7,838,293 / 798,781 Shares) | $ 9.81 | |
Net Asset Value – Optimum Small-Mid Cap Value Fund | ||
Class B ($1,424,943 / 150,876 Shares) | $ 9.44 | |
Net Asset Value – Optimum Small-Mid Cap Value Fund | ||
Class C ($28,447,695 / 3,012,976 Shares) | $ 9.44 | |
Net Asset Value – Optimum Small-Mid Cap Value Fund | ||
Institutional Class ($63,328,481 / 6,322,748 Shares) | $10.02 |
Components of Net Assets at September 30, 2008: | ||||
Shares of beneficial interest | ||||
(unlimited authorization – no par) | $ | 122,759,079 | ||
Undistributed net investment income | 26,496 | |||
Accumulated net realized loss on investments | (2,067,879 | ) | ||
Net unrealized depreciation of investments | (19,678,284 | ) | ||
Total net assets | $ | 101,039,412 |
* | Fully or partially on loan. |
† | Non income producing security. |
¹ | The rate shown is the effective yield as of the time of purchase. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $12,472,762 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) | $ | 9.81 |
Sales charge (5.75% of offering price) (B) | 0.60 | |
Offering price | $ | 10.41 |
(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
49
Statements of assets and liabilities
Optimum Fund Trust
September 30, 2008 (Unaudited)
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 | $ | 898,727,471 | $ | 215,949,426 | $ | 840,433,817 | $ | 779,097,198 | $ | 126,394,241 | $ | 101,724,239 | |||||
Short-term investments held as collateral | |||||||||||||||||
for loaned securities | 62,216,905 | 32,224,046 | 51,923,119 | 51,748,936 | 25,153,980 | 12,990,827 | |||||||||||
Cash | 13,816,141 | 18,931 | 855,269 | 782,855 | 1,676,460 | 193,021 | |||||||||||
Foreign currencies | 7,051,168 | 545,028 | 613,525 | 6,833 | 31 | — | |||||||||||
Receivables for fund shares sold | 1,562,717 | 333,715 | 1,526,069 | 1,276,803 | 195,198 | 141,206 | |||||||||||
Receivables for securities sold | 12,863,230 | 1,131,581 | 29,078,313 | 7,355,029 | 290,323 | 415,073 | |||||||||||
Foreign currency contracts, at value | 1,694,384 | 622,225 | 1,066 | — | — | — | |||||||||||
Dividends receivable | — | 1,198,024 | 750,566 | 1,654,160 | 60,819 | 117,255 | |||||||||||
Interest receivable | 8,780,864 | — | 152 | 91 | — | 35 | |||||||||||
Securities lending income receivable | 52,303 | 31,343 | 33,517 | 42,354 | 30,139 | 12,610 | |||||||||||
Credit default swap contracts, at value1 | 580,281 | — | — | — | — | — | |||||||||||
Other assets | 656 | — | — | — | — | — | |||||||||||
Total assets | 1,007,346,120 | 252,054,319 | 925,215,413 | 841,964,259 | 153,801,191 | 115,594,266 | |||||||||||
Liabilities: | |||||||||||||||||
Payables for securities purchased | 46,601,931 | 425,654 | 19,068,491 | 7,599,053 | 5,725 | 1,206,526 | |||||||||||
Payables for fund shares redeemed | 2,550,996 | 427,677 | 1,682,104 | 1,546,059 | 250,896 | 188,684 | |||||||||||
Obligation to return securities lending collateral | 62,216,905 | 32,224,046 | 51,923,119 | 51,748,936 | 25,153,980 | 12,990,827 | |||||||||||
Accrued protection payments on credit | |||||||||||||||||
default swaps | 19,488 | — | — | — | — | — | |||||||||||
Credit default swap contracts, at value1 | 10,162 | — | — | — | — | — | |||||||||||
Foreign currency contracts, at value | 12,885 | — | 2,576,211 | — | — | — | |||||||||||
Distributions payable | 2,171 | — | — | — | — | — | |||||||||||
Due to manager and affiliates | 848,620 | 320,179 | 1,102,159 | 942,334 | 212,065 | 138,095 | |||||||||||
Variation margin receivable on futures contracts | 408,620 | — | — | — | — | — | |||||||||||
Other accrued expenses | 129,181 | 90,452 | 232,712 | 102,443 | 20,524 | 30,074 | |||||||||||
Other liabilities | 1,157,350 | 728 | 1,136 | 1,778 | 745 | 648 | |||||||||||
Total liabilities | 113,958,309 | 33,488,736 | 76,585,932 | 61,940,603 | 25,643,935 | 14,554,854 | |||||||||||
Total Net Assets | $ | 893,387,811 | $ | 218,565,583 | $ | 848,629,481 | $ | 780,023,656 | $ | 128,157,256 | $ | 101,039,412 | |||||
Investments, at cost | $ | 950,313,467 | $ | 260,283,773 | $ | 892,141,262 | $ | 867,633,521 | $ | 129,063,041 | $ | 121,402,523 | |||||
Cost of short-term investments held as | |||||||||||||||||
collateral for loaned securities | $ | 62,216,905 | $ | 32,224,046 | $ | 51,923,119 | $ | 51,748,936 | $ | 25,153,980 | $ | 12,990,827 | |||||
Foreign currencies, at cost | $ | 7,283,129 | $ | 554,772 | $ | 618,605 | $ | 7,198 | $ | 32 | $ | — |
1 Including up front payments received of $265,380. See Note 10 in “Notes to financial statements.”
See accompanying notes
50
Statements of operations
Optimum Fund Trust
Six Months Ended September 30, 2008 (Unaudited)
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 | $ | 83,922 | $ | 7,707,586 | $ | 6,777,839 | $ | 12,134,403 | $ | 395,932 | $ | 818,262 | |||||||||||
Interest | 26,594,840 | 34,905 | 536,134 | 335,708 | 19,167 | 98,058 | |||||||||||||||||
Securities lending income | 292,888 | 331,127 | 379,019 | 366,693 | 181,094 | 98,130 | |||||||||||||||||
Foreign tax withheld | — | (830,556 | ) | (148,401 | ) | (69,359 | ) | (3,311 | ) | (3,195 | ) | ||||||||||||
26,971,650 | 7,243,062 | 7,544,591 | 12,767,445 | 592,882 | 1,011,255 | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Management fees | 2,702,890 | 1,106,490 | 3,807,579 | 3,128,726 | 785,140 | 587,991 | |||||||||||||||||
Distribution expenses – Class A | 106,386 | 37,705 | 93,663 | 89,396 | 16,632 | 15,805 | |||||||||||||||||
Distribution expenses – Class B | 41,759 | 19,645 | 45,872 | 45,011 | 8,156 | 8,177 | |||||||||||||||||
Distribution expenses – Class C | 1,241,229 | 396,478 | 1,006,464 | 986,116 | 171,637 | 163,113 | |||||||||||||||||
Dividend disbursing and transfer agent | |||||||||||||||||||||||
fees and expenses | 1,174,968 | 418,656 | 1,300,695 | 1,123,158 | 260,961 | 230,476 | |||||||||||||||||
Administration expenses | 710,736 | 228,005 | 768,076 | 674,168 | 117,771 | 93,143 | |||||||||||||||||
Accounting fees | 183,556 | 54,778 | 196,833 | 185,455 | 30,974 | 24,795 | |||||||||||||||||
Reports and statements to shareholders | 73,818 | 17,514 | 67,742 | 40,442 | 9,058 | 6,272 | |||||||||||||||||
Professional fees | 59,189 | 27,882 | 59,844 | 48,114 | 21,864 | 22,341 | |||||||||||||||||
Trustees’ fees | 55,989 | 16,401 | 63,310 | 52,371 | 8,625 | 6,842 | |||||||||||||||||
Custodian fees | 36,004 | 66,643 | 38,914 | 15,570 | 5,037 | 1,665 | |||||||||||||||||
Registration fees | 31,451 | 28,207 | 42,043 | 31,486 | 26,891 | 26,699 | |||||||||||||||||
Pricing fees | 26,952 | 9,839 | 1,539 | 771 | 837 | 463 | |||||||||||||||||
Insurance fees | 17,815 | 5,437 | 19,386 | 17,014 | 2,748 | 2,235 | |||||||||||||||||
Other | 8,749 | 5,429 | 9,463 | 8,413 | 4,266 | 2,799 | |||||||||||||||||
6,471,491 | 2,439,109 | 7,521,423 | 6,446,211 | 1,470,597 | 1,192,816 | ||||||||||||||||||
Less fees waived | (916,282 | ) | (12,258 | ) | — | (104,830 | ) | (161,460 | ) | (211,946 | ) | ||||||||||||
Less expense paid indirectly | (32,712 | ) | (354 | ) | (2,947 | ) | (4,498 | ) | (3,068 | ) | (945 | ) | |||||||||||
Total operating expenses | 5,522,497 | 2,426,497 | 7,518,476 | 6,336,883 | 1,306,069 | 979,925 | |||||||||||||||||
Net Investment Income (Loss) | 21,449,153 | 4,816,565 | 26,115 | 6,430,562 | (713,187 | ) | 31,330 | ||||||||||||||||
Net Realized and Unrealized Gain (Loss) on | |||||||||||||||||||||||
Investments and Foreign Currencies: | |||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||
Investments | (20,173,149 | ) | 373,935 | (35,674,282 | ) | (36,130,029 | ) | (8,752,892 | ) | (520,326 | ) | ||||||||||||
Futures contracts | 503,366 | — | — | — | — | — | |||||||||||||||||
Swap contracts | 665,596 | — | — | — | — | — | |||||||||||||||||
Options written | 935,995 | — | — | — | — | — | |||||||||||||||||
Foreign currencies | (1,689,145 | ) | 315,251 | (75,401 | ) | (7,445 | ) | 5,742 | — | ||||||||||||||
Net realized gain (loss) | (19,757,337 | ) | 689,186 | (35,749,683 | ) | (36,137,474 | ) | (8,747,150 | ) | (520,326 | ) | ||||||||||||
Net change in unrealized appreciation/depreciation | |||||||||||||||||||||||
of investments and foreign currencies | (39,271,736 | ) | (67,756,659 | ) | (104,712,077 | ) | (73,779,668 | ) | 1,623,791 | (5,182,812 | ) | ||||||||||||
Net Realized and Unrealized Loss on | |||||||||||||||||||||||
Investments and Foreign Currencies | (59,029,073 | ) | (67,067,473 | ) | (140,461,760 | ) | (109,917,142 | ) | (7,123,359 | ) | (5,703,138 | ) | |||||||||||
Net Decrease in Net Assets | |||||||||||||||||||||||
Resulting from Operations | $ | (37,579,920 | ) | $ | (62,250,908 | ) | $ | (140,435,645 | ) | $ | (103,486,580 | ) | $ | (7,836,546 | ) | $ | (5,671,808 | ) |
See accompanying notes
51
Statements of changes in net assets
Optimum Fund Trust
Optimum Fixed Income Fund | Optimum International Fund | ||||||||||||||
Six Months | Year | Six Months | Year | ||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||
9/30/08 | 3/31/08 | 9/30/08 | 3/31/08 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
Increase (Decrease) in Net Assets from Operations: | |||||||||||||||
Net investment income | $ | 21,449,153 | $ | 38,945,982 | $ | 4,816,565 | $ | 5,069,917 | |||||||
Net realized gain (loss) on investments and foreign currencies | (19,757,337 | ) | 12,617,654 | 689,186 | 18,453,208 | ||||||||||
Net change in unrealized appreciation/depreciation of investments | |||||||||||||||
and foreign currencies | (39,271,736 | ) | (18,721,227 | ) | (67,756,659 | ) | (37,113,580 | ) | |||||||
Net increase (decrease) in net assets resulting from operations | (37,579,920 | ) | 32,842,409 | (62,250,908 | ) | (13,590,455 | ) | ||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||
Net investment income: | |||||||||||||||
Class A | (1,078,427 | ) | (2,646,846 | ) | (165,152 | ) | (189,722 | ) | |||||||
Class B | (117,135 | ) | (320,455 | ) | (24,242 | ) | (11,832 | ) | |||||||
Class C | (3,560,839 | ) | (8,955,345 | ) | (491,535 | ) | (231,986 | ) | |||||||
Institutional Class | (12,286,859 | ) | (26,434,885 | ) | (1,464,022 | ) | (1,985,115 | ) | |||||||
Net realized gain on investments: | |||||||||||||||
Class A | (185,122 | ) | (528,340 | ) | (367,545 | ) | (1,634,305 | ) | |||||||
Class B | (25,716 | ) | (76,173 | ) | (67,937 | ) | (314,623 | ) | |||||||
Class C | (760,332 | ) | (2,107,786 | ) | (1,377,512 | ) | (6,066,171 | ) | |||||||
Institutional Class | (1,866,977 | ) | (4,886,758 | ) | (2,915,201 | ) | (11,269,275 | ) | |||||||
(19,881,407 | ) | (45,956,588 | ) | (6,873,146 | ) | (21,703,029 | ) | ||||||||
Capital Share Transactions: | |||||||||||||||
Proceeds from shares sold: | |||||||||||||||
Class A | 3,427,076 | 14,435,397 | 1,078,264 | 3,911,302 | |||||||||||
Class B | 80,600 | 595,022 | 9,235 | 98,087 | |||||||||||
Class C | 14,977,556 | 65,517,471 | 3,602,749 | 15,823,329 | |||||||||||
Institutional Class | 103,545,880 | 286,862,984 | 25,459,442 | 72,567,219 | |||||||||||
Net asset value of shares issued upon reinvestment of dividends | |||||||||||||||
and distributions: | |||||||||||||||
Class A | 1,242,507 | 3,100,810 | 526,172 | 1,799,221 | |||||||||||
Class B | 136,557 | 381,274 | 90,619 | 322,331 | |||||||||||
Class C | 4,224,954 | 10,822,039 | 1,848,087 | 6,233,115 | |||||||||||
Institutional Class | 13,811,195 | 30,570,046 | 4,326,526 | 13,070,704 | |||||||||||
141,446,325 | 412,285,043 | 36,941,094 | 113,825,308 | ||||||||||||
Cost of shares repurchased: | |||||||||||||||
Class A | (7,376,244 | ) | (12,098,669 | ) | (2,859,458 | ) | (5,478,936 | ) | |||||||
Class B | (947,971 | ) | (1,637,721 | ) | (346,644 | ) | (730,248 | ) | |||||||
Class C | (30,704,833 | ) | (42,458,019 | ) | (9,259,504 | ) | (18,875,450 | ) | |||||||
Institutional Class | (78,345,981 | ) | (165,647,750 | ) | (23,344,814 | ) | (43,335,971 | ) | |||||||
(117,375,029 | ) | (221,842,159 | ) | (35,810,420 | ) | (68,420,605 | ) | ||||||||
Increase in net assets derived from capital share transactions | 24,071,296 | 190,442,884 | 1,130,674 | 45,404,703 | |||||||||||
Net Increase (Decrease) in Net Assets | (33,390,031 | ) | 177,328,705 | (67,993,380 | ) | 10,111,219 | |||||||||
Net Assets: | |||||||||||||||
Beginning of period | 926,777,842 | 749,449,137 | 286,558,963 | 276,447,744 | |||||||||||
End of period | $ | 893,387,811 | $ | 926,777,842 | $ | 218,565,583 | $ | 286,558,963 | |||||||
Undistributed net investment income | $ | 11,250,559 | $ | 8,266,779 | $ | 4,986,798 | $ | 1,994,097 |
See accompanying notes
52
Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | ||||||||||||||
Six Months | Year | Six Months | Year | ||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||
9/30/08 | 3/31/08 | 9/30/08 | 3/31/08 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
Increase (Decrease) in Net Assets from Operations: | |||||||||||||||
Net investment income (loss) | $ | 26,115 | $ | (878,571 | ) | $ | 6,430,562 | $ | 10,314,552 | ||||||
Net realized gain (loss) on investments and foreign currencies | (35,749,683 | ) | (1,111,008 | ) | (36,137,474 | ) | 38,298,471 | ||||||||
Net change in unrealized appreciation/depreciation of investments | |||||||||||||||
and foreign currencies | (104,712,077 | ) | (48,271,448 | ) | (73,779,668 | ) | (117,063,900 | ) | |||||||
Net decrease in net assets resulting from operations | (140,435,645 | ) | (50,261,027 | ) | (103,486,580 | ) | (68,450,877 | ) | |||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||
Net investment income: | |||||||||||||||
Class A | — | — | (134,409 | ) | (630,550 | ) | |||||||||
Class B | — | — | (8,243 | ) | (43,545 | ) | |||||||||
Class C | — | — | (181,720 | ) | (905,530 | ) | |||||||||
Institutional Class | — | — | (2,187,864 | ) | (8,485,398 | ) | |||||||||
Net realized gain on investments: | |||||||||||||||
Class A | — | (1,441,876 | ) | (662,775 | ) | (2,973,297 | ) | ||||||||
Class B | — | (264,016 | ) | (117,880 | ) | (553,227 | ) | ||||||||
Class C | — | (5,499,011 | ) | (2,598,600 | ) | (11,425,809 | ) | ||||||||
Institutional Class | — | (15,352,305 | ) | (8,022,167 | ) | (29,657,350 | ) | ||||||||
Return of capital: | |||||||||||||||
Class A | — | (178,767 | ) | — | — | ||||||||||
Class B | — | (32,243 | ) | — | — | ||||||||||
Class C | — | (684,542 | ) | — | — | ||||||||||
Institutional Class | — | (1,950,630 | ) | — | — | ||||||||||
— | (25,403,390 | ) | (13,913,658 | ) | (54,674,706 | ) | |||||||||
Capital Share Transactions: | |||||||||||||||
Proceeds from shares sold: | |||||||||||||||
Class A | 3,013,639 | 11,236,759 | 2,949,616 | 10,589,119 | |||||||||||
Class B | 22,105 | 353,506 | 31,371 | 292,083 | |||||||||||
Class C | 9,825,065 | 46,004,662 | 9,934,330 | 44,680,367 | |||||||||||
Institutional Class | 108,200,839 | 352,905,856 | 98,344,734 | 261,214,984 | |||||||||||
Net asset value of shares issued upon reinvestment of dividends | |||||||||||||||
and distributions: | |||||||||||||||
Class A | — | 1,601,503 | 790,220 | 3,559,703 | |||||||||||
Class B | — | 292,790 | 124,194 | 589,420 | |||||||||||
Class C | — | 6,112,565 | 2,749,342 | 12,187,382 | |||||||||||
Institutional Class | — | 17,075,912 | 10,086,689 | 37,620,966 | |||||||||||
121,061,648 | 435,583,553 | 125,010,496 | 370,734,024 | ||||||||||||
Cost of shares repurchased: | |||||||||||||||
Class A | (6,609,072 | ) | (10,926,086 | ) | (5,970,988 | ) | (11,557,514 | ) | |||||||
Class B | (794,132 | ) | (1,424,579 | ) | (780,350 | ) | (1,479,221 | ) | |||||||
Class C | (23,130,291 | ) | (35,449,190 | ) | (23,140,015 | ) | (38,254,240 | ) | |||||||
Institutional Class | (91,570,764 | ) | (111,018,222 | ) | (73,384,386 | ) | (114,719,796 | ) | |||||||
(122,104,259 | ) | (158,818,077 | ) | (103,275,739 | ) | (166,010,771 | ) | ||||||||
Increase (decrease) in net assets derived from capital share transactions | (1,042,611 | ) | 276,765,476 | 21,734,757 | 204,723,253 | ||||||||||
Net Increase (Decrease) in Net Assets | (141,478,256 | ) | 201,101,059 | (95,665,481 | ) | 81,597,670 | |||||||||
Net Assets: | |||||||||||||||
Beginning of period | 990,107,737 | 789,006,678 | 875,689,137 | 794,091,467 | |||||||||||
End of period | $ | 848,629,481 | $ | 990,107,737 | $ | 780,023,656 | $ | 875,689,137 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (791 | ) | $ | (117,792 | ) | $ | 6,351,648 | $ | 2,500,621 |
See accompanying notes
(continues) 53
Statements of changes in net assets
Optimum Fund Trust
Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | ||||||||||||||
Six Months | Year | Six Months | Year | ||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||
9/30/08 | 3/31/08 | 9/30/08 | 3/31/08 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
Increase (Decrease) in Net Assets from Operations: | |||||||||||||||
Net investment income (loss) | $ | (713,187 | ) | $ | (1,894,246 | ) | $ | 31,330 | $ | (261,575 | ) | ||||
Net realized gain (loss) on investments | (8,747,150 | ) | 2,123,424 | (520,326 | ) | 6,418,795 | |||||||||
Net change in unrealized appreciation/depreciation of investments | 1,623,791 | (26,799,380 | ) | (5,182,812 | ) | (28,485,141 | ) | ||||||||
Net decrease in net assets resulting from operations | (7,836,546 | ) | (26,570,202 | ) | (5,671,808 | ) | (22,327,921 | ) | |||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||
Net realized gain on investments: | |||||||||||||||
Class A | — | (560,950 | ) | (15,258 | ) | (942,182 | ) | ||||||||
Class B | — | (99,631 | ) | (2,844 | ) | (167,781 | ) | ||||||||
Class C | — | (2,002,272 | ) | (57,073 | ) | (3,299,775 | ) | ||||||||
Institutional Class | — | (4,508,315 | ) | (115,421 | ) | (6,085,136 | ) | ||||||||
Return of capital: | |||||||||||||||
Class A | — | (8,235 | ) | — | — | ||||||||||
Class B | — | (1,431 | ) | — | — | ||||||||||
Class C | — | (29,741 | ) | — | — | ||||||||||
Institutional Class | — | (68,975 | ) | — | — | ||||||||||
— | (7,279,550 | ) | (190,596 | ) | (10,494,874 | ) | |||||||||
Capital Share Transactions: | |||||||||||||||
Proceeds from shares sold: | |||||||||||||||
Class A | 611,282 | 1,996,981 | 544,979 | 1,579,999 | |||||||||||
Class B | 3,224 | 44,255 | 1,662 | 46,917 | |||||||||||
Class C | 1,734,070 | 8,156,460 | 1,585,881 | 6,594,307 | |||||||||||
Institutional Class | 15,860,619 | 43,794,668 | 9,889,008 | 30,115,190 | |||||||||||
Net asset value of shares issued upon reinvestment of dividends | |||||||||||||||
and distributions: | |||||||||||||||
Class A | — | 562,249 | 15,258 | 915,729 | |||||||||||
Class B | — | 100,327 | 2,813 | 166,279 | |||||||||||
Class C | — | 2,010,432 | 56,432 | 3,260,663 | |||||||||||
Institutional Class | — | 4,507,312 | 113,479 | 5,967,026 | |||||||||||
18,209,195 | 61,172,684 | 12,209,512 | 48,646,110 | ||||||||||||
Cost of shares repurchased: | |||||||||||||||
Class A | (1,134,446 | ) | (2,920,642 | ) | (1,427,776 | ) | (3,141,056 | ) | |||||||
Class B | (141,109 | ) | (287,031 | ) | (130,218 | ) | (293,314 | ) | |||||||
Class C | (4,319,915 | ) | (7,352,657 | ) | (4,387,611 | ) | (8,306,564 | ) | |||||||
Institutional Class | (12,222,308 | ) | (20,692,762 | ) | (9,690,929 | ) | (21,722,296 | ) | |||||||
(17,817,778 | ) | (31,253,092 | ) | (15,636,534 | ) | (33,463,230 | ) | ||||||||
Increase (decrease) in net assets derived from capital share transactions | 391,417 | 29,919,592 | (3,427,022 | ) | 15,182,880 | ||||||||||
Net Decrease in Net Assets | (7,445,129 | ) | (3,930,160 | ) | (9,289,426 | ) | (17,639,915 | ) | |||||||
Net Assets: | |||||||||||||||
Beginning of period | 135,602,385 | 139,532,545 | 110,328,838 | 127,968,753 | |||||||||||
End of period | $ | 128,157,256 | $ | 135,602,385 | $ | 101,039,412 | $ | 110,328,838 | |||||||
Undistributed net investment income | $ | — | $ | — | $ | 26,496 | $ | — |
See accompanying notes
54
Financial highlights
Optimum Fixed Income Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $8.930 | $9.050 | $8.740 | $8.890 | $8.980 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income3 | 0.201 | 0.402 | 0.399 | 0.316 | 0.279 | 0.171 | |||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (0.565 | ) | (0.066 | ) | 0.255 | (0.199 | ) | (0.061 | ) | 0.417 | |||||||||
Total from investment operations | (0.364 | ) | 0.336 | 0.654 | 0.117 | 0.218 | 0.588 | ||||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.159 | ) | (0.380 | ) | (0.344 | ) | (0.253 | ) | (0.228 | ) | (0.098 | ) | |||||||
Net realized gain on investments | (0.027 | ) | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | (0.010 | ) | ||||||||
Total dividends and distributions | (0.186 | ) | (0.456 | ) | (0.344 | ) | (0.267 | ) | (0.308 | ) | (0.108 | ) | |||||||
Net asset value, end of period | $8.380 | $8.930 | $9.050 | $8.740 | $8.890 | $8.980 | |||||||||||||
Total return4 | (4.12% | ) | 3.78% | 7.58% | 1.31% | 2.59% | 6.82% | ||||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $56,851 | $63,262 | $58,691 | $47,956 | $33,251 | $12,049 | |||||||||||||
Ratio of expenses to average net assets | 1.24% | 1.24% | 1.25% | 1.25% | 1.24% | 1.20% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.44% | 1.43% | 1.61% | 1.67% | 1.70% | 2.25% | |||||||||||||
Ratio of net investment income to average net assets | 4.57% | 4.44% | 4.48% | 3.55% | 3.12% | 2.88% | |||||||||||||
Ratio of net investment income to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 4.37% | 4.25% | 4.12% | 3.13% | 2.66% | 1.83% | |||||||||||||
Portfolio turnover | 191% | 256% | 238% | 298% | 352% | 383% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 55
Financial highlights
Optimum Fixed Income Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $8.930 | $9.060 | $8.740 | $8.900 | $8.990 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income3 | 0.173 | 0.343 | 0.342 | 0.258 | 0.221 | 0.133 | |||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (0.557 | ) | (0.076 | ) | 0.264 | (0.209 | ) | (0.055 | ) | 0.420 | |||||||||
Total from investment operations | (0.384 | ) | 0.267 | 0.606 | 0.049 | 0.166 | 0.553 | ||||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.129 | ) | (0.321 | ) | (0.286 | ) | (0.195 | ) | (0.176 | ) | (0.053 | ) | |||||||
Net realized gain on investments | (0.027 | ) | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | (0.010 | ) | ||||||||
Total dividends and distributions | (0.156 | ) | (0.397 | ) | (0.286 | ) | (0.209 | ) | (0.256 | ) | (0.063 | ) | |||||||
Net asset value, end of period | $8.390 | $8.930 | $9.060 | $8.740 | $8.900 | $8.990 | |||||||||||||
Total return4 | (4.33% | ) | 2.99% | 7.01% | 0.54% | 1.88% | 6.52% | ||||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $7,557 | $8,788 | $9,568 | $9,278 | $8,405 | $4,296 | |||||||||||||
Ratio of expenses to average net assets | 1.89% | 1.89% | 1.90% | 1.90% | 1.89% | 1.85% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.09% | 2.08% | 2.26% | 2.32% | 2.35% | 2.90% | |||||||||||||
Ratio of net investment income to average net assets | 3.92% | 3.79% | 3.83% | 2.90% | 2.47% | 2.23% | |||||||||||||
Ratio of net investment income to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 3.72% | 3.60% | 3.47% | 2.48% | 2.01% | 1.18% | |||||||||||||
Portfolio turnover | 191% | 256% | 238% | 298% | 352% | 383% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
56
Optimum Fixed Income Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $8.940 | $9.060 | $8.750 | $8.900 | $8.990 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income3 | 0.173 | 0.343 | 0.341 | 0.258 | 0.221 | 0.133 | |||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (0.567 | ) | (0.066 | ) | 0.255 | (0.199 | ) | (0.055 | ) | 0.420 | |||||||||
Total from investment operations | (0.394 | ) | 0.277 | 0.596 | 0.059 | 0.166 | 0.553 | ||||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.129 | ) | (0.321 | ) | (0.286 | ) | (0.195 | ) | (0.176 | ) | (0.053 | ) | |||||||
Net realized gain on investments | (0.027 | ) | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | (0.010 | ) | ||||||||
Total dividends and distributions | (0.156 | ) | (0.397 | ) | (0.286 | ) | (0.209 | ) | (0.256 | ) | (0.063 | ) | |||||||
Net asset value, end of period | $8.390 | $8.940 | $9.060 | $8.750 | $8.900 | $8.990 | |||||||||||||
Total return4 | (4.44% | ) | 3.11% | 6.88% | 0.65% | 1.88% | 6.52% | ||||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $230,755 | $257,340 | $227,036 | $186,869 | $125,301 | $52,649 | |||||||||||||
Ratio of expenses to average net assets | 1.89% | 1.89% | 1.90% | 1.90% | 1.89% | 1.85% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.09% | 2.08% | 2.26% | 2.32% | 2.35% | 2.90% | |||||||||||||
Ratio of net investment income to average net assets | 3.92% | 3.79% | 3.83% | 2.90% | 2.47% | 2.23% | |||||||||||||
Ratio of net investment income to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 3.72% | 3.60% | 3.47% | 2.48% | 2.01% | 1.18% | |||||||||||||
Portfolio turnover | 191% | 256% | 238% | 298% | 352% | 383% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 57
Financial highlights
Optimum Fixed Income Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $8.920 | $9.050 | $8.730 | $8.890 | $8.970 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income3 | 0.217 | 0.434 | 0.431 | 0.348 | 0.310 | 0.192 | |||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (0.555 | ) | (0.076 | ) | 0.265 | (0.209 | ) | (0.050 | ) | 0.407 | |||||||||
Total from investment operations | (0.338 | ) | 0.358 | 0.696 | 0.139 | 0.260 | 0.599 | ||||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.175 | ) | (0.412 | ) | (0.376 | ) | (0.285 | ) | (0.260 | ) | (0.119 | ) | |||||||
Net realized gain on investments | (0.027 | ) | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | (0.010 | ) | ||||||||
Total dividends and distributions | (0.202 | ) | (0.488 | ) | (0.376 | ) | (0.299 | ) | (0.340 | ) | (0.129 | ) | |||||||
Net asset value, end of period | $8.380 | $8.920 | $9.050 | $8.730 | $8.890 | $8.970 | |||||||||||||
Total return4 | (3.83% | ) | 4.04% | 8.09% | 1.56% | 2.96% | 7.07% | ||||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $598,225 | $597,388 | $454,154 | $309,363 | $153,085 | $22,276 | |||||||||||||
Ratio of expenses to average net assets | 0.89% | 0.89% | 0.90% | 0.90% | 0.89% | 0.85% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.09% | 1.08% | 1.26% | 1.32% | 1.35% | 1.90% | |||||||||||||
Ratio of net investment income to average net assets | 4.92% | 4.79% | 4.83% | 3.90% | 3.47% | 3.23% | |||||||||||||
Ratio of net investment income to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 4.72% | 4.60% | 4.47% | 3.48% | 3.01% | 2.18% | |||||||||||||
Portfolio turnover | 191% | 256% | 238% | 298% | 352% | 383% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
58
Optimum International Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $13.840 | $15.490 | $13.470 | $11.660 | $10.670 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income3 | 0.228 | 0.262 | 0.112 | 0.180 | 0.050 | 0.021 | |||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (3.189 | ) | (0.798 | ) | 2.661 | 2.456 | 1.069 | 2.155 | |||||||||||
Total from investment operations | (2.961 | ) | (0.536 | ) | 2.773 | 2.636 | 1.119 | 2.176 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.102 | ) | (0.116 | ) | (0.172 | ) | (0.074 | ) | — | — | |||||||||
Net realized gain on investments | (0.227 | ) | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | (0.006 | ) | |||||||
Total dividends and distributions | (0.329 | ) | (1.114 | ) | (0.753 | ) | (0.826 | ) | (0.129 | ) | (0.006 | ) | |||||||
Net asset value, end of period | $10.550 | $13.840 | $15.490 | $13.470 | $11.660 | $10.670 | |||||||||||||
Total return4 | (21.86% | ) | (3.96% | ) | 21.26% | 23.54% | 10.62% | 25.61% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $16,448 | $22,971 | $25,523 | $20,247 | $11,300 | $4,083 | |||||||||||||
Ratio of expenses to average net assets | 1.77% | 1.75% | 1.96% | 1.96% | 1.98% | 1.92% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.78% | 1.75% | 1.96% | 2.20% | 2.30% | 3.82% | |||||||||||||
Ratio of net investment income to average net assets | 3.45% | 1.69% | 0.78% | 1.47% | 0.45% | 0.30% | |||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 3.44% | 1.69% | 0.78% | 1.23% | 0.13% | (1.60% | ) | ||||||||||||
Portfolio turnover | 20% | 19% | 18% | 68% | 82% | 49% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 59
Financial highlights
Optimum International Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $13.580 | $15.240 | $13.290 | $11.530 | $10.620 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss)3 | 0.186 | 0.163 | 0.021 | 0.102 | (0.020 | ) | (0.023 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (3.138 | ) | (0.787 | ) | 2.614 | 2.426 | 1.059 | 2.149 | |||||||||||
Total from investment operations | (2.952 | ) | (0.624 | ) | 2.635 | 2.528 | 1.039 | 2.126 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.081 | ) | (0.038 | ) | (0.104 | ) | (0.016 | ) | — | — | |||||||||
Net realized gain on investments | (0.227 | ) | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | (0.006 | ) | |||||||
Total dividends and distributions | (0.308 | ) | (1.036 | ) | (0.685 | ) | (0.768 | ) | (0.129 | ) | (0.006 | ) | |||||||
Net asset value, end of period | $10.320 | $13.580 | $15.240 | $13.290 | $11.530 | $10.620 | |||||||||||||
Total return4 | (22.18% | ) | (4.59% | ) | 20.44% | 22.81% | 9.91% | 25.02% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $2,992 | $4,203 | $5,031 | $4,594 | $3,386 | $1,624 | |||||||||||||
Ratio of expenses to average net assets | 2.42% | 2.40% | 2.61% | 2.61% | 2.63% | 2.57% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.43% | 2.40% | 2.61% | 2.85% | 2.95% | 4.47% | |||||||||||||
Ratio of net investment income (loss) to average net assets | 2.80% | 1.04% | 0.13% | 0.82% | (0.20% | ) | (0.35% | ) | |||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.79% | 1.04% | 0.13% | 0.58% | (0.52% | ) | (2.25% | ) | |||||||||||
Portfolio turnover | 20% | 19% | 18% | 68% | 82% | 49% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
60
Optimum International Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $13.590 | $15.250 | $13.290 | $11.540 | $10.620 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss)3 | 0.186 | 0.163 | 0.021 | 0.102 | (0.020 | ) | (0.023 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (3.138 | ) | (0.787 | ) | 2.624 | 2.416 | 1.069 | 2.149 | |||||||||||
Total from investment operations | (2.952 | ) | (0.624 | ) | 2.645 | 2.518 | 1.049 | 2.126 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.081 | ) | (0.038 | ) | (0.104 | ) | (0.016 | ) | — | — | |||||||||
Net realized gain on investments | (0.227 | ) | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | (0.006 | ) | |||||||
Total dividends and distributions | (0.308 | ) | (1.036 | ) | (0.685 | ) | (0.768 | ) | (0.129 | ) | (0.006 | ) | |||||||
Net asset value, end of period | $10.330 | $13.590 | $15.250 | $13.290 | $11.540 | $10.620 | |||||||||||||
Total return4 | (22.16% | ) | (4.59% | ) | 20.51% | 22.69% | 10.01% | 25.02% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $61,070 | $84,431 | $91,696 | $70,828 | $38,517 | $14,339 | |||||||||||||
Ratio of expenses to average net assets | 2.42% | 2.40% | 2.61% | 2.61% | 2.63% | 2.57% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.43% | 2.40% | 2.61% | 2.85% | 2.95% | 4.47% | |||||||||||||
Ratio of net investment income (loss) to average net assets | 2.80% | 1.04% | 0.13% | 0.82% | (0.20% | ) | (0.35% | ) | |||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.79% | 1.04% | 0.13% | 0.58% | (0.52% | ) | (2.25% | ) | |||||||||||
Portfolio turnover | 20% | 19% | 18% | 68% | 82% | 49% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 61
Financial highlights
Optimum International Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $13.940 | $15.590 | $13.550 | $11.720 | $10.690 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income3 | 0.251 | 0.317 | 0.162 | 0.224 | 0.089 | 0.045 | |||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (3.220 | ) | (0.797 | ) | 2.679 | 2.464 | 1.079 | 2.151 | |||||||||||
Total from investment operations | (2.969 | ) | (0.480 | ) | 2.841 | 2.688 | 1.168 | 2.196 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.114 | ) | (0.172 | ) | (0.220 | ) | (0.106 | ) | (0.009 | ) | — | ||||||||
Net realized gain on investments | (0.227 | ) | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | (0.006 | ) | |||||||
Total dividends and distributions | (0.341 | ) | (1.170 | ) | (0.801 | ) | (0.858 | ) | (0.138 | ) | (0.006 | ) | |||||||
Net asset value, end of period | $10.630 | $13.940 | $15.590 | $13.550 | $11.720 | $10.690 | |||||||||||||
Total return4 | (21.77% | ) | (3.59% | ) | 21.68% | 23.91% | 11.08% | 25.84% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $138,056 | $174,954 | $154,198 | $99,733 | $44,149 | $9,302 | |||||||||||||
Ratio of expenses to average net assets | 1.42% | 1.40% | 1.61% | 1.61% | 1.63% | 1.57% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.43% | 1.40% | 1.61% | 1.85% | 1.95% | 3.47% | |||||||||||||
Ratio of net investment income to average net assets | 3.80% | 2.04% | 1.13% | 1.82% | 0.80% | 0.65% | |||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 3.79% | 2.04% | 1.13% | 1.58% | 0.48% | (1.25% | ) | ||||||||||||
Portfolio turnover | 20% | 19% | 18% | 68% | 82% | 49% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
62
Optimum Large Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $11.220 | $11.980 | $11.540 | $10.020 | $9.570 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment loss3 | (0.007 | ) | (0.021 | ) | (0.047 | ) | (0.057 | ) | (0.036 | ) | (0.037 | ) | |||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (1.583 | ) | (0.406 | ) | 0.692 | 1.577 | 0.486 | 1.107 | |||||||||||
Total from investment operations | (1.590 | ) | (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 | $9.630 | $11.220 | $11.980 | $11.540 | $10.020 | $9.570 | |||||||||||||
Total return4 | (14.08% | ) | (3.86% | ) | 5.75% | 15.17% | 4.70% | 12.59% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $43,292 | $54,022 | $56,088 | $47,283 | $26,252 | $9,337 | |||||||||||||
Ratio of expenses to average net assets | 1.60% | 1.60% | 1.69% | 1.69% | 1.67% | 1.61% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.60% | 1.60% | 1.77% | 1.84% | 1.87% | 2.51% | |||||||||||||
Ratio of net investment loss to average net assets | (0.12% | ) | (0.17% | ) | (0.41% | ) | (0.52% | ) | (0.37% | ) | (0.61% | ) | |||||||
Ratio of net investment loss to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | (0.12% | ) | (0.17% | ) | (0.49% | ) | (0.67% | ) | (0.57% | ) | (1.51% | ) | |||||||
Portfolio turnover | 122% | 59% | 37% | 48% | 37% | 51% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 63
Financial highlights
Optimum Large Cap Growth Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $10.870 | $11.700 | $11.340 | $9.910 | $9.530 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment loss3 | (0.042 | ) | (0.100 | ) | (0.119 | ) | (0.126 | ) | (0.099 | ) | (0.077 | ) | |||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (1.518 | ) | (0.397 | ) | 0.684 | 1.556 | 0.479 | 1.107 | |||||||||||
Total from investment operations | (1.560 | ) | (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 | $9.310 | $10.870 | $11.700 | $11.340 | $9.910 | $9.530 | |||||||||||||
Total return4 | (14.35% | ) | (4.56% | ) | 5.14% | 14.43% | 3.99% | 12.12% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $7,339 | $9,345 | $10,819 | $10,168 | $7,603 | $3,568 | |||||||||||||
Ratio of expenses to average net assets | 2.25% | 2.25% | 2.34% | 2.34% | 2.32% | 2.26% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.25% | 2.25% | 2.42% | 2.49% | 2.52% | 3.16% | |||||||||||||
Ratio of net investment loss to average net assets | (0.77% | ) | (0.82% | ) | (1.06% | ) | (1.17% | ) | (1.02% | ) | (1.26% | ) | |||||||
Ratio of net investment loss to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | (0.77% | ) | (0.82% | ) | (1.14% | ) | (1.32% | ) | (1.22% | ) | (2.16% | ) | |||||||
Portfolio turnover | 122% | 59% | 37% | 48% | 37% | 51% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
64
Optimum Large Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $10.870 | $11.700 | $11.340 | $9.910 | $9.530 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment loss3 | (0.042 | ) | (0.100 | ) | (0.119 | ) | (0.126 | ) | (0.099 | ) | (0.077 | ) | |||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (1.518 | ) | (0.397 | ) | 0.684 | 1.556 | 0.479 | 1.107 | |||||||||||
Total from investment operations | (1.560 | ) | (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 | $9.310 | $10.870 | $11.700 | $11.340 | $9.910 | $9.530 | |||||||||||||
Total return4 | (14.35% | ) | (4.56% | ) | 5.14% | 14.43% | 3.99% | 12.12% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $162,669 | $203,394 | $203,591 | $164,995 | $91,434 | $35,143 | |||||||||||||
Ratio of expenses to average net assets | 2.25% | 2.25% | 2.34% | 2.34% | 2.32% | 2.26% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.25% | 2.25% | 2.42% | 2.49% | 2.52% | 3.16% | |||||||||||||
Ratio of net investment loss to average net assets | (0.77% | ) | (0.82% | ) | (1.06% | ) | (1.17% | ) | (1.02% | ) | (1.26% | ) | |||||||
Ratio of net investment loss to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | (0.77% | ) | (0.82% | ) | (1.14% | ) | (1.32% | ) | (1.22% | ) | (2.16% | ) | |||||||
Portfolio turnover | 122% | 59% | 37% | 48% | 37% | 51% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 65
Financial highlights
Optimum Large Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $11.410 | $12.140 | $11.650 | $10.080 | $9.590 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss)3 | 0.013 | 0.023 | (0.006 | ) | (0.019 | ) | (0.002 | ) | (0.015 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (1.603 | ) | (0.420 | ) | 0.701 | 1.589 | 0.492 | 1.105 | |||||||||||
Total from investment operations | (1.590 | ) | (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 | $9.820 | $11.410 | $12.140 | $11.650 | $10.080 | $9.590 | |||||||||||||
Total return4 | (13.94% | ) | (3.56% | ) | 6.13% | 15.57% | 5.11% | 12.82% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $635,329 | $723,347 | $518,509 | $355,961 | $158,200 | $21,557 | |||||||||||||
Ratio of expenses to average net assets | 1.25% | 1.25% | 1.34% | 1.34% | 1.32% | 1.26% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.25% | 1.25% | 1.42% | 1.49% | 1.52% | 2.16% | |||||||||||||
Ratio of net investment income (loss) to average net assets | 0.23% | 0.18% | (0.06% | ) | (0.17% | ) | (0.02% | ) | (0.26% | ) | |||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 0.23% | 0.18% | (0.14% | ) | (0.32% | ) | (0.22% | ) | (1.16% | ) | |||||||||
Portfolio turnover | 122% | 59% | 37% | 48% | 37% | 51% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
66
Optimum Large Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $11.170 | $12.730 | $11.320 | $10.840 | $9.830 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income3 | 0.075 | 0.138 | 0.128 | 0.092 | 0.074 | 0.038 | |||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (1.353 | ) | (0.931 | ) | 1.614 | 0.947 | 1.100 | 1.331 | |||||||||||
Total from investment operations | (1.278 | ) | (0.793 | ) | 1.742 | 1.039 | 1.174 | 1.369 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.029 | ) | (0.134 | ) | (0.104 | ) | (0.065 | ) | (0.028 | ) | (0.023 | ) | |||||||
Net realized gain on investments | (0.143 | ) | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||||
Total dividends and distributions | (0.172 | ) | (0.767 | ) | (0.332 | ) | (0.559 | ) | (0.164 | ) | (0.039 | ) | |||||||
Net asset value, end of period | $9.720 | $11.170 | $12.730 | $11.320 | $10.840 | $9.830 | |||||||||||||
Total return4 | (11.60% | ) | (6.80% | ) | 15.65% | 9.82% | 12.04% | 16.12% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $44,166 | $53,097 | $58,161 | $45,666 | $27,524 | $9,115 | |||||||||||||
Ratio of expenses to average net assets | 1.54% | 1.54% | 1.55% | 1.55% | 1.53% | 1.50% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.56% | 1.56% | 1.73% | 1.83% | 1.84% | 2.52% | |||||||||||||
Ratio of net investment income to average net assets | 1.37% | 1.09% | 1.07% | 0.83% | 0.72% | 0.59% | |||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.35% | 1.07% | 0.89% | 0.55% | 0.41% | (0.43% | ) | ||||||||||||
Portfolio turnover | 33% | 30% | 22% | 52% | 38% | 38% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 67
Financial highlights
Optimum Large Cap Value Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $11.090 | $12.640 | $11.240 | $10.780 | $9.810 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss)3 | 0.040 | 0.056 | 0.052 | 0.021 | 0.008 | (0.003 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (1.347 | ) | (0.923 | ) | 1.606 | 0.933 | 1.098 | 1.329 | |||||||||||
Total from investment operations | (1.307 | ) | (0.867 | ) | 1.658 | 0.954 | 1.106 | 1.326 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.010 | ) | (0.050 | ) | (0.030 | ) | — | — | — | ||||||||||
Net realized gain on investments | (0.143 | ) | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||||
Total dividends and distributions | (0.153 | ) | (0.683 | ) | (0.258 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||||
Net asset value, end of period | $9.630 | $11.090 | $12.640 | $11.240 | $10.780 | $9.810 | |||||||||||||
Total return4 | (11.93% | ) | (7.38% | ) | 14.97% | 9.05% | 11.36% | 15.61% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $7,648 | $9,454 | $11,403 | $10,103 | $8,072 | $3,609 | |||||||||||||
Ratio of expenses to average net assets | 2.19% | 2.19% | 2.20% | 2.20% | 2.18% | 2.15% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.21% | 2.21% | 2.38% | 2.48% | 2.49% | 3.17% | |||||||||||||
Ratio of net investment income (loss) to average net assets | 0.72% | 0.44% | 0.42% | 0.18% | 0.07% | (0.06% | ) | ||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 0.70% | 0.42% | 0.24% | (0.10% | ) | (0.24% | ) | (1.08% | ) | ||||||||||
Portfolio turnover | 33% | 30% | 22% | 52% | 38% | 38% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
68
Optimum Large Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $11.080 | $12.630 | $11.240 | $10.780 | $9.810 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss)3 | 0.040 | 0.057 | 0.051 | 0.021 | 0.008 | (0.003 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (1.337 | ) | (0.924 | ) | 1.597 | 0.933 | 1.098 | 1.329 | |||||||||||
Total from investment operations | (1.297 | ) | (0.867 | ) | 1.648 | 0.954 | 1.106 | 1.326 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.010 | ) | (0.050 | ) | (0.030 | ) | — | — | — | ||||||||||
Net realized gain on investments | (0.143 | ) | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||||
Total dividends and distributions | (0.153 | ) | (0.683 | ) | (0.258 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||||
Net asset value, end of period | $9.630 | $11.080 | $12.630 | $11.240 | $10.780 | $9.810 | |||||||||||||
Total return4 | (11.85% | ) | (7.39% | ) | 14.88% | 9.16% | 11.36% | 15.61% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $168,934 | $205,501 | $216,527 | $163,876 | $97,823 | $35,732 | |||||||||||||
Ratio of expenses to average net assets | 2.19% | 2.19% | 2.20% | 2.20% | 2.18% | 2.15% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.21% | 2.21% | 2.38% | 2.48% | 2.49% | 3.17% | |||||||||||||
Ratio of net investment income (loss) to average net assets | 0.72% | 0.44% | 0.42% | 0.18% | 0.07% | (0.06% | ) | ||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 0.70% | 0.42% | 0.24% | (0.10% | ) | (0.24% | ) | (1.08% | ) | ||||||||||
Portfolio turnover | 33% | 30% | 22% | 52% | 38% | 38% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 69
Financial highlights
Optimum Large Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $11.190 | $12.750 | $11.330 | $10.860 | $9.840 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income3 | 0.094 | 0.183 | 0.170 | 0.131 | 0.110 | 0.060 | |||||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||||||
and foreign currencies | (1.362 | ) | (0.931 | ) | 1.623 | 0.936 | 1.110 | 1.330 | |||||||||||
Total from investment operations | (1.268 | ) | (0.748 | ) | 1.793 | 1.067 | 1.220 | 1.390 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net investment income | (0.039 | ) | (0.179 | ) | (0.145 | ) | (0.103 | ) | (0.064 | ) | (0.034 | ) | |||||||
Net realized gain on investments | (0.143 | ) | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | (0.016 | ) | |||||||
Total dividends and distributions | (0.182 | ) | (0.812 | ) | (0.373 | ) | (0.597 | ) | (0.200 | ) | (0.050 | ) | |||||||
Net asset value, end of period | $9.740 | $11.190 | $12.750 | $11.330 | $10.860 | $9.840 | |||||||||||||
Total return4 | (11.50% | ) | (6.46% | ) | 16.12% | 10.19% | 12.41% | 16.38% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $559,276 | $607,637 | $508,000 | $319,857 | $140,341 | $17,962 | |||||||||||||
Ratio of expenses to average net assets | 1.19% | 1.19% | 1.20% | 1.20% | 1.18% | 1.15% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.21% | 1.21% | 1.38% | 1.48% | 1.49% | 2.17% | |||||||||||||
Ratio of net investment income to average net assets | 1.72% | 1.44% | 1.42% | 1.18% | 1.07% | 0.94% | |||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.70% | 1.42% | 1.24% | 0.90% | 0.76% | (0.08% | ) | ||||||||||||
Portfolio turnover | 33% | 30% | 22% | 52% | 38% | 38% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
70
Optimum Small-Mid Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $11.280 | $14.070 | $14.340 | $11.750 | $11.260 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment loss3 | (0.063 | ) | (0.177 | ) | (0.155 | ) | (0.176 | ) | (0.161 | ) | (0.100 | ) | |||||||
Net realized and unrealized gain (loss) on investments | (0.577 | ) | (1.952 | ) | 0.188 | 2.766 | 0.653 | 2.860 | |||||||||||
Total from investment operations | (0.640 | ) | (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 | $10.640 | $11.280 | $14.070 | $14.340 | $11.750 | $11.260 | |||||||||||||
Total return4 | (5.67% | ) | (15.96% | ) | 0.37% | 22.04% | 4.37% | 32.47% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $8,269 | $9,282 | $12,088 | $11,984 | $6,133 | $2,115 | |||||||||||||
Ratio of expenses to average net assets | 1.90% | 1.92% | 1.95% | 1.95% | 1.80% | 1.81% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.13% | 2.11% | 2.32% | 2.46% | 2.69% | 4.11% | |||||||||||||
Ratio of net investment loss to average net assets | (1.07% | ) | (1.27% | ) | (1.15% | ) | (1.38% | ) | (1.42% | ) | (1.41% | ) | |||||||
Ratio of net investment loss to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | (1.30% | ) | (1.46% | ) | (1.52% | ) | (1.89% | ) | (2.31% | ) | (3.71% | ) | |||||||
Portfolio turnover | 124% | 46% | 46% | 47% | 44% | 16% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 71
Financial highlights
Optimum Small-Mid Cap Growth Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $10.930 | $13.750 | $14.110 | $11.640 | $11.230 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment loss3 | (0.100 | ) | (0.265 | ) | (0.240 | ) | (0.257 | ) | (0.233 | ) | (0.146 | ) | |||||||
Net realized and unrealized gain (loss) on investments | (0.550 | ) | (1.894 | ) | 0.183 | 2.727 | 0.645 | 2.876 | |||||||||||
Total from investment operations | (0.650 | ) | (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 | $10.280 | $10.930 | $13.750 | $14.110 | $11.640 | $11.230 | |||||||||||||
Total return4 | (5.95% | ) | (16.56% | ) | (0.27% | ) | 21.22% | 3.67% | 32.12% | ||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $1,396 | $1,620 | $2,187 | $2,285 | $1,665 | $792 | |||||||||||||
Ratio of expenses to average net assets | 2.55% | 2.57% | 2.60% | 2.60% | 2.45% | 2.46% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.78% | 2.76% | 2.97% | 3.11% | 3.34% | 4.76% | |||||||||||||
Ratio of net investment loss to average net assets | (1.72% | ) | (1.92% | ) | (1.80% | ) | (2.03% | ) | (2.07% | ) | (2.06% | ) | |||||||
Ratio of net investment loss to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | (1.95% | ) | (2.11% | ) | (2.17% | ) | (2.54% | ) | (2.96% | ) | (4.36% | ) | |||||||
Portfolio turnover | 124% | 46% | 46% | 47% | 44% | 16% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
72
Optimum Small-Mid Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $10.930 | $13.750 | $14.110 | $11.640 | $11.230 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment loss3 | (0.100 | ) | (0.264 | ) | (0.240 | ) | (0.257 | ) | (0.233 | ) | (0.146 | ) | |||||||
Net realized and unrealized gain (loss) on investments | (0.550 | ) | (1.895 | ) | 0.183 | 2.727 | 0.645 | 2.876 | |||||||||||
Total from investment operations | (0.650 | ) | (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 | $10.280 | $10.930 | $13.750 | $14.110 | $11.640 | $11.230 | |||||||||||||
Total return4 | (5.95% | ) | (16.56% | ) | (0.27% | ) | 21.22% | 3.67% | 32.12% | ||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $29,682 | $34,086 | $40,324 | $36,537 | $19,883 | $7,521 | |||||||||||||
Ratio of expenses to average net assets | 2.55% | 2.57% | 2.60% | 2.60% | 2.45% | 2.46% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.78% | 2.76% | 2.97% | 3.11% | 3.34% | 4.76% | |||||||||||||
Ratio of net investment loss to average net assets | (1.72% | ) | (1.92% | ) | (1.80% | ) | (2.03% | ) | (2.07% | ) | (2.06% | ) | |||||||
Ratio of net investment loss to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | (1.95% | ) | (2.11% | ) | (2.17% | ) | (2.54% | ) | (2.96% | ) | (4.36% | ) | |||||||
Portfolio turnover | 124% | 46% | 46% | 47% | 44% | 16% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 73
Financial highlights
Optimum Small-Mid Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $11.470 | $14.250 | $14.470 | $11.820 | $11.280 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment loss3 | (0.043 | ) | (0.128 | ) | (0.108 | ) | (0.131 | ) | (0.121 | ) | (0.075 | ) | |||||||
Net realized and unrealized gain (loss) on investments | (0.587 | ) | (1.991 | ) | 0.191 | 2.781 | 0.663 | 2.855 | |||||||||||
Total from investment operations | (0.630 | ) | (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 | $10.840 | $11.470 | $14.250 | $14.470 | $11.820 | $11.280 | |||||||||||||
Total return4 | (5.49% | ) | (15.68% | ) | 0.72% | 22.42% | 4.81% | 32.71% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $88,810 | $90,614 | $84,934 | $67,466 | $31,827 | $10,212 | |||||||||||||
Ratio of expenses to average net assets | 1.55% | 1.57% | 1.60% | 1.60% | 1.45% | 1.46% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.78% | 1.76% | 1.97% | 2.11% | 2.34% | 3.76% | |||||||||||||
Ratio of net investment loss to average net assets | (0.72% | ) | (0.92% | ) | (0.80% | ) | (1.03% | ) | (1.07% | ) | (1.06% | ) | |||||||
Ratio of net investment loss to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | (0.95% | ) | (1.11% | ) | (1.17% | ) | (1.54% | ) | (1.96% | ) | (3.36% | ) | |||||||
Portfolio turnover | 124% | 46% | 46% | 47% | 44% | 16% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
74
Optimum Small-Mid Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | ||||||||||||||||||
Ended | Year Ended | to | |||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | ||||||||||||||
(Unaudited) | |||||||||||||||||||
Net asset value, beginning of period | $10.380 | $13.540 | $13.590 | $12.410 | $11.010 | $8.500 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss)3 | 0.002 | (0.025 | ) | (0.020 | ) | (0.022 | ) | (0.055 | ) | (0.046 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | (0.554 | ) | (2.102 | ) | 0.759 | 2.043 | 1.801 | 2.616 | |||||||||||
Total from investment operations | (0.552 | ) | (2.127 | ) | 0.739 | 2.021 | 1.746 | 2.570 | |||||||||||
Less dividends and distributions from: | |||||||||||||||||||
Net realized gain on investments | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||||
Total dividends and distributions | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | |||||||
Net asset value, end of period | $9.810 | $10.380 | $13.540 | $13.590 | $12.410 | $11.010 | |||||||||||||
Total return4 | (5.34% | ) | (16.34% | ) | 5.93% | 17.17% | 16.12% | 30.30% | |||||||||||
Ratios and supplemental data: | |||||||||||||||||||
Net assets, end of period (000 omitted) | $7,838 | $9,145 | $12,721 | $13,300 | $7,297 | $2,126 | |||||||||||||
Ratio of expenses to average net assets | 1.75% | 1.76% | 1.76% | 1.76% | 1.73% | 1.67% | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.13% | 2.09% | 2.32% | 2.58% | 2.61% | 4.08% | |||||||||||||
Ratio of net investment income (loss) to average net assets | 0.04% | (0.20% | ) | (0.16% | ) | (0.17% | ) | (0.47% | ) | (0.69% | ) | ||||||||
Ratio of net investment loss to average net assets | |||||||||||||||||||
prior to fees waived and expense paid indirectly | (0.34% | ) | (0.53% | ) | (0.72% | ) | (0.99% | ) | (1.35% | ) | (3.10% | ) | |||||||
Portfolio turnover | 63% | 53% | 49% | 42% | 46% | 40% |
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 75
Financial highlights
Optimum Small-Mid Cap Value Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | |||||||||||||||||
Ended | Year Ended | to | ||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||||
(Unaudited) | ||||||||||||||||||
Net asset value, beginning of period | $10.030 | $13.190 | $13.350 | $12.280 | $10.970 | $8.500 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||
Net investment loss3 | (0.031 | ) | (0.102 | ) | (0.101 | ) | (0.102 | ) | (0.129 | ) | (0.090 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (0.541 | ) | (2.025 | ) | 0.730 | 2.013 | 1.785 | 2.620 | ||||||||||
Total from investment operations | (0.572 | ) | (2.127 | ) | 0.629 | 1.911 | 1.656 | 2.530 | ||||||||||
Less dividends and distributions from: | ||||||||||||||||||
Net realized gain on investments | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | ||||||
Total dividends and distributions | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | ||||||
Net asset value, end of period | $9.440 | $10.030 | $13.190 | $13.350 | $12.280 | $10.970 | ||||||||||||
Total return4 | (5.72% | ) | (16.79% | ) | 5.27% | 16.35% | 15.35% | 29.83% | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||
Net assets, end of period (000 omitted) | $1,425 | $1,636 | $2,239 | $2,359 | $1,859 | $819 | ||||||||||||
Ratio of expenses to average net assets | 2.40% | 2.41% | 2.41% | 2.41% | 2.38% | 2.32% | ||||||||||||
Ratio of expenses to average net assets | ||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.78% | 2.74% | 2.97% | 3.23% | 3.26% | 4.73% | ||||||||||||
Ratio of net investment loss to average net assets | (0.61% | ) | (0.85% | ) | (0.81% | ) | (0.82% | ) | (1.12% | ) | (1.34% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||||
prior to fees waived and expense paid indirectly | (0.99% | ) | (1.18% | ) | (1.37% | ) | (1.64% | ) | (2.00% | ) | (3.75% | ) | ||||||
Portfolio turnover | 63% | 53% | 49% | 42% | 46% | 40% | ||||||||||||
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
76
Optimum Small-Mid Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | |||||||||||||||||
Ended | Year Ended | to | ||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||||
(Unaudited) | ||||||||||||||||||
Net asset value, beginning of period | $10.020 | $13.190 | $13.350 | $12.280 | $10.970 | $8.500 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||
Net investment loss3 | (0.031 | ) | (0.102 | ) | (0.101 | ) | (0.102 | ) | (0.129 | ) | (0.090 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (0.531 | ) | (2.035 | ) | 0.730 | 2.013 | 1.785 | 2.620 | ||||||||||
Total from investment operations | (0.562 | ) | (2.137 | ) | 0.629 | 1.911 | 1.656 | 2.530 | ||||||||||
Less dividends and distributions from: | ||||||||||||||||||
Net realized gain on investments | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | ||||||
Total dividends and distributions | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | ||||||
Net asset value, end of period | $9.440 | $10.020 | $13.190 | $13.350 | $12.280 | $10.970 | ||||||||||||
Total return4 | (5.72% | ) | (16.79% | ) | 5.27% | 16.35% | 15.35% | 29.83% | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||
Net assets, end of period (000 omitted) | $28,448 | $32,891 | $41,622 | $38,782 | $23,869 | $9,018 | ||||||||||||
Ratio of expenses to average net assets | 2.40% | 2.41% | 2.41% | 2.41% | 2.38% | 2.32% | ||||||||||||
Ratio of expenses to average net assets | ||||||||||||||||||
prior to fees waived and expense paid indirectly | 2.78% | 2.74% | 2.97% | 3.23% | 3.26% | 4.73% | ||||||||||||
Ratio of net investment loss to average net assets | (0.61% | ) | (0.85% | ) | (0.81% | ) | (0.82% | ) | (1.12% | ) | (1.34% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||||
prior to fees waived and expense paid indirectly | (0.99% | ) | (1.18% | ) | (1.37% | ) | (1.64% | ) | (2.00% | ) | (3.75% | ) | ||||||
Portfolio turnover | 63% | 53% | 49% | 42% | 46% | 40% | ||||||||||||
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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) 77
Financial highlights
Optimum Small-Mid Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Six Months | 8/1/032 | |||||||||||||||||
Ended | Year Ended | to | ||||||||||||||||
9/30/081 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | 3/31/04 | |||||||||||||
(Unaudited) | ||||||||||||||||||
Net asset value, beginning of period | $10.580 | $13.720 | $13.720 | $12.470 | $11.040 | $8.500 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||
Net investment income (loss)3 | 0.021 | 0.018 | 0.025 | 0.023 | (0.014 | ) | (0.022 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | (0.563 | ) | (2.125 | ) | 0.764 | 2.068 | 1.790 | 2.622 | ||||||||||
Total from investment operations | (0.542 | ) | (2.107 | ) | 0.789 | 2.091 | 1.776 | 2.600 | ||||||||||
Less dividends and distributions from: | ||||||||||||||||||
Net realized gain on investments | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | ||||||
Total dividends and distributions | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | (0.060 | ) | ||||||
Net asset value, end of period | $10.020 | $10.580 | $13.720 | $13.720 | $12.470 | $11.040 | ||||||||||||
Total return4 | (5.23% | ) | (15.97% | ) | 6.24% | 17.66% | 16.35% | 30.66% | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||
Net assets, end of period (000 omitted) | $63,328 | $66,657 | $71,387 | $54,803 | $26,900 | $9,262 | ||||||||||||
Ratio of expenses to average net assets | 1.40% | 1.41% | 1.41% | 1.41% | 1.38% | 1.32% | ||||||||||||
Ratio of expenses to average net assets | ||||||||||||||||||
prior to fees waived and expense paid indirectly | 1.78% | 1.74% | 1.97% | 2.23% | 2.26% | 3.73% | ||||||||||||
Ratio of net investment income (loss) to average net assets | 0.39% | 0.15% | 0.19% | 0.18% | (0.12% | ) | (0.34% | ) | ||||||||||
Ratio of net investment income (loss) to average net assets | ||||||||||||||||||
prior to fees waived and expense paid indirectly | 0.01% | (0.18% | ) | (0.37% | ) | (0.64% | ) | (1.00% | ) | (2.75% | ) | |||||||
Portfolio turnover | 63% | 53% | 49% | 42% | 46% | 40% | ||||||||||||
1 Ratios and portfolio turnover have been annualized and total return has not been annualized. |
2 Date of commencement of operations; ratios and portfolio turnover have been annualized and total return has not been annualized. |
3 The average shares outstanding method has been applied for per share information. |
4 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
78
Notes to financial statements
Optimum Fund Trust
September 30, 2008 (Unaudited)
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, and Optimum Small-Mid 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. 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. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable 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. Financial futures contracts and options on financial 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 (Board). 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 suspension of trading in a security. The Fund may use fair value pricing more frequently for securities traded primarily in non-U.S. markets because, among other things, most foreign markets close well before the Fund values its securities at 4:00 p.m. Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading or news events, may have occurred in the interim. To account for this, the Fund may frequently value many foreign securities at one time using fair value prices based on third-party vendor modeling tools (“international fair value pricing”).
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.
The Funds evaluate 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 Funds did not record any tax benefit or expense in the current period.
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.
(continues) 79
Notes to financial statements
Optimum Fund Trust
1. Significant Accounting Policies (continued)
Repurchase Agreements — Each Fund may invest in a pooled cash account along with 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.
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, 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.
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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 to $1 billion | |
0.7100% of assets from $1 billion to $1.5 billion | |
0.7000% of assets over $1.5 billion | |
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 to $1 billion | |
0.6675% of assets from $1 billion to $1.5 billion | |
0.6475% of assets over $1.5 billion | |
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: Effective May 27, 2008, TCW Investment Management Company (TCW) replaced Aberdeen Asset Management Inc. as the Optimum Fixed Income Fund’s sub-advisor; Optimum International Fund – Mondrian Investment Partners Limited and AllianceBernstein L.P; Optimum Large Cap Growth Fund – Marsico Capital Management, LLC, T. Rowe Price Associates, Inc.; and effective September 30, 2008, Fred Alger Management, Inc.; Optimum Large Cap Value Fund – Massachusetts Financial Services Company and TCW; Optimum Small-Mid Cap Growth Fund – Columbia Wanger Asset Management, L.P. and, effective June 26, 2008, Wellington Management Company, LLP (Wellington) (Wellington replaced Oberweis Asset Management, Inc. as sub-advisor); 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.
For the six months ended September 30, 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 | ||||||
$499,573 | $570,988 | $2,126,007 | $1,632,443 | $529,989 | $390,987 |
(continues) 81
Notes to financial statements
Optimum Fund Trust
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 prevent total annual operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, brokerage fees, certain insurance costs and non-routine expenses or costs 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 and DMC. These expense waivers and reimbursements apply only to expenses paid directly by each Fund.
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, 2008, | ||||||||||||||||||||||||
operating expense limitation as | ||||||||||||||||||||||||
a percentage of average | ||||||||||||||||||||||||
daily net assets (per annum) | 0.89% | 1.42% | 1.27% | 1.19% | 1.55% | 1.40% | ||||||||||||||||||
Expiration date | 8/1/09 | 8/1/09 | 8/1/09 | 8/1/09 | 8/1/09 | 8/1/09 | ||||||||||||||||||
Through July 31, 2008, | ||||||||||||||||||||||||
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 | 7/31/08 | 7/31/08 | 7/31/08 | 7/31/08 | 7/31/08 | 7/31/08 |
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. For the six months ended September 30, 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 | ||||||
$22,915 | $6,837 | $25,070 | $21,619 | $3,532 | $2,793 |
DSC also provides the Trust with administrative services including financial and tax reporting, corporate governance, and preparation of materials and reports for the Board. 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, the Trust pays DSC a fee at an annual rate of 0.235% of the Trust’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 the 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 September 30, 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 | $266,204 | $150,197 | $568,722 | $448,203 | $88,189 | $49,987 | ||||||||||||||||||
Dividend disbursing, transfer agent and fund | ||||||||||||||||||||||||
accounting oversight fees, administration | ||||||||||||||||||||||||
fees and other expenses payable to DSC | 311,636 | 95,181 | 314,413 | 283,389 | 62,488 | 53,742 | ||||||||||||||||||
Distribution fees payable to DDLP | 218,808 | 61,887 | 165,505 | 166,545 | 29,699 | 28,831 | ||||||||||||||||||
Other expenses payable | ||||||||||||||||||||||||
to DMC and affiliates* | 51,972 | 12,914 | 53,519 | 44,197 | 31,689 | 5,535 |
*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.
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2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)
For the six months ended September 30, 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 | |||||||||||||||||||
$9,683 | $5,869 | $16,570 | $15,908 | $1,490 | $2,632 | |||||||||||||||||||
For the six months ended September 30, 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 | $12,427 | $5,224 | $14,208 | $14,014 | $2,692 | $2,232 | ||||||||||||||||||
Class C | 20,514 | 5,372 | 16,059 | 15,073 | 2,744 | 2,473 |
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 are paid no compensation by the Funds.
3. Investments
For the six months ended September 30 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 | $698,291,371 | $28,216,983 | $583,963,185 | $166,144,194 | $86,625,903 | $32,028,969 | ||||||
Purchases of U.S. government securities | 198,778,345 | — | — | — | — | — | ||||||
Sales other than U.S. government securities | 645,898,996 | 26,848,397 | 577,624,337 | 138,478,848 | 85,871,858 | 34,792,658 | ||||||
Sales of U.S. government securities | 188,097,371 | — | — | — | — | — |
At September 30, 2008, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At September 30, 2008, the cost of investments and unrealized appreciation (depreciation) 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 | $ | 1,013,410,796 | $ | 292,565,753 | $ | 953,457,318 | $ | 922,875,414 | $ | 154,451,576 | $ | 135,178,877 | |||||||||||
Aggregate unrealized appreciation | $ | 9,278,367 | $ | 11,048,332 | $ | 43,530,552 | $ | 36,753,782 | $ | 16,693,402 | $ | 4,329,694 | |||||||||||
Aggregate unrealized depreciation | (61,744,787 | ) | (55,440,613 | ) | (104,630,934 | ) | (128,783,062 | ) | (19,596,757 | ) | (24,793,505 | ) | |||||||||||
Net unrealized depreciation | $ | (52,466,420 | ) | $ | (44,392,281 | ) | $ | (61,100,382 | ) | $ | (92,029,280 | ) | $ | (2,903,355 | ) | $ | (20,463,811 | ) |
(continues) 83
Notes to financial statements
Optimum Fund Trust
3. Investments (continued)
Effective April 1, 2008, the Funds adopted Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157). FAS 157 defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value, and a three level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The Funds’ investment in their entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
Level 1 – inputs are quoted prices in active markets
Level 2 – inputs that are observable, directly or indirectly
Level 3 – inputs are unobservable and reflect assumptions on the part of the reporting entity
The following table summarizes the valuation of each Fund’s investments by the above FAS 157 fair value hierarchy levels as of September 30, 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 | ||||||||||||
Securities | |||||||||||||||||
Level 1 | $ | 141,606,171 | $ | 44,164,416 | $ | 845,510,660 | $ | 808,640,339 | $ | 150,176,852 | $ | 114,122,999 | |||||
Level 2 | 789,694,833 | 203,892,024 | 46,846,276 | 22,205,795 | 1,371,369 | 592,067 | |||||||||||
Level 3 | 29,643,372 | 117,032 | — | — | — | — | |||||||||||
Total | $ | 960,944,376 | $ | 248,173,472 | $ | 892,356,936 | $ | 830,846,134 | $ | 151,548,221 | $ | 114,715,066 | |||||
Derivatives | |||||||||||||||||
Level 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
Level 2 | 1,777,857 | 622,225 | 1,066 | — | — | — | |||||||||||
Level 3 | — | — | — | — | — | — | |||||||||||
Total | $ | 1,777,857 | $ | 622,225 | $ | 1,066 | $ | — | $ | — | $ | — |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
Optimum | Optimum | |||||||
Fixed Income | International | |||||||
Fund | Fund | |||||||
Securities | ||||||||
Balance as of 3/31/08 | $ | 13,845,627 | $ | — | ||||
Net realized loss | (947,216 | ) | — | |||||
Net change in unrealized | ||||||||
appreciation/depreciation | (285,049 | ) | (45,178 | ) | ||||
Net purchases, sales and settlements | 17,030,010 | — | ||||||
Net transfers in and/or out of Level 3 | — | 162,210 | ||||||
Balance as of 9/30/08 | $ | 29,643,372 | $ | 117,032 | ||||
Net change in unrealized appreciation/ | ||||||||
depreciation from investments still held | ||||||||
as of 9/30/08 | $ | (838,878 | ) | $ | — |
There were no Level 3 securities at the beginning or end of the period for Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund and Optimum Small-Mid Cap Value Fund.
84
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 six months ended September 30, 2008 and the year ended March 31, 2008 was as follows:
Six Months Ended September 30, 2008*
Optimum | Optimum | Optimum | Optimum | ||||||||||||||||
Fixed Income | International | Large Cap | Small-Mid Cap | ||||||||||||||||
Fund | Fund | Value Fund | Value Fund | ||||||||||||||||
Ordinary income | $ | 19,881,407 | $ | 2,397,637 | $ | 2,572,090 | $ | 4,834 | |||||||||||
Long-term capital gain | — | 4,475,509 | 11,341,568 | 185,762 | |||||||||||||||
Total | $ | 19,881,407 | $ | 6,873,146 | $ | 13,913,658 | $ | 190,596 | |||||||||||
Optimum Large Cap Growth Fund and Optimum Small-Mid Cap Growth Fund did not make any distributions during the six months ended September 30, 2008. | |||||||||||||||||||
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 |
*Tax information for the six months ended September 30, 2008 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.
5. Components of Net Assets on a Tax Basis
The components of net assets are estimated since the final tax characteristics cannot be determined until fiscal year end. As of September 30, 2008, the estimated 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 | $ | 952,170,107 | $ | 257,040,082 | $ | 957,340,750 | |||||
Undistributed ordinary income | 13,491,803 | 5,608,727 | — | ||||||||
Undistributed long-term capital gain | — | 367,648 | — | ||||||||
Realized losses 4/1/08 – 9/30/08 | (18,752,176 | ) | — | (47,621,871 | ) | ||||||
Other temporary differences | (646,478 | ) | — | — | |||||||
Unrealized depreciation on investments, swap contracts and foreign currencies | (52,875,445 | ) | (44,450,874 | ) | (61,089,398 | ) | |||||
Net assets | $ | 893,387,811 | $ | 218,565,583 | $ | 848,629,481 | |||||
Optimum | Optimum | Optimum | |||||||||
Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||
Value Fund | Growth Fund | Value Fund | |||||||||
Share of beneficial interest | $ | 903,737,847 | $ | 142,286,481 | $ | 122,759,079 | |||||
Undistributed ordinary income | 6,351,648 | — | 26,496 | ||||||||
Realized losses 4/1/08 – 9/30/08 | (38,042,083 | ) | (11,225,869 | ) | (1,282,352 | ) | |||||
Unrealized depreciation of investment and foreign currencies | (92,023,756 | ) | (2,903,356 | ) | (20,463,811 | ) | |||||
Net assets | $ | 780,023,656 | $ | 128,157,256 | $ | 101,039,412 |
(continues) 85
Notes to financial statements
Optimum Fund Trust
5. Components of Net Assets on a Tax Basis (continued)
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, tax deferral of losses on straddles, mark-to-market on foreign currency contracts, mark-to-market on financial futures contracts, and tax treatment of CDS contracts.
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 losses on mortgage- and asset-backed securities, foreign financial future contracts, CDS contracts and gain (loss) on foreign currency transactions. Results of operations and net assets were not affected by these reclassifications. For the six months ended September 30, 2008, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.
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 | $ | (1,422,113 | ) | $ | 321,087 | $ | 90,886 | $ | (67,299 | ) | $ | 713,187 | $ | (4,834 | ) | |||||||||
investment income (loss) | ||||||||||||||||||||||||
Accumulated net realized gain (loss) | 1,422,113 | (321,087 | ) | 75,401 | 67,299 | (5,742 | ) | 4,834 | ||||||||||||||||
Paid-in capital | — | — | (166,287 | ) | — | (707,445 | ) | — |
6. Capital Shares
Transactions in capital shares were as follows:
Optimum | Optimum | Optimum | ||||||||||||||||
Fixed Income | International | Large Cap | ||||||||||||||||
Fund | Fund | Growth Fund | ||||||||||||||||
Six Months | Year | Six Months | Year | Six Months | Year | |||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||
9/30/08 | 3/31/08 | 9/30/08 | 3/31/08 | 9/30/08 | 3/31/08 | |||||||||||||
Shares sold: | ||||||||||||||||||
Class A | 390,541 | 1,591,711 | 82,156 | 249,304 | 264,894 | 894,309 | ||||||||||||
Class B | 9,096 | 65,651 | 746 | 6,171 | 1,988 | 28,718 | ||||||||||||
Class C | 1,701,477 | 7,223,032 | 274,428 | 1,028,302 | 885,649 | 3,760,334 | ||||||||||||
Institutional Class | 11,765,555 | 31,621,851 | 1,886,514 | 4,642,336 | 9,278,107 | 28,248,672 | ||||||||||||
13,866,669 | 40,502,245 | 2,243,844 | 5,926,113 | 10,430,638 | 32,932,033 | |||||||||||||
Shares issued upon reinvestment of dividends | ||||||||||||||||||
and distributions: | ||||||||||||||||||
Class A | 144,598 | 348,052 | 40,193 | 119,290 | — | 126,966 | ||||||||||||
Class B | 15,881 | 42,787 | 7,058 | 21,696 | — | 23,877 | ||||||||||||
Class C | 491,471 | 1,214,403 | 143,932 | 419,667 | — | 498,637 | ||||||||||||
Institutional Class | 1,608,377 | 3,434,748 | 328,264 | 862,968 | — | 1,332,346 | ||||||||||||
2,260,327 | 5,039,990 | 519,447 | 1,423,621 | — | 1,981,826 | |||||||||||||
Shares repurchased: | ||||||||||||||||||
Class A | (840,712 | ) | (1,333,695 | ) | (222,699 | ) | (356,133 | ) | (587,942 | ) | (886,555 | ) | ||||||
Class B | (108,112 | ) | (180,491 | ) | (27,579 | ) | (48,425 | ) | (73,163 | ) | (117,913 | ) | ||||||
Class C | (3,500,170 | ) | (4,683,252 | ) | (721,781 | ) | (1,246,950 | ) | (2,118,441 | ) | (2,956,301 | ) | ||||||
Institutional Class | (8,926,087 | ) | (18,267,065 | ) | (1,783,006 | ) | (2,839,358 | ) | (7,964,980 | ) | (8,897,038 | ) | ||||||
(13,375,081 | ) | (24,464,503 | ) | (2,755,065 | ) | (4,490,866 | ) | (10,744,526 | ) | (12,857,807 | ) | |||||||
Net increase (decrease) | 2,751,915 | 21,077,732 | 8,226 | 2,858,868 | (313,888 | ) | 22,056,052 |
86
6. Capital Shares (continued)
Optimum | Optimum | Optimum | ||||||||||||||||
Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||||||||||||
Value Fund | Growth Fund | Value Fund | ||||||||||||||||
Six Months | Year | Six Months | Year | Six Months | Year | |||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||
9/30/08 | 3/31/08 | 9/30/08 | 3/31/08 | 9/30/08 | 3/31/08 | |||||||||||||
Shares sold: | ||||||||||||||||||
Class A | 270,854 | 825,722 | 51,957 | 141,680 | 50,492 | 126,658 | ||||||||||||
Class B | 3,059,099 | 22,083 | 272 | 3,093 | 172 | 3,405 | ||||||||||||
Class C | 909,169 | 3,516,098 | 152,315 | 593,936 | 153,212 | 544,662 | ||||||||||||
Institutional Class | 8,941,078 | 20,674,129 | 1,325,171 | 3,133,276 | 904,887 | 2,422,447 | ||||||||||||
13,180,200 | 25,038,032 | 1,529,715 | 3,871,985 | 1,108,763 | 3,097,172 | |||||||||||||
Shares issued upon reinvestment of dividends | ||||||||||||||||||
and distributions: | ||||||||||||||||||
Class A | 72,890 | 285,105 | — | 40,657 | 1,401 | 79,601 | ||||||||||||
Class B | 11,542 | 47,416 | — | 7,453 | 268 | 14,904 | ||||||||||||
Class C | 255,515 | 981,957 | — | 149,667 | 5,364 | 293,193 | ||||||||||||
Institutional Class | 928,793 | 3,017,839 | — | 321,939 | 10,191 | 512,807 | ||||||||||||
1,268,740 | 4,332,317 | — | 519,716 | 17,224 | 900,505 | |||||||||||||
Shares repurchased: | ||||||||||||||||||
Class A | (552,595 | ) | (926,045 | ) | (97,514 | ) | (218,457 | ) | (133,833 | ) | (265,211 | ) | ||||||
�� Class B | (73,197 | ) | (118,920 | ) | (12,603 | ) | (21,466 | ) | (12,736 | ) | (24,859 | ) | ||||||
Class C | (2,157,663 | ) | (3,093,510 | ) | (381,668 | ) | (559,418 | ) | (426,549 | ) | (712,330 | ) | ||||||
Institutional Class | (6,772,665 | ) | (9,222,796 | ) | (1,029,073 | ) | (1,516,450 | ) | (892,635 | ) | (1,836,328 | ) | ||||||
(9,556,120 | ) | (13,361,271 | ) | (1,520,858 | ) | (2,315,791 | ) | (1,465,753 | ) | (2,838,728 | ) | |||||||
Net increase (decrease) | 4,892,820 | 16,009,078 | 8,857 | 2,075,910 | (339,766 | ) | 1,158,949 |
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 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 financial 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 financial futures contracts include potential imperfect correlation between the financial futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments.
(continues) 87
Notes to financial statements
Optimum Fund Trust
9. Written Options
During the six months ended September 30, 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 written options during the six months ended September 30, 2008 for Optimum Fixed Income Fund were as follows:
Number of contracts | Premiums | |||||||
Options outstanding at March 31, 2008 | 722 | $ | 501,916 | |||||
Options written | 1,710 | 1,021,969 | ||||||
Options expired | (580 | ) | (338,256 | ) | ||||
Options terminated in closing purchase transactions | (1,852 | ) | (1,185,629 | ) | ||||
Options outstanding at September 30, 2008 | — | $ | — |
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 six months ended September 30, 2008, the Fund entered into CDS contracts as a purchaser of protection. Periodic payments on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment, 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 unrealized 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. For the period ended September 30, 2008, the Fund did not enter into any CDS contracts as a seller of protection.
Credit default swaps may involve greater risks than if the Fund had invested in the referenced obligation directly. Credit default swaps 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.
88
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 The Bank of New York Mellon (BNY 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 BNY 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 (S&P) or Moody’s Investors Service, Inc. (Moody’s) or repurchase agreements collateralized by such securities. The Fund may incur investment losses as a result of investing securities lending collateral in the Collective Trust. 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 is 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 September 30, 2008, the 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 | |||||||
Value | $60,080,775 | $30,483,544 | $50,077,160 | $48,138,763 | $24,086,734 | $12,472,762 | ||||||
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 collateral | $62,216,905 | $32,224,046 | $51,923,119 | $51,748,936 | $25,153,980 | $12,990,827 | ||||||
Non-cash collateral | — | — | — | 252,729 | 46,320 | 382,200 |
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 Funds 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.
The Optimum Fixed Income Fund invests a portion of its assets in high yield fixed income securities, which carry ratings of BB or lower by S&P and/or Ba or lower by Moody’s. 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.
(continues) 89
Notes to financial statements
Optimum Fund Trust
12. Credit and Market Risk (continued)
The Optimum Fixed Income Fund invests in fixed income securities whose value is derived from an underlying pool of 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 issuers 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 six months ended September 30, 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 has 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. Other Information
At September 30, 2008, Optimum Fixed Income Fund had direct exposure to investments with Lehman Brothers Holdings Inc. (“Lehman”) or Lehman’s affiliates, including bonds for which Lehman or Lehman’s affiliates was the issuer or counterparty. On September 15, 2008, Lehman filed for Chapter 11 bankruptcy protection.
With respect to direct exposure to Lehman, Optimum Fixed Income Fund held securities valued at approximately 0.00% of net assets as of September 30, 2008.
As of September 30, 2008, approximately 0.00% and 0.00% of the Fund’s net assets were subject to direct and indirect exposure of Lehman or Lehman’s affiliates (before collateral), respectively.
90
Other Fund information (unaudited)
Optimum Fund Trust
Board Consideration of Optimum Fund Trust Investment Advisory and Sub-Advisory Agreements
At a meeting held on June 12, 2008, the Board of Trustees, including a majority of non-interested or independent Trustees, approved renewal of the Investment Management Agreement between Delaware Management Company (the “Manager” or “DMC”) and each of the six separate funds within the Trust (the “Funds”), as well as Sub-Advisory Agreements between the Manager and the following sub-advisers: AllianceBernstein L.P. (Optimum International Fund); Columbia Wanger Asset Management, L.P. (Optimum Small-Mid Cap Growth Fund); Delafield Asset Management (Optimum Small-Mid Cap Value Fund); Hotchkis and Wiley Capital Management, LLC (Optimum Small-Mid Cap Value Fund); The Killen Group, Inc. (Optimum Small-Mid Cap Value Fund); Marsico Capital Management, LLC (Optimum Large Cap Growth Fund); Massachusetts Financial Services Company (Optimum Large Cap Value Fund); Mondrian Investment Partners Limited (Optimum International Fund); TCW Investment Management Company (Optimum Large Cap Value Fund); T. Rowe Price Associates, Inc. (Optimum Large Cap Growth Fund). The independent Trustees also approved new Sub-Advisory Agreements between the Manager and each of Fred Alger Management, Inc. (Optimum Large Cap Growth Fund) and Wellington Management Company, LLP (Optimum Small-Mid Cap Growth Fund). In reaching such decisions, the Board took into account information furnished and discussed throughout the year at quarterly Board meetings, as well as information furnished specifically for the renewal reviews and new sub-adviser discussions conducted at the June 12, 2008 Board meeting. Information furnished at Board meetings throughout the year included an analysis by DMC (with the assistance of its consultant, Linsco/Private Ledger Corp. (“LPL”)) of the investment performance of each Fund and its sub-advisers, presentations given the Board by portfolio managers from each sub-adviser on a rotating basis, and compliance reports and related certifications furnished by DMC and each sub-adviser. Material furnished specifically in connection with the renewals included: a memorandum from DMC discussing and analyzing the performance of each Fund and its respective sub-adviser(s); a description of fees charged by DMC and each sub-adviser showing them in each case to be competitive with those charged to other comparable investment companies or accounts; copies of the investment management and sub-advisory agreements; a “due diligence” report describing various material items in relation to the personnel, organization and policies of DMC and the sub-advisers; and information on the fees and other benefits realized by DMC (and its affiliates) and the sub-advisers in performing services for the Funds, as well as the revenues and expenses incurred by DMC and its affiliates in performing such services. Information furnished in respect to the new Sub-Advisory Agreements for Wellington and Alger included: investment performance of accounts managed by them having comparable mandates to those of the Optimum Small-Mid Cap Growth Fund and Optimum Large Cap Growth Fund, respectively; the compatibility of their investment policy and methodology with those of other sub-advisers to the Funds they would be advising; material regarding the experience and qualifications of personnel responsible for providing portfolio management services; information concerning their organizational structure and the experience of its investment management personnel; a “due diligence” report describing various material items in relation to their personnel, organization and policies; copies of their compliance policies and procedures and Codes of Ethics; and information on the sub-advisory fees to be charged under their respective Sub-Advisory Agreement along with copies of such Agreements. Information furnished specifically in connection with the renewal process also included a report for each Fund prepared by Lipper Inc. (“Lipper”) comparing each Fund’s investment performance and expenses with those of other mutual funds deemed comparable (“Lipper Report”).
In considering such information and materials, the independent Trustees received assistance from and met separately with independent counsel. While attention was given to all information furnished, the following discusses under separate headings the primary factors taken into account by the Board in its contract approval considerations which were conducted on a Fund-by-Fund basis.
Nature, Extent and Quality of Services. The Trustees were satisfied with the nature, extent and quality of the services provided by DMC and its affiliates to each of the Funds. The Board’s view was based upon factors such as the background and experience of the executives and other Management personnel involved in the Funds’ operations, the quality and thoroughness of the monitoring of each Fund’s investment performance conducted by DMC, the effort and quality of information provided by DMC to the Board in respect to recommendations for sub-advisory changes for certain of the Funds, reports furnished by DMC as to adherence with various compliance and procedural matters such as the Code of Ethics and fair value pricing, and DMC’s success in obtaining meaningful information on a timely basis from each of the Fund’s sub-advisers. The Board also took into account the distribution services provided each Fund by an affiliate of DMC, noting the general growth in Fund assets. Consideration was also given to the due diligence, attention and high quality of services performed by management personnel of DMC and its affiliates in connection with a proposed conversion and outsourcing of fund accounting operations to The Bank of New York Mellon, as well as a transfer during the past year of the Funds’ custodian function from JPMorgan Chase to The Bank of New York Mellon. The nature and quality of the services of the sub-advisers to each Fund was considered primarily in respect to the investment performance of the Funds. The Board was, however, satisfied with the adherence by each sub-adviser with the investment policies and restrictions of the Funds advised, as well as their adherence to various compliance and other procedures based on personal presentations made by sub-advisers’ portfolio managers and DMC reports of its discussions with the sub-advisers, as well as certificates and materials furnished at Board meetings and in connection with the contract renewals or in the case of Wellington Management Company, LLP (“Wellington”) and Fred Alger Management, Inc. (“Alger”), in connection with their proposed sub-advisory agreements. Also in regards to Wellington and Alger, the Board reviewed materials provided by both proposed sub-advisers regarding the experience and qualifications of personnel who will be responsible for managing their respective managed segment for each Fund, and placed weight on the performance of each proposed sub-adviser in managing accounts with comparable mandates to the respective Funds which they are proposed to sub-advise.
(continues) 91
Other Fund information (unaudited)
Optimum Fund Trust
Board Consideration of Optimum Fund Trust Investment Advisory and Sub-Advisory Agreements (continued)
Investment Performance. The Board placed significant emphasis on the investment performance of each Fund. While consideration was given to performance reports and discussions throughout the year (including a detailed discussion of the investment performance of each Fund and its sub-advisers contained in a memorandum from DMC provided to the Board prior to the Meeting), particular attention in assessing performance was given to the Lipper Reports furnished in connection with the contract renewals and the assessment of whether to hire new sub-advisers for certain Funds. The Lipper Reports prepared for each individual Fund showed the annualized total return investment performance of its Class A shares in comparison with a Performance Universe selected by Lipper for the period from inception through March 31, 2008, as well as the one and three year period ending that date. The following summarizes the performance results for each Fund and the Board’s view and in certain cases action taken based on such performance.
Optimum Fixed Income Fund – The Lipper Performance Universe for this Fund consisted of the Fund and all retail and institutional intermediate investment-grade debt funds as selected by Lipper. The Lipper Report showed the Fund’s investment performance since inception was in the second highest quintile of its Lipper Performance Universe, and for the previous one and three year periods were in the middle quintile of such Universe, respectively. The Trustees were generally satisfied with such performance, noting, however, upon DMC’s recommendation, that the Board at a meeting held May 13, 2008 had approved the appointment of TCW Investment Management Company as a sub-adviser in replacement of Aberdeen Asset Management, Inc. with the objective of improving recent performance.
Optimum International Fund – The Lipper Performance Universe for this Fund consisted of the Fund and all retail and institutional international multi-cap core funds as selected by Lipper. The Lipper Report showed the Fund’s investment performance since inception as well as for the previous one year period was in the second lowest quintile of such Universe and for the previous three year period was in the middle quintile of such Universe. The Board found such performance to be acceptable, noting that the Fund’s annualized performance of 15.84% since inception as shown in the Lipper Report was less than one percent below the Performance Universe median for such period.
Optimum Large Cap Growth Fund – The Lipper Performance Universe for this Fund consisted of the Fund and all retail and institutional large-cap growth funds as selected by Lipper. The Lipper Report showed the Fund’s investment performance since inception and for the previous three year period was in the middle quintile of such Universe and for the one year period was in the second lowest quintile of such Universe. The Board endorsed Management’s efforts to improve performance through approving DMC’s recommendation to add Alger as a third sub-advisor to the Fund with the expectation that Alger’s more aggressively managed growth strategy is likely to improve results over a period of time. The Board also noted that the Fund’s performance since inception as shown in the Lipper Report exceeded the median of its Lipper Performance Universe.
Optimum Large Cap Value Fund – The Lipper Performance Universe for this Fund consisted of the Fund and all retail and institutional large-cap value funds as selected by Lipper. The Lipper Report showed the Fund’s investment performance since inception as well as the previous one and three year periods were in the second highest quintile of such Universe. The Board was satisfied with such performance.
Optimum Small-Mid Cap Growth Fund – The Lipper Performance Universe for this Fund consisted of the Fund and all retail and institutional small cap growth funds as selected by Lipper. The Lipper Report showed the Fund’s investment performance since inception was in the middle quintile of such Universe and for the one and three year periods was in the second lowest quintile of such Universe, respectively. The Board was satisfied with Management’s efforts to improve performance through its recommendation to appoint Wellington as a new sub-adviser replacing Oberweis as approved by the Board, noting that historical performance analysis information furnished by DMC to the Trustees indicated that Wellington’s more consistent yet still aggressive investment strategy will work well with that of Columbia Wanger Asset Management, L.P. in improving Fund performance.
Optimum Small-Mid Cap Value Fund – The Lipper Performance Universe for this Fund consisted of the Fund and all retail and institutional small cap value funds as selected by Lipper. The Lipper Report for the Fund showed its investment performance since inception was in the middle quintile of such Universe and for the one and three year periods was in the second lowest quintile of such Universe, respectively. Based on discussions with Management on the performance and complementary investment strategies of each of the Fund’s three sub-advisers, the Board felt that such performance did not warrant any immediate change in sub-advisers. The Board also noted that the Fund’s performance since inception as shown in the Lipper Report exceeded the median of its Lipper Performance Universe.
Comparative Expenses. Attention was also given to a comparative analysis of each Fund’s expenses, including management fees, in comparison to a group of other funds constituting its appropriate Lipper Expense Group. The Lipper Report showed the actual total expenses of each Fund to be the highest or close to the highest in its respective Lipper Expense Group. While intending to discuss fee modifications with Management in the future (in addition to the advisory fee modifications cited below), the Trustees noted that DMC had in the past and would continue through July 31, 2009 to reimburse expenses and waive fees to the extent necessary to keep expenses of each Fund from exceeding certain percentage amounts, and that the expense levels of each Fund had declined from the previous year other than those of the Optimum Small-Mid Cap Value Fund which basically stayed the same. The Board also noted that the fees to be charged by Wellington as sub-adviser to the Optimum Small-Mid Cap Growth Fund were higher than those charged by Oberweis Asset Management, Inc., but would be paid out of the fee paid to DMC in its role as investment manager and would result in no increase in advisory fees to such Fund. Lastly, the Board noted that the addition of Alger as a third sub-adviser to Optimum Large Cap Growth Fund and the fees to be charged by Alger thereon would also not result in any increase in advisory fees paid by the Fund to DMC.
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Board Consideration of Optimum Fund Trust Investment Advisory and Sub-Advisory Agreements (continued)
DMC’s Profitability; Economies of Scale. Based on the size of each Fund and the reimbursement or waiver of expenses by DMC, as well as other profitability information furnished to them by DMC (including information that showed the impact to DMC’s profitability as a result of the proposed sub-adviser changes), the Trustees did not believe that the level of profit being realized by DMC and its affiliates from services provided to any of the Funds were excessive. Trustees were also given information on profits being realized by the sub-advisers in relation to the services being provided to the Funds or in relation to the sub-adviser’s overall investment advisory business. The Board was also provided information on potential fall-out benefits derived or to be derived by DMC or the sub-advisers in connection with their relationship to the Funds such as soft dollar arrangements. The Trustees recognized that as the Funds get larger at some point, economies of scale may result in DMC realizing a larger profit margin on management services provided a Fund. The Trustees also noted that economies of scale may be shared with a Fund and its shareholders through investment management fee breakpoints so that as a Fund grows in size, its effective management fee rate declines. The Optimum Small-Mid Cap Value Fund and Optimum Small-Mid Cap Growth Fund each had less than $140 Million in net assets at March 31, 2008 and the Trustees believed that at such asset levels no meaningful economies of scale existed. The investment management fees for all the other Funds contained breakpoints with each Fund’s asset size being at a high enough level to benefit from such breakpoints and to the extent economies of scale may be realized in the management of any of these Funds, the Trustees believed such schedule of fees provided a sharing of benefits with the Fund and its shareholders. The Board noted that the asset levels of each of the Optimum Large Cap Value Fund and Optimum Large Cap Growth Fund, which at March 31, 2008 were approximately $876 million and $990 million, respectively, were in the last breakpoint under their respective investment management agreements and following discussions with Management, it was agreed that additional breakpoints would be added to the investment management fees of both Funds at the $1 billion and $1.5 billion asset levels. Consequently, effective July 1, 2008, the investment management fee charged the Optimum Large Cap Value Fund was amended to provide new breakpoints of 0.6675% on assets from $1 billion to $1.5 billion and 0.6475% on assets over $1.5 billion, and the investment management fee charged the Optimum Large Cap Growth Fund was amended to provide new breakpoints of 0.71% on assets from $1 billion to $1.5 billion and 0.70% on assets over $1.5 billion.
Board Consideration of Sub-Advisory Agreement with TCW Investment Management Company
At a special meeting held on May 13, 2008, the Board of Trustees, including a majority of non-interested or independent Trustees, approved a new Sub-Advisory Agreement between Delaware Management Company (the “Manager” or “DMC”) and TCW Investment Management Company (“TCW”) for the Optimum Fixed Income Fund. TCW replaced Aberdeen Asset Management, Inc. (“Aberdeen”) as a sub-adviser to the Fund. In reaching such decision, the Board considered and reviewed information about TCW, including its personnel, operations and financial condition, which had been provided by TCW. The Board also reviewed material furnished by DMC (with the assistance of its consultant, LPL), including: a memorandum from DMC reviewing the TCW Sub-Advisory Agreement (the “TCW Agreement”) and the various services proposed to be rendered by TCW; research and analysis concerning DMC’s proposal of TCW; a description of TCW’s proposed sub-advisory fees under the TCW Agreement; information concerning TCW’s organizational structure and the experience of its investment management personnel; a “due diligence” report describing various material items in relation to TCW’s personnel, organization and policies; copies of TCW’s compliance policies and procedures and its Code of Ethics; and a copy of the TCW Agreement. The Board also noted that certain information regarding TCW had been made available to it throughout the year as a result of TCW’s serving as a sub-adviser to the Optimum Large Cap Value Fund.
In considering such information and materials, the independent Trustees received assistance from and met separately with independent counsel. The materials prepared by Management specifically in connection with the approval of the TCW Agreement were sent to the independent Trustees in advance of the meeting. While attention was given to all information furnished, the following discusses under separate headings the primary factors taken into account by the Board in its consideration of the TCW Agreement.
Nature, Extent and Quality of Services. In considering the nature, extent and quality of the services to be provided by TCW, the Board specifically considered that the TCW Agreement contains substantially similar provisions to those in the prior Aberdeen sub-advisory agreement except for the provisions relating to the fees. The Board reviewed materials provided by TCW regarding the experience and qualifications of personnel who will be responsible for managing TCW’s segment of the Optimum Fixed Income Fund, and placed weight on TCW’s performance in managing an existing account (the “TCW Account”) in a similar investment strategy to the one they would employ for the Fund. The Board also considered that TCW would co-manage the Optimum Fixed Income Fund with another adviser, DMC. The Board considered the compatibility of the two advisers’ investment philosophies and methodologies. Based upon these considerations, the Board determined that the nature, extent and quality of the services to be provided by TCW under the TCW Agreement were satisfactory.
Investment Performance. The Board reviewed information on the performance of the TCW Account over various time periods. The Board also reviewed an analysis showing the projected composite investment performance of the Fund that would have resulted from combining the performance of TCW in managing the TCW Account with the performance of DMC in managing its sleeve of the Fund over various time periods measured in several different ways. In respect to such analysis, the Board noted that TCW’s fixed income style seemed a good complement to that followed by DMC. The Board believed such information and analysis evidenced the benefits to the Fund and high quality of portfolio management services expected to be provided by TCW under the TCW Agreement.
(continues) 93
Other Fund information (unaudited)
Optimum Fund Trust
Board Consideration of Sub-Advisory Agreement with TCW Investment Management Company (continued)
Sub-Advisory Fee; Profitability; and Economies of Scale. The Board noted that the fees to be paid to TCW under the TCW Agreement were higher than those charged by Aberdeen, but would be paid out of the fee paid to DMC in its role as investment manager and would result in no increase in costs to the Fund. The Board also noted that the fees to be charged by TCW under the TCW Agreement were less than those charged by TCW to separate accounts having a similar investment mandate. The Board was informed that TCW may receive certain fall-out benefits in connection with its relationship with the Fund, such as soft-dollar arrangements. The Board also noted that the management fee paid by the Fund to DMC would stay the same, and that DMC’s profitability would be slightly reduced based on the fees paid by DMC under the TCW Agreement. Information about TCW’s estimated profitability from its relationship with the Fund was not available because it had not begun to provide services to the Fund. The Board also noted that economies of scale are shared with the Fund and its shareholders through DMC’s investment management fee breakpoints, so that as the Fund grows in size its effective management fee rate declines. Based upon such facts, the Board believed that the fees to be charged by TCW under the TCW Agreement were fair and reasonable in relation to the services being provided.
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About the organization
This semiannual 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 Theodore K. Smith 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 www.optimummutualfunds.com ; and (iii) on the Commission’s Web site at 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 www.optimummutualfunds.com; and (ii) on the Commission’s Web site at www.sec.gov.
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Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. 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 Companies 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 second 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
THEODORE K. SMITH | |
By: | Theodore K. Smith |
Title: | Chief Executive Officer |
Date: | December 1, 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.
THEODORE K. SMITH | |
By: | Theodore K. Smith |
Title: | Chief Executive Officer |
Date: | December 1, 2008 |
RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | December 1, 2008 |