UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21335
Exact name of registrant as specified in charter:
Optimum Fund Trust
Address of principal executive offices:
2005 Market Street
Philadelphia, PA 19103
Name and address of agent for service:
David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103
Registrant’s telephone number, including area code: (800) 523-1918
Date of fiscal year end: March 31
Date of reporting period: March 31, 2009
Item 1. Reports to Stockholders
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Optimum Fund Trust | ||
May 29, 2009 | ||
This brochure accompanies an annual report for the information of Optimum Fund Trust shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Optimum Fund Trust. You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the Funds. Prospectuses for Optimum Fund Trust are available from your financial advisor, online at www.optimummutualfunds.com, or by phone at 800 914-0278. Please read the prospectus carefully before you invest or send money. The figures in the annual report for Optimum Fund Trust represent past results, which are not a guarantee of future results. The return and principal value of an investment in a Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. | ||
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Optimum Fixed Income Fund | |||
Optimum International Fund | |||
Optimum Large Cap Growth Fund | |||
Optimum Large Cap Value Fund | |||
Optimum Small-Mid Cap Growth Fund | |||
Optimum Small-Mid Cap Value Fund | |||
Annual Report | |||
March 31, 2009 | |||
Table of contents
> Portfolio management review | |
Optimum Fixed Income Fund | 1 |
Optimum International Fund | 4 |
Optimum Large Cap Growth Fund | 6 |
Optimum Large Cap Value Fund | 9 |
Optimum Small-Mid Cap Growth Fund | 12 |
Optimum Small-Mid Cap Value Fund | 14 |
> Performance summary | |
Optimum Fixed Income Fund | 18 |
Optimum International Fund | 22 |
Optimum Large Cap Growth Fund | 24 |
Optimum Large Cap Value Fund | 26 |
Optimum Small-Mid Cap Growth Fund | 28 |
Optimum Small-Mid Cap Value Fund | 30 |
> Disclosure of Fund expenses | 32 |
> Sector/Country allocations, | |
credit quality breakdown and top 10 holdings | 34 |
> Financial statements | |
Statements of net assets | 38 |
Statements of assets and liabilities | 80 |
Statements of operations | 81 |
Statements of changes in net assets | 82 |
Financial highlights | 85 |
Notes to financial statements | 109 |
> Report of independent | |
registered public accounting firm | 122 |
> Other fund information | 123 |
> Board of trustees and officers addendum | 124 |
> About the organization | 126 |
The views expressed in this report are as of March 31, 2009, and are subject to change at any time based on
market or other conditions. The portfolios are 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.
© 2009 Delaware Distributors, L.P.
All third-party trademarks are the property of their respective owners.
Portfolio management review
Optimum Fixed Income Fund
April 7, 2009
Performance preview (for the year ended March 31, 2009) | ||||
Optimum Fixed Income Fund (Class A shares) | 1-year return | -7.82% | ||
Barclays Capital U.S. Aggregate Index (benchmark) | 1-year return | +3.14% | ||
For complete, annualized performance for Optimum Fixed Income Fund, please see the table on page 16. |
Advisor
Delaware Management Company (DMC)
Sub-advisor
TCW Investment Management Company (TCW)
Optimum Fixed Income Fund underperformed its benchmark, returning -7.82% at net asset value and -11.96% at maximum offer price for the fiscal year ended March 31, 2009 (both figures reflect performance for Class A shares with all distributions reinvested). By comparison, the Fund’s benchmark — the Barclays Capital U.S. Aggregate Index (formerly the Lehman Brothers U.S. Aggregate Index) — returned +3.14%. For complete annualized performance, please see the table on page 16.
Although investors have experienced many extremes since the start of the credit crisis, none compared to the historic economic and market events that took place during the latter half of the fiscal period. These were among the events:
- The federal funds target rate dropped to effectively zero.
- Yields on 10-year Treasury notes declined to almost 2.0%.
- In 2008 the S&P 500 Index completed its worst calendar year, in terms of performance, since the Great Depression.
- Corporate bond spreads exceeded 6% in investment grade and 19% in high yield.
- Conforming 30-year fixed mortgage rates approached record lows of nearly 4.7%.
Furthermore, truly historic weakness across a wide range of indicators, including employment data, retail, housing and auto sales, and forecasted gross domestic product fueled a “flight to quality” across investment sectors.
In recent months, the U.S. Federal Reserve had been a primary source of extraordinary actions, which included its plan to purchase more than $1.7 trillion in government securities, the expansion of the Term Asset-Backed Securities Loan Facility (TALF) to include commercial mortgage-backed securities (CMBS) and non agency mortgage-backed securities (MBS), and the more than 100% year-over-year growth in the monetary base. These initiatives, which are likely to push the size of the Fed’s balance sheet to more than $3 trillion, have been made in an attempt to help stabilize the economy by late 2009 over the near term.
DMC
The portion of Optimum Fixed Income Fund managed by DMC employs a diversified “core plus” investment strategy. This means that DMC invests the core of its assets under management in U.S. investment grade securities, and then strategically allocates other assets to additional fixed income markets. These sectors include U.S. high yield bonds, as well as established and emerging international markets.
As the Fund’s fiscal year started in 2008, the economy had already entered a recession as defined by the National Bureau of Economic Research. The U.S. Congress and the Bush administration attempted to combat the slowdown with a stimulus package aimed at helping consumer spending. By the first quarter of 2008, we had repositioned our high grade corporate exposure in an attempt to be more defensive. We invested in traditionally defensive sectors, such as energy, utility, communications, healthcare, and non cyclical industrials. We also reduced emerging market exposure and increased agency debt (at the expense of very low yielding U.S. Treasury notes) during the Fund’s fiscal year. Even with
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Portfolio management review
Optimum Fixed Income Fund
these risk management measures, the Fund experienced price declines as investors intensely sold off virtually all “risk” during the fourth quarter of 2008. The hardest-hit areas of the holdings were the high yield bond and loan areas, emerging markets, and non agency prime mortgage investments.
In particular, during the fiscal year our portion of the Fund included exposure to certain underperforming sectors (such as high yield bonds, non agency mortgage bonds, and emerging markets bonds) which are not represented in the Barclays Capital U.S. Aggregate Index. Our high yield bond exposure during the Fund’s fiscal year was meaningfully influenced by a general decline in high yield bond prices. This sector experienced deterioration as hedge funds and other institutional investors experienced redemptions that led to significant selling pressure. The continued environment of house price depreciation and rising foreclosures significantly influenced the deterioration of pricing of non agency mortgage bonds. Emerging market bonds and currencies were heavily influenced by the sharp slowdown in global economic activity and also performed poorly during the period. Each of these sectors contributed to our underperformance versus the Fund’s benchmark.
After the failure of Lehman Brothers, the nationalization of AIG, and the application of Troubled Asset Relief Program (TARP) funds, our analysts began to grow more comfortable with investments in the finance and banking sectors. We began adding to positions in this area after the initial TARP grants. In mid-December, with high grade corporate yield premiums near all-time highs, we increased investments in this area. We also increased other high-quality corporate sectors at the expense of agency debt and agency mortgage-backed securities. We also added high yield corporate bonds and loans to the holdings. Although the higher-quality parts of the high yield bond and loan areas experienced nice rallies, particularly late in the fiscal year, the performance of the high grade corporate sector has been somewhat disappointing. The Fund’s allocation to banking includes what we consider well-run and well-capitalized banks, yet these bonds have failed to participate with other sector rallies. We will closely monitor this situation for possible risk management remedies.
TCW
Due to the extreme market volatility that took place during the fiscal year, our strategy included opportunistically liquidating many of our CMBS, asset-backed securities, and corporate bond holdings as market conditions allowed. We believe we were successful in selling these positions at relatively attractive levels, and used the proceeds to purchase both agency and non agency mortgages. We believe there is still value in these sectors because assets remain at relatively low trading levels, with some offering double-digit yields.
Regarding detractors to performance, the non agency collateralized mortgage obligation (CMO) sector continued to underperform for the period, as further downgrades and forced selling continued to weigh on the market. Our exposure to these non agency CMOs, which are not represented in the Barclays Capital U.S. Aggregate Index, contributed to our significant underperformance versus the Fund’s benchmark during the fiscal year.
However, this sector showed signs of improvement toward the end of March 2009, driven primarily by the announcements of government intervention in the housing market. As prices in the mortgage market continued to depend more on technical considerations than on fundamental values, we added non agency CMOs to our portfolio. We believe these securities offer deep discounts and very attractive yields.
Agency mortgage performance during the period continued to be strongly influenced by the unprecedented number of new government programs and initiatives, as well as the general weakness of the housing market and economy. We have found increased value in agency CMOs, as liquidity concerns continue to keep less opportunistic investors sidelined. Specifically, we have been purchasing agency inverse interest only securities in our portfolio because we believe they are being priced with the expectation of elevated future prepayment levels.
2
Weak commercial real estate fundamentals and macroeconomic concerns adversely affected our CMBS holdings. In addition, CMBS is not a sector that is heavily represented in the Barclays Capital U.S. Aggregate Index, and the losses incurred by the CMBS portion of our portfolio added to our underperformance versus the Fund’s benchmark. Toward the end of the period, however, we pared down our CMBS exposure and focused on reducing our holdings in more credit-sensitive and longer-duration bonds. As a result, we were able to mitigate losses in this sector, by avoiding the massive widening of CMBS spreads during the fourth quarter of 2008.
Our outlook for CMBS remains cautious because current market conditions seem to be dictated by government initiatives. We are also wary because of deteriorating real estate fundamentals, rising delinquencies, and rating downgrades. The corporate market has remained difficult, with market activity slowing toward the end of the period. We remain diligent and focused on collateral quality, cash flow, and structure as a basis for security selection.
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Portfolio management review
Optimum International Fund
April 7, 2009
Performance preview (for the year ended March 31, 2009) | ||||
Optimum International Fund (Class A shares) | 1-year return | -46.64% | ||
MSCI EAFE Index (benchmark) | 1-year return | -46.20% | ||
For complete, annualized performance for Optimum International Fund, please see the table on page 19. |
Advisor
Delaware Management Company (DMC)
Sub-advisors
Mondrian Investment Partners Limited (Mondrian)
BlackRock Advisors LLC (BlackRock)
The already deeply troubled global economy deteriorated sharply in the second half of 2008 and into the new year. Leading economic indicators registered a significant and synchronized downturn in global growth during the Fund’s fiscal year ended March 31, 2009. Stocks were extremely weak on the year as a result of world-wide economic turmoil. Monetary and fiscal authorities around the globe struggled to gauge the magnitude and composition of policy action appropriate to address both tightening credit conditions and rapidly weakening demand. Governments and central banks took unprecedented action with unprecedented monetary and fiscal stimulus in an effort to reignite the flow of credit and spur economic growth.
Stocks generally rallied during a roughly six-week period that ran from late November 2008 through early January 2009 in which the benchmark MSCI EAFE (Europe, Australasia, Far East) Index advanced more than 20%. However, the gain for that index was followed by an extreme decline into March 2009. The difficult one-year period that ended March 31, 2009, closed with another several-week rally that stemmed from signs recessionary data might be moderating in the United States. Generally, global markets exhibited a high degree of volatility throughout the year due to the extreme lack of visibility regarding future corporate earnings and the difficulty of anticipating when the financial markets and the economy will begin to stabilize.
Overall, markets encompassed by the Fund and MSCI EAFE fell by at least 40% during the fiscal year, with the exception of Japan, which declined by 36%. Ireland was the worst performing market in the whole of EAFE, down almost 75%, and Germany, France, and the United Kingdom were each down by almost 50%. The Pacific region fared a little better than Europe. Australia and New Zealand fell by 45% and 47%, respectively, over the fiscal year. Hong Kong declined 40%, and Singapore was down 48%.
Mondrian
We believe we have a distinct value style in our management of equities and aim to keep our holdings in a position of low volatility while attempting to benefit from competitive performance in declining markets. All sectors represented in the portion of the Fund we managed fell during the fiscal period ended March 31, 2009. The strongest sectors were healthcare and telecommunications services, which have historically performed well during economic downturns. The weakest sector was financials, which incurred a precipitous decline of almost 60%. The materials sector also fell sharply.
Regarding notable country weightings, our position in the Taiwanese market and our avoidance of the underperforming Irish, Greek, and Austrian markets were helpful. An underweight position in the outperforming Swiss market, including exposure to Swiss currency, was a drag on performance.
Our currency hedges, in which we moved out of overvalued and underperforming sterling, and out of the euro, contributed to overall Fund performance. An overweight in the Australian dollar was not helpful as that currency fell strongly over the period. This disappointment was offset by our overweight in the Japanese yen, which rose strongly against the dollar.
4
The strongest performing stocks in our portion of the Fund were in Asia and include Hong Kong Electric Holdings and Taiwan Semiconductor Manufacturing. Some of our financial stocks experienced a sharp decline in price as the effects of the financial crisis were felt across the sector. Stocks that performed weakly included the Belgian financials company Fortis.
BlackRock
After assuming sub-advisory responsibility for a portion of Optimum International Fund in December 2008, the management team immediately realigned its portion of the Fund to better reflect our investment style and fundamental views. BlackRock manages its portion of the Fund based on a consistently applied active investment process that is highly disciplined, research-intensive, and attentive to risk. Through rigorous analysis of companies and their respective industries, we seek to identify companies that are well positioned to meet or exceed consensus expectations and potentially offer an attractive risk and reward opportunity.
Given the uncertain outlook, and our preferred approach of balancing risk exposures across the holdings we select, our performance relative to the benchmark index was driven by individual stocks rather than broad sector allocation decisions. The financial sector was one of the weakest performing sectors, but it was our biggest source of strength compared to the benchmark, as our holdings fared better than the index grouping and we had less overall exposure to the sector. Other significant contributors to performance came from industrials stocks, an overweight compared to the benchmark in the materials sector, and an underweight in energy.
In contrast, consumer discretionary holdings detracted from relative results, as did our underweight in stocks from Asia, excluding Japan. Europe and Japan were the weakest performing regions during the last quarter of the fiscal year.
The strength of the U.S. dollar against other currencies also weighed on returns during the time we managed assets for the Fund, although our sleeve’s exposure was largely in line with that of the benchmark.
At the end of the reporting period, the BlackRock-managed portion of the Fund remained relatively neutral versus the benchmark with respect to sector and regional positioning. In our opinion, strong stock selection and sound risk management offer the best chance of success in the current environment.
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Portfolio management review
Optimum Large Cap Growth Fund
April 7, 2009
Performance preview (for the year ended March 31, 2009) | ||||
Optimum Large Cap Growth Fund (Class A shares) | 1-year return | -37.70% | ||
Russell 1000® Growth Index (benchmark) | 1-year return | -34.28% | ||
For complete, annualized performance for Optimum Large Cap Growth Fund, please see the table on page 22. |
Advisor
Delaware Management Company (DMC)
Sub-advisors
Marsico Capital Management, LLC (Marsico)
T. Rowe Price Associates, Inc. (T. Rowe Price)
Fred Alger Management, Inc. (Fred Alger)
U.S. equities were pummeled for much of the Fund’s fiscal year ended March 31, 2009, battered by collapsing economic growth, dysfunctional credit markets, a hobbled housing industry, and a massive investor “flight to safety,” among other factors. Negative economic developments trumped a remarkable and enormous amount of fiscal and monetary policy responses that were enacted or announced around the globe, geared at stabilizing the capital markets and stimulating economic activity.
The Russell 1000 Growth Index registered steep double-digit declines over the 12-month period, although sector performances varied widely. Healthcare, consumer staples, and telecommunication services were the best performing sectors, as investors flocked to the traditionally defensive stocks. The financials sector was the worst performer, with widespread concern about the shortage of capital at many firms. The energy, utilities, industrials and business services sectors also performed poorly as global demand stalled and energy prices declined.
Some economic clouds began to recede as the period drew to a close, and stock markets showed signs of life. But the displacement caused by massive deleveraging among financial institutions hardly seems over, and continued strains from the economic recession are likely to remain considerable for some time. The major recession has resulted in extremely low valuations of equities relative to other asset classes based on certain analyses. Corporate earnings could be a telltale sign of economic recovery and renewed consumer and investor confidence.
Marsico
The Marsico investment approach emphasizes the stocks of what we believe are high-quality companies with compelling potential for long-term capital appreciation. The investment process combines top-down macroeconomic and industry analysis with bottom-up stock selection. A fundamental aspect of our approach is that we internally formulate an investment hypothesis and then rigorously test that hypothesis through multi pronged, hands-on analysis.
During the Fund’s fiscal year, we increased our exposure to information technology, materials, and consumer staples, and we decreased exposure to telecommunication services, energy, and financials sectors. These changes were primarily a result of our standard process for selecting stocks. Stock choices in the materials sector were positive contributors to performance during the period. Collectively, our holdings in the sector outperformed those of the comparable benchmark-index sector.
For much of the year, our portion of the Fund maintained an overweight position in the financials sector, the weakest performing sector in the benchmark index. This positioning hurt performance results. Stock selection within the industrials sector was also a source of underperformance for our segment of the Fund. Railroad operators Union Pacific and Norfolk Southern, and aerospace-defense companies General Dynamics and Lockheed Martin were among the largest individual detractors during the year.
6
By maintaining an underweighted posture in healthcare and consumer staples, the two strongest performing sectors in the benchmark index, our portion of the Fund incurred an opportunity cost.
T. Rowe Price
Energy holdings were the leading source of strength in our section of the Fund, while significant underweights compared to the benchmark index in industrials and business services, and an avoidance of utilities stocks, also contributed to overall results. Our consumer staples and telecommunication services holdings were sources of weakness.
Large integrated oil companies, which are less reliant on energy prices, were the primary driver of performance for the T. Rowe Price–managed segment of the Fund. Companies such as Chevron, Exxon Mobil, and Petroleo Brasileiro outperformed the overall sector as energy prices declined sharply in the second half of 2008. Our portion of the Fund remained slightly underweight to the benchmark in energy stocks at the Fund’s fiscal year end.
Schlumberger, the global oilfield services company, was a notable underperformer, as was Smith International, the Texas-based supplier of products to the gas and oil industry. Both companies are heavily influenced by the price of oil and therefore sustained severe losses as energy prices declined in the second half of 2008. We maintained positions in both firms, believing in their ability to rebound with the increasing global demand for petroleum and other energy sources.
Industrials and business services were among the worst performers in the Russell 1000 Growth Index, although Danaher, a diversified machinery company, was a source of relative strength for the Fund. We believe the company’s outperformance is a benefit of its diversification, which traditionally has offered opportunity for longer-term, more stable growth and fewer fluctuations based on change in the marketplace. Our portion of the Fund remains underweight to the benchmark in industrials, with concentrations in just a few industries, such as machinery, air freight, and logistics. Growth opportunities in the sector appear limited to us, given the dramatic falloff in global demand. Consumer staples was by far the leading area of underperformance in our portion of the Fund, due to both the weaker returns generated by our holdings and our significant underweight to the sector, which was among the strongest in the Russell 1000 Growth Index. Investors favored these defensive stocks, which are typically less sensitive to market volatility, and pushed valuations to inflated levels.
Our telecommunication services holdings were also a source of relative weakness for the Fund. The market seemed to favor large diversified companies rather than the wireless communication companies that we favor.
Fred Alger
We employ a bottom-up investment process to identify what we believe are the fastest-growing companies in their respective sectors. Due to our experience and expertise in information technology and healthcare, we have traditionally held large weightings in these two sectors, which were the largest in our portion of the Fund at the end of the Fund’s fiscal year.
The information technology and consumer staples sectors were sources of strength relative to the benchmark index, while materials and financials were weak.
Within the index, industrials were particularly weak during the period, but we were underweight this area because, as growth investors, we generally avoid owning stocks driven by commodity prices or economic cycles. We prefer to own companies that we believe are undergoing positive life-cycle changes or high unit-volume growth. We believe these factors make them the fastest-growing companies in their sectors.
Microsoft was among the best performers in our portion of the Fund. Despite what has been espoused in the media, we believe Microsoft continues to be a growth company. Its growth prospects remain solid compared to its price in our opinion. Microsoft has displayed continued growth in its software lines and is set to introduce a new operating system later this year or early next year. Importantly, approximately 70% of its revenue is coming from areas
(continues) 7
Portfolio management review
Optimum Large Cap Growth Fund
other than its Windows operating system. We believe there will continue to be a place for Microsoft as it looks to increase scale to compete with Google.
Google was another important contributor, as the company benefited from a growing international volume of Web searches during the period. We continue to hold Google stock because of its existing ability to generate free cash flow and its high level of liquidity.
Weatherford International and Nintendo were weak performers. Oilfield services company Weatherford suffered a 1% decline in its North American active rig count between 2007 and 2008, according to the company. We have maintained our position in the stock and believe the company can deliver value to shareholders as it shifts away from the North American market toward markets in the Eastern Hemisphere.
Nintendo suffered from what we consider indiscriminate selling as the market fell. We believe that the gaming market retains some recession-proofing and that the company has good growth prospects. It continues to innovate, introducing new products and expanding product lines to compete.
8
Optimum Large Cap Value Fund
April 7, 2009
Performance preview (for the year ended March 31, 2009) | ||||
Optimum Large Cap Value Fund (Class A shares) | 1-year return | -38.97% | ||
Russell 1000® Value Index (benchmark) | 1-year return | -42.42% | ||
For complete, annualized performance for Optimum Large Cap Value Fund, please see the table on page 24. |
Advisor
Delaware Management Company (DMC)
Sub-advisors
TCW Investment Management Company (TCW)
Massachusetts Financial Services Company (MFS)
During the Optimum Large Cap Value Fund fiscal year, which ended March 31, 2009, the peaking credit crisis in the mortgage market and related industries effected huge changes in the economies of the United States and countries around the world. The subsequent effects of government intervention were felt across the economy through banking bailouts, the takeover of AIG, and the conversion of Fannie Mae and Freddie Mac. U.S. government action resulted in the Troubled Asset Relief Program (TARP) and the Term Asset-Backed Securities Loan Facility (TALF).
Early in 2008, troubles in the housing and mortgage markets seemed to suggest only a minor slowdown in corporate profitability and economic growth. Beginning in September 2008, however, overall economic activity essentially ground to a halt as troubles in the financial sector suddenly mushroomed. What had previously been a problem of large financial institutions holding poorly performing assets quickly became a widespread contraction in credit markets. Valuation multiples in the stock market also contracted significantly while risk premiums in the bond market soared.
Gross domestic product data released in February 2009 indicated that the U.S. economy had shrunk by more than 6.0% during the fourth quarter of 2008, and that almost every major component of the economy (with the notable exception of government spending) declined. While a reduction in exports and a decline in the equipment and software sector were notable, retail sales figures were perhaps most worrisome, as consumers significantly cut back on their spending during the quarter.
Equity investors seemed to take their cues from the almost daily dose of economic news, driving major indices to levels not seen in more than 10 years. For example, the Dow Jones Industrial Average nosedived below 6,600, while the S&P 500 Index dropped below 700. Beginning in mid-March 2009, however, investors welcomed tentative signs that the dramatic economic weakening of the prior six months was potentially giving way to a moderation in the overall contraction and major equity indices climbed off their lows.
Signs of optimism surfaced in March as some of the economic data had a more positive tone that suggested to some that the recession had perhaps bottomed. For example, the U.S. Commerce Department reported that durable-goods orders increased in February. It also announced that new-home sales exceeded expectations. In addition, a National Association of Realtors report showed that existing-home sales rose in February.
TCW
Our strategy in the Fund has not changed over the fiscal year. Specifically, the investment philosophy and process is designed to select securities based on fundamental stock selection rather than economic trends. In fact, we believe that increased volatility has presented great opportunities that fit within our parameters. Consequently, we have attempted to take advantage of these opportunities by selling certain positions at our upside price targets. We believe we are also finding attractive companies with upside catalysts that currently meet our valuation criteria.
When comparing returns to the benchmark index, sector positioning played a role. Our portion of the Fund benefited from an overweight in telecommunications, one
(continues) 9
Portfolio management review
Optimum Large Cap Value Fund
of the best performing sectors during the year, and an underweight in poor-performing industrials.
Our overweight position in consumer discretionary stocks, which slightly outperformed the broader market, also contributed favorably. Our holdings in this sector were led by Regal Entertainment Group and Gap, as well as by home improvement company The Home Depot and homebuilder Lennar. The latter pair benefited late in the period as U.S. sales of previously owned homes climbed unexpectedly in February 2009. Bargain hunters in the residential housing market took advantage of foreclosures, easier access to financing, and improved mortgage rates.
Other sector weightings compared to the benchmark played a role in downside performance. An overweight in materials and underweights in healthcare and information technology detracted from performance.
The worst performing and most talked-about sector of the economy in 2008 and the first quarter of 2009 has of course been financials. Although we sold several financial stocks in the second half of 2008, including multi nationals American International Group and Citigroup, this sector as a whole had negligible consequences on overall performance relative to the benchmark index.
Among individual contributors to relative performance were Chevron and Anadarko Petroleum, in the energy sector, and telecommunications company Qwest Communications International.
Materials stocks Alcoa, E. I. du Pont de Nemours and Company (DuPont), and Louisiana-Pacific struggled during the fiscal year, which prompted us to sell both Alcoa and Louisiana-Pacific. Based on our fundamental review, we decided to add slightly to our position in DuPont.
After oil prices dropped precipitously in the latter half of 2008, we took advantage of the declining energy stock prices and initiated positions in Valero Energy, BP, Marathon Oil, Anadarko Petroleum, and Baker Hughes. In the battered financial sector we initiated positions in Invesco and Annaly Capital Management.
We believe that as confidence levels stabilize, investors’ outlooks should begin to move beyond day to day. When this occurs, we believe it could help investors who are focused on bottom-up stock selection.
MFS
While the last fiscal year has been an extremely difficult time in the market, we continue to manage with a bottom-up, fundamentally driven investment process. We believe the selloff in the market has given us an opportunity to buy stocks trading in line or at a discount to the overall market.
We believe the decreased appetite for risk over the last year has generally helped our investment choices. We pay careful attention to risk management and all MFS investment decisions are driven by the fundamentals of each individual opportunity from relative performance.
The largest contribution to performance relative to the benchmark during the period in our section of the Fund came from avoiding or underweighting many of the hardest hit names within financial services. We did also get positive returns from financial services firms Citigroup and Bank of New York Mellon, which fared better than many other financial stocks. Avoiding a position in insurance firm American International Group, on the other hand, benefited relative results, as that stock created a significant drag on the index. That said, a handful of our financial holdings including Allstate, MetLife, and State Street, did not escape market sentiment and suffered declines.
Stock selection within the industrial goods and services sector helped relative performance, as did our stock selection in technology, where Oracle, Intel, and International Business Machines were Fund contributors. Names from other sectors that aided relative results included French integrated oil company Total, General Electric, and the pharmaceutical company Wyeth.
Certain sector positionings compared to the benchmark detracted from returns. For example, underweight exposures to energy, utilities, and communications
10
detracted from relative performance. Among individual stocks, Exxon Mobil and Verizon Communications were examples of detractors.
Lastly, it is also common for our holdings to have a different currency exposure than the benchmark. During this reporting period, that currency exposure was a detractor from performance compared to the benchmark index.
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Portfolio management review
Optimum Small-Mid Cap Growth Fund
April 7, 2009
Performance preview (for the year ended March 31, 2009) | |||
Optimum Small-Mid Cap Growth Fund (Class A shares) | 1-year return | -40.07% | |
Russell 2500™ Growth Index (benchmark) | 1-year return | -38.14% | |
For complete, annualized performance for Optimum Small-Mid Cap Growth Fund, please see the table on page 26. The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions. |
Advisor
Delaware Management Company (DMC)
Sub-advisors
Columbia Wanger Asset Management
(Columbia WAM)
Wellington Management Company LLP (Wellington)
Early in the Fund’s fiscal year, troubles in the housing and mortgage markets seemed to suggest only a minor slowdown in corporate profitability and economic growth. Beginning in September 2008, however, overall economic activity essentially ground to a halt as troubles in the financial sector suddenly mushroomed. What had previously been a problem of large financial institutions holding poorly performing assets quickly became a widespread contraction in credit markets.
Small-cap equities came under substantial pressure toward the end of 2008 as a significant downturn in global economic activity led to market declines. While hardly a surprise, the National Bureau of Economic Research announced in December 2008 that the U.S. economy had officially been in recession since the end of 2007. U.S. unemployment increased to its highest level in 15 years, and the Case-Shiller Home Price Index™ showed a year-over-year decline of 18% in October.
The Federal Reserve and U.S. Treasury continued their efforts to stabilize the economy through a number of initiatives, including a reduction in the federal funds rate to a target range of between 0% and 0.25%, capital infusions in troubled financial institutions, and the announcement of a plan to purchase $600 billion in mortgage-backed securities. Combined with these efforts to improve credit conditions, Washington also agreed to provide $17.4 billion in loans to support struggling automakers General Motors and Chrysler.
Small-cap equities posted negative returns for the fiscal year. While credit markets have improved slightly, corporate bond yields at fiscal year-end remained near all-time highs and banks in many cases continued to show an unwillingness to lend. The Treasury and the Federal Reserve have continued providing support to the financial sector and credit markets by way of direct capital infusions into banks, as well as the establishment of the Term Asset-Backed Securities Loan Facility (TALF), a program designed to provide low-cost financing for purchasers of asset-backed securities.
Some economic clouds began to recede as the period drew to a close and equity markets rallied substantially during the last two weeks of March 2009. Depressed valuations, combined with better-than-feared economic data, led to significant outperformance from more-economically sensitive areas of the small-cap investment universe.
Columbia WAM
Energy stocks in the Columbia WAM portion of Optimum Small-Mid Cap Growth Fund took the brunt of the market decline. Oil prices plummeted during the fiscal period and energy stock prices for oil service stock FMC and natural gas producer Carrizo Oil & Gas ended at less than half their starting market value.
Consumer stocks also saw dramatic markdowns as shoppers cut back on spending. In addition to the general sector downturn, Abercrombie & Fitch sales suffered from the company’s decision to refrain from discounting its prices. Urban Outfitters, an apparel and home specialty goods retailer, had strong sales growth for the first three quarters of 2008. Yet, investors seemed to fear that the faster-growing consumer companies had farther to fall, and the stock was taken down along with others in the sector.
12
Some bright spots aided performance for the period. ITT Educational Services announced a significant increase in student enrollment as the economic slowdown and subsequent job losses drove people back to school. The stock was the best performer in our portion of the Fund. Biotech company Myriad Genetics posted solid gains thanks to strong growth in its diagnostic testing business, paced by its flagship BRCA test, which is used to detect a breast cancer gene.
At the end of the fiscal period, we believed that the economic freefall had left professional investors with two primary options. They could obsess over the economic tea leaves and attempt to time the market by adjusting their asset mixes and industry exposures. Or, they could focus on individual stock fundamentals. Our natural preference is to do the latter, in an effort to determine which individual companies might survive or thrive once the economic turbulence subsides.
Wellington
As of March 31, 2009, Wellington had been a sub-advisor of Optimum Small-Mid Cap Growth Fund for approximately nine months. During that time the Fund, like its peers, was bogged down by swiftly deteriorating global economic conditions, extremely volatile markets, and increasingly pervasive pessimism. The perceived safe-haven sub sector — consumer staples — was the best-performing group in the market despite its 20%-plus dive in returns on the fiscal year.
Information technology and healthcare were areas of weakness for the portfolio when comparing returns to the Russell 2500 Growth Index. Within information technology, UbiSoft Entertainment shares traded lower amid disappointing sales for several of its software gaming titles, while slow retail sales and the negative effects of foreign currency exchanges and pension expenses weighed on NCR. We eliminated both positions during the period.
In healthcare, concerns about potential pharmaceutical and biotechnology budget cuts undermined portfolio positions in contract research organizations ICON and Charles River Laboratories International. We continue to hold ICON, which we see as having the best growth trajectory among its peers, but have exited our position in Charles River Laboratories.
Relative performance was helped by our stock selection in the industrials and telecommunications services sectors. Industrials holding Aecom Technology, an engineering and consulting firm, beat earnings expectations and stood to potentially benefit from government-sponsored infrastructure investments. In telecommunications services, MetroPCS Communications’ value-oriented wireless service grew as consumers shifted away from higher-cost alternatives.
Looking for accelerating revenue growth has been challenging in the recent environment, and we have trained our focus on companies we believe will not only survive the downturn, but will also — by virtue of their balance sheets or market positions — thrive during normal business cycles. As such, at fiscal year end the portion of the Fund we managed blended stocks that we considered to be both offensive and defensive holdings.
For example, in recent months we built holdings across a select group of property-casualty insurance and reinsurance stocks. Significant capital was drained from these industries because of major storms and fires, as well as extreme declines in the securities market. The companies we have focused on are distinguished by their perceived capital discipline and strong balance sheets.
By the end of the period, an abundance of uncertainty had clearly and significantly undermined confidence among investors. We recognize that lack of confidence can be a self-fulfilling process, particularly for companies at the very early stages of their potential growth trajectory and companies with financial leverage. That said, we believe uncertainty and controversy create opportunity, especially for companies that are pursuing compelling growth opportunities and are led by nimble and capable management teams. We are focused on identifying and investing in these types of companies because we believe they are the ones that ultimately tend to get rewarded.
(continues) 13
Portfolio management review
Optimum Small-Mid Cap Value Fund
April 7, 2009
Performance preview (for the year ended March 31, 2009) | |||
Optimum Small-Mid Cap Value Fund (Class A shares) | 1-year return | -45.09% | |
Russell 2500™ Value Index (benchmark) | 1-year return | -38.66% | |
For complete, annualized performance for Optimum Small-Mid Cap Value Fund, please see the table on page 28. The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions. |
Advisor
Delaware Management Company (DMC)
Sub-advisors
Delafield Asset Management (Delafield)
The Killen Group, Inc. (Killen)
Westwood Management Corp. (Westwood)
The markets were in turmoil for much of the Fund’s fiscal year ended March 31, 2009, as the global financial system nearly collapsed, credit tightened, and the U.S. economy went into a severe recession.
Early in the fiscal year, troubles in the housing and mortgage markets seemed to suggest only a minor slowdown in corporate profitability and economic growth. Beginning in September 2008, however, overall economic activity essentially ground to a halt as troubles in the financial sector suddenly mushroomed. What had previously been a problem of large financial institutions holding poorly performing assets quickly became a widespread contraction in credit markets.
The U.S. government’s takeover of AIG, Fannie Mae, and Freddie Mac, along with the bankruptcy filing of Lehman Brothers, created an environment where investors and financial institutions seemed much less willing to invest in, or lend to, private enterprises. Valuation multiples in the stock market contracted significantly while risk premiums in the bond market soared. A prime example of the latter was the commercial paper market, which many companies use as a source of liquidity for short-term financing needs. Here lenders (primarily money market funds) refused to roll over loans to many companies, even those with investment grade ratings, until the government stepped in and created a program for insuring money market funds against losses.
With credit unavailable, consumer demand was substantially reduced, and in response, businesses aggressively reduced their inventory levels. Housing prices continued to decline and mortgage defaults spiked. Unemployment levels soared in February 2009. Forced liquidation by hedge funds and other investment vehicles exacerbated the equity market’s response to the economic turmoil.
Signs of optimism surfaced in March 2009 as some of the economic data had a more positive tone that suggested to some that the recession had perhaps bottomed. The U.S. Commerce Department reported that durable-goods orders increased in February. It also announced that new-home sales exceeded expectations. In addition, a National Association of Realtors report showed that existing-home sales rose in February.
Delafield
We have selected our holdings using a bottom-up approach that’s based on each company’s unique criteria. We look for companies that we believe have potential not yet recognized by the broader market. We focus intently on valuation and attempt to invest at prices that we believe are attractive.
The portion of the Fund that we manage was not immune to the economic and market turmoil experienced over the past 12 months. We failed to anticipate some of the factors that would affect the market during the year, and certainly underestimated the magnitude of those factors. Our heavy exposure to the materials and processing sector especially hurt performance in our portion of the Fund relative to the benchmark for the year. However, we have maintained our overweight position in these companies, as the decline in valuations was extreme and quick and we believe that the worst may be over for those stocks.
14
Our relative overweight position in technology stocks also hurt performance for the year. On the positive side, the Fund continued to benefit from our purposeful avoidance of the financial services sector, and energy investments also contributed to performance. Our small position in the energy sector was partially driven by a belief that valuations are at historically low levels.
In the current environment we have put an increasing premium on companies with solid balance sheets and strong cash flow generation that we believe can survive an environment of economic weakness. Our intent at year end was to continue to focus on what we consider “special situation” opportunities, with a belief that as a company’s financial health begins to improve, earnings and stock valuations should benefit accordingly.
Killen
Given the poor stock market environment last year, all sectors performed poorly on an absolute basis. Our portion of the Fund performed well compared to the benchmark index constituents within the financial and consumer discretionary areas, while industrials and information technology sectors were underperformers.
Specific companies that performed well during the fiscal year include some of our more recent purchases. Sturm Ruger, a manufacturer of firearms, was a turnaround situation that we purchased approximately two years ago. During 2008, the company began to reap the rewards of its new management team’s efforts to improve productivity and lower costs. Combined with strong demand, these efforts led to improved financial results and a higher stock price.
Financial results at Dress Barn, a moderately priced women’s retailer, held up relatively well in the current economic environment, and our purchase of the stock in the second half of 2008 was rewarded over the short term.
As for performance detractors, Gulf Island Fabrication, a manufacturer of offshore drilling rigs, saw its backlog shrink in response to lower energy prices. We had already cut back our exposure to the stock at higher levels, yet the sharp decline in its price over the last two quarters of the fiscal year hurt performance.
Horace Mann Educators, an insurance company, was negatively affected by losses in its bond portfolio as well as by higher claims from natural disasters impacting its core insurance operations. We believe that Gulf Island Fabrication and Horace Mann still offer value and price-appreciation potential over the longer term. We purchased more shares of each as their prices declined.
Our approach to investing has always stressed the long-term earnings power of a company and the financial strength of its business. Although we believe short-term future results should be poor relative to historic levels of sales and profit margins for the majority of our investments, we also believe that the companies in our investments have the earnings power and financial strength to weather the economic downturn. As we monitor our holdings, we look for the companies to position themselves as stronger competitors for a possible recovery.
While we closely monitored the results of the companies that we own, we also used the current market weakness to identify new, undervalued investment candidates as the year progressed. We ended the fiscal year with the lowest level of cash in the past several years. This cash position is not an attempt to position ourselves to “time” the market. Rather, we believe this position allows us to strategically take advantage of individual opportunities created by investor pessimism about small-cap stocks.
Westwood
Westwood became a sub-advisor to the Fund in December 2008 and transitioned the portfolio from the stocks held by the former sub-advisor to those that represent our investment strategy.
An extreme degree of investor fear, particularly regarding the banking and housing industry, consumer debt, and the global economic slowdown, has made for a very challenging time in which to manage an equity portfolio. Our holdings suffered a fairly large absolute loss during the period we sub-advised the Fund, as stocks related to consumer spending, commodities, and global economic growth sold off amid a generally fearful
(continues) 15
Portfolio management review
Optimum Small-Mid Cap Value Fund
market environment. However, our holdings performed well relative to the benchmark, due specifically to the avoidance of certain banks, as well as certain consumer companies and real estate–related companies, which were among the most damaged by the market selloff. Our portion of the Fund is invested in companies that we believe are poised to survive this downturn, grow revenues, and take market share from weaker competitors.
In the face of the turbulent market environment, we sought to identify high-quality companies that possess the combination of undervalued earnings growth potential and limited downside risk. Relying on stringent fundamental research, we focused on uncovering companies that we believe have a number of strong financial characteristics, particularly strong cash flow and low levels of debt. We then focused on stocks we believed had a favorable ratio of potential upside to downside. We also continually monitored risks to limit losses.
Banks that we did own, including Comerica and People’s United Financial, have weathered the crisis relatively well due to their solid capital ratios and prudent lending practices. In addition, firms that sell services to financial companies, including Metavante Technologies and FactSet Research Systems, produced positive returns during the short period we managed our portion of the Fund. Securities in the healthcare and consumer discretionary sectors hindered performance relative to the benchmark in our portion of the Fund. This included home healthcare firm Amedisys, which sold off after the proposed U.S. budget revealed plans to lower Medicare reimbursement, and Tupperware Brands, which posted disappointing results due to a material slowdown in discretionary consumer spending.
16
Performance summary
Optimum Fixed Income Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Current performance may be lower or higher than the performance data quoted.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Fixed Income Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance
Average annual total returns | ||||
Through March 31, 2009 | 1 year | 3 years | 5 years | Lifetime |
Class A (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -7.82% | +0.97% | +1.36% | +2.38% |
Including sales charge | -11.96% | -0.56% | +0.44% | +1.55% |
Class B (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -8.42% | +0.31% | +0.67% | +1.72% |
Including sales charge | -11.89% | -0.36% | +0.23% | +1.57% |
Class C (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -8.41% | +0.31% | +0.69% | +1.74% |
Including sales charge | -9.27% | +0.31% | +0.69% | +1.74% |
Institutional Class (Est. Aug. 1, 2003) | -7.51% | +1.32% | +1.70% | +2.72% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Expense limitations were in effect for all classes during the periods shown in the Fund performance chart and in the “Performance of a $10,000 Investment” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 16 through 18.) Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchases and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges only to certain eligible investors.
Please see the fee table in the prospectus and your financial professional for a more complete explanation of sales charges.
The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to waive all or a portion of its investment advisory fees and/or reimburse expenses from Aug. 1, 2008, through July 31, 2009.
Please see the most recent prospectus for additional information on these fee waivers and/or reimbursements.
18
Fund expense ratios | Class A | Class B | Class C | Institutional Class | |||
Total annual operating expenses | |||||||
(without fee waivers) | 1.43% | 2.08% | 2.08% | 1.08% | |||
Net expenses | |||||||
(including fee waivers, if any) | 1.24% | 1.89% | 1.89% | 0.89% | |||
Type of waiver | Contractual | Contractual | Contractual | Contractual |
The “Fund performance” table and the “Performance of a $10,000 Investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
High yielding noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds. Adverse conditions may affect the issuer’s ability to pay interest and principal on these securities.
The Fund may be affected by prepayment risk due to holdings of mortgage-backed securities. With prepayment risk, when homeowners prepay mortgages during periods of low interest rates, the Fund may be forced to re-deploy its assets in lower-yielding securities.
If, and to the extent that, we invest in forward foreign currency contracts or use other investments to hedge against currency risks, the Fund may be subject to the special risks associated with those activities. The Fund may be affected by economic conditions, which may hinder a company's ability to make interest and principal payments on its debt.
The Fund may be affected by declines in bond prices, which can be caused by an adverse change in interest rates, adverse economic conditions, or poor performance from specific industries or bond issuers.
Derivatives risk is the possibility that funds may experience a significant loss if they employ a derivatives strategy related to a security or a securities index, and that security or index moves in the opposite direction from what the portfolio manager had anticipated. Another risk of derivative transactions is the creditworthiness of the counterparty because the transaction depends on the willingness and ability of the counterparty to fulfill its contractual obligations. Derivatives may also involve additional expenses.
Certain bond funds may experience portfolio turnover in excess of 100%, which could result in higher transaction costs and tax liability for investors.
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2009
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2009) | |||||
Barclays Capital U.S. Aggregate Index | $10,000 | $13,026 | ||||
Optimum Fixed Income Fund — Institutional Class shares | $10,000 | $11,646 | ||||
Optimum Fixed Income Fund — Class A shares | $9,550 | $10,913 |
(continues) 19
Performance summary
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 4.50% front-end sales charge for an investment in Class A shares. Please note additional details on these fees in the “Performance summary” section of this report, which includes pages 16 through 17.
The chart also assumes $10,000 invested in the Barclays Capital U.S. Aggregate Index as of Aug. 1, 2003. The Barclays Capital U.S. Aggregate Index, formerly the Lehman Brothers U.S. Aggregate Index, measures the performance of more than 9,000 publicly issued investment grade (Baa3/BBB- or better) corporate, U.S. government, mortgage- and asset-backed securities with at least one year to maturity and at least $250 million par amount outstanding. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers for Optimum Fixed Income Fund | ||
Nasdaq symbols | CUSIPs | |
Class A | OAFIX | 246118681 |
Class B | OBFIX | 246118673 |
Class C | OCFIX | 246118665 |
Institutional Class | OIFIX | 246118657 |
20
Performance summary
Optimum International Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Current performance may be lower or higher than the performance data quoted.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum International Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance
Average annual total returns | ||||
Through March 31, 2009 | 1 year | 3 years | 5 years | Lifetime |
Class A (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -46.64% | -14.66% | -3.21% | +1.15% |
Including sales charge | -49.69% | -16.33% | -4.35% | +0.09% |
Class B (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -47.02% | -15.25% | -3.85% | +0.48% |
Including sales charge | -49.05% | -15.91% | -4.38% | +0.27% |
Class C (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -46.98% | -15.21% | -3.83% | +0.50% |
Including sales charge | -47.49% | -15.21% | -3.83% | +0.50% |
Institutional Class (Est. Aug. 1, 2003) | -46.49% | -14.38% | -2.88% | +1.49% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Expense limitations were in effect for all classes during the periods shown in the Fund performance chart and in the “Performance of a $10,000 Investment” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 19 through 21.) Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchases and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges only to certain eligible investors.
Please see the fee table in the prospectus and your financial professional for a more complete explanation of sales charges.
The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to waive all or a portion of its investment advisory fees and/or reimburse expenses from Aug. 1, 2008, through July 31, 2009.
Please see the most recent prospectus for additional information on these fee waivers and/or reimbursements.
22
Fund expense ratios | Class A | Class B | Class C | Institutional Class | |||
Total annual operating expenses | |||||||
(without fee waivers) | 1.75% | 2.40% | 2.40% | 1.40% | |||
Net expenses | |||||||
(including fee waivers, if any) | 1.75% | 2.40% | 2.40% | 1.40% | |||
Type of waiver | Contractual | Contractual | Contractual | Contractual |
The “Fund performance” table and the “Performance of a $10,000 Investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Foreign investments are subject to risks not ordinarily associated with domestic investments, such as currency, economic and political risks, and different accounting standards. Investing in emerging markets can be riskier than investing in well-established foreign markets.
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2009
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2009) | |||||
MSCI EAFE Index | $10,000 | $11,823 | ||||
Optimum International Fund — Institutional Class shares | $10,000 | $10,872 | ||||
Optimum International Fund — Class A shares | $9,425 | $10,054 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge for an investment in Class A shares. Please note additional details on these fees in the “Performance summary” section of this report, which includes pages 19 through 20.
The chart also assumes $10,000 invested in the MSCI EAFE Index as of Aug. 1, 2003. The MSCI EAFE Index measures equity market performance across developed market countries in Europe, Australasia, and the Far East. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers for the Optimum International Fund | ||
Nasdaq symbols | CUSIPs | |
Class A | OAIEX | 246118731 |
Class B | OBIEX | 246118723 |
Class C | OCIEX | 246118715 |
Institutional Class | OIIEX | 246118699 |
(continues) 23
Performance summary
Optimum Large Cap Growth Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Current performance may be lower or higher than the performance data quoted.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Large Cap Growth Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance
Average annual total returns | ||||
Through March 31, 2009 | 1 year | 3 years | 5 years | Lifetime |
Class A (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -37.70% | -14.12% | -5.25% | -2.63% |
Including sales charge | -41.26% | -15.79% | -6.36% | -3.64% |
Class B (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -38.09% | -14.67% | -5.86% | -3.26% |
Including sales charge | -40.56% | -15.43% | -6.27% | -3.58% |
Class C (Est. Aug. 1, 2003) | ||||
Excluding sales charge | -38.09% | -14.67% | -5.86% | -3.26% |
Including sales charge | -38.71% | -14.67% | -5.86% | -3.26% |
Institutional Class (Est. Aug. 1, 2003) | -37.51% | -13.84% | -4.92% | -2.30% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Expense limitations were in effect for all classes during the periods shown in the Fund performance chart and in the “Performance of a $10,000 Investment” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 22 through 23.) Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchases and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges only to certain eligible investors.
Please see the fee table in the prospectus and your financial professional for a more complete explanation of sales charges.
The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to waive all or a portion of its investment advisory fees and/or reimburse expenses from Aug. 1, 2008, through July 31, 2009.
Please see the most recent prospectus for additional information on these fee waivers and/or reimbursements.
24
Fund expense ratios | Class A | Class B | Class C | Institutional Class | |||
Total annual operating expenses | |||||||
(without fee waivers) | 1.60% | 2.25% | 2.25% | 1.25% | |||
Net expenses | |||||||
(including fee waivers, if any) | 1.60% | 2.25% | 2.25% | 1.25% | |||
Type of waiver | Contractual | Contractual | Contractual | Contractual |
The “Fund performance” table and the “Performance of a $10,000 Investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Prices of growth company securities may be more volatile than other securities, particularly over the short term. This Fund will be affected primarily by declines in stock prices, which can be caused by a drop in the overall equity market or poor performance in specific industries or companies.
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2009
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2009) | |||||
Russell 1000® Growth Index | $10,000 | $9,018 | ||||
Optimum Large Cap Growth Fund — Institutional Class shares | $10,000 | $8,766 | ||||
Optimum Large Cap Growth Fund — Class A shares | $9,425 | $8,104 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge for an investment in Class A shares. Please note additional details about these fees in the “Performance summary” section of this report on page 22.
The chart also assumes $10,000 invested in the Russell 1000 Growth Index as of Aug. 1, 2003. The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers for Optimum Large Cap Growth Fund | ||
Nasdaq symbols | CUSIPs | |
Class A | OALGX | 246118707 |
Class B | OBLGX | 246118806 |
Class C | OCLGX | 246118889 |
Institutional Class | OILGX | 246118871 |
(continues) 25
Performance summary
Optimum Large Cap Value Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Current performance may be lower or higher than the performance data quoted.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Large Cap Value Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance | |||||||
Average annual total returns | |||||||
Through March 31, 2009 | 1 year | 3 years | 5 years | Lifetime | |||
Class A (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -38.97% | -13.03% | -4.14% | -1.09% | |||
Including sales charge | -42.48% | -14.73% | -5.27% | -2.12% | |||
Class B (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -39.37% | -13.57% | -4.75% | -1.72% | |||
Including sales charge | -41.76% | -14.30% | -5.12% | -1.94% | |||
Class C (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -39.31% | -13.57% | -4.75% | -1.72% | |||
Including sales charge | -39.91% | -13.57% | -4.75% | -1.72% | |||
Institutional Class shares (Est. Aug. 1, 2003) | -38.76% | -12.71% | -3.80% | -0.74% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Expense limitations were in effect for all classes during the periods shown in the Fund performance chart and in the “Performance of a $10,000 Investment” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 24 through 25.) Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchases and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges only to certain eligible investors.
Please see the fee table in the prospectus and your financial professional for a more complete explanation of sales charges.
The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to waive all or a portion of its investment advisory fees and/or reimburse expenses from Aug. 1, 2008, through July 31, 2009.
Please see the most recent prospectus for additional information on these fee waivers and/or reimbursements.
26
Fund expense ratios | Class A | Class B | Class C | Institutional Class | |||
Total annual operating expenses | |||||||
(without fee waivers) | 1.56% | 2.21% | 2.21% | 1.21% | |||
Net expenses | |||||||
(including fee waivers, if any) | 1.54% | 2.19% | 2.19% | 1.19% | |||
Type of waiver | Contractual | Contractual | Contractual | Contractual |
The “Fund performance” table and the “Performance of a $10,000 Investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
A value stock may not increase in price as anticipated if other investors do not share the portfolio managers’ perception of the company’s value or if the factors that would typically increase the price of the security do not occur. This Fund will be affected primarily by declines in stock prices, which can be caused by a drop in the overall equity market or poor performance in specific industries or companies.
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2009
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2009) | |||||
Russell 1000® Value Index | $10,000 | $9,186 | ||||
Optimum Large Cap Value Fund — Institutional Class shares | $10,000 | $9,588 | ||||
Optimum Large Cap Value Fund — Class A shares | $9,425 | $8,858 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge for an investment in Class A shares. Please note additional details on these fees in the “Performance summary” section of this report, which includes page 24.
The chart also assumes $10,000 invested in the Russell 1000 Value Index as of Aug. 1, 2003. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers for Optimum Large Cap Value Fund | ||
Nasdaq symbols | CUSIPs | |
Class A | OALVX | 246118863 |
Class B | OBLVX | 246118855 |
Class C | OCLVX | 246118848 |
Institutional Class | OILVX | 246118830 |
(continues) 27
Performance summary
Optimum Small-Mid Cap Growth Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Current performance may be lower or higher than the performance data quoted.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Small-Mid Cap Growth Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance | |||||||
Average annual total returns | |||||||
Through March 31, 2009 | 1 year | 3 years | 5 years | Lifetime | |||
Class A (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -40.07% | -20.34% | -8.43% | -2.77% | |||
Including sales charge | -43.53% | -21.89% | -9.51% | -3.78% | |||
Class B (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -40.44% | -20.86% | -9.03% | -3.38% | |||
Including sales charge | -42.82% | -21.54% | -9.70% | -3.62% | |||
Class C (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -40.44% | -20.86% | -9.03% | -3.38% | |||
Including sales charge | -41.03% | -20.86% | -9.03% | -3.38% | |||
Institutional Class (Est. Aug. 1, 2003) | -39.84% | -20.06% | -8.10% | -2.43% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Expense limitations were in effect for all classes during the periods shown in the Fund performance chart and in the “Performance of a $10,000 Investment” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 26 through 27.) Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchases and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges only to certain eligible investors.
Please see the fee table in the prospectus and your financial professional for a more complete explanation of sales charges.
The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to waive all or a portion of its investment advisory fees and/or reimburse expenses from Aug. 1, 2008, through July 31, 2009.
Please see the most recent prospectus for additional information on these fee waivers and/or reimbursements.
Fund expense ratios | Class A | Class B | Class C | Institutional Class | |||
Total annual operating expenses | |||||||
(without fee waivers) | 2.11% | 2.76% | 2.76% | 1.76% | |||
Net expenses | |||||||
(including fee waivers, if any) | 1.90% | 2.55% | 2.55% | 1.55% | |||
Type of waiver | Contractual | Contractual | Contractual | Contractual |
28
The “Fund performance” table and the “Performance of a $10,000 Investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Funds that invest in small and/or medium-sized company stocks typically involve greater risk, particularly in the short term, than those investing in larger, more established companies. Prices of growth company securities may be more volatile than other securities, particularly over the short term. This Fund will be affected primarily by declines in stock prices, which can be caused by a drop in the overall equity market or poor performance in specific industries or companies.
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2009
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2009) | ||||
Russell 2500™ Growth Index | $10,000 | $9,695 | |||
Optimum Small-Mid Cap Growth Fund — Institutional Class shares | $10,000 | $8,698 | |||
Optimum Small-Mid Cap Growth Fund — Class A shares | $9,425 | $8,039 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge for an investment in Class A shares. Please note additional details on these fees in the “Performance summary” section of this report, which includes page 26.
The chart also assumes $10,000 invested in the Russell 2500 Growth Index as of Aug. 1, 2003. The Russell 2500 Growth Index measures the performance of the small- to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers for Optimum Small-Mid Cap Growth Fund | ||
Nasdaq symbols | CUSIPs | |
Class A | OASGX | 246118882 |
Class B | OBSGX | 246118814 |
Class C | OCSGX | 246118798 |
Institutional Class | OISGX | 246118780 |
(continues) 29
Performance summary
Optimum Small-Mid Cap Value Fund
The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data for the most recent month end by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Current performance may be lower or higher than the performance data quoted.
You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Optimum Small-Mid Cap Value Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 914-0278 or visiting our Web site at www.optimummutualfunds.com. Read the prospectus carefully before you invest or send money.
Fund performance | |||||||
Average annual total returns | |||||||
Through March 31, 2009 | 1 year | 3 years | 5 years | Lifetime | |||
Class A (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -45.09% | -21.35% | -7.92% | -2.57% | |||
Including sales charge | -48.23% | -22.88% | -9.00% | -3.59% | |||
Class B (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -45.47% | -21.83% | -8.51% | -3.19% | |||
Including sales charge | -47.65% | -22.45% | -9.16% | -3.39% | |||
Class C (Est. Aug. 1, 2003) | |||||||
Excluding sales charge | -45.42% | -21.83% | -8.51% | -3.19% | |||
Including sales charge | -46.01% | -21.83% | -8.51% | -3.19% | |||
Institutional Class (Est. Aug. 1, 2003) | -44.90% | -21.06% | -7.60% | -2.23% |
Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.
Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.
Expense limitations were in effect for all classes during the periods shown in the Fund performance chart above and in the “Performance of a $10,000 Investment” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 28 through 29.) Performance would have been lower had the expense limitation not been in effect.
The Fund offers Class A, B, C, and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 5.75%, and have an annual distribution and service fee of up to 0.35% of average daily net assets.
Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Please see the prospectus for additional information on Class B purchases and sales charges. As described in the prospectus, Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.
Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of 1.00% of average daily net assets.
Institutional Class shares are sold without a sales charge or asset-based distribution charges only to certain eligible investors.
Please see the fee table in the prospectus and your financial professional for a more complete explanation of sales charges.
The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” table. Delaware Investments has agreed to waive all or a portion of its investment advisory fees and/or reimburse expenses from Aug. 1, 2008, through July 31, 2009.
Please see the most recent prospectus for additional information on these fee waivers and/or reimbursements.
Fund expense ratios | Class A | Class B | Class C | Institutional Class | |||
Total annual operating expenses | |||||||
(without fee waivers) | 2.09% | 2.74% | 2.74% | 1.74% | |||
Net expenses | |||||||
(including fee waivers, if any) | 1.75% | 2.40% | 2.40% | 1.40% | |||
Type of waiver | Contractual | Contractual | Contractual | Contractual |
30
The “Fund performance” table and the “Performance of a $10,000 Investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.
Funds that invest in small and/or medium-sized company stocks typically involve greater risk, particularly in the short term, than those investing in larger, more established companies. A value stock may not increase in price as anticipated if other investors do not share the portfolio managers’ perception of the company’s value or if the factors that would typically increase the price of the security do not occur. This Fund will be affected primarily by declines in stock prices, which can be caused by a drop in the overall equity market or poor performance in specific industries or companies.
Performance of a $10,000 Investment
Aug. 1, 2003 (Fund’s inception), through March 31, 2009
Starting value (Aug. 1, 2003) | Ending value (Mar. 31, 2009) | |||||
Russell 2500™ Value Index | $10,000 | $9,990 | ||||
Optimum Small-Mid Cap Value Fund — Institutional Class shares | $10,000 | $8,799 | ||||
Optimum Small-Mid Cap Value Fund — Class A shares | $9,425 | $8,131 |
The chart assumes $10,000 invested in the Fund on Aug. 1, 2003, and assumes the reinvestment of all Fund distributions for Class A and Institutional Class shares. The chart also includes the effect of a 5.75% front-end sales charge for an investment in Class A shares. Please note additional details on these fees in the “Performance summary” section of this report, which includes page 28.
The chart also assumes $10,000 invested in the Russell 2500 Value Index as of Aug. 1, 2003. The Russell 2500 Value Index measures the performance of the small- to mid-cap value segment of the U.S. equity universe. It includes those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. An index is unmanaged and does not reflect the costs of operating a mutual fund, such as the costs of buying, selling, and holding securities. You cannot invest directly in an index.
Past performance is not a guarantee of future results.
Performance of other Fund classes will vary due to different charges and expenses.
Stock symbols and CUSIP numbers for Optimum Small-Mid Cap Value Fund | ||
Nasdaq symbols | CUSIPs | |
Class A | OASVX | 246118772 |
Class B | OBSVX | 246118764 |
Class C | OCSVX | 246118756 |
Institutional Class | OISVX | 246118749 |
31
Disclosure of Fund expenses
For the period October 1, 2008 to March 31, 2009
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. These following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2008 to March 31, 2009.
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.
Optimum Fixed Income Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||||||||
Beginning | Ending | Paid During | |||||||||||
Account | Account | Annualized | Period | ||||||||||
Value | Value | Expense | 10/1/08 to | ||||||||||
10/1/08 | 3/31/09 | Ratio | 3/31/09* | ||||||||||
Actual Fund Return | |||||||||||||
Class A | $ | 1,000.00 | $ | 961.40 | 1.24% | $6.06 | |||||||
Class B | 1,000.00 | 957.30 | 1.89% | 9.22 | |||||||||
Class C | 1,000.00 | 958.50 | 1.89% | 9.23 | |||||||||
Institutional Class | 1,000.00 | 961.80 | 0.89% | 4.35 | |||||||||
Hypothetical 5% Return (5% return before expenses) | |||||||||||||
Class A | $ | 1,000.00 | $ | 1,018.75 | 1.24% | $6.24 | |||||||
Class B | 1,000.00 | 1,015.51 | 1.89% | 9.50 | |||||||||
Class C | 1,000.00 | 1,015.51 | 1.89% | 9.50 | |||||||||
Institutional Class | 1,000.00 | 1,020.49 | 0.89% | 4.48 | |||||||||
Optimum International Fund | |||||||||||||
Expense Analysis of an Investment of $1,000 | |||||||||||||
Expenses | |||||||||||||
Beginning | Ending | Paid During | |||||||||||
Account | Account | Annualized | Period | ||||||||||
Value | Value | Expense | 10/1/08 to | ||||||||||
10/1/08 | 3/31/09 | Ratio | 3/31/09* | ||||||||||
Actual Fund Return | |||||||||||||
Class A | $ | 1,000.00 | $ | 682.90 | 1.77% | $ | 7.43 | ||||||
Class B | 1,000.00 | 680.80 | 2.42% | 10.14 | |||||||||
Class C | 1,000.00 | 681.10 | 2.42% | 10.14 | |||||||||
Institutional Class | 1,000.00 | 684.00 | 1.42% | 5.96 | |||||||||
Hypothetical 5% Return (5% return before expenses) | |||||||||||||
Class A | $ | 1,000.00 | $ | 1,016.11 | 1.77% | $ | 8.90 | ||||||
Class B | 1,000.00 | 1,012.86 | 2.42% | 12.14 | |||||||||
Class C | 1,000.00 | 1,012.86 | 2.42% | 12.14 | |||||||||
Institutional Class | 1,000.00 | 1,017.85 | 1.42% | 7.14 |
*“Expenses Paid During Period” are equal to a Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by the 182/365 (to reflect the one-half year period).
32
Optimum Large Cap Growth Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||||||||
Beginning | Ending | Paid During | |||||||||||
Account | Account | Annualized | Period | ||||||||||
Value | Value | Expense | 10/1/08 to | ||||||||||
10/1/08 | 3/31/09 | Ratio | 3/31/09* | ||||||||||
Actual Fund Return | |||||||||||||
Class A | $ | 1,000.00 | $ | 725.10 | 1.62% | $ | 6.97 | ||||||
Class B | 1,000.00 | 722.90 | 2.27% | 9.75 | |||||||||
Class C | 1,000.00 | 722.90 | 2.27% | 9.75 | |||||||||
Institutional Class | 1,000.00 | 726.10 | 1.27% | 5.47 | |||||||||
Hypothetical 5% Return (5% return before expenses) | |||||||||||||
Class A | $ | 1,000.00 | $ | 1,016.85 | 1.62% | $ | 8.15 | ||||||
Class B | 1,000.00 | 1,013.61 | 2.27% | 11.40 | |||||||||
Class C | 1,000.00 | 1,013.61 | 2.27% | 11.40 | |||||||||
Institutional Class | 1,000.00 | 1,018.60 | 1.27% | 6.39 | |||||||||
Optimum Large Cap Value Fund | |||||||||||||
Expense Analysis of an Investment of $1,000 | |||||||||||||
Expenses | |||||||||||||
Beginning | Ending | Paid During | |||||||||||
Account | Account | Annualized | Period | ||||||||||
Value | Value | Expense | 10/1/08 to | ||||||||||
10/1/08 | 3/31/09 | Ratio | 3/31/09* | ||||||||||
Actual Fund Return | |||||||||||||
Class A | $ | 1,000.00 | $ | 690.30 | 1.54% | $ | 6.49 | ||||||
Class B | 1,000.00 | 688.50 | 2.19% | 9.22 | |||||||||
Class C | 1,000.00 | 688.50 | 2.19% | 9.22 | |||||||||
Institutional Class | 1,000.00 | 692.00 | 1.19% | 5.02 | |||||||||
Hypothetical 5% Return (5% return before expenses) | |||||||||||||
Class A | $ | 1,000.00 | $ | 1,017.25 | 1.54% | $ | 7.75 | ||||||
Class B | 1,000.00 | 1,014.01 | 2.19% | 11.00 | |||||||||
Class C | 1,000.00 | 1,014.01 | 2.19% | 11.00 | |||||||||
Institutional Class | 1,000.00 | 1,019.00 | 1.19% | 5.99 |
*“Expenses Paid During Period” are equal to a Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by the 182/365 (to reflect the one-half year period).
Optimum Small-Mid Cap Growth Fund
Expense Analysis of an Investment of $1,000
Expenses | |||||||||||||
Beginning | Ending | Paid During | |||||||||||
Account | Account | Annualized | Period | ||||||||||
Value | Value | Expense | 10/1/08 to | ||||||||||
10/1/08 | 3/31/09 | Ratio | 3/31/09* | ||||||||||
Actual Fund Return | |||||||||||||
Class A | $ | 1,000.00 | $ | 635.30 | 1.90% | $ | 7.75 | ||||||
Class B | 1,000.00 | 633.30 | 2.55% | 10.38 | |||||||||
Class C | 1,000.00 | 633.30 | 2.55% | 10.38 | |||||||||
Institutional Class | 1,000.00 | 636.50 | 1.55% | 6.32 | |||||||||
Hypothetical 5% Return (5% return before expenses) | |||||||||||||
Class A | $ | 1,000.00 | $ | 1,015.46 | 1.90% | $ | 9.55 | ||||||
Class B | 1,000.00 | 1,012.22 | 2.55% | 12.79 | |||||||||
Class C | 1,000.00 | 1,012.22 | 2.55% | 12.79 | |||||||||
Institutional Class | 1,000.00 | 1,017.20 | 1.55% | 7.80 | |||||||||
Optimum Small-Mid Cap Value Fund | |||||||||||||
Expense Analysis of an Investment of $1,000 | |||||||||||||
Expenses | |||||||||||||
Beginning | Ending | Paid During | |||||||||||
Account | Account | Annualized | Period | ||||||||||
Value | Value | Expense | 10/1/08 to | ||||||||||
10/1/08 | 3/31/09 | Ratio | 3/31/09* | ||||||||||
Actual Fund Return | |||||||||||||
Class A | $ | 1,000.00 | $ | 580.00 | 1.75% | $ | 6.89 | ||||||
Class B | 1,000.00 | 578.40 | 2.40% | 9.44 | |||||||||
Class C | 1,000.00 | 578.40 | 2.40% | 9.44 | |||||||||
Institutional Class | 1,000.00 | 581.40 | 1.40% | 5.52 | |||||||||
Hypothetical 5% Return (5% return before expenses) | |||||||||||||
Class A | $ | 1,000.00 | $ | 1,016.21 | 1.75% | $ 8.80 | |||||||
Class B | 1,000.00 | 1,012.96 | 2.40% | 12.04 | |||||||||
Class C | 1,000.00 | 1,012.96 | 2.40% | 12.04 | |||||||||
Institutional Class | 1,000.00 | 1,017.95 | 1.40% | 7.04 |
33
Sector allocations and credit quality breakdown
Optimum Fixed Income Fund
As of March 31, 2009
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 | 15.03 | % | ||
Agency Mortgage-Backed Securities | 20.41 | % | ||
Agency Obligations | 1.18 | % | ||
Commercial Mortgage-Backed Securities | 2.73 | % | ||
Convertible Bonds | 0.46 | % | ||
Corporate Bonds | 23.46 | % | ||
Banking | 1.93 | % | ||
Basic Industry | 1.17 | % | ||
Brokerage | 1.05 | % | ||
Capital Goods | 1.25 | % | ||
Communications | 4.78 | % | ||
Consumer Cyclical | 2.00 | % | ||
Consumer Non-Cyclical | 4.29 | % | ||
Electric | 1.59 | % | ||
Energy | 1.47 | % | ||
Finance Companies | 1.14 | % | ||
Insurance | 1.66 | % | ||
Natural Gas | 0.40 | % | ||
Real Estate | 0.06 | % | ||
Technology | 0.58 | % | ||
Transportation | 0.09 | % | ||
Foreign Agencies | 0.51 | % | ||
Municipal Bonds | 1.24 | % | ||
Non-Agency Asset-Backed Securities | 2.58 | % | ||
Non-Agency Collateralized Mortgage Obligations | 21.96 | % | ||
Regional Agency | 0.15 | % | ||
Senior Secured Loans | 1.72 | % | ||
Sovereign Agencies | 0.09 | % | ||
Sovereign Debt | 1.62 | % | ||
Supranational Banks | 1.47 | % | ||
U.S. Treasury Obligations | 0.37 | % | ||
Common Stock | 0.02 | % | ||
Convertible Preferred Stock | 0.11 | % | ||
Preferred Stock | 0.22 | % | ||
Warrant | 0.00 | % | ||
Repurchase Agreements | 6.36 | % | ||
Securities Lending Collateral | 4.76 | % | ||
Total Value of Securities | 106.45 | % | ||
Obligation to Return Securities Lending Collateral | (5.12 | %) | ||
Liabilities Net of Receivables and Other Assets | (1.33 | %) | ||
Total Net Assets | 100.00 | % | ||
Credit Quality Breakdown | ||||
(as a % of fixed income investments)* | ||||
AAA | 45.20 | % | ||
AA | 6.29 | % | ||
A | 16.40 | % | ||
BBB | 14.76 | % | ||
BB | 7.71 | % | ||
B | 7.31 | % | ||
CCC | 1.57 | % | ||
C | 0.37 | % | ||
Not Rated | 0.39 | % | ||
Total | 100.00 | % |
*Bond ratings are determined by independent, nationally recognized statistical rating organizations.
34
Country/Sector allocations
Optimum International Fund
As of March 31, 2009
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 by Country | 96.58 | % | ||
Australia | 6.96 | % | ||
Austria | 0.38 | % | ||
Belgium | 0.48 | % | ||
Bermuda | 0.62 | % | ||
Brazil | 1.17 | % | ||
Canada | 3.62 | % | ||
China | 1.58 | % | ||
Denmark | 0.22 | % | ||
Finland | 0.57 | % | ||
France | 9.76 | % | ||
Germany | 6.80 | % | ||
Hong Kong | 3.46 | % | ||
Israel | 0.25 | % | ||
Italy | 2.50 | % | ||
Japan | 18.66 | % | ||
Luxembourg | 0.77 | % | ||
Malaysia | 0.11 | % | ||
Mexico | 0.25 | % | ||
Netherlands | 2.02 | % | ||
New Zealand | 0.35 | % | ||
Norway | 0.96 | % | ||
Philippines | 0.29 | % | ||
Republic of Korea | 1.07 | % | ||
Russia | 0.11 | % | ||
Singapore | 2.29 | % | ||
South Africa | 1.02 | % | ||
Spain | 4.97 | % | ||
Sweden | 0.30 | % | ||
Switzerland | 4.29 | % | ||
Taiwan | 3.96 | % | ||
Thailand | 0.62 | % | ||
United Kingdom | 16.17 | % | ||
Preferred Stock | 0.38 | % | ||
Rights | 0.05 | % | ||
Repurchase Agreements | 3.00 | % | ||
Securities Lending Collateral | 12.50 | % | ||
Total Value of Securities | 112.51 | % | ||
Obligation to Return Securities Lending Collateral | (13.45 | %) | ||
Receivables and Other Assets Net of Liabilities | 0.94 | % | ||
Total Net Assets | 100.00 | % | ||
Percentage | ||||
Common/Preferred Stock and Rights by Sector | of Net Assets | |||
Automobiles & Components | 2.73 | % | ||
Banking & Finance | 14.99 | % | ||
Capital Goods | 3.13 | % | ||
Consumer Durables & Apparel | 2.47 | % | ||
Energy | 12.70 | % | ||
Food & Staples Retailing | 3.54 | % | ||
Food, Beverage & Tobacco | 6.54 | % | ||
Insurance | 3.11 | % | ||
Materials | 7.82 | % | ||
Media | 0.87 | % | ||
Pharmaceuticals & Biotechnology | 9.24 | % | ||
Real Estate | 1.51 | % | ||
Semiconductors | 3.54 | % | ||
Technology Hardware & Equipment | 5.17 | % | ||
Telecommunication Services | 12.43 | % | ||
Transportation & Shipping | 2.74 | % | ||
Utilities | 4.48 | % | ||
Total | 97.01 | % |
(continues) 35
Sector allocations and top 10 holdings
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may also represent the investment manager or sub-adviser’s internal sector classifications, which may result in the sector designations for one Fund being different than another Fund’s sector designations.
Optimum Large Cap Growth Fund | ||||
As of March 31, 2009 | ||||
Percentage | ||||
Sector | of Net Assets | |||
Common Stock | 95.77 | % | ||
Basic Industry/Capital Goods | 9.03 | % | ||
Business Services | 9.58 | % | ||
Consumer Durables | 1.76 | % | ||
Consumer Non-Durables | 15.23 | % | ||
Consumer Services | 6.83 | % | ||
Energy | 6.16 | % | ||
Financials | 5.50 | % | ||
Health Care | 15.39 | % | ||
Technology | 24.02 | % | ||
Transportation | 1.78 | % | ||
Utilities | 0.49 | % | ||
Convertible Preferred Stock | 0.37 | % | ||
Preferred Stock | 0.11 | % | ||
Repurchase Agreements | 4.07 | % | ||
Securities Lending Collateral | 8.81 | % | ||
Total Value of Securities | 109.13 | % | ||
Obligation to Return Securities Lending Collateral | (9.35 | %) | ||
Receivables and Other Assets Net of Liabilities | 0.22 | % | ||
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 | 4.12 | % | ||
Lockheed Martin | 3.22 | % | ||
McDonald’s | 3.04 | % | ||
MasterCard Class A | 2.73 | % | ||
CVS Caremark | 2.66 | % | ||
QUALCOMM | 2.45 | % | ||
Wal-Mart Stores | 2.34 | % | ||
Abbott Laboratories | 2.24 | % | ||
Google Class A | 2.02 | % | ||
Microsoft | 1.92 | % |
Optimum Large Cap Value Fund | ||||
As of March 31, 2009 | ||||
Percentage | ||||
Sector | of Net Assets | |||
Common Stock | 99.74 | % | ||
Consumer Discretionary | 10.80 | % | ||
Consumer Staples | 12.47 | % | ||
Energy | 13.23 | % | ||
Financials | 15.15 | % | ||
Health Care | 10.45 | % | ||
Industrials | 10.74 | % | ||
Information Technology | 11.10 | % | ||
Materials | 5.16 | % | ||
Telecommunications | 6.45 | % | ||
Utilities | 4.19 | % | ||
Repurchase Agreements | 0.20 | % | ||
Securities Lending Collateral | 8.29 | % | ||
Total Value of Securities | 108.23 | % | ||
Obligation to Return Securities Lending Collateral | (8.79 | %) | ||
Receivables and Other Assets Net of Liabilities | 0.56 | % | ||
Total Net Assets | 100.00 | % | ||
Holdings are for informational purposes only and are subject to change at any time. They are not a recommendation to buy, sell, or hold any security. | ||||
Percentage | ||||
Top 10 Holdings | of Net Assets | |||
AT&T | 3.49 | % | ||
Chevron | 3.27 | % | ||
International Business Machines | 3.17 | % | ||
JPMorgan Chase | 2.82 | % | ||
Lockheed Martin | 2.25 | % | ||
Pfizer | 2.06 | % | ||
Intel | 2.02 | % | ||
Philip Morris International | 2.02 | % | ||
Travelers | 1.97 | % | ||
Total ADR | 1.61 | % |
36
Sector designations may be different than the sector designations presented in other Fund materials. The sector designations may also represent the investment manager or sub-adviser’s internal sector classifications, which may result in the sector designations for one Fund being different than another Fund’s sector designations.
Optimum Small-Mid Cap Growth Fund | |||
As of March 31, 2009 | |||
Percentage | |||
Sector | of Net Assets | ||
Common Stock | 98.89 | % | |
Basic Industry/Capital Goods | 14.33 | % | |
Business Services | 6.55 | % | |
Consumer Durables | 3.39 | % | |
Consumer Non-Durables | 7.26 | % | |
Consumer Services | 6.56 | % | |
Energy | 5.39 | % | |
Financials | 11.04 | % | |
Health Care | 16.79 | % | |
Real Estate | 1.24 | % | |
Technology | 24.04 | % | |
Transportation | 2.30 | % | |
Warrants | 0.00 | % | |
Repurchase Agreements | 1.36 | % | |
Securities Lending Collateral | 20.78 | % | |
Total Value of Securities | 121.03 | % | |
Obligation to Return Securities Lending Collateral | (22.14 | %) | |
Receivables and Other Assets Net of Liabilities | 1.11 | % | |
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 | ||
AMETEK | 2.27 | % | |
ITT Educational Services | 2.20 | % | |
Waste Connections | 1.63 | % | |
Crown Castle International | 1.57 | % | |
ON Semiconductor | 1.29 | % | |
Polycom | 1.24 | % | |
Myriad Genetics | 1.22 | % | |
Heartland Express | 1.22 | % | |
FLIR Systems | 1.22 | % | |
Atwood Oceanics | 1.08 | % |
Optimum Small-Mid Cap Value Fund | |||
As of March 31, 2009 | |||
Percentage | |||
Sector | of Net Assets | ||
Common Stock | 94.38 | % | |
Basic Industry | 12.00 | % | |
Business Services | 6.01 | % | |
Capital Spending | 9.13 | % | |
Consumer Cyclical | 7.97 | % | |
Consumer Services | 8.91 | % | |
Consumer Staples | 3.34 | % | |
Energy | 5.33 | % | |
Financial Services | 13.27 | % | |
Health Care | 4.83 | % | |
Real Estate | 1.07 | % | |
Technology | 18.95 | % | |
Transportation | 2.19 | % | |
Utilities | 1.38 | % | |
Repurchase Agreements | 5.95 | % | |
Securities Lending Collateral | 13.76 | % | |
Total Value of Securities | 114.09 | % | |
Obligation to Return Securities Lending Collateral | (14.57 | %) | |
Receivables and Other Assets Net of Liabilities | 0.48 | % | |
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 | ||
Sturm Ruger & Co. | 1.62 | % | |
Southern Union | 1.56 | % | |
3Com | 1.49 | % | |
Suffolk Bancorp | 1.43 | % | |
Flextronics International | 1.41 | % | |
Kennametal | 1.35 | % | |
Eastman Chemical | 1.32 | % | |
Foot Locker | 1.22 | % | |
Collective Brands | 1.19 | % | |
FPIC Insurance Group | 1.15 | % |
37
Statements of net assets
Optimum Fixed Income Fund
March 31, 2009
Principal | Value | ||||||||
Amount° | (U.S. $) | ||||||||
Agency Collateralized Mortgage Obligations – 15.03% | |||||||||
Fannie Mae | |||||||||
Series 1996-46 ZA | |||||||||
7.50% 11/25/26 | USD | 30,509 | $ | 32,895 | |||||
Series 1999-19 PH | |||||||||
6.00% 5/25/29 | 966,122 | 1,020,595 | |||||||
Series 2001-14 Z | |||||||||
6.00% 5/25/31 | 67,245 | 70,935 | |||||||
Series 2002-90 A1 | |||||||||
6.50% 6/25/42 | 20,297 | 21,426 | |||||||
Series 2002-90 A2 | |||||||||
6.50% 11/25/42 | 83,944 | 86,629 | |||||||
Series 2003-122 AJ | |||||||||
4.50% 2/25/28 | 112,903 | 114,658 | |||||||
Series 2005-22 HE | |||||||||
5.00% 10/25/33 | 740,000 | 770,351 | |||||||
Series 2005-29 QD | |||||||||
5.00% 8/25/33 | 816,000 | 849,546 | |||||||
Series 2005-54 AK | |||||||||
4.50% 9/25/32 | 805,630 | 824,803 | |||||||
Series 2005-94 YD | |||||||||
4.50% 8/25/33 | 1,480,000 | 1,519,848 | |||||||
Series 2005-110 MB | |||||||||
5.50% 9/25/35 | 714,665 | 736,602 | |||||||
· | Series 2007-2 SM | ||||||||
6.228% 2/25/37 | 15,332,553 | 1,209,936 | |||||||
Series 2007-30 OE | |||||||||
0.881% 4/25/37 | 11,950,967 | 10,882,835 | |||||||
Series 2008-24 ZA | |||||||||
5.00% 4/25/38 | 15,767,429 | 15,951,722 | |||||||
Series 2008-70 BA | |||||||||
4.00% 6/25/21 | 8,760,849 | 9,026,454 | |||||||
· | Series 2009-2 AS | ||||||||
5.178% 2/25/39 | 48,305,713 | 2,887,295 | |||||||
Fannie Mae Grantor Trust | |||||||||
Series 1999-T2 A1 | |||||||||
7.50% 1/19/39 | 29,904 | 31,914 | |||||||
Series 2001-T8 A2 | |||||||||
9.50% 7/25/41 | 15,312 | 16,651 | |||||||
Series 2002-T4 A3 | |||||||||
7.50% 12/25/41 | 103,778 | 111,205 | |||||||
Series 2004-T1 1A2 | |||||||||
6.50% 1/25/44 | 45,112 | 46,832 | |||||||
Fannie Mae Whole Loan | |||||||||
Series 2004-W4 A5 | |||||||||
5.50% 6/25/34 | 3,000,000 | 3,075,000 | |||||||
Series 2004-W9 2A1 | |||||||||
6.50% 2/25/44 | 54,674 | 56,758 | |||||||
Series 2004-W11 1A2 | |||||||||
6.50% 5/25/44 | 156,433 | 162,397 | |||||||
Series 2004-W15 1A1 | |||||||||
6.00% 8/25/44 | 276,455 | 284,575 | |||||||
Freddie Mac | |||||||||
Series 1730 Z | |||||||||
7.00% 5/15/24 | 196,881 | 203,670 | |||||||
Series 2165 PE | |||||||||
6.00% 6/15/29 | 993,720 | 1,046,202 | |||||||
Series 2326 ZQ | |||||||||
6.50% 6/15/31 | 354,841 | 377,053 | |||||||
Series 2497 BM | |||||||||
5.00% 2/15/22 | 240,041 | 245,756 | |||||||
Series 2504 J | |||||||||
5.50% 5/15/16 | 1,264,145 | 1,282,420 | |||||||
Series 2557 WE | |||||||||
5.00% 1/15/18 | 732,415 | 776,590 | |||||||
Series 2662 MA | |||||||||
4.50% 10/15/31 | 217,721 | 223,326 | |||||||
Series 2755 LE | |||||||||
4.00% 9/15/30 | 557,000 | 575,438 | |||||||
Series 2762 LG | |||||||||
5.00% 9/15/32 | 2,000,000 | 2,090,042 | |||||||
Series 2802 NE | |||||||||
5.00% 2/15/33 | 700,000 | 732,198 | |||||||
Series 2827 TE | |||||||||
5.00% 4/15/33 | 1,335,000 | 1,394,101 | |||||||
Series 2840 OE | |||||||||
5.00% 2/15/33 | 1,800,000 | 1,877,897 | |||||||
Series 2864 PE | |||||||||
5.00% 6/15/33 | 1,095,000 | 1,144,710 | |||||||
Series 2869 BG | |||||||||
5.00% 7/15/33 | 224,000 | 233,703 | |||||||
Series 2881 TE | |||||||||
5.00% 7/15/33 | 1,080,000 | 1,126,936 | |||||||
Series 2889 OG | |||||||||
5.00% 5/15/33 | 117,000 | 121,912 | |||||||
Series 2890 PC | |||||||||
5.00% 7/15/30 | 265,000 | 276,297 | |||||||
Series 2890 PD | |||||||||
5.00% 3/15/33 | 1,265,000 | 1,318,838 | |||||||
Series 2893 PD | |||||||||
5.00% 2/15/33 | 65,000 | 67,926 | |||||||
Series 2915 KD | |||||||||
5.00% 9/15/33 | 447,000 | 466,504 | |||||||
Series 2915 KP | |||||||||
5.00% 11/15/29 | 490,000 | 511,529 | |||||||
Series 2938 ND | |||||||||
5.00% 10/15/33 | 1,050,000 | 1,095,830 | |||||||
Series 2939 PD | |||||||||
5.00% 7/15/33 | 665,000 | 693,484 | |||||||
Series 2941 XD | |||||||||
5.00% 5/15/33 | 2,690,000 | 2,806,298 | |||||||
Series 2987 KG | |||||||||
5.00% 12/15/34 | 1,430,000 | 1,491,298 | |||||||
Series 3022 MB | |||||||||
5.00% 12/15/28 | 260,000 | 271,299 | |||||||
Series 3063 PC | |||||||||
5.00% 2/15/29 | 855,000 | 892,301 | |||||||
Series 3113 QA | |||||||||
5.00% 11/15/25 | 469,557 | 480,583 | |||||||
Series 3131 MC | |||||||||
5.50% 4/15/33 | 445,000 | 466,034 |
38
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Agency Collateralized Mortgage Obligations (continued) | ||||||||
Freddie Mac | ||||||||
Series 3145 LN | ||||||||
4.50% 10/15/34 | USD | 1,336,989 | $ | 1,387,854 | ||||
Series 3154 PJ | ||||||||
5.50% 3/15/27 | 696,016 | 709,060 | ||||||
Series 3337 PB | ||||||||
5.50% 7/15/30 | 505,000 | 521,078 | ||||||
Series 3476 Z | ||||||||
5.50% 7/15/38 | 10,372,603 | 10,684,185 | ||||||
w | Freddie Mac Structured Pass | |||||||
Through Securities | ||||||||
Series T-54 2A | ||||||||
6.50% 2/25/43 | 35,442 | 36,616 | ||||||
Series T-58 2A | ||||||||
6.50% 9/25/43 | 20,259 | 21,050 | ||||||
· | GNMA | |||||||
Series 2007-26 SW | ||||||||
5.655% 5/20/37 | 26,080,040 | 1,441,619 | ||||||
Series 2007-64 AI | ||||||||
6.005% 10/20/37 | 51,289,748 | 3,124,561 | ||||||
Series 2008-65 SB | ||||||||
5.455% 8/20/38 | 17,788,528 | 1,033,985 | ||||||
Series 2009-2 SE | ||||||||
5.275% 1/20/39 | 47,041,473 | 2,564,461 | ||||||
Total Agency Collateralized | ||||||||
Mortgage Obligations | ||||||||
(cost $83,850,970) | 95,606,506 | |||||||
Agency Mortgage-Backed Securities – 20.41% | ||||||||
Fannie Mae | ||||||||
5.50% 1/1/13 | 181,560 | 183,887 | ||||||
5.50% 3/1/37 | 719,887 | 743,592 | ||||||
5.50% 7/1/37 | 1,883,496 | 1,945,516 | ||||||
*6.00% 7/1/38 | 13,392,662 | 13,935,300 | ||||||
6.50% 8/1/17 | 101,661 | 106,512 | ||||||
· | Fannie Mae ARM | |||||||
5.041% 10/1/33 | 77,891 | 78,966 | ||||||
5.046% 8/1/35 | 317,091 | 325,867 | ||||||
5.135% 11/1/35 | 456,056 | 469,963 | ||||||
5.398% 4/1/36 | 568,383 | 587,951 | ||||||
5.918% 8/1/37 | 783,360 | 815,578 | ||||||
6.002% 7/1/37 | 1,884,866 | 1,959,973 | ||||||
Fannie Mae Relocation 30 yr | ||||||||
5.00% 11/1/33 | 33,925 | 34,565 | ||||||
5.00% 1/1/34 | 104,887 | 106,846 | ||||||
5.00% 2/1/34 | 67,738 | 69,015 | ||||||
5.00% 8/1/34 | 102,066 | 103,922 | ||||||
5.00% 11/1/34 | 159,806 | 162,710 | ||||||
5.00% 4/1/35 | 255,130 | 259,652 | ||||||
5.00% 10/1/35 | 211,865 | 215,621 | ||||||
5.00% 1/1/36 | 549,479 | 559,218 | ||||||
Fannie Mae S.F. 15 yr | ||||||||
4.50% 8/1/18 | 831,112 | 861,828 | ||||||
4.50% 7/1/20 | 1,843,014 | 1,908,825 | ||||||
5.00% 2/1/21 | 1,867,767 | 1,943,801 | ||||||
5.00% 5/1/21 | 222,008 | 231,462 | ||||||
Fannie Mae S.F. 20 yr | ||||||||
5.50% 7/1/24 | 795,118 | 830,001 | ||||||
5.50% 10/1/24 | 256,569 | 267,825 | ||||||
5.50% 12/1/24 | 814,661 | 850,402 | ||||||
Fannie Mae S.F. 30 yr | ||||||||
4.50% 3/1/39 | 484,260 | 495,455 | ||||||
5.00% 12/1/36 | 550,446 | 569,239 | ||||||
5.00% 12/1/37 | 409,120 | 422,617 | ||||||
5.00% 1/1/38 | 706,000 | 729,291 | ||||||
5.00% 2/1/38 | 330,155 | 341,047 | ||||||
5.50% 3/1/29 | 179,630 | 188,027 | ||||||
5.50% 4/1/29 | 85,509 | 89,506 | ||||||
5.50% 12/1/32 | 547,276 | 570,577 | ||||||
5.50% 7/1/33 | 1,323,530 | 1,379,470 | ||||||
5.50% 12/1/33 | 196,532 | 204,839 | ||||||
5.50% 4/1/34 | 3,118,089 | 3,250,192 | ||||||
*5.50% 5/1/34 | 895,107 | 932,939 | ||||||
5.50% 6/1/34 | 1,034,074 | 1,076,487 | ||||||
5.50% 7/1/34 | 1,740,677 | 1,812,072 | ||||||
5.50% 12/1/34 | 526,001 | 547,575 | ||||||
5.50% 2/1/35 | 5,039,698 | 5,250,938 | ||||||
5.50% 9/1/36 | 2,411,880 | 2,510,805 | ||||||
5.50% 7/1/37 | 1,050,197 | 1,091,079 | ||||||
5.50% 12/1/37 | 1,244,063 | 1,292,492 | ||||||
5.50% 10/1/38 | 2,555,346 | 2,654,821 | ||||||
6.00% 9/1/36 | 708,284 | 741,077 | ||||||
*6.00% 12/1/36 | 3,612,118 | 3,779,355 | ||||||
*6.00% 7/1/37 | 1,749,774 | 1,829,594 | ||||||
6.00% 3/1/38 | 755,859 | 790,340 | ||||||
*6.00% 4/1/38 | 13,408,578 | 14,020,244 | ||||||
6.00% 8/1/38 | 7,901,924 | 8,262,390 | ||||||
6.50% 11/1/33 | 37,121 | 39,353 | ||||||
6.50% 2/1/36 | 843,239 | 893,725 | ||||||
6.50% 3/1/36 | 1,428,202 | 1,506,293 | ||||||
6.50% 6/1/36 | 1,785,885 | 1,883,533 | ||||||
6.50% 8/1/36 | 1,173,962 | 1,238,151 | ||||||
*6.50% 11/1/36 | 1,015,252 | 1,070,764 | ||||||
6.50% 4/1/37 | 1,270,825 | 1,340,239 | ||||||
6.50% 8/1/37 | 1,715,957 | 1,809,685 | ||||||
6.50% 10/1/37 | 1,488,951 | 1,570,280 | ||||||
6.50% 11/1/37 | 1,416,979 | 1,494,377 | ||||||
6.50% 2/1/38 | 2,055,489 | 2,167,763 | ||||||
7.00% 2/1/38 | 1,836,470 | 1,956,018 | ||||||
7.00% 3/1/38 | 1,578,414 | 1,681,164 | ||||||
7.50% 3/1/32 | 1,829 | 1,972 | ||||||
7.50% 4/1/32 | 7,022 | 7,570 | ||||||
7.50% 6/1/32 | 4,823 | 5,199 | ||||||
Fannie Mae S.F. 30 yr TBA | ||||||||
4.00% 4/1/39 | 3,135,000 | 3,152,390 | ||||||
4.50% 4/1/39 | 6,005,000 | 6,136,359 |
(continues) 39
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Agency Mortgage-Backed Securities (continued) | ||||||||
· | Freddie Mac ARM | |||||||
4.406% 12/1/33 | USD | 164,440 | $ | 167,123 | ||||
5.239% 4/1/34 | 11,189 | 11,514 | ||||||
5.518% 2/1/38 | 2,002,425 | 2,077,687 | ||||||
5.673% 7/1/36 | 325,463 | 336,922 | ||||||
5.849% 5/1/37 | 2,112,653 | 2,195,783 | ||||||
Freddie Mac Relocation 30 yr | ||||||||
5.00% 9/1/33 | 4,928 | 5,023 | ||||||
Freddie Mac S.F. 15 yr | ||||||||
¥4.50% 5/1/20 | 1,057,531 | 1,093,971 | ||||||
5.00% 6/1/18 | 356,858 | 371,170 | ||||||
Freddie Mac S.F. 20 yr | ||||||||
5.50% 10/1/23 | 687,398 | 716,867 | ||||||
5.50% 8/1/24 | 165,890 | 172,880 | ||||||
Freddie Mac S.F. 30 yr | ||||||||
5.00% 4/1/35 | 616,850 | 638,759 | ||||||
*5.00% 7/1/38 | 756,932 | 781,527 | ||||||
5.50% 10/1/38 | 1,006,057 | 1,045,034 | ||||||
6.50% 11/1/33 | 74,842 | 79,405 | ||||||
6.50% 1/1/35 | 445,095 | 472,783 | ||||||
6.50% 5/1/37 | 63,947 | 67,492 | ||||||
6.50% 8/1/38 | 680,634 | 718,363 | ||||||
7.00% 1/1/38 | 742,488 | 786,585 | ||||||
Freddie Mac S.F. 30 yr TBA | ||||||||
5.00% 4/1/39 | 4,835,000 | 4,986,094 | ||||||
GNMA I S.F. 30 yr | ||||||||
7.00% 12/15/34 | 709,858 | 758,007 | ||||||
GNMA II 6.00% 4/20/34 | 53,256 | 55,620 | ||||||
Total Agency Mortgage-Backed | ||||||||
Securities (cost $124,917,657) | 129,884,710 | |||||||
Agency Obligations – 1.18% | ||||||||
Fannie Mae | ||||||||
*3.25% 4/9/13 | 860,000 | 898,499 | ||||||
4.75% 11/19/12 | 1,100,000 | 1,206,967 | ||||||
Federal Home Loan Bank | ||||||||
3.625% 10/18/13 | 735,000 | 767,440 | ||||||
^ | Financing Corporation | |||||||
Interest Strip | ||||||||
CPN 4.797% 5/2/12 | 85,000 | 78,285 | ||||||
CPN 4.901% 10/6/12 | 385,000 | 347,215 | ||||||
CPN 5.101% 10/6/11 | 113,000 | 106,368 | ||||||
CPN 5.175% 3/26/12 | 120,000 | 110,717 | ||||||
CPN 5.213% 10/6/15 | 160,000 | 128,068 | ||||||
CPN 1 5.162% 5/11/12 | 270,000 | 248,560 | ||||||
CPN 1 5.283% 5/11/15 | 330,000 | 268,703 | ||||||
CPN 4 5.213% 10/6/15 | 160,000 | 128,068 | ||||||
CPN 5 5.065% 8/8/11 | 39,000 | 36,977 | ||||||
CPN 12 5.10% 12/6/11 | 500,000 | 466,902 | ||||||
CPN 13 5.161% 12/27/12 | 135,000 | 120,681 | ||||||
CPN 15 4.903% 9/7/13 | 610,000 | 534,204 | ||||||
CPN A 5.098% 8/8/15 | 122,000 | 98,605 | ||||||
CPN A 5.099% 2/8/15 | 122,000 | 100,597 | ||||||
Freddie Mac | ||||||||
2.125% 3/23/12 | 165,000 | 166,370 | ||||||
4.125% 12/21/12 | 1,070,000 | 1,149,870 | ||||||
Tennessee Valley Authority | ||||||||
4.875% 1/15/48 | 550,000 | 522,910 | ||||||
Total Agency Obligations | ||||||||
(cost $7,053,645) | 7,486,006 | |||||||
Commercial Mortgage-Backed Securities – 2.73% | ||||||||
# | American Tower Trust 144A | |||||||
Series 2007-1A AFX | ||||||||
5.42% 4/15/37 | 420,000 | 363,300 | ||||||
Series 2007-1A D | ||||||||
5.957% 4/15/37 | 120,000 | 96,000 | ||||||
Bank of America Commercial | ||||||||
Mortgage Securities | ||||||||
·Series 2004-3 A5 | ||||||||
5.322% 6/10/39 | 655,000 | 543,934 | ||||||
·Series 2005-1 A5 | ||||||||
5.084% 11/10/42 | 675,000 | 548,329 | ||||||
·Series 2005-6 AM | ||||||||
5.18% 9/10/47 | 255,000 | 125,327 | ||||||
Series 2006-4 A4 | ||||||||
5.634% 7/10/46 | 595,000 | 444,473 | ||||||
·Series 2007-2 A2 | ||||||||
5.634% 4/10/49 | 3,710,000 | 3,030,102 | ||||||
·Series 2007-3 A4 | ||||||||
5.658% 6/10/49 | 445,000 | 301,623 | ||||||
Bear Stearns Commercial | ||||||||
Mortgage Securities | ||||||||
·Series 2005-T20 A4A | ||||||||
5.151% 10/12/42 | 500,000 | 400,410 | ||||||
·Series 2006-PW12 A4 | ||||||||
5.718% 9/11/38 | 750,000 | 639,461 | ||||||
Series 2006-PW14 A4 | ||||||||
5.201% 12/11/38 | 500,000 | 409,767 | ||||||
·Series 2007-PW16 A4 | ||||||||
5.717% 6/11/40 | 320,000 | 237,692 | ||||||
w | Commercial Mortgage Pass | |||||||
Through Certificates | ||||||||
·#Series 2001-J1A A2 | ||||||||
144A 6.457% 2/14/34 | 249,802 | 251,867 | ||||||
Series 2006-C7 A2 | ||||||||
5.69% 6/10/46 | 260,000 | 235,143 | ||||||
· | Credit Suisse Mortgage | |||||||
Capital Certificates | ||||||||
Series 2006-C1 AAB | ||||||||
5.552% 2/15/39 | 140,000 | 118,856 | ||||||
# | Crown Castle Towers 144A | |||||||
Series 2005-1A C | ||||||||
5.074% 6/15/35 | 175,000 | 161,875 | ||||||
Series 2006-1A B | ||||||||
5.362% 11/15/36 | 675,000 | 597,375 |
40
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Commercial Mortgage-Backed Securities (continued) | ||||||||
General Electric Capital | ||||||||
Commercial Mortgage | ||||||||
Series 2002-1A A3 | ||||||||
6.269% 12/10/35 | USD | 325,000 | $ | 314,154 | ||||
Series 2007-C1 A2 | ||||||||
5.417% 12/10/49 | 2,830,000 | 2,340,373 | ||||||
Goldman Sachs Mortgage | ||||||||
Securities II | ||||||||
·Series 2004-GG2 A6 | ||||||||
5.396% 8/10/38 | 570,000 | 467,552 | ||||||
Series 2005-GG4 A4 | ||||||||
4.761% 7/10/39 | 510,000 | 397,538 | ||||||
Series 2005-GG4 A4A | ||||||||
4.751% 7/10/39 | 515,000 | 380,957 | ||||||
@·#Series 2006-RR3 A1S | ||||||||
144A 5.66% 7/18/56 | 505,000 | 95,950 | ||||||
·#Series 2007-GG10 J | ||||||||
144A 5.799% 8/10/45 | 1,956,000 | 86,896 | ||||||
· | Greenwich Capital | |||||||
Commercial Funding | ||||||||
Series 2004-GG1 A7 | ||||||||
5.317% 6/10/36 | 255,000 | 218,047 | ||||||
JPMorgan Chase Commercial | ||||||||
Mortgage Securities | ||||||||
Series 2002-C1 A3 | ||||||||
5.376% 7/12/37 | 420,000 | 397,389 | ||||||
Series 2002-C2 A2 | ||||||||
5.05% 12/12/34 | 465,000 | 436,018 | ||||||
Series 2003-C1 A2 | ||||||||
4.985% 1/12/37 | 130,000 | 116,089 | ||||||
Series 2006-LDP9 A2 | ||||||||
5.134% 5/15/47 | 360,000 | 266,918 | ||||||
Lehman Brothers-UBS | ||||||||
Commercial Mortgage | ||||||||
Trust Series 2002-C1 A4 | ||||||||
6.462% 3/15/31 | 245,000 | 244,723 | ||||||
· | Morgan Stanley Capital I | |||||||
#Series 1999-FNV1 G | ||||||||
144A 6.12% 3/15/31 | 140,000 | 119,000 | ||||||
Series 2007-IQ14 A4 | ||||||||
5.692% 4/15/49 | 325,000 | 210,994 | ||||||
Series 2007-T27 A4 | ||||||||
5.65% 6/11/42 | 375,000 | 282,711 | ||||||
·# | Morgan Stanley Dean | |||||||
Witter Capital I | ||||||||
Series 2001-TOP1 E | ||||||||
144A 7.365% 2/15/33 | 100,000 | 62,472 | ||||||
# | NYC Mortgage Loan Trust | |||||||
Series 1996 A3 144A | ||||||||
6.75% 9/25/19 | 62,410 | 58,041 | ||||||
@·# | STRIPs III Series 2003-1A AFIX | |||||||
144A 3.308% 3/24/18 | 7,595 | 7,444 | ||||||
@# | Tower 144A | |||||||
Series 2006-1 B | ||||||||
5.588% 2/15/36 | 160,000 | 145,600 | ||||||
Series 2006-1 C | ||||||||
5.707% 2/15/36 | 250,000 | 228,750 | ||||||
Wachovia Bank Commercial | ||||||||
Mortgage Trust | ||||||||
Series 2006-C28 A2 | ||||||||
5.50% 10/15/48 | 555,000 | 486,917 | ||||||
Series 2007-C31A A2 | ||||||||
5.421% 4/15/47 | 1,880,000 | 1,483,158 | ||||||
Total Commercial Mortgage-Backed | ||||||||
Securities (cost $22,720,707) | 17,353,225 | |||||||
Convertible Bonds – 0.46% | ||||||||
Advanced Micro Devices | ||||||||
6.00% exercise price | ||||||||
$28.08, expiration | ||||||||
date 5/1/15 | 890,000 | 337,088 | ||||||
# | Host Hotels & Resorts 144A | |||||||
3.25% exercise price | ||||||||
$16.00, expiration | ||||||||
date 3/15/24 | 560,000 | 510,999 | ||||||
# | Leap Wireless International | |||||||
144A 4.50% exercise | ||||||||
price $93.21, expiration | ||||||||
date 7/15/14 | 160,000 | 119,600 | ||||||
National City | ||||||||
4.00% exercise price | ||||||||
$482.51, expiration | ||||||||
date 2/1/11 | 770,000 | 705,512 | ||||||
NII Holdings | ||||||||
3.125% exercise price | ||||||||
$118.32, expiration | ||||||||
date 6/15/12 | 140,000 | 98,000 | ||||||
Transocean | ||||||||
1.50% exercise price | ||||||||
$168.61, expiration | ||||||||
date 12/15/37 | 485,000 | 418,313 | ||||||
1.625% exercise price | ||||||||
$168.61, expiration | ||||||||
date 12/15/37 | 345,000 | 318,694 | ||||||
# | Virgin Media 144A | |||||||
6.50% exercise price | ||||||||
$19.22, expiration | ||||||||
date 11/15/16 | 80,000 | 43,400 | ||||||
*· | Wyeth 0.965% exercise | |||||||
price $60.09, expiration | ||||||||
date 1/14/24 | 394,000 | 393,212 | ||||||
Total Convertible Bonds | ||||||||
(cost $3,306,712) | 2,944,818 |
(continues) 41
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||||||
Amount° | (U.S. $) | |||||||||
Corporate Bonds – 23.46% | ||||||||||
Banking – 1.93% | ||||||||||
@·# | Banco Mercantil 144A | |||||||||
6.862% 10/13/21 | USD | 520,000 | $ | 276,590 | ||||||
Bank of America | ||||||||||
* | 5.125% 11/15/14 | 180,000 | 153,964 | |||||||
5.30% 3/15/17 | 1,040,000 | 765,364 | ||||||||
6.00% 10/15/36 | 250,000 | 165,814 | ||||||||
6.10% 6/15/17 | 615,000 | 446,356 | ||||||||
Bank of New York Mellon | ||||||||||
4.95% 3/15/15 | 310,000 | 296,957 | ||||||||
5.125% 8/27/13 | 440,000 | 450,784 | ||||||||
5.45% 4/1/16 | 575,000 | 546,530 | ||||||||
* | BB&T 5.25% 11/1/19 | 70,000 | 61,624 | |||||||
BB&T Capital Trust I | ||||||||||
5.85% 8/18/35 | 900,000 | 414,416 | ||||||||
BB&T Capital Trust II | ||||||||||
6.75% 6/7/36 | 1,310,000 | 724,336 | ||||||||
Branch Banking & Trust | ||||||||||
5.625% 9/15/16 | 380,000 | 355,370 | ||||||||
@# | CoBank 144A | |||||||||
7.875% 4/16/18 | 320,000 | 312,804 | ||||||||
JPMorgan Chase Capital XXV | ||||||||||
6.80% 10/1/37 | 2,827,000 | 1,876,686 | ||||||||
PNC Bank 6.875% 4/1/18 | 1,045,000 | 1,020,433 | ||||||||
PNC Funding | ||||||||||
5.625% 2/1/17 | 195,000 | 179,820 | ||||||||
@· | Popular North America | |||||||||
1.813% 4/6/09 | 265,000 | 264,947 | ||||||||
Silicon Valley Bank | ||||||||||
5.70% 6/1/12 | 724,000 | 690,773 | ||||||||
6.05% 6/1/17 | 250,000 | 194,045 | ||||||||
U.S. Bank North America | ||||||||||
4.80% 4/15/15 | 283,000 | 273,693 | ||||||||
4.95% 10/30/14 | 250,000 | 243,663 | ||||||||
· | USB Capital IX | |||||||||
6.189% 4/15/49 | 550,000 | 217,329 | ||||||||
Wachovia 5.75% 6/15/17 | 175,000 | 156,417 | ||||||||
Wells Fargo | ||||||||||
5.625% 12/11/17 | 952,000 | 870,065 | ||||||||
· | Wells Fargo Capital XIII | |||||||||
7.70% 12/29/49 | 2,796,000 | 1,332,711 | ||||||||
12,291,491 | ||||||||||
Basic Industry – 1.17% | ||||||||||
ArcelorMittal | ||||||||||
6.125% 6/1/18 | 1,608,000 | 1,165,165 | ||||||||
BHP Billiton Finance USA | ||||||||||
6.50% 4/1/19 | 180,000 | 182,698 | ||||||||
California Steel Industries | ||||||||||
6.125% 3/15/14 | 155,000 | 108,500 | ||||||||
@ | CPG International I | |||||||||
10.50% 7/1/13 | 109,000 | 51,775 | ||||||||
Domtar | ||||||||||
7.125% 8/15/15 | 89,000 | 60,075 | ||||||||
* | 7.875% 10/15/11 | 13,000 | 10,595 | |||||||
@# | Evraz Group 144A | |||||||||
9.50% 4/24/18 | 787,000 | 440,720 | ||||||||
Freeport McMoRan | ||||||||||
Copper & Gold | ||||||||||
8.25% 4/1/15 | 55,000 | 52,723 | ||||||||
8.375% 4/1/17 | 455,000 | 426,025 | ||||||||
Georgia-Pacific | ||||||||||
7.70% 6/15/15 | 79,000 | 71,890 | ||||||||
* | 8.875% 5/15/31 | 20,000 | 16,100 | |||||||
9.50% 12/1/11 | 9,000 | 9,034 | ||||||||
# | Georgia-Pacific 144A | |||||||||
7.125% 1/15/17 | 128,000 | 119,040 | ||||||||
Huntsman International | ||||||||||
7.375% 1/1/15 | 350,000 | 145,250 | ||||||||
* | 7.875% 11/15/14 | 117,000 | 48,555 | |||||||
Innophos 8.875% 8/15/14 | 243,000 | 200,475 | ||||||||
@# | Innophos Holding 144A | |||||||||
9.50% 4/15/12 | 145,000 | 102,225 | ||||||||
Lubrizol 8.875% 2/1/19 | 870,000 | 896,200 | ||||||||
# | MacDermid 144A | |||||||||
9.50% 4/15/17 | 411,000 | 143,850 | ||||||||
NewPage 10.00% 5/1/12 | 330,000 | 116,325 | ||||||||
Noranda Aluminum | ||||||||||
Acquisition PIK | ||||||||||
6.595% 5/15/15 | 207,000 | 65,205 | ||||||||
Norske Skog Canada | ||||||||||
8.625% 6/15/11 | 257,000 | 118,863 | ||||||||
@# | Norske Skogindustrier 144A | |||||||||
7.125% 10/15/33 | 370,000 | 172,050 | ||||||||
=@ | Port Townsend | |||||||||
12.431% 8/27/12 | 84,891 | 61,546 | ||||||||
@ | Potlatch 12.50% 12/1/09 | 315,000 | 329,898 | |||||||
Reliance Steel & Aluminum | ||||||||||
6.85% 11/15/36 | 590,000 | 360,775 | ||||||||
Rock-Tenn 9.25% 3/15/16 | 148,000 | 148,370 | ||||||||
Rockwood Specialties Group | ||||||||||
7.50% 11/15/14 | 240,000 | 204,000 | ||||||||
# | Ryerson 144A | |||||||||
· | 8.545% 11/1/14 | 137,000 | 71,583 | |||||||
12.25% 11/1/15 | 72,000 | 41,220 | ||||||||
@# | Sappi Papier Holding 144A | |||||||||
6.75% 6/15/12 | 439,000 | 246,877 | ||||||||
@# | Severstal 144A | |||||||||
9.75% 7/29/13 | 160,000 | 104,800 | ||||||||
Southern Copper | ||||||||||
7.50% 7/27/35 | 198,000 | 144,101 | ||||||||
# | Steel Dynamics 144A | |||||||||
7.75% 4/15/16 | 677,000 | 467,130 | ||||||||
United States Steel | ||||||||||
7.00% 2/1/18 | 255,000 | 174,270 | ||||||||
@ | Vale Overseas | |||||||||
6.875% 11/21/36 | 198,000 | 171,971 | ||||||||
# | Vedanta Resources 144A | |||||||||
9.50% 7/18/18 | 210,000 | 133,350 | ||||||||
· | Verso Paper Holdings | |||||||||
4.92% 8/1/14 | 101,000 | 29,795 | ||||||||
7,413,024 |
42
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Corporate Bonds (continued) | ||||||||
Brokerage – 1.05% | ||||||||
@ | AMVESCAP | |||||||
4.50% 12/15/09 | USD | 282,000 | $ | 269,621 | ||||
Citigroup 6.50% 8/19/13 | 915,000 | 841,585 | ||||||
E*Trade Financial | ||||||||
12.50% 11/30/17 | 127,000 | 58,420 | ||||||
Goldman Sachs Group | ||||||||
5.95% 1/18/18 | 750,000 | 682,008 | ||||||
6.15% 4/1/18 | 1,660,000 | 1,518,809 | ||||||
6.75% 10/1/37 | 516,000 | 349,839 | ||||||
Jefferies Group | ||||||||
6.45% 6/8/27 | 301,000 | 172,082 | ||||||
LaBranche 11.00% 5/15/12 | 215,000 | 194,844 | ||||||
Lazard Group | ||||||||
6.85% 6/15/17 | 280,000 | 225,785 | ||||||
Morgan Stanley | ||||||||
*5.30% 3/1/13 | 505,000 | 486,008 | ||||||
5.375% 10/15/15 | 1,580,000 | 1,429,312 | ||||||
5.55% 4/27/17 | 110,000 | 98,037 | ||||||
6.25% 8/9/26 | 280,000 | 232,155 | ||||||
@# | Nuveen Investments 144A | |||||||
10.50% 11/15/15 | 440,000 | 125,400 | ||||||
6,683,905 | ||||||||
Capital Goods – 1.25% | ||||||||
Allied Waste North America | ||||||||
6.875% 6/1/17 | 415,000 | 378,220 | ||||||
7.125% 5/15/16 | 895,000 | 835,721 | ||||||
7.25% 3/15/15 | 65,000 | 61,497 | ||||||
Anixter 10.00% 3/15/14 | 105,000 | 97,913 | ||||||
* | Associated Materials | |||||||
9.75% 4/15/12 | 182,000 | 144,690 | ||||||
Browning-Ferris Industries | ||||||||
7.40% 9/15/35 | 755,000 | 664,134 | ||||||
Building Materials | ||||||||
7.75% 8/1/14 | 203,000 | 140,578 | ||||||
Bway Holding | ||||||||
10.00% 10/15/10 | 443,000 | 449,645 | ||||||
Casella Waste Systems | ||||||||
9.75% 2/1/13 | 313,000 | 266,050 | ||||||
Celestica | ||||||||
7.625% 7/1/13 | 137,000 | 120,560 | ||||||
7.875% 7/1/11 | 71,000 | 69,580 | ||||||
Flextronics International | ||||||||
6.25% 11/15/14 | 101,000 | 85,850 | ||||||
* | Graham Packaging | |||||||
9.875% 10/15/14 | 349,000 | 226,850 | ||||||
* | Graphic Packaging | |||||||
International | ||||||||
9.50% 8/15/13 | 732,000 | 527,040 | ||||||
Ingersoll-Rand | ||||||||
Global Holding | ||||||||
9.50% 4/15/14 | 105,000 | 104,992 | ||||||
@ | Intertape Polymer | |||||||
8.50% 8/1/14 | 97,000 | 59,413 | ||||||
L-3 Communications | ||||||||
6.125% 7/15/13 | 154,000 | 148,610 | ||||||
# | Moog 144A 7.25% 6/15/18 | 137,000 | 127,068 | |||||
Owens Brockway | ||||||||
Glass Container | ||||||||
6.75% 12/1/14 | 295,000 | 284,675 | ||||||
* | RBS Global/Rexnord | |||||||
11.75% 8/1/16 | 169,000 | 103,935 | ||||||
Thermadyne Industries | ||||||||
10.00% 2/1/14 | 223,000 | 143,835 | ||||||
Tyco Electronics Group | ||||||||
6.55% 10/1/17 | 197,000 | 149,296 | ||||||
7.125% 10/1/37 | 1,054,000 | 676,420 | ||||||
Tyco International Finance | ||||||||
8.50% 1/15/19 | 1,235,000 | 1,276,864 | ||||||
@ | Vitro 11.75% 11/1/13 | 266,000 | 62,178 | |||||
Vought Aircraft Industries | ||||||||
8.00% 7/15/11 | 105,000 | 41,475 | ||||||
Waste Management | ||||||||
7.375% 3/11/19 | 245,000 | 250,319 | ||||||
WMX Technologies | ||||||||
7.10% 8/1/26 | 535,000 | 483,485 | ||||||
7,980,893 | ||||||||
Communications – 4.78% | ||||||||
AT&T | ||||||||
5.80% 2/15/19 | 1,375,000 | 1,348,524 | ||||||
6.40% 5/15/38 | 165,000 | 147,253 | ||||||
AT&T Wireless | ||||||||
8.125% 5/1/12 | 1,041,000 | 1,135,681 | ||||||
· | Centennial Communications | |||||||
7.185% 1/1/13 | 106,000 | 106,530 | ||||||
‡# | Charter Communications | |||||||
Operating 144A | ||||||||
*8.00% 4/30/12 | 47,000 | 43,240 | ||||||
8.375% 4/30/14 | 107,000 | 94,695 | ||||||
10.875% 9/15/14 | 527,000 | 513,825 | ||||||
Cincinnati Bell | ||||||||
7.00% 2/15/15 | 170,000 | 157,250 | ||||||
Citizens Communications | ||||||||
6.25% 1/15/13 | 110,000 | 100,238 | ||||||
7.125% 3/15/19 | 322,000 | 254,380 | ||||||
Comcast | ||||||||
·1.46% 7/14/09 | 309,000 | 307,400 | ||||||
4.95% 6/15/16 | 280,000 | 254,415 | ||||||
*5.70% 5/15/18 | 715,000 | 671,800 | ||||||
*5.875% 2/15/18 | 385,000 | 366,676 | ||||||
6.30% 11/15/17 | 39,000 | 38,010 | ||||||
Comcast Cable Holdings | ||||||||
10.125% 4/15/22 | 329,000 | 377,538 | ||||||
Cricket Communications | ||||||||
9.375% 11/1/14 | 560,000 | 536,200 | ||||||
Crown Castle International | ||||||||
9.00% 1/15/15 | 314,000 | 316,355 |
(continues) 43
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Corporate Bonds (continued) | ||||||||
Communications (continued) | ||||||||
CSC Holdings | ||||||||
6.75% 4/15/12 | USD | 219,000 | $ | 211,883 | ||||
# | CSC Holdings 144A | |||||||
8.50% 4/15/14 | 292,000 | 289,080 | ||||||
8.50% 6/15/15 | 93,000 | 91,373 | ||||||
Deutsche Telekom | ||||||||
International Finance | ||||||||
5.25% 7/22/13 | 765,000 | 763,396 | ||||||
6.75% 8/20/18 | 1,140,000 | 1,146,880 | ||||||
# | Digicel 144A 9.25% 9/1/12 | 225,000 | 199,688 | |||||
# | Digicel Group 144A | |||||||
8.875% 1/15/15 | 210,000 | 136,500 | ||||||
DirecTV Holdings | ||||||||
8.375% 3/15/13 | 71,000 | 72,154 | ||||||
Echostar DBS | ||||||||
7.125% 2/1/16 | 303,000 | 272,700 | ||||||
# | Expedia 144A | |||||||
8.50% 7/1/16 | 122,000 | 104,310 | ||||||
GCI 7.25% 2/15/14 | 96,000 | 84,480 | ||||||
@ | Grupo Televisa | |||||||
8.49% 5/11/37 | MXN | 7,400,000 | 378,366 | |||||
Hughes Network | ||||||||
Systems/Finance | ||||||||
9.50% 4/15/14 | USD | 262,000 | 235,800 | |||||
Inmarsat Finance | ||||||||
10.375% 11/15/12 | 1,019,000 | 1,049,570 | ||||||
Intelsat Jackson Holdings | ||||||||
11.25% 6/15/16 | 807,000 | 786,825 | ||||||
# | Intelsat Subsidiary Holding | |||||||
144A 8.875% 1/15/15 | 72,000 | 67,500 | ||||||
Lamar Media | ||||||||
6.625% 8/15/15 | 461,000 | 336,485 | ||||||
# | LBI Media 144A | |||||||
8.50% 8/1/17 | 81,000 | 22,275 | ||||||
Lucent Technologies | ||||||||
6.45% 3/15/29 | 227,000 | 87,395 | ||||||
Mediacom Capital | ||||||||
9.50% 1/15/13 | 120,000 | 112,800 | ||||||
MetroPCS Wireless | ||||||||
9.25% 11/1/14 | 679,000 | 662,025 | ||||||
Nielsen Finance | ||||||||
10.00% 8/1/14 | 182,000 | 157,430 | ||||||
*# | Nordic Telephone Holdings | |||||||
144A 8.875% 5/1/16 | 375,000 | 352,500 | ||||||
Quebecor Media | ||||||||
7.75% 3/15/16 | 120,000 | 91,800 | ||||||
* | Qwest Capital Funding | |||||||
7.25% 2/15/11 | 106,000 | 101,760 | ||||||
# | Rainbow National Services | |||||||
144A 10.375% 9/1/14 | 113,000 | 115,825 | ||||||
Rogers Communications | ||||||||
6.80% 8/15/18 | 1,430,000 | 1,431,703 | ||||||
7.50% 8/15/38 | 345,000 | 343,129 | ||||||
8.00% 12/15/12 | 108,000 | 109,485 | ||||||
Sprint Nextel | ||||||||
6.00% 12/1/16 | 1,612,000 | 1,160,640 | ||||||
Telecom Italia Capital | ||||||||
4.00% 1/15/10 | 301,000 | 296,476 | ||||||
5.25% 10/1/15 | 1,045,000 | 882,257 | ||||||
6.20% 7/18/11 | 50,000 | 49,126 | ||||||
# | Telesat Canada 144A | |||||||
11.00% 11/1/15 | 260,000 | 217,100 | ||||||
12.50% 11/1/17 | 197,000 | 146,765 | ||||||
Time Warner Cable | ||||||||
6.75% 7/1/18 | 910,000 | 855,650 | ||||||
7.50% 4/1/14 | 415,000 | 423,565 | ||||||
8.25% 4/1/19 | 385,000 | 396,305 | ||||||
8.75% 2/14/19 | 930,000 | 989,141 | ||||||
Time Warner | ||||||||
Telecom Holdings | ||||||||
9.25% 2/15/14 | 291,000 | 282,270 | ||||||
Verizon Communications | ||||||||
5.50% 2/15/18 | 220,000 | 209,872 | ||||||
6.10% 4/15/18 | 140,000 | 138,934 | ||||||
6.35% 4/1/19 | 940,000 | 930,359 | ||||||
6.90% 4/15/38 | 710,000 | 688,799 | ||||||
*8.95% 3/1/39 | 930,000 | 1,071,805 | ||||||
# | Verizon Wireless | |||||||
Capital 144A | ||||||||
5.55% 2/1/14 | 810,000 | 811,526 | ||||||
8.50% 11/15/18 | 520,000 | 595,009 | ||||||
Videotron 6.375% 12/15/15 | 100,000 | 91,125 | ||||||
# | Videotron 144A | |||||||
9.125% 4/15/18 | 188,000 | 191,995 | ||||||
@# | Vimpelcom 144A | |||||||
9.125% 4/30/18 | 567,000 | 351,540 | ||||||
* | Virgin Media Finance | |||||||
8.75% 4/15/14 | 402,000 | 381,900 | ||||||
# | Vivendi 144A | |||||||
6.625% 4/4/18 | 1,260,000 | 1,157,039 | ||||||
Vodafone Group | ||||||||
5.00% 12/16/13 | 700,000 | 710,106 | ||||||
5.00% 9/15/15 | 215,000 | 209,666 | ||||||
5.625% 2/27/17 | 165,000 | 163,787 | ||||||
# | Wind Acquisition Finance | |||||||
144A 10.75% 12/1/15 | 150,000 | 149,250 | ||||||
Windstream 8.125% 8/1/13 | 300,000 | 297,000 | ||||||
30,434,134 | ||||||||
Consumer Cyclical – 2.00% | ||||||||
Centex | ||||||||
4.55% 11/1/10 | 426,000 | 389,790 | ||||||
5.125% 10/1/13 | 57,000 | 45,315 |
44
Principal | Value | ||||||||
Amount° | (U.S. $) | ||||||||
Corporate Bonds (continued) | |||||||||
Consumer Cyclical (continued) | |||||||||
Corrections Corporation | |||||||||
of America | |||||||||
6.25% 3/15/13 | USD | 105,000 | $ | 101,063 | |||||
CVS Caremark | |||||||||
4.875% 9/15/14 | 762,000 | 756,136 | |||||||
5.75% 6/1/17 | 3,000 | 2,930 | |||||||
6.25% 6/1/27 | 245,000 | 226,364 | |||||||
· | 6.302% 6/1/37 | 1,897,000 | 1,138,914 | ||||||
6.60% 3/15/19 | 1,160,000 | 1,171,294 | |||||||
Denny’s Holdings | |||||||||
10.00% 10/1/12 | 82,000 | 71,340 | |||||||
*Dollar General | |||||||||
10.625% 7/15/15 | 294,000 | 294,735 | |||||||
DR Horton | |||||||||
6.00% 4/15/11 | 328,000 | 305,040 | |||||||
7.875% 8/15/11 | 237,000 | 227,520 | |||||||
Ford Motor Credit | |||||||||
· | 4.01% 1/13/12 | 165,000 | 104,156 | ||||||
7.80% 6/1/12 | 455,000 | 308,559 | |||||||
9.875% 8/10/11 | 290,000 | 219,626 | |||||||
@*# | Galaxy Entertainment | ||||||||
Finance 144A | |||||||||
9.875% 12/15/12 | 295,000 | 196,175 | |||||||
Gaylord Entertainment | |||||||||
6.75% 11/15/14 | 88,000 | 54,560 | |||||||
8.00% 11/15/13 | 271,000 | 180,215 | |||||||
Global Cash Access | |||||||||
8.75% 3/15/12 | 209,000 | 172,425 | |||||||
* | Goodyear Tire & Rubber | ||||||||
9.00% 7/1/15 | 259,000 | 200,725 | |||||||
# | Invista 144A 9.25% 5/1/12 | 240,000 | 216,000 | ||||||
Levi Strauss 9.75% 1/15/15 | 276,000 | 238,740 | |||||||
Limited Brands | |||||||||
6.90% 7/15/17 | 165,000 | 113,425 | |||||||
M/I Homes 6.875% 4/1/12 | 101,000 | 53,530 | |||||||
Macy’s Retail Holdings | |||||||||
6.65% 7/15/24 | 1,080,000 | 582,222 | |||||||
*# | MGM MIRAGE 144A | ||||||||
13.00% 11/15/13 | 297,000 | 222,750 | |||||||
Mobile Mini 6.875% 5/1/15 | 140,000 | 97,300 | |||||||
Mohawk Industries | |||||||||
6.625% 1/15/16 | 165,000 | 121,725 | |||||||
Pinnacle Entertainment | |||||||||
8.25% 3/15/12 | 27,000 | 23,760 | |||||||
8.75% 10/1/13 | 137,000 | 121,245 | |||||||
# | Pokagon Gaming | ||||||||
Authority 144A | |||||||||
10.375% 6/15/14 | 303,000 | 253,005 | |||||||
Ryland Group | |||||||||
5.375% 5/15/12 | 344,000 | 301,000 | |||||||
6.875% 6/15/13 | 267,000 | 236,295 | |||||||
* | Sally Holdings | ||||||||
10.50% 11/15/16 | 270,000 | 237,600 | |||||||
Target | |||||||||
5.125% 1/15/13 | 895,000 | 933,034 | |||||||
7.00% 1/15/38 | 110,000 | 103,346 | |||||||
Toll | |||||||||
8.25% 2/1/11 | 324,000 | 317,520 | |||||||
8.25% 12/1/11 | 29,000 | 28,275 | |||||||
# | TRW Automotive 144A | ||||||||
7.00% 3/15/14 | 165,000 | 70,125 | |||||||
7.25% 3/15/17 | 100,000 | 42,000 | |||||||
VF | |||||||||
5.95% 11/1/17 | 170,000 | 161,719 | |||||||
6.45% 11/1/37 | 35,000 | 30,311 | |||||||
Wal-Mart Stores | |||||||||
5.25% 9/1/35 | 300,000 | 270,536 | |||||||
6.20% 4/15/38 | 570,000 | 578,085 | |||||||
6.50% 8/15/37 | 310,000 | 323,379 | |||||||
Yum! Brands | |||||||||
6.875% 11/15/37 | 1,020,000 | 848,022 | |||||||
12,691,831 | |||||||||
Consumer Non-Cyclical – 4.29% | |||||||||
Abbott Laboratories | |||||||||
5.125% 4/1/19 | 810,000 | 816,222 | |||||||
ACCO Brands | |||||||||
7.625% 8/15/15 | 85,000 | 17,425 | |||||||
* | Alliance Imaging | ||||||||
7.25% 12/15/12 | 136,000 | 131,240 | |||||||
Alliance One International | |||||||||
8.50% 5/15/12 | 47,000 | 40,185 | |||||||
11.00% 5/15/12 | 59,000 | 55,165 | |||||||
@# | AmBev International | ||||||||
Finance 144A | |||||||||
9.50% 7/24/17 | BRL | 210,000 | 74,264 | ||||||
Amgen | |||||||||
5.70% 2/1/19 | USD | 145,000 | 147,546 | ||||||
6.375% 6/1/37 | 310,000 | 298,225 | |||||||
6.40% 2/1/39 | 650,000 | 626,885 | |||||||
6.90% 6/1/38 | 735,000 | 756,994 | |||||||
# | Anheuser-Busch InBev | ||||||||
Worldwide 144A | |||||||||
7.75% 1/15/19 | 355,000 | 354,570 | |||||||
8.20% 1/15/39 | 1,495,000 | 1,470,967 | |||||||
* | Aramark 8.50% 2/1/15 | 460,000 | 425,500 | ||||||
*# | Bausch & Lomb 144A | ||||||||
9.875% 11/1/15 | 959,000 | 764,803 | |||||||
Biomet | |||||||||
10.00% 10/15/17 | 171,000 | 170,145 | |||||||
11.625% 10/15/17 | 39,000 | 34,613 | |||||||
* | Community Health Systems | ||||||||
8.875% 7/15/15 | 322,000 | 305,900 | |||||||
Constellation Brands | |||||||||
8.125% 1/15/12 | 110,000 | 110,550 | |||||||
Cornell 10.75% 7/1/12 | 63,000 | 60,008 | |||||||
Cott Beverages | |||||||||
8.00% 12/15/11 | 191,000 | 108,870 |
(continues) 45
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Corporate Bonds (continued) | ||||||||
Consumer Non-Cyclical (continued) | ||||||||
Covidien International | ||||||||
Finance | ||||||||
6.00% 10/15/17 | USD | 2,816,000 | $ | 2,860,796 | ||||
6.55% 10/15/37 | 2,000 | 1,976 | ||||||
Del Monte | ||||||||
6.75% 2/15/15 | 46,000 | 43,470 | ||||||
8.625% 12/15/12 | 34,000 | 34,340 | ||||||
Delhaize America | ||||||||
9.00% 4/15/31 | 1,274,000 | 1,357,416 | ||||||
Delhaize Group | ||||||||
5.875% 2/1/14 | 150,000 | 150,111 | ||||||
6.50% 6/15/17 | 289,000 | 279,799 | ||||||
Diageo Capital | ||||||||
5.75% 10/23/17 | 159,000 | 162,357 | ||||||
Elan Finance | ||||||||
7.75% 11/15/11 | 70,000 | 59,150 | ||||||
8.875% 12/1/13 | 155,000 | 124,775 | ||||||
HCA | ||||||||
6.50% 2/15/16 | 373,000 | 246,180 | ||||||
9.25% 11/15/16 | 917,000 | 836,763 | ||||||
HCA PIK 9.625% 11/15/16 | 66,000 | 52,800 | ||||||
· | HealthSouth | |||||||
8.323% 6/15/14 | 425,000 | 367,625 | ||||||
Iron Mountain | ||||||||
6.625% 1/1/16 | 76,000 | 70,680 | ||||||
8.00% 6/15/20 | 323,000 | 302,005 | ||||||
* | Jarden 7.50% 5/1/17 | 188,000 | 152,280 | |||||
JohnsonDiversey Holdings | ||||||||
10.67% 5/15/13 | 189,000 | 142,695 | ||||||
Kraft Foods | ||||||||
4.125% 11/12/09 | 10,000 | 10,107 | ||||||
Kroger 7.50% 1/15/14 | 805,000 | 894,107 | ||||||
McKesson | ||||||||
5.70% 3/1/17 | 135,000 | 127,957 | ||||||
7.50% 2/15/19 | 845,000 | 898,453 | ||||||
Medtronic 4.50% 3/15/14 | 1,595,000 | 1,637,300 | ||||||
Novartis Capital | ||||||||
4.125% 2/10/14 | 305,000 | 312,019 | ||||||
Novartis Securities Investment | ||||||||
5.125% 2/10/19 | 225,000 | 228,887 | ||||||
Pfizer | ||||||||
6.20% 3/15/19 | 780,000 | 832,812 | ||||||
7.20% 3/15/39 | 730,000 | 785,365 | ||||||
# | President & Fellows of | |||||||
Harvard College 144A | ||||||||
6.00% 1/15/19 | 805,000 | 867,585 | ||||||
6.50% 1/15/39 | 580,000 | 650,140 | ||||||
Princeton University | ||||||||
5.70% 3/1/39 | 815,000 | 802,873 | ||||||
Psychiatric Solutions | ||||||||
7.75% 7/15/15 | 100,000 | 90,750 | ||||||
Quest Diagnostic | ||||||||
5.45% 11/1/15 | 1,283,000 | 1,213,990 | ||||||
6.40% 7/1/17 | 30,000 | 28,675 | ||||||
6.95% 7/1/37 | 461,000 | 398,130 | ||||||
RSC Equipment Rental | ||||||||
9.50% 12/1/14 | 219,000 | 108,405 | ||||||
Schering-Plough | ||||||||
6.00% 9/15/17 | 805,000 | 831,279 | ||||||
Select Medical | ||||||||
7.625% 2/1/15 | 333,000 | 217,283 | ||||||
@# | Seminole Indian Tribe of | |||||||
Florida 144A | ||||||||
7.804% 10/1/20 | 195,000 | 152,205 | ||||||
8.03% 10/1/20 | 80,000 | 66,408 | ||||||
Smithfield Foods | ||||||||
7.75% 5/15/13 | 150,000 | 101,250 | ||||||
Tenet Healthcare | ||||||||
7.375% 2/1/13 | 250,000 | 200,000 | ||||||
# | Tyson Foods 144A | |||||||
10.50% 3/1/14 | 155,000 | 158,875 | ||||||
Universal Hospital PIK | ||||||||
8.50% 6/1/15 | 166,000 | 148,570 | ||||||
US Oncology | ||||||||
9.00% 8/15/12 | 120,000 | 117,000 | ||||||
Visant Holding | ||||||||
8.75% 12/1/13 | 251,000 | 229,665 | ||||||
WellPoint 5.95% 12/15/34 | 606,000 | 496,908 | ||||||
Wyeth 5.50% 2/1/14 | 638,000 | 670,874 | ||||||
27,293,167 | ||||||||
Electric – 1.59% | ||||||||
AES | ||||||||
7.75% 3/1/14 | 32,000 | 28,800 | ||||||
8.00% 10/15/17 | 98,000 | 84,525 | ||||||
# | AES 144A | |||||||
8.00% 6/1/20 | 512,000 | 417,280 | ||||||
8.75% 5/15/13 | 53,000 | 52,470 | ||||||
Columbus Southern Power | ||||||||
6.05% 5/1/18 | 251,000 | 232,601 | ||||||
Commonwealth Edison | ||||||||
5.80% 3/15/18 | 40,000 | 37,962 | ||||||
5.90% 3/15/36 | 90,000 | 73,923 | ||||||
6.15% 9/15/17 | 431,000 | 410,250 | ||||||
· | Dominion Resources | |||||||
6.30% 9/30/66 | 810,000 | 457,876 | ||||||
Duke Energy Indiana | ||||||||
6.45% 4/1/39 | 205,000 | 210,664 | ||||||
Duquense Light Holdings | ||||||||
5.50% 8/15/15 | 756,000 | 632,645 | ||||||
Edison Mission Energy | ||||||||
7.00% 5/15/17 | 74,000 | 54,390 | ||||||
7.625% 5/15/27 | 459,000 | 277,695 | ||||||
Elwood Energy | ||||||||
8.159% 7/5/26 | 254,116 | 195,115 | ||||||
Florida Power & Light | ||||||||
5.96% 4/1/39 | 300,000 | 304,853 | ||||||
· | FPL Group Capital | |||||||
6.65% 6/15/67 | 1,080,000 | 778,718 | ||||||
Illinois Power | ||||||||
6.125% 11/15/17 | 823,000 | 749,071 |
46
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Corporate Bonds (continued) | ||||||||
Electric (continued) | ||||||||
Indiana Michigan Power | ||||||||
7.00% 3/15/19 | USD | 215,000 | $ | 210,319 | ||||
* | Jersey Central Power & | |||||||
Light 7.35% 2/1/19 | 215,000 | 220,084 | ||||||
Midamerican Funding | ||||||||
6.75% 3/1/11 | 10,000 | 10,334 | ||||||
Midwest Generation | ||||||||
8.30% 7/2/09 | 34,684 | 34,164 | ||||||
Mirant Americas Generation | ||||||||
8.50% 10/1/21 | 530,000 | 394,850 | ||||||
w | Mirant Mid Atlantic | |||||||
Pass Through Trust | ||||||||
8.625% 6/30/12 | 121,779 | 121,490 | ||||||
Mirant North America | ||||||||
7.375% 12/31/13 | 76,000 | 69,160 | ||||||
NRG Energy | ||||||||
7.25% 2/1/14 | 120,000 | 113,100 | ||||||
7.375% 2/1/16 | 607,000 | 566,028 | ||||||
7.375% 1/15/17 | 143,000 | 133,348 | ||||||
Orion Power Holdings | ||||||||
12.00% 5/1/10 | 226,000 | 234,193 | ||||||
Peco Energy 5.35% 3/1/18 | 205,000 | 199,180 | ||||||
# | Pedernales Electric | |||||||
Cooperative 144A | ||||||||
6.202% 11/15/32 | 620,000 | 612,976 | ||||||
· | PPL Capital Funding | |||||||
6.70% 3/30/67 | 1,555,000 | 887,509 | ||||||
PPL Electric Utilities | ||||||||
7.125% 11/30/13 | 435,000 | 477,626 | ||||||
* | Reliant Energy | |||||||
7.625% 6/15/14 | 301,000 | 245,315 | ||||||
Texas Competitive | ||||||||
Electric Holdings | ||||||||
10.25% 11/1/15 | 378,000 | 190,890 | ||||||
# | TXU Australia 144A | |||||||
6.15% 11/15/13 | 375,000 | 371,227 | ||||||
10,090,631 | ||||||||
Energy – 1.47% | ||||||||
Chesapeake Energy | ||||||||
*6.375% 6/15/15 | 39,000 | 33,053 | ||||||
6.625% 1/15/16 | 231,000 | 193,463 | ||||||
9.50% 2/15/15 | 660,000 | 645,150 | ||||||
Complete Production Service | ||||||||
8.00% 12/15/16 | 112,000 | 71,680 | ||||||
Compton Petroleum Finance | ||||||||
7.625% 12/1/13 | 311,000 | 99,520 | ||||||
ConocoPhillips | ||||||||
6.50% 2/1/39 | 320,000 | 313,163 | ||||||
# | Copano Energy 144A | |||||||
7.75% 6/1/18 | 135,000 | 108,000 | ||||||
Denbury Resources | ||||||||
9.75% 3/1/16 | 127,000 | 123,190 | ||||||
Frontier Oil 8.50% 9/15/16 | 103,000 | 101,970 | ||||||
Geophysique-Veritas | ||||||||
7.50% 5/15/15 | 28,000 | 22,260 | ||||||
7.75% 5/15/17 | 209,000 | 160,930 | ||||||
Halliburton 7.45% 9/15/39 | 510,000 | 512,107 | ||||||
# | Helix Energy Solutions | |||||||
Group 144A | ||||||||
9.50% 1/15/16 | 582,000 | 346,290 | ||||||
# | Hilcorp Energy I 144A | |||||||
7.75% 11/1/15 | 191,000 | 140,385 | ||||||
9.00% 6/1/16 | 204,000 | 151,980 | ||||||
International Coal Group | ||||||||
10.25% 7/15/14 | 247,000 | 159,315 | ||||||
Key Energy Services | ||||||||
8.375% 12/1/14 | 102,000 | 64,770 | ||||||
Marathon Oil | ||||||||
7.50% 2/15/19 | 310,000 | 312,861 | ||||||
Mariner Energy | ||||||||
8.00% 5/15/17 | 219,000 | 145,635 | ||||||
MarkWest Energy Partners | ||||||||
8.75% 4/15/18 | 157,000 | 110,293 | ||||||
Massey Energy | ||||||||
6.875% 12/15/13 | 295,000 | 258,125 | ||||||
Noble Energy 8.25% 3/1/19 | 260,000 | 266,765 | ||||||
OPTI Canada | ||||||||
7.875% 12/15/14 | 120,000 | 53,100 | ||||||
8.25% 12/15/14 | 160,000 | 72,400 | ||||||
* | Petrobras International | |||||||
Finance 7.875% 3/15/19 | 195,000 | 203,034 | ||||||
PetroHawk Energy | ||||||||
9.125% 7/15/13 | 32,000 | 30,880 | ||||||
# | PetroHawk Energy 144A | |||||||
7.875% 6/1/15 | 185,000 | 163,725 | ||||||
10.50% 8/1/14 | 110,000 | 110,000 | ||||||
@ | Petroleum Development | |||||||
12.00% 2/15/18 | 185,000 | 123,025 | ||||||
Plains All American Pipeline | ||||||||
6.50% 5/1/18 | 565,000 | 489,141 | ||||||
Plains Exploration & Production | ||||||||
7.00% 3/15/17 | 92,000 | 73,600 | ||||||
7.625% 6/1/18 | 369,000 | 300,735 | ||||||
Range Resources | ||||||||
7.25% 5/1/18 | 123,000 | 110,700 | ||||||
# | Tennessee Gas Pipeline 144A | |||||||
8.00% 2/1/16 | 70,000 | 70,350 | ||||||
TransCanada Pipelines | ||||||||
7.125% 1/15/19 | 365,000 | 381,516 | ||||||
7.25% 8/15/38 | 985,000 | 923,289 | ||||||
Valero Energy | ||||||||
9.375% 3/15/19 | 260,000 | 268,850 | ||||||
Weatherford International | ||||||||
5.95% 6/15/12 | 605,000 | 579,332 | ||||||
7.00% 3/15/38 | 160,000 | 116,613 |
(continues) 47
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | |||||||
Amount° | (U.S. $) | |||||||
Corporate Bonds (continued) | ||||||||
Energy (continued) | ||||||||
Whiting Petroleum | ||||||||
7.25% 5/1/13 | USD | 174,000 | $ | 137,460 | ||||
Williams 7.50% 1/15/31 | 130,000 | 102,940 | ||||||
XTO Energy | ||||||||
5.75% 12/15/13 | 419,000 | 424,025 | ||||||
6.75% 8/1/37 | 310,000 | 282,976 | ||||||
9,358,596 | ||||||||
Finance Companies – 1.14% | ||||||||
@ | Cardtronics 9.25% 8/15/13 | 372,000 | 239,940 | |||||
FTI Consulting | ||||||||
7.625% 6/15/13 | 427,000 | 432,338 | ||||||
General Electric Capital | ||||||||
·3.85% 2/2/11 | NOK | 3,500,000 | 481,991 | |||||
@5.125% 1/28/14 | SEK | 2,500,000 | 284,549 | |||||
5.875% 1/14/38 | USD | 1,680,000 | 1,203,402 | |||||
*6.75% 3/15/32 | 80,000 | 65,040 | ||||||
6.875% 1/10/39 | 1,050,000 | 858,739 | ||||||
@ | General Electric Capital | |||||||
UK Funding | ||||||||
4.625% 1/18/16 | GBP | 226,000 | 259,672 | |||||
# | GMAC 144A | |||||||
6.00% 12/15/11 | USD | 85,000 | 57,901 | |||||
6.625% 5/15/12 | 69,000 | 46,316 | ||||||
6.875% 9/15/11 | 525,000 | 373,265 | ||||||
6.875% 8/28/12 | 296,000 | 198,921 | ||||||
· | Goldman Sachs Capital II | |||||||
5.793% 12/29/49 | 1,818,000 | 757,346 | ||||||
@· | HSBC Financial | |||||||
1.249% 4/24/10 | CAD | 283,000 | 219,171 | |||||
·# | ILFC E-Capital Trust II 144A | |||||||
6.25% 12/21/65 | USD | 405,000 | 65,001 | |||||
International Lease Finance | ||||||||
5.35% 3/1/12 | 383,000 | 215,063 | ||||||
5.625% 9/20/13 | 565,000 | 316,365 | ||||||
5.875% 5/1/13 | 235,000 | 126,108 | ||||||
6.625% 11/15/13 | 425,000 | 235,609 | ||||||
Lender Processing Services | ||||||||
8.125% 7/1/16 | 108,000 | 107,730 | ||||||
* | Pinnacle Foods Finance | |||||||
9.25% 4/1/15 | 103,000 | 82,400 | ||||||
SLM 8.45% 6/15/18 | 1,170,000 | 632,745 | ||||||
7,259,612 | ||||||||
Insurance – 1.66% | ||||||||
21st Century Insurance | ||||||||
5.90% 12/15/13 | 275,000 | 110,764 | ||||||
# | Farmers Insurance Exchange | |||||||
144A 8.625% 5/1/24 | 610,000 | 386,075 | ||||||
FBL Financial Group | ||||||||
5.875% 3/15/17 | 720,000 | 497,173 | ||||||
· | Hartford Financial | |||||||
Services Group | ||||||||
8.125% 6/15/38 | 2,335,000 | 748,764 | ||||||
·# | Liberty Mutual Group 144A | |||||||
10.75% 6/15/58 | 325,000 | 159,434 | ||||||
MetLife 6.817% 8/15/18 | 315,000 | 270,886 | ||||||
·# | MetLife Capital Trust X | |||||||
144A 9.25% 4/8/38 | 2,600,000 | 1,458,227 | ||||||
# | Metropolitan Life Global | |||||||
Funding I 144A | ||||||||
4.25% 7/30/09 | 420,000 | 419,445 | ||||||
5.125% 4/10/13 | 375,000 | 342,786 | ||||||
@∏ | Montpelier Re Holdings | |||||||
6.125% 8/15/13 | 125,000 | 96,047 | ||||||
# | NLV Financial 144A | |||||||
6.50% 3/15/35 | 385,000 | 247,804 | ||||||
·# | Oil Insurance 144A | |||||||
7.558% 12/29/49 | 2,295,000 | 845,297 | ||||||
· | PartnerRe Finance II | |||||||
6.44% 12/1/66 | 1,148,000 | 575,347 | ||||||
·# | Symetra Financial 144A | |||||||
8.30% 10/15/37 | 515,000 | 167,533 | ||||||
Transatlantic Holdings | ||||||||
5.75% 12/14/15 | 1,154,000 | 700,236 | ||||||
‡w# | Twin Reefs Pass Through | |||||||
Trust 144A | ||||||||
2.825% 12/31/49 | 300,000 | 435 | ||||||
UnitedHealth Group | ||||||||
5.50% 11/15/12 | 703,000 | 702,505 | ||||||
5.80% 3/15/36 | 2,162,000 | 1,679,028 | ||||||
WellPoint | ||||||||
5.00% 1/15/11 | 506,000 | 507,668 | ||||||
5.85% 1/15/36 | 660,000 | 535,244 | ||||||
6.375% 6/15/37 | 115,000 | 99,360 | ||||||
10,550,058 | ||||||||
Natural Gas – 0.40% | ||||||||
AmeriGas Partners | ||||||||
7.125% 5/20/16 | 161,000 | 152,145 | ||||||
Dynergy Holdings | ||||||||
7.75% 6/1/19 | 344,000 | 225,320 | ||||||
El Paso | ||||||||
6.875% 6/15/14 | 101,000 | 90,468 | ||||||
7.00% 6/15/17 | 120,000 | 102,802 | ||||||
7.25% 6/1/18 | 18,000 | 15,390 | ||||||
8.25% 2/15/16 | 29,000 | 27,260 | ||||||
# | El Paso Performance-Linked | |||||||
Trust 144A | ||||||||
7.75% 7/15/11 | 134,000 | 129,118 | ||||||
Enterprise Products Operating | ||||||||
5.00% 3/1/15 | 160,000 | 137,253 | ||||||
6.30% 9/15/17 | 185,000 | 170,790 | ||||||
6.50% 1/31/19 | 386,000 | 355,298 | ||||||
6.875% 3/1/33 | 700,000 | 578,571 | ||||||
9.75% 1/31/14 | 180,000 | 197,976 | ||||||
Inergy Finance | ||||||||
6.875% 12/15/14 | 110,000 | 102,300 | ||||||
8.25% 3/1/16 | 126,000 | 120,330 |
48
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Corporate Bonds (continued) | |||||||
Natural Gas (continued) | |||||||
# | Inergy Finance 144A | ||||||
8.75% 3/1/15 | USD | 78,000 | $ | 75,660 | |||
Regency Energy Partners | |||||||
8.375% 12/15/13 | 108,000 | 92,340 | |||||
2,573,021 | |||||||
Real Estate – 0.06% | |||||||
Regency Centers | |||||||
5.875% 6/15/17 | 285,000 | 191,522 | |||||
·# | USB Realty 144A | ||||||
6.091% 12/22/49 | 500,000 | 190,111 | |||||
381,633 | |||||||
Technology – 0.58% | |||||||
Amkor Technology | |||||||
7.75% 5/15/13 | 117,000 | 94,624 | |||||
Avago Technologies Finance | |||||||
10.125% 12/1/13 | 90,000 | 80,550 | |||||
Broadridge Financial Solutions | |||||||
6.125% 6/1/17 | 198,000 | 166,753 | |||||
Cisco Systems | |||||||
5.90% 2/15/39 | 1,030,000 | 949,542 | |||||
International Business | |||||||
Machines | |||||||
@4.00% 11/11/11 | EUR | 400,000 | 542,847 | ||||
6.50% 10/15/13 | USD | 445,000 | 492,741 | ||||
Oracle 6.50% 4/15/38 | 915,000 | 915,564 | |||||
Sungard Data Systems | |||||||
9.125% 8/15/13 | 190,000 | 166,250 | |||||
10.25% 8/15/15 | 424,000 | 298,920 | |||||
3,707,791 | |||||||
Transportation – 0.09% | |||||||
# | Ashtead Capital 144A | ||||||
9.00% 8/15/16 | 200,000 | 115,000 | |||||
# | Erac USA Finance 144A | ||||||
6.375% 10/15/17 | 135,000 | 87,053 | |||||
Hertz | |||||||
8.875% 1/1/14 | 211,000 | 128,974 | |||||
*10.50% 1/1/16 | 122,000 | 53,680 | |||||
Kansas City Southern | |||||||
de Mexico | |||||||
9.375% 5/1/12 | 195,000 | 178,425 | |||||
@ | Northwest Airlines | ||||||
10.00% 2/1/10 | 65,000 | 325 | |||||
563,457 | |||||||
Total Corporate Bonds | |||||||
(cost $171,267,022) | 149,273,244 | ||||||
Foreign Agencies – 0.51%D | |||||||
France – 0.08% | |||||||
# | Electricite de France 144A | ||||||
6.95% 1/26/39 | 350,000 | 347,990 | |||||
France Telecom | |||||||
7.75% 3/1/11 | 164,000 | 175,721 | |||||
523,711 | |||||||
Germany – 0.31% | |||||||
KFW | |||||||
1.875% 3/15/11 | 720,000 | 723,600 | |||||
3.50% 7/4/21 | EUR | 975,000 | 1,227,623 | ||||
1,951,223 | |||||||
Qatar – 0.06% | |||||||
# | Ras Laffan Liquefied | ||||||
Natural Gas III 144A | |||||||
5.832% 9/30/16 | USD | 400,000 | 378,108 | ||||
378,108 | |||||||
Republic of Korea – 0.06% | |||||||
Korea Development Bank | |||||||
5.30% 1/17/13 | 420,000 | 390,246 | |||||
390,246 | |||||||
Total Foreign Agencies | |||||||
(cost $3,255,465) | 3,243,288 | ||||||
Municipal Bonds – 1.24% | |||||||
Aruba Airport Authority | |||||||
Series 1997 A | |||||||
7.70% 1/1/13 (MBIA) | 147,000 | 145,773 | |||||
Escondido, California Joint | |||||||
Powers Financing | |||||||
Authority Series B | |||||||
5.53% 9/1/18 | |||||||
(MBIA) (FGIC) | 1,940,000 | 1,863,039 | |||||
Escondido, California | |||||||
Revenue (Wastewater | |||||||
Capital Projects) | |||||||
Certificates of | |||||||
Participation Series B | |||||||
5.75% 9/1/25 (MBIA) | 465,000 | 394,692 | |||||
La Quinta, California | |||||||
Redevelopment | |||||||
Agency Tax Allocation | |||||||
Project #1 | |||||||
5.45% 9/1/13 (AMBAC) | 560,000 | 565,415 | |||||
6.24% 9/1/23 (AMBAC) | 640,000 | 597,338 | |||||
Los Angeles, California | |||||||
Community | |||||||
Redevelopment | |||||||
Agency Series D | |||||||
5.60% 7/1/18 (MBIA) | 80,000 | 74,991 | |||||
6.02% 9/1/21 (MBIA) | 950,000 | 848,179 | |||||
New Jersey Economic | |||||||
Development Authority | |||||||
Revenue (Cigarette Tax) | |||||||
5.75% 6/15/29 | 100,000 | 76,159 | |||||
North Texas Tollway | |||||||
Authority Refunding | |||||||
Series A | |||||||
5.50% 1/1/18 | 250,000 | 262,183 | |||||
6.00% 1/1/20 | 500,000 | 535,405 |
(continues) 49
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Municipal Bonds (continued) | |||||||
Oregon State | |||||||
Taxable Pension | |||||||
5.892% 6/1/27 | USD | 65,000 | $ | 62,603 | |||
Sacramento County, | |||||||
California Public Finance | |||||||
Authority Revenue | |||||||
(Housing Tax County | |||||||
Project) Series B | |||||||
5.18% 12/1/13 | |||||||
(MBIA) (FGIC) | 105,000 | 102,975 | |||||
San Diego, California | |||||||
Redevelopment Agency | |||||||
Tax Allocation Series C | |||||||
5.81% 9/1/19 (XLCA) | 645,000 | 575,250 | |||||
Texas Transportation | |||||||
Community Mobility | |||||||
5.00% 4/1/19 | 495,000 | 554,252 | |||||
Triborough, New York | |||||||
Bridge & Tunnel | |||||||
Authority Series A | |||||||
5.00% 11/15/18 | 545,000 | 608,209 | |||||
5.00% 11/15/19 | 270,000 | 295,291 | |||||
West Virginia Economic | |||||||
Development Authority | |||||||
5.37% 7/1/20 (MBIA) | 30,000 | 27,699 | |||||
@ | West Virginia Tobacco | ||||||
Settlement Finance | |||||||
Authority Series A | |||||||
7.467% 6/1/47 | 625,000 | 325,125 | |||||
Total Municipal Bonds | |||||||
(cost $8,607,823) | 7,914,578 | ||||||
Non-Agency Asset-Backed Securities – 2.58% | |||||||
· | Bank of America Credit | ||||||
Card Trust | |||||||
Series 2008-A5 A5 | |||||||
1.756% 12/16/13 | 1,245,000 | 1,170,557 | |||||
Series 2008-A7 A7 | |||||||
1.256% 12/15/14 | 390,000 | 348,771 | |||||
# | Cabela’s Master Credit | ||||||
Card Trust Series | |||||||
2008-1A A1 144A | |||||||
4.31% 12/16/13 | 715,000 | 663,622 | |||||
Capital Auto Receivables | |||||||
Asset Trust | |||||||
Series 2007-3 A3A | |||||||
5.02% 9/15/11 | 721,005 | 722,120 | |||||
Series 2008-1 A3A | |||||||
3.86% 8/15/12 | 630,000 | 604,803 | |||||
Capital One Multi-Asset | |||||||
Execution Trust | |||||||
Series 2007-A7 A7 | |||||||
5.75% 7/15/20 | 550,000 | 482,899 | |||||
Caterpillar Financial | |||||||
Asset Trust | |||||||
Series 2007-A A3A | |||||||
5.34% 6/25/12 | 170,469 | 171,150 | |||||
Series 2008-A A3 | |||||||
4.94% 4/25/14 | 650,000 | 626,491 | |||||
Centex Home Equity | |||||||
Series 2002-A AF6 | |||||||
5.54% 1/25/32 | 38,530 | 33,669 | |||||
Chase Issuance Trust | |||||||
Series 2005-A7 A7 | |||||||
4.55% 3/15/13 | 405,000 | 407,295 | |||||
·Series 2005-A8 A8 | |||||||
0.596% 10/15/12 | 600,000 | 577,139 | |||||
Series 2005-A10 A10 | |||||||
4.65% 12/17/12 | 410,000 | 411,265 | |||||
@ | Citicorp Residential | ||||||
Mortgage Securities | |||||||
Series 2006-3 A4 | |||||||
5.703% 11/25/36 | 900,000 | 588,769 | |||||
Series 2006-3 A5 | |||||||
5.948% 11/25/36 | 900,000 | 472,129 | |||||
CNH Equipment Trust | |||||||
·Series 2007-C A2 | |||||||
1.406% 9/15/10 | 54,304 | 54,316 | |||||
Series 2008-A A4A | |||||||
4.93% 8/15/14 | 390,000 | 386,499 | |||||
Series 2008-A3 | |||||||
4.12% 5/15/12 | 240,000 | 241,592 | |||||
Series 2008-B A3A | |||||||
4.78% 7/16/12 | 425,000 | 428,557 | |||||
· | Countrywide Asset-Backed | ||||||
Certificates | |||||||
@Series 2006-11 1AF3 | |||||||
6.05% 9/25/46 | 295,000 | 112,369 | |||||
Series 2006-11 1AF6 | |||||||
6.15% 9/25/46 | 1,450,000 | 675,465 | |||||
Series 2006-15 A6 | |||||||
5.826% 10/25/46 | 525,000 | 236,532 | |||||
@# | 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 | 516,027 | |||||
Discover Card Master Trust | |||||||
Series 2007-A1 A1 | |||||||
5.65% 3/16/20 | 450,000 | 391,034 | |||||
Series 2008-A4 A4 | |||||||
5.65% 12/15/15 | 620,000 | 588,023 | |||||
@# | Dunkin Securitization | ||||||
Series 2006-1 A2 144A | |||||||
5.779% 6/20/31 | 665,000 | 484,211 |
50
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Asset-Backed Securities (continued) | |||||||
Ford Credit Auto Owner | |||||||
Trust Series 2007-B A3A | |||||||
5.15% 11/15/11 | USD | 440,000 | $ | 434,172 | |||
·# | Golden Credit Card Trust | ||||||
Series 2008-3 A 144A | |||||||
1.556% 7/15/17 | 550,000 | 508,090 | |||||
Harley-Davidson Motorcycle Trust | |||||||
#Series 2006-1 A2 144A | |||||||
5.04% 10/15/12 | 228,501 | 224,794 | |||||
Series 2007-2 A3 | |||||||
5.10% 5/15/12 | 157,439 | 156,121 | |||||
HSI Asset Securitization Trust | |||||||
Series 2006-HE1 2A1 | |||||||
0.572% 10/25/36 | 579,135 | 360,483 | |||||
Hyundai Auto | |||||||
Receivables Trust | |||||||
Series 2007-A A3A | |||||||
5.04% 1/17/12 | 173,081 | 175,918 | |||||
Series 2008-A A3 | |||||||
4.93% 12/17/12 | 430,000 | 434,859 | |||||
John Deere Owner Trust | |||||||
Series 2008-A A3 | |||||||
4.18% 6/15/12 | 485,000 | 473,597 | |||||
· | MBNA Credit Card Master | ||||||
Note Trust | |||||||
Series 2005-A4 A4 | |||||||
0.596% 11/15/12 | 375,000 | 361,295 | |||||
Series 2006-A3 A3 | |||||||
0.576% 8/15/12 | 250,000 | 243,032 | |||||
@ | Mid-State Trust | ||||||
Series 2004-1 A | |||||||
6.005% 8/15/37 | 40,348 | 28,563 | |||||
Series 2005-1 A | |||||||
5.745% 1/15/40 | 203,146 | 113,814 | |||||
#Series 2006-1 A 144A | |||||||
5.787% 10/15/40 | 129,544 | 92,506 | |||||
RSB Bondco Series 2007-A A2 | |||||||
5.72% 4/1/18 | 405,000 | 437,179 | |||||
# | 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 | |||||||
0.606% 8/15/11 | 62,553 | 61,771 | |||||
@∏ | Structured Asset Securities | ||||||
Series 2001-SB1 A2 | |||||||
3.375% 8/25/31 | 95,804 | 78,769 | |||||
USAA Auto Owner Trust | |||||||
Series 2007-2 A3 | |||||||
4.90% 2/15/12 | 326,236 | 329,758 | |||||
· | Vanderbilt Mortgage | ||||||
Finance Series 2001-A A4 | |||||||
7.235% 6/7/28 | 113,760 | 108,214 | |||||
World Omni Auto | |||||||
Receivables Trust | |||||||
Series 2008-A A3A | |||||||
3.94% 10/15/12 | 400,000 | 396,443 | |||||
Total Non-Agency Asset-Backed | |||||||
Securities (cost $19,425,233) | 16,414,715 | ||||||
Non-Agency Collateralized Mortgage Obligations – 21.96% | |||||||
· | ARM Trust | ||||||
Series 2004-5 3A1 | |||||||
4.952% 4/25/35 | 5,863,659 | 4,547,604 | |||||
Series 2005-10 3A11 | |||||||
5.413% 1/25/36 | 630,908 | 471,402 | |||||
Series 2005-10 3A31 | |||||||
5.413% 1/25/36 | 1,145,000 | 523,099 | |||||
Series 2006-2 1A4 | |||||||
5.747% 5/25/36 | 1,440,000 | 615,536 | |||||
#Series 2007-3 2A1 144A | |||||||
6.868% 11/25/37 | 7,015,298 | 3,613,061 | |||||
Bank of America Alternative | |||||||
Loan Trust | |||||||
Series 2003-2 B1 | |||||||
5.75% 4/25/33 | 8,481,942 | 4,862,776 | |||||
Series 2003-10 2A1 | |||||||
6.00% 12/25/33 | 15,616 | 14,435 | |||||
Series 2004-2 1A1 | |||||||
6.00% 3/25/34 | 53,957 | 45,560 | |||||
Series 2004-10 1CB1 | |||||||
6.00% 11/25/34 | 198,373 | 177,420 | |||||
Series 2004-11 1CB1 | |||||||
6.00% 12/25/34 | 1,768 | 1,316 | |||||
@Series 2005-3 2A1 | |||||||
5.50% 4/25/20 | 121,077 | 95,953 | |||||
@Series 2005-5 2CB1 | |||||||
6.00% 6/25/35 | 284,521 | 154,886 | |||||
@Series 2005-6 7A1 | |||||||
5.50% 7/25/20 | 386,213 | 344,695 | |||||
@Series 2005-9 5A1 | |||||||
5.50% 10/25/20 | 330,328 | 261,785 | |||||
Bank of America | |||||||
Funding Securities | |||||||
Series 2005-8 1A1 | |||||||
5.50% 1/25/36 | 959,415 | 755,840 | |||||
Series 2006-5 2A10 | |||||||
5.75% 9/25/36 | 1,150,000 | 938,509 | |||||
· | Bear Stearns ARM Trust | ||||||
Series 2007-3 1A1 | |||||||
5.473% 5/25/47 | 1,275,661 | 653,472 | |||||
Series 2007-4 22A1 | |||||||
5.993% 6/25/47 | 2,862,240 | 1,477,947 | |||||
Series 2007-5 3A1 | |||||||
5.98% 8/25/47 | 2,765,145 | 1,478,687 |
(continues) 51
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Collateralized Mortgage Obligations (continued) | |||||||
Chase Mortgage Finance | |||||||
Series 2003-S8 A2 | |||||||
5.00% 9/25/18 | USD | 309,898 | $ | 308,929 | |||
·Series 2005-A1 3A1 | |||||||
5.285% 12/25/35 | 729,630 | 470,286 | |||||
Citicorp Mortgage Securities | |||||||
Series 2004-1 1A1 | |||||||
5.25% 1/25/34 | 1,006,921 | 927,803 | |||||
Series 2004-8 1A1 | |||||||
5.50% 10/25/34 | 548,234 | 523,165 | |||||
Series 2006-4 3A1 | |||||||
5.50% 8/25/21 | 563,815 | 497,567 | |||||
Citigroup Mortgage | |||||||
Loan Trust | |||||||
Series 2004-NCM2 1CB2 | |||||||
6.75% 8/25/34 | 191,989 | 165,831 | |||||
·Series 2004-UST1 A6 | |||||||
5.082% 8/25/34 | 1,013,326 | 837,792 | |||||
·Series 2006-AR7 1A4A | |||||||
5.775% 11/25/36 | 2,822,100 | 1,500,991 | |||||
Countrywide Alternative | |||||||
Loan Trust | |||||||
Series 2003-21T1 A2 | |||||||
5.25% 12/25/33 | 603,955 | 497,827 | |||||
Series 2004-1T1 A2 | |||||||
5.50% 2/25/34 | 502,887 | 431,467 | |||||
Series 2004-14T2 A6 | |||||||
5.50% 8/25/34 | 537,811 | 474,686 | |||||
Series 2004-J1 1A1 | |||||||
6.00% 2/25/34 | 14,558 | 13,457 | |||||
Series 2004-J2 7A1 | |||||||
6.00% 12/25/33 | 30,546 | 25,792 | |||||
@∏·Series 2005-63 3A1 | |||||||
5.886% 11/25/35 | 452,539 | 231,349 | |||||
Series 2006-30T1 1A2 | |||||||
6.25% 11/25/36 | 8,799,528 | 4,427,262 | |||||
Series 2007-5CB 1A2 | |||||||
6.00% 4/25/37 | 10,000,000 | 5,230,061 | |||||
Series 2007-9T1 2A2 | |||||||
6.00% 5/25/37 | 9,074,950 | 4,402,106 | |||||
Series 2007-AL1 A1 | |||||||
0.772% 6/25/37 | 10,162,515 | 3,469,063 | |||||
w | Countrywide Home Loan | ||||||
Mortgage Pass | |||||||
Through Trust | |||||||
·Series 2003-21 A1 | |||||||
4.77% 5/25/33 | 7,705 | 5,963 | |||||
@·Series 2004-HYB4 M | |||||||
4.587% 9/20/34 | 206,967 | 124,621 | |||||
Series 2005-29 A1 | |||||||
5.75% 12/25/35 | 1,565,457 | 993,086 | |||||
·Series 2005-HYB8 4A1 | |||||||
5.55% 12/20/35 | 14,887 | 8,081 | |||||
Series 2006-1 A2 | |||||||
6.00% 3/25/36 | 349,367 | 225,123 | |||||
@Series 2006-1 A3 | |||||||
6.00% 3/25/36 | 119,985 | 65,317 | |||||
@Series 2006-17 A5 | |||||||
6.00% 12/25/36 | 236,010 | 211,134 | |||||
@·Series 2006-HYB1 3A1 | |||||||
5.234% 3/20/36 | 463,094 | 227,057 | |||||
@∏·Series 2006-HYB3 3A1A | |||||||
6.051% 5/20/36 | 451,433 | 249,575 | |||||
Series 2007-4 1A1 | |||||||
6.00% 5/25/37 | 5,973,720 | 3,371,418 | |||||
·Series 2007-HY1 1A1 | |||||||
5.677% 4/25/37 | 1,753,840 | 857,965 | |||||
Credit Suisse First Boston | |||||||
Mortgage Securities | |||||||
Series 2003-29 5A1 | |||||||
7.00% 12/25/33 | 9,397 | 8,587 | |||||
Series 2004-1 3A1 | |||||||
7.00% 2/25/34 | 4,734 | 4,325 | |||||
Credit Suisse Mortgage | |||||||
Capital Certificates | |||||||
#Series 2005-1R 2A5 144A | |||||||
5.75% 12/26/35 | 7,096,083 | 3,689,963 | |||||
Series 2006-9 3A1 | |||||||
6.00% 11/25/36 | 42,399 | 20,961 | |||||
Series 2007-1 5A14 | |||||||
6.00% 2/25/37 | 1,491,800 | 1,017,392 | |||||
·Series 2007-3 4A6 | |||||||
0.724% 4/25/37 | 5,124,647 | 2,583,451 | |||||
·Series 2007-3 4A12 | |||||||
6.276% 4/25/37 | 5,124,647 | 314,402 | |||||
Series 2007-3 4A15 | |||||||
5.50% 4/25/37 | 1,413,826 | 936,236 | |||||
Series 2007-5 1A11 | |||||||
7.00% 8/25/37 | 6,938,045 | 3,191,501 | |||||
Series 2007-5 3A19 | |||||||
6.00% 8/25/37 | 1,848,249 | 1,375,791 | |||||
Series 2007-5 10A2 | |||||||
6.00% 4/25/29 | 881,447 | 612,055 | |||||
·# | Deutsche Mortgage | ||||||
Securities Series | |||||||
2005-WF1 1A3 144A | |||||||
5.103% 6/26/35 | 1,720,000 | 925,848 | |||||
· | First Horizon Asset Securities | ||||||
Series 2004-AR5 4A1 | |||||||
5.708% 10/25/34 | 55,662 | 38,423 | |||||
Series 2005-AR2 2A1 | |||||||
5.13% 6/25/35 | 650,626 | 428,867 | |||||
Series 2007-AR1 1A1 | |||||||
5.827% 5/25/37 | 1,744,150 | 924,741 | |||||
Series 2007-AR3 2A2 | |||||||
6.298% 11/25/37 | 1,403,577 | 763,648 |
52
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Collateralized Mortgage Obligations (continued) | |||||||
GMAC Mortgage | |||||||
Loan Trust | |||||||
·Series 2005-AR2 4A | |||||||
5.173% 5/25/35 | USD | 522,088 | $ | 333,853 | |||
Series 2006-J1 A1 | |||||||
5.75% 4/25/36 | 1,498,425 | 1,025,825 | |||||
# | GSMPS Mortgage Loan | ||||||
Trust 144A | |||||||
·Series 1998-3 A | |||||||
7.75% 9/19/27 | 22,355 | 22,340 | |||||
·Series 1999-3 A | |||||||
8.00% 8/19/29 | 33,998 | 38,563 | |||||
Series 2005-RP1 1A3 | |||||||
8.00% 1/25/35 | 318,775 | 295,119 | |||||
Series 2005-RP1 1A4 | |||||||
8.50% 1/25/35 | 139,322 | 131,562 | |||||
Series 2006-RP1 1A2 | |||||||
7.50% 1/25/36 | 347,660 | 290,228 | |||||
GSR Mortgage Loan Trust | |||||||
@Series 2006-1F 5A2 | |||||||
6.00% 2/25/36 | 176,147 | 87,083 | |||||
·Series 2006-AR1 3A1 | |||||||
5.363% 1/25/36 | 315,977 | 191,833 | |||||
·Series 2007-AR1 2A1 | |||||||
5.993% 3/25/47 | 3,334,540 | 1,682,589 | |||||
·Series 2007-AR2 1A1 | |||||||
5.77% 5/25/47 | 1,047,368 | 519,652 | |||||
·Series 2007-AR2 2A1 | |||||||
5.497% 5/25/47 | 978,572 | 526,247 | |||||
· | Indymac Index Mortgage | ||||||
Loan Trust | |||||||
Series 2006-AR1 A1 | |||||||
5.908% 8/25/36 | 1,010,914 | 639,599 | |||||
Series 2006-AR3 1A1 | |||||||
5.284% 12/25/36 | 2,061,072 | 1,099,683 | |||||
Series 2007-AR1 1A2 | |||||||
5.69% 3/25/37 | 2,142,093 | 1,254,794 | |||||
· | JPMorgan Mortgage Trust | ||||||
Series 2005-A1 4A1 | |||||||
4.777% 2/25/35 | 121,210 | 100,272 | |||||
Series 2005-A4 1A1 | |||||||
5.395% 7/25/35 | 330,989 | 242,866 | |||||
Series 2005-A6 1A2 | |||||||
5.14% 9/25/35 | 720,000 | 436,482 | |||||
Series 2006-A2 2A4 | |||||||
5.754% 4/25/36 | 2,025,000 | 988,660 | |||||
Series 2006-A6 2A4L | |||||||
5.555% 10/25/36 | 1,590,000 | 786,302 | |||||
Series 2006-A7 2A2 | |||||||
5.793% 1/25/37 | 1,015,681 | 576,436 | |||||
Series 2007-A1 6A1 | |||||||
4.778% 7/25/35 | 2,376,017 | 1,664,327 | |||||
Lehman Mortgage Trust | |||||||
@Series 2005-2 2A3 | |||||||
5.50% 12/25/35 | 285,447 | 223,738 | |||||
@Series 2006-1 3A3 | |||||||
5.50% 2/25/36 | 27,254 | 19,032 | |||||
Series 2007-10 2A2 | |||||||
6.50% 1/25/38 | 7,435,977 | 4,856,622 | |||||
MASTR Alternative Loans Trust | |||||||
Series 2003-6 3A1 | |||||||
8.00% 9/25/33 | 12,749 | 12,657 | |||||
Series 2003-9 1A1 | |||||||
5.50% 12/25/18 | 12,604 | 12,257 | |||||
Series 2004-3 8A1 | |||||||
7.00% 4/25/34 | 9,558 | 7,778 | |||||
Series 2004-5 6A1 | |||||||
7.00% 6/25/34 | 134,857 | 116,484 | |||||
· | MASTR ARM Trust | ||||||
Series 2003-6 1A2 | |||||||
5.71% 12/25/33 | 6,511 | 5,416 | |||||
Series 2005-6 7A1 | |||||||
5.336% 6/25/35 | 211,644 | 125,318 | |||||
Series 2006-2 4A1 | |||||||
4.983% 2/25/36 | 74,990 | 52,206 | |||||
MASTR Asset Securitization Trust | |||||||
Series 2003-9 2A7 | |||||||
5.50% 10/25/33 | 476,382 | 422,938 | |||||
Series 2004-4 2A1 | |||||||
5.00% 4/25/34 | 765,189 | 698,510 | |||||
# | MASTR Reperforming Loan | ||||||
Trust 144A | |||||||
Series 2005-1 1A5 | |||||||
8.00% 8/25/34 | 135,703 | 142,107 | |||||
Series 2005-2 1A4 | |||||||
8.00% 5/25/35 | 425,171 | 485,452 | |||||
@·# | MASTR Specialized Loan Trust | ||||||
Series 2005-2 A2 144A | |||||||
5.006% 7/25/35 | 203,474 | 130,223 | |||||
· | Merrill Lynch Mortgage | ||||||
Investors Trust | |||||||
Series 2005-A5 A2 | |||||||
4.566% 6/25/35 | 460,000 | 255,347 | |||||
Series 2005-A9 2A1C | |||||||
5.148% 12/25/35 | 2,435,000 | 1,136,602 | |||||
· | Morgan Stanley Mortgage | ||||||
Loan Trust Series | |||||||
2007-15AR 4A1 | |||||||
6.586% 11/25/37 | 7,250,466 | 3,656,533 | |||||
Prime Mortgage Trust | |||||||
Series 2004-CL1 1A1 | |||||||
6.00% 2/25/34 | 33,442 | 29,910 |
(continues) 53
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Collateralized Mortgage Obligations (continued) | |||||||
Residential Accredit Loans | |||||||
Series 2004-QS2 CB | |||||||
5.75% 2/25/34 | USD | 106,412 | $ | 87,723 | |||
Series 2006-QS18 3A1 | |||||||
5.75% 12/25/21 | 1,770,777 | 1,509,250 | |||||
Residential Asset | |||||||
Mortgage Products | |||||||
Series 2004-SL1 A3 | |||||||
7.00% 11/25/31 | 3,283 | 3,315 | |||||
Series 2004-SL4 A3 | |||||||
6.50% 7/25/32 | 66,189 | 59,777 | |||||
Residential Asset | |||||||
Securitization Trust | |||||||
Series 2006-A2 A11 | |||||||
6.00% 1/25/46 | 8,000,000 | 3,200,000 | |||||
Residential Funding | |||||||
Mortgage Securities I | |||||||
Series 2004-S9 2A1 | |||||||
4.75% 12/25/19 | 1,963,881 | 1,810,207 | |||||
·Series 2006-SA3 3A1 | |||||||
6.04% 9/25/36 | 471,959 | 256,429 | |||||
·Series 2007-SA1 2A2 | |||||||
5.603% 2/25/37 | 1,822,537 | 928,481 | |||||
· | Sequoia Mortgage Trust | ||||||
Series 2007-1 4A1 | |||||||
5.783% 9/20/46 | 3,066,937 | 1,599,770 | |||||
· | Structured ARM Loan Trust | ||||||
Series 2004-18 5A | |||||||
5.50% 12/25/34 | 155,657 | 128,070 | |||||
Series 2005-21 6A3 | |||||||
5.40% 11/25/35 | 1,065,000 | 406,473 | |||||
Series 2005-22 1A4 | |||||||
5.25% 12/25/35 | 2,120,000 | 543,680 | |||||
Series 2006-1 7A4 | |||||||
5.62% 2/25/36 | 1,305,000 | 552,182 | |||||
@Series 2006-5 5A4 | |||||||
5.516% 6/25/36 | 20,192 | 5,794 | |||||
Structured Asset Securities | |||||||
·Series 2002-22H 1A | |||||||
6.937% 11/25/32 | 12,343 | 11,465 | |||||
Series 2004-12H 1A | |||||||
6.00% 5/25/34 | 108,489 | 75,783 | |||||
Series 2005-6 4A1 | |||||||
5.00% 5/25/35 | 487,005 | 331,925 | |||||
w | Washington Mutual | ||||||
Alternative Mortgage | |||||||
Pass Through Certificates | |||||||
@Series 2005-1 5A2 | |||||||
6.00% 3/25/35 | 101,023 | 65,097 | |||||
@Series 2005-9 3CB | |||||||
5.50% 10/25/20 | 415,011 | 287,395 | |||||
w | Washington Mutual Mortgage | ||||||
Pass Through Certificates | |||||||
Series 2004-CB3 1A | |||||||
6.00% 10/25/34 | 187,471 | 173,294 | |||||
Series 2004-CB3 4A | |||||||
6.00% 10/25/19 | 83,483 | 74,848 | |||||
·Series 2005-AR16 1A3 | |||||||
5.099% 12/25/35 | 1,225,000 | 592,577 | |||||
·Series 2005-AR18 1A3A | |||||||
5.244% 1/25/36 | 2,200,000 | 1,153,330 | |||||
·Series 2006-AR14 1A4 | |||||||
5.609% 11/25/36 | 239,999 | 128,062 | |||||
·Series 2006-AR16 1A1 | |||||||
5.58% 12/25/36 | 1,643,915 | 872,419 | |||||
·Series 2006-AR18 2A2 | |||||||
5.49% 1/25/37 | 1,670,000 | 716,166 | |||||
·Series 2007-HY1 1A1 | |||||||
5.695% 2/25/37 | 1,186,571 | 621,597 | |||||
·Series 2007-HY1 3A3 | |||||||
5.875% 2/25/37 | 850,000 | 306,169 | |||||
·Series 2007-HY2 1A1 | |||||||
5.588% 12/25/36 | 3,699,233 | 1,840,019 | |||||
·Series 2007-HY2 3A1 | |||||||
5.887% 9/25/36 | 19,842 | 9,769 | |||||
·Series 2007-HY3 4A1 | |||||||
5.334% 3/25/37 | 3,643,801 | 2,008,334 | |||||
·Series 2007-HY4 1A1 | |||||||
5.485% 4/25/37 | 2,883,764 | 1,464,559 | |||||
·Series 2007-HY7 4A1 | |||||||
5.86% 7/25/37 | 2,728,482 | 1,508,151 | |||||
Wells Fargo | |||||||
Mortgage-Backed | |||||||
Securities Trust | |||||||
·Series 2004-E A2 | |||||||
4.50% 5/25/34 | 13,531 | 10,818 | |||||
·Series 2004-O A1 | |||||||
4.886% 8/25/34 | 1,831,768 | 1,560,265 | |||||
·Series 2004-T A1 | |||||||
4.817% 9/25/34 | 78,484 | 62,587 | |||||
@Series 2005-12 1A7 | |||||||
5.50% 11/25/35 | 584,789 | 431,465 | |||||
@Series 2005-17 1A2 | |||||||
5.50% 1/25/36 | 460,431 | 293,669 | |||||
Series 2005-18 1A1 | |||||||
5.50% 1/25/36 | 84,083 | 62,038 | |||||
·Series 2005-AR13 A1 | |||||||
5.31% 5/25/35 | 1,689,000 | 1,021,960 | |||||
·Series 2005-AR16 4A2 | |||||||
4.992% 10/25/35 | 2,140,000 | 1,122,827 | |||||
@·Series 2005-AR16 6A4 | |||||||
5.002% 10/25/35 | 1,065,401 | 427,899 | |||||
Series 2006-1 A3 | |||||||
5.00% 3/25/21 | 545,775 | 500,407 |
54
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Non-Agency Collateralized Mortgage Obligations (continued) | |||||||
Wells Fargo | |||||||
Mortgage-Backed | |||||||
Securities Trust | |||||||
Series 2006-2 3A1 | |||||||
5.75% 3/25/36 | USD | 459,838 | $ | 325,479 | |||
Series 2006-3 A1 | |||||||
5.50% 3/25/36 | 852,107 | 700,101 | |||||
Series 2006-3 A11 | |||||||
5.50% 3/25/36 | 1,178,000 | 844,836 | |||||
Series 2006-4 1A8 | |||||||
5.75% 4/25/36 | 34,207 | 32,146 | |||||
@Series 2006-4 2A3 | |||||||
5.75% 4/25/36 | 190,065 | 107,268 | |||||
Series 2006-6 1A3 | |||||||
5.75% 5/25/36 | 1,033,658 | 845,273 | |||||
·Series 2006-AR5 2A1 | |||||||
5.536% 4/25/36 | 240,449 | 132,680 | |||||
·Series 2006-AR6 7A1 | |||||||
5.116% 3/25/36 | 2,318,467 | 1,542,841 | |||||
·Series 2006-AR10 5A1 | |||||||
5.593% 7/25/36 | 82,347 | 42,698 | |||||
·Series 2006-AR10 5A6 | |||||||
5.593% 7/25/36 | 2,202,689 | 1,160,307 | |||||
·Series 2006-AR11 A6 | |||||||
5.51% 8/25/36 | 2,330,000 | 1,107,039 | |||||
@·Series 2006-AR11 A7 | |||||||
5.51% 8/25/36 | 91,881 | 27,599 | |||||
@·Series 2006-AR14 2A4 | |||||||
6.081% 10/25/36 | 323,314 | 96,630 | |||||
·Series 2006-AR17 A1 | |||||||
5.327% 10/25/36 | 2,515,310 | 1,390,571 | |||||
·Series 2006-AR19 A1 | |||||||
5.625% 12/25/36 | 976,504 | 640,557 | |||||
Series 2007-8 2A6 | |||||||
6.00% 7/25/37 | 190,000 | 113,475 | |||||
Series 2007-10 1A18 | |||||||
6.00% 7/25/37 | 9,993,617 | 3,987,244 | |||||
Series 2007-10 1A36 | |||||||
6.00% 7/25/37 | 5,657,127 | 3,030,207 | |||||
Series 2007-13 A7 | |||||||
6.00% 9/25/37 | 601,705 | 405,775 | |||||
Series 2007-13 A9 | |||||||
6.00% 9/25/37 | 938,831 | 370,251 | |||||
Total Non-Agency Collateralized | |||||||
Mortgage Obligations | |||||||
(cost $214,633,697) | 139,697,415 | ||||||
Regional Agency – 0.15%D | |||||||
Australia – 0.15% | |||||||
New South Wales Treasury | |||||||
6.00% 5/1/12 | AUD | 1,294,000 | 946,287 | ||||
Total Regional Agency | |||||||
(cost $1,079,667) | 946,287 | ||||||
«Senior Secured Loans – 1.72% | |||||||
Allied Barton | |||||||
6.75% 12/30/15 | USD | 299,012 | 269,111 | ||||
Anchor Glass | |||||||
6.75% 6/20/14 | 389,576 | 351,592 | |||||
Aramark 1.309% 1/26/14 | 16,726 | 14,647 | |||||
Aramark Term | |||||||
Tranche Loan B | |||||||
3.334% 1/26/14 | 263,274 | 230,547 | |||||
Bausch & Lomb | |||||||
Term Tranche Loan B | |||||||
4.709% 4/11/15 | 196,760 | 168,168 | |||||
Term Tranche Loan DD | |||||||
3.604% 4/11/15 | 49,966 | 42,705 | |||||
BE Aerospace | |||||||
5.79% 7/28/14 | 313,210 | 300,682 | |||||
Biomet Term Tranche Loan B | |||||||
4.211% 3/25/15 | 84,394 | 76,318 | |||||
Calpine 1st Lien | |||||||
4.338% 3/29/14 | 253,828 | 194,403 | |||||
Centennial Cellular Term | |||||||
Tranche Loan D | |||||||
3.512% 2/9/11 | 530,000 | 524,493 | |||||
Charter Communications | |||||||
3.211% 3/6/14 | 345,832 | 281,997 | |||||
Cricket Communications | |||||||
Term Tranche Loan B1 | |||||||
5.75% 6/16/13 | 267,937 | 253,786 | |||||
Crown Castle Term | |||||||
Tranche Loan B | |||||||
5.376% 3/6/14 | 366,460 | 327,982 | |||||
CSC Holdings | |||||||
Term Tranche Loan A1 | |||||||
1.556% 2/24/12 | 190,764 | 176,934 | |||||
Term Tranche Loan B | |||||||
2.307% 3/30/13 | 227,367 | 207,615 | |||||
Dynegy Holdings | |||||||
1.98% 4/2/13 | 190,471 | 167,457 | |||||
Dynegy Holdings Term | |||||||
Tranche Loan B | |||||||
1.98% 4/2/13 | 15,451 | 13,584 | |||||
Energy Futures Holdings | |||||||
Term Tranche Loan B2 | |||||||
4.036% 10/10/14 | 664,678 | 440,662 | |||||
Flextronics International | |||||||
Term Tranche Loan A2 | |||||||
3.685% 10/1/14 | 167,009 | 109,474 | |||||
Term Tranche Loan A3 | |||||||
3.685% 10/1/14 | 47,991 | 31,458 | |||||
Term Tranche Loan B | |||||||
3.499% 10/1/12 | 205,000 | 160,925 | |||||
Ford Motor | |||||||
3.556% 11/29/13 | 2,182,710 | 1,056,791 | |||||
General Motors Term | |||||||
Tranche Loan B | |||||||
8.00% 11/17/13 | 1,461,392 | 617,438 |
(continues) 55
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
«Senior Secured Loans (continued) | |||||||
Georgia Pacific Term | |||||||
Tranche Loan B1 | |||||||
3.285% 12/20/12 | USD | 264,343 | $ | 234,934 | |||
Graham Packaging Term | |||||||
Tranche Loan B | |||||||
3.526% 10/7/11 | 251,780 | 216,250 | |||||
Graphic Packaging | |||||||
International Term | |||||||
Tranche Loan C | |||||||
3.87% 5/16/14 | 301,659 | 265,837 | |||||
HCA Term Tranche Loan B1 | |||||||
3.709% 11/18/13 | 414,411 | 352,422 | |||||
HealthSouth Term | |||||||
Tranche Loan B | |||||||
3.038% 3/10/13 | 304,648 | 269,776 | |||||
Intelsat | |||||||
Term Tranche Loan A3 | |||||||
3.812% 7/3/12 | 100,000 | 92,250 | |||||
Term Tranche Loan BA | |||||||
3.925% 1/3/14 | 59,055 | 51,968 | |||||
Term Tranche Loan BB | |||||||
3.925% 1/3/14 | 59,037 | 51,952 | |||||
Term Tranche Loan BC | |||||||
3.925% 1/3/14 | 59,037 | 51,952 | |||||
Lender Processing Term | |||||||
Tranche Loan B | |||||||
2.979% 6/18/14 | 382,198 | 370,732 | |||||
Levi Strauss & Co. Term | |||||||
Tranche Loan B | |||||||
3.716% 3/27/14 | 100,000 | 60,000 | |||||
MacDermid Term | |||||||
Tranche Loan B | |||||||
2.409% 4/12/14 | 143,649 | 90,499 | |||||
Newpage Term | |||||||
Tranche Loan B | |||||||
4.78% 12/21/14 | 152,207 | 105,187 | |||||
Nielsen Finance Term | |||||||
Tranche Loan B | |||||||
2.533% 8/9/13 | 145,000 | 113,765 | |||||
Northwest Airlines | |||||||
2.57% 8/21/13 | 350,166 | 315,500 | |||||
Nuveen Investment Term | |||||||
Tranche Loan B | |||||||
3.282% 11/13/14 | 415,743 | 228,806 | |||||
Sungard 6.75% 2/28/14 | 323,725 | 307,539 | |||||
SUPERVALU 1.77% 6/2/12 | 149,614 | 133,447 | |||||
Talecris Biotherapeutics | |||||||
2nd Lien | |||||||
7.74% 12/6/14 | 625,000 | 553,125 | |||||
Toys R US 4.80% 7/19/12 | 575,000 | 329,763 | |||||
Univision Communications | |||||||
2.73% 9/29/16 | 680,000 | 346,423 | |||||
US Oncology Term | |||||||
Tranche Loan B2 | |||||||
5.756% 8/20/11 | 390,000 | 366,600 | |||||
Total Senior Secured Loans | |||||||
(cost $11,029,857) | 10,927,496 | ||||||
Sovereign Agencies – 0.09%D | |||||||
Norway – 0.09% | |||||||
Kommunalbanken | |||||||
4.25% 10/24/11 | NOK | 950,000 | 146,462 | ||||
8.00% 10/19/10 | NZD | 710,000 | 429,310 | ||||
Total Sovereign Agencies | |||||||
(cost $680,262) | 575,772 | ||||||
Sovereign Debt – 1.62%D | |||||||
Brazil – 0.06% | |||||||
* | Federal Republic of Brazil | ||||||
5.875% 1/15/19 | USD | 146,000 | 142,715 | ||||
11.00% 8/17/40 | USD | 187,000 | 238,425 | ||||
381,140 | |||||||
Canada – 0.15% | |||||||
Canadian Government | |||||||
4.25% 6/1/18 | CAD | 1,075,000 | 965,270 | ||||
965,270 | |||||||
Colombia – 0.12% | |||||||
Republic of Colombia | |||||||
7.375% 3/18/19 | USD | 725,000 | 726,813 | ||||
726,813 | |||||||
Germany – 0.06% | |||||||
Bundesobligation | |||||||
3.50% 4/12/13 | EUR | 289,200 | 405,932 | ||||
405,932 | |||||||
Israel – 0.22% | |||||||
Israel Government | |||||||
International Bond | |||||||
5.125% 3/26/19 | USD | 1,391,000 | 1,403,454 | ||||
1,403,454 | |||||||
Japan – 0.30% | |||||||
Japan Government | |||||||
30 yr Bond | |||||||
2.40% 3/20/37 | JPY | 58,850,000 | 637,038 | ||||
CPI Linked 10 yr Bond | |||||||
1.10% 9/10/16 | JPY | 44,220,000 | 388,700 | ||||
1.20% 6/10/17 | JPY | 27,701,400 | 239,979 | ||||
1.20% 12/10/17 | JPY | 30,120,000 | 260,024 | ||||
1.30% 9/10/17 | JPY | 43,261,000 | 378,756 | ||||
1,904,497 | |||||||
Mexico – 0.40% | |||||||
Mexican Government | |||||||
10.00% 11/20/36 | MXN | 25,088,000 | 2,079,369 | ||||
* | United Mexican States | ||||||
5.95% 3/19/19 | USD | 496,000 | 486,080 | ||||
2,565,449 | |||||||
Peru – 0.15% | |||||||
Republic of Peru | |||||||
7.125% 3/30/19 | USD | 928,000 | 941,688 | ||||
941,688 | |||||||
Republic of Korea – 0.03% | |||||||
Government of | |||||||
South Korea | |||||||
4.25% 12/7/21 | EUR | 220,000 | 215,674 | ||||
215,674 |
56
Principal | Value | ||||||
Amount° | (U.S. $) | ||||||
Sovereign Debt (continued) | |||||||
Sweden – 0.03% | |||||||
Sweden Government | |||||||
5.50% 10/8/12 | SEK | 1,190,000 | $ | 162,919 | |||
162,919 | |||||||
United Arabic Emirates – 0.10% | |||||||
# | Emirate of Abu Dhabi 144A | ||||||
5.50% 8/2/12 | USD | 600,000 | 643,770 | ||||
643,770 | |||||||
Total Sovereign Debt | |||||||
(cost $10,486,292) | 10,316,606 | ||||||
Supranational Banks – 1.47% | |||||||
European Investment Bank | |||||||
4.75% 10/15/17 | EUR | 684,000 | 978,195 | ||||
5.75% 9/15/09 | AUD | 776,000 | 545,127 | ||||
6.00% 8/14/13 | AUD | 2,764,000 | 2,011,568 | ||||
6.125% 1/23/17 | AUD | 224,000 | 162,600 | ||||
6.25% 4/15/14 | GBP | 370,000 | 602,325 | ||||
7.00% 1/18/12 | NZD | 1,836,000 | 1,106,346 | ||||
7.75% 10/26/10 | NZD | 1,520,000 | 922,659 | ||||
11.25% 2/14/13 | BRL | 1,400,000 | 607,004 | ||||
Inter-American | |||||||
Development Bank | |||||||
7.25% 5/24/12 | NZD | 2,788,000 | 1,683,181 | ||||
9.00% 8/6/10 | BRL | 296,000 | 126,941 | ||||
International Bank for | |||||||
Reconstruction & | |||||||
Development | |||||||
5.75% 6/25/10 | RUB | 11,000,000 | 293,126 | ||||
12.25% 8/4/10 | BRL | 694,000 | 307,901 | ||||
Total Supranational Banks | |||||||
(cost $10,832,047) | 9,346,973 | ||||||
U.S. Treasury Obligations – 0.37% | |||||||
U.S. Treasury Bonds | |||||||
4.50% 5/15/38 | USD | 395,000 | 461,286 | ||||
U.S. Treasury Inflation | |||||||
Index Notes | |||||||
¥1.625% 1/15/15 | 187,983 | 190,215 | |||||
¥*1.625% 1/15/18 | 831,485 | 842,138 | |||||
U.S. Treasury Notes | |||||||
1.75% 3/31/14 | 465,000 | 466,744 | |||||
1.875% 2/28/14 | 50,000 | 50,563 | |||||
*2.75% 2/15/19 | 345,000 | 346,995 | |||||
Total U.S. Treasury Obligations | |||||||
(cost $2,343,866) | 2,357,941 | ||||||
Number of | Value | ||||||
Shares | (U.S. $) | ||||||
Common Stock – 0.02% | |||||||
† | Bway Holding | 2,650 | $ | 20,909 | |||
Cablevision Systems Class A | 1,100 | 14,234 | |||||
† | Cardtronics | 11,000 | 19,470 | ||||
† | Century Communications | 1,975,000 | 0 | ||||
† | Flextronics International | 7,200 | 20,808 | ||||
† | Graphic Packaging Holding | 21,563 | 18,760 | ||||
Innophos Holdings | 2,150 | 24,252 | |||||
*† | Mirant | 121 | 1,379 | ||||
*† | NRG Energy | 1,800 | 31,680 | ||||
=∏† | Port Townsend | 295 | 3 | ||||
* | Time Warner Cable | 2 | 41 | ||||
Total Common Stock | |||||||
(cost $423,036) | 151,536 | ||||||
Convertible Preferred Stock – 0.11% | |||||||
Crown Castle International | |||||||
6.25% exercise price | |||||||
$36.88, expiration | |||||||
date 8/15/12 | 16,525 | 718,838 | |||||
Total Convertible Preferred Stock | |||||||
(cost $704,298) | 718,838 | ||||||
Preferred Stock – 0.22% | |||||||
· | JPMorgan Chase 7.90% | 1,391,000 | 895,736 | ||||
· | PNC Funding 8.25% | 875,000 | 428,648 | ||||
=@ | Port Townsend | 59 | 0 | ||||
# | Preferred Blocker 144A 7.00% | 226 | 45,009 | ||||
Total Preferred Stock | |||||||
(cost $2,248,772) | 1,369,393 | ||||||
Warrant – 0.00% | |||||||
=@∏†Port Townsend | 59 | 1 | |||||
Total Warrant | |||||||
(cost $1,416) | 1 |
(continues) 57
Statements of net assets
Optimum Fixed Income Fund
Principal | Value | ||||||||
Amount° | (U.S. $) | ||||||||
Repurchase Agreements** – 6.36% | |||||||||
BNP Paribas 0.08%, | |||||||||
dated 3/31/09, to | |||||||||
be repurchased on | |||||||||
4/1/09, repurchase | |||||||||
price $40,449,090 | |||||||||
(collateralized by | |||||||||
U.S. Government | |||||||||
obligations, | |||||||||
6/11/09-2/11/10; | |||||||||
with market value | |||||||||
$41,279,342) | USD | 40,449,000 | $ | 40,449,000 | |||||
Total Repurchase Agreements | |||||||||
(cost $40,449,000) | 40,449,000 | ||||||||
Total Value of Securities Before Securities | |||||||||
Lending Collateral – 101.69% | |||||||||
(cost $739,317,444) | 646,978,348 | ||||||||
Number of | |||||||||
Shares | |||||||||
Securities Lending Collateral*** – 4.76% | |||||||||
Investment Companies | |||||||||
Mellon GSL DBT II | |||||||||
Collateral Fund | 31,307,528 | 30,292,023 | |||||||
† | Mellon GSL DBT II | ||||||||
Liquidation Trust | 1,262,112 | 126 | |||||||
Total Securities Lending Collateral | |||||||||
(cost $32,569,640) | 30,292,149 | ||||||||
Total Value of Securities – 106.45% | |||||||||
(cost $771,887,084) | 677,270,497 | © | |||||||
Obligation to Return Securities | |||||||||
Lending Collateral*** – (5.12%) | (32,569,640 | ) | |||||||
Liabilities Net of Receivables | |||||||||
and Other Assets – (1.33%) | (8,449,124 | )x | |||||||
Net Assets Applicable to | |||||||||
82,153,181 Shares | |||||||||
Outstanding – 100.00% | $ | 636,251,733 | |||||||
Net Asset Value – Optimum Fixed Income Fund | |||||||||
Class A ($39,299,155 / 5,073,154 Shares) | $7.75 | ||||||||
Net Asset Value – Optimum Fixed Income Fund | |||||||||
Class B ($5,482,536 / 707,122 Shares) | $7.75 | ||||||||
Net Asset Value – Optimum Fixed Income Fund | |||||||||
Class C ($157,184,998 / 20,266,547 Shares) | $7.76 | ||||||||
Net Asset Value – Optimum Fixed Income Fund Institutional | |||||||||
Class ($434,285,044 / 56,106,358 Shares) | $7.74 |
Components of Net Assets at March 31, 2009: | |||
Shares of beneficial interest | |||
(unlimited authorization – no par) | $ | 758,922,349 | |
Undistributed net investment income | 7,470,433 | ||
Accumulated net realized loss on investments | (36,081,370 | ) | |
Net unrealized depreciation of investments and | |||
foreign currencies | (94,059,679 | ) | |
Total net assets | $ | 636,251,733 |
°Principal amount shown is stated in the currency in which each security is denominated.
AUD — Australian Dollar
BRL — Brazilian Real
CAD — Canadian Dollar
EUR — European Monetary Unit
GBP — British Pound Sterling
JPY — Japanese Yen
MXN — Mexican Peso
NOK — Norwegian Kroner
NZD — New Zealand Dollar
PLN — Polish Zloty
RUB — Russian Ruble
SEK — Swedish Krona
USD — United States Dollar
· | Variable rate security. The rate shown is the rate as of March 31, 2009. |
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. |
* | Fully or partially on loan. |
¥ | Fully or partially pledged as collateral for financial futures contracts. |
^ | Zero coupon security. The rate shown is the yield at the time of purchase. |
# | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At March 31, 2009, the aggregate amount of Rule 144A securities was $38,168,618, which represented 6.00% of the Fund’s net assets. See Note 12 in ”Notes to financial statements.” |
@ | Illiquid security. At March 31, 2009, the aggregate amount of illiquid securities was $13,042,384, which represented 2.05% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
= | Security is being fair valued in accordance with the Fund’s fair valuation policy. At March 31, 2009, the aggregate amount of fair valued securities was $61,550, which represented 0.01% of the Fund’s net assets. See Note 1 in ”Notes to financial statements.” |
‡ | Non-income producing security. Security is currently in default. |
D | Securities have been classified by country of origin. |
∏ | 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 March 31, 2009, the aggregate amount of restricted securities was $655,744 or 0.10% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
58
« | 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. |
† | Non income producing security. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $30,673,144 of securities loaned. |
x | Includes $570,000 cash pledged as collateral for futures contracts. |
Summary of Abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
ARM — Adjustable Rate Mortgage
CDS — Credit Default Swap
CPI — Consumer Price Index
CPN — Interest Coupon Only
FGIC — Insured by the Financial Guaranty Insurance Company
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
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) | $ | 7.75 |
Sales charge (4.50% of offering price) (B) | 0.37 | |
Offering price | $ | 8.12 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $100,000 or more. |
The following foreign currency exchange contracts and foreign cross currency exchange contracts, futures contracts, written options and swap contracts were outstanding at March 31, 2009.
Foreign Currency Exchange Contracts1 | ||||||||||||||||
Unrealized | ||||||||||||||||
Contracts to | Settlement | Appreciation | ||||||||||||||
Receive (Deliver) | In Exchange For | Date | (Depreciation) | |||||||||||||
AUD | (2,676,108 | ) | USD | 1,863,508 | 4/30/09 | $ | 7,387 | |||||||||
BRL | (2,279,846 | ) | USD | 999,932 | 5/29/09 | 16,711 | ||||||||||
CAD | 287,638 | USD | (232,899 | ) | 4/30/09 | (4,693 | ) | |||||||||
CAD | (1,839,277 | ) | USD | 1,489,927 | 5/29/09 | 30,066 | ||||||||||
EUR | (692,415 | ) | GBP | 639,355 | 4/30/09 | (2,555 | ) | |||||||||
EUR | 270,065 | USD | (366,500 | ) | 4/30/09 | (7,731 | ) | |||||||||
EUR | 8,986,434 | USD | (12,145,695 | ) | 4/30/09 | (207,623 | ) | |||||||||
EUR | (4,893,567 | ) | USD | 6,622,709 | 5/29/09 | 121,116 | ||||||||||
EUR | (2,484,074 | ) | USD | 3,365,920 | 5/29/09 | 65,579 | ||||||||||
GBP | (128,448 | ) | USD | 185,870 | 5/29/09 | 1,566 | ||||||||||
GBP | (490,227 | ) | USD | 719,653 | 5/29/09 | 16,245 | ||||||||||
GBP | (513,918 | ) | USD | 754,431 | 5/29/09 | 17,031 | ||||||||||
JPY | (168,859,275 | ) | USD | 1,718,582 | 4/30/09 | 11,778 | ||||||||||
JPY | (953,165,636 | ) | USD | 9,721,275 | 5/29/09 | 82,373 | ||||||||||
JPY | 1,007,537,362 | USD | (10,249,617 | ) | 5/29/09 | (60,881 | ) | |||||||||
MXN | (44,480,259 | ) | USD | 3,068,323 | 5/29/09 | (37,189 | ) | |||||||||
NOK | 8,397,359 | USD | (1,304,164 | ) | 4/30/09 | (56,539 | ) | |||||||||
NZD | (941,010 | ) | USD | 533,223 | 4/30/09 | (2,530 | ) | |||||||||
NZD | (6,032,760 | ) | USD | 3,402,476 | 5/29/09 | (26,307 | ) | |||||||||
PLN | (34,001 | ) | USD | 9,419 | 4/1/09 | (357 | ) | |||||||||
SEK | 3,679,988 | USD | (457,938 | ) | 5/29/09 | (10,212 | ) | |||||||||
$ | (46,765 | ) |
Futures Contracts2 | ||||||||||||||||||
Notional | Unrealized | |||||||||||||||||
Contracts | Cost | Notional | Expiration | Appreciation | ||||||||||||||
to Buy (Sell) | (Proceeds) | Value | Date | (Depreciation) | ||||||||||||||
32 Euro Bond | $ | 5,023,567 | $ | 5,289,967 | 6/10/09 | $ | 266,400 | |||||||||||
3 Japanese | ||||||||||||||||||
Treasury | ||||||||||||||||||
10 yr Notes | 4,210,714 | 4,187,420 | 6/22/09 | (23,294 | ) | |||||||||||||
10 Long | ||||||||||||||||||
Gilt Bond | 1,737,720 | 1,767,571 | 6/30/09 | 29,851 | ||||||||||||||
10,972,001 | 272,957 | |||||||||||||||||
(27) U.S. Treasury | ||||||||||||||||||
10 yr Notes | (3,258,208 | ) | (3,350,109 | ) | 6/30/09 | (91,901 | ) | |||||||||||
$ | 181,056 |
Written Options3 | ||||||||||||||||||
Number | ||||||||||||||||||
of | Notional | Exercise | Expiration | Unrealized | ||||||||||||||
Description | Contracts | Value | Price | Date | Appreciation | |||||||||||||
Written Put | ||||||||||||||||||
Options | ||||||||||||||||||
Put USD 3,670 vs. | ||||||||||||||||||
Call JPY | ||||||||||||||||||
33,354,000 | 3,510 | $ | 351,000 | $95 | 4/9/09 | $2,500 | ||||||||||||
Put USD 3,643 vs. | ||||||||||||||||||
Call JPY | ||||||||||||||||||
33,151,300 | 3,643 | 364,300 | 91 | 4/22/09 | 3,059 | |||||||||||||
$ | 715,300 | $5,559 |
(continues) 59
Statements of net assets
Optimum Fixed Income Fund
Swap Contracts4 | |||||||||||||
Credit Default Swap Contracts | |||||||||||||
Annual | Unrealized | ||||||||||||
Swap Counterparty & | Notional | Protection | Termination | Appreciation | |||||||||
Referenced Obligation | Value | Payments | Date | (Depreciation) | |||||||||
Protection Purchased: | |||||||||||||
Barclays | |||||||||||||
Hartford Financial | |||||||||||||
5 yr CDS | $ | 565,000 | 6.50% | 3/20/14 | $ | 82,757 | |||||||
Macy’s | |||||||||||||
10 yr CDS | 620,000 | 5.20% | 12/20/18 | 17,444 | |||||||||
Citigroup Global | |||||||||||||
Markets | |||||||||||||
Century Tel | |||||||||||||
5 yr CDS | 82,700 | 1.71% | 9/20/13 | (2,367 | ) | ||||||||
Hartford Financial | |||||||||||||
5 yr CDS | 845,000 | 6.65% | 3/20/14 | 119,956 | |||||||||
Macy’s | |||||||||||||
5 yr CDS | 875,000 | 7.00% | 3/20/14 | (13,717 | ) | ||||||||
JPMorgan Securities | |||||||||||||
Donnelley (R.R.) | |||||||||||||
5 yr CDS | 2,000,000 | 3.77% | 3/20/14 | 217,838 | |||||||||
$ | 4,987,700 | $ | 421,911 |
The use of foreign currency exchange contracts and foreign cross currency exchange contracts, futures contracts, written options and swap contracts involves elements of market risk and risks in excess of the amount recognized in the financial statements. The notional values presented above and on the previous page 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 9 in “Notes to financial statements.”
4See Note 10 in “Notes to financial statements.”
See accompanying notes
60
Optimum International Fund
March 31, 2009
Number of | Value | ||||||
Shares | (U.S. $) | ||||||
Common Stock – 96.58%D | |||||||
Australia – 6.96% | |||||||
± | Amcor | 180,942 | $ | 559,548 | |||
± | BHP Billiton | 16,800 | 371,247 | ||||
± | Commonwealth Bank of Australia | 8,400 | 201,626 | ||||
± | Foster’s Group | 454,694 | 1,598,856 | ||||
± | National Australia Bank | 118,263 | 1,650,635 | ||||
± | Oil Search | 111,200 | 408,502 | ||||
± | Santos | 35,100 | 413,064 | ||||
± | Telstra | 792,601 | 1,769,028 | ||||
± | Wesfarmers | 74,665 | 979,593 | ||||
± | Westpac Banking | 15,800 | 208,609 | ||||
± | Woodside Petroleum | 10,400 | 276,976 | ||||
± | WorleyParsons | 22,300 | 280,991 | ||||
8,718,675 | |||||||
Austria – 0.38% | |||||||
± | OMV | 14,400 | 481,719 | ||||
481,719 | |||||||
Belgium – 0.48% | |||||||
± | Anheuser-Busch InBev | 13,000 | 357,944 | ||||
± | Fortis (Amsterdam Exchange) | 136,095 | 248,647 | ||||
†± | Fortis Strip | 48,482 | 64 | ||||
606,655 | |||||||
Bermuda – 0.62% | |||||||
†± | Catlin Group | 67,339 | 302,211 | ||||
†± | Hiscox | 106,400 | 471,459 | ||||
773,670 | |||||||
Brazil – 1.17% | |||||||
† | BM&F Bovespa | 32,200 | 97,902 | ||||
* | Cemig ADR | 19,000 | 280,820 | ||||
* | Gerdau ADR | 60,300 | 329,841 | ||||
Petroleo Brasileiro ADR | 15,000 | 457,050 | |||||
* | Tele Norte Leste Participacoes ADR | 21,700 | 300,328 | ||||
1,465,941 | |||||||
Canada – 3.62% | |||||||
Bank of Nova Scotia | 6,400 | 157,747 | |||||
Canadian Natural Resources | 8,600 | 333,684 | |||||
† | Eldorado Gold | 72,500 | 655,667 | ||||
EnCana | 9,100 | 372,504 | |||||
Imperial Oil | 9,300 | 337,900 | |||||
Kinross Gold | 14,100 | 256,262 | |||||
Nexen | 31 | 526 | |||||
Potash Corp. of Saskatchewan | 3,100 | 250,511 | |||||
† | Research in Motion | 5,600 | 241,192 | ||||
Royal Bank of Canada | 8,520 | 248,594 | |||||
Shoppers Drug Mart | 8,900 | 305,998 | |||||
Suncor Energy | 14,600 | 325,924 | |||||
Talisman Energy | 41,200 | 436,333 | |||||
Teck Cominco Class B | 64,400 | 360,176 | |||||
Toronto-Dominion Bank | 7,400 | 255,130 | |||||
4,538,148 | |||||||
oChina – 1.58% | |||||||
*± | China Construction Bank Class H | 939,000 | 533,061 | ||||
± | China Life Insurance Class H | 57,000 | 187,477 | ||||
†±* | China Railway Construction Class H | 192,500 | 250,680 | ||||
*± | Industrial & Commercial | ||||||
Bank of China Class H | 1,096,000 | 569,626 | |||||
PetroChina ADR | 5,500 | 438,350 | |||||
1,979,194 | |||||||
Denmark – 0.22% | |||||||
*± | TrygVesta | 5,500 | 278,263 | ||||
278,263 | |||||||
Finland – 0.57% | |||||||
*± | Outokumpu | 26,100 | 282,378 | ||||
*± | UPM-Kymmene | 74,595 | 430,504 | ||||
712,882 | |||||||
France – 9.76% | |||||||
*± | AXA | 7,900 | 94,816 | ||||
± | BNP Paribas | 5,800 | 239,279 | ||||
*± | Carrefour | 57,100 | 2,227,385 | ||||
*± | Compagnie de Saint-Gobain | 39,977 | 1,120,060 | ||||
± | Compagnie Generale des | ||||||
Etablissements Michelin Class B | 6,200 | 229,791 | |||||
± | Credit Agricole | 8,500 | 93,782 | ||||
± | France Telecom | 83,400 | 1,901,211 | ||||
†± | GDF Suez | 8,820 | 12 | ||||
± | GDF Suez | 11,000 | 377,226 | ||||
*†± | Mercialys | 4,600 | 133,130 | ||||
*± | PPR | 3,600 | 230,788 | ||||
*± | Renault | 23,554 | 484,302 | ||||
± | Sanofi-Aventis | 7,998 | 448,840 | ||||
*± | Silic | 800 | 59,951 | ||||
*± | Societe Generale | 26,234 | 1,026,153 | ||||
± | Sodexo | 6,400 | 291,509 | ||||
± | Technip | 7,100 | 250,276 | ||||
*± | Total | 57,426 | 2,839,573 | ||||
± | Unibail-Rodamco | 1,300 | 183,952 | ||||
12,232,036 | |||||||
Germany – 6.80% | |||||||
± | Adidas | 11,800 | 391,619 | ||||
± | Allianz | 2,600 | 218,754 | ||||
± | Deutsche Bank | 4,000 | 163,497 | ||||
± | Deutsche Boerse | 2,900 | 174,442 | ||||
± | Deutsche Post | 27,200 | 293,435 | ||||
± | Deutsche Telekom | 184,555 | 2,290,697 | ||||
± | Fresenius Medical Care | 6,100 | 236,456 | ||||
±* | Gerry Weber International | 13,904 | 285,641 | ||||
*± | MAN | 8,800 | 381,851 | ||||
± | Muenchener Rueckversicherungs | 1,400 | 170,837 | ||||
±† | Rhoen-Klinikum | 34,900 | 663,425 | ||||
± | RWE | 32,414 | 2,282,777 | ||||
± | Salzgitter | 3,900 | 219,117 | ||||
†± | SGL Carbon | 16,900 | 408,724 | ||||
± | Siemens | 5,900 | 338,617 | ||||
8,519,889 | |||||||
Hong Kong – 3.46% | |||||||
± | China Mobile | 22,000 | 191,644 | ||||
± | China Unicom | 162,000 | 169,055 |
(continues) 61
Statements of net assets
Optimum International Fund
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock (continued) | |||||
Hong Kong (continued) | |||||
CNOOC ADR | 4,400 | $ | 442,640 | ||
± | Hong Kong Electric Holdings | 182,500 | 1,084,325 | ||
*± | Hong Kong Exchanges & Clearing | 25,100 | 236,885 | ||
± | Huabao International Holdings | 576,200 | 473,892 | ||
± | Jardine Matheson Holdings | 15,200 | 276,388 | ||
± | New World Development | 251,000 | 250,560 | ||
†± | Rexcapital Financial Holdings | 2,600,000 | 82,190 | ||
± | Sun Hung Kai Properties | 14,700 | 131,905 | ||
± | Wharf Holdings | 293,875 | 731,711 | ||
± | Wheelock | 156,000 | 262,371 | ||
4,333,566 | |||||
Israel – 0.25% | |||||
* | Teva Pharmaceutical Industries ADR | 7,000 | 315,350 | ||
315,350 | |||||
Italy – 2.50% | |||||
± | Assicurazioni Generali | 7,700 | 131,946 | ||
†± | Benetton Group | 53,800 | 350,287 | ||
± | Intesa Sanpaolo | 579,118 | 1,592,791 | ||
± | Parmalat | 100,100 | 206,075 | ||
± | UBI Banca | 20,000 | 220,215 | ||
± | UniCredit | 382,937 | 630,239 | ||
3,131,553 | |||||
Japan – 18.66% | |||||
± | Air Water | 34,900 | 309,448 | ||
± | Amada | 73,600 | 393,271 | ||
± | Astellas Pharma | 38,900 | 1,203,926 | ||
*± | Bank of Kyoto | 21,700 | 184,324 | ||
*± | Benesse | 5,800 | 213,670 | ||
± | Canon | 73,000 | 2,128,299 | ||
± | Geo | 300 | 173,986 | ||
± | Honda Motor | 12,900 | 307,125 | ||
± | Hosiden | 26,000 | 259,441 | ||
± | Japan Prime Realty Investment | 100 | 185,846 | ||
± | Kamigumi | 45,800 | 304,937 | ||
± | Kao | 90,000 | 1,756,293 | ||
± | KDDI | 273 | 1,285,725 | ||
± | Kintetsu World Express | 27,000 | 502,390 | ||
*± | Matsui Securities | 28,300 | 185,831 | ||
± | Mitsubishi Estate | 6,300 | 71,476 | ||
± | Mitsubishi Materials | 103,600 | 282,235 | ||
± | Mitsubishi UFJ Financial Group | 69,600 | 342,935 | ||
± | Mitsui Fudosan | 6,000 | 65,826 | ||
± | Mizuho Financial Group | 57,989 | 113,250 | ||
± | Nihon Nohyaku | 47,000 | 325,139 | ||
± | Nintendo | 900 | 263,305 | ||
± | Nippon Express | 71,600 | 225,665 | ||
± | Nitto Denko | 40,500 | 828,852 | ||
*± | Seino Holdings | 76,800 | 371,498 | ||
± | Sekisui House | 85,000 | 650,778 | ||
± | Seven & I Holdings | 60,200 | 1,329,173 | ||
*± | Shimano | 10,400 | 316,655 | ||
± | Shinko Securities | 104,000 | 205,314 | ||
± | Sumitomo Metal Mining | 38,000 | 365,389 | ||
*± | Sumitomo Mitsui Financial Group | 4,700 | 165,510 | ||
± | Sumitomo Trust & Banking | 24,300 | 94,094 | ||
*± | Takeda Pharmaceutical | 59,200 | 2,054,126 | ||
± | Tokio Marine Holdings | 56,500 | 1,391,678 | ||
± | Tokyo Steel Manufacturing | 25,100 | 253,010 | ||
*± | Toyo Seikan Kaisha | 19,500 | 287,867 | ||
± | Toyo Suisan Kaisha | 13,000 | 268,265 | ||
*± | Toyota Motor | 60,900 | 1,934,614 | ||
± | West Japan Railway | 224 | 710,358 | ||
± | Yamato Holdings | 31,800 | 301,622 | ||
± | Yamato Kogyo | 18,400 | 397,325 | ||
± | Zeon | 136,000 | 369,498 | ||
23,379,969 | |||||
Luxembourg – 0.77% | |||||
± | Arcelormittal | 24,600 | 501,911 | ||
± | SES | 24,200 | 461,909 | ||
963,820 | |||||
Malaysia – 0.11% | |||||
± | Bumiputra-Commerce Holdings | 72,000 | 135,434 | ||
135,434 | |||||
Mexico – 0.25% | |||||
Fomento Economico Mexicano ADR | 12,600 | 317,646 | |||
317,646 | |||||
Netherlands – 2.02% | |||||
ASML Holding | 11,100 | 194,361 | |||
*± | Corio | 2,100 | 86,848 | ||
± | Heineken | 12,300 | 349,395 | ||
± | ING Groep CVA | 73,759 | 404,142 | ||
†± | Qiagen | 20,700 | 335,965 | ||
± | Reed Elsevier | 102,175 | 1,093,316 | ||
*± | Wereldhave | 1,000 | 69,918 | ||
2,533,945 | |||||
New Zealand – 0.35% | |||||
± | Telecom Corp of New Zealand | 333,395 | 434,557 | ||
434,557 | |||||
Norway – 0.96% | |||||
*± | Norsk Hydro ASA | 102,100 | 384,144 | ||
± | StatoilHydro ASA | 17,800 | 311,475 | ||
*± | Yara International ASA | 23,200 | 506,789 | ||
1,202,408 | |||||
Philippines – 0.29% | |||||
Philippine Long Distance Telephone ADR | 8,200 | 361,866 | |||
361,866 | |||||
Republic of Korea – 1.07% | |||||
± | LG Chem | 5,700 | 363,221 | ||
± | Samsung Electronics | 2,360 | 981,586 | ||
1,344,807 | |||||
Russia – 0.11% | |||||
Vimpel-Communications ADR | 20,300 | 132,762 | |||
132,762 | |||||
Singapore – 2.29% | |||||
± | Oversea-Chinese Banking | 201,800 | 643,330 | ||
± | Singapore Airlines | 40,000 | 263,796 |
62
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock (continued) | |||||
Singapore (continued) | |||||
± | Singapore Telecommunications | 571,000 | $ | 951,781 | |
± | United Overseas Bank | 110,700 | 710,062 | ||
*± | Wilmar International | 146,000 | 305,494 | ||
2,874,463 | |||||
South Africa – 1.02% | |||||
± | Naspers | 23,400 | 395,944 | ||
± | Sasol | 21,815 | 632,371 | ||
± | Telkom | 22,100 | 246,229 | ||
1,274,544 | |||||
Spain – 4.97% | |||||
*± | Banco Bilbao Vizcaya Argentaria | 28,400 | 230,507 | ||
± | Banco Santander | 185,433 | 1,278,472 | ||
± | Iberdrola | 226,101 | 1,586,262 | ||
†± | Iberdrola Renovables | 64,000 | 265,061 | ||
± | Inditex | 8,700 | 339,017 | ||
*± | Telefonica | 126,575 | 2,523,978 | ||
6,223,297 | |||||
Sweden – 0.30% | |||||
*± | Nordea Bank | 22,700 | 112,932 | ||
*± | Volvo Class B | 50,100 | 265,804 | ||
378,736 | |||||
Switzerland – 4.29% | |||||
Addax Petroleum | 9,100 | 197,081 | |||
Alcon | 1,900 | 172,729 | |||
± | Credit Suisse Group | 8,600 | 261,807 | ||
± | Nestle | 18,300 | 618,145 | ||
± | Novartis | 64,460 | 2,438,322 | ||
± | Roche Holding | 3,800 | 521,459 | ||
*± | Sonova Holding | 5,100 | 307,757 | ||
± | UBS | 23,900 | 224,029 | ||
± | Xstrata | 61,000 | 409,334 | ||
*± | Zurich Financial Services | 1,400 | 221,222 | ||
5,371,885 | |||||
Taiwan – 3.96% | |||||
± | Asustek Computer | 270,001 | 284,499 | ||
AU Optronics ADR | 26,500 | 222,336 | |||
± | Chang Hwa Commercial Bank | 519,000 | 174,756 | ||
± | China Airlines | 1,060,500 | 264,311 | ||
Chunghwa Telecom ADR | 38,783 | 707,023 | |||
± | GeoVision | 37,000 | 144,163 | ||
± | HTC | 25,000 | 307,616 | ||
± | Polaris Securities | 867,000 | 301,839 | ||
* | Siliconware Precision Industries ADR | 85,000 | 493,001 | ||
Taiwan Semiconductor | |||||
Manufacturing ADR | 190,352 | 1,703,652 | |||
± | Yuanta Financial Holding | 785,000 | 359,216 | ||
4,962,412 | |||||
Thailand – 0.62% | |||||
± | Bangkok Bank Public | 125,000 | 262,451 | ||
± | Banpu Public | 3,100 | 18,803 | ||
± | Banpu Public Class F | 40,000 | 241,520 | ||
Siam Commercial Bank Class F | 162,700 | 249,955 | |||
772,729 | |||||
United Kingdom – 16.17% | |||||
± | Aberdeen Asset Management | 49,500 | 90,614 | ||
±† | AstraZeneca | 10,200 | 361,170 | ||
± | Aviva | 122,585 | 380,949 | ||
± | Barclays | 126,500 | 268,710 | ||
± | Barloworld | 15,400 | 191,304 | ||
†*± | Beazley Group | 152,600 | 188,195 | ||
± | Bellway | 16,500 | 160,084 | ||
± | BG Group | 106,168 | 1,601,208 | ||
± | BP | 266,696 | 1,788,936 | ||
± | British American Tobacco | 8,000 | 184,889 | ||
±* | Britvic | 73,500 | 239,248 | ||
± | Cable & Wireless | 174,700 | 349,555 | ||
†±* | Charter International | 63,700 | 416,291 | ||
± | Compass Group | 157,478 | 720,620 | ||
± | Cookson Group | 1,593,200 | 377,342 | ||
†± | Dana Petroleum | 16,300 | 260,200 | ||
†±* | De La Rue | 31,600 | 440,877 | ||
†±* | Domino’s Pizza | 107,800 | 345,502 | ||
± | GKN | 206,839 | 203,150 | ||
±† | GlaxoSmithKline | 170,782 | 2,658,194 | ||
± | Greene King | 25,200 | 176,425 | ||
± | HSBC Holdings | 74,900 | 416,675 | ||
± | ICAP | 28,700 | 125,063 | ||
± | Imperial Tobacco Group | 23,400 | 525,770 | ||
± | Inchcape | 173,700 | 188,290 | ||
± | Intercontinental Hotels Group | 25,000 | 189,828 | ||
± | Legal & General Group | 175,400 | 108,225 | ||
± | Man Group | 48,600 | 152,449 | ||
± | Next | 24,200 | 459,147 | ||
± | Persimmon | 33,000 | 163,205 | ||
†±* | Premier Oil | 18,100 | 276,208 | ||
± | Prudential | 23,800 | 115,446 | ||
± | Royal Dutch Shell Class A | 81,176 | 1,810,892 | ||
± | Royal Dutch Shell Class B | 16,400 | 356,951 | ||
± | Unilever | 126,274 | 2,387,394 | ||
± | Vodafone Group | 360,025 | 626,811 | ||
Vodafone Group ADR | 17,100 | 297,882 | |||
†± | VT Group | 46,600 | 315,336 | ||
± | Wood Group | 105,300 | 337,896 | ||
20,256,931 | |||||
Total Common Stock | |||||
(cost $159,720,458) | 121,009,752 | ||||
Preferred Stock – 0.38% | |||||
Brazil – 0.38% | |||||
† | Banco Bradesco | 17,600 | 175,488 | ||
Itau Unibanco Banco Multiplo | 12,500 | 138,005 | |||
Usinas Siderurgicas de Minas Gerais | |||||
Class A | 12,600 | 159,922 | |||
Total Preferred Stock | |||||
(cost $464,218) | 473,415 |
(continues) 63
Statements of net assets
Optimum International Fund
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
Rights – 0.05% | ||||||||
±† | Beazley Group | 72,284 | $ | 41 | ||||
∏=@ | Fortis | 181,195 | 0 | |||||
±† | HSBC Holdings | 31,208 | 63,017 | |||||
Total Rights (cost $0) | 63,058 | |||||||
Principal | ||||||||
Amount (U.S. $) | ||||||||
Repurchase Agreements** – 3.00% | ||||||||
BNP Paribas 0.08%, dated | ||||||||
3/31/09, to be repurchased | ||||||||
on 4/1/09, repurchase price | ||||||||
$3,760,008 (collateralized | ||||||||
by U.S. Government obligations, | ||||||||
6/11/09-2/11/10; with market | ||||||||
value $3,837,186) | $ | 3,760,000 | 3,760,000 | |||||
Total Repurchase Agreements | ||||||||
(cost $3,760,000) | 3,760,000 | |||||||
Total Value of Securities Before Securities | ||||||||
Lending Collateral – 100.01% | ||||||||
(cost $163,944,676) | 125,306,225 | |||||||
Number of | ||||||||
Shares | ||||||||
Securities Lending Collateral*** – 12.50% | ||||||||
Investment Companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 16,199,105 | 15,659,453 | ||||||
† | Mellon GSL DBT II | |||||||
Liquidation Trust | 653,686 | 65 | ||||||
Total Securities Lending Collateral | ||||||||
(cost $16,852,791) | 15,659,518 | |||||||
Total Value of Securities – 112.51% | ||||||||
(cost $180,797,467) | 140,965,743 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (13.45%) | (16,852,791 | ) | ||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 0.94% | 1,179,085 | x | ||||||
Net Assets Applicable to 17,895,074 | ||||||||
Shares Outstanding – 100.00% | $ | 125,292,037 | ||||||
Net Asset Value – Optimum International Fund | ||||||||
Class A ($9,578,184 / 1,366,457 Shares) | $7.01 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Class B ($1,763,412 / 256,168 Shares) | $6.88 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Class C ($34,520,285 / 5,011,580 Shares) | $6.89 | |||||||
Net Asset Value – Optimum International Fund | ||||||||
Institutional Class ($79,430,156 / 11,260,869 Shares) | $7.05 | |||||||
Components of Net Assets at March 31, 2009: | ||||||||
Shares of beneficial interest | ||||||||
(unlimited authorization – no par) | $ | 235,140,654 | ||||||
Undistributed net investment income | 1,631,936 | |||||||
Accumulated net realized loss on investments | (71,919,521 | ) | ||||||
Net unrealized depreciation of investments | ||||||||
and foreign currencies | (39,561,032 | ) | ||||||
Total net assets | $ | 125,292,037 |
D | Securities have been classified by country of origin. Classification by type of business has been presented on page 33 in “Country/Sector allocations.” |
± | Security is being valued based on international fair value pricing. At March 31, 2009, the aggregate amount of international fair value priced securities was $108,822,087, which represented 86.85% of the Fund’s net assets. See Note 1 in “notes to financial statements.” |
† | Non income producing security. |
* | Fully or partially on loan. |
o | Securities listed and traded on the Hong Kong Stock Exchange. |
@ | Illiquid security. At March 31, 2009, 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.” |
∏ | Restricted Security. This investment is in security not registered under the Securities Act of 1933, as amended and has certain restrictions on resale which may limit its liquidity. At March 31, 2009, the aggregate amount of restricted security was $0 or 0.00% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
= | Security is being fair valued in accordance with the Fund’s fair valuation policy. At March 31, 2009, the aggregate amount of fair valued securities was $0, which represented 0.00% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $15,320,036 of securities loaned. |
x | Includes $526,206 cash pledged as collateral for futures contracts. |
64
Summary of Abbreviations: |
Net Asset Value and Offering Price Per Share – | |||
Optimum International Fund | |||
Net asset value Class A (A) | $ | 7.01 | |
Sales charge (5.75% of offering price) (B) | 0.43 | ||
Offering price | $ | 7.44 |
(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 and futures contracts were outstanding at March 31, 2009:
Foreign Currency Exchange Contracts1
Unrealized | |||||||||||||||||
Contracts to | Settlement | Appreciation | |||||||||||||||
Receive (Deliver) | In Exchange For | Date | (Depreciation) | ||||||||||||||
AUD | 87,856 | USD | (61,034 | ) | 4/3/09 | $ | 43 | ||||||||||
AUD | 980,000 | USD | (646,918 | ) | 4/15/09 | 33,672 | |||||||||||
CAD | 753,000 | USD | (604,783 | ) | 4/15/09 | (7,399 | ) | ||||||||||
CHF | 2,030,000 | USD | (1,717,241 | ) | 4/15/09 | 66,332 | |||||||||||
DKK | 751,000 | USD | (131,034 | ) | 4/15/09 | 2,850 | |||||||||||
EUR | 1,058,000 | USD | (1,376,138 | ) | 4/15/09 | 29,421 | |||||||||||
GBP | 18,000 | USD | (25,826 | ) | 4/2/09 | (3 | ) | ||||||||||
GBP | 10,000 | USD | (14,322 | ) | 4/3/09 | 24 | |||||||||||
GBP | (74,000 | ) | USD | 107,096 | 4/15/09 | 932 | |||||||||||
GBP | (880,000 | ) | USD | 1,250,335 | 4/15/09 | (12,157 | ) | ||||||||||
HKD | 1,354,000 | USD | (174,703 | ) | 4/15/09 | 11 | |||||||||||
JPY | 313,971,000 | USD | (3,215,628 | ) | 4/15/09 | (42,778 | ) | ||||||||||
NOK | 987,000 | USD | (145,425 | ) | 4/15/09 | 1,330 | |||||||||||
SGD | (191,000 | ) | USD | 126,005 | 4/15/09 | 473 | |||||||||||
ZAR | (1,877,000 | ) | USD | 197,635 | 4/15/09 | 205 | |||||||||||
$ | 72,956 |
Futures Contracts2 | ||||||||||||||
Notional | Notional | Expiration | Unrealized | |||||||||||
Contracts to Buy | Cost | Value | Date | Appreciation | ||||||||||
21 FTSE 100 Index | $ | 1,054,569 | $ | 1,170,418 | 6/19/09 | $ | 115,849 | |||||||
15 Tokyo Price Index | 1,098,330 | 1,177,570 | 6/11/09 | 79,240 | ||||||||||
$ | 2,152,899 | $ | 195,089 |
The use of foreign currency exchange contracts and futures contracts involves elements of market risk and risks in excess of the amount recognized in the financial statements. The notional values presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.
1 See Note 7 in “Notes to financial statements.”
2 See Note 8 in “Notes to financial statements.”
See accompanying notes
(continues) 65
Statements of net assets
Optimum Large Cap Growth Fund
March 31, 2009
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock – 95.77% | |||||
Basic Industry/Capital Goods – 9.03% | |||||
* | 3M | 10,100 | $ | 502,172 | |
Agnico-Eagle Mines (Canada) | 2,400 | 136,608 | |||
* | Air Products & Chemicals | 32,782 | 1,843,988 | ||
± | BHP Billiton (Australia) | 42,550 | 940,270 | ||
* | BHP Billiton ADR | 46,300 | 1,831,165 | ||
* | Cia Vale do Rio Doce ADR | 41,550 | 552,615 | ||
† | Crown Holdings | 127,300 | 2,893,529 | ||
* | Danaher | 87,100 | 4,722,562 | ||
Deere & Co. | 17,900 | 588,373 | |||
*† | General Cable | 34,400 | 681,808 | ||
Goldcorp (Canada) | 33,000 | 1,099,560 | |||
ITT | 42,550 | 1,636,899 | |||
Monsanto | 107,401 | 8,925,022 | |||
Mosaic | 21,050 | 883,679 | |||
† | Owens-Illinois | 30,100 | 434,644 | ||
Potash Corp. of Saskatchewan (Canada) | 36,671 | 2,963,384 | |||
Praxair | 127,762 | 8,597,104 | |||
* | SPX | 35,150 | 1,652,402 | ||
† | Tyco International (Bermuda) | 393,200 | 7,690,992 | ||
48,576,776 | |||||
Business Services – 9.58% | |||||
Accenture Class A (Bermuda) | 72,200 | 1,984,778 | |||
Automatic Data Processing | 48,600 | 1,708,776 | |||
Expeditors International of Washington | 36,200 | 1,024,098 | |||
† | Fiserv | 24,600 | 896,916 | ||
*† | Google Class A | 31,197 | 10,858,428 | ||
* | MasterCard Class A | 87,577 | 14,667,395 | ||
McGraw-Hill Companies | 184,100 | 4,210,367 | |||
† | Net 1 UEPS Technologies (South Africa) | 22,550 | 342,986 | ||
† | Research in Motion (Canada) | 63,850 | 2,750,020 | ||
Sysco | 30,300 | 690,840 | |||
* | United Parcel Service Class B | 46,450 | 2,286,269 | ||
Visa Class A | 182,054 | 10,122,202 | |||
51,543,075 | |||||
Consumer Durables – 1.76% | |||||
Nintendo ADR | 201,300 | 7,247,887 | |||
*† | Toll Brothers | 88,650 | 1,609,884 | ||
Tupperware Brands | 36,100 | 613,339 | |||
9,471,110 | |||||
Consumer Non-Durables – 15.23% | |||||
† | Amazon.com | 83,900 | 6,161,616 | ||
† | AutoZone | 13,300 | 2,162,846 | ||
Best Buy | 37,700 | 1,431,092 | |||
Coca-Cola | 102,150 | 4,489,493 | |||
Costco Wholesale | 123,414 | 5,716,536 | |||
CVS Caremark | 520,506 | 14,308,709 | |||
† | Dollar Tree | 17,700 | 788,535 | ||
General Mills | 57,401 | 2,863,162 | |||
*† | Gildan Activewear | 83,967 | 680,133 | ||
±* | Groupe Danone (France) | 24,131 | 1,174,255 | ||
Kroger | 165,550 | 3,512,971 | |||
Lowe’s Companies | 236,385 | 4,314,026 | |||
± | Nestle (Switzerland) | 40,380 | 1,363,973 | ||
* | NIKE Class B | 141,304 | 6,625,745 | ||
PepsiCo | 51,250 | 2,638,350 | |||
Philip Morris International | 242,550 | 8,629,929 | |||
Procter & Gamble | 40,052 | 1,886,049 | |||
TJX | 23,100 | 592,284 | |||
Wal-Mart Stores | 241,635 | 12,589,183 | |||
81,928,887 | |||||
Consumer Services – 6.83% | |||||
*† | Apollo Group Class A | 17,100 | 1,339,443 | ||
Carnival | 36,150 | 780,840 | |||
* | Comcast Special Class A | 101,950 | 1,312,097 | ||
*† | DIRECTV Group | 73,350 | 1,671,647 | ||
† | eBay | 143,300 | 1,799,848 | ||
† | ITT Educational Services | 13,550 | 1,645,241 | ||
McDonald’s | 299,830 | 16,361,722 | |||
* | Regal Entertainment Group Class A | 149,700 | 2,007,477 | ||
* | Shaw Communications Class B (Canada) | 68,100 | 1,031,715 | ||
Western Union | 128,100 | 1,610,217 | |||
*† | Wynn Resorts | 72,402 | 1,445,868 | ||
Yum Brands | 209,013 | 5,743,677 | |||
36,749,792 | |||||
Energy – 6.16% | |||||
*† | Cameron International | 26,600 | 583,338 | ||
Chesapeake Energy | 244,800 | 4,176,288 | |||
Chevron | 8,800 | 591,712 | |||
EOG Resources | 17,400 | 952,824 | |||
Exxon Mobil | 36,300 | 2,472,030 | |||
Murphy Oil | 13,700 | 613,349 | |||
† | Newfield Exploration | 29,300 | 665,110 | ||
* | Nexen (Canada) | 251,848 | 4,271,342 | ||
NuStar Energy | 2,400 | 110,664 | |||
Occidental Petroleum | 1,200 | 66,780 | |||
Petroleo Brasileiro SA ADR | 108,132 | 3,294,782 | |||
Petroleo Brasileiro SP ADR | 57,000 | 1,396,500 | |||
Schlumberger | 58,800 | 2,388,456 | |||
Smith International | 31,200 | 670,176 | |||
† | Transocean (Switzerland) | 157,694 | 9,278,715 | ||
† | Weatherford International | 143,830 | 1,592,198 | ||
33,124,264 | |||||
Financials – 5.50% | |||||
AllianceBernstein Holding | 35,150 | 517,408 | |||
BlackRock | 4,400 | 572,176 | |||
Bosvespa Holding (Brazil) | 271,450 | 825,325 | |||
Franklin Resources | 11,900 | 641,053 | |||
Goldman Sachs Group | 61,729 | 6,544,508 | |||
Invesco | 86,600 | 1,200,276 | |||
Janus Capital Group | 88,250 | 586,863 | |||
JPMorgan Chase | 210,887 | 5,605,375 | |||
Northern Trust | 14,100 | 843,462 |
66
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock (continued) | |||||
Financials (continued) | |||||
NYSE Euronext | 195,300 | $ | 3,495,870 | ||
† | Redecard (Brazil) | 29,500 | 357,626 | ||
Schwab (Charles) | 26,600 | 412,300 | |||
State Street | 13,160 | 405,065 | |||
TFS Financial | 147,950 | 1,794,634 | |||
Travelers Companies | 54,800 | 2,227,072 | |||
U.S. Bancorp | 243,665 | 3,559,946 | |||
29,588,959 | |||||
Health Care – 15.39% | |||||
Abbott Laboratories | 252,407 | 12,039,813 | |||
* | Alexion Pharmaceuticals | 35,900 | 1,351,994 | ||
Allergan | 41,200 | 1,967,712 | |||
† | Amgen | 16,400 | 812,128 | ||
Baxter International | 22,300 | 1,142,206 | |||
Becton, Dickinson | 22,000 | 1,479,280 | |||
† | Biogen Idec | 21,300 | 1,116,546 | ||
Bristol-Myers Squibb | 68,950 | 1,511,384 | |||
† | Celgene | 54,600 | 2,424,240 | ||
*† | Cephalon | 42,500 | 2,894,250 | ||
Covidien (Bermuda) | 154,625 | 5,139,735 | |||
* | DENTSPLY International | 20,500 | 550,425 | ||
*† | Elan ADR | 74,300 | 493,352 | ||
† | Express Scripts | 38,800 | 1,791,396 | ||
† | Genzyme | 33,779 | 2,006,135 | ||
† | Gilead Sciences | 145,678 | 6,747,805 | ||
*† | Insulet | 75,600 | 309,960 | ||
*† | Intuitive Surgical | 1,000 | 95,360 | ||
*† | Inverness Medical Innovations | 110,600 | 2,945,278 | ||
Johnson & Johnson | 50,624 | 2,662,822 | |||
† | Life Technologies | 59,050 | 1,917,944 | ||
* | McKesson | 27,100 | 949,584 | ||
† | Medco Health Solutions | 103,500 | 4,278,690 | ||
Medtronic | 79,250 | 2,335,498 | |||
± | Novo Nordisk Class B (Denmark) | 15,409 | 738,699 | ||
Roche Holding ADR | 82,919 | 2,847,712 | |||
* | Schering-Plough | 148,988 | 3,508,667 | ||
† | St. Jude Medical | 56,450 | 2,050,829 | ||
* | Stryker | 22,300 | 759,092 | ||
* | Teva Pharmaceutical Industries ADR | 20,100 | 905,505 | ||
† | Thermo Fisher Scientific | 59,750 | 2,131,283 | ||
UnitedHealth Group | 21,600 | 452,088 | |||
† | WellPoint | 134,550 | 5,108,864 | ||
Wyeth | 123,650 | 5,321,896 | |||
82,788,172 | |||||
Technology – 24.02% | |||||
† | Activision Blizzard | 53,707 | 561,775 | ||
*† | American Tower Class A | 84,000 | 2,556,120 | ||
† | Apple | 210,736 | 22,152,567 | ||
*† | Atheros Communications | 68,600 | 1,005,676 | ||
*† | Autodesk | 96,400 | 1,620,484 | ||
BCE (Canada) | 550 | 10,945 | |||
† | BE Aerospace | 405,700 | 3,517,419 | ||
† | Broadcom Class A | 57,000 | 1,138,860 | ||
† | Cisco Systems | 301,700 | 5,059,509 | ||
† | Cognizant Technology Solutions Class A | 161,400 | 3,355,506 | ||
† | Crown Castle International | 125,500 | 2,561,455 | ||
*† | Dolby Laboratories Class A | 32,700 | 1,115,397 | ||
† | EMC | 50,200 | 572,280 | ||
† | Expedia | 265,303 | 2,408,951 | ||
General Dynamics | 152,208 | 6,330,331 | |||
Hewlett-Packard | 144,650 | 4,637,479 | |||
† | IAC/InterActive | 176,650 | 2,690,380 | ||
International Business Machines | 73,426 | 7,114,245 | |||
*† | Intuit | 26,150 | 706,050 | ||
† | Juniper Networks | 64,100 | 965,346 | ||
*† | Leap Wireless International | 22,300 | 777,601 | ||
Lockheed Martin | 250,681 | 17,304,509 | |||
† | Marvell Technology Group (Bermuda) | 375,250 | 3,437,290 | ||
*† | McAfee | 36,600 | 1,226,100 | ||
*† | MetroPCS Communications | 75,900 | 1,296,372 | ||
Microsoft | 562,950 | 10,341,392 | |||
National Semiconductor | 52,250 | 536,608 | |||
† | Netease.com ADR (China) | ||||
(Hong Kong Exchange) | 93,200 | 2,502,420 | |||
† | Nice Systems ADR | 14,650 | 364,199 | ||
† | ON Semiconductor | 335,000 | 1,306,500 | ||
*† | priceline.com | 5,900 | 464,802 | ||
QUALCOMM | 339,059 | 13,192,786 | |||
*† | salesforce.com | 13,200 | 432,036 | ||
† | Solera Holdings | 92,000 | 2,279,760 | ||
† | Synopsys | 32,950 | 683,054 | ||
Taiwan Semiconductors | |||||
Manufacturing ADR | 86,550 | 774,623 | |||
± | Tencent Holdings (China) | ||||
(Hong Kong Exchange) | 123,300 | 912,388 | |||
*† | VeriSign | 67,900 | 1,281,273 | ||
129,194,488 | |||||
Transportation – 1.78% | |||||
Norfolk Southern | 84,544 | 2,853,360 | |||
Union Pacific | 163,960 | 6,740,396 | |||
9,593,756 | |||||
Utilities – 0.49% | |||||
Northeast Utilities | 67,250 | 1,451,928 | |||
Veolia Environnement ADR | 55,250 | 1,154,725 | |||
2,606,653 | |||||
Total Common Stock | |||||
(cost $592,962,695) | 515,165,932 |
(continues) 67
Statements of net assets
Optimum Large Cap Growth Fund
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
Convertible Preferred Stock – 0.37% | ||||||||
Mylan 6.50% exercise price | ||||||||
$17.08, expiration date 11/15/10 | 2,321 | $ | 1,978,513 | |||||
Total Convertible Preferred Stock | ||||||||
(cost $1,546,825) | 1,978,513 | |||||||
Preferred Stock – 0.11% | ||||||||
* | Wells Fargo 8.00% | 38,550 | 600,224 | |||||
Total Preferred Stock | ||||||||
(cost $741,030) | 600,224 | |||||||
Principal | ||||||||
Amount (U.S. $) | ||||||||
Repurchase Agreements** – 4.07% | ||||||||
BNP Paribas 0.08%, dated 3/31/09, | ||||||||
to be repurchased on 4/1/09, | ||||||||
repurchase price $21,890,049 | ||||||||
(collateralized by U.S. Government | ||||||||
obligations, 6/11/09-2/11/10; | ||||||||
with market value $22,339,361) | $21,890,000 | 21,890,000 | ||||||
Total Repurchase Agreements | ||||||||
(cost $21,890,000) | 21,890,000 | |||||||
Total Value of Securities Before Securities | ||||||||
Lending Collateral – 100.32% | ||||||||
(cost $617,140,550) | 539,634,669 | |||||||
Number of | ||||||||
Shares | ||||||||
Securities Lending Collateral*** – 8.81% | ||||||||
Investment Companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 49,272,894 | 47,427,504 | ||||||
† | Mellon GSL DBT II | |||||||
Liquidation Trust | 1,053,295 | 105 | ||||||
Total Securities Lending Collateral | ||||||||
(cost $50,326,189) | 47,427,609 | |||||||
Total Value of Securities – 109.13% | ||||||||
(cost $667,466,739) | 587,062,278 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (9.35%) | (50,326,189 | ) | ||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 0.22% | 1,197,849 | |||||||
Net Assets Applicable to 76,386,376 | ||||||||
Shares Outstanding – 100.00% | $ | 537,933,938 | ||||||
Net Asset Value – Optimum Large Cap Growth Fund | ||||||||
Class A ($28,346,623 / 4,055,920 Shares) | $6.99 | |||||||
Net Asset Value – Optimum Large Cap Growth Fund | ||||||||
Class B ($4,779,604 / 710,076 Shares) | $6.73 | |||||||
Net Asset Value – Optimum Large Cap Growth Fund | ||||||||
Class C ($102,233,247 / 15,191,248 Shares) | $6.73 | |||||||
Net Asset Value – Optimum Large Cap Growth Fund | ||||||||
Institutional Class ($402,574,464 / 56,429,132 Shares) | $7.13 | |||||||
Components of Net Assets at March 31, 2009: | ||||||||
Shares of beneficial interest | ||||||||
(unlimited authorization – no par) | $ | 879,826,937 | ||||||
Undistributed net investment income | 663,683 | |||||||
Accumulated net realized loss on investments | (262,163,707 | ) | ||||||
Net unrealized depreciation of investments | ||||||||
and foreign currencies | (80,392,975 | ) | ||||||
Total net assets | $ | 537,933,938 |
* | Fully or partially on loan. |
± | Security is being valued based on international fair value pricing. At March 31, 2009, the aggregate amount of international fair value priced securities was $5,129,585, which represented 0.95% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” |
† | Non income producing security. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $47,652,426 of securities loaned. |
Summary of Abbreviations:
ADR — American Depositary Receipts
CHF — Swiss Franc
EUR — European Monetary Unit
USD — United States Dollar
Net Asset Value and Offering Price Per Share – | |
Optimum Large Cap Growth Fund | |
Net asset value Class A (A) | $6.99 |
Sales charge (5.75% of offering price) (B) | 0.43 |
Offering price | $7.42 |
(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. |
68
The following foreign currency exchange contracts were outstanding at March 31, 2009: |
Foreign Currency Exchange Contracts1 | |||||||||||||
Unrealized | |||||||||||||
Contracts | Appreciation | ||||||||||||
to Deliver | In Exchange For | Settlement Date | (Depreciation) | ||||||||||
CHF | (53,539 | ) | USD | 46,840 | 4/1/09 | $(186 | ) | ||||||
EUR | (29,973 | ) | USD | 39,880 | 4/1/09 | 59 | |||||||
$(127 | ) |
The use of foreign currency exchange contracts involves elements of market risk and risks in excess of the amount recognized in the financial statements. The notional values presented above represent the Fund’s total exposure in such contracts, whereas only the net unrealized appreciation (depreciation) is reflected in the Fund’s net assets.
1 See Note 7 in “Notes to financial statements.”
See accompanying notes
(continues) 69
Statements of net assets
Optimum Large Cap Value Fund
March 31, 2009
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock – 99.74% | |||||
Consumer Discretionary – 10.80% | |||||
Comcast Class A | 316,700 | $ | 4,319,788 | ||
* | Disney (Walt) | 176,310 | 3,201,790 | ||
Gap | 425,500 | 5,527,245 | |||
* | Hasbro | 32,720 | 820,290 | ||
* | Home Depot | 262,010 | 6,172,956 | ||
Johnson Controls | 78,020 | 936,240 | |||
* | Lennar Class A | 379,138 | 2,847,326 | ||
Macy’s | 127,490 | 1,134,661 | |||
Mattel | 379,500 | 4,375,635 | |||
NIKE Class B | 79,500 | 3,727,755 | |||
Omnicom Group | 130,790 | 3,060,486 | |||
* | Regal Entertainment Group Class A | 555,000 | 7,442,550 | ||
* | Royal Caribbean Cruises | 131,670 | 1,054,677 | ||
* | Sherwin-Williams | 45,670 | 2,373,470 | ||
Sony ADR | 37,600 | 775,688 | |||
Staples | 66,800 | 1,209,748 | |||
Time Warner | 96,500 | 1,862,450 | |||
Time Warner Cable | 24,222 | 600,717 | |||
± | WPP | 247,316 | 1,388,845 | ||
52,832,317 | |||||
Consumer Staples – 12.47% | |||||
Altria Group | 65,040 | 1,041,941 | |||
CVS Caremark | 239,171 | 6,574,811 | |||
± | Diageo (United Kingdom) | 269,176 | 3,005,324 | ||
* | Estee Lauder Class A | 99,400 | 2,450,210 | ||
Kellogg | 32,640 | 1,195,603 | |||
Kimberly-Clark | 170,850 | 7,877,894 | |||
Kraft Foods Class A | 341,650 | 7,615,379 | |||
Kroger | 74,850 | 1,588,317 | |||
Lorillard | 25,990 | 1,604,623 | |||
Molson Coors Brewing Class B | 30,380 | 1,041,426 | |||
± | Nestle (Switzerland) | 120,051 | 4,055,134 | ||
PepsiCo | 63,900 | 3,289,572 | |||
Philip Morris International | 277,750 | 9,882,344 | |||
Procter & Gamble | 61,556 | 2,898,650 | |||
* | Sara Lee | 722,100 | 5,834,568 | ||
Smucker (J.M.) | 28,100 | 1,047,287 | |||
61,003,083 | |||||
Energy – 13.23% | |||||
Anadarko Petroleum | 83,800 | 3,258,982 | |||
Apache | 52,590 | 3,370,493 | |||
Baker Hughes | 63,700 | 1,818,635 | |||
* | BP ADR | 55,400 | 2,221,540 | ||
Chevron | 237,452 | 15,966,273 | |||
ConocoPhillips | 185,290 | 7,255,956 | |||
Devon Energy | 59,550 | 2,661,290 | |||
EOG Resources | 37,190 | 2,036,524 | |||
Exxon Mobil | 92,300 | 6,285,630 | |||
Hess | 52,680 | 2,855,256 | |||
Marathon Oil | 142,400 | 3,743,696 | |||
† | National Oilwell Varco | 53,200 | 1,527,372 | ||
Occidental Petroleum | 33,980 | 1,890,987 | |||
Total ADR | 160,770 | 7,887,376 | |||
Valero Energy | 106,500 | 1,906,350 | |||
64,686,360 | |||||
Financials – 15.15% | |||||
Allstate | 214,860 | 4,114,569 | |||
Annaly Mortgage Management | 72,000 | 998,640 | |||
Aon | 38,890 | 1,587,490 | |||
Bank of America | 198,699 | 1,355,127 | |||
Bank of New York Mellon | 242,196 | 6,842,037 | |||
Blackstone Group | 431,540 | 3,128,665 | |||
Chubb | 44,820 | 1,896,782 | |||
Franklin Resources | 18,900 | 1,018,143 | |||
Goldman Sachs Group | 57,410 | 6,086,608 | |||
* | Hospitality Properties Trust | 135,500 | 1,626,000 | ||
Invesco | 147,410 | 2,043,103 | |||
JPMorgan Chase | 518,677 | 13,786,435 | |||
MetLife | 253,790 | 5,778,798 | |||
New York Community Bancorp | 449,700 | 5,023,149 | |||
NYSE Euronext | 99,600 | 1,782,840 | |||
PNC Financial Services Group | 44,680 | 1,308,677 | |||
Prudential Financial | 57,330 | 1,090,417 | |||
State Street | 107,930 | 3,322,085 | |||
Travelers | 236,763 | 9,622,048 | |||
Wells Fargo | 116,860 | 1,664,086 | |||
74,075,699 | |||||
Health Care – 10.45% | |||||
Abbott Laboratories | 39,370 | 1,877,949 | |||
† | Boston Scientific | 299,900 | 2,384,205 | ||
Bristol-Myers Squibb | 275,100 | 6,030,192 | |||
± | GlaxoSmithKline (United Kingdom) | 79,890 | 1,243,475 | ||
Johnson & Johnson | 84,500 | 4,444,700 | |||
Medtronic | 33,540 | 988,424 | |||
Merck | 193,970 | 5,188,698 | |||
Pfizer | 738,540 | 10,058,914 | |||
± | Roche Holding (Switzerland) | 7,630 | 1,047,035 | ||
* | Tenet Healthcare | 1,278,530 | 1,483,095 | ||
† | Thermo Fisher Scientific | 34,300 | 1,223,481 | ||
†* | Waters | 32,130 | 1,187,204 | ||
† | Watson Pharmaceuticals | 231,600 | 7,205,075 | ||
† | WellPoint | 16,100 | 611,317 | ||
Wyeth | 142,190 | 6,119,857 | |||
51,093,621 | |||||
Industrials – 10.74% | |||||
* | 3M | 52,540 | 2,612,289 | ||
* | Avery Dennison | 136,000 | 3,038,240 | ||
* | Burlington Northern Santa Fe | 10,010 | 602,102 | ||
* | Danaher | 42,920 | 2,327,122 | ||
Eaton | 47,100 | 1,736,106 | |||
† | General Electric | 452,300 | 4,572,753 |
70
Number of | Value | ||||
Shares | (U.S. $) | ||||
Common Stock (continued) | |||||
Industrials (continued) | |||||
* | Grainger (W.W.) | 27,040 | $ | 1,897,667 | |
Honeywell International | 118,900 | 3,312,554 | |||
Lockheed Martin | 159,720 | 11,025,471 | |||
Northrop Grumman | 142,270 | 6,208,663 | |||
Tyco Electronics | 330,700 | 3,650,928 | |||
Tyco International | 181,300 | 3,546,228 | |||
United Technologies | 97,610 | 4,195,278 | |||
* | Waste Management | 147,800 | 3,783,680 | ||
52,509,081 | |||||
Information Technology – 11.10% | |||||
Accenture Class A | 189,540 | 5,210,455 | |||
† | Agilent Technologies | 43,870 | 674,282 | ||
Automatic Data Processing | 25,590 | 899,744 | |||
† | Dell | 240,500 | 2,279,940 | ||
Dun & Bradstreet | 11,170 | 860,090 | |||
Hewlett-Packard | 152,790 | 4,898,447 | |||
Intel | 656,940 | 9,886,947 | |||
International Business Machines | 159,740 | 15,477,209 | |||
KLA-Tencor | 122,800 | 2,456,000 | |||
† | LSI | 615,400 | 1,870,816 | ||
Motorola | 701,100 | 2,965,653 | |||
† | Oracle | 315,280 | 5,697,110 | ||
Western Union | 87,800 | 1,103,646 | |||
54,280,339 | |||||
Materials – 5.16% | |||||
Air Products & Chemicals | 41,950 | 2,359,688 | |||
duPont (E.I.) deNemours | 317,700 | 7,094,240 | |||
MeadWestvaco | 297,300 | 3,564,627 | |||
Packaging Corp. of America | 472,800 | 6,155,856 | |||
PPG Industries | 114,810 | 4,236,489 | |||
* | United States Steel | 85,750 | 1,811,898 | ||
25,222,798 | |||||
Telecommunications – 6.45% | |||||
AT&T | 677,190 | 17,065,189 | |||
* | Qwest Communications International | 1,822,000 | 6,231,240 | ||
* | Rogers Communications Class B | 48,960 | 1,128,307 | ||
* | Verizon Communications | 8,050 | 243,110 | ||
± | Vodafone Group (United Kingdom) | 1,829,007 | 3,184,341 | ||
Windstream | 458,900 | 3,698,734 | |||
31,550,921 | |||||
Utilities – 4.19% | |||||
American Electric Power | 213,630 | 5,396,293 | |||
Dominion Resources | 116,686 | 3,616,099 | |||
Entergy | 26,790 | 1,824,131 | |||
* | FPL Group | 53,150 | 2,696,300 | ||
* | PG&E | 53,640 | 2,050,121 | ||
PPL | 93,890 | 2,695,582 | |||
Public Service Enterprise Group | 74,450 | 2,194,042 | |||
20,472,568 | |||||
Total Common Stock | |||||
(cost $729,994,244) | 487,726,787 |
Principal | Value | ||||||
Amount (U.S. $) | (U.S. $) | ||||||
Repurchase Agreements** – 0.20% | |||||||
BNP Paribas 0.08%, dated 3/31/09, | |||||||
to be repurchased on 4/1/09, | |||||||
repurchase price $981,002 | |||||||
(collateralized by U.S. Government | |||||||
obligations, 6/11/09-2/11/10; with | |||||||
market value $1,001,138) | $981,000 | 981,000 | |||||
Total Repurchase Agreements | |||||||
(cost $981,000) | 981,000 | ||||||
Total Value of Securities Before Securities | |||||||
Lending Collateral – 99.94% | |||||||
(cost $730,975,244) | 488,707,787 | ||||||
Number of | |||||||
Shares | |||||||
Securities Lending Collateral*** – 8.29% | |||||||
Investment Companies | |||||||
Mellon GSL DBT II Collateral Fund | 41,955,648 | 40,552,332 | |||||
† | Mellon GSL DBT II Liquidation Trust | 1,049,762 | 105 | ||||
Total Securities Lending Collateral | |||||||
(cost $43,005,410) | 40,552,437 | ||||||
Total Value of Securities – 108.23% | |||||||
(cost $773,980,654) | 529,260,224 | © | |||||
Obligation to Return Securities | |||||||
Lending Collateral*** – (8.79%) | (43,005,410 | ) | |||||
Receivables and Other Assets | |||||||
Net of Liabilities – 0.56% | 2,750,122 | ||||||
Net Assets Applicable to 72,827,298 | |||||||
Shares Outstanding – 100.00% | $ | 489,004,936 | |||||
Net Asset Value – Optimum Large Cap Value Fund | |||||||
Class A ($26,900,758 / 4,007,749 Shares) | $6.71 | ||||||
Net Asset Value – Optimum Large Cap Value Fund | |||||||
Class B ($4,664,218 / 703,519 Shares) | $6.63 | ||||||
Net Asset Value – Optimum Large Cap Value Fund | |||||||
Class C ($98,880,621 / 14,919,781 Shares) | $6.63 | ||||||
Net Asset Value – Optimum Large Cap Value Fund | |||||||
Institutional Class ($358,559,339 / 53,196,249 Shares) | $6.74 | ||||||
Components of Net Assets at March 31, 2009: | |||||||
Shares of beneficial interest | |||||||
(unlimited authorization – no par) | $ | 854,851,172 | |||||
Undistributed net investment income | 13,594,842 | ||||||
Accumulated net realized loss on investments | (134,729,598 | ) | |||||
Net unrealized depreciation of investments | |||||||
and foreign currencies | (244,711,480 | ) | |||||
Total net assets | $ | 489,004,936 |
(continues) 71
Statements of net assets
Optimum Large Cap Value Fund
* | Fully or partially on loan. |
± | Security is being valued based on international fair value pricing. At March 31, 2009, the aggregate amount of international fair value priced securities was $13,924,154, which represented 2.85% of the Fund's net assets. See Note 1 in “notes to financial statements.” |
† | Non income producing security. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $39,752,242 of securities loaned. |
Summary of Abbreviations:
ADR — American Depositary Receipts
CAD — Canadian Dollar
CHF — Swiss Franc
GBP — British Pound Sterling
USD — United States Dollar
Net Asset Value and Offering Price Per Share – | ||
Optimum Large Cap Value Fund | ||
Net asset value Class A (A) | $ | 6.71 |
Sales charge (5.75% of offering price) (B) | 0.41 | |
Offering price | $ | 7.12 |
(A) | Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares. | |
(B) | See the current prospectus for purchases of $75,000 or more. |
The following foreign currency exchange contracts were outstanding at March 31, 2009:
Foreign Currency Exchange Contracts1
Contracts | Unrealized | ||||||||||||
to Deliver | In Exchange For | Settlement Date | Depreciation | ||||||||||
CAD | (9,405 | ) | USD | 7,449 | 4/2/09 | $ (11 | ) | ||||||
CHF | (36,882 | ) | USD | 32,030 | 4/2/09 | (365 | ) | ||||||
GBP | (36,101 | ) | USD | 51,299 | 4/2/09 | (491 | ) | ||||||
$(867 | ) |
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 depreciation is reflected in the Fund’s net assets. |
1 See Note 7 in “Notes to financial statements.”
See accompanying notes
72
Optimum Small-Mid Cap Growth Fund
March 31, 2009
Number of | |||||
Shares | Value | ||||
Common Stock – 98.89% | |||||
Basic Industry/Capital Goods – 14.33% | |||||
* | Acuity Brands | 15,500 | $ | 349,370 | |
Albemarle | 6,500 | 141,505 | |||
*† | Allegiant Travel | 10,970 | 498,696 | ||
American Ecology | 5,860 | 81,688 | |||
AMETEK | 54,990 | 1,719,538 | |||
Cubic | 1,110 | 28,116 | |||
* | Donaldson | 30,500 | 818,620 | ||
*† | Drew Industries | 12,000 | 104,160 | ||
* | FMC | 9,400 | 405,516 | ||
Greif Class A | 7,000 | 233,030 | |||
Herman Miller | 29,000 | 309,140 | |||
*† | Itron | 4,760 | 225,386 | ||
* | Kaydon | 8,000 | 218,640 | ||
Koppers Holdings | 6,000 | 87,120 | |||
Lennox International | 12,330 | 326,252 | |||
† | Mettler-Toledo International | 13,500 | 692,955 | ||
* | Mine Safety Appliances | 9,000 | 180,180 | ||
*† | Moog Class A | 12,000 | 274,440 | ||
* | Nordson | 25,500 | 724,965 | ||
Pall | 20,213 | 412,952 | |||
* | Pentair | 12,100 | 262,207 | ||
† | Quanta Services | 32,500 | 697,125 | ||
* | Simpson Manufacturing | 12,000 | 216,240 | ||
† | Sterling Construction | 13,260 | 236,558 | ||
† | SunPower Class B | 8,110 | 160,578 | ||
* | Toro | 7,000 | 169,260 | ||
† | Varian | 1,700 | 40,358 | ||
† | Waste Connections | 47,980 | 1,233,086 | ||
10,847,681 | |||||
Business Services – 6.55% | |||||
Administaff | 16,000 | 338,080 | |||
† | Aecom Technology | 17,280 | 450,662 | ||
† | Coinstar | 7,500 | 245,700 | ||
*† | Concur Technologies | 32,400 | 621,757 | ||
† | Discovery Communications | 15,610 | 250,072 | ||
* | FactSet Research Systems | 9,720 | 485,903 | ||
Global Payments | 15,500 | 517,855 | |||
† | Hackett Group | 34,000 | 68,680 | ||
Interactive Data | 15,200 | 377,872 | |||
* | Knoll | 20,000 | 122,600 | ||
† | Liberty Acquisition Holdings | 31,100 | 279,900 | ||
† | Net 1 UEPS Technologies | 13,190 | 200,620 | ||
† | Parexel International | 18,400 | 179,032 | ||
Robert Half International | 8,410 | 149,950 | |||
† | SkillSoft ADR | 61,000 | 408,090 | ||
Viad | 1,400 | 19,768 | |||
† | Wright Express | 13,420 | 244,512 | ||
4,961,053 | |||||
Consumer Durables – 3.39% | |||||
*† | Cavco Industries | 29,500 | 696,201 | ||
*† | Champion Enterprises | 137,000 | 65,760 | ||
*† | Jarden | 51,070 | 647,057 | ||
* | Snap-On | 17,080 | 428,708 | ||
* | Thor Industries | 16,500 | 257,730 | ||
† | WESCO International | 9,770 | 177,032 | ||
* | Winnebago Industries | 18,000 | 95,580 | ||
*† | WMS Industries | 9,620 | 201,154 | ||
2,569,222 | |||||
Consumer Non-Durables – 7.26% | |||||
* | Abercrombie & Fitch Class A | 22,380 | 532,644 | ||
Advance Auto Parts | 13,270 | 545,132 | |||
† | Aeropostale | 16,550 | 439,568 | ||
*† | BJ’s Wholesale Club | 18,430 | 589,576 | ||
*† | Chico’s FAS | 28,000 | 150,360 | ||
† | Coach | 6,500 | 108,550 | ||
† | Deckers Outdoor | 4,920 | 260,957 | ||
*† | Dick’s Sporting Goods | 15,810 | 225,609 | ||
† | Gildan Activewear | 37,860 | 306,666 | ||
† | Hibbett Sports | 3,600 | 69,192 | ||
† | Hot Topic | 9,000 | 100,710 | ||
*† | J. Crew Group | 10,000 | 131,800 | ||
* | Pool | 46,930 | 628,861 | ||
† | Rush Enterprises Class A | 24,500 | 218,540 | ||
* | Talbots | 51,000 | 179,010 | ||
*† | True Religion Apparel | 26,300 | 310,603 | ||
† | Urban Outfitters | 42,950 | 703,091 | ||
5,500,869 | |||||
Consumer Services – 6.56% | |||||
† | Bally Technologies | 15,500 | 285,510 | ||
Burger King Holdings | 19,810 | 454,640 | |||
† | Career Education | 15,760 | 377,610 | ||
*† | Corinthian Colleges | 35,890 | 698,061 | ||
† | DreamWorks Animation Class A | 6,110 | 132,220 | ||
*† | Entravision Communications | 56,000 | 14,560 | ||
*† | Gaylord Entertainment | 8,000 | 66,640 | ||
*† | ITT Educational Services | 13,730 | 1,667,096 | ||
*† | Marvel Entertainment | 15,800 | 419,490 | ||
Pepsi Bottling Group | 18,380 | 406,933 | |||
*† | Pinnacle Entertainment | 40,500 | 285,120 | ||
† | Salem Communications Class A | 36,500 | 20,440 | ||
*† | Wynn Resorts | 7,020 | 140,189 | ||
4,968,509 | |||||
Energy – 5.39% | |||||
† | Arena Resources | 12,030 | 306,524 | ||
*† | Atwood Oceanics | 49,430 | 820,044 | ||
Cabot Oil & Gas | 13,730 | 323,616 | |||
† | Carrizo Oil & Gas | 20,000 | 177,600 | ||
† | Covanta Holding | 19,470 | 254,862 | ||
† | FMC Technologies | 23,500 | 737,195 | ||
* | Helmerich & Payne | 12,430 | 283,031 | ||
±† | Lundin Petroleum | 35,566 | 192,714 | ||
† | Oceaneering International | 7,500 | 276,525 | ||
*† | Quicksilver Resources | 17,500 | 96,950 |
(continues) 73
Statements of net assets
Optimum Small-Mid Cap Growth Fund
Number of | |||||
Shares | Value | ||||
Common Stock (continued) | |||||
Energy (continued) | |||||
St. Mary Land & Exploration | 13,040 | $ | 172,519 | ||
† | Tesco | 7,200 | 56,304 | ||
† | TETRA Technologies | 27,000 | 87,750 | ||
± | Wellstream Holdings | 27,186 | 168,242 | ||
† | Whiting Petroleum | 5,030 | 130,026 | ||
4,083,902 | |||||
Financials – 11.04% | |||||
* | Aaron Rents | 28,000 | 746,480 | ||
Allied World Assurance Holdings | 8,830 | 335,805 | |||
*† | AmeriCredit | 15,500 | 90,830 | ||
† | Arch Capital Group | 6,920 | 372,711 | ||
Associated Banc-Corp | 14,500 | 223,880 | |||
Berkshire Hills Bancorp | 25,500 | 584,460 | |||
BOK Financial | 5,500 | 190,025 | |||
GATX | 20,000 | 404,600 | |||
† | Guaranty Bancorp | 70,000 | 122,500 | ||
† | H&E Equipment Services | 40,500 | 265,275 | ||
HCC Insurance Holdings | 20,500 | 516,395 | |||
K-Fed Bancorp | 72,000 | 568,080 | |||
Lakeland Financial | 19,500 | 374,205 | |||
±† | Lancashire Holdings | 36,475 | 250,670 | ||
MB Financial | 28,500 | 387,600 | |||
† | Signature Bank | 11,660 | 329,162 | ||
† | SVB Financial Group | 12,000 | 240,120 | ||
* | TCF Financial | 32,500 | 382,200 | ||
Tower Group | 15,000 | 369,450 | |||
Trico Bancshares | 24,500 | 410,130 | |||
* | Valley National Bancorp | 51,500 | 637,055 | ||
ViewPoint Financial Group | 41,500 | 499,245 | |||
† | World Acceptance | 3,500 | 59,850 | ||
8,360,728 | |||||
Health Care – 16.79% | |||||
† | Alexion Pharmaceuticals | 11,500 | 433,090 | ||
† | Alkermes | 16,770 | 203,420 | ||
† | American Medical System Holdings | 3,400 | 37,910 | ||
† | Array Biopharma | 10,500 | 27,720 | ||
*† | Auxilium Pharmaceuticals | 20,310 | 562,993 | ||
Beckman Coulter | 9,320 | 475,413 | |||
*† | BioMarin Pharmaceuticals | 12,500 | 154,375 | ||
† | Celera | 26,060 | 198,838 | ||
*† | Cephalon | 10,630 | 723,902 | ||
*† | Cerner | 5,410 | 237,878 | ||
† | Community Health Systems | 22,730 | 348,678 | ||
*† | Cougar Biotechnology | 9,290 | 299,138 | ||
*† | Cubist Pharmaceuticals | 13,080 | 213,989 | ||
† | Eclipsys | 13,820 | 140,135 | ||
† | Health Net | 23,270 | 336,950 | ||
*† | HealthSouth | 37,760 | 335,309 | ||
ICON ADR | 19,370 | 312,826 | |||
*† | Idexx Laboratories | 6,500 | 224,770 | ||
*† | Illumina | 10,000 | 372,400 | ||
† | Immucor | 15,000 | 377,250 | ||
*† | InterMune | 7,500 | 123,300 | ||
† | Intuitive Surgical | 1,890 | 180,230 | ||
*† | Inverness Medical Innovations | 19,410 | 516,888 | ||
*† | IsoRay | 112,000 | 19,040 | ||
† | Life Technologies | 13,620 | 442,378 | ||
*† | Luminex | 10,200 | 184,824 | ||
*† | Medarex | 24,000 | 123,120 | ||
*† | Medicines | 14,110 | 152,952 | ||
*† | Myriad Genetics | 20,380 | 926,678 | ||
† | Nektar Therapeutics | 20,000 | 107,800 | ||
Omnicare | 14,710 | 360,248 | |||
† | Onyx Pharmaceuticals | 8,480 | 242,104 | ||
† | OSI Pharmaceuticals | 7,660 | 293,072 | ||
*† | PSS World Medical | 24,000 | 344,400 | ||
*† | Psychiatric Solutions | 14,500 | 228,085 | ||
* | Quality Systems | 8,000 | 362,000 | ||
† | Regeneron Pharmaceuticals | 16,860 | 233,680 | ||
*† | Savient Pharmaceuticals | 11,500 | 56,925 | ||
*† | Seattle Genetics | 28,000 | 276,080 | ||
*† | Sequenom | 10,220 | 145,328 | ||
± | SSL International | 23,126 | 148,713 | ||
*† | United Therapeutics | 2,500 | 165,225 | ||
† | Varian Medical Systems | 7,840 | 238,650 | ||
† | Vertex Pharmaceuticals | 4,380 | 125,837 | ||
† | Volcano | 32,390 | 471,275 | ||
† | Zoll Medical | 15,770 | 226,457 | ||
12,712,273 | |||||
Real Estate – 1.24% | |||||
AMB Property | 12,090 | 174,096 | |||
BioMed Realty Trust | 15,000 | 101,550 | |||
Corporate Office Properties Trust | 10,500 | 260,715 | |||
* | Extra Space Storage | 17,000 | 93,670 | ||
Regency Centers | 11,560 | 307,149 | |||
937,180 | |||||
Technology – 24.04% | |||||
† | American Tower Class A | 9,000 | 273,870 | ||
Amphenol Class A | 16,000 | 455,840 | |||
† | ANSYS | 16,500 | 414,150 | ||
*† | Atheros Communications | 32,320 | 473,811 | ||
±† | Autonomy | 14,230 | 265,419 | ||
† | Crown Castle International | 58,400 | 1,191,944 | ||
*† | Equinix | 9,530 | 535,110 | ||
† | eResearch Technology | 19,600 | 103,096 | ||
† | ESCO Technologies | 18,000 | 696,600 | ||
*† | FLIR Systems | 45,000 | 921,600 | ||
*† | II-VI | 18,500 | 317,830 | ||
† | Informatica | 28,000 | 371,280 | ||
† | Integrated Device Technology | 68,000 | 309,400 | ||
† | IPG Photonics | 46,000 | 387,320 | ||
Jabil Circuit | 31,800 | 176,808 |
74
Number of | ||||||||
Shares | Value | |||||||
Common Stock (continued) | ||||||||
Technology (continued) | ||||||||
† | Logitech International Class R | 3,469 | $ | 35,661 | ||||
† | McAfee | 11,400 | 381,900 | |||||
*† | MetroPCS Communications | 36,930 | 630,764 | |||||
† | Micros Systems | 18,720 | 351,000 | |||||
† | Microsemi | 36,500 | 423,400 | |||||
† | Nice Systems ADR | 31,830 | 791,294 | |||||
† | Novell | 103,000 | 438,780 | |||||
*† | Omniture | 32,340 | 426,565 | |||||
*† | ON Semiconductor | 250,060 | 975,234 | |||||
† | Plexus | 31,500 | 435,330 | |||||
*† | Polycom | 60,780 | 935,404 | |||||
† | Red Hat | 39,310 | 701,290 | |||||
† | RightNow Technologies | 13,870 | 104,996 | |||||
Seagate Technology | 35,200 | 211,552 | ||||||
† | Solera Holdings | 25,740 | 637,837 | |||||
† | SRA International Class A | 14,000 | 205,800 | |||||
*† | Stratasys | 20,000 | 165,400 | |||||
*† | Supertex | 18,000 | 415,800 | |||||
*† | Switch & Data Facilities | 25,000 | 219,250 | |||||
† | Sykes Enterprises | 21,340 | 354,884 | |||||
† | Teledyne Technologies | 16,920 | 451,426 | |||||
† | Trimble Navigation | 8,000 | 122,240 | |||||
* | TW Telecom | 88,000 | 770,000 | |||||
† | VeriSign | 13,530 | 255,311 | |||||
† | Virtusa | 40,494 | 251,063 | |||||
† | Western Digital | 22,120 | 427,801 | |||||
† | Zebra Technologies | 10,000 | 190,200 | |||||
18,204,260 | ||||||||
Transportation – 2.30% | ||||||||
† | CAI International | 36,000 | 101,880 | |||||
* | Heartland Express | 62,540 | 926,217 | |||||
† | HUB Group Class A | 20,930 | 355,810 | |||||
* | Hunt (J.B.) Transport Services | 14,760 | 355,864 | |||||
1,739,771 | ||||||||
Total Common Stock | ||||||||
(cost $97,543,217) | 74,885,448 | |||||||
Warrants – 0.00% | ||||||||
†= | Isoray, exercise price $5.00, | |||||||
expiration date 3/22/11 | 28,000 | 0 | ||||||
†=@∏ | Medicure Restricted PIPE | 74,014 | 0 | |||||
Total Warrants | ||||||||
(cost $0) | 0 | |||||||
Principal | ||||||||
Amount | ||||||||
Repurchase Agreements** – 1.36% | ||||||||
BNP Paribas 0.08%, dated | ||||||||
3/31/09, to be repurchased | ||||||||
on 4/1/09, repurchase price | ||||||||
$1,033,002 (collateralized by | ||||||||
U.S. Government obligations, | ||||||||
6/11/09-2/11/10; with market | ||||||||
value $1,054,206) | $ | 1,033,000 | 1,033,000 | |||||
Total Repurchase Agreements | ||||||||
(cost $1,033,000) | 1,033,000 | |||||||
Total Value of Securities Before Securities | ||||||||
Lending Collateral – 100.25% | ||||||||
(cost $98,576,217) | 75,918,448 | |||||||
Number of | ||||||||
Shares | ||||||||
Securities Lending Collateral*** – 20.78% | ||||||||
Investment Companies | ||||||||
Mellon GSL DBT II | ||||||||
Collateral Fund | 16,257,629 | 15,731,878 | ||||||
† | Mellon GSL DBT II | |||||||
Liquidation Trust | 510,265 | 51 | ||||||
Total Securities Lending Collateral | ||||||||
(cost $16,767,894) | 15,731,929 | |||||||
Total Value of Securities – 121.03% | ||||||||
(cost $115,344,111) | 91,650,377 | © | ||||||
Obligation to Return Securities | ||||||||
Lending Collateral*** – (22.14%) | (16,767,894 | ) | ||||||
Receivables and Other Assets | ||||||||
Net of Liabilities – 1.11% | 845,061 | |||||||
Net Assets Applicable to 11,147,790 | ||||||||
Shares Outstanding – 100.00% | $ | 75,727,544 | ||||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||||
Class A ($4,813,496 / 712,366 Shares) | $6.76 | |||||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||||
Class B ($807,133 / 124,012 Shares) | $6.51 | |||||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||||
Class C ($16,862,575 / 2,591,277 Shares) | $6.51 | |||||||
Net Asset Value – Optimum Small-Mid Cap Growth Fund | ||||||||
Institutional Class ($53,244,340 / 7,720,135 Shares) | $6.90 |
(continues) 75
Statements of net assets
Optimum Small-Mid Cap Growth Fund
Components of Net Assets at March 31, 2009: | |||
Shares of beneficial interest | |||
(unlimited authorization – no par) | $ | 136,540,439 | |
Accumulated net investment loss | (949 | ) | |
Accumulated net realized loss on investments | (37,118,545 | ) | |
Net unrealized depreciation of investments | (23,693,401 | ) | |
Total net assets | $ | 75,727,544 |
* | Fully or partially on loan. |
† | Non income producing security. |
± | Security is being valued based on international fair value pricing. At March 31, 2009, the aggregate amount of international fair value priced securities was $1,025,758, which represented 1.35% 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 March 31, 2009, the aggregate amount of fair valued securities was $0, which represented 0.00% of the Fund’s net assets. See Note 1 in “Notes to financial statements.” |
@ | Illiquid security. At March 31, 2009, 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.” |
∏ | 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 March 31, 2009, the aggregate amount of the restricted securities was $0 or 0.00% of the Fund’s net assets. See Note 12 in “Notes to financial statements.” |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $15,585,726 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) | $ | 6.76 |
Sales charge (5.75% of offering price) (B) | 0.41 | |
Offering price | $ | 7.17 |
(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
76
Optimum Small-Mid Cap Value Fund
March 31, 2009
Number of | |||||
Shares | Value | ||||
Common Stock – 94.38% | |||||
Basic Industry – 12.00% | |||||
Airgas | 15,200 | $ | 513,912 | ||
* | Albany International | 83,000 | 751,150 | ||
Albemarle | 27,000 | 587,790 | |||
* | Allegheny Technologies | 10,500 | 230,265 | ||
AMETEK | 12,500 | 390,875 | |||
* | AptarGroup | 17,000 | 529,380 | ||
Ashland | 62,000 | 640,460 | |||
Brady Class A | 27,000 | 476,010 | |||
Carlisle | 28,000 | 549,640 | |||
Chemtura | 75,000 | 3,563 | |||
Cliffs Natural Resources | 16,300 | 296,008 | |||
Crane | 35,000 | 590,800 | |||
Cytec Industries | 26,000 | 390,520 | |||
* | Eastman Chemical | 38,300 | 1,026,440 | ||
Kaiser Aluminum | 18,500 | 427,720 | |||
*† | Kapstone Paper & Packaging | 170,000 | 418,200 | ||
* | Lennox International | 19,300 | 510,678 | ||
† | NCI Building Systems | 16,000 | 35,520 | ||
*† | OM Group | 20,000 | 386,400 | ||
Quanex | 42,000 | 319,200 | |||
† | Solutia | 44,000 | 82,280 | ||
* | Spartech | 70,000 | 172,200 | ||
9,329,011 | |||||
Business Services – 6.01% | |||||
† | Brink’s Home Security Holdings | 10,500 | 237,300 | ||
* | Courier | 50,718 | 769,392 | ||
Deluxe | 27,000 | 260,010 | |||
Donnelley (R.R.) & Sons | 32,000 | 234,560 | |||
Ennis | 77,890 | 690,105 | |||
* | Factset Research Systems | 6,200 | 309,938 | ||
Manpower | 8,500 | 268,005 | |||
† | MPS Group | 110,000 | 654,500 | ||
Total System Services | 37,700 | 520,637 | |||
† | TrueBlue | 18,000 | 148,500 | ||
† | WESCO International | 32,000 | 579,840 | ||
4,672,787 | |||||
Capital Spending – 9.13% | |||||
* | Acuity Brands | 32,000 | 721,280 | ||
† | Advanced Energy Industries | 89,825 | 676,382 | ||
*† | AGCO | 13,700 | 268,520 | ||
Cummins | 11,400 | 290,130 | |||
† | Gardner Denver | 13,100 | 284,794 | ||
* | Granite Construction | 16,700 | 625,916 | ||
Hardinge | 1,200 | 3,348 | |||
Harsco | 15,000 | 332,550 | |||
* | Hubbell Class B | 25,500 | 687,480 | ||
Kennametal | 65,000 | 1,053,650 | |||
Precision Castparts | 6,500 | 389,350 | |||
Tennant | 52,800 | 494,736 | |||
Tyco International | 25,000 | 489,000 | |||
† | URS | 13,600 | 549,576 | ||
* | Wabash National | 189,200 | 232,716 | ||
7,099,428 | |||||
Consumer Cyclical – 7.97% | |||||
Alberto-Culver | 24,100 | 544,901 | |||
Barnes Group | 83,000 | 887,270 | |||
* | Ethan Allen Interiors | 77,800 | 876,028 | ||
† | Exide Technologies | 231,890 | 695,670 | ||
* | Furniture Brands International | 42,000 | 61,740 | ||
* | Hooker Furniture | 85,752 | 723,747 | ||
Knoll | 101,000 | 619,130 | |||
* | Leggett & Platt | 31,000 | 402,690 | ||
* | Stanley Works | 26,000 | 757,120 | ||
Tupperware | 37,000 | 628,630 | |||
6,196,926 | |||||
Consumer Services – 8.91% | |||||
*† | BJ’s Wholesale Club | 18,300 | 585,417 | ||
*† | Collective Brands | 95,000 | 925,300 | ||
*† | Dress Barn | 68,700 | 844,323 | ||
Foot Locker | 90,500 | 948,440 | |||
*† | Genesco | 47,500 | 894,425 | ||
Ingles Markets Class A | 56,306 | 840,649 | |||
*† | RSC Holdings | 36,000 | 189,360 | ||
† | Rush Enterprises Class A | 49,500 | 441,540 | ||
† | Sturm Ruger & Co. | 102,292 | 1,261,260 | ||
6,930,714 | |||||
Consumer Staples – 3.34% | |||||
* | Bunge Limited | 4,600 | 260,590 | ||
*† | Chiquita Brands International | 104,373 | 691,993 | ||
† | Dr Pepper Snapple Group | 33,900 | 573,249 | ||
Molson Coors Brewing Class B | 15,700 | 538,196 | |||
Smucker (J.M.) | 14,400 | 536,688 | |||
2,600,716 | |||||
Energy – 5.33% | |||||
Cabot Oil & Gas | 23,700 | 558,609 | |||
Gulf Island Fabrication | 66,760 | 534,748 | |||
† | Key Energy Services | 85,000 | 244,800 | ||
† | Newpark Resources | 227,850 | 576,461 | ||
† | Plains Exploration & Production | 30,600 | 527,238 | ||
Southern Union | 79,900 | 1,216,077 | |||
† | Southwestern Energy | 4,400 | 131,824 | ||
† | Weatherford International | 32,500 | 359,775 | ||
4,149,532 | |||||
Financial Services – 13.27% | |||||
† | Alleghany | 918 | 248,622 | ||
American Equity Investment Life Holding | 187,220 | 778,835 | |||
AXIS Capital Holdings | 24,700 | 556,738 | |||
CFS Bancorp | 6,445 | 25,136 | |||
Comerica | 28,400 | 520,004 | |||
Cullen/Frost Bankers | 6,200 | 291,028 | |||
Dime Community Bancshares | 43,750 | 410,375 | |||
Eaton Vance | 29,300 | 669,505 | |||
Everest Re Group | 7,100 | 502,680 | |||
† | FPIC Insurance Group | 24,215 | 896,681 | ||
Horace Mann Educators | 80,950 | 677,552 | |||
Hudson City Bancorp | 45,100 | 527,219 |
(continues) 77
Statements of net assets
Optimum Small-Mid Cap Value Fund
Number of | |||||||
Shares | Value | ||||||
Common Stock (continued) | |||||||
Financial Services (continued) | |||||||
† | LaBranche & Co. | 164,160 | $ | 613,958 | |||
Lazard Class A | 17,800 | 523,320 | |||||
* | Old National Bancorp | 56,650 | 632,781 | ||||
People’s United Financial | 30,600 | 549,882 | |||||
Safety Insurance Group | 7,700 | 239,316 | |||||
* | Suffolk Bancorp | 42,645 | 1,108,343 | ||||
Willis Group Holdings | 24,800 | 545,600 | |||||
10,317,575 | |||||||
Health Care – 4.83% | |||||||
*† | AMEDISYS | 10,800 | 296,892 | ||||
* | DENTSPLY International | 19,200 | 515,520 | ||||
† | Laboratory Corp. of America Holdings | 9,000 | 526,410 | ||||
*† | LifePoint Hospitals | 33,720 | 703,399 | ||||
† | Mead Johnson Nutrition Class A | 19,900 | 574,513 | ||||
† | Natus Medical | 15,000 | 127,650 | ||||
† | RehabCare Group | 27,113 | 472,851 | ||||
Universal Health Services Class B | 14,000 | 536,760 | |||||
3,753,995 | |||||||
Real Estate – 1.07% | |||||||
Equity Lifestyle Properties | 7,500 | 285,750 | |||||
* | Healthcare Realty Trust | 36,400 | 545,636 | ||||
831,386 | |||||||
Technology – 18.95% | |||||||
† | 3Com | 374,000 | 1,155,659 | ||||
Agilysys | 36,135 | 155,381 | |||||
*† | Alliant Techsystems | 8,300 | 555,934 | ||||
† | CACI International Class A | 14,800 | 540,052 | ||||
† | Checkpoint Systems | 88,000 | 789,360 | ||||
† | CIBER | 200,725 | 547,979 | ||||
Cohu | 76,210 | 548,712 | |||||
Ducommun | 52,970 | 770,184 | |||||
† | Esterline Technologies | 11,500 | 232,185 | ||||
† | Fairchild Semiconductor International | 106,000 | 395,380 | ||||
† | Flextronics International | 379,999 | 1,098,197 | ||||
† | Gerber Scientific | 84,000 | 200,760 | ||||
Harris | 18,700 | 541,178 | |||||
† | Intermec | 51,000 | 530,400 | ||||
† | LeCroy | 50,000 | 157,000 | ||||
† | McAfee | 17,100 | 572,850 | ||||
† | Metavante Technologies | 20,700 | 413,172 | ||||
Methode Electronics | 150,708 | 539,535 | |||||
† | Novell | 145,200 | 618,552 | ||||
Rockwell Automation | 35,000 | 764,400 | |||||
† | Rudolph Technologies | 202,589 | 613,845 | ||||
† | Sybase | 18,600 | 563,394 | ||||
† | Teradyne | 96,000 | 420,480 | ||||
† | Thermo Fisher Scientific | 18,900 | 674,163 | ||||
*† | VASCO Data Security International | 130,478 | 752,858 | ||||
† | Vishay Intertechnology | 168,000 | 584,640 | ||||
14,736,250 | |||||||
Transportation – 2.19% | |||||||
Alexander & Baldwin | 29,300 | 557,579 | |||||
Robinson (C.H.) Worldwide | 5,700 | 259,977 | |||||
SkyWest | 57,860 | 719,778 | |||||
*† | YRC Worldwide | 36,700 | 164,783 | ||||
1,702,117 | |||||||
Utilities – 1.38% | |||||||
* | DPL | 23,800 | 536,452 | ||||
Wisconsin Energy | 13,000 | 535,210 | |||||
1,071,662 | |||||||
Total Common Stock | |||||||
(cost $104,438,438) | 73,392,099 | ||||||
Principal | |||||||
Amount | |||||||
Repurchase Agreements** – 5.95% | |||||||
BNP Paribas 0.08%, dated 3/31/09, | |||||||
to be repurchased on 4/1/09, | |||||||
repurchase price $4,626,010 | |||||||
(collateralized by U.S. Government | |||||||
obligations, 6/11/09-2/11/10; | |||||||
with market value $4,720,963) | $ | 4,626,000 | 4,626,000 | ||||
Total Repurchase Agreements | |||||||
(cost $4,626,000) | 4,626,000 | ||||||
Total Value of Securities Before Securities | |||||||
Lending Collateral – 100.33% | |||||||
(cost $109,064,438) | 78,018,099 | ||||||
Number of | |||||||
Shares | |||||||
Securities Lending Collateral*** – 13.76% | |||||||
Investment Companies | |||||||
Mellon GSL DBT II | |||||||
Collateral Fund | 11,062,576 | 10,695,975 | |||||
† | Mellon GSL DBT II | ||||||
Liquidation Trust | 263,528 | 26 | |||||
Total Securities Lending Collateral | |||||||
(cost $11,326,104) | 10,696,001 | ||||||
Total Value of Securities – 114.09% | |||||||
(cost $120,390,542) | 88,714,100 | © | |||||
Obligation to Return Securities | |||||||
Lending Collateral*** – (14.57%) | (11,326,104 | ) | |||||
Receivables and Other Assets | |||||||
Net of Liabilities – 0.48% | 372,175 | ||||||
Net Assets Applicable to 13,547,826 | |||||||
Shares Outstanding – 100.00% | $ | 77,760,171 |
78
Net Asset Value – Optimum Small-Mid Cap Value Fund | ||||
Class A ($4,045,181 / 710,440 Shares) | $5.69 | |||
Net Asset Value – Optimum Small-Mid Cap Value Fund | ||||
Class B ($730,692 / 133,766 Shares) | $5.46 | |||
Net Asset Value – Optimum Small-Mid Cap Value Fund | ||||
Class C ($14,811,395 / 2,712,372 Shares) | $5.46 | |||
Net Asset Value – Optimum Small-Mid Cap Value Fund | ||||
Institutional Class ($58,172,903 / 9,991,248 Shares) | $5.82 | |||
Components of Net Assets at March 31, 2009: | ||||
Shares of beneficial interest | ||||
(unlimited authorization – no par) | $ | 146,714,633 | ||
Undistributed net investment income | 177,373 | |||
Accumulated net realized loss on investments | (37,455,393 | ) | ||
Net unrealized depreciation of investments | (31,676,442 | ) | ||
Total net assets | $ | 77,760,171 |
* | Fully or partially on loan. |
† | Non income producing security. |
** | See Note 1 in “Notes to financial statements.” |
*** | See Note 11 in “Notes to financial statements.” |
© | Includes $10,643,643 of securities loaned. |
Net Asset Value and Offering Price Per Share – | ||
Optimum Small-Mid Cap Value Fund | ||
Net asset value Class A (A) | $ | 5.69 |
Sales charge (5.75% of offering price) (B) | 0.35 | |
Offering price | $ | 6.04 |
(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
79
Statements of assets and liabilities
Optimum Fund Trust
March 31, 2009
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 value1 | $ | 606,529,348 | $ | 121,546,225 | $ | 517,744,669 | $ | 487,726,787 | $ | 74,885,448 | $ | 73,392,099 | |||||
Repurchase agreements, at value | 40,449,000 | 3,760,000 | 21,890,000 | 981,000 | 1,033,000 | 4,626,000 | |||||||||||
Short-term investments held as collateral | |||||||||||||||||
for loaned securities, at value | 30,292,149 | 15,659,518 | 47,427,609 | 40,552,437 | 15,731,929 | 10,696,001 | |||||||||||
Cash | — | — | 135,199 | 117,257 | — | 22,505 | |||||||||||
Cash pledged as collateral for future contracts | 570,000 | 526,206 | — | — | — | — | |||||||||||
Foreign currencies, at value | 217,325 | 223,573 | 2 | 14 | 5,371 | — | |||||||||||
Receivables for fund shares sold | 954,705 | 258,928 | 869,600 | 813,643 | 179,446 | 185,063 | |||||||||||
Receivables for securities sold | 4,822,778 | 309,234 | 8,356,376 | 3,285,437 | 1,491,144 | 889,796 | |||||||||||
Foreign currency contracts, at value | 186,416 | 72,956 | — | — | — | — | |||||||||||
Dividends and interest receivable | 6,684,688 | 917,854 | 784,485 | 1,356,352 | 49,382 | 105,606 | |||||||||||
Securities lending income receivable | 13,923 | 18,260 | 34,404 | 19,582 | 12,028 | 7,293 | |||||||||||
Credit default swap contracts, at value | 421,911 | — | — | — | — | — | |||||||||||
Variation margin receivable on futures contracts | 1,528 | 32,440 | — | — | — | — | |||||||||||
Other assets | 43,116 | — | — | — | — | — | |||||||||||
Total assets | 691,186,887 | 143,325,194 | 597,242,344 | 534,852,509 | 93,387,748 | 89,924,363 | |||||||||||
Liabilities: | |||||||||||||||||
Cash overdraft | 86,561 | 164,496 | — | — | 880 | — | |||||||||||
Payables for securities purchased | 19,354,538 | 511,438 | 7,260,183 | 1,357,591 | 583,597 | 572,475 | |||||||||||
Payables for fund shares redeemed | 1,912,136 | 240,490 | 946,420 | 809,945 | 139,890 | 123,744 | |||||||||||
Foreign currency contracts, at value | 233,181 | — | 127 | 867 | — | — | |||||||||||
Written options, at value (premium | |||||||||||||||||
received $7,013) | 1,454 | — | — | — | — | — | |||||||||||
Obligation to return securities lending collateral | 32,569,640 | 16,852,791 | 50,326,189 | 43,005,410 | 16,767,894 | 11,326,104 | |||||||||||
Accrued protection payments on credit | |||||||||||||||||
default swaps | 9,216 | — | — | — | — | — | |||||||||||
Distributions payable | 2,143 | — | — | — | — | — | |||||||||||
Due to manager and affiliates | 563,172 | 143,806 | 604,820 | 515,410 | 83,862 | 74,765 | |||||||||||
Other accrued expenses | 199,910 | 119,411 | 169,532 | 156,572 | 83,336 | 66,456 | |||||||||||
Other liabilities | 3,203 | 725 | 1,135 | 1,778 | 745 | 648 | |||||||||||
Total liabilities | 54,935,154 | 18,033,157 | 59,308,406 | 45,847,573 | 17,660,204 | 12,164,192 | |||||||||||
Total Net Assets | $ | 636,251,733 | $ | 125,292,037 | $ | 537,933,938 | $ | 489,004,936 | $ | 75,727,544 | $ | 77,760,171 | |||||
Investments, at cost | $ | 698,868,444 | $ | 160,184,676 | $ | 595,250,550 | $ | 729,994,244 | $ | 97,543,217 | $ | 104,438,438 | |||||
Repurchase agreements, at cost | 40,449,000 | 3,760,000 | 21,890,000 | 981,000 | 1,033,000 | 4,626,000 | |||||||||||
Short-term investments held as collateral | |||||||||||||||||
for loaned securities, at cost | 32,569,040 | 16,852,791 | 50,326,189 | 43,005,410 | 16,767,894 | 11,326,104 | |||||||||||
Foreign currencies, at cost | 223,679 | 226,096 | 2 | 14 | 5,410 | — | |||||||||||
1including securities on loan | 30,673,144 | 15,320,036 | 47,652,426 | 39,752,242 | 15,585,726 | 10,643,643 |
See accompanying notes
80
Statements of operations
Optimum Fund Trust
Year Ended March 31, 2009
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | ||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | ||||||||||||||||||
Investment Income: | |||||||||||||||||||||||
Dividends | $ | 228,326 | $ | 9,836,419 | $ | 11,850,556 | $ | 23,126,267 | $ | 772,464 | $ | 1,540,104 | |||||||||||
Interest | 54,282,453 | 138,885 | 559,602 | 346,121 | 17,243 | 105,372 | |||||||||||||||||
Securities lending income | 604,311 | 446,027 | 704,753 | 653,505 | 294,713 | 158,046 | |||||||||||||||||
Foreign tax withheld | — | (983,945 | ) | (198,566 | ) | (120,172 | ) | (6,693 | ) | (4,793 | ) | ||||||||||||
55,115,090 | 9,437,386 | 12,916,345 | 24,005,721 | 1,077,727 | 1,798,729 | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Management fees | 4,881,995 | 1,714,748 | 6,105,009 | 5,146,100 | 1,256,541 | 988,474 | |||||||||||||||||
Distribution expenses – Class A | 187,052 | 57,515 | 147,573 | 142,893 | 26,213 | 24,064 | |||||||||||||||||
Distribution expenses – Class B | 73,400 | 30,059 | 71,938 | 71,629 | 12,763 | 12,555 | |||||||||||||||||
Distribution expenses – Class C | 2,174,638 | 606,174 | 1,578,050 | 1,565,205 | 269,067 | 250,549 | |||||||||||||||||
Dividend disbursing and transfer agent | |||||||||||||||||||||||
fees and expenses | 2,130,709 | 693,671 | 2,110,824 | 1,874,247 | 465,714 | 424,197 | |||||||||||||||||
Administration expenses | 1,288,051 | 350,618 | 1,248,119 | 1,121,312 | 188,481 | 156,152 | |||||||||||||||||
Accounting fees | 330,957 | 84,563 | 320,456 | 283,579 | 45,472 | 37,681 | |||||||||||||||||
Registration fees | 169,645 | 98,808 | 170,001 | 162,840 | 90,928 | 84,515 | |||||||||||||||||
Reports and statements to shareholders | 154,326 | 28,113 | 131,869 | 91,776 | 62,591 | 11,737 | |||||||||||||||||
Professional fees | 145,698 | 54,462 | 117,262 | 102,104 | 43,875 | 42,602 | |||||||||||||||||
Trustees’ fees | 113,593 | 27,562 | 105,539 | 93,982 | 15,096 | 12,465 | |||||||||||||||||
Custodian fees | 65,459 | 142,563 | 61,087 | 30,423 | 12,282 | 3,817 | |||||||||||||||||
Pricing fees | 54,021 | 17,202 | 2,748 | 1,728 | 2,044 | 1,061 | |||||||||||||||||
Insurance fees | 38,944 | 10,420 | 36,401 | 34,171 | 5,477 | 4,561 | |||||||||||||||||
Other | 13,669 | 7,317 | 13,625 | 10,544 | 6,005 | 5,656 | |||||||||||||||||
11,822,157 | 3,923,795 | 12,220,501 | 10,732,533 | 2,502,549 | 2,060,086 | ||||||||||||||||||
Less fees waived | (1,933,028 | ) | (195,364 | ) | (239,830 | ) | (438,555 | ) | (413,775 | ) | (442,507 | ) | |||||||||||
Less expense paid indirectly | (33,786 | ) | (354 | ) | (3,017 | ) | (5,416 | ) | (3,454 | ) | (1,057 | ) | |||||||||||
Total operating expenses | 9,855,343 | 3,728,077 | 11,977,654 | 10,288,562 | 2,085,320 | 1,616,522 | |||||||||||||||||
Net Investment Income (Loss) | 45,259,747 | 5,709,309 | 938,691 | 13,717,159 | (1,007,593 | ) | 182,207 | ||||||||||||||||
Net Realized and Unrealized Gain (Loss) on | |||||||||||||||||||||||
Investments and Foreign Currencies: | |||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||
Investments | (37,896,766 | ) | (70,985,995 | ) | (240,823,181 | ) | (129,349,398 | ) | (34,411,013 | ) | (35,907,840 | ) | |||||||||||
Futures contracts | (337,408 | ) | (1,446,150 | ) | — | — | — | — | |||||||||||||||
Swap contracts | 1,369,352 | — | — | — | — | — | |||||||||||||||||
Written options | 935,995 | — | — | — | — | — | |||||||||||||||||
Foreign currencies | 510,128 | 1,063,227 | (157,216 | ) | (26,037 | ) | 3,851 | — | |||||||||||||||
Net realized loss | (35,418,699 | ) | (71,368,918 | ) | (240,980,397 | ) | (129,375,435 | ) | (34,407,162 | ) | (35,907,840 | ) | |||||||||||
Net change in unrealized appreciation/depreciation | |||||||||||||||||||||||
of investments and foreign currencies | (82,939,229 | ) | (63,546,680 | ) | (133,409,382 | ) | (229,960,349 | ) | (19,400,809 | ) | (17,180,970 | ) | |||||||||||
Net Realized and Unrealized Loss on | |||||||||||||||||||||||
Investments and Foreign Currencies | (118,357,928 | ) | (134,915,598 | ) | (374,389,779 | ) | (359,335,784 | ) | (53,807,971 | ) | (53,088,810 | ) | |||||||||||
Net Decrease in Net Assets | |||||||||||||||||||||||
Resulting from Operations | $ | (73,098,181 | ) | $ | (129,206,289 | ) | $ | (373,451,088 | ) | $ | (345,618,625 | ) | $ | (54,815,564 | ) | $ | (52,906,603 | ) |
See accompanying notes
81
Statements of changes in net assets
Optimum Fund Trust
Optimum Fixed Income Fund | Optimum International Fund | ||||||||||||||
Year Ended | Year Ended | ||||||||||||||
3/31/09 | 3/31/08 | 3/31/09 | 3/31/08 | ||||||||||||
Increase (Decrease) in Net Assets from Operations: | |||||||||||||||
Net investment income | $ | 45,259,747 | $ | 38,945,982 | $ | 5,709,309 | $ | 5,069,917 | |||||||
Net realized gain (loss) on investments and foreign currencies | (35,418,699 | ) | 12,617,654 | (71,368,918 | ) | 18,453,208 | |||||||||
Net change in unrealized appreciation/depreciation of investments | |||||||||||||||
and foreign currencies | (82,939,229 | ) | (18,721,227 | ) | (63,546,680 | ) | (37,113,580 | ) | |||||||
Net increase (decrease) in net assets resulting from operations | (73,098,181 | ) | 32,842,409 | (129,206,289 | ) | (13,590,455 | ) | ||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||
Net investment income: | |||||||||||||||
Class A | (2,815,733 | ) | (2,646,846 | ) | (493,786 | ) | (189,722 | ) | |||||||
Class B | (338,536 | ) | (320,455 | ) | (70,734 | ) | (11,832 | ) | |||||||
Class C | (10,040,182 | ) | (8,955,345 | ) | (1,430,805 | ) | (231,986 | ) | |||||||
Institutional Class | (32,218,868 | ) | (26,434,885 | ) | (4,568,363 | ) | (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 | ) | |||||||
(48,251,466 | ) | (45,956,588 | ) | (11,291,883 | ) | (21,703,029 | ) | ||||||||
Capital Share Transactions: | |||||||||||||||
Proceeds from shares sold: | |||||||||||||||
Class A | 6,623,498 | 14,435,397 | 2,313,214 | 3,911,302 | |||||||||||
Class B | 219,675 | 595,022 | 82,515 | 98,087 | |||||||||||
Class C | 27,432,690 | 65,517,471 | 8,001,047 | 15,823,329 | |||||||||||
Institutional Class | 184,532,148 | 286,862,984 | 42,881,265 | 72,567,219 | |||||||||||
Net asset value of shares issued upon reinvestment of dividends | |||||||||||||||
and distributions: | |||||||||||||||
Class A | 2,946,630 | 3,100,810 | 846,619 | 1,799,221 | |||||||||||
Class B | 347,873 | 381,274 | 136,079 | 322,331 | |||||||||||
Class C | 10,523,332 | 10,822,039 | 2,774,434 | 6,233,115 | |||||||||||
Institutional Class | 33,212,241 | 30,570,046 | 7,383,252 | 13,070,704 | |||||||||||
265,838,087 | 412,285,043 | 64,418,425 | 113,825,308 | ||||||||||||
Cost of shares repurchased: | |||||||||||||||
Class A | (25,792,318 | ) | (12,098,669 | ) | (5,873,329 | ) | (5,478,936 | ) | |||||||
Class B | (2,825,370 | ) | (1,637,721 | ) | (707,047 | ) | (730,248 | ) | |||||||
Class C | (106,393,836 | ) | (42,458,019 | ) | (21,017,796 | ) | (18,875,450 | ) | |||||||
Institutional Class | (300,003,025 | ) | (165,647,750 | ) | (57,589,007 | ) | (43,335,971 | ) | |||||||
(435,014,549 | ) | (221,842,159 | ) | (85,187,179 | ) | (68,420,605 | ) | ||||||||
Increase (decrease) in net assets derived from capital share transactions | (169,176,462 | ) | 190,442,884 | (20,768,754 | ) | 45,404,703 | |||||||||
Net Increase (Decrease) in Net Assets | (290,526,109 | ) | 177,328,705 | (161,266,926 | ) | 10,111,219 | |||||||||
Net Assets: | |||||||||||||||
Beginning of year | 926,777,842 | 749,449,137 | 286,558,963 | 276,447,744 | |||||||||||
End of year | $ | 636,251,733 | $ | 926,777,842 | $ | 125,292,037 | $ | 286,558,963 | |||||||
Undistributed net investment income | $ | 7,470,433 | $ | 8,266,779 | $ | 1,631,936 | $ | 1,994,097 |
See accompanying notes
82
Optimum Large Cap Growth Fund | Optimum Large Cap Value Fund | ||||||||||||||
Year Ended | Year Ended | ||||||||||||||
3/31/09 | 3/31/08 | 3/31/09 | 3/31/08 | ||||||||||||
Increase (Decrease) in Net Assets from Operations: | |||||||||||||||
Net investment income (loss) | $ | 938,691 | $ | (878,571 | ) | $ | 13,717,159 | $ | 10,314,552 | ||||||
Net realized gain (loss) on investments and foreign currencies | (240,980,397 | ) | (1,111,008 | ) | (129,375,435 | ) | 38,298,471 | ||||||||
Net change in unrealized appreciation/depreciation of investments | |||||||||||||||
and foreign currencies | (133,409,382 | ) | (48,271,448 | ) | (229,960,349 | ) | (117,063,900 | ) | |||||||
Net decrease in net assets resulting from operations | (373,451,088 | ) | (50,261,027 | ) | (345,618,625 | ) | (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 | 7,422,542 | 11,236,759 | 6,566,676 | 10,589,119 | |||||||||||
Class B | 378,005 | 353,506 | 308,821 | 292,083 | |||||||||||
Class C | 24,408,305 | 46,004,662 | 22,022,257 | 44,680,367 | |||||||||||
Institutional Class | 175,624,121 | 352,905,856 | 177,257,043 | 261,214,984 | |||||||||||
Net asset value of shares issued upon reinvestment of dividends | |||||||||||||||
and distributions: | |||||||||||||||
Class A | — | 1,601,503 | 790,219 | 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 | |||||||||||
207,832,973 | 435,583,553 | 219,905,241 | 370,734,024 | ||||||||||||
Cost of shares repurchased: | |||||||||||||||
Class A | (14,146,760 | ) | (10,926,086 | ) | (13,441,430 | ) | (11,557,514 | ) | |||||||
Class B | (1,682,655 | ) | (1,424,579 | ) | (1,682,955 | ) | (1,479,221 | ) | |||||||
Class C | (52,996,172 | ) | (35,449,190 | ) | (53,211,184 | ) | (38,254,240 | ) | |||||||
Institutional Class | (217,730,097 | ) | (111,018,222 | ) | (178,721,590 | ) | (114,719,796 | ) | |||||||
(286,555,684 | ) | (158,818,077 | ) | (247,057,159 | ) | (166,010,771 | ) | ||||||||
Increase (decrease) in net assets derived from capital share transactions | (78,722,711 | ) | 276,765,476 | (27,151,918 | ) | 204,723,253 | |||||||||
Net Increase (Decrease) in Net Assets | (452,173,799 | ) | 201,101,059 | (386,684,201 | ) | 81,597,670 | |||||||||
Net Assets: | |||||||||||||||
Beginning of year | 990,107,737 | 789,006,678 | 875,689,137 | 794,091,467 | |||||||||||
End of year | $ | 537,933,938 | $ | 990,107,737 | $ | 489,004,936 | $ | 875,689,137 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 663,683 | $ | (117,792 | ) | $ | 13,594,842 | $ | 2,500,621 |
See accompanying notes
(continues) 83
Statements of changes in net assets
Optimum Fund Trust
Optimum Small-Mid Cap Growth Fund | Optimum Small-Mid Cap Value Fund | ||||||||||||||
Year Ended | Year Ended | ||||||||||||||
3/31/09 | 3/31/08 | 3/31/09 | 3/31/08 | ||||||||||||
Increase (Decrease) in Net Assets from Operations: | |||||||||||||||
Net investment income (loss) | $ | (1,007,593 | ) | $ | (1,894,246 | ) | $ | 182,207 | $ | (261,575 | ) | ||||
Net realized gain (loss) on investments | (34,407,162 | ) | 2,123,424 | (35,907,840 | ) | 6,418,795 | |||||||||
Net change in unrealized appreciation/depreciation of investments | (19,400,809 | ) | (26,799,380 | ) | (17,180,970 | ) | (28,485,141 | ) | |||||||
Net decrease in net assets resulting from operations | (54,815,564 | ) | (26,570,202 | ) | (52,906,603 | ) | (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 | 1,537,008 | 1,996,981 | 1,328,927 | 1,579,999 | |||||||||||
Class B | 76,663 | 44,255 | 70,326 | 46,917 | |||||||||||
Class C | 4,919,070 | 8,156,460 | 4,307,673 | 6,594,307 | |||||||||||
Institutional Class | 29,232,627 | 43,794,668 | 50,305,391 | 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 | |||||||||||
35,765,368 | 61,172,684 | 56,200,299 | 48,646,110 | ||||||||||||
Cost of shares repurchased: | |||||||||||||||
Class A | (2,529,586 | ) | (2,920,642 | ) | (2,789,717 | ) | (3,141,056 | ) | |||||||
Class B | (294,311 | ) | (287,031 | ) | (296,932 | ) | (293,314 | ) | |||||||
Class C | (9,494,543 | ) | (7,352,657 | ) | (8,872,916 | ) | (8,306,564 | ) | |||||||
Institutional Class | (28,506,205 | ) | (20,692,762 | ) | (23,712,202 | ) | (21,722,296 | ) | |||||||
(40,824,645 | ) | (31,253,092 | ) | (35,671,767 | ) | (33,463,230 | ) | ||||||||
Increase (decrease) in net assets derived from capital share transactions | (5,059,277 | ) | 29,919,592 | 20,528,532 | 15,182,880 | ||||||||||
Net Decrease in Net Assets | (59,874,841 | ) | (3,930,160 | ) | (32,568,667 | ) | (17,639,915 | ) | |||||||
Net Assets: | |||||||||||||||
Beginning of year | 135,602,385 | 139,532,545 | 110,328,838 | 127,968,753 | |||||||||||
End of year | $ | 75,727,544 | $ | 135,602,385 | $ | 77,760,171 | $ | 110,328,838 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (949 | ) | $ | — | $ | 177,373 | $ | — |
See accompanying notes
84
Financial highlights
Optimum Fixed Income Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | |||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||
Net asset value, beginning of period | $8.930 | $9.050 | $8.740 | $8.890 | $8.980 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income1 | 0.449 | 0.402 | 0.399 | 0.316 | 0.279 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (1.140 | ) | (0.066 | ) | 0.255 | (0.199 | ) | (0.061 | ) | ||||||
Total from investment operations | (0.691 | ) | 0.336 | 0.654 | 0.117 | 0.218 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.462 | ) | (0.380 | ) | (0.344 | ) | (0.253 | ) | (0.228 | ) | |||||
Net realized gain on investments | (0.027 | ) | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | ||||||
Total dividends and distributions | (0.489 | ) | (0.456 | ) | (0.344 | ) | (0.267 | ) | (0.308 | ) | |||||
Net asset value, end of period | $7.750 | $8.930 | $9.050 | $8.740 | $8.890 | ||||||||||
Total return2 | (7.82% | ) | 3.78% | 7.58% | 1.31% | 2.59% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $39,299 | $63,262 | $58,691 | $47,956 | $33,251 | ||||||||||
Ratio of expenses to average net assets | 1.24% | 1.24% | 1.25% | 1.25% | 1.24% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to fees waived and expense paid indirectly | 1.47% | 1.43% | 1.61% | 1.67% | 1.70% | ||||||||||
Ratio of net investment income to average net assets | 5.38% | 4.44% | 4.48% | 3.55% | 3.12% | ||||||||||
Ratio of net investment income to average net assets | |||||||||||||||
prior to fees waived and expense paid indirectly | 5.15% | 4.25% | 4.12% | 3.13% | 2.66% | ||||||||||
Portfolio turnover | 158% | 256% | 238% | 298% | 352% |
1 The average shares outstanding method has been applied for per share information. | |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 85
Financial highlights
Optimum Fixed Income Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | |||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||
Net asset value, beginning of period | $8.930 | $9.060 | $8.740 | $8.900 | $8.990 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income1 | 0.395 | 0.343 | 0.342 | 0.258 | 0.221 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (1.140 | ) | (0.076 | ) | 0.264 | (0.209 | ) | (0.055 | ) | ||||||
Total from investment operations | (0.745 | ) | 0.267 | 0.606 | 0.049 | 0.166 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.408 | ) | (0.321 | ) | (0.286 | ) | (0.195 | ) | (0.176 | ) | |||||
Net realized gain on investments | (0.027 | ) | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | ||||||
Total dividends and distributions | (0.435 | ) | (0.397 | ) | (0.286 | ) | (0.209 | ) | (0.256 | ) | |||||
Net asset value, end of period | $7.750 | $8.930 | $9.060 | $8.740 | $8.900 | ||||||||||
Total return2 | (8.42% | ) | 2.99% | 7.01% | 0.54% | 1.88% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $5,483 | $8,788 | $9,568 | $9,278 | $8,405 | ||||||||||
Ratio of expenses to average net assets | 1.89% | 1.89% | 1.90% | 1.90% | 1.89% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to fees waived and expense paid indirectly | 2.12% | 2.08% | 2.26% | 2.32% | 2.35% | ||||||||||
Ratio of net investment income to average net assets | 4.73% | 3.79% | 3.83% | 2.90% | 2.47% | ||||||||||
Ratio of net investment income to average net assets | |||||||||||||||
prior to fees waived and expense paid indirectly | 4.50% | 3.60% | 3.47% | 2.48% | 2.01% | ||||||||||
Portfolio turnover | 158% | 256% | 238% | 298% | 352% |
1 The average shares outstanding method has been applied for per share information. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
86
Optimum Fixed Income Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | |||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | |||||||||||
Net asset value, beginning of period | $8.940 | $9.060 | $8.750 | $8.900 | $8.990 | ||||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income1 | 0.395 | 0.343 | 0.341 | 0.258 | 0.221 | ||||||||||
Net realized and unrealized gain (loss) on investments | |||||||||||||||
and foreign currencies | (1.140 | ) | (0.066 | ) | 0.255 | (0.199 | ) | (0.055 | ) | ||||||
Total from investment operations | (0.745 | ) | 0.277 | 0.596 | 0.059 | 0.166 | |||||||||
Less dividends and distributions from: | |||||||||||||||
Net investment income | (0.408 | ) | (0.321 | ) | (0.286 | ) | (0.195 | ) | (0.176 | ) | |||||
Net realized gain on investments | (0.027 | ) | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | ||||||
Total dividends and distributions | (0.435 | ) | (0.397 | ) | (0.286 | ) | (0.209 | ) | (0.256 | ) | |||||
Net asset value, end of period | $7.760 | $8.940 | $9.060 | $8.750 | $8.900 | ||||||||||
Total return2 | (8.41% | ) | 3.11% | 6.88% | 0.65% | 1.88% | |||||||||
Ratios and supplemental data: | |||||||||||||||
Net assets, end of period (000 omitted) | $157,185 | $257,340 | $227,036 | $186,869 | $125,301 | ||||||||||
Ratio of expenses to average net assets | 1.89% | 1.89% | 1.90% | 1.90% | 1.89% | ||||||||||
Ratio of expenses to average net assets | |||||||||||||||
prior to fees waived and expense paid indirectly | 2.12% | 2.08% | 2.26% | 2.32% | 2.35% | ||||||||||
Ratio of net investment income to average net assets | 4.73% | 3.79% | 3.83% | 2.90% | 2.47% | ||||||||||
Ratio of net investment income to average net assets | |||||||||||||||
prior to fees waived and expense paid indirectly | 4.50% | 3.60% | 3.47% | 2.48% | 2.01% | ||||||||||
Portfolio turnover | 158% | 256% | 238% | 298% | 352% |
1 The average shares outstanding method has been applied for per share information. |
2 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) 87
Financial highlights
Optimum Fixed Income Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $8.920 | $9.050 | $8.730 | $8.890 | $8.970 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income1 | 0.479 | 0.434 | 0.431 | 0.348 | 0.310 | |||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (1.141 | ) | (0.076 | ) | 0.265 | (0.209 | ) | (0.050 | ) | |||||||
Total from investment operations | (0.662 | ) | 0.358 | 0.696 | 0.139 | 0.260 | ||||||||||
Less dividends and distributions from: | ||||||||||||||||
Net investment income | (0.491 | ) | (0.412 | ) | (0.376 | ) | (0.285 | ) | (0.260 | ) | ||||||
Net realized gain on investments | (0.027 | ) | (0.076 | ) | — | (0.014 | ) | (0.080 | ) | |||||||
Total dividends and distributions | (0.518 | ) | (0.488 | ) | (0.376 | ) | (0.299 | ) | (0.340 | ) | ||||||
Net asset value, end of period | $7.740 | $8.920 | $9.050 | $8.730 | $8.890 | |||||||||||
Total return2 | (7.51% | ) | 4.04% | 8.09% | 1.56% | 2.96% | ||||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $434,285 | $597,388 | $454,154 | $309,363 | $153,085 | |||||||||||
Ratio of expenses to average net assets | 0.89% | 0.89% | 0.90% | 0.90% | 0.89% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.12% | 1.08% | 1.26% | 1.32% | 1.35% | |||||||||||
Ratio of net investment income to average net assets | 5.73% | 4.79% | 4.83% | 3.90% | 3.47% | |||||||||||
Ratio of net investment income to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 5.50% | 4.60% | 4.47% | 3.48% | 3.01% | |||||||||||
Portfolio turnover | 158% | 256% | 238% | 298% | 352% |
1 The average shares outstanding method has been applied for per share information. |
2 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
88
Optimum International Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $13.840 | $15.490 | $13.470 | $11.660 | $10.670 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income1 | 0.280 | 0.262 | 0.112 | 0.180 | 0.050 | |||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (6.557 | ) | (0.798 | ) | 2.661 | 2.456 | 1.069 | |||||||||
Total from investment operations | (6.277 | ) | (0.536 | ) | 2.773 | 2.636 | 1.119 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net investment income | (0.326 | ) | (0.116 | ) | (0.172 | ) | (0.074 | ) | — | |||||||
Net realized gain on investments | (0.227 | ) | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | ||||||
Total dividends and distributions | (0.553 | ) | (1.114 | ) | (0.753 | ) | (0.826 | ) | (0.129 | ) | ||||||
Net asset value, end of period | $7.010 | $13.840 | $15.490 | $13.470 | $11.660 | |||||||||||
Total return2 | (46.64% | ) | (3.96% | ) | 21.26% | 23.54% | 10.62% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $9,578 | $22,971 | $25,523 | $20,247 | $11,300 | |||||||||||
Ratio of expenses to average net assets | 1.77% | 1.75% | 1.96% | 1.96% | 1.98% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.86% | 1.75% | 1.96% | 2.20% | 2.30% | |||||||||||
Ratio of net investment income to average net assets | 2.66% | 1.69% | 0.78% | 1.47% | 0.45% | |||||||||||
Ratio of net investment income to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.57% | 1.69% | 0.78% | 1.23% | 0.13% | |||||||||||
Portfolio turnover | 58% | 19% | 18% | 68% | 82% |
1 The average shares outstanding method has been applied for per share information. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 89
Financial highlights
Optimum International Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $13.580 | $15.240 | $13.290 | $11.530 | $10.620 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss)1 | 0.213 | 0.163 | 0.021 | 0.102 | (0.020 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (6.436 | ) | (0.787 | ) | 2.614 | 2.426 | 1.059 | |||||||||
Total from investment operations | (6.223 | ) | (0.624 | ) | 2.635 | 2.528 | 1.039 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net investment income | (0.250 | ) | (0.038 | ) | (0.104 | ) | (0.016 | ) | — | |||||||
Net realized gain on investments | (0.227 | ) | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | ||||||
Total dividends and distributions | (0.477 | ) | (1.036 | ) | (0.685 | ) | (0.768 | ) | (0.129 | ) | ||||||
Net asset value, end of period | $6.880 | $13.580 | $15.240 | $13.290 | $11.530 | |||||||||||
Total return2 | (47.02% | ) | (4.59% | ) | 20.44% | 22.81% | 9.91% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $1,764 | $4,203 | $5,031 | $4,594 | $3,386 | |||||||||||
Ratio of expenses to average net assets | 2.42% | 2.40% | 2.61% | 2.61% | 2.63% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.51% | 2.40% | 2.61% | 2.85% | 2.95% | |||||||||||
Ratio of net investment income (loss) to average net assets | 2.01% | 1.04% | 0.13% | 0.82% | (0.20% | ) | ||||||||||
Ratio of net investment income (loss) to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.92% | 1.04% | 0.13% | 0.58% | (0.52% | ) | ||||||||||
Portfolio turnover | 58% | 19% | 18% | 68% | 82% |
1 The average shares outstanding method has been applied for per share information. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
90
Optimum International Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $13.590 | $15.250 | $13.290 | $11.540 | $10.620 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss)1 | 0.213 | 0.163 | 0.021 | 0.102 | (0.020 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (6.436 | ) | (0.787 | ) | 2.624 | 2.416 | 1.069 | |||||||||
Total from investment operations | (6.223 | ) | (0.624 | ) | 2.645 | 2.518 | 1.049 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net investment income | (0.250 | ) | (0.038 | ) | (0.104 | ) | (0.016 | ) | — | |||||||
Net realized gain on investments | (0.227 | ) | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | ||||||
Total dividends and distributions | (0.477 | ) | (1.036 | ) | (0.685 | ) | (0.768 | ) | (0.129 | ) | ||||||
Net asset value, end of period | $6.890 | $13.590 | $15.250 | $13.290 | $11.540 | |||||||||||
Total return2 | (46.98% | ) | (4.59% | ) | 20.51% | 22.69% | 10.01% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $34,520 | $84,431 | $91,696 | $70,828 | $38,517 | |||||||||||
Ratio of expenses to average net assets | 2.42% | 2.40% | 2.61% | 2.61% | 2.63% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.51% | 2.40% | 2.61% | 2.85% | 2.95% | |||||||||||
Ratio of net investment income (loss) to average net assets | 2.01% | 1.04% | 0.13% | 0.82% | (0.20% | ) | ||||||||||
Ratio of net investment income (loss) to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.92% | 1.04% | 0.13% | 0.58% | (0.52% | ) | ||||||||||
Portfolio turnover | 58% | 19% | 18% | 68% | 82% |
1 The average shares outstanding method has been applied for per share information. |
2 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) 91
Financial highlights
Optimum International Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $13.940 | $15.590 | $13.550 | $11.720 | $10.690 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income1 | 0.317 | 0.317 | 0.162 | 0.224 | 0.089 | |||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (6.611 | ) | (0.797 | ) | 2.679 | 2.464 | 1.079 | |||||||||
Total from investment operations | (6.294 | ) | (0.480 | ) | 2.841 | 2.688 | 1.168 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net investment income | (0.369 | ) | (0.172 | ) | (0.220 | ) | (0.106 | ) | (0.009 | ) | ||||||
Net realized gain on investments | (0.227 | ) | (0.998 | ) | (0.581 | ) | (0.752 | ) | (0.129 | ) | ||||||
Total dividends and distributions | (0.596 | ) | (1.170 | ) | (0.801 | ) | (0.858 | ) | (0.138 | ) | ||||||
Net asset value, end of period | $7.050 | $13.940 | $15.590 | $13.550 | $11.720 | |||||||||||
Total return2 | (46.49% | ) | (3.59% | ) | 21.68% | 23.91% | 11.08% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $79,430 | $174,954 | $154,198 | $99,733 | $44,149 | |||||||||||
Ratio of expenses to average net assets | 1.42% | 1.40% | 1.61% | 1.61% | 1.63% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.51% | 1.40% | 1.61% | 1.85% | 1.95% | |||||||||||
Ratio of net investment income to average net assets | 3.01% | 2.04% | 1.13% | 1.82% | 0.80% | |||||||||||
Ratio of net investment income to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.92% | 2.04% | 1.13% | 1.58% | 0.48% | |||||||||||
Portfolio turnover | 58% | 19% | 18% | 68% | 82% |
1 The average shares outstanding method has been applied for per share information. |
2 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
92
Optimum Large Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $11.220 | $11.980 | $11.540 | $10.020 | $9.570 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.001 | ) | (0.021 | ) | (0.047 | ) | (0.057 | ) | (0.036 | ) | ||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (4.229 | ) | (0.406 | ) | 0.692 | 1.577 | 0.486 | |||||||||
Total from investment operations | (4.230 | ) | (0.427 | ) | 0.645 | 1.520 | 0.450 | |||||||||
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 | $6.990 | $11.220 | $11.980 | $11.540 | $10.020 | |||||||||||
Total return2 | (37.70% | ) | (3.86% | ) | 5.75% | 15.17% | 4.70% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $28,347 | $54,022 | $56,088 | $47,283 | $26,252 | |||||||||||
Ratio of expenses to average net assets | 1.61% | 1.60% | 1.69% | 1.69% | 1.67% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.64% | 1.60% | 1.77% | 1.84% | 1.87% | |||||||||||
Ratio of net investment loss to average net assets | (0.01% | ) | (0.17% | ) | (0.41% | ) | (0.52% | ) | (0.37% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (0.04% | ) | (0.17% | ) | (0.49% | ) | (0.67% | ) | (0.57% | ) | ||||||
Portfolio turnover | 164% | 59% | 37% | 48% | 37% |
1 The average shares outstanding method has been applied for per share information. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 93
Financial highlights
Optimum Large Cap Growth Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $10.870 | $11.700 | $11.340 | $9.910 | $9.530 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.059 | ) | (0.100 | ) | (0.119 | ) | (0.126 | ) | (0.099 | ) | ||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (4.081 | ) | (0.397 | ) | 0.684 | 1.556 | 0.479 | |||||||||
Total from investment operations | (4.140 | ) | (0.497 | ) | 0.565 | 1.430 | 0.380 | |||||||||
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 | $6.730 | $10.870 | $11.700 | $11.340 | $9.910 | |||||||||||
Total return2 | (38.09% | ) | (4.56% | ) | 5.14% | 14.43% | 3.99% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $4,780 | $9,345 | $10,819 | $10,168 | $7,603 | |||||||||||
Ratio of expenses to average net assets | 2.26% | 2.25% | 2.34% | 2.34% | 2.32% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.29% | 2.25% | 2.42% | 2.49% | 2.52% | |||||||||||
Ratio of net investment loss to average net assets | (0.66% | ) | (0.82% | ) | (1.06% | ) | (1.17% | ) | (1.02% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (0.69% | ) | (0.82% | ) | (1.14% | ) | (1.32% | ) | (1.22% | ) | ||||||
Portfolio turnover | 164% | 59% | 37% | 48% | 37% |
1 The average shares outstanding method has been applied for per share information. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
94
Optimum Large Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $10.870 | $11.700 | $11.340 | $9.910 | $9.530 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.059 | ) | (0.100 | ) | (0.119 | ) | (0.126 | ) | (0.099 | ) | ||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (4.081 | ) | (0.397 | ) | 0.684 | 1.556 | 0.479 | |||||||||
Total from investment operations | (4.140 | ) | (0.497 | ) | 0.565 | 1.430 | 0.380 | |||||||||
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 | $6.730 | $10.870 | $11.700 | $11.340 | $9.910 | |||||||||||
Total return2 | (38.09% | ) | (4.56% | ) | 5.14% | 14.43% | 3.99% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $102,233 | $203,394 | $203,591 | $164,995 | $91,434 | |||||||||||
Ratio of expenses to average net assets | 2.26% | 2.25% | 2.34% | 2.34% | 2.32% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.29% | 2.25% | 2.42% | 2.49% | 2.52% | |||||||||||
Ratio of net investment loss to average net assets | (0.66% | ) | (0.82% | ) | (1.06% | ) | (1.17% | ) | (1.02% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (0.69% | ) | (0.82% | ) | (1.14% | ) | (1.32% | ) | (1.22% | ) | ||||||
Portfolio turnover | 164% | 59% | 37% | 48% | 37% |
1 The average shares outstanding method has been applied for per share information. |
2 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) 95
Financial highlights
Optimum Large Cap Growth Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $11.410 | $12.140 | $11.650 | $10.080 | $9.590 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss)1 | 0.032 | 0.023 | (0.006 | ) | (0.019 | ) | (0.002 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (4.312 | ) | (0.420 | ) | 0.701 | 1.589 | 0.492 | |||||||||
Total from investment operations | (4.280 | ) | (0.397 | ) | 0.695 | 1.570 | 0.490 | |||||||||
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 | $7.130 | $11.410 | $12.140 | $11.650 | $10.080 | |||||||||||
Total return2 | (37.51% | ) | (3.56% | ) | 6.13% | 15.57% | 5.11% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $402,574 | $723,347 | $518,509 | $355,961 | $158,200 | |||||||||||
Ratio of expenses to average net assets | 1.26% | 1.25% | 1.34% | 1.34% | 1.32% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.29% | 1.25% | 1.42% | 1.49% | 1.52% | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.34% | 0.18% | (0.06% | ) | (0.17% | ) | (0.02% | ) | ||||||||
Ratio of net investment income (loss) to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 0.31% | 0.18% | (0.14% | ) | (0.32% | ) | (0.22% | ) | ||||||||
Portfolio turnover | 164% | 59% | 37% | 48% | 37% |
1 The average shares outstanding method has been applied for per share information. |
2 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
96
Optimum Large Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $11.170 | $12.730 | $11.320 | $10.840 | $9.830 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income1 | 0.165 | 0.138 | 0.128 | 0.092 | 0.074 | |||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (4.453 | ) | (0.931 | ) | 1.614 | 0.947 | 1.100 | |||||||||
Total from investment operations | (4.288 | ) | (0.793 | ) | 1.742 | 1.039 | 1.174 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net investment income | (0.029 | ) | (0.134 | ) | (0.104 | ) | (0.065 | ) | (0.028 | ) | ||||||
Net realized gain on investments | (0.143 | ) | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | ||||||
Total dividends and distributions | (0.172 | ) | (0.767 | ) | (0.332 | ) | (0.559 | ) | (0.164 | ) | ||||||
Net asset value, end of period | $6.710 | $11.170 | $12.730 | $11.320 | $10.840 | |||||||||||
Total return2 | (38.97% | ) | (6.80% | ) | 15.65% | 9.82% | 12.04% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $26,901 | $53,097 | $58,161 | $45,666 | $27,524 | |||||||||||
Ratio of expenses to average net assets | 1.54% | 1.54% | 1.55% | 1.55% | 1.53% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.60% | 1.56% | 1.73% | 1.83% | 1.84% | |||||||||||
Ratio of net investment income to average net assets | 1.82% | 1.09% | 1.07% | 0.83% | 0.72% | |||||||||||
Ratio of net investment income to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.76% | 1.07% | 0.89% | 0.55% | 0.41% | |||||||||||
Portfolio turnover | 37% | 30% | 22% | 52% | 38% |
1 The average shares outstanding method has been applied for per share information. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 97
Financial highlights
Optimum Large Cap Value Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $11.090 | $12.640 | $11.240 | $10.780 | $9.810 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income1 | 0.106 | 0.056 | 0.052 | 0.021 | 0.008 | |||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (4.413 | ) | (0.923 | ) | 1.606 | 0.933 | 1.098 | |||||||||
Total from investment operations | (4.307 | ) | (0.867 | ) | 1.658 | 0.954 | 1.106 | |||||||||
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 | ) | ||||||
Total dividends and distributions | (0.153 | ) | (0.683 | ) | (0.258 | ) | (0.494 | ) | (0.136 | ) | ||||||
Net asset value, end of period | $6.630 | $11.090 | $12.640 | $11.240 | $10.780 | |||||||||||
Total return2 | (39.37% | ) | (7.38% | ) | 14.97% | 9.05% | 11.36% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $4,664 | $9,454 | $11,403 | $10,103 | $8,072 | |||||||||||
Ratio of expenses to average net assets | 2.19% | 2.19% | 2.20% | 2.20% | 2.18% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.25% | 2.21% | 2.38% | 2.48% | 2.49% | |||||||||||
Ratio of net investment income to average net assets | 1.17% | 0.44% | 0.42% | 0.18% | 0.07% | |||||||||||
Ratio of net investment income (loss) to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.11% | 0.42% | 0.24% | (0.10% | ) | (0.24% | ) | |||||||||
Portfolio turnover | 37% | 30% | 22% | 52% | 38% |
1 The average shares outstanding method has been applied for per share information. |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
98
Optimum Large Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $11.080 | $12.630 | $11.240 | $10.780 | $9.810 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income1 | 0.106 | 0.057 | 0.051 | 0.021 | 0.008 | |||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (4.403 | ) | (0.924 | ) | 1.597 | 0.933 | 1.098 | |||||||||
Total from investment operations | (4.297 | ) | (0.867 | ) | 1.648 | 0.954 | 1.106 | |||||||||
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 | ) | ||||||
Total dividends and distributions | (0.153 | ) | (0.683 | ) | (0.258 | ) | (0.494 | ) | (0.136 | ) | ||||||
Net asset value, end of period | $6.630 | $11.080 | $12.630 | $11.240 | $10.780 | |||||||||||
Total return2 | (39.31% | ) | (7.39% | ) | 14.88% | 9.16% | 11.36% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $98,881 | $205,501 | $216,527 | $163,876 | $97,823 | |||||||||||
Ratio of expenses to average net assets | 2.19% | 2.19% | 2.20% | 2.20% | 2.18% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.25% | 2.21% | 2.38% | 2.48% | 2.49% | |||||||||||
Ratio of net investment income to average net assets | 1.17% | 0.44% | 0.42% | 0.18% | 0.07% | |||||||||||
Ratio of net investment income (loss) to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.11% | 0.42% | 0.24% | (0.10% | ) | (0.24% | ) | |||||||||
Portfolio turnover | 37% | 30% | 22% | 52% | 38% |
1 The average shares outstanding method has been applied for per share information. |
2 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) 99
Financial highlights
Optimum Large Cap Value Fund Institutional Class
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $11.190 | $12.750 | $11.330 | $10.860 | $9.840 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income1 | 0.197 | 0.183 | 0.170 | 0.131 | 0.110 | |||||||||||
Net realized and unrealized gain (loss) on investments | ||||||||||||||||
and foreign currencies | (4.465 | ) | (0.931 | ) | 1.623 | 0.936 | 1.110 | |||||||||
Total from investment operations | (4.268 | ) | (0.748 | ) | 1.793 | 1.067 | 1.220 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net investment income | (0.039 | ) | (0.179 | ) | (0.145 | ) | (0.103 | ) | (0.064 | ) | ||||||
Net realized gain on investments | (0.143 | ) | (0.633 | ) | (0.228 | ) | (0.494 | ) | (0.136 | ) | ||||||
Total dividends and distributions | (0.182 | ) | (0.812 | ) | (0.373 | ) | (0.597 | ) | (0.200 | ) | ||||||
Net asset value, end of period | $6.740 | $11.190 | $12.750 | $11.330 | $10.860 | |||||||||||
Total return2 | (38.76% | ) | (6.46% | ) | 16.12% | 10.19% | 12.41% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $358,559 | $607,637 | $508,000 | $319,857 | $140,341 | |||||||||||
Ratio of expenses to average net assets | 1.19% | 1.19% | 1.20% | 1.20% | 1.18% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.25% | 1.21% | 1.38% | 1.48% | 1.49% | |||||||||||
Ratio of net investment income to average net assets | 2.17% | 1.44% | 1.42% | 1.18% | 1.07% | |||||||||||
Ratio of net investment income to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.11% | 1.42% | 1.24% | 0.90% | 0.76% | |||||||||||
Portfolio turnover | 37% | 30% | 22% | 52% | 38% |
1 The average shares outstanding method has been applied for per share information. |
2 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
100
Optimum Small-Mid Cap Growth Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $11.280 | $14.070 | $14.340 | $11.750 | $11.260 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.092 | ) | (0.177 | ) | (0.155 | ) | (0.176 | ) | (0.161 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (4.428 | ) | (1.952 | ) | 0.188 | 2.766 | 0.653 | |||||||||
Total from investment operations | (4.520 | ) | (2.129 | ) | 0.033 | 2.590 | 0.492 | |||||||||
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 | $6.760 | $11.280 | $14.070 | $14.340 | $11.750 | |||||||||||
Total return2 | (40.07% | ) | (15.96% | ) | 0.37% | 22.04% | 4.37% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $4,814 | $9,282 | $12,088 | $11,984 | $6,133 | |||||||||||
Ratio of expenses to average net assets | 1.90% | 1.92% | 1.95% | 1.95% | 1.80% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.26% | 2.11% | 2.32% | 2.46% | 2.69% | |||||||||||
Ratio of net investment loss to average net assets | (0.96% | ) | (1.27% | ) | (1.15% | ) | (1.38% | ) | (1.42% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (1.32% | ) | (1.46% | ) | (1.52% | ) | (1.89% | ) | (2.31% | ) | ||||||
Portfolio turnover | 119% | 46% | 46% | 47% | 44% |
1 The average shares outstanding method has been applied for per share information. | |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 101
Financial highlights
Optimum Small-Mid Cap Growth Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $10.930 | $13.750 | $14.110 | $11.640 | $11.230 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.152 | ) | (0.265 | ) | (0.240 | ) | (0.257 | ) | (0.233 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (4.268 | ) | (1.894 | ) | 0.183 | 2.727 | 0.645 | |||||||||
Total from investment operations | (4.420 | ) | (2.159 | ) | (0.057 | ) | 2.470 | 0.412 | ||||||||
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 | $6.510 | $10.930 | $13.750 | $14.110 | $11.640 | |||||||||||
Total return2 | (40.44% | ) | (16.56% | ) | (0.27% | ) | 21.22% | 3.67% | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $807 | $1,620 | $2,187 | $2,285 | $1,665 | |||||||||||
Ratio of expenses to average net assets | 2.55% | 2.57% | 2.60% | 2.60% | 2.45% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.91% | 2.76% | 2.97% | 3.11% | 3.34% | |||||||||||
Ratio of net investment loss to average net assets | (1.61% | ) | (1.92% | ) | (1.80% | ) | (2.03% | ) | (2.07% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (1.97% | ) | (2.11% | ) | (2.17% | ) | (2.54% | ) | (2.96% | ) | ||||||
Portfolio turnover | 119% | 46% | 46% | 47% | 44% |
1 The average shares outstanding method has been applied for per share information. | |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
102
Optimum Small-Mid Cap Growth Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $10.930 | $13.750 | $14.110 | $11.640 | $11.230 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.152 | ) | (0.264 | ) | (0.240 | ) | (0.257 | ) | (0.233 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (4.268 | ) | (1.895 | ) | 0.183 | 2.727 | 0.645 | |||||||||
Total from investment operations | (4.420 | ) | (2.159 | ) | (0.057 | ) | 2.470 | 0.412 | ||||||||
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 | $6.510 | $10.930 | $13.750 | $14.110 | $11.640 | |||||||||||
Total return2 | (40.44% | ) | (16.56% | ) | (0.27% | ) | 21.22% | 3.67% | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $16,863 | $34,086 | $40,324 | $36,537 | $19,883 | |||||||||||
Ratio of expenses to average net assets | 2.55% | 2.57% | 2.60% | 2.60% | 2.45% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.91% | 2.76% | 2.97% | 3.11% | 3.34% | |||||||||||
Ratio of net investment loss to average net assets | (1.61% | ) | (1.92% | ) | (1.80% | ) | (2.03% | ) | (2.07% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (1.97% | ) | (2.11% | ) | (2.17% | ) | (2.54% | ) | (2.96% | ) | ||||||
Portfolio turnover | 119% | 46% | 46% | 47% | 44% |
1 The average shares outstanding method has been applied for per share information. | |
2 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) 103
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:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $11.470 | $14.250 | $14.470 | $11.820 | $11.280 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.059 | ) | (0.128 | ) | (0.108 | ) | (0.131 | ) | (0.121 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (4.511 | ) | (1.991 | ) | 0.191 | 2.781 | 0.663 | |||||||||
Total from investment operations | (4.570 | ) | (2.119 | ) | 0.083 | 2.650 | 0.542 | |||||||||
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 | $6.900 | $11.470 | $14.250 | $14.470 | $11.820 | |||||||||||
Total return2 | (39.84% | ) | (15.68% | ) | 0.72% | 22.42% | 4.81% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $53,244 | $90,614 | $84,934 | $67,466 | $31,827 | |||||||||||
Ratio of expenses to average net assets | 1.55% | 1.57% | 1.60% | 1.60% | 1.45% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.91% | 1.76% | 1.97% | 2.11% | 2.34% | |||||||||||
Ratio of net investment loss to average net assets | (0.61% | ) | (0.92% | ) | (0.80% | ) | (1.03% | ) | (1.07% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (0.97% | ) | (1.11% | ) | (1.17% | ) | (1.54% | ) | (1.96% | ) | ||||||
Portfolio turnover | 119% | 46% | 46% | 47% | 44% |
1 The average shares outstanding method has been applied for per share information. | |
2 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
104
Optimum Small-Mid Cap Value Fund Class A
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $10.380 | $13.540 | $13.590 | $12.410 | $11.010 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss)1 | 0.011 | (0.025 | ) | (0.020 | ) | (0.022 | ) | (0.055 | ) | |||||||
Net realized and unrealized gain (loss) on investments | (4.683 | ) | (2.102 | ) | 0.759 | 2.043 | 1.801 | |||||||||
Total from investment operations | (4.672 | ) | (2.127 | ) | 0.739 | 2.021 | 1.746 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net realized gain on investments | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | ||||||
Total dividends and distributions | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | ||||||
Net asset value, end of period | $5.690 | $10.380 | $13.540 | $13.590 | $12.410 | |||||||||||
Total return2 | (45.09% | ) | (16.34% | ) | 5.93% | 17.17% | 16.12% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $4,045 | $9,145 | $12,721 | $13,300 | $7,297 | |||||||||||
Ratio of expenses to average net assets | 1.75% | 1.76% | 1.76% | 1.76% | 1.73% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.22% | 2.09% | 2.32% | 2.58% | 2.61% | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.15% | (0.20% | ) | (0.16% | ) | (0.17% | ) | (0.47% | ) | |||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (0.32% | ) | (0.53% | ) | (0.72% | ) | (0.99% | ) | (1.35% | ) | ||||||
Portfolio turnover | 86% | 53% | 49% | 42% | 46% |
1 The average shares outstanding method has been applied for per share information. | |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
(continues) 105
Financial highlights
Optimum Small-Mid Cap Value Fund Class B
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $10.030 | $13.190 | $13.350 | $12.280 | $10.970 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.042 | ) | (0.102 | ) | (0.101 | ) | (0.102 | ) | (0.129 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (4.510 | ) | (2.025 | ) | 0.730 | 2.013 | 1.785 | |||||||||
Total from investment operations | (4.552 | ) | (2.127 | ) | 0.629 | 1.911 | 1.656 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net realized gain on investments | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | ||||||
Total dividends and distributions | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | ||||||
Net asset value, end of period | $5.460 | $10.030 | $13.190 | $13.350 | $12.280 | |||||||||||
Total return2 | (45.47% | ) | (16.79% | ) | 5.27% | 16.35% | 15.35% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $731 | $1,636 | $2,239 | $2,359 | $1,859 | |||||||||||
Ratio of expenses to average net assets | 2.40% | 2.41% | 2.41% | 2.41% | 2.38% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.87% | 2.74% | 2.97% | 3.23% | 3.26% | |||||||||||
Ratio of net investment loss to average net assets | (0.50% | ) | (0.85% | ) | (0.81% | ) | (0.82% | ) | (1.12% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (0.97% | ) | (1.18% | ) | (1.37% | ) | (1.64% | ) | (2.00% | ) | ||||||
Portfolio turnover | 86% | 53% | 49% | 42% | 46% |
1 The average shares outstanding method has been applied for per share information. | |
2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect. |
See accompanying notes
106
Optimum Small-Mid Cap Value Fund Class C
Selected data for each share of the Fund outstanding throughout each period were as follows:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $10.020 | $13.190 | $13.350 | $12.280 | $10.970 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss1 | (0.042 | ) | (0.102 | ) | (0.101 | ) | (0.102 | ) | (0.129 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (4.500 | ) | (2.035 | ) | 0.730 | 2.013 | 1.785 | |||||||||
Total from investment operations | (4.542 | ) | (2.137 | ) | 0.629 | 1.911 | 1.656 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net realized gain on investments | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | ||||||
Total dividends and distributions | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | ||||||
Net asset value, end of period | $5.460 | $10.020 | $13.190 | $13.350 | $12.280 | |||||||||||
Total return2 | (45.42% | ) | (16.79% | ) | 5.27% | 16.35% | 15.35% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $14,811 | $32,891 | $41,622 | $38,782 | $23,869 | |||||||||||
Ratio of expenses to average net assets | 2.40% | 2.41% | 2.41% | 2.41% | 2.38% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 2.87% | 2.74% | 2.97% | 3.23% | 3.26% | |||||||||||
Ratio of net investment loss to average net assets | (0.50% | ) | (0.85% | ) | (0.81% | ) | (0.82% | ) | (1.12% | ) | ||||||
Ratio of net investment loss to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | (0.97% | ) | (1.18% | ) | (1.37% | ) | (1.64% | ) | (2.00% | ) | ||||||
Portfolio turnover | 86% | 53% | 49% | 42% | 46% |
1 The average shares outstanding method has been applied for per share information. | |
2 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) 107
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:
Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/07 | 3/31/06 | 3/31/05 | ||||||||||||
Net asset value, beginning of period | $10.580 | $13.720 | $13.720 | $12.470 | $11.040 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss)1 | 0.041 | 0.018 | 0.025 | 0.023 | (0.014 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | (4.783 | ) | (2.125 | ) | 0.764 | 2.068 | 1.790 | |||||||||
Total from investment operations | (4.742 | ) | (2.107 | ) | 0.789 | 2.091 | 1.776 | |||||||||
Less dividends and distributions from: | ||||||||||||||||
Net realized gain on investments | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | ||||||
Total dividends and distributions | (0.018 | ) | (1.033 | ) | (0.789 | ) | (0.841 | ) | (0.346 | ) | ||||||
Net asset value, end of period | $5.820 | $10.580 | $13.720 | $13.720 | $12.470 | |||||||||||
Total return2 | (44.90% | ) | (15.97% | ) | 6.24% | 17.66% | 16.35% | |||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets, end of period (000 omitted) | $58,173 | $66,657 | $71,387 | $54,803 | $26,900 | |||||||||||
Ratio of expenses to average net assets | 1.40% | 1.41% | 1.41% | 1.41% | 1.38% | |||||||||||
Ratio of expenses to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 1.87% | 1.74% | 1.97% | 2.23% | 2.26% | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.50% | 0.15% | 0.19% | 0.18% | (0.12% | ) | ||||||||||
Ratio of net investment income (loss) to average net assets | ||||||||||||||||
prior to fees waived and expense paid indirectly | 0.03% | (0.18% | ) | (0.37% | ) | (0.64% | ) | (1.00% | ) | |||||||
Portfolio turnover | 86% | 53% | 49% | 42% | 46% |
1 The average shares outstanding method has been applied for per share information. | |
2 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
108
Notes to financial statements
Optimum Fund Trust
March 31, 2009
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 ask 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 ask prices. Other 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. Investment companies are valued at net asset value per share. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and ask prices. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Futures contracts and options on futures contracts are valued at the daily quoted settlement prices. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask 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. Each 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 each 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 Funds may frequently value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing).
Federal Income Taxes — No provision for federal income taxes has been made as 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. 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.
(continues) 109
Notes to financial statements
Optimum Fund Trust
1. Significant Accounting Policies (continued)
Class Accounting — Investment income, common expenses and realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.
Repurchase Agreements — Each Fund may invest in a pooled cash account along with other members of the Delaware Investments® Family of Funds pursuant to an exemptive order issued by the Securities and Exchange Commission. The aggregate daily balance of the pooled cash account is invested in repurchase agreements secured by obligations of the U.S government. The respective collateral is held by each Fund’s custodian bank until the maturity of the respective repurchase agreements. Each repurchase agreement is at least 102% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral may be subject to legal proceedings.
Foreign Currency Transactions — Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date. The value of all assets and liabilities denominated in foreign currencies is translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar daily. Transaction gains or losses resulting from changes in exchange rates during the reporting period or upon settlement of the foreign currency transaction are reported in operations for the current period. The Funds isolate that portion of realized gains and losses on investments in debt securities which is 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 series within the Trust are generally allocated amongst such series 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.
110
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 rates of the average daily net assets of each 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 million 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 million to $100 million | ||
0.7800% of net assets from $100 million to $300 million | ||
0.7650% of net assets from $300 million 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 from $500 million to $1billion | ||
0.7100% of net assets from $1billion to $1.5 billion | ||
0.7000% of net 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 from $500 million to $1 billion | ||
0.6675% of net assets from $1 billion to $1.5 billion | ||
0.6475% of net 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, effective December 19, 2008, BlackRock Advisors, LLC (BlackRock) (BlackRock replaced AllianceBernstein L.P. as a sub-advisor); Optimum Large Cap Growth Fund – Marsico Capital Management, LLC, T. Rowe Price Associates, Inc. (T. Rowe Price); 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 a sub-advisor); Optimum Small-Mid Cap Value Fund – Delafield Asset Management (a division of Reich & Tang Asset Management, LLC) , The Killen Group, Inc. and effective December 17, 2008, Westwood Management Corp. (Westwood) (Westwood replaced Hotchkis and Wiley Capital Management, LLC as a sub-advisor).
For the year ended March 31, 2009, 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 | ||||||
$950,988 | $884,287 | $3,392,525 | $2,738,517 | $851,398 | $638,793 |
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Notes to financial statements
Optimum Fund Trust
2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)
DMC has contractually agreed to waive all or a portion of its management fee and/or reimburse expenses for 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)) from exceeding the 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 | 7/31/09 | 7/31/09 | 7/31/09 | 7/31/09 | 7/31/09 | 7/31/09 | ||||||
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 year ended March 31, 2009, 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 | ||||||
$41,311 | $10,552 | $39,991 | $35,391 | $5,675 | $4,703 |
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 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 March 31, 2009, 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 | $ | 153,957 | $ | 58,364 | $ | 299,520 | $ | 234,346 | $ | 36,138 | $ | 29,281 | ||||||||||||||||||
Dividend disbursing, transfer agent and fund | ||||||||||||||||||||||||||||||
accounting oversight fees, administration | ||||||||||||||||||||||||||||||
fees and other expenses payable to DSC | 220,011 | 45,028 | 181,795 | 164,090 | 28,200 | 28,476 | ||||||||||||||||||||||||
Distribution fees payable to DDLP | 151,282 | 32,614 | 95,709 | 91,457 | 15,572 | 13,403 | ||||||||||||||||||||||||
Other expenses payable | ||||||||||||||||||||||||||||||
to DMC and affiliates* | 37,922 | 7,800 | 27,796 | 25,517 | 3,952 | 3,605 |
* 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.
112
2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)
For the year ended March 31, 2009, 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 | ||||||
$17,414 | $8,004 | $24,590 | $23,630 | $4,429 | $3,774 |
For the year ended March 31, 2009, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A, 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 A | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Class B | 25,386 | 10,547 | 29,711 | 29,121 | 5,240 | 4,573 | ||||||||||||||||||||||||
Class C | 47,988 | 10,353 | 30,676 | 30,073 | 5,206 | 4,780 |
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 year ended March 31, 2009, the Funds made purchases and sales of investment securities other than short-term investments as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||
Purchases other than U.S. government securities | $ | 1,011,215,320 | $ | 120,431,831 | $ | 1,263,273,657 | $ | 267,200,746 | $ | 135,316,929 | $ | 100,138,606 | ||||||
Purchases of U.S. government securities | 231,847,654 | — | — | — | — | — | ||||||||||||
Sales other than U.S. government securities | 1,101,903,893 | 146,914,051 | 1,311,496,552 | 260,394,727 | 140,210,621 | 75,331,354 | ||||||||||||
Sales of U.S. government securities | 273,861,550 | — | — | — | — | — |
At March 31, 2009, the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes for each Fund were as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||||||
Cost of investments | $ | 773,509,167 | $ | 183,011,066 | $ | 724,463,094 | $ | 781,704,973 | $ | 118,180,659 | $ | 121,798,579 | ||||||||||||
Aggregate unrealized appreciation | $ | 21,760,219 | $ | 3,442,732 | $ | 13,269,035 | $ | 1,502,315 | $ | 4,646,029 | $ | 2,473,514 | ||||||||||||
Aggregate unrealized depreciation | (117,998,889 | ) | (45,488,055 | ) | (150,669,851 | ) | (253,947,064 | ) | (31,176,311 | ) | (35,557,993 | ) | ||||||||||||
Net unrealized depreciation | $ | (96,238,670 | ) | $ | (42,045,323 | ) | $ | (137,400,816 | ) | $ | (252,444,749 | ) | $ | (26,530,282 | ) | $ | (33,084,479 | ) |
(continues) 113
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. Each Fund’s investment in its 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 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 FAS 157 fair value hierarchy levels as of March 31, 2009:
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 | $ | 42,958,474 | $ | 16,484,134 | $ | 521,830,748 | $ | 474,783,634 | $ | 74,892,691 | $ | 78,018,099 | ||||||||
Level 2 | 618,496,622 | 124,481,544 | 65,231,425 | 54,476,485 | 16,757,635 | 10,695,975 | ||||||||||||||
Level 3 | 15,815,401 | 65 | 105 | 105 | 51 | 26 | ||||||||||||||
Total | $ | 677,270,497 | $ | 140,965,743 | $ | 587,062,278 | $ | 529,260,224 | $ | 91,650,377 | $ | 88,714,100 | ||||||||
Derivatives | ||||||||||||||||||||
Level 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Level 2 | 561,761 | 268,045 | (127 | ) | (867 | ) | — | — | ||||||||||||
Level 3 | — | — | — | — | — | — | ||||||||||||||
Total | $ | 561,761 | $ | 268,045 | $ | (127 | ) | $ | (867 | ) | $ | — | $ | — |
As a result of utilizing international fair value pricing at March 31, 2009, the majority of the Optimum International Fund was categorized as Level 2 in the FAS 157 hierarchy.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
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 | ||||||||||||||||||||||||
Balance as of 3/31/08 | $ | 13,845,627 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Net realized loss | (1,520,396 | ) | — | — | — | — | — | |||||||||||||||||
Net change in unrealized | ||||||||||||||||||||||||
appreciation/depreciation | (6,909,009 | ) | (653,621 | ) | (1,053,190 | ) | (1,049,657 | ) | (510,214 | ) | (263,502 | ) | ||||||||||||
Net purchases, sales and settlements | 9,282,666 | — | — | — | — | — | ||||||||||||||||||
Net transfers in and/or out of Level 3 | 1,116,513 | 653,686 | 1,053,295 | 1,049,762 | 510,265 | 263,528 | ||||||||||||||||||
Balance as of 3/31/09 | $ | 15,815,401 | $ | 65 | $ | 105 | $ | 105 | $ | 51 | $ | 26 | ||||||||||||
Net change in unrealized appreciation/ | ||||||||||||||||||||||||
depreciation from investments still held | ||||||||||||||||||||||||
as of 3/31/09 | $ | (7,284,852 | ) | $ | (653,621 | ) | $ | (1,053,190 | ) | $ | (1,049,657 | ) | $ | (510,214 | ) | $ | (263,502 | ) |
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4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Additionally, distributions from net gains on foreign currency transactions and net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the years ended March 31, 2009 and 2008 was as follows:
Year Ended March 31, 2009
Optimum | Optimum | Optimum | Optimum | |||||||||
Fixed Income | International | Large Cap | Small-Mid Cap | |||||||||
Fund | Fund | Value Fund | Value Fund | |||||||||
Ordinary income | $ | 48,251,466 | $ | 6,821,438 | $ | 2,572,090 | $ | 4,834 | ||||
Long-term capital gain | — | 4,470,445 | 11,341,568 | 185,762 | ||||||||
Total | $ | 48,251,466 | $ | 11,291,883 | $ | 13,913,658 | $ | 190,596 |
Optimum Large Cap Growth Fund and Optimum Small-Mid Cap Growth Fund did not make any distributions during the year ended March 31, 2009.
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 |
5. Components of Net Assets on a Tax Basis
As of March 31, 2009, the components of net assets on a tax basis were as follows:
Optimum | Optimum | Optimum | ||||||||||
Fixed Income | International | Large Cap | ||||||||||
Fund | Fund | Growth Fund | ||||||||||
Share of beneficial interest | $ | 758,922,349 | $ | 235,140,654 | $ | 879,826,937 | ||||||
Undistributed ordinary income | 12,080,463 | 2,734,455 | 750,120 | |||||||||
Distributions payable | (2,143 | ) | — | — | ||||||||
Post-October losses | (11,237,339 | ) | (67,517,354 | ) | (127,341,338 | ) | ||||||
Post-October currency losses | (4,083,613 | ) | (1,019,115 | ) | (86,564 | ) | ||||||
Capital loss carryforwards | (23,299,774 | ) | (2,202,347 | ) | (77,826,014 | ) | ||||||
Other temporary differences | (172,419 | ) | — | — | ||||||||
Unrealized depreciation on investments, swap contracts and foreign currencies | (95,955,791 | ) | (41,844,256 | ) | (137,389,203 | ) | ||||||
Net assets | $ | 636,251,733 | $ | 125,292,037 | $ | 537,933,938 |
Optimum | Optimum | Optimum | ||||||||||
Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||||||
Value Fund | Growth Fund | Value Fund | ||||||||||
Share of beneficial interest | $ | 854,851,172 | $ | 136,540,439 | $ | 146,714,633 | ||||||
Undistributed ordinary income | 13,602,245 | — | 177,373 | |||||||||
Post-October losses | (71,013,367 | ) | (18,853,497 | ) | (31,278,589 | ) | ||||||
Post-October currency losses | (8,270 | ) | (949 | ) | — | |||||||
Capital loss carryforwards | (55,991,912 | ) | (15,428,500 | ) | (4,768,767 | ) | ||||||
Unrealized depreciation on investments and foreign currencies | (252,434,932 | ) | (26,529,949 | ) | (33,084,479 | ) | ||||||
Net assets | $ | 489,004,936 | $ | 75,727,544 | $ | 77,760,171 |
(continues) 115
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, tax recognition of unrealized gain on passive foreign investment companies, mark-to-market on futures contracts, and tax treatment of CDS contracts.
Post-October losses represent losses realized on investment and foreign currency transactions from November 1, 2008 through March 31, 2009 that, in accordance with federal income tax regulations, each Fund has elected to defer and treat as having arisen in the following year.
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, gain (loss) on foreign currency transactions and foreign futures contracts, CDS contracts and paydown gains (losses) of mortgage- and asset-backed securities. Results of operations and net assets were not affected by these reclassifications. For the year ended March 31, 2009, the Funds recorded the following reclassifications:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||||||||||||||
Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | |||||||||||||||||||
Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | |||||||||||||||||||
Undistributed (accumulated) net | $ | (642,774 | ) | $ | 492,218 | $ | (157,216 | ) | $ | (110,702 | ) | $ | 1,006,644 | $ | (4,834 | ) | ||||||||
investment income (loss) | ||||||||||||||||||||||||
Accumulated net realized gain (loss) | 642,774 | (492,218 | ) | 157,216 | 110,702 | (3,851 | ) | 4,834 | ||||||||||||||||
Paid-in capital | — | — | — | — | (1,002,793 | ) | — |
For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at March 31, 2009 will expire as follows:
Optimum | Optimum | Optimum | Optimum | Optimum | Optimum | |||||||
Year of | Fixed Income | International | Large Cap | Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||
Expiration | Fund | Fund | Growth Fund | Value Fund | Growth Fund | Value Fund | ||||||
3/31/17 | $23,299,774 | $2,202,347 | $77,826,014 | $55,991,912 | $15,428,500 | $4,768,767 |
6. Capital Shares
Transactions in capital shares were as follows:
Optimum | Optimum | Optimum | ||||||||||||||||
Fixed Income | International | Large Cap | ||||||||||||||||
Fund | Fund | Growth Fund | ||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/09 | 3/31/08 | 3/31/09 | 3/31/08 | |||||||||||||
Shares sold: | ||||||||||||||||||
Class A | 798,189 | 1,591,711 | 242,685 | 249,304 | 885,616 | 894,309 | ||||||||||||
Class B | 26,655 | 65,651 | 10,442 | 6,171 | 54,134 | 28,718 | ||||||||||||
Class C | 3,265,872 | 7,223,032 | 857,615 | 1,028,302 | 2,995,447 | 3,760,334 | ||||||||||||
Institutional Class | 22,071,648 | 31,621,851 | 4,143,084 | 4,642,336 | 18,489,123 | 28,248,672 | ||||||||||||
26,162,364 | 40,502,245 | 5,253,826 | 5,926,113 | 22,424,320 | 32,932,033 | |||||||||||||
Shares issued upon reinvestment of dividends | ||||||||||||||||||
and distributions: | ||||||||||||||||||
Class A | 366,124 | 348,052 | 79,853 | 119,290 | — | 126,966 | ||||||||||||
Class B | 43,312 | 42,787 | 12,776 | 21,696 | — | 23,877 | ||||||||||||
Class C | 1,308,953 | 1,214,403 | 260,307 | 419,667 | — | 498,637 | ||||||||||||
Institutional Class | 4,131,070 | 3,434,748 | 704,245 | 862,968 | — | 1,332,346 | ||||||||||||
5,849,459 | 5,039,990 | 1,057,181 | 1,423,621 | — | 1,981,826 | |||||||||||||
Shares repurchased: | ||||||||||||||||||
Class A | (3,179,018 | ) | (1,333,695 | ) | (616,141 | ) | (356,133 | ) | (1,646,026 | ) | (886,555 | ) | ||||||
Class B | (346,667 | ) | (180,491 | ) | (76,621 | ) | (48,425 | ) | (203,574 | ) | (117,913 | ) | ||||||
Class C | (13,108,708 | ) | (4,683,252 | ) | (2,321,094 | ) | (1,246,950 | ) | (6,513,939 | ) | (2,956,301 | ) | ||||||
Institutional Class | (37,075,680 | ) | (18,267,065 | ) | (6,140,986 | ) | (2,839,358 | ) | (25,459,674 | ) | (8,897,038 | ) | ||||||
(53,710,073 | ) | (24,464,503 | ) | (9,154,842 | ) | (4,490,866 | ) | (33,823,213 | ) | (12,857,807 | ) | |||||||
Net increase (decrease) | (21,698,250 | ) | 21,077,732 | (2,843,835 | ) | 2,858,868 | (11,398,893 | ) | 22,056,052 |
116
6. Capital Shares (continued)
Optimum | Optimum | Optimum | ||||||||||||||||
Large Cap | Small-Mid Cap | Small-Mid Cap | ||||||||||||||||
Value Fund | Growth Fund | Value Fund | ||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||
3/31/09 | 3/31/08 | 3/31/09 | 3/31/08 | 3/31/09 | 3/31/08 | |||||||||||||
Shares sold: | ||||||||||||||||||
Class A | 783,512 | 825,722 | 180,877 | 141,680 | 179,239 | 126,658 | ||||||||||||
Class B | 43,273 | 22,083 | 10,952 | 3,093 | 11,691 | 3,405 | ||||||||||||
Class C | 2,627,527 | 3,516,098 | 608,544 | 593,936 | 613,573 | 544,662 | ||||||||||||
Institutional Class | 19,865,887 | 20,674,129 | 3,105,271 | 3,133,276 | 6,869,104 | 2,422,447 | ||||||||||||
23,320,199 | 25,038,032 | 3,905,644 | 3,871,985 | 7,673,607 | 3,097,172 | |||||||||||||
Shares issued upon reinvestment of dividends | ||||||||||||||||||
and distributions: | ||||||||||||||||||
Class A | 72,889 | 285,105 | — | 40,657 | 1,401 | 79,601 | ||||||||||||
Class B | 11,542 | 47,416 | — | 7,453 | 267 | 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 | ||||||||||||
1,268,739 | 4,332,317 | — | 519,716 | 17,223 | 900,505 | |||||||||||||
Shares repurchased: | ||||||||||||||||||
Class A | (1,602,665 | ) | (926,045 | ) | (291,537 | ) | (218,457 | ) | (350,921 | ) | (265,211 | ) | ||||||
Class B | (204,119 | ) | (118,920 | ) | (35,085 | ) | (21,466 | ) | (41,364 | ) | (24,859 | ) | ||||||
Class C | (6,505,876 | ) | (3,093,510 | ) | (1,134,798 | ) | (559,418 | ) | (1,187,514 | ) | (712,330 | ) | ||||||
Institutional Class | (21,917,080 | ) | (9,222,796 | ) | (3,284,227 | ) | (1,516,450 | ) | (3,188,352 | ) | (1,836,328 | ) | ||||||
(30,229,740 | ) | (13,361,271 | ) | (4,745,647 | ) | (2,315,791 | ) | (4,768,151 | ) | (2,838,728 | ) | |||||||
Net increase (decrease) | (5,640,802 | ) | 16,009,078 | (840,003 | ) | 2,075,910 | 2,922,679 | 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 they have 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 they already own 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. Futures Contracts
The Optimum International Fund uses futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, enhancing returns, maintaining liquidity and minimizing costs. The Optimum Fixed Income Fund may invest in futures contracts to hedge its existing portfolio securities against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, the Funds deposit cash or pledge 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 Funds as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts include potential imperfect correlation between the futures contracts and the underlying securities and the possibility of an illiquid secondary market for these instruments.
(continues) 117
Notes to financial statements
Optimum Fund Trust
9. Written Options
During the year ended March 31, 2009, 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 year ended March 31, 2009 for the Optimum Fixed Income Fund were as follows:
Number of contracts | Premiums | |||||||
Options outstanding at March 31, 2008 | 722 | $ | 501,916 | |||||
Options written | 89,064 | 1,095,699 | ||||||
Options expired | (78,229 | ) | (403,189 | ) | ||||
Options terminated in closing purchase transactions | (4,404 | ) | (1,187,413 | ) | ||||
Options outstanding at March 31, 2009 | 7,153 | $ | 7,013 |
10. Swap Contracts
The Optimum Fixed Income Fund may enter into interest rate swap contracts, index swap contracts and CDS contracts in accordance with its investment objectives. The Fund may use interest rate swaps to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Index swaps may be used to gain exposure to markets that the Fund invests in, such as the corporate bond market. The Fund may also use index swaps as a substitute for futures or options contracts if such contracts are not directly available to the Fund on favorable terms. The Fund may enter into CDS contracts in order to hedge against a credit event, to enhance total return or to gain exposure to certain securities or markets.
An interest rate swap involves payments received by the Fund from another party based on a variable or floating interest rate, in return for making payments based on a fixed interest rate. An interest rate swap can also work in reverse with the Fund receiving payments based on a fixed interest rate and making payments based on a variable or floating interest rate. Interest rate swaps may be used to adjust the Fund’s sensitivity to interest rates or to hedge against changes in interest rates. Periodic payments on such contracts are accrued daily and recorded as unrealized appreciation/depreciation on swap contracts. Upon periodic payment/receipt or termination of the contract, such amounts are recorded as realized gains or losses on swap contracts.
Index swaps involve commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent the total return of the security, instrument or basket of instruments underlying the transaction exceeds the offsetting interest obligation, the Fund will receive a payment from the counterparty. To the extent the total return of the security, instrument or basket of instruments underlying the transaction falls short of the offsetting interest obligation, the Fund will make a payment to the counterparty. The change in value of swap contracts outstanding, if any, is recorded as unrealized appreciation or depreciation daily. A realized gain or loss is recorded on maturity or termination of the swap contract.
A CDS contract is a risk-transfer instrument through which one party (purchaser of protection) transfers to another party (seller of protection) the financial risk of a credit event (as defined in the CDS agreement), as it relates to a particular reference security or basket of securities (such as an index). In exchange for the protection offered by the seller of protection, the purchaser of protection agrees to pay the seller of protection a periodic amount at a stated rate that is applied to the notional amount of the CDS contract. In addition, an upfront payment may be made or received by the Fund in connection with an unwinding or assignment of a CDS contract. Upon the occurrence of a credit event, the seller of protection would pay the par (or other agreed-upon) value of the referenced security (or basket of securities) to the counterparty.
During the year ended March 31, 2009, the Fund entered into CDS contracts as a purchaser and seller of protection. Periodic payments on such contracts are accrued daily and recorded as unrealized losses (gains) on swap contracts. Upon payment (receipts), 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.
CDS contracts may involve greater risks than if the Fund had invested in the referenced obligation directly. CDS contracts 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.
118
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 movements 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 securities collateral held plus cash collateral received 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 generally invested in the Mellon GSL DBT II Collateral Fund (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 Collective Trust seeks to maintain a net asset value per unit of $1.00, but there can be no assurance that it will always be able to do so. The Funds may incur investment losses as a result of investing securities lending collateral in the Collective Trust. This could occur if an investment in the Collective Trust defaulted or if it were necessary to liquidate assets in the Collective Trust to meet returns on outstanding security loans at a time when the Collective Trust’s net asset value per unit was less than $1.00. Under those circumstances, the Funds may not receive an amount from the Collective Trust that is equal in amount to the collateral the Funds would be required to return to the borrower of the securities and the Funds would be required to make up for this shortfall. During the fiscal period ended March 31, 2009, BNYMellon transferred certain distressed securities from the Collective Trust into the Mellon GSL DBT Liquidation 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 continues 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 securities collateral, the Funds receive loan premiums paid by the borrower. With respect to security loans collateralized by cash collateral, the earnings from the collateral investments are shared among the Funds, the security lending agent and the borrower. The Funds record security lending income net of allocations to the security lending agent and the borrower.
At March 31, 2009, the value of securities on loan is presented below, for which the Funds received collateral, comprised of cash and securities collateral. Investments purchased with cash collateral are presented on the statements of net assets under the caption “Securities Lending Collateral”.
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 | $ | 30,673,144 | $ | 15,320,036 | $ | 47,652,426 | $ | 39,752,242 | $ | 15,585,726 | $ | 10,643,643 | ||||||
Cash | $ | 32,569,640 | $ | 16,852,791 | $ | 50,326,189 | $ | 43,005,410 | $ | 16,767,894 | $ | 11,326,104 | ||||||
Securities | 84,240 | — | — | — | — | — |
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.
(continues) 119
Notes to financial statements
Optimum Fund Trust
12. Credit and Market Risk (continued)
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 is 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.
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 effect 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 its 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- or 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 real estate holdings during the year ended March 31, 2009. 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 the Funds’ 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 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.
120
14. Tax Information (Unaudited)
The information set forth below is for each Fund’s fiscal year as required by federal laws (Optimum Large Cap Growth Fund and Optimum Small-Mid Cap Growth Fund did not make any distributions). Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of a fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended March 31, 2009, each Fund designates distributions paid during the year as follows:
(A) | (B) | |||||||
Long-Term | Ordinary | |||||||
Capital Gains | Income | Total | (C) | |||||
Distributions | Distributions* | Distributions | Qualifying | |||||
(Tax Basis) | (Tax Basis) | (Tax Basis) | Dividends1 | |||||
Optimum Fixed Income Fund | — | 100% | 100% | — | ||||
Optimum International Fund | 40% | 60% | 100% | 1% | ||||
Optimum Large Cap Value Fund | 82% | 18% | 100% | 100% | ||||
Optimum Small-Mid Cap Value Fund | 97% | 3% | 100% | 100% |
(A) and (B) are based on a percentage of each Fund’s total distributions.
(C) is based on a percentage of each Fund’s ordinary income distributions.
1Qualifying dividends represent dividends which qualify for the corporate dividends received deduction. |
*For the fiscal year ended March 31, 2009, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the following amounts to be taxed at a maximum rate of 15%. Complete information will be computed and reported in conjunction with your 2008 or 2009 Form 1099-DIV. |
Maximum amount to be | |||
taxed at a maximum rate of 15% | |||
Optimum Fixed Income Fund | $ | 197,585 | |
Optimum International Fund | 6,821,438 | ||
Optimum Large Cap Value Fund | 2,572,090 | ||
Optimum Small-Mid Cap Value Fund | 4,834 |
The Optimum International Fund intends to pass through foreign tax credits in the maximum amount of $687,820. The gross foreign source income earned during the fiscal year 2009 by the Optimum International Fund was $9,641,236. Complete information will be computed and reported in conjunction with your 2009 Form 1099-DIV.
For the fiscal year ended March 31, 2009, certain ordinary income paid by the Funds, determined to be Qualified Interest Income, may be subject to relief from U.S. withholding for foreign shareholders, as provided by the American Jobs Creation Act of 2004. For the fiscal year ended March 31, 2009, each Fund has designated maximum Qualified Interest Income distributions as follows:
Maximum Distribution of | |||
Qualified Interest Income | |||
Optimum Fixed Income Fund | $ | 43,617,627 | |
Optimum International Fund | 20,986 | ||
Optimum Large Cap Value Fund | 197,164 | ||
Optimum Small-Mid Cap Value Fund | 4,834 |
121
Report of independent
registered public accounting firm
The Shareholders and Board of Trustees of Optimum Fund Trust
We have audited the accompanying statements of net assets and statements of assets and liabilities of Optimum Fund Trust (comprising, respectively, the Optimum Fixed Income Fund, Optimum International Fund, Optimum Large Cap Growth Fund, Optimum Large Cap Value Fund, Optimum Small-Mid Cap Growth Fund, and Optimum Small-Mid Cap Value Fund (“Funds”)) as of March 31, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2009, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds constituting Optimum Fund Trust at March 31, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
May 21, 2009
122
Other Fund information
(Unaudited)
Optimum Fund Trust
Board Consideration of Certain Sub-Advisory Agreements
At a meeting held on December 9, 2008, the Board of Trustees, including a majority of non-interested or independent Trustees, approved new Sub-Advisory Agreements between Delaware Management Company (the “Manager” or “DMC”) and BlackRock Advisors LLC (“BlackRock”) for the Optimum International Fund and DMC and Westwood Management Corp. (“Westwood”, along with BlackRock, the “Sub-Advisers”) for the Optimum Small-Mid Cap Value Fund. BlackRock replaced AllianceBernstein L.P. (“Alliance”) as a sub-adviser to the Optimum International Fund, and Westwood replaced Hotchkis and Wiley Capital Management, LLC (“H&W”) as a sub-adviser to the Optimum Small-Mid Cap Value Fund. In reaching such decision, the Board considered and reviewed information about the Sub-Advisers, including its personnel, operations and financial condition, which had been provided by the Sub-Advisers. The Board also reviewed material furnished by DMC (with the assistance of its consultant, LPL Financial corporation), including: a memorandum from DMC reviewing the Sub-Advisory Agreements and the various services proposed to be rendered by the Sub-Advisers; research and analysis concerning DMC’s proposal of the Sub-Advisers; a description of the Sub-Advisers’ proposed sub-advisory fees under the Sub-Advisory Agreements; information concerning the Sub-Advisers’ organization structure and the experience of its investment management personnel; a “due diligence” report describing various material items in relation to the Sub-Advisers’ personnel, organization and policies; copies of the Sub-Advisers’ compliance policies and procedures and its Code of Ethics; and a copy of the Sub-Advisory Agreements.
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 Sub-Advisory Agreements 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 Sub-Advisory Agreements.
Nature, Extent and Quality of Services. In considering the nature, extent and quality of the services to be provided by the Sub-Advisers, the Board specifically considered that the Sub-Advisory Agreements contain substantially similar provisions to those in the current Hotchkis and Alliance sub-advisory agreements except for the provisions relating to the fees. The Board reviewed materials provided by the Sub-Advisers regarding the experience and qualifications of personnel who will be responsible for managing the Funds, and placed weight on each Sub-Adviser’s performance in managing an existing account (the “Clone Account”) in a similar investment strategy to the one they would employ for their respective Fund. The Board also considered that the Sub-Advisers would co-manage the Funds with other sub-advisers. The Board considered the compatibility of each Fund’s sub-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 the Sub-Advisers under the Sub-Advisory Agreements were satisfactory.
Investment Performance. The Board reviewed information on the performance of the Clone Accounts over various time periods. The Board also reviewed an analysis showing the projected composite investment performance for the Funds that would have resulted from combining the performance of the Clone Accounts over various time periods measured in several different ways. In respect to such analysis, the Board noted that the Sub-Advisers’ investment styles seemed to be a good complement to that followed by the remaining sub-advisers on the Funds. 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 the Sub-Advisers under the Sub-Advisory Agreements.
Sub-Advisory Fee; Profitability; and Economies of Scale. The Board noted that the fees to be paid to the Sub-Advisers under the Sub-Advisory Agreements were lower than those charged by the respective sub-advisers that they were replacing on each Fund. The Board also noted that the fees to be charged by the Sub-Advisers were less than those charged by the Sub-Advisers to other accounts having similar investment mandates. The Board was informed that the Sub-Advisers may receive certain fall-out benefits in connection with its relationship wit the Funds, such as soft-dollar arrangements. The Board also noted that the management fee paid by the Funds to DMC would stay the same, and that DMC’s profitability would be slightly increased based on the fees paid by DMC under the Sub-Advisory Agreements. Information about each Sub-Adviser’s estimated profitability from its relationship with respective 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 Funds and its shareholders through DMC’s investment management fee breakpoints, so that as the Funds grow in size its effective management fee rate declines. Based upon such facts, the Board believed that the fees to be charged by the Sub-Advisers under the Sub-Advisory Agreements were fair and reasonable in relation to the services being provided.
123
Board of trustees and officers addendum
Optimum Fund Trust
A mutual fund is governed by a Board of Trustees which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor and others that perform services for the fund. The independent fund trustees, in particular, are advocates for shareholder interests. The following is a list of the Trustees and Officers of the Trust with certain background and related information.
Number of | |||||
Portfolios in Fund | Other | ||||
Name, | Complex1 Overseen | Directorships | |||
Address | Position(s) | Length of | Principal Occupation(s) | by Trustee | Held by |
and Age | Held with Fund(s) | Time Served | During Past 5 Years | or Officer | Trustee or Officer |
Interested Trustees | |||||
Mark S. Casady2 | Trustee | April 21, | Chairman and | 6 | None |
2005 Market Street | 2003 to | Chief Executive Officer – | |||
Philadelphia, PA | present | LPL Financial Corporation | |||
19103 | (2005 – Present) | ||||
Age 48 | President and Chief Executive | ||||
Officer – LPL Financial Corporation | |||||
(2004 – 2005) | |||||
Theodore K. Smith2 | Trustee, President | June 12, 2008 | Executive Vice President | 6 | None |
2005 Market Street | and Chief | to present | Retail Product Sales and Marketing | ||
Philadelphia, PA | Executive Officer | Delaware Investments | |||
19103 | (2006 – Present) | ||||
Age 40 | Head of Strategic Partner | ||||
Account Management | |||||
Lincoln Financial Distributors | |||||
(2005 – 2006) | |||||
Vice President | |||||
Head of Managed Accounts | |||||
Delaware Investments | |||||
(2002 – 2005) | |||||
Independent Trustees | |||||
Robert J. Christian | Trustee | November 1, 2007 | Private Investor | 6 | Trustee – Wilmington Funds |
2005 Market Street | and Chairman | to present | (2006 – Present) | (24 mutual funds) | |
Philadelphia, PA | (1998 – Present) | ||||
19103 | |||||
Age 60 | Chief Investment Officer | Trustee – FundVantage Trust | |||
Wilmington Trust Corporation | (7 mutual funds) | ||||
(Trust Bank) | (2007 – Present) | ||||
(1996 – 2006) | |||||
Nicholas D. Constan | Trustee | July 17, 2003 | Adjunct Professor – | 6 | None |
2005 Market Street | to present | University of Pennsylvania | |||
Philadelphia, PA | (1972 – Present) | ||||
19103 | |||||
Age 70 | |||||
Durant Adams Hunter | Trustee | July 17, 2003 | Principal-Ridgeway Partners | 6 | None |
2005 Market Street | to present | (Executive Recruiting) | |||
Philadelphia, PA | (2004 – Present) | ||||
19103 | |||||
Age 60 | |||||
124
Number of | |||||
Portfolios in Fund | Other | ||||
Name, | Complex1 Overseen | Directorships | |||
Address | Position(s) | Length of | Principal Occupation(s) | by Trustee | Held by |
and Age | Held with Fund(s) | Time Served | During Past 5 Years | or Officer | Trustee or Officer |
Independent Trustees (continued) | |||||
Stephen Paul Mullin | Trustee | July 17, 2003 | Senior Vice President – | 6 | None |
2005 Market Street | to present | Econsult Corporation | |||
Philadelphia, PA | (Economic Consulting) | ||||
19103 | (2000 – Present) | ||||
Age 53 | |||||
Robert A. Rudell | Trustee | July 17, 2003 | Private Investor | 6 | Director and Chair, |
2005 Market Street | to present | (2002 – Present) | Compensation Committee – | ||
Philadelphia, PA | Medtox Scientific, Inc. | ||||
19103 | (Medical devices/Clinical lab) | ||||
(2002 – Present) | |||||
Age 60 | Director and | ||||
Independent Chairman– | |||||
Heartland Funds | |||||
(3 mutual funds) | |||||
(2005 – Present) | |||||
Director – | |||||
Vantagepoint | |||||
(27 mutual funds) | |||||
(2007 – Present) | |||||
Jon Edward Socolofsky | Trustee | July 17, 2003 | Private Investor | 6 | None |
2005 Market Street | to present | (2002 – Present) | |||
Philadelphia, PA | |||||
19103 | |||||
Age 63 | |||||
Officers | |||||
David F. Connor | Vice President, | Vice President since | Mr. Connor has served as | 6 | None4 |
2005 Market Street | Deputy General | July 17, 2003 | Vice President and Deputy | ||
Philadelphia, PA | Counsel, and Secretary | and Secretary | General Counsel of | ||
19103 | since | Delaware Investments3 since 2000. | |||
December 6, 2005 | |||||
Age 44 | |||||
David P. O’Connor | Senior Vice President, | October 25, 2005 | Mr. O’Connor has served in | 6 | None4 |
2005 Market Street | General Counsel, | to present | various executive and legal | ||
Philadelphia, PA | and Chief | capacities at different times at | |||
19103 | Legal Officer | Delaware Investments. | |||
Age 42 | |||||
Daniel Geatens | Vice President | September 20, 2007 | Mr. Geatens has served in | 6 | None4 |
2005 Market Street | and Treasurer | to present | various capacities at | ||
Philadelphia, PA | Delaware Investments. | ||||
19103 | |||||
Age 36 | |||||
Richard Salus | Senior | January 1, 2006 | Mr. Salus has served in | 6 | None4 |
2005 Market Street | Vice President | to present | various executive capacities | ||
Philadelphia, PA | and | at different times at | |||
19103 | Chief Financial | Delaware Investments. | |||
Officer | |||||
Age 44 |
1 The term “Fund Complex” refers to the Funds in the Optimum Fund Trust. |
2 “Interested persons” of the Funds by virtue of their executive and management positions or relationships with the Fund’s service providers or sub-service providers. |
3 Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries, including the Trust’s manager, principal underwriter and service agent. |
4 Messrs Connor, O’Connor, Geatens and Salus also serve in similar capacities for the Delaware Investments Family of Funds, a fund complex also managed and distributed by Delaware Investments with 83 funds. |
The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling your financial advisor or 800 914-0278. |
125
About the organization
This annual report is for the information of Optimum Fund Trust shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Optimum Fund Trust and the Fact Sheet 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.
126
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on Delaware Investments’ internet website at www.delawareinvestments.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this website within five business days of such amendment or waiver and will remain on the website for at least 12 months.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Trustees/Directors has determined that each member of the registrant’s Audit Committee is an audit committee financial expert, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:
a. An understanding of generally accepted accounting principles and financial statements;
b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;
c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;
d. An understanding of internal controls and procedures for financial reporting; and
e. An understanding of audit committee functions.
An “audit committee financial expert” shall have acquired such attributes through:
a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;
b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;
c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or
d. Other relevant experience.
The registrant’s Board of Trustees/Directors has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees/Directors or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.
The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:
Robert J. Christian
Robert A. Rudell
Jon. E. Socolofsky
Item 4. Principal Accountant Fees and Services
(a) Audit fees.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $154,500 for the fiscal year ended March 31, 2009.
The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $132,800 for the fiscal year ended March 31, 2008.
(b) Audit-related fees.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended March 31, 2009.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $19,074 for the registrant’s fiscal year ended March 31, 2009. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: issuance of report concerning transfer agent’s system of internal accounting control pursuant to Rule 17Ad-13 of the Securities Exchange Act.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended March 31, 2008.
The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $19,074 for the registrant’s fiscal year ended March 31, 2008. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: issuance of report concerning transfer agent’s system of internal accounting control pursuant to Rule 17Ad-13 of the Securities Exchange Act.
(c) Tax fees.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $45,620 for the fiscal year ended March 31, 2009. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax return, review of annual excise distribution calculations, and tax compliance services related to investments in foreign securities.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2009.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $45,620 for the fiscal year ended March 31, 2008. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the de minimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.
The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2008.
(d) All other fees.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended March 31, 2009.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2009.
The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended March 31, 2008.
The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended March 31, 2008.
(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Delaware Investments® Family of Funds.
Service | Range of Fees |
Audit Services | |
Statutory audits or financial audits for new Funds | up to $25,000 per Fund |
Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters | up to $10,000 per Fund |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”) | up to $25,000 in the aggregate |
Audit-Related Services | |
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and /or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”) | up to $25,000 in the aggregate |
Tax Services | |
U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.) | up to $25,000 in the aggregate |
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.) | up to $5,000 per Fund |
Review of federal, state, local and international income, franchise and other tax returns | up to $5,000 per Fund |
Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.
Service | Range of Fees |
Non-Audit Services | |
Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters | up to $10,000 in the aggregate |
The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $297,622 and $299,982 for the registrant’s fiscal years ended March 31, 2009 and March 31, 2008, respectively.
(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) | Included as part of report to shareholders filed under Item 1 of this Form N-CSR. | ||
(b) | Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940. |
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s fourth fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a) | (1) Code of Ethics | |||
Not applicable. | ||||
(2) | Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT. | |||
(3) | Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934. | |||
Not applicable. | ||||
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.
Name of Registrant: Optimum Fund Trust
THEODORE K. SMITH | |
By: | Theodore K. Smith |
Title: | Chief Executive Officer |
Date: | June 3, 2009 |
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: | June 3, 2009 |
RICHARD SALUS | |
By: | Richard Salus |
Title: | Chief Financial Officer |
Date: | June 3, 2009 |