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 811-22001
TDX Independence Funds, Inc.
(Exact name of Registrant as specified in charter)
60 Wall Street
New York, New York 10005
(Address of principal executive offices) (Zip code)
Hans Ephraimson
TDX Independence Funds, Inc.
60 Wall Street
New York, New York 10005 .
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 250-5883
Date of fiscal year end: May 31, 2010
Date of reporting period: May 31, 2010
Item 1. | Report to Stockholders. |
The Registrant’s annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
ANNUAL REPORT
May 31, 2010
TDX Independence Funds, Inc.
TDX Independence 2010 Exchange-Traded Fund
TDX Independence 2020 Exchange-Traded Fund
TDX Independence 2030 Exchange-Traded Fund
TDX Independence 2040 Exchange-Traded Fund
TDX Independence In-Target Exchange-Traded Fund
TDX Independence Funds, Inc.
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Schedule of Investments | ||
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Dear Shareholder,
We are pleased to present this Annual Report for TDX Independence Funds, Inc., which covers the year ending May 31, 2010.
As announced on June 30, 2010, Deutsche Bank acquired XShares Advisors, LLC, the investment adviser to the funds, and re-branded the investment adviser as DBX Strategic Advisors LLC. The acquisition has not yet and is not expected to result in any material changes to the funds’ investment strategies, day-to-day management of the funds or the funds’ fees and expenses. In anticipation of the acquisition, at an in-person meeting of the Board of Directors of the funds held on June 29, 2010 the Board approved various agreements including the permanent advisory agreements which shareholders will also be asked to approve. In the coming weeks our shareholders will receive information about a joint special meeting to consider the approval of these agreements. Each shareholder should take a few minutes to review these materials.
We believe that these funds provide convenience and clarity for investors seeking a sophisticated product in one single investment. Over the past year, the funds have continued to highlight the benefits of target-date investing. During the twelve months covered by this report, the TDX Independence 2040 ETF and the TDX Independence 2030 ETF, which have the greatest percentage allocations to equities, benefitted from strong performance in domestic equity markets and experienced NAV returns of 15.59% and 15.13%, respectively.* The TDX Independence 2020 ETF, with a more balanced allocation between equity and fixed income securities, experienced a NAV return of 13.99%.* For investors with a shorter investment horizon, the TDX Independence 2010 ETF and the TDX Independence In-Target ETF, which allocate a large percentage of assets to less volatile fixed-income securities, experienced NAV returns of 7.51% and 4.23%, respectively.*
Deutsche Bank, a leading global banking institution, has managed and operated a successful and growing platform of exchange-traded products since 2006. Our team at Deutsche Bank values the trust that you have placed in us and we look forward to meeting your investment needs by continuing to offer innovative index-driven strategies.
Very truly yours,
Hans Ephraimson
President
* Performance quoted represents past performance and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxstrategicadvisors.db.com. Investment in the Fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. (For specific performance results, please refer to the Fund Performance Section on the following pages of this report).
1
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2
TDX Independence Funds, Inc.
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
Following a rebound off of March 2009 lows, equity markets continued to trend higher during the one year period ending May 31, 2010. While the unemployment rate remained near its recent highs of 10.2%, evidencing continued weakness in the job market, the economy saw improvements in manufacturing levels as well as consumer spending, suggesting federal stimulus measures taken in earlier periods had some positive effect. Although a credit crisis in Europe led to a correction in the major equity indexes during the month of May, performance for the year finished on a positive note, with the Standard & Poor’s 500 Index increasing 20.99%, the Russell 3000 Index increasing 23.20% and the NASDAQ Composite Index gaining 28.35%. International markets did not fare as well as those in the U.S., as the Morgan Stanley Capital International EAFE Index (measuring equities in Europe, Australasia and the Far East) gained only 6.61% during the period. Due to continued uncertainty over the strength and sustainability of the economic recovery, investors continued to seek shelter in high-grade fixed income securities. The Barclays Capital U.S. Aggregate Bond Index returned 8.42% for the year.
The TDX Independence Exchange-Traded Funds had a wide range of returns during the year (For specific performance results, please refer to the Fund Performance Section on the following pages of this report). The wide range in the performance of the five TDX Independence Exchange-Traded Funds was due to the varying allocations in the funds to domestic equities, international equities and fixed income securities. The 2040 fund, which is allocated heavily towards U.S. equities, experienced a solid gain of 15.59% during the one year period ending May 31, 2010. The In-Target Fund, which has a heavy exposure to short-term U.S. Treasuries, returned a more modest 4.23% during the same period.
The Standard & Poor’s 500 is a broad-based index designed to measure the performance of the domestic stock market as represented by 500 large capitalization stocks.
The Russell 3000 is a broad-based index representing approximately 98% of the investable U.S. equity market.
The NASDAQ Composite is a broad-based index of NASDAQ-listed securities commonly used as a barometer of technology stock performance.
The MSCI EAFE is a broad-based index representing the largest stocks by market capitalization in 21 developed countries in Europe, Australasia and the Far East.
The Barclays Capital U.S. Aggregate Bond Index is a broad-based index designed to represent the U.S. investment-grade bond universe.
One cannot invest directly in an index.
3
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED)
TDX Independence 2010 Exchange-Traded Fund (TDD)
The TDX Independence 2010 Exchange-Traded Fund (the “Fund”) commenced investment operations and its shares began trading on NYSE Arca, Inc. (“NYSE Arca”) on October 1, 2007. The Fund seeks to track the performance, before fees and expenses, of the Zacks 2010 Lifecycle Index. Both the Fund’s equity and bond portfolios held fewer securities than the Zacks 2010 Lifecycle Index, a constraint imposed by the relatively small size of the Fund.
For the fiscal year ended May 31, 2010, the Fund’s net asset value increased 7.51%, compared to an increase of 5.07% for the Zacks 2010 Lifecycle Index and 11.45% for the Dow Jones Target 2010 Index. The fund’s performance benefited from favorable results in several equity sectors, in particular Financials, Information Technology, and Consumer Discretionary, partially offset by the Fund’s heavier weighting to fixed income securities, in particular short-term U.S. Treasuries.
Performance as of 5/31/10
Average Annual Total Returns | ||||||||
Net Asset Value | Market Price | Zacks 2010 Lifecycle Index | Dow Jones Target 2010 Index | |||||
One Year | 7.51% | 4.79% | 5.07% | 11.45% | ||||
Since Inception1 | -0.73% | -0.81% | -2.59% | 1.53% | ||||
Cumulative Total Returns | ||||||||
Net Asset Value | Market Price | Zacks 2010 Lifecycle Index | Dow Jones Target 2010 Index | |||||
One Year | 7.51% | 4.79% | 5.07% | 11.45% | ||||
Since Inception1 | -1.92% | -2.15% | -6.77% | 4.12% |
1 Total returns are calculated based on the commencement of trading, 10/1/07 (“Inception”). “Average Annual Total Return” represents the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Return” represents the total change in value of an investment over the period(s) indicated.
Performance quoted represents past performance and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxstrategicadvisors.db.com. Investment in the Fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The gross expense ratio for the fiscal year ended May 31, 2009, as disclosed in the most recent prospectus dated September 28, 2009, was 1.70%. Amerivest Investment Management, LLC, a sub-advisor to the Fund, has agreed to cap its fees and/or pay certain Fund operating expenses in order to limit Fund net annual operating expenses for shares of the Fund to 0.65% of the Fund’s average net assets until at least 9/30/10.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The Fund’s net asset value per share (“NAV”) is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The Dow Jones Target Date Indexes are indexes whose allocations are automatically adjusted to reduce potential risk over time. The Dow Jones Target Date Indexes are designed to measure the performance of multi-asset class portfolios that allocate among U.S. and global stock, bond and cash subindexes on a monthly basis. The indexes automatically adjust their asset allocation over time to reflect reductions in potential risk as the investor’s target date approaches.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes on transactions in Fund shares or that a shareholder would pay on Fund distributions or the redemption of Fund shares.
“Target Date” refers to a time in the future, generally a specified year, in which the investor expects to retire or otherwise require the use of the invested funds. Target date funds are generally more aggressive the further the target date is from the present, with an objective of capital appreciation. As the target date approaches, the Fund’s objective will generally become more conservative, aiming to achieve a higher level of capital preservation.
Investors should note that although target date funds aim to preserve capital as the target date approaches, there is no guarantee that the Fund will achieve this objective.
4
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED) (CONTINUED)
TDX Independence 2010 Exchange-Traded Fund (TDD) (Continued)
Growth of a $10,000 Investment in TDD2 as of 5/31/10
2 Based on Net Asset Value from commencement of trading, 10/1/07.
Asset Class Breakdown* as of 5/31/10
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
Top Ten Holdings3 as of 5/31/10
Top Ten Equity Holdings | ||||||
Description | Shares | Value | % of Net Assets | |||
Exxon Mobil Corp. | 1,859 | $112,394 | 0.6% | |||
Microsoft Corp. | 3,157 | 81,450 | 0.4% | |||
Apple, Inc. | 310 | 79,719 | 0.4% | |||
Wal-Mart Stores, Inc. | 1,435 | 72,553 | 0.4% | |||
General Electric Co. | 3,717 | 60,772 | 0.3% | |||
Procter & Gamble (The) Co. | 989 | 60,417 | 0.3% | |||
International Business Machines Corp. | 465 | 58,246 | 0.3% | |||
Johnson & Johnson | 981 | 57,191 | 0.3% | |||
AT&T, Inc. | 2,260 | 54,918 | 0.3% | |||
Chevron Corp. | 733 | 54,146 | 0.3% | |||
Top Ten Fixed Income Holdings | ||||||
Description | Principal Amount | Value | % of Net Assets | |||
U.S. Treasury Note/Bond, 4.75%, 5/15/14 | $1,356,100 | $1,514,065 | 8.1% | |||
U.S. Treasury Note/Bond, 1.38%, 4/15/12 | 1,398,700 | 1,416,567 | 7.6% | |||
U.S. Treasury Note/Bond, 2.00%, 9/30/10 | 1,353,600 | 1,361,743 | 7.3% | |||
U.S. Treasury Note/Bond, 2.75%, 7/31/10 | 885,100 | 888,972 | 4.8% | |||
U.S. Treasury Note/Bond, 3.38%, 7/31/13 | 820,200 | 871,847 | 4.7% | |||
Fed. Home Loan Mort. Corp., 3.25%, 2/25/11 | 720,000 | 733,861 | 3.9% | |||
Fed. Natl. Mort. Assoc., 5.00%, 5/11/17 | 548,000 | 614,434 | 3.3% | |||
Fed. Home Loan Mort. Corp., 3.25%, 2/25/11 | 498,000 | 538,939 | 2.9% | |||
U.S. Treasury Note/Bond, 7.50%, 11/15/16 | 267,800 | 345,504 | 1.9% | |||
Fed. Natl. Mort. Assoc., 5.00%, 4/15/15 | 278,000 | 313,440 | 1.7% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings, go to www.dbxstrategicadvisors.db.com.
Sector Breakdown* as of 5/31/10
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
5
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED)
TDX Independence 2020 Exchange-Traded Fund (TDH)
The TDX Independence 2020 Exchange-Traded Fund (the “Fund”) commenced investment operations and its shares began trading on NYSE Arca, Inc. (“NYSE Arca”) on October 1, 2007. The Fund seeks to track the performance, before fees and expenses, of the Zacks 2020 Lifecycle Index. Both the Fund’s equity and bond portfolios held fewer securities than the Zacks 2020 Lifecycle Index, a constraint imposed by the relatively small size of the Fund.
For the fiscal year ended May 31, 2010, the Fund’s net asset value increased 13.99%, compared to an increase of 12.66% for the Zacks 2020 Lifecycle Index and 15.10% for the Dow Jones Target 2020 Index. The fund’s performance benefitted from favorable results in several equity sectors, in particular Financials, Information Technology and Consumer Discretionary and strong performance in intermediate-term U.S. Treasuries.
Performance as of 5/31/10
Average Annual Total Returns | ||||||||
Net Asset Value | Market Price | Zacks 2020 Lifecycle Index | Dow Jones Target 2020 Index | |||||
One Year | 13.99% | 13.75% | 12.66% | 15.10% | ||||
Since Inception1 | -5.51% | -6.14% | -7.18% | -2.43% | ||||
Cumulative Total Returns | ||||||||
Net Asset Value | Market Price | Zacks 2020 Lifecycle Index | Dow Jones Target 2020 Index | |||||
One Year | 13.99% | 13.75% | 12.66% | 15.10% | ||||
Since Inception1 | -14.00% | -15.54% | -18.01% | -6.35% |
1 Total returns are calculated based on the commencement of trading, 10/1/07 (“Inception”). “Average Annual Total Return” represents the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Return” represents the total change in value of an investment over the period(s) indicated.
Performance quoted represents past performance and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxstrategicadvisors.db.com. Investment in the Fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The gross expense ratio for the fiscal year ended May 31, 2009, as disclosed in the most recent prospectus dated September 28, 2009, was 1.60%. Amerivest Investment Management, LLC, a sub-advisor to the Fund, has agreed to cap its fees and/or pay certain Fund operating expenses in order to limit Fund net annual operating expenses for shares of the Fund to 0.65% of the Fund’s average net assets until at least 9/30/10.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The Fund’s net asset value per share (“NAV”) is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The Dow Jones Target Date Indexes are indexes whose allocations are automatically adjusted to reduce potential risk over time. The Dow Jones Target Date Indexes are designed to measure the performance of multi-asset class portfolios that allocate among U.S. and global stock, bond and cash subindexes on a monthly basis. The indexes automatically adjust their asset allocation over time to reflect reductions in potential risk as the investor’s target date approaches.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes on transactions in Fund shares or that a shareholder would pay on Fund distributions or the redemption of Fund shares.
“Target Date” refers to a time in the future, generally a specified year, in which the investor expects to retire or otherwise require the use of the invested funds. Target date funds are generally more aggressive the further the target date is from the present, with an objective of capital appreciation. As the target date approaches, the Fund’s objective will generally become more conservative, aiming to achieve a higher level of capital preservation.
Investors should note that although target date funds aim to preserve capital as the target date approaches, there is no guarantee that the Fund will achieve this objective.
6
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED) (CONTINUED)
TDX Independence 2020 Exchange-Traded Fund (TDH) (Continued)
Growth of a $10,000 Investment in TDH2 as of 5/31/10
2 Based on Net Asset Value from commencement of trading, 10/1/07.
Asset Class Breakdown* as of 5/31/10
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
Top Ten Holdings3 as of 5/31/10
Top Ten Equity Holdings | ||||||
Description | Shares | Value | % of Net Assets | |||
Exxon Mobil Corp. | 12,352 | $746,803 | 1.8% | |||
Microsoft Corp. | 21,392 | 551,913 | 1.3% | |||
Apple, Inc. | 2,093 | 538,236 | 1.3% | |||
Wal-Mart Stores, Inc. | 9,744 | 492,656 | 1.2% | |||
General Electric Co. | 26,217 | 428,647 | 1.0% | |||
Procter & Gamble (The) Co. | 6,598 | 403,072 | 1.0% | |||
Johnson & Johnson | 6,564 | 382,682 | 0.9% | |||
Chevron Corp. | 5,075 | 374,890 | 0.9% | |||
International Business Machines Corp. | 2,976 | 372,774 | 0.9% | |||
Google, Inc., Class A | 765 | 371,163 | 0.9% | |||
Top Ten Fixed Income Holdings | ||||||
Description | Principal Amount | Value | % of Net Assets | |||
U.S. Treasury Note/Bond, 5.00%, 8/15/11 | $949,700 | $1,001,488 | 2.4% | |||
U.S. Treasury Note/Bond, 4.75%, 5/15/14 | 817,400 | 912,615 | 2.2% | |||
U.S. Treasury Note/Bond, 8.13%, 8/15/19 | 615,000 | 854,418 | 2.1% | |||
U.S. Treasury Note/Bond, 3.38%, 7/31/13 | 774,800 | 823,588 | 2.0% | |||
Fed. Home Loan Mort. Corp., 4.50%, 1/15/13 | 750,000 | 811,654 | 2.0% | |||
U.S. Treasury Note/Bond, 6.25%, 5/15/30 | 499,300 | 650,026 | 1.6% | |||
U.S. Treasury Note/Bond, 7.63%, 2/15/25 | 372,200 | 529,745 | 1.3% | |||
Fed. Natl. Mort. Assoc., 5.00%, 5/11/17 | 448,000 | 502,312 | 1.2% | |||
Wachovia Corp., 5.25%, 8/01/14 | 373,000 | 396,173 | 1.0% | |||
Fed. Natl. Mort. Assoc., 5.00%, 4/15/15 | 335,000 | 377,706 | 0.9% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings, go to www.dbxstrategicadvisors.db.com.
Sector Breakdown* as of 5/31/10
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
7
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED)
TDX Independence 2030 Exchange-Traded Fund (TDN)
The TDX Independence 2030 Exchange-Traded Fund (the “Fund”) commenced investment operations and its shares began trading on NYSE Arca, Inc. (“NYSE Arca”) on October 1, 2007. The Fund seeks to track the performance, before fees and expenses, of the Zacks 2030 Lifecycle Index. Both the Fund’s equity and bond portfolios held fewer securities than the Zacks 2030 Lifecycle Index, a constraint imposed by the relatively small size of the Fund.
For the fiscal year ended May 31, 2010, the Fund’s net asset value increased 15.13%, compared to an increase of 15.03% for the Zacks 2030 Lifecycle Index and 19.37% for the Dow Jones Target 2030 Index. The fund’s performance benefitted from its heavy weighting to equities with favorable results in several sectors, in particular Financials, Information Technology and Consumer Discretionary.
Performance as of 5/31/10
Average Annual Total Returns | ||||||||
Net Asset Value | Market Price | Zacks 2030 Lifecycle Index | Dow Jones Target 2030 Index | |||||
One Year | 15.13% | 16.23% | 15.03% | 19.37% | ||||
Since Inception1 | -10.50% | -11.51% | -11.05% | -5.63% | ||||
Cumulative Total Returns | ||||||||
Net Asset Value | Market Price | Zacks 2030 Lifecycle Index | Dow Jones Target 2030 Index | |||||
One Year | 15.13% | 16.23% | 15.03% | 19.37% | ||||
Since Inception1 | -25.61% | -27.81% | -26.81% | -14.32% |
1 Total returns are calculated based on the commencement of trading, 10/1/07 (“Inception”). “Average Annual Total Return” represents the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Return” represents the total change in value of an investment over the period(s) indicated.
Performance quoted represents past performance and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxstrategicadvisors.db.com. Investment in the Fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The gross expense ratio for the fiscal year ended May 31, 2009, as disclosed in the most recent prospectus dated September 28, 2009, was 1.62%. Amerivest Investment Management, LLC, a sub-advisor to the Fund, has agreed to cap its fees and/or pay certain Fund operating expenses in order to limit Fund net annual operating expenses for shares of the Fund to 0.65% of the Fund’s average net assets until at least 9/30/10.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The Fund’s net asset value per share (“NAV”) is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The Dow Jones Target Date Indexes are indexes whose allocations are automatically adjusted to reduce potential risk over time. The Dow Jones Target Date Indexes are designed to measure the performance of multi-asset class portfolios that allocate among U.S. and global stock, bond and cash subindexes on a monthly basis. The indexes automatically adjust their asset allocation over time to reflect reductions in potential risk as the investor’s target date approaches.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes on transactions in Fund shares or that a shareholder would pay on Fund distributions or the redemption of Fund shares.
“Target Date” refers to a time in the future, generally a specified year, in which the investor expects to retire or otherwise require the use of the invested funds. Target date funds are generally more aggressive the further the target date is from the present, with an objective of capital appreciation. As the target date approaches, the Fund’s objective will generally become more conservative, aiming to achieve a higher level of capital preservation.
Investors should note that although target date funds aim to preserve capital as the target date approaches, there is no guarantee that the Fund will achieve this objective.
8
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED) (CONTINUED)
TDX Independence 2030 Exchange-Traded Fund (TDN) (Continued)
Growth of a $10,000 Investment in TDN2 as of 5/31/10
2 Based on Net Asset Value from commencement of trading, 10/1/07.
Asset Class Breakdown* as of 5/31/10
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
Top Ten Holdings3 as of 5/31/10
Top Ten Equity Holdings | ||||||
Description | Shares | Value | % of Net Assets | |||
Exxon Mobil Corp. | 13,181 | $796,922 | 2.4% | |||
Apple, Inc. | 2,329 | 598,925 | 1.8% | |||
Microsoft Corp. | 22,889 | 590,535 | 1.8% | |||
Wal-Mart Stores, Inc. | 10,313 | 521,425 | 1.6% | |||
Procter & Gamble (The) Co. | 7,133 | 435,755 | 1.3% | |||
General Electric Co. | 26,428 | 432,099 | 1.3% | |||
International Business Machines Corp. | 3,300 | 413,357 | 1.3% | |||
Johnson & Johnson | 7,000 | 408,099 | 1.3% | |||
Chevron Corp. | 5,426 | 400,819 | 1.2% | |||
AT&T, Inc. | 16,285 | 395,726 | 1.2% | |||
Top Ten Fixed Income Holdings | ||||||
Description | Principal Amount | Value | % of Net Assets | |||
U.S. Treasury Note/Bond, 4.38%, 2/15/38 | $400,200 | $411,143 | 1.3% | |||
U.S. Treasury Note/Bond, 4.75%, 5/15/14 | 331,900 | 370,561 | 1.1% | |||
U.S. Treasury Note/Bond, 7.50%, 11/15/16 | 216,300 | 279,061 | 0.9% | |||
Cellco Partnership/Verizon Wireless Capital LLC, 5.55%, 2/01/14 | 242,000 | 267,742 | 0.8% | |||
American Express Co., 4.88%, 7/15/13 | 223,000 | 237,717 | 0.7% | |||
Fed. Natl. Mort. Assoc., 5.00%, 4/15/15 | 205,000 | 231,134 | 0.7% | |||
U.S. Treasury Note/Bond, 1.75%, 11/15/11 | 164,000 | 166,729 | 0.5% | |||
Fed. Natl. Mort. Assoc., 5.00%, 5/11/17 | 138,000 | 154,730 | 0.5% | |||
Exelon Generation Co. LLC, 5.35%, 1/15/14 | 134,000 | 144,994 | 0.4% | |||
Wyeth, 5.50%, 2/01/14 | 125,000 | 139,078 | 0.4% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings, go to www.dbxstrategicadvisors.db.com.
Sector Breakdown* as of 5/31/10
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
9
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED)
TDX Independence 2040 Exchange-Traded Fund (TDV)
The TDX Independence 2040 Exchange-Traded Fund (the “Fund”) commenced investment operations and its shares began trading on NYSE Arca, Inc. (“NYSE Arca”) on October 1, 2007. The Fund seeks to track the performance, before fees and expenses, of the Zacks 2040 Lifecycle Index. Both the Fund’s equity and bond portfolios held fewer securities than the Zacks 2040 Lifecycle Index, a constraint imposed by the relatively small size of the Fund.
For the fiscal year ended May 31, 2010, the Fund’s net asset value increased 15.59%, compared to an increase of 16.13% for the Zacks 2040 Lifecycle Index and 21.82% for the Dow Jones Target 2040 Index. The underperformance versus the Zachs 2040 Lifecycle Index can be attributed to the management fee charged by the fund. Indexes are unmanaged and do not include management fees, transaction costs or taxes that a fund would incur. Such expenses and charges would reduce index returns. The fund’s performance benefitted from its heavy weighting to equities with favorable results in several sectors, in particular Financials, Information Technology and Consumer Discretionary.
Performance as of 5/31/10
Average Annual Total Returns | ||||||||
Net Asset Value | Market Price | Zacks 2040 Lifecycle Index | Dow Jones Target 2040 Index | |||||
One Year | 15.59% | 11.03% | 16.13% | 21.82% | ||||
Since Inception1 | -12.01% | -12.95% | -13.04% | -7.28% | ||||
Cumulative Total Returns | ||||||||
Net Asset Value | Market Price | Zacks 2040 Lifecycle Index | Dow Jones Target 2040 Index | |||||
One Year | 15.59% | 11.03% | 16.13% | 21.82% | ||||
Since Inception1 | -28.89% | -30.90% | -31.10% | -18.26% |
1 Total returns are calculated based on the commencement of trading, 10/1/07 (“Inception”). “Average Annual Total Return” represents the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Return” represents the total change in value of an investment over the period(s) indicated.
Performance quoted represents past performance and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxstrategicadvisors.db.com. Investment in the Fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The gross expense ratio for the fiscal year ended May 31, 2009, as disclosed in the most recent prospectus dated September 28, 2009, was 1.65%. Amerivest Investment Management, LLC, a sub-advisor to the Fund, has agreed to cap its fees and/or pay certain Fund operating expenses in order to limit Fund net annual operating expenses for shares of the Fund to 0.65% of the Fund’s average net assets until at least 9/30/10.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The Fund’s net asset value per share (“NAV”) is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The Dow Jones Target Date Indexes are indexes whose allocations are automatically adjusted to reduce potential risk over time. The Dow Jones Target Date Indexes are designed to measure the performance of multi-asset class portfolios that allocate among U.S. and global stock, bond and cash subindexes on a monthly basis. The indexes automatically adjust their asset allocation over time to reflect reductions in potential risk as the investor’s target date approaches.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes on transactions in Fund shares or that a shareholder would pay on Fund distributions or the redemption of Fund shares.
“Target Date” refers to a time in the future, generally a specified year, in which the investor expects to retire or otherwise require the use of the invested funds. Target date funds are generally more aggressive the further the target date is from the present, with an objective of capital appreciation. As the target date approaches, the Fund’s objective will generally become more conservative, aiming to achieve a higher level of capital preservation.
Investors should note that although target date funds aim to preserve capital as the target date approaches, there is no guarantee that the Fund will achieve this objective.
10
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED) (CONTINUED)
TDX Independence 2040 Exchange-Traded Fund (TDV) (Continued)
Growth of a $10,000 Investment in TDV2 as of 5/31/10
2 Based on Net Asset Value from commencement of trading, 10/1/07.
Asset Class Breakdown* as of 5/31/10
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
Top Ten Holdings3 as of 5/31/10
Top Ten Equity Holdings | ||||||
Description | Shares | Value | % of Net Assets | |||
Exxon Mobil Corp. | 14,420 | $871,832 | 2.8% | |||
Apple, Inc. | 2,536 | 652,157 | 2.1% | |||
Microsoft Corp. | 25,147 | 648,793 | 2.1% | |||
Wal-Mart Stores, Inc. | 11,417 | 577,245 | 1.8% | |||
General Electric Co. | 29,314 | 479,283 | 1.5% | |||
Procter & Gamble (The) Co. | 7,807 | 476,930 | 1.5% | |||
International Business Machines Corp. | 3,594 | 450,184 | 1.4% | |||
Johnson & Johnson | 7,708 | 449,376 | 1.4% | |||
Chevron Corp. | 5,935 | 438,418 | 1.4% | |||
AT&T, Inc. | 17,903 | 435,043 | 1.4% | |||
Top Ten Fixed Income Holdings | ||||||
Description | Principal Amount | Value | % of Net Assets | |||
U.S. Treasury Note/Bond, 8.13%, 8/15/19 | $90,400 | $125,592 | 0.4% | |||
U.S. Treasury Note/Bond, 7.63%, 2/15/25 | 70,600 | 100,484 | 0.3% | |||
U.S. Treasury Note/Bond, 3.25% 7/31/16 | 74,000 | 76,896 | 0.2% | |||
Goldman Sachs Group (The), Inc., 6.75%, 10/01/37 | 69,000 | 64,795 | 0.2% | |||
U.S. Treasury Note/Bond, 5.00%, 5/15/37 | 49,100 | 55,736 | 0.2% | |||
American Express Co., 4.88%, 7/15/13 | 49,000 | 52,234 | 0.2% | |||
Fed. Natl. Mort. Assoc., 5.00%, 4/15/15 | 43,000 | 48,482 | 0.2% | |||
U.S. Treasury Note/Bond, 4.38%, 2/15/38 | 46,000 | 47,258 | 0.2% | |||
Cellco Partnership/Verizon Wireless Capital LLC, 5.55%, 2/01/14 | 40,000 | 44,255 | 0.1% | |||
U.S. Treasury Note/Bond, 6.25%, 5/15/30 | 28,600 | 37,234 | 0.1% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings, go to www.dbxstrategicadvisors.db.com.
Sector Breakdown* as of 5/31/10
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
11
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED)
TDX Independence In-Target Exchange-Traded Fund (TDX)
The TDX Independence In-Target Exchange-Traded Fund (the “Fund”) commenced investment operations and its shares began trading on NYSE Arca, Inc. (“NYSE Arca”) on October 1, 2007. The Fund seeks to track the performance, before fees and expenses, of the Zacks In-Target Lifecycle Index. Both the Fund’s equity and bond portfolios held fewer securities than the Zacks In-Target Lifecycle Index, a constraint imposed by the relatively small size of the Fund.
For the fiscal year ended May 31, 2010, the Fund’s net asset value increased 4.23%, compared to an increase of 1.14% for the Zacks In-Target Lifecycle Index and 9.61% for the Dow Jones Target Today Index. The fund’s performance benefited from favorable results in several equity sectors, in particular Financials, Information Technology, and Consumer Discretionary, partially offset by the Fund’s heavier weighting to fixed income securities, in particular short-term U.S. Treasuries.
Performance as of 5/31/10
Average Annual Total Returns | ||||||||
Net Asset Value | Market Price | Zacks In-Target Lifecycle Index | Dow Jones Target Today Index | |||||
One Year | 4.23% | 3.03% | 1.14% | 9.61% | ||||
Since Inception1 | 1.65% | 0.92% | -0.99% | 3.69% | ||||
Cumulative Total Returns | ||||||||
Net Asset Value | Market Price | Zacks In-Target Lifecycle Index | Dow Jones Target Today Index | |||||
One Year | 4.23% | 3.03% | 1.14% | 9.61% | ||||
Since Inception1 | 4.45% | 2.47% | -2.61% | 10.14% |
1 Total returns are calculated based on the commencement of trading, 10/1/07 (“Inception”). “Average Annual Total Return” represents the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Return” represents the total change in value of an investment over the period(s) indicated.
Performance quoted represents past performance and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxstrategicadvisors.db.com. Investment in the Fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The gross expense ratio for the fiscal year ended May 31, 2009, as disclosed in the most recent prospectus dated September 28, 2009, was 1.66%*. Amerivest Investment Management, LLC, a sub-advisor to the Fund, has agreed to cap its fees and/or pay certain Fund operating expenses in order to limit Fund net annual operating expenses for shares of the Fund to 0.65% of the Fund’s average net assets until at least 9/30/10.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The Fund’s net asset value per share (“NAV”) is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The Dow Jones Target Date Indexes are indexes whose allocations are automatically adjusted to reduce potential risk over time. The Dow Jones Target Date Indexes are designed to measure the performance of multi-asset class portfolios that allocate among U.S. and global stock, bond and cash subindexes on a monthly basis. The indexes automatically adjust their asset allocation over time to reflect reductions in potential risk as the investor’s target date approaches.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes on transactions in Fund shares or that a shareholder would pay on Fund distributions or the redemption of Fund shares.
“Target Date” refers to a time in the future, generally a specified year, in which the investor expects to retire or otherwise require the use of the invested funds. Target date funds are generally more aggressive the further the target date is from the present, with an objective of capital appreciation. As the target date approaches, the Fund’s objective will generally become more conservative, aiming to achieve a higher level of capital preservation.
Investors should note that although target date funds aim to preserve capital as the target date approaches, there is no guarantee that the Fund will achieve this objective.
* The fees and expenses are restated to reflect a higher gross expense ratio (before expense reduction/reimbursement) resulting from a decline in assets under management since May 31, 2009.
12
TDX Independence Funds, Inc.
PERFORMANCE SUMMARY (UNAUDITED) (CONTINUED)
TDX Independence In-Target Exchange-Traded Fund (TDX) (Continued)
Growth of a $10,000 Investment in TDX2 as of 5/31/10
2 Based on Net Asset Value from commencement of trading, 10/1/07.
Asset Class Breakdown* as of 5/31/10
*Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
Top Ten Holdings3 as of 5/31/10
Top Ten Equity Holdings | ||||||
Description | Shares | Value | % of Net Assets | |||
Exxon Mobil Corp. | 1,943 | $117,475 | 0.6% | |||
Apple, Inc. | 337 | 86,662 | 0.4% | |||
Microsoft Corp. | 3,338 | 86,119 | 0.4% | |||
Wal-Mart Stores, Inc. | 1,534 | 77,560 | 0.4% | |||
General Electric Co. | 3,960 | 64,745 | 0.3% | |||
Procter & Gamble (The) Co. | 1,027 | 62,739 | 0.3% | |||
International Business Machines Corp. | 500 | 62,629 | 0.3% | |||
Johnson & Johnson | 1,015 | 59,174 | 0.3% | |||
Chevron Corp. | 795 | 58,727 | 0.3% | |||
AT&T, Inc. | 2,397 | 58,248 | 0.3% | |||
Top Ten Fixed Income Holdings | ||||||
Description | Principal Amount | Value | % of Net Assets | |||
U.S. Treasury Note/Bond, 4.88%, 5/31/11 | $2,358,100 | $2,462,372 | 12.3% | |||
U.S. Treasury Note/Bond, 5.13%, 6/30/11 | 1,674,600 | 1,758,985 | 8.8% | |||
U.S. Treasury Note/Bond, 3.88%, 7/15/10 | 1,491,900 | 1,498,836 | 7.5% | |||
U.S. Treasury Note/Bond, 4.75%, 5/15/14 | 1,270,400 | 1,418,383 | 7.1% | |||
U.S. Treasury Note/Bond, 4.25%, 9/30/12 | 1,050,000 | 1,132,195 | 5.6% | |||
U.S. Treasury Note/Bond, 5.00%, 2/15/11 | 1,043,100 | 1,077,531 | 5.4% | |||
U.S. Treasury Note/Bond, 4.88%, 4/30/11 | 920,700 | 958,175 | 4.8% | |||
U.S. Treasury Note/Bond, 4.50%, 11/15/10 | 819,300 | 835,238 | 4.2% | |||
U.S. Treasury Note/Bond, 4.50%, 11/30/11 | 735,000 | 777,779 | 3.9% | |||
U.S. Treasury Note/Bond, 4.63%, 2/29/12 | 685,000 | 732,308 | 3.7% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings, go to www.dbxstrategicadvisors.db.com.
Sector Breakdown* as of 5/31/10
*Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).
13
TDX Independence Funds, Inc.
As a shareholder of one or more of the various TDX Independence ETFs (each, a “Fund” and collectively, the “Funds” or “TDX Independence Exchange-Traded Funds”), you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held through the six month period ended May 31, 2010.
ACTUAL EXPENSES
The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses (which is not the Funds’ actual return). The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value December 1, 2009 | Ending Account Value May 31, 2010 | Annualized Expense Ratio(1) based on the number of days in the period | Expenses Paid During the Period(2) December 1, 2009 to May 31, 2010 | |||||||||
TDX Independence 2010 Exchange-Traded Fund | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,000.38 | 0.65 | % | $ | 3.24 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 | ||||
TDX Independence 2020 Exchange-Traded Fund | ||||||||||||
Actual | $ | 1,000.00 | $ | 987.28 | 0.65 | % | $ | 3.22 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 | ||||
TDX Independence 2030 Exchange-Traded Fund | ||||||||||||
Actual | $ | 1,000.00 | $ | 978.37 | 0.65 | % | $ | 3.21 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 | ||||
TDX Independence 2040 Exchange-Traded Fund | ||||||||||||
Actual | $ | 1,000.00 | $ | 972.74 | 0.65 | % | $ | 3.20 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 | ||||
TDX Independence In-Target Exchange-Traded Fund | ||||||||||||
Actual | $ | 1,000.00 | $ | 995.38 | 0.65 | % | $ | 3.23 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 |
(1) Amerivest Investment Management, LLC (“Amerivest”), a sub-advisor to the Funds, has contractually agreed to pay Fund operating expenses (excluding, among other things, acquired fund fees and expenses, interest, taxes, brokerage commissions and extraordinary expenses) in order to limit the Net Annual Operating Expenses for shares of each Fund to 0.65% of the Fund’s average net assets (the “Expense Cap”). The Expense Cap will remain in effect until at least September 30, 2010. Amerivest is permitted to be reimbursed for fee reductions and/or expense payments made in the prior three fiscal years. This reimbursement may be requested by Amerivest if the aggregate amount actually paid by the Fund toward operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the Expense Cap. Ratios would have been higher if fees were not reduced by Amerivest.
(2) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period December 1, 2010 to May 31, 2010. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period; then multiplying the result by 182 days and then dividing the result by 365.
14
TDX Independence Funds, Inc.
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND
May 31, 2010
Number of Shares | Value | ||||
COMMON STOCKS — 20.7% | |||||
CONSUMER DISCRETIONARY — 2.2% | |||||
Amazon.com, Inc.* | 155 | $ | 19,446 | ||
Ameristar Casinos, Inc. | 172 | 3,099 | |||
AutoZone, Inc.* | 22 | 4,199 | |||
Bally Technologies, Inc.* | 152 | 6,460 | |||
Brown Shoe Co., Inc. | 518 | 8,640 | |||
Buckle (The), Inc. | 143 | 5,084 | |||
Carter’s, Inc.* | 159 | 4,859 | |||
Cinemark Holdings, Inc. | 334 | 5,341 | |||
Collective Brands, Inc.* | 160 | 3,581 | |||
Columbia Sportswear Co. | 101 | 5,169 | |||
Comcast Corp., Class A | 1,113 | 20,134 | |||
Cooper Tire & Rubber Co. | 80 | 1,513 | |||
Corinthian Colleges, Inc.* | 297 | 3,977 | |||
Daimler AG (Germany)* | 168 | 8,349 | |||
DIRECTV, Class A* | 371 | 13,983 | |||
Dress Barn (The), Inc.* | 200 | 5,478 | |||
Eastman Kodak Co.* | 559 | 3,153 | |||
Ethan Allen Interiors, Inc. | 322 | 6,504 | |||
Ford Motor Co.* | 1,096 | 12,856 | |||
Fossil, Inc.* | 205 | 7,688 | |||
Hennes & Mauritz AB, B Shares (Sweden) | 102 | 5,753 | |||
Home Depot (The), Inc. | 641 | 21,704 | |||
HONDA MOTOR Co. Ltd. (Japan) | 461 | 14,082 | |||
Iconix Brand Group, Inc.* | 205 | 3,331 | |||
J. Crew Group, Inc.* | 149 | 6,800 | |||
Jack in the Box, Inc.* | 167 | 3,747 | |||
Knology, Inc.* | 471 | 5,633 | |||
Las Vegas Sands Corp.* | 160 | 3,757 | |||
Life Time Fitness, Inc.* | 150 | 5,567 | |||
LVMH Moet Hennessy Louis Vuitton SA (France) | 54 | 5,721 | |||
Marcus (The) Corp. | 328 | 3,592 | |||
McDonald’s Corp. | 420 | 28,086 | |||
Men’s Wearhouse (The), Inc. | 161 | 3,500 | |||
News Corp., Class A | 729 | 9,623 | |||
Nissan Motor Co. Ltd. (Japan)* | 515 | 3,749 | |||
Omnicom Group, Inc. | 121 | 4,592 | |||
Panasonic Corp. (Japan) | 444 | 5,712 | |||
Rent-A-Center, Inc.* | 197 | 4,771 | |||
Sony Corp. (Japan) | 242 | 7,552 | |||
Talbots (The), Inc.* | 738 | 11,100 | |||
Target Corp. | 317 | 17,286 | |||
Time Warner, Inc. | 446 | 13,822 | |||
Toyota Motor Corp. (Japan) | 565 | 20,503 | |||
Tractor Supply Co. | 96 | 6,505 | |||
Tupperware Brands Corp. | 140 | 5,949 | |||
Vail Resorts, Inc.* | 110 | 4,577 | |||
Vivendi (France) | 257 | 5,622 | |||
Volcom, Inc.* | 300 | 5,988 | |||
Volkswagen AG (Germany) | 15 | 1,279 | |||
Walt Disney (The) Co. | 669 | 22,358 | |||
Warnaco Group (The), Inc.* | 134 | 5,707 | |||
417,481 | |||||
Number of Shares | Value | ||||
CONSUMER STAPLES — 2.1% | |||||
Anheuser-Busch Inbev NV (Belgium) | 134 | $ | 6,466 | ||
B&G Foods, Inc., Class A | 468 | 4,961 | |||
Boston Beer (The) Co., Inc., Class A* | 122 | 8,058 | |||
British American Tobacco PLC (United Kingdom) | 357 | 10,543 | |||
Campbell Soup Co. | 133 | 4,763 | |||
Carrefour SA (France) | 125 | 5,212 | |||
Casey’s General Stores, Inc. | 140 | 5,162 | |||
Coca-Cola (The) Co. | 795 | 40,863 | |||
CVS Caremark Corp. | 553 | 19,150 | |||
Diageo PLC (United Kingdom) | 476 | 7,261 | |||
Fresh Del Monte Produce, Inc. (Cayman Islands)* | 146 | 2,920 | |||
Imperial Tobacco Group PLC (United Kingdom) | 204 | 5,309 | |||
Kraft Foods, Inc., Class A | 504 | 14,414 | |||
Lancaster Colony Corp. | 72 | 3,936 | |||
Molson Coors Brewing Co., Class B | 74 | 3,037 | |||
Nestle SA (Switzerland) | 697 | 31,615 | |||
Philip Morris International, Inc. | 715 | 31,546 | |||
Prestige Brands Holdings, Inc.* | 607 | 4,686 | |||
Procter & Gamble (The) Co. | 989 | 60,417 | |||
Reckitt Benckiser Group PLC (United Kingdom) | 103 | 4,833 | |||
Ruddick Corp. | 149 | 4,920 | |||
Safeway, Inc. | 183 | 4,052 | |||
Tesco PLC (United Kingdom) | 1,556 | 9,260 | |||
Tootsie Roll Industries, Inc. | 161 | 4,031 | |||
Unilever NV (Netherlands) | 317 | 8,725 | |||
Unilever PLC (United Kingdom) | 249 | 6,725 | |||
Wal-Mart Stores, Inc. | 1,435 | 72,553 | |||
385,418 | |||||
ENERGY — 2.3% | |||||
Arena Resources, Inc.* | 129 | 4,242 | |||
ATP Oil & Gas Corp.* | 452 | 4,809 | |||
Berry Petroleum Co., Class A | 80 | 2,459 | |||
BG Group PLC (United Kingdom) | 731 | 11,214 | |||
Bill Barrett Corp.* | 144 | 4,689 | |||
BP PLC (United Kingdom) | 3,854 | 27,572 | |||
Chevron Corp. | 733 | 54,146 | |||
ConocoPhillips | 551 | 28,574 | |||
Dril-Quip, Inc.* | 117 | 5,699 | |||
ENI S.p.A (Italy) | 549 | 10,392 | |||
Exxon Mobil Corp. | 1,859 | 112,394 | |||
General Maritime Corp. (Marshall Islands) | 448 | 3,096 | |||
ION Geophysical Corp.* | 1,395 | 7,575 | |||
Matrix Service Co.* | 370 | 3,641 | |||
Murphy Oil Corp. | 85 | 4,537 | |||
Nordic American Tanker Shipping Ltd. (Bermuda) | 129 | 3,664 | |||
Occidental Petroleum Corp. | 269 | 22,195 | |||
Peabody Energy Corp. | 81 | 3,156 | |||
Repsol YPF SA (Spain) | 162 | 3,356 | |||
Royal Dutch Shell PLC, Class A (United Kingdom) | 771 | 20,322 |
See Notes to Financial Statements. | 15 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number of Shares | Value | ||||
ENERGY (Continued) | |||||
Royal Dutch Shell PLC, Class B (United Kingdom) | 595 | $ | 15,068 | ||
Schlumberger Ltd. (Netherlands Antilles) | 409 | 22,965 | |||
Southwestern Energy Co.* | 257 | 9,666 | |||
StatoilHydro ASA (Norway) | 270 | 5,440 | |||
Total SA (France) | 462 | 21,726 | |||
Woodside Petroleum Ltd. (Australia) | 109 | 4,016 | |||
World Fuel Services Corp. | 185 | 4,816 | |||
421,429 | |||||
FINANCIALS — 3.8% | |||||
Aflac, Inc. | 382 | 16,923 | |||
Alexander’s, Inc. REIT | 15 | 4,866 | |||
Allianz SE (Germany) | 94 | 9,451 | |||
American Campus Communities, Inc. REIT | 148 | 3,962 | |||
Annaly Capital Management, Inc. REIT | 421 | 7,140 | |||
Assicurazioni Generali S.p.A (Italy) | 233 | 4,275 | |||
Australia & New Zealand Banking Group Ltd. (Australia) | 371 | 7,082 | |||
AXA (France) | 307 | 5,116 | |||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 633 | 6,733 | |||
Banco Santander SA (Spain) | 1,363 | 14,119 | |||
Bank of America Corp. | 2,917 | 45,913 | |||
Bank of New York Mellon (The) Corp. | 978 | 26,601 | |||
Barclays PLC (United Kingdom) | 1,511 | 6,665 | |||
BB&T Corp. | 515 | 15,574 | |||
BNP Paribas (France) | 165 | 9,557 | |||
Boston Private Financial Holdings, Inc. | 673 | 4,926 | |||
Capital One Financial Corp. | 325 | 13,423 | |||
Charles Schwab (The) Corp. | 924 | 15,098 | |||
Commonwealth Bank of Australia (Australia) | 258 | 11,399 | |||
Credit Suisse Group AG (Switzerland) | 197 | 7,685 | |||
Delphi Financial Group, Inc., Class A | 148 | 3,844 | |||
Deutsche Bank AG (Germany) | 108 | 6,456 | |||
Dime Community Bancshares, Inc. | 373 | 4,759 | |||
Encore Capital Group, Inc.* | 274 | 5,727 | |||
Equity Lifestyle Properties, Inc. REIT | 100 | 5,180 | |||
Equity One, Inc. REIT | 245 | 4,207 | |||
First Financial Bankshares, Inc. | 52 | 2,609 | |||
FirstMerit Corp. | 209 | 3,896 | |||
Franklin Resources, Inc. | 191 | 18,735 | |||
GAMCO Investors, Inc., Class A | 85 | 3,369 | |||
Goldman Sachs Group (The), Inc. | 178 | 25,678 | |||
Highwoods Properties, Inc. REIT | 208 | 6,128 | |||
HSBC Holdings PLC (United Kingdom) | 3,505 | 31,814 | |||
Intesa Sanpaolo S.p.A (Italy) | 1,601 | 4,240 | |||
JPMorgan Chase & Co. | 1,362 | 53,907 | |||
Kansas City Life Insurance Co. | 136 | 4,118 | |||
KBW, Inc.* | 109 | 2,735 | |||
Knight Capital Group, Inc., Class A* | 253 | 3,696 | |||
MarketAxess Holdings, Inc. | 333 | 4,915 | |||
MFA Financial, Inc. REIT | 618 | 4,530 | |||
Mid-America Apartment Communities, Inc. REIT | 86 | 4,698 | |||
Mitsubishi UFJ Financial Group, Inc. (Japan) | 2,391 | 11,674 | |||
Montpelier Re Holdings Ltd. (Bermuda) | 229 | 3,575 | |||
Moody’s Corp. | 185 | 3,793 |
Number of Shares | Value | ||||
FINANCIALS (Continued) | |||||
Morgan Stanley | 505 | $ | 13,691 | ||
Muenchener Rueckversicherungs-Gesellschaft AG (Germany) | 42 | 5,353 | |||
National Australia Bank Ltd. (Australia) | 350 | 7,352 | |||
National Bank of Greece SA ADR (Greece)* | 778 | 1,906 | |||
National Financial Partners Corp.* | 537 | 7,486 | |||
National Retail Properties, Inc. REIT | 231 | 5,077 | |||
NewAlliance Bancshares, Inc. | 282 | 3,319 | |||
Nordea Bank AB (Sweden) | 600 | 4,937 | |||
Northern Trust Corp. | 181 | 9,197 | |||
Omega Healthcare Investors, Inc. REIT | 230 | 4,568 | |||
optionsXpress Holdings, Inc.* | 160 | 2,568 | |||
Platinum Underwriters Holdings Ltd. (Bermuda) | 118 | 4,344 | |||
Potlatch Corp. REIT | 116 | 4,041 | |||
ProAssurance Corp.* | 87 | 5,121 | |||
Progressive (The) Corp. | 572 | 11,205 | |||
Prosperity Bancshares, Inc. | 121 | 4,361 | |||
Riskmetrics Group, Inc.* | 178 | 3,850 | |||
SCBT Financial Corp. | 149 | 5,333 | |||
Simon Property Group, Inc. REIT | 184 | 15,646 | |||
Societe Generale (France) | 95 | 4,165 | |||
Standard Chartered PLC (United Kingdom) | 384 | 9,089 | |||
Stifel Financial Corp.* | 74 | 3,750 | |||
Sumitomo Mitsui Financial Group, Inc. (Japan) | 162 | 4,860 | |||
Tanger Factory Outlet Centers, Inc. REIT | 91 | 3,787 | |||
Tower Group, Inc. | 109 | 2,388 | |||
UBS AG (Switzerland)* | 674 | 8,985 | |||
UMB Financial Corp. | 103 | 4,012 | |||
UniCredito Italiano S.p.A (Italy) | 3,016 | 6,371 | |||
Washington Real Estate Investment Trust REIT | 165 | 4,848 | |||
Wells Fargo & Co. | 1,677 | 48,112 | |||
Westamerica Bancorp. | 78 | 4,342 | |||
Westpac Banking Corp. (Australia) | 521 | 10,335 | |||
Westwood Holdings Group, Inc. | 89 | 3,306 | |||
Zurich Financial Services AG (Switzerland) | 30 | 6,135 | |||
704,631 | |||||
HEALTH CARE — 2.0% | |||||
Abbott Laboratories | 599 | 28,487 | |||
Amedisys, Inc.* | 100 | 4,972 | |||
AMERIGROUP Corp.* | 156 | 5,604 | |||
AstraZeneca PLC (United Kingdom) | 270 | 11,327 | |||
Bayer AG (Germany) | 173 | 9,727 | |||
Boston Scientific Corp.* | 623 | 3,769 | |||
Bruker Corp.* | 537 | 6,839 | |||
Catalyst Health Solutions, Inc.* | 142 | 5,437 | |||
Emergency Medical Services Corp., Class A* | 114 | 6,107 | |||
eResearch Technology, Inc.* | 658 | 5,225 | |||
Forest Laboratories, Inc.* | 131 | 3,390 | |||
Genzyme Corp.* | 110 | 5,352 | |||
GlaxoSmithKline PLC (United Kingdom) | 962 | 16,093 | |||
Haemonetics Corp.* | 78 | 4,207 | |||
Isis Pharmaceuticals, Inc.* | 302 | 2,778 | |||
Johnson & Johnson | 981 | 57,191 | |||
Magellan Health Services, Inc.* | 114 | 4,639 | |||
Medicis Pharmaceutical Corp., Class A | 189 | 4,383 |
See Notes to Financial Statements. | 16 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number of Shares | Value | ||||
HEALTH CARE (Continued) | |||||
Novartis AG (Switzerland) | 514 | $ | 23,359 | ||
Novo Nordisk A/S, B Shares (Denmark) | 90 | 6,974 | |||
NuVasive, Inc.* | 123 | 4,830 | |||
Onyx Pharmaceuticals, Inc.* | 174 | 3,878 | |||
Owens & Minor, Inc. | 190 | 5,675 | |||
Pfizer, Inc. | 2,511 | 38,242 | |||
Psychiatric Solutions, Inc.* | 171 | 5,537 | |||
Quality Systems, Inc. | 88 | 5,196 | |||
Regeneron Pharmaceuticals, Inc.* | 247 | 7,057 | |||
Roche Holding AG (Switzerland) | 141 | 19,406 | |||
Sanofi-Aventis SA (France) | 221 | 13,358 | |||
SIGA Technologies, Inc.* | 490 | 3,406 | |||
Sirona Dental Systems, Inc.* | 86 | 3,043 | |||
STERIS Corp. | 178 | 5,666 | |||
Takeda Pharmaceutical Co. Ltd. (Japan) | 181 | 7,464 | |||
Thoratec Corp.* | 175 | 7,677 | |||
UnitedHealth Group, Inc. | 428 | 12,442 | |||
WellCare Health Plans, Inc.* | 150 | 4,089 | |||
Zimmer Holdings, Inc.* | 61 | 3,412 | |||
366,238 | |||||
INDUSTRIALS — 2.2% | |||||
A.O. Smith Corp. | 82 | 3,823 | |||
ABB Ltd. (Switzerland)* | 438 | 7,519 | |||
BAE Systems PLC (United Kingdom) | 695 | 3,243 | |||
Baldor Electric Co. | 138 | 4,958 | |||
C.H. Robinson Worldwide, Inc. | 141 | 8,194 | |||
Caterpillar, Inc. | 232 | 14,096 | |||
CLARCOR, Inc. | 141 | 5,113 | |||
CRA International, Inc.* | 146 | 3,244 | |||
Curtiss-Wright Corp. | 129 | 4,272 | |||
Dollar Thrifty Automotive Group, Inc.* | 224 | 10,461 | |||
East Japan Railway Co. (Japan) | 44 | 2,806 | |||
Eaton Corp. | 69 | 4,827 | |||
EMCOR Group, Inc.* | 201 | 5,019 | |||
Emerson Electric Co. | 274 | 12,725 | |||
First Solar, Inc.* | 38 | 4,270 | |||
General Dynamics Corp. | 149 | 10,117 | |||
General Electric Co. | 3,717 | 60,772 | |||
Geo Group (The), Inc.* | 160 | 3,376 | |||
GrafTech International Ltd.* | 352 | 5,847 | |||
Granite Construction, Inc. | 110 | 3,262 | |||
Hawaiian Holdings, Inc.* | 569 | 4,051 | |||
Heartland Express, Inc. | 255 | 3,964 | |||
Heico Corp. | 92 | 3,670 | |||
Heidrick & Struggles International, Inc. | 221 | 5,116 | |||
Hutchison Whampoa Ltd. (Hong Kong) | 799 | 5,008 | |||
JetBlue Airways Corp.* | 769 | 4,768 | |||
Knight Transportation, Inc. | 238 | 4,731 | |||
Koninklijke Philips Electronics NV (Netherlands) | 212 | 6,383 | |||
L.B. Foster Co., Class A* | 113 | 3,172 | |||
Lockheed Martin Corp. | 140 | 11,189 | |||
Mitsubishi Corp. (Japan) | 321 | 7,321 | |||
Mitsui & Co. Ltd. (Japan) | 400 | 5,810 | |||
PACCAR, Inc. | 148 | 6,068 | |||
Regal-Beloit Corp. | 89 | 5,366 |
Number of Shares | Value | ||||
INDUSTRIALS (Continued) | |||||
Republic Services, Inc. | 150 | $ | 4,368 | ||
Rollins, Inc. | 262 | 5,570 | |||
Schneider Electric SA (France) | 44 | 4,422 | |||
Seaboard Corp. | 3 | 4,278 | |||
Siemens AG (Germany) | 179 | 16,213 | |||
Tetra Tech, Inc.* | 168 | 3,808 | |||
Towers Watson & Co., Class A | 129 | 5,934 | |||
Union Pacific Corp. | 388 | 27,714 | |||
United Parcel Service, Inc., Class B | 755 | 47,383 | |||
United Technologies Corp. | 312 | 21,022 | |||
Vestas Wind Systems A/S (Denmark)* | 43 | 2,073 | |||
Vicor Corp.* | 529 | 6,454 | |||
Vinci SA (France) | 83 | 3,766 | |||
Waste Management, Inc. | 188 | 6,112 | |||
Watsco, Inc. | 88 | 5,152 | |||
418,830 | |||||
INFORMATION TECHNOLOGY — 3.7% | |||||
Accenture PLC, Class A (Ireland) | 492 | 18,460 | |||
Anixter International, Inc.* | 110 | 5,225 | |||
Apple, Inc.* | 310 | 79,719 | |||
Arris Group, Inc.* | 359 | 3,938 | |||
Benchmark Electronics, Inc.* | 200 | 3,696 | |||
CACI International, Inc., Class A* | 86 | 3,977 | |||
CANON, Inc. (Japan) | 242 | 9,953 | |||
Cass Information Systems, Inc. | 105 | 3,331 | |||
Cisco Systems, Inc.* | 1,931 | 44,722 | |||
Concur Technologies, Inc.* | 142 | 6,007 | |||
Corning, Inc. | 611 | 10,650 | |||
Daktronics, Inc. | 524 | 4,412 | |||
Digital River, Inc.* | 109 | 3,002 | |||
Electro Scientific Industries, Inc.* | 312 | 4,009 | |||
EMC Corp.* | 757 | 14,095 | |||
Entegris, Inc.* | 1,001 | 5,405 | |||
Exar Corp.* | 500 | 3,500 | |||
Gartner, Inc.* | 273 | 6,757 | |||
Google, Inc., Class A* | 106 | 51,429 | |||
Hewlett-Packard Co. | 844 | 38,832 | |||
Informatica Corp.* | 239 | 6,166 | |||
International Business Machines Corp. | 465 | 58,246 | |||
IXYS Corp.* | 413 | 3,849 | |||
Jack Henry & Associates, Inc. | 238 | 5,722 | |||
ManTech International Corp., Class A* | 107 | 4,947 | |||
MasterCard, Inc., Class A | 100 | 20,177 | |||
Microsemi Corp.* | 233 | 3,607 | |||
Microsoft Corp. | 3,157 | 81,450 | |||
ModusLink Global Solutions, Inc.* | 531 | 4,057 | |||
Nintendo Co. Ltd. (Japan) | 20 | 5,885 | |||
Nokia Oyj (Finland) | 732 | 7,492 | |||
Oracle Corp. | 1,784 | 40,265 | |||
Palm, Inc.* | 440 | 2,508 | |||
Parametric Technology Corp.* | 346 | 5,702 | |||
Paychex, Inc. | 139 | 3,967 | |||
Polycom, Inc.* | 232 | 6,967 | |||
Quest Software, Inc.* | 271 | 5,245 | |||
Rackspace Hosting, Inc.* | 366 | 6,442 | |||
Riverbed Technology, Inc.* | 195 | 5,212 |
See Notes to Financial Statements. | 17 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number of Shares | Value | ||||
INFORMATION TECHNOLOGY (Continued) | |||||
SAP AG (Germany) | 185 | $ | 7,914 | ||
Skyworks Solutions, Inc.* | 422 | 6,722 | |||
Solera Holdings, Inc. | 196 | 6,797 | |||
SRA International, Inc., Class A* | 162 | 3,494 | |||
Telefonaktiebolaget LM Ericsson, B Shares (Sweden) | 570 | 5,758 | |||
TIBCO Software, Inc.* | 492 | 5,614 | |||
Visa, Inc., Class A | 685 | 49,635 | |||
VistaPrint NV (Netherlands)* | 117 | 5,463 | |||
Yahoo!, Inc.* | 476 | 7,302 | |||
697,724 | |||||
MATERIALS — 0.9% | |||||
Air Liquide SA (France) | 52 | 5,099 | |||
American Vanguard Corp. | 385 | 3,068 | |||
Anglo American PLC (United Kingdom)* | 277 | 10,657 | |||
ArcelorMittal (Luxembourg) | 176 | 5,365 | |||
BASF AG (Germany) | 181 | 9,564 | |||
BHP Billiton Ltd. (Australia) | 684 | 22,597 | |||
BHP Billiton PLC (United Kingdom) | 449 | 12,420 | |||
Dow Chemical (The) Co. | 432 | 11,625 | |||
E.I. du Pont de Nemours & Co. | 340 | 12,299 | |||
NewMarket Corp. | 42 | 4,324 | |||
Newmont Mining Corp. | 193 | 10,387 | |||
Praxair, Inc. | 119 | 9,234 | |||
Rio Tinto PLC (United Kingdom) | 265 | 12,219 | |||
Rock-Tenn Co., Class A | 108 | 5,558 | |||
Rockwood Holdings, Inc.* | 209 | 5,421 | |||
Sensient Technologies Corp. | 141 | 3,904 | |||
Shin-Etsu Chemical Co. Ltd. (Japan) | 80 | 4,077 | |||
Silgan Holdings, Inc. | 216 | 6,162 | |||
Syngenta AG (Switzerland) | 22 | 4,883 | |||
Westlake Chemical Corp. | 188 | 3,987 | |||
Weyerhaeuser Co. | 100 | 4,258 | |||
167,108 | |||||
TELECOMMUNICATION SERVICES — 0.8% | |||||
AT&T, Inc. | 2,260 | 54,918 | |||
Deutsche Telekom AG (Germany) | 579 | 6,536 | |||
France Telecom SA (France) | 394 | 7,572 | |||
Koninklijke (Royal) KPN NV (Netherlands) | 345 | 4,525 | |||
NTT DoCoMo, Inc. (Japan) | 3 | 4,503 | |||
Telefonica SA (Spain) | 796 | 15,411 | |||
Verizon Communications, Inc. | 1,091 | 30,024 | |||
Vodafone Group PLC (United Kingdom) | 10,443 | 20,859 | |||
144,348 | |||||
UTILITIES — 0.7% | |||||
Consolidated Edison, Inc. | 217 | 9,242 | |||
E.ON AG (Germany) | 396 | 12,128 | |||
Enel S.p.A (Italy) | 1,068 | 4,939 | |||
EQT Corp. | 129 | 5,056 | |||
Exelon Corp. | 543 | 20,959 | |||
FPL Group, Inc.* | 326 | 16,277 | |||
GDF Suez (France) | 241 | 7,604 | |||
Iberdrola SA (Spain) | 793 | 5,339 | |||
New Jersey Resources Corp. | 110 | 3,900 | |||
Nicor, Inc. | 132 | 5,334 |
Number of Shares | Value | |||||
UTILITIES (Continued) | ||||||
Piedmont Natural Gas Co., Inc. | 213 | $ | 5,412 | |||
RWE AG (Germany) | 95 | 6,884 | ||||
Southern Co. | 611 | 19,979 | ||||
Tokyo Electric Power (The) Co., Inc. (Japan) | 240 | 5,949 | ||||
WGL Holdings, Inc. | 144 | 4,874 | ||||
133,876 | ||||||
Total Common Stocks | 3,857,083 | |||||
RIGHTS — 0.0% (a) | ||||||
MATERIALS — 0.0% (a) | ||||||
Air Liquide SA, expiring 6/11/10 (France)* | 52 | 340 | ||||
Principal | Value | |||||
CORPORATE BONDS — 27.9% | ||||||
CONSUMER DISCRETIONARY — 2.2% | ||||||
AT&T Broadband Corp. | $ | 83,000 | 96,229 | |||
Daimler Finance North America LLC | 81,000 | 87,776 | ||||
Home Depot (The), Inc. | 142,000 | 154,691 | ||||
Viacom, Inc. | 55,000 | 61,818 | ||||
400,514 | ||||||
CONSUMER STAPLES — 0.6% | ||||||
Diageo Finance BV (Netherlands) | 41,000 | 45,469 | ||||
Kroger (The) Co. | 21,000 | 22,702 | ||||
Wal-Mart Stores, Inc. | 47,000 | 50,760 | ||||
118,931 | ||||||
ENERGY — 1.9% | ||||||
Anadarko Petroleum Corp. | 107,000 | 114,126 | ||||
Apache Corp. | 43,000 | 46,894 | ||||
Enterprise Products Operating LP, Series B | 87,000 | 94,243 | ||||
Kinder Morgan Energy Partners LP | 47,000 | 48,704 | ||||
Spectra Energy Capital LLC | 49,000 | 53,286 | ||||
357,253 | ||||||
FINANCIALS — 17.1% | ||||||
Ameriprise Financial, Inc. | 109,000 | 110,829 | ||||
Bank of America Corp. | 125,000 | 125,722 | ||||
4.875%, 1/15/13 | 21,000 | 21,893 |
See Notes to Financial Statements. | 18 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal | Value | |||||
FINANCIALS (Continued) | ||||||
Boeing Capital Corp. Ltd. | $ | 81,000 | $ | 89,449 | ||
Boston Properties LP | 51,000 | 55,702 | ||||
Capital One Financial Corp. | 122,000 | 127,790 | ||||
Citigroup, Inc. | 246,000 | 257,642 | ||||
European Investment Bank (Supranational) | 163,000 | 178,736 | ||||
General Electric Capital Corp., Series A MTN | 150,000 | 159,332 | ||||
Genworth Financial, Inc. | 81,000 | 80,368 | ||||
Goldman Sachs Group, LP | 305,000 | 310,327 | ||||
HSBC Finance Corp. | 85,000 | 91,693 | ||||
5.50%, 1/19/16 | 275,000 | 293,709 | ||||
John Deere Capital Corp. | 81,000 | 89,125 | ||||
JPMorgan Chase & Co. | 221,000 | 237,265 | ||||
KFW (Germany) | 150,000 | 150,181 | ||||
Marsh & McLennan Cos., Inc. | 30,000 | 31,893 | ||||
Merrill Lynch & Co., Inc., Series C MTN | 105,000 | 103,659 | ||||
MetLife, Inc. | 81,000 | 85,568 | ||||
Morgan Stanley | 100,000 | 101,881 | ||||
5.30%, 3/01/13 | 99,000 | 102,165 | ||||
National Rural Utilities Cooperative Finance Corp., Series C MTN | 49,000 | 53,757 | ||||
Wachovia Corp. | 126,000 | 133,828 | ||||
Wells Fargo & Co. | 185,000 | 194,387 | ||||
3,186,901 | ||||||
HEALTH CARE — 1.6% | ||||||
AmerisourceBergen Corp. | 81,000 | 89,883 | ||||
UnitedHealth Group, Inc. | 53,000 | 56,074 | ||||
WellPoint, Inc. | 75,000 | 80,043 | ||||
Wyeth | 71,000 | 78,996 | ||||
304,996 | ||||||
INFORMATION TECHNOLOGY — 0.5% | ||||||
Oracle Corp. | 89,000 | 99,452 | ||||
Principal | Value | |||||
MATERIALS — 1.0% | ||||||
Alcoa, Inc. | $ | 47,000 | $ | 48,993 | ||
BHP Billiton Finance USA Ltd. (Australia) | 63,000 | 70,101 | ||||
E.I. du Pont de Nemours & Co. | 51,000 | 56,908 | ||||
176,002 | ||||||
TELECOMMUNICATION SERVICES — 1.8% | ||||||
AT&T, Inc. | 115,000 | 123,311 | ||||
Cellco Partnership/Verizon Wireless Capital LLC | 83,000 | 91,829 | ||||
Embarq Corp. | 33,000 | 35,564 | ||||
AT&T Wireless Services, Inc. | 75,000 | 78,731 | ||||
329,435 | ||||||
UTILITIES — 1.2% | ||||||
Constellation Energy Group | 35,000 | 36,779 | ||||
Dominion Resources, Inc., Series C | 125,000 | 136,164 | ||||
Exelon Generation Co. LLC | 47,000 | 50,856 | ||||
223,799 | ||||||
Total Corporate Bonds | 5,197,283 | |||||
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS — 48.8% | ||||||
FEDERAL HOME LOAN MORTGAGE CORP. — 8.4% | ||||||
3.25%, 2/25/11 | 720,000 | 733,861 | ||||
4.875%, 11/18/11 | 280,000 | 296,712 | ||||
4.50%, 1/15/13 | 498,000 | 538,939 | ||||
1,569,512 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION — 5.0% | ||||||
5.00%, 4/15/15 | 278,000 | 313,440 | ||||
5.00%, 5/11/17 | 548,000 | 614,434 | ||||
927,874 | ||||||
UNITED STATES TREASURY BONDS/NOTES — 35.4% | ||||||
2.75%, 7/31/10 | 885,100 | 888,972 | ||||
2.00%, 9/30/10 | 1,353,600 | 1,361,743 | ||||
1.75%, 11/15/11 | 186,800 | 189,909 | ||||
1.375%, 4/15/12 | 1,398,700 | 1,416,567 | ||||
3.375%, 7/31/13 | 820,200 | 871,847 | ||||
4.75%, 5/15/14 | 1,356,100 | 1,514,065 | ||||
7.50%, 11/15/16 | 267,800 | 345,504 | ||||
6,588,607 | ||||||
See Notes to Financial Statements. | 19 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal | Value | |||||
Total United States Government & Agencies Obligations | $ | 9,085,993 | ||||
SOVEREIGN BONDS — 1.5% | ||||||
Italy Government International Bond (Italy) | $ | 175,000 | 180,427 | |||
United Mexican States, Series A MTN (Mexico) | 79,000 | 86,505 | ||||
Total Sovereign Bonds | 266,932 | |||||
Total Investments — 98.9% | ||||||
(Amortized Cost $18,357,705) | $ | 18,407,631 | ||||
Other assets less liabilities — 1.1% | 202,811 | |||||
Net Assets — 100.0% | $ | 18,610,442 | ||||
ADR – American Depositary Receipt.
MTN – Medium Term Note.
REIT – Real Estate Investment Trust.
* Non-income producing security.
(a) Less than 0.1%.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1 — | quoted prices in active markets for identical securities |
Level 2 — | other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
Level 3 — | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of May 31, 2010:
Investments | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 3,857,083 | $ | — | $ | — | $ | 3,857,083 | ||||
Rights | — | 340 | — | 340 | ||||||||
Corporate Bonds | — | 5,197,283 | — | 5,197,283 | ||||||||
United States Government & Agencies Obligations | — | 9,085,993 | — | 9,085,993 | ||||||||
Sovereign Bonds | — | 266,932 | — | 266,932 | ||||||||
Total Investments | $ | 3,857,083 | $ | 14,550,548 | $ | — | $ | 18,407,631 | ||||
COUNTRY BREAKDOWN AS OF MAY 31, 2010
(Unaudited)
Value | % of Net Assets | |||||
United States | $ | 16,733,861 | 89.9 | % | ||
United Kingdom | 252,491 | 1.4 | ||||
Germany | 250,033 | 1.4 | ||||
Italy | 210,644 | 1.1 | ||||
Supranational | 178,736 | 1.0 | ||||
Australia | 132,880 | 0.7 | ||||
Japan | 121,900 | 0.7 | ||||
Switzerland | 109,586 | 0.6 | ||||
France | 99,280 | 0.5 | ||||
Mexico | 86,505 | 0.5 | ||||
Netherlands | 70,564 | 0.4 | ||||
Spain | 44,957 | 0.2 | ||||
Netherlands Antilles | 22,965 | 0.1 | ||||
Ireland | 18,460 | 0.1 | ||||
Sweden | 16,448 | 0.1 | ||||
Bermuda | 11,582 | 0.1 | ||||
Denmark | 9,046 | 0.1 | ||||
Finland | 7,492 | 0.0 | ||||
Belgium | 6,466 | 0.0 | ||||
Norway | 5,440 | 0.0 | ||||
Luxembourg | 5,365 | 0.0 | ||||
Hong Kong | 5,008 | 0.0 | ||||
Marshall Islands | 3,096 | 0.0 | ||||
Cayman Islands | 2,920 | 0.0 | ||||
Greece | 1,906 | 0.0 | ||||
Total Investments | 18,407,631 | 98.9 | ||||
Other assets less liabilities | 202,811 | 1.1 | ||||
Net Assets | $ | 18,610,442 | 100 | % | ||
See Notes to Financial Statements. | 20 |
TDX Independence Funds, Inc.
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND
May 31, 2010
Number | Value | ||||
COMMON STOCKS — 61.5% | |||||
CONSUMER DISCRETIONARY — 6.4% | |||||
Amazon.com, Inc.* | 1,027 | $ | 128,847 | ||
Ameristar Casinos, Inc. | 983 | 17,714 | |||
AutoZone, Inc.* | 126 | 24,051 | |||
Bally Technologies, Inc.* | 883 | 37,528 | |||
Bob Evans Farms, Inc. | 522 | 15,159 | |||
Brown Shoe Co., Inc. | 3,018 | 50,340 | |||
Buckle (The), Inc. | 811 | 28,831 | |||
California Pizza Kitchen, Inc.* | 362 | 6,599 | |||
Carter’s, Inc.* | 999 | 30,529 | |||
Cinemark Holdings, Inc. | 1,995 | 31,900 | |||
Collective Brands, Inc.* | 1,107 | 24,775 | |||
Columbia Sportswear Co. | 558 | 28,558 | |||
Comcast Corp., Class A | 7,321 | 132,438 | |||
Cooper Tire & Rubber Co. | 811 | 15,336 | |||
Corinthian Colleges, Inc.* | 1,718 | 23,004 | |||
Daimler AG (Germany)* | 1,089 | 54,119 | |||
DIRECTV, Class A* | 2,522 | 95,054 | |||
Dress Barn (The), Inc.* | 1,047 | 28,677 | |||
Eastman Kodak Co.* | 4,355 | 24,562 | |||
Ethan Allen Interiors, Inc. | 1,815 | 36,663 | |||
Ford Motor Co.* | 6,960 | 81,641 | |||
Fossil, Inc.* | 1,183 | 44,363 | |||
Hennes & Mauritz AB, B Shares (Sweden) | 602 | 33,954 | |||
Home Depot (The), Inc. | 4,019 | 136,084 | |||
HONDA MOTOR Co. Ltd. (Japan) | 2,373 | 72,489 | |||
Iconix Brand Group, Inc.* | 1,173 | 19,061 | |||
J. Crew Group, Inc.* | 1,083 | 49,428 | |||
Jack in the Box, Inc.* | 969 | 21,744 | |||
Knology, Inc.* | 2,772 | 33,153 | |||
Las Vegas Sands Corp.* | 1,543 | 36,230 | |||
Life Time Fitness, Inc.* | 667 | 24,752 | |||
LVMH Moet Hennessy Louis Vuitton SA (France) | 326 | 34,540 | |||
Marcus (The) Corp. | 1,888 | 20,674 | |||
McDonald’s Corp. | 2,691 | 179,948 | |||
Men’s Wearhouse (The), Inc. | 899 | 19,544 | |||
News Corp., Class A | 4,507 | 59,492 | |||
Nissan Motor Co. Ltd. (Japan)* | 3,153 | 22,952 | |||
Omnicom Group, Inc. | 736 | 27,931 | |||
Panasonic Corp. (Japan) | 2,594 | 33,373 | |||
Rent-A-Center, Inc.* | 1,087 | 26,327 | |||
Sony Corp. (Japan) | 1,411 | 44,034 | |||
Spartan Motors, Inc. | 736 | 3,533 | |||
Talbots (The), Inc.* | 5,301 | 79,727 | |||
Target Corp. | 1,893 | 103,225 | |||
Time Warner, Inc. | 2,830 | 87,702 | |||
Toyota Motor Corp. (Japan) | 4,151 | 150,631 | |||
Tractor Supply Co. | 561 | 38,013 | |||
Tupperware Brands Corp. | 1,018 | 43,255 | |||
Vail Resorts, Inc.* | 598 | 24,883 | |||
Vivendi (France) | 1,656 | 36,227 | |||
Volcom, Inc.* | 1,694 | 33,812 | |||
Volkswagen AG (Germany) | 99 | 8,444 | |||
Walt Disney (The) Co. | 4,343 | 145,144 | |||
Warnaco Group (The), Inc.* | 763 | 32,496 | |||
2,643,490 | |||||
Number | Value | ||||
CONSUMER STAPLES — 6.2% | |||||
Anheuser-Busch Inbev NV (Belgium) | 833 | $ | 40,195 | ||
B&G Foods, Inc., Class A | 2,755 | 29,203 | |||
Boston Beer (The) Co., Inc., Class A* | 711 | 46,962 | |||
British American Tobacco PLC | 2,340 | 69,104 | |||
Campbell Soup Co. | 844 | 30,224 | |||
Carrefour SA (France) | 806 | 33,604 | |||
Casey’s General Stores, Inc. | 831 | 30,639 | |||
Coca-Cola (The) Co. | 5,409 | 278,023 | |||
CVS Caremark Corp. | 3,528 | 122,175 | |||
Diageo PLC (United Kingdom) | 4,230 | 64,523 | |||
Fresh Del Monte Produce, Inc. | 1,096 | 21,920 | |||
Imperial Tobacco Group PLC | 1,299 | 33,807 | |||
Kraft Foods, Inc., Class A | 3,273 | 93,608 | |||
Lancaster Colony Corp. | 476 | 26,018 | |||
Molson Coors Brewing Co., Class B | 428 | 17,565 | |||
Nestle SA (Switzerland) | 4,638 | 210,372 | |||
Philip Morris International, Inc. | 4,792 | 211,423 | |||
Prestige Brands Holdings, Inc.* | 3,547 | 27,383 | |||
Procter & Gamble (The) Co. | 6,598 | 403,072 | |||
Reckitt Benckiser Group PLC | 739 | 34,672 | |||
Ruddick Corp. | 858 | 28,331 | |||
Safeway, Inc. | 1,046 | 23,158 | |||
Tesco PLC (United Kingdom) | 9,994 | 59,475 | |||
Tootsie Roll Industries, Inc. | 982 | 24,589 | |||
Unilever NV (Netherlands) | 2,061 | 56,727 | |||
Unilever PLC (United Kingdom) | 1,625 | 43,889 | |||
Wal-Mart Stores, Inc. | 9,744 | 492,656 | |||
Weis Markets, Inc. | 427 | 14,420 | |||
2,567,737 | |||||
ENERGY — 6.9% | |||||
Arena Resources, Inc.* | 717 | 23,575 | |||
ATP Oil & Gas Corp.* | 3,313 | 35,250 | |||
Berry Petroleum Co., Class A | 804 | 24,715 | |||
BG Group PLC (United Kingdom) | 4,687 | 71,901 | |||
Bill Barrett Corp.* | 805 | 26,211 | |||
BP PLC (United Kingdom) | 25,830 | 184,789 | |||
Cal Dive International, Inc.* | 1,626 | 8,976 | |||
Chevron Corp. | 5,075 | 374,890 | |||
ConocoPhillips | 3,613 | 187,370 | |||
Dril-Quip, Inc.* | 666 | 32,441 | |||
ENI S.p.A (Italy) | 3,523 | 66,686 | |||
Exxon Mobil Corp. | 12,352 | 746,803 | |||
General Maritime Corp. (Marshall Islands) | 2,510 | 17,344 | |||
Goodrich Petroleum Corp.* | 671 | 8,213 | |||
ION Geophysical Corp.* | 9,604 | 52,150 | |||
Matrix Service Co.* | 2,106 | 20,723 | |||
Murphy Oil Corp. | 461 | 24,608 | |||
Nordic American Tanker Shipping Ltd. (Bermuda) | 740 | 21,016 | |||
Occidental Petroleum Corp. | 1,980 | 163,370 | |||
Peabody Energy Corp. | 616 | 23,999 | |||
Repsol YPF SA (Spain) | 1,008 | 20,883 |
See Notes to Financial Statements. | 21 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
ENERGY (Continued) | |||||
Royal Dutch Shell PLC, Class A | 4,960 | $ | 130,735 | ||
Royal Dutch Shell PLC, Class B | 3,810 | 96,485 | |||
RPC, Inc. | 1,646 | 18,583 | |||
Schlumberger Ltd. (Netherlands Antilles) | 2,873 | 161,319 | |||
Southwestern Energy Co.* | 1,818 | 68,375 | |||
StatoilHydro ASA (Norway) | 1,768 | 35,621 | |||
Total SA (France) | 3,030 | 142,489 | |||
Woodside Petroleum Ltd. (Australia) | 691 | 25,457 | |||
World Fuel Services Corp. | 1,078 | 28,060 | |||
2,843,037 | |||||
FINANCIALS — 11.2% | |||||
Aflac, Inc. | 2,482 | 109,953 | |||
Alexander’s, Inc. REIT | 90 | 29,193 | |||
Allianz SE (Germany) | 612 | 61,530 | |||
American Campus Communities, Inc. REIT | 868 | 23,236 | |||
Annaly Capital Management, Inc. REIT | 2,777 | 47,098 | |||
Assicurazioni Generali S.p.A (Italy) | 1,576 | 28,918 | |||
Australia & New Zealand Banking Group Ltd. (Australia) | 2,458 | 46,924 | |||
AXA (France) | 2,469 | 41,148 | |||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 4,140 | 44,033 | |||
Banco Santander SA (Spain) | 9,073 | 93,982 | |||
Bank of America Corp. | 19,326 | 304,191 | |||
Bank of New York Mellon (The) Corp. | 6,557 | 178,350 | |||
Barclays PLC (United Kingdom) | 10,179 | 44,902 | |||
BB&T Corp. | 3,400 | 102,816 | |||
BNP Paribas (France) | 1,149 | 66,551 | |||
Boston Private Financial Holdings, Inc. | 4,098 | 29,997 | |||
Capital One Financial Corp. | 2,037 | 84,128 | |||
Charles Schwab (The) Corp. | 6,289 | 102,762 | |||
Commonwealth Bank of Australia (Australia) | 1,699 | 75,065 | |||
Credit Suisse Group AG (Switzerland) | 1,384 | 53,987 | |||
Delphi Financial Group, Inc., Class A | 860 | 22,334 | |||
Deutsche Bank AG (Germany) | 694 | 41,485 | |||
Dime Community Bancshares, Inc. | 2,251 | 28,723 | |||
Encore Capital Group, Inc.* | 1,859 | 38,853 | |||
Equity Lifestyle Properties, Inc. REIT | 432 | 22,378 | |||
Equity One, Inc. REIT | 1,437 | 24,673 | |||
First Financial Bankshares, Inc. | 357 | 17,914 | |||
FirstMerit Corp. | 1,373 | 25,593 | |||
Franklin Resources, Inc. | 1,337 | 131,146 | |||
GAMCO Investors, Inc., Class A | 517 | 20,489 | |||
Goldman Sachs Group (The), Inc. | 1,154 | 166,476 | |||
Highwoods Properties, Inc. REIT | 1,247 | 36,737 | |||
HSBC Holdings PLC (United Kingdom) | 23,057 | 209,289 | |||
Intesa Sanpaolo S.p.A (Italy) | 10,980 | 29,077 | |||
JPMorgan Chase & Co. | 8,833 | 349,611 | |||
Kansas City Life Insurance Co. | 807 | 24,436 | |||
KBW, Inc.* | 652 | 16,359 | |||
Knight Capital Group, Inc., Class A* | 1,599 | 23,361 | |||
MarketAxess Holdings, Inc. | 2,063 | 30,450 | |||
MFA Financial, Inc. REIT | 3,927 | 28,785 | |||
Mid-America Apartment Communities, Inc. REIT | 491 | 26,823 |
Number | Value | ||||
FINANCIALS (Continued) | |||||
Mitsubishi UFJ Financial Group, Inc. (Japan) | 15,617 | $ | 76,248 | ||
Montpelier Re Holdings Ltd. (Bermuda) | 1,412 | 22,041 | |||
Moody’s Corp. | 1,152 | 23,616 | |||
Morgan Stanley | 3,430 | 92,987 | |||
Muenchener Rueckversicherungs-Gesellschaft AG (Germany) | 280 | 35,685 | |||
National Australia Bank Ltd. (Australia) | 2,294 | 48,188 | |||
National Bank of Greece SA ADR (Greece)* | 5,711 | 13,992 | |||
National Financial Partners Corp.* | 3,217 | 44,845 | |||
National Retail Properties, Inc. REIT | 1,399 | 30,750 | |||
NewAlliance Bancshares, Inc. | 1,832 | 21,563 | |||
Nordea Bank AB (Sweden) | 3,975 | 32,705 | |||
Northern Trust Corp. | 1,256 | 63,817 | |||
Omega Healthcare Investors, Inc. REIT | 1,417 | 28,142 | |||
optionsXpress Holdings, Inc.* | 1,031 | 16,548 | |||
Platinum Underwriters Holdings Ltd. (Bermuda) | 820 | 30,184 | |||
Potlatch Corp. REIT | 667 | 23,238 | |||
ProAssurance Corp.* | 565 | 33,256 | |||
Progressive (The) Corp. | 3,773 | 73,913 | |||
Prosperity Bancshares, Inc. | 795 | 28,652 | |||
Renasant Corp. | 406 | 5,826 | |||
Riskmetrics Group, Inc.* | 1,070 | 23,144 | |||
SCBT Financial Corp. | 916 | 32,784 | |||
Simon Property Group, Inc. REIT | 1,396 | 118,702 | |||
Societe Generale (France) | 718 | 31,476 | |||
Standard Chartered PLC (United Kingdom) | 2,504 | 59,266 | |||
Stifel Financial Corp.* | 464 | 23,511 | |||
Sumitomo Mitsui Financial Group, Inc. (Japan) | 825 | 24,748 | |||
Tanger Factory Outlet Centers, Inc. REIT | 551 | 22,933 | |||
Teton Advisors, Inc., Class A | 5 | 50 | |||
Tower Group, Inc. | 682 | 14,943 | |||
UBS AG (Switzerland)* | 4,369 | 58,243 | |||
UMB Financial Corp. | 648 | 25,240 | |||
UniCredito Italiano S.p.A (Italy) | 21,152 | 44,681 | |||
Washington Real Estate Investment Trust REIT | 977 | 28,704 | |||
Wells Fargo & Co. | 11,211 | 321,644 | |||
Westamerica Bancorp. | 531 | 29,561 | |||
Westpac Banking Corp. (Australia) | 3,456 | 68,554 | |||
Westwood Holdings Group, Inc. | 539 | 20,024 | |||
Zurich Financial Services AG (Switzerland) | 199 | 40,696 | |||
4,618,856 | |||||
HEALTH CARE — 5.8% | |||||
Abbott Laboratories | 3,985 | 189,527 | |||
Amedisys, Inc.* | 462 | 22,971 | |||
AMERIGROUP Corp.* | 904 | 32,472 | |||
AmSurg Corp.* | 544 | 10,771 | |||
AstraZeneca PLC (United Kingdom) | 1,765 | 74,044 | |||
Bayer AG (Germany) | 1,112 | 62,523 | |||
Boston Scientific Corp.* | 3,623 | 21,919 | |||
Bruker Corp.* | 3,167 | 40,332 | |||
Catalyst Health Solutions, Inc.* | 774 | 29,636 | |||
Centene Corp.* | 799 | 18,233 | |||
Emergency Medical Services Corp., Class A* | 693 | 37,124 | |||
eResearch Technology, Inc.* | 3,813 | 30,275 | |||
Forest Laboratories, Inc.* | 740 | 19,151 |
See Notes to Financial Statements. | 22 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
HEALTH CARE (Continued) | |||||
Genzyme Corp.* | 664 | $ | 32,304 | ||
GlaxoSmithKline PLC (United Kingdom) | 6,860 | 114,757 | |||
Haemonetics Corp.* | 452 | 24,381 | |||
Inspire Pharmaceuticals, Inc.* | 1,009 | 5,736 | |||
Isis Pharmaceuticals, Inc.* | 1,810 | 16,652 | |||
Johnson & Johnson | 6,564 | 382,682 | |||
Magellan Health Services, Inc.* | 636 | 25,879 | |||
Martek Biosciences Corp.* | 557 | 10,355 | |||
Medicis Pharmaceutical Corp., Class A | 1,088 | 25,231 | |||
Novartis AG (Switzerland) | 3,076 | 139,788 | |||
Novo Nordisk A/S, B Shares (Denmark) | 570 | 44,166 | |||
NuVasive, Inc.* | 704 | 27,646 | |||
Onyx Pharmaceuticals, Inc.* | 1,021 | 22,758 | |||
Owens & Minor, Inc. | 1,101 | 32,887 | |||
Pfizer, Inc. | 16,479 | 250,975 | |||
Pharmasset, Inc.* | 399 | 11,755 | |||
Psychiatric Solutions, Inc.* | 950 | 30,761 | |||
Quality Systems, Inc. | 534 | 31,527 | |||
Regeneron Pharmaceuticals, Inc.* | 1,461 | 41,741 | |||
Roche Holding AG (Switzerland) | 914 | 125,794 | |||
Sanofi-Aventis SA (France) | 1,443 | 87,219 | |||
SIGA Technologies, Inc.* | 2,948 | 20,489 | |||
Sirona Dental Systems, Inc.* | 911 | 32,231 | |||
STERIS Corp. | 1,016 | 32,339 | |||
Takeda Pharmaceutical Co. Ltd. (Japan) | 1,103 | 45,483 | |||
Thoratec Corp.* | 1,043 | 45,756 | |||
UnitedHealth Group, Inc. | 2,971 | 86,367 | |||
Vanda Pharmaceuticals, Inc.* | 471 | 3,443 | |||
WellCare Health Plans, Inc.* | 761 | 20,745 | |||
Zimmer Holdings, Inc.* | 536 | 29,978 | |||
ZymoGenetics, Inc.* | 1,180 | 5,487 | |||
2,396,290 | |||||
INDUSTRIALS — 6.7% | |||||
A.O. Smith Corp. | 484 | 22,564 | |||
ABB Ltd. (Switzerland)* | 2,921 | 50,145 | |||
BAE Systems PLC (United Kingdom) | 4,413 | 20,590 | |||
Baldor Electric Co. | 800 | 28,744 | |||
C.H. Robinson Worldwide, Inc. | 920 | 53,461 | |||
Caterpillar, Inc. | 1,418 | 86,158 | |||
CLARCOR, Inc. | 865 | 31,365 | |||
CRA International, Inc.* | 851 | 18,909 | |||
Curtiss-Wright Corp. | 776 | 25,701 | |||
Dollar Thrifty Automotive Group, Inc.* | 1,360 | 63,512 | |||
East Japan Railway Co. (Japan) | 602 | 38,395 | |||
Eaton Corp. | 402 | 28,120 | |||
EMCOR Group, Inc.* | 1,183 | 29,540 | |||
Emerson Electric Co. | 1,771 | 82,245 | |||
Fanuc Ltd. (Japan) | 291 | 30,879 | |||
First Solar, Inc.* | 223 | 25,056 | |||
General Dynamics Corp. | 950 | 64,505 | |||
General Electric Co. | 26,217 | 428,647 | |||
Geo Group (The), Inc.* | 890 | 18,779 | |||
GrafTech International Ltd.* | 2,041 | 33,901 | |||
Granite Construction, Inc. | 679 | 20,132 | |||
Griffon Corp.* | 1,046 | 12,698 | |||
Hawaiian Holdings, Inc.* | 3,721 | 26,494 |
Number | Value | ||||
INDUSTRIALS (Continued) | |||||
Heartland Express, Inc. | 1,611 | $ | 25,043 | ||
Heico Corp. | 547 | 21,820 | |||
Heidrick & Struggles International, Inc. | 1,284 | 29,725 | |||
Hutchison Whampoa Ltd. (Hong Kong) | 2,999 | 18,797 | |||
JetBlue Airways Corp.* | 4,631 | 28,712 | |||
Kforce, Inc.* | 635 | 8,585 | |||
Knight Transportation, Inc. | 1,494 | 29,701 | |||
Koninklijke Philips Electronics NV (Netherlands) | 1,303 | 39,230 | |||
L.B. Foster Co., Class A* | 676 | 18,975 | |||
Lockheed Martin Corp. | 945 | 75,524 | |||
Mitsubishi Corp. (Japan) | 1,963 | 44,769 | |||
Mitsui & Co. Ltd. (Japan) | 2,624 | 38,116 | |||
PACCAR, Inc. | 900 | 36,900 | |||
Regal-Beloit Corp. | 541 | 32,617 | |||
Republic Services, Inc. | 869 | 25,305 | |||
Rollins, Inc. | 1,722 | 36,610 | |||
Schneider Electric SA (France) | 289 | 29,045 | |||
Seaboard Corp. | 21 | 29,946 | |||
Siemens AG (Germany) | 1,168 | 105,791 | |||
Tetra Tech, Inc.* | 1,043 | 23,640 | |||
Towers Watson & Co., Class A | 756 | 34,776 | |||
Union Pacific Corp. | 2,471 | 176,504 | |||
United Parcel Service, Inc., Class B | 5,173 | 324,657 | |||
United Technologies Corp. | 2,299 | 154,907 | |||
Vestas Wind Systems A/S (Denmark)* | 268 | 12,917 | |||
Vicor Corp.* | 3,098 | 37,796 | |||
Vinci SA (France) | 568 | 25,769 | |||
Waste Management, Inc. | 1,207 | 39,240 | |||
Watsco, Inc. | 555 | 32,495 | |||
2,778,452 | |||||
INFORMATION TECHNOLOGY — 11.2% | |||||
Accenture PLC, Class A (Ireland) | 3,321 | 124,604 | |||
Anixter International, Inc.* | 628 | 29,830 | |||
Apple, Inc.* | 2,093 | 538,236 | |||
Arris Group, Inc.* | 2,170 | 23,805 | |||
Benchmark Electronics, Inc.* | 1,096 | 20,254 | |||
CACI International, Inc., Class A* | 512 | 23,675 | |||
CANON, Inc. (Japan) | 1,415 | 58,193 | |||
Cass Information Systems, Inc. | 616 | 19,540 | |||
Cisco Systems, Inc.* | 13,128 | 304,044 | |||
Computer Sciences Corp.* | 364 | 18,196 | |||
Concur Technologies, Inc.* | 840 | 35,532 | |||
Corning, Inc. | 3,763 | 65,589 | |||
Daktronics, Inc. | 2,997 | 25,235 | |||
Digital River, Inc.* | 640 | 17,626 | |||
Ebix, Inc.* | 450 | 6,876 | |||
Electro Scientific Industries, Inc.* | 1,825 | 23,451 | |||
EMC Corp.* | 4,766 | 88,743 | |||
EMS Technologies, Inc.* | 262 | 4,071 | |||
Entegris, Inc.* | 7,477 | 40,376 | |||
Exar Corp.* | 3,061 | 21,427 | |||
Fair Isaac Corp. | 935 | 21,692 | |||
Gartner, Inc.* | 1,603 | 39,674 | |||
Google, Inc., Class A* | 765 | 371,163 | |||
Hewlett-Packard Co. | 5,679 | 261,291 |
See Notes to Financial Statements. | 23 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
INFORMATION TECHNOLOGY (Continued) | |||||
Informatica Corp.* | 1,469 | $ | 37,900 | ||
International Business Machines Corp. | 2,976 | 372,774 | |||
IXYS Corp.* | 2,420 | 22,554 | |||
Jack Henry & Associates, Inc. | 1,456 | 35,002 | |||
ManTech International Corp., Class A* | 636 | 29,402 | |||
MasterCard, Inc., Class A | 732 | 147,696 | |||
Microsemi Corp.* | 1,332 | 20,619 | |||
Microsoft Corp. | 21,392 | 551,913 | |||
ModusLink Global Solutions, Inc.* | 3,133 | 23,936 | |||
Nintendo Co. Ltd. (Japan) | 129 | 37,960 | |||
Nokia Oyj (Finland) | 5,740 | 58,750 | |||
Oracle Corp. | 12,090 | 272,871 | |||
Palm, Inc.* | 2,688 | 15,322 | |||
Parametric Technology Corp.* | 1,996 | 32,894 | |||
Paychex, Inc. | 868 | 24,773 | |||
Polycom, Inc.* | 1,372 | 41,201 | |||
Quest Software, Inc.* | 1,599 | 30,949 | |||
Rackspace Hosting, Inc.* | 2,139 | 37,646 | |||
Riverbed Technology, Inc.* | 1,173 | 31,354 | |||
Rogers Corp.* | 250 | 7,140 | |||
SAP AG (Germany) | 1,167 | 49,922 | |||
Skyworks Solutions, Inc.* | 2,558 | 40,749 | |||
Smith Micro Software, Inc.* | 530 | 5,221 | |||
Solera Holdings, Inc. | 1,169 | 40,541 | |||
SRA International, Inc., Class A* | 925 | 19,952 | |||
Telefonaktiebolaget LM Ericsson, B Shares (Sweden) | 3,660 | 36,971 | |||
TIBCO Software, Inc.* | 2,873 | 32,781 | |||
Visa, Inc., Class A | 4,400 | 318,824 | |||
VistaPrint NV (Netherlands)* | 726 | 33,897 | |||
Yahoo!, Inc.* | 3,359 | 51,527 | |||
4,646,164 | |||||
MATERIALS — 2.6% | |||||
Air Liquide SA (France) | 329 | 32,262 | |||
AMCOL International Corp. | 539 | 14,531 | |||
American Vanguard Corp. | 2,255 | 17,972 | |||
Anglo American PLC (United Kingdom)* | 1,692 | 65,098 | |||
ArcelorMittal (Luxembourg) | 1,123 | 34,233 | |||
BASF AG (Germany) | 1,156 | 61,084 | |||
BHP Billiton Ltd. (Australia) | 4,429 | 146,312 | |||
BHP Billiton PLC (United Kingdom) | 2,891 | 79,962 | |||
Dow Chemical (The) Co. | 2,619 | 70,477 | |||
E.I. du Pont de Nemours & Co. | 2,072 | 74,944 | |||
NewMarket Corp. | 238 | 24,504 | |||
Newmont Mining Corp. | 1,168 | 62,862 | |||
Praxair, Inc. | 730 | 56,648 | |||
Rio Tinto PLC (United Kingdom) | 1,704 | 78,568 | |||
Rock-Tenn Co., Class A | 652 | 33,552 | |||
Rockwood Holdings, Inc.* | 1,187 | 30,791 | |||
Sensient Technologies Corp. | 814 | 22,540 | |||
Shin-Etsu Chemical Co. Ltd. (Japan) | 600 | 30,581 | |||
Sherwin-Williams (The) Co. | 278 | 21,303 | |||
Silgan Holdings, Inc. | 1,318 | 37,603 | |||
Syngenta AG (Switzerland) | 135 | 29,964 | |||
Vulcan Materials Co. | 302 | 15,245 |
Number | Value | |||||
MATERIALS (Continued) | ||||||
Westlake Chemical Corp. | 1,147 | $ | 24,328 | |||
Weyerhaeuser Co. | 511 | 21,758 | ||||
1,087,122 | ||||||
TELECOMMUNICATION SERVICES — 2.3% | ||||||
AT&T, Inc. | 15,179 | 368,849 | ||||
Deutsche Telekom AG (Germany) | 3,705 | 41,823 | ||||
France Telecom SA (France) | 2,580 | 49,584 | ||||
Koninklijke (Royal) KPN NV (Netherlands) | 2,222 | 29,141 | ||||
NTT DoCoMo, Inc. (Japan) | 21 | 31,521 | ||||
Telefonica SA (Spain) | 5,259 | 101,817 | ||||
Verizon Communications, Inc. | 7,293 | 200,703 | ||||
Vodafone Group PLC (United Kingdom) | 72,616 | 145,046 | ||||
968,484 | ||||||
UTILITIES — 2.2% | ||||||
Consolidated Edison, Inc. | 1,492 | 63,544 | ||||
E.ON AG (Germany) | 3,155 | 96,623 | ||||
Enel S.p.A (Italy) | 7,178 | 33,193 | ||||
EQT Corp. | 715 | 28,021 | ||||
Exelon Corp. | 3,588 | 138,497 | ||||
FPL Group, Inc.* | 2,267 | 113,191 | ||||
GDF Suez (France) | 1,594 | 50,291 | ||||
Iberdrola SA (Spain) | 5,177 | 34,857 | ||||
New Jersey Resources Corp. | 723 | 25,630 | ||||
Nicor, Inc. | 796 | 32,166 | ||||
Piedmont Natural Gas Co., Inc. | 1,318 | 33,490 | ||||
RWE AG (Germany) | 634 | 45,940 | ||||
Southern Co. | 4,210 | 137,667 | ||||
Tokyo Electric Power (The) Co., Inc. (Japan) | 1,599 | 39,632 | ||||
WGL Holdings, Inc. | 890 | 30,127 | ||||
902,869 | ||||||
Total Common Stocks | 25,452,501 | |||||
RIGHTS — 0.0% (a) | ||||||
MATERIALS — 0.0% (a) | ||||||
Air Liquide SA, expiring 6/11/10 (France)* | 329 | 2,151 | ||||
Principal | Value | |||||
CORPORATE BONDS — 19.5% | ||||||
CONSUMER DISCRETIONARY — 1.2% | ||||||
AT&T Broadband Corp. | $ | 59,000 | 68,403 | |||
Home Depot (The), Inc. | 129,000 | 140,530 | ||||
News America, Inc. | 136,000 | 140,087 | ||||
Time Warner, Inc. | 32,000 | 37,168 | ||||
Viacom, Inc. | 113,000 | 127,008 | ||||
513,196 | ||||||
See Notes to Financial Statements. | 24 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal | Value | |||||
CONSUMER STAPLES — 1.6% | ||||||
Coca-Cola Enterprises, Inc. | $ | 11,000 | $ | 14,525 | ||
Diageo Finance BV (Netherlands) | 91,000 | 100,918 | ||||
Kraft Foods | 151,000 | 171,224 | ||||
Kroger (The) Co. | 108,000 | 116,751 | ||||
Pepsi Bottling Group, Inc., Series B | 48,000 | 58,953 | ||||
Reynolds American, Inc. | 73,000 | 77,168 | ||||
Wal-Mart Stores, Inc. | 95,000 | 102,602 | ||||
642,141 | ||||||
ENERGY — 1.7% | ||||||
Anadarko Petroleum Corp. | 197,000 | 210,119 | ||||
Canadian Natural Resources Ltd. (Canada) | 105,000 | 114,882 | ||||
ConocoPhillips | 88,000 | 94,323 | ||||
Enterprise Products Operating LP, Series B | 121,000 | 131,074 | ||||
Spectra Energy Capital LLC | 152,000 | 165,295 | ||||
715,693 | ||||||
FINANCIALS — 8.3% | ||||||
Allstate (The) Corp. | 101,000 | 98,416 | ||||
American Express Co. | 67,000 | 71,422 | ||||
Bear Stearns & Co., Inc. | 28,000 | 31,968 | ||||
Boeing Capital Corp. Ltd. | 140,000 | 154,604 | ||||
Capital One Financial Corp. | 101,000 | 105,794 | ||||
Credit Suisse (USA), Inc. | 143,000 | 170,552 | ||||
Deutsche Bank AG London (Germany) | 167,000 | 179,528 | ||||
European Investment Bank (Supranational) | 288,000 | 315,802 | ||||
General Electric Capital Corp., Series A MTN | 172,000 | 179,102 | ||||
Genworth Financial, Inc. | 167,000 | 165,696 | ||||
Goldman Sachs Group, LP | 255,000 | 259,454 | ||||
HSBC Finance Corp. | 150,000 | 160,205 | ||||
JPMorgan Chase Bank NA | 200,000 | 209,861 |
Principal | Value | |||||
FINANCIALS (Continued) | ||||||
Landwirtschaftliche Rentenbank, Series G MTN (Germany) | $ | 253,000 | $ | 280,203 | ||
Marsh & McLennan Cos., Inc. | 76,000 | 80,795 | ||||
Merrill Lynch & Co., Inc. | 63,000 | 64,988 | ||||
Merrill Lynch & Co., Inc., Series C MTN | 194,000 | 191,523 | ||||
MetLife, Inc. | 113,000 | 119,372 | ||||
Morgan Stanley | 187,000 | 192,978 | ||||
Unilever Capital Corp. | 21,000 | 23,239 | ||||
Wachovia Corp. | 373,000 | 396,173 | ||||
3,451,675 | ||||||
HEALTH CARE — 1.0% | ||||||
Abbott Laboratories | 170,000 | 195,649 | ||||
AmerisourceBergen Corp. | 45,000 | 49,935 | ||||
UnitedHealth Group, Inc. | 73,000 | 77,234 | ||||
WellPoint, Inc. | 28,000 | 29,883 | ||||
Wyeth | 61,000 | 67,870 | ||||
420,571 | ||||||
INDUSTRIALS — 0.9% | ||||||
General Electric Co. | 334,000 | 358,096 | ||||
INFORMATION TECHNOLOGY — 0.8% | ||||||
IBM Corp. | 150,000 | 171,137 | ||||
Oracle Corp. | 141,000 | 157,558 | ||||
328,695 | ||||||
MATERIALS — 0.9% | ||||||
BHP Billiton Finance USA Ltd. (Australia) | 71,000 | 76,564 | ||||
CRH America, Inc. | 61,000 | 66,507 | ||||
E.I. du Pont de Nemours & Co. | 111,000 | 123,859 | ||||
Weyerhaeuser Co. | 101,000 | 98,655 | ||||
365,585 | ||||||
TELECOMMUNICATION SERVICES — 1.6% | ||||||
BellSouth Corp. | 63,000 | 62,781 | ||||
Cellco Partnership/Verizon Wireless Capital LLC | 90,000 | 99,573 |
See Notes to Financial Statements. | 25 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal | Value | |||||
TELECOMMUNICATION SERVICES (Continued) | ||||||
Deutsche Telekom International Finance BV (Netherlands) | $ | 84,000 | $ | 106,366 | ||
Embarq Corp. | 114,000 | 122,857 | ||||
Verizon Global Funding Corp. | 100,000 | 120,523 | ||||
Vodafone Group PLC (United Kingdom) | 146,000 | 158,725 | ||||
670,825 | ||||||
UTILITIES — 1.5% | ||||||
Constellation Energy Group | 135,000 | 141,864 | ||||
Dominion Resources, Inc., Series C | 170,000 | 185,182 | ||||
Exelon Generation Co. LLC | 61,000 | 66,005 | ||||
Oncor Electric Delivery Co. | 61,000 | 71,893 | ||||
Pacific Gas & Electric Co. | 147,000 | 153,693 | ||||
618,637 | ||||||
Total Corporate Bonds | 8,085,114 | |||||
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS — 16.8% | ||||||
FEDERAL HOME LOAN MORTGAGE CORP. — 2.5% | ||||||
4.50%, 1/15/13 | 750,000 | 811,654 | ||||
6.25%, 7/15/32 | 164,000 | 199,879 | ||||
1,011,533 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION — 2.1% | ||||||
5.00%, 4/15/15 | 335,000 | 377,706 | ||||
5.00%, 5/11/17 | 448,000 | 502,312 | ||||
880,018 | ||||||
UNITED STATES TREASURY BONDS/NOTES — 12.2% | ||||||
4.875%, 4/30/11 | 241,600 | 251,434 | ||||
5.00%, 8/15/11 | 949,700 | 1,001,488 | ||||
3.375%, 7/31/13 | 774,800 | 823,588 | ||||
4.75%, 5/15/14 | 817,400 | 912,615 | ||||
7.50%, 11/15/16 | 18,600 | 23,997 | ||||
8.125%, 8/15/19 | 615,000 | 854,418 | ||||
7.625%, 2/15/25 | 372,200 | 529,745 | ||||
6.25%, 5/15/30 | 499,300 | 650,026 | ||||
5,047,311 | ||||||
Total United States Government & Agencies Obligations | 6,938,862 | |||||
Principal | Value | |||||
SOVEREIGN BONDS — 1.2% | ||||||
Province of Quebec Canada (Canada) | $ | 112,000 | $ | 148,101 | ||
Republic of Italy (Italy) | 175,000 | 186,148 | ||||
United Mexican States (Mexico) | 89,000 | 98,123 | ||||
United Mexican States, Series A MTN (Mexico) | 67,000 | 73,365 | ||||
Total Sovereign Bonds | 505,737 | |||||
Total Investments — 99.0% | ||||||
(Amortized Cost $42,197,871) | $ | 40,984,365 | ||||
Other assets less liabilities — 1.0% | 420,391 | |||||
Net Assets — 100.0% | $ | 41,404,756 | ||||
ADR – American Depositary Receipt.
MTN – Medium Term Note.
REIT – Real Estate Investment Trust.
* Non-income producing security.
(a) Less than 0.1%.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1 — | quoted prices in active markets for identical securities |
Level 2 — | other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
Level 3 — | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of May 31, 2010:
Investments | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 25,452,501 | $ | — | $ | — | $ | 25,452,501 | ||||
Rights | — | 2,151 | — | 2,151 | ||||||||
Corporate Bonds | — | 8,085,114 | — | 8,085,114 | ||||||||
United States Government & Agencies Obligations | — | 6,938,862 | — | 6,938,862 | ||||||||
Sovereign Bonds | — | 505,737 | — | 505,737 | ||||||||
Total Investments | $ | 25,452,501 | $ | 15,531,864 | $ | — | $ | 40,984,365 | ||||
See Notes to Financial Statements. | 26 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
COUNTRY BREAKDOWN AS OF MAY 31, 2010
(Unaudited)
Value | % of Net Assets | |||||
United States | $ | 32,780,067 | 79.2 | % | ||
United Kingdom | 1,839,628 | 4.4 | ||||
Germany | 1,124,699 | 2.7 | ||||
Japan | 820,003 | 2.0 | ||||
Switzerland | 708,989 | 1.7 | ||||
France | 662,357 | 1.6 | ||||
Australia | 487,064 | 1.2 | ||||
Italy | 388,705 | 0.9 | ||||
Netherlands | 366,279 | 0.9 | ||||
Supranational | 315,802 | 0.8 | ||||
Spain | 295,571 | 0.7 | ||||
Canada | 262,983 | 0.6 | ||||
Mexico | 171,488 | 0.4 | ||||
Netherlands Antilles | 161,319 | 0.4 | ||||
Ireland | 124,604 | 0.3 | ||||
Sweden | 103,631 | 0.3 | ||||
Bermuda | 73,241 | 0.2 | ||||
Finland | 58,750 | 0.1 | ||||
Denmark | 57,083 | 0.1 | ||||
Belgium | 40,195 | 0.1 | ||||
Norway | 35,621 | 0.1 | ||||
Luxembourg | 34,233 | 0.1 | ||||
Cayman Islands | 21,920 | 0.1 | ||||
Hong Kong | 18,797 | 0.1 | ||||
Marshall Islands | 17,344 | 0.0 | ||||
Greece | 13,992 | 0.0 | ||||
Total Investments | 40,984,365 | 99.0 | ||||
Other assets less liabilities | 420,391 | 1.0 | ||||
Net Assets | $ | 41,404,756 | 100 | % | ||
See Notes to Financial Statements. | 27 |
TDX Independence Funds, Inc.
TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND
May 31, 2010
Number | Value | ||||
COMMON STOCKS — 83.3% | |||||
CONSUMER DISCRETIONARY — 8.6% | |||||
Amazon.com, Inc.* | 1,092 | $ | 137,002 | ||
Ameristar Casinos, Inc. | 1,044 | 18,813 | |||
AutoZone, Inc.* | 135 | 25,769 | |||
Bally Technologies, Inc.* | 938 | 39,865 | |||
Bob Evans Farms, Inc. | 555 | 16,117 | |||
Brown Shoe Co., Inc. | 3,206 | 53,476 | |||
Buckle (The), Inc. | 862 | 30,644 | |||
California Pizza Kitchen, Inc.* | 386 | 7,037 | |||
Carter’s, Inc.* | 1,065 | 32,546 | |||
Cinemark Holdings, Inc. | 2,126 | 33,995 | |||
Collective Brands, Inc.* | 1,265 | 28,311 | |||
Columbia Sportswear Co. | 594 | 30,401 | |||
Comcast Corp., Class A | 7,771 | 140,577 | |||
Cooper Tire & Rubber Co. | 952 | 18,002 | |||
Corinthian Colleges, Inc.* | 1,827 | 24,464 | |||
Daimler AG (Germany)* | 1,157 | 57,498 | |||
DIRECTV, Class A* | 2,682 | 101,085 | |||
Dress Barn (The), Inc.* | 1,112 | 30,458 | |||
Eastman Kodak Co.* | 4,623 | 26,074 | |||
Ethan Allen Interiors, Inc. | 2,129 | 43,006 | |||
Ford Motor Co.* | 7,396 | 86,755 | |||
Fossil, Inc.* | 1,256 | 47,100 | |||
Hennes & Mauritz AB, B Shares (Sweden) | 673 | 37,959 | |||
Home Depot (The), Inc. | 4,367 | 147,866 | |||
HONDA MOTOR Co. Ltd. (Japan) | 2,540 | 77,591 | |||
Iconix Brand Group, Inc.* | 1,247 | 20,264 | |||
J. Crew Group, Inc.* | 1,150 | 52,486 | |||
Jack in the Box, Inc.* | 1,031 | 23,136 | |||
Knology, Inc.* | 2,950 | 35,282 | |||
Las Vegas Sands Corp.* | 1,637 | 38,437 | |||
Life Time Fitness, Inc.* | 708 | 26,274 | |||
LVMH Moet Hennessy Louis Vuitton SA (France) | 364 | 38,567 | |||
Marcus (The) Corp. | 2,006 | 21,966 | |||
McDonald’s Corp. | 2,941 | 196,664 | |||
Men’s Wearhouse (The), Inc. | 953 | 20,718 | |||
News Corp., Class A | 4,790 | 63,228 | |||
Nissan Motor Co. Ltd. (Japan)* | 3,345 | 24,350 | |||
Omnicom Group, Inc. | 785 | 29,791 | |||
Panasonic Corp. (Japan) | 2,794 | 35,947 | |||
Rent-A-Center, Inc.* | 1,153 | 27,926 | |||
Sony Corp. (Japan) | 1,548 | 48,309 | |||
Spartan Motors, Inc. | 781 | 3,749 | |||
Talbots (The), Inc.* | 5,599 | 84,209 | |||
Target Corp. | 2,005 | 109,333 | |||
Time Warner, Inc. | 3,011 | 93,311 | |||
Toyota Motor Corp. (Japan) | 4,161 | 150,992 | |||
Tractor Supply Co. | 597 | 40,453 | |||
Tupperware Brands Corp. | 1,083 | 46,017 | |||
Vail Resorts, Inc.* | 635 | 26,422 | |||
Vivendi (France) | 1,786 | 39,071 | |||
Volcom, Inc.* | 1,800 | 35,928 | |||
Volkswagen AG (Germany) | 106 | 9,041 | |||
Walt Disney (The) Co. | 4,619 | 154,366 | |||
Warnaco Group (The), Inc.* | 811 | 34,540 | |||
2,823,188 | |||||
Number | Value | ||||
CONSUMER STAPLES — 8.4% | |||||
Anheuser-Busch Inbev NV (Belgium) | 890 | $ | 42,945 | ||
B&G Foods, Inc., Class A | 2,926 | 31,016 | |||
Boston Beer (The) Co., Inc., Class A* | 844 | 55,746 | |||
British American Tobacco PLC (United Kingdom) | 2,481 | 73,268 | |||
Campbell Soup Co. | 893 | 31,978 | |||
Carrefour SA (France) | 879 | 36,648 | |||
Casey’s General Stores, Inc. | 886 | 32,667 | |||
Coca-Cola (The) Co. | 5,785 | 297,349 | |||
CVS Caremark Corp. | 3,841 | 133,014 | |||
Diageo PLC (United Kingdom) | 3,323 | 50,688 | |||
Fresh Del Monte Produce, Inc. (Cayman Islands)* | 1,161 | 23,220 | |||
Imperial Tobacco Group PLC | 1,371 | 35,681 | |||
Kraft Foods, Inc., Class A | 3,562 | 101,873 | |||
Lancaster Colony Corp. | 505 | 27,603 | |||
Molson Coors Brewing Co., Class B | 453 | 18,591 | |||
Nestle SA (Switzerland) | 5,085 | 230,647 | |||
Philip Morris International, Inc. | 5,280 | 232,954 | |||
Prestige Brands Holdings, Inc.* | 3,768 | 29,089 | |||
Procter & Gamble (The) Co. | 7,133 | 435,755 | |||
Reckitt Benckiser Group PLC | 816 | 38,285 | |||
Ruddick Corp. | 914 | 30,180 | |||
Safeway, Inc. | 1,112 | 24,620 | |||
Tesco PLC (United Kingdom) | 10,580 | 62,963 | |||
Tootsie Roll Industries, Inc. | 1,041 | 26,067 | |||
Unilever NV (Netherlands) | 2,234 | 61,488 | |||
Unilever PLC (United Kingdom) | 1,746 | 47,157 | |||
Wal-Mart Stores, Inc. | 10,313 | 521,425 | |||
Weis Markets, Inc. | 455 | 15,365 | |||
2,748,282 | |||||
ENERGY — 9.4% | |||||
Arena Resources, Inc.* | 762 | 25,055 | |||
ATP Oil & Gas Corp.* | 3,519 | 37,442 | |||
Berry Petroleum Co., Class A | 853 | 26,221 | |||
BG Group PLC (United Kingdom) | 5,492 | 84,250 | |||
Bill Barrett Corp.* | 856 | 27,871 | |||
BP PLC (United Kingdom) | 27,567 | 197,216 | |||
Cal Dive International, Inc.* | 1,728 | 9,539 | |||
Chevron Corp. | 5,426 | 400,819 | |||
ConocoPhillips | 3,928 | 203,706 | |||
Dril-Quip, Inc.* | 708 | 34,487 | |||
ENI S.p.A (Italy) | 3,762 | 71,210 | |||
Exxon Mobil Corp. | 13,181 | 796,922 | |||
General Maritime Corp. (Marshall Islands) | 2,668 | 18,436 | |||
Goodrich Petroleum Corp.* | 712 | 8,715 | |||
ION Geophysical Corp.* | 11,343 | 61,592 | |||
Matrix Service Co.* | 2,238 | 22,022 | |||
Murphy Oil Corp. | 489 | 26,103 | |||
Nordic American Tanker Shipping Ltd. (Bermuda) | 787 | 22,351 | |||
Occidental Petroleum Corp. | 2,141 | 176,654 | |||
Peabody Energy Corp. | 654 | 25,480 | |||
Repsol YPF SA (Spain) | 1,071 | 22,188 |
See Notes to Financial Statements. | 28 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
ENERGY (Continued) | |||||
Royal Dutch Shell PLC, Class A (United Kingdom) | 5,559 | $ | 146,523 | ||
Royal Dutch Shell PLC, Class B (United Kingdom) | 4,045 | 102,436 | |||
RPC, Inc. | 1,749 | 19,746 | |||
Schlumberger Ltd. (Netherlands Antilles) | 3,144 | 176,536 | |||
Southwestern Energy Co.* | 1,935 | 72,775 | |||
StatoilHydro ASA (Norway) | 2,004 | 40,376 | |||
Total SA (France) | 3,346 | 157,350 | |||
Woodside Petroleum Ltd. (Australia) | 735 | 27,078 | |||
World Fuel Services Corp. | 1,146 | 29,830 | |||
3,070,929 | |||||
FINANCIALS — 15.2% | |||||
Aflac, Inc. | 2,742 | 121,471 | |||
Alexander’s, Inc. REIT | 95 | 30,815 | |||
Allianz SE (Germany) | 651 | 65,451 | |||
American Campus Communities, Inc. REIT | 924 | 24,735 | |||
Annaly Capital Management, Inc. REIT | 2,952 | 50,066 | |||
Assicurazioni Generali S.p.A (Italy) | 1,666 | 30,570 | |||
Australia & New Zealand Banking Group Ltd. (Australia) | 2,623 | 50,074 | |||
AXA (France) | 2,577 | 42,948 | |||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 4,409 | 46,894 | |||
Banco Santander SA (Spain) | 9,462 | 98,012 | |||
Bank of America Corp. | 21,160 | 333,057 | |||
Bank of New York Mellon (The) Corp. | 6,845 | 186,184 | |||
Barclays PLC (United Kingdom) | 10,835 | 47,796 | |||
BB&T Corp. | 3,604 | 108,985 | |||
BNP Paribas (France) | 1,264 | 73,212 | |||
Boston Private Financial Holdings, Inc. | 4,891 | 35,802 | |||
Capital One Financial Corp. | 2,165 | 89,415 | |||
Charles Schwab (The) Corp. | 6,665 | 108,906 | |||
Commonwealth Bank of Australia (Australia) | 1,811 | 80,014 | |||
Credit Suisse Group AG (Switzerland) | 1,470 | 57,342 | |||
Delphi Financial Group, Inc., Class A | 915 | 23,763 | |||
Deutsche Bank AG (Germany) | 740 | 44,235 | |||
Dime Community Bancshares, Inc. | 2,389 | 30,484 | |||
Encore Capital Group, Inc.* | 1,854 | 38,749 | |||
Equity Lifestyle Properties, Inc. REIT | 460 | 23,828 | |||
Equity One, Inc. REIT | 1,529 | 26,253 | |||
First Financial Bankshares, Inc. | 379 | 19,018 | |||
FirstMerit Corp. | 1,458 | 27,177 | |||
Franklin Resources, Inc. | 1,404 | 137,718 | |||
GAMCO Investors, Inc., Class A | 549 | 21,757 | |||
Goldman Sachs Group (The), Inc. | 1,327 | 191,433 | |||
Highwoods Properties, Inc. REIT | 1,326 | 39,064 | |||
HSBC Holdings PLC (United Kingdom) | 25,115 | 227,969 | |||
Intesa Sanpaolo S.p.A (Italy) | 11,396 | 30,179 | |||
JPMorgan Chase & Co. | 9,706 | 384,162 | |||
Kansas City Life Insurance Co. | 858 | 25,980 | |||
KBW, Inc.* | 694 | 17,412 | |||
Knight Capital Group, Inc., Class A* | 1,700 | 24,837 | |||
MarketAxess Holdings, Inc. | 2,193 | 32,369 | |||
MFA Financial, Inc. REIT | 4,174 | 30,595 | |||
Mid-America Apartment Communities, Inc. REIT | 522 | 28,517 |
Number | Value | ||||
FINANCIALS (Continued) | |||||
Mitsubishi UFJ Financial Group, Inc. (Japan) | 18,379 | $ | 89,733 | ||
Montpelier Re Holdings Ltd. (Bermuda) | 1,504 | 23,477 | |||
Moody’s Corp. | 1,223 | 25,072 | |||
Morgan Stanley | 3,522 | 95,481 | |||
Muenchener Rueckversicherungs-Gesellschaft AG (Germany) | 301 | 38,361 | |||
National Australia Bank Ltd. (Australia) | 2,444 | 51,339 | |||
National Bank of Greece SA ADR (Greece)* | 5,895 | 14,443 | |||
National Financial Partners Corp.* | 3,418 | 47,647 | |||
National Retail Properties, Inc. REIT | 1,487 | 32,684 | |||
NewAlliance Bancshares, Inc. | 1,944 | 22,881 | |||
Nordea Bank AB (Sweden) | 4,246 | 34,935 | |||
Northern Trust Corp. | 1,328 | 67,476 | |||
Omega Healthcare Investors, Inc. REIT | 1,508 | 29,949 | |||
optionsXpress Holdings, Inc.* | 1,096 | 17,591 | |||
Platinum Underwriters Holdings Ltd. (Bermuda) | 862 | 31,730 | |||
Potlatch Corp. REIT | 710 | 24,736 | |||
ProAssurance Corp.* | 601 | 35,375 | |||
Progressive (The) Corp. | 4,020 | 78,752 | |||
Prosperity Bancshares, Inc. | 844 | 30,418 | |||
Renasant Corp. | 430 | 6,171 | |||
Riskmetrics Group, Inc.* | 1,139 | 24,637 | |||
SCBT Financial Corp. | 973 | 34,824 | |||
Simon Property Group, Inc. REIT | 1,485 | 126,270 | |||
Societe Generale (France) | 792 | 34,720 | |||
Standard Chartered PLC (United Kingdom) | 2,664 | 63,053 | |||
Stifel Financial Corp.* | 494 | 25,031 | |||
Sumitomo Mitsui Financial Group, Inc. (Japan) | 878 | 26,338 | |||
Tanger Factory Outlet Centers, Inc. REIT | 588 | 24,473 | |||
Teton Advisors, Inc., Class A | 4 | 40 | |||
Tower Group, Inc. | 727 | 15,929 | |||
UBS AG (Switzerland)* | 5,184 | 69,108 | |||
UMB Financial Corp. | 688 | 26,798 | |||
UniCredito Italiano S.p.A (Italy) | 22,667 | 47,881 | |||
Washington Real Estate Investment Trust REIT | 1,040 | 30,555 | |||
Wells Fargo & Co. | 12,065 | 346,144 | |||
Westamerica Bancorp. | 564 | 31,398 | |||
Westpac Banking Corp. (Australia) | 3,686 | 73,116 | |||
Westwood Holdings Group, Inc. | 572 | 21,250 | |||
Zurich Financial Services AG (Switzerland) | 211 | 43,150 | |||
4,970,214 | |||||
HEALTH CARE — 7.8% | |||||
Abbott Laboratories | 4,308 | 204,888 | |||
Amedisys, Inc.* | 491 | 24,413 | |||
AMERIGROUP Corp.* | 960 | 34,483 | |||
AmSurg Corp.* | 577 | 11,425 | |||
AstraZeneca PLC (United Kingdom) | 1,894 | 79,456 | |||
Bayer AG (Germany) | 1,182 | 66,459 | |||
Boston Scientific Corp.* | 3,847 | 23,274 | |||
Bruker Corp.* | 3,365 | 42,853 | |||
Catalyst Health Solutions, Inc.* | 822 | 31,474 | |||
Centene Corp.* | 848 | 19,351 | |||
Emergency Medical Services Corp., Class A* | 786 | 42,106 |
See Notes to Financial Statements. | 29 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
HEALTH CARE (Continued) | |||||
eResearch Technology, Inc.* | 4,050 | $ | 32,157 | ||
Forest Laboratories, Inc.* | 786 | 20,342 | |||
Genzyme Corp.* | 704 | 34,250 | |||
GlaxoSmithKline PLC (United Kingdom) | 7,205 | 120,529 | |||
Haemonetics Corp.* | 481 | 25,945 | |||
Inspire Pharmaceuticals, Inc.* | 1,075 | 6,111 | |||
Isis Pharmaceuticals, Inc.* | 1,924 | 17,701 | |||
Johnson & Johnson | 7,000 | 408,099 | |||
Magellan Health Services, Inc.* | 675 | 27,466 | |||
Martek Biosciences Corp.* | 591 | 10,987 | |||
Medicis Pharmaceutical Corp., Class A | 1,156 | 26,808 | |||
Novartis AG (Switzerland) | 3,240 | 147,241 | |||
Novo Nordisk A/S, B Shares (Denmark) | 614 | 47,576 | |||
NuVasive, Inc.* | 748 | 29,374 | |||
Onyx Pharmaceuticals, Inc.* | 1,085 | 24,185 | |||
Owens & Minor, Inc. | 1,169 | 34,918 | |||
Pfizer, Inc. | 17,667 | 269,068 | |||
Pharmasset, Inc.* | 424 | 12,491 | |||
Psychiatric Solutions, Inc.* | 1,010 | 32,704 | |||
Quality Systems, Inc. | 568 | 33,535 | |||
Regeneron Pharmaceuticals, Inc.* | 1,553 | 44,369 | |||
Roche Holding AG (Switzerland) | 967 | 133,088 | |||
Sanofi-Aventis SA (France) | 1,558 | 94,170 | |||
SIGA Technologies, Inc.* | 3,134 | 21,781 | |||
Sirona Dental Systems, Inc.* | 969 | 34,283 | |||
STERIS Corp. | 1,078 | 34,313 | |||
Takeda Pharmaceutical Co. Ltd. (Japan) | 1,383 | 57,029 | |||
Thoratec Corp.* | 1,110 | 48,696 | |||
UnitedHealth Group, Inc. | 3,059 | 88,925 | |||
Vanda Pharmaceuticals, Inc.* | 500 | 3,655 | |||
WellCare Health Plans, Inc.* | 808 | 22,026 | |||
Zimmer Holdings, Inc.* | 567 | 31,712 | |||
ZymoGenetics, Inc.* | 1,255 | 5,836 | |||
2,561,552 | |||||
INDUSTRIALS — 9.0% | |||||
A.O. Smith Corp. | 516 | 24,056 | |||
ABB Ltd. (Switzerland)* | 3,223 | 55,329 | |||
BAE Systems PLC (United Kingdom) | 5,033 | 23,483 | |||
Baldor Electric Co. | 853 | 30,648 | |||
C.H. Robinson Worldwide, Inc. | 976 | 56,715 | |||
Caterpillar, Inc. | 1,516 | 92,112 | |||
CLARCOR, Inc. | 926 | 33,577 | |||
CRA International, Inc.* | 907 | 20,154 | |||
Curtiss-Wright Corp. | 831 | 27,523 | |||
Dollar Thrifty Automotive Group, Inc.* | 1,495 | 69,817 | |||
East Japan Railway Co. (Japan) | 486 | 30,996 | |||
Eaton Corp. | 432 | 30,218 | |||
EMCOR Group, Inc.* | 1,263 | 31,537 | |||
Emerson Electric Co. | 1,897 | 88,097 | |||
Fanuc Ltd. (Japan) | 299 | 31,728 | |||
First Solar, Inc.* | 337 | 37,865 | |||
General Dynamics Corp. | 1,017 | 69,054 | |||
General Electric Co. | 26,428 | 432,099 | |||
Geo Group (The), Inc.* | 951 | 20,066 | |||
GrafTech International Ltd.* | 2,175 | 36,127 | |||
Granite Construction, Inc. | 728 | 21,585 |
Number | Value | ||||
INDUSTRIALS (Continued) | |||||
Griffon Corp.* | 1,124 | $ | 13,645 | ||
Hawaiian Holdings, Inc.* | 3,829 | 27,262 | |||
Heartland Express, Inc. | 1,704 | 26,489 | |||
Heico Corp. | 585 | 23,336 | |||
Heidrick & Struggles International, Inc. | 1,367 | 31,646 | |||
Hutchison Whampoa Ltd. (Hong Kong) | 2,996 | 18,778 | |||
JetBlue Airways Corp.* | 5,361 | 33,238 | |||
Kforce, Inc.* | 681 | 9,207 | |||
Knight Transportation, Inc. | 1,582 | 31,450 | |||
Koninklijke Philips Electronics NV (Netherlands) | 1,474 | 44,378 | |||
L.B. Foster Co., Class A* | 722 | 20,267 | |||
Lockheed Martin Corp. | 1,014 | 81,039 | |||
Mitsubishi Corp. (Japan) | 2,021 | 46,091 | |||
Mitsui & Co. Ltd. (Japan) | 2,850 | 41,399 | |||
PACCAR, Inc. | 967 | 39,647 | |||
Regal-Beloit Corp. | 579 | 34,908 | |||
Republic Services, Inc. | 929 | 27,052 | |||
Rollins, Inc. | 1,845 | 39,225 | |||
Schneider Electric SA (France) | 369 | 37,085 | |||
Seaboard Corp. | 22 | 31,372 | |||
Siemens AG (Germany) | 1,273 | 115,302 | |||
Tetra Tech, Inc.* | 1,113 | 25,226 | |||
Towers Watson & Co., Class A | 806 | 37,076 | |||
Union Pacific Corp. | 2,767 | 197,647 | |||
United Parcel Service, Inc., Class B | 5,478 | 343,800 | |||
United Technologies Corp. | 2,456 | 165,485 | |||
Vestas Wind Systems A/S (Denmark)* | 291 | 14,026 | |||
Vicor Corp.* | 3,310 | 40,382 | |||
Vinci SA (France) | 606 | 27,493 | |||
Waste Management, Inc. | 1,293 | 42,035 | |||
Watsco, Inc. | 593 | 34,720 | |||
2,963,492 | |||||
INFORMATION TECHNOLOGY — 15.2% | |||||
Accenture PLC, Class A (Ireland) | 3,506 | 131,545 | |||
Anixter International, Inc.* | 667 | 31,683 | |||
Apple, Inc.* | 2,329 | 598,925 | |||
Arris Group, Inc.* | 2,308 | 25,319 | |||
Benchmark Electronics, Inc.* | 1,166 | 21,548 | |||
CACI International, Inc., Class A* | 545 | 25,201 | |||
CANON, Inc. (Japan) | 1,542 | 63,416 | |||
Cass Information Systems, Inc. | 655 | 20,777 | |||
Cisco Systems, Inc.* | 14,126 | 327,158 | |||
Computer Sciences Corp.* | 386 | 19,296 | |||
Concur Technologies, Inc.* | 895 | 37,859 | |||
Corning, Inc. | 3,997 | 69,668 | |||
Daktronics, Inc. | 3,185 | 26,818 | |||
Digital River, Inc.* | 680 | 18,727 | |||
Ebix, Inc.* | 480 | 7,334 | |||
Electro Scientific Industries, Inc.* | 1,940 | 24,929 | |||
EMC Corp.* | 5,066 | 94,329 | |||
EMS Technologies, Inc.* | 279 | 4,336 | |||
Entegris, Inc.* | 7,942 | 42,887 | |||
Exar Corp.* | 3,253 | 22,771 | |||
Fair Isaac Corp. | 993 | 23,038 | |||
Gartner, Inc.* | 1,702 | 42,125 |
See Notes to Financial Statements. | 30 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
INFORMATION TECHNOLOGY (Continued) | |||||
Google, Inc., Class A* | 799 | $ | 387,658 | ||
Hewlett-Packard Co. | 6,173 | 284,020 | |||
Informatica Corp.* | 1,566 | 40,403 | |||
International Business Machines Corp. | 3,300 | 413,357 | |||
IXYS Corp.* | 2,570 | 23,952 | |||
Jack Henry & Associates, Inc. | 1,550 | 37,262 | |||
ManTech International Corp., Class A* | 676 | 31,251 | |||
MasterCard, Inc., Class A | 711 | 143,458 | |||
Microsemi Corp.* | 1,413 | 21,873 | |||
Microsoft Corp. | 22,889 | 590,535 | |||
ModusLink Global Solutions, Inc.* | 3,329 | 25,434 | |||
Nintendo Co. Ltd. (Japan) | 138 | 40,608 | |||
Nokia Oyj (Finland) | 5,932 | 60,715 | |||
Oracle Corp. | 13,020 | 293,861 | |||
Palm, Inc.* | 2,858 | 16,291 | |||
Parametric Technology Corp.* | 2,123 | 34,987 | |||
Paychex, Inc. | 924 | 26,371 | |||
Polycom, Inc.* | 1,458 | 43,784 | |||
Quest Software, Inc.* | 1,701 | 32,923 | |||
Rackspace Hosting, Inc.* | 2,273 | 40,005 | |||
Riverbed Technology, Inc.* | 1,248 | 33,359 | |||
Rogers Corp.* | 265 | 7,568 | |||
SAP AG (Germany) | 1,255 | 53,686 | |||
Skyworks Solutions, Inc.* | 2,916 | 46,452 | |||
Smith Micro Software, Inc.* | 563 | 5,546 | |||
Solera Holdings, Inc. | 1,245 | 43,177 | |||
SRA International, Inc., Class A* | 984 | 21,225 | |||
Telefonaktiebolaget LM Ericsson, B Shares (Sweden) | 3,931 | 39,709 | |||
TIBCO Software, Inc.* | 3,056 | 34,869 | |||
Visa, Inc., Class A | 4,763 | 345,127 | |||
VistaPrint NV (Netherlands)* | 772 | 36,045 | |||
Yahoo!, Inc.* | 3,570 | 54,764 | |||
4,989,964 | |||||
MATERIALS — 3.6% | |||||
Air Liquide SA (France) | 356 | 34,909 | |||
AMCOL International Corp. | 573 | 15,448 | |||
American Vanguard Corp. | 2,398 | 19,112 | |||
Anglo American PLC (United Kingdom)* | 1,832 | 70,484 | |||
ArcelorMittal (Luxembourg) | 1,191 | 36,306 | |||
BASF AG (Germany) | 1,236 | 65,311 | |||
BHP Billiton Ltd. (Australia) | 4,709 | 155,561 | |||
BHP Billiton PLC (United Kingdom) | 3,093 | 85,550 | |||
Dow Chemical (The) Co. | 2,873 | 77,312 | |||
E.I. du Pont de Nemours & Co. | 2,202 | 79,646 | |||
NewMarket Corp. | 253 | 26,049 | |||
Newmont Mining Corp. | 1,241 | 66,791 | |||
Praxair, Inc. | 826 | 64,098 | |||
Rio Tinto PLC (United Kingdom) | 1,984 | 91,479 | |||
Rock-Tenn Co., Class A | 695 | 35,765 | |||
Rockwood Holdings, Inc.* | 1,261 | 32,710 | |||
Sensient Technologies Corp. | 865 | 23,952 | |||
Shin-Etsu Chemical Co. Ltd. (Japan) | 819 | 41,743 | |||
Sherwin-Williams (The) Co. | 296 | 22,682 | |||
Silgan Holdings, Inc. | 1,402 | 39,999 |
Number | Value | |||||
MATERIALS (Continued) | ||||||
Syngenta AG (Switzerland) | 146 | $ | 32,405 | |||
Vulcan Materials Co. | 321 | 16,204 | ||||
Westlake Chemical Corp. | 1,219 | 25,855 | ||||
Weyerhaeuser Co. | 542 | 23,078 | ||||
1,182,449 | ||||||
TELECOMMUNICATION SERVICES — 3.2% | ||||||
AT&T, Inc. | 16,285 | 395,726 | ||||
Deutsche Telekom AG (Germany) | 3,944 | 44,521 | ||||
France Telecom SA (France) | 2,768 | 53,197 | ||||
Koninklijke (Royal) KPN NV (Netherlands) | 2,395 | 31,409 | ||||
NTT DoCoMo, Inc. (Japan) | 22 | 33,022 | ||||
Telefonica SA (Spain) | 5,619 | 108,786 | ||||
Verizon Communications, Inc. | 7,821 | 215,234 | ||||
Vodafone Group PLC (United Kingdom) | 76,169 | 152,143 | ||||
1,034,038 | ||||||
UTILITIES — 2.9% | ||||||
Consolidated Edison, Inc. | 1,626 | 69,251 | ||||
E.ON AG (Germany) | 2,973 | 91,049 | ||||
Enel S.p.A (Italy) | 7,749 | 35,834 | ||||
EQT Corp. | 760 | 29,784 | ||||
Exelon Corp. | 3,785 | 146,100 | ||||
FPL Group, Inc.* | 2,392 | 119,433 | ||||
GDF Suez (France) | 1,703 | 53,730 | ||||
Iberdrola SA (Spain) | 5,519 | 37,159 | ||||
New Jersey Resources Corp. | 770 | 27,297 | ||||
Nicor, Inc. | 846 | 34,187 | ||||
Piedmont Natural Gas Co., Inc. | 1,402 | 35,625 | ||||
RWE AG (Germany) | 680 | 49,273 | ||||
Southern Co. | 4,467 | 146,071 | ||||
Tokyo Electric Power (The) Co., Inc. (Japan) | 1,698 | 42,086 | ||||
WGL Holdings, Inc. | 947 | 32,056 | ||||
948,935 | ||||||
Total Common Stocks | 27,293,043 | |||||
RIGHTS — 0.0% (a) | ||||||
MATERIALS — 0.0% (a) | ||||||
Air Liquide SA, expiring 6/11/10 (France)* | 356 | 2,327 | ||||
Principal | Value | |||||
CORPORATE BONDS — 9.9% | ||||||
CONSUMER DISCRETIONARY — 0.9% | ||||||
CBS Corp. | $ | 17,000 | 18,699 | |||
Comcast Corp. | 23,000 | 24,188 | ||||
Home Depot (The), Inc. | 27,000 | 29,413 | ||||
News America, Inc. | 27,000 | 27,811 | ||||
Target Corp. | 110,000 | 131,549 |
See Notes to Financial Statements. | 31 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal | Value | |||||
CONSUMER DISCRETIONARY (Continued) | ||||||
Time Warner Cable, Inc. | $ | 21,000 | $ | 21,963 | ||
Time Warner, Inc. | 22,000 | 25,553 | ||||
Viacom, Inc. | 17,000 | 19,107 | ||||
298,283 | ||||||
CONSUMER STAPLES — 0.7% | ||||||
Coca-Cola Enterprises, Inc. | 27,000 | 35,653 | ||||
Diageo Finance BV (Netherlands) | 27,000 | 29,943 | ||||
Kraft Foods | 61,000 | 69,171 | ||||
Procter & Gamble (The) Co. | 20,000 | 21,472 | ||||
Wal-Mart Stores, Inc. | 6,000 | 6,480 | ||||
6.50%, 8/15/37 | 45,000 | 52,403 | ||||
215,122 | ||||||
ENERGY — 0.6% | ||||||
Anadarko Petroleum Corp. | 29,000 | 30,931 | ||||
Canadian Natural Resources Ltd. (Canada) | 22,000 | 24,071 | ||||
ConocoPhillips | 42,000 | 45,018 | ||||
Kinder Morgan Energy Partners LP | 98,000 | 88,983 | ||||
XTO Energy Inc. | 18,000 | 21,454 | ||||
210,457 | ||||||
FINANCIALS — 3.3% | ||||||
Allstate (The) Corp. | 38,000 | 37,028 | ||||
American Express Co. | 223,000 | 237,717 | ||||
Bear Stearns & Co., Inc. | 34,000 | 38,818 | ||||
Capital One Financial Corp. | 48,000 | 50,278 | ||||
Credit Suisse (USA), Inc. | 63,000 | 75,138 | ||||
Deutsche Bank AG London (Germany) | 29,000 | 31,175 | ||||
General Electric Capital Corp., Series A MTN | 43,000 | 44,776 | ||||
Goldman Sachs Group, LP | 65,000 | 66,135 | ||||
Goldman Sachs Group (The), Inc. | 76,000 | 71,369 | ||||
HSBC Finance Corp. | 55,000 | 58,742 |
Principal | Value | |||||
FINANCIALS (Continued) | ||||||
JPMorgan Chase Bank NA | $ | 50,000 | $ | 52,465 | ||
Marsh & McLennan Cos., Inc. | 20,000 | 21,262 | ||||
Merrill Lynch & Co., Inc., Series C MTN | 72,000 | 71,081 | ||||
MetLife, Inc. | 54,000 | 57,045 | ||||
Travelers (The) Cos., Inc. | 31,000 | 28,936 | ||||
Unilever Capital Corp. | 29,000 | 32,092 | ||||
Wachovia Corp. | 67,000 | 71,163 | ||||
Wells Fargo & Co. | 16,000 | 16,812 | ||||
1,062,032 | ||||||
HEALTH CARE — 1.0% | ||||||
Abbott Laboratories | 16,000 | 18,414 | ||||
AmerisourceBergen Corp. | 17,000 | 18,864 | ||||
AstraZeneca PLC (United Kingdom) | 47,000 | 53,287 | ||||
Bristol-Myers Squibb Co. | 30,000 | 32,505 | ||||
Eli Lilly & Co. | 34,000 | 34,993 | ||||
WellPoint, Inc. | 32,000 | 34,152 | ||||
Wyeth | 125,000 | 139,078 | ||||
331,293 | ||||||
INDUSTRIALS — 0.4% | ||||||
Burlington Northern Santa Fe Corp. | 14,000 | 14,972 | ||||
CSX Corp. | 24,000 | 24,957 | ||||
General Electric Co. | 90,000 | 96,492 | ||||
136,421 | ||||||
INFORMATION TECHNOLOGY — 0.2% | ||||||
IBM Corp. | 40,000 | 45,636 | ||||
Oracle Corp. | 29,000 | 32,406 | ||||
78,042 | ||||||
MATERIALS — 0.3% | ||||||
CRH America, Inc. | 14,000 | 15,264 | ||||
Vale Overseas Ltd. (Cayman Islands) | 52,000 | 51,959 | ||||
Weyerhaeuser Co. | 26,000 | 25,396 | ||||
92,619 | ||||||
See Notes to Financial Statements. | 32 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal | Value | |||||
TELECOMMUNICATION SERVICES — 1.4% | ||||||
BellSouth Corp. | $ | 48,000 | $ | 47,833 | ||
Cellco Partnership/Verizon Wireless Capital LLC | 242,000 | 267,742 | ||||
Embarq Corp. | 12,000 | 12,932 | ||||
Verizon Global Funding Corp. | 90,000 | 108,470 | ||||
Vodafone Group PLC (United Kingdom) | 11,000 | 11,959 | ||||
448,936 | ||||||
UTILITIES — 1.1% | ||||||
Constellation Energy Group | 25,000 | 26,271 | ||||
Dominion Resources, Inc., Series C | 101,000 | 110,020 | ||||
Exelon Generation Co. LLC | 134,000 | 144,994 | ||||
Pacific Gas & Electric Co. | 32,000 | 33,457 | ||||
6.25%, 3/01/39 | 45,000 | 48,494 | ||||
363,236 | ||||||
Total Corporate Bonds | 3,236,441 | |||||
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS — 5.3% | ||||||
FEDERAL HOME LOAN MORTGAGE CORP. — 0.2% | ||||||
6.25%, 7/15/32 | 49,000 | 59,720 | ||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION — 1.2% | ||||||
5.00%, 4/15/15 | 205,000 | 231,134 | ||||
5.00%, 5/11/17 | 138,000 | 154,730 | ||||
385,864 | ||||||
UNITED STATES TREASURY BONDS/NOTES — 3.9% | ||||||
1.75%, 11/15/11 | 164,000 | 166,729 | ||||
4.75%, 5/15/14 | 331,900 | 370,561 | ||||
7.50%, 11/15/16 | 216,300 | 279,061 | ||||
8.125%, 8/15/19 | 50,000 | 69,465 | ||||
4.375%, 2/15/38 | 400,200 | 411,143 | ||||
1,296,959 | ||||||
Total United States Government & | 1,742,543 | |||||
SOVEREIGN BONDS — 0.6% | ||||||
Province of Quebec Canada (Canada) | 27,000 | 35,703 | ||||
Republic of Brazil (Brazil) | 60,000 | 69,300 |
Principal | Value | |||||
SOVEREIGN BONDS (Continued) | ||||||
Republic of Italy (Italy) | $ | 25,000 | $ | 26,593 | ||
United Mexican States (Mexico) | 50,000 | 53,875 | ||||
Total Sovereign Bonds | 185,471 | |||||
Total Investments — 99.1% | ||||||
(Amortized Cost $34,812,645) | $ | 32,459,825 | ||||
Other assets less liabilities — 0.9% | 279,897 | |||||
Net Assets — 100.0% | $ | 32,739,722 | ||||
ADR – American Depositary Receipt.
MTN – Medium Term Note.
REIT – Real Estate Investment Trust.
* Non-income producing security.
(a) Less than 0.1%.
(b) Variable Rate Coupon. Stated interest rate was in effect at May 31, 2010.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1 — | quoted prices in active markets for identical securities |
Level 2 — | other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
Level 3 — | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of May 31, 2010:
Investments | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 27,293,043 | $ | — | $ | — | $ | 27,293,043 | ||||
Rights | — | 2,327 | — | 2,327 | ||||||||
Corporate Bonds | — | 3,236,441 | — | 3,236,441 | ||||||||
United States Government & Agencies Obligations | — | 1,742,543 | — | 1,742,543 | ||||||||
Sovereign Bonds | — | 185,471 | — | 185,471 | ||||||||
Total Investments | $ | 27,293,043 | $ | 5,166,782 | $ | — | $ | 32,459,825 | ||||
See Notes to Financial Statements. | 33 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
COUNTRY BREAKDOWN AS OF MAY 31, 2010
(Unaudited)
Value | % of Net Assets | |||||
United States | $ | 25,241,972 | 77.1 | % | ||
United Kingdom | 1,865,654 | 5.7 | ||||
Japan | 881,379 | 2.7 | ||||
Switzerland | 768,311 | 2.4 | ||||
Germany | 731,362 | 2.2 | ||||
France | 725,427 | 2.2 | ||||
Australia | 437,182 | 1.3 | ||||
Spain | 313,039 | 1.0 | ||||
Italy | 242,267 | 0.7 | ||||
Netherlands | 203,264 | 0.6 | ||||
Netherlands Antilles | 176,536 | 0.6 | ||||
Ireland | 131,545 | 0.4 | ||||
Sweden | 112,603 | 0.3 | ||||
Bermuda | 77,558 | 0.2 | ||||
Cayman Islands | 75,178 | 0.2 | ||||
Brazil | 69,300 | 0.2 | ||||
Denmark | 61,601 | 0.2 | ||||
Finland | 60,715 | 0.2 | ||||
Canada | 59,773 | 0.2 | ||||
Mexico | 53,875 | 0.2 | ||||
Belgium | 42,945 | 0.1 | ||||
Norway | 40,376 | 0.1 | ||||
Luxembourg | 36,306 | 0.1 | ||||
Hong Kong | 18,778 | 0.1 | ||||
Marshall Islands | 18,436 | 0.1 | ||||
Greece | 14,443 | 0.0 | ||||
Total Investments | 32,459,825 | 99.1 | ||||
Other assets less liabilities | 279,897 | 0.9 | ||||
Net Assets | $ | 32,739,722 | 100 | % | ||
See Notes to Financial Statements. | 34 |
TDX Independence Funds, Inc.
TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND
May 31, 2010
Number | Value | ||||
COMMON STOCKS — 94.9% | |||||
CONSUMER DISCRETIONARY — 9.8% | |||||
Amazon.com, Inc.* | 1,214 | $ | 152,308 | ||
Ameristar Casinos, Inc. | 1,142 | 20,579 | |||
AutoZone, Inc.* | 210 | 40,085 | |||
Bally Technologies, Inc.* | 1,023 | 43,478 | |||
Bob Evans Farms, Inc. | 610 | 17,714 | |||
Brown Shoe Co., Inc. | 3,493 | 58,263 | |||
Buckle (The), Inc. | 961 | 34,164 | |||
California Pizza Kitchen, Inc.* | 428 | 7,802 | |||
Carter’s, Inc.* | 1,193 | 36,458 | |||
Cinemark Holdings, Inc. | 2,307 | 36,889 | |||
Collective Brands, Inc.* | 1,400 | 31,332 | |||
Columbia Sportswear Co. | 653 | 33,421 | |||
Comcast Corp., Class A | 8,494 | 153,656 | |||
Cooper Tire & Rubber Co. | 934 | 17,662 | |||
Corinthian Colleges, Inc.* | 1,993 | 26,686 | |||
Daimler AG (Germany)* | 1,256 | 62,418 | |||
DIRECTV, Class A* | 2,914 | 109,829 | |||
Dress Barn (The), Inc.* | 1,238 | 33,909 | |||
Eastman Kodak Co.* | 5,013 | 28,273 | |||
Ethan Allen Interiors, Inc. | 2,248 | 45,410 | |||
Ford Motor Co.* | 8,209 | 96,292 | |||
Fossil, Inc.* | 1,372 | 51,450 | |||
Hennes & Mauritz AB, B Shares (Sweden) | 746 | 42,076 | |||
Home Depot (The), Inc. | 4,772 | 161,580 | |||
HONDA MOTOR Co. Ltd. (Japan) | 2,754 | 84,128 | |||
Iconix Brand Group, Inc.* | 1,370 | 22,263 | |||
J. Crew Group, Inc.* | 1,262 | 57,598 | |||
Jack in the Box, Inc.* | 1,134 | 25,447 | |||
Knology, Inc.* | 3,197 | 38,236 | |||
Las Vegas Sands Corp.* | 1,769 | 41,536 | |||
Life Time Fitness, Inc.* | 768 | 28,500 | |||
LVMH Moet Hennessy Louis Vuitton SA (France) | 393 | 41,639 | |||
Marcus (The) Corp. | 2,181 | 23,882 | |||
McDonald’s Corp. | 3,214 | 214,920 | |||
Men’s Wearhouse (The), Inc. | 1,053 | 22,892 | |||
News Corp., Class A | 5,181 | 68,389 | |||
Nissan Motor Co. Ltd. (Japan)* | 3,605 | 26,243 | |||
Omnicom Group, Inc. | 854 | 32,409 | |||
Panasonic Corp. (Japan) | 3,076 | 39,575 | |||
Rent-A-Center, Inc.* | 1,282 | 31,050 | |||
Sony Corp. (Japan) | 1,677 | 52,335 | |||
Spartan Motors, Inc. | 846 | 4,061 | |||
Talbots (The), Inc.* | 6,185 | 93,022 | |||
Target Corp. | 2,174 | 118,548 | |||
Time Warner, Inc. | 3,260 | 101,027 | |||
Toyota Motor Corp. (Japan) | 4,570 | 165,834 | |||
Tractor Supply Co. | 675 | 45,738 | |||
Tupperware Brands Corp. | 1,182 | 50,223 | |||
Vail Resorts, Inc.* | 693 | 28,836 | |||
Vivendi (France) | 1,958 | 42,834 | |||
Volcom, Inc.* | 1,957 | 39,062 | |||
Volkswagen AG (Germany) | 115 | 9,809 | |||
Walt Disney (The) Co. | 5,011 | 167,468 | |||
Warnaco Group (The), Inc.* | 886 | 37,735 | |||
3,096,973 | |||||
Number | Value | ||||
CONSUMER STAPLES — 9.6% | |||||
Anheuser-Busch Inbev NV (Belgium) | 967 | $ | 46,661 | ||
B&G Foods, Inc., Class A | 3,172 | 33,623 | |||
Boston Beer (The) Co., Inc., Class A* | 869 | 57,397 | |||
British American Tobacco PLC (United Kingdom) | 2,692 | 79,498 | |||
Campbell Soup Co. | 977 | 34,986 | |||
Carrefour SA (France) | 967 | 40,317 | |||
Casey’s General Stores, Inc. | 969 | 35,727 | |||
Coca-Cola (The) Co. | 6,338 | 325,773 | |||
CVS Caremark Corp. | 4,165 | 144,234 | |||
Diageo PLC (United Kingdom) | 4,170 | 63,608 | |||
Fresh Del Monte Produce, Inc. (Cayman Islands)* | 1,256 | 25,120 | |||
Imperial Tobacco Group PLC (United Kingdom) | 1,491 | 38,804 | |||
Kraft Foods, Inc., Class A | 3,870 | 110,682 | |||
Lancaster Colony Corp. | 555 | 30,336 | |||
Molson Coors Brewing Co., Class B | 491 | 20,151 | |||
Nestle SA (Switzerland) | 5,567 | 252,510 | |||
Philip Morris International, Inc. | 5,702 | 251,572 | |||
Prestige Brands Holdings, Inc.* | 4,074 | 31,451 | |||
Procter & Gamble (The) Co. | 7,807 | 476,930 | |||
Reckitt Benckiser Group PLC (United Kingdom) | 881 | 41,335 | |||
Ruddick Corp. | 994 | 32,822 | |||
Safeway, Inc. | 1,210 | 26,789 | |||
Tesco PLC (United Kingdom) | 11,554 | 68,759 | |||
Tootsie Roll Industries, Inc. | 1,134 | 28,395 | |||
Unilever NV (Netherlands) | 2,425 | 66,746 | |||
Unilever PLC (United Kingdom) | 1,897 | 51,235 | |||
Wal-Mart Stores, Inc. | 11,417 | 577,245 | |||
Weis Markets, Inc. | 497 | 16,784 | |||
3,009,490 | |||||
ENERGY — 10.7% | |||||
Arena Resources, Inc.* | 826 | 27,159 | |||
ATP Oil & Gas Corp.* | 3,805 | 40,485 | |||
Berry Petroleum Co., Class A | 921 | 28,312 | |||
BG Group PLC (United Kingdom) | 5,974 | 91,644 | |||
Bill Barrett Corp.* | 926 | 30,151 | |||
BP PLC (United Kingdom) | 30,137 | 215,601 | |||
Cal Dive International, Inc.* | 1,868 | 10,311 | |||
Chevron Corp. | 5,935 | 438,418 | |||
ConocoPhillips | 4,245 | 220,146 | |||
Dril-Quip, Inc.* | 766 | 37,312 | |||
ENI S.p.A (Italy) | 4,081 | 77,249 | |||
Exxon Mobil Corp. | 14,420 | 871,832 | |||
General Maritime Corp. (Marshall Islands) | 2,890 | 19,970 | |||
Goodrich Petroleum Corp.* | 770 | 9,425 | |||
ION Geophysical Corp.* | 11,024 | 59,860 | |||
Matrix Service Co.* | 2,424 | 23,852 | |||
Murphy Oil Corp. | 529 | 28,238 | |||
Nordic American Tanker Shipping Ltd. (Bermuda) | 854 | 24,254 | |||
Occidental Petroleum Corp. | 2,316 | 191,093 | |||
Peabody Energy Corp. | 706 | 27,506 | |||
Repsol YPF SA (Spain) | 1,167 | 24,177 |
See Notes to Financial Statements. | 35 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
ENERGY (Continued) | |||||
Royal Dutch Shell PLC, Class A (United Kingdom) | 6,076 | $ | 160,150 | ||
Royal Dutch Shell PLC, Class B (United Kingdom) | 4,742 | 120,087 | |||
RPC, Inc. | 1,892 | 21,361 | |||
Schlumberger Ltd. (Netherlands Antilles) | 3,402 | 191,022 | |||
Southwestern Energy Co.* | 2,104 | 79,131 | |||
StatoilHydro ASA (Norway) | 2,432 | 48,999 | |||
Total SA (France) | 3,657 | 171,975 | |||
Woodside Petroleum Ltd. (Australia) | 795 | 29,289 | |||
World Fuel Services Corp. | 1,252 | 32,590 | |||
3,351,599 | |||||
FINANCIALS — 17.2% | |||||
Aflac, Inc. | 2,956 | 130,951 | |||
Alexander’s, Inc. REIT | 103 | 33,410 | |||
Allianz SE (Germany) | 706 | 70,981 | |||
American Campus Communities, Inc. REIT | 998 | 26,716 | |||
Annaly Capital Management, Inc. REIT | 3,203 | 54,323 | |||
Assicurazioni Generali S.p.A (Italy) | 1,811 | 33,231 | |||
Australia & New Zealand Banking Group Ltd. (Australia) | 2,832 | 54,063 | |||
AXA (France) | 2,701 | 45,015 | |||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 4,790 | 50,946 | |||
Banco Santander SA (Spain) | 10,795 | 111,820 | |||
Bank of America Corp. | 22,963 | 361,437 | |||
Bank of New York Mellon (The) Corp. | 7,518 | 204,490 | |||
Barclays PLC (United Kingdom) | 11,765 | 51,899 | |||
BB&T Corp. | 4,012 | 121,323 | |||
BNP Paribas (France) | 1,368 | 79,236 | |||
Boston Private Financial Holdings, Inc. | 5,010 | 36,673 | |||
Capital One Financial Corp. | 2,344 | 96,807 | |||
Charles Schwab (The) Corp. | 7,301 | 119,298 | |||
Commonwealth Bank of Australia (Australia) | 1,955 | 86,376 | |||
Credit Suisse Group AG (Switzerland) | 1,595 | 62,218 | |||
Delphi Financial Group, Inc., Class A | 993 | 25,788 | |||
Deutsche Bank AG (Germany) | 801 | 47,881 | |||
Dime Community Bancshares, Inc. | 2,590 | 33,048 | |||
Encore Capital Group, Inc.* | 2,013 | 42,072 | |||
Equity Lifestyle Properties, Inc. REIT | 502 | 26,004 | |||
Equity One, Inc. REIT | 1,651 | 28,348 | |||
First Financial Bankshares, Inc. | 418 | 20,975 | |||
FirstMerit Corp. | 1,592 | 29,675 | |||
Franklin Resources, Inc. | 1,476 | 144,781 | |||
GAMCO Investors, Inc., Class A | 697 | 27,622 | |||
Goldman Sachs Group (The), Inc. | 1,375 | 198,358 | |||
Highwoods Properties, Inc. REIT | 1,435 | 42,275 | |||
HSBC Holdings PLC (United Kingdom) | 27,369 | 248,429 | |||
Intesa Sanpaolo S.p.A (Italy) | 12,684 | 33,590 | |||
JPMorgan Chase & Co. | 10,626 | 420,576 | |||
Kansas City Life Insurance Co. | 927 | 28,070 | |||
KBW, Inc.* | 754 | 18,918 | |||
Knight Capital Group, Inc., Class A* | 1,946 | 28,431 | |||
MarketAxess Holdings, Inc. | 2,385 | 35,203 | |||
MFA Financial, Inc. REIT | 4,536 | 33,249 | |||
Mid-America Apartment Communities, Inc. REIT | 566 | 30,921 |
Number | Value | ||||
FINANCIALS (Continued) | |||||
Mitsubishi UFJ Financial Group, Inc. (Japan) | 20,097 | $ | 98,120 | ||
Montpelier Re Holdings Ltd. (Bermuda) | 1,632 | 25,476 | |||
Moody’s Corp. | 1,325 | 27,163 | |||
Morgan Stanley | 3,920 | 106,271 | |||
Muenchener Rueckversicherungs-Gesellschaft AG (Germany) | 327 | 41,675 | |||
National Australia Bank Ltd. (Australia) | 2,657 | 55,813 | |||
National Bank of Greece SA ADR (Greece)* | 7,051 | 17,275 | |||
National Financial Partners Corp.* | 3,696 | 51,522 | |||
National Retail Properties, Inc. REIT | 1,608 | 35,344 | |||
NewAlliance Bancshares, Inc. | 2,115 | 24,894 | |||
Nordea Bank AB (Sweden) | 4,669 | 38,415 | |||
Northern Trust Corp. | 1,433 | 72,811 | |||
Omega Healthcare Investors, Inc. REIT | 1,637 | 32,511 | |||
optionsXpress Holdings, Inc.* | 1,188 | 19,067 | |||
Platinum Underwriters Holdings Ltd. (Bermuda) | 945 | 34,785 | |||
Potlatch Corp. REIT | 770 | 26,827 | |||
ProAssurance Corp.* | 654 | 38,494 | |||
Progressive (The) Corp. | 4,350 | 85,217 | |||
Prosperity Bancshares, Inc. | 919 | 33,121 | |||
Renasant Corp. | 465 | 6,673 | |||
Riskmetrics Group, Inc.* | 1,238 | 26,778 | |||
SCBT Financial Corp. | 1,057 | 37,830 | |||
Simon Property Group, Inc. REIT | 1,609 | 136,813 | |||
Societe Generale (France) | 859 | 37,657 | |||
Standard Chartered PLC (United Kingdom) | 3,287 | 77,799 | |||
Stifel Financial Corp.* | 537 | 27,210 | |||
Sumitomo Mitsui Financial Group, Inc. (Japan) | 953 | 28,588 | |||
Tanger Factory Outlet Centers, Inc. REIT | 640 | 26,637 | |||
Teton Advisors, Inc., Class A | 4 | 40 | |||
Tower Group, Inc. | 795 | 17,418 | |||
UBS AG (Switzerland)* | 5,695 | 75,920 | |||
UMB Financial Corp. | 849 | 33,069 | |||
UniCredito Italiano S.p.A (Italy) | 24,811 | 52,410 | |||
Washington Real Estate Investment Trust REIT | 1,125 | 33,053 | |||
Wells Fargo & Co. | 13,173 | 377,932 | |||
Westamerica Bancorp. | 618 | 34,404 | |||
Westpac Banking Corp. (Australia) | 3,986 | 79,067 | |||
Westwood Holdings Group, Inc. | 622 | 23,107 | |||
Zurich Financial Services AG (Switzerland) | 231 | 47,240 | |||
5,419,873 | |||||
HEALTH CARE — 8.9% | |||||
Abbott Laboratories | 4,675 | 222,343 | |||
Amedisys, Inc.* | 530 | 26,352 | |||
AMERIGROUP Corp.* | 1,042 | 37,429 | |||
AmSurg Corp.* | 622 | 12,316 | |||
AstraZeneca PLC (United Kingdom) | 2,053 | 86,126 | |||
Bayer AG (Germany) | 1,284 | 72,194 | |||
Boston Scientific Corp.* | 4,156 | 25,144 | |||
Bruker Corp.* | 3,649 | 46,470 | |||
Catalyst Health Solutions, Inc.* | 939 | 35,954 | |||
Centene Corp.* | 918 | 20,949 | |||
Emergency Medical Services Corp., Class A* | 888 | 47,570 | |||
eResearch Technology, Inc.* | 4,387 | 34,833 | |||
Forest Laboratories, Inc.* | 853 | 22,076 |
See Notes to Financial Statements. | 36 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
HEALTH CARE (Continued) | |||||
Genzyme Corp.* | 765 | $ | 37,217 | ||
GlaxoSmithKline PLC (United Kingdom) | 7,772 | 130,014 | |||
Haemonetics Corp.* | 524 | 28,265 | |||
Inspire Pharmaceuticals, Inc.* | 1,186 | 6,742 | |||
Isis Pharmaceuticals, Inc.* | 2,092 | 19,246 | |||
Johnson & Johnson | 7,708 | 449,376 | |||
Magellan Health Services, Inc.* | 729 | 29,663 | |||
Martek Biosciences Corp.* | 640 | 11,898 | |||
Medicis Pharmaceutical Corp., Class A | 1,254 | 29,080 | |||
Novartis AG (Switzerland) | 3,529 | 160,374 | |||
Novo Nordisk A/S, B Shares (Denmark) | 667 | 51,682 | |||
NuVasive, Inc.* | 811 | 31,848 | |||
Onyx Pharmaceuticals, Inc.* | 1,177 | 26,235 | |||
Owens & Minor, Inc. | 1,269 | 37,905 | |||
Pfizer, Inc. | 19,449 | 296,208 | |||
Pharmasset, Inc.* | 459 | 13,522 | |||
Psychiatric Solutions, Inc.* | 1,089 | 35,262 | |||
Quality Systems, Inc. | 620 | 36,605 | |||
Regeneron Pharmaceuticals, Inc.* | 1,686 | 48,169 | |||
Roche Holding AG (Switzerland) | 1,115 | 153,458 | |||
Sanofi-Aventis SA (France) | 1,688 | 102,028 | |||
SIGA Technologies, Inc.* | 3,417 | 23,748 | |||
Sirona Dental Systems, Inc.* | 1,047 | 37,043 | |||
STERIS Corp. | 1,168 | 37,177 | |||
Takeda Pharmaceutical Co. Ltd. (Japan) | 1,391 | 57,359 | |||
Thoratec Corp.* | 1,209 | 53,039 | |||
UnitedHealth Group, Inc. | 3,404 | 98,954 | |||
Vanda Pharmaceuticals, Inc.* | 549 | 4,013 | |||
WellCare Health Plans, Inc.* | 872 | 23,771 | |||
Zimmer Holdings, Inc.* | 611 | 34,173 | |||
ZymoGenetics, Inc.* | 1,359 | 6,319 | |||
2,800,149 | |||||
INDUSTRIALS — 10.3% | |||||
A.O. Smith Corp. | 557 | 25,967 | |||
ABB Ltd. (Switzerland)* | 3,511 | 60,274 | |||
BAE Systems PLC (United Kingdom) | 5,457 | 25,461 | |||
Baldor Electric Co. | 925 | 33,235 | |||
C.H. Robinson Worldwide, Inc. | 1,065 | 61,887 | |||
Caterpillar, Inc. | 1,693 | 102,867 | |||
CLARCOR, Inc. | 1,009 | 36,586 | |||
CRA International, Inc.* | 984 | 21,864 | |||
Curtiss-Wright Corp. | 901 | 29,841 | |||
Dollar Thrifty Automotive Group, Inc.* | 1,770 | 82,659 | |||
East Japan Railway Co. (Japan) | 620 | 39,543 | |||
Eaton Corp. | 467 | 32,667 | |||
EMCOR Group, Inc.* | 1,368 | 34,159 | |||
Emerson Electric Co. | 2,064 | 95,852 | |||
Fanuc Ltd. (Japan) | 300 | 31,834 | |||
First Solar, Inc.* | 307 | 34,495 | |||
General Dynamics Corp. | 1,105 | 75,030 | |||
General Electric Co. | 29,314 | 479,283 | |||
Geo Group (The), Inc.* | 1,030 | 21,733 | |||
GrafTech International Ltd.* | 2,357 | 39,150 | |||
Granite Construction, Inc. | 795 | 23,572 | |||
Griffon Corp.* | 1,222 | 14,835 | |||
Hawaiian Holdings, Inc.* | 4,225 | 30,082 |
Number | Value | ||||
INDUSTRIALS (Continued) | |||||
Heartland Express, Inc. | 1,865 | $ | 28,991 | ||
Heico Corp. | 636 | 25,370 | |||
Heidrick & Struggles International, Inc. | 1,480 | 34,262 | |||
Hutchison Whampoa Ltd. (Hong Kong) | 3,998 | 25,058 | |||
JetBlue Airways Corp.* | 5,685 | 35,247 | |||
Kforce, Inc.* | 739 | 9,991 | |||
Knight Transportation, Inc. | 1,726 | 34,313 | |||
Koninklijke Philips Electronics NV (Netherlands) | 1,589 | 47,841 | |||
L.B. Foster Co., Class A* | 783 | 21,979 | |||
Lockheed Martin Corp. | 1,108 | 88,551 | |||
Mitsubishi Corp. (Japan) | 2,241 | 51,108 | |||
Mitsui & Co. Ltd. (Japan) | 3,151 | 45,772 | |||
PACCAR, Inc. | 1,051 | 43,091 | |||
Regal-Beloit Corp. | 630 | 37,983 | |||
Republic Services, Inc. | 1,003 | 29,207 | |||
Rollins, Inc. | 2,028 | 43,115 | |||
Schneider Electric SA (France) | 403 | 40,503 | |||
Seaboard Corp. | 24 | 34,224 | |||
Siemens AG (Germany) | 1,376 | 124,631 | |||
Tetra Tech, Inc.* | 1,214 | 27,515 | |||
Towers Watson & Co., Class A | 873 | 40,158 | |||
Union Pacific Corp. | 2,985 | 213,219 | |||
United Parcel Service, Inc., Class B | 6,073 | 381,141 | |||
United Technologies Corp. | 2,684 | 180,848 | |||
Vestas Wind Systems A/S (Denmark)* | 316 | 15,231 | |||
Vicor Corp.* | 3,593 | 43,835 | |||
Vinci SA (France) | 662 | 30,033 | |||
Waste Management, Inc. | 1,407 | 45,742 | |||
Watsco, Inc. | 641 | 37,531 | |||
3,249,366 | |||||
INFORMATION TECHNOLOGY — 17.3% | |||||
Accenture PLC, Class A (Ireland) | 3,814 | 143,101 | |||
Anixter International, Inc.* | 720 | 34,200 | |||
Apple, Inc.* | 2,536 | 652,157 | |||
Arris Group, Inc.* | 2,508 | 27,513 | |||
Benchmark Electronics, Inc.* | 1,258 | 23,248 | |||
CACI International, Inc., Class A* | 591 | 27,328 | |||
CANON, Inc. (Japan) | 1,693 | 69,626 | |||
Cass Information Systems, Inc. | 712 | 22,585 | |||
Cisco Systems, Inc.* | 15,642 | 362,269 | |||
Computer Sciences Corp.* | 416 | 20,796 | |||
Concur Technologies, Inc.* | 971 | 41,073 | |||
Corning, Inc. | 4,327 | 75,420 | |||
Daktronics, Inc. | 3,444 | 28,998 | |||
Digital River, Inc.* | 738 | 20,325 | |||
Ebix, Inc.* | 563 | 8,603 | |||
Electro Scientific Industries, Inc.* | 2,098 | 26,959 | |||
EMC Corp.* | 5,496 | 102,336 | |||
EMS Technologies, Inc.* | 300 | 4,662 | |||
Entegris, Inc.* | 8,590 | 46,386 | |||
Exar Corp.* | 3,522 | 24,654 | |||
Fair Isaac Corp. | 1,071 | 24,847 | |||
Gartner, Inc.* | 1,840 | 45,540 | |||
Google, Inc., Class A* | 867 | 420,651 | |||
Hewlett-Packard Co. | 6,731 | 309,693 |
See Notes to Financial Statements. | 37 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number | Value | ||||
INFORMATION TECHNOLOGY (Continued) | |||||
Informatica Corp.* | 1,707 | $ | 44,041 | ||
International Business Machines Corp. | 3,594 | 450,184 | |||
IXYS Corp.* | 2,783 | 25,938 | |||
Jack Henry & Associates, Inc. | 1,685 | 40,507 | |||
ManTech International Corp., Class A* | 734 | 33,933 | |||
MasterCard, Inc., Class A | 772 | 155,766 | |||
Microsemi Corp.* | 1,525 | 23,607 | |||
Microsoft Corp. | 25,147 | 648,793 | |||
ModusLink Global Solutions, Inc.* | 3,600 | 27,504 | |||
Nintendo Co. Ltd. (Japan) | 154 | 45,316 | |||
Nokia Oyj (Finland) | 6,472 | 66,242 | |||
Oracle Corp. | 14,224 | 321,036 | |||
Palm, Inc.* | 3,105 | 17,699 | |||
Parametric Technology Corp.* | 2,296 | 37,838 | |||
Paychex, Inc. | 1,011 | 28,854 | |||
Polycom, Inc.* | 1,580 | 47,447 | |||
Quest Software, Inc.* | 1,843 | 35,671 | |||
Rackspace Hosting, Inc.* | 2,464 | 43,366 | |||
Riverbed Technology, Inc.* | 1,358 | 36,299 | |||
Rogers Corp.* | 282 | 8,054 | |||
SAP AG (Germany) | 1,364 | 58,349 | |||
Skyworks Solutions, Inc.* | 3,126 | 49,797 | |||
Smith Micro Software, Inc.* | 613 | 6,038 | |||
Solera Holdings, Inc. | 1,350 | 46,818 | |||
SRA International, Inc., Class A* | 1,065 | 22,972 | |||
Telefonaktiebolaget LM Ericsson, B Shares (Sweden) | 4,249 | 42,921 | |||
TIBCO Software, Inc.* | 3,310 | 37,767 | |||
Visa, Inc., Class A | 5,379 | 389,762 | |||
VistaPrint NV (Netherlands)* | 843 | 39,360 | |||
Yahoo!, Inc.* | 3,863 | 59,258 | |||
5,454,107 | |||||
MATERIALS — 4.2% | |||||
Air Liquide SA (France) | 385 | 37,753 | |||
AMCOL International Corp. | 622 | 16,769 | |||
American Vanguard Corp. | 2,606 | 20,770 | |||
Anglo American PLC (United Kingdom)* | 2,214 | 85,182 | |||
ArcelorMittal (Luxembourg) | 1,290 | 39,324 | |||
BASF AG (Germany) | 1,337 | 70,648 | |||
BHP Billiton Ltd. (Australia) | 5,333 | 176,175 | |||
BHP Billiton PLC (United Kingdom) | 3,675 | 101,647 | |||
Dow Chemical (The) Co. | 3,116 | 83,852 | |||
E.I. du Pont de Nemours & Co. | 2,391 | 86,481 | |||
NewMarket Corp. | 275 | 28,314 | |||
Newmont Mining Corp. | 1,449 | 77,985 | |||
Praxair, Inc. | 945 | 73,332 | |||
Rio Tinto PLC (United Kingdom) | 2,172 | 100,147 | |||
Rock-Tenn Co., Class A | 757 | 38,955 | |||
Rockwood Holdings, Inc.* | 1,365 | 35,408 | |||
Sensient Technologies Corp. | 940 | 26,029 | |||
Sherwin-Williams (The) Co. | 359 | 27,510 | |||
Shin-Etsu Chemical Co. Ltd. (Japan) | 700 | 35,677 | |||
Silgan Holdings, Inc. | 1,530 | 43,651 | |||
Syngenta AG (Switzerland) | 159 | 35,291 | |||
Vulcan Materials Co. | 349 | 17,618 |
Number | Value | |||||
MATERIALS (Continued) | ||||||
Westlake Chemical Corp. | 1,328 | $ | 28,167 | |||
Weyerhaeuser Co. | 587 | 24,994 | ||||
1,311,679 | ||||||
TELECOMMUNICATION SERVICES — 3.6% | ||||||
AT&T, Inc. | 17,903 | 435,043 | ||||
Deutsche Telekom AG (Germany) | 4,285 | 48,370 | ||||
France Telecom SA (France) | 3,008 | 57,810 | ||||
Koninklijke (Royal) KPN NV (Netherlands) | 2,611 | 34,242 | ||||
NTT DoCoMo, Inc. (Japan) | 25 | 37,525 | ||||
Telefonica SA (Spain) | 6,627 | 128,302 | ||||
Verizon Communications, Inc. | 8,681 | 238,901 | ||||
Vodafone Group PLC (United Kingdom) | 82,833 | 165,454 | ||||
1,145,647 | ||||||
UTILITIES — 3.3% | ||||||
Consolidated Edison, Inc. | 1,756 | 74,788 | ||||
E.ON AG (Germany) | 3,289 | 100,727 | ||||
Enel S.p.A (Italy) | 8,393 | 38,812 | ||||
EQT Corp. | 819 | 32,097 | ||||
Exelon Corp. | 4,103 | 158,376 | ||||
FPL Group, Inc.* | 2,591 | 129,369 | ||||
GDF Suez (France) | 1,844 | 58,178 | ||||
Iberdrola SA (Spain) | 5,992 | 40,344 | ||||
New Jersey Resources Corp. | 844 | 29,920 | ||||
Nicor, Inc. | 918 | 37,096 | ||||
Piedmont Natural Gas Co., Inc. | 1,527 | 38,801 | ||||
RWE AG (Germany) | 737 | 53,403 | ||||
Southern Co. | 4,932 | 161,275 | ||||
Tokyo Electric Power (The) Co., Inc. (Japan) | 1,900 | 47,093 | ||||
WGL Holdings, Inc. | 1,029 | 34,832 | ||||
1,035,111 | ||||||
Total Common Stocks | 29,873,994 | |||||
RIGHTS — 0.0% (a) | ||||||
MATERIALS — 0.0% (a) | ||||||
Air Liquide SA, expiring 6/11/10 (France)* | 385 | 2,517 | ||||
Principal | Value | |||||
CORPORATE BONDS — 2.8% | ||||||
CONSUMER DISCRETIONARY — 0.3% | ||||||
CBS Corp. | $ | 5,000 | 5,500 | |||
Comcast Corp. | 8,000 | 8,413 | ||||
Home Depot (The), Inc. | 17,000 | 18,519 | ||||
News America, Inc. | 13,000 | 13,391 | ||||
Target Corp. | 16,000 | 19,135 | ||||
Time Warner Cable, Inc. | 6,000 | 6,275 |
See Notes to Financial Statements. | 38 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal | Value | |||||
CONSUMER DISCRETIONARY (Continued) | ||||||
Time Warner, Inc. | $ | 5,000 | $ | 5,807 | ||
Viacom, Inc. | 6,000 | 6,744 | ||||
83,784 | ||||||
CONSUMER STAPLES — 0.2% | ||||||
CVS Caremark Corp. | 18,000 | 16,297 | ||||
Diageo Finance BV (Netherlands) | 9,000 | 9,981 | ||||
Kraft Foods | 18,000 | 20,411 | ||||
Pepsi Bottling Group, Inc., Series B | 4,000 | 4,913 | ||||
Procter & Gamble (The) Co. | 10,000 | 10,736 | ||||
Wal-Mart Stores, Inc. | 8,000 | 9,316 | ||||
71,654 | ||||||
ENERGY — 0.2% | ||||||
Anadarko Petroleum Corp. | 20,000 | 21,331 | ||||
Canadian Natural Resources Ltd. (Canada) | 2,000 | 2,188 | ||||
ConocoPhillips | 14,000 | 15,006 | ||||
Enterprise Products Operating LP, Series B | 2,000 | 2,167 | ||||
Kinder Morgan Energy Partners LP | 13,000 | 11,804 | ||||
52,496 | ||||||
FINANCIALS — 1.1% | ||||||
Allstate (The) Corp. | 5,000 | 4,872 | ||||
American Express Co. | 49,000 | 52,234 | ||||
Capital One Financial Corp. | 8,000 | 8,380 | ||||
Credit Suisse (USA), Inc. | 28,000 | 33,395 | ||||
General Electric Capital Corp., Series A MTN | 7,000 | 7,289 | ||||
Goldman Sachs Group, LP | 29,000 | 29,507 | ||||
Goldman Sachs Group (The), Inc. | 69,000 | 64,795 | ||||
HSBC Finance Corp. | 20,000 | 21,361 | ||||
JPMorgan Chase Bank NA | 25,000 | 26,233 | ||||
Landwirtschaftliche Rentenbank, Series G MTN (Germany) | 9,000 | 9,968 |
Principal | Value | |||||
FINANCIALS (Continued) | ||||||
Merrill Lynch & Co., Inc. | $ | 4,000 | $ | 4,126 | ||
Merrill Lynch & Co., Inc., Series C MTN | 18,000 | 17,770 | ||||
MetLife, Inc. | 18,000 | 19,015 | ||||
Travelers (The) Cos., Inc. | 10,000 | 9,334 | ||||
Unilever Capital Corp. | 8,000 | 8,853 | ||||
Wachovia Corp. | 13,000 | 13,808 | ||||
Wells Fargo & Co. | 2,000 | 2,101 | ||||
333,041 | ||||||
HEALTH CARE — 0.2% | ||||||
Abbott Laboratories | 22,000 | 25,320 | ||||
AmerisourceBergen Corp. | 9,000 | 9,987 | ||||
Eli Lilly & Co. | 8,000 | 8,234 | ||||
WellPoint, Inc. | 2,000 | 2,134 | ||||
Wyeth | 20,000 | 22,252 | ||||
67,927 | ||||||
INDUSTRIALS — 0.1% | ||||||
CSX Corp. | 10,000 | 10,399 | ||||
General Electric Co. | 27,000 | 28,947 | ||||
39,346 | ||||||
INFORMATION TECHNOLOGY — 0.1% | ||||||
IBM Corp. | 10,000 | 11,409 | ||||
Oracle Corp. | 9,000 | 10,057 | ||||
21,466 | ||||||
MATERIALS — 0.1% | ||||||
CRH America, Inc. | 6,000 | 6,541 | ||||
Vale Overseas Ltd. (Cayman Islands) | 9,000 | 8,993 | ||||
Weyerhaeuser Co. | 6,000 | 5,861 | ||||
21,395 | ||||||
TELECOMMUNICATION SERVICES — 0.3% | ||||||
BellSouth Corp. | 13,000 | 12,955 | ||||
Cellco Partnership/Verizon Wireless Capital LLC | 40,000 | 44,255 |
See Notes to Financial Statements. | 39 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal | Value | |||||
TELECOMMUNICATION SERVICES (Continued) | ||||||
Embarq Corp. | $ | 6,000 | $ | 6,466 | ||
Verizon Global Funding Corp. | 27,000 | 32,541 | ||||
Vodafone Group PLC (United Kingdom) | 4,000 | 4,349 | ||||
100,566 | ||||||
UTILITIES — 0.2% | ||||||
Constellation Energy Group | 2,000 | 2,102 | ||||
Dominion Resources, Inc., Series C | 17,000 | 18,518 | ||||
Exelon Generation Co. LLC | 9,000 | 9,738 | ||||
Pacific Gas & Electric Co. | 19,000 | 19,865 | ||||
6.25%, 3/01/39 | 20,000 | 21,553 | ||||
71,776 | ||||||
Total Corporate Bonds | 863,451 | |||||
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS — 1.6% | ||||||
FEDERAL HOME LOAN MORTGAGE CORP. — 0.0% (a) | ||||||
6.25%, 7/15/32 | 4,000 | 4,875 | ||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION — 0.1% | ||||||
5.00%, 4/15/15 | 43,000 | 48,482 | ||||
UNITED STATES TREASURY BONDS/NOTES — 1.5% | ||||||
4.75%, 5/15/14 | 13,300 | 14,849 | ||||
3.25%, 7/31/16 | 74,000 | 76,896 | ||||
8.125%, 8/15/19 | 90,400 | 125,592 | ||||
7.625%, 2/15/25 | 70,600 | 100,484 | ||||
6.25%, 5/15/30 | 28,600 | 37,234 | ||||
5.00%, 5/15/37 | 49,100 | 55,736 | ||||
4.375%, 2/15/38 | 46,000 | 47,258 | ||||
458,049 | ||||||
Total United States Government & Agencies Obligations | 511,406 | |||||
SOVEREIGN BONDS — 0.1% | ||||||
Province of Quebec Canada (Canada) | 7,000 | 9,256 | ||||
Republic of Brazil (Brazil) | 15,000 | 17,325 | ||||
United Mexican States (Mexico) | 10,000 | 10,775 | ||||
Total Sovereign Bonds | 37,356 | |||||
Value | |||||
Total Investments — 99.4% | |||||
(Amortized Cost $34,593,266) | $ | 31,288,724 | |||
Other assets less liabilities — 0.6% | 188,021 | ||||
Net Assets — 100.0% | $ | 31,476,745 | |||
ADR – American Depositary Receipt.
MTN – Medium Term Note.
REIT – Real Estate Investment Trust.
* Non-income producing security.
(a) Less than 0.1%.
(b) Variable Rate Coupon. Stated interest rate was in effect at May 31, 2010.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1 — | quoted prices in active markets for identical securities |
Level 2 — | other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
Level 3 — | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of May 31, 2010:
Investments | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 29,873,994 | $ | — | $ | — | $ | 29,873,994 | ||||
Rights | — | 2,517 | — | 2,517 | ||||||||
Corporate Bonds | — | 863,451 | — | 863,451 | ||||||||
United States Government & Agencies Obligations | — | 511,406 | — | 511,406 | ||||||||
Sovereign Bonds | — | 37,356 | — | 37,356 | ||||||||
Total Investments | $ | 29,873,994 | $ | 1,414,730 | $ | — | $ | 31,288,724 | ||||
See Notes to Financial Statements. | 40 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)
May 31, 2010
COUNTRY BREAKDOWN AS OF MAY 31, 2010
(Unaudited)
Value | % of Net Assets | |||||
United States | $ | 23,704,008 | 75.3 | % | ||
United Kingdom | 2,007,228 | 6.4 | ||||
Japan | 955,677 | 3.0 | ||||
Switzerland | 847,284 | 2.7 | ||||
France | 787,494 | 2.5 | ||||
Germany | 771,053 | 2.5 | ||||
Australia | 480,783 | 1.5 | ||||
Spain | 355,588 | 1.1 | ||||
Italy | 235,291 | 0.7 | ||||
Netherlands | 198,169 | 0.6 | ||||
Netherlands Antilles | 191,022 | 0.6 | ||||
Ireland | 143,101 | 0.4 | ||||
Sweden | 123,413 | 0.4 | ||||
Bermuda | 84,514 | 0.3 | ||||
Denmark | 66,913 | 0.2 | ||||
Finland | 66,242 | 0.2 | ||||
Norway | 48,999 | 0.2 | ||||
Belgium | 46,661 | 0.2 | ||||
Luxembourg | 39,324 | 0.1 | ||||
Cayman Islands | 34,113 | 0.1 | ||||
Hong Kong | 25,058 | 0.1 | ||||
Marshall Islands | 19,970 | 0.1 | ||||
Brazil | 17,325 | 0.1 | ||||
Greece | 17,275 | 0.1 | ||||
Canada | 11,444 | 0.0 | ||||
Mexico | 10,775 | 0.0 | ||||
Total Investments | 31,288,724 | 99.4 | ||||
Other assets less liabilities | 188,021 | 0.6 | ||||
Net Assets | $ | 31,476,745 | 100 | % | ||
See Notes to Financial Statements. | 41 |
TDX Independence Funds, Inc.
TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND
May 31, 2010
Number of Shares | Value | ||||
COMMON STOCKS — 20.3% | |||||
CONSUMER DISCRETIONARY — 2.1% | |||||
Amazon.com, Inc.* | 160 | $ | 20,074 | ||
AutoZone, Inc.* | 26 | 4,963 | |||
Bally Technologies, Inc.* | 172 | 7,310 | |||
Brown Shoe Co., Inc. | 573 | 9,558 | |||
Buckle (The), Inc. | 164 | 5,830 | |||
Carter’s, Inc.* | 203 | 6,204 | |||
Cinemark Holdings, Inc. | 375 | 5,996 | |||
Collective Brands, Inc.* | 160 | 3,581 | |||
Columbia Sportswear Co. | 80 | 4,094 | |||
Comcast Corp., Class A | 1,162 | 21,021 | |||
Corinthian Colleges, Inc.* | 341 | 4,566 | |||
Daimler AG (Germany)* | 174 | 8,648 | |||
DIRECTV, Class A* | 385 | 14,511 | |||
Dress Barn (The), Inc.* | 140 | 3,835 | |||
Eastman Kodak Co.* | 719 | 4,055 | |||
Ethan Allen Interiors, Inc. | 279 | 5,636 | |||
Ford Motor Co.* | 1,097 | 12,868 | |||
Fossil, Inc.* | 182 | 6,825 | |||
Hennes & Mauritz AB, B Shares (Sweden) | 103 | 5,809 | |||
Home Depot (The), Inc. | 680 | 23,025 | |||
HONDA MOTOR Co. Ltd. (Japan) | 345 | 10,539 | |||
J. Crew Group, Inc.* | 169 | 7,713 | |||
Jack in the Box, Inc.* | 201 | 4,510 | |||
Knology, Inc.* | 522 | 6,243 | |||
Las Vegas Sands Corp.* | 240 | 5,635 | |||
Life Time Fitness, Inc.* | 120 | 4,453 | |||
LVMH Moet Hennessy Louis Vuitton SA (France) | 61 | 6,463 | |||
Marcus (The) Corp. | 374 | 4,095 | |||
McDonald’s Corp. | 429 | 28,688 | |||
News Corp., Class A | 784 | 10,349 | |||
Nissan Motor Co. Ltd. (Japan)* | 799 | 5,816 | |||
Omnicom Group, Inc. | 134 | 5,085 | |||
Panasonic Corp. (Japan) | 480 | 6,176 | |||
Rent-A-Center, Inc.* | 229 | 5,546 | |||
Sony Corp. (Japan) | 226 | 7,053 | |||
Talbots (The), Inc.* | 806 | 12,122 | |||
Target Corp. | 320 | 17,450 | |||
Time Warner, Inc. | 469 | 14,534 | |||
Toyota Motor Corp. (Japan) | 640 | 23,224 | |||
Tractor Supply Co. | 110 | 7,454 | |||
Tupperware Brands Corp. | 154 | 6,543 | |||
Vail Resorts, Inc.* | 80 | 3,329 | |||
Vivendi (France) | 268 | 5,863 | |||
Volcom, Inc.* | 349 | 6,966 | |||
Volkswagen AG (Germany) | 15 | 1,279 | |||
Walt Disney (The) Co. | 694 | 23,193 | |||
Warnaco Group (The), Inc.* | 111 | 4,727 | |||
423,457 | |||||
CONSUMER STAPLES — 2.0% | |||||
Anheuser-Busch Inbev NV (Belgium) | 149 | 7,190 | |||
B&G Foods, Inc., Class A | 528 | 5,597 | |||
Boston Beer (The) Co., Inc., Class A* | 141 | 9,313 | |||
British American Tobacco PLC | 373 | 11,014 |
Number of Shares | Value | ||||
CONSUMER STAPLES (Continued) | |||||
Campbell Soup Co. | 162 | $ | 5,801 | ||
Carrefour SA (France) | 136 | 5,670 | |||
Casey’s General Stores, Inc. | 158 | 5,825 | |||
Coca-Cola (The) Co. | 829 | 42,611 | |||
CVS Caremark Corp. | 577 | 19,982 | |||
Diageo PLC (United Kingdom) | 504 | 7,688 | |||
Fresh Del Monte Produce, Inc. | 160 | 3,200 | |||
Imperial Tobacco Group PLC | 220 | 5,726 | |||
Kraft Foods, Inc., Class A | 542 | 15,501 | |||
Lancaster Colony Corp. | 86 | 4,701 | |||
Nestle SA (Switzerland) | 707 | 32,068 | |||
Philip Morris International, Inc. | 751 | 33,134 | |||
Prestige Brands Holdings, Inc.* | 691 | 5,335 | |||
Procter & Gamble (The) Co. | 1,027 | 62,739 | |||
Reckitt Benckiser Group PLC | 100 | 4,692 | |||
Ruddick Corp. | 171 | 5,646 | |||
Safeway, Inc. | 207 | 4,583 | |||
Tesco PLC (United Kingdom) | 1,663 | 9,897 | |||
Tootsie Roll Industries, Inc. | 190 | 4,758 | |||
Unilever NV (Netherlands) | 329 | 9,055 | |||
Unilever PLC (United Kingdom) | 263 | 7,103 | |||
Wal-Mart Stores, Inc. | 1,534 | 77,560 | |||
406,389 | |||||
ENERGY — 2.2% | |||||
Arena Resources, Inc.* | 108 | 3,551 | |||
ATP Oil & Gas Corp.* | 512 | 5,448 | |||
Berry Petroleum Co., Class A | 100 | 3,074 | |||
BG Group PLC (United Kingdom) | 747 | 11,459 | |||
Bill Barrett Corp.* | 163 | 5,307 | |||
BP PLC (United Kingdom) | 3,934 | 28,145 | |||
Chevron Corp. | 795 | 58,727 | |||
ConocoPhillips | 568 | 29,456 | |||
Dril-Quip, Inc.* | 100 | 4,871 | |||
ENI S.p.A (Italy) | 552 | 10,449 | |||
Exxon Mobil Corp. | 1,943 | 117,475 | |||
General Maritime Corp. (Marshall Islands) | 512 | 3,538 | |||
ION Geophysical Corp.* | 1,510 | 8,199 | |||
Matrix Service Co.* | 415 | 4,084 | |||
Murphy Oil Corp. | 97 | 5,178 | |||
Nordic American Tanker Shipping Ltd. (Bermuda) | 148 | 4,203 | |||
Occidental Petroleum Corp. | 324 | 26,733 | |||
Peabody Energy Corp. | 91 | 3,545 | |||
Repsol YPF SA (Spain) | 169 | 3,501 | |||
Royal Dutch Shell PLC, Class A | 794 | 20,928 | |||
Royal Dutch Shell PLC, Class B | 612 | 15,498 | |||
Schlumberger Ltd. (Netherlands Antilles) | 444 | 24,931 | |||
Southwestern Energy Co.* | 279 | 10,493 | |||
StatoilHydro ASA (Norway) | 326 | 6,568 | |||
Total SA (France) | 467 | 21,961 |
See Notes to Financial Statements. | 42 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number of Shares | Value | ||||
ENERGY (Continued) | |||||
Woodside Petroleum Ltd. (Australia) | 118 | $ | 4,347 | ||
World Fuel Services Corp. | 211 | 5,492 | |||
447,161 | |||||
FINANCIALS — 3.7% | |||||
Aflac, Inc. | 408 | 18,074 | |||
Alexander’s, Inc. REIT | 18 | 5,839 | |||
Allianz SE (Germany) | 98 | 9,852 | |||
American Campus Communities, Inc. REIT | 186 | 4,979 | |||
Annaly Capital Management, Inc. REIT | 512 | 8,684 | |||
Assicurazioni Generali S.p.A (Italy) | 246 | 4,514 | |||
Australia & New Zealand Banking Group Ltd. (Australia) | 381 | 7,273 | |||
AXA (France) | 321 | 5,350 | |||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 657 | 6,988 | |||
Banco Santander SA (Spain) | 1,409 | 14,595 | |||
Bank of America Corp. | 3,022 | 47,566 | |||
Bank of New York Mellon (The) Corp. | 1,018 | 27,690 | |||
Barclays PLC (United Kingdom) | 1,633 | 7,204 | |||
BB&T Corp. | 543 | 16,420 | |||
BNP Paribas (France) | 171 | 9,904 | |||
Boston Private Financial Holdings, Inc. | 745 | 5,453 | |||
Capital One Financial Corp. | 345 | 14,249 | |||
Charles Schwab (The) Corp. | 968 | 15,817 | |||
Commonwealth Bank of Australia (Australia) | 266 | 11,753 | |||
Credit Suisse Group AG (Switzerland) | 186 | 7,256 | |||
Delphi Financial Group, Inc., Class A | 160 | 4,155 | |||
Deutsche Bank AG (Germany) | 114 | 6,815 | |||
Dime Community Bancshares, Inc. | 422 | 5,385 | |||
Encore Capital Group, Inc.* | 302 | 6,312 | |||
Equity Lifestyle Properties, Inc. REIT | 100 | 5,180 | |||
Equity One, Inc. REIT | 307 | 5,271 | |||
FirstMerit Corp. | 234 | 4,362 | |||
Franklin Resources, Inc. | 201 | 19,716 | |||
GAMCO Investors, Inc., Class A | 94 | 3,725 | |||
Goldman Sachs Group (The), Inc. | 185 | 26,688 | |||
Highwoods Properties, Inc. REIT | 193 | 5,686 | |||
HSBC Holdings PLC (United Kingdom) | 3,628 | 32,931 | |||
Intesa Sanpaolo S.p.A (Italy) | 1,802 | 4,772 | |||
JPMorgan Chase & Co. | 1,409 | 55,768 | |||
Kansas City Life Insurance Co. | 153 | 4,633 | |||
Knight Capital Group, Inc., Class A* | 283 | 4,135 | |||
MarketAxess Holdings, Inc. | 374 | 5,520 | |||
MFA Financial, Inc. REIT | 775 | 5,681 | |||
Mid-America Apartment Communities, Inc. REIT | 80 | 4,370 | |||
Mitsubishi UFJ Financial Group, Inc. (Japan) | 2,584 | 12,616 | |||
Montpelier Re Holdings Ltd. (Bermuda) | 269 | 4,199 | |||
Moody’s Corp. | 202 | 4,141 | |||
Morgan Stanley | 531 | 14,395 | |||
Muenchener Rueckversicherungs-Gesellschaft AG (Germany) | 44 | 5,608 | |||
National Australia Bank Ltd. (Australia) | 365 | 7,667 | |||
National Bank of Greece SA ADR (Greece)* | 967 | 2,369 | |||
National Financial Partners Corp.* | 592 | 8,252 | |||
National Retail Properties, Inc. REIT | 281 | 6,176 | |||
NewAlliance Bancshares, Inc. | 319 | 3,755 |
Number of Shares | Value | ||||
FINANCIALS (Continued) | |||||
Nordea Bank AB (Sweden) | 629 | $ | 5,175 | ||
Northern Trust Corp. | 193 | 9,806 | |||
Omega Healthcare Investors, Inc. REIT | 293 | 5,819 | |||
Platinum Underwriters Holdings Ltd. (Bermuda) | 150 | 5,522 | |||
Potlatch Corp. REIT | 120 | 4,181 | |||
ProAssurance Corp.* | 102 | 6,004 | |||
Progressive (The) Corp. | 628 | 12,303 | |||
Prosperity Bancshares, Inc. | 135 | 4,865 | |||
Riskmetrics Group, Inc.* | 200 | 4,326 | |||
SCBT Financial Corp. | 168 | 6,013 | |||
Simon Property Group, Inc. REIT | 209 | 17,771 | |||
Societe Generale (France) | 100 | 4,384 | |||
Standard Chartered PLC (United Kingdom) | 402 | 9,515 | |||
Stifel Financial Corp.* | 83 | 4,206 | |||
Sumitomo Mitsui Financial Group, Inc. (Japan) | 176 | 5,280 | |||
Tanger Factory Outlet Centers, Inc. REIT | 40 | 1,665 | |||
UBS AG (Switzerland)* | 697 | 9,291 | |||
UMB Financial Corp. | 114 | 4,440 | |||
UniCredito Italiano S.p.A (Italy) | 3,001 | 6,339 | |||
Washington Real Estate Investment Trust REIT | 205 | 6,023 | |||
Wells Fargo & Co. | 1,734 | 49,748 | |||
Westamerica Bancorp. | 87 | 4,843 | |||
Westpac Banking Corp. (Australia) | 526 | 10,434 | |||
Westwood Holdings Group, Inc. | 101 | 3,752 | |||
Zurich Financial Services AG (Switzerland) | 31 | 6,340 | |||
737,788 | |||||
HEALTH CARE — 1.9% | |||||
Abbott Laboratories | 628 | 29,868 | |||
Amedisys, Inc.* | 80 | 3,978 | |||
AMERIGROUP Corp.* | 181 | 6,502 | |||
AstraZeneca PLC (United Kingdom) | 276 | 11,579 | |||
Bayer AG (Germany) | 180 | 10,121 | |||
Boston Scientific Corp.* | 699 | 4,229 | |||
Bruker Corp.* | 593 | 7,552 | |||
Catalyst Health Solutions, Inc.* | 160 | 6,126 | |||
Emergency Medical Services Corp., Class A* | 130 | 6,964 | |||
eResearch Technology, Inc.* | 743 | 5,899 | |||
Forest Laboratories, Inc.* | 160 | 4,141 | |||
Genzyme Corp.* | 123 | 5,984 | |||
GlaxoSmithKline PLC (United Kingdom) | 989 | 16,544 | |||
Haemonetics Corp.* | 94 | 5,070 | |||
Isis Pharmaceuticals, Inc.* | 340 | 3,128 | |||
Johnson & Johnson | 1,015 | 59,174 | |||
Magellan Health Services, Inc.* | 38 | 1,546 | |||
Medicis Pharmaceutical Corp., Class A | 168 | 3,896 | |||
Novartis AG (Switzerland) | 484 | 21,996 | |||
Novo Nordisk A/S, B Shares (Denmark) | 105 | 8,136 | |||
NuVasive, Inc.* | 142 | 5,576 | |||
Onyx Pharmaceuticals, Inc.* | 194 | 4,324 | |||
Owens & Minor, Inc. | 220 | 6,571 | |||
Pfizer, Inc. | 2,616 | 39,842 | |||
Psychiatric Solutions, Inc.* | 199 | 6,444 | |||
Quality Systems, Inc. | 102 | 6,022 | |||
Regeneron Pharmaceuticals, Inc.* | 277 | 7,914 | |||
Roche Holding AG (Switzerland) | 145 | 19,956 |
See Notes to Financial Statements. | 43 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number of Shares | Value | ||||
HEALTH CARE (Continued) | |||||
Sanofi-Aventis SA (France) | 224 | $ | 13,539 | ||
SIGA Technologies, Inc.* | 552 | 3,836 | |||
Sirona Dental Systems, Inc.* | 160 | 5,661 | |||
STERIS Corp. | 109 | 3,469 | |||
Takeda Pharmaceutical Co. Ltd. (Japan) | 213 | 8,783 | |||
Thoratec Corp.* | 203 | 8,906 | |||
UnitedHealth Group, Inc. | 452 | 13,140 | |||
WellCare Health Plans, Inc.* | 160 | 4,362 | |||
Zimmer Holdings, Inc.* | 80 | 4,474 | |||
385,252 | |||||
INDUSTRIALS — 2.3% | |||||
A.O. Smith Corp. | 50 | 2,331 | |||
ABB Ltd. (Switzerland)* | 480 | 8,240 | |||
BAE Systems PLC (United Kingdom) | 815 | 3,803 | |||
Baldor Electric Co. | �� | 161 | 5,785 | ||
C.H. Robinson Worldwide, Inc. | 147 | 8,542 | |||
Caterpillar, Inc. | 217 | 13,185 | |||
CLARCOR, Inc. | 165 | 5,983 | |||
CRA International, Inc.* | 167 | 3,711 | |||
Curtiss-Wright Corp. | 152 | 5,034 | |||
Dollar Thrifty Automotive Group, Inc.* | 245 | 11,442 | |||
East Japan Railway Co. (Japan) | 160 | 10,205 | |||
Eaton Corp. | 80 | 5,596 | |||
EMCOR Group, Inc.* | 229 | 5,718 | |||
Emerson Electric Co. | 303 | 14,071 | |||
Fanuc Ltd. (Japan) | 80 | 8,489 | |||
First Solar, Inc.* | 42 | 4,719 | |||
General Dynamics Corp. | 166 | 11,271 | |||
General Electric Co. | 3,960 | 64,745 | |||
GrafTech International Ltd.* | 400 | 6,644 | |||
Granite Construction, Inc. | 132 | 3,914 | |||
Hawaiian Holdings, Inc.* | 628 | 4,471 | |||
Heartland Express, Inc. | 281 | 4,368 | |||
Heico Corp. | 100 | 3,989 | |||
Heidrick & Struggles International, Inc. | 250 | 5,788 | |||
JetBlue Airways Corp.* | 848 | 5,258 | |||
Knight Transportation, Inc. | 262 | 5,209 | |||
Koninklijke Philips Electronics NV (Netherlands) | 251 | 7,557 | |||
L.B. Foster Co., Class A* | 132 | 3,705 | |||
Lockheed Martin Corp. | 153 | 12,228 | |||
Mitsubishi Corp. (Japan) | 333 | 7,594 | |||
Mitsui & Co. Ltd. (Japan) | 480 | 6,973 | |||
PACCAR, Inc. | 172 | 7,052 | |||
Regal-Beloit Corp. | 103 | 6,210 | |||
Republic Services, Inc. | 172 | 5,009 | |||
Rollins, Inc. | 294 | 6,250 | |||
Schneider Electric SA (France) | 50 | 5,025 | |||
Seaboard Corp. | 4 | 5,704 | |||
Siemens AG (Germany) | 190 | 17,209 | |||
Tetra Tech, Inc.* | 187 | 4,238 | |||
Towers Watson & Co., Class A | 145 | 6,670 | |||
Union Pacific Corp. | 402 | 28,715 | |||
United Parcel Service, Inc., Class B | 811 | 50,898 | |||
United Technologies Corp. | 331 | 22,303 | |||
Vicor Corp.* | 415 | 5,063 |
Number of Shares | Value | ||||
INDUSTRIALS (Continued) | |||||
Vinci SA (France) | 95 | $ | 4,310 | ||
Waste Management, Inc. | 205 | 6,665 | |||
Watsco, Inc. | 100 | 5,855 | |||
457,744 | |||||
INFORMATION TECHNOLOGY — 3.7% | |||||
Accenture PLC, Class A (Ireland) | 513 | 19,248 | |||
Anixter International, Inc.* | 123 | 5,843 | |||
Apple, Inc.* | 337 | 86,662 | |||
Arris Group, Inc.* | 396 | 4,344 | |||
Benchmark Electronics, Inc.* | 100 | 1,848 | |||
CACI International, Inc., Class A* | 100 | 4,624 | |||
CANON, Inc. (Japan) | 213 | 8,760 | |||
Cass Information Systems, Inc. | 121 | 3,838 | |||
Cisco Systems, Inc.* | 2,045 | 47,362 | |||
Concur Technologies, Inc.* | 160 | 6,768 | |||
Corning, Inc. | 647 | 11,277 | |||
Daktronics, Inc. | 588 | 4,951 | |||
Digital River, Inc.* | 122 | 3,360 | |||
Electro Scientific Industries, Inc.* | 348 | 4,472 | |||
EMC Corp.* | 797 | 14,840 | |||
Entegris, Inc.* | 1,088 | 5,875 | |||
Exar Corp.* | 558 | 3,906 | |||
Fair Isaac Corp. | 160 | 3,712 | |||
Gartner, Inc.* | 305 | 7,549 | |||
Google, Inc., Class A* | 118 | 57,251 | |||
Hewlett-Packard Co. | 901 | 41,455 | |||
Informatica Corp.* | 273 | 7,043 | |||
International Business Machines Corp. | 500 | 62,629 | |||
IXYS Corp.* | 460 | 4,287 | |||
Jack Henry & Associates, Inc. | 269 | 6,467 | |||
ManTech International Corp., Class A* | 122 | 5,640 | |||
MasterCard, Inc., Class A | 97 | 19,572 | |||
Microsemi Corp.* | 262 | 4,056 | |||
Microsoft Corp. | 3,338 | 86,119 | |||
ModusLink Global Solutions, Inc.* | 584 | 4,462 | |||
Nintendo Co. Ltd. (Japan) | 22 | 6,474 | |||
Nokia Oyj (Finland) | 755 | 7,728 | |||
Oracle Corp. | 1,963 | 44,305 | |||
Palm, Inc.* | 475 | 2,708 | |||
Parametric Technology Corp.* | 393 | 6,477 | |||
Paychex, Inc. | 159 | 4,538 | |||
Polycom, Inc.* | 157 | 4,715 | |||
Quest Software, Inc.* | 309 | 5,981 | |||
Rackspace Hosting, Inc.* | 333 | 5,861 | |||
Riverbed Technology, Inc.* | 215 | 5,747 | |||
SAP AG (Germany) | 201 | 8,598 | |||
Skyworks Solutions, Inc.* | 460 | 7,328 | |||
Solera Holdings, Inc. | 220 | 7,630 | |||
Telefonaktiebolaget LM Ericsson, B Shares (Sweden) | 585 | 5,909 | |||
TIBCO Software, Inc.* | 563 | 6,424 | |||
Visa, Inc., Class A | 696 | 50,432 | |||
VistaPrint NV (Netherlands)* | 130 | 6,070 | |||
Yahoo!, Inc.* | 601 | 9,219 | |||
744,364 | |||||
See Notes to Financial Statements. | 44 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Number of Shares | Value | ||||
MATERIALS — 0.9% | |||||
Air Liquide SA (France) | 56 | $ | 5,491 | ||
American Vanguard Corp. | 444 | 3,539 | |||
Anglo American PLC (United Kingdom)* | 277 | 10,657 | |||
ArcelorMittal (Luxembourg) | 186 | 5,670 | |||
BASF AG (Germany) | 190 | 10,040 | |||
BHP Billiton Ltd. (Australia) | 705 | 23,290 | |||
BHP Billiton PLC (United Kingdom) | 471 | 13,028 | |||
Dow Chemical (The) Co. | 468 | 12,593 | |||
E.I. du Pont de Nemours & Co. | 320 | 11,574 | |||
NewMarket Corp. | 40 | 4,118 | |||
Newmont Mining Corp. | 216 | 11,625 | |||
Praxair, Inc. | 134 | 10,398 | |||
Rio Tinto PLC (United Kingdom) | 278 | 12,818 | |||
Rock-Tenn Co., Class A | 125 | 6,433 | |||
Rockwood Holdings, Inc.* | 240 | 6,226 | |||
Sensient Technologies Corp. | 169 | 4,680 | |||
Shin-Etsu Chemical Co. Ltd. (Japan) | 80 | 4,077 | |||
Silgan Holdings, Inc. | 252 | 7,190 | |||
Syngenta AG (Switzerland) | 23 | 5,105 | |||
Westlake Chemical Corp. | 216 | 4,581 | |||
Weyerhaeuser Co. | 100 | 4,258 | |||
177,391 | |||||
TELECOMMUNICATION SERVICES — 0.8% | |||||
AT&T, Inc. | 2,397 | 58,248 | |||
Deutsche Telekom AG (Germany) | 600 | 6,773 | |||
France Telecom SA (France) | 399 | 7,668 | |||
Koninklijke (Royal) KPN NV (Netherlands) | 360 | 4,721 | |||
NTT DoCoMo, Inc. (Japan) | 3 | 4,503 | |||
Telefonica SA (Spain) | 800 | 15,488 | |||
Verizon Communications, Inc. | 1,115 | 30,685 | |||
Vodafone Group PLC (United Kingdom) | 10,793 | 21,558 | |||
149,644 | |||||
UTILITIES — 0.7% | |||||
Consolidated Edison, Inc. | 226 | 9,625 | |||
E.ON AG (Germany) | 412 | 12,617 | |||
Enel S.p.A (Italy) | 1,089 | 5,036 | |||
EQT Corp. | 145 | 5,683 | |||
Exelon Corp. | 549 | 21,191 | |||
FPL Group, Inc.* | 328 | 16,377 | |||
GDF Suez (France) | 247 | 7,793 | |||
Iberdrola SA (Spain) | 819 | 5,514 | |||
New Jersey Resources Corp. | 123 | 4,360 | |||
Nicor, Inc. | 148 | 5,981 | |||
Piedmont Natural Gas Co., Inc. | 236 | 5,997 | |||
RWE AG (Germany) | 99 | 7,174 | |||
Southern Co. | 610 | 19,947 | |||
Tokyo Electric Power (The) Co., Inc. (Japan) | 240 | 5,949 | |||
WGL Holdings, Inc. | 161 | 5,450 | |||
138,694 | |||||
Total Common Stocks | 4,067,884 | ||||
RIGHTS — 0.0% (a) | |||||
MATERIALS — 0.0% (a) | |||||
Air Liquide SA, expiring 6/11/10 (France)* | 56 | 366 | |||
Principal Amount | Value | |||||
CORPORATE BONDS — 7.0% | ||||||
CONSUMER DISCRETIONARY — 0.1% | ||||||
AT&T Broadband Corp. | $ | 14,000 | $ | 16,231 | ||
CONSUMER STAPLES — 0.4% | ||||||
Diageo Finance BV (Netherlands) | 23,000 | 25,507 | ||||
Kroger (The) Co. | 19,000 | 20,540 | ||||
Wal-Mart Stores, Inc. | 39,000 | 42,120 | ||||
88,167 | ||||||
ENERGY — 0.5% | ||||||
Apache Corp. | 27,000 | 29,445 | ||||
Kinder Morgan Energy Partners LP | 27,000 | 27,979 | ||||
Spectra Energy Capital LLC | 39,000 | 42,411 | ||||
99,835 | ||||||
FINANCIALS — 5.3% | ||||||
American Express Co. | 31,000 | 33,046 | ||||
Bank of America Corp. | 63,000 | 65,678 | ||||
Boeing Capital Corp. Ltd. | 39,000 | 43,068 | ||||
Boston Properties LP | 39,000 | 42,595 | ||||
Citigroup, Inc. | 79,000 | 82,739 | ||||
European Investment Bank (Supranational) | 111,000 | 121,716 | ||||
General Electric Capital Corp., Series A MTN | 19,000 | 20,182 | ||||
Genworth Financial, Inc. | 39,000 | 38,696 | ||||
Goldman Sachs Group, LP | 79,000 | 80,380 | ||||
HSBC Finance Corp. | 103,000 | 111,111 | ||||
John Deere Capital Corp. | 59,000 | 64,918 | ||||
JPMorgan Chase Bank NA | 70,000 | 73,451 | ||||
JPMorgan Chase & Co. | 19,000 | 20,398 | ||||
Merrill Lynch & Co., Inc., Series C MTN | 32,000 | 31,591 | ||||
Morgan Stanley | 86,000 | 88,749 | ||||
National Rural Utilities Cooperative Finance Corp., Series C MTN | 23,000 | 25,233 | ||||
Prudential Financial, Inc. | 9,000 | 9,550 |
See Notes to Financial Statements. | 45 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)
May 31, 2010
Principal Amount | Value | |||||
FINANCIALS (Continued) | ||||||
Wachovia Corp. | $ | 59,000 | $ | 62,666 | ||
Wells Fargo & Co. | 51,000 | 52,261 | ||||
1,068,028 | ||||||
INFORMATION TECHNOLOGY — 0.1% | ||||||
Oracle Corp. | 23,000 | 25,701 | ||||
TELECOMMUNICATION SERVICES — 0.3% | ||||||
Cellco Partnership/Verizon Wireless Capital LLC | 27,000 | 29,872 | ||||
AT&T Wireless Services, Inc. | 19,000 | 19,945 | ||||
49,817 | ||||||
UTILITIES — 0.3% | ||||||
Exelon Generation Co. LLC | 19,000 | 20,559 | ||||
Progress Energy, Inc. | 43,000 | 44,895 | ||||
65,454 | ||||||
Total Corporate Bonds | 1,413,233 | |||||
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS — 71.5% | ||||||
FEDERAL HOME LOAN MORTGAGE CORP. — 3.4% | ||||||
3.25%, 2/25/11 | 400,000 | 407,700 | ||||
4.875%, 11/18/11 | 30,000 | 31,791 | ||||
4.50%, 1/15/13 | 219,000 | 237,003 | ||||
676,494 | ||||||
UNITED STATES TREASURY BONDS/NOTES — 68.1% | ||||||
3.875%, 7/15/10 | 1,491,900 | 1,498,836 | ||||
4.50%, 11/15/10 | 819,300 | 835,238 | ||||
5.00%, 2/15/11 | 1,043,100 | 1,077,531 | ||||
4.875%, 4/30/11 | 920,700 | 958,175 | ||||
4.875%, 5/31/11 | 2,358,100 | 2,462,372 | ||||
5.125%, 6/30/11 | 1,674,600 | 1,758,985 | ||||
4.625%, 8/31/11 | 99,900 | 104,997 | ||||
4.50%, 11/30/11 | 735,000 | 777,779 | ||||
4.625%, 2/29/12 | 685,000 | 732,308 | ||||
1.375%, 5/15/12 | 191,800 | 194,183 | ||||
4.75%, 5/31/12 | 474,800 | 512,413 | ||||
4.25%, 9/30/12 | 1,050,000 | 1,132,195 | ||||
3.375%, 7/31/13 | 170,200 | 180,917 | ||||
4.75%, 5/15/14 | 1,270,400 | 1,418,383 | ||||
4.375%, 2/15/38 | 31,900 | 32,772 | ||||
13,677,084 | ||||||
Total United States Government & Agencies Obligations | 14,353,578 | |||||
Principal Amount | Value | |||||
SOVEREIGN BONDS — 0.2% | ||||||
Italy Government International Bond (Italy) | $ | 35,000 | $ | 36,085 | ||
Total Investments — 99.0% | ||||||
(Amortized Cost $19,698,487) | $ | 19,871,146 | ||||
Other assets less liabilities — 1.0% | 202,871 | |||||
Net Assets — 100.0% | $ | 20,074,017 | ||||
ADR – American Depositary Receipt.
MTN – Medium Term Note.
REIT – Real Estate Investment Trust.
* Non-income producing security.
(a) Less than 0.1%.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1 — | quoted prices in active markets for identical securities |
Level 2 — | other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
Level 3 — | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of May 31, 2010:
Investments | Level 1 | Level 2 | Level 3 | Total | ||||||||
Common Stocks | $ | 4,067,884 | $ | — | $ | — | $ | 4,067,884 | ||||
Rights | — | 366 | — | 366 | ||||||||
Corporate Bonds | — | 1,413,233 | — | 1,413,233 | ||||||||
United States Government & Agencies Obligations | — | 14,353,578 | — | 14,353,578 | ||||||||
Sovereign Bonds | — | 36,085 | — | 36,085 | ||||||||
Total Investments | $ | 4,067,884 | $ | 15,803,262 | $ | — | $ | 19,871,146 | ||||
See Notes to Financial Statements. | 46 |
TDX Independence Funds, Inc.
SCHEDULE OF INVESTMENTS (CONTINUED)
TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)
May 31, 2010
COUNTRY BREAKDOWN AS OF MAY 31, 2010
(Unaudited)
Value | % of Net Assets | |||||
United States | $ | 18,676,010 | 93.0 | % | ||
United Kingdom | 261,787 | 1.3 | ||||
Japan | 142,510 | 0.7 | ||||
Supranational | 121,716 | 0.6 | ||||
Switzerland | 110,252 | 0.6 | ||||
Germany | 104,733 | 0.5 | ||||
France | 103,788 | 0.5 | ||||
Italy | 67,195 | 0.4 | ||||
Australia | 64,763 | 0.3 | ||||
Netherlands | 52,910 | 0.3 | ||||
Spain | 46,087 | 0.2 | ||||
Netherlands Antilles | 24,931 | 0.1 | ||||
Ireland | 19,248 | 0.1 | ||||
Sweden | 16,893 | 0.1 | ||||
Bermuda | 13,924 | 0.1 | ||||
Denmark | 8,136 | 0.1 | ||||
Finland | 7,728 | 0.1 | ||||
Belgium | 7,190 | 0.0 | ||||
Norway | 6,568 | 0.0 | ||||
Luxembourg | 5,670 | 0.0 | ||||
Marshall Islands | 3,538 | 0.0 | ||||
Cayman Islands | 3,200 | 0.0 | ||||
Greece | 2,369 | 0.0 | ||||
Total Investments | 19,871,146 | 99.0 | ||||
Other assets less liabilities | 202,871 | 1.0 | ||||
Net Assets | $ | 20,074,017 | 100 | % | ||
See Notes to Financial Statements. | 47 |
TDX Independence Funds, Inc.
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 2010
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND | ||||
ASSETS: | ||||
Investments at fair value | $ | 18,407,631 | ||
Cash | 6,603 | |||
Foreign currency at value | 11,004 | |||
Receivables: | ||||
Interest | 126,621 | |||
From investment advisor | 95,731 | |||
Dividends | 11,643 | |||
Foreign tax reclaim | 2,237 | |||
Prepaid expenses | 29,137 | |||
Total Assets | $ | 18,690,607 | ||
LIABILITIES: | ||||
Payables: | ||||
Investment securities purchased | $ | — | ||
Investment advisory fees | 3,148 | |||
Investment sub-advisory fees | 17,316 | |||
Accrued expenses and other liabilities | 59,701 | |||
Total Liabilities | 80,165 | |||
NET ASSETS | $ | 18,610,442 | ||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 20,410,073 | ||
Undistributed net investment income | 184,718 | |||
Accumulated net realized loss on investments and foreign currency transactions | (2,033,664 | ) | ||
Net unrealized appreciation (depreciation) on investments and foreign currency translations | 49,315 | |||
Net Assets | $ | 18,610,442 | ||
Number of Common Shares outstanding of $0.0001 par value (12.5 billion Common Shares have been authorized) | 800,800 | |||
NET ASSETS VALUE, per Common Share (par value $0.0001 per Common Share) | $ | 23.24 | ||
Investments at cost | $ | 18,357,705 | ||
Foreign currency at cost | $ | 11,361 | ||
See Notes to Financial Statements. | 48 |
TDX Independence Funds, Inc.
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND | TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND | TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND | TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND | |||||||||||
$ | 40,984,365 | $ | 32,459,825 | $ | 31,288,724 | $ | 19,871,146 | |||||||
37,148 | 19,877 | 20,063 | 24,877 | |||||||||||
35,529 | 35,757 | 29,349 | 12,999 | |||||||||||
196,509 | 65,389 | 20,014 | 213,413 | |||||||||||
175,612 | 151,228 | 142,115 | 98,086 | |||||||||||
77,426 | 84,837 | 91,805 | 12,299 | |||||||||||
16,056 | 19,382 | 20,269 | 1,091 | |||||||||||
29,137 | 29,137 | 29,137 | 29,137 | |||||||||||
$ | 41,551,782 | $ | 32,865,432 | $ | 31,641,476 | $ | 20,263,048 | |||||||
$ | — | $ | — | $ | 44,823 | $ | 103,692 | |||||||
7,217 | 5,879 | 5,631 | 3,401 | |||||||||||
39,693 | 32,334 | 30,968 | 18,704 | |||||||||||
100,116 | 87,497 | 83,309 | 63,234 | |||||||||||
147,026 | 125,710 | 164,731 | 189,031 | |||||||||||
$ | 41,404,756 | $ | 32,739,722 | $ | 31,476,745 | $ | 20,074,017 | |||||||
$ | 48,836,074 | $ | 42,659,711 | $ | 43,116,792 | $ | 20,550,461 | |||||||
458,759 | 342,241 | 288,410 | 102,180 | |||||||||||
(6,674,593 | ) | (7,906,789 | ) | (8,621,627 | ) | (750,776 | ) | |||||||
(1,215,484 | ) | (2,355,441 | ) | (3,306,830 | ) | 172,152 | ||||||||
$ | 41,404,756 | $ | 32,739,722 | $ | 31,476,745 | $ | 20,074,017 | |||||||
| 2,000,800 | | 1,800,800 | 1,800,800 | 800,800 | |||||||||
$ | 20.69 | $ | 18.18 | $ | 17.48 | $ | 25.07 | |||||||
$ | 42,197,871 | $ | 34,812,645 | $ | 34,593,266 | $ | 19,698,487 | |||||||
$ | 35,779 | $ | 36,393 | $ | 29,554 | $ | 13,370 | |||||||
See Notes to Financial Statements. | 49 |
TDX Independence Funds, Inc.
For the Year Ended May 31, 2010
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND | ||||
INVESTMENT INCOME: | ||||
Interest | $ | 532,320 | ||
Dividends* | 104,059 | |||
Total investment income | 636,379 | |||
EXPENSES: | ||||
Professional fees | 188,713 | |||
Sub-advisory fees | 117,933 | |||
Compliance | 29,537 | |||
Printing | 27,423 | |||
Directors | 23,645 | |||
Advisory fees | 21,442 | |||
Listing fees | 17,241 | |||
Other expenses | 25,137 | |||
Total Expenses | 451,071 | |||
Less fees waived: | ||||
Sub-advisory fees | (117,933 | ) | ||
Other fees and expenses assumed by the Sub-Advisor | (193,163 | ) | ||
Net Expenses | 139,975 | |||
NET INVESTMENT INCOME | 496,404 | |||
REALIZED AND UNREALIZED GAIN (LOSS): | ||||
Net realized gain (loss) from: | ||||
Investment transactions | (632,738 | ) | ||
In-kind redemptions | 306,123 | |||
Foreign currency related transactions | (337 | ) | ||
Net realized gain (loss) | (326,952 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 1,462,152 | |||
Foreign currency translations | (992 | ) | ||
Net change in unrealized appreciation (depreciation) | 1,461,160 | |||
Net realized and unrealized gain | 1,134,208 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,630,612 | ||
* Net of foreign withholding taxes of $4,560, $22,232, $24,385, $27,610 and $4,513 respectively.
See Notes to Financial Statements. | 50 |
TDX Independence Funds, Inc.
TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND | TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND | TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND | TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND | |||||||||||
$ | 704,409 | $ | 247,993 | $ | 67,836 | $ | 364,478 | |||||||
628,554 | 692,057 | 731,913 | 108,457 | |||||||||||
1,332,963 | 940,050 | 799,749 | 472,935 | |||||||||||
334,960 | 280,049 | 265,871 | 204,462 | |||||||||||
238,225 | 194,137 | 180,172 | 133,258 | |||||||||||
45,343 | 36,672 | 36,384 | 31,066 | |||||||||||
60,953 | 53,160 | 47,590 | 33,397 | |||||||||||
49,968 | 41,309 | 37,109 | 28,969 | |||||||||||
43,314 | 35,298 | 32,759 | 24,229 | |||||||||||
17,241 | 17,241 | 17,241 | 17,241 | |||||||||||
33,872 | 30,368 | 29,731 | 26,464 | |||||||||||
823,876 | 688,234 | 646,857 | 499,086 | |||||||||||
(238,225 | ) | (194,137 | ) | (180,172 | ) | (133,258 | ) | |||||||
(303,512 | ) | (264,062 | ) | (253,155 | ) | (207,742 | ) | |||||||
282,139 | 230,035 | 213,530 | 158,086 | |||||||||||
1,050,824 | 710,015 | 586,219 | 314,849 | |||||||||||
(3,254,244 | ) | (3,999,663 | ) | (4,823,945 | ) | (203,338 | ) | |||||||
639,788 | 954,135 | 891,060 | 293,409 | |||||||||||
(1,207 | ) | (855 | ) | (988 | ) | (204 | ) | |||||||
(2,615,663 | ) | (3,046,383 | ) | (3,933,873 | ) | 89,867 | ||||||||
6,967,957 | 7,244,361 | 7,999,510 | 697,250 | |||||||||||
(4,026 | ) | (4,620 | ) | (4,685 | ) | (930 | ) | |||||||
6,963,931 | 7,239,741 | 7,994,825 | 696,320 | |||||||||||
4,348,268 | 4,193,358 | 4,060,952 | 786,187 | |||||||||||
$ | 5,399,092 | $ | 4,903,373 | $ | 4,647,171 | $ | 1,101,036 | |||||||
See Notes to Financial Statements. | 51 |
TDX Independence Funds, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND | TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND | |||||||||||||||
For the Year Ended May 31, 2010 | For the Year Ended May 31, 2009 | For the Year Ended May 31, 2010 | For the Year Ended May 31, 2009 | |||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 496,404 | $ | 608,758 | $ | 1,050,824 | $ | 1,116,174 | ||||||||
Net realized gain (loss) on investments and foreign currency transactions | (326,952 | ) | (1,729,514 | ) | (2,615,663 | ) | (3,380,537 | ) | ||||||||
Net change in appreciation (depreciation) on investments and foreign currency translations | 1,461,160 | (1,011,757 | ) | 6,963,931 | (6,583,359 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 1,630,612 | (2,132,513 | ) | 5,399,092 | (8,847,722 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||
Net investment income | (508,513 | ) | (686,307 | ) | (1,045,885 | ) | (1,063,521 | ) | ||||||||
Net realized gain on investment and foreign currency transactions | — | — | — | (6,552 | ) | |||||||||||
Total distributions to shareholders | (508,513 | ) | (686,307 | ) | (1,045,885 | ) | (1,070,073 | ) | ||||||||
SHAREHOLDER TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 4,422,360 | — | 4,016,000 | 3,520,687 | ||||||||||||
Value of shares redeemed | (4,626,618 | ) | (4,441,920 | ) | (4,106,764 | ) | — | |||||||||
Net increase (decrease) in net assets resulting from shareholder transactions | (204,258 | ) | (4,441,920 | ) | (90,764 | ) | 3,520,687 | |||||||||
Net increase (decrease) in net assets | 917,841 | (7,260,740 | ) | 4,262,443 | (6,397,108 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 17,692,601 | 24,953,341 | 37,142,313 | 43,539,421 | ||||||||||||
End of year | $ | 18,610,442 | $ | 17,692,601 | $ | 41,404,756 | $ | 37,142,313 | ||||||||
Undistributed net investment income at end of year | $ | 184,718 | $ | 197,164 | $ | 458,759 | $ | 455,027 | ||||||||
CHANGES IN SHARES OUTSTANDING: | ||||||||||||||||
Shares outstanding, beginning of year | 800,800 | 1,000,800 | 2,000,800 | 1,800,800 | ||||||||||||
Shares sold | 200,000 | — | 200,000 | 200,000 | ||||||||||||
Shares redeemed | (200,000 | ) | (200,000 | ) | (200,000 | ) | — | |||||||||
Shares outstanding, end of year | 800,800 | 800,800 | 2,000,800 | 2,000,800 | ||||||||||||
See Notes to Financial Statements. | 52 |
TDX Independence Funds, Inc.
TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND | TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND | TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND | ||||||||||||||||||||
For the Year | For the Year | For the Year | For the Year | For the Year | For the Year | |||||||||||||||||
$ | 710,015 | $ | 707,407 | $ | 586,219 | $ | 607,231 | $ | 314,849 | $ | 495,961 | |||||||||||
| (3,046,383 | ) | (3,862,086 | ) | (3,933,873 | ) | (3,765,927 | ) | 89,867 | (505,119 | ) | |||||||||||
| 7,239,741 |
| (7,733,884 | ) | 7,994,825 | (8,955,953 | ) | 696,320 | (502,623 | ) | ||||||||||||
| 4,903,373 |
| (10,888,563 | ) | 4,647,171 | (12,114,649 | ) | 1,101,036 | (511,781 | ) | ||||||||||||
(663,238 | ) | (639,029 | ) | (547,621 | ) | (583,997 | ) | (344,219 | ) | (590,799 | ) | |||||||||||
| — |
| — | — | — | — | (3,975 | ) | ||||||||||||||
(663,238 | ) | (639,029 | ) | (547,621 | ) | (583,997 | ) | (344,219 | ) | (594,774 | ) | |||||||||||
3,506,540 | 7,443,489 | 3,459,736 | 2,744,462 | — | — | |||||||||||||||||
(3,944,243 | ) | — | (3,733,659 | ) | — | (5,083,124 | ) | (5,069,003 | ) | |||||||||||||
| (437,703 | ) | 7,443,489 | (273,923 | ) | 2,744,462 | (5,083,124 | ) | (5,069,003 | ) | ||||||||||||
3,802,432 | (4,084,103 | ) | 3,825,627 | (9,954,184 | ) | (4,326,307 | ) | (6,175,558 | ) | |||||||||||||
28,937,290 | 33,021,393 | 27,651,118 | 37,605,302 | 24,400,324 | 30,575,882 | |||||||||||||||||
$ | 32,739,722 | $ | 28,937,290 | $ | 31,476,745 | $ | 27,651,118 | $ | 20,074,017 | $ | 24,400,324 | |||||||||||
$ | 342,241 |
| $ | 296,319 | $ | 288,410 | $ | 250,800 | $ | 102,180 | $ | 131,754 | ||||||||||
1,800,800 | 1,400,800 | 1,800,800 | 1,600,800 | 1,000,800 | 1,200,800 | |||||||||||||||||
200,000 | 400,000 | 200,000 | 200,000 | — | — | |||||||||||||||||
(200,000 | ) | — | (200,000 | ) | — | (200,000 | ) | (200,000 | ) | |||||||||||||
1,800,800 | 1,800,800 | 1,800,800 | 1,800,800 | 800,800 | 1,000,800 | |||||||||||||||||
See Notes to Financial Statements. | 53 |
TDX Independence Funds, Inc.
For a Share outstanding throughout each period
TDX Independence 2010 Exchange-Traded Fund | For the Year Ended May 31, 2010 | For the Year Ended May 31, 2009 | For the Period October 1, 2007* through May 31, 2008 | |||||||||
Net Asset Value, beginning of period | $ | 22.09 | $ | 24.93 | $ | 25.39 | ||||||
Income from Investment Operations: | ||||||||||||
Net investment income** | 0.55 | 0.69 | 0.55 | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency transactions** | 1.11 | (2.67 | ) | (0.80 | ) | |||||||
Total from investment operations | 1.66 | (1.98 | ) | (0.25 | ) | |||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income | (0.51 | ) | (0.86 | ) | (0.18 | ) | ||||||
Net realized capital gains | — | — | (0.03 | ) | ||||||||
Total distributions | (0.51 | ) | (0.86 | ) | (0.21 | ) | ||||||
Net Asset Value, end of period | $ | 23.24 | $ | 22.09 | $ | 24.93 | ||||||
Total Return*** | 7.51 | % | (7.87 | )% | (0.99 | )% | ||||||
Ratios/Supplemental Data: | ||||||||||||
Net Assets, end of period (in 000’s) | $ | 18,610 | $ | 17,693 | $ | 24,953 | ||||||
Ratios to average net assets: | ||||||||||||
Expenses, net of expense reimbursements | 0.65 | % | 0.65 | % | 0.65 | %† | ||||||
Expenses, prior to expense reimbursements | 2.10 | % | 1.70 | % | 1.55 | %† | ||||||
Net investment income | 2.32 | % | 3.09 | % | 3.33 | %† | ||||||
Portfolio turnover rate†† | 51 | % | 54 | % | 22 | % | ||||||
TDX Independence 2020 Exchange-Traded Fund | For the Year Ended May 31, 2010 | For the Year Ended May 31, 2009 | For the Period October 1, 2007* through May 31, 2008 | |||||||||
Net Asset Value, beginning of period | $ | 18.56 | $ | 24.18 | $ | 25.52 | ||||||
Income from Investment Operations: | ||||||||||||
Net investment income** | 0.51 | 0.61 | 0.44 | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency transactions** | 2.10 | (5.64 | ) | (1.67 | ) | |||||||
Total from investment operations | 2.61 | (5.03 | ) | (1.23 | ) | |||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income | (0.48 | ) | (0.59 | ) | (0.10 | ) | ||||||
Net realized capital gains | — | (0.00 | )(a) | (0.01 | ) | |||||||
Total distributions | (0.48 | ) | (0.59 | ) | (0.11 | ) | ||||||
Net Asset Value, end of period | $ | 20.69 | $ | 18.56 | $ | 24.18 | ||||||
Total Return*** | 13.99 | % | (20.73 | )% | (4.82 | )% | ||||||
Ratios/Supplemental Data: | ||||||||||||
Net Assets, end of period (in 000’s) | $ | 41,405 | $ | 37,142 | $ | 43,539 | ||||||
Ratios to average net assets: | ||||||||||||
Expenses, net of expense reimbursements | 0.65 | % | 0.65 | % | 0.65 | %† | ||||||
Expenses, prior to expense reimbursements | 1.90 | % | 1.60 | % | 1.32 | %† | ||||||
Net investment income | 2.43 | % | 3.17 | % | 2.69 | %† | ||||||
Portfolio turnover rate†† | 37 | % | 64 | % | 20 | % |
* | Commencement of Investment Operations. |
** | Based on average shares outstanding. |
*** | Total Return is calculated assuming an initial investment made at the Net Asset Value at the beginning of the period, reinvestment of all dividend distributions at Net Asset Value during the period, and redemption at Net Asset Value on the last day of the period. Total Return calculated for a period of less than one year is not annualized. The Total Return would have been lower if certain fees had not been reimbursed by the investment sub-advisor, Amerivest Investment Management, LLC. |
† | Annualized. |
†† | Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. |
(a) | Amount distributed was less than $0.01 per share. |
See Notes to Financial Statements. | 54 |
TDX Independence Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share outstanding throughout each period
TDX Independence 2030 Exchange-Traded Fund | For the Year Ended May 31, 2010 | For the Year Ended May 31, 2009 | For the Period October 1, 2007* through May 31, 2008 | |||||||||
Net Asset Value, beginning of period | $ | 16.07 | $ | 23.57 | $ | 25.60 | ||||||
Income from Investment Operations: | ||||||||||||
Net investment income** | 0.37 | 0.44 | 0.35 | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency transactions** | 2.07 | (7.54 | ) | (2.29 | ) | |||||||
Total from investment operations | 2.44 | (7.10 | ) | (1.94 | ) | |||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income | (0.33 | ) | (0.40 | ) | (0.08 | ) | ||||||
Net realized capital gains | — | — | (0.01 | ) | ||||||||
Total distributions | (0.33 | ) | (0.40 | ) | (0.09 | ) | ||||||
Net Asset Value, end of period | $ | 18.18 | $ | 16.07 | $ | 23.57 | ||||||
Total Return*** | 15.13 | % | (30.08 | )% | (7.59 | )% | ||||||
Ratios/Supplemental Data: | ||||||||||||
Net Assets, end of period (in 000’s) | $ | 32,740 | $ | 28,937 | $ | 33,021 | ||||||
Ratios to average net assets: | ||||||||||||
Expenses, net of expense reimbursements | 0.65 | % | 0.65 | % | 0.65 | %† | ||||||
Expenses, prior to expense reimbursements | 1.95 | % | 1.62 | % | 1.38 | %† | ||||||
Net investment income | 2.01 | % | 2.52 | % | 2.13 | %† | ||||||
Portfolio turnover rate†† | 42 | % | 64 | % | 13 | % | ||||||
TDX Independence 2040 Exchange-Traded Fund | For the Year Ended May 31, 2010 | For the Year Ended May 31, 2009 | For the Period October 1, 2007* through May 31, 2008 | |||||||||
Net Asset Value, beginning of period | $ | 15.35 | $ | 23.49 | $ | 25.64 | ||||||
Income from Investment Operations: | ||||||||||||
Net investment income** | 0.32 | 0.37 | 0.29 | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency transactions** | 2.08 | (8.15 | ) | (2.38 | ) | |||||||
Total from investment operations | 2.40 | (7.78 | ) | (2.09 | ) | |||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income | (0.27 | ) | (0.36 | ) | (0.06 | ) | ||||||
Net realized capital gains | — | — | (0.00 | )(a) | ||||||||
Total distributions | (0.27 | ) | (0.36 | ) | (0.06 | ) | ||||||
Net Asset Value, end of period | $ | 17.48 | $ | 15.35 | $ | 23.49 | ||||||
Total Return*** | 15.59 | % | (33.03 | )% | (8.14 | )% | ||||||
Ratios/Supplemental Data: | ||||||||||||
Net Assets, end of period (in 000’s) | $ | 31,477 | $ | 27,651 | $ | 37,605 | ||||||
Ratios to average net assets: | ||||||||||||
Expenses, net of expense reimbursements | 0.65 | % | 0.65 | % | 0.65 | %† | ||||||
Expenses, prior to expense reimbursements | 1.97 | % | 1.65 | % | 1.36 | %† | ||||||
Net investment income | 1.79 | % | 2.21 | % | 1.89 | %† | ||||||
Portfolio turnover rate†† | 38 | % | 56 | % | 10 | % |
* | Commencement of Investment Operations. |
** | Based on average shares outstanding. |
*** | Total Return is calculated assuming an initial investment made at the Net Asset Value at the beginning of the period, reinvestment of all dividend distributions at Net Asset Value during the period, and redemption at Net Asset Value on the last day of the period. Total Return calculated for a period of less than one year is not annualized. The Total Return would have been lower if certain fees had not been reimbursed by the investment sub-advisor, Amerivest Investment Management, LLC. |
† | Annualized. |
†† | Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. |
(a) | Amount distributed was less than $0.01 per share. |
See Notes to Financial Statements. | 55 |
TDX Independence Funds, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
For a Share outstanding throughout each period
TDX Independence In-Target Exchange-Traded Fund | For the Year Ended May 31, 2010 | For the Year Ended May 31, 2009 | For the Period October 1, 2007* through May 31, 2008 | |||||||||
Net Asset Value, beginning of period | $ | 24.38 | $ | 25.46 | $ | 25.08 | ||||||
Income from Investment Operations: | ||||||||||||
Net investment income** | 0.33 | 0.47 | 0.43 | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency transactions** | 0.70 | (0.96 | ) | 0.10 | ||||||||
Total from investment operations | 1.03 | (0.49 | ) | 0.53 | ||||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income | (0.34 | ) | (0.59 | ) | (0.15 | ) | ||||||
Net realized capital gains | — | (0.00 | )(a) | (0.00 | )(a) | |||||||
Total distributions | (0.34 | ) | (0.59 | ) | (0.15 | ) | ||||||
Net Asset Value, end of period | $ | 25.07 | $ | 24.38 | $ | 25.46 | ||||||
Total Return*** | 4.23 | % | (1.87 | )% | 2.12 | % | ||||||
Ratios/Supplemental Data: | ||||||||||||
Net Assets, end of period (in 000’s) | $ | 20,074 | $ | 24,400 | $ | 30,576 | ||||||
Ratios to average net assets: | ||||||||||||
Expenses, net of expense reimbursements | 0.65 | % | 0.65 | % | 0.65 | %† | ||||||
Expenses, prior to expense reimbursements | 2.06 | % | 1.57 | % | 1.61 | %† | ||||||
Net investment income | 1.30 | % | 1.91 | % | 2.62 | %† | ||||||
Portfolio turnover rate†† | 42 | % | 75 | % | 21 | % |
* | Commencement of Investment Operations. |
** | Based on average shares outstanding. |
*** | Total Return is calculated assuming an initial investment made at the Net Asset Value at the beginning of the period, reinvestment of all dividend distributions at Net Asset Value during the period, and redemption at Net Asset Value on the last day of the period. Total Return calculated for a period of less than one year is not annualized. The Total Return would have been lower if certain fees had not been reimbursed by the investment sub-advisor, Amerivest Investment Management, LLC. |
† | Annualized. |
†† | Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. |
(a) | Amounts distributed were less than $0.01 per share. |
See Notes to Financial Statements. | 56 |
TDX Independence Funds, Inc.
1. ORGANIZATION
TDX Independence Funds, Inc. (the “Company”) was organized as a Maryland corporation on December 22, 2006 and is registered under the Investment Company Act of 1940, as amended (the “Act”).
As of May 31, 2010, the following five (5) series of exchange-traded funds (“ETF”) (each, a “Fund,” and collectively, the “Funds,” or “TDX Independence Exchange-Traded Funds”) were in operation and trading:
TDX Independence 2010 Exchange-Traded Fund | “Independence 2010 ETF” | |
TDX Independence 2020 Exchange-Traded Fund | “Independence 2020 ETF” | |
TDX Independence 2030 Exchange-Traded Fund | “Independence 2030 ETF” | |
TDX Independence 2040 Exchange-Traded Fund | “Independence 2040 ETF” | |
TDX Independence In-Target Exchange-Traded Fund | “Independence In-Target ETF” |
XShares Advisors LLC (“XShares” or the “Advisor”) serves as investment advisor to the Funds and has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Directors.
Each Fund offers shares, known as TDX Independence Target Date Shares that are listed and traded on NYSE Arca, Inc. (“NYSE Arca”). Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value, only in large specified lots, consisting of 200,000 shares, each called a “Creation Unit.” Except when aggregated in Creation Units, shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to track the performance, before fees and expenses, of a particular index (the “Underlying Index”). Zacks Investment Research (“Zacks”) is the creator of each Underlying Index. Each Underlying Index is comprised of a mix of securities from three broad asset classes, international equities, domestic equities, and fixed income which includes cash, cash equivalents or short-term money market instruments. The Funds may invest in short-term instruments, which include obligations of the U.S. government and its agencies or instrumentalities; commercial paper, variable amount master demand notes and other debt securities, including high quality U.S. dollar-denominated short-term bonds and notes issued by domestic and foreign corporations; variable and floating rate securities; bank obligations; repurchase agreements collateralized by these securities; and shares of other investment companies that primarily invest in any of the above-referenced securities. These Underlying Indexes are designed to reflect a portfolio of investments that can be used for lifecycle investing. Lifecycle investing is an investment technique that starts by targeting a particular investment horizon. That investment horizon corresponds to the date the investor expects to need his or her invested assets.
The underlying indexes for the TDX Independence Exchange-Traded Funds are:
Fund | Underlying Index | |
Independence 2010 ETF | Zacks 2010 Lifecycle Index | |
Independence 2020 ETF | Zacks 2020 Lifecycle Index | |
Independence 2030 ETF | Zacks 2030 Lifecycle Index | |
Independence 2040 ETF | Zacks 2040 Lifecycle Index | |
Independence In-Target ETF | Zacks In-Target Lifecycle Index |
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds.
A. Security Valuation The Net Asset Value (“NAV”), of each Fund’s shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. NAV per share is calculated by dividing a Fund’s net assets by the number of Fund shares outstanding. Investments are valued at fair value. Any assets or securities for which market quotations are not readily available are valued at fair-value in accordance with procedures adopted by the Board of Directors. The Board of Directors has delegated to the Advisor the responsibility to exercise oversight in the administration of these procedures.
The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-tier hierarchy to maximize the use of observable market data and minimize the use of
57
TDX Independence Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows:
• | Level 1 — quoted prices in active markets for identical securities |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means |
• | Level 3 — significant unobservable inputs (including a Fund’s own assumption in determining the fair value of investments |
The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Funds. The Funds consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.
Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1, consist of active listed equities.
Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2. These generally include certain U.S. government and sovereign obligations, most government agency securities and investment-grade corporate bonds. As investments whose values are classified as Level 2 may include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
Investments whose values are classified as Level 3 have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange and less liquid corporate debt securities. When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
The inputs used by the Funds in estimating the value of investments classified as Level 3 may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 securities may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 securities does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations. There were no securities classified as Level 3 at May 31, 2010 or 2009.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
A summary of the valuations of the Fund’s investments by the fair value hierarchy levels as of May 31, 2010 is included with each Fund’s Schedule of Investments.
58
TDX Independence Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements.” ASU 2010-06 will require reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. The new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2009, except for the disclosures surrounding purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact the adoption of ASU No. 2010-06 may have on the Fund’s financial statement disclosures.
U.S. GAAP requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative agreements. The application of this disclosure is effective for fiscal years beginning November 15, 2008 and interim periods within those fiscal years. The Funds did not invest in derivative instruments for the fiscal year ended May 31, 2010.
B. Securities Transactions And Income Recognition Securities transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from the sale or disposition of securities are calculated on the identified cost-method. Dividend income is net of any foreign taxes withheld at source. Interest income is recorded on the accrual basis. Discounts and premiums on securities purchased are amortized over the lives of the respective securities.
C. Dividends and Distributions to Shareholders And Federal Income Taxes It is each Fund’s policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). Each fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. It is the policy of each Fund to pay out dividends, if any, to investors at least annually sufficient to relieve it from all, or substantially all, Federal income and excise taxes. Accordingly, no provision for Federal income taxes is required in the financial statements. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. The Funds may occasionally be required to make supplemental distributions at some other time during the year. The Funds reserve the right to declare special distributions if, in their reasonable discretion, such action is necessary or advisable to preserve the status of each Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profit for tax purposes, are reported as a tax return of capital. Each Fund pays out dividends from its net investment income to investors annually. Each Fund distributes any net capital gains annually.
D. Expenses Expenses that are directly related to a specific Fund are charged to that respective Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund. Each Fund is entitled to use its respective Underlying Index pursuant to a licensing agreement between Zacks and Amerivest Investment Management, LLC (“Amerivest”) and a sub-licensing agreement between Amerivest and the Advisor. There is no charge to the Funds in connection with these licensing agreements.
E. Foreign Currency Transactions The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars using the applicable exchange rates as of the close of London Exchange. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statements of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments in securities. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translation” on the Statements of Operations. The portion of foreign currency gains and
59
TDX Independence Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
losses related to fluctuations in exchange rates between the initial purchase trade date and subsequent sale trade date is included in “Net realized gain (loss) on foreign currency transactions” on the Statements of Operations. Certain foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are a reduction of ordinary income in accordance with U.S. Federal income tax regulations.
F. Taxes In accordance with U.S. GAAP requirements regarding accounting for uncertainties on income taxes, management has analyzed the Fund’s tax positions taken on federal and state income tax returns for all open tax years. The Funds are subject to tax provisions that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. These tax provisions require that the financial statement effects of a tax position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by the taxing authorities. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of May 31, 2010, the Funds have not recorded any unrecognized tax benefits. The Funds’ policy, if it had unrecognized benefits, is to recognize accrued interest and penalties in operating expenses.
The Funds’ have filed separate U.S. Federal income tax returns since they were incorporated in 2007. The U.S. Federal statute of limitations remains open for all the years 2007 onward.
G. Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. As of May 31, 2010, there were no cash equivalents.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Advisor has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Fund’s Board of Directors. Under an investment advisory agreement between the Company, on behalf of the Funds, and the Advisor (the “Investment Advisory Agreement”), the Advisor is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Funds to operate. The Advisor is also responsible for employing any sampling strategy for the Funds. The Investment Advisory Agreement, dated as of July 24, 2007, has an initial term of two years and may be continued in effect annually thereafter if such continuance is approved by (i) the Board of Directors, or (ii) a majority (as defined in the Act) of the outstanding voting securities of each applicable Fund provided that in either case the continuance is also approved by a majority of the Board of Directors, who are not parties to the Investment Advisory Agreement or “interested persons” (as defined in the Act) of any such party (the “Disinterested Directors”), by a vote cast in person at a meeting called for the purpose of voting on such a continuance. The Investment Advisory Agreement is terminable without penalty by the Company with respect to one or more of the Funds on 60 days’ written notice when authorized either by majority vote of its outstanding voting shares or by a vote of a majority of the Board of Directors, or by the Advisor on 60 days’ written notice, and will terminate automatically in the event of its assignment.
For the services it provides to the Funds, the Advisor receives a unified advisory fee based on a percentage of the daily net assets of each Fund. The advisory fee is calculated daily and paid monthly in arrears equal to 0.65% (per annum). Out of the advisory fee, the Advisor pays, or arranges for the payment of, all fees and expenses of the Sub-Advisors, Transfer Agent, the Administrator and Accounting Agent and the Custodian. Each Fund is responsible for the payment of all other expenses associated with its operation, including but not limited to, brokerage expenses, taxes, interest, fees and expenses of counsel to the Funds, fees and expenses of the Disinterested Directors (including legal counsel fees), certain out-of-pocket expenses of the Advisor or Sub-Advisors, including, but not limited to, cost of obtaining prices for security valuations (including manual broker quotes), Federal Reserve charges related to securities transactions, postage and insurance on physical transfer items, telecommunication charges, and proxy voting execution, advice and reporting etc., fees and expenses of the Chief Compliance Officer and expenses associated with the Funds’ compliance program, litigation expenses, fees and expenses of the Funds’ independent auditors, registration fees, expenses associated with compliance by the Funds with regulatory requirements, including those relating to the development and distribution of its prospectus and shareholder reports, and extraordinary expenses. Pursuant to the Investment Advisory Agreement, the Advisor is authorized to engage one or more sub-advisors to perform any of the services contemplated to be performed by the Advisor under the Investment Advisory Agreement.
Amerivest and TDAM USA Inc. (“TDAM”) act as investment sub-advisors to the Funds (each a “Sub-Advisor” and, together, the “Sub-Advisors”). Amerivest is a wholly-owned subsidiary of TD AMERITRADE Holding Corporation. TDAM
60
TDX Independence Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
is a direct, wholly-owned subsidiary of The Toronto-Dominion Bank and an affiliate of Amerivest. Mellon Capital Management Corporation (“MCM”), successor in interest to BNY Investment Advisors, previously served as an investment sub-advisor to the Funds. The investment sub-advisory agreement between the Advisor and MCM terminated, pursuant to its terms, effective August 3, 2009. To facilitate an uninterrupted investment program for the Funds, on July 23, 2009, the Directors, including a majority of the Disinterested Directors, approved an interim investment sub-advisory agreement (the “Interim Agreement”) between the Advisor and TDAM, replacing MCM as an investment sub-advisor to the Funds effective August 3, 2009. At an in-person meeting of the Board of Directors of the Funds held on November 2, 2009, the Directors, including a majority of the Disinterested Directors, approved, subject to shareholder approval, a new investment sub-advisory agreement (the “Sub-Advisory Agreement”) between the Advisor and TDAM. As discussed more fully below under “Proxy Results,” at a joint special meeting of shareholders of the Funds held on December 28, 2009, the shareholders of the TDX Independence In-Target Exchange-Traded Fund and TDX Independence 2010 Exchange-Traded Fund voted to approve the Sub-Advisory Agreement. The special meetings of shareholders for the TDX Independence 2020 Exchange-Traded Fund, the TDX Independence 2030 Exchange-Traded Fund, and the TDX Independence 2040 Exchange-Traded Fund (collectively, the “2020, 2030 and 2040 Funds”) were adjourned on December 19, 2009 until December 30, 2009, and again on December 30, 2009 until January 29, 2010, because the 2020, 2030 and 2040 Funds had not obtained sufficient shareholder votes to approve the Sub-Advisory Agreement. At the adjourned joint special meeting of shareholders of the 2020, 2030 and 2040 Funds held on January 29, 2010, shareholders voted to approve the Sub-Advisory Agreement. The Sub-Advisors are responsible for the day-to-day management of the Funds, subject to the supervision of the Advisor and the Funds’ Board of Directors. In this regard, the Sub-Advisors are responsible for implementing the replication strategy for each Fund with regard to its underlying index and for general administration, compliance and management services as may be agreed between the Advisor and Sub Advisors from time to time.
In accordance with the terms of the investment sub-advisory agreement with Amerivest, the Advisor pays Amerivest, out of its own resources, a fee at the annual rate of 0.55% of each Fund’s average daily net assets for the first $5 billion in assets and 0.60% of each Fund’s average daily net assets in excess of $5 billion. Out of the Sub-Advisory fee, Amerivest pays all fees and expenses of TDAM, the Transfer Agent, Administrator and Accounting Agent and Custodian. Amerivest has contractually agreed to reduce its fees and/or pay Fund operating expenses (excluding, among other things, acquired fund fees and expenses, interest, taxes and extraordinary expenses) in order to limit each Fund’s net annual operating expenses for shares of the Fund to 0.65% of the Fund’s average net assets (the “Expense Cap”). The Expense Cap will remain in effect until at least September 30, 2010. Amerivest is permitted to be reimbursed for fee reductions and/or expense payments made in the prior three fiscal years. This reimbursement may be paid by Amerivest if the aggregate amount actually paid by a Fund toward operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the Expense Cap. No amounts were reimbursed under this in 2010 or 2009.
Amerivest pays TDAM, out of its own resources, a fee based on a percentage of the average daily net assets of each Fund as set forth below:
• | 10 basis points (0.10%) of the first $100 million in combined daily net assets of all Funds; and |
• | 5 basis points (0.05%) of the combined daily net assets of all Funds in excess of $100 million. |
Amerivest pays TDAM a minimum annual fee of $35,000 per Fund.
The amounts subject to potential reimbursement to Amerivest at May 31, 2010 were as follows:
Reimbursements available through: | |||||||||
5/31/2010 | 5/31/2011 | 5/31/2012 | |||||||
Independence 2010 ETF | $ | 622,136 | $ | 516,564 | $ | 311,096 | |||
Independence 2020 ETF | 1,014,685 | 876,216 | 541,737 | ||||||
Independence 2030 ETF | 850,738 | 730,268 | 458,199 | ||||||
Independence 2040 ETF | 833,909 | 708,849 | 433,327 | ||||||
Independence In-Target ETF | 695,103 | 579,859 | 341,000 |
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TDX Independence Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the fiscal year ended May 31, 2010, the advisory and sub-advisory fee waivers and expenses assumed by Amerivest were as follows:
Amerivest Fee Waiver | Fees & Expenses Assumed by Amerivest | |||||
Independence 2010 ETF | $ | 117,933 | $ | 193,163 | ||
Independence 2020 ETF | 238,225 | 303,512 | ||||
Independence 2030 ETF | 194,137 | 264,062 | ||||
Independence 2040 ETF | 180,172 | 253,155 | ||||
Independence In-Target ETF | 133,258 | 207,742 |
The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent and Transfer Agent for each Fund.
ALPS Distributors, Inc. serves as the distributor of Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Funds.
The Board of Directors is currently comprised of four Directors, of whom three are Disinterested Directors. The Company pays each Disinterested Director an annual fee of $30,000, plus a fee of $4,000 per meeting attended in-person or $1,000 per meeting attended conducted telephonically. Each Disinterested Director also receives $2,000 per Audit Committee meeting attended in-person or $1,000 per meeting attended conducted telephonically, although the Audit Committee Chairman receives $3,000 per Audit Committee meeting attended in-person. The Company reimburses each Director for their costs and expenses associated with their performance of their duties hereunder, including the cost and expenses associated with attendance of meetings of the Board. Directors’ fees and expenses are allocated among the Funds based on each Fund’s relative average net assets.
4. FEDERAL INCOME TAXES
At May 31, 2010, the cost of investments for Federal income tax purposes was as follows:
Cost | |||
Independence 2010 ETF | $ | 18,366,676 | |
Independence 2020 ETF | 42,247,815 | ||
Independence 2030 ETF | 34,881,379 | ||
Independence 2040 ETF | 34,641,988 | ||
Independence In-Target ETF | 19,704,091 |
At May 31, 2010, the components of accumulated earnings/loss on tax-basis were as follows:
Accumulated Earnings | Net Accumulated Capital and Other Gains (Losses) | Unrealized Appreciation (Depreciation) on Investments | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Unrealized Appreciation (Depreciation) on Currency | Total Accumulated Earnings (Loss) | ||||||||||||||||||||
Independence 2010 ETF | $ | 186,018 | $ | (2,025,993 | ) | $ | 40,955 | $ | 795,348 | $ | (754,393 | ) | $ | (611 | ) | $ | (1,799,631 | ) | ||||||||
Independence 2020 ETF | 464,298 | (6,630,188 | ) | (1,263,450 | ) | 2,747,870 | (4,011,320 | ) | (1,978 | ) | (7,431,318 | ) | ||||||||||||||
Independence 2030 ETF | 347,100 | (7,842,914 | ) | (2,421,554 | ) | 2,206,153 | (4,627,707 | ) | (2,621 | ) | (9,919,989 | ) | ||||||||||||||
Independence 2040 ETF | 292,735 | (8,577,230 | ) | (3,353,264 | ) | 2,132,939 | (5,486,203 | ) | (2,288 | ) | (11,640,047 | ) | ||||||||||||||
Independence In-Target ETF | 102,986 | (745,978 | ) | 167,055 | 544,544 | (377,489 | ) | (507 | ) | (476,444 | ) |
Distributions to Shareholders:
The tax character of distributions paid during the fiscal year ended May 31, 2010 was as follows:
Distributions paid from Ordinary Income | Distributions paid from Long-Term Capital Gains | |||||
Independence 2010 ETF | $ | 508,513 | $ | — | ||
Independence 2020 ETF | 1,045,885 | — | ||||
Independence 2030 ETF | 663,238 | — | ||||
Independence 2040 ETF | 547,621 | — | ||||
Independence In-Target ETF | 344,219 | — |
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TDX Independence Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The tax character of distributions paid during the fiscal year ended May 31, 2009 was as follows:
Distributions paid from Ordinary Income | Distributions paid from Long-Term Capital Gains | |||||
Independence 2010 ETF | $ | 686,307 | $ | — | ||
Independence 2020 ETF | 1,066,479 | 3,594 | ||||
Independence 2030 ETF | 639,029 | — | ||||
Independence 2040 ETF | 583,997 | — | ||||
Independence In-Target ETF | 594,413 | 361 |
At May 31, 2010, for Federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains through the years indicated. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders. The use of some portion of the capital carryforwards by any one Fund may be limited by Federal tax rules. These rules limit the use of the carryforwards when there has been a greater than fifty percent change in ownership of a Fund.
Year of Expiration | Total Amount | ||||||||
2017 | 2018 | ||||||||
Independence 2010 ETF | $ | 1,004,066 | $ | 1,020,627 | $ | 2,024,693 | |||
Independence 2020 ETF | 2,884,099 | 3,713,736 | 6,597,835 | ||||||
Independence 2030 ETF | 3,249,773 | 4,568,179 | 7,817,952 | ||||||
Independence 2040 ETF | 3,538,689 | 4,936,668 | 8,475,357 | ||||||
Independence In-Target ETF | 176,636 | 561,088 | 737,724 |
Capital losses incurred after October 31 (“post-October losses”) within the taxable year are deemed to arise on the first business day of each Fund’s next taxable year. Capital losses can be carried forward for a period of eight years.
During the fiscal year ended May 31, 2010, the Funds incurred and elected to defer net capital losses as follows:
Post-October Losses on Capital | Post-October Losses on Currency | |||||
Independence 2010 ETF | $ | — | $ | 813 | ||
Independence 2020 ETF | 26,814 | 4,088 | ||||
Independence 2030 ETF | 20,103 | 4,430 | ||||
Independence 2040 ETF | 97,548 | 4,325 | ||||
Independence In-Target ETF | 7,448 | 659 |
In order to present paid-in capital and accumulated net realized gains or losses on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to additional paid-in capital, undistributed net investment income or loss and accumulated net realized gains or losses on investments. These differences are primarily due to currency gain/(loss) and redemptions-in-kind. For the fiscal year ended May 31, 2010, the adjustments were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Capital Gains (Accumulated Losses) | Paid-in Capital | |||||||||
Independence 2010 ETF | $ | (337 | ) | $ | (303,413 | ) | $ | 303,750 | |||
Independence 2020 ETF | (1,207 | ) | (635,093 | ) | 636,300 | ||||||
Independence 2030 ETF | (855 | ) | (947,063 | ) | 947,918 | ||||||
Independence 2040 ETF | (988 | ) | (884,252 | ) | 885,240 | ||||||
Independence In-Target ETF | (204 | ) | (291,707 | ) | 291,911 |
63
TDX Independence Funds, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENT PORTFOLIO TRANSACTIONS
For the fiscal year ended May 31, 2010, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:
Purchases | Sales | |||||
Independence 2010 ETF | $ | 10,735,991 | $ | 8,970,066 | ||
Independence 2020 ETF | 16,162,797 | 15,603,340 | ||||
Independence 2030 ETF | 14,725,456 | 14,381,499 | ||||
Independence 2040 ETF | 12,267,997 | 12,134,875 | ||||
Independence In-Target ETF | 19,226,221 | 8,565,776 |
For the fiscal year ended May 31, 2010, the cost of in-kind purchases and the proceeds from in-kind sales were as follows:
Purchases | Sales | |||||
Independence 2010 ETF | $ | 4,355,948 | $ | 4,402,821 | ||
Independence 2020 ETF | 3,992,743 | 4,296,610 | ||||
Independence 2030 ETF | 3,465,648 | 3,932,722 | ||||
Independence 2040 ETF | 3,457,188 | 3,730,168 | ||||
Independence In-Target ETF | 32,121 | 4,303,712 |
6. CAPITAL SHARE TRANSACTIONS
As of May 31, 2010, there were 12.5 billion shares of $0.0001 par value capital shares authorized by the Company. Capital shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of securities constituting a portfolio sampling representation of the securities included in the relevant Fund’s underlying index and an amount of cash. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
7. INDEMNIFICATIONS
In the normal course of business the Company enters into contracts that contain a variety of representations that provide indemnification for certain liabilities. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote.
8. SUBSEQUENT EVENTS
On June 30, 2010, XShares Group, Inc. (“Group”) and Deutsche Bank AG consummated an agreement pursuant to which Deutsche Bank AG acquired all of the issued and outstanding membership interest in the investment adviser to the Company and rebranded the investment adviser from XShares Advisors, LLC, to DBX Strategic Advisors LLC.
The acquisition by Deutsche Bank is not expected to result in any materials changes to the Funds’ investment strategies or day-to-day management of the Funds or any increase in the Funds’ fees and expenses.
There were some changes to the officers and directors of the Funds which are shown in the subsequent pages.
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TDX Independence Funds, Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of
TDX Independence Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of TDX Independence Funds, Inc. (the “Company”) consisting of: TDX Independence 2010 Exchange-Traded Fund, TDX Independence 2020 Exchange-Traded Fund, TDX Independence 2030 Exchange-Traded Fund, TDX Independence 2040 Exchange-Traded Fund, TDX Independence In-Target Exchange-Traded Fund as of May 31, 2010, and the related statements of operations, statements of changes in net assets and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets and financial highlights for the indicated periods through May 31, 2009, were audited by other auditors whose report, dated July 28, 2009, expressed an unqualified opinion on such financial statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Company’s 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 Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2010, 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 TDX Independence 2010 Exchange-Traded Fund, TDX Independence 2020 Exchange-Traded Fund, TDX Independence 2030 Exchange-Traded Fund, TDX Independence 2040 Exchange-Traded Fund, TDX Independence In-Target Exchange-Traded Fund of TDX Independence Funds, Inc. at May 31, 2010, the results of their operations, the changes in their net assets and the financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.
New York, New York
July 26, 2010
65
TDX Independence Funds, Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of TDX Independence Funds, Inc.
We have audited the accompanying statements of changes in net assets for the year ended May 31, 2009 and financial highlights for the year ended May 31, 2009 and for the period from October 1, 2007 (commencement of operations) through May 31, 2008, of TDX Independence Funds, Inc. (the “Company”) consisting of: TDX Independence 2010 Exchange-Traded Fund, TDX Independence 2020 Exchange-Traded Fund, TDX 2030 Independence Exchange-Traded Fund, TDX 2040 Independence Exchange-Traded Fund and TDX Independence In-Target Exchange-Traded Fund. This financial statement and the financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on this financial statement and the 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 audits to obtain reasonable assurance about whether the financial statement and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. Our procedures included confirmation of securities owned as of May 31, 2009, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statement and financial highlights referred to above present fairly, in all material respects, the changes in net assets for the year ended May 31, 2009 and the financial highlights for the year ended May 31, 2009 and for the period from October 1, 2007 (commencement of operations) through May 31, 2008 of each of the funds constituting TDX Independence Funds, Inc. in conformity with accounting principles generally accepted in the United States of America.
Eisner LLP
New York, New York
July 28, 2009
66
TDX Independence Funds, Inc.
FREQUENCY DISTRIBUTION OF DISCOUNTS & PREMIUMS (UNAUDITED)
The tables that follow present information about the differences between the daily market price on secondary markets for shares of a Fund and that Fund’s net asset value (“NAV”). NAV is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market returns (“Market Price”) of each Fund generally is determined using the midpoint between the highest bid and the lower offer on the national securities exchange on which the shares of such Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand. Shareholders may pay more than NAV when they buy Fund shares and receive less than NAV when they sell those shares, because shares are bought and sold at current market prices.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
The following information shows the frequency distributions of premiums and discounts for each Fund included in this report. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund, October 1, 2007, through the fiscal year ended May 31, 2010.
Each line in the table shows the number of trading days in which a Fund trades within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.
MARKET PRICE ABOVE OR EQUAL TO NAV | MARKET PRICE BELOW NAV | |||||||||
Basis point Differential* | Number of Days | Percentage of Total Days | Number of Days | Percentage of Total Days | ||||||
TDX Independence 2010 Exchange-Traded Fund October 1, 2007 – May 31, 2010 | 0 – < .25% | 55 | 8.20% | 44 | 6.56% | |||||
.25% – < .50% | 62 | 9.24% | 31 | 4.62% | ||||||
.50% – < .75% | 107 | 15.95% | 34 | 5.06% | ||||||
.75% – < 1.00% | 69 | 10.28% | 32 | 4.77% | ||||||
> = 1.00% | 145 | 21.61% | 92 | 13.71% | ||||||
Total: | 438 | 65.28% | 233 | 34.72% | ||||||
TDX Independence 2020 Exchange-Traded Fund October 1, 2007 – May 31, 2010 | 0 – < .25% | 48 | 7.15% | 44 | 6.56% | |||||
.25% – < .50% | 60 | 8.94% | 30 | 4.47% | ||||||
.50% – < .75% | 114 | 16.99% | 22 | 3.28% | ||||||
.75% – < 1.00% | 86 | 12.82% | 32 | 4.77% | ||||||
> = 1.00% | 123 | 18.33% | 112 | 16.69% | ||||||
Total: | 431 | 64.23% | 240 | 35.77% | ||||||
TDX Independence 2030 Exchange-Traded Fund October 1, 2007 – May 31, 2010 | 0 – < .25% | 55 | 8.20% | 38 | 5.66% | |||||
.25% – < .50% | 75 | 11.18% | 33 | 4.92% | ||||||
.50% – < .75% | 118 | 17.58% | 21 | 3.13% | ||||||
.75% – < 1.00% | 53 | 7.90% | 28 | 4.17% | ||||||
> = 1.00% | 148 | 22.06% | 102 | 15.20% | ||||||
Total: | 449 | 66.92% | 222 | 33.08% |
67
TDX Independence Funds, Inc.
FREQUENCY DISTRIBUTION OF DISCOUNTS & PREMIUMS (UNAUDITED) (CONTINUED)
MARKET PRICE ABOVE OR EQUAL TO NAV | MARKET PRICE BELOW NAV | |||||||||
Basis point Differential* | Number of Days | Percentage of Total Days | Number of Days | Percentage of Total Days | ||||||
TDX Independence 2040 Exchange-Traded Fund October 1, 2007 – May 31, 2010 | 0 – < .25% | 76 | 11.33% | 47 | 7.00% | |||||
.25% – < .50% | 85 | 12.67% | 34 | 5.07% | ||||||
.50% – < .75% | 117 | 17.44% | 20 | 2.98% | ||||||
.75% – < 1.00% | 47 | 7.00% | 16 | 2.38% | ||||||
> = 1.00% | 142 | 21.16% | 87 | 12.97% | ||||||
Total: | 467 | 69.60% | 204 | 30.40% | ||||||
TDX Independence In-Target Exchange-Traded Fund October 1, 2007 – May 31, 2010 | 0 – < .25% | 58 | 8.64% | 56 | 8.35% | |||||
.25% – < .50% | 62 | 9.24% | 66 | 9.84% | ||||||
.50% – < .75% | 143 | 21.31% | 60 | 8.94% | ||||||
.75% – < 1.00% | 26 | 3.88% | 47 | 7.00% | ||||||
> = 1.00% | 68 | 10.13% | 85 | 12.67% | ||||||
Total: | 357 | 53.20% | 314 | 46.80% |
* A basis point equals one-hundredth of one percent (0.01%).
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TDX Independence Funds, Inc.
Name, Address, and Age | Position(s) Held with Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | Other Directorships held by Director | |||||
Disinterested Directors: | ||||||||||
R. Charles Tschampion Age 64, 25 Great Oak Drive Short Hills, NJ 07078 | Director, Chairman of the Audit Committee and Member of the Nominating Committee | Since 2007 | Director, Industry Relations, CFA Institute (2005 to present); Managing Director of Investment Research and Managing Director of Defined Contribution Plans, General Motors Asset Management Corporation (1994 to 2005); Director, India Magnum Fund (1994 to 2005); Trustee of Lehigh University (October 1998 to June 2010) and Chair of the Investment Sub-Committee for the Lehigh University Endowment Fund (October 1998 to December 2008). | 5 | Trustee and Member of the Audit Committee, SPDR Select Sector Trust; Director, Real Estate Information Standards Board. | |||||
Ernest J. Scalberg Age 65, 176 Mal Paso Road Carmel, CA 93923 | Director, Member of the Audit and Nominating Committees | Since 2007 | Research Professor and Director of the GLOBE Center, Monterey Institute of International Studies (2009 to present); Associate Vice President for External Programs and Dean of Fisher Graduate School of International Business (2001 to 2009); Director, Adviser or Trustee to numerous non-profit organizations (1974 to present). | 5 | Trustee and Member of the Audit Committee, SPDR Select Sector Trust; Chairman of the Board of the Foundation, International University in Geneva (IUG), Switzerland. |
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TDX Independence Funds, Inc.
OFFICERS AND DIRECTORS (CONTINUED)
Name, Address, and Age | Position(s) Held with Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | Other Directorships held by Director | |||||
Michael G. Smith Age 66, 614 Lenox Glen Ellyn, IL 60137 | Director, Member of the Audit and Nominating Committees | Since 2007 | Retired since 1999. Formerly, Managing Director, Corporate and Institutional Client Group, Central Region, Merrill Lynch & Co., Inc. | 5 | Director, Ivy Funds, Inc; Director, Northwestern Mutual Series Fund, Inc; Executive Board Director, Cox Business School, Southern Methodist University. | |||||
Interested Director/Officers:* | ||||||||||
Hans Ephraimson Age 45 60 Wall Street New York, New York 10005 | President and Chief Executive Officer, Director and Chairman of the Board | Since 2010 | Managing Director in the North American Structured Sales Group and the DBX Group at Deutsche Bank AG. | 5 | Director, DB Commodity Services LLC; Director, DBX Strategic Advisors LLC; Director, DBX Advisors LLC | |||||
Martin Kremenstein Age 33 60 Wall Street New York, New York 10005 | Chief Operating Officer | Since 2010 | Director in the DBX Group at Deutsche Bank AG with responsibility for providing investor solutions to the DB sales force in North America since 2006; Vice President, Market Risk Management JP Morgan Chase until 2006. | N/A | Director, DB Commodity Services LLC; Director, DBX Strategic Advisors LLC; Director, DBX Advisors LLC |
70
TDX Independence Funds, Inc.
OFFICERS AND DIRECTORS (CONTINUED)
Name, Address, and Age | Position(s) Held with Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | Other Directorships held by Director | |||||
Michael Gilligan Age 43 60 Wall Street New York, New York 10005 | Treasurer, Chief Financial Officer and Controller | Since 2010 | Director in the Finance Group at Deutsche Bank AG with CFO responsibility for DBX Strategic Advisors LLC and DB Commodity Services LLC since 2008; Chief Operating Officer, Americas Credit Trading, Credit Suisse 2007 to 2008; Director in the Finance Group, Credit Suisse 1998 to 2007. | N/A | N/A | |||||
Alex Depetris Age 30 60 Wall Street New York, New York 10005 | Secretary | Since 2010 | Vice President in the DBX Group at Deutsche Bank AG with responsibility for providing investor solutions to the DB sales force in North America since 2008; Associate, with the law firm of Arnold & Porter 2006 until 2008; Associate, with the law firm of Sullivan & Worcester 2005 until 2006. | N/A | Director, DB Commodity Services LLC; Director, DBX Strategic Advisors LLC; Director, DBX Advisors LLC |
* Officers/Director of the Company are “interested persons” as defined in the 1940 Act.
The Fund’s SAI includes additional information about the Fund’s Directors and is available by calling 1-877-369-4617, or on the Company’s website at www.dbxstrategicadvisors.db.com.
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TDX Independence Funds, Inc.
JOINT SPECIAL MEETING OF SHAREHOLDERS
On December 18, 2009, a joint special meeting of shareholders (the “Joint Meeting”) of the Funds was held at the offices of Paul, Hastings, Janofsky & Walker LLP to approve a new investment sub-advisory agreement (the “Sub-Advisory Agreement”) between XShares Advisors LLC (“XShares”) and TDAM USA Inc. (“TDAM”) to replace Mellon Capital Management Corporation (“Mellon Capital”), successor in interest to BNY Investment Advisors, as an investment sub-advisor to the Funds (the “Proposal”). As background, the investment sub-advisory between XShares and Mellon Capital terminated, pursuant to its terms, effective August 3, 2009. After careful consideration of possible alternatives to Mellon Capital, the Directors, including a majority of the Directors who are not “interested persons,” as defined by the Investment Company Act of 1940, as amended (the “Act”), of TDX Independence Funds, Inc., approved, subject to shareholder approval, the Sub-Advisory Agreement, pursuant to which TDAM would become a new investment sub-advisor to the Funds.
At a joint special meeting of shareholders of the Funds held on December 28, 2009, the shareholders of the TDX Independence In-Target Exchange-Traded Fund and TDX Independence 2010 Exchange-Traded Fund voted to approve the Sub-Advisory Agreement.
ADJOURNED JOINT SPECIAL MEETING OF SHAREHOLDERS
The special meetings of shareholders for the TDX Independence 2020 Exchange-Traded Fund, the TDX Independence 2030 Exchange-Traded Fund, and the TDX Independence 2040 Exchange-Traded Fund (collectively, the “2020, 2030 and 2040 Funds”) were adjourned on December 19, 2009 until December 30, 2009, and again on December 30, 2009 until January 29, 2010, because the 2020, 2030 and 2040 Funds had not obtained sufficient shareholder votes to approve the Sub-Advisory Agreement. At the adjourned joint special meeting of shareholders of the 2020, 2030 and 2040 Funds held on January 29, 2010 (the “Adjourned Joint Meeting”), shareholders voted to approve the Sub-Advisory Agreement.
VOTING INFORMATION
Approval of the Proposal required the affirmative vote of a “majority of the outstanding securities” (as defined in the Act) of each Fund, which means the affirmative vote of the lesser of (1) the holders of 67% or more of the shares represented at a meeting, if the holders of more than 50% of the shares of the Fund are represented at the meeting, or (2) more than 50% of the outstanding shares of the Fund.
For purposes of determining whether shareholders of a Fund approved the Proposal, abstentions and broker non-votes were counted as shares present at each meeting for quorum purposes but will not be voted for or against the Proposal. Accordingly, abstentions and broker non-votes effectively were votes “AGAINST” the Proposal, because the Proposal required the affirmative vote of a majority of the Fund’s outstanding shares.
Shares voted in favor, shares voted against and shares abstaining with respect to the Proposal at the Joint Meeting were as follows:
TDX Independence 2010 Exchange-Traded Fund
FOR
| AGAINST
| ABSTAIN
| ||
481,550.87 | 13,702.84 | 19,886.54 |
TDX Independence In-Target Exchange-Traded Fund
FOR
| AGAINST
| ABSTAIN
| ||
506,150.07 | 17,038.99 | 20,532.10 |
Shares voted in favor, shares voted against and shares abstaining with respect to the Proposal at the Adjourned Joint Meeting were as follows:
TDX Independence 2020 Exchange-Traded Fund
FOR
| AGAINST
| ABSTAIN
| ||
1,035,224.66 | 41,422.73 | 68,489.90 |
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TDX Independence Funds, Inc.
PROXY RESULTS (UNAUDITED) (CONTINUED)
TDX Independence 2030 Exchange-Traded Fund
FOR
| AGAINST
| ABSTAIN
| ||
944,401.84 | 26,270.51 | 42,722.93 |
TDX Independence 2040 Exchange-Traded Fund
FOR
| AGAINST
| ABSTAIN
| ||
909,197.15 | 31,699.69 | 70,417.33 |
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TDX Independence Funds, Inc.
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Company uses to determine how to vote proxies related to each Fund’s portfolio securities, (and information on how the Funds voted proxies during the period ended June 30, 2009 on Form N-PX) is available without charge, upon request, (i) by calling 877-369-4617; (ii) on the Company’s website at www.dbxstrategicadvisors.db.com; and (iii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
The Funds are required to file their complete schedule of portfolio holdings with the SEC for their first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov and are available by calling the Company at 877-369-4617. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC’s Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically to publicinfo@sec.gov.
Information about each Fund’s portfolio holdings is available daily at www.dbxstrategicadvisors.db.com.
TAX INFORMATION
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
The following distribution information is being provided as required by the Internal Revenue Code.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended May 31, 2010.
FEDERAL AND STATE INCOME TAX
Qualified Dividend Income* | Corporate Dividend Received Deduction* | |||
Independence 2010 ETF | 21% | 13% | ||
Independence 2020 ETF | 55% | 34% | ||
Independence 2030 ETF | 95% | 60% | ||
Independence 2040 ETF | 100% | 78% | ||
Independence In-Target ETF | 27% | 16% |
* The above percentage is based on ordinary income dividends paid to shareholders during each Fund’s fiscal year.
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TDX Independence Funds, Inc.
This report is intended for the shareholders of the TDX Independence Exchange-Traded Funds (“TDX Independence ETFs”). It may not be distributed to prospective Investors unless it is preceded or accompanied by the current prospectus.
An Investor should consider the fund’s investment objective, risks, charges and expenses carefully before investing. For this and more complete information about the fund call 877-369-4617 or visit the website www.dbxstrategicadvisors.db.com. Please read the prospectus carefully before investing.
There are risks involved with investing in exchange-traded funds including possible loss of money. TDX Independence ETFs are not actively managed and are subject to risks similar to stocks, including those related to short selling and margin maintenance. Losses from short sales may be unlimited, and losses from purchases on margin may exceed original investment.
Investments in small and medium capitalization companies will be subject to higher volatility than larger, more established companies.
Investments in foreign securities will be subject to certain risks not associated with domestic securities, such as currency fluctuations, and changes in political and economic conditions.
Investments in fixed income securities will be subject to certain risks as well. The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the credit risk of individual issuers. Generally, fixed income securities will decrease in value if interest rates rise, and the volatility of lower rated securities is even greater than that of higher rated securities.
There is no assurance that the investment process will consistently lead to successful investing. Diversification does not eliminate the risk of experiencing investment losses.
The prospectus is not an offer to buy or sell the portfolio shares, nor is the fund soliciting an offer to buy its shares in any jurisdiction where the offer or sale is not permitted.
TDX Independence ETFs are distributed by ALPS Distributors, Inc., member of FINRA, which is neither affiliated with TDX Independence Funds, Inc. or any other affiliate, nor is it affiliated with The Bank of New York Mellon, Amerivest Investment Management, LLC, or TDAM USA Inc.
“Target Date” refers to a time in the future, generally a specified year, in which the investor expects to retire or otherwise require the use of the invested funds. Target date funds are generally more aggressive the further the target date is from the present, with an objective of capital appreciation. As the target date approaches, the fund’s objective will generally become more conservative, aiming to achieve a higher level of capital preservation.
Investors should note that although target date funds aim to preserve capital as the target date approaches, there is no guarantee that the fund will achieve this objective.
TDX Independence Funds, Inc.
INVESTMENT ADVISOR
DBX Strategic Advisors LLC
60 Wall Street
New York, NY 10005
INVESTMENT SUB-ADVISORS
Amerivest Investment Management, LLC
1005 North Ameritrade Place
Bellevue, NE 68005
TDAM USA Inc.
161 Bay Street, 35th Floor
TD Canada Trust Tower
Toronto, Ontario Canada M5J 2T2
ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
DISTRIBUTOR
ALPS Distributors, Inc.
1290 Broadway
Suite 1100
Denver, CO 80203
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
5 Times Square
New York, NY 10036
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
75 East 55th Street
New York, NY 10022
Item 2. | Code of Ethics. |
(a) The Fund has adopted a code of ethics (the “Code of Ethics”) that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This Code is filed as an exhibit to this report on Form N-CSR under item (a)(1).
Item 3. | Audit Committee Financial Expert. |
R. Charles Tschampion is the designated financial expert on the Audit Committee of TDX Independence Funds, Inc. With respect to TDX Independence Funds, Inc., R. Charles Tschampion is not an “interested person” as such terms are defined by Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19).
Item 4. | Principal Accountant Fees and Services. |
(a) Audit Fees. Fees for audit services for the Registrant’s fiscal year ended May 31, 2010, for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements were $90,000. Fees for professional services rendered by Eisner LLP (“predecessor accountant”) for the audit of the Registrant’s annual financial statements including examinations of securities conducted under rule 17f-2 of the 1940 Act, for the fiscal year ended May 31, 2010 and for the fiscal year ended May 31, 2009 were $16,023 and $125,964, respectively.
(b) Audit-Related Fees. The aggregate fees billed for the Registrant’s fiscal year ended May 31, 2010, for professional services rendered by the principal accountant for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported above in Item 4(a) were $0. The aggregate fees billed for the Registrant’s fiscal year ended May 31, 2009, for professional services rendered by the predecessor accountant for assurance and related services by the predecessor accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported above in Item 4(a) were $0.
(c) Tax Fees. Fees for tax services billed to the Registrant during the fiscal year ended May 31, 2010, for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were $15,000. Fees for tax services billed to the Registrant during the fiscal year ended May 31, 2009, for professional services rendered by the predecessor accountant for tax compliance, tax advice and tax planning were $30,693.
(d) All Other Fees. All other aggregate fees billed for the Registrant’s fiscal year ended May 31, 2009 and fiscal year ended May 31, 2010 were $0 and $0, respectively.
(e) Audit Committee Pre-Approval Policies and Procedures. In accordance with Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the audit and permissible non-audit services of the Registrant. All of the services described in paragraphs (b) through (d) above were approved by the Audit Committee in accordance with paragraph (c) (7) (i) (c) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Not applicable.
(h) The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant which were not pre-approved (not requiring pre-approval) is compatible with maintaining the principal accountant’s independence.
Items 5. | Audit Committee of Listed Registrants. |
The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Ernest J. Scalberg, Michael G. Smith and R. Charles Tschampion.
Item 6. | Schedule of Investments. |
(a) The schedule is included as a part of the report to shareholders filed under Item 1 of this Form.
(b) Not Applicable.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board of Directors that would require disclosure herein.
Item 11. | Controls and Procedures. |
a) | Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3-(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that the information required in filings on Form N-CSR is recorded, processed, summarized and reported on a timely basis. |
b) | There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last 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 | |
(a)(2) | Certifications of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 302CERT. | |
(b) | Certifications of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 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.
(Registrant) TDX Independence Funds, Inc.
By: | /s/ HANS EPHRAIMSON | |
Name: | Hans Ephraimson | |
Title: | President and Chief Executive Officer |
Date: August 3, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ HANS EPHRAIMSON | |
Name: | Hans Ephraimson | |
Title: | President and Chief Executive Officer |
Date: August 3, 2010
By: | /s/ MICHAEL GILLIGAN | |
Name: | Michael Gilligan | |
Title: | Treasurer, Chief Financial Officer and Controller |
Date: August 3, 2010