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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: 811-4338
EAGLE CAPITAL APPRECIATION FUND
(Formerly: Heritage Capital Appreciation Trust)
(Exact name of Registrant as Specified in Charter)
880 Carillon Parkway
St. Petersburg, FL 33716
(Address of Principal Executive Office) (Zip Code)
Registrant’s Telephone Number, including Area Code: (727) 567-8143
STEPHEN G. HILL, PRESIDENT
880 Carillon Parkway
St. Petersburg, FL 33716
(Name and Address of Agent for Service)
Copy to:
FRANCINE J. ROSENBERGER, ESQ.
K&L Gates LLP
1601 K Street, NW
Washington, D.C. 20006
Date of fiscal year end: October 31
Date of reporting period: April 30, 2009
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Item 1. Reports to Shareholders
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EAGLE MUTUAL FUNDS
Semiannual Report
and Investment Performance Review
for the six-month period ended April 30, 2009
Eagle Capital Appreciation Fund
Eagle Growth & Income Fund
Eagle International Equity Fund
Eagle Large Cap Core Fund
Eagle Mid Cap Growth Fund
Eagle Mid Cap Stock Fund
Eagle Small Cap Core Value Fund
Eagle Small Cap Growth Fund
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Performance Summary and Commentary |
Investment Portfolios |
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Dear Fellow Shareholders:
I am pleased to present the semiannual report and investment performance review of the Eagle mutual funds for the six-month period ended April 30, 2009 (“reporting period”).
During the reporting period, investor confidence was challenged by worsening economic conditions, continued stress in the financial system, and a dramatic rise in unemployment. The current recession has already run 18 months, making it the longest recession in the post-World War II era. The United States government has taken unprecedented actions to restore order to the credit markets and exercise control over private corporations (namely banks and auto makers) receiving federal assistance. Governments throughout the world have taken similar actions, including the United Kingdom’s government taking ownership of some of that country’s largest banks.
Market volatility was the main theme during the reporting period. The S&P 500 Index, an unmanaged index of 500 U.S. stocks, gives a broad look at how stock prices have performed, declined 8.53% during the reporting period, but the ending point does not tell the whole story. As the reporting period began, the markets continued their declines from the end of the last fiscal year. There was a rally in December, only to be followed by steep declines in January through early March as bad economic news was the order of the day. From early March through the end of the reporting period, the S&P 500 Index sharply rallied, gaining 29% during that period. As I write this letter, the markets have been able to hold most of the gains recorded during the rally and we are hopeful that this rally reflects early signs of stabilization in the financial markets and the economy as a whole.
By many measures, the recent dramatic market volatility is unprecedented. We understand your concerns. We can not predict when this recession will end or when the stock market will recover. We do believe that a consistent and disciplined investing strategy is more important than ever. Investors who wait to see that a stock market rally has begun often miss a significant portion of the market’s gains. The following chart shows the impact of missing just a few of the best days in the S&P 500 Index over the past 30 years (1978-2008).
(a) All investing involves risk and you may incur a profit or a loss. Past performance is not a guarantee of future results. Source: The Hartford, Ibbotson Associates, Inc. The S&P 500 Index is not available for direct investment. The returns assume the reinvestment of all dividends and do not reflect the impact of any commissions, fees or taxes that would apply to an actual investment.
In the commentaries that follow, each fund’s portfolio managers discuss the specific performance in their funds. While there can be no way to accurately predict short-term market movements, our portfolio managers hope to take advantage of investment opportunities that may arise during the current market.
Contact us at 800.421.4184 or eagleasset.com or your financial advisor for a prospectus, which contains important information about the Eagle Family of Funds. Our website also has timely information about the Funds, including performance and portfolio holdings. We are grateful for your continued support and confidence in the Eagle Family of Funds.
Sincerely,
Stephen G. Hill
President
June 18, 2009
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Performance Summary and Commentary | ||
Eagle Capital Appreciation Fund | (formerly known as the Heritage Capital Appreciation Trust) |
Meet the managers | Steven M. Barry and David G. Shell, CFA are Chief Investment Officers and Senior Portfolio Managers at Goldman Sachs Asset Management L.P. and have been responsible for the day-to-day management of the Eagle Capital Appreciation Fund (the “Fund”) since 2002. Mr. Shell has been affiliated with the Fund since 1987 and has 22 years of investment experience; Mr. Barry joined the team in 1999 and has 23 years of investment experience.
Investment highlights | The Fund invests primarily in common stocks. The Fund’s portfolio management team believes that wealth is created through the long-term ownership of a growing business. They take a “bottom-up” approach to investing based on in-depth, fundamental research. A bottom-up method of analysis emphasizes the outlook at the company and industry level versus reliance on the general economy and/or market trends. The portfolio managers use an intensive research process and each company is analyzed as if they were going to own and operate that company indefinitely. Key characteristics of the companies in which the Fund currently seeks to invest may include: dominant market share, established brand name, pricing power, recurring revenue stream, free cash flow, high returns on invested capital, predictable growth, sustainable growth, long product life cycle, enduring competitive advantage, favorable demographic trends and excellent management.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
© Copyright 2009 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Performance summary | The Fund’s class A shares returned 3.34% (excluding front-end sales charges) during the six-month period ended April 30, 2009, outperforming its benchmark index, the Russell 1000® Growth Index, which returned -1.52%. The Russell 1000® Growth Index measures performance of
those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values and is representative of U.S. securities exhibiting growth characteristics. Please keep in mind that an index is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
Performance data represented is historical and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and you may have a gain or loss when you sell shares. Current performance may be higher or lower than the performance data quoted. To obtain more current performance data as of the most recent month-end, please visit our website at eagleasset.com.
On May 14, 2009, the portfolio managers gave the following discussion of the Fund’s performance.
Performance discussion | On an absolute basis, the Fund’s holdings in the consumer discretionary and producer goods and services sectors contributed to positive performance while holdings in the media and consumer staples sectors weighed on results.
Positive stock selection in the utilities and energy sectors contributed to the Fund performance relative to the Russell 1000® Growth Index. On the downside, an underweight position and negative stock selection in the technology sector detracted from relative performance.
In several instances, on both a stock and sector level, the Fund is meaningfully different from its benchmark index, thus creating the potential for its performance to be materially higher or lower than the index. The Fund’s sector weightings are a direct result of our bottom-up, research intensive approach to investing. For example, when compared to the Russell 1000® Growth Index, the Fund’s portfolio is underweight in cyclicals, as most of these businesses do not typically meet our investment criteria since their revenues predominately depend on the increasing price of an underlying commodity. While our growth strategy is based on a purely bottom-up approach to investing, we do pay attention to the weights in the Russell 1000® Growth Index so we are aware of any weighting differences that may exist.
Top performers | Crown Castle International Corporation contributed to performance as the company reported fourth quarter earnings that beat expectations and provided a positive outlook. The Fund continues to hold the stock as we have conviction in the wireless tower business and Crown Castle has dominant market share in an industry with high barriers to
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Eagle Capital Appreciation Fund (cont’d) |
entry and generates significant free cash flow, enabling the company to self-finance its growth.
Marriott contributed to performance during the period. While the company reported a decline in first quarter revenue, it was also able to control expenses and continue with its expansion strategy by adding 30,000 new rooms to its inventory. We continue to hold the stock as we believe Marriott stands to benefit from this cyclical downturn in the hotel industry. In our view, the more challenging operating environment will lead to a tightening of supply in the lodging industry as recent difficulties in the credit markets have made borrowing more expensive, reducing the number of new hotels being constructed. We believe that these factors will constrain lodging supply, creating a potentially strong pricing environment for existing hotels in the future.
Apple Inc. contributed to performance as the company reported strong results behind sales of its iPod and iPhone products. In our view, Apple is positioned to increase sales as it expands its presence internationally and continues to grow its unique product portfolio. We continue to hold the stock in the Fund’s portfolio.
Coach Inc., a luxury goods producer, benefitted from increased traffic in its factory stores, which was driven by price cuts. In addition, the company showed improved inventories which gave the market confidence that the company could sustain its very high margins over time. The company has stated that its strategy in the current economic slowdown is to focus on converting traffic into sales, regardless of the type of sale, with the hope of leading to repeat customers and higher transaction volumes. The Fund continues to hold the stock in its portfolio.
QUALCOMM, Inc., a chip-maker for digital wireless communications products and services, was up during the period as the company reported solid revenue for its second fiscal quarter. While operating results were strong, the company reported a loss due to a $748 million litigation charge associated with its patent lawsuit settlement with Broadcom Corporation. The stock remains a Fund position as the company increased its full-year revenue outlook on strong demand for its cell phone chips.
Under performers | Activision Blizzard, Inc. detracted from performance as consumer spending declined during the holiday season. Video game stocks were particularly singled out given their reliance on holiday sales, which can be as much as half of a year’s revenue and all of a year’s earnings. We continue to have conviction in Activision Blizzard as its World of Warcraft subscription game provides recurring revenue, which gives the company a consistent base from which to take well-researched risks on new franchises and extensions to existing franchises.
Thermo Fisher Scientific, Inc. manufactures and distributes scientific instruments and laboratory supplies. The company’s stock detracted from the Fund’s performance as shares sold-off on concerns regarding industrial headwinds. In our view, the stock’s sell-off was unrelated to company fundamentals so we took advantage of the stock’s weakness and increased the Fund’s holdings.
Entravision Communications, a Spanish-language media company, detracted from performance during the period as economic headwinds and the company’s outstanding debt concerned investors. The Fund exited its position in the stock.
Baxter International Inc. makes a wide variety of medical products, including drugs and vaccines, dialysis equipment, and IV supplies. Baxter’s stock price fell despite reporting strong first quarter earnings. The company reported substantial revenue growth across most core segments, though results were negatively impacted by foreign exchange rate movements. During the reporting period we have added to the Fund’s position as we believe Baxter’s diversified portfolio of innovative products provide significant high-growth opportunities.
Merck & Company’s share price traded down after reporting first quarter results that fell short of analysts’ expectations. Sales for the first quarter declined compared to the same period last year as a challenging economic environment and adverse currency exchange rates negatively impacted results. Sales of Merck’s cervical cancer vaccine, Gardasil, disappointed. While we continue to believe Gardasil to be an important long-term growth driver for the company, we decided to exit the position in order to fund higher conviction ideas.
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Eagle Growth & Income Fund | (formerly known as the Heritage Growth and Income Trust) |
Meet the managers | William V. Fries, CFA, Managing Director, and Cliff Remily, CFA, of Thornburg Investment Management, Inc. are Co-Portfolio Managers of the Eagle Growth & Income Fund (the “Fund”). Mr. Fries has more than 33 years of investment experience and has been Co-Portfolio Manager since 2001. Mr. Remily was named Co-Portfolio Manager in January 2009 and has over 9 years of industry experience.
Investment highlights | The Fund invests primarily in domestic equity securities (primarily common stocks). The Fund’s portfolio managers look for promising investments that can be purchased at a discount to their estimate of each investment’s intrinsic value. They seek investments that deliver a competitive total return over multiple time horizons. Holdings are classified in three categories: basic value, consistent earners and emerging franchises as a means of structuring diversification. Dividends and dividend growth are a consideration in stock selection and may include stocks outside the traditional dividend paying areas.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
Performance summary | The Fund’s class A shares returned -0.97% (excluding front-end sales charges) during the six-month period ended April 30, 2009, outperforming the Fund’s benchmark index, which returned -8.53% during the same period. The Fund’s benchmark index, the Standard & Poor’s 500 Composite Stock Index (“S&P 500 Index”), is an unmanaged index of 500 U.S. stocks and gives a broad look at how stock prices have performed. Please keep in mind that an index is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
Performance data represented is historical and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and you may have a gain or loss when you sell shares. Current
performance may be higher or lower than the performance data quoted. To obtain more current performance data as of the most recent month-end, please visit our website at eagleasset.com.
On May 13, 2009, the portfolio managers gave the following discussion of the Fund’s performance.
Performance discussion | It was encouraging to see a number of positive outcomes for individual stocks within the portfolio following a difficult calendar 2008. Recognition of improving company-specific fundamentals, some relief in credit spreads and more access to the debt markets, as well as further clarity around government sponsorship of the financial system all played a role. Interestingly, the Fund’s fixed income exposure holdings were among the better contributors to performance during the period. Our goal in these fixed income investments is to achieve total return from the bond’s price appreciation as well as the interest income earned over our holding period. While the upside is generally limited to a return to par on these bonds, yield to maturities are attractive, and downside is often less than with many of the equity investment opportunities. In some cases we have “moved up the capital structure,” trimming or selling the Fund’s equity stake in a company as we have added fixed income exposure. In other cases we have added to the Fund’s overall investment with a particular issuer. We increased the Fund’s fixed income exposure this year as opportunities appeared in the markets for convertible and hybrid debt. In the convertible debt market we found issues where the value of the equity conversion feature appeared to be ignored, despite our belief that significant potential value exists. In the hybrid debt market, which is typically characterized by long durations and floating rates, we invested in securities that in our view would outperform as the financial crisis passed and credit spreads contracted.
On an absolute basis, positive contributors to performance were the Fund’s holdings in the information technology, consumer discretionary and financials sectors. In technology, we anticipate that, during the economic downturn, secular growth in demand will continue for paid activity search on the internet, smart phones with advanced features, and software applications that improve efficiency at the corporate level.
In the financial sector, we adopted a two-pronged strategy, holding both quality companies as well as companies that appeared to be undercapitalized. We felt that quality franchises had the potential to hold or possibly improve their market share. Further, we saw opportunities to establish positions in
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Eagle Growth & Income Fund (cont’d) |
companies perceived to be weaker as the market was pricing these companies as if they would not survive the downturn.
The Fund’s exposure to the energy and consumer staples sectors detracted from absolute returns. The Fund’s exposure to the energy sector underperformed as it experienced pressure from dramatically lower oil and gas prices.
The foreign stock component of the Fund’s portfolio (approximately 29% as of April 30, 2009) slightly outperformed U.S. equities, with particular strength coming from the Fund’s holdings in countries such as Australia, Brazil, China, Greece and Spain. The Fund’s holdings in Canada, France, Hong Kong, Switzerland and the United Kingdom detracted from absolute returns. Among the Fund’s foreign holdings, emerging market exposure at the end of the period was 5.3% of the Fund’s portfolio (inclusive of Hong Kong given the Fund’s holding in the local stock market exchange which is importantly linked to Chinese companies for its future success).
Stock selection in the financials, healthcare and consumer staples sectors helped contribute to the Fund’s outperformance of the benchmark. Stock selection in both the energy and telecommunication services sectors detracted from the Fund’s performance relative to the benchmark. The Fund’s overweight positions in the financials and telecommunication services sector, as well as its underweight positions in industrials, healthcare, and utilities sectors were all positive factors in the outperformance of the benchmark. When compared to the benchmark index, the Fund was underweight in the information technology sector which negatively impacted relative returns.
Cash and cash equivalents are, and always have been, the byproduct of our investment process as we weigh each potential investment’s risks and returns. Due to an abnormally volatile market, particularly at the beginning of the reporting period, we felt that it was prudent to be more cautious in evaluating security selection when deploying capital; therefore, we held higher than normal cash balances, which helped relative performance.
Top performers | U.S. Bancorp is one of the strongest large banks in the U.S. Although we sold out of the position in the Fund last fiscal year, we purchased the stock again before the market rally as we believed that its size and profitability would enable it to weather the financial crisis without additional significant equity dilution. The Fund continues to hold the stock as we expect U.S. Bancorp to emerge from the downturn larger and stronger and believe the current valuation does not reflect this potential.
OPAP, SA, which operates and manages numerical lottery and sports betting games, has had a relatively stable cash flow profile, despite a slowdown in the Greek economy. Although revenues from its Stilhma game have moderated, its Kino game has held up well and new regulations surrounding online betting have been postponed indefinitely due to the financial crisis. We continue to see the 7% dividend as attractive for shareholders and continue to hold the stock in the Fund’s portfolio.
Communication services provider Level 3 Communications, Inc. successfully refinanced some of its short-term debt during its fourth quarter and reported operating cash flow growth of 7% while providing guidance pointing to lower capital expenditures for 2009. For these reasons, the stock remains a Fund holding.
Baidu, Inc., the leader in Chinese language internet search, experienced better than expected revenue growth in the fourth quarter and solid internet traffic numbers during the first quarter. The Fund continues to hold the stock.
The Charles Schwab Corporation was purchased during the market rally in March. It was attracting healthy flows from new customers and saw growth in its DARTs (daily average revenue trades transactions). It was our belief that their retail banking franchise was underappreciated.
Under performers | Swiss Reinsurance Company reinsures life, health, property, motor and liability insurance. The stock was sold from the Fund due to balance sheet impairments that have accelerated in the near-term resulting in the need for more capital infusions. In addition, management changes indicate business model stress in this economic environment.
ConocoPhillips has suffered from a litany of items—lower oil and gas prices, Russian market risk (through its stake in LUKOIL) and poor refining and marketing margins—all of which have led to a temporary suspension of their share buyback program. For these reasons, the Fund reduced its position in the stock.
The decline in oil prices negatively affected the stock price of Canadian Oil Sands Trust and Diamond Offshore Drilling. The Fund no longer holds Canadian Oil Sands Trust and the Fund’s position in Diamond Offshore Drilling has been significantly reduced.
KKR Financial Holdings is a leading diversified specialty finance company that is now trading below its stated book value due to investor concerns about possible future loan losses and possible equity dilution if they are forced to issue new shares to offset realized losses. The Fund no longer holds the stock.
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Eagle International Equity Fund | (formerly known as the International Equity Fund) |
Meet the managers | Richard C. Pell is Chief Executive Officer at Artio Global Investors Inc. and Chief Investment Officer at its subsidiary, Artio Global Management LLC (“Artio Global”). Rudolph-Riad Younes, CFA, is Head of International Equities at Artio Global. Messrs. Pell and Younes have managed the Eagle International Equity Fund (the “Fund”) since 2002.
Investment highlights | The Fund invests primarily in foreign equity securities. The Fund’s portfolio managers seek investment opportunities within the developed and emerging markets. In the developed markets, a “bottom-up” approach is adopted. A bottom-up method of analysis emphasizes the outlook at the company and industry level versus reliance on the general economy and/or market trends. In the emerging markets, a “top-down” assessment consisting of currency/interest rate risks, political environments/leadership assessment, growth rates, structural reforms and risk (liquidity) is applied. A top-down method of analysis emphasizes the significance of economy and market cycles. In Japan, given the highly segmented nature of this market comprised of both strong global competitors and protected domestic industries, a hybrid approach encompassing both bottom-up and top-down analyses is conducted.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
Performance summary | The Fund’s class A shares returned -7.98% (excluding front-end sales charges) during the six-month period ended April 30, 2009, underperforming the Fund’s benchmark index, which returned 1.03% during the same period. The Fund’s benchmark index, the Morgan Stanley Capital International® All Country World Index ex-US (“MSCI® ACWI ex- US”), is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. Please keep in mind that an index is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
Performance data represented is historical and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and you may have a gain or loss when you sell shares. Current performance may be higher or lower than the performance data quoted. To obtain more current performance data as of the most recent month-end, please visit our website at eagleasset.com.
On May 13, 2009, the portfolio managers gave the following discussion of the Fund’s performance.
Performance discussion | For most of the reporting period, markets continued to exhibit tremendous volatility amid what has been one of the most difficult investment environments. However, March and April provided much needed relief as the degree of negativity on the news front began to abate. Amid this volatile environment, we have tried our best to steer the Fund’s holdings from areas we foresaw as the most prone to danger and sought refuge in regions, sectors and companies that we believed would be least affected.
From a sector perspective, materials had the largest positive impact on absolute and relative performance. Over the period, the Fund’s allocation to the materials sector was increased as the strategy began to move toward cyclical sectors such as materials amid signs of more encouraging economic data and attractive valuations. Top Fund performers in this sector included Xstrata PLC, Rio Tinto PLC, BHP Billiton PLC (United Kingdom), Rio Tinto Ltd., BHP Billiton Ltd. (Australia) and CRH PLC (Ireland). However, the positive effect on performance from investments in the material sector was outweighed by underperforming positions within the financials, energy and consumer staples sectors.
The Fund’s underperformance to its benchmark index was largely due to the Fund’s lack of positioning within emerging markets as well as Continental Europe. During March and April, investors began to move dramatically toward “risky assets” which included emerging markets as well as more troubled sectors such as financials within developed markets. During this period, due to its more defensive stance, the Fund did not fully participate in this market recovery. Additionally, the position held in cash equivalents hurt results.
Within emerging markets, the Fund’s underweight position in Asia and Brazil negatively impacted relative returns as performance in these markets outperformed the benchmark index. Within emerging Europe, OTP Bank, Hungary’s largest lender, underperformed, as did Bank Polska Kasa Opieki (Poland) and Komercni Banka (Czech Republic). Although the
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Eagle International Equity Fund (cont’d) |
Fund’s allocation to Poland, Hungary and the Czech Republic is much lower than in previous periods, the Fund’s overweight position versus the benchmark index hurt performance as companies in this region, especially those in the finance sector, felt the impact of the global credit crunch.
In Continental Europe, the Fund’s underweight position compared to its benchmark index in financials had a negative impact as the sector began to rally in early March as sentiment began to shift. Also, stock selection within energy and consumer staples detracted from performance.
The Fund benefited from its continued underweight investment in the United Kingdom (“UK”), particularly within the banking
sector. UK financials underperformed the rest of Europe over the period and the Fund’s large avoidance of the sector supported relative results.
Detracting from absolute returns was the Fund’s investment in Lyxor ETF DJ Stoxx 600 Banks. This index position, initially established to gain broad-based financial exposure, was ultimately sold and individual positions were purchased within the sector. Another ETF which detracted from results was the iShares MSCI Korea Index Fund. Given our interest in emerging Asia, we initially purchased this ETF for broad exposure. However, individual positions were ultimately purchased and the ETF was sold.
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Eagle Large Cap Core Fund | (formerly known as the Core Equity Fund) |
Meet the managers | Richard Skeppstrom, John “Jay” Jordan, CFA, Craig Dauer, CFA, and Robert Marshall at Eagle Asset Management, Inc. (“Eagle”) have been Co-Portfolio Managers of the Eagle Large Cap Core Fund (the “Fund”) since inception. Mr. Skeppstrom is a Managing Director at Eagle and has 18 years of investment experience. Mr. Jordan, Mr. Dauer and Mr. Marshall have 18, 15 and 22 years of investment experience, respectively.
Investment highlights | The Fund invests primarily in common stocks. When identifying investments for the Fund, the portfolio managers use a “bottom-up” research process that is combined with a proprietary relative-valuation discipline. A bottom-up method of analysis emphasizes the outlook at the company and industry level versus reliance on the general economy and/or market trends. In general, the portfolio managers seek to select securities, that, at the time of purchase, have above-average expected returns and at least one of the following characteristics: projected earnings growth rate at or above the benchmark index, above-average earnings quality and stability, or a price-to-earnings ratio comparable to the benchmark index.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
Performance summary | The Fund’s class A shares returned -4.12% (excluding front-end sales charges) during the six-month period ended April 30, 2009, outperforming the Fund’s benchmark index, which returned -8.53% during the same period. The Fund’s benchmark index, the Standard & Poor’s 500 Composite Stock Index (“S&P 500 Index”), is an unmanaged index of 500 U.S. stocks and gives a broad look at how stock prices have performed. Please keep in mind that an index is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
Performance data represented is historical and does not guarantee future results. The investment return and
principal value of an investment will fluctuate, and you may have a gain or loss when you sell shares. Current performance may be higher or lower than the performance data quoted. To obtain more current performance data as of the most recent month-end, please visit our website at eagleasset.com.
On May 13, 2009, the portfolio managers gave the following discussion of the Fund’s performance.
Performance discussion | The Fund experienced strong absolute returns in the telecommunication services, consumer discretionary, consumer staples, and technology sectors. Relative to the benchmark index, the Fund outperformed in the consumer discretionary, financials, telecommunication services, consumer staples and information technology sectors. In the consumer discretionary sector, the Fund benefited from its overweight position and stock selection. In the financials and telecommunication services sectors, outperformance arose from positive stock selection. In the consumer staples sector, the Fund’s underweight position and positive stock selection led to outperformance relative to the benchmark.
Detractors from absolute returns during the period included positions in the healthcare, financials, industrials, and energy sectors. Relative to the benchmark index, the Fund underperformed in the healthcare, materials, and energy sectors. In the healthcare sector, underperformance was due to stock selection. Underperformance in the materials sector was due to a lack of Fund exposure to this strong-performing sector. The slight underperformance in energy was mostly from stock selection.
Top performers | Sprint Nextel Corporation rebounded during the period as liquidity fears were quelled while subscriber loss trends stabilized. The Fund added to its position in Sprint in November as liquidity fears, which we believed were inaccurate, drove the stock price to a meaningful discount to the underlying asset value of the business.
The Fund added a position in retailer Macy’s Inc. in February, when we thought concerns about a near-term bankruptcy were overblown. The stock price later rose as the market determined that no bankruptcy was imminent, and as the decline in consumer spending moderated in the spring. The Fund continues to hold the stock, as we see a potential rise in the share price when the economy improves.
Shares in investment bank Morgan Stanley rebounded in the period as the panic of October 2008 subsided. The stock was extremely undervalued by all measures, especially given its relatively limited exposure to the worst of the toxic assets.
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Subsequent to the end of the reporting period, the Fund sold the position for a healthy gain.
Specialty retailer Staples, Inc. demonstrated remarkable resilience in the face of the recent market swoon. The company remains very well positioned in the global office supplies space, and continues to gain market share at the expense of its financially stressed rivals. The company enjoys robust free cash generation, despite the global slowdown, and has successfully refinanced a large portion of its debt over the past several months. The Fund continues to hold the security.
While Wells Fargo & Company’s stock price collapsed with the rest of the banks early in the reporting period, it rebounded well from its lows. The Fund increased its position at the market bottom in early March.
Under performers | JPMorgan Chase got caught up in the banking sector collapse. Although the company outperformed its peers, the financial sector was the worst performing sector in the benchmark index.
Genzyme Corporation, a biotechnology firm, underperformed due to regulatory delays in the United States regarding the approval of Lumizyme, a new drug which has already been approved in Europe. The stock also suffered from concerns about how Genzyme presents its non-GAAP earnings, though we believe these were largely addressed at the company’s
early May analyst meeting. The Fund reduced its position in December, based on relative valuation.
Shares of drug maker Pfizer Inc. underperformed as investors felt that its planned acquisition of Wyeth confirmed the belief that Pfizer is growth-challenged. Concurrent with the acquisition announcement, Pfizer lowered its standalone 2009 earnings guidance, and reduced its dividend in half. Although pharmaceutical mergers driven by cost-cutting have not benefitted shareholders in the past, this one does strengthen our opinion that Pfizer can maintain a solid earnings per share through Lipitor’s loss of exclusivity in the U.S. in 2011. The Fund maintains its position in the company as we continue to see Pfizer shares as attractive based on this outlook.
General Electric underperformed due to the combination of credit fears at its General Electric Capital Corporation unit and lower earnings in its industrial businesses due to a global economic slowdown. The Fund continues to hold the stock.
Bank of America’s stock price suffered as its acquisition of Merrill Lynch significantly impaired its capital. This acquisition further compounded the impact of the banking industry collapse. The Fund sold the stock in April following the company’s disconcerting first quarter report and the risk of forced conversion of government-owned preferred shares which would be massively dilutive and highly disruptive.
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Eagle Mid Cap Growth Fund | (formerly known as the Diversified Growth Fund) |
Meet the managers | Bert L. Boksen, CFA, a Managing Director and Senior Vice President at Eagle Asset Management, Inc. (“Eagle”), is the Portfolio Manager of the Eagle Mid Cap Growth Fund (the “Fund”). Mr. Boksen has 32 years of investment experience. Christopher Sassouni, DMD, with 20 years of investment experience and Eric Mintz, CFA, with 14 years of investment experience, have been Assistant Portfolio Managers since 2006 and 2008, respectively.
Investment highlights | The Fund invests primarily in stocks of mid-capitalization companies. The Fund’s portfolio managers seek to capture the significant long-term capital appreciation potential of mid-cap, rapidly growing companies. The portfolio managers use a “bottom-up” investment approach through a proprietary research strategy that emphasizes the selection of mid-cap growth stocks that are reasonably priced. A bottom-up method of analysis emphasizes the outlook at the company and industry level versus reliance on the general economy and/or market trends. The Fund’s portfolio managers believe that conducting extensive research on mid cap companies may enable the Fund to capitalize on market inefficiencies and thus outperform the market.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
Performance summary | The Fund’s class A shares returned -0.38% (excluding front-end sales charges) during the six-month period ended April 30, 2009, underperforming the Fund’s benchmark index, which returned 2.71% during the same period. The Fund’s benchmark index, the Russell Midcap® Growth Index, measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. Please keep in mind that an index is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
Performance data represented is historical and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and you may have a gain or loss when you sell shares. Current performance may be higher or lower than the performance data quoted. To obtain more current performance data as of the most recent month-end, please visit our website at eagleasset.com.
On May 11, 2009, the portfolio managers gave the following discussion of the Fund’s performance.
Performance discussion | Over the six-month reporting period, the Fund underperformed its benchmark index. The Fund’s positions lagged the benchmark index in the information technology, industrials, materials, and healthcare sectors. In information technology, industrials and materials, the Fund’s holdings in more defensive, non-cyclical investments lagged the benchmark index during the strong rally starting in March. In healthcare, the Fund’s biotechnology investment disappointed. The Fund outperformed in the energy and consumer discretionary sectors due to strong stock selection.
On an absolute basis, the Fund’s return was pulled down by the investments in the materials, industrials and healthcare sectors. Absolute returns were driven higher by stocks in the consumer discretionary and energy sectors.
Under performers | Biotechnology company, Celgene Corporation, traded down during the reporting period after it pre-announced lower than expected revenue. The sudden slowdown in sales was unexpected since the company produces a life saving therapy for a difficult to treat form of cancer. The Fund continues to hold the stock as we believe sales of the company’s lead drug will rebound as consumers cannot postpone treatment for extended periods of time.
Chemical producer, Huntsman Corporation, declined after the company settled its lawsuit against Hexion Specialty Chemicals Inc. for a lower amount than expected and started to show signs of suffering from the broad economic slowdown. The Fund continues to hold the stock because we believe the company now has enough cash to weather the economic storm and may be a strong performer in a recovery.
CF Industries is a fertilizer producer whose stock sold off sharply with other agricultural names due to fears about the global growth slowdown during the fourth quarter of 2008. The Fund’s position in the stock was sold.
We sold Cliffs Natural Resources, a producer of iron ore, from the Fund’s portfolio. The company reported better-than-
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Performance Summary and Commentary | ||
Eagle Mid Cap Growth Fund (cont’d) |
expected fourth quarter earnings but concerns about weak growth expectations due to an increased cost outlook for 2009 pressured the stock price.
Corrections Corporation of America owns, operates and manages prisons and other correctional facilities. Despite strong fourth quarter 2008 earnings, the company offered muted revenue guidance for 2009. The Fund’s position in the stock was sold.
Top performers | Penn National Gaming, Inc. owns and operates casinos and horse racing facilities. The Fund purchased the stock after a substantial decline caused by the termination of the company’s proposed acquisition by a group of affiliates (Fortress Investment and Centerbridge Partners). Since then the company has reported inline or solid earnings and we believe the company is positioned for growth given its strong balance sheet and extensive, funded development pipeline. For these reasons, the Fund continues to hold the stock.
Netflix, Inc., an online DVD rental service, appreciated significantly after it beat earnings and revenue expectations and issued strong guidance. The Fund continues to hold the stock
as we believe Netflix is poised to continue to increase market share because consumers seem to favor renting over ownership in an environment of evolving formats (DVD vs. BluRay).
Denbury Resources, an exploration-and-production company, benefited from organic reserve growth despite the challenging commodity-price environment. The Fund continues to hold the stock because the company has developed a significant competitive advantage in producing oil from mature fields which we believe will lead to a higher stock price.
Freeport-McMoRan Copper & Gold appreciated due to the more positive outlook for copper prices. The Fund continues to hold the stock because we expect continued strength as the company has carefully managed costs, is poised for growth once the economic cycle improves and has a strong balance sheet that we believe can weather changing commodity prices.
Luxury goods producer, Coach Inc., traded up during the reporting period after exceeding revenue and earnings expectations. We continue to hold the stock in the Fund due to its appealing relative valuation, strong balance sheet, and cost cutting initiatives that we believe should lead to improved margins.
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Performance Summary and Commentary | ||
Eagle Mid Cap Stock Fund | (formerly known as the Mid Cap Stock Fund) |
Meet the managers | Todd L. McCallister, Ph.D., CFA, is a Managing Director and Senior Vice President at Eagle Asset Management, Inc. (“Eagle”) and Co-Portfolio Manager of the Eagle Mid Cap Stock Fund (the “Fund”). Mr. McCallister has 22 years of investment experience and has managed the Fund since its inception. Stacey Serafini Thomas, CFA, is a Vice President at Eagle and served as Assistant Portfolio Manager to the Fund from 2000 to 2005, before being named Co-Portfolio Manager. Ms. Thomas has more than 12 years of investment experience.
Investment highlights | The Fund invests primarily in stocks of mid-capitalization companies. The portfolio managers of the Fund employ a “bottom-up” stock-selection process to identify growing, mid-cap companies that are reasonably priced. A bottom-up method of analysis emphasizes the outlook at the company and industry level versus reliance on the general economy and/or market trends. The portfolio managers seek to gain a comprehensive understanding of a company’s management, business plan, financials, real rate of growth and competitive threats and advantages.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
Performance summary | The Fund’s class A shares returned -3.11% (excluding front-end sales charges) during the six-month period ended April 30, 2009, underperforming the Fund’s benchmark index, which returned -0.19% during the same period. The Fund’s benchmark index, the Standard & Poor’s MidCap 400 Index (“S&P MidCap 400”), is an unmanaged index that measures the performance of the mid-sized company segment of the U.S. market. Please keep in mind that an index is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
Performance data represented is historical and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and you may
have a gain or loss when you sell shares. Current performance may be higher or lower than the performance data quoted. To obtain more current performance data as of the most recent month-end, please visit our website at eagleasset.com.
On May 11, 2009, the portfolio managers gave the following discussion of the Fund’s performance.
Performance discussion | In terms of absolute returns, during the reporting period, investments in the information technology and consumer discretionary sectors led the way due to positive stock selection in the information technology services and hotel/leisure industries. Holdings in the healthcare and telecommunication services sectors detracted from the Fund’s performance as the Fund’s overweight positions in healthcare providers and wireless services were negative as a group. Even though Fund positions in the consumer discretionary sector contributed positively to absolute returns, investments in this sector were the largest detractors to relative performance compared to the benchmark index. This was primarily due to underweight positions, relative to the benchmark index, in the specialty retail and diversified consumer services industries which performed very well during a market rally in March and April. Stock selection in the industrials sector also hurt relative performance mainly due to four holdings in the commercial services and supplies industry. The Fund’s underweight position versus the benchmark index in the financials and utilities sectors were the largest contributors to relative performance during the reporting period.
Under performers | Pactiv Corporation’s stock price suffered during the reporting period due to concerns regarding sales and the potential underfunding of the company’s pension plan. While the company’s packaging business is in good shape for 2009 given declining raw material input costs, we believe that the stock’s return this year will likely be more correlated with the direction of the overall stock market. Therefore, the Fund continues to hold the stock.
Service Corporation International Inc. is the largest single provider of funeral, cremation and cemetery services in the United States. Its stock price traded lower throughout 2008 despite the relative stability of its business model. We sold the position out of the Fund because we believe pre-death purchases of cemetery plots and coffins will be significantly weaker; further, potential investment write-downs may necessitate a capital infusion.
Unum Group, a provider of disability and group life insurance for corporations, traded down and was sold out of the Fund’s portfolio after an article was published questioning the
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Performance Summary and Commentary | ||
Eagle Mid Cap Stock Fund (cont’d) |
company’s reliance on employment levels at its corporate customers in light of the deteriorating job market. Furthermore, at the time of its fourth quarter earnings release, the CFO stepped down.
NCR Corporation helps companies interact with their customers in different ways. Their main focuses are ATMs, point-of-sales systems, and self-service kiosks. The Fund sold the stock after weakness in the retail sector and unfavorable currency translation as the company continues to wrestle with a difficult economic environment, which is reducing demand for its products and services.
Owens-Illinois, Inc. is the world’s largest maker of glass containers and one of the largest overall packaging manufacturers. The company’s stock sold off after concerns of inflation and poor sales in Europe. We believe inflationary concerns actually may put the company at a competitive advantage over lower-margin, U.S. market-oriented glass companies. Owens-Illinois trades at what we consider to be very attractive multiples and we continue to believe in its potential for strong earnings, free-cash-flow generation and margin expansion. The Fund continues to hold the stock.
Top performers | Celanese Corporation is a chemicals producer that has a market leading position in most of the products that it sells. It is the world’s largest producer of acetyls, including acetic acid, vinyl acetate monomer and polyacetyls. The company has a high free-cash-flow yield and was trading at what we felt was a very cheap valuation before the Fund purchased it. The company had problems with inventory destocking at the end of last year which seem to be over and their end markets also are showing signs of improving. The Fund continues to hold this stock.
Penn National Gaming, Inc. has done very well beating the most recent earnings estimates during a tough environment for gaming stocks. Investors became very weary of discretionary stocks like gaming, yet they soon realized that regional casinos with strong balance sheets should trade at a premium to the group. The Fund continues to hold this stock.
Adobe Systems is a very strong software franchise that the Fund purchased recently after the stock price declined to the point that the company became a mid-cap firm again. This is a good example of a stock that has fallen into our market capitalization range, yet there are no apparent fundamental problems with the business. After purchase, Adobe became our top performer in the information technology sector. The Fund continues to hold Adobe Systems.
CME Group, the world’s largest derivatives exchange, rallied throughout the end of the reporting period as the volume of contracts has continued to trend up from the beginning of the year. Although volumes are still lower than last year, the increasing trend was encouraging. In addition, Clearport, the company’s clearing system for over-the-counter energy swaps is growing at a tremendous pace (over 40 % compared to last year) as counterparties are trying to mitigate bilateral risk. The Fund sold the stock after a nice increase.
DIRECTV Group has benefitted as consumers have been hurt by the economy and have chosen to spend more nights in and fewer nights going out. Therefore, the company has seen an increase in subscriber growth and had a lower churn of subscribers compared to competitors. Their football and baseball viewing packages have been a major boon for them. The Fund continues to hold this position.
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Performance Summary and Commentary | ||
Eagle Small Cap Core Value Fund |
Meet the managers | David M. Adams, CFA, Lead Portfolio Manager, and John “Jack” McPherson, CFA, Co-Portfolio Manager, are Managing directors at Eagle Boston Investment Management, Inc. (“EBIM”) and have been responsible for the day-to-day management of the Eagle Small Cap Core Value Fund (the “Fund”) since its inception. Both Mr. Adams and Mr. McPherson have 19 years of investment experience.
Investment highlights | The Fund invests primarily in equity securities of small-capitalization companies. Using a value approach to investing, the Fund’s portfolio managers seek to capture capital growth by selecting securities that the portfolio managers believe are selling at a discount relative to their underlying value and then hold them until their market value reflects their intrinsic value. To assess value, a “bottom-up” method of analysis is utilized. A bottom-up method of analysis emphasizes the outlook at the company and industry level versus reliance on the general economy and/or market trends. Other factors that the portfolio managers may look for when selecting investments include: management with demonstrated ability and commitment to the company, above-average potential for earnings and revenue growth, low debt levels relative to total capitalization and strong industry fundamentals.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
Performance summary | The Fund’s class A shares returned -4.90% (excluding front-end sales charges) from November 3, 2008 (commencement of operations) to April 30, 2009, outperforming the Fund’s benchmark index, which returned -8.40% during the same period. The Fund’s benchmark index, the Russell 2000® Index, is an unmanaged index comprised of the 2,000 smallest companies in the Russell 3000® Index. The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization. Please keep in mind that an index is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
Performance data represented is historical and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and you may have a gain or loss when you sell shares. Current performance may be higher or lower than the performance data quoted. To obtain more current performance data as of the most recent month-end, please visit our website at eagleasset.com.
On May 13, 2009, the portfolio managers gave the following discussion of the Fund’s performance.
Performance discussion | On an absolute basis, sectors that helped performance for the Fund included materials, information technology, consumer discretionary, and energy. The Fund benefitted from its precious metals exposure in materials, the best industry for the period. Software industry holdings helped the information technology sector’s outperformance, as license revenue was stronger than expected for most companies. The Fund’s exposure to consumer durables and consumer service industries helped provide outperformance within consumer discretionary sector. The Fund had solid returns in the oil service industry of the energy sector.
Sectors that detracted from on Fund performance included: telecommunication services, a sector hurt mostly by stock selection; healthcare, particularly in the pharmaceutical industry; and consumer staples, primarily holdings in the household and personal products industries which were hurt by a strong U.S. dollar, effectively slowing international sales and earnings growth.
From the Fund’s commencement of operations on November 3, 2008 to April 30, 2009, the Fund outperformed its benchmark index. Sectors that provided positive relative performance included financials, energy, materials, industrials, and information technology. The Fund benefitted from an underweight position in the underperforming financials sector as well as some strong stock selections within the bank and insurance industries. In spite of an overweight position in the energy sector, the Fund outperformed with strong stock selection, particularly in the oil service industry. Strong stock selection in the materials sector, particularly in precious metals, compensated for the Fund’s underweight position and contributed to relative outperformance. The Fund’s underweight position in the industrials sector lead to outperformance as the sector underperformed the benchmark. The Fund’s overweight position and strong stock selection in the software industry lead to outperformance in the information technology sector.
The Fund had negative relative performance in the consumer discretionary and telecommunication services sectors, both of which were negatively affected by stock selection.
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Performance Summary and Commentary | ||
Eagle Small Cap Core Value Fund (cont’d) |
Top performers | URS Corporation is an engineering, construction and technical services firm serving many industries and government entities. They have had a significant number of new contracts, coupled with the widespread belief that the company would benefit through design work in conjunction with the Obama administration’s stimulus package focus on infrastructure. The Fund continues to hold the stock.
IAMGOLD Corporation is in the precious metal, primarily gold, exploration and production business worldwide. They have benefited from the rise in gold prices, as well as some key acquisitions that should help grow their gold production over the next few years. The Fund continues to hold a position in the company’s stock.
Oceaneering International, Inc., an oilfield equipment and services company, appreciated as a relatively strong fundamental outlook offset negative investor sentiment toward energy stocks. We believe the company’s position in the deep offshore market, where contracts tend to be longer term in nature, and less commodity price sensitive in the near term, is particularly positive for the stock. The Fund continues to hold its position in the stock.
Stage Stores, Inc. operates specialty department stores in 38 states, focusing mainly on small, under-served markets. The stock was oversold when compared to their long-term prospects, and subsequently appreciated significantly with the stabilization of same store sale trends and consumer spending in their markets. The Fund continues to hold the stock.
Euronet Worldwide, Inc. is a company that provides electronic payment services internationally. The company executed their business plan well, despite difficult economic and foreign exchange issues. Continued solid cash flow and debt repayment helped the stock price. The Fund continues to hold its position in the stock.
Under performers | On Assignment, Inc., a professional staffing firm, suffered from a slowdown across several lines of business
during the period, following a record month in October 2008. The Fund continues to hold the stock as management has demonstrated the ability to cut costs in order to remain profitable in their industry’s downturn.
Psychiatric Solutions, Inc. is a provider of inpatient behavioral health care services. After reporting its earnings for the fourth quarter of 2008, the company guided 2009 earnings estimates down slightly, and investors sold the stock heavily. The Fund added to its position, firmly believing the reaction was not commensurate with the company’s valuation and fundamentals.
1-800-Flowers.com Inc. operates as a gift retailer, primarily in the floral business and through the internet. Like many consumer companies, 1-800-Flowers revenues have slowed dramatically, but the Fund continues to hold the position as management’s ability to cut costs should allow them to remain profitable through the trough of their business.
Apollo Investment Corporation is a business development fund specializing in middle market company investments. As the credit crisis widened, many of Apollo’s investments were marked down. The position of Apollo in the Fund was trimmed during this period, but not sold outright.
Cubist Pharmaceuticals, Inc. is a biopharmaceutical company with the drug Cubicin as its primary source of revenue, which is growing over 25% on a 2009 revenue estimate. Shares have come under pressure due to a patent infringement case Cubist has filed against Teva Pharmaceutical Industries Ltd. We believe the fears surrounding the patent case are overdone and continue to maintain the stock in the Fund.
Other factors | The Fund commenced operations on November 3, 2008, starting with no assets. Subscriptions in the Fund spiked in March, when the Fund’s size grew from approximately $5 million to over $40 million. Given the extreme intra-day volatility during many of the high inflow days, security purchase costs were affected in both positive and negative ways, depending on the market direction of the day.
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Performance Summary and Commentary | ||
Eagle Small Cap Growth Fund | (formerly known as the Small Cap Stock Fund) |
Meet the managers | Bert L. Boksen, CFA, a Managing Director and Senior Vice President at Eagle Asset Management, Inc. (“Eagle”), has been responsible for the management of the Eagle Small Cap Growth Fund (the “Fund”) since 1995. Mr. Boksen has 32 years of investment experience. Eric Mintz, CFA, has 14 years of investment experience and has been Assistant Portfolio Manager since 2008.
Investment highlights | The Fund invests primarily in stocks of small-capitalization companies. Using a “bottom-up” approach, the Fund’s portfolio managers seek to capture the significant long-term capital appreciation potential of small, rapidly growing companies. A bottom-up method of analysis emphasizes the outlook at the company and industry level versus reliance on the general economy and/or market trends. The portfolio managers also look for small-cap growth companies that are reasonably priced. Since small-cap companies often have narrower markets than large-cap companies, the portfolio managers believe that conducting extensive proprietary research on small-cap growth companies may enable the Fund to capitalize on market inefficiencies and thus outperform the market.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
Performance summary | The Fund’s class A shares returned -6.22% (excluding front-end sales charges) during the six-month period ended April 30, 2009. The Fund underperformed its primary benchmark index, the Russell 2000® Growth Index, which returned -3.77% and outperformed its secondary benchmark index, the Russell 2000® Index, which returned -8.40% during the reporting period. Effective November 1, 2008, the Fund replaced its benchmark index, the Russell 2000® Index, with the Russell 2000® Growth Index. When evaluating long term performance, the Fund’s portfolio managers believe the Russell 2000® Growth Index better reflects the investment style of the Fund. The Russell 2000® Growth Index is an unmanaged index comprised of Russell
2000® companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000® Index is an unmanaged index comprised of the 2,000 smallest companies in the Russell 3000® Index. The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization.
Performance data represented is historical and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and you may have a gain or loss when you sell shares. Current performance may be higher or lower than the performance data quoted. To obtain more current performance data as of the most recent month-end, please visit our website at eagleasset.com.
On May 11, 2009, the portfolio managers gave the following discussion of the Fund’s performance.
Performance discussion | On an absolute basis, the Fund’s negative return was primarily due to holdings in the healthcare sector (the highest weighted sector in the Fund and index) followed by investments in the financials sector. Positive contributors to absolute returns were investments in information technology (the second highest weighted sector) followed by the Fund’s holdings in the consumer discretionary sector.
Stock selection in the financials and healthcare sectors were the primary contributors to the Fund’s underperformance relative to its benchmark index. One of the Fund’s positions in the commercial banks industry pulled down returns in the financials sector. In the healthcare sector, the Fund’s clinical research organization investment dragged returns down. Relative to its benchmark index, the Fund outperformed in the industrials and energy sectors. In both sectors, the Fund’s positioning relative to the benchmark magnified strong stock selection.
The portfolio turnover rate for this reporting period was 93% compared to 51% for the fiscal year ended October 31, 2008. A major factor in the turnover increase is the repositioning that occurred during the early portion of the reporting period, due to the Fund taking over the half of the portfolio that was previously managed by Eagle Boston Investment Management, Inc.
Under performers | ICON PLC is a contract-research organization that declined along with its competitors due to concerns that a tight market for biotech funding would decrease the group’s earnings. The Fund continues to hold the stock because we believe ICON is a leader in the contract research space and that the vast majority of its clients are well-capitalized.
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Performance Summary and Commentary | ||
Eagle Small Cap Growth Fund (cont’d) |
Lufkin Industries, Inc., a producer of oil pump-jack units, suffered during the fourth quarter of 2008 due to the continued decline in oil prices which could negatively impact demand for the company’s products. The Fund continues to hold the stock as the company has a large backlog, is the supplier of choice in the Bakken Shale region and also has exposure to wind energy, which we believe will become a key source of energy in the future.
SVB Financial Group is a niche bank that disclosed information about a $69M troubled loan with a venture capital fund-of-funds client. Given the weakening economic conditions and a more difficult environment for fundraising, the Fund sold the stock.
OYO Geospace Corporation is a provider of seismic equipment for oil companies. OYO Geospace had been a big winner in previous reporting periods and the Fund trimmed some of its position at much higher prices; however, the stock price declined during the reporting period due to delays in receiving anticipated contracts. The Fund continues to hold the stock as we believe that, after the delays, the company’s new seismic products will be well-received.
Waste Connections, Inc., a provider of solid waste disposal services, declined during the reporting period due to lower than expected volumes throughout the industry. The Fund continues to hold the stock as we believe that the company may benefit from the Allied Waste Industries Inc./Republic Services Inc. merger.
Top performers | Macrovision Solutions Corporation, a provider of solutions that enable digital-product protection, exceeded earnings and revenue expectations during the reporting period.
We remain optimistic about the company as we believe strong trends in the company’s core business plus new product opportunities make Macrovision uniquely positioned for growth despite the economic downturn.
Casual diner, BJ’s Restaurants, Inc., has proven resilient in a difficult macro environment and remains a Fund holding. The company has had strong performance relative to other restaurant chains despite high exposure to states heavily impacted by housing issues. This should bode well for performance once those housing markets stabilize. We believe that easier year over year comparisons and increasing sales combined with moderating costs will continue to drive the stock.
FTI Consulting, Inc. is a leader in bankruptcy consulting services. The company has benefited from the bankruptcy cycle resulting in better than expected earnings. The Fund continues to hold the stock as we believe bankruptcy filings in this economic cycle have yet to peak.
Quality Systems, Inc. markets information-processing systems to medical and dental group practices. The stock remains in the Fund as the company has exceeded revenue and profit expectations and is poised to benefit from President Obama’s plans for investment in healthcare information technology systems.
Shares in Netflix, Inc., an online DVD rental service, appreciated significantly after the company beat earnings and revenue expectations and issued strong guidance. The Fund continues to hold the stock as we believe Netflix is poised to continue to increase market share because consumers seem to favor renting over ownership in an environment of evolving formats (DVD vs. BluRay).
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Investment Portfolios
UNAUDITED | 04.30.2009 |
Common stocks—98.3% (a) | Shares | Value | ||||
Telecommunications—17.2% | ||||||
American Tower Corporation, Class A* | 741,450 | $23,548,452 | ||||
Crown Castle International Corporation* | 1,263,828 | 30,989,063 | ||||
QUALCOMM Inc. | 380,540 | 16,104,452 | ||||
Total common stocks (cost $415,024,950) | 403,783,709 | |||||
Repurchase agreement—1.1% (a) | ||||||
Repurchase agreement with Fixed Income Clearing Corporation dated April 30, 2009 @ 0.06% to be repurchased at $4,514,008 on May 1, 2009, collateralized by $4,675,000 United States Treasury Notes, 1.875% due February 28, 2014 (market value $4,663,233 including interest) (cost $4,514,000) | 4,514,000 | |||||
Total investment portfolio (cost $419,538,950) 99.4% (a) | 408,297,709 | |||||
Other assets and liabilities, net, 0.6% (a) | 2,655,560 | |||||
Net assets, 100.0% | $410,953,269 | |||||
* Non-income producing security. | ||||||
(a) Percentages indicated are based on net assets. | ||||||
ADR—American depository receipt. |
Sector allocation | ||
Sector | Percent of net assets | |
Consumer, non-cyclical | 26% | |
Communications | 24% | |
Technology | 17% | |
Consumer, cyclical | 10% | |
Energy | 9% | |
Financial | 9% | |
Industrial | 3% | |
Cash/Other | 2% |
The accompanying notes are an integral part of the financial statements. | 19 |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE GROWTH & INCOME FUND (cont’d) | ||||||
Common stocks—78.9% (a) | Shares | Value | ||||
Computers—4.8% | ||||||
Apple Inc.* | 15,810 | $1,989,372 | ||||
Dell Inc.* | 212,800 | 2,472,736 | ||||
Electric—1.7% | ||||||
Entergy Corporation | 24,900 | 1,612,773 | ||||
Financial services—2.1% | ||||||
The Charles Schwab Corporation | 108,700 | 2,008,776 | ||||
Food—2.8% | ||||||
Kraft Foods Inc., Class A | 36,528 | 854,755 | ||||
Sysco Corporation | 76,000 | 1,773,080 | ||||
Healthcare products—1.0% | ||||||
Varian Medical Systems Inc.* | 27,588 | 920,612 | ||||
Insurance—3.5% | ||||||
Cincinnati Financial Corporation | 16,241 | 388,972 | ||||
Hartford Financial Services Group, Inc. | 103,500 | 1,187,145 | ||||
The Allstate Corporation | 74,520 | 1,738,552 | ||||
Oil & gas—1.9% | ||||||
ConocoPhillips | 31,800 | 1,303,800 | ||||
Diamond Offshore Drilling, Inc. | 6,600 | 477,906 | ||||
Pharmaceuticals—2.9% | ||||||
Eli Lilly & Company | 81,975 | 2,698,617 | ||||
REIT—1.8% | ||||||
Chimera Investment Corporation | 484,000 | 1,708,520 | ||||
Retail—3.2% | ||||||
McDonald’s Corporation | 55,700 | 2,968,253 | ||||
Software—3.1% | ||||||
Microsoft Corporation | 141,100 | 2,858,686 | ||||
Telecommunications—1.3% | ||||||
AT&T Inc. | 47,200 | 1,209,264 | ||||
Television, cable & radio—1.9% | ||||||
Comcast Corporation, Class A | 122,100 | 1,792,428 | ||||
Total domestic (cost $55,824,959) | 46,358,307 | |||||
Foreign—29.3% (b) | ||||||
Computers—1.4% | ||||||
Research In Motion Ltd.* | 18,100 | 1,257,950 | ||||
Entertainment—3.0% | ||||||
OPAP SA | 91,545 | 2,839,130 | ||||
Financial services—2.9% | ||||||
Bolsas y Mercados Espanoles | 38,300 | 1,067,692 | ||||
Hong Kong Exchanges and Clearing Ltd. | 133,000 | 1,529,416 | ||||
Redecard SA* | 12,300 | 154,807 | ||||
Insurance—3.5% | ||||||
ACE Ltd. | 62,445 | 2,892,452 | ||||
AXA SA | 22,000 | 366,596 | ||||
Internet—1.7% | ||||||
Baidu Inc., Sponsored ADR* | 6,800 | 1,583,720 | ||||
Oil & gas—2.4% | ||||||
ENI SpA | 63,000 | 1,365,326 | ||||
Total SA | 18,000 | 900,146 | ||||
Telecommunications—14.4% | ||||||
Amdocs Ltd.* | 109,000 | 2,281,370 | ||||
China Mobile Ltd. | 189,000 | 1,628,280 | ||||
France Telecom SA | 17,466 | 387,568 | ||||
Nokia Oyj | 121,400 | 1,730,254 | ||||
Telefonica SA | 165,500 | 3,142,471 | ||||
Telstra Corporation Ltd. | 1,116,400 | 2,701,773 |
Common stocks—78.9% (a) | Shares | Value | ||||
Vodafone Group PLC | 887,535 | $1,630,242 | ||||
Total foreign (cost $29,649,037) | 27,459,193 | |||||
Total common stocks (cost $85,473,996) | 73,817,500 | |||||
Preferred stocks—1.6% (a) | ||||||
Banks—1.4% | ||||||
Bank of America Corporation, 3.0%, Series H | 60,000 | 495,000 | ||||
Fifth Third Bancorp, 8.50%, Series G (convertible) | 14,200 | 822,038 | ||||
Financial services—0.2% | ||||||
CIT Group Inc., 8.75%, Series C (convertible) | 9,400 | 150,494 | ||||
Total preferred stocks (cost $2,428,343) | 1,467,532 | |||||
Corporate bonds—10.4% (a) | Principal amount | Value | ||||
Agriculture—1.3% | ||||||
Altria Group Inc., 9.70%, 11/10/18 | $1,000,000 | 1,168,541 | ||||
Banks—1.1% | ||||||
Fifth Third Capital Trust IV, 6.50% to 04/15/17, floating rate to 04/15/67 | 1,059,000 | 381,240 | ||||
USB Capital IX, 6.189% to 04/15/11, floating rate to 04/15/42 | 1,121,000 | 622,155 | ||||
Electric—1.3% | ||||||
Atlantic City Electric Company, 7.75%, 11/15/18 | 250,000 | 275,216 | ||||
Entergy Gulf States, 6.0%, 05/01/18 | 1,000,000 | 919,721 | ||||
Financial services—4.8% | ||||||
CIT Group Inc., 5.0%, 02/13/14 | 130,600 | 73,140 | ||||
CIT Group Inc., 5.0%, 02/01/15 | 191,800 | 105,492 | ||||
CIT Group Inc., 5.40%, 01/30/16 | 377,700 | 198,636 | ||||
CIT Group Inc., 5.85%, 09/15/16 | 105,200 | 56,412 | ||||
CIT Group Inc., 6.10% to 3/15/17, floating rate to 03/15/67 | 254,000 | 59,629 | ||||
General Electric Capital Corporation, 6.375% to 11/15/17, floating rate to 11/15/67 | 1,571,000 | 901,743 | ||||
Glen Meadow Pass Through Trust, 144A, 6.505% to 02/15/17, floating rate to 02/12/67 | 1,359,000 | 469,722 | ||||
Goldman Sachs Capital II, 5.793% to 06/01/12, floating rate to 06/01/43 | 1,861,000 | 920,436 | ||||
Goldman Sachs Capital III, FRN, 2.03%, 09/01/43 | 552,000 | 237,360 | ||||
JPMorgan Chase Capital XXI, FRN, 2.12%, 01/15/87 | 559,000 | 237,938 | ||||
JPMorgan Chase Capital XXIII, FRN, 2.24%, 05/15/77 | 1,564,000 | 661,439 | ||||
Swiss Reinsurance Capital I LP, 144A, 6.854% to 05/25/16, floating rate to 12/29/49 | 1,550,000 | 612,250 | ||||
Insurance—1.5% | ||||||
Hartford Financial Services Group Inc., 8.125% to 06/15/18, floating rate to 06/15/68 | 1,840,000 | 745,200 | ||||
MetLife Capital Trust X, 144A, 9.25% to 04/08/38, floating rate to 04/08/68 | 1,000,000 | 640,000 | ||||
Retail—0.4% | ||||||
Rite Aid Corporation, 10.375%, 07/15/16 | 417,000 | 358,620 | ||||
Rite Aid Corporation, 7.50%, 03/01/17 | 48,000 | 35,640 | ||||
Total corporate bonds (cost $8,838,036) | 9,680,530 | |||||
Convertible bonds—7.3% (a) | ||||||
Airlines—0.3% | ||||||
JetBlue Airways Corporation, 3.75%, 03/15/35 | 262,000 | 235,800 | ||||
Commercial services—1.0% | ||||||
Alliance Data Systems Corporation, 144A, 1.75%, 08/01/13 | 1,199,000 | 924,729 |
20 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE GROWTH & INCOME FUND (cont’d) | ||||||
Convertible bonds—7.3% (a) | Principal amount | Value | ||||
Financial services—0.5% | ||||||
The NASDAQ OMX Group Inc., 2.50%, 08/15/13 | $590,000 | $469,788 | ||||
Oil & gas—0.7% | ||||||
Chesapeake Energy Corporation, 2.25%, 12/15/38 | 1,251,000 | 692,741 | ||||
REIT—0.9% | ||||||
Vornado Realty Trust, 2.85%, 04/01/27 | 1,000,000 | 843,750 | ||||
Semiconductors—0.8% | ||||||
ON Semiconductor Corporation, 2.625%, 12/15/26 | 935,000 | 759,688 | ||||
Telecommunications—3.1% | ||||||
Level 3 Communications Inc., 6.0%, 03/15/10 | 3,000,000 | 2,805,000 | ||||
Level 3 Communications Inc., 2.875%, 07/15/10 | 68,000 | 58,391 | ||||
Total convertible bonds (cost $6,142,555) | 6,789,887 | |||||
Total investment portfolio excluding repurchase agreement (cost $102,882,930) | 91,755,449 | |||||
Repurchase agreement—1.4% (a) | ||||||
Repurchase agreement with Fixed Income Clearing Corporation dated April 30, 2009 @ 0.06% to be repurchased at $1,276,002 on May 1, 2009, collateralized by $1,180,000 United States Treasury Notes, 4.25% due August 15, 2015 (market value $1,320,789 including interest) (cost $1,276,000) | 1,276,000 | |||||
Total investment portfolio (cost $104,158,930) 99.6% (a) | 93,031,449 | |||||
Other assets and liabilities, net, 0.4% (a) | 420,963 | |||||
Net assets, 100.0% | $93,452,412 | |||||
* Non-income producing security. | ||||||
(a) Percentages indicated are based on net assets. (b) U.S. dollar denominated. | ||||||
144A—144A securities are issued pursuant to Rule 144A of the Securities Act of 1933. Most of these are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and all may be resold as transactions exempt from registration to qualified institutional buyers. At April 30, 2009, these securities aggregated $2,646,701 or 2.8% of the net assets of the Fund. | ||||||
ADR—American depository receipt. | ||||||
FRN—Floating rate notes reset their interest rate on a semiannual or quarterly basis. | ||||||
REIT—Real estate investment trust. |
Sector allocation | ||
Sector | Percent of net assets | |
Financial | 30% | |
Communications | 22% | |
Consumer, non-cyclical | 17% | |
Technology | 13% | |
Consumer, cyclical | 7% | |
Energy | 5% | |
Other sectors | 4% | |
Cash/Other | 2% |
The accompanying notes are an integral part of the financial statements. | 21 |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE INTERNATIONAL EQUITY FUND (cont’d) | ||||||
Common stocks—86.6% (a) | Shares | Value | ||||
France (cont’d) | ||||||
France Telecom SA | 41,797 | $927,467 | ||||
GDF Suez SA | 29,014 | 1,043,541 | ||||
Groupe Danone SA | 23,847 | 1,136,722 | ||||
LVMH Moet Hennessy Louis Vuitton SA | 4,762 | 360,035 | ||||
Peugeot SA | 2,285 | 52,462 | ||||
Pinault-Printemps-Redoute SA (PPR) | 1,851 | 141,474 | ||||
Publicis Groupe SA | 4,555 | 139,696 | ||||
Renault SA | 11,109 | 355,081 | ||||
Sanofi-Aventis SA | 10,879 | 626,163 | ||||
Schneider Electric SA | 4,312 | 325,144 | ||||
Societe Generale | 4,641 | 234,836 | ||||
Suez Environnement SA | 5,001 | 76,198 | ||||
TOTAL SA | 32,579 | 1,629,212 | ||||
Vallourec SA | 293 | 31,817 | ||||
Vinci SA | 15,784 | 705,498 | ||||
Vivendi | 14,512 | 391,238 | ||||
Germany—8.9% | ||||||
Adidas AG | 3,567 | 134,615 | ||||
Allianz SE | 5,195 | 476,651 | ||||
BASF SE | 9,099 | 342,090 | ||||
Bayer AG | 9,306 | 461,659 | ||||
Bayerische Motoren Werke AG | 15,500 | 535,540 | ||||
Commerzbank AG | 8,150 | 55,642 | ||||
Daimler AG | 26,200 | 933,730 | ||||
Deutsche Bank AG | 6,005 | 320,370 | ||||
Deutsche Boerse AG | 1,254 | 92,563 | ||||
Deutsche Post AG | 9,630 | 110,450 | ||||
Deutsche Postbank AG | 2,733 | 58,580 | ||||
Deutsche Telekom AG | 34,216 | 412,236 | ||||
E.ON AG | 23,447 | 791,928 | ||||
Fraport AG Frankfurt Airport Services Worldwide | 39,573 | 1,595,108 | ||||
Fresenius SE | 4,952 | 204,820 | ||||
K+S AG | 1,804 | 108,722 | ||||
Linde AG | 1,011 | 80,390 | ||||
MAN AG | 5,659 | 349,583 | ||||
Merck KGaA | 1,742 | 155,957 | ||||
Metro AG | 3,089 | 131,319 | ||||
Muenchener Rueckversicherungs AG | 2,449 | 338,031 | ||||
RWE AG | 6,089 | 437,765 | ||||
SAP AG | 9,357 | 357,864 | ||||
Siemens AG | 19,343 | 1,298,372 | ||||
Wacker Chemie AG | 628 | 65,126 | ||||
Greece—0.1% | ||||||
Hellenic Telecommunications Organization SA | 9,727 | 148,925 | ||||
Hong Kong—1.9% | ||||||
Cheung Kong Holdings Ltd. | 16,000 | 166,690 | ||||
China Merchants Holdings (International) Company Ltd. | 102,970 | 242,222 | ||||
China Mobile Ltd. | 68,500 | 592,775 | ||||
China National Offshore Oil Corporation Ltd. | 207,000 | 230,289 | ||||
Esprit Holdings Ltd. | 14,700 | 90,106 | ||||
GOME Electrical Appliances Holdings Ltd. (b) | 390,486 | 56,431 | ||||
Hutchison Whampoa Ltd. | 90,000 | 526,057 | ||||
Sun Hung Kai Properties Ltd. | 15,000 | 154,377 | ||||
Hungary—1.1% | ||||||
OTP Bank Nyrt | 93,734 | 1,202,831 | ||||
Ireland—2.4% | ||||||
CRH PLC | 103,002 | 2,661,386 | ||||
Italy—2.6% | ||||||
Assicurazioni Generali SpA | 8,579 | 174,282 | ||||
Enel SpA | 52,843 | 286,272 |
Common stocks—86.6% (a) | Shares | Value | ||||
ENI SpA | 67,059 | $1,453,290 | ||||
Intesa Sanpaolo SpA | 90,260 | 285,911 | ||||
Mediobanca SpA | 4,588 | 52,853 | ||||
Saipem SpA | 1,552 | 33,373 | ||||
Snam Rete Gas SpA | 6,638 | 26,348 | ||||
Telecom Italia SpA | 137,410 | 173,682 | ||||
UniCredit SpA | 140,211 | 339,225 | ||||
Unione di Banche Italiane ScpA | 1,019 | 14,157 | ||||
Japan—7.2% | ||||||
Aisin Seiki Company, Ltd. | 5,101 | 104,446 | ||||
Bridgestone Corporation | 5,600 | 82,904 | ||||
Canon Inc. | 8,073 | 243,461 | ||||
Central Japan Railway Company | 19 | 112,320 | ||||
Daikin Industries, Ltd. | 2,000 | 53,370 | ||||
Denso Corporation | 7,613 | 179,157 | ||||
East Japan Railway Company | 3,600 | 202,961 | ||||
Eisai Co., Ltd. | 2,200 | 59,362 | ||||
Fanuc Ltd. | 5,700 | 410,324 | ||||
Fuji Media Holdings Inc. | 41 | 45,648 | ||||
Honda Motor Company, Ltd. | 27,590 | 802,119 | ||||
ITOCHU Corporation | 65,000 | 344,981 | ||||
JFE Holdings, Inc. | 4,000 | 108,917 | ||||
KDDI Corporation | 23 | 103,083 | ||||
Komatsu Ltd. | 8,900 | 109,423 | ||||
Kubota Corporation | 7,491 | 44,965 | ||||
Kyocera Corporation | 1,100 | 85,233 | ||||
Makita Corporation | 1,400 | 32,012 | ||||
Mitsubishi Corporation | 47,500 | 730,104 | ||||
Mitsubishi Electric Corporation | 15,000 | 79,558 | ||||
Mitsui & Company, Ltd. | 65,200 | 682,931 | ||||
NGK Insulators Ltd. | 9,000 | 136,900 | ||||
Nidec Corporation | 5,100 | 279,771 | ||||
Nintendo Company, Ltd. | 761 | 203,021 | ||||
Nippon Telegraph & Telephone Corporation | 1,600 | 59,972 | ||||
Nissan Motor Company, Ltd. | 23,900 | 124,285 | ||||
NTT DoCoMo, Inc. | 87 | 121,212 | ||||
Panasonic Corporation | 13,753 | 200,098 | ||||
Ricoh Company Ltd. | 9,000 | 109,785 | ||||
Shin-Etsu Chemical Company, Ltd. | 2,100 | 101,666 | ||||
Sony Corporation | 3,886 | 100,547 | ||||
Sumitomo Metal Industries Ltd. | 34,000 | 78,973 | ||||
Suzuki Motor Corporation | 15,300 | 286,687 | ||||
Takeda Pharmaceutical Company, Ltd. | 2,200 | 78,077 | ||||
Toyota Motor Corporation | 38,432 | 1,504,470 | ||||
Luxembourg—1.0% | ||||||
ArcelorMittal | 45,496 | 1,067,982 | ||||
Mexico—0.1% | ||||||
America Movil, SAB de CV, Sponsored ADR | 3,786 | 124,370 | ||||
Grupo Cementos de Chihuahua, SAB de CV (b) | 16,327 | 1,183 | ||||
Netherlands—3.4% | ||||||
Aegon NV | 7,698 | 39,722 | ||||
European Aeronautic Defence and Space Company NV | 1,486 | 21,408 | ||||
Heineken NV | 19,468 | 578,945 | ||||
ING Groep NV | 9,573 | 88,091 | ||||
Koninklijke KPN NV | 56,238 | 675,675 | ||||
Koninklijke Philips Electronics NV | 12,803 | 230,847 | ||||
Randstad Holding NV | 848 | 19,332 | ||||
Reed Elsevier NV | 24,320 | 267,485 | ||||
Royal Dutch Shell PLC, Class A | 50,353 | 1,170,549 | ||||
TNT NV | 6,629 | 122,116 | ||||
Unilever NV | 27,980 | 553,307 |
22 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE INTERNATIONAL EQUITY FUND (cont’d) | ||||||
Common stocks—86.6% (a) | Shares | Value | ||||
New Zealand—0.0% | ||||||
Auckland International Airport Ltd. | 909 | $854 | ||||
Norway—0.9% | ||||||
DnB NOR ASA | 3,794 | 24,127 | ||||
Norsk Hydro ASA | 4,935 | 21,791 | ||||
StatoilHydro ASA | 48,752 | 913,052 | ||||
Yara International ASA | 2,049 | 55,866 | ||||
Portugal—0.1% | ||||||
Energias de Portugal SA | 23,252 | 84,826 | ||||
Russia—1.2% | ||||||
Gazprom OAO, Sponsored ADR | 27,750 | 487,563 | ||||
Inter RAO UES OJSC, 144A, Sponsored GDR (b)* | 7,106 | 24,871 | ||||
JSC MMC Norilsk Nickel, Sponsored ADR | 31,226 | 260,113 | ||||
LUKOIL, Sponsored ADR | 8,250 | 363,621 | ||||
OAO Kuzbassenergo, 144A, Sponsored GDR (b)* | 2,363 | 3,899 | ||||
OAO OGK-1 (Wholesale Generation Company No 1), 144A, Sponsored GDR (b)* | 32,708 | 14,719 | ||||
OAO OGK-2 (Wholesale Generation Company No 2), 144A, Sponsored GDR (b)* | 8,500 | 10,200 | ||||
OAO OGK-3 (Wholesale Generation Company No 3), 144A, Sponsored GDR (b)* | 13,974 | 23,756 | ||||
OAO OGK-6 (Wholesale Generation Company No 6), 144A, Sponsored GDR (b)* | 9,911 | 10,407 | ||||
OAO RAO Energy System of East (b)* | 1,700,000 | 4,250 | ||||
OAO Rosneft Oil Company, Sponsored GDR | 24,200 | 125,387 | ||||
OAO TGK-1 (Territorial Generation Company No 1), 144A, Sponsored GDR (b)* | 12,988 | 10,390 | ||||
OAO TGK-2 (Territorial Generation Company No 2), 144A, Sponsored GDR (b)* | 2,193 | 3,113 | ||||
OAO TGK-4 (Territorial Generation Company No 4), 144A, Sponsored GDR (b)* | 5,389 | 5,389 | ||||
OAO TGK-9 (Territorial Generation Company No 9), 144A, Sponsored GDR (b)* | 5,712 | 6,211 | ||||
OAO TGK-14 (Territorial Generation Company No 14), 144A, Sponsored GDR (b)* | 544 | 1,183 | ||||
OAO Volga Territorial Generation Company, 144A, Sponsored GDR (b)* | 5,678 | 5,110 | ||||
Yenisei Territorial Generating Company, 144A, Sponsored GDR (b)* | 5,848 | 3,683 | ||||
South Africa—0.1% | ||||||
Impala Platinum Holdings Ltd. | 2,918 | 56,231 | ||||
South Korea—3.7% | ||||||
Hyundai Heavy Industries | 1,783 | 318,211 | ||||
Hyundai Motor Company | 12,103 | 646,185 | ||||
Korea Electric Power Corporation | 2,640 | 57,050 | ||||
KT Corporation | 1,850 | 53,738 | ||||
KT&G Corporation | 4,238 | 233,206 | ||||
NHN Corporation* | 431 | 52,105 | ||||
Pohang Iron & Steel Co., Ltd. | 1,956 | 605,247 | ||||
Pohang Iron & Steel Co., Ltd., Sponsored ADR | 3,778 | 290,793 | ||||
Samsung Electronics Company, Ltd. | 2,259 | 1,042,345 | ||||
Shinsegae Company Ltd. | 814 | 289,038 | ||||
SK Telecom Company Ltd. | 2,359 | 336,099 | ||||
SK Telecom Company Ltd., Sponsored ADR | 10,275 | 161,009 | ||||
Spain—3.1% | ||||||
Banco Bilbao Vizcaya Argentaria SA | 41,704 | 449,564 | ||||
Banco Popular Espanol SA | 8,134 | 67,694 | ||||
Banco Santander SA | 87,391 | 825,021 | ||||
EDP Renovaveis SA* | 18,450 | 150,880 |
Common stocks—86.6% (a) | Shares | Value | ||||
Gamesa Corp Tecnologica SA | 1,973 | $37,017 | ||||
Iberdrola SA | 43,138 | 340,867 | ||||
Iberdrola Renovables SA* | 19,868 | 80,967 | ||||
Inditex SA | 15,671 | 668,738 | ||||
Telefonica SA | 41,915 | 795,870 | ||||
Sweden—1.8% | ||||||
Atlas Copco AB, Class A | 32,807 | 305,179 | ||||
Getinge AB, Class B | 10,745 | 125,892 | ||||
Hennes & Mauritz AB, Class B | 10,501 | 469,469 | ||||
Sandvik AB | 63,719 | 418,344 | ||||
Skanska AB, Class B | 5,222 | 56,647 | ||||
SKF AB, Class B | 30,136 | 330,331 | ||||
Svenska Cellulosa AB, Class B | 21,740 | 210,332 | ||||
TeliaSonera AB | 15,228 | 71,933 | ||||
Volvo AB, Class B | 5,280 | 34,364 | ||||
Switzerland—8.6% | ||||||
ABB Ltd. | 52,813 | 746,253 | ||||
Adecco SA | 1,390 | 55,071 | ||||
Credit Suisse Group | 11,811 | 451,371 | ||||
Flughafen Zuerich AG | 1,236 | 258,932 | ||||
Givaudan SA | 187 | 118,696 | ||||
Holcim Ltd. | 3,533 | 178,628 | ||||
Nestle SA | 76,902 | 2,501,095 | ||||
Nobel Biocare Holding AG | 2,442 | 49,868 | ||||
Novartis AG | 27,723 | 1,047,039 | ||||
Roche Holding AG | 4,484 | 567,694 | ||||
Swiss Reinsurance | 2,371 | 55,948 | ||||
Swisscom AG | 900 | 234,278 | ||||
Syngenta AG | 2,272 | 484,738 | ||||
The Swatch Group AG | 419 | 58,116 | ||||
UBS AG | 12,984 | 181,447 | ||||
Xstrata PLC | 253,360 | 2,227,033 | ||||
Zurich Financial Services AG | 1,627 | 300,490 | ||||
Taiwan—0.9% | ||||||
Cathay Financial Holding Company Ltd., Sponsored GDR | 283 | 2,830 | ||||
Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR | 84,268 | 890,713 | ||||
United Microelectronics Corporation, Sponsored ADR | 19,135 | 58,362 | ||||
Ukraine—0.4% | ||||||
Raiffeisen Bank Aval* | 1,908,985 | 40,821 | ||||
Ukrnafta Oil Company | 5,473 | 74,350 | ||||
Ukrsotsbank JSCB* | 2,466,696 | 52,747 | ||||
UkrTelecom | 5,916,954 | 232,213 | ||||
UkrTelecom, Sponsored GDR | 9,912 | 19,016 | ||||
United Kingdom—11.9% | ||||||
Anglo American PLC | 30,528 | 662,169 | ||||
Barclays PLC | 86,934 | 353,720 | ||||
BHP Billiton PLC | 96,448 | 2,031,767 | ||||
BP PLC | 206,970 | 1,467,614 | ||||
British American Tobacco PLC | 14,191 | 344,083 | ||||
BT Group PLC | 43,786 | 60,888 | ||||
Diageo PLC | 14,032 | 168,426 | ||||
GlaxoSmithKline PLC | 21,045 | 324,980 | ||||
HSBC Holdings PLC | 142,270 | 1,010,611 | ||||
Imperial Tobacco Group PLC | 9,627 | 220,108 | ||||
Lloyds TSB Group PLC | 106,033 | 172,862 | ||||
Marks & Spencer Group PLC | 58,193 | 289,447 | ||||
National Grid PLC | 13,099 | 109,389 | ||||
Old Mutual PLC | 21,677 | 21,902 | ||||
Pearson PLC | 28,157 | 293,039 | ||||
Prudential PLC | 16,538 | 95,388 | ||||
Rio Tinto PLC | 45,149 | 1,852,786 | ||||
Rolls-Royce Group PLC | 23,085 | 114,969 |
The accompanying notes are an integral part of the financial statements. | 23 |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE INTERNATIONAL EQUITY FUND (cont’d) | |||||||
Common stocks—86.6% (a) | Shares | Value | |||||
United Kingdom (cont’d) | |||||||
Rolls-Royce Group PLC, Class C* | 1,980,693 | $2,930 | |||||
Royal Bank of Scotland Group PLC | 227,121 | 138,103 | |||||
Scottish & Southern Energy PLC | 6,514 | 106,462 | |||||
Smith & Nephew PLC | 8,601 | 60,795 | |||||
Standard Chartered PLC | 8,599 | 134,587 | |||||
Tesco PLC | 195,995 | 973,044 | |||||
Vodafone Group PLC | 863,306 | 1,585,730 | |||||
WM Morrison Supermarkets PLC | 31,692 | 115,151 | |||||
Wolseley PLC | 800 | 14,332 | |||||
WPP PLC | 63,808 | 436,414 | |||||
Total common stocks (cost $97,931,325) | 95,666,973 | ||||||
Preferred stocks—0.0% (a) | |||||||
Germany—0.0% | |||||||
Volkswagen AG | 737 | 46,688 | |||||
Total preferred stocks (cost $33,786) | 46,688 | ||||||
Investment companies—10.0% (a) | |||||||
Hong Kong—0.5% | |||||||
Hang Seng Investment Index Funds Series—H-Share Index ETF | 50,200 | 583,627 | |||||
Ireland—0.5% | |||||||
iShares DJ Euro STOXX 50 | 17,659 | 559,583 | |||||
Japan—6.8% | |||||||
Nomura Asset Management/Nikkei 225 Index ETF | 24,113 | 2,229,048 | |||||
Nomura Asset Management/Topix Index ETF | 594,724 | 5,236,181 | |||||
Singapore—1.1% | |||||||
iShares MSCI India* | 282,900 | 1,172,903 | |||||
United States—1.1% | |||||||
iShares MSCI Taiwan Index Fund | 122,550 | 1,252,462 | |||||
Total investment companies (cost $11,023,232) | 11,033,804 | ||||||
Equity-linked notes—0.0% (a) | |||||||
Germany—0.0% | |||||||
Deutsche Bank AG London, 144A, Series 51, 0%, 12/31/09 (b)* | 17 | 44,798 | |||||
Deutsche Bank AG London, 144A, Series 63, 0%, 12/31/09 (b)* | 17 | 5,258 | |||||
Total equity-linked notes (cost $188,734) | 50,056 | ||||||
Rights—0.0% (a) | |||||||
Italy—0.0% | |||||||
Snam Rete Gas SpA, 05/15/09* | 6,638 | 5,094 | |||||
Total rights (cost $5,766) | 5,094 | ||||||
Total investment portfolio excluding repurchase agreement (cost $109,182,843) | 106,802,615 | ||||||
Repurchase agreement—4.7% (a) | |||||||
Repurchase agreement with Fixed Income Clearing Corporation dated April 30, 2009 @ 0.06% to be repurchased at $5,150,009 on May 1, 2009, collateralized by $5,315,000 United States Treasury Notes, 1.125% due January 15, 2012 (market value $5,310,751 including interest) (cost $5,150,000) | 5,150,000 | ||||||
Total investment portfolio (cost $114,332,843) 101.3% (a) | 111,952,615 | ||||||
Other assets and liabilities, net, (1.3%) (a) | (1,460,597 | ) | |||||
Net assets, 100.0% | $110,492,018 |
Footnotes | ||||||
* Non-income producing security. (a) Percentages indicated are based on net assets. (b) Restricted securities deemed to be illiquid for purposes of compliance limitations on holdings of illiquid securities. At April 30, 2009, these securities aggregated $234,851 or 0.2% of the net assets of the Fund. | ||||||
144A—144A securities are issued pursuant to Rule 144A of the Securities Act of 1993. Most of these are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and all may be resold as transactions exempt from registration to qualified institutional buyers. At April 30, 2009, these securities aggregated $172,987 or 0.2% of the net assets of the Fund. | ||||||
ADR—American depository receipt. | ||||||
ETF—Exchange-Traded fund. | ||||||
GDR—Global depository receipt. |
Sector allocation | ||
Sector | Percent of net assets | |
Financial | 21% | |
Basic materials | 15% | |
Industrial | 13% | |
Energy | 12% | |
Consumer, non-cyclical | 11% | |
Consumer, cyclical | 10% | |
Communications | 8% | |
Other sectors | 7% | |
Cash/Other | 3% |
Forward foreign currency contracts outstanding | |||||||||||
Contract to deliver | In exchange for | Delivery date | Unrealized appreciation (depreciation) | ||||||||
PLN | 3,443,628 | USD | 1,245,045 | 5/7/09 | $215,465 | ||||||
USD | 18,794 | JPY | 1,807,832 | 5/7/09 | (463 | ) | |||||
USD | 726,127 | PLN | 2,287,737 | 5/7/09 | (42,136 | ) | |||||
USD | 342,618 | PLN | 1,155,891 | 5/7/09 | 2,972 | ||||||
PLN | 4,807,442 | USD | 1,678,477 | 5/11/09 | 241,517 | ||||||
USD | 1,405,925 | PLN | 4,807,442 | 5/11/09 | 31,034 | ||||||
HUF | 748,326,367 | USD | 3,482,042 | 5/12/09 | 54,016 | ||||||
USD | 1,532,766 | HUF | 315,085,980 | 5/12/09 | (89,381 | ) | |||||
USD | 1,469,543 | HUF | 337,389,761 | 5/12/09 | 76,014 | ||||||
CZK | 4,648,659 | USD | 230,989 | 5/21/09 | 1,216 | ||||||
CZK | 5,760,152 | USD | 282,174 | 5/21/09 | (2,538 | ) | |||||
PLN | 1,314,152 | USD | 427,089 | 5/21/09 | 34,542 | ||||||
USD | 201,494 | CZK | 4,648,659 | 5/21/09 | 28,280 | ||||||
USD | 354,363 | PLN | 1,314,152 | 5/21/09 | 38,183 | ||||||
CZK | 1,467,901 | USD | 79,995 | 7/14/09 | 7,575 | ||||||
USD | 63,621 | CZK | 1,467,901 | 7/14/09 | 8,798 | ||||||
CZK | 1,473,500 | USD | 79,995 | 10/14/09 | 7,436 | ||||||
USD | 63,871 | CZK | 1,473,500 | 10/14/09 | 8,687 |
24 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE INTERNATIONAL EQUITY FUND (cont’d) | |||||||||||
Forward foreign currency contracts outstanding (cont’d) | |||||||||||
Contract to deliver | In exchange for | Delivery date | Unrealized appreciation (depreciation) | ||||||||
PLN | 3,070,608 | USD | 979,304 | 10/20/09 | $68,840 | ||||||
USD | 1,148,669 | PLN | 3,070,608 | 10/20/09 | (238,205 | ) | |||||
CZK | 26,716,364 | USD | 1,344,685 | 10/27/09 | 29,395 | ||||||
USD | 311,174 | CZK | 5,750,501 | 10/27/09 | (28,068 | ) | |||||
PLN | 6,148,702 | USD | 1,958,743 | 11/19/09 | 137,510 | ||||||
USD | 2,274,697 | PLN | 6,148,702 | 11/19/09 | (453,463 | ) | |||||
Net unrealized appreciation | $137,226 | ||||||||||
CZK—Czech Koruna. HUF—Hungarian Forint. JPY—Japanese Yen. PLN—Polish Zloty. USD—United States Dollar. |
Industry Allocation | ||||
Industry | Value | Percent of net assets | ||
Oil & gas | $13,270,776 | 12.0% | ||
Mining | 12,156,186 | 11.0% | ||
Investment companies | 11,033,804 | 10.0% | ||
Banks | 9,852,098 | 8.9% | ||
Telecommunications | 7,595,502 | 6.9% | ||
Food | 6,284,439 | 5.7% | ||
Auto manufacturers | 5,321,611 | 4.8% | ||
Engineering & construction | 4,569,996 | 4.1% | ||
Pharmaceuticals | 3,456,666 | 3.1% | ||
Electric | 3,385,281 | 3.1% | ||
Building materials | 3,055,962 | 2.8% | ||
Retail | 2,246,513 | 2.0% | ||
Iron/Steel | 2,151,912 | 1.9% | ||
Insurance | 2,142,883 | 1.9% | ||
Chemicals | 2,077,569 | 1.9% | ||
Semiconductors | 1,991,420 | 1.8% | ||
Distribution/Wholesale | 1,772,348 | 1.6% | ||
Machinery | 1,578,329 | 1.4% | ||
Diversified manufacturer | 1,298,372 | 1.2% | ||
Financial services | 1,273,730 | 1.1% | ||
Multimedia | 1,120,691 | 1.0% | ||
Beverages | 865,089 | 0.8% | ||
Agriculture | 797,397 | 0.7% | ||
Electronics | 732,751 | 0.7% | ||
Auto parts & equipment | 698,104 | 0.6% | ||
Transportation | 611,583 | 0.6% | ||
Electrical components & equipment | 533,350 | 0.5% |
Industry Allocation (cont’d) | ||||
Industry | Value | Percent of net assets | ||
Hand/Machine tools | $450,356 | 0.4% | ||
Healthcare products | 441,375 | 0.4% | ||
Metal fabricate/hardware | 362,148 | 0.3% | ||
Software | 357,864 | 0.3% | ||
Office/Business equipment | 353,246 | 0.3% | ||
Forest products & paper | 339,097 | 0.3% | ||
Real estate | 321,067 | 0.3% | ||
Shipbuilding | 318,211 | 0.3% | ||
Home furnishings | 300,645 | 0.3% | ||
Printing & publishing | 267,485 | 0.2% | ||
Energy-Alternative sources | 231,847 | 0.2% | ||
Toys/Games/Hobbies | 203,021 | 0.2% | ||
Computers | 192,237 | 0.2% | ||
Advertising | 139,696 | 0.1% | ||
Aerospace/Defense | 139,307 | 0.1% | ||
Apparel | 134,615 | 0.1% | ||
Water | 76,198 | 0.1% | ||
Commercial services | 74,403 | 0.1% | ||
Lodging | 62,867 | 0.1% | ||
Internet | 52,105 | 0.1% | ||
Other | 110,463 | 0.1% | ||
Total investment portfolio excluding repurchase agreement | $106,802,615 | 96.6% |
The accompanying notes are an integral part of the financial statements. | 25 |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE LARGE CAP CORE FUND (cont’d) | |||||||
Common stocks—91.7% (a) | Shares | Value | |||||
Healthcare products—7.5% | |||||||
Covidien Ltd. | 55,456 | $1,828,939 | |||||
Johnson & Johnson | 79,555 | 4,165,500 | |||||
Zimmer Holdings, Inc.* | 48,625 | 2,139,014 | |||||
Healthcare services—1.8% | |||||||
UnitedHealth Group Inc. | 83,010 | 1,952,395 | |||||
Insurance—0.7% | |||||||
MetLife, Inc. | 26,630 | 792,242 | |||||
Internet—2.7% | |||||||
eBay Inc.* | 179,905 | 2,963,035 | |||||
Multimedia—2.1% | |||||||
Viacom Inc., Class B* | 120,050 | 2,309,762 | |||||
Oil & gas—7.1% | |||||||
BP PLC, Sponsored ADR | 72,010 | 3,057,545 | |||||
ConocoPhillips | 56,440 | 2,314,040 | |||||
EOG Resources Inc. | 36,200 | 2,297,976 | |||||
Oil & gas services—2.3% | |||||||
Schlumberger Ltd. | 50,265 | 2,462,482 | |||||
Pharmaceuticals—3.2% | |||||||
Pfizer Inc. | 256,160 | 3,422,298 | |||||
Retail—13.7% | |||||||
CVS/Caremark Corporation | 153,685 | 4,884,109 | |||||
Home Depot, Inc. | 86,140 | 2,267,205 | |||||
Macy’s Inc. | 183,940 | 2,516,299 | |||||
Staples, Inc. | 251,180 | 5,179,332 | |||||
Semiconductors—11.0% | |||||||
Analog Devices, Inc. | 80,665 | 1,716,551 | |||||
Applied Materials, Inc. | 387,830 | 4,735,404 | |||||
Intel Corporation | 201,080 | 3,173,042 | |||||
Texas Instruments Inc. | 126,320 | 2,281,339 | |||||
Software—9.8% | |||||||
Adobe Systems Inc.* | 93,795 | 2,565,293 | |||||
Electronic Arts Inc.* | 177,805 | 3,618,332 | |||||
Microsoft Corporation | 166,130 | 3,365,794 | |||||
Oracle Corporation | 56,270 | 1,088,262 | |||||
Telecommunications—5.8% | |||||||
Cisco Systems, Inc.* | 102,310 | 1,976,629 | |||||
Sprint Nextel Corporation* | 983,850 | 4,289,586 | |||||
Television, cable & radio—1.5% | |||||||
Comcast Corporation, Class A | 104,535 | 1,616,112 | |||||
Total common stocks (cost $122,000,007) | 99,276,720 | ||||||
Repurchase agreement—8.5% (a) | |||||||
Repurchase agreement with Fixed Income Clearing Corporation dated April 30, 2009 @ 0.06% to be repurchased at $9,239,015 on May 1, 2009, collateralized by $8,510,000 United States Treasury Notes, 4.25% due August 15, 2015 (market value $9,525,352 including interest) (cost $9,239,000) | 9,239,000 | ||||||
Total investment portfolio (cost $131,239,007) 100.2% (a) | 108,515,720 | ||||||
Other assets and liabilities, net, (0.2%) (a) | (290,989 | ) | |||||
Net assets, 100.0% | $108,224,731 | ||||||
* Non-income producing security. (a) Percentages indicated are based on net assets. | |||||||
ADR—American depository receipt. |
Sector allocation | ||
Sector | Percent of net assets | |
Technology | 25% | |
Communications | 15% | |
Consumer, cyclical | 14% | |
Consumer, non-cyclical | 13% | |
Energy | 9% | |
Financial | 9% | |
Industrial | 7% | |
Cash/Other | 8% |
26 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE MID CAP GROWTH FUND (cont’d) | |||||||
Common stocks—98.7% (a) | Shares | Value | |||||
Insurance—1.4% | |||||||
RenaissanceRe Holdings Ltd. | 35,860 | $1,744,948 | |||||
Internet—6.4% | |||||||
IAC/InterActiveCorp* | 146,202 | 2,342,156 | |||||
Netflix, Inc.* | 66,325 | 3,005,186 | |||||
VeriSign, Inc.* | 132,050 | 2,717,589 | |||||
Iron/Steel—2.0% | |||||||
Nucor Corporation | 60,495 | 2,461,542 | |||||
Leisure time—1.4% | |||||||
WMS Industries, Inc.* | 53,320 | 1,712,105 | |||||
Mining—1.8% | |||||||
Freeport-McMoRan Copper & Gold Inc. | 52,655 | 2,245,736 | |||||
Oil & gas—6.8% | |||||||
CNX Gas Corporation* | 111,802 | 2,878,902 | |||||
Denbury Resources Inc.* | 206,315 | 3,358,808 | |||||
PetroHawk Energy Corporation* | 95,080 | 2,243,888 | |||||
Oil & gas services—1.0% | |||||||
Oceaneering International, Inc.* | 28,430 | 1,295,555 | |||||
Pharmaceuticals—6.2% | |||||||
Cephalon Inc.* | 16,565 | 1,086,830 | |||||
Dendreon Corporation* | 45,500 | 964,600 | |||||
Express Scripts Inc.* | 48,235 | 3,085,593 | |||||
Mylan Inc.* | 203,160 | 2,691,870 | |||||
Retail—4.5% | |||||||
Advance Auto Parts, Inc. | 34,005 | 1,487,719 | |||||
Burger King Holdings Inc. | 97,425 | 1,591,924 | |||||
Copart, Inc.* | 79,870 | 2,507,119 | |||||
Savings & loans—0.7% | |||||||
People’s United Financial Inc. | 55,875 | 872,768 | |||||
Semiconductors—8.0% | |||||||
Altera Corporation | 87,990 | 1,435,117 | |||||
Applied Materials Inc. | 114,195 | 1,394,321 | |||||
Linear Technology Corporation | 90,545 | 1,972,070 | |||||
MEMC Electronic Materials, Inc.* | 133,035 | 2,155,167 | |||||
Micron Technology, Inc.* | 628,820 | 3,068,642 | |||||
Software—6.1% | |||||||
Adobe Systems Inc.* | 111,536 | 3,050,510 | |||||
ANSYS, Inc.* | 79,765 | 2,203,109 | |||||
Novell, Inc.* | 621,198 | 2,335,704 | |||||
Telecommunications—4.3% | |||||||
Amdocs Ltd.* | 130,915 | 2,740,051 | |||||
Windstream Corporation | 326,620 | 2,710,946 | |||||
Transportation—0.9% | |||||||
Landstar System, Inc. | 31,840 | 1,133,820 | |||||
Total common stocks (cost $118,853,113) | 123,740,479 | ||||||
Repurchase agreement—3.0% (a) | |||||||
Repurchase agreement with Fixed Income Clearing Corporation dated April 30, 2009 @ 0.06% to be repurchased at $3,715,006 on May 1, 2009, collateralized by $3,425,000 United States Treasury Notes, 4.25% due August 15, 2015 (market value $3,833,646 including interest) (cost $3,715,000) | 3,715,000 | ||||||
Total investment portfolio (cost $122,568,113) 101.7% (a) | 127,455,479 | ||||||
Other assets and liabilities, net, (1.7%) (a) | (2,148,333 | ) | |||||
Net assets, 100.0% | $125,307,146 |
Footnotes |
* Non-income producing security. (a) Percentages indicated are based on net assets. |
Sector allocation | ||
Sector | Percent of net assets | |
Technology | 21% | |
Consumer, cyclical | 19% | |
Communications | 11% | |
Consumer, non-cyclical | 11% | |
Industrial | 11% | |
Basic materials | 8% | |
Energy | 8% | |
Financial | 8% | |
Utilities | 2% | |
Cash/Other | 1% |
The accompanying notes are an integral part of the financial statements. | 27 |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
Common stocks—98.9% (a) | Shares | Value | |||||
REITs—2.3% | |||||||
Annaly Capital Management, Inc. | 875,360 | $12,316,315 | |||||
Plum Creek Timber Company, Inc. | 338,565 | 11,687,264 | |||||
Retail—4.5% | |||||||
O’Reilly Automotive, Inc.* | 236,330 | 9,181,420 | |||||
Staples Inc. | 679,020 | 14,001,392 | |||||
Tiffany & Company | 357,682 | 10,351,317 | |||||
TJX Companies, Inc. | 470,335 | 13,155,270 | |||||
Savings & loans—1.0% | |||||||
Hudson City Bancorp Inc. | 845,920 | 10,624,755 | |||||
Semiconductors—3.2% | |||||||
Analog Devices Inc. | 733,540 | 15,609,731 | |||||
Microchip Technology Inc. | 779,440 | 17,927,120 | |||||
Software—6.2% | |||||||
Adobe Systems Inc.* | 540,515 | 14,783,085 | |||||
Ansys Inc.* | 688,933 | 19,028,329 | |||||
Fiserv, Inc.* | 595,305 | 22,216,783 | |||||
Metavante Technologies Inc.* | 363,158 | 8,566,897 | |||||
Telecommunications—1.4% | |||||||
Cellcom Israel Ltd. | 653,760 | 14,245,430 | |||||
Television, cable & radio—0.9% | |||||||
The DIRECTV Group, Inc.* | 392,435 | 9,704,918 | |||||
Transportation—1.0% | |||||||
J.B. Hunt Transport Services, Inc. | 375,840 | 10,568,622 | |||||
Total common stocks (cost $1,039,634,872) | 1,032,001,572 | ||||||
Repurchase agreement—3.1% (a) | |||||||
Repurchase agreement with Fixed Income Clearing Corporation dated April 30, 2009 @ 0.06% to be repurchased at $32,606,054 on May 1, 2009, collateralized by $33,460,000 United States Treasury Notes, 0.875% due December 31, 2010 (market value $33,583,193 including interest) (cost $32,606,000) | 32,606,000 | ||||||
Total investment portfolio (cost $1,072,240,872) 102.0% (a) | 1,064,607,572 | ||||||
Other assets and liabilities, net, (2.0%) (a) | (20,722,014 | ) | |||||
Net assets, 100.0% | $1,043,885,558 | ||||||
* Non-income producing security. (a) Percentages indicated are based on net assets. | |||||||
REIT—Real estate investment trust. |
Sector allocation | ||
Sector | Percent of net assets | |
Industrial | 23% | |
Consumer, non-cyclical | 21% | |
Technology | 15% | |
Financial | 12% | |
Communications | 10% | |
Consumer, cyclical | 7% | |
Energy | 6% | |
Other sectors | 5% | |
Cash/Other | 1% |
28 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
Common stocks—90.7% (a) | Shares | Value | ||||
MarketAxess Holdings Inc.* | 32,921 | $315,712 | ||||
optionsXpress Holdings, Inc. | 34,325 | 564,990 | ||||
Gas—2.2% | ||||||
AGL Resources, Inc. | 32,785 | 1,021,908 | ||||
Healthcare products—2.1% | ||||||
Merit Medical Systems, Inc.* | 62,453 | 968,646 | ||||
Healthcare services—6.1% | ||||||
AMERIGROUP Corporation* | 24,635 | 735,847 | ||||
Amsurg Corporation* | 45,215 | 928,716 | ||||
Mednax Inc.* | 19,815 | 711,358 | ||||
Psychiatric Solutions, Inc.* | 26,805 | 519,749 | ||||
Household products—1.1% | ||||||
Jarden Corporation* | 26,140 | 525,414 | ||||
Insurance—5.7% | ||||||
American Equity Investment Life Holding Company | 109,485 | 616,401 | ||||
Assured Guaranty Ltd. | 38,690 | 373,745 | ||||
First Mercury Financial Corporation* | 19,410 | 256,600 | ||||
IPC Holdings, Ltd. | 14,985 | 390,209 | ||||
Platinum Underwriters Holdings, Ltd. | 16,625 | 478,301 | ||||
Stewart Information Services Corporation | 25,110 | 567,737 | ||||
Internet—2.6% | ||||||
1-800-FLOWERS.COM Inc., Class A* | 169,396 | 494,636 | ||||
SonicWALL, Inc.* | 138,700 | 753,141 | ||||
Machinery—1.1% | ||||||
Altra Holdings, Inc.* | 40,755 | 222,930 | ||||
Wabtec Corporation | 7,395 | 282,045 | ||||
Machinery-Diversified—0.2% | ||||||
Flowserve Corporation | 1,550 | 105,245 | ||||
Metal fabricate/hardware—0.9% | ||||||
Kaydon Corporation | 13,775 | 440,249 | ||||
Mining—1.6% | ||||||
IAMGOLD Corporation | 95,185 | 760,528 | ||||
Miscellaneous manufacturer—0.5% | ||||||
Polypore International, Inc.* | 33,205 | 250,366 | ||||
Oil & gas—1.8% | ||||||
Comstock Resources, Inc.* | 16,380 | 564,455 | ||||
Rosetta Resources, Inc.* | 41,230 | 290,672 | ||||
Oil & gas services—3.9% | ||||||
Dresser-Rand Group, Inc.* | 33,950 | 836,188 | ||||
Oceaneering International, Inc.* | 22,070 | 1,005,730 | ||||
Pharmaceuticals—1.4% | ||||||
Herbalife Ltd. | 33,775 | 669,420 | ||||
Printing & publishing—2.0% | ||||||
John Wiley & Sons, Inc., Class A | 28,230 | 956,997 | ||||
REITs—1.6% | ||||||
BioMed Realty Trust, Inc. | 36,420 | 415,552 | ||||
Chimera Investment Corporation | 60,735 | 214,395 | ||||
Kite Realty Group Trust | 38,875 | 136,062 | ||||
Retail—4.4% | ||||||
AFC Enterprises, Inc.* | 81,847 | 508,270 | ||||
Jo-Ann Stores Inc.* | 23,460 | 429,787 | ||||
Nu Skin Enterprises, Inc., Class A | 44,165 | 566,195 | ||||
Stage Stores, Inc. | 45,260 | 554,435 | ||||
Semiconductors—2.0% | ||||||
Microsemi Corporation* | 37,810 | 507,410 | ||||
Varian Semiconductor Equipment Associates, Inc.* | 17,415 | 445,650 |
The accompanying notes are an integral part of the financial statements. | 29 |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE SMALL CAP CORE VALUE FUND (cont’d) | |||||||
Common stocks—90.7% (a) | Shares | Value | |||||
Software—7.3% | |||||||
Aspen Technology, Inc.* | 122,037 | $947,007 | |||||
Avid Technology, Inc.* | 34,935 | 386,730 | |||||
Bottomline Technologies, Inc.* | 76,041 | 596,922 | |||||
SPSS, Inc.* | 22,720 | 702,048 | |||||
Sybase, Inc.* | 24,115 | 818,945 | |||||
Telecommunications—5.2% | |||||||
Alaska Communications Systems Group, Inc. | 71,065 | 428,522 | |||||
CommScope, Inc.* | 27,045 | 678,830 | |||||
Switch & Data Facilities Company, Inc.* | 37,030 | 428,437 | |||||
Symmetricom, Inc.* | 111,825 | 556,888 | |||||
Syniverse Holdings, Inc.* | 28,240 | 355,824 | |||||
Transportation—0.8% | |||||||
Genesee & Wyoming Inc., Class A* | 12,675 | 380,258 | |||||
Total common stocks (cost $34,522,586) | 42,772,708 | ||||||
Investment companies—4.2% (a) | |||||||
Apollo Investment Corporation | 30,990 | 148,752 | |||||
iShares Russell 2000 Growth Index Fund | 9,020 | 476,166 | |||||
iShares Russell 2000 Index Fund | 14,130 | 685,588 | |||||
iShares Russell 2000 Value Index Fund | 14,460 | 658,219 | |||||
Total investment companies (cost $1,606,970) | 1,968,725 | ||||||
Total investment portfolio excluding repurchase agreement (cost $36,129,556) | 44,741,433 | ||||||
Repurchase agreement—6.3% (a) | |||||||
Repurchase agreement with Fixed Income Clearing Corporation dated April 30, 2009 @ 0.06% to be repurchased at $2,958,005 on May 1, 2009, collateralized by $3,050,000 United States Treasury Bills due August 27, 2009 (market value $3,048,649 including interest) (cost $2,958,000) | 2,958,000 | ||||||
Total investment portfolio (cost $39,087,556) 101.2% (a) | 47,699,433 | ||||||
Other assets and liabilities, net, (1.2%) (a) | (560,793 | ) | |||||
Net assets, 100.0% | $47,138,640 | ||||||
* Non-income producing security. (a) Percentages indicated are based on net assets. | |||||||
REIT—Real estate investment trust. |
Sector allocation | ||
Sector | Percent of net assets | |
Consumer, non-cyclical | 21% | |
Financial | 20% | |
Technology | 13% | |
Industrial | 11% | |
Communications | 10% | |
Consumer, cyclical | 8% | |
Energy | 7% | |
Other sectors | 5% | |
Cash/Other | 5% |
30 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
UNAUDITED | 04.30.2009 |
EAGLE SMALL CAP GROWTH FUND (cont’d) | ||||||
Common stocks—98.8% (a) | Shares | Value | ||||
Multimedia—1.0% | ||||||
FactSet Research Systems Inc. | 49,352 | $2,644,774 | ||||
Oil & gas services—5.0% | ||||||
Core Laboratories NV | 42,180 | 3,510,641 | ||||
Lufkin Industries, Inc. | 123,774 | 4,319,713 | ||||
Oceaneering International Inc.* | 58,875 | 2,682,934 | ||||
OYO Geospace Corporation* | 138,383 | 2,200,290 | ||||
Pharmaceuticals—3.9% | ||||||
BioMarin Pharmaceutical Inc.* | 229,525 | 2,951,692 | ||||
Herbalife Ltd. | 114,855 | 2,276,426 | ||||
Onyx Pharmaceuticals Inc.* | 87,265 | 2,260,164 | ||||
Perrigo Company | 97,215 | 2,519,813 | ||||
Retail—8.4% | ||||||
BJ’s Restaurants, Inc.* | 307,270 | 5,066,882 | ||||
Cash America International, Inc. | 298,730 | 6,679,603 | ||||
Copart Inc.* | 72,640 | 2,280,170 | ||||
Genesco Inc.* | 327,587 | 7,462,432 | ||||
Semiconductors—6.0% | ||||||
Macrovision Solutions Corporation* | 315,425 | 6,377,894 | ||||
ON Semiconductor Corporation* | 464,775 | 2,519,080 | ||||
Varian Semiconductor Equipment Associates Inc.* | 251,185 | 6,427,824 | ||||
Software—8.8% | ||||||
Ansys Inc.* | 182,290 | 5,034,850 | ||||
Eclipsys Corporation* | 381,281 | 5,032,909 | ||||
Informatica Corporation* | 154,865 | 2,462,354 | ||||
MedAssets Inc.* | 143,588 | 2,475,457 | ||||
Novell Inc.* | 615,685 | 2,314,976 | ||||
Quality Systems, Inc. | 95,606 | 5,126,394 | ||||
Telecommunications—2.1% | ||||||
EMS Technologies, Inc.* | 278,355 | 5,302,663 | ||||
Transportation—2.0% | ||||||
Landstar System Inc. | 142,575 | 5,077,090 | ||||
Total common stocks (cost $241,366,312) | 252,700,534 |
Repurchase agreement—5.3% (a) | Value | ||||||
Repurchase agreement with Fixed Income Clearing Corporation dated April 30, 2009 @ 0.06% to be repurchased at $13,566,023 on May 1, 2009, collateralized by $14,045,000 United States Treasury Notes, 1.875% due February 28, 2014 (market value $14,009,649 including interest) (cost $13,566,000) | $13,566,000 | ||||||
Total investment portfolio (cost $254,932,312) 104.1% (a) | 266,266,534 | ||||||
Other assets and liabilities, net, (4.1%) (a) | (10,376,643 | ) | |||||
Net assets, 100.0% | $255,889,891 | ||||||
* Non-income producing security. (a) Percentages indicated are based on net assets. | |||||||
ADR—American depository receipt. |
Sector allocation | ||
Sector | Percent of net assets | |
Consumer, non-cyclical | 28% | |
Consumer, cyclical | 21% | |
Technology | 20% | |
Industrial | 9% | |
Communications | 7% | |
Basic materials | 6% | |
Energy | 5% | |
Financial | 3% | |
Cash/Other | 1% |
The accompanying notes are an integral part of the financial statements. | 31 |
Table of Contents
Statements of Assets and Liabilities
UNAUDITED | 04.30.2009 |
Eagle Fund | Eagle Fund | Eagle Fund | Eagle Core Fund | Eagle Growth Fund | Eagle Stock Fund | Eagle Small Cap Core Value Fund | Eagle Fund | |||||||||||||||||
Assets | ||||||||||||||||||||||||
Investments, at value (a) | $403,783,709 | $91,755,449 | $106,802,615 | $99,276,720 | $123,740,479 | $1,032,001,572 | $44,741,433 | $252,700,534 | ||||||||||||||||
Repurchase agreements (b) | 4,514,000 | 1,276,000 | 5,150,000 | 9,239,000 | 3,715,000 | 32,606,000 | 2,958,000 | 13,566,000 | ||||||||||||||||
Cash | 344 | 537 | 667 | 473 | 210 | 137 | 688 | 124 | ||||||||||||||||
Foreign currency (identified cost $78,657) | — | — | 79,011 | — | — | — | — | — | ||||||||||||||||
Receivable for investments sold | 5,985,764 | 14,851 | 2,067,126 | — | 1,571,766 | 40,387,628 | 31,156 | 159,929 | ||||||||||||||||
Receivable for fund shares sold | 893,700 | 212,174 | 87,268 | 297,570 | 514,326 | 8,111,670 | 153,048 | 597,287 | ||||||||||||||||
Receivable for dividends and interest | 101,796 | 519,991 | 296,500 | 75,010 | 44,945 | 250,160 | 5 | 3,609 | ||||||||||||||||
Receivable for recoverable foreign withholding taxes | — | 898 | 191,080 | — | — | — | — | — | ||||||||||||||||
Prepaid expenses | 57,399 | 43,456 | 50,062 | 41,925 | 33,504 | 69,484 | 55,949 | 46,675 | ||||||||||||||||
Unrealized gain on forward foreign currency contracts | — | — | 991,480 | — | — | — | — | — | ||||||||||||||||
Total assets | 415,336,712 | 93,823,356 | 115,715,809 | 108,930,698 | 129,620,230 | 1,113,426,651 | 47,940,279 | 267,074,158 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Payable for investments purchased | 2,853,485 | 59,332 | 2,950,092 | — | 3,853,364 | 65,207,958 | 416,948 | 10,195,762 | ||||||||||||||||
Payable for fund shares redeemed | 1,021,148 | 173,730 | 1,178,833 | 585,255 | 267,960 | 3,136,879 | 319,921 | 660,614 | ||||||||||||||||
Accrued investment advisory fee | 193,447 | 28,088 | 56,855 | 50,982 | 58,840 | 466,868 | 4,946 | 120,119 | ||||||||||||||||
Accrued administrative fee | 47,450 | 11,092 | 13,433 | 3,617 | 14,649 | 116,432 | 1,451 | 28,491 | ||||||||||||||||
Accrued distribution fee | 120,803 | 38,838 | 59,781 | 8,106 | 47,761 | 297,154 | 2,344 | 71,736 | ||||||||||||||||
Accrued shareholder servicing fee | 75,059 | 14,358 | 20,269 | — | 20,476 | 200,659 | — | 46,862 | ||||||||||||||||
Accrued fund accounting fee | 8,329 | 4,735 | 11,792 | 8,251 | 7,578 | 8,118 | 8,040 | 8,381 | ||||||||||||||||
Accrued internal audit fees | 63 | 63 | 63 | 63 | 63 | 63 | 63 | 63 | ||||||||||||||||
Accrued trustees and officers compensation | 7,248 | 8,548 | 8,548 | 8,543 | 8,548 | 8,547 | 8,865 | 8,548 | ||||||||||||||||
Unrealized loss on forward foreign currency contracts | — | — | 854,254 | — | — | — | — | — | ||||||||||||||||
Other accrued expenses | 56,411 | 32,160 | 69,871 | 41,150 | 33,845 | 98,415 | 39,061 | 43,691 | ||||||||||||||||
Total liabilities | 4,383,443 | 370,944 | 5,223,791 | 705,967 | 4,313,084 | 69,541,093 | 801,639 | 11,184,267 | ||||||||||||||||
Net assets | 410,953,269 | 93,452,412 | 110,492,018 | 108,224,731 | 125,307,146 | 1,043,885,558 | 47,138,640 | 255,889,891 | ||||||||||||||||
Net assets consists of | ||||||||||||||||||||||||
Paid-in capital | 521,954,077 | 126,310,814 | 212,663,426 | 192,354,644 | 147,173,012 | 1,530,339,691 | 38,484,907 | 330,699,911 | ||||||||||||||||
Undistributed net investment income (loss) | (843,522 | ) | 83,757 | (5,740,309 | ) | 432,830 | (446,255 | ) | (1,707,078 | ) | (13,362 | ) | (1,076,556 | ) | ||||||||||
Accumulated net realized gain (loss) | (98,916,045 | ) | (21,814,880 | ) | (94,178,133 | ) | (61,839,456 | ) | (26,306,977 | ) | (477,113,755 | ) | 55,218 | (85,067,686 | ) | |||||||||
Unrealized gain on forward foreign currency contracts | — | — | 137,226 | — | — | — | — | — | ||||||||||||||||
Net unrealized appreciation (depreciation) on investments and other assets and liabilities denominated in foreign currencies | (11,241,241 | ) | (11,127,279 | ) | (2,390,192 | ) | (22,723,287 | ) | 4,887,366 | (7,633,300 | ) | 8,611,877 | 11,334,222 | |||||||||||
Net assets | 410,953,269 | 93,452,412 | 110,492,018 | 108,224,731 | 125,307,146 | 1,043,885,558 | 47,138,640 | 255,889,891 | ||||||||||||||||
Net assets, at market value | ||||||||||||||||||||||||
Class A | 311,676,446 | 58,845,853 | 49,044,221 | 9,661,501 | 83,677,424 | 685,536,317 | 3,873,492 | 165,211,475 | ||||||||||||||||
Class C | 75,440,697 | 34,352,441 | 61,429,875 | 7,908,768 | 39,907,486 | 202,542,201 | 2,075,360 | 49,543,108 | ||||||||||||||||
Class I | 6,887,010 | 254,118 | 17,922 | 90,640,773 | 1,577,122 | 104,804,518 | 41,189,788 | 16,106,371 | ||||||||||||||||
Class R-3 | 356,446 | — | — | — | 145,114 | 1,773,742 | — | 1,484,953 | ||||||||||||||||
Class R-5 | 16,592,670 | — | — | 13,689 | — | 49,228,780 | — | 23,543,984 | ||||||||||||||||
Net asset value (“NAV”), offering and redemption price per share | ||||||||||||||||||||||||
Class A | $19.20 | $9.47 | $15.71 | $10.13 | $18.56 | $17.76 | $13.59 | $21.12 | ||||||||||||||||
Maximum offering price (c) | $20.16 | $9.94 | $16.49 | $10.64 | $19.49 | $18.65 | $14.27 | $22.17 | ||||||||||||||||
Class C | $16.93 | $9.21 | $14.30 | $10.04 | $16.55 | $15.77 | $13.54 | $18.11 | ||||||||||||||||
Class I | $19.44 | $9.46 | $15.73 | $10.11 | $18.80 | $17.95 | $13.60 | $21.35 | ||||||||||||||||
Class R-3 | $19.11 | $— | $— | $— | $18.54 | $17.67 | $— | $21.02 | ||||||||||||||||
Class R-5 | $19.40 | $— | $— | $10.33 | $— | $17.97 | $— | $21.35 | ||||||||||||||||
Shares of beneficial interest outstanding | ||||||||||||||||||||||||
Class A | 16,235,803 | 6,214,593 | 3,122,119 | 954,143 | 4,509,488 | 38,599,695 | 285,017 | 7,823,841 | ||||||||||||||||
Class C | 4,455,065 | 3,729,867 | 4,296,527 | 788,040 | 2,411,548 | 12,841,809 | 153,272 | 2,735,488 | ||||||||||||||||
Class I | 354,185 | 26,866 | 1,139 | 8,966,238 | 83,891 | 5,840,096 | 3,028,835 | 754,369 | ||||||||||||||||
Class R-3 | 18,657 | — | — | — | 7,828 | 100,357 | — | 70,651 | ||||||||||||||||
Class R-5 | 855,409 | — | — | 1,325 | — | 2,739,864 | — | 1,102,927 | ||||||||||||||||
(a) Identified cost | $415,024,950 | $102,882,930 | $109,182,843 | $122,000,007 | $118,853,113 | $1,039,634,872 | $36,129,556 | $241,366,312 |
(b) Identified cost is the same as value. (c) Maximum offering price is computed as 100/95.25 of NAV.
32 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
UNAUDITED | 04.30.2009 |
Eagle Fund | Eagle & Income Fund | Eagle Fund | Eagle Fund | Eagle Growth Fund | Eagle Stock Fund | Eagle Core Value | Eagle Growth Fund | |||||||||||||||||
Investment income | ||||||||||||||||||||||||
Dividends (a) | $1,870,425 | $1,334,675 | $1,720,489 | $1,506,838 | $525,499 | $5,310,046 | $69,848 | $715,592 | ||||||||||||||||
Interest | 2,497 | 723,395 | 5,086 | 2,319 | 1,997 | 8,260 | 332 | 3,049 | ||||||||||||||||
Total income | 1,872,922 | 2,058,070 | 1,725,575 | 1,509,157 | 527,496 | 5,318,306 | 70,180 | 718,641 | ||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment advisory fee | 1,105,755 | 266,514 | 506,744 | 350,916 | 340,125 | 2,782,223 | 41,541 | 683,208 | ||||||||||||||||
Administrative fee | 270,892 | 66,623 | 94,047 | 62,653 | 84,750 | 699,649 | 8,088 | 164,862 | ||||||||||||||||
Distribution fees | 692,894 | 232,994 | 421,056 | 48,805 | 278,556 | 1,812,494 | 11,880 | 432,218 | ||||||||||||||||
Shareholder servicing fees | 442,917 | 93,943 | 136,867 | 166,593 | 124,350 | 1,224,427 | 23,313 | 296,408 | ||||||||||||||||
Fund accounting fee | 50,120 | 48,190 | 38,449 | 49,043 | 47,964 | 49,910 | 47,813 | 50,173 | ||||||||||||||||
Professional fees | 41,734 | 57,319 | 53,750 | 35,856 | 35,849 | 35,870 | 34,957 | 34,899 | ||||||||||||||||
State qualification expenses | 52,912 | 41,539 | 52,772 | 32,283 | 32,971 | 63,540 | 7,210 | 36,144 | ||||||||||||||||
Organizational costs | — | — | — | — | — | — | 43,530 | — | ||||||||||||||||
Offering costs | — | — | — | — | — | — | 40,553 | — | ||||||||||||||||
Reports to shareholders | 24,107 | 5,378 | 8,438 | 13,129 | 6,747 | 64,404 | 5,924 | 14,849 | ||||||||||||||||
Trustees and officers compensation | 18,281 | 20,706 | 20,706 | 20,701 | 20,706 | 20,708 | 20,390 | 20,706 | ||||||||||||||||
Custodian fee | 10,744 | 10,312 | 91,084 | 4,136 | 4,524 | 35,688 | 16,961 | 13,432 | ||||||||||||||||
Internal audit fees | 1,240 | 1,240 | 1,240 | 1,240 | 1,240 | 1,240 | 1,240 | 1,240 | ||||||||||||||||
Other | 20,041 | 13,972 | 15,888 | 14,253 | 13,942 | 29,747 | 7,890 | 16,534 | ||||||||||||||||
Total expenses before adjustments | 2,731,637 | 858,730 | 1,441,041 | 799,608 | 991,724 | 6,819,900 | 311,290 | 1,764,673 | ||||||||||||||||
Fees and expenses waived | (15,136 | ) | (121,679 | ) | (106,892 | ) | (179,509 | ) | (17,906 | ) | (1,590 | ) | (227,720 | ) | (26,783 | ) | ||||||||
Recovered fees previously waived by Manager | — | — | — | — | — | — | — | 29 | ||||||||||||||||
Expense offsets | (57 | ) | (320 | ) | (397 | ) | (64 | ) | (67 | ) | (931 | ) | (28 | ) | (208 | ) | ||||||||
Total expenses after adjustments | 2,716,444 | 736,731 | 1,333,752 | 620,035 | 973,751 | 6,817,379 | 83,542 | 1,737,711 | ||||||||||||||||
Net investment income (loss) | (843,522 | ) | 1,321,339 | 391,823 | 889,122 | (446,255 | ) | (1,499,073 | ) | (13,362 | ) | (1,019,070 | ) | |||||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||||||||||
Net realized gain (loss) on investments | (62,141,165 | ) | (10,676,675 | ) | (39,949,770 | ) | (35,542,788 | ) | (20,099,454 | ) | (291,687,507 | ) | 55,218 | (79,737,913 | ) | |||||||||
Net realized gain (loss) on foreign currency transactions | — | (78,059 | ) | 2,892,820 | — | — | — | — | — | |||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 68,262,767 | 7,827,479 | 26,546,298 | 23,265,605 | 19,232,079 | 250,127,889 | 8,611,877 | 63,537,169 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | — | 433 | (5,216,193 | ) | — | — | — | — | — | |||||||||||||||
Net gain (loss) on investments | 6,121,602 | (2,926,822 | ) | (15,726,845 | ) | (12,277,183 | ) | (867,375 | ) | (41,559,618 | ) | 8,667,095 | (16,200,744 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 5,278,080 | (1,605,483 | ) | (15,335,022 | ) | (11,388,061 | ) | (1,313,630 | ) | (43,058,691 | ) | 8,653,733 | (17,219,814 | ) | ||||||||||
(a) Net of foreign witholding taxes | $21,474 | $45,056 | $189,076 | $3,966 | $— | $230,997 | $109 | $2,108 |
The accompanying notes are an integral part of the financial statements. | 33 |
Table of Contents
Statements of Changes in Net Assets
Eagle Capital Appreciation Fund | Eagle Growth & Income Fund | Eagle International Equity Fund | ||||||||||||||||
11/1/08 to 4/30/09* | 11/1/07 to 10/31/08 | 11/1/08 to 4/30/09* | 11/1/07 to 10/31/08 | 11/1/08 to 4/30/09* | 11/1/07 to 10/31/08 | |||||||||||||
Net assets, beginning of period | $442,306,086 | $798,609,436 | $96,988,805 | $155,175,889 | $163,841,193 | $355,441,137 | ||||||||||||
Increase (decrease) in net assets from operations | ||||||||||||||||||
Net investment income (loss) | (843,522 | ) | (3,880,656 | ) | 1,321,339 | 3,353,777 | 391,823 | 2,084,572 | ||||||||||
Net realized gain (loss) on investments | (62,141,165 | ) | (36,256,072 | ) | (10,676,675 | ) | (11,144,112 | ) | (39,949,770 | ) | (56,536,379 | ) | ||||||
Net realized gain (loss) on foreign currency transactions | — | — | (78,059 | ) | (88,409 | ) | 2,892,820 | (5,613,165 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on investments | 68,262,767 | (266,804,581 | ) | 7,827,479 | (52,549,084 | ) | 26,546,298 | (112,575,601 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | — | — | 433 | (1,134 | ) | (5,216,193 | ) | 8,890,840 | ||||||||||
Net increase (decrease) in net assets resulting from operations | 5,278,080 | (306,941,309 | ) | (1,605,483 | ) | (60,428,962 | ) | (15,335,022 | ) | (163,749,733 | ) | |||||||
Distributions to shareholders from | ||||||||||||||||||
Net investment income | — | — | (1,296,166 | ) | (3,132,953 | ) | (5,314,007 | ) | — | |||||||||
Net realized gains | — | (103,643,660 | ) | — | (16,433,145 | ) | — | (29,731,569 | ) | |||||||||
Net distributions to shareholders | — | (103,643,660 | ) | (1,296,166 | ) | (19,566,098 | ) | (5,314,007 | ) | (29,731,569 | ) | |||||||
Fund share transactions | ||||||||||||||||||
Proceeds from shares sold-Class A | 50,467,503 | 118,285,838 | 10,917,378 | 26,881,601 | 6,658,435 | 33,902,443 | ||||||||||||
Issued as reinvestment of distributions-Class A | — | 68,156,580 | 802,154 | 11,476,026 | 2,253,539 | 12,054,716 | ||||||||||||
Cost of shares redeemed-Class A | (73,385,992 | ) | (125,108,543 | ) | (12,272,783 | ) | (23,383,744 | ) | (23,529,591 | ) | (49,902,065 | ) | ||||||
Proceeds from shares sold-Class C | 3,150,049 | 11,219,254 | 4,686,690 | 10,427,722 | 4,455,547 | 20,981,495 | ||||||||||||
Issued as reinvestment of distributions-Class C | — | 21,930,491 | 375,709 | 6,878,799 | 2,610,913 | 15,706,259 | ||||||||||||
Cost of shares redeemed-Class C | (14,629,040 | ) | (28,890,205 | ) | (5,379,881 | ) | (10,472,428 | ) | (25,294,221 | ) | (30,861,490 | ) | ||||||
Proceeds from shares sold-Class I | 3,104,538 | 12,382,442 | 237,379 | — | 1,115,488 | — | ||||||||||||
Issued as reinvestment of distributions-Class I | — | 6,449,529 | 208 | — | — | — | ||||||||||||
Cost of shares redeemed-Class I | (5,286,649 | ) | (44,403,907 | ) | (1,598 | ) | — | (970,256 | ) | — | ||||||||
Proceeds from shares sold-Class R-3 | 93,061 | 400,004 | — | — | — | — | ||||||||||||
Issued as reinvestment of distributions-Class R-3 | — | 43,729 | — | — | — | — | ||||||||||||
Cost of shares redeemed-Class R-3 | (6,262 | ) | (14,594 | ) | — | — | — | — | ||||||||||
Proceeds from shares sold-Class R-5 | 2,233,934 | 15,228,408 | — | — | — | — | ||||||||||||
Issued as reinvestment of distributions-Class R-5 | — | 1,474,877 | — | — | — | — | ||||||||||||
Cost of shares redeemed-Class R-5 | (2,372,039 | ) | (2,872,284 | ) | — | — | — | — | ||||||||||
Net increase (decrease) from fund share transactions | (36,630,897 | ) | 54,281,619 | (634,744 | ) | 21,807,976 | (32,700,146 | ) | 1,881,358 | |||||||||
Increase (decrease) in net assets | (31,352,817 | ) | (356,303,350 | ) | (3,536,393 | ) | (58,187,084 | ) | (53,349,175 | ) | (191,599,944 | ) | ||||||
Net assets, end of period (a) | 410,953,269 | 442,306,086 | 93,452,412 | 96,988,805 | 110,492,018 | 163,841,193 | ||||||||||||
(a) Includes undistributed net investment income | ||||||||||||||||||
(accumulated net investment loss) of: | $(843,522 | ) | $— | $83,757 | $58,585 | $(5,740,309 | ) | $(818,125 | ) | |||||||||
Shares issued and redeemed | ||||||||||||||||||
Shares sold-Class A | 3,092,953 | 4,401,661 | 1,212,899 | 1,944,177 | 417,616 | 1,176,855 | ||||||||||||
Issued as reinvestment of distributions-Class A | — | 2,308,827 | 87,346 | 774,232 | 134,975 | 383,298 | ||||||||||||
Shares redeemed-Class A | (4,589,362 | ) | (4,710,480 | ) | (1,394,374 | ) | (1,830,375 | ) | (1,513,370 | ) | (2,024,518 | ) | ||||||
Shares sold-Class C | 216,567 | 471,548 | 540,037 | 789,739 | 307,666 | 780,157 | ||||||||||||
Issued as reinvestment of distributions-Class C | — | 833,225 | 41,978 | 470,547 | 171,305 | 546,685 | ||||||||||||
Shares redeemed-Class C | (1,039,281 | ) | (1,224,037 | ) | (632,534 | ) | (873,410 | ) | (1,826,000 | ) | (1,309,460 | ) | ||||||
Shares sold-Class I | 180,976 | 450,245 | 27,028 | — | 71,653 | — | ||||||||||||
Issued as reinvestment of distributions-Class I | — | 216,864 | 23 | — | — | — | ||||||||||||
Shares redeemed-Class I | (336,924 | ) | (1,567,257 | ) | (185 | ) | — | (70,513 | ) | — | ||||||||
Shares sold-Class R-3 | 5,856 | 12,238 | — | — | — | — | ||||||||||||
Issued as reinvestment of distributions-Class R-3 | — | 1,483 | — | — | — | — | ||||||||||||
Shares redeemed-Class R-3 | (426 | ) | (507 | ) | — | — | — | — | ||||||||||
Shares sold-Class R-5 | 137,990 | 599,448 | — | — | — | — | ||||||||||||
Issued as reinvestment of distributions-Class R-5 | — | 49,709 | — | — | — | — | ||||||||||||
Shares redeemed-Class R-5 | (146,379 | ) | (107,246 | ) | — | — | — | — | ||||||||||
Shares issued and redeemed | (2,478,030 | ) | 1,735,721 | (117,782 | ) | 1,274,910 | (2,306,668 | ) | (446,983 | ) |
* Unaudited.
(b) For the period November 3, 2008 (commencement of operations) to April 30, 2009.
34 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Statements of Changes in Net Assets
Eagle Large Cap Core Fund | Eagle Mid Cap Growth Fund | Eagle Mid Cap Stock Fund | Eagle Small Cap Core Value Fund | Eagle Small Cap Growth Fund | |||||||||||||||||||||
11/1/08 to 4/30/09* | 11/1/07 to 10/31/08 | 11/1/08 to 4/30/09* | 11/1/07 to 10/31/08 | 11/1/08 to 4/30/09* | 11/1/07 to 10/31/08 | 11/3/08 to 4/30/09*(b) | 11/1/08 to 4/30/09* | 11/1/07 to 10/31/08 | |||||||||||||||||
$150,519,698 | $227,229,575 | $128,341,052 | $199,359,924 | $1,113,403,737 | $1,851,253,969 | $— | $270,399,419 | $453,905,178 | |||||||||||||||||
889,122 | 2,633,593 | (446,255 | ) | (1,783,699 | ) | (1,499,073 | ) | (7,445,071 | ) | (13,362 | ) | (1,019,070 | ) | (2,470,379 | ) | ||||||||||
(35,542,788 | ) | (26,265,250 | ) | (20,099,454 | ) | (6,184,729 | ) | (291,687,507 | ) | (184,448,892 | ) | 55,218 | (79,737,913 | ) | (5,534,706 | ) | |||||||||
— | — | — | — | — | — | — | — | — | |||||||||||||||||
23,265,605 | (65,481,119 | ) | 19,232,079 | (65,769,900 | ) | 250,127,889 | (484,155,218 | ) | 8,611,877 | 63,537,169 | (146,264,024 | ) | |||||||||||||
— | — | — | — | — | — | — | — | — | |||||||||||||||||
(11,388,061 | ) | (89,112,776 | ) | (1,313,630 | ) | (73,738,328 | ) | (43,058,691 | ) | (676,049,181 | ) | 8,653,733 | (17,219,814 | ) | (154,269,109 | ) | |||||||||
(2,233,573 | ) | (2,264,236 | ) | — | — | — | — | — | — | — | |||||||||||||||
— | (9,857,625 | ) | — | (31,289,716 | ) | — | (192,218,338 | ) | — | — | (64,932,432 | ) | |||||||||||||
(2,233,573 | ) | (12,121,861 | ) | — | (31,289,716 | ) | — | (192,218,338 | ) | — | — | (64,932,432 | ) | ||||||||||||
1,101,987 | 1,310,227 | 13,079,743 | 43,348,883 | 103,026,185 | 299,989,289 | 4,018,410 | 31,018,865 | 53,347,219 | |||||||||||||||||
109,742 | 1,255,722 | — | 18,440,356 | — | 123,720,543 | — | — | 40,301,242 | |||||||||||||||||
(2,950,765 | ) | (7,264,053 | ) | (14,380,228 | ) | (37,287,018 | ) | (164,925,842 | ) | (349,161,747 | ) | (251,692 | ) | (41,085,601 | ) | (76,895,401 | ) | ||||||||
935,312 | 1,174,441 | 4,562,416 | 7,343,501 | 15,212,557 | 35,563,183 | 2,248,897 | 5,171,951 | 7,442,761 | |||||||||||||||||
10,057 | 724,547 | — | 11,382,863 | — | 44,098,171 | — | — | 16,249,154 | |||||||||||||||||
(1,334,373 | ) | (3,842,387 | ) | (6,122,167 | ) | (9,809,215 | ) | (31,357,255 | ) | (69,639,518 | ) | (184,514 | ) | (10,365,965 | ) | (20,554,061 | ) | ||||||||
14,439,293 | 55,159,182 | 1,083,628 | 596,622 | 47,328,248 | 52,215,459 | 34,099,024 | 5,916,058 | 11,459,985 | |||||||||||||||||
2,048,529 | 9,891,817 | — | 3,067 | — | 8,841,731 | — | — | 261,024 | |||||||||||||||||
(43,036,205 | ) | (33,440,579 | ) | (82,479 | ) | (9,887 | ) | (19,367,945 | ) | (23,038,716 | ) | (1,445,218 | ) | (305,465 | ) | (513,264 | ) | ||||||||
— | — | 250,304 | — | 758,554 | 736,148 | — | 651,185 | 1,055,844 | |||||||||||||||||
— | — | — | — | — | 156,975 | — | — | 115,250 | |||||||||||||||||
— | — | (111,493 | ) | — | (228,093 | ) | (307,396 | ) | — | (268,242 | ) | (439,855 | ) | ||||||||||||
3,260 | 20,981 | — | — | 25,958,312 | 11,551,921 | — | 12,865,559 | 3,885,729 | |||||||||||||||||
— | 32,104 | — | — | — | 3,591,397 | — | — | 2,091,439 | |||||||||||||||||
(170 | ) | (497,242 | ) | — | — | (2,864,209 | ) | (7,900,153 | ) | — | (888,059 | ) | (2,111,284 | ) | |||||||||||
(28,673,333 | ) | 24,524,760 | (1,720,276 | ) | 34,009,172 | (26,459,488 | ) | 130,417,287 | 38,484,907 | 2,710,286 | 35,695,782 | ||||||||||||||
(42,294,967 | ) | (76,709,877 | ) | (3,033,906 | ) | (71,018,872 | ) | (69,518,179 | ) | (737,850,232 | ) | 47,138,640 | (14,509,528 | ) | (183,505,759 | ) | |||||||||
108,224,731 | 150,519,698 | 125,307,146 | 128,341,052 | 1,043,885,558 | 1,113,403,737 | 47,138,640 | 255,889,891 | 270,399,419 | |||||||||||||||||
$432,830 | $1,777,281 | $(446,255 | ) | $— | $(1,707,078 | ) | $(208,006 | ) | $(1,076,556 | ) | $— | $(57,486 | ) | ||||||||||||
117,172 | 89,389 | 777,412 | 1,624,921 | 6,241,212 | 11,858,534 | 306,020 | 1,575,555 | 1,756,567 | |||||||||||||||||
11,725 | 77,514 | — | 655,075 | — | 4,409,143 | — | — | 1,229,446 | |||||||||||||||||
(318,157 | ) | (508,538 | ) | (871,082 | ) | (1,451,021 | ) | (10,203,644 | ) | (13,976,492 | ) | (21,003 | ) | (2,138,260 | ) | (2,503,255 | ) | ||||||||
101,935 | 85,777 | 304,620 | 323,618 | 1,029,017 | 1,562,513 | 169,633 | 309,545 | 284,056 | |||||||||||||||||
1,080 | 45,143 | — | 448,674 | — | 1,752,013 | — | — | 571,952 | |||||||||||||||||
(147,480 | ) | (277,165 | ) | (419,036 | ) | (432,832 | ) | (2,189,792 | ) | (3,147,144 | ) | (16,361 | ) | (622,481 | ) | (794,862 | ) | ||||||||
1,598,202 | 3,778,562 | 65,229 | 23,582 | 2,774,988 | 2,046,289 | 3,144,099 | 313,896 | 417,971 | |||||||||||||||||
219,564 | 610,606 | — | 108 | — | 313,425 | — | — | 7,919 | |||||||||||||||||
(4,919,670 | ) | (2,462,445 | ) | (5,208 | ) | (390 | ) | (1,200,303 | ) | (955,523 | ) | (115,264 | ) | (15,767 | ) | (16,748 | ) | ||||||||
— | — | 14,867 | — | 46,645 | 28,616 | — | 34,492 | 38,904 | |||||||||||||||||
— | — | — | — | — | 5,610 | — | — | 3,526 | |||||||||||||||||
— | — | (7,039 | ) | — | (14,161 | ) | (11,863 | ) | — | (14,246 | ) | (14,232 | ) | ||||||||||||
333 | 1,379 | — | — | 1,620,387 | 435,351 | — | 670,071 | 128,628 | |||||||||||||||||
— | 1,988 | — | — | — | 127,309 | — | — | 63,473 | |||||||||||||||||
(18 | ) | (34,958 | ) | — | — | (177,811 | ) | (303,381 | ) | — | (45,616 | ) | (69,307 | ) | |||||||||||
(3,335,314 | ) | 1,407,252 | (140,237 | ) | 1,191,735 | (2,073,462 | ) | 4,144,400 | 3,467,124 | 67,189 | 1,104,038 |
The accompanying notes are an integral part of the financial statements. | 35 |
Table of Contents
Fiscal periods† | From investment operations | Dividends & distributions | Ratios to average daily net assets (%) | |||||||||||||||||||||||||||||||||||||||
Beginning value | Income (loss) | Realized & gain (loss) | Total | From income | From gains | Total | Ending value | With recovered | Without recovered | Net (loss) | Portfolio rate (%) | Total (%) (a) | Ending (millions) | |||||||||||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||||||||||||||||||||||||
Eagle Capital Appreciation Fund | ||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | * | $18.58 | $ | (0.03 | ) | $0.65 | $0.62 | $— | $— | $— | $19.20 | 1.35 | (c) | 1.36 | (c) | (0.34 | )(c) | 23 | 3.34 | (d) | $312 | ||||||||||||||||||||
11/01/07 | 10/31/08 | * | 35.99 | (0.13 | ) | (12.71 | ) | (12.84 | ) | — | (4.57 | ) | (4.57 | ) | 18.58 | 1.20 | 1.20 | (0.45 | ) | 61 | (40.38 | ) | 329 | |||||||||||||||||||
11/01/06 | 10/31/07 | * | 29.67 | 0.04 | 6.46 | (b) | 6.50 | — | (0.18 | ) | (0.18 | ) | 35.99 | 1.20 | 1.20 | 0.11 | 62 | 22.02 | 566 | |||||||||||||||||||||||
09/01/06 | 10/31/06 | * | 28.59 | (0.01 | ) | 1.09 | (b) | 1.08 | — | — | — | 29.67 | 1.23 | (c) | 1.23 | (c) | (0.19 | )(c) | 7 | 3.78 | (d) | 387 | ||||||||||||||||||||
09/01/05 | 08/31/06 | * | 26.28 | (0.06 | ) | 2.37 | (b) | 2.31 | — | — | — | 28.59 | 1.19 | 1.19 | (0.23 | ) | 58 | 8.79 | 378 | |||||||||||||||||||||||
09/01/04 | 08/31/05 | * | 22.85 | — | 3.43 | (b) | 3.43 | — | — | — | 26.28 | 1.18 | 1.18 | 0.01 | 42 | 15.01 | 391 | |||||||||||||||||||||||||
09/01/03 | 08/31/04 | 21.82 | (0.08 | ) | 1.11 | 1.03 | — | — | — | 22.85 | 1.19 | 1.19 | (0.39 | ) | 27 | 4.72 | 321 | |||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | * | 16.45 | (0.08 | ) | 0.56 | 0.48 | — | — | — | 16.93 | 2.13 | (c) | 2.13 | (c) | (1.11 | )(c) | 23 | 2.92 | (d) | 75 | |||||||||||||||||||||
11/01/07 | 10/31/08 | * | 32.64 | (0.30 | ) | (11.32 | ) | (11.62 | ) | — | (4.57 | ) | (4.57 | ) | 16.45 | 1.95 | 1.95 | (1.19 | ) | 61 | (40.85 | ) | 87 | |||||||||||||||||||
11/01/06 | 10/31/07 | * | 27.13 | (0.19 | ) | 5.88 | (b) | 5.69 | — | (0.18 | ) | (0.18 | ) | 32.64 | 1.96 | 1.96 | (0.65 | ) | 62 | 21.09 | 170 | |||||||||||||||||||||
09/01/06 | 10/31/06 | * | 26.17 | (0.04 | ) | 1.00 | (b) | 0.96 | — | — | — | 27.13 | 1.99 | (c) | 1.99 | (c) | (0.94 | )(c) | 7 | 3.67 | (d) | 149 | ||||||||||||||||||||
09/01/05 | 08/31/06 | * | 24.29 | (0.25 | ) | 2.13 | (b) | 1.88 | — | — | — | 26.17 | 1.94 | 1.94 | (0.98 | ) | 58 | 7.74 | 145 | |||||||||||||||||||||||
09/01/04 | 08/31/05 | * | 21.27 | (0.17 | ) | 3.19 | (b) | 3.02 | — | — | — | 24.29 | 1.93 | 1.93 | (0.73 | ) | 42 | 14.20 | 120 | |||||||||||||||||||||||
09/01/03 | 08/31/04 | 20.46 | (0.24 | ) | 1.05 | 0.81 | — | — | — | 21.27 | 1.94 | 1.94 | (1.14 | ) | 27 | 3.96 | 111 | |||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 18.78 | 0.01 | 0.65 | 0.66 | — | — | — | 19.44 | 0.95 | (c) | 0.98 | (c) | 0.12 | (c) | 23 | 3.51 | (d) | 7 | |||||||||||||||||||||||
11/01/07 | 10/31/08 | 36.21 | — | (12.86 | ) | (12.86 | ) | — | (4.57 | ) | (4.57 | ) | 18.78 | 0.79 | 0.79 | (0.01 | ) | 61 | (40.16 | ) | 10 | |||||||||||||||||||||
11/01/06 | 10/31/07 | 29.73 | 0.17 | 6.49 | (b) | 6.66 | — | (0.18 | ) | (0.18 | ) | 36.21 | 0.80 | 0.80 | 0.51 | 62 | 22.51 | 51 | ||||||||||||||||||||||||
09/01/06 | 10/31/06 | 28.63 | 0.01 | 1.09 | (b) | 1.10 | — | — | — | 29.73 | 0.85 | (c) | 0.85 | (c) | 0.20 | (c) | 7 | 3.84 | (d) | 30 | ||||||||||||||||||||||
03/21/06 | 08/31/06 | 28.93 | 0.01 | (0.31 | )(b) | (0.30 | ) | — | — | — | 28.63 | 0.91 | (c) | 0.91 | (c) | 0.07 | (c) | 58 | (1.04 | )(d) | 26 | |||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 18.51 | (0.05 | ) | 0.65 | 0.60 | — | — | — | 19.11 | 1.57 | (c) | 1.57 | (c) | (0.58 | )(c) | 23 | 3.24 | (d) | 0 | ||||||||||||||||||||||
11/01/07 | 10/31/08 | 35.97 | (0.20 | ) | (12.69 | ) | (12.89 | ) | — | (4.57 | ) | (4.57 | ) | 18.51 | 1.42 | 1.42 | (0.70 | ) | 61 | (40.56 | ) | 0 | ||||||||||||||||||||
09/12/07 | 10/31/07 | 33.30 | (0.05 | ) | 2.72 | (b) | 2.67 | — | — | — | 35.97 | 1.65 | (c) | 7.17 | (c) | (1.26 | )(c) | 62 | 8.02 | (d) | 0 | |||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 18.73 | 0.01 | 0.66 | 0.67 | — | — | — | 19.40 | 0.91 | (c) | 0.91 | (c) | 0.08 | (c) | 23 | 3.58 | (d) | 17 | |||||||||||||||||||||||
11/01/07 | 10/31/08 | 36.13 | (0.04 | ) | (12.79 | ) | (12.83 | ) | — | (4.57 | ) | (4.57 | ) | 18.73 | 0.83 | 0.83 | (0.13 | ) | 61 | (40.17 | ) | 16 | ||||||||||||||||||||
11/01/06 | 10/31/07 | 29.68 | 0.16 | 6.47 | (b) | 6.63 | — | (0.18 | ) | (0.18 | ) | 36.13 | 0.85 | 0.85 | 0.48 | 62 | 22.45 | 12 | ||||||||||||||||||||||||
10/02/06 | 10/31/06 | 29.04 | — | 0.64 | (b) | 0.64 | — | — | — | 29.68 | 0.85 | (c) | 0.85 | (c) | (0.20 | )(c) | 7 | 2.20 | (d) | 7 | ||||||||||||||||||||||
Eagle Growth & Income Fund | ||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 9.71 | 0.14 | (0.24 | ) | (0.10 | ) | (0.14 | ) | — | (0.14 | ) | 9.47 | 1.37 | (c) | 1.66 | (c) | 3.27 | (c) | 31 | (0.97 | )(d) | 59 | |||||||||||||||||||
11/01/07 | 10/31/08 | 17.77 | 0.37 | (6.27 | ) | (5.90 | ) | (0.35 | ) | (1.81 | ) | (2.16 | ) | 9.71 | 1.35 | 1.33 | 2.75 | 65 | (37.25 | ) | 61 | |||||||||||||||||||||
11/01/06 | 10/31/07 | 14.68 | 0.36 | 3.60 | (b) | 3.96 | (0.34 | ) | (0.53 | ) | (0.87 | ) | 17.77 | 1.35 | 1.40 | 2.28 | 63 | 28.17 | 96 | |||||||||||||||||||||||
10/01/06 | 10/31/06 | 14.43 | 0.02 | 0.34 | (b) | 0.36 | (0.11 | ) | — | (0.11 | ) | 14.68 | 1.35 | (c) | 1.56 | (c) | 1.33 | (c) | 4 | 2.52 | (d) | 68 | ||||||||||||||||||||
10/01/05 | 09/30/06 | 13.81 | 0.38 | 1.43 | (b) | 1.81 | (0.34 | ) | (0.85 | ) | (1.19 | ) | 14.43 | 1.35 | 1.42 | 2.74 | 54 | 13.90 | 68 | |||||||||||||||||||||||
10/01/04 | 09/30/05 | 11.80 | 0.28 | 1.99 | (b) | 2.27 | (0.26 | ) | — | (0.26 | ) | 13.81 | 1.35 | 1.51 | 2.13 | 73 | 19.41 | 45 | ||||||||||||||||||||||||
10/01/03 | 09/30/04 | 11.10 | 0.16 | 0.68 | 0.84 | (0.14 | ) | — | (0.14 | ) | 11.80 | 1.35 | 1.50 | 1.31 | 80 | 7.57 | 41 | |||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 9.45 | 0.11 | (0.24 | ) | (0.13 | ) | (0.11 | ) | — | (0.11 | ) | 9.21 | 2.17 | (c) | 2.41 | (c) | 2.47 | (c) | 31 | (1.35 | )(d) | 34 | |||||||||||||||||||
11/01/07 | 10/31/08 | 17.34 | 0.26 | (6.10 | ) | (5.84 | ) | (0.24 | ) | (1.81 | ) | (2.05 | ) | 9.45 | 2.15 | 2.09 | 1.95 | 65 | (37.75 | ) | 36 | |||||||||||||||||||||
11/01/06 | 10/31/07 | 14.38 | 0.23 | 3.50 | (b) | 3.73 | (0.24 | ) | (0.53 | ) | (0.77 | ) | 17.34 | 2.14 | 2.16 | 1.52 | 63 | 27.05 | 59 | |||||||||||||||||||||||
10/01/06 | 10/31/06 | 14.12 | 0.01 | 0.34 | (b) | 0.35 | (0.09 | ) | — | (0.09 | ) | 14.38 | 2.10 | (c) | 2.31 | (c) | 0.58 | (c) | 4 | 2.46 | (d) | 47 | ||||||||||||||||||||
10/01/05 | 09/30/06 | 13.54 | 0.27 | 1.40 | (b) | 1.67 | (0.24 | ) | (0.85 | ) | (1.09 | ) | 14.12 | 2.10 | 2.17 | 2.00 | 54 | 13.01 | 46 | |||||||||||||||||||||||
10/01/04 | 09/30/05 | 11.57 | 0.18 | 1.96 | (b) | 2.14 | (0.17 | ) | — | (0.17 | ) | 13.54 | 2.10 | 2.26 | 1.37 | 73 | 18.60 | 31 | ||||||||||||||||||||||||
10/01/03 | 09/30/04 | 10.88 | 0.07 | 0.66 | 0.73 | (0.04 | ) | — | (0.04 | ) | 11.57 | 2.10 | 2.25 | 0.57 | 80 | 6.73 | 26 | |||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||
03/18/09 | 04/30/09 | 8.43 | 0.04 | 1.07 | 1.11 | (0.08 | ) | — | (0.08 | ) | 9.46 | 0.95 | (c) | 1.30 | (c) | 3.62 | (c) | 31 | 13.14 | (d) | 0 |
36 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Financial Highlights
Fiscal periods† | From investment operations | Dividends & distributions | Ratios to average daily net assets (%) | ||||||||||||||||||||||||||||||||||||||
Beginning value | Income (loss) | Realized & gain (loss) | Total | From income | From gains | Total | Ending value | With recovered | Without recovered | Net (loss) | Portfolio rate (%) | Total (%) (a) | Ending (millions) | ||||||||||||||||||||||||||||
Beginning | Ending | ||||||||||||||||||||||||||||||||||||||||
Eagle International Equity Fund | |||||||||||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | $17.80 | $0.08 | $(1.46 | ) | $(1.38 | ) | $(0.71 | ) | $— | $(0.71 | ) | $15.71 | 1.68 | (c) | 1.88 | (c) | 1.09 | (c) | 103 | (7.98 | )(d) | $49 | ||||||||||||||||||
11/01/07 | 10/31/08 | 36.52 | 0.32 | (16.15 | ) | (15.83 | ) | — | (2.89 | ) | (2.89 | ) | 17.80 | 1.41 | 1.41 | 1.11 | 115 | (46.77 | ) | 73 | |||||||||||||||||||||
11/01/06 | 10/31/07 | 29.97 | 0.27 | 8.87 | (b) | 9.14 | (0.47 | ) | (2.12 | ) | (2.59 | ) | 36.52 | 1.47 | 1.41 | 0.83 | 56 | 32.58 | 166 | ||||||||||||||||||||||
11/01/05 | 10/31/06 | 25.20 | 0.24 | 6.73 | (b) | 6.97 | (0.16 | ) | (2.04 | ) | (2.20 | ) | 29.97 | 1.71 | 1.53 | 0.86 | 58 | 29.31 | 91 | ||||||||||||||||||||||
11/01/04 | 10/31/05 | 20.95 | 0.09 | 4.49 | (b) | 4.58 | (0.33 | ) | — | (0.33 | ) | 25.20 | 1.78 | 2.00 | 0.38 | 78 | 21.98 | 50 | |||||||||||||||||||||||
11/01/03 | 10/31/04 | 17.93 | 0.05 | 3.12 | 3.17 | (0.15 | ) | — | (0.15 | ) | 20.95 | 1.78 | 2.15 | 0.24 | 162 | 17.74 | 29 | ||||||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 16.15 | 0.02 | (1.33 | ) | (1.31 | ) | (0.54 | ) | — | (0.54 | ) | 14.30 | 2.48 | (c) | 2.63 | (c) | 0.26 | (c) | 103 | (8.33 | )(d) | 61 | ||||||||||||||||||
11/01/07 | 10/31/08 | 33.66 | 0.09 | (14.71 | ) | (14.62 | ) | — | (2.89 | ) | (2.89 | ) | 16.15 | 2.17 | 2.17 | 0.33 | 115 | (47.19 | ) | 91 | |||||||||||||||||||||
11/01/06 | 10/31/07 | 27.85 | 0.01 | 8.23 | (b) | 8.24 | (0.31 | ) | (2.12 | ) | (2.43 | ) | 33.66 | 2.23 | 2.17 | 0.05 | 56 | 31.60 | 189 | ||||||||||||||||||||||
11/01/05 | 10/31/06 | 23.58 | 0.02 | 6.30 | (b) | 6.32 | (0.01 | ) | (2.04 | ) | (2.05 | ) | 27.85 | 2.46 | 2.28 | 0.07 | 58 | 28.38 | 118 | ||||||||||||||||||||||
11/01/04 | 10/31/05 | 19.66 | (0.08 | ) | 4.20 | (b) | 4.12 | (0.20 | ) | — | (0.20 | ) | 23.58 | 2.53 | 2.75 | (0.35 | ) | 78 | 21.06 | 73 | |||||||||||||||||||||
11/01/03 | 10/31/04 | 16.89 | (0.09 | ) | 2.93 | 2.84 | (0.07 | ) | — | (0.07 | ) | 19.66 | 2.53 | 2.90 | (0.46 | ) | 162 | 16.85 | 47 | ||||||||||||||||||||||
Class I* | |||||||||||||||||||||||||||||||||||||||||
03/13/09(e) | 04/30/09 | 13.59 | 0.07 | 2.07 | 2.14 | — | — | — | 15.73 | 1.15 | (c) | 1.80 | (c) | 3.67 | (c) | 103 | 15.75 | (d) | 0 | ||||||||||||||||||||||
02/09/09 | 02/24/09 | (e) | 15.60 | 0.02 | (1.86 | ) | (1.84 | ) | — | — | — | 13.76 | 1.15 | (c) | 1.40 | (c) | 2.91 | (c) | 103 | (11.79 | )(d) | 0 | |||||||||||||||||||
Eagle Large Cap Core Fund | |||||||||||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 10.70 | 0.05 | (0.50 | ) | (0.45 | ) | (0.12 | ) | — | (0.12 | ) | 10.13 | 1.37 | (c) | 1.50 | (c) | 1.17 | (c) | 20 | (4.12 | )(d) | 10 | ||||||||||||||||||
11/01/07 | 10/31/08 | 17.95 | 0.17 | (6.52 | ) | (6.35 | ) | (0.13 | ) | (0.77 | ) | (0.90 | ) | 10.70 | 1.26 | 1.26 | 1.14 | 43 | (37.08 | ) | 12 | ||||||||||||||||||||
11/01/06 | 10/31/07 | 16.54 | 0.13 | 1.48 | (b) | 1.61 | (0.08 | ) | (0.12 | ) | (0.20 | ) | 17.95 | 1.36 | 1.28 | 0.73 | 45 | 9.85 | 27 | ||||||||||||||||||||||
11/01/05 | 10/31/06 | 14.29 | 0.09 | 2.16 | (b) | 2.25 | — | — | — | 16.54 | 1.53 | 1.52 | 0.57 | 43 | 15.75 | 23 | |||||||||||||||||||||||||
05/02/05 | 10/31/05 | 14.29 | (0.01 | ) | 0.01 | (b) | — | — | — | — | 14.29 | 1.65 | (c) | 3.25 | (c) | (0.09 | )(c) | 66 | — | (d) | 19 | ||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 10.53 | 0.01 | (0.49 | ) | (0.48 | ) | (0.01 | ) | — | (0.01 | ) | 10.04 | 2.17 | (c) | 2.37 | (c) | 0.31 | (c) | 20 | (4.53 | )(d) | 8 | ||||||||||||||||||
11/01/07 | 10/31/08 | 17.68 | 0.04 | (6.42 | ) | (6.38 | ) | — | (0.77 | ) | (0.77 | ) | 10.53 | 2.10 | 2.10 | 0.28 | 43 | (37.58 | ) | 9 | |||||||||||||||||||||
11/01/06 | 10/31/07 | 16.35 | (0.02 | ) | 1.47 | (b) | 1.45 | — | (0.12 | ) | (0.12 | ) | 17.68 | 2.18 | 2.11 | (0.10 | ) | 45 | 8.95 | 17 | |||||||||||||||||||||
11/01/05 | 10/31/06 | 14.23 | (0.03 | ) | 2.15 | (b) | 2.12 | — | — | — | 16.35 | 2.28 | 2.27 | (0.19 | ) | 43 | 14.90 | 15 | |||||||||||||||||||||||
05/02/05 | 10/31/05 | 14.29 | (0.05 | ) | (0.01 | )(b) | (0.06 | ) | — | — | — | 14.23 | 2.40 | (c) | �� | 4.00 | (c) | (0.85 | )(c) | 66 | (0.42 | )(d) | 10 | ||||||||||||||||||
Class I* | |||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 10.73 | 0.08 | (0.52 | ) | (0.44 | ) | (0.18 | ) | — | (0.18 | ) | 10.11 | 0.95 | (c) | 1.28 | (c) | 1.64 | (c) | 20 | (3.95 | )(d) | 91 | ||||||||||||||||||
11/01/07 | 10/31/08 | 18.01 | 0.20 | (6.51 | ) | (6.31 | ) | (0.20 | ) | (0.77 | ) | (0.97 | ) | 10.73 | 0.95 | 1.04 | 1.39 | 43 | (36.86 | ) | 130 | ||||||||||||||||||||
11/01/06 | 10/31/07 | 16.60 | 0.19 | 1.48 | (b) | 1.67 | (0.14 | ) | (0.12 | ) | (0.26 | ) | 18.01 | 0.95 | 1.06 | 1.12 | 45 | 10.22 | 183 | ||||||||||||||||||||||
03/03/06 | 10/31/06 | 15.17 | 0.08 | 1.35 | (b) | 1.43 | — | — | — | 16.60 | 0.95 | (c) | 1.23 | (c) | 0.87 | (c) | 43 | 9.43 | (d) | 128 | |||||||||||||||||||||
Class R-5* | |||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 10.76 | 0.07 | (0.50 | ) | (0.43 | ) | — | — | — | 10.33 | 0.95 | (c) | 1.22 | (c) | 1.45 | (c) | 20 | (4.00 | )(d) | 0 | ||||||||||||||||||||
11/01/07 | 10/31/08 | 17.98 | 0.27 | (6.51 | ) | (6.24 | ) | (0.21 | ) | (0.77 | ) | (0.98 | ) | 10.76 | 0.86 | 0.90 | 1.71 | 43 | (36.52 | ) | 0 | ||||||||||||||||||||
04/02/06 | 10/31/07 | 16.51 | — | 1.47 | (b) | 1.47 | — | — | — | 17.98 | 0.91 | (c) | 0.91 | (c) | 0.05 | (c) | 45 | 8.90 | (d) | 1 | |||||||||||||||||||||
Eagle Mid Cap Growth Fund | |||||||||||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 18.63 | (0.04 | ) | (0.03 | ) | (0.07 | ) | — | — | — | 18.56 | 1.46 | (c) | 1.50 | (c) | (0.53 | )(c) | 81 | (0.38 | )(d) | 84 | |||||||||||||||||||
11/01/07 | 10/31/08 | 34.48 | (0.20 | ) | (10.29 | ) | (10.49 | ) | — | (5.36 | ) | (5.36 | ) | 18.63 | 1.30 | 1.30 | (0.74 | ) | 141 | (35.68 | ) | 86 | |||||||||||||||||||
11/01/06 | 10/31/07 | 28.11 | (0.24 | ) | 9.18 | (b) | 8.94 | — | (2.57 | ) | (2.57 | ) | 34.48 | 1.36 | 1.36 | (0.80 | ) | 98 | 34.28 | 130 | |||||||||||||||||||||
11/01/05 | 10/31/06 | 26.72 | (0.14 | ) | 2.95 | (b) | 2.81 | — | (1.42 | ) | (1.42 | ) | 28.11 | 1.29 | 1.29 | (0.49 | ) | 111 | 10.70 | 135 | |||||||||||||||||||||
11/01/04 | 10/31/05 | 25.26 | (0.22 | ) | 2.89 | (b) | 2.67 | — | (1.21 | ) | (1.21 | ) | 26.72 | 1.34 | 1.34 | (0.81 | ) | 75 | 10.66 | 127 | |||||||||||||||||||||
11/01/03 | 10/31/04 | 23.92 | (0.23 | ) | 1.57 | 1.34 | — | — | — | 25.26 | 1.38 | 1.38 | (0.92 | ) | 92 | 5.60 | 80 | ||||||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 16.68 | (0.10 | ) | (0.03 | ) | (0.13 | ) | — | — | — | 16.55 | 2.26 | (c) | 2.27 | (c) | (1.33 | )(c) | 81 | (0.78 | )(d) | 40 | |||||||||||||||||||
11/01/07 | 10/31/08 | 31.65 | (0.36 | ) | (9.25 | ) | (9.61 | ) | — | (5.36 | ) | (5.36 | ) | 16.68 | 2.05 | 2.05 | (1.48 | ) | 141 | (36.16 | ) | 42 | |||||||||||||||||||
11/01/06 | 10/31/07 | 26.18 | (0.42 | ) | 8.46 | (b) | 8.04 | — | (2.57 | ) | (2.57 | ) | 31.65 | 2.11 | 2.11 | (1.54 | ) | 98 | 33.28 | 69 | |||||||||||||||||||||
11/01/05 | 10/31/06 | 25.15 | (0.32 | ) | 2.77 | (b) | 2.45 | — | (1.42 | ) | (1.42 | ) | 26.18 | 2.04 | 2.04 | (1.23 | ) | 111 | 9.90 | 64 | |||||||||||||||||||||
11/01/04 | 10/31/05 | 24.02 | (0.39 | ) | 2.73 | (b) | 2.34 | — | (1.21 | ) | (1.21 | ) | 25.15 | 2.09 | 2.09 | (1.55 | ) | 75 | 9.80 | 67 | |||||||||||||||||||||
11/01/03 | 10/31/04 | 22.92 | (0.40 | ) | 1.50 | 1.10 | — | — | — | 24.02 | 2.13 | 2.13 | (1.68 | ) | 92 | 4.80 | 65 |
The accompanying notes are an integral part of the financial statements. | 37 |
Table of Contents
Financial Highlights
Fiscal periods† | From investment operations | Dividends & distributions | Ratios to average daily net assets (%) | ||||||||||||||||||||||||||||||||||||
Beginning value | Income (loss) | Realized & gain (loss) | Total | From income | From gains | Total | Ending value | With recovered | Without recovered | Net (loss) | Portfolio rate (%) | Total (%) (a) | Ending (millions) | ||||||||||||||||||||||||||
Beginning | Ending | ||||||||||||||||||||||||||||||||||||||
Eagle Mid Cap Growth Fund (cont’d) | |||||||||||||||||||||||||||||||||||||||
Class I* | �� | ||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | $18.83 | $— | $(0.03 | ) | $(0.03 | ) | $— | $— | $— | $18.80 | 0.95(c | ) | 1.14(c | ) | (0.02 | )(c) | 81 | (0.16 | )(d) | $2 | ||||||||||||||||||
11/01/07 | 10/31/08 | 34.69 | (0.12 | ) | (10.38 | ) | (10.50 | ) | — | (5.36 | ) | (5.36 | ) | 18.83 | 0.95 | 1.04 | (0.54 | ) | 141 | (35.46 | ) | 0 | |||||||||||||||||
11/01/06 | 10/31/07 | 28.16 | (0.11 | ) | 9.21 | (b) | 9.10 | — | (2.57 | ) | (2.57 | ) | 34.69 | 0.95 | 1.08 | (0.37 | ) | 98 | 34.83 | 0 | |||||||||||||||||||
06/21/06 | 10/31/06 | 26.63 | (0.04 | ) | 1.57 | (b) | 1.53 | — | — | — | 28.16 | 0.95(c | ) | 1.05(c | ) | (0.42 | )(c) | 111 | 5.75 | (d) | 0 | ||||||||||||||||||
Class R-3* | |||||||||||||||||||||||||||||||||||||||
01/12/09 | 04/30/09 | 16.84 | (0.05 | ) | 1.75 | 1.70 | — | — | — | 18.54 | 1.75(c | ) | 1.81(c | ) | (0.93 | )(c) | 81 | 10.10 | (d) | 0 | |||||||||||||||||||
Eagle Mid Cap Stock Fund | |||||||||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 18.34 | (0.02 | ) | (0.56 | ) | (0.58 | ) | — | — | — | 17.76 | 1.30(c | ) | 1.30(c | ) | (0.20 | )(c) | 96 | (3.11 | )(d) | 686 | |||||||||||||||||
11/01/07 | 10/31/08 | 32.59 | (0.09 | ) | (10.83 | ) | (10.92 | ) | — | (3.33 | ) | (3.33 | ) | 18.34 | 1.15 | 1.15 | (0.34 | ) | 176 | (37.04 | ) | 780 | |||||||||||||||||
11/01/06 | 10/31/07 | 30.12 | (0.06 | ) | 5.61 | (b) | 5.55 | — | (3.08 | ) | (3.08 | ) | 32.59 | 1.13 | 1.13 | (0.18 | ) | 185 | 20.08 | 1,312 | |||||||||||||||||||
11/01/05 | 10/31/06 | 27.79 | (0.10 | ) | 4.39 | (b) | 4.29 | — | (1.96 | ) | (1.96 | ) | 30.12 | 1.13 | 1.13 | (0.35 | ) | 180 | 16.18 | 904 | |||||||||||||||||||
11/01/04 | 10/31/05 | 24.57 | (0.13 | ) | 3.35 | (b) | 3.22 | — | — | — | 27.79 | 1.15 | 1.15 | (0.48 | ) | 146 | 13.11 | 633 | |||||||||||||||||||||
11/01/03 | 10/31/04 | 21.67 | (0.15 | ) | 3.05 | 2.90 | — | — | — | 24.57 | 1.20 | 1.20 | (0.64 | ) | 124 | 13.38 | 370 | ||||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 16.34 | (0.07 | ) | (0.50 | ) | (0.57 | ) | — | — | — | 15.77 | 2.04(c | ) | 2.04(c | ) | (0.94 | )(c) | 96 | (3.49 | )(d) | 203 | |||||||||||||||||
11/01/07 | 10/31/08 | 29.62 | (0.25 | ) | (9.70 | ) | (9.95 | ) | — | (3.33 | ) | (3.33 | ) | 16.34 | 1.88 | 1.88 | (1.07 | ) | 176 | (37.53 | ) | 229 | |||||||||||||||||
11/01/06 | 10/31/07 | 27.83 | (0.26 | ) | 5.13 | (b) | 4.87 | — | (3.08 | ) | (3.08 | ) | 29.62 | 1.88 | 1.88 | (0.94 | ) | 185 | 19.21 | 410 | |||||||||||||||||||
11/01/05 | 10/31/06 | 26.00 | (0.29 | ) | 4.08 | (b) | 3.79 | — | (1.96 | ) | (1.96 | ) | 27.83 | 1.88 | 1.88 | (1.10 | ) | 180 | 15.31 | 345 | |||||||||||||||||||
11/01/04 | 10/31/05 | 23.16 | (0.31 | ) | 3.15 | (b) | 2.84 | — | — | — | 26.00 | 1.90 | 1.90 | (1.23 | ) | 146 | 12.26 | 284 | |||||||||||||||||||||
11/01/03 | 10/31/04 | 20.59 | (0.31 | ) | 2.88 | 2.57 | — | — | — | 23.16 | 1.95 | 1.95 | (1.39 | ) | 124 | 12.48 | 214 | ||||||||||||||||||||||
Class I* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 18.49 | 0.01 | (0.55 | ) | (0.54 | ) | — | — | — | 17.95 | 0.95(c | ) | 0.95(c | ) | 0.14 | (c) | 96 | (2.92 | )(d) | 105 | ||||||||||||||||||
11/01/07 | 10/31/08 | 32.74 | — | (10.92 | ) | (10.92 | ) | — | (3.33 | ) | (3.33 | ) | 18.49 | 0.81 | 0.81 | (0.02 | ) | 176 | (36.85 | ) | 79 | ||||||||||||||||||
11/01/06 | 10/31/07 | 30.15 | 0.05 | 5.62 | (b) | 5.67 | — | (3.08 | ) | (3.08 | ) | 32.74 | 0.81 | 0.81 | 0.17 | 185 | 20.50 | 94 | |||||||||||||||||||||
06/06/06 | 10/31/06 | 28.21 | (0.01 | ) | 1.95 | (b) | 1.94 | — | — | — | 30.15 | 0.84(c | ) | 0.84(c | ) | (0.15 | )(c) | 180 | 6.88 | (d) | 17 | ||||||||||||||||||
Class R-3* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 18.26 | (0.03 | ) | (0.56 | ) | (0.59 | ) | — | — | — | 17.67 | 1.42(c | ) | 1.42(c | ) | (0.35 | )(c) | 96 | (3.18 | )(d) | 2 | |||||||||||||||||
11/01/07 | 10/31/08 | 32.52 | (0.13 | ) | (10.80 | ) | (10.93 | ) | — | (3.33 | ) | (3.33 | ) | 18.26 | 1.33 | 1.33 | (0.53 | ) | 176 | (37.16 | ) | 1 | |||||||||||||||||
11/01/06 | 10/31/07 | 30.10 | (0.10 | ) | 5.60 | (b) | 5.50 | — | (3.08 | ) | (3.08 | ) | 32.52 | 1.29 | 1.29 | (0.33 | ) | 185 | 19.91 | 1 | |||||||||||||||||||
08/10/06 | 10/31/06 | 27.82 | (0.04 | ) | 2.32 | (b) | 2.28 | — | — | — | 30.10 | 1.27(c | ) | 1.27(c | ) | (0.60 | )(c) | 180 | 8.20 | (d) | 0 | ||||||||||||||||||
Class R-5* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 18.50 | 0.02 | (0.55 | ) | (0.53 | ) | — | — | — | 17.97 | 0.80(c | ) | 0.80(c | ) | 0.31 | (c) | 96 | (2.86 | )(d) | 49 | ||||||||||||||||||
11/01/07 | 10/31/08 | 32.73 | 0.02 | (10.92 | ) | (10.90 | ) | — | (3.33 | ) | (3.33 | ) | 18.50 | 0.74 | 0.74 | 0.06 | 176 | (36.80 | ) | 24 | |||||||||||||||||||
11/01/06 | 10/31/07 | 30.13 | 0.07 | 5.61 | (b) | 5.68 | — | (3.08 | ) | (3.08 | ) | 32.73 | 0.75 | 0.75 | 0.23 | 185 | 20.55 | 34 | |||||||||||||||||||||
10/02/06 | 10/31/06 | 28.96 | — | 1.17 | (b) | 1.17 | — | — | — | 30.13 | 0.67(c | ) | 0.67(c | ) | (0.15 | )(c) | 180 | 4.04 | (d) | 12 | |||||||||||||||||||
Eagle Small Cap Core Value Fund | |||||||||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||||||||
11/03/08 | 04/30/09 | 14.29 | (0.02 | ) | (0.68 | ) | (0.70 | ) | — | — | — | 13.59 | 1.44(c | ) | 8.90(c | ) | (0.22 | )(c) | 17 | (4.90 | )(d) | 4 | |||||||||||||||||
Class C* | |||||||||||||||||||||||||||||||||||||||
11/03/08 | 04/30/09 | 14.29 | (0.07 | ) | (0.68 | ) | (0.75 | ) | — | — | — | 13.54 | 2.24(c | ) | 9.84(c | ) | (1.05 | )(c) | 17 | (5.25 | )(d) | 2 | |||||||||||||||||
Class I* | |||||||||||||||||||||||||||||||||||||||
03/09/09 | 04/30/09 | 9.65 | — | 3.95 | 3.95 | — | — | — | 13.60 | 0.95(c | ) | 2.10(c | ) | (0.03 | )(c) | 17 | 40.93 | (d) | 41 | ||||||||||||||||||||
Eagle Small Cap Growth Fund | |||||||||||||||||||||||||||||||||||||||
Class A* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 22.52 | (0.07 | ) | (1.33 | ) | (1.40 | ) | — | — | — | 21.12 | 1.41(c | ) | 1.44(c | ) | (0.77 | )(c) | 93 | (6.22 | )(d) | 165 | |||||||||||||||||
11/01/07 | 10/31/08 | 41.33 | (0.16 | ) | (12.81 | ) | (12.97 | ) | — | (5.84 | ) | (5.84 | ) | 22.52 | 1.27 | 1.27 | (0.50 | ) | 51 | (35.81 | ) | 189 | |||||||||||||||||
11/01/06 | 10/31/07 | 37.87 | (0.15 | ) | 6.46 | (b) | 6.31 | — | (2.85 | ) | (2.85 | ) | 41.33 | 1.25 | 1.25 | (0.38 | ) | 64 | 17.65 | 327 | |||||||||||||||||||
11/01/05 | 10/31/06 | 32.93 | (0.15 | ) | 6.23 | (b) | 6.08 | — | (1.14 | ) | (1.14 | ) | 37.87 | 1.24 | 1.24 | (0.43 | ) | 49 | 18.89 | 269 | |||||||||||||||||||
11/01/04 | 10/31/05 | 32.19 | (0.13 | ) | 2.43 | (b) | 2.30 | — | (1.56 | ) | (1.56 | ) | 32.93 | 1.30 | 1.25 | (0.39 | ) | 50 | 7.08 | 225 | |||||||||||||||||||
11/01/03 | 10/31/04 | 29.00 | (0.16 | ) | 3.35 | 3.19 | — | — | — | 32.19 | 1.33 | 1.33 | (0.50 | ) | 59 | 11.00 | 182 |
38 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Financial Highlights
Fiscal periods† | From investment operations | Dividends & distributions | Ratios to average daily net assets (%) | ||||||||||||||||||||||||||||||||||||
Beginning value | Income (loss) | Realized & gain (loss) | Total | From income | From gains | Total | Ending value | With recovered | Without recovered | Net (loss) | Portfolio rate (%) | Total (%) (a) | Ending (millions) | ||||||||||||||||||||||||||
Beginning | Ending | ||||||||||||||||||||||||||||||||||||||
Eagle Small Cap Growth Fund (cont’d) | |||||||||||||||||||||||||||||||||||||||
Class C* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | $19.40 | $(0.13 | ) | $(1.16 | ) | $(1.29 | ) | $— | $— | $— | $18.11 | 2.22 | (c) | 2.23 | (c) | (1.58 | )(c) | 93 | (6.65 | )(d) | $50 | |||||||||||||||||
11/01/07 | 10/31/08 | 36.69 | (0.34 | ) | (11.11 | ) | (11.45 | ) | — | (5.84 | ) | (5.84 | ) | 19.40 | 2.02 | 2.02 | (1.25 | ) | 51 | (36.26 | ) | 59 | |||||||||||||||||
11/01/06 | 10/31/07 | 34.17 | (0.39 | ) | 5.76 | (b) | 5.37 | — | (2.85 | ) | (2.85 | ) | 36.69 | 2.00 | 2.00 | (1.12 | ) | 64 | 16.75 | 110 | |||||||||||||||||||
11/01/05 | 10/31/06 | 30.03 | (0.38 | ) | 5.66 | (b) | 5.28 | — | (1.14 | ) | (1.14 | ) | 34.17 | 1.99 | 1.99 | (1.18 | ) | 49 | 18.02 | 100 | |||||||||||||||||||
11/01/04 | 10/31/05 | 29.70 | (0.34 | ) | 2.23 | (b) | 1.89 | — | (1.56 | ) | (1.56 | ) | 30.03 | 2.05 | 2.00 | (1.13 | ) | 50 | 6.26 | 91 | |||||||||||||||||||
11/01/03 | 10/31/04 | 26.96 | (0.36 | ) | 3.10 | 2.74 | — | — | — | 29.70 | 2.08 | 2.08 | (1.26 | ) | 59 | 10.16 | 78 | ||||||||||||||||||||||
Class I* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 22.72 | (0.03 | ) | (1.34 | ) | (1.37 | ) | — | — | — | 21.35 | 0.90 | (c) | 0.90 | (c) | (0.32 | )(c) | 93 | (6.03 | )(d) | 16 | |||||||||||||||||
11/01/07 | 10/31/08 | 41.51 | (0.08 | ) | (12.87 | ) | (12.95 | ) | — | (5.84 | ) | (5.84 | ) | 22.72 | 0.93 | 0.93 | (0.27 | ) | 51 | (35.57 | ) | 10 | |||||||||||||||||
11/01/06 | 10/31/07 | 37.91 | (0.06 | ) | 6.51 | (b) | 6.45 | — | (2.85 | ) | (2.85 | ) | 41.51 | 0.95 | 0.96 | (0.15 | ) | 64 | 18.03 | 2 | |||||||||||||||||||
06/27/06 | 10/31/06 | 33.68 | (0.02 | ) | 4.25 | (b) | 4.23 | — | — | — | 37.91 | 0.95 | (c) | 1.08 | (c) | (0.14 | )(c) | 49 | 12.56 | (d) | 0 | ||||||||||||||||||
Class R-3* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 22.44 | (0.07 | ) | (1.35 | ) | (1.42 | ) | — | — | — | 21.02 | 1.55 | (c) | 1.55 | (c) | (0.93 | )(c) | 93 | (6.33 | )(d) | 1 | |||||||||||||||||
11/01/07 | 10/31/08 | 41.25 | (0.20 | ) | (12.77 | ) | (12.97 | ) | — | (5.84 | ) | (5.84 | ) | 22.44 | 1.42 | 1.42 | (0.67 | ) | 51 | (35.88 | ) | 1 | |||||||||||||||||
11/01/06 | 10/31/07 | 37.88 | (0.28 | ) | 6.50 | (b) | 6.22 | — | (2.85 | ) | (2.85 | ) | 41.25 | 1.37 | 1.37 | (0.65 | ) | 64 | 17.40 | 1 | |||||||||||||||||||
09/19/06 | 10/31/06 | 35.99 | (0.03 | ) | 1.92 | (b) | 1.89 | — | — | — | 37.88 | 1.60 | (c) | 2.05 | (c) | (1.04 | )(c) | 49 | 5.25 | (d) | 0 | ||||||||||||||||||
Class R-5* | |||||||||||||||||||||||||||||||||||||||
11/01/08 | 04/30/09 | 22.72 | (0.03 | ) | (1.34 | ) | (1.37 | ) | — | — | — | 21.35 | 0.95 | (c) | 0.96 | (c) | (0.35 | )(c) | 93 | (6.03 | )(d) | 24 | |||||||||||||||||
11/01/07 | 10/31/08 | 41.50 | (0.05 | ) | (12.89 | ) | (12.94 | ) | — | (5.84 | ) | (5.84 | ) | 22.72 | 0.90 | 0.90 | (0.15 | ) | 51 | (35.55 | ) | 11 | |||||||||||||||||
11/01/06 | 10/31/07 | 37.88 | — | 6.47 | (b) | 6.47 | — | (2.85 | ) | (2.85 | ) | 41.50 | 0.88 | 0.88 | (0.01 | ) | 64 | 18.10 | 15 | ||||||||||||||||||||
10/02/06 | 10/31/06 | 35.86 | — | 2.02 | (b) | 2.02 | — | — | — | 37.88 | 0.83 | (c) | 0.83 | (c) | (0.10 | )(c) | 49 | 5.63 | (d) | 13 |
† The data for the fiscal periods ending after October 31, 2008 are unaudited.
* Per share amounts have been calculated using the monthly average share method.
(a) Total returns are calculated without the imposition of either front-end or contingent deferred sales charges. (b) Redemption fee amounts represent less than $0.01 per share. (c) Annualized. (d) Not annualized. (e) There were no shares outstanding from February 25, 2009 through March 12, 2009.
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NOTE 1 | Organization and investment objective The Eagle Capital Appreciation Fund, Eagle Growth & Income Fund and Eagle Series Trust, formerly known as the Heritage Capital Appreciation Trust, Heritage Growth and Income Trust and Heritage Series Trust, respectively (each a “Trust” and collectively the “Trusts”) are organized as separate Massachusetts business trusts and are registered under the Investment Company Act of 1940, as amended, as diversified, open-end management investment companies. Each Trust offers shares in the following series (each a “Fund” and collectively the “Funds”) and are advised by Eagle Asset Management, Inc. (“Eagle” or “Manager”).
The Eagle Family of Funds consist of the Trusts in addition to another investment company advised by the Manager, the Eagle Cash Trust. Members of the Boards of Trustees (“Boards”) for the Trusts may serve as Trustees for one or more of the Eagle Family of Funds.
• | The Eagle Capital Appreciation Fund (“Capital Appreciation Fund”) seeks long-term capital appreciation. |
• | The Eagle Growth & Income Fund (“Growth & Income Fund”) primarily seeks long-term capital appreciation and, secondarily, seeks current income. |
The Eagle Series Trust currently offers shares in six series:
• | The Eagle International Equity Fund (“International Equity Fund”), formerly known as the International Equity Fund, seeks capital appreciation principally through investment in a portfolio of international equity securities, |
• | The Eagle Large Cap Core Fund (“Large Cap Core Fund”), formerly known as the Core Equity Fund, seeks long-term growth through capital appreciation, |
• | The Eagle Mid Cap Growth Fund (“Mid Cap Growth Fund”), formerly known as the Diversified Growth Fund, seeks long-term capital appreciation, |
• | The Eagle Mid Cap Stock Fund (“Mid Cap Stock Fund”), formerly known as the Mid Cap Stock Fund, seeks long-term capital appreciation, |
• | The Eagle Small Cap Core Value Fund (“Small Cap Core Value Fund”) seeks capital growth, and |
• | The Eagle Small Cap Growth Fund (“Small Cap Growth Fund”), formerly known as the Small Cap Stock Fund, seeks long-term capital appreciation. |
Class offerings Each Fund is authorized and currently offers Class A, Class C, Class I, Class R-3 and Class R-5 shares to qualified buyers.
• | Class A shares are sold at a maximum front-end sales charge of 4.75%. Class A share investments greater than $1 million, which are not sold subject to a sales charge, may be subject to a contingent deferred sales charge (“CDSC”) of 1% of the lower of net asset value (“NAV”) or purchase price if redeemed within 18 months of purchase. |
• | Class C shares are sold subject to a CDSC of 1% of the lower of NAV or purchase price if redeemed prior to one year of purchase. |
• | Class I, Class R-3 and Class R-5 shares are each sold without a front-end sales charge or a CDSC to qualified buyers. As of April 30, 2009, there were no shares issued in Class R-3 for the Growth & Income Fund, International Equity Fund, Large Cap Core Fund or Small Cap Core Value Fund nor were there shares issued in Class R-5 for the Growth & Income Fund, International Equity Fund, Mid Cap Growth Fund or Small Cap Core Value Fund. |
NOTE 2 | Significant accounting policies
Use of estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates and those differences could be material.
Valuation of securities The price of each Fund’s shares is based on the NAV per share of each class of a Fund. The Funds determine the NAV of their shares on each day the New York Stock Exchange (“NYSE”) is open for business, as of the close of the regular trading session (typically 4:00 p.m.), or earlier NYSE closing time that day. If the NYSE or other securities exchange modifies the closing price of securities traded on that exchange after the NAV is calculated, the Manager is not required to recalculate the NAV.
Generally, the Funds value portfolio securities for which market quotations are readily available at market value; however, a Fund may adjust the market quotation price to reflect events that occur between the close of those markets and the time of the Fund’s determination of the NAV.
A market quotation may be considered unreliable or unavailable for various reasons, such as:
• | The quotation may be stale; |
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• | The quotation may be unreliable because the security is not traded frequently; |
• | Trading on the security ceased before the close of the trading market; |
• | Security is newly issued; |
• | Issuer specific events occurred after the security ceased trading; or |
• | Because of the passage of time between the close of the market on which the security trades and the close of the NYSE. |
Issuer specific events may cause the last market quotation to be unreliable. Such events may include:
• | A merger or insolvency; |
• | Events which affect a geographical area or an industry segment, such as political events or natural disasters; or |
• | Market events, such as a significant movement in the U.S. market. |
Both the latest transaction prices and adjustments are furnished by an independent pricing service subject to supervision by the Boards. The Funds value all other securities and assets for which market quotations are unavailable or unreliable at their fair value in good faith using procedures (“Procedures”) approved by the Boards. A Fund may fair value small-cap securities, for example, that are thinly traded or illiquid. Fair value is that amount that the owner might reasonably expect to receive for the security upon its current sale. Fair value requires consideration of all appropriate factors, including indications of fair value available from pricing services. A fair value price is an estimated price and may vary from the prices used by other mutual funds to calculate their NAV. Fair value pricing methods, Procedures and pricing services can change from time to time as approved by the Boards. Pursuant to the Procedures, the Boards have delegated the day-to-day responsibility for applying and administering the Procedures to a valuation committee comprised of certain officers of the Trusts and other employees of the Manager (“Valuation Committee”). The composition of this Valuation Committee may change from time to time.
There can be no assurance, however, that a fair value price used by a Fund on any given day will more accurately reflect the market value of a security or securities than the market price of such security or securities on that day. Fair value pricing may
deter shareholders from trading the Fund shares on a frequent basis in an attempt to take advantage of arbitrage opportunities resulting from potentially stale prices of portfolio holdings. However, it cannot eliminate the possibility of frequent trading. Specific types of securities are valued as follows:
• | Domestic exchange traded equity securities Market quotations are generally available and reliable for domestic exchange traded equity securities. If market quotations are not available or are unreliable, the Manager will value the security at fair value in good faith using the Procedures. |
• | Foreign equity securities If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. Consequently, fair valuation of portfolio securities may occur on a daily basis. The fund may fair value a security if certain events occur between the time trading ends on a particular security and the fund’s NAV calculation. The fund may also fair value a particular security if the events are significant and make the closing price unreliable. If an issuer specific event has occurred that Eagle determines, in its judgment, is likely to have affected the closing price of a foreign security, it will price the security at fair value. Eagle also utilizes a screening process from a pricing vendor to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. Securities and other assets quoted in foreign currencies are valued in U.S. dollars based on exchange rates provided by a pricing service. The pricing vendor, pricing methodology or degree of certainty may change from time to time. Fund securities primarily traded on foreign markets may trade on days that are not business days of the fund. Because the NAV of fund shares is determined only on business days of the fund, the value of the portfolio securities of a fund that invests in foreign securities may change on days when you will not be able to purchase or redeem shares of the fund. |
• | Fixed income securities Government, corporate, asset-backed bonds, municipal bonds and convertible securities, including high yield or junk bonds, normally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing services may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size |
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trading in similar groups of securities, developments related to special securities, dividend rate, maturity and other market data. If the prices provided by the pricing service and independent quoted prices are unreliable, the Valuation Committee will fair value the security using the Procedures. |
• | Short-term securities The amortized cost method of security valuation is used by the Funds (as set forth in Rule 2a-7 under the Investment Company Act of 1940, as amended) for short-term investments (investments that have a maturity date of 60 days or less). The amortized cost of an instrument is determined by valuing it at cost as of the time of purchase and thereafter accreting/amortizing any purchase discount/premium at a constant rate until maturity. Amortized cost approximates fair value. |
• | Futures and options Futures and options are valued on the basis of market quotations, if available. |
Each Fund adopted the Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, effective November 1, 2008. FAS 157 establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosure about fair value measurements that are relevant to a mutual fund’s value. The Manager has concluded that the adoption of FAS 157 has not had a material impact on the Funds’ financial statements.
Various inputs are used in determining the value of each Fund’s investments. FAS 157 establishes a three level hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three levels are defined below:
Level 1—Valuations based on quoted prices for identical securities in active markets,
Level 2—Valuations based on inputs other than quoted prices that are observable, either directly or indirectly, including inputs in markets that are not considered active and
Level 3—Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value each Fund’s investments as of April 30, 2009.
Investments in securities | Other financial instruments (a) | |||
Capital Appreciation Fund | ||||
Level 1—Quoted prices | $403,783,709 | $— | ||
Level 2—Other significant observable inputs | 4,514,000 | — | ||
Level 3—Significant unobservable inputs | — | — | ||
Total investment portfolio | $408,297,709 | $— | ||
Growth & Income Fund | ||||
Level 1—Quoted prices | $61,537,041 | $— | ||
Level 2—Other significant observable inputs | 31,494,408 | — | ||
Level 3—Significant unobservable inputs | — | — | ||
Total investment portfolio | $93,031,449 | $— | ||
International Equity Fund | ||||
Level 1—Quoted prices | $75,822,542 | $137,226 | ||
Level 2 —Other significant observable inputs | 36,073,642 | — | ||
Level 3—Significant unobservable inputs | 56,431 | — | ||
Total investment portfolio | $111,952,615 | $137,226 | ||
Large Cap Core Fund | ||||
Level 1—Quoted prices | $99,276,720 | $— | ||
Level 2—Other significant observable inputs | 9,239,000 | — | ||
Level 3—Significant unobservable inputs | — | — | ||
Total investment portfolio | $108,515,720 | $— | ||
Mid Cap Growth Fund | ||||
Level 1—Quoted prices | $123,740,479 | $— | ||
Level 2—Other significant observable inputs | 3,715,000 | — | ||
Level 3—Significant unobservable inputs | — | — | ||
Total investment portfolio | $127,455,479 | $— | ||
Mid Cap Stock Fund | ||||
Level 1—Quoted prices | $1,032,001,572 | $— | ||
Level 2—Other significant observable inputs | 32,606,000 | — | ||
Level 3—Significant unobservable inputs | — | — | ||
Total investment portfolio | $1,064,607,572 | $— | ||
Small Cap Core Value Fund | ||||
Level 1—Quoted prices | $44,741,433 | $— | ||
Level 2—Other significant observable inputs | 2,958,000 | — | ||
Level 3—Significant unobservable inputs | — | — | ||
Total investment portfolio | $47,699,433 | $— | ||
Small Cap Growth Fund | ||||
Level 1—Quoted prices | $252,700,534 | $— | ||
Level 2—Other significant observable inputs | 13,566,000 | — | ||
Level 3—Significant unobservable inputs | — | — | ||
Total investment portfolio | $266,266,534 | $— | ||
(a) Other financial instruments include forward foreign currency contracts which are valued at the unrealized appreciation/depreciation on the instrument. |
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The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in the International Equity Fund to determine value as of April 30, 2009.
Investment in securities | Other financial instruments | |||
International Equity Fund | ||||
Balance as of October 31, 2008 | $— | $— | ||
Accrued discounts (premiums) | — | — | ||
Realized gain (loss) | — | — | ||
Change in net unrealized appreciation (depreciation) | — | — | ||
Net purchases (sales) | — | — | ||
Net transfers in and/or (out) of Level 3 | 56,431 | — | ||
Balance as of April 30, 2009 | $56,431 | $— |
Foreign currency transactions The books and records of each Fund are maintained in U.S. dollars. Foreign currency transactions are translated into U.S. dollars on the following basis: (i) market value of investment securities, other assets and other liabilities at the daily rates of exchange, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. Each Fund does not isolate that portion of gains and losses on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains and losses from investment transactions. Net realized gain (loss) from foreign currency transactions and the net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies include gains and losses between trade and settlement date on securities transactions, gains and losses arising from the purchase and sale of forward foreign currency contracts and gains and losses between the ex and payment dates on dividends, interest and foreign withholding taxes.
Forward foreign currency contracts Each of the Funds except the Small Cap Growth Fund is authorized to enter into forward foreign currency contracts which are used primarily to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated investment securities. Forward foreign currency contracts are valued on each valuation day and the unrealized gain or loss is included in the Statement of Assets and Liabilities. When the contracts are closed, the gain or loss is realized. Realized and unrealized gains and losses are included in the Statements of Operations. Risks may arise from
unanticipated movements in the currency’s value relative to the U.S. dollar and from the possible inability of counter-parties to meet the terms of their contracts.
Real estate investment trusts (“REITs”) There are certain additional risks involved in investing in REITs. These include, but are not limited to, economic conditions, changes in zoning laws, real estate values, property taxes and interest rates. Dividend income is recorded at the Manager’s estimate of the income included in distributions from the REIT investments. Distributions received in excess of the estimated amount are recorded as a reduction of the cost of the investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after the fiscal year end and may differ from the estimated amounts.
Repurchase agreements Each Fund enters into repurchase agreements whereby a Fund, through its custodian, receives delivery of the underlying securities, the market value of which at the time of purchase is required to be in an amount of at least 100% of the resale price. Repurchase agreements involve the risk that the seller will fail to repurchase the security, as agreed. In that case, each Fund will bear the risk of market value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Revenue recognition Investment security transactions are accounted for on a trade date basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded on an accrual basis.
Expenses Each Fund is charged for those expenses that are directly attributable to it, while other expenses are allocated proportionately among the Eagle Family of Funds based upon methods approved by the Boards. Expenses that are directly attributable to a specific class of shares, such as distribution fees, shareholder servicing fees and administrative fees, are charged directly to that class. Other expenses of each Fund are allocated to each class of shares based upon their relative percentage of net assets. The Funds have entered into an arrangement with the custodian whereby each Fund receives credits on uninvested cash balances which are used to offset a portion of each Fund’s expenses. These custodian credits are shown as “Expense offsets” in the Statements of Operations.
Class allocations Each class of shares has equal rights to earnings and assets except that each class may bear different
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expense for administration, distribution and/or shareholder services. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
Distribution of income and gains In each of the Funds except the Growth & Income Fund, distributions of net investment income are made annually. In the Growth & Income Fund, distributions of net investment income are made quarterly. Net realized gains from investment transactions during any particular year in excess of available capital loss carryforwards, which, if not distributed, would be taxable to each Fund, will be distributed to shareholders in the following fiscal year. Each Fund uses the identified cost method for determining realized gain or loss on investments for both financial and federal income tax reporting purposes.
All dividends paid by the Funds from net investment income are deemed to be ordinary income for federal income tax purposes. Dividends paid by each Fund to shareholders from net investment income were as follows:
Distributions from net investment income | 11/1/08 to 4/30/09 | 11/1/07 to 10/31/08 | ||
Growth & Income Fund | ||||
Class A | $883,775 | $2,220,577 | ||
Class C | 410,742 | 912,376 | ||
Class I | 1,649 | — | ||
International Equity Fund | ||||
Class A | 2,569,804 | — | ||
Class C | 2,744,203 | — | ||
Class I | — | — | ||
Large Cap Core Fund | ||||
Class A | 123,051 | 189,225 | ||
Class I | 10,575 | 2,068,073 | ||
Class R-5 | 2,099,947 | 6,938 |
Dividends paid by each Fund to shareholders from net realized gains were as follows:
Distributions from net realized gains | 11/1/08 to 4/30/09 | 11/1/07 to 10/31/08 | ||
Capital Appreciation Fund | ||||
Class A | $— | $72,026,182 | ||
Class C | — | 23,540,004 | ||
Class I | — | 6,558,868 | ||
Class R-3 | — | 43,729 | ||
Class R-5 | — | 1,474,877 |
Distributions from net realized gains (cont’d) | 11/1/08 to 4/30/09 | 11/1/07 to 10/31/08 | ||
Growth & Income Fund | ||||
Class A | $— | $10,152,491 | ||
Class C | — | 6,280,654 | ||
Class I | — | — | ||
International Equity Fund | ||||
Class A | — | 13,242,330 | ||
Class C | — | 16,489,239 | ||
Class I | — | — | ||
Large Cap Core Fund | ||||
Class A | — | 1,122,952 | ||
Class C | — | 746,545 | ||
Class I | — | 7,962,962 | ||
Class R-5 | — | 25,166 | ||
Mid Cap Growth Fund | ||||
Class A | — | 19,595,467 | ||
Class C | — | 11,691,182 | ||
Class I | — | 3,067 | ||
Class R-3 | — | — | ||
Mid Cap Stock Fund | ||||
Class A | — | 132,489,950 | ||
Class C | — | 45,853,865 | ||
Class I | — | 10,126,151 | ||
Class R-3 | — | 156,975 | ||
Class R-5 | — | 3,591,397 | ||
Small Cap Core Value Fund | ||||
Class A | — | N/A | ||
Class C | — | N/A | ||
Class I | — | N/A | ||
Small Cap Growth Fund | ||||
Class A | — | 45,150,387 | ||
Class C | — | 17,297,442 | ||
Class I | — | 277,914 | ||
Class R-3 | — | 115,250 | ||
Class R-5 | — | 2,091,439 |
Offering and organizational costs Offering costs of $81,106 associated with the formation of the Small Cap Core Value Fund were accounted for as a deferred charge and are amortized on a straight-line basis over 12 months from the date of commencement of operations. Also, organizational costs of $43,530 associated with the formation of the fund were charged and expensed after the commencement of operations.
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Other In the normal course of business the Funds enter into contracts that contain a variety of representations and warranties, which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or its affiliates that have not yet occurred. However, based on experience, the risk of loss to each Fund is expected to be remote.
NOTE 3 | Purchases and sales of securities For the six-month period ended April 30, 2009, purchases and sales of investment securities (excluding repurchase agreements and short-term obligations) were as follows:
Purchases | Sales | |||
Capital Appreciation Fund | $85,100,431 | $120,731,081 | ||
Growth & Income Fund | 38,990,227 | 25,103,197 | ||
International Equity Fund | 126,058,885 | 195,156,340 | ||
Large Cap Core Fund | 22,638,826 | 56,879,761 | ||
Mid Cap Growth Fund | 92,243,176 | 92,030,874 | ||
Mid Cap Stock Fund | 935,402,169 | 944,743,205 | ||
Small Cap Core Value Fund | 38,926,286 | 2,773,214 | ||
Small Cap Growth Fund | 224,623,481 | 213,581,139 |
NOTE 4 | Investment advisory fees and other transactions with affiliates Each Fund agreed to pay to the Manager an investment advisory and an administrative fee equal to an annualized rate based on a percentage of each Fund’s average daily net assets, computed daily and payable monthly. For advisory services provided by the Manager, the investment advisory rate for each Fund was as follows:
Investment advisory fee rate schedule | Breakpoint | Investment advisory fee | ||
Capital Appreciation Fund | First $1 billion Over $1 billion | 0.60% 0.55% | ||
Growth & Income Fund | First $100 million $100 million to $500 million Over $500 million | 0.60% 0.45% 0.40% | ||
International Equity Fund | First $100 million $100 million to $1 billion Over $1 billion | 0.85% 0.65% 0.55% | ||
Large Cap Core Fund | All assets | 0.60% | ||
Mid Cap Growth Fund, Mid Cap Stock Fund, Small Cap Core Value Fund and Small Cap Growth Fund | First $500 million $500 million to $1 billion Over $1 billion | 0.60% 0.55% 0.50% |
For administrative services provided by the Manager, each Fund agreed to pay an administrative rate of 0.15% for
Class A, Class C and Class R-3 shares and 0.10% for Class I and Class R-5. For the six-month period ended April 30, 2009, the amount of administrative fees charged to the Funds were as follows:
Administrative fees | Class A | Class C | ||||
Capital Appreciation Fund | $207,695 | $51,917 | ||||
Growth & Income Fund | 42,207 | 24,397 | ||||
International Equity Fund | 41,126 | 52,877 | ||||
Large Cap Core Fund | 6,907 | 5,594 | ||||
Mid Cap Growth Fund | 56,486 | 27,622 | ||||
Mid Cap Stock Fund | 499,916 | 146,377 | ||||
Small Cap Core Value Fund | 2,283 | 1,211 | ||||
Small Cap Growth Fund | 116,928 | 35,147 | ||||
Administrative fees (cont’d) | Class I | Class R-3 | Class R-5 | |||
Capital Appreciation Fund | $3,827 | $187 | $7,266 | |||
Growth & Income Fund | 19 | — | — | |||
International Equity Fund | 44 | — | — | |||
Large Cap Core Fund | 50,147 | — | 5 | |||
Mid Cap Growth Fund | 562 | 80 | — | |||
Mid Cap Stock Fund | 37,202 | 1,036 | 15,118 | |||
Small Cap Core Value Fund | 4,594 | — | — | |||
Small Cap Growth Fund | 5,061 | 907 | 6,819 |
Subadvisory fees The Manager entered into subadvisory agreements with certain parties to provide investment advice, portfolio management services (including the placement of brokerage orders), certain compliance and other services to the Funds.
The Manager entered into a subadvisory agreement with unaffiliated parties to serve as subadviser to the Capital Appreciation Fund, Growth & Income Fund and International Equity Fund.
The Manager entered into subadvisory agreements with Eagle Boston Investment Management, Inc. (“EBIM”), an affiliate of Eagle, to serve as subadviser for the Small Cap Core Value Fund. Under this agreement, Eagle pays EBIM an annualized rate of 0.375% on the first $500 million of total assets, 0.35% on assets between $500 million and $1 billion, and 0.325% on all assets over $1 billion as a percentage of each Fund’s average daily net assets, computed daily and payable monthly.
Distribution fees Pursuant to the Class A, Class C and Class R-3 Distribution plans and in accordance with Rule 12b-1 of the Investment Company Act of 1940, as amended, the Funds are
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authorized to pay Eagle Fund Distributors, Inc. (“Distributor”), an affiliate of the Manager, a fee based on the average daily net assets for each class of shares, accrued daily and payable monthly. The distribution rate for Class A shares is 0.25%; for Class C shares is 1% and for Class R-3 shares is 0.50%. The Distribution plans for Class I and Class R-5 shares do not authorize a distribution fee to be paid from Fund assets. For the six-month period ended April 30, 2009, the amount of distribution fees charged to the Funds were as follows:
Distribution fees | Class A | Class C | Class R-3 | |||
Capital Appreciation Fund | $346,157 | $346,113 | $624 | |||
Growth & Income Fund | 70,345 | 162,649 | — | |||
International Equity Fund | 68,544 | 352,512 | — | |||
Large Cap Core Fund | 11,514 | 37,291 | — | |||
Mid Cap Growth Fund | 94,146 | 184,144 | 266 | |||
Mid Cap Stock Fund | 833,192 | 975,847 | 3,455 | |||
Small Cap Core Value Fund | 3,807 | 8,073 | — | |||
Small Cap Growth Fund | 194,879 | 234,316 | 3,023 |
Sales charges For the six-month period ended April 30, 2009, total front-end and CDSCs paid to the Distributor were as follows:
Front-end sales charge | Contingent deferred sales charges | |||||
Class A | Class A | Class C | ||||
Capital Appreciation Fund | $31,121 | $— | $3,763 | |||
Growth & Income Fund | 35,936 | — | 1,300 | |||
International Equity Fund | 16,347 | — | 9,588 | |||
Large Cap Core Fund | 3,385 | — | 333 | |||
Mid Cap Growth Fund | 20,818 | — | 2,922 | |||
Mid Cap Stock Fund | 100,933 | 43 | 12,795 | |||
Small Cap Core Value Fund | 5,179 | — | 4 | |||
Small Cap Growth Fund | 40,809 | 1 | 4,090 |
The Distributor paid commissions to salespersons from these fees and incurred other distribution costs.
Agency commissions For the six-month period ended April 30, 2009, total agency brokerage commissions paid by the Funds and agency brokerage commissions paid directly to Raymond James & Associates, Inc. (“RJA”), an affiliate of the Manager, were as follows:
Total agency brokerage commissions | Paid to Raymond James & Associates, Inc. | |||
Capital Appreciation Fund | $232,705 | $— | ||
Growth & Income Fund | 51,192 | 386 |
Total agency brokerage commissions | Paid to Raymond James & Associates, Inc. | |||
International Equity Fund | $239,996 | $— | ||
Large Cap Core Fund | 62,997 | — | ||
Mid Cap Growth Fund | 258,103 | 3,711 | ||
Mid Cap Stock Fund | 1,863,012 | 14,278 | ||
Small Cap Core Value Fund | 47,858 | 176 | ||
Small Cap Growth Fund | 526,126 | 10,657 |
Internal audit fees RJA is the internal auditor for each of the Funds. Each Fund pays RJA a fixed and/or hourly fee for internal auditing services.
Fund accounting fees Eagle Fund Services, Inc. (“EFS”) is the fund accountant for each of the Funds except the International Equity Fund. For providing fund accounting services, EFS receives payment from the Funds at a fixed base fee per fund, a multiple class fee and any out-of-pocket expenses. The custodian, not EFS, provides fund accounting services for the International Equity Fund.
Shareholder servicing fees EFS is the shareholder servicing agent for each of the Funds. For providing shareholder services, EFS receives payment from the Funds at a fixed fee per shareholder account plus any out-of-pocket expenses. For the six-month period ended April 30, 2009, the amount of Shareholder Servicing fees charged to the Funds were as follows:
Shareholder servicing fees | Class A | Class C | ||||
Capital Appreciation Fund | $338,830 | $90,957 | ||||
Growth & Income Fund | 59,186 | 34,730 | ||||
International Equity Fund | 60,051 | 76,808 | ||||
Large Cap Core Fund | 9,374 | 12,311 | ||||
Mid Cap Growth Fund | 80,239 | 43,208 | ||||
Mid Cap Stock Fund | 888,015 | 245,948 | ||||
Small Cap Core Value Fund | 3,753 | 3,454 | ||||
Small Cap Growth Fund | 213,140 | 74,710 | ||||
Shareholder servicing fees (cont’d) | Class I | Class R-3 | Class R-5 | |||
Capital Appreciation Fund | $6,000 | $253 | $6,877 | |||
Growth & Income Fund | 27 | — | — | |||
International Equity Fund | 8 | — | — | |||
Large Cap Core Fund | 144,897 | — | 11 | |||
Mid Cap Growth Fund | 783 | 120 | — | |||
Mid Cap Stock Fund | 80,922 | 914 | 8,628 | |||
Small Cap Core Value Fund | 16,106 | — | — | |||
Small Cap Growth Fund | 1,566 | 827 | 6,165 |
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Notes to Financial Statements
UNAUDITED | 04.30.2009 |
Expense limitations For the periods indicated in the table below, Eagle has contractually agreed to waive its fees and/or reimburse expenses to each class to the extent that the annual operating expense rate for each class of shares exceed the following annualized rates as a percentage of average daily net assets of each class of shares.
Expense limitations rate schedule | 3/1/09 to 2/28/10 | 3/1/08 to 2/28/09 | |||
Capital Appreciation Fund | |||||
Class A | 1.40% | 1.35% | |||
Class C | 2.20% | 2.15% | |||
Class I | 0.95% | 0.95% | |||
Class R-3 | 1.65% | 1.65% | |||
Class R-5 | 0.95% | 0.95% | |||
Growth & Income Fund | |||||
Class A | 1.40% | 1.35% | |||
Class C | 2.20% | 2.15% | |||
Class I | 0.95% | 0.95% | (a) | ||
Class R-3 | 1.65% | 1.65% | (a) | ||
Class R-5 | 0.95% | 0.95% | (a) | ||
International Equity Fund | |||||
Class A | 1.75% | 1.65% | |||
Class C | 2.55% | 2.45% | |||
Class I | 1.15% | 1.15% | (a) | ||
Class R-3 | 1.75% | 1.75% | (a) | ||
Class R-5 | 1.15% | 1.15% | (a) | ||
Large Cap Core Fund | |||||
Class A | 1.40% | 1.35% | |||
Class C | 2.20% | 2.15% | |||
Class I | 0.95% | 0.95% | |||
Class R-3 | 1.65% | 1.65% | |||
Class R-5 | 0.95% | 0.95% | |||
Mid Cap Growth Fund | |||||
Class A | 1.50% | 1.45% | |||
Class C | 2.30% | 2.25% | |||
Class I | 0.95% | 0.95% | |||
Class R-3 | 1.75% | 1.75% | |||
Class R-5 | 0.95% | 0.95% | |||
Mid Cap Stock Fund | |||||
Class A | 1.50% | 1.45% | |||
Class C | 2.30% | 2.25% | |||
Class I | 0.95% | 0.95% | |||
Class R-3 | 1.75% | 1.75% | |||
Class R-5 | 0.95% | 0.95% |
Expense limitations rate schedule (cont’d) | 3/1/09 to 2/28/10 | 3/1/08 to 2/28/09 | |||
Small Cap Core Value Fund | |||||
Class A | 1.50% | 1.50% | (b) | ||
Class C | 2.30% | 2.30% | (b) | ||
Class I | 0.95% | 0.95% | (b) | ||
Class R-3 | 1.70% | 1.70% | (b) | ||
Class R-5 | 0.95% | 0.95% | (b) | ||
Small Cap Growth Fund | |||||
Class A | 1.50% | 1.40% | |||
Class C | 2.30% | 2.20% | |||
Class I | 0.95% | 0.95% | |||
Class R-3 | 1.70% | 1.60% | |||
Class R-5 | 0.95% | 0.95% | |||
(a) Rate effective September 15, 2008. (b) Rate effective November 3, 2008. |
For the six-month period ended April 30, 2009, fees and expenses waived and/or reimbursed based on the expense rate limitation schedule were as follows:
Expenses waived and/or reimbursed | Fund Level | Class A | Class C | |||
Capital Appreciation Fund | $— | $14,180 | $— | |||
Growth & Income Fund | 16,311 | 71,584 | 33,738 | |||
International Equity Fund | 49,461 | 32,733 | 24,646 | |||
Large Cap Core Fund | — | 6,004 | 7,787 | |||
Mid Cap Growth Fund | — | 14,299 | 2,512 | |||
Small Cap Core Value Fund | 195,590 | 6,798 | 4,632 | |||
Small Cap Growth Fund | — | 22,175 | 4,162 | |||
Expenses waived and/or reimbursed (cont’d) | Class I | Class R-3 | Class R-5 | |||
Capital Appreciation Fund | $956 | $— | $— | |||
Growth & Income Fund | 46 | — | — | |||
International Equity Fund | 52 | — | — | |||
Large Cap Core Fund | 165,705 | — | 13 | |||
Mid Cap Growth Fund | 1,065 | 30 | — | |||
Mid Cap Stock Fund | 1,590 | — | — | |||
Small Cap Core Value Fund | 20,700 | — | — | |||
Small Cap Growth Fund | — | — | 445 |
A portion or all of a Fund’s fees and expenses waived and/or reimbursed by the Manager in prior fiscal years may be recoverable by Eagle prior to their expiration date. Eagle must recover from the same class of shares any previously waived and/or reimbursed fees and expenses within two years from the Fund’s fiscal year end during which the fees and expenses where originally waived and/or reimbursed. Previously waived and/or reimbursed fees and expenses are recovered by Eagle
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Notes to Financial Statements
UNAUDITED | 04.30.2009 |
when expenses in the current fiscal year fall below the expense rate limitation then in effect. The following table shows the amounts that Eagle may be allowed to recover by class of shares and the date in which these amounts will expire.
Recoverable expenses | 10/31/10 | 10/31/09 | ||
Growth & Income Fund Class A | $— | $38,361 | ||
Growth & Income Fund Class C | — | 6,357 | ||
Large Cap Core Fund Class I | 148,145 | 142,963 | ||
Large Cap Core Fund Class R-5 | 113 | — | ||
Mid Cap Growth Fund Class I | 83 | 21 |
For the six-month period ended April 30, 2009, the Manager recovered previously waived expenses from the Small Cap Growth Fund’s class I shares in the amount of $29.
Trustees and officers compensation Each Trustee of the Eagle Family of Funds who is not an employee of the Manager receives an annual retainer along with meeting fees for those Eagle Family of Funds’ regular or special meetings attended in person and 25% of such fees are received for telephonic meetings. All reasonable out-of-pocket expenses are also reimbursed. Except when directly attributable to a Fund, Trustees’ fees and expenses are allocated on a pro rata basis among each portfolio in the Eagle Family of Funds. The pro rata allocation is for each Fund for which the Trustee is elected to serve. Certain Officers of the Eagle Family of Funds may also be Officers and/or Directors of Eagle. Such Officers receive no compensation from the Eagle Family of Funds except for the Funds’ Chief Compliance Officer. A portion of the Chief Compliance Officer’s total compensation is paid equally by each portfolio in the Eagle Family of Funds.
NOTE 5 | Federal income taxes and distributions Each fund is treated as a single corporate taxpayer as provided for in the Tax Reform Act of 1986, as amended. Accordingly, no provision for federal income taxes is required since the Funds intend to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute to shareholders all of its taxable income and gains. Federal income tax regulations differ from generally accepted accounting principles; therefore, distributions determined in accordance with tax regulations may differ significantly in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/ tax differences to reflect tax
character; these adjustments have no effect on net assets or NAV per share. Financial reporting records are not adjusted for temporary differences.
As of April 30, 2009, the identified cost of investments in securities owned by each Fund for federal income tax purposes were as follows:
Identified cost | ||
Capital Appreciation Fund | $418,522,884 | |
Growth & Income Fund | 102,882,930 | |
International Equity Fund | 111,788,853 | |
Large Cap Core Fund | 123,001,339 | |
Mid Cap Growth Fund | 116,736,722 | |
Mid Cap Stock Fund | 1,046,234,434 | |
Small Cap Core Value Fund | 36,199,275 | |
Small Cap Growth Fund | 242,105,537 |
As of April 30, 2009, the net unrealized appreciation (depreciation) of investments in securities owned by each Fund were as follows:
Unrealized appreciation | Unrealized depreciation | Net unrealized appreciation (depreciation) | ||||||
Capital Appreciation Fund | $56,521,800 | $(71,260,975) | $(14,739,175) | |||||
Growth & Income Fund | 7,558,836 | (18,686,317 | ) | (11,127,481 | ) | |||
International Equity Fund | 9,571,650 | (14,557,889 | ) | (4,986,239 | ) | |||
Large Cap Core Fund | 5,327,239 | (29,051,858 | ) | (23,724,619 | ) | |||
Mid Cap Growth Fund | 13,928,024 | (6,924,267 | ) | 7,003,757 | ||||
Mid Cap Stock Fund | 77,508,796 | (91,741,658 | ) | (14,232,862 | ) | |||
Small Cap Core Value Fund | 8,797,778 | (255,620 | ) | 8,542,158 | ||||
Small Cap Growth Fund | 31,164,202 | (20,569,204 | ) | 10,594,998 |
NOTE 6 | New accounting pronouncements In March 2008, FASB issued its new Standard No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”). FAS 161 is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position, financial performance, and cash flows. FAS 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008. The Manager is currently evaluating the application of FAS 161 and its impact on the Funds’ financial statements.
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Understanding Your Ongoing Costs
UNAUDITED | 04.30.2009 |
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchases, contingent deferred sales charges, or redemption fees; and (2) ongoing costs, including investment advisory fees; distribution (12b-1) fees; and other Fund expenses. The following sections are intended to help you understand your ongoing cost (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect one-time transaction expenses, such as sales charges or redemption fees. Therefore, if these transactional costs were included, your costs would have been higher. For more information, see your Fund’s prospectus or contact your financial advisor.
Actual expenses | The table below shows the actual expenses you would have paid on a $1,000 investment in each Fund held from the beginning period date indicated through April 30, 2009. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns after ongoing expenses. This table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. 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 line under the heading entitled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Beginning period date | Account value at beginning period date | Ending account value at April 30, 2009 | Expenses paid during period (a) | Annualized expense ratio | Number of days in the period | |||||||
Eagle Capital Appreciation Fund | ||||||||||||
Class A | 11/01/08 | $1,000.00 | $1,033.40 | $6.82 | 1.35% | 181 | ||||||
Class C | 11/01/08 | $1,000.00 | $1,029.20 | $10.72 | 2.13% | 181 | ||||||
Class I | 11/01/08 | $1,000.00 | $1,035.10 | $4.79 | 0.95% | 181 | ||||||
Class R-3 | 11/01/08 | $1,000.00 | $1,032.40 | $7.93 | 1.57% | 181 | ||||||
Class R-5 | 11/01/08 | $1,000.00 | $1,035.80 | $4.61 | 0.91% | 181 | ||||||
Eagle Growth & Income Fund | ||||||||||||
Class A | 11/01/08 | $1,000.00 | $990.30 | $6.74 | 1.37% | 181 | ||||||
Class C | 11/01/08 | $1,000.00 | $986.50 | $10.67 | 2.17% | 181 | ||||||
Class I | 03/18/09 | $1,000.00 | $1,131.40 | $1.22 | 0.95% | 44 | ||||||
Eagle International Equity Fund | ||||||||||||
Class A | 11/01/08 | $1,000.00 | $920.20 | $7.99 | 1.68% | 181 | ||||||
Class C | 11/01/08 | $1,000.00 | $916.70 | $11.78 | 2.48% | 181 | ||||||
Class I | 02/09/09 | $1,000.00 | $1,008.30 | $2.56 | 1.15% | 81 | ||||||
Eagle Large Cap Core Fund | ||||||||||||
Class A | 11/01/08 | $1,000.00 | $958.80 | $6.63 | 1.37% | 181 | ||||||
Class C | 11/01/08 | $1,000.00 | $954.70 | $10.50 | 2.17% | 181 | ||||||
Class I | 11/01/08 | $1,000.00 | $960.50 | $4.62 | 0.95% | 181 | ||||||
Class R-5 | 11/01/08 | $1,000.00 | $960.00 | $4.66 | 0.95% | 181 | ||||||
Eagle Mid Cap Growth Fund | ||||||||||||
Class A | 11/01/08 | $1,000.00 | $996.20 | $7.25 | 1.46% | 181 | ||||||
Class C | 11/01/08 | $1,000.00 | $992.20 | $11.16 | 2.26% | 181 | ||||||
Class I | 11/01/08 | $1,000.00 | $998.40 | $4.71 | 0.95% | 181 | ||||||
Class R-3 | 01/12/09 | $1,000.00 | $1,101.00 | $5.49 | 1.75% | 109 | ||||||
Eagle Mid Cap Stock Fund | ||||||||||||
Class A | 11/01/08 | $1,000.00 | $968.90 | $6.36 | 1.30% | 181 | ||||||
Class C | 11/01/08 | $1,000.00 | $965.10 | $9.94 | 2.04% | 181 | ||||||
Class I | 11/01/08 | $1,000.00 | $970.80 | $4.65 | 0.95% | 181 | ||||||
Class R-3 | 11/01/08 | $1,000.00 | $968.20 | $6.93 | 1.42% | 181 | ||||||
Class R-5 | 11/01/08 | $1,000.00 | $971.40 | $3.89 | 0.80% | 181 | ||||||
Eagle Small Cap Core Value Fund | ||||||||||||
Class A | 11/03/08 | $1,000.00 | $951.00 | $6.83 | 1.44% | 178 | ||||||
Class C | 11/03/08 | $1,000.00 | $947.50 | $10.62 | 2.24% | 178 | ||||||
Class I | 03/09/09 | $1,000.00 | $1,409.30 | $1.66 | 0.95% | 53 | ||||||
Eagle Small Cap Growth Fund | ||||||||||||
Class A | 11/01/08 | $1,000.00 | $937.80 | $6.78 | 1.41% | 181 | ||||||
Class C | 11/01/08 | $1,000.00 | $933.50 | $10.62 | 2.22% | 181 | ||||||
Class I | 11/01/08 | $1,000.00 | $939.70 | $4.31 | 0.90% | 181 | ||||||
Class R-3 | 11/01/08 | $1,000.00 | $936.70 | $7.45 | 1.55% | 181 | ||||||
Class R-5 | 11/01/08 | $1,000.00 | $939.70 | $4.57 | 0.95% | 181 |
(a) Expenses are calculated using each Funds’ annualized expense ratio for each class of shares, multiplied by the average account value for the period, then multiplying the result by the actual number of days in the period; and then dividing that result by the actual number of days in the fiscal year (365).
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Understanding Your Ongoing Costs
UNAUDITED | 04.30.2009 |
Hypothetical example for comparison purposes | All mutual funds now follow guidelines to assist shareholders in comparing expenses between different funds. Per these guidelines, the table below shows each Fund’s expenses based on a $1,000 investment held from November 1, 2008 through April 30, 2009 and assuming for this period a hypothetical 5% annualized rate of return before ongoing expenses, which is not
the Fund’s actual return. Please note that you should not use this information to estimate your actual ending account balance and expenses paid during the period. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the Funds with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison.
Beginning account value November 1, 2008 | Ending account value April 30, 2009 | Expenses paid during period (a) | Annualized expense ratio | |||||
Eagle Capital Appreciation Fund | ||||||||
Class A | $1,000.00 | $1,018.08 | $6.77 | 1.35% | ||||
Class C | $1,000.00 | $1,014.22 | $10.65 | 2.13% | ||||
Class I | $1,000.00 | $1,020.08 | $4.76 | 0.95% | ||||
Class R-3 | $1,000.00 | $1,017.00 | $7.87 | 1.57% | ||||
Class R-5 | $1,000.00 | $1,020.26 | $4.58 | 0.91% | ||||
Eagle Growth & Income Fund | ||||||||
Class A | $1,000.00 | $1,018.02 | $6.84 | 1.37% | ||||
Class C | $1,000.00 | $1,014.05 | $10.82 | 2.17% | ||||
Class I | $1,000.00 | $1,020.08 | $4.76 | 0.95% | ||||
Eagle International Equity Fund | ||||||||
Class A | $1,000.00 | $1,016.47 | $8.39 | 1.68% | ||||
Class C | $1,000.00 | $1,012.51 | $12.36 | 2.48% | ||||
Class I | $1,000.00 | $1,019.10 | $5.75 | 1.15% | ||||
Eagle Large Cap Core Fund | ||||||||
Class A | $1,000.00 | $1,018.02 | $6.83 | 1.37% | ||||
Class C | $1,000.00 | $1,014.05 | $10.82 | 2.17% | ||||
Class I | $1,000.00 | $1,020.08 | $4.76 | 0.95% | ||||
Class R-5 | $1,000.00 | $1,020.04 | $4.80 | 0.95% | ||||
Eagle Mid Cap Growth Fund | ||||||||
Class A | $1,000.00 | $1,017.53 | $7.32 | 1.46% | ||||
Class C | $1,000.00 | $1,013.59 | $11.28 | 2.26% | ||||
Class I | $1,000.00 | $1,020.08 | $4.76 | 0.95% | ||||
Class R-3 | $1,000.00 | $1,016.12 | $8.75 | 1.75% | ||||
Eagle Mid Cap Stock Fund | ||||||||
Class A | $1,000.00 | $1,018.33 | $6.52 | 1.30% | ||||
Class C | $1,000.00 | $1,014.68 | $10.19 | 2.04% | ||||
Class I | $1,000.00 | $1,020.08 | $4.76 | 0.95% | ||||
Class R-3 | $1,000.00 | $1,017.75 | $7.11 | 1.42% | ||||
Class R-5 | $1,000.00 | $1,020.85 | $3.98 | 0.80% | ||||
Eagle Small Cap Core Value Fund | ||||||||
Class A | $1,000.00 | $1,017.67 | $7.19 | 1.44% | ||||
Class C | $1,000.00 | $1,013.70 | $11.17 | 2.24% | ||||
Class I | $1,000.00 | $1,020.08 | $4.76 | 0.95% | ||||
Eagle Small Cap Growth Fund | ||||||||
Class A | $1,000.00 | $1,017.80 | $7.05 | 1.41% | ||||
Class C | $1,000.00 | $1,013.81 | $11.06 | 2.22% | ||||
Class I | $1,000.00 | $1,020.35 | $4.49 | 0.90% | ||||
Class R-3 | $1,000.00 | $1,017.10 | $7.76 | 1.55% | ||||
Class R-5 | $1,000.00 | $1,020.08 | $4.76 | 0.95% |
(a) Expenses are calculated using each Funds’ annualized expense ratios for each class of shares, multiplied by the average account value for the period, then multiplying the result by the actual number of days in the period (181); and then dividing that result by the actual number of days in the fiscal year (365).
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The greatest risk of investing in a mutual fund is that its returns will fluctuate and you could lose money. Turbulence in financial markets and reduced liquidity in equity, credit and fixed income markets may negatively affect many issuers worldwide, which could have an adverse effect on the funds. The following table identifies the primary risk factors of each fund in light of their respective principal investment strategies. These risk factors are explained following the table.
Eagle Capital Appreciation Fund | Eagle Growth & Income Fund | Eagle International Equity Fund | Eagle Large Cap Core Fund | Eagle Mid Cap Growth Fund | Eagle Mid Cap Stock Fund | Eagle Small Cap Core Value Fund | Eagle Small Cap Growth Fund | |||||||||
Covered call options | X | |||||||||||||||
Credit | X | X | ||||||||||||||
Derivatives | X | |||||||||||||||
Emerging markets | X | |||||||||||||||
Focused holdings | X | X | ||||||||||||||
Foreign securities | X | X | X | |||||||||||||
Govt sponsored enterprises | X | |||||||||||||||
Growth stocks | X | X | X | X | X | X | X | X | ||||||||
High-yield securities | X | X | ||||||||||||||
Interest rates | X | X | ||||||||||||||
Market timing activities | X | X | X | X | ||||||||||||
Mid-cap companies | X | X | X | X | X | X | X | |||||||||
Other investment companies | X | |||||||||||||||
Portfolio turnover | X | X | X | |||||||||||||
Sectors | X | X | X | X | ||||||||||||
Small-cap companies | X | X | X | X | X | |||||||||||
Stock market | X | X | X | X | X | X | X | X | ||||||||
Value stocks | X | X | X | X |
Covered call options | Because a fund may write covered call options, a fund may be exposed to risk stemming from changes in the value of the stock that the option is written against. While call option premiums may generate incremental portfolio income, they also can limit gains from market movements.
Credit | A fund could lose money if the issuer of a fixed-income security is unable to meet its financial obligations or goes bankrupt. Credit risk usually applies to most fixed-income securities, but generally is not a factor for U.S. government obligations.
Derivatives | A fund may use derivatives such as futures contracts, foreign currency forward contracts and options on futures to adjust the risk/return characteristics of its investment portfolio. These practices, however, may present risks different from or in addition to the risks associated with investments in foreign currencies. There can be no assurance that any strategy used will succeed. If a fund’s portfolio manager incorrectly forecasts stock market values or currency exchange rates in utilizing a strategy for the fund, the fund could lose money.
Emerging markets | When investing in emerging markets, the risks mentioned below of investing in foreign securities are heightened. Emerging markets have unique risks that are greater than or in addition to investing in developed markets because emerging markets are generally smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political uncertainties; an economy’s dependence on revenues from particular commodities or on international aid or development assistance; currency transfer restrictions; a limited number of potential buyers for such securities; and delays and disruptions in securities settlement procedures. In addition, there may be more volatile rates of return.
Focused holdings | For funds that normally hold a core portfolio of stocks of fewer companies than other more diversified funds, the increase or decrease of the value of a single stock may have a greater impact on the fund’s NAV and total return.
Foreign securities | Investments in foreign securities involve greater risks than investing in domestic securities. As a result, a
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Principal Risks
fund’s return and NAV may be affected by fluctuations in currency exchange rates or political or economic conditions and regulatory requirements in a particular country. Foreign markets, as well as foreign economies and political systems, may be less stable than U.S. markets, and changes in the exchange rates of foreign currencies can affect the value of a fund’s foreign assets. Foreign laws and accounting standards typically are not as strict as they are in the U.S., and there may be less public information available about foreign companies.
Government sponsored enterprises | Investments in government sponsored enterprises are debt obligations issued by agencies and instrumentalities of the U.S. Government. These obligations vary in the level of support they receive from the U.S. Government. They may be: (i) supported by the full faith and credit of the U.S. Treasury, such as those of the Government National Mortgage Association; (ii) supported by the right of the issuer to borrow from the U.S. Treasury, such as those of the Federal National Mortgage Association; (iii) supported by the discretionary authority of the U.S. Government to purchase the issuer’s obligations, such as those of the Student Loan Marketing Association; or (iv) supported only by the credit of the issuer, such as those of the Federal Farm Credit Bureau. The U.S. Government may choose not to provide financial support to U.S. Government sponsored agencies or instrumentalities if it is not legally obligated to do so in which case, if the issuer defaulted, the fund holding securities of such issuer might not be able to recover its investment from the U.S. Government.
Growth stocks | Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met, investors may punish the prices of stocks excessively, even if earnings showed an absolute increase. Growth company stocks also typically lack the dividend yield that can cushion stock prices in market downturns.
High-yield securities | Investments in securities rated below investment grade, or “junk bonds”, generally involve significantly greater risks of loss of your money than an investment in investment grade bonds. Compared with issuers of investment grade bonds, junk bonds are more likely to encounter financial difficulties and to be materially affected by these difficulties. Rising interest rates may compound these difficulties and reduce an issuer’s ability to repay principal and interest obligations. Issuers of lower-rated securities also have a greater risk of default or bankruptcy. Additionally, due to the greater number of considerations involved in the selection of a fund’s securities, the achievement of a fund’s objective
depends more on the skills of the portfolio manager than investing only in higher rated securities. Therefore, your investment may experience greater volatility in price and yield. High-yield securities may be less liquid than higher quality investments. A security whose credit rating has been lowered may be particularly difficult to sell.
Interest rates | Investments in investment-grade and non-investment grade fixed-income securities are subject to interest rate risk. The value of a fund’s fixed-income investments typically will fall when interest rates rise. A fund is particularly sensitive to changes in interest rates because it may invest in debt securities with intermediate and long terms to maturity. Debt securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than debt securities with shorter durations. Yields of debt securities will fluctuate over time.
Market timing activities | Because of specific securities a fund may invest in, it could be subject to the risk of market timing activities by fund shareholders. Some examples of these types of securities are high-yield, small-cap and foreign securities. Typically, foreign securities offer the most opportunity for these market timing activities. A fund generally prices these foreign securities using their closing prices from the foreign markets in which they trade, typically prior to a fund’s calculation of its NAV. These prices may be affected by events that occur after the close of a foreign market but before a fund prices its shares. In such instances, a fund may fair value foreign securities. However, some investors may engage in frequent short-term trading in a fund to take advantage of any price differentials that may be reflected in the NAV of a fund’s shares. There is no assurance that fair valuation of securities can reduce or eliminate market timing. While Eagle Fund Services, Inc. monitors trading in the fund, there is no guarantee that it can detect all market timing activities.
Mid-cap companies | Investments in medium-capitalization companies generally involve greater risks than investing in larger, more established companies. Mid-cap companies often have narrower commercial markets and more limited managerial and financial resources than larger, more established companies. As a result, their performance can be more volatile and they face greater risk of business failure, which could increase the volatility of a fund’s portfolio. Generally, the smaller the company size, the greater these risks. Additionally, mid-cap companies may have less market liquidity than large-cap companies.
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Principal Risks
Other investment companies and ETFs | Investments in the securities of other investment companies and ETFs, (which may, in turn invest in equities, bonds, and other financial vehicles) may involve duplication of advisory fees and certain other expenses. By investing in another investment company or ETF, a fund becomes a shareholder of that investment company or ETF. As a result, fund shareholders indirectly bear the fund’s proportionate share of the fees and expenses paid by shareholders of the other investment company or ETF, in addition to the fees and expenses fund shareholders directly bear in connection with the fund’s own operations.
As a shareholder, the fund must rely on the investment company or ETF to achieve its investment objective. If the investment company or ETF fails to achieve its investment objective, the value of the fund’s investment will decline, adversely affecting the fund’s performance. In addition, because ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, ETF shares potentially may trade at a discount or a premium. Investments in ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to a fund. Finally, because the value of ETF shares depends on the demand in the market, the portfolio manager may not be able to liquidate a fund’s holdings at the most optimal time, adversely affecting the fund’s performance.
Portfolio turnover | A fund may engage in more active and frequent trading of portfolio securities to a greater extent than certain other mutual funds with similar investment objectives. A fund’s turnover rate may vary greatly from year to year or during periods within a year. A high rate of portfolio turnover may lead to greater transaction costs, result in additional tax consequences to investors and adversely affect performance.
Sectors | Companies that are in similar businesses may be similarly affected by particular economic or market events, which may, in certain circumstances, cause the value of securities of all companies in a particular sector of the market to change. To the extent a fund has substantial holdings within a particular sector, the risks associated with that sector increase.
Small-cap companies | Investments in small-cap companies generally involve greater risks than investing in mid- or large-capitalization companies. Small-cap companies often have narrower markets and more limited managerial and financial resources than larger, more established companies. As a result, their performance can be more volatile and they face greater risk of business failure, which could increase the volatility of a fund’s portfolio. Generally, the smaller the company size, the greater these risks. Additionally, small-cap companies may have less market liquidity than mid-cap and large-cap companies.
Stock market | The value of a fund’s stock holdings may decline in price because of changes in prices of its holdings or a broad stock market decline. These fluctuations could be a sustained trend or a drastic movement. The stock markets generally move in cycles, with periods of rising prices followed by periods of declining prices. The value of your investment may reflect these fluctuations.
Value stocks | Investments in value stocks are subject to the risk that their true worth may not be fully realized by the market. This may result in the value stocks’ prices remaining undervalued for extended periods of time. A fund’s performance also may be affected adversely if value stocks remain unpopular with or lose favor among investors.
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eagleasset.com
727.567.8143 I 800.421.4184
Eagle Fund Distributors, Inc.
Member FINRA
Not FDIC Insured t May Lose Value t No Bank Guarantee
Please consider the investment objectives, risks, charges and expenses of any fund carefully before investing. Contact Eagle at 800.421.4184 or your financial advisor for a prospectus, which contains this and other important information about the Funds. Read the prospectus carefully before you invest or send money.
This report is for the information of shareholders of the Eagle mutual funds. If you wish to review additional information on the portfolio holdings of a fund, a complete schedule has been filed with the Securities and Exchange Commission (“Commission”) for the first and third quarters of each fund’s fiscal year end on Form N-Q. These filings are available on the Commission’s website at www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330. A description of each fund’s proxy voting policies, procedures and information regarding how each fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2008, is available without charge, upon request, by calling the Eagle Family of Funds, toll-free at the number above, by accessing our website at eagleasset.com or by accessing the Commission’s website at www.sec.gov.
Would you like to receive future mailings via e-mail? If so, please let us know. Visit eagleasset.com to enroll.
04/09 | ![]() | Printed on recycled paper |
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Item 2. Code of Ethics
Not applicable to semi-annual reports.
Item 3. Audit Committee Financial Expert
Not applicable to semi-annual reports.
Item 4. Principal Accountant Fees and Services
Not applicable to semi-annual reports.
Item 5. Audit Committee of Listed Registrants
Not applicable to the registrant.
Item 6. Schedule of Investments
Included as part of report to shareholders under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-end Management Investment Companies
Not applicable to the registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable to the registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders
There have been no material changes to the Nominating Committee Charter, which sets forth procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees, since the Trust last provided disclosure in response to this item.
Item 11. Controls and Procedures
(a) | Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended), the Principal Executive Officer and Principal Financial Officer of Eagle Capital Appreciation Fund have concluded that such disclosure controls and procedures are effective as of June 26, 2009. |
(b) | There was no change in the internal controls over financial reporting (as defined in Rule 30a-3(d)) of Eagle Capital Appreciation Fund that occurred during the second fiscal quarter of the |
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period covered by this report that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting. |
Item 12. Exhibits
(a)(1) Not applicable to semi-annual reports.
(a)(2) The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 is filed and attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable to the registrant.
(b) The certifications required by Rule 30a-2(b) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002 is filed and attached hereto as Exhibit 99.906CERT.
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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.
EAGLE CAPITAL APPRECIATION FUND | ||||
Date: 06/26/09 | /s/ Mathew J. Calabro | |||
Mathew J. Calabro | ||||
Principal Executive Officer |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
EAGLE CAPITAL APPRECIATION FUND | ||||
Date: 06/26/09 | /s/ Mathew J. Calabro | |||
Mathew J. Calabro | ||||
Principal Executive Officer | ||||
Date: 06/26/09 | /s/ Andrea N. Mullins | |||
Andrea N. Mullins | ||||
Principal Financial Officer |